Page:United States Statutes at Large Volume 72 Part 1.djvu/1681

 72 S T A T. ]

PUBLIC LAW 8 5 - 8 6 6 - S E P T. 2, 1958

1639

(c) EFFECTIVE DATE.—The amendinent made by subsection (a) shall apply only with respect to taxable years ending after the date of the enactment of this Act. The amendments made by subsection (b) shall take effect on the day following the date of the enactment of this Act. SEC. 41. CREDITS FOR DIVIDENDS RECEIVED AND FOR PARTIALLY TAX-EXEMPT INTEREST IN CASE OF NONRESIDENT ALIENS. (a) MINIMUM TAX.—Section 871(b) (relating to tax on certain nonresident alien individuals) is amended— (1) by striking out the semicolon at the end of paragraph (2) and inserting in lieu thereof a period; (2) by striking out paragraph (3); and (3) by adding at the end thereof the following new sentences: "If (without regard to this sentence) the amount of the taxes imposed in the case of such an individual under section 1 or under section 1201 (b), minus the sum of the credits under sections 34 and 35, is an amount which is less than 30 percent of the sum of— " (A) the aggregate amount received from the sources specified in subsection (a)(l), p l u s " (B) the amount, determined under subsection (a)(2), by which gains from sales or exchanges of capital assets exceed losses from such sales or exchanges, then this subsection shall not apply and subsection (a) shall apply. For purposes of this subsection, the term 'aggregate amount received from the sources specified in subsection (a)(1)' shall be applied without any exclusion under section 116." (b)

CREDIT FOR PARTIALLY TAX-EXEMPT INTEREST.—Section

26 USC 87i.

26 USC 1201,

35

(relating to credit for partially tax-exempt interest received by individuals) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: "(c)

CERTAIN NONRESIDENT ALIENS INELIGIBLE FOR CREDIT.—No

credit shall be allowed under subsection (a) to a nonresident alien individual with respect to whom a tax is imposed for the taxable year under section 871(a). " (c) EFFECTIVE DATE.—The amendments made by this section shall apply only with respect to taxable years beginning after December 31, 1957.

SEC. 42, CARRYBACK AND CARRYOVER OF FOREIGN TAX CREDIT. (a) ALLOWANCE.—Section 904 (relating to limitation on foreign tax credit) is amended by adding at the end thereof the following new subsection: "(c) CARRYBACK AND CARRYOVER OF EXCESS TAX PAID.—Any amount by which any such tax paid or accrued to any foreign country or possession of the United States for any taxable year beginning after December 31, 1957, for which the taxpayer chooses to have the benefits of this subpart exceeds the limitation under subsection (a) shall be deemed tax paid or accrued to such foreign country or possession of the United States in the second preceding taxable year, in the first preceding taxable year, and in the first, second, third, fourth, or fifth succeeding taxable years, in that order and to the extent not deemed tax paid or accrued in a prior taxable year, in the amount by which the limitation under subsection (a) for such preceding or succeeding taxable year exceeds the sum of the tax paid or accrued to such foreign country or possession for such preceding or succeeding taxable year and the amount of the tax for any taxable year earlier than the current taxable year which shall be deemed to have been paid or accrued in such preceding or subsequent taxable year (whether or not the taxpayer chooses to have the benefits of this subpart with respect to such

26 USC 904-

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