AVERAGE BASE PERIOD NET INCOME-CHANGE IN PRODUCTS OR SERVICES.

SEC. 511. AVERAGE BASE PERIOD NET INCOME-CHANGE IN PRODUCTS OR SERVICES. Section 443 (f) (relating to change in products or services) is hereby amended to read as follows: “(f) Rules for Application of Section.— “(1) The benefits of this section shall not be allowed unless the taxpayer makes application therefor in accordance with section 447 (e). “(2) If after the end of the base period of the taxpayer there was a substantial change in the products produced by the taxpayer, such change shall, for the purpose of subsection (a) (1), be considered to have occurred on the last day of its base period if the taxpayer prior to July 1, 1950, commenced the construction of the facilities for the production of such new product, and if 65 Stat. 552 such construction and the production of such new product is in furtherance of a course of action to which the taxpayer (or a corporation with which the taxpayer has the privilege under section 141 of filing a consolidated return for its first taxable year under this subchapter) was committed prior to the close of the base period by contract with another person, which contract granted a license, franchise, or similar right essential for the production of such new product.”