I 

109TH CONGRESS 

1ST SESSION H. R. 3376 

To amend the Internal Revenue Code of 1986 to make technical corrections, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 21, 2005 

Mr. THOMAS introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

technical corrections, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 

4 TABLE OF CONTENTS. 

5 (a) SHORT TITLE.—This Act may be cited as the 

6 ‘‘Tax Technical Corrections Act of 2005’’. 

7 (b) AMENDMENT OF 1986 CODE.—Except as other8 wise expressly provided, whenever in this Act an amend9 ment or repeal is expressed in terms of an amendment 

10 to, or repeal of, a section or other provision, the reference 
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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 this Act is as follows: 

Sec. 1. Short title; amendment of 1986 Code; table of contents. 

Sec. 2. Amendments related to the American Jobs Creation Act of 2004. 

Sec. 3. Amendments related to the Working Families Tax Relief Act of 2004. 

Sec. 4. Amendments related to the Jobs and Growth Tax Relief Reconciliation 

Act of 2003. 

Sec. 5. Amendment related to the Victims of Terrorism Tax Relief Act of 2001. 

Sec. 6. Amendment related to the Transportation Equity Act for the 21st Century. 

Sec. 7. Amendments related to the Taxpayer Relief Act of 1997. 

Sec. 8. Clerical corrections. 

Sec. 9. Other corrections related to the American Jobs Creation Act of 2004. 

5 SEC. 2. AMENDMENTS RELATED TO THE AMERICAN JOBS 

6 CREATION ACT OF 2004. 

7 (a) AMENDMENTS RELATED TO SECTION 102 OF

8 THE ACT.— 

9 (1) Paragraph (1) of section 199(b) is amended 

10 by striking ‘‘the employer’’ and inserting ‘‘the tax11 payer’’. 

12 (2) Paragraph (2) of section 199(b) is amended 

13 to read as follows: 

14 ‘‘(2) W–2 WAGES.—For purposes of this sec15 tion, the term ‘W–2 wages’ means, with respect to 

16 any person for any taxable year of such person, the 

17 sum of the amounts described in paragraphs (3) and 

18 (8) of section 6051(a) paid by such person with re19 spect to employment of employees by such person 

20 during the calendar year ending during such taxable 
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1 year. Such term shall not include any amount which 

2 is not properly included in a return filed with the 

3 Social Security Administration on or before the 60th 

4 day after the due date (including extensions) for 

5 such return.’’. 

6 (3) Subparagraph (B) of section 199(c)(1) is 

7 amended by inserting ‘‘and’’ at the end of clause (i), 

8 by striking clauses (ii) and (iii), and by inserting 

9 after clause (i) the following: 

10 ‘‘(ii) other expenses, losses, or deduc11 tions (other than the deduction allowed 

12 under this section), which are properly al13 locable to such receipts.’’. 

14 (4) Paragraph (2) of section 199(c) is amended 

15 to read as follows: 

16 ‘‘(2) ALLOCATION METHOD.—The Secretary 

17 shall prescribe rules for the proper allocation of 

18 items described in paragraph (1) for purposes of de19 termining qualified production activities income. 

20 Such rules shall provide for the proper allocation of 

21 items whether or not such items are directly allo22 cable to domestic production gross receipts.’’. 

23 (5) Subparagraph (A) of section 199(c)(4) is 

24 amended by striking clauses (ii) and (iii) and insert25 ing the following new clauses: 
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1 ‘‘(ii) in the case of a taxpayer engaged 

2 in the active conduct of a construction 

3 trade or business, construction of real 

4 property performed in the United States 

5 by the taxpayer in the ordinary course of 

6 such trade or business, or 

7 ‘‘(iii) in the case of a taxpayer en8 gaged in the active conduct of an engineer9 ing or architectural services trade or busi10 ness, engineering or architectural services 

11 performed in the United States by the tax12 payer in the ordinary course of such trade 

13 or business with respect to the construc14 tion of real property in the United 

15 States.’’. 

16 (6) Subparagraph (B) of section 199(c)(4) is 

17 amended by striking ‘‘and’’ at the end of clause (i), 

18 by striking the period at the end of clause (ii) and 

19 inserting ‘‘, or’’, and by adding at the end the fol20 lowing: 

21 ‘‘(iii) the lease, rental, license, sale, 

22 exchange, or other disposition of land.’’. 

23 (7) Paragraph (4) of section 199(c) is amended 

24 by adding at the end the following new subpara25 graphs: 
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1 ‘‘(C) SPECIAL RULE FOR CERTAIN GOV2 ERNMENT CONTRACTS.—Gross receipts derived 

3 from the manufacture or production of any 

4 property described in subparagraph (A)(i)(I) 

5 shall be treated as meeting the requirements of 

6 subparagraph (A)(i) if— 

7 ‘‘(i) such property is manufactured or 

8 produced by the taxpayer pursuant to a 

9 contract with the Federal Government, and 

10 ‘‘(ii) the Federal Acquisition Regula11 tion requires that title or risk of loss with 

12 respect to such property be transferred to 

13 the Federal Government before the manu14 facture or production of such property is 

15 complete. 

16 ‘‘(D) PARTNERSHIPS OWNED BY EX17 PANDED AFFILIATED GROUPS.—For purposes 

18 of this paragraph, if all of the interests in the 

19 capital and profits of a partnership are owned 

20 by members of a single expanded affiliated 

21 group at all times during the taxable year of 

22 such partnership, the partnership and all mem23 bers of such group shall be treated as a single 

24 taxpayer during such period.’’. 
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1 (8) Paragraph (1) of section 199(d) is amended 

2 to read as follows: 

3 ‘‘(1) APPLICATION OF SECTION TO PASS-THRU

4 ENTITIES.— 

5 ‘‘(A) PARTNERSHIPS AND S CORPORA6 TIONS.—In the case of a partnership or S cor7 poration— 

8 ‘‘(i) this section shall be applied at the 

9 partner or shareholder level, 

10 ‘‘(ii) each partner or shareholder shall 

11 take into account such person’s allocable 

12 share of each item described in subpara13 graph (A) or (B) of subsection (c)(1) (de14 termined without regard to whether the 

15 items described in such subparagraph (A) 

16 exceed the items described in such sub17 paragraph (B)), and 

18 ‘‘(iii) each partner or shareholder 

19 shall be treated for purposes of subsection 

20 (b) as having W–2 wages for the taxable 

21 year in an amount equal to the lesser of— 

22 ‘‘(I) such person’s allocable share 

23 of the W–2 wages of the partnership 

24 or S corporation for the taxable year 
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1 (as determined under regulations pre2 scribed by the Secretary), or 

3 ‘‘(II) 2 times 9 percent of so 

4 much of such person’s qualified pro5 duction activities income as is attrib6 utable to items allocated under clause 

7 (ii) for the taxable year. 

8 ‘‘(B) TRUSTS AND ESTATES.—In the case 

9 of a trust or estate— 

10 ‘‘(i) the items referred to in subpara11 graph (A)(ii) (as determined therein) and 

12 the W–2 wages of the trust or estate for 

13 the taxable year, shall be apportioned be14 tween the beneficiaries and the fiduciary 

15 (and among the beneficiaries) under regu16 lations prescribed by the Secretary, and 

17 ‘‘(ii) for purposes of paragraph (2), 

18 adjusted gross income of the trust or es19 tate shall be determined as provided in sec20 tion 67(e) with the adjustments described 

21 in such paragraph. 

22 ‘‘(C) REGULATIONS.—The Secretary may 

23 prescribe rules requiring or restricting the allo24 cation of items and wages under this paragraph 
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1 and may prescribe such reporting requirements 

2 as the Secretary determines appropriate.’’. 

3 (9) Paragraph (3) of section 199(d) is amended 

4 to read as follows: 

5 ‘‘(3) AGRICULTURAL AND HORTICULTURAL CO6 OPERATIVES.— 

7 ‘‘(A) DEDUCTION ALLOWED TO PA8 TRONS.—Any person who receives a qualified 

9 payment from a specified agricultural or horti10 cultural cooperative shall be allowed for the tax11 able year in which such payment is received a 

12 deduction under subsection (a) equal to the por13 tion of the deduction allowed under subsection 

14 (a) to such cooperative which is— 

15 ‘‘(i) allowed with respect to the por16 tion of the qualified production activities 

17 income to which such payment is attrib18 utable, and 

19 ‘‘(ii) identified by such cooperative in 

20 a written notice mailed to such person dur21 ing the payment period described in section 

22 1382(d). 

23 ‘‘(B) COOPERATIVE DENIED DEDUCTION

24 FOR PORTION OF QUALIFIED PAYMENTS.—The 

25 taxable income of a specified agricultural or 
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1 horticultural cooperative shall not be reduced 

2 under section 1382 by reason of that portion of 

3 any qualified payment as does not exceed the 

4 deduction allowable under subparagraph (A) 

5 with respect to such payment. 

6 ‘‘(C) TAXABLE INCOME OF COOPERATIVES

7 DETERMINED WITHOUT REGARD TO CERTAIN

8 DEDUCTIONS.—For purposes of this section, 

9 the taxable income of a specified agricultural or 

10 horticultural cooperative shall be computed 

11 without regard to any deduction allowable 

12 under subsection (b) or (c) of section 1382 (re13 lating to patronage dividends, per-unit retain 

14 allocations, and nonpatronage distributions). 

15 ‘‘(D) SPECIAL RULE FOR MARKETING CO16 OPERATIVES.—For purposes of this section, a 

17 specified agricultural or horticultural coopera18 tive described in subparagraph (F)(ii) shall be 

19 treated as having manufactured, produced, 

20 grown, or extracted in whole or significant part 

21 any qualifying production property marketed by 

22 the organization which its patrons have so man23 ufactured, produced, grown, or extracted. 

