82 STAT. ]
PUBLIC LAW 90-630-OCT. 22, 1968
out payment of the internal revenue tax imposed on imported distilled spirits by section 5001. The person operating the bonded premises of the distilled spirits plant to which such spirits are transferred shall become liable for the tax on distilled sjjirits withdrawn from customs custody under this section upon release of the spirits from customs custody, and the impoiter shall thereupon be relieved of his liability for such tax. "(b) WITHDRAWALS, ETC.—Imported distilled spirits transferred pursuant to subsection (a) — " (1) may not be bottled in bond under section 5233, "(2) may be redistilled or denatured only if of 185 degrees or more of proof, and "(3) may be withdrawn for any purpose authorized by this chapter, in the same manner as domestic distilled spirits." (b) Headnote 3 for part 12 of schedule 1 of the Tariff Schedules of the United States (19 U.S.C. sec. 1202) is amended to read as follows: "3. The duties prescribed on products covered by this part are in addition to the internal-revenue taxes imposed under existing law or any subsequent Act. The duties imposed on products covered by this part which are subject also to internal-revenue taxes are imposed only on the quantities subject to such taxes; except that, in the case of distilled spirits transferred to the bonded premises of a distilled spirits plant under the provisions of section 5232 of the Internal Revenue Code of 1954, the duties are imposed on the quantity withdrawn from customs custody."' SEC. 4. (a) For purposes of subsection (b), the effective date of this Act is the first day of the first calendar month which begins more flian 90 days after the date of the enactment of this Act. (b) The amendments made by the first section of this Act shall apply only to losses sustained on or after such effective date. The amendments made by section 2 shall apply only to articles exported on or after such effective date. The amendments made by section 3 shall apply only to withdrawals from customs custody on or after such effective date. SEC. 5. (a) Section 175(c)(1) of the Internal Revenue Code of 1954 (relating to soil and water conservation expenditures) is amended by striking out the last sentence and inserting in lieu thereof the tollowing: "Notwithstanding the preceding sentences, such term also includes any amount, not otherwise allowable as a deduction, paid or incurred to satisfy any part of an assessment levied by a soil or water conservation or drainage district to defray expenditures made by such district (i) which, if paid or incurred by the taxl^ayer, would without regard to this sentence constitute expenditures deductible under this section, or (ii) for property of a character subject to the allowance for depreciation provided in section 167 and used in the soil or water conservation or drainage district's business as such (to the extent that the taxpayer's share of the assessment levied on the members of the district for such property does not exceed 10 percent of such assessment)," (b) Section 175 of such Code is amended by adding at the end thereof the following new subsection: "(f) RULES APPLICABLE TO ASSESSMENTS FOR DEPRECIABLE PROPERTY.— "(1) AMOUNTS TREATED AS PAID OR INCURRED OVER 9-YEAR
PERIOD.—In the case of an assessment levied to defray expenditures for property deecribed in clause (ii) of the last sentence of subsection (c)(1), if the amount of such assessment paid or incurred by the taxpayer during the taxable year (determined without the application of this paragraph) is in excess of an
1329 ^^ Stat. isu-
77A Stat. 63.
^"'^' P- ^328. Effective date,
^/„°^^,^"fi;^^^*' pendft'irres"" ^"^ ^^^ Stat. 67. 26 USC 175.