Page:United States Statutes at Large Volume 90 Part 2.djvu/155

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1623

(3) Paragraph (3) of section 1351(d) is amended to read as 26 USC 1351. follows: " (3) FOREIGN TAXES.—For purposes of this subsection,

any

choice made under subpart A of part III of subchapter N (relating to foreign tax credit) for any taxable year may be changed.". (4) Section 1503(b)(1) is amended by striking out ", and if 26 USC 1503. for the taxable year an election under section 904(b)(1) (relat- Post- p 1629. i n g to election of overall limitation on foreign tax credit) is in effect". (5) Sections 383, 6 0 3 8 (b)(1)(A), and 6501 (i) are each ^nfe, p. 1605. amended by striking out "section 9 0 4 (d) " each place it appears 26 USC 6038, therein and inserting in lieu thereof "section 904(c)". 6501. (6) Subsection (e) of section 907 (relating to transitional rules) 26 USC 907. is amended— (A) by striking out " (d) and (e) of section 904" in paragraph s (1) and (2) and inserting in lieu thereof " (d) and (e) of section 904 (as in effect on the d a y before the date of the enactment of the Tax Reform Act of 1976)"; Ante, p. 1520. (B) by striking out "section 904(a)(1) " in paragraph (2) and inserting in lieu thereof "section 9 0 4 (a)(1) (as so in effect)"; and (C) by striking out "section 904(e)(2) " in paragraph (2) ..- • (A) and inserting in lieu thereof "section 9 0 4 (e)(2) (as so in effect)". (c) EFFECTIVE D A T E S. —

26 USC 904

(1) IN GENERAL.—Except as provided in paragraph s (2) and "^^^• (3), the amendments made by this section shall apply to taxable years beginning after December 31, 1975. (2) EXCEPTION FOR CERTAIN M I N I N G OPERATIONS.—In the case of

a domestic corporation or includible corporation in an affiliated group (as defined in section 1504 of the Internal Revenue Code of 1954) which has as of October 1.1975— (A) been engaged in the active conduct of the trade or business of the extraction of minerals (of a character with respect to which a deduction for depletion is allowable under section 613 of such Code) outside the United States or its possessions for less than 5 years preceding the date of enactment of this Act, (B) h a d deductions properly apportioned or allocated to its gross income from such trade or business in excess of such gross income in a t least 2 taxable years, (C) 80 percent of its gross receipts are from the sale of such minerals, and (D) made commitments for substantial expansion of such mineral extraction activities, the amendments made by this section shall apply to taxable years beginning after December 31, 1978. I n the case of losses sustained in taxable years beginning before January 1, 1979, by any corporation to which this paragraph applies, the provisions of section 904(f) of such Code shall be applied with respect to such losses under the principles of section 904(a)(1) of such Code as in effect before the enactment of this Act. (3) EXCEPTION FOR INCOME FROM POSSESSIONS.—In the case of

gross income from sources within a possession of the United States (and the deductions properly apportioned or allocated thereto), the amendments made by this section shall apply to taxable years beginning after December 31, 1978. I n the case of losses sustained

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