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PUBLIC LAW 85-165-AUG. 26, 1957
[71 S T A T.
SEC. 2. The table of sections for such part I is amended by striking out "Sec, 1305. Rules applicable to this part". and by inserting in lieu thereof "Sec. 1305. Breach of contract damages. "Sec. 1306. Rules applicable to this part." Effective date. ^^.c. 3. The amendments made by the first section and section 2 of this Act shall apply to taxable years ending after December 31, 1954, but only as to amounts received or accrued after such date as the result of awards made after such date. 68A Stat. 52. j ^, SEC. 4. Section 168 of the Internal Revenue Code of 1954 (relating to amortization of emergency facilities) is amended— 68Astat. 54. (a) by Striking out "There" iu subsection (6)(1) and inserting in lieu thereof the following: "CERTIFICATIONS ON OR BEFORE AUGUST 22, 193 7.—In the case of a certificate made on or before August 22, 1957, there"; 68A Stat. 54. ^^ y^y Striking out subsection (e)(2) and inserting in lieu thereof the following: "(2) CERTIFICATIONS AFTER AUGUST 22, 1957.—In the case of a certificate made after August 22, 1957, there shall be included only so much of the amount of the adjusted basis of such facility (computed without regard to this section) as is properly attributable to such construction, reconstruction, erection, installation, or acquisition after December 31, 1949, as the certifying authority designated by the President by Executive order, has certified is to be used— " (A) to produce new or specialized defense items or components of new or specialized defense items (as defined in paragraph (4)) during the emergency period, or " (B) to provide research, developmental, or experimental services during the emergency period for the Department of Defense (or one of the component departments of such Department), or for the Atomic Energy Commission, as a part of the national defense program, and only such portion of such amount as such authority has certified is attributable to the national defense program. Such certification shall be under such regulations as may be prescribed from time to time by such certifying authority with the approval of the President. An application for a certificate must oe filed at such time and in such manner as may be prescribed by such certifying authority under such regulations but in no event shall such certificate have any effect unless an application therefor is filed before the expiration of 6 months after the beginning of such construction, reconstruction, erection, or installation or the date of such acquisition. For purposes of the preceding sentence, an application which was timely filed under this subsection on or before August 22, 1957, and which was pending on such date, shall be considered to be an application timely filed under this paragraph. "(3) SEPARATE FACILITIES; SPECIAL RULE.—After the completion or acquisition of any emergency facility with respect to which a certificate under paragraph (1) or (2) has been made, any expenditure (attributable to such facility and to the period after such completion or acquisition) which does not represent construction, reconstruction, erection, installation, or acquisition included in such certificate, but with respect to which a separate certificate is made under paragraph (1) or (2), shall not be applied in adjustment of the basis of such facility, but a separate basis shall be computed therefor pursuant to paragraph (1) or
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