Page:United States Statutes at Large Volume 56 Part 1.djvu/948

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 55 Stat. 22. 26 U.S. C., Supp. I, § 721 (a) (2) (B). (f) TECHNICAL AMENDMENT. -Section 721 (a) (2) (B) (relating to abnormalities on account of long-term contracts) shall not apply with respect to any taxable year beginning after December 31, 1941. SEC. 223. EXEMPT CORPORATIONS. (a) NOT EXEMPT IF CONSOLIDATED RETURNS FILED. - So much of 546tat. s988. section 727 as reads "The following corporations shall be exempt from the tax imposed by this subchapter" is amended to read as follows: "The following corporations, except a member of an affili- ated group of corporations filing consolidated returns under section Ante, p. 858 . 141, shall be exempt from the tax imposed by this subchapter". (b) PERSONAL SERVICE CORPORATION NOT EXEMPT IF CONSOLIDATED 26I. St.9725 RETURN FILED. -Section 725 (b) (relating to exemption of personal service corporations) is amended by inserting at the end thereof the following new sentence: "Such corporation shall not be exempt for such year if it is a member of an affiliated group of corporations Ante, . 858. filing consolidated returns under section 141." (c) EXEMPTION Or REGULATED INVESTMENT COMPANIES. -Section 54 Stat. 988. 265 taU... 727c) 727 (c) and (d) (relating to exemption of certain investment com- (d). panies from excess profits tax) are amended to read as follows: Ante,pp.878879. "(C) Regulated investment companies as defined in section 361 without the application of section 361 (b) (4)." SEC. 224. EXCESS PROFITS TAX RETURNS. 55 Stat. 30. 26U. S . C., Supp. I, i 729 (b) (1). 55 Stat. 29, 30. 26 U. S. C., Supp. I, 4§ 712 (c), 741 (b). 54 Stat. 989. 26U.S.C.§730; Supp. I, §730. 55 Stat. 30 . 26iI. S.C., Slupp. I, 5 729 (b). . nte, p . 902. Ante, p. 858. 54 Stat. 975, 989. 26U..C.§§710- 752; Supp. I, i§ 710- 743. (a) Section 729 (b) (1) (relating to double computation on returns) is repealed. (b) Sections 712 (c) and 741 (b) (relating to disclaimer of excess profits credit) are repealed. (c) The amendments made by this section shall be applicable with respect to taxable years beginning after December 31, 1939. SEC. 225. CONSOLIDATED RETURNS. (a) SECTION 730 NOT APPLICABLE.- Section 730 (relating to consoli- dated excess profits tax returns) shall not apply with respect to any taxable year beginning after December 31, 1941. (b) CRoss RErERENCE. -Section 729 (b) (relating to returns) is amended by adding at the end thereof the following new paragraph: "(3) CONSOLIDATED RETUrRN.- For provisions relating to con- solidated returns, see section 141." SEC. 226. EXEMPTION FROM TAX OF MINING OF CERTAIN STRATEGIC MINERALS. (a) EXEMPIION. - Subchapter E of Chapter 2 is amended by insert- ing after section 730 the following new section: "SEC. 731. CORPORATIONS ENGAGED IN MINING OF STRATEGIC MIN- ERALS. "In the case of any domestic corporation engaged in the mining of antimony, chromite, manganese, nickel, platinum, quicksilver, sheet mica, tantalum, tin, tungsten, or vanadium, the portion of the adjusted excess profits net income attributable to such mining in the United States shall be exempt from the tax imposed by this subchapter. The tax on the remaining portion of such adjusted excess profits net income shall be an amount which bears the same ratio to the tax computed without regard to this section as such remaining portion bears to the entire adjusted excess profits net income." (b) TAXABLE YEARs TO WHICH AMENDMENT APPLICABLE.- The amendment made by this section shall be applicable to taxable years beginning after December 31, 1940. 920 [56 STAT.

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