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mination prior to such time as the final determination is proclaimed by the Secretary.

"(i) RULES FOR APPLICATION OF SECTION.-The benefits of this section shall not be allowed unless the taxpayer makes application therefor in accordance with section 447 (e). The determinations by the Secretary required under this section shall be made on the basis of returns regularly used by the Treasury Department in compiling published statistics from income tax returns. For the purposes of this section, rates of return shall be determined after giving effect to renegotiation of contracts in accordance with renegotiation statistics published in the statistics compiled with respect to industry subgroups.

"SEC. 447. INDUSTRY BASE PERIOD RATES OF RETURN.

"(a) BASE PERIOD YEARLY RATE OF RETURN.-The Secretary shall determine and proclaim for each industry classification in subsection (c) a rate of return (computed to the nearest thousandth) for each of the four years 1946 through 1949. The yearly rate of return for each industry classification shall be obtained by dividing the sum of the aggregate net income (computed without regard to the net operating loss deduction provided in section 23 (s)) and the aggregate interest deduction shown on the income tax returns filed by the corporations in such classification submitting balance sheets, by the aggre gate total assets of such corporations as of the close of the taxable year for which such returns were filed. Such aggregate net income, interest deduction and total assets for each such year shall include the amounts reported on the income tax returns for the calendar year and the amounts reported on returns for other taxable years the greater part of which falls in such calendar year. The determinations by the Secretary required under this section shall be made on the basis of returns regularly used by the Treasury Department in compiling published statistics from income tax returns, computing all rates of return after giving effect to renegotiation of contracts in accordance with renegotiation statistics published in the statistics compiled with respect to industry classifications.

"(b) BASE PERIOD RATE OF RETURN.-The Secretary shall determine and proclaim for each industry classification in subsection (c) a rate of return (computed to the nearest thousandth) for the four year period 1946 through 1949. Such base period rate of return for each industry classification shall be obtained by aggregating the net income and interest deduction (such amounts being determined as provided under subsection (a)) for such four years and dividing the aggregate by the sum of the total assets (determined as provided under subsection (a)) for such four years.

"(c) INDUSTRY CLASSIFICATION.-For purposes of this subchapter the classification of taxpayers by industry shall be as provided in the table below. Each such industry classification is defined in acccordance with the specifications shown in the Standard Industrial Classification Manual (prepared by the Division of Statistical Standards, Bureau of the Budget) for the major industry group or groups the numbers of which appear opposite such classification.

ABD

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Radio broadcasting, including facsimile broadcasting, and television__.
Motion pictures---

Amusement and recreation services except motion pictures_
Other services____

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80, 81, 82, 84, 86, and 89 "(d) TENTATIVE RATES OF RETURN.-The Secretary, not later than March 1, 1951, shall determine and proclaim for each industry classification, tentative base period yearly rates of return and a tentative base period rate of return (each computed to the nearest thousandth). Such tentative rates of return shall be effective until such time as the base period yearly rates of return and base period rates of return are determined and proclaimed. The base period yearly rates of return and base period rates of return, upon proclamation thereof by the Secretary, shall relate back as though such rates had been in effect in place of the tentative rates of return. If the application of section 442, 443, 444, 445, or 446 is made in accordance with tentative rates of return, such application shall be redetermined in accordance with the base period yearly rate of return or the base period rate of return when determined and proclaimed. The period of limitation prescribed under section 322 and sections 275 and 276 shall not begin to run with respect to overpayments or deficiencies in tax caused by such redetermination prior to such time as the base period yearly rates of return and the base period rates of return are determined and proclaimed by the Secretary.

"(e) APPLICATION FOR BENEFITS OF SECTION 442, 443, 444, 445, OR 446.-The tax for any taxable year under this subchapter shall be determined without regard to section 442, 443, 444, 445, or 446 unless an application for the benefits of such section, setting forth the grounds for the application of such section in such detail and in such manner as the Secretary may prescribe, is filed by the taxpayer

"(A) With its return for the taxable year, or

"(B) Within the period of time prescribed by section 322 (as extended under the last sentence of subsection (d) of this section or of section 446 (h)) for filing claim for credit or refund, and in such case the application of section 442, | 443, 444, 445, or 446, shall be subject to the limitations as to amount of credit or refund prescribed in section 322, or

"(C) After the period described in paragraph (B), if within the period of limitations for the assessment of a deficiency (as extended under the last sentence of subsection

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(d) of this section or of section 446 (h)) in the tax imposed by this chapter for the taxable year, and in such case the application of section 442, 443, 444, 445, or 446 shall not reduce the tax by an amount greater than the deficiency determined without regard to the application of such section, except that if a petition is filed with the Tax Court for the redetermination of the tax under this chapter for the taxable year, the application for the benefits of section 442, 443, 444, 445, or 446, shall be effective only if filed not later than the date on which such petition is filed. Section 442, 443, 444. 445, or 446, shall not be applied upon the basis of any grounds other than those set forth in an application filed within the period prescribed in this subsection.

