818
PUBLIC LAW 5 9 4 - J U L Y 21, 1952
Public Law 594 July 21, 1952 [H. R. 8271]
Internal Revenue Code,amendments. 64 Stat. 1188. 26 USC 457.
Post, p. 819.
[66
STAT.
CHAPTER 951
^^ ACT ijo amend sections 433(b), 457, and 459 of the Internal Revenue Code, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, effective with respect to taxable years ending after June 30, 1950, section 457 of the Internal Revenue Code, as added by section 101 of the Excess Profits Tax Act of 1950, is hereby amended by changing its heading to read "CORPORATIONS COMPLETING CONTRACTS OR MAKING DEPOSITS UNDER MERCHANT MARINE ACT" and by adding to said section 457 the following new subsection: "(c) BASE PERIOD EARNINGS CREDIT FOR DEPOSITS UNDER MERCHANT MARINE ACT, 1936.—The excess profits net income computed under
section 433(b) for any base period year shall be increased by the amount, if any, by which (1) the taxpayer's tax-deferred deposits of earnings, made in or accrued to reserve funds under section 607 of 49 Stat. 2005. the Merchant Marine Act, 1936, in respect of such base period year, 46 USC 1177. exceeds (2) the amount of such deposits of earnings for the taxable year. The Secretary shall provide, by regulation, for proper adjustment of the deposits made in or accrued to the reserve funds for any taxable year so as to exclude therefrom any amount payable for such year as reimbursement of operating-differential subsidy." 65 Stat. 553-557. SEC. 2. Section 459 of the Internal Revenue Code (miscellaneous 26 USC 459. provisions relating to the computation of average base period net income) is hereby amended by adding at the end thereof the following new subsection: "(f) COMPANIES PRESERVING DEFENSE CAPACITY AND INCREASING CAPACITY FOR MANUFACTURING PEACETIME PRODUCTS FROM CERTAIN STRATEGIC AND CRITICAL METALS.— "(1) ELIGIBILITY REQUIREMENT.—In the case of a taxpayer
26 USC 4 4 3.
26 USC 444.
26 USC 141.
which commenced business on or prior to January 1, 1936, and since such date has been primarily engaged in manufacturing, if— " (A) The percentage of the taxpayer's purchases of raw materials which were strategic and critical metals (as defined in paragraph (3)) was 80 per centum or more for each of the taxable years beginning with or within the taxpayer's base period; " (B) The taxpayer's average monthly excess profits net income (computed in the manner provided in section 443 (e)) for the period comprising all taxable years ending with or within the first twenty-four months of its base period was 250 per centum or more of the average monthly excess profits net income (so computed) of the taxpayer for the period comprising all taxable years ending with or within the last twenty-four months of its base period; "(C) The adjusted basis of the taxpayer's total facilities (as defined in section 444(d)) as of the beginning of its base period (when added to the total facilities at such time of all corporations with which the taxpayer has the privilege under section 141 of filing a consolidated return for its first taxable year under this subchapter) did not exceed $10,000,000; and " (D) The adjusted basis of the taxpayer's total facilities (as defined in section 444(d)) on the last day of its base period was 180 per centum or more of the adjusted basis of its total facilities on the first day of its base period.
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