Page:United States Statutes at Large Volume 96 Part 2.djvu/1041

 PUBLIC LAW 97-448—JAN. 12, 1983

96 STAT. 2403

(I) any portion of a qualified stock purchase is pursuant to a binding contract entered into on or after the date of the enactment of the Tax Equity and Fiscal Responsibility Act of 1982, and on or before the date of Ante, p. 324. the enactment of this Act, and (II) the purchasing corporation establishes by clear and convincing evidence that such contract was negotiated on the contemplation that, with respect to the deemed sale under section 338 of the Internal Revenue Code of 1954, the target corporation would be treated as a member of the affiliated group which includes the selling corporation, then the amendment made by clause (i) shall not apply to such qualified stock purchase. (B)(i) Subsection (d) of section 224 of such Act is amended Ante, p. 485. by adding at the end thereof the following new paragraphs: ^^ ^^ ^^^ ^°^"(4) EXTENSION OF TIME FOR MAKING ELECTIONS; REVOCATION OF ELECTIONS.—

"(A) EXTENSION.—The time for making an election under section 338 of such Code shall not expire before the close of February 28, 1983. "(B) REVOCATION.—Any election made under section 338 of such Code may be revoked by the purchasing corporation if revoked before March 1, 1983. "(5) RULES FOR ACQUISITIONS DESCRIBED IN PARAGRAPH

(2).—

"(A) IN GENERAL.—For purposes of applying section 338 of such Code with respect to any acquisition described in paragraph (2)— "(i) the date selected under subparagraph (B) of this paragraph shall be treated as the acquisition date, "(ii) a rule similar to the last sentence of section 334(b)(2) of such Code (as in effect on August 31, 1982) shall apply, and "(iii) subsections (e), (f), and (i) of such section 338, and paragraphs (4), (6), (8), and (9) of subsection (h) of such section 338, shall not apply. "(B) SELECTION OF ACQUISITION DATE BY PURCHASING COR-

PORATION.—The purchasing corporation may select any date for purposes of subparagraph (A)(i) if such date— "(i) is after the later of June 30, 1982, or the acquisition date (within the meaning of section 338 of such Code without regard to this paragraph), and "(ii) is on or before the date on which the election described in paragraph (2)(C) is made." (ii) Subparagraph (A) of section 224(d)(2) of such Act is 26 USC 338 note, amended by striking out "under paragraph (1)" and inserting in lieu thereof "(within the meaning of section 338 of such Code without regard to paragraph (5) of this subsection)". (9) AMENDMENTS RELATED TO SECTION 231.—

(A) Clause (ii) of section 263(g)(2)(B) (defining interest and 26 USC 263. carrying charges) is amended by striking out "section 1232(a)(4)(A)" and inserting in lieu thereof "section 1232(a)(3)(A)". (B) Section 1232 (relating to bonds and other evidences of 26 USC 1232. indebtedness) is amended by redesignating subsection (d) as subsection (c).

