Page:United States Statutes at Large Volume 90 Part 2.djvu/122

 90 STAT. 1590

Ante, p. 1520.

26 USC 4975

note. 45 USC 701 note. 29 USC 1001 note, 19 USC 2101. 26 USC 1 note.

PUBLIC LAW 94-455—OCT. 4, 1976 (1) a corporation made underpayments of estimated tax for a taxable year of the corporation which includes August 1, 1975, because the corporation intended to elect to have the provisions of subparagraph (B) of section 46(a)(1) of the I n t e r n a l Revenue Code of 1954 (as it existed before the date of enactment of this Act) apply for such taxable year, and (2) the corporation does not elect to have the provisions of such subparagraph apply for such taxable year because this Act does not contain the amendments made by section 804(a)(2) (relating to flowthrough of investment credit), or the provisions of subsection (f) of such section (relating to grace period for certain plan transfers), of the bill H. E. 10612 (94th Congress, 2d Session), as amended by the Senate, then the provisions of section 6655 of such Code (relating to failure by corporation to pay estimated income tax) shall not apply to so much of any such underpayment as the corporation can establish, to the satisfaction of the Secretary of the Treasury, is properly attributable to the inapplicability of such subparagraph (B) for such taxable year. (h)

P L A N S. — The Congress, in a series of laws (the Regional Rail Reorganization Act of 1973, the Employee Retirement Income Security Act of 1974, the Trade Act of 1974, and the T a x Reduction Act of 1975) and this Act has made clear its interest in encouraging employee stock ownership plans as a bold and innovative method of strengthening the free private enterprise system which will solve the dual problems of securjj^^ capital funds for necessary capital growth and of bringing about stock ownership by all corporate employees. The Congress is deeply concerned that the objectives sought by this series of laws will be made unattainable by regulations and rulings which treat employee stock ownership plans as conventional retirement plans, which reduce the freedom of the employee trusts and employers to take the necessary steps to implement the plans, and which otherwise block the establishment and success of these plans. Because of the special purposes for which employee stock ownership plans are established, it is consistent with the intent of Congress to permit these plans (whether structured as pension, stock bonus, or profit-sharing plans) to distribute income on employer securities currently. (i)

29 USC 1222.

26 USC 4975. 29 USC 1107.

I N T E N T OF CONGRESS CONCERNING EMPLOYEE STOCK O W N E R S H I P

STUDY OF EXPANDED STOCK O W N E R S H I P. —

(1) IN GENERAL.—Section 3022(a) of the Employee Retirement Income Security Act of 1974 (relating to duties of Joint Pension Task Force) is amended— (A) by redesignating paragraph s (4) and (5) as (5) and (6), and (B) by inserting after paragraph (3) the following new paragraph: " (4) the broadening of stock ownership, particularly with regard to employee stock ownership plans (as defined in section 4975(e)(7) of the I n t e r n a l Revenue Code of 1954 and section 407(d)(6) of this Act) and all other alternative methods for broadening stock ownership to the American labor force and others;". (2)

C H A N G E or TITLE.—

(A) Subtitle B of title III of such Act is amended— (i) by striking out "Pension" in the caption of such subtitle and inserting in lieu thereof "Pension, Profitsharing, and Employee Stock Ownership Plan",

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