Page:United States Statutes at Large Volume 91.djvu/178

 9 1 STAT. 144

Ante, p. 141. "Controlled group of corporations.'

Regulations.

PUBLIC LAW 95-30—MAY 23, 1977 a single employer. I n any such case, the credit (if any) allowable by section 44B to each such member shall be its proportionate contribution to the increase in unemployment insurance wages giving rise to such credit. For purposes of this subsection, the term 'controlled group of corporations' has the meaning given to such term by section 1563 (a), except that— " (1) 'more than 50 percent' shall be substituted for 'at least 80 percent' each place it appears in section 1563(a)(1), and " (2) the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. "(b)

EMPLOYKES OF PARTNERSHIPS, PROPRIETORSHIPS, E T C., W H I C H

A R E UNDER COMMON CONTROL.—For purposes of this subpart, under regulations prescribed by the Secretary— " (1) all employees of trades or business (whether or not incorporated) which are under common control shall be treated as . employed by a single employer, and " (2) the credit (if any) allowable by section 44B w i t h respect to each trade or business shall be its proportionate contribution to the increase in unemployment insurance wages giving rise to such credit. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (a). Regulations.

"(c)

ADJUSTMENTS FOR CERTAIN ACQUISITIONS, E T C. — Under reg-

ulations prescribed by the Secretary— " (1) ACQUISITIONS.—If, after December 31, 1975, an employer acquires the major portion of a trade or business of another person s.|j (hereinafter in this paragraph referred to as the 'precedessor') or
 * ,v- the major portion of a separate unit of a trade or business of a

predecessor, then, for purposes of applying this subpart for any periods before such acquisition shall be increased by so much of such wages paid by the precedessor with respect to the acquired trade or business as is attributable to the portion of such trade or . - business acquired by the employer. " (2) DISPOSITIONS.—If, after December 31, 1975— ,,- ,, "CA) an employer disposes of the major portion of any trade or business of the employer or the major portion of a separate unit of a trade or business of the employer in a transaction to which paragraph (1) applies, and ,;<. "(1^) the employer furnishes the acquiring person such V. information as is necessary for the application of paragraph (1), then, for purposes of applying this subpart for any calendar year J.; ending after such disposition, the amount of unemployment insurance wages deemed paid by the employer during periods before such disposition shall be decreased by so much of such wages as is attributable to such trade or business or separate unit. " (d) T A X - E X E M P T ORGANIZATIONS.—No credit shall be allowed under section 44B to any organization (other than a cooperatiA^e described in section 521) which is exempt from income tax under this chapter.
 * ,,. calendar year ending after such acquisition, the amount of unemployment insurance wages deemed paid by the employer during

