PUBLIC LAWS-CH. 289-MAY 28, 1938 Corporations in bankruptcy and re- ceivership. Joint-stock land banks. 39 Stat. 360 . 12U..C.ch.7; Supp. III, ch. 7. Rental housing cor- porations. 48 Stat. 1252 . 12U.S.C.§1713; Supp. III, 1713. Exempt corpora- tions, p. 480. Tax on personal holding companies, p. 557. Improper accumula- tion of surplus, p . 483. Tax on special classes of corporations. "Special class net income" defined. Post, p. 467. Imposition of tax. Corporations with net incomes of not more than $25,000. Tax rates. (ii) 12 per centum of the dividends received allocated as such to the second division. (iii) 32 per centum of the remainder of the amount allocated to the second division, except interest allowed as a credit under section 26 (a). (e) CORPORATIONS IN BANKRUPTCY AND RECEIVERSHIP.-If a domes- tic corporation is for any portion of the taxable year in bankruptcy under the laws of the United States, or insolvent and in receivership in any court of the United States or of any State, Territory, or the Dis- trict of Columbia, then, when the tax is computed under subsection (c), the tentative tax shall be reduced by 21/2 per centum of the adjusted net income, instead of by 2/ per centum of the dividends paid credit. (f) JOINT-STOCK LAND BANKS. -In the case of a joint-stock land bank organized under the Federal Farm Loan Act, as amended, when the tax is computed under subsection (c), the tentative tax shall be reduced by 21/2 per centum of the adjusted net income, instead of by 21/ per centum of the dividends paid credit. (g) RENTAL HOUSING CORPORATIONS.- In the case of a corporation which at the close of the taxable year is regulated or restricted by the Federal Housing Administrator under section 207 (b) (2) of the National Housing Act, as amended, when the tax is computed under subsection (c), the tentative tax shall be reduced by 2/2 per centum of the adjusted net income, instead of by 21/2 per centum of the divi- dends paid credit; but only if such Administrator certifies to the Commissioner the fact that such regulation or restriction existed at the close of the taxable year. It shall be the duty of such Administra- tor promptly to make such certification to the Commissioner after the close of the taxable year of each corporation which is so regulated or restricted by him. (h) EXEMPT CORPORATIONS. -For corporations exempt from taxa- tion under this title, see section 101. (i) TAX ON PERSONAL HOLDING COMPANIES.- For surtax on per- sonal holding companies, see Title IA. (j) IMPROPER ACCUMULATION OF SURPLus.-For surtax on corpora- tions which accumulate surplus to avoid surtax on shareholders, see section 102. SEC. 14. TAX ON SPECIAL CLASSES OF CORPORATIONS. (a) SPECIAL CLASS NET INCOME. -For the purposes of this title the term "special class net income" means the adjusted net income minus the credit for dividends received provided in section 26 (b). (b) There shall be levied, collected, and paid for each taxable year upon the special class net income of the following corporations (in lieu of the tax imposed by section 13) the tax hereinafter in this sec- tion specified. (c) CORPORATIONS WITH NET INCOMES OF NOT MORE THAN $25,000.-If the net income of the corporation is not more than $25,000, and if the corporation does not come within one of the classes specified in subsection (d), (e), (f), or (g) of this section, the tax shall be as follows: Upon special class net incomes not in excess of $5,000, 12Y2 per centum. $625 upon special class net incomes of $5,000, and upon special class net incomes in excess of $5,000 and not in excess of $20,000, 14 per centum in addition of such excess. $2,725 upon special class net incomes of $20,000, and upon special class net incomes in excess of $20,000, 16 per centum in addition of such excess. 456 [52 STAT.
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