Inflation Adjusted Items for Certain Years

For inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.

Editorial Notes
References in Text

The date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, referred to in subsec. (n)(1), is the date of enactment of Pub. L. 111–5, which was approved Feb. 17, 2009.

Prior Provisions

A prior section 132 was renumbered section 140 of this title.

Amendments

2018—Subsec. (c)(4). Pub. L. 115–141, § 401(a)(38), substituted “performing” for “peforming”.

Subsec. (f)(6)(A). Pub. L. 115–141, § 101(b), struck out concluding provisions which read as follows: “In the case of any taxable year beginning in a calendar year after 2002, clause (ii) shall be applied by substituting ‘calendar year 2001’ for ‘calendar year 1998’ for purposes of adjusting the dollar amount contained in paragraph (2)(A).”

2017—Subsec. (f)(6)(A)(ii). Pub. L. 115–97, § 11002(d)(5), substituted “for ‘calendar year 2016’ in subparagraph (A)(ii) thereof” for “for ‘calendar year 1992’ ”.

Subsec. (f)(8). Pub. L. 115–97, § 11047(a), added par. (8).

Subsec. (g). Pub. L. 115–97, § 11048(a), substituted “For purposes of this section—” for “For purposes of this section,”, designated remainder of existing provisions as par. (1) and inserted heading, substituted “The term” for “the term”, and added par. (2).

2015—Subsec. (f)(2). Pub. L. 114–113, § 105(a)(2), struck out concluding provisions which read as follows: “In the case of any month beginning on or after the date of the enactment of this sentence and before January 1, 2015, subparagraph (A) shall be applied as if the dollar amount therein were the same as the dollar amount in effect for such month under subparagraph (B).”

Subsec. (f)(2)(A). Pub. L. 114–113, § 105(a)(1), substituted “$175” for “$100”.

2014—Subsec. (f)(2). Pub. L. 113–295 substituted “January 1, 2015” for “January 1, 2014” in concluding provisions.

2013—Subsec. (f)(2). Pub. L. 112–240 substituted “January 1, 2014” for “January 1, 2012” in concluding provisions.

2010—Subsec. (f)(2). Pub. L. 111–312 substituted “January 1, 2012” for “January 1, 2011” in concluding provisions.

2009—Subsec. (f)(2). Pub. L. 111–5 inserted concluding provisions.

Subsec. (n)(1). Pub. L. 111–92, § 14(a)(1), substituted “the American Recovery and Reinvestment Tax Act of 2009)” for “this subsection) to offset the adverse effects on housing values as a result of a military base realignment or closure”.

Subsec. (n)(2). Pub. L. 111–92, § 14(a)(2), struck out “clause (1) of” before “subsection (c)”.

2008—Subsec. (f)(1)(D). Pub. L. 110–343, § 211(a), added subpar. (D).

Subsec. (f)(2)(C). Pub. L. 110–343, § 211(b), added subpar. (C).

Subsec. (f)(4). Pub. L. 110–343, § 211(d), inserted “(other than a qualified bicycle commuting reimbursement)” after “qualified transportation fringe”.

Subsec. (f)(5)(F). Pub. L. 110–343, § 211(c), added subpar. (F).

2004—Subsec. (h)(2)(B). Pub. L. 108–311 substituted “152(f)(1)” for “151(c)(3)” in introductory provisions.

2003—Subsec. (a)(8). Pub. L. 108–121, § 103(a), added par. (8).

Subsecs. (n), (o). Pub. L. 108–121, § 103(b), added subsec. (n) and redesignated former subsec. (n) as (o).

2001—Subsec. (a)(7). Pub. L. 107–16, § 665(a), added par. (7).

Subsecs. (m), (n). Pub. L. 107–16, § 665(b), added subsec. (m) and redesignated former subsec. (m) as (n).

1998—Subsec. (f)(2)(A). Pub. L. 105–178, § 9010(c)(1), substituted “$100” for “$65”.

