Page:United States Statutes at Large Volume 70.djvu/843

 70 S T A T. ]

" (b) SECRETARY.—The term 'Secretary' means the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, the Secretary of the Air Force, the Secretary of Commerce (with respect to the Maritime Administration), the Federal Maritime Board, the Administrator of General Services, the Atomic Energy Commission, and the head of any other agency of the Government which the President shall designate as a Department pursuant to subsection (a) of this section." (b) The amendment made by subsection (a) shall take effect on December 31, 1956. SEC. 4. (a) Section 103 of such Act (50 U.S.C. App., sec. 1213) is amended by adding at the end thereof the following new subsection: "(m)

787

PUBLIC LAW 870-AUG. 1, 1956 •Secretary'

Effective date.i 65 Stat. 11.

Two-YEAR Loss CARRYFORWARD.—

"(1) ALLOWANCE.—Notwithstanding any other provision of this section, the renegotiation loss deduction for any fiscal year ending on or after December 31, 1956, shall be allowed as an item of cost in such fiscal 3^ear, under regulations of the Board. "(2) DEFINITIONS.—For the purposes of this subsection— " (A) The term 'renegotiation loss deduction' means, for any fiscal year ending on or after December 31, 1956, the sum of the renegotiation loss carryforwards to such fiscal year from the preceding two fiscal years. " (B) The term 'renegotiation loss' means, for any fiscal year, the excess, if any, of costs (computed without the application of this subsection and the third sentence of subsection (f)) paid or incurred in such fiscal year with respect to receipts or accruals subject to the provisions of this title over the amount of receipts or accruals subject to the provisions of this title which were received or accrued in such fiscal year, but only to the extent that such excess did not result from gross inefficiency of the contractor or subcontractor. "(3) AMOUNT OF CARRYFORWARDS.—A renegotiation loss for any fiscal year (hereinafter in this paragraph referred to as the 'loss year') shall be a renegotiation loss carryforward to the first fiscal year succeeding the loss year. Such renegotiation loss, after being reduced (but not below zero) by the profits derived from contracts with the Departments and subcontracts in the first fiscal year succeeding the loss year, shall be a renegotiation loss carryforward to the second fiscal year succeeding the loss year. For the purposes of the preceding sentence, the profits derived from contracts with the Departments and subcontracts in the first fiscal year succeeding the loss year shall be computed as follows: " (A) If such first fiscal year ends on or after December 31, 1956, such profits shall be computed by determining the amount of the renegotiation loss deduction for such first fiscal year without regard to the renegotiation loss for the loss year. " (B) If such first fiscal year ends before December 31, 1956, such profits shall be computed without regard to any renegotiation loss for the loss year or any fiscal year preceding the loss year." (b) The third sentence of section 103(f) of such Act is amended by striking out "any fiscal year," and inserting in lieu thereof "any fiscal year ending before December 31, 1956,". SEC. 5. (a) Section 105(e)(1) of such Act (50 U.S.C. App., sec. 1215 (e)(1)) is amended to read as follows: "(1) FURNISHING OF FINANCIAL STATEMENTS, ETC.—Every person who holds contracts or subcontracts, to which the provisions of this title are applicable, shall, in such form and detail as the

65 Stat. 9.

65 Stat. 15.

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