Taxable Years Taxable Years Taxable Years amount otherwise constituting such amount otherwise constituting such amount otherwise constituting such adjusted basis as is properly at- adjusted basis as is properly at- adjusted basis as is properly attributable to such construction, re- tributable to such construction, re- tributable to such construction, reconstruction, erection, installation construction, erection, installation construction, erection, installation or acquisition after December 31, or acquisition after December 31, or acquisition after December 31, 1939, as either the Secretary of 1939, as either the Secretary of 1939, as either the Secretary of War or the Secretary of the Navy War or the Secretary of the Navy War or the Secretary of the Navy has certified as necessary in the in- has certified as necessary in the in- has certified as necessary in the interest of national defense during terest of national defense during terest of national defense during the emergency period, which certi- the emergency period, which certi- the emergency period, which certification shall be under such regula-|fication shall be under such regula- fication shall be under such regulations as may be prescribed from tions as may be prescribed from tions as may be prescribed from time to time by the Secretary of time to time by the Secretary of time to time by the Secretary of War and the Secretary of the War and the Secretary of the War and the Secretary of the Navy, with the approval of the Navy, with the approval of the Navy, with the approval of the President. President. President. was Sec. 124 (f) (1), I. R. C., is shown it as supra, amended to read by Sec. 155 (1), R. A. of 1942. (e) Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940. For Sec. 124 (f) (1), I. R. C., as originally enacted by Sec. 302, Second R. A. of 1940, and subsequent amendments above prior amendment to made by Sec. 155 (e) (1), R. A. of 1942, see fn. 20. Sec. 124 (f) (1), I. R. C., For Sec. 124 (f) (1), I. R. Sec. 124 (f) (1), I. R. C., shown supra, is as it was amended to read by Sec. 155 Sec. (e) (1), R. A. of 1942. 155 (1) of said Act makes amendment effective as of Oct. 8, 1940. For Sec. 124 (f) (1), I. R. C., as originally enacted by Sec. 302, Second R. A. of 1940, and subsequent amendments to prior above amendment made by Sec. 155 (e) (1), R. A. of 1942, see fn. 20. 20 Sec. 124 (f) (1) and (3) and Sec. 124 (i), I. R. C., added to I. R. C. by Sec. 302, Second R. A. of 1940, and amendments thereof by Joint Resolutions of Jan. 31, 1941, and Oct. 30, 1941, and by H. J. R. 257 of Feb. 6, 1942, read as follows: (As added to I. R. C. by Sec. 302, Second R. A. of 1940) Sec. 124. (f) Determination of adjusted basis of emergency facility.-In determining, for the purposes of subsection (a) or subsection (h), the adjusted basis of an emergency facility (1) There shall be included only so much of the amount otherwise constituting such adjusted basis as is properly attributable to such construction, reconstruction, erection, installation, or acquisition after June 10, 1940, as the Advisory Commission to the Council of National Defense and either the Secretary of War or the Secretary of the Navy have certified, within the time specified in paragraph (3) of this subsection, and under such regulations as the President may prescribe, as necessary in the interest of national defense during the emergency period; (3) The certificate provided for in paragraph (1) shall have no effect unless made before whichever of the following dates is the later: (A) The beginning of such construction, reconstruction, erection, or installation, or the date of such acquisition, or (B) the one hundred and twentieth day after the date of the enactment of the Second Revenue Act of 1940. Sec. 124. (i) Protection of the United States.-If the taxpayer has been or will be reimbursed by the United States for all or a part of the cost of any emergency facility pursuant to any contract with the United States, either (1) directly, by a provision therein dealing expressly with such reimbursement, or (2) indirectly, because the price paid by the United States (insofar as return of cost of the facility is used as a factor in the fixing of such price) is recognized by the contract as including a return of cost greater than the normal exhaustion, wear and tear, no amortization deduction with respect to such emergency facility shall be allowed for any month after the end of the month in which such contract is made, unless, before the expiration of ninety days after the making of such contract or one hundred and twenty days after the date of the enactment of the Second Revenue Act of 1940, whichever of such periods expires the later, the Advisory Commission to the Council of National De fense, and either the Secretary of War or the Secretary of the Navy certify to the Commissioner that such contract adequately protects the United States with reference to the future use and disposition of such emergency facility. A certificate by the Advisory Commission to the Council of National Defense and either the Secre tary of War or the Secretary of the Navy, made to the Commissioner before the expiration of ninety days after the making of a contract or one hundred and twenty days after the date of the enactment of the Second Revenue Act of 