paragraphs (2) and (3) of subsection (f) shall not apply to the distribution of such excess if distributed within such period, and (ii) the amount of such distribution shall be included in the gross income of the taxpayer in the year such distribution was made. (C) Anti-abuse rule Subparagraph (B) shall not apply in the case of any reduction in the maximum balance resulting from any action of the taxpayer the primary purpose of which was to reduce the maximum balance to enable a distribution that would not be subject to the maximum tax rate calculation or the additional tax. (3) Certain asset acquisitions The transfer of a natural disaster fund (or the portion of a natural disaster fund) from one person to another person shall not constitute a nonqualified distribution if— (A) such transfer is part of a transaction— (i) to which section 381 applies, (ii) the transferee acquires substantially all of the assets of the transferor used in the line or lines of business for which the fund was designated, (iii) the transferee acquires substantially all of the assets of the transferor used in one, but not all, of the lines of business for which the fund was designated, or (iv) the transferee acquires substantially all of the transferor’s assets located in a geographical area and used in a line of business for which the fund was designated, and (B) the transferee elects to treat the acquired natural disaster fund (or portion thereof) as a natural disaster fund for the line of business for which the transferor had previously designated the fund and as a continuation of the fund (or pro rata portion thereof) for purposes of determining the additional tax imposed by subsection (f)(4). (i) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the provisions of this section. . (b) Clerical amendment The table of sections for subpart C of part II of subchapter E of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 468B