Page:United States Statutes at Large Volume 40 Part 1.djvu/1107

s1XTY-F1FTH ooNGREss. sm. III. GH. 18. 1919. 1089 (c) For the taxable year 1919 and each taxable year thereafter there "*'**§'g§;¤¤'¤>'· shall be levied, collected, and paid upon the net mcome of every cor- From Government poration which derives in such year a net income of more than $§§‘f”°” dwg "‘° $10,000 from an Government contract or contracts made between April 6, 1917% Fplvember 11, 1918, both dates inclusive, a tax equal to thesumo the o owmg` : (1) Such a portion of a tax computed at the rates specified in sub- ,9f;>mP“*°“°¤ '°* division (a) as the part of the net income attributable to such Govern- ` ment contract or contracts bears to the entire net income. In computilpg lspch talx the elicess-proiitslcigdit and the war—profits credit a ca etotetaxae ears ; p?2) Such a portion of li tax computed at the rates specified in F°"°“'*°“"°’“"· subdivision (b) as the part of the net mcome not attributa le to such Government contract or contracts bears to the entire `net income. For the purpose of determining the part of the net income attribu- ,a£’ °dm gf table to such Government contract or contracts, the proper appor— ¤¤¤¤·¤¤¤- tionment and allocation of the deductions with respect to gross income derived from such Government contract or contracts and from other sources, respectively, shall*¥be determined under rules. apdhregulations prescribed by the Commissioner with the approval oteecret . (d) In anyagse where tgps full amoimt of the excess-profits credit D°°“°“°"°· is not allowed under the tbracket of subdivision (a) or (b), by reason of the fact that such credit is in excess of 20 dper centum of the invested capital, the dpgrt apt; so allowed shall be educted from the amount in the secon rac e . (e) For the urposes of the Act a ved March 21, 1918, entitled °¤ '*“'°•'” °°¤· "An Act to provide for the <;peri1)tIiIo(ii of transportation (systems sinwfnmuaélgvirgiivii while under Federal control, or the just com nsation their ,‘"“'p‘*°1' owners, and for other p ," the tax this title shall 4¤¢·P·¤¤¤- be trepted as levied by an hlct in amendmento Title of the Revenue Act 0 1917. Sec. 302. That the tax imposed by subdivision (a) of section 301 L*¤’*'°“"'*’ '°' lmshall in no case be more than 30 dper centum of the amount of the net income in excess of $3,000 an not in excess of $20,000, plus 80 per centum of the amoimt of the net income in excess of $20,000; the tax imposed by subdivision (b) of section 301 shall in no case F¤¢¤°1°·¤¤d•¤¤¢· be more than 20 per centum of the amount of the net income in excess of $3,000 and not in excess of $20,000, plus 40 ger centum of the amount of the net income in excess of $20 000; an the above ,¤3‘{;f°'“’°°“° °°°· limitations shall apply to the taxes computed under subdivisions (a) and (b) of section 301, respectively, when used in subdivision (o) , of that section. Nothing in this section shall be construed in such ,,_§,f’ "‘°'°”° °“°"°’* manner as to increase the tax imposed by section 301. Sec. 303. That if art of the net income of a corporation is derived pf,§F"§,'}“‘f,g'f,'0,‘,;{, (1) from a trade or lbusiness (or a branch of a trade or business) in wraps! ¤¤rvi¤¤ wrwhich the employment of capital is necessary, and (2) a part (consti- °°” °°' tuting not less than 30 per centum of its total net income) is derived from a separate trade or business (or a distinctly separate branch of the trade or business) which if constituting the sole trade or business would bring it within the class of "personal service corporations," then (under regulations prescribed by the Commissioner with the approval of the Secret ) the tax upon the first part of such net income shall be separaigllv computed (allowiggl in such com utation only the same proportionate part of the cr `ts authorized) in sections 311 and 312), and the tax upon the second part shall be the same percentage thereof as the tax so computed upon the first part _ is of such first part: Provided, That the tax upon such second part shall in no case be less than 20 per centum thereof, unless the tax upon the entire net income, if computed without benefit of this sec- 112460°—voL 40-rr 1——69