INCOME TAXES PAID UNDER CONTRACT.

SEC. 92. INCOME TAXES PAID UNDER CONTRACT. (a) Amendment of 1939 Code.—Section 22 of the Internal Revenue Code of 1939 is amended by adding after subsection (o) the following new subsection: “(p) Income Taxes Paid Under Contract by One Corporation for another Corporation.— If— “(1) a contract was entered into before January 1, 1952, “(2) under the contract, one party (hereinafter referred to as the ‘payor’) is obligated to pay, or to reimburse another party (hereinafter referred to as the ‘payee’) for any part of the tax imposed by this chapter on the payee with respect to the income derived under the contract by the payee from the payor, and “(3) both the payor and the payee are corporations, then gross income of the payee shall not include any such payment or reimbursement other than the payment or reimbursement of the tax imposed by this chapter on the payee with respect to the income derived under the contract by the payee from the payor, determined without the inclusion of any such payment or reimbursement in gross income, and a deduction for all such payments or reimbursements shall be allowed to the payor but only to the extent that any such payment or reimbursement is attributable to an amount paid by the payor to the payee under the contract (other than any payment or reimbursement of the tax imposed by this chapter) which is allowable as a deduction to the payor. For purposes of this subsection, a contract shall be considered to have been entered into before January 1, 1952, if it is a renewal or continuance of a contract entered into before such date and if such renewal or continuance was made in accordance with an option contained in the contract on December 31, 1951. For purposes of this subsection, a contract includes a lease.” (b) Effective Date. etc.—The amendment made by subsection (a) shall apply with respect to taxable, years beginning after December 31, 1951, to which the Internal Revenue Code of 1939 applies. If refund or credit of any overpayment resulting from the application of the amendment made by subsection (a) of this section is prevented on the date of the enactment of this Act, or within 6 months from 72 Stat. 1668 such date, by the operation of any law or rule of law (other than section 3760 of the Internal Revenue Code of 1939 or section 7121 of the Internal Revenue Code of 1954, relating to closing agreements, and other than section 3761 of the Internal Revenue Code of 1939 or section 7122 of the Internal Revenue Code of 1954, relating to compromises), refund or credit of such overpayment may, nevertheless, be made or allowed if claim therefor is filed within 6 months from such date. No interest shall be paid on any overpayment resulting from the application of the amendment made by subsection (a) of this section.