Page:United States Statutes at Large Volume 76.djvu/1190

 1142

59 Stat. 844.

26 USC 263. 26 USC 5123.

PUBLIC LAW 87-863-OCT. 23, 1962

[76 STAT.

(c) The amendments made by subsections (a) and (b) shall apply to taxable years begmning after the date of the enactment of this Act. SEC. 3. Any taxpayer who exercised an option to capitalize intangible drilling and development costs under the regulations recognized and approved by the Congress in IL (^on. Res. 50, 79th Congress, or under section 39.23(m)-16 of regulations 118, is hereby granted a new option for the first taxable year ending on or after the date of the enactment of this Act to deduct such costs as expenses. Such new option shall be exercised at the time of filing the income tax return for such first taxable year, but otherwise shall be treated, for all purposes, as an option exercised under, and subject to, section 263(c) of the Internal Revenue Code of 1954 and the regulations prescribed thereunder. SEC. 4. (a) Section 5123(b) of the Internal Revenue Code of 1954 (relating to application of special tax on retail dealers in liquor where business is conducted in more than one location) is amended by adding at the end thereof the following new paragraph: "(3)

LIQUOR SIX)RES OPERATED BY STAJES, POLITICAL SIBDIVISIONS,

ETC.—A State, a political subdivision of a State, or the District of (Columbia shall not be required to pay more than one special tax 26 USC 5121. as a retail dealer in liquors under section 5121(a) regardless of the number of locations at which such State, political subdivision, or District carries on business as a retail dealer in liquors." 26 USC 5113. (b) Section 5113(b) of such Code (relating to application of special tax on wholesale dealers in liquor to liquor stores operated by States, political subdivisions, etc.) is amended— (1) by striking out "or Territory" and "'Territory," each place such terms appear, and (2) by striking out "if such liquor store" and inserting in lieu thereof "if such State, political subdivision, or District*'. Effective date. (c) The amendments made by subsections (a) and (b) of this section shall take effect on July 1, 1962. 26 USC 1341. SEC. 5. (a) Section 1341(b) of the Internal Revenue Code of 1954 (relating to special rules applicable to computation of tax where taxpayer restores substantial amount held under claim of right) is amended by adding at the end thereof the following new paragraphs: "(4) For purposes of determining whether paragraph (4) or paragraph (5) of subsection (a) applies— " (A) in any case where the deduction referred to in paragraph (4) of subsection (a) results in a net operating loss, such loss shall, for purposes of computing the tax for the taxable year under such paragraph (4), be carried back to the same extent and in the same manner as is provided under section 172; and " (B) in any case where the exclusion referred to in paragraph (5)(B) of subsection (a) results in a net operating loss or capital loss for the prior taxable year (or years), such loss shall, for purposes of computing the decrease in tax for the prior taxable year (or years) under such paragraph (5)(B), be carried back and carried over to the same extent and in the 26 USC 172, same manner as is provided under section 172 or section 1212, ^212. except that no carryover beyond the taxable year shall be taken into account. "(5) For purposes of this chapter, the net operating loss described in paragraph (4)(A) of this subsection, or the net operating loss or capital loss described in paragraph (4)(B) of this subsection, as the case may be, shall (after the application of paragraph (4) or (5)(B) of subsection (a) for the taxable year)

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