§ 537.
(a)
General rule
For purposes of this part, the term “reasonable needs of the business” includes—
(1)
the reasonably anticipated needs of the business,
(2)
the section 303 redemption needs of the business, and
(3)
the excess business holdings redemption needs of the business.
(b)
Special rules
For purposes of subsection (a)—
(1)
Section 303 redemption needs
(2)
Excess business holdings redemption needs
The term “excess business holdings redemption needs” means the amount needed (or reasonably anticipated to be needed) to redeem from a private foundation stock which—
(A)
such foundation held on May 26, 1969 (or which was received by such foundation pursuant to a will or irrevocable trust to which section 4943(c)(5) applies), and
(B)
constituted excess business holdings on May 26, 1969, or would have constituted excess business holdings as of such date if there were taken into account (i) stock received pursuant to a will or trust described in subparagraph (A), and (ii) the reduction in the total outstanding stock of the corporation which would have resulted solely from the redemption of stock held by the private foundation.
(3)
Obligations incurred to make redemptions
(4)
Product liability loss reserves
(5)
No inference as to prior taxable years
([Aug. 16, 1954, ch. 736], [68A Stat. 182]; [Pub. L. 91–172, title IX, § 906(a)], Dec. 30, 1969, [83 Stat. 714]; [Pub. L. 94–455, title XIX, § 1901(a)(75)], Oct. 4, 1976, [90 Stat. 1777]; [Pub. L. 95–600, title III, § 371(c)], Nov. 6, 1978, [92 Stat. 2859]; [Pub. L. 104–188, title I, § 1704(t)(33)], Aug. 20, 1996, [110 Stat. 1889]; [Pub. L. 115–97, title I, § 13302(c)(2)(B)], Dec. 22, 2017, [131 Stat. 2123].)