Page:United States Statutes at Large Volume 90 Part 2.djvu/117

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1585

"(ii) except as provided in clause (iii), to effect the transfer not later than 30 days after the time (including extensions) for filing its income tax return for a taxable year, and "(iii) in the case of an employer whose credit (as determined under section 46(a)(2)(B) of such Code) Ante, p. 1580. for a taxable year beginning after December 31, 1976, exceeds the limitations of paragraph (3) of section 46(a) of such Code— " (I) to effect that portion of the transfer allocable to investment credit carrybacks of such excess credit at the time required under clause (ii) for the unused credit year (within the meaning of section 46(b) of such Code), and " ( II) to effect that portion of the transfer allocable to investment credit carryovers of such excess credit at the time required under clause (ii) for the taxable year to which such portion is carried over. For purposes of meeting the requirements of this paragraph, a transfer of cash shall be treated as a transfer of employer securities if the cash is, under the plan, used to purchase employer securities.", (3) by deleting paragraph (8) and inserting in lieu thereof the following: "(8)(A) Except as provided in subparagraph (B) (iii), if the amount of the credit determined under section 46(a)(2)(B) of the Internal Revenue Code of 1954 is recaptured or redetermined in accordance with the provisions of such Code, the amounts transferred to the plan under this subsection and subsection (e) and allocated under the plan s'hall remain in the plan or in participant accounts, as the case may be, and continue to be allocated in accordance with the plan. " (B) If the amount of the credit determined under section 46(a)(2)(B) of the Internal Revenue Code of 1954 is recaptured in accordance with the provisions of such Code— "(i) the employer may reduce the amount required to be transferred to the plan under paragraph (6) of this subsection, or under paragraph (3) of subsection (e), for the current taxable year or any succeeding taxable years by the portion of the amount so recaptured which is attributable to the contribution to such plan, "(ii) notwithstanding the provisions of paragraph (12), the employer may deduct such portion, subject to the limitations of section 404 of such Code (relating to deductions for 26 USC 404. contributions to an employees' trust or plan), or " (iii) if the requirements of subsection (f)(1) are met, the employer may withdraw from the plan an amount not in excess of such portion. "(C) If the amount of the credit claimed by an employer for a prior taxable year under section 38 of the Internal Revenue Code of 1954 is reduced because of a redetermination which becomes final during the taxable year, and the employer transferred arnounts to a plan which were taken into account for purposes of this subsection for that prior taxable year, then—

