PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 917 if the shareholders own (immediately after the distribution) stock possessing— "(A) more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, and "(B) more than 50 percent of the total value of shares of all classes of stock of such corporation.". (2) D REORGANIZATIONS. —Section 368(a)(2)(H) (relating to special rule for determining whether certain transactions are qualified under paragraph (1)(D)) is amended to read as follows: " (H) SPECIAL RULES FOR DETERMINING WHETHER CER- TAIN TRANSACTIONS ARE QUALIFIED UNDER PARAGRAPH (i)(D). —For purposes of determining whether a transaction qualifies under paragraph (1)(D)— "(i) in the case of a transaction with respect to which the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met, the term 'control' has the meaning given such term by section 304(c), and "(ii) in the case of a transaction with respect to which the requirements of section 355 are met, the shareholders described in paragraph (1)(D) shall be treated as having control of the corporation to which the assets are transferred if such shareholders own (immediately after the distribution) stock possessing— "(I) more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, and "(II) more than 50 percent of the total value of shares of all classes of stock of such corporation.", (d) EFFECTIVE DATES. — 26 USC 351 note. (1) SECTION 355 RULES.— The amendments made by subsections (a) and (b) shall apply to distributions after April 16, 1997, pursuant to a plan (or series of related transactions) which involves an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 occurring after such date. (2) DIVISIVE TRANSACTIONS. — The amendments made by subsection (c) shall apply to transfers after the date of the enactment of this Act. (3) TRANSITION RULE.—The amendments made by this section shall not apply to any distribution pursuant to a plan (or series of related transactions) which involves an acquisition described in section 355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 (or, in the case of the amendments made by subsection (c), any transfer) occurring after April 16, 1997, if such acquisition or, transfer is— (A) made pursuant to an agreement which was binding on such date and at all times thereafter, (B) described in a ruling request submitted to the Internal Revenue Service on or before such date, or (C) described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required solely by reason of the acquisition or transfer. This paragraph shall not apply to any agreement, ruling request, or public announcement or filing unless it identifies
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