Page:United States Statutes at Large Volume 96 Part 2.djvu/1031

 PUBLIC LAW 97-448—JAN. 12, 1983

96 STAT. 2393

striking out "the taxpayer" each place it appears and inserting in lieu thereof "the producer". (2)(A) Paragraph (1) of section 4994(e) (defining exempt Alas- 26 USC 4994. kan oil) is amended to read as follows: "(1) from a well located north of the Arctic Circle or from a reservoir from which oil has been produced in commercial quantities through such a well, or". (B) Paragraph (2) of section 4994(e) is amended by striking out "the divide of the Alaskan-Aleutian range" and inserting in lieu thereof "the divides of the Alaska and Aleutian ranges". (3)(A) Subparagraph (A) of section 4994(b)(1) (defining qualified charitable interest) is amended— (i) by striking out "or" at the end of clause (ii), (ii) by striking out "and" at the end of clause (iii) and inserting in lieu thereof "or", and (iii) by adding at the end thereof the following new clause: (iv) held by an organization described in section 509(a)(3) which is operated exclusively for the benefit of an organization described in— "(I) clause (ii), or "(II) section 170(b)(l)(A)(ii) which is also described in section 170(c)(2), and". (B) Subparagraph (B) of section 4994(b)(1) is amended by striking out "or (ii)" and inserting in lieu thereof ", (ii), or (iv)". (C) Paragraph (2) of section 4994(b) is amended— (i) by striking out "clause (ii) or (iii)" and inserting in lieu thereof "clause (ii), (iii), or (iv)", (ii) by striking out "clause (i) or (ii)" each place it appears and inserting in lieu thereof "clause (i), (ii), or (iv), and (iii) by inserting ", whichever is applicable," after "paragraph (1)(A)" each place it appears, (g) AMENDMENTS TO SECTION 4995.— 26 USC 4995. (1) Subparagraph (A) of section 4995(a)(3) (relating to adjustments for withholding errors) is amended— (A) by striking out "removed during any calendar year", and (B) by striking out "removed during the same calendar year". (2) Paragraph (3) of section 4995(a) is amended by striking out subparagraph (C) and by redesignating subparagraph (D) as subparagraph (C). (3) Subparagraph (B) of section 4995(a)(4) (relating to time payment deemed made) is amended by striking out The producer" and inserting in lieu thereof "For purposes of this chapter (and so much of subtitle F as relates to this chapter), the producer". (h) AMENDMENTS TO SECTION 4996.— 26 USC 4996. (I)(A) Paragraph (1) of section 4996(a) (defining producer) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph: '(B) NET PROFITS INTERESTS.—

"(i) IN GENERAL.—Except to the extent otherwise provided by regulations, in the case of any property, all cost recovery oil covered by a net profits agreement (within the meaning of subsection (h)) shall be treated

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