55 STAT.] 77TH CONG. , 1ST SESS.-CH. 464-OCT. 30, 1941 [CHAPTER 464] JOINT RESOLUTION To amend section 124 of the Internal Revenue Code by extending the time for applications, and changing the procedure, for certification of national- defense facilities and contracts for amortization purposes. 757 October 30, 1941 [H.J. Res. 2351 [Public Law 285] Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That section 124 (f) (1) of Internal Revenue the Internal Revenue Code, as amended, is amended to read as 54 stat. 1001; ante, p. 4. follows: 26v. S.. §124 "(1) There shall be included only so much of the amount otherwise (c(lrtiication of constituting such adjusted basis as is properly attributable to such emergency facilities. construction, reconstruction, erection, installation, or acquisition after June 10, 1940, as either the Secretary of War or the Secretary of the Navy has certified as necessary in the interest of national defense during the emergency period, which certification shall be under such regulations as may be prescribed from time to time by the Secretary of War and the Secretary of the Navy, with the approval of the President." SEC. 2. Section 124 (f) (3) of the Internal Revenue Code, as Effetiveness of cer- amended, is amended by striking out "sixty days" and inserting in lieu Ante, p. 4 . thereof "six months" and by striking out "February 6, 1941" and (3)26 .s.C. 4(f) inserting in lieu thereof "December 1, 1941". SEC. 3 . Section 124 (i) of the Internal Revenue Code, as amended, 54 Stat. 1002; ant, is amended to read as follows: . Su. Si. 1 i 24 (a). "PRoTEcTION OF THE UNrrED STATES. - If the taxpayer has been or congress. will be reimbursed by the United States for all or a part of the cost bredtaxJpe r reim- of any emergency facility pursuant to any contract (in excess of $15,000 in amount) with the United States, made on its behalf after December 31, 1939, by the War Department, the Navy Department, the United States Maritime Commission, or such other department or agency as the President may designate, either- (1) directly, by a provision therein dealing expressly with such reimbursement, or "(2) indirectly, because the price paid by the United States (insofar as return of cost of the facility is used by the United States as a factor in the fixing of such price) is recognized by the contract as including a return of cost greater than the normal exhaustion, wear, and tear: Provided, That no such greater Prov. return of cost shall be deemed to have been used as a factor in the fixing of such price when the negotiating or contracting officer reports that after careful consideration he is satisfied that such greater return was not included in the price, no amortization deduction with respect to such emergency facility Nonallowasoe of shall be allowed for any month after the end of the month in which tion. such contract is made unless either the Secretary of War or the Secretary of the Navy certifies to the Commissioner that the interest of the United States is adequately protected with reference to the future use and disposition of such emergency facility. A certificate of like effect may also be issued with respect to emergency facilities for which the taxpayer has not been or will not be so reimbursed. A Reimbursement not tapyrprovided for under certificate by either the Secretary of War or the Secretary of the ontract. Navy made to the Commissioner, to the effect that under any such contract. reimbursement for all or a part of the cost of any emergency facility is not provided for within the meaning of clause (1) or clause (2), shall be conclusive for the purposes of this subsection. Except in Filing of applia- cases of applications therefor filed before December 1, 1941, the cer- tificates provided for under this subsection shall have no effect unless an application therefor is filed either before the expiration of six
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