Page:United States Statutes at Large Volume 75.djvu/723

 75 S T A T. ]

PUBLIC LAW 8 7 - 3 2 1 - S E P T. 26, 1961

683

Public Law 87-321 AN ACT

Relating to the credits against the employment tax in the case of certain suecessor employers and to provide an election for iwst taxable years with respect to the determination of gross income from mining in the case of quartzlte and clay used in the production of refractory products.

September 26, 1961

[H. R. 2585]

Be it enacted by the Senate and House of Representatives of the Federal United States of America in Congress assembled, That (a) section ployment Taxn Act, ^^ ^^ ^ ^U e m 3302 of the Internal Revenue Code of 1954 (relating to credits against amendment tax imposed by Federal Unemployment Tax Act) is amended by add- ^4 st&u 98o. ing at the end thereof the following new subsection: "(e) SUCCESSOR EMPLOYER.—Subject to the limits provided by subsection (c), if— "(1) an employer acquires during any calendar year substantially all the property used in the trade or business of another person, or used in a separate unit of a trade or business of such other person, and immediately after the acquisition employs in his trade or business one or more individuals who immediately prior to the acquisition were employed in the trade or business of such other person, and "(2) such other person is not an employer for the calendar year in which the acquisition takes place, then, for the calendar year in which the acquisition takes place, in addition to the credits allowed under subsections (a) and (b), such employer may credit against the tax imposed by section 3301 for such year an amount equal to the credits which (without regard to subsection (c)) would have been allowable to such other person under subsections (a) and (b) and this subsection for such year, if such other person had been an employer, with respect to remuneration subject to contributions under the unemployment compensation law of a State paid by such other person to the individual or individuals described in paragraph (1)." (b) The amendment made by subsection (a) shall apply with respect to the calendar year 1961 and each calendar year thereafter. SEC. 2. ELECTION FOR QUARTZITE AND CLAY USED IN THE PRODUCTION OF REFRACTORY PRODUCTS. (a) ELECTION FOR PAST YEARS.—If an election is made under subsection (c), in the case of <iuartzite and clay used by the mine owner or operator in the production of refractory products, for the purpose of applying section 613(c) of the Internal Revenue Code of 1954 (and ^^ "^^ ^^^• corresponding provisions of the Internal Revenue Code of 1939) for each of the taxable years with respect to which the election is effective— (1) the term "ordinary treatment processes" shall include "Ordinary treatcrushing, grinding, and separating the mineral from waste, but '"*'"' processes shall not include any subsequent process; and (2) the gross income from mining for each short ton of such quartzite or clay used in the production of all refractory products sold during the taxable year shall be equal to 87i/^ percent of the lesser of— (A) the average lowest published or advertised price, or (B) the average lowest actual selling price, at which, during the taxable year, the mine owner or operator offered to sell, or sold, such quartzite or clay (in the form and condition of such products after the application of only the

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