26 U.S. Code § 597 - Treatment of transactions in which Federal financial assistance provided
The treatment for purposes of this chapter of any transaction in which Federal financial assistance is provided with respect to a bank or domestic building and loan association shall be determined under regulations prescribed by the Secretary.
In the case of any transaction not described in paragraph (1), the regulations prescribed under subsection (a) shall provide for the proper treatment of Federal financial assistance and appropriate adjustments to basis or other tax attributes in connection with such assistance.
For purposes of this section, the term “domestic building and loan association” has the meaning given such term by section 7701(a)(19) without regard to subparagraph (C) thereof.
 See References in Text note below.
Section 406 of the National Housing Act, referred to in subsec. (c)(1), which was classified to section 1729 of Title 12, Banks and Banking, was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.
Section 21A of the Federal Home Loan Bank Act, referred to in subsec. (c)(1), was classified to former section 1441a of Title 12, Banks and Banking, prior to repeal by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555.
Sections 11(f) and 13(c) of the Federal Deposit Insurance Act, referred to in subsec. (c)(2), are classified to sections 1821(f) and 1823(c), respectively, of Title 12.
1990—Subsec. (c). Pub. L. 101–508 substituted “For purposes of” for “The purposes of”.
Pub. L. 101–73, § 1401(a)(3)(A), amended section generally, substituting present provisions for former provisions which contained section catchline that read “FSLIC or FDIC financial assistance” and which provided: in subsec. (a) for an exclusion from gross income; in subsec. (b) for no reduction in basis of assets; in subsec. (c) for a reduction of tax attributes by 50 percent of amounts excludable under subsection (a); and in subsec. (d) for a definition of “domestic building and loan association”.
Subsec. (b)(2). Pub. L. 101–239 substituted “in connection with such assistance” for “to reflect such treatment”.
1988—Pub. L. 100–647, § 4012(b)(2)(D)(i), substituted “FSLIC or FDIC” for “FSLIC” in section catchline.
Subsec. (a). Pub. L. 100–647, § 4012(b)(2)(A), inserted at end “Gross income of a bank does not include any amount of money or other property received from the Federal Deposit Insurance Corporation pursuant to sections 13(c), 15(c)(1), and 15(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1821(f) and 1823(c)(1) and (c)(2)), regardless of whether any note or other instrument is issued in exchange therefor.”
Subsec. (b). Pub. L. 100–647, § 4012(b)(2)(C), substituted “association or bank” for “association”.
Subsec. (c). Pub. L. 100–647, § 4012(c)(1), added subsec. (c).
Subsec. (d). Pub. L. 100–647, § 4012(b)(2)(B), which directed amendment of section 597(b), as amended by section 4012(c)(1) of Pub. L. 100–647, by adding at the end thereof subsec. (d), was executed by adding subsec. (d) at the end of section 597, as amended by section 4012(c)(1) of Pub. L. 100–647, as the probable intent of Congress.
1986—Pub. L. 99–514, § 904(b)(1), (c)(2)(A), as amended by Pub. L. 100–647, title IV, § 4012(a)(2), which (applicable to transfers after Dec. 31, 1989, in taxable years ending after such date, with exceptions) directed repeal of this section, was repealed by Pub. L. 101–73, § 1401(b)(1), (c)(4), eff. Oct. 22, 1986, and I.R.C. of 1986 applicable as if the amendments made by such section had not been enacted.
Pub. L. 99–514, title IX, § 904(c)(2), Oct. 22, 1986, 100 Stat. 2385, as amended by Pub. L. 100–647, title IV, § 4012(a)(2), (c)(2), Nov. 10, 1988, 102 Stat. 3656, 3660, which provided that repeal of this section was to be applicable to transfers after Dec. 31, 1989, in taxable years ending after such date, with exceptions, and which related to clarification of treatment of amounts excluded under this section, was repealed by Pub. L. 101–73, title XIV, § 1401(a)(3)(B), (b)(1), Aug. 9, 1989, 103 Stat. 549.
Pub. L. 101–73, title XIV, § 1403, Aug. 9, 1989, 103 Stat. 551, which required the Secretary of the Treasury to submit annual reports to the Senate and to the Committee on Ways and Means of the House of Representatives on transactions with respect to which Federal financial assistance subject to this section was provided, terminated, effective May 15, 2000, pursuant to section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance. See, also, page 142 of House Document No. 103–7.
Written determinations for this section
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- Exemption of Insolvent Banks From Tax : 2016-04-01
- Limitation on Collection : 2016-04-01
- Associations v. Corporations : 2014-10-10
- Definition of Real Estate Investment Trust : 2014-10-10
- Basis to Corporations : 2014-10-10
- Taxable Transfers : 2014-10-10
- Extension of Time for Making Certain Elections : 2012-01-06
- Federal Financial Assistance Provided : 2012-01-06
- Deductions For Losses : 2001-05-11
- Depreciation : 2001-05-11
- Federal Financial Assistance Provided : 2001-05-11
- Abandonment Losses : 2000-12-15
- By Federal Savings and Loan Insurance Corp. : 2000-12-15
- Abandonment Losses : 2000-03-31
- By Federal Savings and Loan Insurance Corp. : 2000-03-31
- Abandonment Losses : 1999-08-20
- By Federal Savings and Loan Insurance Corp. : 1999-08-20
- Federal Financial Assistance Provided : 1999-06-04
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