24 ‘‘(E) QUALIFIED PAYMENT.—For purposes 

25 of this paragraph, the term ‘qualified payment’ 
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1 means, with respect to any person, any amount 

2 which— 

3 ‘‘(i) is described in paragraph (1) or 

4 (3) of section 1385(a), 

5 ‘‘(ii) is received by such person from 

6 a specified agricultural or horticultural co7 operative, and 

8 ‘‘(iii) is attributable to qualified pro9 duction activities income with respect to 

10 which a deduction is allowed to such coop11 erative under subsection (a). 

12 ‘‘(F) SPECIFIED AGRICULTURAL OR HORTI13 CULTURAL COOPERATIVE.—For purposes of 

14 this paragraph, the term ‘specified agricultural 

15 or horticultural cooperative’ means an organiza16 tion to which part I of subchapter T applies 

17 which is engaged— 

18 ‘‘(i) in the manufacturing, production, 

19 growth, or extraction in whole or signifi20 cant part of any agricultural or horti21 cultural product, or 

22 ‘‘(ii) in the marketing of agricultural 

23 or horticultural products.’’. 

24 (10) Clause (i) of section 199(d)(4)(B) is 

25 amended— 
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1 (A) by striking ‘‘50 percent’’ and inserting 

2 ‘‘more than 50 percent’’, and 

3 (B) by striking ‘‘80 percent’’ and inserting 

4 ‘‘at least 80 percent’’. 

5 (11)(A) Paragraph (6) of section 199(d) is 

6 amended to read as follows: 

7 ‘‘(6) COORDINATION WITH MINIMUM TAX.—For 

8 purposes of determining alternative minimum tax9 able income under section 55— 

10 ‘‘(A) the deduction under this section shall 

11 be determined without regard to any adjust12 ments under sections 56 through 59, and 

13 ‘‘(B) in the case of a corporation, sub14 section (a)(1)(B) shall be applied by sub15 stituting ‘alternative minimum taxable income’ 

16 for ‘taxable income’.’’. 

17 (B) Paragraph (2) of section 199(a) is amended 

18 by striking ‘‘subsections (d)(1) and (d)(6)’’ and in19 serting ‘‘subsection (d)(1)’’. 

20 (12) Subsection (d) of section 199 is amended 

21 by redesignating paragraph (7) as paragraph (8) 

22 and by inserting after paragraph (6) the following 

23 new paragraph: 

24 ‘‘(7) UNRELATED BUSINESS TAXABLE IN25 COME.—For purposes of determining the tax im-
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1 posed by section 511, subsection (a)(1)(B) shall be 

2 applied by substituting ‘unrelated business taxable 

3 income’ for ‘taxable income’.’’. 

4 (13) Subsection (d) of section 199, as amended 

5 by the preceding paragraphs of this subsection, is 

6 further amended by redesignating paragraph (8) as 

7 paragraph (9) and by inserting after paragraph (7) 

8 the following new paragraph: 

9 ‘‘(8) COORDINATION WITH CARRYOVER OF NET

10 OPERATING LOSS.—The deduction allowable under 

11 this section shall not be taken into account for pur12 poses of computing taxable income under section 

13 172(b)(2).’’. 

14 (14) Paragraph (9) of section 199(d), as redes15 ignated by the preceding paragraphs of this sub16 section, is amended by inserting ‘‘, including regula17 tions which prevent more than 1 taxpayer from 

18 being allowed a deduction under this section with re19 spect to any activity described in subsection 

20 (c)(4)(A)(i)’’ before the period at the end. 

21 (15) Clause (i) of section 163(j)(6)(A) is 

22 amended by striking ‘‘and’’ at the end of subclause 

23 (II), by redesignating subclause (III) as subclause 

24 (IV), and by inserting after subclause (II) the fol25 lowing new subclause: 
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1 ‘‘(III) any deduction allowable 

2 under section 199, and’’. 

3 (16) Paragraph (2) of section 170(b) is amend4 ed by redesignating subparagraphs (C) and (D) as 

5 subparagraphs (D) and (E), respectively, and by in6 serting after subparagraph (B) the following new 

7 subparagraph: 

8 ‘‘(C) section 199,’’. 

9 (17) Paragraph (1) of section 613A(d) is 

10 amended by redesignating subparagraphs (B), (C), 

11 and (D) as subparagraphs (C), (D), and (E), respec12 tively, and by inserting after subparagraph (A) the 

13 following new subparagraph: 

14 ‘‘(B) any deduction allowable under section 

15 199,’’. 

16 (18) Subsection (e) of section 102 of the Amer17 ican Jobs Creation Act of 2004 is amended to read 

18 as follows: 

19 ‘‘(e) EFFECTIVE DATE.— 

20 ‘‘(1) IN GENERAL.—The amendments made by 

21 this section shall apply to taxable years beginning 

22 after December 31, 2004. 

23 ‘‘(2) APPLICATION TO PASS-THRU ENTITIES, 

24 ETC.—In determining the deduction under section 

25 199 of the Internal Revenue Code of 1986 (as added 
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1 by this section), items arising from a taxable year of 

2 a partnership, S corporation, estate, or trust begin3 ning before January 1, 2005, shall not be taken into 

4 account for purposes of subsection (d)(1) of such 

5 section.’’. 

6 (b) AMENDMENTS RELATED TO SECTION 231 OF

7 THE ACT.— 

8 (1) Clause (ii) of section 1361(c)(1)(A) is 

9 amended by inserting ‘‘(and their estates)’’ after ‘‘all 

10 members of the family’’. 

11 (2) Subparagraph (C) of section 1361(c)(1) is 

12 amended to read as follows: 

13 ‘‘(C) EFFECT OF ADOPTION, ETC.—For 

14 purposes of this paragraph, any legally adopted 

15 child of an individual, any child who is lawfully 

16 placed with an individual for legal adoption by 

17 the individual, and any eligible foster child of 

18 an individual (within the meaning of section 

19 152(f)(1)(C)), shall be treated as a child of 

20 such individual by blood.’’. 

21 (c) AMENDMENT RELATED TO SECTION 235 OF THE

22 ACT.—Subsection (b) of section 235 of the American Jobs 

23 Creation Act of 2004 is amended by striking ‘‘taxable 

24 years beginning’’ and inserting ‘‘transfers’’. 
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1 (d) AMENDMENTS RELATED TO SECTION 243 OF

2 THE ACT.— 

3 (1) Paragraph (7) of section 856(c) is amended 

4 to read as follows: 

5 ‘‘(7) RULES OF APPLICATION FOR FAILURE TO

6 SATISFY PARAGRAPH (4).— 

7 ‘‘(A) IN GENERAL.— A corporation, trust, 

8 or association that fails to meet the require9 ments of paragraph (4) (other than a failure to 

10 meet the requirements of paragraph (4)(B)(iii) 

11 which is described in subparagraph (B)(i) of 

12 this paragraph) for a particular quarter shall 

13 nevertheless be considered to have satisfied the 

14 requirements of such paragraph for such quar15 ter if— 

16 ‘‘(i) following the corporation, trust, 

17 or association’s identification of the failure 

18 to satisfy the requirements of such para19 graph for a particular quarter, a descrip20 tion of each asset that causes the corpora21 tion, trust, or association to fail to satisfy 

22 the requirements of such paragraph at the 

23 close of such quarter of any taxable year is 

24 set forth in a schedule for such quarter 
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1 filed in accordance with regulations pre2 scribed by the Secretary, 

3 ‘‘(ii) the failure to meet the require4 ments of such paragraph for a particular 

5 quarter is due to reasonable cause and not 

6 due to willful neglect, and 

7 ‘‘(iii)(I) the corporation, trust, or as8 sociation disposes of the assets set forth on 

9 the schedule specified in clause (i) within 

10 6 months after the last day of the quarter 

11 in which the corporation, trust or associa12 tion’s identification of the failure to satisfy 

13 the requirements of such paragraph oc14 curred or such other time period prescribed 

15 by the Secretary and in the manner pre16 scribed by the Secretary, or 

17 ‘‘(II) the requirements of such para18 graph are otherwise met within the time 

19 period specified in subclause (I). 

20 ‘‘(B) RULE FOR CERTAIN DE MINIMIS

21 FAILURES.—A corporation, trust, or association 

22 that fails to meet the requirements of para23 graph (4)(B)(iii) for a particular quarter shall 

24 nevertheless be considered to have satisfied the 
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1 requirements of such paragraph for such quar2 ter if— 

3 ‘‘(i) such failure is due to the owner4 ship of assets the total value of which does 

5 not exceed the lesser of— 

6 ‘‘(I) 1 percent of the total value 

7 of the trust’s assets at the end of the 

8 quarter for which such measurement 

9 is done, and 

10 ‘‘(II) $10,000,000, and 

11 ‘‘(ii)(I) the corporation, trust, or asso12 ciation, following the identification of such 

13 failure, disposes of assets in order to meet 

14 the requirements of such paragraph within 

15 6 months after the last day of the quarter 

16 in which the corporation, trust or associa17 tion’s identification of the failure to satisfy 

18 the requirements of such paragraph oc19 curred or such other time period prescribed 

20 by the Secretary and in the manner pre21 scribed by the Secretary, or 

22 ‘‘(II) the requirements of such para23 graph are otherwise met within the time 

24 period specified in subclause (I). 

