Page:United States Statutes at Large Volume 89.djvu/478

 89 STAT. 4 1 8

PUBLIC LAW 9 4 - 8 1 — A U G. 9, 1975 such property in an unrelated trade or business (as defined in section 513). " (B) LATER CHANGE IX USE.—If any property with respect

to the disposition of which gain is not recognized by reason of subparagraph (A) ceases to be used in an unrelated trade or business of the organization acquiring such property, such organization shall be treated for purposes of t h i s section as having disposed of such property on the date of such cessation.". 26 USC 1250

note.

(c) EFFECTIVE D A T E. —

(1) IN GENERAL.—Except as provided in paragraph (2) the amendments made by this section shall apply to dispositions iafter December 31, 1969, in taxable years ending after such date. (2) ELECTION FOR PAST TRANSACTIONS.—In the case of any dis-

26 USG 509.

26 USC 512. 26 USC 511. Effective date. 26 USC 509 note,

position occurring before the date of the enactment of this Act, the amendments made by this section shall apply only if the organization acquiring the property elects (in the manner provided by regulations prescribed by the Secretary of the Treasury or his delegate) within 1 year after the date of the enactment of this Act to have such amendments apply with respect to such property. SEC. 3. DEFINITION OF PRIVATE FOUNDATION. (a) Subparagraph (B) of section 509(a)(2) of the I n t e r n a l Revenue Code of 1954 (relating to permitted extent of private support) is amended to read as follows: " (B) normally receives not more than one-third of its support in each taxable year from the sum of— " (i) gross investment incomes (as dejfined in subsection (e)) and " ( i i) the excess (if any) of the amount of the unrelated business taxable income (as defined in section 512) ov^er the amount of the tax imposed by section 5 1 1; ". (b) The amendment made by this section shall apply to unrelated business taxable income derived from trades and businesses which are acquired by the organization after June 30, 1975. Approved August 9, 1975.

LEGISLATIVE HISTORY: HOUSE REPORT No. 94-250 (Comm. on Ways and Means). SENATE REPORT No. 94-272 (Comm. on Finance). CONGRESSIONAL RECORD, Vol 121 (1975): June 26, considered and passed House. July 11, considered and passed Senate, amended. July 25, House concurred in Senate amendment with an amendment. Aug. 1, Senate concurred in House amendment to Senate amendment.

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