26 U.S.C. § 597
§ 597. Treatment of transactions in which Federal financial assistance provided
No plain-English explainer yet. Below is the official text. Explainers are being added section by section.
History
Added in 1981 by the Economic Recovery Tax Act of 1981. Last changed March 23, 2018 by the Consolidated Appropriations Act, 2018.
Every change, newest first (7)
- March 23, 2018Consolidated Appropriations Act, 2018
- November 5, 1990Omnibus Budget Reconciliation Act of 1990
- December 19, 1989Omnibus Budget Reconciliation Act of 1989
- August 9, 1989Public Law 101-73
- November 10, 1988Technical and Miscellaneous Revenue Act of 1988
- October 22, 1986Tax Reform Act of 1986
- August 13, 1981Economic Recovery Tax Act of 1981 · added this section
The law as written
Current through Public Law 119-102. Amendment notes omitted.
Structure
The treatment for purposes of this chapter of any transaction in which Federal financial assistance is provided with respect to a bank or domestic building and loan association shall be determined under regulations prescribed by the Secretary.
In the case of any acquisition of assets to which section 381(a) does not apply, the regulations prescribed under subsection (a) shall—
provide that Federal financial assistance shall be properly taken into account by the institution from which the assets were acquired, and
provide the proper method of allocating basis among the assets so acquired (including rights to receive Federal financial assistance).
In the case of any transaction not described in paragraph (1), the regulations prescribed under subsection (a) shall provide for the proper treatment of Federal financial assistance and appropriate adjustments to basis or other tax attributes in connection with such assistance.
No regulations prescribed under this section shall permit the utilization of any deduction (or other tax benefit) if such amount was in effect reimbursed by nontaxable Federal financial assistance.
For purposes of this section, the term “Federal financial assistance” means—
any money or other property provided with respect to a domestic building and loan association by the Federal Savings and Loan Insurance Corporation or the Resolution Trust Corporation pursuant to section 406(f) of the National Housing Act (or under any other similar provision of law), and
any money or other property provided with respect to a bank or domestic building and loan association by the Federal Deposit Insurance Corporation pursuant to section 11(f) or 13(c) of the Federal Deposit Insurance Act (or under any other similar provision of law),
regardless of whether any note or other instrument is issued in exchange therefor.
For purposes of this section, the term “domestic building and loan association” has the meaning given such term by section 7701(a)(19) without regard to subparagraph (C) thereof.