966
PUBLIC LAW 87-834-OCT. 16, 1962
[76
STAT.
" (B) in the case of a regulated investment company or a real estate investment trust, the ratio (i) the numerator of which is its taxable income and (ii) the denominator of which is its taxable income computed without regard to ihe deduction for dividends paid provided by section 852(b)(2) 26 USC 852,857. (D) or 857(b)(2)(C), a s the case may be, and " (C) in the case of a cooperative organization, the ratio (i) the numerator of which is its taxable income and (ii) the denominator of which is its taxable income increased by Post. p. 1046. amounts to which section 1382(b) or (c) applies and similar amounts the tax treatment of which is determined without Post, p. 1045. regard to subchapter T (sec. 1381 and following). For purposes of subparagraph (B) of the preceding sentence, the term 'taxable income' means in the case of a regulated investment company its investment company taxable income (within the meaning of section 852(b)(2)), and in the case of a real estate investment trust its real estate investment trust taxable income (within the meaning of section 8 5 7 (b)(2)). Ante, p. 962. "SEC. 47. CERTAIN DISPOSITIONS, ETC, OF SECTION 38 PROPERTY. " (a) GENERAL RULE.—Under regulations prescribed by the Secretary or his delegate— "(1) EARLY DISPOSITION, ETC.—If during any taxable year any property is disposed of, or otherwise ceases to oe section 38 property with respect to the taxpayer, before the close of the useful life which was taken into account in computing the credit under section 38, then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from substituting, in determining qualified investment, for such useful life the period beginning with the time such property was placed in service by the taxpayer and ending with the time such property ceased to be section 38 property. "(2) PROPERTY BECOMES PUBLIC UTILITY PROPERTY.—If during any taxable year any property taken into account in determining qualified investment becomes public utility property (within the Ante, p. 965. meaning of section 46(c)(3)(B)), then the tax under this chapter for such taxable year shall be increased by an amount equal to the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from treating the property, for purposes of determining qualified investment, as public utility property (after giving due regard to the period before such change in use). If the application of this paragraph to any property is followed by the application of paragraph (1) to such property, proper adjustment shall be made in applying paragraph (1). "(3) CARRYBACKS AND CARRYOVERS ADJUSTED.—In the case of any cessation described in paragraph (1) or any change in use described in paragraph (2), the carrybacks and carryovers under section 46(b) shall be adjusted by reason of such cessation (or change in use). "(4) PROPERTY DESTROYED BY CASUALTY, ETC.—No increase shall , „ be made under paragraph (1) and no adjustment shall be made under'paragraph (3) in any case in which— " (A) any property is disposed of, or otherwise ceases to be section 38 property with respect to the taxpayer, on account of its destruction or damage by fire, storm, shipwreck, or other casualty, or by reason of its theft,
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