25 ‘‘(C) TAX.— 
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1 ‘‘(i) TAX IMPOSED.— If subparagraph 

2 (A) applies to a corporation, trust, or asso3 ciation for any taxable year, there is here4 by imposed on such corporation, trust, or 

5 association a tax in an amount equal to 

6 the greater of— 

7 ‘‘(I) $50,000, or 

8 ‘‘(II) the amount determined 

9 (pursuant to regulations promulgated 

10 by the Secretary) by multiplying the 

11 net income generated by the assets 

12 described in the schedule specified in 

13 subparagraph (A)(i) for the period 

14 specified in clause (ii) by the highest 

15 rate of tax specified in section 11. 

16 ‘‘(ii) PERIOD.—For purposes of clause 

17 (i)(II), the period described in this clause 

18 is the period beginning on the first date 

19 that the failure to satisfy the requirements 

20 of such paragraph (4) occurs as a result of 

21 the ownership of such assets and ending on 

22 the earlier of the date on which the trust 

23 disposes of such assets or the end of the 

24 first quarter when there is no longer a fail25 ure to satisfy such paragraph (4). 
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1 ‘‘(iii) ADMINISTRATIVE PROVISIONS.— 

2 For purposes of subtitle F, the taxes im3 posed by this subparagraph shall be treat4 ed as excise taxes with respect to which the 

5 deficiency procedures of such subtitle 

6 apply.’’. 

7 (2) Subsection (m) of section 856 is amended 

8 by adding at the end the following new paragraph: 

9 ‘‘(6) TRANSITION RULE.— 

10 ‘‘(A) IN GENERAL.—Notwithstanding para11 graph (2)(C), securities held by a trust shall 

12 not be considered securities held by the trust 

13 for purposes of subsection (c)(4)(B)(iii)(III) if 

14 such securities— 

15 ‘‘(i) were held by such trust on Octo16 ber 22, 2004, and continuously thereafter, 

17 and 

18 ‘‘(ii) would not be taken into account 

19 for purposes of such subsection by reason 

20 of paragraph (7)(C) of subsection (c) (as 

21 in effect on October 22, 2004) if the 

22 amendments made by section 243 of the 

23 American Jobs Creation Act of 2004 had 

24 never been enacted. 
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1 ‘‘(B) RULE NOT TO APPLY TO SECURITIES

2 HELD AFTER MATURITY DATE.—Subparagraph 

3 (A) shall not apply with respect to any security 

4 after the latest maturity date under the con5 tract (as in effect on October 22, 2004) taking 

6 into account any renewal or extension permitted 

7 under the contract if such renewal or extension 

8 does not significantly modify any other terms of 

9 the contract. 

10 ‘‘(C) SUCCESSORS.—If the successor of a 

11 trust to which this paragraph applies acquires 

12 securities in a transaction to which section 381 

13 applies, such trusts shall be treated as a single 

14 entity for purposes of determining the holding 

15 period of such securities under subparagraph 

16 (A)(i).’’. 

17 (3) Subparagraph (E) of section 857(b)(2) is 

18 amended by striking ‘‘section 856(c)(7)(B)(iii), and 

19 section 856(g)(1).’’ and inserting ‘‘section 

20 856(c)(7)(C), and section 856(g)(5)’’. 

21 (4) Subsection (g) of section 243 of the Amer22 ican Jobs Creation Act of 2004 is amended to read 

23 as follows: 

24 ‘‘(g) EFFECTIVE DATES.— 
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1 ‘‘(1) SUBSECTIONS (a) AND (b).—The amend2 ments made by subsections (a) and (b) shall apply 

3 to taxable years beginning after December 31, 2000. 

4 ‘‘(2) SUBSECTIONS (c) AND (e).—The amend5 ments made by subsections (c) and (e) shall apply 

6 to taxable years beginning after the date of the en7 actment of this Act. 

8 ‘‘(3) SUBSECTION (d).—The amendment made 

9 by subsection (d) shall apply to transactions entered 

10 into after December 31, 2004. 

11 ‘‘(4) SUBSECTION (f).— 

12 ‘‘(A) The amendment made by paragraph 

13 (1) of subsection (f) shall apply to failures with 

14 respect to which the requirements of subpara15 graph (A) or (B) of section 856(c)(7) of the In16 ternal Revenue Code of 1986 (as added by such 

17 paragraph) are satisfied after the date of the 

18 enactment of this Act. 

19 ‘‘(B) The amendment made by paragraph 

20 (2) of subsection (f) shall apply to failures with 

21 respect to which the requirements of paragraph 

22 (6) of section 856(c) of the Internal Revenue 

23 Code of 1986 (as amended by such paragraph) 

24 are satisfied after the date of the enactment of 

25 this Act. 
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1 ‘‘(C) The amendments made by paragraph 

2 (3) of subsection (f) shall apply to failures with 

3 respect to which the requirements of paragraph 

4 (5) of section 856(g) of the Internal Revenue 

5 Code of 1986 (as added by such paragraph) are 

6 satisfied after the date of the enactment of this 

7 Act. 

8 ‘‘(D) The amendment made by paragraph 

9 (4) of subsection (f) shall apply to taxable years 

10 ending after the date of the enactment of this 

11 Act. 

12 ‘‘(E) The amendments made by paragraph 

13 (5) of subsection (f) shall apply to statements 

14 filed after the date of the enactment of this 

15 Act.’’. 

16 (e) AMENDMENTS RELATED TO SECTION 244 OF

17 THE ACT.— 

18 (1) Paragraph (2) of section 181(d) is amended 

19 by striking the last sentence in subparagraph (A), by 

20 redesignating subparagraph (B) as subparagraph 

21 (C), and by inserting after subparagraph (A) the fol22 lowing new subparagraph: 

23 ‘‘(B) SPECIAL RULES FOR TELEVISION SE24 RIES.—In the case of a television series— 
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1 ‘‘(i) each episode of such series shall 

2 be treated as a separate production, and 

3 ‘‘(ii) only the first 44 episodes of such 

4 series shall be taken into account.’’. 

5 (2) Subparagraph (C) of section 1245(a)(2) is 

6 amended by inserting ‘‘181,’’ after ‘‘179B,’’. 

7 (f) AMENDMENT RELATED TO SECTION 245 OF THE

8 ACT.—Subsection (b) of section 45G is amended to read 

9 as follows: 

10 ‘‘(b) LIMITATION.—The credit allowed under sub11 section (a) for any taxable year shall not exceed the prod12 uct of— 

13 ‘‘(1) $3,500, and 

14 ‘‘(2) the sum of— 

15 ‘‘(A) the number of miles of railroad track 

16 owned or leased by the eligible taxpayer as of 

17 the close of the taxable year, and 

18 ‘‘(B) the number of miles of railroad track 

19 assigned for purposes of this subsection to the 

20 eligible taxpayer by a Class II or Class III rail21 road which owns or leases such railroad track 

22 as of the close of the taxable year. 

23 Any mile which is assigned by a taxpayer under 

24 paragraph (2)(B) may not be taken into account by 

25 such taxpayer under paragraph (2)(A).’’. 
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1 (g) AMENDMENTS RELATED TO SECTION 248 OF

2 THE ACT.— 

3 (1) Subsection (c) of section 1356 is amend4 ed— 

5 (A) by striking paragraph (3), and 

6 (B) by adding at the end of paragraph (2) 

7 the following new flush sentence: 

8 ‘‘Such term shall not include any core qualifying activi9 ties.’’. 

10 (2) The last sentence of section 1354(b) is 

11 amended by inserting ‘‘on or’’ after ‘‘only if made’’. 

12 (h) AMENDMENT RELATED TO SECTION 301 OF THE

13 ACT.—Section 6427 is amended by striking subsection (f). 

14 (i) AMENDMENT RELATED TO SECTION 314 OF THE

15 ACT.—Paragraph (2) of section 55(c) is amended by strik16 ing ‘‘regular tax’’ and inserting ‘‘regular tax liability’’. 

17 (j) AMENDMENTS RELATED TO SECTION 322 OF THE

18 ACT.— 

19 (1) Subparagraph (C) of section 49(a)(1) is 

20 amended by inserting ‘‘and’’ at the end of clause (i), 

21 by striking ‘‘and’’ at the end of clause (ii), and by 

22 striking clause (iii). 

23 (2)(A) Subparagraph (B) of section 194(b)(1) 

24 is amended to read as follows: 
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1 ‘‘(B) DOLLAR LIMITATION.—The aggre2 gate amount of reforestation expenditures which 

3 may be taken into account under subparagraph 

4 (A) with respect to each qualified timber prop5 erty for any taxable year shall not exceed— 

6 ‘‘(i) except as provided in clause (ii) 

7 or (iii), $10,000, 

8 ‘‘(ii) in the case of a separate return 

9 by a married individual (as defined in sec10 tion 7703), $5,000, and 

11 ‘‘(iii) in the case of a trust, zero.’’. 

12 (B) Paragraph (4) of section 194(c) is amended 

13 to read as follows: 

14 ‘‘(4) TREATMENT OF TRUSTS AND ESTATES.— 

15 The aggregate amount of reforestation expenditures 

16 incurred by any trust or estate shall be apportioned 

17 between the income beneficiaries and the fiduciary 

18 under regulations prescribed by the Secretary. Any 

19 amount so apportioned to a beneficiary shall be 

20 taken into account as expenditures incurred by such 

21 beneficiary in applying this section to such bene22 ficiary.’’. 

23 (3) Subparagraph (C) of section 1245(a)(2) is 

24 amended by striking ‘‘or 193’’ and inserting ‘‘193, 

25 or 194’’. 
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1 (k) AMENDMENTS RELATED TO SECTION 336 OF

2 THE ACT.— 

3 (1) Clause (iv) of section 168(k)(2)(A) is 

4 amended by striking ‘‘subparagraphs (B) and (C)’’ 

5 and inserting ‘‘subparagraph (B) or (C)’’. 

