Page:United States Statutes at Large Volume 90 Part 2.djvu/465

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1933

SEC. 2141. UVESTOCK SOLD ON ACCOUNT OF DROUGHT. (a) IN GENERAL.—Section 451 (relating to general rules for taxable 26 USC 451. year of inclusion) is amended by adding at the end thereof the following new subsection: " (e) SPECIAL RULE FOB PROCEEDS FROM LIVESTOCK SOLD ON ACCOUNT OF DROUGHT.—

"(1) IN GENERAL.—In the case of income derived from the sale or exchange of livestock (other than livestock described in section 1231(b)(3)) in excess of the number the taxpayer would sell if he followed his usual business practices, a taxpayer reporting on the cash receipts and disbursements method of accounting may elect to include such income for the taxable year following the taxable year in which such sale or exchange occurs if he establishes that, under his usual business practices, the sale or exchange •; would not have occurred in the taxable year in which it occurred if it were not for drought conditions, and that these drought con^ ditions had resulted in the area being designated as eligible for ' assistance by the Federal Government. "(2) LIMITATION.—Paragraph (1) shall apply only to a taxpayer whose principal trade or business is farming (within the meaning of section 6420(c)(3)). " (b) EFFECTIVE DATE.—The amendment made by this section applies 26 USC 451 note. to taxable years beginning after December 31, 1975. Approved October 4, 1976.

LEGISLATIVE HISTORY: HOUSE REPORTS: No. 94-658 (Comm. on Ways and Means) and No. 94-1515 (Coram, of Conference). SENATE REPORTS: No. 94-938 and No. 94-938, Part 2 (Coram, on Finance) and No. 94-1236 (Comra. of Conference). CONGRESSIONAL RECORD: Vol. 121 (1975): Dec. 3, 4, considered and passed House. Vol. 122 (1976): June 16-18, 21-25, 28-30, July 1, 20-23, 26-30, Aug. 3-6, considered and passed Senate, amended. Sept. 16, House and Senate agreed to conference report, resolved amendments in disagreement. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: Vol. 12, No. 41 (1976): Oct. 4, Presidential stateraent.

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