Pub. L. 105–178, § 9010(b)(2)(A), substituted “$65” for “$60”.

Subsec. (f)(2)(B). Pub. L. 105–178, § 9010(b)(2)(B), substituted “$175” for “$155”.

Subsec. (f)(4). Pub. L. 105–178, § 9010(a)(1), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “Subsection (a)(5) shall not apply to any qualified transportation fringe unless such benefit is provided in addition to (and not in lieu of) any compensation otherwise payable to the employee. This paragraph shall not apply to any qualified parking provided in lieu of compensation which otherwise would have been includible in gross income of the employee, and no amount shall be included in the gross income of the employee solely because the employee may choose between the qualified parking and compensation.”

Subsec. (f)(6). Pub. L. 105–178, § 9010(b)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “In the case of any taxable year beginning in a calendar year after 1993, the dollar amounts contained in paragraph (2)(A) and (B) shall be increased by an amount equal to—

“(A) such dollar amount, multiplied by

“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins.

If any increase determined under the preceding sentence is not a multiple of $5, such increase shall be rounded to the next lowest multiple of $5.”

Subsec. (f)(6)(A). Pub. L. 105–178, § 9010(c)(2), inserted concluding provisions.

1997—Subsec. (e)(2). Pub. L. 105–34, § 970(a), inserted at end of concluding provisions “For purposes of subparagraph (B), an employee entitled under section 119 to exclude the value of a meal provided at such facility shall be treated as having paid an amount for such meal equal to the direct operating costs of the facility attributable to such meal.”

Subsec. (f)(4). Pub. L. 105–34, § 1072(a), inserted at end “This paragraph shall not apply to any qualified parking provided in lieu of compensation which otherwise would have been includible in gross income of the employee, and no amount shall be included in the gross income of the employee solely because the employee may choose between the qualified parking and compensation.”

1993—Subsec. (a)(6). Pub. L. 103–66, § 13213(d)(1), added par. (6).

Subsec. (f)(6)(B). Pub. L. 103–66, § 13201(b)(3)(F), struck out before period at end “, determined by substituting ‘calendar year 1992’ for ‘calendar year 1989’ in subparagraph (B) thereof”.

Subsecs. (g), (h). Pub. L. 103–66, § 13213(d)(2), added subsec. (g) and redesignated former subsec. (g) as (h). Former subsec. (h) redesignated (i).

Subsec. (i). Pub. L. 103–66, § 13213(d)(2), redesignated subsec. (h) as (i). Former subsec. (i) redesignated (j).

Subsec. (i)(8). Pub. L. 103–66, § 13101(b), amended heading and text of par. (8) generally. Prior to amendment, text read as follows: “Amounts which would be excludible from gross income under section 127 but for subsection (a)(2) thereof or the last sentence of subsection (c)(1) thereof shall be excluded from gross income under this section if (and only if) such amounts are a working condition fringe.”

Subsec. (j). Pub. L. 103–66, § 13213(d)(2), redesignated subsec. (i) as (j). Former subsec. (j) redesignated (k).

Subsec. (j)(4)(B)(iii). Pub. L. 103–66, § 13213(d)(3)(B), substituted “subsection (h)” for “subsection (f)”.

Subsec. (k). Pub. L. 103–66, § 13213(d)(2), redesignated subsec. (j) as (k). Former subsec. (k) redesignated (l).

Subsec. (l). Pub. L. 103–66, § 13213(d)(2), (3)(C), redesignated subsec. (k) as (l) and substituted “subsections (e) and (g)” for “subsection (e)”. Former subsec. (l) redesignated (m).

Subsec. (m). Pub. L. 103–66, § 13213(d)(2), redesignated subsec. (l) as (m).

1992—Subsec. (a)(5). Pub. L. 102–486, § 1911(a), added par. (5).

Subsecs. (f) to (h). Pub. L. 102–486, § 1911(b), added subsec. (f) and redesignated former subsecs. (f) and (g) as (g) and (h), respectively. Former subsec. (h) redesignated (i).

