Page:United States Statutes at Large Volume 103 Part 3.djvu/304

 103 STAT. 2372 PUBLIC LAW 101-239—DEC. 19, 1989 "(i) INTANGIBLE DRILLING COSTS, —The adjustments provided in section 312(n)(2)(A) shall apply in the case of amounts paid or incurred in taxable years beginning after December 31, 1989. "(ii) CERTAIN AMORTIZATION PROVISIONS NOT TO APPLY. —Sections 173 and 248 shall not apply to expenditures paid or incurred in taxable year begin- ning after December 31, 1989. "(iii) LIFO INVENTORY ADJUSTMENTS. — The adjust- ments provided in section 312(n)(4) shall apply. "(iv) INSTALLMENT SALES. — In the case of any install- '' ' ment sale in a taxable year beginning after December 31, 1989, adjusted current earnings shall be computed • as if the corporation did not use the installment method. The preceding sentence shall not apply to the applicable percentage (as determined under section 453A) of the gain from any installment sale with re- spect to which section 453A(a)(l) applies." (c) EuMiNATiON OF BooK LIMITATION ON DEPLETION.—Subpara- graph (G) of section 56(g)(4) is amended to read as follows: "(G) DEPLETION.— The allowance for depletion with re- spect to any property placed in service in a taxable year beginning after 1989 shall be cost depletion determined under section 611." (d) TREATMENT OF CERTAIN DIVIDENDS. —Clause (ii) of section 56(g)(4)(C) is amended to read as follows: "(ii) SPECIAL RULE FOR CERTAIN DIVIDENDS.— "(I) IN GENERAL.— Clause (i) shall not apply to any deduction allowable under section 243 or 245 for any dividend which is a 100-percent dividend or which is received from a 20-percent owned corpora- tion (as defined in section 243(c)(2)), but only to the extent such dividend is attributable to income of the paying corporation which is subject to tax under this chapter (determined after the applica- tion of sections 936 and 921). " (II) 100-PERCENT DIVIDEND. —For purposes of the subclause (I), the term '100 percent dividend' means any dividend if the percentage used for purposes of determining the amount allowable as a deduction under section 243 or 245 with respect to such dividend is 100 percent." (e) SPECIAL RULE FOR CERTAIN DIVIDENDS RECEIVED BY COOPERA- TIVES. —Subparagraph (C) of section 56(g)(4) is amended by adding at the end thereof the following new clause: "(iv) SPECIAL RULE FOR CERTAIN DIVIDENDS RECEIVED BY CERTAIN COOPERATIVES. —In the case of a cooperative described in section 927(a)(4), clause (i) shall not apply to any amount allowable as a deduction under section 245(c)." (f) TECHNICAL AND CONFORMING AMENDMENTS.— (1) Clause (i) of section 56(g)(4)(H) is amended by striking "after the date of the enactment of the Tax Reform Act of 1986 ' and inserting "in a taxable year beginning after 1989". (2) Clause (i) of section 56(g)(4)(B) is amended by adding at the end thereof the following new sentence:

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