PUBLIC LAW 98-369—JULY 18, 1984
to b-r oi
98 STAT. 579
reliance on a good faith determination of value, treated such requirements as met, "(D) which disregard an inadvertent ceasing to meet the requirements of paragraph (2)(B) by reason of changes in relative values of different classes of stock, "(E) which provide that transfers of stock within the group shall not be taken into account in determining whether a corporation ceases to be a member of an affiliated group, and "(F) which disregard changes in voting power to the extent such changes are disproportionate to related changes in value."
(b) EFFECTIVE DATE.—
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26 USC 1504
(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1984.
note.
(2) SPECIAL RULE FOR CORPORATIONS AFFIUATED ON JUNE 22,
1984.—In the case of a corporation which on June 22, 1984, is a bm member of an affiliated group which files a consolidated return
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- ! • for such corporation's taxable year which includes June 22,
1984, for purposes of determining whether such corporation continues to be a member of such group for taxable years r beginning before January 1, 1988, the amendment made by subsection (a) shall not apply. (3) SPECIAL RULE NOT TO APPLY TO SELL-DOWNS AFTER JUNE 22,
1984.—If— (A) the requirements of subsection (b)(2) are satisfied with respect to a corporation, (B) more than a de minimis amount of the stock of such corporation is sold or exchanged (including in a redemption), or issued (other than in the ordinary course of busiKroiTi ffc ness) after June 22, 1984, and (C) the requirements of the amendment made by subsec/^rfJQ.Krd tion (a) are not satisfied after such sale, exchange, or issuance, then the amendments made by subsection (a) shall apply for purposes of determining whether such corporation continues to be a member of such group. (4) EXCEPTION FOR CERTAIN SELL-DOWNS.—Subsection
(b)(2)
(and not subsection (b)(3)) will apply to a corporation if such corporation issues or sells stock after June 22, 1984, pursuant to a registration statement filed with the Securities and Exchange Commission on or before June 22, 1984, but only if the requirements of the amendment made by subsection (a) (substituting "more than 50 percent" for "at least 80 percent" in paragraph (2)(B) of section 1504(a) of the Internal Revenue Code of 1954) Ante, p. 577. «fi* are satisfied immediately after such issuance or sale and at all times thereafter until the first day of the first taxable year ?rt; beginning after December 31, 1987. (5) NATIVE CORPORATIONS.—The amendments made by subsecpu tion (a) shall not apply to any Native Corporation established under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.) during any taxable year beginning before 1992 or any part thereof in which such Corporation is subject to the provisions of section 7(h)(l) of such Act (43 U.S.C. 1606 (h)(D). SEC. 61. PROVISIONS RELATING TO EARNINGS AND PROFITS. (a) ADJUSTMENTS TO EARNINGS AND PROFITS.—
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