Sec. 712 (b), I. R. C., amended by Sec. 212 (a), R. A. of 1942, to read as above. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941.

Sec. 712 (c), I. R. C., supra, repealed by Sec. 224 (b) R. A. of 1942. Sec. 224 (c) of said Act makes repeal applicable to taxable years beginning after Dec. 31, 1939.

For Sec. 712 (b) and (c), I. R. C., before amendment and repeal, respectively, see 1942 column.

Sec. 712. (d) Special rule in connection with certain reorganizations. For the existence of taxpayer through component corporation, see section 740 (f).

Sec. 712 (d), I. R. C., supra, added to I. R. C. by Sec. 228

Taxable Years Beginning in 1942

therein, the excess profits credit for any taxable year shall be an amount computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed. In the case of all other foreign corporations the excess profits credit for any taxable year shall be an amount computed under section 714.

See. 712. (e) Effect of disclaimer of credit. If the taxpayer states in its return for the taxable year under this subchapter that it dis claims the use of the credit com puted under section 713 or the use of the credit computed under see tion 714, the credit so diselaimed shall not, for the purposes of the internal revenue laws, be applicable to the computation of the tax under this subchapter for such taxable year.

Sec. 712 (b), I. R. C., amended by Sec. 212 (a), R. A. of 1942, by omitting language shown in stricken through type. Sec. 101 of said Act makes amendment applicable to taxable years beginning after Dec. 31, 1941.

Sec. 712 (c), I. R. C., supra, repealed by Sec. 224 (b) R. A. of 1942. Sec. 224 (c) of said Act makes repeal applicable to taxable years beginning after Dec. 31, 1939.

Taxable Years Beginning in 1941

therein, the excess profits credit for any taxable year shall, at the elee tion of the taxpayer in its return for such taxable year, be an amount computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed. In the case of all other such foreign corporations the excess profits credit for any taxable year shall be an amount computed under section 714. In the ease of a foreign corporation which for any taxable year does not file a return before the expire tion of the time prescribed by law for filing such return, the excess profits credit for such taxable year shall be an amount computed under Section 714.

See. 712. (e) Effect of disclaimer of credit. If the taxpayer states in its return for the taxable year under this subchapter that it die claims the use of the credit computed under section 713 or the wee of the credit computed under see tion 714, the credit so diselaimed shall not, for the purposes of the internal revenue laws, be applicable to the computation of the tax under this subchapter for such taxable year

Sec. 712 (a) and (b), I. R. C., shown in ordinary type before omission of language in stricken through ordinary type and addition of language in italics, added to I. R. C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 710 (a), L R. C., makes amendment applicable to taxable years beginning after Dec. 31, 1939.

Sec. 712 (a) and (b), I. R. C., amended by Sec. 13, Excess Profits Tax Amendments of 1941, by omitting language shown in stricken through ordinary type and adding language shown in italics, and also by adding subsection (c) shown in italics. Sec. 17 of said Act makes amendment effective as of Oct. 8, 1940, the date of enactment of Excess Profits Tax Act of 1940.

Sec. 712 (c), I. R. C., supra, repealed by Sec. 224 (b) R. A. of 1942. Sec. 224 (c) of said Act makes repeal applicable to taxable years beginning after Dec. 31, 1939.

Sec. 712 (d), I. R. C., supra, added to I. R. C. by Sec. 228

Retroactivity

See Sec. 712 (d), I. R. C., in 1942 column and fn. 24.

Taxable Years Beginning in 1940

therein, the excess profits credit for any taxable year shall, at the oleo tion of the taxpayer in its return for such taxable year, be an amount computed under section 713 or section 714, whichever amount results in the lesser tax under this subchapter for the taxable year for which the tax under this subchapter is being computed. In the case of all other such foreign corporations the excess profits credit for any taxable year shall be an amount computed under section 714. In the case of a foreign corporation which for any taxable year does not file a return before the expira tion of the time prescribed by law for filing such return, the excess profite credit for such taxable year shall be an amount computed under Section 714.

See. 712. (e) Effect of disclaimer of credit. If the taxpayer states in its return for the taxable year under this subchapter that it die claims the use of the credit com puted under section 713 or the use of the credit computed under voo tion 714, the credit so diselaimed shall not, for the purposes of the internal revenue laws, be applicable to the computation of the tax undor this subchapter for such taxable year

Sec. 712 (a) and (b), I. R. C., shown in italics before omission of language in stricken through italics and addition of language in underlined italics, added to I. R. C. by Sec. 201. Excess Profits Tax Act of 1940. Sec. 710(a), I. R. C., makes amendment applicable to taxable years beginning after Dec. 31, 1939.

Sec. 712 (a) and (b), I. R.
C., amended by Sec. 13, Ex-
cess Profits Tax Amendments
of 1941, by omitting language
shown in stricken through
italics and adding language
showm in underlined italics,
and also by adding subsec-

tion (c) shown in italics.
Sec. 17 of said Act makes
amendment effective as of
Oct. 8, 1940, the date of en-
actme nt of Excess

Tax Act of 1940.

Profits

Sec. 712 (c), I. R. C., supra, repealed by Sec. 224(b) R. A. of 1942. Sec. 224 (c)

said

Act

of

makes repeal

applicable to taxable years
beginning after Dec. 31, 1939.

Sec. 712. (d) Special rule in connection with certain reorganizations.

