Page:United States Statutes at Large Volume 101 Part 2.djvu/1206

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101 STAT. 1330-412
101 STAT. 1330-412
PUBLIC LAW 100-000—MMMM. DD, 1987

101 STAT. 1330-412 ^ I" I' '"' ' At-.n;;">ni?,5 ^v 4 '"^ " ' ' I' ^;^ "^' * t 26 USC 304 note.

PUBLIC LAW 100-203—DEC. 22, 1987 "(i) the adjusted basis of any intragroup stock, and "(ii) the earnings and profits of any member of such group, to the extent necessary to carry out the purposes of this section. "(B) DEFINITIONS.—For purposes of this paragraph— "(i) AFFILIATED GROUP.—The term 'affiliated group' has the meaning given such term by section 1504(a). "(ii) INTRAGROUP STOCK.—The term 'intragroup stock' means any stock which— "(I) is in a corporation which is a member of an affiliated group, and "(II) is held by another member of such group."

(d) EFFECTIVE D A T E S. —

(1) IN GENERAL.—The amendments made by this section shall apply to distributions or transfers after December 15, 1987. (2) EXCEPTIONS.—

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Contracts.

Contracts.

(A) DISTRIBUTIONS.—The amendments made by this section shall not apply to any distribution after December 15, 1987, and before January 1, 1993, if— / (i) 80 percent or more of the stock of the distributing corporation was acquired by the distributee before December 15, 1987, or "^ (ii) 80 percent or more of the stock of the distributing '^^ corporation was acquired by the distributee before • January 1, 1989, pursuant to a binding written contract or tender offer in effect on December 15, 1987. For purposes of the preceding sentence, stock described in -h section 1504(a)(4) of the Internal Revenue Code of 1986 shall \ ^'-i" not be taken into account. (B) SECTION 304 TRANSFERS.—The amendment made by . oi" • subsection (c) shall not apply to any transfer after Decem' i ber 15, 1987, and before January 1, 1993, if such transfer is— (i) between corporations which are members of the

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game affiliated group on December 15, 1987, or " ^ (ii) between corporations which become members of ^ the same affiliated group before January 1, 1989, pursuant to a binding written contract or tender offer ~ in effect on December 15, 1987. •iJt. (C) DISTRIBUTIONS COVERED BY PRIOR TRANSITION RULE.— '^ " The amendments made by this section shall not apply to any distribution to which the amendments made by subtitle D of title VI of the Tax Reform Act of 1986 do not apply. SEC. 10224. BENEFITS OF GRADUATED CORPORATE RATES NOT ALLOWED r TO PERSONAL SERVICE CORPORATIONS.

(a) GENERAL RULE.—Subsection (b) of section 11 (relating to corporate tax rates) is amended to read as follows: "(b) AMOUNT OF TAX.—

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"(1) IN GENERAL.—The amount of the tax imposed by subsection (a) shall be the sum of— "(A) 15 percent of so much of the taxable income as does not exceed $50,000, "(B) 25 percent of so much of the taxable income as exceeds $50,000 but does not exceed $75,000, and ^