Page:United States Statutes at Large Volume 49 Part 1.djvu/1971

 1926 7 4r-u CONGRESS. SESS. II. CHS. 811, 812 . JUNE 25, 1936. United States, or such American institution of research, or American firm or corporation, described in section 1 hereof, and has been carrying on the activities descri bed in this Act in their b ehalf. Approved, June 25, 1936. [CHAPTER 812 .1 AN ACT June 25, 1936 . [H. R. 5730 .] To amend section 3 ( b) of an Act entitl ed "An Act to estab lish the compositio n [Public, No . 804.1 of the United States Navy with respect to the categories of vessels limited by the treaties signed at Washington, February 6, 1922, and at London, April 22, 1930, at the limits prescribed by those treaties the construction of certain naval vessels ; and for other purposes", approved March 27, 1934 . Be it enacted by the Senate and House of Representatives of the Na val ves sels, eon- United States o f America in Congress assembled, That section 3 (b) struction under treaty cate gories. of an Act entitled "An Act to establish the composition of the United States Navy with respect to the categories of vessels limited by the treaties signed at Washington, February 6, 1922, and at London, April 22, 1930, at the limits prescribed by those treaties to authorize the construction of certain naval vessels ; and for other Vol. 48, p.505. purposes", approved March 27, 1934 (48 Stat . 505), is hereby amended by striking out the word "price" and inserting the words "pr ices, o f such c ontract s within the sc ope of this sec tion as are completed by the particular contracting party within the income- taxable year", after the words "of the total contract" ; by inserting the words "but the surety under s uch con tracts shall no t be li able for the payment of such excess profit : Provided, That if there is a net loss on all such contracts or subcontracts completed by the particular contractor or subcontractor within any income-taxable year, such net loss shall be allowed as a credit in determining the excess profit; if any, for the next succeeding income-taxable year :" after the words "property of the United States" ; by inserting the word "further" after the word "Provided" ; by deleting the word "may" after the words "the Secretary of the Treasury" and sub- stituting therefor the word "shall" ; and by adding at the end of the section the following proviso : "Provided further, That all pro- visions of law (including penalties) applicable with respect to the taxes imposed by Title I of the Revenue Act of 1934, and not inconsistent with this section, shall be applicable with respect to the assessment, collection, or payment of excess profits to the Trea- sury as provided by this section, and to refunds by the Treasury of overpayments of excess profits into the Treasury : And provided further, Th at this section shall not appl y to co ntracts or subc on- tracts for scientific equipment used for communication, target detec- tion, naviga tion, a nd fire control as may be so d esignate d by th e Secretary of the Navy, and the Secretary of the Navy shall report annually to the Congress the names of such contractors and sub- contractors affected by this provision, together with the applicable contracts and the amounts thereof." so that as amended said section 3 (b) will read as follows : Profit limited. " SECT. 3. (b) To pay into the Treasury profit, as hereinafter pro- vided shall be determined by the Treasury Department, in excess Computation. of 10 per centum of the total contract prices, of such contracts within the scope of this section as are completed by the particular contracting party within the income taxable year, such amount to surety' s liabilit y on become the property of the United States, but the surety under performance bonds. such contracts shall not be liable for the payment of such excess Provisos, profit : Provided, That if there is a net loss on all such contracts Credit ingye ssin negt su cceed ing y ear . or s ubcontra cts com pleted b y the p articula r contr actor or subcon - tractor within any income taxable year, such net loss shall be
 * to authorize