6 (2) Clause (iii) of section 168(k)(4)(B) is 

7 amended by striking ‘‘and paragraph (2)(C)’’ and 

8 inserting ‘‘or paragraph (2)(C) (as so modified)’’. 

9 (l) AMENDMENT RELATED TO SECTION 402 OF THE

10 ACT.—Paragraph (2) of section 904(g) is amended to read 

11 as follows: 

12 ‘‘(2) OVERALL DOMESTIC LOSS.—For purposes 

13 of this subsection— 

14 ‘‘(A) IN GENERAL.—The term ‘overall do15 mestic loss’ means— 

16 ‘‘(i) with respect to any qualified tax17 able year, the domestic loss for such tax18 able year to the extent such loss offsets 

19 taxable income from sources without the 

20 United States for the taxable year or for 

21 any preceding qualified taxable year by 

22 reason of a carryback, and 

23 ‘‘(ii) with respect to any other taxable 

24 year, the domestic loss for such taxable 

25 year to the extent such loss offsets taxable 
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1 income from sources without the United 

2 States for any preceding qualified taxable 

3 year by reason of a carryback. 

4 ‘‘(B) DOMESTIC LOSS.—For purposes of 

5 subparagraph (A), the term ‘domestic loss’ 

6 means the amount by which the gross income 

7 for the taxable year from sources within the 

8 United States is exceeded by the sum of the de9 ductions properly apportioned or allocated 

10 thereto (determined without regard to any 

11 carryback from a subsequent taxable year). 

12 ‘‘(C) QUALIFIED TAXABLE YEAR.—For 

13 purposes of subparagraph (A), the term ‘quali14 fied taxable year’ means any taxable year for 

15 which the taxpayer chose the benefits of this 

16 subpart.’’. 

17 (m) AMENDMENT RELATED TO SECTION 403 OF THE

18 ACT.—Section 403 of the American Jobs Creation Act of 

19 2004 is amended by adding at the end the following new 

20 subsection: 

21 ‘‘(d) TRANSITION RULE.—If the taxpayer elects (at 

22 such time and in such form and manner as the Secretary 

23 of the Treasury may prescribe) to have the rules of this 

24 subsection apply— 
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1 ‘‘(1) the amendments made by this section shall 

2 not apply to taxable years beginning after December 

3 31, 2002, and before January 1, 2005, and 

4 ‘‘(2) in the case of taxable years beginning after 

5 December 31, 2004, clause (iv) of section 

6 904(d)(4)(C) of the Internal Revenue Code of 1986 

7 (as amended by this section) shall be applied by sub8 stituting ‘January 1, 2005’ for ‘January 1, 2003’ 

9 both places it appears.’’. 

10 (n) AMENDMENTS RELATED TO SECTION 413 OF

11 THE ACT.— 

12 (1) Subsection (b) of section 532 is amended by 

13 striking paragraph (2) and redesignating paragraphs 

14 (3) and (4) as paragraphs (2) and (3), respectively. 

15 (2) Subsection (b) of section 535 is amended by 

16 adding at the end the following new paragraph: 

17 ‘‘(10) CONTROLLED FOREIGN CORPORA18 TIONS.—There shall be allowed as a deduction the 

19 amount of the corporation’s income for the taxable 

20 year which is included in the gross income of a 

21 United States shareholder under section 951(a). In 

22 the case of any corporation the accumulated taxable 

23 income of which would (but for this sentence) be de24 termined without allowance of any deductions, the 

25 deduction under this paragraph shall be allowed and 
29 

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1 shall be appropriately adjusted to take into account 

2 any deductions which reduced such inclusion.’’. 

3 (o) AMENDMENT RELATED TO SECTION 415 OF THE

4 ACT.—Subparagraph (D) of section 904(d)(2) is amended 

5 by inserting ‘‘as in effect before its repeal’’ after ‘‘section 

6 954(f)’’. 

7 (p) AMENDMENTS RELATED TO SECTION 418 OF

8 THE ACT.— 

9 (1) The second sentence of section 897(h)(1) is 

10 amended— 

11 (A) by striking ‘‘any distribution’’ and all 

12 that follows through ‘‘any class of stock’’ and 

13 inserting ‘‘any distribution by a real estate in14 vestment trust with respect to any class of 

15 stock’’, and 

16 (B) by striking ‘‘the taxable year’’ and in17 serting ‘‘the 1-year period ending on the date of 

18 the distribution’’. 

19 (2) Subsection (c) of section 418 of the Amer20 ican Jobs Creation Act of 2004 is amended by strik21 ing ‘‘taxable years beginning after the date of the 

22 enactment of this Act’’ and inserting ‘‘any distribu23 tion by a real estate investment trust which is treat24 ed as a deduction for a taxable year of such trust 
30 

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1 beginning after the date of the enactment of this 

2 Act’’. 

3 (q) AMENDMENTS RELATED TO SECTION 422 OF

4 THE ACT.— 

5 (1) Subparagraph (B) of section 965(a)(2) is 

6 amended by inserting ‘‘from another controlled for7 eign corporation in such chain of ownership’’ before 

8 ‘‘, but only to the extent’’. 

9 (2) Subparagraph (A) of section 965(b)(2) is 

10 amended by inserting ‘‘cash’’ before ‘‘dividends’’. 

11 (3) Paragraph (3) of section 965(b) is amended 

12 by adding at the end the following: ‘‘The Secretary 

13 may prescribe such regulations as may be necessary 

14 or appropriate to prevent the avoidance of the pur15 poses of this paragraph, including regulations which 

16 provide that cash dividends shall not be taken into 

17 account under subsection (a) to the extent such divi18 dends are attributable to the direct or indirect trans19 fer (including through the use of intervening entities 

20 or capital contributions) of cash or other property 

21 from a related person (as so defined) to a controlled 

22 foreign corporation.’’. 

23 (4) Paragraph (1) of section 965(c) is amended 

24 to read as follows: 
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1 ‘‘(1) APPLICABLE FINANCIAL STATEMENT.— 

2 The term ‘applicable financial statement’ means— 

3 ‘‘(A) with respect to a United States 

4 shareholder which is required to file a financial 

5 statement with the Securities and Exchange 

6 Commission (or which is included in such a 

7 statement so filed by another person), the most 

8 recent audited annual financial statement (in9 cluding the notes which form an integral part 

10 of such statement) of such shareholder (or 

11 which includes such shareholder)— 

12 ‘‘(i) which was so filed on or before 

13 June 30, 2003, and 

14 ‘‘(ii) which was certified on or before 

15 June 30, 2003, as being prepared in ac16 cordance with generally accepted account17 ing principles, and 

18 ‘‘(B) with respect to any other United 

19 States shareholder, the most recent audited fi20 nancial statement (including the notes which 

21 form an integral part of such statement) of 

22 such shareholder (or which includes such share23 holder)— 

24 ‘‘(i) which was certified on or before 

25 June 30, 2003, as being prepared in ac-
32 

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1 cordance with generally accepted account2 ing principles, and 

3 ‘‘(ii) which is used for the purposes of 

4 a statement or report— 

5 ‘‘(I) to creditors, 

6 ‘‘(II) to shareholders, or 

7 ‘‘(III) for any other substantial 

8 nontax purpose.’’. 

9 (5) Paragraph (2) of section 965(d) is amended 

10 by striking ‘‘properly allocated and apportioned’’ and 

11 inserting ‘‘directly allocable’’. 

12 (6) Subsection (d) of section 965 is amended by 

13 adding at the end the following new paragraph: 

14 ‘‘(4) COORDINATION WITH SECTION 78.—Sec15 tion 78 shall not apply to any tax which is not allow16 able as a credit under section 901 by reason of this 

17 subsection.’’. 

18 (7) The last sentence of section 965(e)(1) is 

19 amended by inserting ‘‘which are imposed by foreign 

20 countries and possessions of the United States and 

21 are’’ after ‘‘taxes’’. 

22 (8) Subsection (f) of section 965 is amended by 

23 inserting ‘‘on or’’ before ‘‘before the due date’’. 

24 (r) AMENDMENTS RELATED TO SECTION 501 OF

25 THE ACT.— 
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1 (1) Subparagraph (A) of section 164(b)(5) is 

2 amended to read as follows: 

3 ‘‘(A) ELECTION TO DEDUCT STATE AND

4 LOCAL SALES TAXES IN LIEU OF STATE AND

5 LOCAL INCOME TAXES.—At the election of the 

6 taxpayer for the taxable year, subsection (a) 

7 shall be applied— 

8 ‘‘(i) without regard to the reference to 

9 State and local income taxes, and 

10 ‘‘(ii) as if State and local general sales 

11 taxes were referred to in a paragraph 

12 thereof.’’. 

13 (2) Clause (ii) of section 56(b)(1)(A) is amend14 ed by inserting ‘‘or clause (ii) of section 

15 164(b)(5)(A)’’ before the period at the end. 

16 (s) AMENDMENTS RELATED TO SECTION 708 OF

17 THE ACT.—Section 708 of the American Jobs Creation 

18 Act of 2004 is amended— 

19 (1) in subsection (a), by striking ‘‘contract com20 mencement date’’ and inserting ‘‘construction com21 mencement date’’, and 

22 (2) by redesignating subsection (d) as sub23 section (e) and inserting after subsection (c) the fol24 lowing new subsection: 
34 

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1 ‘‘(d) CERTAIN ADJUSTMENTS NOT TO APPLY.—Sec2 tion 481 of the Internal Revenue Code of 1986 shall not 

3 apply with respect to any change in the method of ac4 counting which is required by this section.’’. 

