66 STAT.]
PUBLIC LAW 183—OCT. 20, 1951
555
and ending with the close of the first taxable year beginning after the consolidation, such consolidation resulted in substantial reductions in the amounts which would otherwise have been paid or incurred as expenses in the conduct of the operations described in paragraph (1); and either "(3) The total deductions of the taxpayer under section 23, computed without regard to section 23(s) and (bb), for the first stft.S!' ^^' ^ ^' taxable year beginning after such consolidation were not in excess 26 U.S.C. § 23. of 80 per centum of the average of such deductions for the two taxable years of the taxpayer next preceding the taxable year in which such operations were consolidated; or "(4) The excess profits net income of the taxpayer, computed as provided in section 433(b), for the first taxable year of the 26U*.*8'. c.*§'433(b). taxpayer beginning after such consolidation was 125 per centum ^«<«. PP- 544, 549. or more of the amount determined under section 435(d)(4); ^ u^l; c*§'435 (d). the taxpayer's average base period net income determined under this subsection shall be an amount computed under section 435(d) plus an amount equal to the excess of the average of the amounts paid or incurred as expenses in the conduct of the operations described in paragraph (1) during the two taxable years of the taxpayer next preceding the taxable year in which such operations were consolidated over such amounts paid or incurred during the first taxable year of the taxpayer beginning after such consolidation. In determining such excess amount proper adjustment shall be made for increase in labor costs and newsprint following such consolidation. Proper adjustment shall also be made for any case in which a taxable year referred to in this subsection is a period of less than twelve months. This subsection shall not be applicable to any taxable year of the taxpayer unless the consolidation described in paragraph (1) was continued throughout such taxable year." SEC. 519. TELEVISION BROADCASTING COMPANIES. Section 459, as added by sections 516 to 518 of this Act, is hereby amended by adding after subsection (c) thereof the following new subsections: "(d)
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TELEVISION BROADCASTING COMPANIES.—
"(1) IN GENERAL.—In the case of a taxpayer engaged in the business of television broadcasting throughout a period beginning before January 1, 1951, and ending with the close of the taxable year, the taxpayer's average base period net income determined under this subsection shall be the amount computed under paragraph (2) or (3), whichever is applicable. "(2)
I F ENGAGED I N TELEVISION BROADCASTING AT CLOSE OF BASE
PERIOD,—If the taxpayer was engaged in the business of television broadcasting at the close of its base period, the average base period net income computed under this paragraph shall be computed as follows: " (A) If the taxpayer was engaged during its base period in any business or businesses other than television broadcasting, by computing the average base period net income under section 435(d) for such other business or businesses (determined without regard to income, deductions, losses, or other items attributable to the television broadcasting business). " (B) By multiplying such part of its total assets (as defined in section 442(f)), for the last day of its base period, as was attributable to the television broadcasting business by—
26u^s" C^HSS(d)
^" P- ^5^-
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