Page:United States Statutes at Large Volume 72 Part 1.djvu/1650

 1608

26 USC 162.

PUBLIC LAW 85-866-SEPT. 2, 1958

[72 S T A T.

SEC. 5. IMPROPER PAYMENTS TO OFFICIALS OF FOREIGN COUNTRIES. (a) DENIAL OF DEDUCTION.—Section 162 (relating to trade or business expenses) is amended by redesignating subsection (c) as subsection (d), and by inserting after subsection (b) the following new subsection: " (c) IMPROPER PAYMENTS TO OFFICIALS OR EMPLOYEES OF FOREIGN

26 USC 164.

COUNTRIES.—No deduction shall be allowed under subsection (a) for any expenses paid or incurred if the payment thereof is made, directly or indirectly, to an official or employee of a foreign country, and if the making of the payment would be unlawful under the laws of the United States if such laws were applicable to such payment and to such official or employee." (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply only with respect to expenses paid or incurred after the date of the enactment of this Act. The determination as to whether any expense paid or incurred on or before the date of the enactment of this Act shall be allowed as a deduction shall be made as if this section had not been enacted and without inference drawn from the fact that this section is not made applicable with respect to expenses paid or incurred on or before the date of the enactment of this Act. SEC. 6. PAYMENTS FOR MUNICIPAL SERVICES IN ATOMIC ENERGY COMMUNITIES. (a) TREATMENT AS TAX PAYMENTS.—Section 164 (relating to deduction for taxes) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection: " (f) PAYMENTS FOR MUNICIPAL SERVICES I N ATOMIC ENERGY COM-

42 USC 2304

42 USC 2361.

26 USC 165.

26 USC 166.

26 USC 168.

MUNITIES.—For purposes of this section, amounts paid or accrued, to compensate the Atomic Energy Commission for municipal-type services, by any owner of real property within any community (within the meaning of section 21 b of the Atomic Energy Community Act of 1955) shall be treated as real property taxes paid or accrued. For purposes of this subsection, the term 'owner' includes a person who holds the real property under a leasehold of 40 or more years and a person who has entered into a contract to purchase under section 61 of the Atomic Energy Community Act of 1955. Subsection (d) of this section shall not apply to a sale by the United States of property with respect to which this subsection applies." (b) The amendments made by subsection (a) shall apply with respect to taxable years beginning after December 31, 1957. SEC. 7. WORTHLESS SECURITIES IN AFFILIATED CORPORATIONS. Section 165(g)(3)(B) (relatingto worthless securities in affiliated corporations) is amended by striking out "rental from" and inserting in lieu thereof "rental of". SEC. 8. NONBUSINESS BAD DEBTS. Section 166(d)(2)(A) (relatingto definition of nonbusiness debt) is amended by striking out "a taxpayer's trade or business" and inserting in lieu thereof "a trade or business of the taxpayer". SEC. 9. FACILITIES FOR PRIMARY PROCESSING OF URANIUM ORE OR URANIUM CONCENTRATE. (a) NEW FACILITIES.—Section 168(e)(2) (relating to certifications of emergency facilities after August 22, 1957) is amended by striking out "or" at the end of subparagraph (A), by inserting "or" at the end of subparagraph (B), and by inserting after subparagraph (B) the following new subparagraph: " (C) to provide primary processing for uranium ore or uranium concentrate under a program of the Atomic Energy Commission for the development of new sources of uranium ore or uranium concentrate,".

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