Page:United States Statutes at Large Volume 55 Part 1.djvu/55

 PUBLIC LAWS-CH. 10-MAR. 7, 1941 credit computed under section 714, the credit so disclaimed shall not, for the purposes of the internal revenue laws, be applicable to the computation of the tax under this subchapter for such taxable year." SEC. 14 . EXCESS PROFITS CREDIT OF ACQUIRING CORPORATIONS. 64 Stat. 992. Section 741 of the Internal Revenue Code is amended to read as 26U. S.C. 741. follows: followsEC 741. ALLOWANCE OF EXCESS PROFITS CREDIT. "SEC. 741. ALLOWANCE OF EXCESS PROFITS CREDIT. 54 Stat. 980, 981. 26U.S.C.§§713, 714. Ante, p. 19. "(a) ALLOWANCE.-In the case of a taxpayer which is an acquiring corporation which was in existence on the date of the beginning of its base period, the excess profits credit for any taxable year shall be an amount computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the tax- able year for which the tax under this subchapter is being computed. "(b) EFFrwr OF DISCLAIER OF CREDrr. -If the taxpayer states in its return for the taxable year under this subchapter that it disclaims the use of the credit computed under section 713 or the use of the credit computed under section 714, the credit so disclaimed shall not, for the purposes of the internal revenue laws, be applicable to the computation of the tax under this subchapter for such taxable year." SEC. 15. AVERAGE BASE PERIOD NET INCOME OF ACQUIRING COR- PORATIONS. 54 Stat. 992. So much of section 742 of the Internal Revenue Code as follows the section heading and precedes the beginning of subsection (a) is amended to read as follows: "In the case of a taxpayer which is an acquiring corporation the Su pra . excess profits credit of which is allowed under section 741, its average base period net income (for the purpose of the credit com- 54 Sta't. 713. puted under section 713) if the taxpayer was actually in existence 26 U. S .C. 1713. Ante, p. 19. before January 1, 1940, shall, at the election of the taxpayer made in its return for the taxable year, be computed as follows, and if the taxpayer was not actually in existence before such date, shall be computed as follows, in lieu of the method provided in section 713 :". SEC. 16. COMPUTATION OF CREDITS ON RETURNS. 54 Stat. 989. 26 U.S . C. §729(b). Ante, p. 29, supra. 54 Stat. 980, 981. 26 C.S.C. §§713, 714. Ante, p. 19. Section 729 (b) of the Internal Revenue Code is amended by striking out "(b) RETURNS.-" and inserting in lieu thereof the following: "(b) RETURNS. - "(1) COMPUTATION OF EXCESS PROFITS CREDITS. - In the case of a taxpayer which under section 712 or section 741 is entitled to have the excess profits credit computed under section 713 or section 714, whichever results in the lesser tax under this sub- chapter, the return under this subchapter for any taxable year shall contain computations of two tentative taxes, one with the credit computed under section 713 and one with the credit computed under section 714; and the return shall contain all information which the Commissioner, by regulations prescribed by him with the approval of the Secretary, may prescribe as necessary for such computations. If the taxpayer states in such return that it disclaims the use of one of such credits in the computation of the tax under this subchapter for the taxable 30 [55 STAT.

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