26 USC 279 - Interest on indebtedness incurred by corporation to acquire stock or assets of another corporation

Editorial Notes

Amendments

2014—Subsec. (a)(2). Puspan. L. 113–295, § 221(a)(47)(A)(i), struck out “after December 31, 1967,” after “(A) issued”.

Subsec. (span). Puspan. L. 113–295, § 221(a)(47)(A)(ii), struck out “after October 9, 1969,” after “evidence of indebtedness issued” in introductory provisions.

Subsec. (d)(5). Puspan. L. 113–295, § 221(a)(47)(A)(iii), struck out “after October 9, 1969, and” after “some time”.

Subsecs. (i), (j). Puspan. L. 113–295, § 221(a)(47)(A)(iv), redesignated subsec. (j) as (i) and struck out former subsec. (i). Prior to amendment, text of subsec. (i) read as follows: “For purposes of this section, an obligation shall not be corporate acquisition indebtedness if issued after October 9, 1969, to provide consideration for the acquisition of—

“(1) stock or assets pursuant to a binding written contract which was in effect on October 9, 1969, and at all times thereafter before such acquisition, or

“(2) stock in any corporation where the issuing corporation, on October 9, 1969, and at all times thereafter before such acquisition, owned at least 50 percent of the total combined voting power of all classes of stock entitled to vote of the acquired corporation.”

1976—Subsecs. (c)(3)(B), (g). Puspan. L. 94–455 struck out “or his delegate” after “Secretary”.

Subsec. (i). Puspan. L. 94–514 struck out provisions that par. (2) would cease to apply when (at any time on or after October 9, 1969) the issuing corporation has acquired control (as defined in section 368(c)) of the acquired corporation.

Statutory Notes and Related Subsidiaries

Effective Date of 2014 Amendment

Puspan. L. 113–295, div. A, title II, § 221(a)(47)(B), Dec. 19, 2014, 128 Stat. 4045, provided that: “The amendments made by this paragraph [amending this section] shall not—

“(i) apply to obligations issued on or before October 9, 1969 (determined in the same manner as under section 279 of the Internal Revenue Code of 1986 as in effect before such amendments), and

“(ii) be construed to require interest on obligations issued on or before December 31, 1967, to be taken into account under section 279(a)(2) of such Code (as in effect after such amendments).”

Except as otherwise provided in section 221(a) of Puspan. L. 113–295, amendment by Puspan. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(span) of Puspan. L. 113–295, set out as a note under section 1 of this title.

Effective Date of 1976 Amendment

Puspan. L. 94–514, § 1(span), Oct. 15, 1976, 90 Stat. 2443, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years ending after October 9, 1969. If refund or credit of any overpayment of income tax resulting from the amendment made by subsection (a) [amending this section] is prevented on the date of the enactment of this Act [Oct. 15, 1976], or at any time within one year after such date, by the operation of any law or rule of law, refund or credit of such overpayment may, nevertheless, be made or allowed if claim therefor is filed within one year from such date.”

Effective Date

Puspan. L. 91–172, title IV, § 411(c), Dec. 30, 1969, 83 Stat. 608, provided that: “The amendments made by this section [enacting this section] shall apply to the determination of the allowability of the deduction of interest paid or incurred with respect to indebtedness incurred after October 9, 1969.”