PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1607
except that, with respect to a corporation to which section 1561 (relating to certain m u h i p l e tax benefits in the case of certain controlled corporations) applies for the taxable year, the surtax exemption for the taxable year is the amount determined under such section." (b) M U T U A L INSURANCE C O M P A N I E S. —
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(1) I x GENERAL.—Section 821(a)(1) (relating to mutual insurance companies) is amended to read as follows: " (1) XoRMAL T A X. — A normal tax equal to— " (A) in the case of a taxable year ending after December 31, 1977, 22 percent of the mutual insurance company taxable income, or 44 percent of the amount by which such taxable income exceeds $6,000, whichever is lesser, or " (B) in the case of a taxable year ending after December 31, 1974, and before January 1, 1978— " (i) 20 percent of so much of the mutual insurance company taxable income as does not exceed $25,000, plus " ( i i) 22 percent of so much of the mutual insurance company taxable income as exceeds $25,000, or 44 percent of the amount by which such taxable income exceeds $6,000, whichever is lesser; plus". (2)
SMALL COMPANIES.—Section 8 2 1 (c)(1)(A)
(relating
26 USC 821.
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to
alternative tax for certain small companies) is amended to read as follows: " (A) NORMAL TAX.—A normal tax equal to —
" (i) in the case of a taxable year ending after December 31, 1977, 22 percent of the taxable investment income, or 44 percent of the amount by which such taxable income exceeds $3,000, whichever is lesser, or " ( i i) in the case of a taxable year ending after December 31, 1974, and before January 1, 1978, 20 percent of so much of the taxable investment income as does not exceed $25,000, plus 22 percent of so much of the taxable investment income as exceeds $25,000, or 44 percent of the amount by which such taxable income exceeds $3,000, whichever is lesser; plus".
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(c) CONFORMING AMENDMENTS. —
(1) Section 1561(a) (relating to certain multiple tax benefits in the case of certain controlled corporations) is amended by adding a t the end thereof the following ncAv sentence: " I n applying section 11(b)(2), the first $25,000 of taxable income and the second $25,000 of taxable income shall each be allocated among the component members of a controlled group of corporations in the same manner as the surtax exemption is allocated." (2) Subsection (f) of section 21 (relating to change in surtax exemption treated as a change in a rate of tax) is amended by striking out " T a x Reduction Act of 1975" and all that follows and inserting in lieu thereof the following: " T a x Reduction Act of 1975 in the surtax exemption and any change under section 11(d) in the surtax exemption shall be treated as a change in a rate of tax." (3) Section 6154 (relating to installment payments of estimated income tax by corporations) is amended by striking out subsection (h). (d) EFFECTIVE DATES.—The amendment made by subsection (a) shall take effect on December 23, 1975. The amendments made by subsection (b) shall apply to taxable years ending after December 31,
26 USC 1561.
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26 USC 21.
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26 USC 1 note, 26 USC 6154. 26 USC 11 note,
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