Retroactivity

See Sec. 712 (d), I. R. C., in 1942 column and fn. 24,

Taxable Years Beginning in 1943

(e) (1), R. A. of 1942. Sec.
228 (f) of said Act makes
amendment applicable only to
the computation of the tax
for taxable years beginning
after Dec. 31, 1941, with the
exceptions enumerated in fn.
24, below, relative to retro-
active application.

Sec. 713. Excess profits credit based on income.

Taxable Years Beginning in 1941

below, regarding retroactivity of amendment inserting Sec. 712 (d), I. R. C., by Sec. 228 (e) (1), R. A. of 1942.

Sec. 713. Excess profits credit based on income.

Sec. 713. (a) Amount of excess profits credit.-The excess profits credit for any taxable year, computed under this section, shall be

Sec. 713. (a) (1) Domestic cor

(A) 95 per centum of the average base period net income,

(B) Plus 8 per centum of the net capital addition as defined in subsection (g), or

(C) Minus 6 per centum of the net capital reduction as defined in subsection (g).

Sec. 713. (a) (2) Foreign corporations. In the case of a foreign corporation, 95 per centum of the average base period net income.

Sec. 713 (a), I. R. C., supra, amended by Sec. 228 (e) (2), R. A. of 1942, to read as above. Sec. 228 (f) of said Act makes amendment applicable only to the computation of the tax for taxable years beginning after Dec. 31, 1941, with the exceptions enumerated in fn. 24, below, relative to retroactive application.

For Sec. 713 (a), I. R. C., before amendment, see 1942 column.

tic corporation

24 Sec. 228 (f), R. A. of 1942 (in referring to amendments made by Sec. 228, R. A. of 1942, to Secs. 712, 713 (a) (1) (A), 740, 742 and 743, I. R. C.) provided as follows:

Sec. 228. (f) Taxable years to which amendments applicable. The amendments made by this section shall be applicable only to the computation of the tax for taxable years beginning after December 31, 1941, except that (1) the last sentence of section 740 (c), as added by subsection (a) of this section shall be applicable to the computation of the tax for all taxable

tic corporation

(A) 95 per centum of the average base period net income, as defined in subsection (d) (b),

(B) Plus 8 per centum of the net capital addition as defined in subsection (g) (e), or

(C) Minus 6 per centum of the net capital reduction as defined in subsection (g) te).

Sec. 713. (a) (2) Foreign corporations. In the case of a foreign corporation, 95 per centum of the average base period net income.

Sec. 713 (a), I. R. C., supra, before omission of stricken through letters "(b)" and "(c)" and addition of italicized letters "(d)" and "(g)," added to I. R. C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 710 (a), I. R. C., makes amendment applicable to taxable years ending after Dec. 31, 1939.

Sec. 713 (a), I. R. C., supra, amended by Sec. 4, Excess Profits Tax Amendments of 1941, by omitting "(b)" and substituting in lieu thereof "(d)" and by omitting "(c)" and substituting in lieu thereof "(g)." Sec. 17 of said Act makes amendment effective as of Oct. 8, 1940, the date of the enactment of Excess Profits Tax Act of 1940.

Retroactivity

See 713 (a) (1), I. R. C., in 1942 column and fn. 24, below. regarding retroactivity of amendment of Sec. 713 (a) (1), I. R. C., by Sec. 228 (e) (2), R. A. of 1942

years beginning after December 31, 1939, and (2) if a taxpayer, within the time and in the manner and subject to such regulations as the Commissioner with the approval of the Secretary prescribes, elects to have such amendments (except those which by their terms are limited to taxable years beginning after December 31, 1941, and except that referred to in clause (1)) apply retroactively to all taxable years of the taxpayer beginning after December 31, 1939, such amendments shall also be applicable to the computation of the tax for taxable years beginning after December 31, 1939.

Taxable Years Beginning in 1940

of

regarding retroactivity amendment inserting Sec. 712 (d), I. R. C., by Sec. 228 (e) (1), R., A. of 1942.

Taxable Years Beginning in 1939

Taxable Years Beginning before 1939

Sec. 713. Excess profits credit based on income.

Sec. 713. (a) Amount of excess profits credit.-The excess profits credit for any taxable year, computed under this section, shall be—

Sec. 713. (a) (1) Domestic corporations. In the case of a domestie corporation

(A) 95 per centum of the average base period net income, as defined in subsection (d) (b),

(B) Plus 8 per centum of the net capital addition as defined in subsection (g) (e), or

(C) Minus 6 per centum of the net capital reduction as defined in subsection (g) fot.

Sec. 713. (a) (2) Foreign corporations. In the case of a foreign corporation, 95 per centum of the average base period net income.

Sec. 713 (a), I. R. C., supra, shown in italics before omission of stricken through italicized letters "(b)" and "(c)" and addition of underlined italicized letters "(d)" and "(g)," added to I. R. C. by Sec. 201, Excess Profits Tax Act of 1940. Sec. 710(a), I. R. C., makes amendment applicable to taxable years ending after Dec. 31, 1939.

Sec. 713 (a), I. R. C., supra, amended by Sec. 4, Excess Profits Tax Amendments of 1941, by omitting "(b)" and substituting in lieu thereof "(d)" and by omitting "(c)" and substituting in lieu thereof "(g)." Sec. 17 of said Act makes amendment effective as of Oct. 8, 1940, the date of the enactment of Excess Profits Tax Act of 1940.

Retroactivity

See 713 (a) (1), I. R. C., in 1942 column and fn. 24, p. 776, regarding retroactivity of amendment of Sec. 713 (a) (1), I. R. C., by Sec. 228 (e) (2), R. A. of 1942.