Page:United States Statutes at Large Volume 91.djvu/182

 91 STAT. 14«

PUBLIC LAW 95-30—MAY 23, 1977 (2)

26 USC 56.

Anu, p. 141.

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(A) Section 56(c) (defining regular tax deduction) is amended by striking out " and " at the end of paragraph (7), by striking out the period at the end of paragraph (8) and inserting in lieu thereof ", and", and by adding at the end thereof the following new paragraph: .: " (9) section 44B (relating to credit for employment of certain new employees)." (B) Subparagraph (A) of section 5 6 (e)(1) (relating to tax carryover for timber) is amended— (i) by striking out " and " at the end of clause ( i i), (ii) by striking out "exceed" at the end of clause (iii) and inserting in lieu thereof "and", and (iii) by inserting after clause (iii) the following new clause: " ( i v) section 44B (relating to credit for employment of certain new employees), exceed".

26 USC 381.

(3)

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26 USC 383.

Ante, p. 146.

CORPORATE REORGANIZATIONS.—

(A) Subsection (c) of section 381 (relating to items of the distributor or transferor corporation) is amended by adding at the end thereof the following new paragraph: "(26)

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MINIMUM TAX.—

CREDIT UNDER SECTION 4 4 B FOR EMPLOYMENT OF CERTAIN

NEW EMPLOYEES.—The acquiring corporation shall take into ,, account (to the extent proper to carry out the purposes of this section and section 44B. and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44B in respect of the distributor or transferor corporation." (B) Section 383 (relating to special limitations on unused investment credits, work incentive program credits, foreign taxes, and capital losses), as in effect for taxable years beginning after June 30, 1978, is amended— (i) by inserting "to any unused new employee credit of the corporation under section 5 3 (c), " after "section 50A(b),";and (ii) by striking out "WORK INCENTIVE PROGRAM CREDITS," in the section heading and inserting in lieu thereof "WORK INCENTIVE PROGRAM CREDITS, NEW EMPLOYEE CREDITS,". (C) Section 383 (as in effect on the day before the date of the enactment of the T a x Reform Act of 1976) is amended— (i) by inserting "to any unused new employee credit of the corporation which could otherwise be carried forward under section 5 3 (c), " after "section 5 0 A (b), "; and (ii) by striking out "WORK INCENTIVE PROGRAM CREDITS," in the section heading and inserting in lieu thereof "WORK INCENTIVE PROGRAM CREDITS, NEW EMPLOYEE CREDITS,". (D) The table of sections for part V of subchapter C of „.' chapter 1 is amended by striking out "work incentive program credits," in the item relating to section 383 and inserting in lieu thereof "work incentive program credits, new employee credits,".

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