Page:United States Statutes at Large Volume 101 Part 2.djvu/1202

 101 STAT. 1330-408 >>m::;ir: r '

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PUBLIC LAW 100-203—DEC. 22, 1987 i

graph provide for reasonable preferred returns or reasonable guaranteed payments." 26 USC 514 note. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to— (1) property acquired by the partnership after October 13, 1987, and (2) partnership interests acquired after October 13, 1987, except that such amendments shall not apply in the Case of any property (or partnership interest) acquired pursuant to a written binding contract in effect on October 13, 1987, and at all times thereafter before such property (or interest) is acquired. SEC. 10215. STUDY. The Secretary of the Treasury or his delegate shall conduct a study of— (1) the issue of treating publicly traded limited partnerships (and other partnerships which significantly resemble corporations) as corporations for Federal income tax purposes, including the issues of disincorporation and opportunities for avoidvvt^; ance of the corporate tax, and (2) the administrative and compliance issues related to the tax treatment of publicly traded partnerships and other large partnerships. Reports. Not later than January 1, 1989, the Secretary of the Treasury or his delegate shall submit a report on such study to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate, together with such recommendations as he may deem appropriate. Not later than May 1, 1988, an interim report with respect to the issues referred to in paragraph (2) shall be submitted to such Committees.

) PART III—CORPORATE PROVISIONS SEC. 10221. REDUCTION IN DIVIDENDS RECEIVED DEDUCTION FOR DIVIDENDS FROM CORPORATIONS NOT 20-PERCENT OWNED.

(a) GENERAL RULE.—The following provisions are each amended by striking out "80 percent" and inserting in lieu thereof "70 percent": (1) Section 243(a)(l) (relating to dividends received by corporations). (2) Subsections (a)(3) and 0)X2) of section 244 (relating to ^^ dividends received on certain preferred stock). (b) RETENTION OF 80-PERCENT DIVIDENDS RECEIVED DEDUCTION FOR DIVIDENDS FROM 20-PERCENT OWNED CORPORATIONS.—Section 243 is

amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection 0)) the following new subsection: (c) RETENTION OF 80-PERCENT DIVIDENDS RECEIVED DEDUCTION FOR DIVIDENDS FROM 20-PERCENT OWNED CORPORATIONS.—

"(1) IN GENERAL.—In the c€ise of any dividend received from a 20-percent owned corporation— "(A) subsection (a)(1) of this section, and ^^-"(B) subsections (a)(3) and m2) of section 244, shall be applied by substituting '80 percent' for '70 percent'. •i "(2) 20-PERCENT OWNED CORPORATION.—For purposes of this "' section, the term '20-percent owned corporation means any • corporation if 20 percent or more of the stock of such corpora-

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