Subsec. (i). Pub. L. 102–486, § 1911(b), (c), redesignated subsec. (h) as (i), redesignated pars. (5) to (9) as (4) to (8), respectively, and struck out former par. (4), “Parking”, which read as follows: “The term ‘working condition fringe’ includes parking provided to an employee on or near the business premises of the employer.” Former subsec. (i) redesignated (j).

Subsecs. (j) to (l). Pub. L. 102–486, § 1911(b), redesignated subsecs. (i) to (k) as (j) to (l), respectively.

1989—Subsec. (f)(2)(B). Pub. L. 101–239, § 7841(d)(19), substituted “section 151(c)(3)” for “section 151(e)(3)” in introductory provisions.

Subsec. (h)(1). Pub. L. 101–239, § 7841(d)(7), substituted “to highly compensated employees” for “to officers, etc.,” in heading.

Pub. L. 101–140, § 203(a)(2), amended par. (1) to read as if amendments by Pub. L. 100–647, § 1011B(a)(31)(B), had not been enacted, see 1988 Amendment note below.

Pub. L. 101–140, § 203(a)(1), amended par. (1) to read as if amendments by Pub. L. 99–514, § 1151(g)(5), had not been enacted, see 1986 Amendment note below.

Subsec. (h)(9). Pub. L. 101–239, § 7101(b), added par. (9).

1988—Subsec. (h)(1). Pub. L. 100–647, § 1011B(a)(31)(B), substituted “there shall” for “there may be” and “who are” for “who may be” in last sentence.

Subsec. (h)(8). Pub. L. 100–647, § 6066(a), added par. (8).

1986—Subsec. (c)(3)(A). Pub. L. 99–514, § 1853(a)(2), substituted “are provided by the employer to an employee for use by such employee” for “are provided to the employee by the employer”.

Subsec. (e)(2). Pub. L. 99–514, § 1114(b)(5)(A), struck out “officer, owner, or” before “highly compensated employee” and “officers, owners, or” before “highly compensated employees” in last sentence.

Subsec. (f)(2)(B)(ii). Pub. L. 99–514, § 1853(a)(1), substituted “are deceased and who has not attained age 25” for “are deceased”.

Subsec. (f)(3). Pub. L. 99–272, § 13207(a)(1), added par. (3).

Subsec. (g). Pub. L. 99–514, § 1151(e)(2)(A), in amending subsec. (g) generally, designated par. (2) as the entire subsection, struck out former subsec. heading, “Special rules relating to employer”, struck out “For purposes of this section—”, and struck out par. (1) which read as follows: “All employees treated as employed by a single employer under subsection (b), (c), or (m) of section 414 shall be treated as employed by a single employer for purposes of this section.”

Subsec. (h)(1). Pub. L. 99–514, § 1151(g)(5), inserted “For purposes of this paragraph and subsection (e), there may be excluded from consideration employees who may be excluded from consideration under section 89(h).”

Pub. L. 99–514, § 1114(b)(5)(A), struck out “officer, owner, or” before “highly compensated employee” and “officers, owners, or” before “highly compensated employees”.

Subsec. (h)(3)(B)(i). Pub. L. 99–514, § 1899A(5), substituted “such use is” for “such use in”.

Subsec. (h)(6). Pub. L. 99–272, § 13207(b)(1), added par. (6).

Subsec. (h)(7). Pub. L. 99–514, § 1114(b)(5)(B), added par. (7).

Subsec. (i). Pub. L. 99–514, § 1853(a)(3), substituted “subsection (c)(2)” for “subsection (c)(2)(B)”.

Statutory Notes and Related Subsidiaries
Effective Date of 2018 Amendment

Amendment by section 101(b) of Pub. L. 115–141 effective as if included in the provision of the Protecting Americans from Tax Hikes Act of 2015, div. Q of Pub. L. 114–113, to which such amendment relates, see section 101(s) of Pub. L. 115–141, set out as a note under section 24 of this title.

