PUBLIC LAW 95-600--NOV. 6, 1978
92 STAT. 2793
"(ii) employee contributions under the ESOP meet the requirements of section 401(aK4), and 26 USC 401. "(iii) the ESOP provides for allocation of all employer securities transferred to it or purchased by it (because of the requirements of paragraph (1)(B)) to the account of each participant in an amount equal to such participant's matching employee contributions for the year. "(3) CERTAIN CONTRIBUTIONS OF CASH TREATED AS CONTRIBUTIONS OF EMPLOYER SECURITIES.—For purposes of this subsection,
a transfer of cash shall be treated as a transfer of employer securities if the cash is, under the ESOP, used within 30 days to purchase employer securities. "(4) ADJUSTMENTS IF ESOP CREDIT RECAPTURED.—If any portion
of the ESOP credit is recaptured under section 47 or the ESOP credit is reduced by a final determination— "(A) the employer may reduce the amount required to be transferred to the ESOP under paragraph (1) for the current taxable year or any succeeding taxable year by an amount equal to such portion (or reduction), or "(B) notwithstanding the provisions of paragraph (5) and to the extent not taken into account under subparagraph (A), the employer may deduct an amount equal to such portion (or reduction), subject to the limitations of section 404. "(5) DISALLOWANCE OF DEDUCTION.—No deduction shall be allowed under section 162, 212, or 404 for amounts required to be transferred to an ESOP under this subsection. "(6) DEFINITIONS.—For purposes of this subsection— "(A) EMPLOYER SECURITIES.—The term 'employer securities' has the meaning given to such term by section 409A(l). 'XB) VALUE.—The term 'value' means— "(i) in the case of securities listed on a national exchange, the average of closing prices of such securities for the 20 consecutive trading days immediately preceding the due date for filing the return for the taxable year (determined with regard to extensions), or "(ii) in the case of securities not listed on a national exchange, the fair market value as determined in good faith and in accordance with regulations prescribed by the Secretary, '(o) CERTAIN CREDITS DEFINED.—For purposes of this title— "(1) REGULAR INVESTMENT CREDIT.—The term 'regular investment credit' means that portion of the credit allowable by section 38 which is attributable to the regular percentage. "(2) ENERGY INVESTMENT CREDIT.—The term 'energy investment credit' means that portion of the credit allowable by section 38 which is attributable to the energy percentage. "(3) ESOP CREDIT.—The term 'ESOP credit' means the sum of' '(A) the basic ESOP credit, and "(B) the matching ESOP credit. "(4) BASIC ESOP CREDIT.—The term 'basic ESOP credit' means that portion of the credit allowable by section 38 which is attributable to the basic ESOP percentage. "(5) MATCHING ESOP CREDIT.—The term 'matching ESOP credit' means that portion of the credit allowable by section 38 which is attributable to the matching ESOP.
39-194 O—80—pt. 3
11: QL3
26 USC 47.
26 USC 404. 26 USC 162, 212, 404.
26 USC 38.
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