Page:United States Statutes at Large Volume 82.djvu/310

 PUBLIC LAW 90-364-JUNE 28, 1968

268

[82 STAT.

"(iii) but for this subparagraph, subparagraph (A) would apply to each such issue, then, for purposes of subparagraph (A), in determining the aggregate face amount of any later issue there shall be taken into account the face amount of obligations issued under all prior such issues and outstanding at the time of such later issue (not including as outstanding any obligation which is to be redeemed from the proceeds of the later issue). " (C) RELATED PERSONS.—For purposes of this paragraph and paragraph (7), a person is a related person to another person if— " (i) the relationship between such persons would result in a disallowance of losses under section 267 or 707(b), or "(ii) such persons are members of the same controlled group of corporations (as defined in section 1563(a), except that 'more than 50 percent' shall be substituted for 'at least 80 percent' each place it appears therein). "(7) EXCEPTION.—Paragraphs (4), (5), and (6) shall not apply with respect to any obligation for any period during which it is held by a person who is a substantial user of the facilities or ^ a related person."

68A Stat. 78. 26 USC 267.

78 Stat. 120.

/'' (b) EFFECTIVE DATE.—

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(1) IN GENERAL.—Except as provided by paragraph (2), the amendment made by subsection (a) shall apply to taxable years ending after April 30, 1968, but only with respect to obligations issued after such date. (2) TRANSITIONAL PROVISIONS.—Section 103(c)(1) of the

b

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1

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80 Stat. 66.

In-

ternal Revenue Code of 1954, as amended by subsection (a), shall not apply with respect to any obligation issued before January 1, 1969, if before May 1, 1968— (A) the issuance of the obligation (or the project in connection with which the proceeds of the obligations are to be used) was authorized or approved by the governing body of the governmental unit issuing the obligation or by the voters of such governmental unit; (B) in connection with the issuance of such obligation or with the use of the proceeds to be derived from the sale of such obligation or the property to be acquired or improved with such proceeds, a governmental unit has made a significant financial commitment; (C) any person (other than a governmental unit) who will use the proceeds to be derived from the sale of such obligation or the property to be acquired or improved with such proceeds has expended (or has entered into a binding contract to expend) for purposes which are related to the use of such proceeds or property, an amount equal to or in excess of 20 percent of such proceeds; or (D) in the case of an obligation issued in conjunction with a project where financial assistance will be provided by a governmental agency concerned with economic development, such agency has approved the project or an application for financial assistance is pending.

SEC. 108. ADVERTISING IN A POLITICAL CONVENTION PROGRAM. (a) ALLOWANCE OF DEDUCTION.—Section 276 (relating to certain

indirect contributions to political parties) is amended by redesignating subsection (c) as (d), and by inserting after subsection (b) the following new subsection:

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