EXCESS PROFITS CREDIT BASED ON INCOME.

SEC. 602. EXCESS PROFITS CREDIT BASED ON INCOME. (a) Percentage of Average Base Period Net Income Taken Into Account.— (1) In general.—Paragraph (1) (A), and paragraph (2), of section 435 (a) (relating to excess profits credit based on income) are each amended by striking out “85 per centum” and inserting in lieu thereof “83 per centum.”. (2) Taxable years beginning before July 1, 1951, and ending after June 30, 1951.—Section 435 (a) is hereby amended by adding at the end thereof the following new paragraphs: “(4) Calendar year 1951.—In the case of a taxable year beginning on January 1, 1951, and ending on December 31, 1951. there shall be used, for the purposes of paragraph (1) (A) and paragraph (2), in lieu of 85 per centum of the average base period net income, an amount equal to 84 per centum of the average base period net income. “(5) Taxable years (Other than calendar year 1951) beginning before july 1, 1951, and ending after june 30, 1951.— In the case of any taxable year (other than a taxable year described in paragraph (4)) beginning before July 1, 1951, and ending after June 30, 1951, there shall be used, for the purposes of paragraph (1) (A) and paragraph (2), in lieu of 85 per centum of the average base period net income, an amount equal to the sum of— “(A) that portion of an amount equal to 85 per centum of the average base period net income which the number of days in such taxable year prior to July 1, 1951, bears to the total number of days in such taxable year, plus “(B) that portion of an amount equal to 83 per centum of the average base period net income which the number of days in such taxable year after June 30, 1951, bears to the total number of days in such taxable year.” (b) Effective Date.—The amendments made by subsection (a) shall be applicable only with respect to taxable years ending after June 30, 1951.