1940, whichever of such periods expires the later, to the effect that, under such contract, reimbursement for all or a part of the cost of any emer gency facility is not provided for within the meaning of clause (1) or clause (2), shall be conclusive for the purposes of this subsection. The terms and conditions of contracts with reference to reimbursement of the cost of emergency facilities and the protecting of the United States with reference to the future use and disposition of such emergency facilities shall be made available to the public. Taxable Years Beginning in 1940 amount otherwise constituting such adjusted basis as is properly attributable to such construction, reConstruction, erection, installation or acquisition after December 31, 1939, as either the Secretary of War or the Secretary of the Navy has certified as necessary in the interest of national defense during the emergency period, which certircation shall be under such regulations as may be prescribed from time to time by the Secretary of War and the Secretary of the Navy, with the approval of the President. Sec. 124 (f) (1), I. R. C., supra, is shown as it was amended to read by Sec. 155 (e) (1), R. A. of 1942. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940. For Sec. 124 (f) (1), I. R. C., as originally enacted by Sec. 302, Second R. A. of 1940, and subsequent amendments prior to above amendment made by Sec. 155 (e) (1), R. A. of 1942, see fn. 20. Taxable Years Beginning in 1939 before the expiration of sixty days after the beginning of such construction, reconstruction, erection, or installation or the date of such acquisition, or before February 6, 1941, whichever is later: Provided, That in no event and notwithstanding any of the other provisions of this section, no amortization deduction shall be allowed in respect of any emergency facility for any taxable year unless a certificate in respect thereof under paragraph (1) of this subsection shall have been made prior to the making of the election, pursuant to subsection (b) and (d) (4) of this section, to take the amortization deduction and begin the sixty-month period in or with such taxable year, or before February 6, 1941, whichever is later." § 3. Section 124 (i) of the Internal Revenue Code is amended (a) By striking out from the first sentence thereof ", before the expiration of ninety days after the making of such contract or one hundred and twenty days after the date of the enactment of the Second Revenue Act of 1940, whichever of such periods expires the later,''; (b) By striking out from the second sentence thereof, before the expiration of ninety days after the making of a contract or one hundred and twenty days after the date of the enactment of the Second Revenue Act of 1940, whichever of such periods expires the later,"; and (e) By adding after the second sentence thereof a new Sentence to read as follows: "The certificates provided for under this subsection shall have no effect unless an application therefor is filed before the expiration of sixty days after the making of such contract, or before February 6, 1941, whichever is later." §4. The amendments made by this joint resolution to section 124 of the Internal Revenue Code shall be applicable as if they were a part of such section on the date of the enactment of the Second Revenue Act of 1940. (As amended by H. J. R. 235 of Oct. 30, 1941) Section 124 (f) (1) of the Internal Revenue Code, as amended, is amended to read as follows: Taxable Years Beginning before 1939 "(1) There shall be included only so much of the amount otherwise constituting such adjusted basis as is properly attributable to such construction, reconstruction, erection, installation, or acquisition after June 10, 1940, as either the Secretary of War or the Secretary of the Navy has certified as necessary in the interest of national defense during the emergency period, which certification shall be under such regulations as may be prescribed from time to time by the Secretary of War and the Secretary of the Navy, with the approval of the President." § 2. Section 124 (f) (3) of the Internal Revenue Code, as amended, is amended by striking out "sixty days" and inserting in lieu thereof "six months'' and by striking out "February 6, 1941" and inserting in lieu thereof "December 1, 1941". § 3. Section 124 (i) of the Internal Revenue Code, as amended, is amended to read as follows: Protection of the United States. If the taxpayer has been or will be reimbursed by the United States for all or a part of the cost of any emergency facility pursuant to any contract (in excess of $15,000 in amount) with the United States, made on its behalf after December 31, 1939, by the War Department, the Navy Department, the United States Maritime Commission, or such other department or agency as the President may designate, either (1) directly, by a provision therein dealing expressly with such reimbursement, or (2) indirectly, because the price paid by the United States (insofar as return of cost of the facility is used by the United States as a factor in the fixing of such price) is recognized by the contract as including a return of cost greater than the normal exhaustion, wear, and tear: Provided, That no such greater return of cost shall be deemed to have been used as a factor in the fixing of such price when the