Page:United States Statutes at Large Volume 68 Part 1.djvu/1149

 68 S T A T. ]

1117

PUBLIC LAW 764-SEPT. 1, 1954

SEC. 4. (a) Paragraph (1) of section 106(c) of such Act is hereby amended by striking out "from subcontracts" and inserting in lieu thereof "from contracts or subcontracts." (b) Paragraph (1) of section 106(c) of such Act is further amended by inserting " (A) " after the word "except" and by adding before the period at the end of such paragraph the following: "and (B) to receipts and accruals from contracts for new durable productive equipment in cases in which the Board finds that the new durable productive equipment covered by such contracts cannot be adapted, converted, or retooled for commercial use". (c) Paragraph (2) of such section 106(c) is hereby amended to read as follows: "(2) DEFINITION.—For the purpose of this subsection, the term 'durable productive equipment' means machinery, tools, or other equipment which does not become a part of an end product, or of an article incorporated therein, and which has an average useful life of more than five years." (d) The amendments made by subsections (a), (b), and (c) shall apply only with respect to fiscal years (as defined in section 103(h) of the Renegotiation Act of 1951) ending on or after June 30, 1953. SEC. 5. (a) Section 106(a) of such Act is hereby amended— (1) by striking out, in paragraph (7), "by reason of this subsection." and inserting in lieu thereof "by reason of any paragraph, other than paragraph (8), of this subsection; or"; and (2) by adding at the end of such section the following: "(8) any contract or subcontract for the making or furnishing of a standard commercial article, unless the Board makes a specific finding that competitive conditions affecting the sale of such article are such as will not reasonably prevent excessive profits. This paragraph shall apply to any such contract or subcontract only if (1) the contractor or subcontractor files, at such time and in such form and detail as the Board shall by regulations prescribe, such information and data as may be required by the Board under its regulations for the purpose of enabling it to reach a decision with respect to the making of a specific finding under this paragraph, and (2) within a period of six months after the date of filing of such information and data, the Board fails to make a specific finding that competitive conditions affecting the sale of such article are such as will not reasonably prevent excessive profits, or (3) within such six-month period, the Board makes a specific finding that competitive conditions affecting the sale of such article are such as will reasonably prevent excessive profits. Any contractor or subcontractor may waive the exemption provided in this paragraph with respect to receipts or accruals in any fiscal year by including a statement to such effect in the financial statement filed by such contractor or subcontractor for such fiscal year pursuant to section 105(e)(1). Any specific finding of the Board under this paragraph shall not be reviewed or redetermined by any court or agency other than by the Tax Court of the United States in a proceeding for a redetermination of the amount of excessive profits determined by an order of the Board. For the purpose of this paragraph— " (A) the term 'article' includes any material, part, component, assembly, machinery, equipment, or other personal property;

Durable productive equipment.

50 USC 1213,

app,

50 USC 1216.

a p ]p,

Standard commercial articles., E x c e s s i v e profits.

50 USC 1215.

app,

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