Page:United States Statutes at Large Volume 96 Part 1.djvu/465

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 423

the amount allowable as a deduction with respect to any loss taken into account for such year by reason of an election under section 165(i) of the Internal Revenue Code of 1954 (as amended by this section).

Subtitle B—Provisions Primarily Relating to Business PART I—REDUCTION IN CERTAIN DEDUCTIONS AND CREDITS SEC. 204. 15 PERCENT REDUCTION IN CERTAIN CORPORATE PREFERENCE ITEMS.

(a) IN GENERAL.—Subchapter B of chapter 1 (relating to computation of taxable income) is amended by adding at the end thereof the following new part: "PART XI—SPECIAL RULES RELATING TO CORPORATE PREFERENCE ITEMS "Sec. 291. Special rules relating to corporate preference items. "SEC. 291. SPECIAL RULES RELATING TO CORPORATE PREFERENCE ITEMS. "(a) 15-PERCENT REDUCTION IN CERTAIN PREFERENCE ITEMS, ETC.—

For purposes of this subtitle, in the case of an applicable corporation— "(1) SECTION 1250 CAPITAL GAIN TREATMENT.—In the case of section 1250 property which is disposed of during the taxable year, 15 percent of the excess (if any) of— "(A) the amount which would be treated as ordinary income if such property was section 1245 property or section 1245 recovery property, over "(B) the amount treated as ordinary income under section 1250, shall be treated as gain which is ordinary income and shall be recognized notwithstanding any other provision of this title. "(2) REDUCTION IN PERCENTAGE DEPLETION.—In the case of iron ore and coal (including lignite), the amount allowable as a deduction under section 613 with respect to any property (as defined in section 614) shall be reduced by 15 percent of the amount of the excess (if any) of— "(A) the amount of the deduction allowable under section 613 for the taxable year (determined without regard to this paragraph), over "(B) the adjusted basis of the property at the close of the taxable year (determined without regard to the depletion deduction for the taxable year). "(3) CERTAIN FINANCIAL INSTITUTION PREFERENCE ITEMS.—The

amount allowable as a deduction under this chapter (determined without regard to this section) with respect to any financial institution preference item shall be reduced by 15 percent. "(4) CERTAIN DEFERRED DISC INCOME.—If an applicable corporation is a shareholder of a DISC, in the case of taxable years beginning after December 31, 1982, section 995(b)(l)(F)(i) shall be

26 USC 291.

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