Page:United States Statutes at Large Volume 92 Part 3.djvu/191

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2823

which such shareholder includes any amount in gross income under section 951(a)." 26 USC 951. (17) TREATMENT OF RECOVERIES OF FOREIGN EXPROPRIATION

LOSSES.—Paragraph (4) of section 1351(d) (relating to adjustment 26 USC 1351. for prior tax benefits) is amended to read as follows: "(4) SUBSTITUTION OF CURRENT TAX RATE.—For purposes of this subsection, the rates of tax specified in section 11(b) for the Ante, p. 2820. taxable year of the recovery shall be treated as having been in effect for all prior taxable years." (18) AMENDMENTS OF SECTION 1551.—

26 USC 1551.

(A) Subsection (a) of section 1551 (relating to disallowance of surtax exemption and accumulated earnings credit) is amended— (i) by striking out "disallow the surtax exemption (as defined in section 11(d))" and inserting in lieu thereof "disallow the benefits of the rates contained in section 11(b) which are lower than the highest rate specified in such section", and (ii) by striking out "such exemption or" and inserting in lieu thereof' 'such benefits or". (B) The section heading of section 1551 is amended to read as follows: "SEC. 1551. DISALLOWANCE OF THE BENEFITS OF THE GRADUATED COR- 26 USC 1551. PORATE RATES AND ACCUMULATED EARNINGS CREDIT." (C) The table of sections for part I of subchapter B of chapter 6 is amended by striking out the item relating to section 1551 and inserting in lieu thereof the following new item: "Sec. 1551. Disallowance of the benefits of the graduated corporate rates and accumulated earnings credit." (19) LIMITATIONS ON CERTAIN MULTIPLE TAX BENEFITS IN THE CASE OF CERTAIN CONTROLLED CORPORATIONS.—

(A) IN GENERAL.—Subsection (a) of section 1561 (relating to 26 USC 1561. limitations on certain multiple tax benefits in the case of certain controlled corporations) is amended— (i) by striking out paragraph (1) and inserting in lieu thereof the following: "(1) amounts in each taxable income bracket in the tax table in section 11(b) which do not aggregate more than the maximum amount in such bracket to which a corporation which is not a component member of a controlled group is entitled,", (ii) by striking out "amount" each place it appears in the second sentence and inserting in lieu thereof "amounts", and (iii) by striking out the last sentence. (B) CERTAIN SHORT TAXABLE YEARS.—Paragraph (1) of section 1561(b) (relating to certain short taxable years) is amended to read as follows: "(1) the amount in each taxable income bracket in the tax table in section 11(b),". (20) REPEAL OF CERTAIN OBSOLETE PROVISIONS.—

(A) Subsection (c) of section 6154 (defining estimated tax) is 26 USC 6154. amended to read as follows: "(c) ESTIMATED TAX DEFINED.—For purposes of this title, in the case of a corporation the term 'estimated tax' means the excess of—

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