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TITLE 26-INTERNAL REVENUE CODE (c) Exceptions Subsections (a) and (b) shall not apply to amounts allowable as deductions (without regard to this section) attributable to a grove, orchard, or vineyard which was replanted after having been lost or damaged (while in the hands of the taxpayer) by reason of freezing temperatures, disease, drought, pests, or casual- ty. (Added Pub. L. 91-172, title II, § 216(a), Dec. 30, 1969, 83 Stat. 573, and amended Pub. L. 91-680, § 1(a), (b), (d), Jan. 12, 1971, 84 Stat, 2064; Pub. L. 94-455, title II, §207(b)(1), (2), Oct. 4, 1976, 90 Stat. 1538.) AMENDMENTS 1976.-Pub. L. 94-455, § 207(b)(2)(A), added "; certain capital expenditures of farming syndicates" in the sec- tion catchline. Subsec. (a). Pub. L. 94-455, § 207(b)(2)(B), substitut- ed "subsection (c)" for "subsection (b)". Subsec. (b). Pub. L. 94-455, § 207(b)(1), added subsec. (b). Former subsec. (b) redesignated as (c) and amend- ed. Subsec. (c). Pub. L. 94-455, § 207(b)(1), redesignated subsec. (b) as (c) and in subsec. (c) as so redesignated added references to subsec. (b) and to orchards and vineyards and struck out provisions making particular references to citrus or almond groves planted or re- planted before Dec. 30, 1969, in the case of citrus groves, or before Dec. 30, 1970, in the case of almond groves. 1971-Pub. L. 91-680, § 1(b), added "and almond" fol- lowing "citrus" in the section catchline. Subsec. (a). Pub. L. 91-680, § l(a), added "or almond" following "citrus" wherever appearing therein. Subsec. (b). Pub. L. 91-680, § l(a), added "or almond" following "citrus". Subsec. (b)(2). Pub. L. 91-680, § 1(d), substituted "before (A) December 30, 1969, in the case of a citrus grove, or (B) December 30, 1970, in the case of an almond grove" for "prior to the enactment of this sec- tion". EFFECTIVE DATE OF 1976 AMENDMENT Section 207(b)(3) of Pub. L. 94-455 provided that: "The amendments made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 1975. The amendments made by this subsection shall not apply in the case of a grove, orchard, or vineyard referred to in the amendment made by subsection (b)(1) [which redesignated subsec. (b) as (c), added subsec. (b), and amended subsec. (c) as so redesignated] which was planted or replanted on or before December 31, 1975. For purposes of the pre- ceding sentence, a tree or vine which, on or before De- cember 31, 1975, was planted at a place other than the grove, orchard, or vineyard of the taxpayer but which, on such date, was owned by the taxpayer (or with re- spect to which the taxpayer had a binding contract to purchase) shall be treated as planted on December 31, 1975, in the grove, orchard, or vineyard of the taxpay- er." EFFECTIVE DATE OF 1971 AMENDMENT Section 2 of Pub. L. 91-680 provided that: "The amendments made by the first section of this Act [amending this section] shall apply to taxable years beginning after the date of the enactment of this Act [Jan. 12, 1971]." EFFECTIVE DATE Section 216(c) of Pub. L. 91-172 provided that: "The amendments made by this section [enacting this sec- tion] shall apply to taxable years beginning after De- cember 31, 1969." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 464 of this title. § 279. Interest on indebtedness incurred by corpora- tion to acquire stock or assets of another corpo- ration (a) General rule No deduction shall be allowed for any interest paid or incurred by a corporation during the taxable year with respect to its corporate acqui- sition indebtedness to the extent that such in- terest exceeds- (1) $5,000,000, reduced by (2) the amount of interest paid or incurred by such corporation during such year on obli- gations (A) issued after December 31, 1967, to provide consideration for an acquisition de- scribed in paragraph (1) of subsection (b), but (B) which are not corporate acquisition in- debtedness. (b) Corporate acquisition indebtedness For purposes of this section, the term "corpo- rate acquisition indebtedness" means any obli- gation evidenced by a bond, debenture, note, or certificate or other evidence of indebtedness issued after October 9, 1969, by a corporation (hereinafter in this section referred to as "issu- ing corporation") if- (1) such obligation is issued to provide con- sideration for the acquisition of- (A) stock in another corporation (herein- after in this section referred to as "acquired corporation"), or (B) assets of another corporation (herein- after in this section referred to as "acquired corporation") pursuant to a plan under which at least two-thirds (in value) of all the assets (excluding money) used in trades and businesses carried on by such corpora- tion are acquired, (2) such obligation is either- (A) subordinated to the claims of trade creditors of the issuing corporation general- ly, or (B) expressly subordinated in right of payment to the payment of any substantial amount of unsecured indebtedness, whether outstanding or subsequently issued, of the issuing corporation, (3) the bond or other evidence of indebted- ness is either- (A) convertible directly or indirectly into stock of the issuing corporation, or (B) part of an investment unit or other ar- rangement which includes, in addition to such bond or other evidence of indebted- ness, an option to acquire, directly or indi- rectly, stock in the issuing corporation, and (4) as of a day determined under subsection (c)(1), either- (A) the ratio of debt to equity (as defined in subsection (c)(2)) of the issuing corpora- tion exceeds 2 to 1, or (B) the projected earnings (as defined in subsection (c)(3)) do not exceed 3 times the annual interest to be paid or incurred (de- termined under subsection (c)(4)). (c) Rules for application of subsection (b)(4) For purposes of subsection (b)(4)- Page 223 § 279