Page:United States Statutes at Large Volume 96 Part 2.djvu/1026

 96 STAT. 2388

PUBLIC LAW 97-448—JAN. 12, 1983 (2) ALLOCATION OF ROYALTY LIMIT.—Subparagraph (B) of sec-

26 USC 4994.

26 USC 6429.

tion 4994(f)(3) (relating to allocation of royalty limit) is amended by striking out "subsection (b)(1)" and inserting in lieu thereof "paragraph (2)(A)". (3) QuAUFiED FAMILY CORPORATION DEFINED.—Subparagraph (B) of section 6429(d)(4) is amended by striking out "other than royalty interests described in paragraph (2)(A)' and inserting in lieu thereof "other than royalty interests from which there is qualified royalty production determined by treating such corporation as a qualified royalty owner". (4) CREDIT OR REFUND FOR BENEFICIARIES OF TRUST OWNING ROYALTY INTERESTS.—

26 USC 6430.

(A) IN GENERAL.—Subchapter B of chapter 65 (relating to rules of special application) is amended by adding at the end thereof the following new section: "SEC. 6430. CREDIT OR REFUND OF WINDFALL PROFIT TAXES TO CERTAIN TRUST BENEFICIARIES. "(a) GENERAL RULE.—That portion of the tax imposed by section 4986 (relating to crude oil windfall profit tax) which is paid by any trust with respect to any qualified beneficiary's allocable trust production shall be treated as an overpayment of such tax by such qualified beneficiary. Any such overpayment shall be credited against the tax imposed by section 4986 or refunded to such qualified beneficiary. "(b) COORDINATION WITH ROYALTY EXEMPTION.—

"(1) IN GENERAL.—If the aggregate amount of the allocable trust production of any qualified beneficiary for any calendar year exceeds such beneficiary's unused exempt royalty limit for such calendar year, then the amount treated as an overpayment under subsection (a) with respect to such qualified beneficiary shall be reduced by an amount which bears the same ratio to the amount which (but for this paragraph) would be so treated as— "(A) the amount of such excess, bears to "(B) the aggregate amount of such allocable trust production. "(2) UNUSED EXEMPT ROYALTY LIMIT,—The unused exempt royalty limit of any qualified beneficiary for any calendar year is the excess of— "(A) the number of days in such calendar year, multiplied by the limitation in barrels determined under the table contained in section 4994(f)(2)(A)(ii), over "(B) the amount of exempt royalty oil (within the meaning of section 4994(f))— "(i) with respect to which such qualified beneficiary is the producer, and "(ii) which is removed from the premises during such calendar year. "(3) ALLOCATION.—Rules similar to the rules of paragraphs (2), (3), and (4) of section 6429(c) shall apply to the amount determined under paragraph (2)(A). "(c) ALLOCABLE TRUST PRODUCTION.—For purposes of this section— "(1) IN GENERAL.—The term 'allocable trust production' means, with respect to any qualified beneficiary, the qualified royalty production of any trust which—