"SEC. 448. EXCESS PROFITS CREDIT-REGULATED PUBLIC UTILITIES.

"(a) AMOUNT OF CREDIT.-In the case of a regulated public utility (as defined in subsection (d)), the excess profits credit for any taxable year computed under this section shall be the sum of the tax imposed by sections 13, 14, 15, and 141 (c), for such taxable year and the amount determined under subsection (b).

"(b) COMPUTATION.-The amount referred to in subsection (a) for any taxable year shall be determined as follows:

"(1) by applying to the sum of the following the per centum prescribed in subsection (c):

"(A) the adjusted invested capital for such taxable year, and

"(B) the average borrowed capital for such taxable year as defined in section 439.

For the purposes of this paragraph the adjusted invested capital for any taxable year shall be the amount computed for such year under section 437 (b) (2) without reduction by the amount of the net new capital addition and without regard to section 437 (b) (2) (C); except that in the case of a corporation described in subsection (c) (1) (A), (c) (1) (B), (c) (2), or (c) (4), the corporate books of account of which are maintained in accordance with systems of accounts prescribed by an appropriate regulatory body (or, if not so prescribed, are maintained in accordance with the uniform systems of accounts prescribed by the Federal Power Commission or the National Association of Railway and Utility Commissioners), the adjusted invested capital for such year shall be the sum of the average outstanding common and preferred capital stock accounts and the capital surplus and earned surplus accounts for such taxable year as recorded on such corporate books of account.

"(2) by reducing the amount ascertained under paragraph (1) by the deduction allowable for such year with respect to interest on indebtedness included in borrowed capital under section 439.

"(3) by reducing the amount ascertained under paragraph (2) by the amount computed under section 440 (b) (relating to inadmissible assets): except that in the case of a corporation described in subsection (c) (1) (A). (c) (1) (B), (c) (2), or (c) (4), the corporate books of account of which are maintained in accordance with systems of accounts prescribed by an appropriate regulatory body (or, if not so prescribed, are maintained in accordance with the uniform systems of accounts prescribed by the Federal Power

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Commission or the National Association of Railway and Utility Commissioners), in determining the amount computed under section 440, the amount attributable to each asset held at any time during such taxable year shall be determined according to such corporate books of account. "(c) The per centum referred to in subsection (b) (1) shall be— "(1) 6 per centum in the case of a corporation engaged in the furnishing or sale of—

"(A) electric energy, gas, water, or sewerage disposal services, or

"(B) transportation (not included in paragraph (3)) on an intrastate, suburban, municipal, or interurban electric railroad, on an intrastate, municipal, or suburban trackless trolley system, or on a municipal or suburban bus system, or "(C) transportation (not included in subparagraph (B)) by motor vehicle

if the rates for such furnishing or sale, as the case may be, have been established or approved by a State or political subdivision thereof, by an agency or instrumentality of the United States, or by a public service or public utility commission or other similar body of the District of Columbia or of any State or political subdivision thereof.

"(2) 6 per centum in the case of a corporation engaged as a common carrier in the furnishing or sale of transportation of gas by pipe line, if subject to the jurisdiction of the Federal Power Commission.

"(3) 6 per centum in the case of a corporation engaged as a common carrier in the furnishing or sale of transportation by railroad, or in the furnishing or sale of transportation of oil or other petroleum products (including shale oil) by pipe line, subject to the jurisdiction of the Interstate Commerce Commission.

"(4) 7 per centum in the case of a corporation engaged in the furnishing or sale of telephone or telegraph service, if the rates for such furnishing or sale meet the requirements of paragraph

"(5) 7 per centum in the case of a corporation engaged in the furnishing or sale of transportation as a common carrier by air, subject to the jurisdiction of the Civil Aeronautics Board.

"(6) 6 per centum in the case of a corporation engaged in the furnishing or sale of transportation by common carrier by water, subject to the jurisdiction of the Interstate Commerce Commission under Part III of the Interstate Commerce Act, or subject to the jurisdiction of the Federal Maritime Board under the Intercoastal Shipping Act, 1933.

"(d) For the purposes of this subchapter the term 'regulated public utility' means (except as provided in subsection (e)) a corporation described in subsection (c), but only if 80 per centum or more of its gross income (computed without regard to dividends and capital gains and losses) for the taxable year is derived from sources described in subsection (c). If the taxpayer establishes to the satisfaction of the Secretary that

"1) its revenue from regulated rates described in subsection (c) (1) or (4) and its revenue derived from unregulated rates

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