Page:United States Statutes at Large Volume 100 Part 3.djvu/712

 100 STAT. 2520

PUBLIC LAW 99-514—OCT. 22, 1986

employer consists of publishing on a regular basis a newspaper for general circulation." (b) Section 409(1) is amended by adding at the end thereof the following new paragraph: "(4) NONVOTING COMMON STOCK MAY BE ACQUIRED IN CERTAIN

CASES.—Nonvoting common stock of an employer described in the last sentence of section 401(a)(22) shall be treated as employer securities if an employer has a class of nonvoting common stock outstanding and the specific shares that the plan ' acquires have been issued and outstanding for at least 24 months." (c) EFFECTIVE DATES.—The amendment made by subsection (a) shall be effective December 31, 1986. The amendment made by subsection (b) shall apply to acquisitions of securities after December 31, 1986. SEC. 1177. TRANSITION RULES.

(a) SECTION 1171.—The amendments made by section 1171 shall not apply in the case of a tax credit employee stock ownership plan if— (1) such plan was favorably approved on September 23, 1983, by employees, and (2) not later than January 11, 1984, the employer of such employees was 100 percent owned by such plan. (b) SUBTITLE NOT TO APPLY TO CERTAIN NEWSPAPER.—The amendments made by this subtitle shall not apply to any daily newspaper— (1) which was first published on December 17, 1855, and which ^" began publication under its current name in 1954, and » (2) which is published in a constitutional home rule city ^ (within the meaning of section 143(d)(3)(C) of the Internal Reve- nue Code of 1986) which has a population of less than 2,500,000.

TITLE XII—FOREIGN TAX PROVISIONS Subtitle A—Foreign Tax Credit ModiHcations SEC. 1201. SEPARATE APPLICATION OF SECTION 904 WITH RESPECT TO CERTAIN CATEGORIES OF INCOME.

(a) GENERAL RULE.—Paragraph (1) of section 904(d) (relating to separate application of section 904 with respect to certain income) is amended by striking out subparagraph (A), by redesignating subparagraphs (B), (C), (D), and (E) as subparagraphs (F), (G), (H), and (I), respectively, and by inserting before subparagraph (F) (as so redesignated) the following new subparagraphs: "(A) passive income, "(B) high withholding tax interest, "(C) financial services income, "(D) shipping income, "(E) dividends from each noncontrolled section 902 corporation,". (b) CATEGORIES DEFINED.—Subsection (d) of section 904 is amended by striking out paragraphs (2) and (3) and inserting in lieu thereof the following new paragraphs:

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