1672
PUBLIC LAW 86-866-8EPT. 2, 1968
[72 S T A T.
" (3) OTHER DEFINITIONS.—For purposes of this subsection: " (A) DEPRECIATION.—The term 'depreciation' means exhaustion, wear and tear, and obsolescence. " (B) ADJUSTMENT DATE.—In the case of any kind or class of property, the term 'adjustment date' means whichever of the following is the later: " (i) the first day of the taxpayer's first taxable year beginning after December 31, 1955, or "(ii) the first day of the first taxable year in which the taxpayer uses a method of computing the allowance of deductions for depreciation other than the retirement method." (b) EFFECTIVE D A T E. —
(1) IN GENERAL.—The amendments made by subsection (a) shall apply only to taxable years beginning after December 31, 1955. (2) EXCEPTION.-The amendments made by subsection (a) shall not apply with respect to any taxpayer if, before the date of the enactment of this Act, there has been a determination, for any taxable year, of the adjusted basis of retirement-straight line property of the taxpayer of the type described in section 372(b) 26 USC 372. of the Internal Revenue Code of 1954 (as added by subsection (a)) by the Tax Court of the United States, or by any other court of competent jurisdiction, in any proceeding in which the decision of the court became final after December 31, 1955, and which established the right of the taxpayer to use the straight line depreciation method of computing the annual depreciation allowance with respect to such property for Federal tax purposes for any year. SEC. 96. EXTENSION OF TIME FOR FILING CLAIMS FOR REFUNDS OF OVERPAYMENTS OF INCOME TAX BASED UPON EDUCATION EXPENSES PAID OR INCURRED IN 1954. If refund or credit of any overpayment of income tax— (1) for any taxable year beginning after December 31, 1953, and ending after August 16, 1954, and (2) resulting from the application of section 162 of the In26 USC 162. ternal Revenue Code of 1954 (relating to trade or business expenses) insofar as such section relates to expenses described in Income Tax Regulations § 1.162-5 (relating to expenses for education) as promulgated by Treasury Decision 6291 (23 Federal Register 2244), is prevented on the date of the enactment of this Act, or within 60 days after such date, by the operation of any law or rule of law (other than 26 USC 7121- chapter 74 of the Internal Revenue Code of 1954, relating to closing 7123. agreements and compromises), refund or credit of such overpayment may, nevertheless, be made or allowed if claim therefor has been filed on or before such date or isfilledwithin 60 days after such date. SEC. 97. DEDUCTIBILITY OF ACCRUED VACATION PAY. 26 USC 162. Deduction under section 162 of the Internal Revenue Code of 1954 for accrued vacation pay, computed in accordance with the method of accounting consistently followed by the taxpayer in arriving at such deduction, shall not be denied for any taxable year ending before January 1, 1961, solely by reason of the fact that (1) the liability for the vacation pay to a specific person has not been clearly established, or (2) the amount of the liability to each individual is not capable of computation with reasonable accuracy, if at the time of the accrual the employee in respect of whom the vacation pay is accrued has performed the qualifying service necessary under a plan or policy (communicated to the employee before the beginning of the vacation year) which provides for vacations with pay to qualified employees.
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