Page:United States Statutes at Large Volume 90 Part 2.djvu/444

 9 0 STAT. 1912 26 USC 61 note.

26 USC 337.

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26 USC 337 note. 26 USC 61 note.

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PUBLIC LAW 94-455—OCT. 4, 1976 (c) EFFECTIVE D A T E. — The provisions of this section shall apply to discharges of indebtedness made before January 1, 1979. SEC. 2118. TREATMENT OF GAIN OR LOSS ON SALES OR EXCHANGES IN CONNECTION WITH SIMULTANEOUS LIQUIDATION OP A PARENT AND SUBSIDIARY CORPORATION. (a) I N GEXERAL.—Section 337 (relating to gain or loss on sales o r exchanges in connection with certain liquidations) is amended by adding the following sentence a t the end of subsection (c)(2) thereof: "This paragraph shall not apply to a sale or exchange by a member of an affiliated group of corporations, as defined in section 1504(a) (but without regard to the exceptions contained in section 1 5 0 4 (b)), if each member of such group (including the common parent corporation) which receives, within the 12-month period beginning on the date of the adoption of a plan of complete liquidation by the corporation which made the sale or exchange, a distribution in complete liquidation from any other member of such group is itself completely liquidated within such 12-month period." (b) EFFECTIVE D A T E. — The amendment made by subsection (a) shall apply to sales or exchanges made pursuant to a plan of complete liquidation adopted after December 31, 1975. SEC. 2119. REGULATIONS RELATING TO TAX TREATMENT OF CERTAIN PREPUBLICATION EXPENDITURES OF PUBLISHERS. (a) GENERAL RULE. — W i t h respect to taxable years beginning on or before the date on which regulations dealing w i t h prepublication expenditures are issued after the date of the enactment of this Act, the application of sections 61 (as i t relates to cost of goods s o l d), 162,174, 263, and 471 of the I n t e r n a l Revenue Code of 1954 to any prepublication expenditure shall be administered— (1) without regard to Revenue R u l i n g 73-395, and (2) in the manner in which such sections were applied consistently by the tax p a y e r to such expenditures before the date of the issuance of such revenue ruling. (b)

REGULATIONS TO B E PROSPECTIVE ONLY.—Any

regulations

issued after the date of the enactment of this Act which deal with the application of sections 61 (as it relates to cost of goods s o l d), 162,174, 263, and 471 of the I n t e r n a l Revenue Code of 1954 to prepublication expenditures shall apply only with respect to taxable years beginning after the date on which such regulations are issued. (c) PREPUBLICATION EXPENDITURES D E F I N E D. — For purposes of t h i s

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26 USC 118.

section, the term "prepublication expenditures" means expenditures paid or incurred by the taxpayer (in connection with his trade o r business of publishing) for the writing, editing, compiling, illustrating, designing, or other development o r improvement of a book, teaching aid, or similar product. SEC. 2120. CONTRIBUTIONS IN AID OF CONSTRUCTION FOR CERTAIN UTILITIES. (a) IN GENERAL.—Section 118 (relating to contributions to the capital of a corporation) is amended by redesignating subsection (b) as subsection (c) and inserting immediately after subsection (a) the following new subsection: "(b)

Definition.

CONTRIBUTIONS I N A I D OF CONSTRUCTION.—

" (1) GENERAL RULE.—For purposes of this section, the term 'contribution to the capital of the taxpayer' includes any amount

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