Page:United States Statutes at Large Volume 98 Part 1.djvu/833

 PUBLIC LAW 98-369—JULY 18, 1984 .-,: >-..

98 STAT. 785

Attorney General (or other appropriate State official) to such plan during such 5-year period, and "(C) the Secretary determines that such plan can reasonably he expected to be carried out before the close of the extension period."

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(b) EFFECTIVE DATE.— 26 USC 4943 (1) IN GENERAL.—The amendment made by subsection (a) ^°^^shall apply to business holdings with respect to which the 5-year period described in section 4943(c)(6) of the Internal Revenue Code of 1954 ends on or after November 1, 1983. ' ' ^' (2) TRANSITIONAL RULE.—Any plan submitted to the Secretary of the Treasury or his delegate on or before the 60th day after the date of the enactment of this Act shall be treated as submitted before the close of the initial 5-year period referred to in section 4943(c)(7)(B) of the Internal Revenue Code of 1954 (as Ante, p. 784. added by subsection (a)). SEC. 308. DECREASES ATTRIBUTABLE TO STOCK ISSUANCES NOT TO REDUCE PERMITTED PERCENTAGE OF HOLDINGS WHERE DECREASE IS 2 PERCENT OR LESS. (a) GENERAL RULE.—The second sentence of clause (ii) of section 4943(c)(4)(A) (relating to present holdings) is amended to read as 26 USC 4943. follows: "For purposes of the preceding sentence, any decrease in percentage holdings attributable to issuances of stock (or to issuances of stock coupled with redemptions i |('.. of stock) shall be disregarded so long as— "(I) the net percentage decrease disregarded .^,, ~. under this sentence does not exceed 2 percent, and ..,.,, "(Il)thenumberof shares held by the foundation ',;,; is not affected by any such issuance or redemption." (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 4943 shall apply to increases and decreases occurring after the date of the note. enactment of this Act. SEC. 3C9. AGGREGATION OF STOCK HOLDINGS OF PRIVATE FOUNDATION AND DISQUALIFIED PERSONS IN APPLYING 95 PERCENT OWNERSHIP TEST. (a) GENERAL RULE.—Clause (i) of section 4943(c)(4)(B) (relating to present holdings) is amended by striking out "the private foundation has" and inserting in lieu thereof "the private foundation and all disqualified persons have". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect as if included in the amendment made by section 101(b) of the Tax Reform Act of 1969.

26 USC 4943.

26 USC 4943 T^°^26 USC prec. 4940, 4940-4948.

SEC. 310. 5-YEAR PERIOD TO DISPOSE OF EXCESS HOLDINGS RESULTING FROM CERTAIN ACQUISITIONS BY DISQUALIFIED PERSONS. (a) GENERAL RULE.—Paragraph (6) of section 4943(c) (relating to 5- 26 USC 4943. year period to dispose of gifts, bequests, etc.) is amended by adding at the end thereof the following new sentence: "In any case where an acquisition by a disqualified person would result in a substitution under clause (i) or (ii) of subpara>:*nj s; r graph (D) of paragraph (4), the preceding sentence shall be applied with respect to such acquisition as if it did not contain

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