83 STAT.
]
PUBLIC LAW 91-172-DEC. 30, 1969
603
(2) Section 1563(c)(2)(B) isamended— (A) by striking out "a person who is an individual, estate, or trust (referred to in this paragraph as 'common owner') owns" and inserting in lieu thereof "5 or fewer persons who are individuals, estates, or trusts (referred to in this subparagraph as 'common owners') own"; (B) by striking out "or" at the end of clause (i); (C) by striking out in clause (ii) "such common owner", "the common owner", and "stock." and inserting in lieu thereof "any of such common owners", "any of the common owners", and "stock, or", respectively; and (D) by adding after clause (ii) the following new clause: "(iii) stock in such corporation owned (within the meaning of subsection (d)(2)) by an organization to which section 501 (relating to certain educational and charitable organizations which are exempt from tax) applies and which is controlled directly or indirectly by such corporation, by an individual, estate, or trust that is a principal stockholder (within the meaning of subparagraph (A) ( i i)) of such corporation, by an officer of such corporation, or by any combination thereof."
78 Stat. 120. ^^ "^^ ^^""
•->. ^SA Stat. lea.
(e) INVESTMENT CREDIT.—
(1) Section 46(a)(5) is amended to read as follows: "(5) CONTROLLED GROUPS.—In the case of a controlled group, the $25,000 amount specified under paragraph (2) shall be reduced for each component member of such group by apportioning $25,000 among the component members of such group in such manner as the Secretary or his delegate shall by regulations prescribe. For purposes of the preceding sentence, the term 'controlled group' has the meaning assigned to such term by section 1563(a)." (2) Section 48(c)(2)(C) is amended to read as follows: " (C) CONTROLLED GROUPS.—In the case of a controlled group, the $50,000 amount specified under subparagraph (A) shall be reduced for each component member of the group by apportioning $50,000 among the component members of such group in accordance with their respective amounts of used section 38 property which may be taken into account." (3) Section 48(c)(3)(C) is amended to read as follows: " (C) CONTROLLED GROUP.—The term 'controlled group' has the meaning assigned to such term by section 1563(a), except that the phrase 'more than 50 p e r c e n t ^ a l l be substituted for the phrase 'at least 80 percent' each place it appears in section 1563(a)(1)." (4) Section 48(d)(2) is amended to read as follows: " (2) if such property is leased by a corporation which is a component member of a controlled group (within the meaning of section 4 6 (a)(5)) to another corporation which is a component member of the same controlled group, the basis of such property to the lessor." (f)
ADDITIONAL FIRST-YEAR
DEPRECIATION.—Section
179(d)
'^^ ^*^*- ^^3.
.
,, .- . ' '
Supra.
is
amended— (1) by amending paragraph (2)(B) to read as follows: " (B) the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and"; and
72 Stat. 1679.
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