Page:United States Statutes at Large Volume 91.djvu/187

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 153

" (4) U S E I N PROVIDING DAY CAKE SERVICES.

" (A) IN GENERAL.—Subsection (a) shall not apply to any item to the extent that such item is allocable to the use of any portion of the dwelling unit on a regular basis in the taxpayer's trade or business of providing day care for children, for individuals who have attained age 65, or for individuals who are physically or mentally incaj^able of caring for themselves. " (B) LICENSING, ETC., Ki:QumEMENT.—Subparagraph (A)

shall apply to items accruing for a period only if the owner or operator of the trade or business referred to in subparagraph " (i) has applied for (and such application has not been rejected), " (ii) has been granted (and such g r a n t i n g has not been revoked), or " ( i i i) is exempt from having, a license, cel-tification, registration, or approval as a day care center or as a family or group day care home under the provisions of any applicable State law. This subparagraph shall apply only to items accruing in periods beginning on or after the first day of the first month which begins more than 90 days after the date of the enactment of the T a x Keduction and Simplification Act of 1977. " (C) ALLOCATION FORMULA.-—If a portion of the taxpayer's

dwelling unit used for the purposes described in subpara,:. g r a p h (A) is not used exclusively for those purposes, the amount of the expenses attributable to that portion shall not exceed an amount which bears the same ratio to the total amount of the items allocable to such portion as the number of hours the portion is used for such purposes bears to the number of hours the portion is available for use." (b) CONFORMING AMENDMENT. — Paragraph (5) of section 280A(c) of such Code (as redesignated by subsection (a)) is amended by striking out " paragraph (1) or (2) " and inserting in lieu thereof "paragraph (1), (2),or (4)". (c) EFFECTIVE D A T E. — The amendments made by this section shall apply to taxable years beginning after December 31, 1975. SEC. 307. STATE LEGISLATORS' TRAVEL EXPENSES AWAY FROM HOME. Subsections (a) and (d) of section 604 of the T a x Reform Act of 1976 are each amended by striking out " January 1, 1976," and inserting in lieu thereof " January 1, 1977,". Subsection (c) of such section is amended by inserting "beginning before January 1, 1976," after "any taxable year". SEC. 308. TREATMENT OF INTANGIBLE DRILLING COSTS FOR PURPOSES OF THE MINIMUM TAX. (a) IN GENERAL. — Paragraph (11) of section 57(a) (relating to minimum tax) is amended to I'ead as follows:

26 USC 280A. 26 USC 280A note.

26 USC 162 note.

26 USC 57.

" ( 1 1) INTANGIBLE DRILLING COSTS.—

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" (A) IN GENERAL.—With respect to all oil and gas properties of the taxpayer, the amount (if any) by which the amount of the excess intangible drilling costs arising in the taxable year is greater than the amount of the not income of the taxpayer from oil and gas propeities for the taxable year.

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