94 STAT. 276
PUBLIC LAW 96-223—APR. 2, 1980 (2) TECHNICAL AMENDMENTS RELATED TO CREDIT.—
26 USC 55. Ante, p. 273.
26 USC 381.
CARRYOVER OF
(A) Paragraph (3) of section 55(c) is amended by adding at the end thereof the following new sentence: "In determining any carryover under section 44E(e)(2), a rule similar to the rule set forth in subparagraph (A) shall be treated as inserted in this paragraph before subparagraph (A), and the applications of subparagraphs (A), (B), and (C) shall be adjusted accordingly." (B) Subsection (c) of section 381 (relating to items of the distributor or transferor corporation) is amended by adding at the end thereof the following new paragraph: "(27) CREDIT UNDER SECTION 44E FOR ALCOHOL USED AS FUEL.—
26 USC 383.
26 USC 1 note.
The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 44E, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44E in respect of the distributor or transferor corporation." (C) Section 383 (relating to special limitations on unused investment credits, work incentive credits, new employee credits, foreign taxes, and capital losses), as in effect for taxable years beginning after June 30, 1982, is amended— (i) by inserting "to any unused credit of the corporation under section 44E(e)(2)," after "section 53(c),", and (ii) by striking out "NEW EMPLOYEE CREDITS" in the section heading and inserting in lieu thereof "NEW EMPLOYEE CREDITS, ALCOHOL FUEL CREDITS". (D) Section 383 (as in effect on the day before the date of the enactment of the Tax Reform Act of 1976) is amended— (i) by inserting "to any unused credit of the corporation which could otherwise be carried forward under section 44E(e)(2)," after "section 53(c),", and (ii) by striking out "NEW EMPLOYEE CREDITS" in the section heading and inserting in lieu thereof "NEW EMPLOYEE CREDITS. ALCOHOL FUEL CREDITS". (3) OTHER TECHNICAL AND CONFORMING AMENDMENTS.—
26 USC 4081.
(A) Paragraph (3) of section 4081(c) (defining alcohol) is amended by adding at the end thereof the following new sentence: "Such term does not include alcohol with a proof of less than 190 (determined without regard to any added denaturants)." (B) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting immediately after the item relating to section 44D the following new item: "Sec. 44E. Alcohol used as fuel."
26 USC 6096.
(C) Section 6096(b) (relating to designation of income tax payments to Presidential Election Campaign Fund), as amended by section 231, is amended by striking out "and 44D" and inserting "44D, and 44E". (c) CREDIT TO B E INCLUDED IN INCOME.—
(1) IN GENERAL.—Part II of subchapter B of chapter 1 (relating to items specifically included in gross income) is amended by adding at the end thereof the following new section:
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