Effective Date of 2017 Amendment

Amendment by section 11002(d)(5) of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.

Pub. L. 115–97, title I, § 11047(b), Dec. 22, 2017, 131 Stat. 2088, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2017.”

Pub. L. 115–97, title I, § 11048(b), Dec. 22, 2017, 131 Stat. 2088, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2017.”

Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title I, § 105(b), Dec. 18, 2015, 129 Stat. 3046, provided that: “The amendments made by this section [amending this section] shall apply to months after December 31, 2014.”

Effective Date of 2014 Amendment

Pub. L. 113–295, div. A, title I, § 103(b), Dec. 19, 2014, 128 Stat. 4013, provided that: “The amendment made by this section [amending this section] shall apply to months after December 31, 2013.”

Effective Date of 2013 Amendment

Pub. L. 112–240, title II, § 203(b), Jan. 2, 2013, 126 Stat. 2323, provided that: “The amendment made by this section [amending this section] shall apply to months after December 31, 2011.”

Effective Date of 2010 Amendment

Pub. L. 111–312, title VII, § 727(b), Dec. 17, 2010, 124 Stat. 3317, provided that: “The amendment made by this section [amending this section] shall apply to months after December 31, 2010.”

Effective Date of 2009 Amendment

Pub. L. 111–92, § 14(b), Nov. 6, 2009, 123 Stat. 2996, provided that: “The amendments made by this act [probably should be “this section”, amending this section] shall apply to payments made after February 17, 2009.”

Pub. L. 111–5, div. B, title I, § 1151(b), Feb. 17, 2009, 123 Stat. 333, provided that: “The amendment made by this section [amending this section] shall apply to months beginning on or after the date of the enactment of this section [Feb. 17, 2009].”

Effective Date of 2008 Amendment

Pub. L. 110–343, div. B, title II, § 211(e), Oct. 3, 2008, 122 Stat. 3841, provided that: “The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2008.”

Effective Date of 2004 Amendment

Amendment by Pub. L. 108–311 applicable to taxable years beginning after Dec. 31, 2004, see section 208 of Pub. L. 108–311, set out as a note under section 2 of this title.

Effective Date of 2003 Amendment

Pub. L. 108–121, title I, § 103(c), Nov. 11, 2003, 117 Stat. 1338, provided that: “The amendments made by this section [amending this section] shall apply to payments made after the date of the enactment of this Act [Nov. 11, 2003].”

Effective Date of 2001 Amendment

Pub. L. 107–16, title VI, § 665(c), June 7, 2001, 115 Stat. 143, provided that: “The amendments made by this section [amending this section] shall apply to years beginning after December 31, 2001.”

Effective Date of 1998 Amendment

Pub. L. 105–178, title IX, § 9010(a)(2), June 9, 1998, 112 Stat. 507, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 1997.”

Pub. L. 105–178, title IX, § 9010(b)(3), June 9, 1998, 112 Stat. 508, provided that: “The amendments made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 1998.”

Pub. L. 105–178, title IX, § 9010(c)(3), June 9, 1998, 112 Stat. 508, provided that: “The amendments made by this subsection [amending this section] shall apply to taxable years beginning after December 31, 2001.”

Effective Date of 1997 Amendment

Pub. L. 105–34, title IX, § 970(b), Aug. 5, 1997, 111 Stat. 897, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1997.”

Pub. L. 105–34, title X, § 1072(b), Aug. 5, 1997, 111 Stat. 948, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 1997.”

Effective Date of 1993 Amendment

Pub. L. 103–66, title XIII, § 13101(c)(2), Aug. 10, 1993, 107 Stat. 420, provided that: “The amendment made by subsection (b) [amending this section] shall apply to taxable years beginning after December 31, 1988.”

Amendment by section 13201(b)(3)(F) of Pub. L. 103–66 applicable to taxable years beginning after Dec. 31, 1992, see section 13201(c) of Pub. L. 103–66, set out as a note under section 1 of this title.

