PUBLIC LAWS-CH. 619--OCT. 21 , 1942 54 Stat. 984. 26U.S. C. §718(d). Ante, p. 932. 54 Stat. 984. 26U. .C.§719(a) (1). 54 Stat. 982. 26 U. S. C., Supp.I, 718 (a) (5). 54 Stat. 983. 26U. .C.. 718(b) (4). 54 Stat. 984. 26U.S. . 718 (c) (4). Ante, p. 932. Stupra. 54 Stat. 982,983, 984. 26Ui.S.C. 718(b) (4), () (4); B upp. I, 718 (a) (5). Ant, p.P. O. Credit to taxpayer's account. Ante, p. 9g. "Tax imposed un- der this subchapter." (b) TECHNICAL AMENDMENT.- (1) Section 718 (d) is amended to read as follows: "(d) For special rules affecting computation of property paid in for stock in connection with certain exchanges and liquidations, see Supplement C." (2) Section 719 (a) (1) is amended by striking out ", and not including indebtedness described in section 751 (b) relating to certain exchanges". (c) PREvious RULES TERMINATED. - Section 718 (a) (5) (relating to increase in equity invested capital on account of gain on tax-free liquidation), section 718 (b) (4) (relating to reduction in equity invested capital on account of loss on tax-free liquidation), and section 718 (c) (4) (relating to property paid in for stock on merger or consolidation) shall not apply with respect to any taxable year beginning after December 31, 1941. (d) OPTIONAL RETROACTIVITY OF AMENDMENTS TO 1940 AND 1941.- The amendments made by this section, inserting section 760 and sec- tion 761, shall also be applicable in the computation of the tax for all taxable years beginning after December 31, 1939, if the taxpayer, within the time and in the manner and subject to such regulations as the Commissioner, with the approval of the Secretary, prescribes, elects to have either or both of such amendments apply. For any tax- able year for which the provisions of section 760 are applied retro- actively, the amendment made by subsection (b) (2) of this section to section 719 (a) (1) shall also apply. In case the provisions of section 761 are applied retroactively, the provisions of section 718 (a) (5), section 718 (b) (4), and section 718 (c) (4) shall not apply in such computations. Part II-Post-War Refund of Excess Profits Tax SEC. 250. POST-WAR REFUND OF EXCESS PROFITS TAX. Subchapter E of Chapter 2 is amended by inserting at the end thereof the following new Part: "Part III-Post-War Refund of Excess Profits Tax "SEC. 780. POST-WAR REFUND OF EXCESS PROFITS TAX. "(a) IN GENERAL. -T he Secretary of the Treasury is authorized and directed to establish a credit to the account of each taxpayer subject to the tax imposed under this subchapter, for each taxable year ending after December 31, 1941 (except in the case of a taxable year begin- ning in 1941 and ending before July 1, 1942), and not beginning after the date of cessation of hostilities in the present war, of an amount equal to 10 per centum of the tax imposed under this sub- chapter for each such taxable year. For the purposes of this part, in the case of a taxpayer whose tax is determined under section 710 (a) (3), the term "tax imposed under this subchapter" means the excess of the tax imposed by such section 710 (a) (3) over the tax that would be imposed if such section 710 (a) (3) were not applicable. "(b) APPLICATIoN OF CREDIT TO PURCHASE OF BONDS.- Within three months after the payment of the amount of the excess profits tax shown on the return for a taxable year to which subsection (a) applies, if the payment is made before three months before the date of maturity of bonds for such year under subsection (c), there shall be issued to and in the name of the taxpayer bonds of,the United States in an aggregate amount equal to 10 per centum of the tax paid in respect of which a 936 [56 STAT.
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