90 STAT. 295
PUBLIC LAW 94-253—MAR. 31, 1976
Public Law 94-253 94th Congress An Act To provide tax treatment for exchanges under the final system plan for ConRail.
Mar, o l, 1976
[H.R. 12490] Be it enacted by the Sen-ate and House of Representatives United States of America in Congress assembled,
of the
SECTION 1. TAX TREATMENT OF EXCHANGES UNDER THE FINAL SYSTEM PLAN FOR CONRAIL.
ConRail exchanges. Tax treatment.
(a) I x GEXERAL.—Section 374 of the Internal Revenue Code of 1954 (relating to gain or loss not recognized in certain railroad 26 USC 374. reorganizations) is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: " (c) ExCHAXGES UXDER THE FiNAL SYSTEM P L A N FOR C O N R A I L. —
" (1) I x GEXERAL.—No gain or loss shall be recognized if, in order to carry out the final system plan, rail properties of a transferor railroad corporation are transferred to the Consolidated Rail Corporation (or any subsidiary thereof) pursuant to an order of the special court under section 303 or 305(d) of the Regional Rail Reorganization Act of 1973 in exchange solely for stock of the 45 USC 743. Consolidated Rail Corporation, securities of such Corporation, Ante, p. 100 certificates of value of the United States Railway Association, or 45 USC 745. any combination thereof. " (2) ExciiAXGES xoT SOLELY IX Kixi).—If paragraph (1) would apply to an exchange if it were not for the fact that the property received in exchange consists not only of property permitted by paragraph (1) to be received without the recognition of gain or loss, b u t also of other property or money, then rules similar to the rules set forth in paragraph (2) or (3) of subsection (a) (whichever is appropriate) shall be applied. " (3) BASIS.—The basis of the property transferred to the Consolidated Rail Corporation (or any subsidiary thereof) in an exchange to which paragraph (1) or (2) applies shall be determined under rules similar to the rules set forth in subsection (b). " (4) D E X I A L OF XET OPERATING LOSS CARRYOVERS TO COXRAIL.—
Xeither the Consolidated Rail Corporation nor any subsidiary thereof shall succeed to any net operating loss carryover of any transferor railroad corporation. " (5) DEFINITIONS. — For purposes of this subsection— " (A) R A I L PROPERTIES.—The term 'rail properties' means rail properties within the meaning of paragraph (12) of section 102 of the Regional Rail Reorganization Act of 1973. 45 USC 702. " (B) TRANSFEROR RAILROAD CORPORATION.—The term ' t r a n s -
l^j,,^^
feror railroad corporation' means a corporation which, on March 11, 1976, was— " (i) a railroad in reorganization (within the meaning of paragraph (14) of section 102 of the Regional Rafl Reorganization Act of 1973) in the region (within the meaning of paragraph (15) of such section 102), or " ( i i) a corporation leased, operated, or controlled by such a railroad in reorganization.
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