Page:United States Statutes at Large Volume 78.djvu/94

 52

PUBLIC LAW88-272-FEB. 26, 1964

[78 STAT.

(2) The table of sections for part VII of subchapter B of chapter 1 is amended by striking out— "See. 217. Cross references."

and inserting in lieu thereof the following: "Sec. 217. Moving expenses. "Sec. 218. Cross references."

76^stlf *828^^' 26 USC 62. Ante. p. 51.

^^^ ADJUSTED GROSS INCOME.—Section 62 (defining adjusted gross income) is amended by inserting after paragraph (7) the following new paragraph: " (8) MOVING EXPENSE DEDUCTION.—The deduction allowed by SeCtloU 2 1 7. "

Ante, p. 36.

(^^.^ WITHHOLDING.—Section 3401(a) (relating to definition of "wages") is amended by adding after paragraph (14) (added by section 204(b) of this Act) the following new paragraph: " (15) to or on behalf of an employee if (and to the extent that) at the time of the payment of such remmieration it is reasonable to believe that a corresponding deduction is allowable under section 217." (d) EFFECTIVE DAT^S.—The amendments made by subsections (a) and (b) shall apply to expenses incurred after December 31, 1963, in taxable years ending after such date. The amendment made by subsection (c) shall apjjly with respect to remuneration paid after the seventh day following the date of the enactment of this Act. SEC. 214. 100 PERCENT DIVIDENDS RECEIVED DEDUCTION FOR MEMBERS OF ELECTING AFFILIATED GROUPS.

26 USC 243.

^.^^ 200 PERCENT DIVIDENDS RECEIVED DEDUCTION.—Section 243

Is use 6^?' note.

(relating to dividends received by corporations) is amended to read as follows: "SEC. 243. DIVIDENDS RECEIVED BY CORPORATIONS. " (a) (TENERAL RULE. — I n the case of a corporation, there shall be allowed as a deduction an amount equal to the following percentages of the amoiuit re<'eived as dividends from a domestic corporation which is subject to taxation under this chapter: "(1) 85 percent, in the case of dividends other than dividends described in paragraph (2) or (3); "(2) 100 percent, in the case of dividends I'eceived by a small business investment company operating under the Small Business Investment Act of 1958; and " (3) 100 percent, in the case of qualifying dividends (as defined in subsection (b)(1)). "(b)

Post. p. 117.

Ql'ALTFYlNG DIVIDENDS.

"(1) DEFINITION.—For purposes of subsection (a)(3), the term 'qualifying dividends' means dividends received by a corporation which, at the close of the day the dividends are received. IS a meml)er of the same aifiliate<I,group of corporations (as defined in paragraph (5)) as the corporation distributing the dividends, if— " (A) such affiliated group has made an election under paragraph (2) which is effective for the taxable years of its members which include such day, and " (B) such dividends are distributed out of earnings and profits of a taxable year of the distributing corporation ending after December 31, 1963— "(i) on each day of which the distributing corporation and the corporation receiving the dividends were members of such affiliated group, and "(ii) for which an election under section 1502 (relating to election of nniltiple sin-ta.v exemptions) is not effective.

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