Page:United States Statutes at Large Volume 76.djvu/1182

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PUBLIC LAW 87-858-OCT. 23, 1962

[76 STAT.

Public Law 87-858 AN ACT October 23, 1962 [H. R. 8952] To amend the provisions of the Internal Revenue Code of 1954 relating to the conditions under which the special constructive sale price rule is to apply for purposes of certain manufacturers excise taxes and relating to the taxation of life insurance companies, and for other purposes.

Be it enacted by the Senate and House of Representatives United States of America, in Congress assembled,

of the

Manufacture r s excise taxes.

SECTION 1. CONSTRUCTIVE SALE PRICE. (a) APPLICATION OF SPECIAL RULE.—Section 4216(b)(2)(C) of the

72 Stat. 1279, 26 USC 4216.

Internal Revenue Code of 1954 (relating to special rule for determining constructive sale price) is amended by inserting before "the normal method" the following: "in the case of articles upon which tax is imposed under section 4061(a) (relating to automobiles, trucks, etc.), 4191 (relating to business machines), or 4211 (relating to matches),". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to articles sold by the manufacturer, producer, or importer on or after October 1, 1962.

26 USC 4061, 4191, 4211.

Contribution s.

SEC. 2. CONTRIBUTIONS TO FOUNDATIONS FOR CERTAIN STATE COLLEGES AND UNIVERSITIES. (a) LIMITATION ON CONTRIBUTIONS ALLOWABLE AS DEDUCTION.—Sec-

68A Stat. 58. 26 USC 170.

tion 170(b)(1)(A) of the Internal Revenue Code of 1954 (relating to limitation on amount of deduction for charitable contributions by individuals) is amended by striking out "or" at the end of clause (ii), by inserting "or" at the end of clause (iii), and by inserting after clause (iii) the following new clause: "(iv) an organization referred to in section 503(b)(3) organized and operated exclusively to receive, hold, invest, and administer property and to make expenditures to or for the benefit of a college or university which is an organization referred to in clause (ii) of this subparagraph and which is an agency or instrumentality of a State or political subdivision thereof, or which is owned or operated by a State or political subdivision thereof or by an agency or instrumentality of one or more States or political subdivisions,". (b) TECHNICAL AMENDMENT.—Section 170(b)(1)(B) of such Code is amended by striking out "any charitable contributions to the organizations described in clauses (i), (ii), and ( i i i) " and inserting in lieu thereof "any charitable contributions described in subparagraph (A) ". (c) EFFECTIVE DATE.—The amendments made by subsections (a) and (b) shall apply to taxable years beginning after December 31, 1960.

68A Stat. 166. 26 USC 503.

Life Insurance companies. 73 Stat. 112. 26 USC 801.

SEC. 3. LIFE INSURANCE COMPANIES. (a) VAMABLE ANNUITIES AND OTHER

SEGREGATED ASSET A C -

COUNTS.—Section 801(g) of the Internal Revenue Code of 1954 (relating to variable annuities) is amended to read as follows: " (g) CONTRACTS W I T H RESERVES BASED ON SEGREGATED ASSET ACCOUNTS.— " (1) DEFINITIONS.— " (A) A N N U I T Y CONTRACTS INCLLTDE VARIABLE ANNUITY

CONTRACTS.—For purposes of this part, an 'annuity contract' includes a contract which provides for the payment of a variable annuity computed on the basis of recognized mortality tables and the investment experience of the company issuing the contract.

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