Amendment by section 13213(d)(1), (2), (3)(B) and (C) of Pub. L. 103–66 applicable to reimbursements or other payments in respect of expenses incurred after Dec. 31, 1993, see section 13213(e) of Pub. L. 103–66, set out as a note under section 62 of this title.

Effective Date of 1992 Amendment

Pub. L. 102–486, title XIX, § 1911(d), Oct. 24, 1992, 106 Stat. 3014, provided that: “The amendments made by this section [amending this section] shall apply to benefits provided after December 31, 1992.”

Effective Date of 1989 Amendment

Amendment by section 7101(b) of Pub. L. 101–239 applicable to taxable years beginning after Dec. 31, 1988, see section 7101(c) of Pub. L. 101–239, set out as a note under section 127 of this title.

Amendment by Pub. L. 101–140 effective as if included in section 1151 of Pub. L. 99–514, see section 203(c) of Pub. L. 101–140, set out as a note under section 79 of this title.

Effective Date of 1988 Amendment

Amendment by section 1011B(a)(31)(B) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.

Pub. L. 100–647, title VI, § 6066(b), Nov. 10, 1988, 102 Stat. 3703, provided that: “The amendment made by subsection (a) [amending this section] shall apply to transportation furnished after December 31, 1987, in taxable years ending after such date.”

Effective Date of 1986 Amendment

Amendment by section 1114(b)(5) of Pub. L. 99–514 applicable to years beginning after Dec. 31, 1987, see section 1114(c)(2) of Pub. L. 99–514, set out as a note under section 414 of this title.

Amendment by section 1151(e)(2)(A), (g)(5) of Pub. L. 99–514 applicable, with certain qualifications and exceptions, to years beginning after Dec. 31, 1988, see section 1151(k) of Pub. L. 99–514, as amended, set out as a note under section 79 of this title.

Amendment by section 1853(a) of Pub. L. 99–514 effective, except as otherwise provided, as if included in the provisions of the Tax Reform Act of 1984, Pub. L. 98–369, div. A, to which such amendment relates, see section 1881 of Pub. L. 99–514, set out as a note under section 48 of this title.

Pub. L. 99–272, title XIII, § 13207(a)(2), Apr. 7, 1986, 100 Stat. 319, provided that: “The amendment made by this subsection [amending this section] shall take effect on January 1, 1985.”

Pub. L. 99–272, title XIII, § 13207(b)(2), Apr. 7, 1986, 100 Stat. 320, provided that: “The amendment made by this subsection [amending this section] shall take effect on January 1, 1985.”

Effective Date

Pub. L. 98–369, div. A, title V, § 531(i), formerly § 531(h), July 18, 1984, 98 Stat. 886, as redesignated by Pub. L. 99–272, title XIII, § 13207(d), Apr. 7, 1986, 100 Stat. 320, provided that: “The amendments made by this section [enacting this section and section 4977 of this title, amending sections 61, 125, 3121, 3231, 3306, 3401, 3501, and 6652 of this title and section 409 of Title 42, The Public Health and Welfare, redesignating former section 132 of this title as 133, and enacting provisions set out as notes under this section and section 125 of this title] shall take effect on January 1, 1985.”

Regulations

Secretary of the Treasury or his delegate to issue before Feb. 1, 1988, final regulations to carry out amendments made by section 1114 of Pub. L. 99–514, see section 1141 of Pub. L. 99–514, set out as a note under section 401 of this title.

Nonenforcement of Amendment Made by Section 1151 of Pub. L. 99–514 for Fiscal Year 1990

No monies appropriated by Pub. L. 101–136 to be used to implement or enforce section 1151 of Pub. L. 99–514 or the amendments made by such section, see section 528 of Pub. L. 101–136, set out as a note under section 89 of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title.

