Page:United States Statutes at Large Volume 90 Part 2.djvu/84

 90 STAT. 1552

PUBLIC LAW 94-455—OCT. 4, 1976 paragraph (B) shall be reduced (but not below zero) by the sum of— "(i) one-third of the corporation's timber preference income (as defined in subsection (e)), plus "(ii) $20,000, but in no event shall this reduction exceed the amount of timber preference income." (B)

26 USC 56.

Section 56 is amended by adding at the end thereof the following new subsections: "(d)

Ante, p. 1550.

Ante, p. 1551.

REGULAR TAX DEDUCTION ADJUSTMENTS FOR TIMBER.—

REGULAR TAX DEDUCTION ADJUSTMENT FOR TIMBER.—In the

case of a corporation, the regular tax deduction (as determined under subsection (c)) shall be reduced by an amount equal to the lesser of— "(1) one-third of the amount determined under subsection (c) without regard to this subsection, or "(2) the preference reduction for timber determined under section 57(a)(9)(C). "(e) TAX CARRYOVER FOR TIMBER.—

Post, p. 1643.

•

' 26 USC 57.

"(1) IN GENERAL.—In the case of a corporation, if for any taxable year, including a taxable year beginning before January 1, 1976— "(A) the taxes imposed by this chapter (computed without regard to this part and without regard to the tax imposed by section 531) which, under regulations prescribed by the Secretary, are attributable to income from timber, reduced by the sum of the credits allowable under— " (i) section 33 (relating to foreign tax credit), "(ii) section 38 (relating to investment credit), and "(iii) section 40 (relating to expenses of work incentive programs), exceed "(B) the items of tax preference (as determined under section 57), then the excess of the taxes described in subparagraph (A) over the items of tax preference shall be a tax carryover to each of the 7 taxable years following such year. The entire amount of the excess shall be carried to the first of such 7 taxable years, and then to each of the other such taxable years to the extent that such excess is not used to reduce the amount subject to tax under subsection (a) for a prior taxable year to which such excess may be carried. "(2) LIMITATION.—The amount of any carryover under paragraph (1) which may be deducted in a taxable year shall be limited to— " (A) the excess of— "(i) the amount of timber preference income for the taxable year (as defined in section 57(e)), over "(ii) the amount determined under section 57 (a)(9)(C) for the taxable year, "(B) reduced by the excess of— "(i) the regular tax deduction for the taxable year (as determined under subsection (c) without regard to this subsection), over "(ii) the amount determined under subsection (d) for the taxable year." (C) TIMBER PREFERENCE INCOME DEFINED.—Section 57 is

amended by adding at the end thereof the following new subsection:

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