90 STAT. 1790 '* ' ' '
PUBLIC LAW 94-455—OCT. 4, 1976 /
26 USC 1481.
26 USC 1551.
26 USC 1552. >
by striking out "within the meaning of the Federal renegotiation act applicable to such transaction" and inserting in lieu thereof "within the meaning of the Eenegotiation Act of 1951, as amended (50 U.S.C. App. 1211 and following)". (B) Section 1481(a)(1) (relating to renegotiation) if? amended by striking out subparagraph (D). (C) Subparagraphs (B) and (C) of section 1481(a)(1) are each amended by striking out "applicable Federal renegotiation act" and inserting in lieu thereof "Renegotiation Act of 1951, as amended". (158) AMENDMENT OF SECTION 155I.—Section 1551(a) (relating to disallowance of surtax exemption) is amended by striking out "determined under subsection (d) " and inserting in lieu thereof "determined under subsection (c)". (159) AMENDMENT OF SECTION 1552.—The first sentence of section 1552(a) (relating to earnings and profits of an affiliated group) is amended by striking out "beginning after December 31, 1953, and ending after the date of enactment of this title,", (b) CONFORMING AND CLERICAL AMENDMENTS.— (1) AMENDMENTS CONFORMING TO REPEAL OF SECTIONS 35 AND 242.—
26 USC 36. \' 26 USC 41. Ante, p. 1580.
26 USC 50A. 26 USC 171.
I
^ A) Section 36, as amended by this Act, is amended by striking out "sections 32 and 35" and inserting in lieu thereof "section 32". (B) Section 41(b)(2) is amended by striking out "section 35 (relating to partially tax-exempt interest),", (C) Section 46(a)(3) is amended by striking out subparagraph (B), by inserting "and" at the end of subparagraph (A), and by redesignating subparagraph (C) as subparagraph (B). (D) Section 50A(a)(3) is amended by striking out subparagraph (B) and redesignating subparagraphs (C), (D), and (E), as subparagraphs (B), (C), and (D), respectively. (E)(i) The heading of paragraph (1) of section 171(a) is amended to read "(1) TAXABLE BONDS.—". (ii) The heading of paragraph (2) of section 171(a) is amended to read "(2) TAX-EXEMPT BONDS.—". (iii) Section 171(a) is amended by striking out paragraph (3) and by redesignating paragraph (4) as paragraph (3). (iv) Section 171(b)(1)(B) (ii) is amended by striking out "subsection (c)(1)(B) " and inserting in lieu thereof "subsection (a)(1) ". (v) So much of section 171(c) as precedes paragraph (2) is amended to read as follows: " (c) ELECTION AS TO TAXABLE BONDS.— " (1) ELIGIBILITY TO ELECT; BONDS WITH RESPECT T WHICH ELECO TION PERMITTED.—In the case of bonds the interest on which is not
26 USC 551. 26 USC 1016. 26 USC 584.
excludible from gross income, this section shall apply only if the taxpayer has so elected." (F)(i) Section 551 is amended by striking out subsection (c), and by redesignating subsections (d), (e), (f), and (g), as subsections (c), (d), (e), and (f), respectively. (ii) Section 1016(a) (13) is amended by striking out "section 551(f)" and inserting in lieu thereof "section 551(e)". (G) Section 584(c)(2) is amended to read as follows: "(2) DIVIDENDS RECEIVED.—The proportionate share of each participant in the amount of dividends received by the common
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