AMORTIZABLE BOND PREMIUM.

SEC. 13. AMORTIZABLE BOND PREMIUM. (a) Amortization of Premiums With Call Dates.— Section 171 (b) (relating to amortizable bond premium) is amended— (1) by striking out subparagraph (B) of paragraph (1) and inserting in lieu thereof the following: “(B) (i) with reference to the amount payable on maturity or on earlier call date, in the case of any bond other than a bond to which clause (ii) or (iii) applies, “(ii) with reference to the amount payable on maturity (or if it results in a smaller amortizable bond premium attributable to the period to earlier call date, with reference to the amount payable on earlier call date), in the case of any bond described in subsection (c) (1) (B) which is acquired after December 31, 1957, or “(iii) with reference to the amount payable on maturity, in the case of any bond described in subsection (c) (1) (B) which was acquired after January 22, 1954, and before January 1, 1958, but only if such bond was issued after January 22, 1951, and has a call date not more than 3 years after the date of such issue, and”; and (2) by striking out, in the second sentence of paragraph (2), the phrase “In the case of a bond described in subsection (c) (1) (B) issued after January 22, 1951, and acquired after January 22, 1954, which has a call date not more than 3 years after the date of such issue,” and inserting in lieu thereof the following: “In the case of a bond to which paragraph (1) (B) (ii) or (iii) applies and which has a call date,”. 72 Stat. 1611 (b) Effective Date.—The amendments made by subsection (a) shall apply with respect to taxable years ending after December 31, 1957.