Page:United States Statutes at Large Volume 78.djvu/88

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PUBLIC LAW 88-000—MMMM. DD, 1964

46

PUBLIC LAW 88-272-FEB. 26, 1964

26 us^c f?^^' 72 Stat. 1631, 26 USC 556.

[78 STAT.

and the charitable contributions described in paragraph (1)(A) payment of which was made in taxable years (beginning after December 31, 1963) before the contribution year which are treated under this subparagraph as having been paid in such succeeding taxable year; or "(ii) in the case of the first succeeding taxable year, the amount of such excess, and in the case of the second, third, fourth, or fifth succeeding taxable year, the portion of such excess not treated under this subparagraph as a charitable contribution described in paragraph (1)(A) paid in any taxable year intervening between the contribution year and such succeeding taxable year. " (B) I n applying subparagraph (A), the excess determined under subparagraph (A) for the contribution year shall be reduced to the extent that such excess reduces taxable income (as computed for purposes of the second sentence of section 172(b)(2)) and increases the net operating loss deduction for a taxaple year sucM-eedi iig the contribution year." (2) TECHNICAL AM?:XDMKNT«.—Sections.545(b)(2) (i"elating <() deductions for charitable contributions by personal holding companies) and o56(b)(2) (relating to deductions for charitable contributions by foreign personal holding companies) are each amended by striking out "section 1 7 0 (b)(2) " and inserting in lieu thereof section 170(b)(2) and (5)". (d) 5-YEAR CAKRYOVER OF CERTAIN' CHARrrAJiiJ*: CoNnnBunoxs MAHE BY CoRPOR-VriONS.—

68Astat. 58. ^^ '

26 USC 381.

(1) j ^ GENERAL.—Section 170(b)(2) (relating to limitation on amount of deduction for charitable contributions by corporations) is amended by striking out the sentence following subparagraph (D) and inserting in lieu thereof the following: "Any contribution made by a corporation in a taxable year (hereinafter in this sentence referred to as the 'contribution year') in excess of the amount deductible for such year under the preceding sentence shall be deductible for each of the 5 succeeding taxable years in order of time, but only to the extent of the lesser of the two following amounts: (i) the excess of the maximum amount deductible for such succeeding taxable year under the preceding sentence over the sum of the contributions made in such year plus the aggregate of the excess contributions which were made in taxable years before the (contribution year and which are deductible under this sentence for such succeeding taxable year; or (ii) in the case of the first succeeding taxable year, the amount of such excess contribution, and in the case of the second, third, fourth, or fifth succeeding taxable year, the portion of such excess contribution not deductible under this sentence for any taxable year intervening between <he conti-ibution year and such succeeding taxable year." (2.) CARRYOVERS IN CERTAIN CORPORATK ACQI isrnoNS.—Paragraph (19) of section 381(c) (relathig to items of distriputor or transferor corporation) is amended to read as follows: "(19) CHARITABLE CONTRIHUTIONS I N EXCESS OF PRIOR YEARS*

LIMITATIONS.—Contributions made in the taxable year ending on the date of distribution or transfer and the 4- prior taxable years by the distributor or transferor corporation in excess of the amount deductible nnder section 170(b^ (2) for such taxable years shall be dednctible by the acquiring corporation for its taxable years which begin after the date of distribution or transfer, subject to the limitations imposed in section l7f> (b)(2). Tn applying the pi-eceding sentence, each taxable year