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PUBLIC LAW 89-243-OCT. 9, 1965
[79 STAT.
Public Law 89-243 October 9, 1965 [H. R. 4750]
^^ ACT To provide an extension of the interest equalization tax, and for other purposes.
Interest Equaii-
Be it enacted by the Senate and House of Representatives United States of America in Congress assembled.
zation Tax Extension Act of 1965.
of the
•' "^ ' SECTION 1. SHORT TITLE, ETC. (a) SHORT TITLE.—This Act may be cited as the "Interest Equal-
ization Tax Extension Act of 1965". (b) AMENDMENT or 1954 CODE.—Except as otherwise expressly
26 us^c 49n
26 USC 4914. 26 USC 4920.
provided, whenever in this Act an amendment is expressed in terms of an amendment to a section or other provision, the reference is to a section or other provision of the Internal Revenue Code of 1954. SEC. 2. EXTENSION OF INTEREST EQUALIZATION TAX. Section 4911(d) is amended by striking out "December 31, 1965" and inserting in lieu thereof "July 31, 1967". SEC. 3. IMPOSITION OF TAX WITH RESPECT TO DEBT OBLIGATIONS HAVING MATURITY OF 1 TO 3 YEARS. (a) IMPOSITION or TAX.—The following provisions are amended by striking out "3 years" each place it appears and inserting in lieu thereof "1 year"— (1) section 4911(a); (2) section 4 9 1 4 (e)(3)(D); (3) section 4914(e)(3)(E) (ii) I and (4) section 4920(a)(7)(B) (Iv). (b) AMOUNT OF TAX.—Section 4911(b)(2) is amended by striking from the table the line reading "At least 3 years, but less than 3i/^ years
2.75 percent"
and inserting in lieu thereof the following: "At least 1 year, but less than I14 years 1.05 percent At least 11/4 years, but less than IY2 years 1.30 percent At least 1^2 years, but less than 1% years 1.50 percent At least 1% years, but less than 2^4 years 1.85 percent At least 21^ years, but less than 2% years 2.30 percent At least 2% years, but less than 3^^ years
2.75 percent". (c) EFFECTIVE DATE.— (1) GENERAL RULE.—Except as provided by paragraphs (2),
(3), and (4), the amendments made by subsections (a) and (b) shall apply with respect to acquisitions of debt obligations, and designations described in section 4914(e)(3)(D) or 4914(e)(3) (E) ( i i) of the Internal Revenue Code of 1954, made after February 10, 1965. (2) PREEXISTING COMMITMENTS.—Such amendments shall not apply to an acquisition— (A) made pursuant to an obligation to acquire which on February 10, 1965— (i) was unconditional, or (ii) was subject only to conditions contained in a formal contract under which partial performance had occurred; or (B) as to which on or before February 10, 1965, the acquiring United States person (or, in a case where 2 or more. United States persons are making acquisitions as part of a single transaction, a majority in interest of such persons) had taken every action to signify approval of the acquisition under the procedures ordinarily employed by such person (or persons) in similar transactions and had sent or deposited
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