Page:United States Statutes at Large Volume 98 Part 1.djvu/827

 PUBLIC LAW 98-369—JULY 18, 1984

98 STAT. 779

"(ID the excess of 30 percent of the taxpayer's contribution base for the taxable year over the amount of the contributions of capital gain property to which subparagraph (C) applies. For purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions. "(ii) CARRYOVER.—If the aggregate amount of contributions described in clause (i) exceeds the limitation of clause (i), such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution of capital gain property to which clause (i) applies in each of the 5 succeeding taxable years in order of time." (2) TECHNICAL AMENDMENTS.—

(A) Clause (vii) of section 170(b)(l)(A) is amended by strik- 26 USC 170. ing out "subparagraph (D)" and inserting in lieu thereof "subparagraph (E)". (B) The subparagraph heading and clause (i) of subparagraph (C) of section 170(b)(1) are amended to read as follows: ...

"(C) SPECIAL LIMITATION WITH RESPECT TO CONTRIBUTIONS DESCRIBED IN SUBPARAGRAPH (A) OF CERTAIN CAPITAL GAIN PROPERTY.—

"(i) In the case of charitable contributions described in subparagraph (A) of capital gain property to which subsection (e)(1)(B) does not apply, the total amount of contributions of such property which may be taken into account under subsection (a) for any taxable year shall not exceed 30 percent of the taxpayer's contribution base for such year. For purposes of this subsection, contributions of capital gain property to which this subparagraph applies shall be taken into account after all other charitable contributions (other than charitable contributions to which subparagraph (D) applies)." (C) Subparagraph (B) of section 170(e)(l) is amended by striking out "subsection (b)(l)(D)" and inserting in lieu thereof "subsection (b)(l)(E)". (d) EFFECTIVE DATES.— 26 USC 170 (1) SUBSECTIONS (a) AND (C).—The amendments made by sub- note.

sections (a) and (c) shall apply to contributions made in taxable years ending after the date of the enactment of thfe Act. (2) SUBSECTION (b).—The amendment made by subsection (b) shall apply to contributions made after the date of the enactment of this Act in taxable years ending after such date.

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SEC. 302. EXEMPTION FOR CERTAIN OPERATING FOUNDATIONS FROM EXCISE TAX ON INVESTMENT INCOME. (a) GENERAL RULE.—Section 4940 (relating to excise tax based on 26 USC 4940. investment income) is amended by adding at the end thereof the following new subsection: "(d) EXEMPTION FOR CERTAIN OPERATING FOUNDATIONS.—

"(1) IN GENERAL.—No tax shall be imposed by this section on any private foundation which is an exempt operating foundation for the taxable year.

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