Page:United States Statutes at Large Volume 58 Part 1.djvu/77

 78TH CONG., 2D SESS.- CH. 63-- 'EB. 25,1944 "(5) NATURAL GAS PROPERTY.- The term 'natural gas property' means the property of a natural gas company used for the with- drawal, storage, and transportation by pipe line, of natural gas, excluding any part of such property which is an emergency facility under section 124." St. .O 124 (2) TIMBER BLOcK.- Section 735 (a) (8) (defining "timber supp. Il, § 24. block") is amended to read as follows: 26 Ut. ., Supp. "(8) TIMBER BLOCK. -The term 'timber block' means an opera- III § 735 (a) (8). tion unit which includes all the taxpayer's timber which would logically go to a single given point of manufacture." 26 U S. C., Supp. (3) UNIT NET INCOME.- Section 735 (a) (12) (defining "unit l Stat. 90 6. net income") is amended by inserting after the period at the InI, 735 (a)(12). end thereof the following: "In respect of a natural gas property, the term 'unit net income' means the amount ascertained by dividing the net income, computed in accordance with regulations prescribed by the Commissioner with the approval of the Secre- tary, from such property during the taxable year by the number of natural gas units sold in such year." (c) NONTAXABLE INCOME.- Section 735 (b) (relating to nontaxable 6 Stat. 06 pp. income from exempt excess output) is amended by inserting at the end II, §735 (b). thereof the following: "(4) COAL AND IRON MINES AND TIMBER PROPERTIES NOT IN OPERA- TION DURIN BASE rPEROD. -For any taxable year, the nontaxable income from exempt excess output of a coal mining or iron mining property or a timber block, which was not in operation during the base period, shall be an amount equal to one-sixth of the net income for such taxable year (computed with the allowance for depletion) from the coal mining or iron mining property or from the timber block, as the case may be. "(5) NATURAL GAS COMPANIES.- In the case of a natural gas company any of the natural gas property of which was in opera- tion during the base period, the nontaxable income from exempt excess output for any taxable year shall be an amount equal to the excess output for such year multiplied by one-half of the unit net income for such year." (d) EXCEss PROFITS CREDrr CTOMPrOD UNDER INCOME CREDTr. - Section 711 (a) (1) (I) (relating to nontaxable income of certain 6St.atO, Supp. industries with depletable resources) is amended to read as follows: II, 711 (a) . "(I) Nontaxable Income of Certain Industries With Deplet- able Resources. -In the case of a producer of minerals, or a producer of logs or lumber from a timber block, or a lessor of mineral property, or a timber block, as defined in section 735, 26 U.. t ., supp. there shall be excluded nontaxable income from exempt excess III, 736. output of mines and timber blocks provided in'section 735; An, p 66 a in the case of a natural gas company, as defined in section 735, there shall be excluded nontaxable income from exempt excess output provided in section 735; and in the case of a producer of minerals, or a producer of logs or lumber from a timber block, there shall be excluded nontaxable bonus income pro- vided in section 735. In respect of nontaxable bonus income provided in section 735 (c), a corporation described in section 735 (c) (2) shall be deemed a producer of minerals for the purposes of this subparagraph." (e) ExcEss PRoFrrs CREDrI CoMPUTED UNDME INVEraED CATrrAD CmDrr.L-Section 711 (a) (2) (K) (relating to excess profits credit u 0D snpp. computed under invested capital credit) is amended to read as follows: m, mu (a)ca (. "(K) Nontaxable Income of Certain Industries With Depletable Resources.-In the case of a producer of minerals, 57 58 STAT.]

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