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TITLE 26-INTERNAL REVENUE CODE subsec. (g)(3)(C) of this section by section 1402(b)(1)(Y) of Pub. L. 94-455 is effective with re- spect to taxable years beginning in 1977. Amendment of subsecs. (c)(1) and (g) by section 1901(b)(3)(H), (32)(B)(iii) of Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see sec- tion 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EncrIvE DATE OF 1966 A MzrNT Amendment of subsec. (d)(4) of this section by Pub. L. 89-809 applicable with re&,)ect to sales or exchanges occurring after Dec. 31, 1966, see section 104(n) of Pub. L. 89-809, set out as Effective Date of 1966 Amendment note under section 11 of this title. EFFEcTIVE DATE Section 15(c) of Pub. L. 87-834 provided that: "The amendments made by this section (enacting this sec- tion] shall apply with respect to sales or exchanges oc- curring after December 31, 1962." ECONOMICALLY LESS DEvELOPED COUNTRIES Desirgnation of certain foreign countries as economi- cally less developed countries, see Ex. Ord. No. 11071, Dec. 27, 1962, 27 F.R. 12875, set out as a note under section 955 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 751, 4916 of this title. § 1249. Gain from certain sales or exchanges of pat- ents, etc., to foreign corporations (a) General rule Gain from the sale or exchange after Decem- ber 31, 1962, of a patent, an invention, model, or design (whether or not patented), a copy- right, a secret formula or process, or any other similar property right to any foreign corpora- tion by any United States person (as defined in section 7701(a)(30)) which controls such foreign corporation shall, if such gain would (but for the provisions of this subsection) be gain from the sale or exchange of a capital asset or of property described in section 1231, be consid- ered as ordinary income. (b) Control For purposes of subsection (a), control means, with respect to any foreign corporation, the ownership, directly or indirectly, of stock pos- sessing more that 50 percent of the total com- bined voting power of all classes of stock enti- tled to vote. For purposes of this subsection, the rules for determining ownership of stock prescribed by section 958 shall apply. (Added Pub. L. 87-834, § 16(a), Oct. 16, 1962, 76 Stat. 1045, and amended Pub. L. 89-809, title I, § 104(m)(3), Nov. 13, 1966, 80 Stat. 1563; Pub. L. 94-455, title XIX, § 1901(b)(3)(K), Oct. 4, 1976, 90 Stat. 1793.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455 substituted "ordi- nary income" for "gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231". 1966-Subsec. (a). Pub. L. 89-809 substituted "Gain" at the beginning of the subsec. for "Except as pro- vided in subsection (c), gain". EFFEcTivE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 effective for taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment by Pub. L. 89-809 applicable with re- spect to taxable years beginning after Dec. 31, 1966, see section 104(n) of Pub. L. 89-809, set out as an Ef- fective Date of 1966 Amendment note under section 11 of this title. EFFECTIVE DATE Section 16(c) of Pub. L. 87-834 provided that: "The amendments made by this section [enacting this sec. tion] shall apply to taxable years beginning after De- cember 31, 1962." § 1250. Gain from dispositions of certain depreciable realty (a) General rule Except as otherwise provided in this section- (1) Additional depreciation after December 31, 1975 (A) In general If section 1250 property is disposed of after December 31, 1975, then the applica- ble percentage of the lower of- (i) that portion of the additional depre- ciation (as defined in subsection (b)(1) or (4)) attributable to periods after Decem- ber 31, 1975, in respect of the property, or (ii) the excess of the amount realized (in the case of a sale, exchange, or involun- tary conversion), or the fair market value of such property (in-the case of any other disposition), over the adjusted basis of such property, shall be treated as gain which is ordinary income. Such gain shall be recognized not- withstanding rny other provision of this subtitle. (B) Applicable percentage For purposes of subparagraph (A), the term "applicable percentage" means- (i) in the case of section 1250 property with respect to which a mortgage is in- sured under section 221(d)(3) or 236 of the National Housing Act, or housing fi- nanced or assisted by direct loan or tax abatement under similar provisions of State or local laws and with respect to which the owner is subject to the restric- tions described in section 1039(b)(1)(B), 100 percent minus 1 percentage point for each full month the property was held after the date the property was held 100 full months; (ii) in the case of dwelling units which, on the average, were held for occupancy by families or individuals eligible to re- ceive subsidies under section 8 of the United States Housing Act of 1937, as amended, or under the provisions of State or local law authorizing similar levels of subsidy for lower-income families, 100 per- cent minus 1 percentage point for each full month the property was held after the date the property was held 100 full months; (iii) in the case of section 1250 property with respect to which a depreciation de- duction for rehabilitation expenditures was allowed under section 167(k), 100 per- cent minus 1 percentage point for each Page 705 § 1250