65 STAT.]
PUBLIC LAW 183—OCT. 20, 1951
557
" (B) If any part of the total assets referred to in paragraph (2)(B) or paragraph (3)(A), whichever is applicable, were acquired, directly or indirectly, through the use of assets attributable at any time during the base period to a business of the taxpayer other than television broadcasting, the amount determined under paragraph (2)(A) shall be properly adjusted by eliminating from the excess profits net income (computed for the purpose of paragraph (2)(A)) for each month prior to such acquisition such portion thereof as is attributable to the assets used, directly or indirectly, for such acquisition. For the purpose of this subparagraph, the excess profits net income for any month shall be attributed to such assets on the basis of the ratio, as of the beginning of the day of the acquisition, of such assets to total assets (as defined in section 442(f)) determined without regard to ^«<«. P-SSIassets attributable to the television broadcasting business. " (C) The Secretary shall by regulations prescribe rules for the application of this subsection, including rules for the computation of the taxpayer's net capital addition or reduction. "(6) APPLICATION OF PART II.—The Secretary shall prescribe regulations for the application of Part II for the purpose of this ^ |*^*g ^^^-j ^gj ^ ^ subsection in the case of an acquiring corporation or a component seg. corporation in a transaction described in section 461(a) which 26 u.^s'. C^HGI (a;. occurred prior to January 1, 1951. "(e) BASIS OF ASSETS.—For the purposes of this section, any reference to the adjusted basis of property or to the basis (unadjusted) of property means the adjusted basis or the basis (unadjusted), as the case may be, for determining gain upon sale or exchange." SEC. 520. INCREASE IN CAPACITY FOR PRODUCTION OR OPERATION. Section 444(f) (relating to increase in capacity for production or operation) is hereby amended to read as follows: "(f)
26u*^sc.^'444(f).
RULES FOR APPLICATION OF SECTION.—
"(1) The benefits of this section shall not be allowed unless the taxpayer makes application therefor in accordance with section 447 /p\
- • \^)'
.
»
" (2) If, during its first taxable year ending after June 30, 1950, the taxpayer completed construction of (including the installation of the machinery or equipment for use in) a factory building or other manufacturing establishment, such factory building or other manufacturing establishment and such machinery or equipment shall, for the purpose of determining whether there is an increase in capacity under the provisions of subsection (b), be considered to have been added to its total facilities on the last day of its base period if— " (A) the taxpayer, prior to the end of its base period, had completed construction work representing more than 40 per centum of the total cost of construction of such factory building or other manufacturing establishment, and " (B) the completion of such factory building or other manufacturing establishment was in pursuance of a plan to which the taxpayer was committed prior to the end of its base period. This paragraph shall not apply in determining the amount of the taxpayer's total assets for the purpose of subsection (c)." SEC. 521. EXCESS PROFITS CREDIT BASED ON INCOME IN CONNECTION WITH CERTAIN TAXABLE ACQUISITIONS. (a) GENERAL RULE.—Subchapter D (relating to the excess profits tax) of chapter 1 is hereby amended by inserting immediately following section 472 the following new part:
64 Stat. n74. 26 U.S.C.§ 447(e).
^ ^u^*s!^c; § 472.
�
