Reg. § 1.52-3 Limitations with respect to certain persons.
(a) Mutual savings institutions In the case of an organization to which section 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 shall be 50 percent of the amount otherwise determined under section , or, in the case of an organization under common control, under and .
(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 the case of wages paid before 1979) allowable under section 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 and the regulations thereunder. For purposes of computing the ratable share, the reduction of the deduction for wage or salary expenses under 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 , rules similar to rules provided in section 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 .
(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 , the amount of new jobs credit allowable under section 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 (b) and (c). For purposes of computing the ratable share, the reduction of the deduction for wage or salary expenses under 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]