Page:United States Statutes at Large Volume 73.djvu/177

 78 S T A T. ]

PUBLIC LAW 86-69-JUNE 26, 1969

189

SEC. 3. TECHNICAL AMENDMENTS AND PROVISIONS. (a) CBEDIT AND EXCLUSION FOR DIVIDENDS RECEIVED BY INDIVIDUALS FROM LIFE INSURANCE COMPANIES.—

(1) Section 34(c) of the Internal Revenue Code of 1954 (re- 26 USC 34. lating to denial of credit for dividends received by individuals) is amended by striking out paragraph (1) and redesignating paragraphs (2) and (3) as (1) and (2), respectively. (2) Section 116(b^ of such Code (relating to denial of exclu- ^e use ne. sion for certain dividends) is amended by striking out paragraph (1) and redesignating paragraphs (2) and (3) as (1) and (2), resjpectively. (3) The amendments made by this subsection shall apply to dividends received after December 31, 1958, in taxable years ending after such date. (b) CREDIT FOR FOREIGN TAXES.—Section 841 of such Code is 26 USC 841. amended by striking out "811," in the first sentence, and by striking out paragraph (1) and inserting in lieu thereof the following: " (1) m the case of the tax imposed by section 802, the life insurance company taxable income (as defined in section 802(b)), and". I C I C^ARRYOVERfi —-

(1) Section 381(c) of such Code (relating to items of dis- 26use38i. tributor or transferor corporations taken into account) is amended by adding at the end thereof the following new paragraph: "(22) SUCCESSOR LIFE INSURANCE COMPANY.—If the acquiring corporation is a life insurance company (as defined in section 801(a)), there shall be taken into account (to the extent proper to carry out the purposes of this section and part I of subchapter L, and under such regulations as may be prescribed by the "*"'*' ^' ' ^^' Secretary or his delegate) the items required to be taken into account for purposes of part I of subchapter L (relating to life insurance companies) in respect of the distributor or transferor corporation." (2) Section 381 of such Code is amended by adding at the end 26 USC 38i. thereof the following new subsection: " (d) OPERATIONS LOSS INSURANCE COMPANIES.—

CARRYBACKS AND CARRYOVERS OF L I F E

"For application of this part to operations loss carrybacks and carryovers of life insurance companies, see section 812(f)." (d)

ADJUSTMENTS TO BASIS.—

(1) Section 1016(a)(3) of the Internal Revenue Code of 1954 ^e use loie. (relating to adjustments to basis) is amended by striking out "and" at the end of subparagraph (A), by adding "and" at the end of subparagraph (B), and by inserting after subparagraph (B) the following new subparagraph: "(C) since February 28, 1913, and before January Ij 1958, during which such property was held by a person subject to tax under part I of subchapter L (or the corresponding pro- "*"'*• "• *'^" visions of prior income tax laws), to the extent that pararaph (2) does not apply,". Section 1016(a) of such Code is amended by inserting after ^^ "^^ *°^*paragraph (16) the following new paragraph: "(17) in the case of any evidence of indebtedness referred to in section 818(b) (relating to amortization of premium and accrual of discount in the case of life insurance companies), to the extent of the adjustments required under section 818(b) (or the corresponding provisions of prior income tax laws) for the taxable year and all prior taxable years;".

f

32716 O-60—12

