DENIAL OF DISC BENEFITS WITH RESPECT TO ENERGY RESOURCES AND OTHER PRODUCTS.

SEC. 603. DENIAL OF DISC BENEFITS WITH RESPECT TO ENERGY RESOURCES AND OTHER PRODUCTS. (a) Amendment of Section 993(c)(2).— Section 993(c)(2) (relating to property excluded from export property) is amended by striking out “or” at the end of subparagraph (A), by striking out the period at the end of subparagraph (B) and inserting in lieu thereof “, or”, and by adding at the end thereof the following: “(C) products of a character with respect to which a deduction for depletion is allowable (including oil, gas, coal, or uranium products) under section 611, or “(D) products the export of which is prohibited or curtailed under section 4(b) of the Export Administration Act of 1969 (50 U.S.C. App. 2403(b)) to effectuate, the policy set forth in paragraph (2)(A) of section 3 of such Act (relating to the protection of the domestic economy). Subparagraph (C) shall not apply to any commodity or product at least 50 percent of the fair market value of which is attributable to manufacturing or processing, except that subparagraph (C) shall89 STAT. 65 apply to any Primary product from oil, gas, coal, or uranium. For purposes of the preceding sentence, the term ‘processing’ does not include extracting or handling, packing, packaging, grading, storing, or transporting.’ (b) Effective Date.—The amendments made by subsection (a) shall apply to sales, exchanges, and other dispositions made after March 18, 1975, in taxable years ending after such date.