Page:United States Statutes at Large Volume 79.djvu/996

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78 Stat. 839. 26 USC 4931.

PUBLIC LAW 89-243-OCT. 9, 1965

[79 STAT.

The amendments made by this subsection shall take effect only at such time as may be provided in a modification hereafter made (in accordance with section 4931 of the Internal Revenue Code of 1954) iu such Executive order. •'

SEC. 4. OTHER AMENDMENTS. (a) CERTAIN EXPORT LEASES.—

26 USC 4914.

(^1) Section 4914(c) is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:

26 USC 4911.

" (6) CERTAIN EXPORT LEASES.—The tax imposed by section 4911

^8 A Stat.^3 69. oa TTor- ,cn^

26 USC 1504.

shall not apply to the acquisition from a foreign obligor by a United States person of a debt obligation of such obligor arising out of a lease of personal property to such obligor by such United States person if— " (A) at least 30 percent of the value of the property subject to the lease, or 60 percent of the actual value of the debt obligation arising out of such lease, is attributable to the use of tangible personal property which was manufactured, produced, grown, or extracted in the United States by such United States person (or by one or more includible corporations iu au affiliated group, as defined in section 1504, of which ^^^^ person is a member), or to the performance of services pursuant to the terms of the lease by such United States person (or by one or more such corporations) with respect to such personal property, or to both, and " (B) at least 50 percent of the value of the property subject to lease, or 100 percent of the actual value of the debt obligation arising out of such lease, is attributable to the use of tangible personal property which was manufactured, produced, grown, or extracted in the United States, or to the performance of services pursuant to the terms of the lease by United States persons, or to both." (2) Section 4914(b)(6) is amended by inserting "or lease" after "sale". (3) Section 4914(j)(l) is amended— (A) by striking out "or (5) " in subparagraph (A) and inserting in lieu thereof " (5), or (6) "; (B) by striking out "or (5) " in subparagraph (D) and inserting in lieu thereof " (5), or (6) "; and (C) by striking out "or (3) " in clause (iii) in subparagraph (A) and inserting in lieu thereof " (3), or (6) " and by inserting after the word "sale" in such clause the words "or lease". (4) Paragraph (1) of the subsection of section 4931 redesignated as subsection (c) by section 3(e) of this Act is amended— (A) by inserting "or lease" after "sale" each phice it appears; (B) by inserting after "loan" in subparagraph (A) the following: ", amount paid, or other consideration given to acquire such debt obligation"; (C) by inserting "or leasing" after "selling" in subparagraph (B); and (D) by adding at the end of such paragraph (after and below subparagraph (B)) the following new sentence: "For purposes of the preceding sentence, the acquisition by a wholly-owned subsidiary of a commercial bank of a debt obligation arising out of a lease made by such subsidiary shall be treated as the acquisition of a debt obligation by a commercial bank."

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