860
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73 Stat. 119 26 USC 805. 75 Stat. 801. 26 USC 403.
26 USC 613.
Ante, p. 99.
PUBLIC LAW 88-571-SEPT. 2, 1%4
[78 STAT.
not less than 50 percent of the value of all classes of stock, of the corporation the assets of which have been transferred to the controlled corporation in the section 368(a)(1)(A) or (C) reorganization. Paragraph (3) shall not apply to that portion of the distribution of stock of the controlled corporation equal to the increase in the aggregate adjusted basis of such stock after December 31, 1957, except to the extent such increase results from an acquisition of stock in the controlled corporation in a transaction described in subparagraph (B) of such paragraph. If any part of the increase in the aggregate adjusted basis of stock of the controlled corporation after December 31, 1957, results from the transfer (other than as part of a transaction described in paragraph (3)(B)) by the distributing corporation to the controlled corporation of property which has a fair market value in excess of its adjusted basis at the time of the transfer, paragraph (3) also shall not apply to that portion of the distribution equal to such excess." (b) The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1963. SEC. 5. (a) Section 805(d)(1) of the Internal Revenue Code of 1954 (relating to pension plan reserves) is amended by inserting before the period at the end of s u b p a r a ^ a p h (D) the following: ", or purchased to provide retirement annuities for employees described in section 403(b)(1)(A) (ii) by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing". (b) The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1963. SEC. 6. (a) Section 613(b) of the Internal Revenue Code of 1954 (relating to percentage depletion rates) is amended— (1) by striking out "beryl," in paragraphs (2)(B) and (6); and (2) by inserting "beryllium," after "antimony," in paragraph (b) The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1963. SEC. 7. (a) Section 1212(a) of the Internal Revenue Code of 1954 (relating to capital loss carryovers of corporations) is amended to read as follows: "(a)
CORPORATIONS.—
"(1) IN GENERAL.—If for any taxable year a corporation has a net capital loss, the amount thereof shall be a short-term capital loss— " (A) in each of the 5 succeeding taxable years, or " (B) to the extent such loss is attributable to a foreign expropriation capital loss, in each of the 10 succeeding taxable years, to the extent such amount exceeds the total of any net capital gains (determined without regard to this paragraph) of any taxable years intervening between the taxable year in which the net capital loss arose and such succeeding taxable year. "(2)
DEFINITIONS AND SPECIAL RULES.— " (A) FOREIGN EXPROPRIATION CAPITAL LOSS DEFINED.—For
purposes of this subsection, the term 'foreign expropriation capital loss' means, for any taxable year, the sum of the losses taken into account in computing the net capital loss for such year which are— "(i) losses sustained directly by reason of the expropriation, intervention, seizure, or similar taking of prop-
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