Page:United States Statutes at Large Volume 90 Part 2.djvu/188

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1656

" (3) ADJUSTED

26 USC 993.

BASE

PERIOD

EXPORT

GROSS

RECEIPTS.—For

purposes of this section, the term 'adjusted base period export gross receipts' means 67 percent of the average of the export gross receipts of the D I S C for taxable years during the base period ( a s defined in paragraph (5)). For purposes of the preceding sentence, if any property would not qualify during the taxable year as export property by reason of section 993(c)(2), gross receipts from such property shall be excluded from export gross receipts during the taxable years in the base period. "(4)

EXPORT GROSS RECEIPTS.—For purposes of t h i s section, the

term 'export gross receipts' means— " (A) qualified export receipts described in subparagraphs (A), (B), (C), (G), and (H) of section 993(a)(1), reduced

by " (B) 50 percent of such qualified export receipts which are attributable to military property (as defined in subsection (b)(3)(B)). " (5) B A S E PERIOD.—For purposes of paragraph (3) —

Regulations.

" (A) for any taxable year beginning before 1980, the base period shall be the taxable years beginning in 1972, 1973, 1974, and 1975, and " (B) for any taxable year be2:inmng in any calendar year after 1979, the base period shall be the taxable years beginn i n g in the fourth, fifth, sixth, and seventh calendar years preceding such calendar year. " (6) No BASE PERIOD YEAR.—If a D I S C did not have a taxable year beginning in a calendar year specified in paragraph (5), then, for purposes of computing the adjusted base period export gross receipts, such D I S C is deemed to have a taxable year and export gross receipts of zero for that year. "(7)

SHORT TAXABLE YEAR.—The Secretary shall prescribe such

regulations as he deems necessary with respect to a short taxable year for purposes of computing base period export gross receipts of a D I S C, or a short taxable year in which deemed distributions (as described in subsection (b)) are made, including the circumstances under which the short taxable year shall be annualized, and the proper method of annualization. " (8) CONTROLLED GROUP.—If more than one member of a controlled group (as defined in section 993(a)(3)) for the taxable year qualifies as a D I S C, then subsection (b)(1)(E), this subsection, and subsection (f) shall each be applied in a manner provided by regulations prescribed by the Secretary by aggregating the export gross receipts and taxable income of such D I S C s for the taxable year and by aggregating the export gross receipts of such D I S C s for each taxable year in the base period. " (9) SPECIAL RULE WHERE THE OWNERSHIP OP DISC STOCK AND THE TRADE O R B U S I N E S S GIVING RISE TO EXPORT GROSS RECEIPTS OF THE DISC ARE SEPARATED.

" (A) IN GENERAL.—If, a t any time after the beginning of the base period, there has been a separation of the ownership of the stock in the D I S C from the ownership of the trade or business which ( during the base period) produced the export gross receipts of the D I S C, then the persons who own the trade or business during the taxable year shall be treated as h a v i n g had additional export gross receipts during the base period attributable to such trade or business.

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