5 (t) AMENDMENTS RELATED TO SECTION 710 OF THE

6 ACT.— 

7 (1) Clause (ii) of section 45(b)(4)(B) is amend8 ed by striking ‘‘the date of the enactment of this 

9 Act’’ and inserting ‘‘January 1, 2005,’’. 

10 (2) Clause (ii) of section 45(c)(3)(A) is amend11 ed by inserting ‘‘or any nonhazardous lignin waste 

12 material’’ after ‘‘cellulosic waste material’’. 

13 (3) Subsection (e) of section 45 is amended by 

14 striking paragraph (6). 

15 (4)(A) Paragraph (9) of section 45(e) is amend16 ed to read as follows: 

17 ‘‘(9) COORDINATION WITH CREDIT FOR PRO18 DUCING FUEL FROM A NONCONVENTIONAL

19 SOURCE.— 

20 ‘‘(A) IN GENERAL.—The term ‘qualified 

21 facility’ shall not include any facility which pro22 duces electricity from gas derived from the bio23 degradation of municipal solid waste if such 

24 biodegradation occurred in a facility (within the 

25 meaning of section 29) the production from 
35 

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1 which is allowed as a credit under section 29 

2 for the taxable year or any prior taxable year. 

3 ‘‘(B) REFINED COAL FACILITIES.—The 

4 term ‘refined coal production facility’ shall not 

5 include any facility the production from which 

6 is allowed as a credit under section 29 for the 

7 taxable year or any prior taxable year.’’. 

8 (B) Subparagraph (C) of section 45(e)(8) is 

9 amended by striking ‘‘and (9)’’. 

10 (5) Subclause (I) of section 168(e)(3)(B)(vi) is 

11 amended to read as follows: 

12 ‘‘(I) is described in subparagraph 

13 (A) of section 48(a)(3) (or would be 

14 so described if ‘solar and wind’ were 

15 substituted for ‘solar’ in clause (i) 

16 thereof and the last sentence of such 

17 section did not apply to such subpara18 graph),’’. 

19 (6) Paragraph (4) of section 710(g) of the 

20 American Jobs Creation Act of 2004 is amended by 

21 striking ‘‘January 1, 2004’’ and inserting ‘‘January 

22 1, 2005’’. 

23 (u) AMENDMENT RELATED TO SECTION 801 OF THE

24 ACT.—Paragraph (3) of section 7874(a) is amended to 

25 read as follows: 
36 

•HR 3376 IH 

1 ‘‘(3) COORDINATION WITH SUBSECTION (b).—A 

2 corporation which is treated as a domestic corpora3 tion under subsection (b) shall not be treated as a 

4 surrogate foreign corporation for purposes of para5 graph (2)(A).’’. 

6 (v) AMENDMENTS RELATED TO SECTION 804 OF

7 THE ACT.— 

8 (1) Subparagraph (C) of section 877(g)(2) is 

9 amended by striking ‘‘section 7701(b)(3)(D)(ii)’’ and 

10 inserting ‘‘section 7701(b)(3)(D)’’. 

11 (2) Subsection (n) of section 7701 is amended 

12 to read as follows: 

13 ‘‘(n) SPECIAL RULES FOR DETERMINING WHEN AN

14 INDIVIDUAL IS NO LONGER A UNITED STATES CITIZEN

15 OR LONG-TERM RESIDENT.—For purposes of this chap16 ter— 

17 ‘‘(1) UNITED STATES CITIZENS.—An individual 

18 who would (but for this paragraph) cease to be 

19 treated as a citizen of the United States shall con20 tinue to be treated as a citizen of the United States 

21 until such individual— 

22 ‘‘(A) gives notice of an expatriating act 

23 (with the requisite intent to relinquish citizen24 ship) to the Secretary of State, and 
37 

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1 ‘‘(B) provides a statement in accordance 

2 with section 6039G (if such a statement is oth3 erwise required). 

4 ‘‘(2) LONG-TERM RESIDENTS.—A long-term 

5 resident (as defined in section 877(e)(2)) who would 

6 (but for this paragraph) be described in section 

7 877(e)(1) shall be treated as a lawful permanent 

8 resident of the United States and as not described 

9 in section 877(e)(1) until such individual— 

10 ‘‘(A) gives notice of termination of resi11 dency (with the requisite intent to terminate 

12 residency) to the Secretary of Homeland Secu13 rity, and 

14 ‘‘(B) provides a statement in accordance 

15 with section 6039G (if such a statement is oth16 erwise required).’’. 

17 (w) AMENDMENT RELATED TO SECTION 811 OF THE

18 ACT.—Subsection (c) of section 811 of the American Jobs 

19 Creation Act of 2004 is amended by inserting ‘‘and which 

20 were not filed before such date’’ before the period at the 

21 end. 

22 (x) AMENDMENTS RELATED TO SECTION 812 OF

23 THE ACT.— 

24 (1) Subsection (b) of section 6662 is amended 

25 by adding at the end the following new sentence: 
38 

•HR 3376 IH 

1 ‘‘Except as provided in paragraph (1) or (2)(B) of 

2 section 6662A(e), this section shall not apply to the 

3 portion of any underpayment which is attributable to 

4 a reportable transaction understatement on which a 

5 penalty is imposed under section 6662A.’’ 

6 (2) Paragraph (2) of section 6662A(e) is 

7 amended to read as follows: 

8 ‘‘(2) COORDINATION WITH OTHER PEN9 ALTIES.— 

10 ‘‘(A) COORDINATION WITH FRAUD PEN11 ALTY.—This section shall not apply to any por12 tion of an understatement on which a penalty 

13 is imposed under section 6663. 

14 ‘‘(B) COORDINATION WITH GROSS VALU15 ATION MISSTATEMENT PENALTY.—This section 

16 shall not apply to any portion of an understate17 ment on which a penalty is imposed under sec18 tion 6662 if the rate of the penalty is deter19 mined under section 6662(h).’’. 

20 (3) Subsection (f) of section 812 of the Amer21 ican Jobs Creation Act of 2004 is amended to read 

22 as follows: 

23 ‘‘(f) EFFECTIVE DATES.— 

24 ‘‘(1) IN GENERAL.—Except as provided in para25 graph (2), the amendments made by this section 
39 

•HR 3376 IH 

1 shall apply to taxable years ending after the date of 

2 the enactment of this Act. 

3 ‘‘(2) DISQUALIFIED OPINIONS.—Section 

4 6664(d)(3)(B) of the Internal Revenue Code of 1986 

5 (as added by subsection (c)) shall not apply to the 

6 opinion of a tax advisor if— 

7 ‘‘(A) the opinion was provided to the tax8 payer before the date of the enactment of this 

9 Act, 

10 ‘‘(B) the opinion relates to one or more 

11 transactions all of which were entered into be12 fore such date, and 

13 ‘‘(C) the tax treatment of items relating to 

14 each such transaction was included on a return 

15 or statement filed by the taxpayer before such 

16 date.’’. 

17 (y) AMENDMENT RELATED TO SECTION 814 OF THE

18 ACT.—Subparagraph (B) of section 6501(a)(10) is 

19 amended by striking ‘‘(as defined in section 6111)’’. 

20 (z) AMENDMENT RELATED TO SECTION 815 OF THE

21 ACT.—Paragraph (1) of section 6112(b) is amended ‘‘(or 

22 was required to maintain a list under subsection (a) as 

23 in effect before the enactment of the American Jobs Cre24 ation Act of 2004)’’ after ‘‘a list under subsection (a)’’. 
40 

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1 (aa) AMENDMENTS RELATED TO SECTION 832 OF

2 THE ACT.— 

3 (1) Subsection (e) of section 853 is amended to 

4 read as follows: 

5 ‘‘(e) TREATMENT OF CERTAIN TAXES NOT ALLOWED

6 AS A CREDIT UNDER SECTION 901.—This section shall 

7 not apply to any tax with respect to which the regulated 

8 investment company is not allowed a credit under section 

9 901 by reason of subsection (k) or (l) of such section.’’. 

10 (2) Clause (i) of section 901(l)(2)(C) is amend11 ed by striking ‘‘if such security were stock’’. 

12 (bb) AMENDMENTS RELATED TO SECTION 833 OF

13 THE ACT.— 

14 (1) Subsection (a) of section 734 is amended by 

15 inserting ‘‘with respect to such distribution’’ before 

16 the period at the end. 

17 (2) So much of subsection (b) of section 734 as 

18 precedes paragraph (1) is amended to read as fol19 lows: 

20 ‘‘(b) METHOD OF ADJUSTMENT.—In the case of a 

21 distribution of property to a partner by a partnership with 

22 respect to which the election provided in section 754 is 

23 in effect or with respect to which there is a substantial 

24 basis reduction, the partnership shall—’’. 
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1 (cc) AMENDMENT RELATED TO SECTION 835 OF THE

2 ACT.—Paragraph (3) of section 860G(a) is amended— 

3 (1) in subparagraph (A)(iii)(I), by striking ‘‘the 

4 obligation’’ and inserting ‘‘a reverse mortgage loan 

5 or other obligation’’, and 

6 (2) by striking all that follows subparagraph 

7 (C) and inserting the following: 

8 ‘‘For purposes of subparagraph (A), any obligation 

9 secured by stock held by a person as a tenant-stock10 holder (as defined in section 216) in a cooperative 

11 housing corporation (as so defined) shall be treated 

12 as secured by an interest in real property. For pur13 poses of subparagraph (A), any obligation originated 

14 by the United States or any State (or any political 

15 subdivision, agency, or instrumentality of the United 

16 States or any State) shall be treated as principally 

17 secured by an interest in real property if more than 

18 50 percent of such obligations which are transferred 

19 to, or purchased by, the REMIC are principally se20 cured by an interest in real property (determined 

21 without regard to this sentence).’’. 

