WESTERN HEMISPHERE TRADE CORPORATIONS.

SEC. 1052. WESTERN HEMISPHERE TRADE CORPORATIONS. (a) Phaseout of Special Deduction for Western Hemisphere Trade Corporations.— Section 922 (special deduction for Western Hemisphere trade corporations) is amended by adding at the end thereof the following new subsection: “(b) Phaseout of Deduction.— In the ease of a taxable year beginning after December 31, 1975. and before January 1, 1980. the percent specified in subsection (a)(2)(A) shall be (in lieu of 14 percent) the percent specified in file following table: “For a taxable year beginning in— The percentage shall be— 1976 11 1977 8 1978 5 1979 2” 90 STAT. 1648 (b) Repeal of Western Hemisphere Trade Gwohatiox Deduction for Taxable Years Beginning After 1979.— Subpart C of part III of subchapter X of chapter 1 (relating to Western Hemisphere trade corporations) is hereby repealed. (c) Conforming Amendments.— (1) The first sentence of section 922 (relating to special deduction) is amended by striking out “In the case of” and inserting in lieu thereof the following: “(a) General Rule.— In the ease of.” (2) Section 170(b)(2) (relating to percentage limitations on charitable contributions in the case of corporations) is amended by adding “and” at the end of subparagraph (C). by striking out subparagraph (D). and by re designating subparagraph (E) as subparagraph (D). (3) Section 172(d) (relating to modifications for purposes of the net operating loss deduction) is amended by Striking out paragraph (5) and by redesignating paragraph (6) as paragraph (5). (4) Subsection (g) of section 907 is hereby repealed. (5) Section 1503 (relating to computation and payment of tax in the case, of consolidated returns) is amended by striking out subsection (b) and by striking out “(a) General Rule.—”. (6) Section 0091 (b)(2)(B)(ii) (relating to place for filing returns of corporations) is amended to read as follows: “(ii) corporations which claim the benefits of section 936 (relating to possession tux credit), and”. (7) The table of subparts for part TH of subchapter X of chapter 1 is amended by striking out the item relating to subpart C. (d) Effective Dates.— The amendments made by subsection (a) and paragraph (1) of subsection (c) shall apply with respect to taxable years beginning after December 31, 1975. The amendments made by subsection (b) and by subsection (c)(other than paragraph (1)) shall apply with respect to taxable years beginning after December 31, 1979.