Page:United States Statutes at Large Volume 76.djvu/1012

 964

Ante, p. 962.

PUBLIC LAW 8 7 - 8 3 4 - O C T. 16, 1962

[76 STAT.

(hereinafter in this subsection referred to as 'unused credit year"), such excess shall be— " (A) an investment credit carryback to each of the 3 taxable years preceding the unused credit year, and " (B) an investment credit carryover to each of the 5 taxable years following the unused credit year, and shall be added to the amount allowable as a credit by section 38 for such years, except that such excess may be a carryback only to a taxable year ending after December 31, 1961. The entire amount of the unused credit for an unused credit year shall be carried to the earliest of the 8 taxable years to which (by reason of subparagraphs (A) and (B)) such credit may be carried, and then to each of the other 7 taxable years to the extent that, because of the limitation contained in paragraph (2), such unused credit may not be added for a prior taxable year to which such unused credit may be carried. '•(2) LIMITATION.—The amount of the unused credit which may be added under paragraph (1) for an;^ preceding or succeeding taxable year shall not exceed the amount by which the limitation provided by subsection (a)(2) for such taxable year exceeds the sum of— " (A) the credit allowable under subsection (a)(1) for such taxable year, and " (B) the amounts which, by reason of this subsection, are added to the amount allowable for such taxable year and attributable to taxable years preceding the unused credit year. " (3) EFFECT OF NET OPERATING LOSS CARRYBACK.—To the extent that the excess described in paragraph (1) arises by reason of a net operating loss carryback, subparagraph (A) of paragraph (1) shall not apply. "(4)

TAXABLE YEAR B E G I N N I N G BEFORE J A N U A R Y

i, i9«2.—For

purposes of determining the amount of an investment credit carryback that may be added under paragraph (1) for a taxable year beginning before January 1, 1962, and ending after December 31, 1961, the amount of the limitation provided by subsection (a)(2) is the amount which bears the same ratio to such limitation as the number of days in such year after December 31, 1961, bears to the total number of days in such year. " (c) QUALIFIED INVESTMENT.—

Post, p. 968. Post, p. 968.

"(1) IN GENERAL.—For purposes of this subpart, the term 'qualified investment' means, w4th respect to any taxable year, the aggregate of— " (A) the applicable percentage of the basis of each new section 38 property (as defined in section 48(b)) placed in service by the taxpayer during such taxable year, plus " (B) the applicable percentage of the cost of each used section 38 property (as defined in section 48(c)(1)) placed in service by the taxpayer during such taxable year. " (2) APPLICABLE PERCENTAGE.—For purposes of

paragraph

(1), the applicable percentage for any property shall be determined under the followinsr table: "If the useful life is— 4 years or more but less than 6 years. 6 years or more but less than 8 years. 8 years or more

The applicable pernentage is— 33 J<

em 100

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