Certain Recordkeeping Requirements

Pub. L. 99–514, title XV, § 1567, Oct. 22, 1986, 100 Stat. 2763, provided that:

“(a)
In General.—
For purposes of sections 132 and 274 of the Internal Revenue Code of 1954 [now 1986], use of an automobile by a special agent of the Internal Revenue Service shall be treated in the same manner as use of an automobile by an officer of any other law enforcement agency.
“(b)
Effective Date.—
The provisions of this section shall take effect on January 1, 1985.”

Treatment of Certain Leased Operations of Department Stores

Pub. L. 99–514, title XVIII, § 1853(e), Oct. 22, 1986, 100 Stat. 2872, provided that: “For purposes of section 132(h)(2)(B) [now 132(j)(2)(B)] of the Internal Revenue Code of 1954 [now 1986], a leased section of a department store which, in connection with the offering of beautician services, customarily makes sales of beauty aids in the ordinary course of business shall be treated as engaged in over-the-counter sales of property.”

Transitional Rule for Determination of Line of Business in Case of Affiliated Group Operating Airline

Pub. L. 99–272, title XIII, § 13207(c), Apr. 7, 1986, 100 Stat. 320, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“If, as of September 12, 1984—
“(1)
an individual—
“(A)
was an employee (within the meaning of section 132 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], including subsection (f) [now (h)] thereof) of one member of an affiliated group (as defined in section 1504 of such Code), hereinafter referred to as the ‘first corporation’, and
“(B)
was eligible for no-additional-cost service in the form of air transportation provided by another member of such affiliated group, hereinafter referred to as the ‘second corporation’,
“(2)
at least 50 percent of the individuals performing service for the first corporation were or had been employees of, or had previously performed services for, the second corporation, and
“(3)
the primary business of the affiliated group was air transportation of passengers,
then, for purposes of applying paragraphs (1) and (2) of section 132(a) of the Internal Revenue Code of 1986, with respect to no-additional-cost services and qualified employee discounts provided after December 31, 1984, for such individual by the second corporation, the first corporation shall be treated as engaged in the same air transportation line of business as the second corporation. For purposes of the preceding sentence, an employee of the second corporation who is performing services for the first corporation shall also be treated as an employee of the first corporation.”

Special Rule for Services Related To Providing Air Transportation

Pub. L. 98–369, div. A, title V, § 531(g), as added by Pub. L. 99–272, title XIII, § 13207(d), Apr. 7, 1986, 100 Stat. 320; amended Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“(1)
In general.—
If—
“(A)
an individual performs services for a qualified air transportation organization, and
“(B)
such services are performed primarily for persons engaged in providing air transportation and are of the kind which (if performed on September 12, 1984) would qualify such individual for no-additional-cost services in the form of air transportation,
then, with respect to such individual, such qualified air transportation organization shall be treated as engaged in the line of business of providing air transportation.
“(2)
Qualified air transportation organization.—
For purposes of paragraph (1), the term ‘qualified air transportation organization’ means any organization—
“(A)
if such organization (or a predecessor) was in existence on September 12, 1984,
“(B)
if—
“(i)
such organization is described in section 501(c)(6) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] and the membership of such organization is limited to entities engaged in the transportation by air of individuals or property for compensation or hire, or
“(ii)
such organization is a corporation all the stock of which is owned entirely by entities referred to in clause (i), and
“(C)
if such organization is operated in furtherance of the activities of its members or owners.”

Determination of Line of Business in Case of Affiliated Group Operating Retail Department Stores

Pub. L. 98–369, div. A, title V, § 531(f), July 18, 1984, 98 Stat. 886, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

“If—
“(1)
as of October 5, 1983, the employees of one member of an affiliated group (as defined in section 1504 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] without regard to subsections (b)(2) and (b)(4) thereof) were entitled to employee discounts at the retail department stores operated by another member of such affiliated group, and
“(2)
the primary business of the affiliated group is the operation of retail department stores,
then, for purpose of applying section 132(a)(2) of the Internal Revenue Code of 1986, with respect to discounts provided for such employees at the retail department stores operated by such other member, the employer shall be treated as engaged in the same line of business as such other member.”