95 STAT. 256
PUBLIC LAW 97-34—AUG. 13, 1981 (1) by inserting "(a) IN GENERAL.—" before "In", and (2) by adding at the end thereof the following new subsection: "(b) MUTUAL SAVINGS BANK TO INCLUDE CERTAIN BANKS WITH CAPITAL STOCK.—For purposes of this part, the term 'mutual savings
bank' includes any bank— "(1) which has capital stock represented by shares, and "(2) which is subject to, and operates under. Federal or State laws relating to mutual savings bank." (b) PERCENTAGE OF TAXABLE INCOME METHOD.—
26 USC 593.
(1) Subparagraph (B) of section 593(b)(2) (relating to reduction of applicable percentage in certain cases) is amended by inserting "which is not described in section 591(b)" after "mutual savings bank" each place it appears. (2) Subparagraph (C) of section 593(b)(2) is amended by inserting "which are not described in section 591(b)" after mutual savings banks". (c) CONFORMING AMENDMENTS.—
26 USC 368 ^°^^26 USC 593 ^°^^26 USC 597 "°^^ 26 USC 591 ^°*®
(1) Sections 593(a) (relating to reserves for losses on loans) is amended by striking out "not having capital stock represented by shares". (2) Paragraph (1) of section 593(e) (relating to distributions to shareholders) is amended by inserting "or an institution that is treated as a mutual savings bank under section 591(b)" after "association" each place it appears. SEC. 246. EFFECTIVE DATES. (a) The amendment made by sections 241 and 242 shall apply to any transfer made on or after January 1, 1981. (b) The amendment made by section 243 shall apply to any distribution made on or after January 1, 1981. (c) The amendment made by section 244 shall apply to any payment made on or after January 1, 1981. (d) The amendments made by section 245 shall apply with respect to taxable years ending after the date of the enactment of this Act.
Subtitle F—Stock Options, etc. SEC. 251. STOCK OPTIONS.
(a) IN GENERAL.—Part II of subchapter D of chapter 1 (relating to certain stock options) is amended by adding after section 422 the following new section: 26 USC 422A.
"SEC. 422A. INCENTIVE STOCK OPTIONS.
"(a) IN GENERAL.—Section 421(a) shall apply with respect to the transfer of a share of stock to an individual pursuant to his exercise of an incentive stock option if— "(1) no disposition of such share is made by him within 2 years from the date of the granting of the option nor within 1 year after the transfer of such share to him, and "(2) at all times during the period beginning on the date of the granting of the option and ending on the day 3 months before the date of such exercise, such individual was an employee of either the corporation granting such option, a parent or subsidiary corporation of such corporation, or a corporation or a parent or subsidiary corporation of such corporation issuing or assuming a stock option in a transaction to which section 425(a) applies.
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