78 STAT. ]
PUBLIC LAW 88-272-FEB. 26, 1964
in such manner as the Secretary or his delegate shall by regulations prescribe) to an apportionment plan, such iDortion of $25,000 as is apportioned to such member in accordance with such plan. The sum of the amounts apportioned under paragraph (2) among the component members of any controlled group shall not exceed $25,000. " (b) CERTAIN SHORT TAXABLE YEARS.—If a corporation— "(1) has a short taxable year which does not include a December 31, and "(2) is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle the surtax exemption of such corporation for such taxable year shall be an amount equal to $25,000 divided by the number of corporations which are component members of such group on the last day of such taxable year. For jjurposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31.
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Post,
p. 120.
"SEC. 1562. PRIVILEGE OF GROUPS TO ELECT MULTIPLE SURTAX EXEMPTIONS. " (a) ELECTION OF MULTIPLE SURTAX EXEMITIOXS.—
"(1) IN GENERAL.—A controlled group of corporations shall (subject to the provisions of this section) have the privilege of electing to have each of its component members make its returns without regard to section 1561. Such election shall be made with '*"*°' P* *'^' respect to a specified December 31 and shall be valid only if— " (A) each corporation which is a component member of such group on such December 31, and " (B) each other corporation which is a component member of such group on any succeeding December 31 before the day on which the election is filed, consents to such election. " (2) YEARS FOR WHICH EFFECTIVE.—An election by a controlled group of corporations under paragraph (1) shall be effective with respect to the taxable year of each component member of such group which includes the specified December 31, and each taxable year of each corporation which is a component member of such group (or a successor group) on a succeeding December 31 included within such taxable year, unless the election is terminated under subsection (c). "(3) EFFECT OF ELECTION.—If an election by a controlled group of corporations under paragraph (1) is effective with respect to any taxable year of a corporation— " (A) section 1561 shall not apply to such corporation for such taxable year, but " (B) the additional tax imposed by subsection (b) shall apply to such corporation for such taxable year.
- (b) ADDITIONAL TAX IMPOSED.—
" (1) GENERAL RULE.—If an election
under subsection (a)(1) by a controlled group of corporations is effective with respect to the taxable year of a corporation, there is hereby imposed for such taxable year on the taxable income of such corporation a tax equal to 6 percent of so much of such corporation's taxable income for such taxable year as does not exceed $25,000. This paragraph shall not apply to the taxable year of a corporation if— " (A) such corporation is the only component member of such controlled group on the December 31 included in such corporation's taxable year which has taxable income for a taxable year including such December 31, or
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