22 (dd) AMENDMENTS RELATED TO SECTION 836 OF

23 THE ACT.— 

24 (1) Paragraph (1) of section 334(b) is amended 

25 by striking ‘‘except that’’ and all that follows and in-
42 

•HR 3376 IH 

1 serting ‘‘except that, in the hands of such dis2 tributee— 

3 ‘‘(A) the basis of such property shall be 

4 the fair market value of the property at the 

5 time of the distribution in any case in which 

6 gain or loss is recognized by the liquidating cor7 poration with respect to such property, and 

8 ‘‘(B) the basis of any property described in 

9 section 362(e)(1)(B) shall be the fair market 

10 value of the property at the time of the dis11 tribution in any case in which such distributee’s 

12 aggregate adjusted basis of such property would 

13 (but for this subparagraph) exceed the fair 

14 market value of such property immediately 

15 after such liquidation.’’. 

16 (2) Clause (ii) of section 362(e)(2)(C) is 

17 amended to read as follows: 

18 ‘‘(ii) ELECTION.—Any election under 

19 clause (i) shall be made at such time and 

20 in such form and manner as the Secretary 

21 may prescribe, and, once made, shall be ir22 revocable.’’. 

23 (ee) AMENDMENT RELATED TO SECTION 840 OF THE

24 ACT.—Subsection (d) of section 121 is amended— 
43 

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1 (1) by redesignating the paragraph (10) relat2 ing to property acquired from a decedent as para3 graph (11) and by moving such paragraph to the 

4 end of such subsection, and 

5 (2) by amending the paragraph (10) relating to 

6 property acquired in like-kind exchange to read as 

7 follows: 

8 ‘‘(10) PROPERTY ACQUIRED IN LIKE-KIND EX9 CHANGE.—If a taxpayer acquires property in an ex10 change with respect to which gain is not recognized 

11 (in whole or in part) to the taxpayer under sub12 section (a) or (b) of section 1031, subsection (a) 

13 shall not apply to the sale or exchange of such prop14 erty by such taxpayer (or by any person whose basis 

15 in such property is determined, in whole or in part, 

16 by reference to the basis in the hands of such tax17 payer) during the 5-year period beginning with the 

18 date of such acquisition.’’. 

19 (ff) AMENDMENT RELATED TO SECTION 849 OF THE

20 ACT.—Subsection (a) of section 849 of the American Jobs 

21 Creation Act of 2004 is amended by inserting ‘‘, and in 

22 the case of property treated as tax-exempt use property 

23 other than by reason of a lease, to property acquired after 

24 March 12, 2004’’ before the period at the end. 
44 

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1 (gg) AMENDMENTS RELATED TO SECTION 853 OF

2 THE ACT.— 

3 (1) Subparagraph (C) of section 4081(a)(2) is 

4 amended by striking ‘‘for use in commercial avia5 tion’’ and inserting ‘‘for use in commercial aviation 

6 by a person registered for such use under section 

7 4101’’. 

8 (2) So much of paragraph (2) of section 

9 4081(d) as precedes subparagraph (A) is amended 

10 to read as follows: 

11 ‘‘(2) AVIATION FUELS.—The rates of tax speci12 fied in clauses (ii) and (iv) of subsection (a)(2)(A) 

13 shall be 4.3 cents per gallon—’’. 

14 (hh) AMENDMENT RELATED TO SECTION 884 OF

15 THE ACT.—Subparagraph (B) of section 170(f)(12) is 

16 amended by adding at the end the following new clauses: 

17 ‘‘(v) Whether the donee organization 

18 provided any goods or services in consider19 ation, in whole or in part, for the qualified 

20 vehicle. 

21 ‘‘(vi) A description and good faith es22 timate of the value of any goods or services 

23 referred to in clause (v) or, if such goods 

24 or services consist solely of intangible reli-
45 

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1 gious benefits (as defined in paragraph 

2 (8)(B)), a statement to that effect.’’. 

3 (ii) AMENDMENTS RELATED TO SECTION 885 OF

4 THE ACT.— 

5 (1) Paragraph (2) of section 26(b) is amended 

6 by striking ‘‘and’’ at the end of subparagraph (R), 

7 by striking the period at the end of subparagraph 

8 (S) and inserting ‘‘, and’’, and by adding at the end 

9 the following new subparagraph: 

10 ‘‘(T) subsections (a)(1)(B)(i) and 

11 (b)(4)(A) of section 409A (relating to interest 

12 and additional tax with respect to certain de13 ferred compensation).’’. 

14 (2) Clause (ii) of section 409A(a)(4)(C) is 

15 amended by striking ‘‘first’’. 

16 (3)(A) Notwithstanding section 885(d)(1) of the 

17 American Jobs Creation Act of 2004, subsection (b) 

18 of section 409A of the Internal Revenue Code of 

19 1986 shall take effect on January 1, 2005. 

20 (B) Not later than 90 days after the date of the 

21 enactment of this Act, the Secretary of the Treasury 

22 shall issue guidance under which a nonqualified de23 ferred compensation plan which is in violation of the 

24 requirements of section 409A(b) of such Code shall 

25 be treated as not having violated such requirements 
46 

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1 if such plan comes into conformance with such re2 quirements during such limited period as the Sec3 retary may specify in such guidance. 

4 (4) Subsection (f) of section 885 of the Amer5 ican Jobs Creation Act of 2004 is amended by strik6 ing ‘‘December 31, 2004’’ the first place it appears 

7 and inserting ‘‘January 1, 2005’’. 

8 (jj) AMENDMENTS RELATED TO SECTION 898 OF

9 THE ACT.— 

10 (1) Paragraph (3) of section 361(b) is amended 

11 by inserting ‘‘(reduced by the amount of the liabil12 ities assumed (within the meaning of section 

13 357(c)))’’ before the period at the end. 

14 (2) Paragraph (1) of section 357(d) is amended 

15 by inserting ‘‘section 361(b)(3),’’ after ‘‘section 

16 358(h),’’. 

17 (kk) AMENDMENT RELATED TO SECTION 899 OF

18 THE ACT.—Subparagraph (A) of section 351(g)(3) is 

19 amended by adding at the end the following: ‘‘If there is 

20 not a real and meaningful likelihood that dividends beyond 

21 any limitation or preference will actually be paid, the pos22 sibility of such payments will be disregarded in deter23 mining whether stock is limited and preferred as to divi24 dends.’’. 
47 

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1 (ll) AMENDMENT RELATED TO SECTION 902 OF THE

2 ACT.—Paragraph (1) of section 709(b) is amended by 

3 striking ‘‘taxpayer’’ both places it appears and inserting 

4 ‘‘partnership’’. 

5 (mm) AMENDMENT RELATED TO SECTION 909 OF

6 THE ACT.—Clause (ii) of section 451(i)(4)(B) is amended 

7 by striking ‘‘the close of the period applicable under sub8 section (a)(2)(B) as extended under paragraph (2)’’ and 

9 inserting ‘‘December 31, 2006’’. 

10 (nn) EFFECTIVE DATE.—The amendments made by 

11 this section shall take effect as if included in the provisions 

12 of the American Jobs Creation Act of 2004 to which they 

13 relate. 

14 SEC. 3. AMENDMENTS RELATED TO THE WORKING FAMI15 LIES TAX RELIEF ACT OF 2004. 

16 (a) AMENDMENT RELATED TO SECTION 201 OF THE

17 ACT.—Paragraph (2) of section 152(e) is amended to read 

18 as follows: 

19 ‘‘(2) REQUIREMENTS.—For purposes of para20 graph (1), the requirements described in this para21 graph are met if— 

22 ‘‘(A) a decree of divorce or separate main23 tenance or written separation agreement be24 tween the parents applicable to the taxable year 

25 beginning in such calendar year provides that 
48 

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1 the noncustodial parent shall be entitled to any 

2 deduction allowable under section 151 for such 

3 child, and in the case of such a decree or agree4 ment executed before January 1, 1985, the 

5 noncustodial parent provides at least $600 for 

6 the support of such child during such calendar 

7 year, or 

8 ‘‘(B) the custodial parent signs a written 

9 declaration (in such manner and form as the 

10 Secretary may prescribe) that such parent will 

11 not claim such child as a dependent for such 

12 taxable year. 

13 For purposes of subparagraph (A), amounts ex14 pended for the support of a child or children shall 

15 be treated as received from the noncustodial parent 

16 to the extent that such parent provided amounts for 

17 such support.’’. 

18 (b) AMENDMENT RELATED TO SECTION 203 OF THE

19 ACT.—Subparagraph (B) of section 21(b)(1) is amended 

20 by inserting ‘‘(as defined in section 152, determined with21 out regard to subsections (b)(1), (b)(2), and (d)(1)(B))’’ 

22 after ‘‘dependent of the taxpayer’’. 

23 (c) AMENDMENT RELATED TO SECTION 207 OF THE

24 ACT.—Subparagraph (A) of section 223(d)(2) is amended 
49 

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1 by inserting ‘‘, determined without regard to subsections 

2 (b)(1), (b)(2), and (d)(1)(B) thereof’’ after ‘‘section 152’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect as if included in the provisions 

5 of the Working Families Tax Relief Act of 2004 to which 

6 they relate. 

