Page:United States Statutes at Large Volume 95.djvu/292

 95 STAT. 266

49 USC 10921. 26 USC 1 et seq.

PUBLIC LAW 97-34—AUG. 13, 1981 who, on July 1, 1980, held one or more motor carrier operatiii£ authorities, an amount equal to the a^regate ac^usted basis of all motor carrier operating authorities held by the t ^ i a y e r on July 1, 1980, or acquirea subsequent thereto pursuant to a binding contract in effect on July 1, 1980, shall be allowed as a deduction ratabl^^ over a period of 60 months. Such 60-month period shall b ^ i n with the month of July 1980 (or if later, the month in which acquired), or at the election of the taxpayer, the first month of the taxpayer's first taxable year beginning after July 1, 1980. (b) DEnNinoN OP MOTOR CARRIER OPERATING AUTHORITY.—For purposes of this section, the term "motor carrier operating authority means a certificate or permit held by a motor common or contract carrier of property and issued pursuant to subchapter II of chapter 109 of title 49 of the United States Code. (c) SPECIAL RULES.— (1) ADJUSTED BASIS.—For

purposes of the Internal Revenue Code of 1954, proper adjustments shall be made in the adjusted basis of any motor carrier operating authority held by the taxpayer on July 1, 1980, for the amounts allowable as a deduction under this section. (2) CERTAIN STOCK ACQUISITIONS.—

(A) IN GENERAL.—Under regulations prescribed by the Secretary of the Treasury or his delegate, and at the election of the holder of the authority, in any case in which a corporation— (i) on or before July 1, 1980 (or after such date pursuant to a binding contract in effect on such date), acquired stock in a corporation which held, directly or indirectly, any motor carrier operating authority at the time of such acquisition, and (ii) would have been able to allocate to the basis of such authority that portion of the acquiring corporation's cost basis in such stock attributable to such authority if the acquiring corporation had received such authority in the liquidation of the acquired corporation immediately following such acquisition and such allocation would have been proper under section 334(b)(2) of such Code, the holder of the authority may, for purposes of this section, allocate a portion of the basis of the acquiring corporation in the stock of the acquired corporation to the basis of such authority in such manner as the Secretary may prescribe in such regulations. (B) ADJUSTMENT TO BASIS.—Under regulations prescribed by the Secretary of the Treasury or his delegate, proper adjustment shall be made to the basis of the stock or other assets in the manner provided by such regulations to take into account any allocation under subparagraph (A). (d) EFFECTIVE DATE.—The provisions of this section shall apply to taxable years ending after June 30, 1980. SEC. 267. LIMITATION ON ADDITIONS TO BANK LOSS RESERVES. (a) GENERAL RULE.—

26 USC 585.

(1) The first sentence after subparagraph (B) of paragraph (2) of section 585(b) is amended by striking out "but before 1982; and 0.6 percent for taxable years beginning after 1981" and inserting in lieu thereof "but before 1982; 1.0 percent for taxable years

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