Page:United States Statutes at Large Volume 95.djvu/291

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 265

§overnmentif:of a State or political subdivision of the United tates and "(i) the certification of development costs is required; "(ii) the tenants occupy units in the property as their principal residence and the program provides for sale of the units to tenants demonstrating home ownership responsibility; and (iii) the leasing and sale of such units are pursuant to a program in which the sum of the taxable income, if any, from leasing of each such unit, for the entire period of such leasing, and the amount realized from sale or other disposition of a unit, if sold, normally does not exceed the excess of the taxpayer's cost basis for such unit of property, before adjustment under section 1016 for deductions under section 167, over the net tax benefits realized by the taxpayer, consisting of the tax benefits from such deductions under section 167 minus the tax incurred on such taxable income from leasing, if any." (b) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to rehabilitation expenditures incurred after December 31, 1980. SEC. 265. DEDUCTIBILITY OF GIFTS BY EMPLOYERS TO EMPLOYEES. (a) IN GENERAL.—Subparagraph (C) of section 274(b)(l) (relating to limitation on deductibility of gifts) is amended to read as follows: "(C) an item of tangible personal property which is awarded to an employee by reason of length of service, productivity, or safety achievement, but only to the extent that'll) the cost of such item to the taxpayer does not exceed $400, or "(ii) such item is a qualified plan award." (b) QUALIFIED PLAN AWARD DEFINED.—Subsection (b) of section 274 is amended by adding at the end thereof the following new paragraph: "(3) QuAUFiED PLAN AWARD.—For purposes of this subsection— "(A) IN GENERAL.—The term 'qualified plan award' means an item which is awarded as part of a permanent, written plan or program of the taxpayer which does not discriminate in favor of officers, shareholders, or highly compensated employees as to eligibility or benefits. (B) AVERAGE AMOUNT OF AWARDS.—An item shall not be treated as a qualified plan award for any taxable year if the average cost of all items awarded under all plans described in subparagraph (A) of the taxpayer during the taxable year exceeds $400. "(C) MAXIMUM AMOUNT PER ITEM.—An item shall not be treated as a qualified plan award under this paragraph to the extent that the cost of such item exceeds $1,600." (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years ending on or after the date of the enactment of this Act. SEC. 266. DEDUCTION FOR MOTOR CARRIER OPERATING AUTHORITY. (a) GENERAL RULE.—For purposes of chapter 1 of the Internal Revenue Code of 1954, in computing the taxable income of a taxpayer

26 USC 167 note.

26 USC 274

26 USC 274 note. 26 USC 165 note.

26 USC i et seq.

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