Page:United States Statutes at Large Volume 90 Part 2.djvu/191

 PUBLIC LAW 94-455—OCT. 4, 1976 '

(e)

90 STAT. 1659

RULES FOR ALLOCATING DISTRIBUTIONS M A D E TO M E E T Q U A L I -

FICATION REQUIREMENTS.—Paragraph (2) of section 996(a) (relating 26 USC 996. to rules for actual distributions and certain deemed distributions) is amended by adding at the end thereof the following new sentence: " I n the case of any amount of any actual distribution made pursuant to section 992(c) which is required to satisfy the condition of section 992(a)(1)(A), the preceding sentence shall apply to one-half of such amount, and paragraph (1) shall apply to the remaining one-half of such amount." (f)

AMENDMENT OF SECTION 603(b) OF T A X REDUCTION ACT

or

1975.—Section 603(b) of the T a x Reduction Act of 1975 (relating to 26 USC 993 effective date) is amended to read as follows: no^. "(b)

EFFECTIVE D A T E S. —

" (1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by subsection (a) shall apply to sales, exchanges, and other dispositions made after March 18, 1975, in taxable years ending after such date. " (2) BINDING CONTRACT.—The amendments made by subsection (a) shall not apply to sales, exchanges, and other dispositions made after March 18, 1975, but before March 19, 1980, if such sales, exchanges, and other dispositions are made pursuant to a fixed contract. The term 'fixed contract' means a contract which "Fixed was, on March 18, 1975, and is a t all times thereafter binding on contract." the D I S C or a tax p a y e r which was a member of the same controlled g r o u p (within the meaning of section 9 9 3 (a)(3) of the I n t e r n a l Revenue Code of 1954) as the D I S C, which was entered into after the date on which the D I S C qualified as a D I S C and the D I S C and the taxpayer became members of the same controlled g r o u p, and under which the price and quantity of the products sold, exchanged, or otherwise disposed of cannot be increased." (g)

EFFECTIVE D A T E S. —

(1) FOR SUBSECTIONS (a) AND (e).—The amendments made by subsections (a) and (e) shall apply to taxable years beginning after December 31, 1975. (2) FOR SUBSECTION (b). — The amendments made by subsection (b) shall apply to sales, exchanges, and other dispositions made after March 18, 1975, in taxable years ending after such date. (3) FOR SUBSECTIONS (C) AND (f).—The amendments made by subsections (c) and (f) shall apply to taxable years ending after March 18, 1975. (4) FOR SUBSECTION (d). — The amendments made by subsection (d) shall apply to sales, exchanges, or other dispositions after December 31, 1975, in taxable years ending after such date. (5)

26 USC 995 note. 26 USC 993 note, 26 USC 993 note. 26 USC 995 note.

PRORATION OF BASE PERIOD I N CASE OF FIXED CONTRACTS.— 26 USC 995

For purposes of determining adjusted base period export gross note, receipts (under section 995(e)(3) of the I n t e r n a l Revenue Code of 1954, as amended by this section), if any D I S C has export gross receipts from export property by reason of paragraph (2) of section 603(b) of the T a x Reduction Act of 1975, then the export gross receipts of such D I S C for the taxable years of the base period shall be increased by a n amount equal to the amount of gross receipts which were excluded from export gross receipts during each taxable year of the base period by reason of the last sentence of section 993(e)(3) of such Code multiplied by a fraction, the numerator of which is the amount of the gross receipts in the taxable year which are export gross receipts by reason of

,