negotiating or contracting officer reports that after careful consideration he is satisfied that such greater return was not included in the price, no amortization deduction with respect to such emergency facility shall be allowed for any month after the end of the month in which such contract is made unless Taxable Years Taxable Years Taxable Years Sec. 124. (f) (2) After the com- Sec. 124. (f) (2) After the com- Sec. 124. (f) (2) After the completion or acquisition of any pletion or acquisition of any pletion or acquisition of any emergency facility with respect to emergency facility with respect to emergency facility with respect to which a certificate under paragraph which a certificate under paragraph which a certificate under paragraph (1) has been made, any expendi- (1) has been made, any expendi- (1) has been made, any expendi ture (attributable to such facility ture (attributable to such facility ture (attributable to such facility and to the period after such com- and to the period after such com- and to the period after such completion or acquisition) which does pletion or acquisition) which does pletion or acquisition) which does not represent construction, recon- not represent construction, recon- not represent construction, reconstruction, erection, installation, or struction, erection, installation, or struction, erection, installation, or acquisition included in such certif- acquisition included in such certif- acquisition included in such certificate, but with respect to which a icate, but with respect to which a icate, but with respect to which a separate certificate is made under separate certificate is made under separate certificate is made under paragraph (1), shall not be applied paragraph (1), shall not be applied paragraph (1), shall not be applied in adjustment of the basis of such in adjustment of the basis of such in adjustment of the basis of such facility and shall be considered as facility and shall be considered as facility and shall be considered as an expenditure with respect to a an expenditure with respect to a an expenditure with respect to a new emergency facility; and new emergency facility; and new emergency facility; and Sec. 124 (f) (2), I. R. C., supra, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124 (f) (2), I. R. C., supra, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124 (f) (2), I. R. C., supra, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124. (f) (3) The certificate Sec. 124. (f) (3) The certificate Sec. 124. (f) (3) The certificate provided for in paragraph (1) shall provided for in paragraph (1) shall provided for in paragraph (1) shall have no effect unless an application have no effect unless an application have no effect unless an application therefor is filed before the expira- therefor is filed before the expira- therefor is filed before the expiration of six months after the begin- tion of six months after the begin- tion of six months after the begin ning of such construction, recon-ning of such construction, recon- ning of such construction, reconstruction, erection, or installation struction, erection, or installation struction, erection, or installation or the date of such acquisition, or or the date of such acquisition, or before December 1, 1941, which- before December 1, 1941, whichever is later, except that (A) in the case of an emergency facility completed or acquired by a corporation after December 31, 1939, and before June 11, 1940, such certificate shall have no effect unless an application therefor is filed before the expiration of six months after the date of the enactment of the Revenue Act of 1942, and ever is later, except that— (A) in the case of an emergency facility completed or acquired by a corporation after December 31, 1939, and before June 11, 1940, such certificate shall have no effect unless an application therefor is filed before the expiration of six months after the date of the enactment of the Revenue Act of 1942, and (B) in the case of an emergency (B) in the case of an emergency facility completed or acquired after facility completed or acquired after December 31, 1939, by a person December 31, 1939, by a person other than a corporation, such cer- other than a corporation, such certificate shall have no effect unless tificate shall have no effect unless an application therefor is filed be- an application therefor is filed before the expiration of six months fore the expiration of six months after the beginning of such con- after the beginning of such construction, reconstruction, erection, struction, reconstruction, erection, or installation or the date of such acquisition, or before the expiration of six months after the date of the enactment of the Revenue Act of 1942, whichever is later. or installation or the date of such or the date of such acquisition, or before December 1, 1941, whichever is later, except that (A) in the case of an emergency facility completed or acquired by a corporation after December 31. 