508
26U.*s. c'. §203.
PUBLIC LAW 183—OCT. 20, 1951
[65 STAT.
" 3 % per centum of the amount thereof not in excess of $200,000, plus " 6 % per centum of the amount thereof in excess of $200,000." (b) ADJUSTED NORMAL-TAX N E T INCOME FOR 1951.—Chapter 1 is hereby amended by inserting after section 203 the following new section: "SEC. 203A. 1951 ADJUSTED NORMAL-TAX NET INCOME. " (a) 1951 ADJUSTED NORMAL-TAX N E T INCOME.—For the purposes
Ante, p. 507.
^f sectioD 201, the term '1951 adjusted normal-tax net income' means the normal-tax net income plus eight times the amount of the adjust26 u*s c°§ 202 (c) i^^iit ^or Certain reserves provided in section 202(c) and minus the reserve interest credit, if any, provided in subsection (b) of this section. "(b) RESERVE INTEREST CREDIT.—For the purposes of subsection (a), the reserve interest credit shall be an amount determined as follows: "(1) Divide the amount of the adjusted net income (as defined in subsection (c)^ by the amount of the required interest (as defined in subsection (d)). "(2) I f the quotient obtained in paragraph (1) is 1.05 or more, the reserve interest credit shall be zero. "(3) I f the quotient obtained in paragraph (1) is 1.00 or less, the reserve interest credit shall be an amount equal to 50 per centum of the normal-tax net income. "(4) I f the quotient obtained in paragraph (1) is more than. 1.00 but less than 1.05, the reserve interest credit shall be the amount obtained by multiplying the normal-tax net income by 10 times the difference between the figures 1.05 and such quotient. " (c) ADJUSTED N E T INCOME.—For the purposes of subsection (b) (1), the term 'adjusted net income' means the net income computed without any deduction for tax-free interest minus 50 per centum of the amount of the adjustment for certain reserves provided in section 2 0 2 (c). " (d) REQUIRED INTEREST.—For the purposes of subsection (b)(1), the term 'required interest' means the total of— "(1) The sum of the amounts obtained by multiplying (A) each rate of interest assumed in computing the taxpayers life insurance reserves by (B) the means of the amounts of the taxpayer's adjusted reserves computed at that rate at the beginning and end of the taxable year, "(2) 2 per centum of the reserve for deferred dividends, and "(3) Interest paid." (c) TECHNICAL AMENDMENTS.—
2^u.t/aH33(a) (1)(H).
(1) Section 433(a)(1)(H) (relating to excess profits net income of life insurance companies) is hereby amended by changing the semicolon at the end thereof to a period and by inserting thereafter the following: " I n the case of taxable years beginning in 1951, there shall be used, in lieu of the figure referred to in clause (i) of the first sentence of this subparagraph, the figure
.87;". 26u^sc^§201(f) ^""P'"-
(2) Section 201(f) (relating to disallowance of double deductions) is hereby amended by striking out "or 203" and inserting in lieu thereof ", 203, or 203A". (d) EFFECTIVE DATE.—The amendments made by this section shall be applicable to taxable years beginning in 1951.
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