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TITLE 26-INTERNAL REVENUE CODE southwestward to 7" N Lat., 105" E Long.; thence west- ward to 7" N Lat., 103" E Long.; thence northward to 9-30' N Lat., 103" E Long.; thence northeastward to 10-15' N Lat., 104-27' E Long.; thence northward to a point on the West Coast of Vietnam at the Juncture of Vietnam with Cambodia. The date of the commencing of combatant activities in such area is hereby designated as January 1. 1964. LYNDON B. JOHNSON. CROSS REFERENCES Additional estate taxes inapplicable to members of armed forces dying in combat zone or by reason of combat-zone-incurred wounds, etc., see section 2201 of this title. Communications excise tax, exemption from, see sec- tion 4253 of this title. Income taxes on members of armed forces on death, see section 692 of this title. Sale or exchange of residence, see section 1034 of this title. Time for performing certain acts postponed by reason of war, see section 7508 of this title. Wages as not including remuneration paid to mem- bers of armed services entitled to benefits of this sec- tion, see section 3401 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2, 692, 2201, 3401, 4253, 6013, 7508 of this title; title 5 section 6326. § 113. Mustering-out payments for members of the Armed Forces Gross income does not include amounts re- ceived during the taxable year as mustering-out payments with respect to service in the Armed Forces of the United States. (Aug. 16, 1954, ch. 736, 68A Stat. 35.) § 114. Sports programs conducted for the American National Red Cross (a) General rule In the case of a taxpayer which is a corpora- tion primarily engaged in the furnishing of sports programs, gross income does not include amounts received as proceeds from a sports pro- gram conducted by the taxpayer if- (1) the taxpayer agrees in writing with the American National Red Cross to conduct such sports program exclusively for the benefit of the American National Red Cross; (2) the taxpayer turns over to the American National Red Cross the proceeds from such sports program, minus the expenses paid or incurred by the taxpayer- (A) which would not have been so paid or incurred but for such sports program, and (B) which would be allowable as a deduc- tion under section 162 (relating to trade or business expenses) but for subsection (b) of this section; and (3) the facilities used for such program are not regularly used during the taxable year for the conduct of sports programs to which this subsection applies. For purposes of this subsection, the term "pro- ceeds from such sports program" includes all amounts paid for admission to the sports pro- gram, plus all proceeds received by the taxpay- er from such program or activities carried on in connection therewith. (b) Treatment of expenses Expenses described in subsection (a)(2) shall be allowed as a deduction under section 162 only to the extent that such expenses exceed the amount excluded from gross income by sub- section (a) of this section. (Aug. 16, 1954, ch. 736, 68A Stat. 35.) CROSS REFERL.1CES American National Red Cross, see section 1 et seq. of Title 36, Patriotic Societies and Observances. § 115. Income of states, municipalities, etc. Gross income does not include- (1) income derived from any public utility or the exercise of any essential governmental function and accruing to a State or any politi- cal subdivision thereof, or the District of Co- lumbia; or (2) income accruing to the government of any possession of the United States, or any political subdivision thereof. (Aug. 16, 1954, ch. 736, 68A Stat. 35; Oct. 4, 1976, Pub. L. 94-455, title XIX, § 1901(a)(19), 90 Stat. 1766.) AMENDMENTS 1976-Pub. L. 94-455 struck out "(a) General rle" which preceded "Gross income does not include", struck out subsecs. (b) and (c), which related to con- tracts concerning public utilities made before Sept. 8, 1916, and contracts concerning bridge acquisition made before May 29, 1928, respectively, and in par. (1) of former subsec. (a), struck out "or territory" which followed "accruing to a State". EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 applicable with re- spect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Ef- fective Date of 1976 Amendment note under section 2 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 501 of this title. § 116. Partial exclusion of dividends received by indi- viduals (a) Exclusion from gross income Gross income does not include amounts re- ceived by an individual as dividends from do- mestic corporations, to the extent that the divi- dends do not exceed $100. If the dividends re- ceived in a taxable year exceed $100, the exclu- sion provided by the preceding sentence shall apply to the dividends first received in such year. (b) Certain dividends excluded Subsection (a) shall not apply to any dividend from- (1) a corporation organized under the China Trade Act, 1922 (see sec. 941); (2) a corporation which, for the taxable year of the corporation in which the distribu- tion is made, or for the next preceding tax- able year of the corporation, is a corporation exempt from tax under section 501 (relating to certain charitable, etc., organizations) or section 521 (relating to farmers' cooperative associations); or (3) a real estate investment trust which, for the taxable year of the trust in which the Page 123 § 116