SECTIONS 24611-24612 - California Statutes

REVENUE AND TAXATION CODE

SECTION 24611-24612

24611. (a) Section 404(k) of the Internal Revenue Code, relating to
dividends paid deduction, shall apply to taxable years beginning on
or after January 1, 1995.
(b) For taxable years beginning on or after January 1, 1998,
Section 404(a)(9) of the Internal Revenue Code, relating to certain
contributions to employee ownership plans, is modified to provide
that Section 404(a)(9) of the Internal Revenue Code shall not apply
to an "S corporation."
(c) For taxable years beginning on or after January l, 1998,
Section 404(k)(1) of the Internal Revenue Code, relating to deduction
for dividends on certain employer securities, is modified to provide
that the phrase "a corporation" shall read "a C corporation."

24612. Sections 413(b)(6) and 413(c)(5) of the Internal Revenue
Code, relating to liability for funding tax, shall not apply.