Chapter 129 - 1st Session H. R. 3885 AN ACT All 69 Stat. 83. To amend the Ac of April 29, 1941, to authorize the waiving of the requirement of performance and payment bonds in connection with certain Coast Guard contracts. contracts. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act of Armed Forces April 29, 1941, 55 Stat. 147 (40 U. S. C. 270e), is hereby amended to Waiver of read as follows: "The Secretary of the Army, the Secretary of the requirements, Navy, the Secretary of the Air Force, or the Secretary of the Treasury may waive the Act of August 24, 1935 (49 Stat. 793), with respect to 40 USC 270a-d cost-plus-a-fixed fee and other cost-type contracts for the construction, and notes. alteration, or repair of any public building or public work of the United States and with respect to contracts for the manufacturing, producing, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, munitions, materiel, or supplies of any kind or nature for the Army, Navy, Air Force, or Coast Guard, respectively, regardless of the terms of such contracts as to payment or title." Approved June 3, 1955. Renegotiation Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (a) of section 102 of the Renegotiation Act of 1951 (50 U. S. C., App extension. sec. 1212 (a)) is hereby amended by striking out "December 31, 1954" and inserting in lieu thereof "December 31, 1956". 68 Stat. 1116. SEC. 2. (a) Subsection (d) of section 102 of the Renegotiation Act of 1951 (50 U. S. C., App., sec. 1212 (d)) is hereby amended by 65 Stat. 8. inserting after "title" each place it appears "or would be subject to this title except for the provisions of section 106 (a) (8)”. (b) The amendments made by subsection (a) shall apply to contracts with the Departments and subcontracts only to the extent of the amounts received or accrued by a contractor or subcontractor after December 31, 1953. SEC. 3. (a) Section 106 (a) (8) of such Act (50 U. S. C., App., sec. 1216 (a) (8)) is hereby amended as follows: (1) By inserting after "a standard commercial article" in the first sentence thereof "or a standard commercial service"; (2) By inserting after "such article" each place it appears in the first and second sentences thereof "or such service"; (3) By striking out "and" at the end of subparagraph (C); and (5) By inserting after subparagraph (C) the following: "(D) the term 'service' means any processing or other operation performed by chemical, electrical, physical, or mechanical methods directly on materials owned by another person; "(E) the term 'standard commercial service' means a service which is customarily performed by more than two persons for general civilian industrial or commercial requirements, or is reasonably comparable with a service so performed; "(F) the term 'reasonably comparable' means of the same or a similar kind, performed with the same or similar materials, and having the same or a similar result, without necessarily involving identical operations; and". 68 Stat. 1117. 69 Stat. 447 (b) The amendments made by subsection (a) shall apply to contracts with the Departments and subcontracts only to the extent of the amounts received or accrued by a contractor or subcontractor after 69 Stat. 448. December 31, 1953. SEC. 4. (a) Section 106 (a) of such Act (50 U. S. C., App., sec. 1216 (a)) is hereby amended (1) by striking out the period at the end of paragraph (8) and inserting in lieu thereof"; or"; and (2) by adding at the end thereof a new paragraph as follows: "(9) any contract, awarded as a result of competitive bidding, for the construction of any building, structure, improvement, or facility, other than a contract for the construction of housing financed with a mortgage or mortgages insured under the provisions of title VIII of the National Housing Act, as now or here- 63 Stat. 570. after amended." 12 USC 1748 (b) The amendments made by subsection (a) shall apply only to et seq. contracts with the Departments made after December 31, 1954. SEC. 5. (a) Section 106 (c) (2) of such Act (50 U. S. C., App., sec. 1216 (c) (2)) is hereby amended to read as follows: All 69 Stat. 448. 65 Stat. 10. 50 USC app. 1213. Joint Committee on Internal Revenue Taxation. Stuty. Report. (2) DEFINITIONS.-For the purpose of this subsection, the term 'durable productive equipment' means machinery, tools, or other productive equipment, which has an average useful life of more than five years. (b) The amendment made by subsection (a) shall apply only with respect to fiscal years (as defined in section 103 (h) of the Renegotiation Act of 1951) ending on or after June 30, 1953. SEC. 6. (a) The Joint Committee on Internal Revenue Taxation, or any duly authorized subcommittee thereof, is hereby authorized and directed to make a complete study in order to determine— (1) whether there is any necessity of extending the Renegotiation Act of 1951 beyond December 31, 1956; and (2) if any such further extension is found necessary, the extent to which renegotiation of Government contracts should apply after such date. (b) The Joint Committee shall, not later than May 31, 1956, report to the Senate and the House of Representatives the results of the study conducted pursuant to this section, together with such recommendations as it deems necessary or desirable. (c) For the purpose of making the study and report required by this section, the Joint Committee, and the Chief of