Page:United States Statutes at Large Volume 90 Part 2.djvu/329

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PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1797

(20) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 6 0 I. —

(A) Section 535(b) is amended by striking out paragraph 26 USC 535. (8). (B)(i) Section 545(b) is amended by striking out para- 26 USC 545. graph (6), and by redesignating paragraph (8) as paragraph (6). (ii) Section 545(b)(2) is amended by striking out "paragraph (8)" and inserting in lieu thereof "paragraph (6)". (iii) Section 545(c)(5) is amended by striking out "subsection (b)(8) " and inserting in lieu thereof "subsection (b)(6)". (C) The table of parts for subchapter H of chapter 1 is amended by striking out the item relating to part III. (21) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 615.—

(A)(i) Section 243(b)(3)(C) is amended— 26 USC 243. (I) by striking out clauses (ii) and (iii) and inserting in lieu thereof the following: "(ii) $400,000 limitation for certain exploration A - = expenditures under section 617(h)(1),", and ( II) by redesignating clauses (iv) and (v) as clauses (ill) and (iv), respectively. (ii) Section 1564(b)(2)(C) is amended by striking out 26 USC 1564. "section 243(b)(3)(C)(v) " and inserting in lieu thereof "243(b)(3)(C)(iv)". (B) Section 381(c) (10) is amended to read as follows: 26 USC 381. " ( 1 0) T R E A r a i K N T OF CERTAIN M I N I N G DEVELOPMENT AND EXPLORATION EXPENSES OF DISTRIBUTOR OR TRANSFEROR CORPORATION.—

The acquiring corporation shall be entitled to deduct, as if it were the distributor or transferor corporation, expenses deferred under section 616 (relating to certain development expenditures) if the distributor or transferor corporation has so elected. For the purpose of applying the limitation provided in section 617(h), if, for any taxable year, the distributor or transferor corporation was allowed a deduction under section 617(a), the acquiring corporation shall be deemed to have been allowed such deduction." (C) Section 617(h)(1) is amended by striking out "and 26 USC 617. section 615(a) and the amounts which are or have been treated as deferred expenses under section 615(b) "and inserting in lieu thereof "and subsection (a) of section 615 (as in elfect before the enactment of the Tax Refonn Act of 1976)". (D) Section 617(h)(3) is amended to road as follows: "(3) APPLICATION OF PARAGRAPH (2)(B).—Paragraph (2)(B)

shall apply with respect to all amounts deducted before the latest such transfer from the individual or corporation to the taxpayer. Paragraph (2)(B) shall apply only if— "(A) the taxpayer acquired any mineral property from the individual or corporation under circumstances which make paragraph (7), (8), (11), (15), (17), (20), or (22) of section 113(a) of the Internal Revenue Code of 1939 apply to such transfer; or "(B) the taxpayer acquired any mineral property from the individual or corporation under circumstances which make section 334(b), 362 (a) and (b), 372(a), 374(b)(1), 1051, or 1082 apply to such transfer." (E) Section 617 is amended by adding at the end thereof the following new subsection: "(i) CERTAIN PRE-1970 EXPLORATION EXPENDITURES.—If—

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