600
PUBLIC LAW 91-172-DEC. 30, 1969
78 Stat. 25. 68A Stat. 180; 72 Stat. 1680. 73 Stat. 115.
78 Stat. 120. 26 USC 1563. ^^p^^^-
[33 STAT
divided equally among the component members of such group on such December 31 unless the Secretary or his delegate prescribes regulations permitting an unequal allocation of such amounts. (b) CERTAIN SHORT TAXABLE YEARS.—If a corporation has a short taxable year which does not include a December 31 and is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle— "(1) the surtax exemption under section 11(d), " (2) the amount to be used in computing the accumulated earnings Credit under section 535(c)(2) and (3), and a ^3^ ^^le amouut to be used in computing the limitation on the small business deduction of life insurance companies under sections 804(a)(4) and 809(d) (10), of such corporation for such taxable year shall be the amount specified in subsection (a)(1), (2), or (3), as the case may be, divided by the number of corporations which are component members of such group on the last day of such taxable year. For purposes of the preceding sentence, section 1563(b) shall be applied as if such last day were subgtituted for December 31." (2) Section 1562 (relating to privilege of groups to elect multiple surtax exemptions) is repealed. (3) The table of sections for part II of subchapter B of chapter 6 is amended by striking out the items relating to sections 1561 and 1562 and inserting in lieu thereof the following: "Sec. 1561. Limitations on certain multiple tax benefits in the case of certain controlled corporations." (b)
TRANSITIONAL
RULES
FOR
CONTROLLED
GROUPS
OF
CORPORA-
TIONS.—
78 Stat. 116.
^ ^ Part II of subchapter B of chapter 6 (relating to certain controlled corporations) is amended by adding at the end thereof the following new section: "SEC. 1564. TRANSITIONAL RULES IN THE CASE OF CERTAIN CONTROLLED CORPORATIONS. " (a)
LIMITATION ON ADDITIONAL B E N E F I T S. —
"(1) IN GENERAL.—With respect to any December 31 after 1969 and before 1975, the amount of— " (A) each additional $25,000 surtax exemption under section 1562 in excess of the first such exemption, " (B) each additional $100,000 amount under section 535(c) (2) and (3) in excess of the first such amount, and " (C) each additional $25,000 limitation on the small business deduction of life insurance companies under sections 804(a)(4) and 809(d) (10) in excess of the first such limitation, otherwise allowed to the component members of a controlled group of corporations for their taxable years which include such December 31 shall be reduced to the amount set forth in the following schedule: k^^iyr-u
••'cM\ v !; i -
?H.«i«'r"Taxable years including— Dec. 31, 1970 Dec. 31, 1971 Dec. 31, 1972 Dec 31, 1973 Dec 31, 1974
>:;•:.• r^W'-'^J':-^-?--., ^ Surtax exemption 520,833 16,667 12,500 8,333 4,167
Amount under sec. 535(c)(2) and (3)
Small business deduclmn limitation
J83,333 66,667 50,000 33,333 16,667
J?5'Hi ^}'fl 12.500 J-fS
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