§ 244. Dividends received on certain preferred stock
(a)
General rule
In the case of a corporation, there shall be allowed as a deduction an amount computed as follows:
(1)
First determine the amount received as dividends on the preferred stock of a public utility which is subject to taxation under this chapter and with respect to which the deduction provided in section
247 for dividends paid is allowable.
(b)
Exception