83 STAT. ]
PUBLIC LAW 91-172-DEC. 30, 1%9
599
to the extent that such amount exceeds the total of any undistributed net income for any taxable years intervening between the taxable year with respect of which the accumulation distribution is determined and such preceding taxable year. (C) I n the case of a trust which was in existence on December 31, 1969, section 669 of the Internal Revenue Code of 1954, as amended by this section, shall not apply to capital gain distributions made to a beneficiary before January 1, 1972. If the beneficiary receives capital gain distributions from more than one such trust before January 1, 1972, the preceding sentence shall apply to capital gain distributions from only one of such trusts, such one to be designated by the taxpayer in accordance with regulations prescribed by • the Secretary or his delegate. For purposes of the preceding ' ' ' ' ""'• sentence, capital gain distributions received from a trust qualifying under section 2056(b)(5) of the Internal Revenue Code of 1954 by a surviving spouse (who is the beneficiary 26'us*c*2ol6^' of only one such trust) shall be disregarded. SEC. 332. TRUST INCOME FOR BENEFIT OF A SPOUSE. P; .s.o^^ (a) INCOME FOR BENEFIT OF GRANTOR'S SPOUSE.—
(1) Paragraphs (1), (2), and (3) of section 677(a) (relating to income for benefit of grantor) are amended by striking out "the oTantor" each place it appears and inserting in lieu thereof "the grantor or the grantor's spouse". (2) Section 677(b) is amended by striking out "beneficiary and inserting in lieu thereof "beneficiary (other than the grantor's spouse)". (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply in respect of property transferred in trust after October 9, 1969.
TITLE IV—ADJUSTMENTS PRIMARILY AFFECTING CORPORATIONS Subtitle A—Multiple Corporations SEC. 401. MULTIPLE CORPORATIONS. (a) I N
GENERAL.—
78 Stat. 116. (1) Section 1561 (relating to surtax exemptions in case of certain controlled corporations) is amended to read as follows: •SEC. 1561. LIMITATIONS ON CERTAIN MULTIPLE TAX BENEFITS IN THE CASE OF CERTAIN CONTROLLED CORPORATIONS. "(a) GENERAL RULE.—The component members of a controlled group of corporations on a December 31 shall, for their taxable years which include such December 31, be limited for purposes of this subtitle to;,. "(1) one $25,000 surtax exemption under section 11(d), ' ^^ ^'^'- ^^^
- '(2) one $100,000 amount for purposes of computing the accumulated earnings credit under section 535(c)(2) and (3), and 72^8^3^*1680^°'
" (3) one $25,000 amount for purposes of computing the limitation on the small business deduction of life insurance companies 73 Stat, 115. under sections 804(a)(4) and 809(d) (10). The amount specified in paragraph (1) shall be divided equally i^mong the component members of such group on such December 31 unless all of such component members consent (at such time and in such manner as the Secretary or his delegate shall by regulations prescribe) fo an apportionment plan providing for an unequal allocation of such amount. The amounts specified in paragraphs (2) and (3) shall be
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