7 SEC. 4. AMENDMENTS RELATED TO THE JOBS AND 

8 GROWTH TAX RELIEF RECONCILIATION ACT 

9 OF 2003. 

10 (a) AMENDMENTS RELATED TO SECTION 201 OF

11 THE ACT.— 

12 (1) Clause (ii) of section 168(k)(4)(B) is 

13 amended to read as follows: 

14 ‘‘(ii) which is— 

15 ‘‘(I) acquired by the taxpayer 

16 after May 5, 2003, and before Janu17 ary 1, 2005, but only if no written 

18 binding contract for the acquisition 

19 was in effect before May 6, 2003, or 

20 ‘‘(II) acquired by the taxpayer 

21 pursuant to a written binding contract 

22 which was entered into after May 5, 

23 2003, and before January 1, 2005, 

24 and’’. 
50 

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1 (2) Subparagraph (D) of section 1400L(b)(2) is 

2 amended by striking ‘‘September 11, 2004’’ and in3 serting ‘‘January 1, 2005’’. 

4 (b) EFFECTIVE DATE.—The amendment made by 

5 this section shall take effect as if included in section 201 

6 of the Jobs and Growth Tax Relief and Reconciliation Act 

7 of 2003. 

8 SEC. 5. AMENDMENT RELATED TO THE VICTIMS OF TER9 RORISM TAX RELIEF ACT OF 2001. 

10 (a) AMENDMENT RELATED TO SECTION 201 OF THE

11 ACT.—Paragraph (17) of section 6103(l) is amended by 

12 striking ‘‘subsection (f), (i)(7), or (p)’’ and inserting ‘‘sub13 section (f), (i)(8), or (p)’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall take effect as if included in section 201 

16 of the Victims of Terrorism Tax Relief Act of 2001. 

17 SEC. 6. AMENDMENT RELATED TO THE TRANSPORTATION 

18 EQUITY ACT FOR THE 21ST CENTURY. 

19 (a) AMENDMENT RELATED TO SECTION 9005 OF

20 THE ACT.—The last sentence of paragraph (2) of section 

21 9504(b) is amended by striking ‘‘subparagraph (B)’’ and 

22 inserting ‘‘subparagraph (C)’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 this section shall take effect as if included in section 9005 

25 of the Transportation Equity Act for the 21st Century. 
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1 SEC. 7. AMENDMENTS RELATED TO THE TAXPAYER RELIEF 

2 ACT OF 1997. 

3 (a) AMENDMENTS RELATED TO SECTION 1055 OF

4 THE ACT.— 

5 (1) The last sentence of section 6411(a) is 

6 amended by striking ‘‘6611(f)(3)(B)’’ and inserting 

7 ‘‘6611(f)(4)(B)’’. 

8 (2) Paragraph (4) of section 6601(d) is amend9 ed by striking ‘‘6611(f)(3)(A)’’ and inserting 

10 ‘‘6611(f)(4)(A)’’. 

11 (b) AMENDMENT RELATED TO SECTION 1144 OF

12 THE ACT.—Subparagraph (B) of section 6038B(a)(1) is 

13 amended by inserting ‘‘or’’ at the end. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall take effect as if included in the provisions 

16 of the Taxpayer Relief Act of 1997 to which they relate. 

17 SEC. 8. CLERICAL CORRECTIONS. 

18 (a) Subparagraph (C) of section 2(b)(2) is amended 

19 by striking ‘‘subparagraph (C)’’ and inserting ‘‘subpara20 graph (B)’’. 

21 (b) Subparagraph (E) of section 26(b)(2) is amended 

22 by striking ‘‘section 530(d)(3)’’ and inserting ‘‘section 

23 530(d)(4)’’. 

24 (c)(1) Subclause (II) of section 38(c)(2)(A)(ii) is 

25 amended by striking ‘‘or the New York Liberty Zone busi26 ness employee credit or the specified credits’’ and inserting 
52 

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1 ‘‘, the New York Liberty Zone business employee credit, 

2 and the specified credits’’. 

3 (2) Subclause (II) of section 38(c)(3)(A)(ii) is 

4 amended by striking ‘‘or the specified credits’’ and insert5 ing ‘‘and the specified credits’’. 

6 (3) Subparagraph (B) of section 38(c)(4) is amend7 ed— 

8 (A) by striking ‘‘includes’’ and inserting 

9 ‘‘means’’, and 

10 (B) by inserting ‘‘and’’ at the end of clause (i). 

11 (d)(1) Subparagraph (A) of section 39(a)(1) is 

12 amended by striking ‘‘each of the 1 taxable years’’ and 

13 by inserting ‘‘the taxable year’’. 

14 (2) Subparagraph (B) of section 39(a)(3) is amended 

15 to read as follows: 

16 ‘‘(B) paragraph (1) shall be applied by 

17 substituting ‘each of the 5 taxable years’ for 

18 ‘the taxable year’ in subparagraph (A) thereof, 

19 and’’. 

20 (e) Paragraph (5) of section 43(c) is amended to read 

21 as follows: 

22 ‘‘(5) ALASKA NATURAL GAS.—For purposes of 

23 paragraph (1)(D)— 

24 ‘‘(A) IN GENERAL.—The term ‘Alaska nat25 ural gas’ means natural gas entering the Alaska 
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1 natural gas pipeline (as defined in section 

2 168(i)(16) (determined without regard to sub3 paragraph (B) thereof)) which is produced from 

4 a well— 

5 ‘‘(i) located in the area of the State of 

6 Alaska lying north of 64 degrees North 

7 latitude, determined by excluding the area 

8 of the Alaska National Wildlife Refuge (in9 cluding the continental shelf thereof within 

10 the meaning of section 638(1)), and 

11 ‘‘(ii) pursuant to the applicable State 

12 and Federal pollution prevention, control, 

13 and permit requirements from such area 

14 (including the continental shelf thereof 

15 within the meaning of section 638(1)). 

16 ‘‘(B) NATURAL GAS.—The term ‘natural 

17 gas’ has the meaning given such term by sec18 tion 613A(e)(2).’’. 

19 (f) Paragraph (2) of section 45I(a) is amended by 

20 striking ‘‘qualified credit oil production’’ and inserting 

21 ‘‘qualified crude oil production’’. 

22 (g) Subparagraph (E) of section 50(a)(2) is amended 

23 by striking ‘‘section 48(a)(5)’’ and inserting ‘‘section 

24 48(b)’’. 

25 (h)(1) Subsection (a) of section 62 is amended— 
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1 (A) by redesignating paragraph (19) (relating 

2 to costs involving discrimination suits, etc.), as 

3 added by section 703 of the American Jobs Creation 

4 Act of 2004, as paragraph (20), and 

5 (B) by moving such paragraph after paragraph 

6 (19) (relating to health savings accounts). 

7 (2) Subsection (e) of section 62 is amended by strik8 ing ‘‘subsection (a)(19)’’ and inserting ‘‘subsection 

9 (a)(20)’’. 

10 (i) Paragraph (3) of section 167(f) is amended by 

11 striking ‘‘section 197(e)(7)’’ and inserting ‘‘section 

12 197(e)(6)’’. 

13 (j) Subparagraph (D) of section 168(i)(15) is amend14 ed by striking ‘‘This paragraph shall not apply to’’ and 

15 inserting ‘‘Such term shall not include’’. 

16 (k) Paragraph (2) of section 221(d) is amended by 

17 striking ‘‘this Act’’ and inserting ‘‘the Taxpayer Relief Act 

18 of 1997’’. 

19 (l) Paragraph (8) of section 318(b) is amended by 

20 striking ‘‘section 6038(d)(2)’’ and inserting ‘‘section 

21 6038(e)(2)’’. 

22 (m) Subparagraph (B) of section 332(d)(1) is amend23 ed by striking ‘‘distribution to which section 301 applies’’ 

24 and inserting ‘‘distribution of property to which section 

25 301 applies’’. 
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1 (n) Paragraph (1) of section 415(l) is amended by 

2 striking ‘‘individual medical account’’ and inserting ‘‘indi3 vidual medical benefit account’’. 

4 (o) The matter following clause (iv) of section 

5 415(n)(3)(C) is amended by striking ‘‘clauses’’ and insert6 ing ‘‘clause’’. 

7 (p) Paragraph (12) of section 501(c) is amended— 

8 (1) by striking ‘‘subparagraph (C)(iii)’’ in sub9 paragraph (F) and inserting ‘‘subparagraph 

10 (C)(iv)’’, and 

11 (2) by striking ‘‘subparagraph (C)(iv)’’ in sub12 paragraph (G) and inserting ‘‘subparagraph (C)(v)’’. 

13 (q) Clause (ii) of section 501(c)(22)(B) is amended 

14 by striking ‘‘clause (ii) of paragraph (21)(B)’’ and insert15 ing ‘‘clause (ii) of paragraph (21)(D)’’. 

16 (r) Paragraph (1) of section 512(b) is amended by 

17 striking ‘‘section 512(a)(5)’’ and inserting ‘‘subsection 

18 (a)(5)’’. 

19 (s)(1) Subsection (b) of section 512 is amended— 

20 (A) by redesignating paragraph (18) (relating 

21 to the treatment of gain or loss on sale or exchange 

22 of certain brownfield sites), as added by section 702 

23 of the American Jobs Creation Act of 2004, as para24 graph (19), and 
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1 (B) by moving such paragraph to the end of 

2 such subsection. 

3 (2) Subparagraph (E) of section 514(b)(1) is amend4 ed by striking ‘‘section 512(b)(18)’’ and inserting ‘‘section 

5 512(b)(19)’’. 

6 (t)(1) Subsection (b) of section 530 is amended by 

7 striking paragraph (3) and by redesignating paragraphs 

8 (4) and (5) as paragraphs (3) and (4), respectively. 

