MITIGATION OF EFFECT OF LIMITATIONS.

SEC. 59. MITIGATION OF EFFECT OF LIMITATIONS. (a) Circumstances of Adjustment.— Section 1312 (relating to circumstances of adjustment) is amended by renumbering paragraph (6) as (7), and by inserting after paragraph (5) the following new paragraph: “(6) Correlative deductions and credits for certain related corporations.—The determination allows or disallows a deduction (including a credit) in computing the taxable income (or, as the case may be, net income, normal tax net income, or surtax net income) of a corporation, and a correlative deduction or credit has been erroneously allowed, omitted, or disallowed, as the case may be, in respect of a related taxpayer described in section 1313 (c) (7).” (b) Adjustments Unaffected by Other Items.—The second sentence of section 1314 (c) (relating to certain adjustments for closed taxable years) is amended by striking out “Other than in the case of an adjustment resulting from a determination under section 1313 (a) (4), the” and inserting in lieu thereof “The”. (c) Effective Date.—The amendments made by subsections (a) and (b) shall apply to determinations (as defined in section 1313 (a)) made after November 14, 1954.