Staff of the Joint Committee, may exercise any of the powers conferred upon the Joint Committee and the Chief of Staff of the Joint Committee by sections 68A Stat. 927, 8021 and 8023 of the Internal Revenue Code of 1954. The provisions 328. of section 8023 (b)-of such Code shall apply to requests made under the authority of this subsection to the same extent as in the case of other requests made under the authority of section 8023 (a) of such Code. 26 USC 8021, 8023. Approved August 3, 1955. To amend section 3401 of the Internal Revenue Code of 1954. Be it enacted by the Senate and House of Representatives of the Inoome tax. United States of America in Congress assembled, That subdivision Collection at (a) of section 3401 of the Internal Revenue Code of 1954 is amended to read as follows: "SEC. 3401. DEFINITIONS. "(a) WAGES.-For purposes of this chapter, the term 'wages' means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remuneration paid in any medium other than cash; except that such term shall not include remuneration paid 66 "(1) for active service as a member of the Armed Forces of the United States performed in a month for which such member is entitled to the benefits of section 112; or "(2) for agricultural labor (as defined in section 3121 (g)); or "(3) for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority; or "(4) for service not in the course of the employer's trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is $50 or more and such service is performed by an individual who is regularly employed by such employer to perform such service. For purposes of this paragraph, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if “(A) on each of some 24 days during such quarter such individual performs for such employer for some portion of the day service not in the course of the employer's trade or business: or source on wages. 68A Stat. 455. 26 USC 3401. 69 Stat. 616, “(B) such individual was regularly employed (as deter- 69 Stat. 617. mined under subparagraph (A)) by such employer in the performance of such service during the preceding calendar quarter; or "(5) for services by a citizen or resident of the United States for a foreign government or an international organization; or "(6) for services performed by a nonresident alien individual, other than "(A) a resident of a contiguous country who enters and leaves the United States at frequent intervals; or "(B) a resident of Puerto Rico if such services are performed as an employee of the United States or any agency thereof; or "(7) for such services, performed by a nonresident alien individual who is a resident of a contiguous country and who enters and leaves the United States at frequent intervals, as may be designated by regulations prescribed by the Secretary or his delegate; or "(8) (A) for services for an employer (other than the United States or any agency thereof) – "(i) performed by a citizen of the United States if, at the time of the payment of such remuneration, it is reasonable to believe that such remuneration will be excluded from gross income under section 911; or "(ii) performed in a foreign country or in a possession of the United States by such a citizen if, at the time of the 69 Stat. 617. 69 Stat. 618. payment of such remuneration, the employer is required by the law of any foreign country or possession of the United States to withhold income tax upon such remuneration; or "(B) for services for an employer (other than the United States or any agency thereof) performed by a citizen of the United States within a possession of the United States (other than Puerto Rico), if it is reasonable to believe that at least 80 percent of the remuneration to be paid to the employee by such employer during the calendar year will be for such services; or (C) for services for an employer (other than the United States or any agency thereof) performed by a citizen of the United States within Puerto Rico, if it is reasonable to believe that during the entire calendar year the employee will be a bona fide resident of Puerto Rico; or "(9) for services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; or "(10) (A) for services performed by an individual under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution; or "(B) for services performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate consumers, under an arrangement under which the newspapers or magazines are to be sold by him at a fixed price, his compensation being based on the retention of the excess of such price over the amount at which the newspapers or magazines are charged to him, whether or not he is guaranteed a minimum amount of compensation for such services, or is entitled to be credited with the unsold newspapers or magazines turned back; or "(11) for services not in the course of the employer's trade or business, to the extent paid in any medium other than cash; or "(12) to, or on behalf of, an employee or his beneficiary (A) from or to a trust described in section 401 (a) which is exempt from tax under section 501 (a) at the time of such payment unless such payment is made to an employee of the trust as remuneration for services rendered as such employee and not as a beneficiary of the trust; or "(B) under or to an annuity plan which, at the time of such payment, meets the requirements of section 401 (a) (3), (4), (5), and (6)." Approved August 9, 1955. |