Page:United States Statutes at Large Volume 79.djvu/1004

 964

26 us^c49n 4914, 4916, 4917. 68A Stat. 120.

PUBLIC LAW 89-243-OCT. 9, 1965

" (ii) shares of such class were held of record by more than 250 shareholders on the corporation's latest record date before July 19, 1963; "(iii) the percentage of shares of such class held of record by United States persons as of the corporation's latest record date before the issuance of such additional shares is not less than the percentage required to be held by United States persons as of the latest record date before July 19, 1963, in order for the class of stock to qualify under paragraph (1); "(iv) all such additional shares are shares which, if acquired by United States persons at the time of original issuance, would have been excluded from the tax imposed ^y section 4911 by reason of section 4914(a)(6), 4916, or 4917, or are shares exchanged in a reorganization described in section 368(a)(1)(B) for shares of a domestic corporation which was engaged in the active conduct of a trade or business (other than as a dealer in securities) immediately before the date of such exchange; and "(v) at least 15 days before the date such additional shares are issued (or, m the case of an issue occurring on or before the 60th day after the date of the enactment of this sentence, within such period as may be prescribed by the Secretary or his delegate by r e f l a t i o n s), the issuing corporation files (in accordance with regulations prescribed by the Secretary or his delegate) a notice of intent to issue such shares. For purposes of subparagraph (D), the issuance of an option or similar right to acquire stock, or of any debt obligation convertible into stock, shall be treated as the issuance of the stock which may be obtained on the exercise of such option or similar right or the conversion of such debt obligation." (o)

Ante, p. 955.

76 Stat. 969. ^^ ^^' 78 Stat. 839. 26 USC 4918.

COMMERCIAL. B A N K LOANS.—

(1) Paragraph (2) of the subsection of section 4981 redesignated as subsection (c) by section 3(e) of this Act is amended by striking out "(other than banks)" each place it appears and inserting in lieu thereof "(other than United States persons engaged in the commercial banking business and members of an affiliated group (determined under section 4 8 (c)(3)(C)) of which such a United States person is a member)". (2) The last sentence of section 4931(c) (as enacted on September 2, 1964) is amended by striking out ", except that, for such purposes, the provisions of section 4918 shall not apply". (p)

78 Stat. 845. 26 USC 263.

[79 STAT.

DEDUCTIBILITY OF INTEREST EQUALIZATION T A X. —

(1) Section 263(a)(8) is amended to read as follows: tj^^^ Except as provided in subsection (d), any amount paid as tax under section 4911 (relating to imposition of interest equalization tax). " (2) Section 263 is amended by adding at the end thereof the following new subsection: "(d)

REIMBURSEMENT

OF

INTEREST

EQUALIZATION

TAX.—The

ol^J^f^\'^o^'o^^%' deduction allowed by section 162(a) or 212 (whichever is appropriate) shall include any amount paid or accrued in the taxable year or a preceding taxable year as tax under section 4911 (relating to imposition of interest equalization tax) to the extent that any amount attributable to the amount paid or accrued as tax is included in gross income

26 USC 162, 212. " '""^ ""^ '^

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