[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.52-3]

[Page 439-440]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.52-3  Limitations with respect to certain persons.

    (a) Mutual savings institutions. In the case of an organization to 
which section 593 applies (that is, a mutual savings bank, a cooperative 
bank or a domestic building and loan association), the amount of the 
targeted jobs credit (new jobs credit in the case of wages paid before 
1979) allowable under section 44B shall be 50 percent of the amount 
otherwise determined under section 51, or, in the case of an 
organization under common control, under Sec. 1.52-1 (a) and (b).
    (b) Regulated investment companies and real estate investment 
trusts. In the case of a regulated investment company or a real estate 
investment trust subject to taxation under subchapter M, chapter 1 of 
the Code, the amount of the targeted jobs credit (new jobs credit in

[[Page 440]]

the case of wages paid before 1979) allowable under section 44B shall be 
reduced to the company's or trust's ratable share of the credit. The 
ratable share shall be determined in accordance with rules similar to 
the rules provided in section 46(e)(2)(B) and the regulations 
thereunder. For purposes of computing the ratable share, the reduction 
of the deduction for wage or salary expenses under Sec. 1.280C-1 shall 
not be taken into account.
    (c) Cooperatives--(1) Taxable years ending after October 31, 1978. 
For taxable years ending after October 31, 1978, in the case of a 
cooperative organization described in section 1381(a), rules similar to 
rules provided in section 46(h) and the regulations thereunder shall 
apply in determining the distribution of the amount of the targeted jobs 
credit (new jobs credit in the case of wages paid before 1979) allowable 
to the cooperative organization and its patrons under section 44B.
    (2) Taxable years ending before November 1, 1978. For taxable years 
ending before November 1, 1978, in the case of a cooperative 
organization described in section 1381(a), the amount of new jobs credit 
allowable under section 44B shall be reduced to the cooperative's 
ratable share of the credit. The ratable share shall be the ratio which 
the taxable income of the cooperative for the taxable year bears to its 
taxable income increased by the amount of the deductions allowed under 
section 1382 (b) and (c). For purposes of computing the ratable share, 
the reduction of the deduction for wage or salary expenses under 
Sec. 1.280C-1 shall not be taken into account.

(Secs. 44B, 381, and 7805 of the Internal Revenue Code of 1954 (92 Stat. 
2834, 26 U.S.C. 44B); 91 Stat. 148, 26 U.S.C. 381(c)(26); 68A Stat. 917, 
26 U.S.C. 7805)

[T.D. 7921, 48 FR 52906, Nov. 23, 1983]