Page:United States Statutes at Large Volume 90 Part 2.djvu/298

 9 0 STAT. 1766

PUBLIC LAW-94-455—OCT. 4, 1976 end of paragraph (1), by striking out paragraph s (2) and (3), and by redesignating paragraph (4) as paragraph (2). (B) Section 103 is amended by striking out subsection (b) (relating to certain exceptions) and by redesignating subsections (c), (d), (e), (f), and (g) (as added by this Act) as subsections (b), (c), (d), (e), and (f) respectively. (C) Section 1 0 3 (b)(1) (relating to industrial development b o n d s), as redesignated by subparagraph (B) of this paragraph, is amended by inserting "or (2) " after " (a)(1) ". (D) Section 103(c)(2)(A) (relating to definition of arbitrage bonds), as redesignated by subparagraph (B) of this paragraph, is amended by inserting "or (2) " after " (a)(1) ". (E) Section 103(e) (relating to certain cross references) as redesignated by subparagraph (B) of this paragraph, is amended to read as follows:

26 USC 103.

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"(e)

CROSS REFERENCES.—

"For provisions relating to the taxable status of— "(1) Puerto Rican bonds, see section 3 of the Act of March 2, 1917, as amended (48 U.S.C. 745). "(2) Virgin Islands insular and municipal bonds, see section 1 of the Act of October 27, 1919 (48 U.S.C. 1403). "(3) Certain obligations issued under title I of the Housing Act of 1949, see section 102(g) of title I of such Act (42 U.S.C. 1452(g)).'' (18)

26 USC 104.

Ante, p. 1567.

26 USC 115.

AMENDMENTS OF SECTION I O 4. —

(A) Section 1 0 4 (a)(4) (relating to exclusion of compensation for injuries or sickness) is amended by striking out "; 60 Stat. 1021". (B) Section 104(c)(2) as redesignated by section 505 of ^j^-g ^^^^ -g amended to read as follows: "(2) For exclusion of part of disability retirement pay from the application of subsection (a)(4) of this section, see section 1403 of title 10, United States Code (relating to career compensation laws)." (19)

AMENDMENT or SECTION l i s. — S e c t i o n 115 ( r e l a t i n g to

income of States, municipalities, etc.) is amended to read as follows: "SEC. 115. INCOME OF STATES, MUNICIPALITIES, ETC. "Gross income does not include— " (1) income derived from any public utility o r the exercise of any essential governmental function and accruing to a State or any political subdivision thereof, o r the District of Columbia; or " (2) income accruing to the government of any possession of the United States, or any political subdivision thereof." ^^^^ AMENDMENT or SECTION H 6. — S u b s e c t i o n (a) of section

26 Use 116.

26 USC 124.

-j^ji^g (relating to partial exclusion of dividends received by individuals) is amended by striking out "Effective with respect to any taxable year ending after July 31, 1954, gross income" and inserting in lieu thereof "Gross income". (21)

AMENDMENT OF SECTION 124.—Section 124 (relating to

cross references to other Acts) is amended to read as follows: "SEC. 124. CROSS REFERENCES TO OTHER ACTS, "(a) For exemption of— "(1) Adjustments of indebtedness under wage earners' plans, see section 679 of the Bankruptcy Act (11 U.S.C. 1079). "(2) Allowances and expenditures to meet losses sustained by persons serving the United States abroad, due to appreciation of foreign currencies, see section 5943 of title 5, United States Code.

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