NONTAXABLE INCOME FROM CERTAIN MINING PROPERTIES.

SEC. 515. NONTAXABLE INCOME FROM CERTAIN MINING PROPERTIES. Section 453 (relating to nontaxable income from exempt excess output) is hereby amended as follows: (a) By amending the first sentence of subsection (a) (13) thereof to read as follows: “The term ‘unit net income’ means the amount ascertained by dividing the net income (computed with the allowance for depletion) from the coal, ore, sulphur, potash, metallurgical grade limestone, chemical grade limestone, or timber recovered from the mineral property, or timber block, as the case may be, during the taxable year by the number of units of such mineral or timber recovered from such property in such year.” (b) By inserting immediately after the words “coal mining property” in subsection (b) (2) thereof the following: “, or of a sulphur, potash, metallurgical grade limestone, or chemical grade limestone mineral property,”. (c) By striking out so much of subsection (b) (4) as precedes the second sentence and inserting in lieu thereof the following: “(4) Certain properties not in operation during normal period.—For any taxable year, the nontaxable income from exempt excess output of a metal or coal mining property, of a 65 Stat. 553 sulphur, potash, metallurgical grade limestone, or chemical grade limestone mineral property, of a timber block, or of a natural gas property, which was not in operation during the normal period, shall be an amount equal to one-third of the net income for such taxable year (computed with the allowance for depletion) from such property or timber block, as the case may be.”