PUBLIC LAW 97-34—AUG. 13, 1981
95 STAT. 293
"(B) in the case of securities not listed on a national exchange, the fair market value as determined in good faith and in accordance with regulations prescribed by the Secretary." (b) DEDUCTIBILITY OF UNUSED PORTIONS OF THE CREDIT,—Section 404
26 USC 404.
is amended by adding at the end thereof the following new subsection: "(i) DEDUCTIBILITY OF UNUSED PORTIONS OF EMPLOYEE STOCK OWNERSHIP CREDIT.— "(1) UNUSED CREDIT CARRYOVERS.—There shall be allowed as a
deduction (without regard to any limitations provided under this section) for the last taxable year to which an unused employee stock ownership credit carryover (within the meaning of section 44G(b)(2)(A)) may be carried, an amount equal to the portion of Ante, p. 290. such unused credit carryover which expires at the close of such taxable year. "(2) REDUCTIONS IN CREDIT.—There shall be allowed as a deduction (subject to the limitations provided under this section) an amount equal to any reduction of the credit allowed under section 44G resulting from a final determination of such credit to the extent such reduction is not taken into account in section 44G(c)(3)." (c) CONFORMING AMENDMENTS.—
(1) Section 409A (relating to qualifications for tax credit 26 USC 409A. employee stock ownership plans) is amended— (A) by inserting "or 44G(c)(l)(B)" after "section 48(n)(l)(A)" in subsection (b)(1)(A), (B) by inserting "or the credit allowed under section 44G (relating to the employee stock ownership credit)" after "basic employee plan credit" in subsection (b)(4), (C) by inserting "or 44G(c)(l)(B)" after "section 48(n)(l)" in subsection (g), (D) by inserting "or the credit allowed under section 44G (relating to employee stock ownership credit)" after "employee plan credit" in subsection (g), (E) by inserting "or 44G(c)(l)(B)" after "section 48(n)(l)" in suljsection (i)(l)(A), (F) by inserting "section 44G(c)(l)(B), or" after "required under" in subsection (m), (G) by inserting "or employee stock ownership credit" after "employee plan credit in subsection (n)(2), and (H) by adding at the end of subsection (n) the following new paragraph: "(3) For requirements for allowance of an employee stock ownership credit, see section 44G."
(2) Subsection (c) of section 56 (relating to regular tax deduc- 26 USC 56. tions defined) is amended by striking out "and 43" and inserting in lieu thereof "43, and 44G'^. (3) Subsection (a) of section 6699 (relating to assessable penal- 26 USC 6699. ties relating to tax credit employee stock ownership plan) is amended— (A) by inserting "or a credit allowable under section 44G (relating to the employee stock ownership credit)" after "employee plan credit", (B) by striking out "section 409A, or" in paragraph (1) and inserting in lieu thereof "section 409A with respect to a qualified investment made before January 1, 1983,,
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