Page:United States Statutes at Large Volume 56 Part 1.djvu/928

 PUBLIC LAWS--CH. 619-OCT. 21, 1942 Ante, p. 899; post, p. 931. Ante, pp. 806,899. Post, p. 903. 66 Stat. 17. 26U. S.C., Supp.I, i 710 (b) (3). 66 Stat. 17. 26U. S .C ., Supp. I. ! 710 (c). "Unused excess profits credit." SEC. 203. CERTAIN FISCAL YEAR TAXPAYERS. (a) COMPUTATION OF TAX FOR YEAR ENDING IN 1942. - Section 710 (a) (relating to imposition of excess-profits tax) is amended by in- serting at the end thereof the following new paragraph: " (3) TAXABLE YEARS BEGINNING IN 1941 AND ENDING AFTER JUNE 30, 1942. - In the case of a taxable year beginning in 1941 and ending after June 30, 1942, the tax shall be an amount equal to the sum of- " (A) that portion of a tentative tax under this subchapter, computed without regard to section 203 of the Revenue Act of 1942, which the number of days in such taxable year before July 1, 1942, bears to the total number of days in such taxable year, plus "(B) that portion of a tentative tax under this subchapter, computed as if the amendments made by sections 105 (c), 105 (d), 202, and 206 of the Revenue Act of 1942 were applicable to such taxable year, which the number of days in such taxable year after June 30, 1942, bears to the total number of days in such taxable year." (b) TAXABLE YEARS TO WAICH AMENDMENT APPLICABLE.- The amendment made by this section shall be applicable to taxable years beginning in 1941 and ending after June 30, 1942. SEC. 204. TWO-YEAR CARRY-BACK OF UNUSED EXCESS PROFITS CREDIT. (a) TECHNICAL AMENDMENT.- Section 710 (b) (3), relating to the deduction of the excess profits credit carry-over, is amended by strik- ing out "excess profits credit carry-over" and by inserting in lieu thereof "unused excess profits credit adjustment". (b) CARRY-BACK OF UNUSED CREDIT. -Section 710 (c) (relating to the determination of the excess profits credit carry-over) is amended to read as follows: "(c) UNUSED EXCESS PROFITS CREDIT ADJUSTMENT. - "(1) COMPUTATION OF UNUSED EXCESS PROFITS CREDIT ADJUST- MENT.- T he unused excess profits credit adjustment for any tax- able year shall be the aggregate of the unused excess profits credit carry-overs and unused excess profits credit carry-backs to such taxable year. "(2) iEFINITION OF UNUSED EXCESS PROFITS CREDIT.- The term 'unused excess profits credit' means the excess, if any, of the excess profits credit for any taxable year beginning after Decem- ber 31, 1939, over the excess profits net income for such taxable year, computed on the basis of the excess profits credit applicable to such taxable year. For such purpose the excess profits credit and the excess profits net income for any taxable year beginning in 1940 shall be computed under the law applicable to taxable years beginning in 1941. The unused excess profits credit for a taxable year of less than twelve months shall be an amount which is such part of the unused excess profits credit determined under the first sentence of this paragraph as the number of days in the taxable year is of the number of days in the twelve months ending with the close of the taxable year. "(3) AMOUNT OF UNUSED EXCESS PROFITS CREDIT CARRY-BACK AND CARRY-OVER. - "(A) Unused Excess Profits Credit Carry-Back.-I f for any taxable year beginning after December 31, 1941, the taxpayer has an unused excess profits credit, such unused 900 [56 STAT.

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