Page:United States Statutes at Large Volume 94 Part 3.djvu/869

 PUBLIC LAW 96-603—DEC. 28, 1980

94 STAT. 3513

"(ii) the reference in subsection (a)(1) of section 357 to the nonrecognition of gain includes a reference to the nonappHcation of paragraph (9)(A) of this subsection. "(I) ELECTION.—A transferor may make an election under this paragraph only in such manner as the Secretary may by regulations prescribe and only on or before the due date (including extensions) for filing the return of the corporation of the taxes imposed by this chapter for the corporation's first taxable year ending after the date of the transfer (or, if later, after the date of the enactment of this paragraph). "(J) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this paragraph." (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to transfers in taxable years ending after December 31, 1974, but only for purposes of applying section 613A of the Internal Revenue Code of 1954 to periods after December 31, 1979. SEC. 4. CREDITS ALLOWABLE AGAINST MINIMUM TAX.

26 USC 357.

26 USC 613A "°*^ 26 USC 613A.

(a) ALLOWANCE OF CREDIT.—

(1) IN GENERAL.—Paragraph (1) of section 55(c) (relating to 26 USC 55. credits allowable against alternative minimum tax) is amended to read as follows: "(1) IN GENERAL.—For purposes of—

"(A) determining the amount of any credit allowable under subpart A of part IV of this subchapter (other than the 26 USC 31. foreign tax credit allowable under section 33(a)) against the 26 USC 33. tax imposed by subsection (a), the tax imposed by subsection (a) shall be treated as a tax imposed by this chapter only to the extent of the amount which would be determined under subsection (a)(1) if the alternative minimum taxable income was reduced by the sum of— "(i) the net capital gain, and "(ii) the adjusted itemized deductions, and "(B) determining the amount of any such credit (including the credit allowable under section 33(a)) against the tax imposed by this chapter (other than the tax imposed by this section) for the current taxable year, this section shall be disregarded." (2) METHOD OF DETERMINING CREDITS TAKEN INTO ACCOUNT.—

Section 55(c) is amended by redesignating paragraphs (2) and (3) 26 USC 55. as paragraphs (3) and (4), respectively, and by inserting after paragraph (1) the following new paragraph: "(2) RULES FOR DETERMINING AMOUNT OF CREDIT ALLOWABLE.—

For purposes of determining the amount of any credit under subpart A of part IV of this subchapter (other than the credits 26 USC 31. imposed by sections 31, 39, and 43) which can be taken against 26 USC 31,39,43. the tax imposed by subsection (a)— "(A) the amount of such credit shall be increased by an amount equal to the lesser of— "(i) the amount of such credit allowable in computing the regular tax for the current taxable year, or "(ii) the excess of— "(I) the amount of the tax imposed by subsection (a), over "(II) the sum of the amounts determined under this subparagraph with respect to credits allowed under a section of such subpart having a higher

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