9 (2) Clause (ii) of section 530(b)(2)(A) is amended by 

10 striking ‘‘paragraph (4)’’ and inserting ‘‘paragraph (3)’’. 

11 (u) Section 881(e)(1)(C) is amended by inserting ‘‘in12 terest-related dividend received by a controlled foreign cor13 poration’’ after ‘‘shall apply to any’’. 

14 (v) Clause (i) of section 954(c)(1)(C) is amended by 

15 striking ‘‘paragraph (4)(A)’’ and inserting ‘‘paragraph 

16 (5)(A)’’. 

17 (w) Subparagraph (F) of section 954(c)(1) is amend18 ed by striking ‘‘Net income from notional principal con19 tracts.’’ after ‘‘Income from notional principal con20 tracts.—’’. 

21 (x) Paragraph (23) of section 1016(a) is amended by 

22 striking ‘‘1045(b)(4)’’ and inserting ‘‘1045(b)(3)’’. 

23 (y) Paragraph (1) of section 1256(f) is amended by 

24 striking ‘‘subsection (e)(2)(C)’’ and inserting ‘‘subsection 

25 (e)(2)’’. 
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1 (z) The matter preceding clause (i) of section 

2 1031(h)(2)(B) is amended by striking ‘‘subparagraph’’ 

3 and inserting ‘‘subparagraphs’’. 

4 (aa) Paragraphs (1) and (2) of section 1375(d) are 

5 each amended by striking ‘‘subchapter C’’ and inserting 

6 ‘‘accumulated’’. 

7 (bb) Each of the following provisions are amended by 

8 striking ‘‘General Accounting Office’’ each place it ap9 pears therein and inserting ‘‘Government Accountability 

10 Office’’: 

11 (1) Clause (ii) of section 1400E(c)(4)(A). 

12 (2) Paragraph (1) of section 6050M(b). 

13 (3) Subparagraphs (A), (B)(i), and (B)(ii) of 

14 section 6103(i)(8). 

15 (4) Paragraphs (3)(C)(i), (4), (5), and (6)(B) 

16 of section 6103(p). 

17 (5) Subsection (e) of section 8021. 

18 (cc)(1) Clause (ii) of section 1400L(b)(2)(C) is 

19 amended by striking ‘‘section 168(k)(2)(C)(i)’’ and insert20 ing ‘‘section 168(k)(2)(D)(i)’’. 

21 (2) Clause (iv) of section 1400L(b)(2)(C) is amended 

22 by striking ‘‘section 168(k)(2)(C)(iii)’’ and inserting ‘‘sec23 tion 168(k)(2)(D)(iii)’’. 
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1 (3) Subparagraph (D) of section 1400L(b)(2) is 

2 amended by striking ‘‘section 168(k)(2)(D)’’ and inserting 

3 ‘‘section 168(k)(2)(E)’’. 

4 (4) Subparagraph (E) of section 1400L(b)(2) is 

5 amended by striking ‘‘section 168(k)(2)(F)’’ and inserting 

6 ‘‘section 168(k)(2)(G)’’. 

7 (5) Paragraph (5) of section 1400L(c) is amended 

8 by striking ‘‘section 168(k)(2)(C)(iii)’’ and inserting ‘‘sec9 tion 168(k)(2)(D)(iii)’’. 

10 (dd) Section 3401 is amended by redesignating sub11 section (h) as subsection (g). 

12 (ee) Paragraph (2) of section 4161(a) is amended to 

13 read as follows: 

14 ‘‘(2) 3 PERCENT RATE OF TAX FOR ELECTRIC

15 OUTBOARD MOTORS.—In the case of an electric out16 board motor, paragraph (1) shall be applied by sub17 stituting ‘3 percent’ for ‘10 percent’.’’. 

18 (ff) Subparagraph (C) of section 4261(e)(4) is 

19 amended by striking ‘‘imposed subsection (b)’’ and insert20 ing ‘‘imposed by subsection (b)’’. 

21 (gg) Subsection (a) of section 4980D is amended by 

22 striking ‘‘plans’’ and inserting ‘‘plan’’. 

23 (hh) The matter following clause (iii) of section 

24 6045(e)(5)(A) is amended by striking ‘‘for ‘$250,000’.’’ 

25 and all that follows through ‘‘to the Treasury.’’ and insert-
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1 ing ‘‘for ‘$250,000’. The Secretary may by regulation in2 crease the dollar amounts under this subparagraph if the 

3 Secretary determines that such an increase will not mate4 rially reduce revenues to the Treasury.’’. 

5 (ii) Subsection (p) of section 6103 is amended— 

6 (1) by striking so much of paragraph (4) as 

7 precedes subparagraph (A) and inserting the fol8 lowing: 

9 ‘‘(4) SAFEGUARDS.—Any Federal agency de10 scribed in subsection (h)(2), (h)(5), (i)(1), (2), (3), 

11 (5), or (7), (j)(1), (2), or (5), (k)(8), (l)(1), (2), (3), 

12 (5), (10), (11), (13), (14), or (17) or (o)(1), the 

13 Government Accountability Office, the Congressional 

14 Budget Office, or any agency, body, or commission 

15 described in subsection (d), (i)(3)(B)(i) or 7(A)(ii), 

16 or (l)(6), (7), (8), (9), (12), (15), or (16) or any 

17 other person described in subsection (l)(16), (18), 

18 (19), or (20) shall, as a condition for receiving re19 turns or return information—’’, 

20 (2) by amending paragraph (4)(F)(i) to read as 

21 follows: 

22 ‘‘(i) in the case of an agency, body, or 

23 commission described in subsection (d), 

24 (i)(3)(B)(i), or (l)(6), (7), (8), (9), or (16), 

25 or any other person described in subsection 
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1 (l)(16), (18), (19), or (20) return to the 

2 Secretary such returns or return informa3 tion (along with any copies made there4 from) or make such returns or return in5 formation undisclosable in any manner and 

6 furnish a written report to the Secretary 

7 describing such manner,’’, and 

8 (3) by striking the first full sentence in the 

9 matter following subparagraph (F) of paragraph (4) 

10 and inserting the following: ‘‘If the Secretary deter11 mines that any such agency, body, or commission, 

12 including an agency or any other person described in 

13 subsection (l)(16), (18), (19), or (20), or the Gov14 ernment Accountability Office or the Congressional 

15 Budget Office, has failed to, or does not, meet the 

16 requirements of this paragraph, he may, after any 

17 proceedings for review established under paragraph 

18 (7), take such actions as are necessary to ensure 

19 such requirements are met, including refusing to dis20 close returns or return information to such agency, 

21 body, or commission, including an agency or any 

22 other person described in subsection (l)(16), (18), 

23 (19), or (20), or the Government Accountability Of24 fice or the Congressional Budget Office, until he de-
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1 termines that such requirements have been or will be 

2 met.’’. 

3 (jj) Clause (ii) of section 6111(b)(1)(A) is amended 

4 by striking ‘‘advice or assistance’’ and inserting ‘‘aid, as5 sistance, or advice’’. 

6 (kk) Section 6427 is amended by striking subsection 

7 (o) and by redesignating subsection (p) as subsection (o). 

8 (ll) Paragraph (3) of section 6662(d) is amended by 

9 striking ‘‘the’’ before ‘‘1 or more’’. 

10 SEC. 9. OTHER CORRECTIONS RELATED TO THE AMERICAN 

11 JOBS CREATION ACT OF 2004. 

12 (a) AMENDMENTS RELATED TO SECTION 233 OF

13 THE ACT.— 

14 (1) Clause (vi) of section 1361(c)(2)(A) is 

15 amended— 

16 (A) by inserting ‘‘or a depository institu17 tion holding company (as defined in section 

18 3(w)(1) of the Federal Deposit Insurance Act 

19 (12 U.S.C. 1813(w)(1))’’ after ‘‘a bank (as de20 fined in section 581)’’, and 

21 (B) by inserting ‘‘or company’’ after ‘‘such 

22 bank’’. 

23 (2) Paragraph (16) of section 4975(d) is 

24 amended— 
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1 (A) in subparagraph (A), by inserting ‘‘or 

2 a depository institution holding company (as de3 fined in section 3(w)(1) of the Federal Deposit 

4 Insurance Act (12 U.S.C. 1813(w)(1))’’ after 

5 ‘‘a bank (as defined in section 581)’’, and 

6 (B) in subparagraph (C), by inserting ‘‘or 

7 company’’ after ‘‘such bank’’. 

8 (b) AMENDMENT RELATED TO SECTION 237 OF THE

9 ACT.—Subparagraph (F) of section 1362(d)(3) is amend10 ed by striking ‘‘a bank holding company’’ and all that fol11 lows through ‘‘section 2(p) of such Act)’’ and inserting 

12 ‘‘a depository institution holding company (as defined in 

13 section 3(w)(1) of the Federal Deposit Insurance Act (12 

14 U.S.C. 1813(w)(1))’’. 

15 (c) AMENDMENTS RELATED TO SECTION 239 OF

16 THE ACT.—Paragraph (3) of section 1361(b) is amend17 ed— 

18 (1) in subparagraph (A), by striking ‘‘and in 

19 the case of information returns required under part 

20 III of subchapter A of chapter 61’’, and 

21 (2) by adding at the end the following new sub22 paragraph: 

23 ‘‘(E) INFORMATION RETURNS.—Except to 

24 the extent provided by the Secretary, this para25 graph shall not apply to information returns 
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1 made by a qualified subchapter S subsidiary 

2 under part III of subchapter A of chapter 61.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect as if included in the provisions 

5 of the American Jobs Creation Act of 2004 to which they 

6 relate. 

Æ