An Act relating to the credits against the employment tax in the case of certain successor employers and to provide an election for past taxable years with respect to the determination of gross income from mining in the case of quartzite and clay used in the production of refractory products
PL 87-321 (H.R.2585), enacted 09/26/1961

75 S T A T . ] 
PUBLIC LAW 8 7 - 3 2 1 - S E P T . 26, 1961 
683 
Public Law 87-321 
A N A C T 
September 26, 1961 
Relating to the credits against the employment tax in the case of certain sue- 
[H. R. 2585] 
cessor employers and to provide an election for iwst taxable years with respect 
to the determination of gross income from mining in the case of quartzlte and 
clay used in the production of refractory products. 
Federal U n e m -
ployment Tax Act, 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) section ^^ ^^ ^ ^ 
3302 of the Internal Revenue Code of 1954 (relating to credits against amendment 
tax imposed by Federal Unemployment Tax Act) is amended by add- 
^4 st&u 98o. 
ing at the end thereof the following new subsection: 
"(e) SUCCESSOR EMPLOYER.—Subject to the limits provided by sub-
section (c), if— 
"(1) an employer acquires during any calendar year substan-
tially all the property used in the trade or business of another 
pei-son, or used in a separate unit of a trade or business of such 
other person, and immediately after the acquisition employs in 
his trade or business one or more individuals w^ho immediately 
prior to the acquisition were employed in the trade or business 
of such other person, and 
"(2) such other person is not an employer for the calendar 
year in which the acquisition takes place, 
then, for the calendar year in which the acquisition takes place, in 
addition to the credits allowed under subsections (a) and (b), such 
employer may credit against the tax imposed by section 3301 for such 
year an amount equal to the credits which (without regard to subsec-
tion (c)) would have been allowable to such other person under sub-
sections (a) and (b) and this subsection for such year, if such other 
person had been an employer, with respect to remuneration subject to 
contributions under the unemployment compensation law^ of a State 
paid by such other person to the individual or individuals described 
in paragraph (1)." 
(b) The amendment made by subsection (a) shall apply with re-
spect to the calendar year 1961 and each calendar year thereafter. 
SEC. 2. ELECTION FOR QUARTZITE AND CLAY USED IN THE PRODUC-
TION OF REFRACTORY PRODUCTS. 
(a) ELECTION FOR PAST YEARS.—If an election is made under sub-
section (c), in the case of <iuartzite and clay used by the mine owner 
or operator in the production of refractory products, for the purpose 
of applying section 613 (c) of the Internal Revenue Code of 1954 (and 
^^ "^^ ^^^• 
corresponding provisions of the Internal Revenue Code of 1939) for 
each of the taxable years with respect to which the election is effec-
tive— 
(1) the term "ordinary treatment processes" shall include 
"Ordinary treat-
crushing, grinding, and separating the mineral from waste, but '"*'"' processes 
shall not include any subsequent process; and 
(2) the gross income from mining for each short ton of such 
quartzite or clay used in the production of all refractory products 
sold during the taxable year shall be equal to 87i/^ percent of the 
lesser of— 
(A) the average lowest published or advertised price, or 
(B) the average lowest actual selling price, 
at which, during the taxable year, the mine owner or operator 
offered to sell, or sold, such quartzite or clay (in the form and 
condition of such products after the application of only the 
684 
PUBLIC LAW 87-321-SEPT. 26, 1961 
[75 ST A T . 
26 u s e 7405. 
P u b l i c a t i o n In 
68A Stat. 3. 
S3 Stat. 1. 
processes described in paragraph (1) and before "transporta-
tion from the plant in which such processes were applied). For 
purposes of this paragraph, exceptional, unusual, or nominal 
sales or selling prices shall be disregarded. If the mine owner 
or operator makes no sales of, or makes only exceptional, un-
usual, or nominal sales of, such quartzite or clay after appli-
cation of only the processes described in paragraph (1), then 
in lieu of the price provided for in subparagraph (A) or (B) 
there shall be used the average lowest recognized selling price 
for the taxable year for such quartzite or clay in the marketing 
area of the mine owner or operator published in a trade journal or 
other industry publication, 
(b) YEARS TO "WHICH APPLICABLE.—An election made under subsec-
tion (c) to have the provisions of this section apply shall be effective 
on and after January 1, 1961, for all taxable years beginning before 
January 1, 1961, in respect of which— 
(1) the assessment of a deficiency, 
(2) the refund or credit of an overpayment, or 
(3) the commencement of a suit for recovery of a refund under 
section 7405 of the Internal Revenue Code of 1954, 
is not prevented on the date of the enactment of this Act by the 
operation of any law or rule of law. Such election shall also be 
effective on and after January 1,1951, for any taxable year beginning 
before January 1, 1961, in respect of which an assessment of a 
deficiency has been made but not collected on or before the date of 
the enactment of this Act. 
(c) TIME AND MANNER OF ELECTION.—^An election to have the 
provisions of this section apply shall be made by the taxpayer on or 
before the 60th day after the date of publication in the Federal Register 
of final regulations issued under authority of subsection (f), and shall 
be made in such form and manner as the Secretary of the Treasury 
or his delegate shall prescribe by regulations. Such election, if made, 
may not be revoked. 
(d) STATUTES OF LIMITATIONS.—Notwithstanding any other law, 
the period within which an assessment of a deficiency attributable to 
the election under subsection (c) may be made with respect to any 
taxable year for which such election is effective, and the period within 
which a claim for refund or credit of an overpayment attributable 
to the election under such subsection may be made with respect to 
any such taxable year, shall not expire prior to one year after the 
last day for making an election under subsection (c). An election by 
a taxpayer under subsection (c) shall be considered as a consent to the 
application of the provisions of this subsection. 
(e) TERMS ; APPLICABILITY OF OTHER LAWS.—Except where other-
wise distinctly expressed or manifestly intended, terms used in this 
section shall have the same meaning as when used in the Internal 
Revenue Code of 1954 (or corresponding provisions of the Internal 
Revenue Code of 1939) and all provisions of law shall apply with 
respect to this section as if this section were a part of such Code (or 
corresponding provisions of the Internal Revenue Code of 1939). 
(f) REGULATIONS.—The Secretary of the Treasury or his delegate 
shall prescribe such regulations as may be necessary to carry out the 
provisions of this section. 
Approved September 26, 1961.