Page:United States Statutes at Large Volume 98 Part 1.djvu/636

 98 STAT. 588

PUBLIC LAW 98-369—JULY 18, 1984 SEC. 68. INCREASE IN REDUCTION IN CERTAIN CORPORATE PREFERENCE ITEMS FROM 15 PERCENT TO 20 PERCENT.

26 USC 291.

Post, p. 986.

(a) IN GENERAL.—Each subsection (other than subsection (a)(2)) of section 291 (relating to special rules for corporate preference items) is amended by striking out "15 percent" each place it appears and inserting in lieu thereof "20 percent". (b) DEFERRED F S C INCOME.—Paragraph (4) of section 291(a) (relating to certain deferred DISC income) is amended to read as follows: "(4) CERTAIN DEFERRED FSC INCOME.—If a corporation is a shareholder of the FSC, in the case of taxable years beginning after December 31, 1984, section 923(a) shall be applied with respect to such corporation by substituting— "(A) '30 percent' for '32 percent' in paragraph (2), and "(B) '15/23' for '16/23' in paragraph (3). (c) MINIMUM TAX.—

26 USC 57.

(1) IN GENERAL.—Paragraph (1) of section 57(b) is amended to read as follows: "(1) IN GENERAL.— "(A) POLLUTION CONTROL FACILITIES; BAD DEBT RESERVES.—

In the case of any item of tax preference of a corporation described in paragraph (4) or (7) of subsection (a), only 59% percent of the amount of such item of tax preference (determined without regard to this subsection) shall be taken into account as an item of tax preference. "(B) IRON ORE AND COAL.—In the case of any item of tax preference of a corporation described in paragraph (8) of subsection (a) (but only to the extent such item is allocable to a deduction for depletion for iron ore and coal (including legnite)), only 71.6 percent of the amount of such item of tax preference (determined without regard to this subsection) shall be taken into account as an item of tax preference.". (2) CERTAIN CAPITAL GAINS.—Paragraph (2) of section 57(h)

(relating to capital gains) is amended by striking out "71.6 percent" and inserting in lieu thereof "59% percent". 26 USC 995.

(d) DEFERRED DISC INCOME.—Section 995(b)(l)(F)(i) (relating to

deemed distributions) is amended by striking out "one/half and inserting in lieu thereof "one-seventeenth". 26 USC 291 note.

(e) EFFECTIVE D A T E S. —

(1) IN GENERAL.—Except as provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 1984. (2) 1250 GAIN.—The amendments made by this section to section 291(a)(1) of the Internal Revenue Code of 1954 shall apply to sales or other dispositions after December 31, 1984, in taxable years ending after such date. (3) POLLUTION CONTROL FACILITIES.—The amendments made by this section to section 291(a)(5) of such Code shall apply to property placed in service after December 31, 1984, in taxable years ending after such date. (4) DRILLING AND MINING COSTS.—The amendments made by this section to section 291(b) of such Code shall apply to expenditures after December 31, 1984, in taxable years ending after such date.

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