Page:United States Statutes at Large Volume 100 Part 3.djvu/994

 100 STAT. 2802

PUBLIC LAW 99-514—OCT. 22, 1986 January 1, 1994, or the date on which the voting power of the preferred stock in such New York corporation terminates. "(7) ELECTION TO HAVE AMENDMENTS APPLY FOR YEARS BEGIN-

NING AFTER 1983.—If the common parent of any group makes an election under this paragraph, notwithstanding any other provision of this subsection, the amendments made by subsection (a) shall apply to such group for taxable years beginning after December 31, 1983. Any such election, once made, shall be irrevocable. "(8) TREATMENT OF CERTAIN AFFIUATED GROUPS.—If—

"(A) a corporation (hereinafter in this paragraph referred to as the parent') was incorporated in 1968 and filed consolidated returns as the parent of an affiliated group for each of its taxable years ending after 1969 and before 1985, "(B) another corporation (hereinafter in this paragraph referred to as the 'subsidiary') became a member of the parent's affiliated group in 1978 by reason of a recapitalization pursuant to which the parent increased its voting ^^j interest in the subsidiary from not less than 56 percent to not less than 85 percent, and ,.p "(C) such subsidiary is engaged (or was on September 27, 1985, engaged) in manufacturing and distributing a broad „l line of business systems and related supplies for binding, laminating, shredding, graphics, and providing secure identification, then, for purposes of determining whether such subsidiary corporation is a member of the parent's affiliated group under section 1504(a) of the Internal Revenue Code of 1954 (as amended by subsection (a)), paragraph (2)(B) of such section 1504(a) shall be applied by substituting '55 percent' for '80 percent'. "(9) TREATMENT OF CERTAIN CORPORATIONS AFFIUATED DURING

1971.— In the case of a group of corporations which filed a consolidated Federal income tax return for the taxable year beginning during 1971 and which— "(A) included as a common parent on December 31, 1971, » o.< a Delaware corporation incorporated on August 26, 1969, and "(B) included as a member thereof a Delaware corporation incorporated on November 8, 1971, for taxable years beginning after December 31, 1970, and ending before January 1, 1988, the requirements for affiliation for each member of such group under section 1504(a) of the Internal Revenue Code of 1954 (before the amendment made by subsection (a)) shall be limited solely to the provisions expressly contained therein and by reference to stock issued under State 5 law as common or preferred stock. During the period described in the preceding sentence, no provision of the Internal Revenue Code of 1986 (including sections 269 and 482) or principle of law, except the general consolidated return regulations (including the provisions relating to separate return limitation years) and sections 382 and 383 of such Code, shall apply to deny the K?; =. benefit or use of losses incurred or credits earned by members of such group." (5) TREATMENT OF CERTAIN SELL-DOWNS.—Paragraph (4)

i j

of

section 600t)) of the Tax Reform Act of 1984 (relating to excep, tion for certain sell-downs) is amended by adding at the end

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