Page:United States Statutes at Large Volume 101 Part 2.djvu/1181

 PUBLIC LAW 100-203—DEC. 22, 1987

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101 STAT. 1330-387

(i) continuously offered pursuant to a public offering (within the meaning of section 4 of the Securities Act of 1933, as amended (15 U.S.C. 77a to 77aa)), (ii) regularly traded on an established securities market, or (iii) held by or for no fewer than 500 persons at all times during the taxable year.

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(B) SECRETARY MAY REDUCE 500 PERSON REQUIREMENT.—

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The Secretary of the Treasury or his delegate may by Regulations. regulation decrease the minimum shareholder requirement of subparagraph (A)(iii) in the case of regulated investment companies which experience a loss of shareholders through net redemptions of their shares,

(b) CHANGES IN DISTRIBUTION REQUIREMENTS.— (1) INCREASE IN REQUIRED DISTRIBUTION OF INCOME.—Para-

graph (1) of section 4982(b) (defining required distribution) is amended by striking out "90 percent in subparagraph (B) and inserting in lieu thereof "98 percent". (2) EFFECTIVE DATE.—The amendment made by paragraph (1) 26 USC 4982 shall take effect as if included in the amendments made by ^°^section 651 of the Tax Reform Act of 1986.

Subtitle B—Business Provisions PART I—ACCOUNTING PROVISIONS SEC. 10201. REPEAL OF RESERVE FOR ACCRUAL OF VACATION PAY.

(a) GENERAL RULE.—Section 463 (relating to accrual of vacation pay) is hereby repealed. (b) TECHNICAL AMENDMENTS.—

(1) Section 81 is hereby repealed. (2) Subparagraph (B) of section 404(b)(2) is amended to read as follows: "(B) EXCEPTION.—Subparagraph (A) shall not apply to any benefit provided through a welfare benefit fund (as denned in section 419(e))." (3) Section 404(a)(5) is amended by adding at the end thereof the following new sentence: "For purposes of this section, any vacation pay which is treated as deferred compensation shall be deductible for the taxable year of the employer in which paid to the employee." (4) Paragraph (2) of section 419(e) is amended by inserting "or" at the end of subparagraph (B), by striking out, or" at the end of subparagraph (C), and inserting in lieu thereof a period, and by striking out subparagraph (D). (5) Paragraph (5) of section 461(h) is amended to read as follows: "(5) SUBSECTION NOT TO APPLY TO CERTAIN ITEMS.—This subsec-

tion shall not apply to any item for which a deduction is allowable under a provision of this title which specifically provides for a deduction for a reserve for estimated expenses." (6) The table of sections for part II of subchapter B of chapter 1 is amended by striking out the item relating to section 81. (7) The table of sections for subpart C of part II of subchapter E of chapter 1 is amended by striking out the item relating to section 463.

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