Page:United States Statutes at Large Volume 58 Part 1.djvu/56

 [58 STAT. PUBLIC LAWS-CH. 63 -FEB. 25, 1944 56 Stat. 825 . 26 U. 8. C., dupp. m, 523 (x). Post,p. 236. " Blind individuaL" 56 Stat. 830. 25 U.S. 0. Supp. m, 26 (h) (1). 56 Stat. 830. 26U. .C Supp. II, 126(h) (2i (B). 53 Stat. 40, 39. 26 U.S. c. §§ 112 (g) (1), 112 (d), (e). Podt,pp. 41, 43. 53 Stat. 99 . 26U. . c..§ 371- 373; Supp. II, § 371 seq. S3 tat. 28. a U.S.0. I§4. SEC. 115. SPECIAL DEDUCTION FOR BLIND. Section 23 (relating to deductions in computing net income) is amended by inserting after section 23 (x) the following: "(v) SPECIAL DEDUCTION FOR BLIND INDIVIDUALS. - "(1) IN GENERAL.-In the case of a blind individual, $500. For the purposes of this subsection, the status of the individual, inso- far as it affects the application of this subsection to such individ- ual, shall be determined as of July 1 of the taxable year, unless the taxable year does not include July 1, in which case such status shall be determined as of the last day of the taxable year. "(2) DEFINIrroN. - For the purposes of this subsection, the term 'blind individual' means an individual whose central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or whose visual acuity is greater than 20/200 but is accom- panied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees." SEC. 116 . CREDIT FOR DIVIDENDS PAID ON PREFERRED STOCK OF PUBLIC UTILITIES. (a) DIVIDENDS UNPAID AND AccurMLATE. - Section 26 (h) (1) (relating to credit for dividends paid on certain preferred stock) is amended by inserting at the end of the first sentence thereof the fol- lowing: "For the purposes of the credit provided in this subsection the amount of dividends paid shall not include any amount distrib- uted in the current taxable year with respect to dividends unpaid and accumulated in any taxable year ending prior to October 1, 1942. Amounts distributed in the current taxable year with respect to dividends unpaid and accumulated for a prior taxable year shall for the purposes of this paragraph be deemed to be distributed with respect to the earliest year or years for which there are dividends unpaid and accumulated." (b) STOCK ISSUED TO REPLACE EXISTING SECURITIES.-Section 26 (h) (2) (B) (defining "preferred stock") is amended by inserting at the end thereof the following: "Stock issued on or after October 1, 1942, shall be deemed for the purposes of this paragraph to have been issued prior to October 1, 1942, if it was issued (including issuance either by the same or another corporation in a transaction which is a reorganization, as defined in section 112 (g) (1), or a transaction to which section 112 (b) (10), or so much of section 112 (d) or (e) as relates to section 112 (b) (10), is applicable, or which is a transaction subject to Supplement R) to refund or replace bonds or debentures issued prior to October 1, 1942, or to refund or replace other pre- ferred stock (including stock which is preferred stock by reason of this sentence), but only to the extent that the par or stated value of the new stock does not exceed the par, stated, or face value of the bonds or debentures issued prior to October 1, 1942, or the other preferred stock, which such new stock is issued to refund or replace. The determination of whether stock was issued to refund or replace bonds or debentures issued prior to October 1, 1942, or to refund or replace other preferred stock, shall be made under regulations pre- scribed by the Commissioner with the approval of the Secretary. SEC. 117. RETURNS BY ORGANIZATIONS EXEMPT FROM TAXATION. (a) IN GENiEAL.- Section 54 (relating to records and special returns) is amended by inserting after subsection (e) the following:

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