Page:United States Statutes at Large Volume 73.djvu/737

 73 S T A T. ]

PUBLIC LAW 86-376-SEPT. 23, 1959

699

SEC. 7. Nothing contained herein shall be interpreted or construed as approving any act, action, or conduct which is or has been or may be in violation of existing law nor shall anything herein contained constitute a defense to any action, suit, or proceeding pending or hereafter instituted on account of any prohibited antitrust or monopolistic act, action, or conduct. SEC. 8. The right is herebj reserved to the Congress or any of its standing committees to require the disclosure and furnishing of such information or data by the Wabash Valley Interstate Commission as is deemed appropriate by the Congress or any such committee. Approved September 23, 1959.

Public Law 86-376 AN ACT

To amend the Internal Revenue Code of 1954 to provide a personal exemption for children placed for adoption and to clarify certain provisions relating to the election of small business corporations as to taxable status.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 152(b)(2) of the Internal Revenue Code of 1954 (relating to the definition of the term "dependent") is amended by striking out "a legally adopted child of an individual" and inserting in lieu thereof the following: "a legally adopted child of an individual (and a child who is a member of an individual's household, if placed with such individual by an authorized placement agency for legal adoption by such individual)". (b) The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1958. SEC. 2. (a) Section 1371 of the Internal Revenue Code of 1954 (relating to definitions applicable to certain small business corporations) is amended by adding at the end thereof the following new subsection: "(c) STOCK OWNED BY HUSBAND AND W I F E. — For purposes of subsection (a)(1) stock which— "(1) is community property of a husband and wife (or the income from which is community income) under the applicable community property law of a State, or "(2) is held by a husband and wife as joint tenants, tenants by the entirety, or tenants in common, shall be treated as owned by one shareholder." (b) Section 1374(b) of the Internal Revenue Code of 1954 (relating to allowance of net operating loss to shareholders of electing small business corporations) is amended by inserting after "the taxable year of the corporation ends" the following: "(or for the final taxable year of a shareholder who dies before the end of the corporation's taxable year)". (c) Section 1504(b) of the Internal Revenue Code of 1954 (relating to definition of includible corporation) is amended by striking out paragraph (8) thereof. (d) The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1959. The amendments made by subsections (b) and (c) shall take effect on the day after the date of the enactment of this Act. 32716 O-60—47

September 23, 1959

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Internal Revenue C o d e of 1954, amendment. 68A Stat. 43.

72 Stat. 1650.

72 Stat. 1653.

68A Stat. 369; 72 Stat. 1657.

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