Page:United States Statutes at Large Volume 83.djvu/653

 83 STAT. ]

PUBLIC LAW 91-172-DEC. 30, 1969

625

(b) TECHNICAL AXD CLERICAL AMENDMENTS.—

(1) Section 246 (relating to rules applying to deductions for ^^^ ^'^'- ^^' dividends received) is amended by adding at the end thereof the ''2l'usc'V/e. following new subsection: "(d)

CROSS KEFERENCE.—

"For special rule relating to mutual savings banks, etc., to which section 593 applies, see section 596." (2) The table of sections for part II of subchapter H of chapter 1 is amended by adding at the end thereof: "Sec. 596. Limitation on dividends received deduction," (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after July 11, 1969. SEC. 435. FOREIGN DEPOSITS IN UNITED STATES BANKS. - f (a) INCOME FROM SOURCES "WITHIN THE L^NITED STATES.—
 * «" id •

(1) Effective with respect to amounts paid or credited after December 31, 1969, subparagraphs (C) and (D) of section 861(a)(1) (relating to interest) are each amended by striking out "after December 31, 1972,". (2) Section 861(c) (relating to interest on deposits, etc.) is amended by striking out "1972" and inserting in lieu thereof "1975". (b) PROPERTY W I T H I N THE UNITED STATES.—The second sentence of section 2104(c) (relating to debt obligations) is amended by striking out "December 31, 1972" and inserting in lieu thereof "December 31, 1969".

so Stat. 1542.

80 Stat. 1572.

Subtitle E—Depreciation Allowed Regulated I n d u s t r i e s; E a r n ings and Profits Adjustment for Depreciation SEC. 441. PUBLIC UTILITY PROPERTY. (a) IN GENERAL.—Section 167 (relating to depreciation) is amended so Stat. 1513; by inserting after subsection (k) (added by section 521) the following- Post, p. 649. new subsection: "(1) REASONABLE ALLOWANCE I N (^ASE OF PROPERTY or CERTAIN UTILITIES.— " (1) P R E - 19 7 0 PUBLIC U T I L I T Y PROPERTY.—

" (A) IN GENERAL.—In the case of any pre-1970 public utility property, the term 'reasonable allowance' as used in subsection (a) means an allowance computed under— " (i) a subsection (1) method, or "(ii) the applicable 1968 method for such property. Except as provided in subparagraph (B), clause (ii) shall apply only if the taxpayer uses a normalization method of accounting. "(B)

FLOW-THROUGH METHOD or ACCOUNTIN(} IN CERTAIN

CASES.—In the case of any pre-1970 public utility property, the taxpayer may use the applicable 1968 method for such property if— " (i) the taxpayer used a flow-through method of accounting for such property for its July 1969 accounting period, or ^(ii) the first accounting period with respect to such property is after the July 1969 accounting period, and the taxpayer used a flow-through method of accounting for its July 1969 accounting period for the property on the basis of which the applicable 1968 method for the property in question is established.

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