90 STAT. 1754
PUBLIC LAW 94-455—OCT. 4, 1976
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SEC. 1605. EXCISE TAX. ,....,..,.„»...i / i \ (a) IMPOSITION OF TAX.—Subtitle D (relating to miscellaneous excise taxes) is amended by a d d i n g at the end thereof the following new chapter:
"CHAPTER 44—REAL ESTATE INVESTMENT TRUSTS 26 USC 4981.
"Sec. 4981. Excise tax based on certain real estate investment trust taxable income not distributed during the taxable year. "SEC. 4981. E X a S E TAX BASED ON CERTAIN REAL ESTATE INVESTMENT TRUST TAXABLE INCOME NOT DISTRIBUTED DURING THE TAXABLE YEAR. "Effective with respect to taxable years beginning after December 31, 1979, there is hereby imposed on each real estate investment t r u s t for the taxable year a tax equal to 3 percent of the amount (if any) by which 75 percent of the real estate investment t r u s t taxable income (as defined in section 8 5 7 (b)(2), b u t determined without regard to section 857(b)(2)(B), and by excluding any net capital gain for the taxable year) exceeds the amount of the dividends paid deduction (as defined in section 561, but computed without regard to capital gains dividends as defined in section 8 5 7 (b)(3)(C) and without regard to any dividend paid after the close of the taxable year) for the taxable year. For purposes of the preceding sentence, the determination of the real estate investment t r u s t taxable income shall be made by taking into account only the amount and character of the items of income and deduction as reported by such t r u s t i n its r e t u r n for the taxable year." (b)
26 USC 275.
26 USC 857.
(1) Paragraph (6) of section 275(a) (relating to denial of deduction for certain taxes) is amended by striking out " and chapter 43." and inserting in lieu thereof ", chapter 43, and chapter 44." (2) Section 857 (relating to taxation of real estate investment trusts and their beneficiaries) is amended by a d d i n g at the end thereof the following new subsection: "(e)
26 USC 6161.
26 USC 6211.
i' 26 USC 6212.
TECHNICAL AMENDMENTS.—
CROSS R E F E R E N C E. —
"For provisions relating to excise tax based on certain real estate investment trust taxable income not distributed during the taxable year, see section 4981." (3) Section 6161(b)(1) relating to extensions of time for payment of tax), as amended by this Act, is amended by striking out "42 or 4 3 " and inserting in lieu thereof "42, 43, or 44". The second sentence of section 6161(b) is amended by striking out " o r chapter 4 3 " and inserting in lieu thereof "43, or 44". (4) Section 6211 (defining deficiency) is amended— (A) by s t r i k m g out " and 4 3 " in subsection (a) and inserting in lieu thereof "43, and 44", (B) by striking out "or 4 3 " in subsection (a) and inserting in lieu thereof "43, or 44", and (C) by striking out "or 4 3 " in subsection (b)(2) and inserting in lieu thereof "43, or 44". (5) Section 6212 (relating to notice of deficiency) is amended— (A) by striking out "or 4 3 " in subsection (a) and insert„=, i n g in lieu thereof "43, or 44",
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