Page:United States Statutes at Large Volume 90 Part 2.djvu/116

 90 STAT. 1584

26 USC 401.

^ra. Post, p. 1587 26 USC 1504.

26 USC 415.

PUBLIC LAW 94-455—OCT. 4, 1976 (B) by striking out "paragraph (1) or (2)" each place it appears in subparagraph (A) and inserting in lieu thereof "paragraph (1), (2),or (9)"; and (C) by striking out "paragraph (2)," in subparagraph (B) (ii) and inserting in lieu thereof "paragraph (2) or the election described in paragraph (9),". (2) Section 401(a) (relating to qualified pension, etc., plans) is amended by adding after paragraph (20) the following new paragraph: "(21) A trust forming part of an employee stock ownership plan which satisfies the requirements of section 301(d) of the Tax Reduction Act of 1975 shall not fail to be considered a permanent program merely because employer contributions under the plan are determined solely by reference to the amount of credit which would be allowable under section 46(a) if the employer made the transfer described in subsection (d)(6) or (e)(3) of section 301 of the Tax Reduction Act of 1975." (3) Section 1504(a) is amended by striking out "dividends." at the end thereof and inserting in lieu thereof "dividends, employer securities within the meaning of section 301(d)(9)(A) of the Tax Reduction Act of 1975, or qualifying employer securities within the meaning of section 4975(e)(8) while such securi-' ties are held under an employee stock ownership plan which meets the requirements of section 301(d) of such Act or section 4975 (e)(7), respectively." (4) Section 415(e)(5) is amended by striking out "For purposes of this subsection," and inserting in lieu thereof "For purposes of this section,", (c)

26 USC 46 note.

PLAN REQUIREMENTS FOR TAXPAYERS ELECTING ADDITIONAL

CREDIT.—Section 301(d) of the Tax Reduction Act of 1975 is amended— (1) by adding at the end of paragraph (3) the following sentence: "For purposes of this paragraph, the amount of compensation paid to a participant for a year is the amount of such participant's compensation within the meaning of section 415 (c)(3) of such Code for such year.", (2) by striking out paragraph (6) and inserting in lieu thereof the following: "(6) On making a claim for credit, adjustment, or refund under section 38 of the Internal Revenue Code of 1954, the employer states in such claim that it agrees, as a condition of receiving any such credit, adjustment, or refund— " (A) in the case of a taxable year beginning before January 1, 1977, to transfer employer securities forthwith to the plan having an aggregate value at the time of the claim of 1 percent of the amount of the qualified investment (as determined under section 46(c) and (d) of such Code) of the taxpayer for the taxable year, and "(B) in the case of a taxable year beginning after December 31, 1976— " (i) to transfer employer securities to the plan having an aggregate value at the time of the claim of 1 percent of the amount of the qualified investment (as determined under section 46(c) and (d) of such Code) of the employer for the taxable year,

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