Page:United States Statutes at Large Volume 94 Part 1.djvu/356

 94 STAT. 306

PUBLIC LAW 96-223—APR. 2, 1980 "(i) a mutual savings bank, cooperative bank, domestic building and loan association, industrial loan association or bank, or credit union, or "(ii) any other savings or thrift institution which is chartered and supervised under Federal or State law, the deposits or accounts in which are insured under Federal or State law or which are protected and guaranteed under State law, "(C) interest on— "(i) evidences of indebtedness (including bonds, debentures, notes, and certificates) issued by a domestic corporation in registered form, and "(ii) to the extent provided in regulations prescribed by the Secretary, other evidences of indebtedness issued by a domestic corporation of a type offered by corporations to the public, "(D) interest on obligations of the United States, a State, or a political subdivision of a State (not excluded from gross income of the taxpayer under any other provision of law), and "(E) interest attributable to participation shares in a trust established and maintained by a corporation established pursuant to Federal law. "(2) DISTRIBUTIONS FROM REGULATED INVESTMENT COMPANIES AND REAL ESTATE INVESTMENT TRUSTS.—SubsectioD (a) shall apply

Post, p. 307. Post, p. 307.

with respect to any dividend from— "(A) a regulated investment company, subject to the limitations provided in section 854(b)(2), or "(B) real estate investment trust, subject to the limitations provided in section 857(c). "(3) CERTAIN NONRESIDENT AUENS INELIGIBLE FOR EXCLUSION.—

26 USC 871.

26 USC 877.

In the case of a nonresident alien individual, subsection (a) shall apply only— "(A) in determining the tax imposed for the taxable year pursuant to section 871(b)(1) and only in respect of dividends and interest which are effectively connected with the conduct of a trade or business within the United States, or "(B) in determining the tax imposed for the taxable year pursuant to section 877(b)." (b) CLERICAL AND CONFORMING AMENDMENTS.—

Ante, p. 305. 26 USC 265.

26 USC 584.

26 USC 643.

(1) The table of sections for part III of subchapter B of chapter 1 is amended by inserting "and interest" after "dividends" in the item relating to section 116. (2) The first sentence of paragraph (2) of section 265 (relating to interest) is amended by inserting after "subtitle" the following: ", or to purchase or carry obligations or shares, or to make deposits or other investments, the interest on which is described in section 116(c) to the extent such interest is excludable from gross income under section 116". (3) Paragraph (2) of section 584(c) (relating to income of participants in fund) is amended by inserting "or interest" after dividends" each place it appears in the caption and text thereof. (4) Paragraph (7) of section 643(a) (relating to definition of distributable net income) is amended by inserting "or interest" after "dividends" each place it appears in the caption or text thereof.

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