Page:United States Statutes at Large Volume 110 Part 3.djvu/100

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110 STAT. 1830 PUBLIC LAW 104-188—AUG. 20, 1996 shall be made with such annualizations as the Secretary shall prescribe. "(8) SPECIAL RULES FOR CERTAIN POSSESSIONS. — "(A) IN GENERAL. —In the case of an existing credit claimant with respect to an applicable possession, this section (other than the preceding paragraphs of this subsection) shall apply to such claimant with respect to such applicable possession for taxable years beginning after December 31, 1995, and before January 1, 2006. "(B) APPLICABLE POSSESSION. —For purposes of this paragraph, the term 'applicable possession' means Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. "(9) EXISTING CREDIT CLAIMANT. —For purposes of this subsection— "(A) IN GENERAL.— The term 'existing credit claimant' means a corporation— "(i)(I) which was actively conducting a trade or business in a possession on October 13, 1995, and "(II) with respect to which an election under this section is in effect for the corporation's taxable year which includes October 13, 1995, or "(ii) which acquired all of the assets of a trade or business of a corporation which— "(I) satisfied the requirements of subclause (I) of clause (i) with respect to such trade or business, and "(II) satisfied the requirements of subclause (II) of clause (i). "(B) NEW LINES OF BUSINESS PROHIBITED. — I f, after October 13, 1995, a corporation which would (but for this subparagraph) be an existing credit claimant adds a substantial new line of business (other than in an acquisition described in subparagraph (A)(ii)), such corporation shall cease to be treated as an existing credit claimant as of the close of the taxable year ending before the date of such addition. "(C) BINDING CONTRACT EXCEPTION. — If, on October 13, 1995, and at all times thereafter, there is in effect with respect to a corporation a binding contract for the acquisition of assets to be used in, or for the sale of assets to be produced from, a trade or business, the corporation shall be treated for purposes of this paragraph as actively conducting such trade or business on October 13, 1995. The preceding sentence shall not apply if such trade or business is not actively conducted before January 1, 1996. " (10) SEPARATE APPLICATION TO EACH POSSESSION. —For purposes of determining— "(A) whether a taxpayer is an existing credit claimant, and "(B) the amount of the credit allowed under this section, this subsection (and so much of this section as relates to this subsection) shall be applied separately with respect to each possession. ", (b) ECONOMIC ACTIVITY CREDIT FOR PUERTO RICO. —