1939, and before June 11, 1940. such certificate shall have no effect unless an application therefor is filed before the expiration of siz months after the date of the enact ment of the Revenue Act of 1912, and (B) in the case of an emergency facility completed or acquired after December 31, 1939, by a person other than a corporation, such certificate shall have no effect unless an application therefor is filed be fore the expiration of six months after the beginning of such construction, reconstruction, erection, or installation or the date of suck acquisition, or before the expiration of six months after the date of the enactment of the Revenue Act of 1942, whichever is later. In no event and notwithstanding In no event and notwithstanding In no event and notwithstanding any of the other provisions of this any of the other provisions of this any of the other provisions of this section, no amortization deduction section, no amortization deduction section, no amortization deduction either the Secretary of War or the Secretary of the Navy certifies to the Commissioner that the interest of the United States is adequately protected with reference to the future use and disposition of such emergency facility. A certificate of like effect may also be issued with respect to emergency facilities for which the taxpayer has not been or will not be so reimbursed. A certificate by either the Secretary of War or the Secre Taxable Years Beginning in 1940 Sec. 124. (f) (2) After the completion or acquisition of any emergency facility with respect to which a certificate under paragraph (1) has been made, any expenditure (attributable to such facility and to the period after such completion or acquisition) which does not represent construction, reconstruction, erection, installation, or acquisition included in such certificate, but with respect to which a separate certificate is made under paragraph (1), shall not be applied in adjustment of the basis of such facility and shall be considered as an expenditure with respect to a new emergency facility; and Sec. 124 (f) (2), I. R. C., supra, added to I. R. C. by Sec. 302, Second R. A. of 1940, approved Oct. 8, 1940. Sec. 124. (f) (3) The certificate provided for in paragraph (1) shall have no effect unless an application therefor is filed before the expiration of six months after the beginning of such construction, reconstruction, erection, or installation or the date of such acquisition, or before December 1, 1941, whichever is later, except that— (A) in the case of an emergency facility completed or acquired by a corporation after December 31, 1939, and before June 11, 1940, such certificate shall have no effect unless an application therefor is filed before the expiration of six months after the date of the enactment of the Revenue Act of 1942, and (B) in the case of an emergency facility completed or acquired after December 31, 1939, by a person other than a corporation, such certificate shall have no effect unless an application therefor is filed before the expiration of six months after the beginning of such construction, reconstruction, erection, or installation or the date of such acquisition, or before the expiration of six months after the date of the enactment of the Revenue Act of 1942, whichever is later. In no event and notwithstanding any of the other provisions of this section, no amortization deduction Taxable Years Beginning in 1939 tary of the Navy made to the Commissioner, to the effect that under any such contract, reimbursement for all or a part of the cost of any emergency facility is Taxable Years Beginning before 1939 not provided for within the meaning of clause (1) or clause (2), shall be conclusive for the purposes of this subsection. Except in cases of applications therefor filed before December 1, 1941, the certificates provided for under this subsection shall have no effect unless an application therefor is filed either before the expiration of six months after the making of such contract o1 before the expiration of sixty days after the making of a certificate under subsection (f) whichever is later. The reports of negotiating and contracting officers and the certificates provided for in this subsection shall be issued under such regulations as may be prescribed from time to time by the Secretary of War and the Secretary of the Navy, with the approval of the Presi dent. The terms and conditions of contracts with reference to reimbursement of the cost of emergency facilities and the protecting of the United States with reference to the future use and disposition of such emergency facilities shall be made available to the public. § 4. The amendments made by this joint resolution to section 124 of the Internal Revenue Code shall be applicable as if they were a part of such section on the date of the enactment of the Second Revenue Act of 1940. Approved, October 30, 1941. (Repealed by H. J. R. 257 of Feb. 6, 1942) Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That, effective as of October 8, 1940, section 124 (i), as amended, of Internal Revenue Code, is hereby repealed. (Relative to Overpayments) Sec. 155 (j), R. A. of 1942, reads as follows: Sec. 155. (j) Overpayments. Where a tax paid under Chapter 1, Chapter 2B, or Chapter 2E of the Internal Revenue Code is in excess of the tax which would have been paid had section 124 of the Internal Revenue Code, as previously amended, been enacted on October 8, 1940, to read as amended by this section, then credit or refund of such excess may be made without interest, in accordance with the provisions of law applicable in the case of erroneous or illegal assessment or collection