Page:United States Statutes at Large Volume 102 Part 4.djvu/713

 • • r - i ^ ^ l ^ "

PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3683

(2) The table of sections of subpart B of part II of subchapter A of chapter 1 of the 1986 Code is amended by striking out "of real property" in the item relating to section 453A. (c) EFFECTIVE DATE.— 26 USC 453A (1) IN GENERAL.—Except as provided in paragraph (2), the '^°**amendments made by this section shall apply to sales after December 31, 1988. (2) BINDING CONTRACT, ETC.—The amendments made by this section shall not apply to any sale on or before December 31, 1990, if— (A) such sale is pursuant to a written binding contract in effect on October 21, 1988, and at all times thereafter before such sale, (B) such sale is pursuant to a letter of intent in effect on October 21, 1988, or (C) there is a board of directors or shareholder approval for such sale on or before October 21, 1988. SEC. 5077. APPLICATION OF NET OPERATING LOSS RULES TO STOCK ACQUIRED BY AN EMPLOYEE STOCK OWNERSHIP PLAN.

(a) IN GENERAL.—Clause (ii) of section 382(1)(3)(C) of the 1986 Code is amended by striking "and" at the end of subclause (I), by striking the period at the end of subclause (II) and inserting in lieu thereof ", and", and by adding at the end thereof the following: "(III) immediately after the acquisition the plan has a number of participants which is not less than 50 percent of the average number of employees of the loss corporation during the 3-year period ending with such acquisition, for purposes of subclause (III), except as provided in regulations, all members of an affiliated group which includes the loss corporation and which files a consolidated return shall be treated as 1 loss corporation." (b) EFFECTIVE DATE.— (1) IN GENERAL.—The amendment made by subsection (a) shall apply to acquisition after December 31, 1988. (2) EXCEPTION.—The amendment made by subsection (a) shall not apply to acquisitions after December 31, 1988, pursuant to a binding written contract entered into on or before October 21, 1988.

TITLE VI—OTHER SUBSTANTIVE REVENUE PROVISIONS Subtitle A—Provisions Relating to Individuals SEC. 6001. TREATMENT OF CERTAIN AMOUNTS PAID TO OR FOR THE BENEFIT OF AN INSTITUTION OF HIGHER EDUCATION.

(a) IN GENERAL.—Section 170 of the 1986 Code is amended by redesignating subsection (m) as subsection (n) and by inserting after subsection (1) the following new subsection: "(m) TREATMENT OF CERTAIN AMOUNTS PAID TO OR FOR THE BENEFIT OF INSTITUTIONS OF HIGHER EDUCATION.—

26 USC 382 note.

