Page:United States Statutes at Large Volume 90 Part 2.djvu/187

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1655

TITLE XI—AMENDMENTS AFFECTING DISC SEC. 1101. AMENDMENTS AFFECTING DISC. (a) IN GENERAL.—Section 995 (relating to taxation of D I S C 26 USC 995. income to shareholders) is amended— (1) in paragraph (1) of subsection (b) thereof, by redesignating subparagraphs (D) and (E) as subparagraphs (F) and (G), respectively, by striking out "and (C) " in subparagraph (F) (as so redesignated) and inserting in lieu thereof " (C), (D), and (E) ", and by inserting after subparagraph (C) the following new subparagraphs: " (D) 50 percent of the taxable income of the D I S C for the taxable year attributable to military property, " (E) the taxable income for the taxable year attributable to base period export gross receipts (as defined i n subsection (2) in paragraph (2)(B) of subsection (b) thereof, by s t r i k m g out "more than the n u m b e r " and inserting in lieu thereof "more than twice the n u m b e r "; (3) by a d d i n g a t the end of subsection (b) thereof the following new paragraph: "(3)

TAXABLE INCOME ATTRIBUTABLE TO MILITARY PROPERTY.—

" (A) IN GENERAL.—For purposes of paragraph (1)(D), taxable income of a D I S C for the taxable year attributable to military property shall be determined by only taking into account— " (i) the gross income of the D I S C for the taxable year which is attributable to military property, and " ( i i) the deductions which are properly apportioned or allocated to such income. " (B) MILITARY PROPERTY.—For purposes of subparagraph

(A), the term 'military property' means any property which is an arm, ammunition, or implement of w a r designated i n the munitions list published pursuant to the Military Security Act of 1954 (22 U.S.C. 1934)."; and (4) by a d d i n g a t the end thereof the following new subsections: " (e) DEFINITIONS AND SPECIAL RULES RELATING TO COMPUTATION OF TAXABLE INCOME ATTRIBUTABLE TO B A S E PERIOD EXPORT GROSS RECEIPTS.— " (1) TAXABLE INCOME ATTRIBUTABLE TO BASE PERIOD EXPORT

GROSS RECEIPTS.—For purposes of this section, the taxable income attributable to base period export gross receipts shall be a n amount equal to that portion of the adjusted taxable income of a D I S C which— " (A) the amount of the adjusted base period export gross receipts, bears to " (B) the amount of the export gross receipts of the D I S C for the taxable year. " (2) ADJUSTED TAXABLE INCOME.—For purposes of this section, the term 'adjusted taxable income' means the income of a D I S C for the taxable year, reduced by the amounts described in subparagraph s (A), (B), (C), and (D) of paragraph (1) of subsection (b).

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