or overpayment of the tax. Taxable Years Beginning in 1943 Taxable Years Taxable Years shall be allowed in respect of any shall be allowed in respect of any shall be allowed in respect of any emergency facility for any taxable emergency facility for any taxable emergency facility for any taxable year year (C) unless a certificate in respect thereof under paragraph (1) shall have been made (i) prior to the filing of the taxpayer's return for such taxable year, or prior to the making of an election pursuant to subsection (d) (3) or subsection (d) (6) of this section to take the amortization deduction, or (ii) before December 1, 1941, whichever is later; or (D) in the case of an emergency facility completed or acquired by a corporation after December 31, 1939, and before June 11, 1940, unless a certificate in respect thereof under paragraph (1) shall have been made prior to the expiration of twelve months after the date of enactment of the Revenue Act of 1942; or year (C) unless a certificate in respect (C) unless a certificate in respect thereof under paragraph (1) shall thereof under paragraph (1) shall have been made (i) prior to the have been made (i) prior to the filing of the taxpayer's return for filing of the taxpayer's return for such taxable year, or prior to the such taxable year, or prior to the making of an election pursuant to making of an election pursuant to subsection (d) (3) or subsection subsection (d) (3) or subsection (d) (6) of this section to take the (d) (6) of this section to take the amortization deduction, or (ii) be- amortization deduction, or (ii) before December 1, 1941, whichever is fore December 1, 1941, whichever is later; or later; or (D) in the case of an emergency (D) in the case of an emergency facility completed or acquired by a facility completed or acquired by a corporation after December 31, corporation after December 31, 1939, and before June 11, 1940, 1939, and before June 11, 1940, unless α certificate in respect unless a certificate in respect thereof under paragraph (1) shall thereof under paragraph (1) shall have been made prior to the expira- have been made prior to the expiration of twelve months after the date tion of twelve months after the date of enactment of the Revenue Act of of enactment of the Revenue Act of 1942; or 1942; or (E) in the case of an emergency (E) in the case of an emergency (E) in the case of an emergency facility completed or acquired after facility completed or acquired after facility completed or acquired after December 31, 1939, and before December 31, 1939, and before December 31, 1939, and before January 1, 1943, by a person other January 1, 1943, by a person other January 1, 1943, by a person other than a corporation, unless a certif- than a corporation, unless a certif- than a corporation, unless a certificate in respect thereof under para-icate in respect thereof under para-icate in respect thereof under paragraph (1) shall have been made graph (1) shall have been made graph (1) shall have been made (i) prior to the expiration of nine (i) prior to the expiration of nine (i) prior to the expiration of nine months after the last date upon which an application for such certificate may be filed, or (ii) prior to the expiration of twelve months, after the date of enactment of the Revenue Act of 1942, whichever is later. months after the last date upon later. Sec. 124 (f) (3), I. R. C., said Act makes Sec. 124. (g) Depreciation de months after the last date upon which an application for such certificate may be filed, or (ii) prior to the expiration of twelve months, after the date of enactment of the Revenue Act of 1942, whichever is later. Sec. 124 (f) (3), I. R. C., supra, is shown as it was amended to read by Sec. 155 (e) (2), R. A. of 1942. Sec. 155 (i) of said Act makes amendment effective as of Oct. 8, 1940. For Sec. 124 (f) (3). I. R. C., as originally enacted by Sec. 302, Second R. A. of 1940, and subsequent amendments prior to above amendment made by Sec. 155 (e) (1), R. A. of 1942, see fn. 20, p. 354. Sec. 124. (g) Depreciation deSec. 124. (g) Depreciation deduction. If the adjusted basis of duction.-If the adjusted basis of duction. If the adjusted basis of the emergency facility computed the emergency facility computed the emergency facility computed without regard to subsection (f) without regard to subsection (f) without regard to subsection (f) of this section is in excess of the of this section is in excess of the of this section is in excess of the adjusted basis computed under adjusted basis computed under adjusted basis computed under such subsection, the deduction pro- such subsection, the deduction pro- such subsection, the deduction provided by section 23 (1) shall, de- vided by section 23 (1) shall, de- vided by section 23 (1) shall, despite the provisions of subsection spite the provisions of subsection spite the provisions of subsection (a) of this section, be allowed with (a) of this section, be allowed with respect to such emergency facility respect to such emergency facility as if its adjusted basis were an as if its adjusted basis were an amount equal to the amount of such amount equal to the amount of such (a) of this section, be allowed with respect to such emergency facility as if its adjusted basis were an amount equal to the amount of such excess. |