Page:United States Statutes at Large Volume 96 Part 2.djvu/1013

 PUBLIC LAW 97-448—JAN. 12, 1983

96 STAT. 2375

(1) Paragraph (4) of section 128(d) (relating to limitation for credit unions) is amended by adding at the end thereof the following new sentence: "For purposes of this paragraph, the amounts described in subparagraph (A) of paragraph (5) shall include amounts paid into credit union share accounts." (2) Paragraph (2) of section 584(c) (relating to dividends or interest received) is amended to read as follows: "(2) DIVIDENDS OR INTEREST RECEIVED.—The proportionate share of each participant in the amount of dividends or interest received by the common trust fund and to which section 116 or 128 applies shall be considered for purposes of such section as having been received by such participant." (3) Paragraph (7) of section 643(a) (defining distributable net income) is amended to read as follows: "(7) DIVIDENDS OR INTEREST.—There shall be included the amount of any dividends or interest excluded from gross income pursuant to section 116 (relating to partial exclusion of dividends) or section 128 (relating to certain interest)." (4) Paragraph (5) of section 702(a) (relating to income and credits of partner) is amended to read as follows: "(5) dividends or interest with respect to which there is an exclusion under section 116 or 128, or a deduction under part VIII of subchapter B,". (5) Subparagraph (A) of section 128(c)(2) (defining qualified institution) is amended— (A) by striking out "or" at the end of clause (ii), and (B) by inserting after clause (iii) the following new clause: "(iv) a banking facility (whether or not insured under Federal or State law) which is operated under a cost plus agreement with the Department of Defense for members of the Armed Forces of the United States serving outside the United States and their dependents, or. (b) AMENDMENT RELATED TO SECTION 302.—Subsection (c) of section 128 (as amended by section 302(a) of the Economic Recovery Tax Act of 1981) is amended by adding at the end thereof the following new paragraph:

95 Stat. 267. ^°^ ^^•

26 USC 584.

26 USC 643.

26 USC 702.

26 USC 128.

95 Stat. 270. 26 USC 128.

"(3) LIMITATION ON QUALIFIED INTEREST EXPENSES, ETC.—

"(A) LIMITATION.—The amount of the qualified interest expense of any taxpayer for any taxable year shall not exceed such taxpayer's excess itemized deductions (as defined in section 63(c)). "(B) C!OORDINATION WITH OTHER PROVISIONS.—For purposes of sections 37, 43, 85, 105(d), 165(c)(3), 170(b), and 213, adjusted gross income shall be determined without regard to the exclusion provided by this section." (c) AMENDMENTS RELATED TO SECTION 311.— 95 Stat. 274. (1) LIMITATION ON DEDUCTION FOR SPOUSE.—Subparagraph (B)

of section 219(c)(2) (relating to limitation) is amended to read as 26 USC 219. follows: "(B) the amount allowable as a deduction under subsection (a) for the taxable year (determined without regard to so much of the employer contributions to a simplified employee pension as is fdlowable by reason of paragraph (2) of subsection (b))."

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