Page:United States Statutes at Large Volume 95.djvu/298

 95 STAT. 272

PUBLIC LAW 97-34—AUG. 13, 1981 (b) REPEAL OF PARTIAL EXCLUSION OF INTEREST.—

94 Stat. 305. 26 USC 116 note. 26 USC 116.

(1) IN GENERAL.—Subsection (c) of section 404 of the Crude Oil Windfall Profit Tax Act of 1980 is amended by striking out "1983" and inserting in lieu thereof "1982". (2) CONFORMING AMENDMENT.—Section 116(a) (relating to partial exclusion of dividends) is amended to read as follows: "(a) EXCLUSION FROM GROSS INCOME.—

"(1) IN GENERAL.—Gross income does not include amounts received by an individual as dividends from domestic corporations. "(2) MAXIMUM DOLLAR AMOUNT.—The aggregate amount excluded under subsection (a) for any taxable year shall not exceed $100 ($200 in the case of a joint return under section 6013)." (c) CONFORMING AMENDMENTS.—

(1) The table of sections for part III of subchapter B of chapter 1, as amended by section 301(b)(1), is amended by striking out the item relating to section 128 and inserting in lieu thereof the following new item: "Sec. 128. Partial exclusion of interest." Ante, p. 270.

Ante, pp. 267, 270. 26 USC 46.

26 USC 854.

(2) Section 265 (relating to expenses and interest relating to tax-exempt income), as amended by section 301(b)(2), is amended by striking out "or to purchase or carry any certificate to the extent the interest on such certificate is excludable under section 128" and inserting in lieu thereof "or to purchase or carry obligations or shares, or to make other deposits or investments, the interest on which is described in section 128(c)(l) to the extent such interest is excludable from gross income under section 128". (3) Section 46(c)(8) (relating to limitation to amount at risk) is amended by striking out "clause (i), (ii), or (iii) of subparagraph (A) or subparagraph (B) of section 128(c)(2)" and inserting in lieu thereof "subparagraph (A) or (B) of section 128(c)(l)". (4) Subsection (b) of section 854 is amended to read as follows: "(b) OTHER DIVIDENDS AND TAXABLE INTEREST.— "(1) DEDUCTION UNDER SECTION 243.—In the case of a dividend

received from a regulated investment company (other than a dividend to which subsection (a) applies)— "(A) if such investment company meets the requirements of section 852(a) for the taxable year during which it paid such dividend; and "(B) the aggregate dividends received by such company during such taxable year are less than 75 percent of its gross income. then, in computing the deduction under section 243, there shall be taken into account only that portion of the dividend which bears the same ratio to the amount of such dividend as the aggregate dividends received by such company during such taxable year bear to its gross income for such taxable year. "(2) EXCLUSION UNDER SECTIONS II 6 AND 128.—For purposes of sections 116 and 128, in the case of any dividend (other than a dividend described in subsection (a)) received from a regulated investment company which meets the requirements of section 852 for the taxable year in which it paid the dividend— "(A) the entire amount of such dividend shall be treated as a dividend if the aggregate dividends received by such company during the taxable year equal or exceed 75 percent of its gross income,

