92 STAT. 2868 26 USC 57.
Ante, p. 2867. 26 USC 170.
PUBLIC LAW 95-600—NOV. 6, 1978 (1) Subparagraph (A) of section 57(a)(9) (relating to treatment of capital gains for purposes of the minimum tax) is amended to read as follows: "(A) INDIVIDUALS.—In the case of a taxpayer other than a corporation, an amount equal to the net capital gain deduction for the taxable year determined under section 1202." (2) Subparagraph (B) of section 170(e)(1) (relating to charitable deduction for contributions of capital gain property) is amended by striking out "50 percent" and inserting in lieu thereof "40 percent", (c) EFPECTIVE DATES;-^
26 USC 1202 note. 26 USC 170 note.
(1) The amendments made by subsections (a) and (b)(1) shall apply to taxable years ending after October 31, 1978. (2) The amendment made by subsection (b)(2) shall apply to contributions made after October 31, 1978. SEC. 403. REDUCTION OF ALTERNATIVE CAPITAL GAINS TAX FOR CORPORATIONS.
26 USC 1201.
.
(a) GENERAL RULE.—Paragraph (2) of section 1201(a) (relating to alternative tax for corporations) is amended by striking out "30 percent" and inserting in lieu thereof "28 percent'. (b) TRANSITIONAL RULE.—Section 1201 is amended by adding at the end thereof the following new subsection: "(c) TAXABLE YEARS WHICH INCLUDE JANUARY 1, 1979.—If for any taxable year beginning before January 1, 1979, and ending after December 31, 1978, a corporation has a net capital gain, then subsection (a) shall be applied by substituting for the language of paragraph (2) the following: "(2)(A) a tax of 28 percent of the lesser of— ' '(i) the net capital gain for the taxable year, or "(ii) the net capital gain taking into account only sales and exchanges after December 31, 1978, plus "(B) a tax of 30 percent of the excess of— "(i) the net capital gains for the taxable year, over "(ii) the amount of net capital gain taken into account under subparagraph (A)." (c) CONFORMING AMENDMENTS.—
26 USC 170.
(1) Subparagraph (B) of section 170(e)(1) (relating to charitable deduction for contributions of capital gain property) is amended by striking out "62y2 percent" and inserting in lieu thereof "2%6".
26 USC 528. Supra. 26 USC 857.
26 USC 904.
(2) Subparagraph (B) of section 528(b)(2) (relating to tax imposed on certain homeowners associations) is amended to read as follows: "(B) an amount determined as provided in section 1201(a) on such gain." (3) Clause (ii) of section 857(b)(3)(A) (relating to tax on real estate investment trusts) is amended by striking out "a tax of 30 percent of" and inserting in lieu thereof "a tax determined at the rate provided in section 1201(a) on". (4) Subsection (b) of section 904 (relating to taxable income for computing the limitation on foreign tax credits) is amended— (A) by striking out "three-eighths" wherever it appears and inserting in lieu thereof "the rate differential portion"; .>. and (B) by striking the period at the end of subparagraph (D) of paragraph (3), inserting in lieu thereof a comma, and insert-
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