PUBLIC LAW 110–172—DEC. 29, 2007 121 STAT. 2473 

Public Law 110–172 

110th Congress 

An Act 

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

for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Tax Technical 

Corrections Act of 2007’’. 

(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 

provided, whenever in this Act an amendment or repeal is expressed 

in terms of an amendment to, or repeal of, a section or other 

provision, the reference shall be considered to be made to a section 

or other provision of the Internal Revenue Code of 1986. 

(c) TABLE OF CONTENTS.—The table of contents of this Act 

is as follows: 

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

Sec. 2. Amendment related to the Tax Relief and Health Care Act of 2006. 

Sec. 3. Amendments related to title XII of the Pension Protection Act of 2006. 

Sec. 4. Amendments related to the Tax Increase Prevention and Reconciliation Act 

of 2005. 

Sec. 5. Amendments related to the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. 

Sec. 6. Amendments related to the Energy Policy Act of 2005. 

Sec. 7. Amendments related to the American Jobs Creation Act of 2004. 

Sec. 8. Amendments related to the Economic Growth and Tax Relief Reconciliation 

Act of 2001. 

Sec. 9. Amendments related to the Tax Relief Extension Act of 1999. 

Sec. 10. Amendment related to the Internal Revenue Service Restructuring and Reform Act of 1998. 

Sec. 11. Clerical corrections. 

SEC. 2. AMENDMENT RELATED TO THE TAX RELIEF AND HEALTH CARE 

ACT OF 2006. 

(a) AMENDMENT RELATED TO SECTION 402 OF DIVISION A OF

THE ACT.—Subparagraph (A) of section 53(e)(2) is amended to read 

as follows: 

‘‘(A) IN GENERAL.—The term ‘AMT refundable credit 

amount’ means, with respect to any taxable year, the 

amount (not in excess of the long-term unused minimum 

tax credit for such taxable year) equal to the greater of— 

‘‘(i) $5,000, 

‘‘(ii) 20 percent of the long-term unused minimum 

tax credit for such taxable year, or 

‘‘(iii) the amount (if any) of the AMT refundable 

credit amount determined under this paragraph for 

26 USC 53. 

26 USC 1 et seq. 

26 USC 1 note. 

Tax Technical 

Corrections Act 

of 2007. 

Dec. 29, 2007 

[H.R. 4839] 


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121 STAT. 2474 PUBLIC LAW 110–172—DEC. 29, 2007 

the taxpayer’s preceding taxable year (as determined 

before any reduction under subparagraph (B)).’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall take effect as if included in the provision of the Tax Relief 

and Health Care Act of 2006 to which it relates. 

SEC. 3. AMENDMENTS RELATED TO TITLE XII OF THE PENSION 

PROTECTION ACT OF 2006. 

(a) AMENDMENT RELATED TO SECTION 1201 OF THE ACT.— 

Subparagraph (D) of section 408(d)(8) is amended by striking ‘‘all 

amounts distributed from all individual retirement plans were 

treated as 1 contract under paragraph (2)(A) for purposes of determining the inclusion of such distribution under section 72’’ and 

inserting ‘‘all amounts in all individual retirement plans of the 

individual were distributed during such taxable year and all such 

plans were treated as 1 contract for purposes of determining under 

section 72 the aggregate amount which would have been so includible’’. 

(b) AMENDMENT RELATED TO SECTION 1203 OF THE ACT.— 

Subsection (d) of section 1366 is amended by adding at the end 

the following new paragraph: 

‘‘(4) APPLICATION OF LIMITATION ON CHARITABLE CONTRIBUTIONS.—In the case of any charitable contribution of property 

to which the second sentence of section 1367(a)(2) applies, 

paragraph (1) shall not apply to the extent of the excess (if 

any) of— 

‘‘(A) the shareholder’s pro rata share of such contribution, over 

‘‘(B) the shareholder’s pro rata share of the adjusted 

basis of such property.’’. 

(c) AMENDMENT RELATED TO SECTION 1215 OF THE ACT.—Subclause (I) of section 170(e)(7)(D)(i) is amended by striking ‘‘related’’ 

and inserting ‘‘substantial and related’’. 

(d) AMENDMENTS RELATED TO SECTION 1218 OF THE ACT.— 

(1) Section 2055 is amended by striking subsection (g) 

and by redesignating subsection (h) as subsection (g). 

(2) Subsection (e) of section 2522 is amended— 

(A) by striking paragraphs (2) and (4), 

(B) by redesignating paragraph (3) as paragraph (2), 

and 

(C) by adding at the end of paragraph (2), as so redesignated, the following new subparagraph: 

‘‘(C) INITIAL FRACTIONAL CONTRIBUTION.—For purposes 

of this paragraph, the term ‘initial fractional contribution’ 

means, with respect to any donor, the first gift of an 

undivided portion of the donor’s entire interest in any 

tangible personal property for which a deduction is allowed 

under subsection (a) or (b).’’. 

(e) AMENDMENTS RELATED TO SECTION 1219 OF THE ACT.— 

(1) Paragraph (2) of section 6695A(a) is amended by 

inserting ‘‘a substantial estate or gift tax valuation understatement (within the meaning of section 6662(g)),’’ before ‘‘or a 

gross valuation misstatement’’. 

(2) Paragraph (1) of section 6696(d) is amended by striking 

‘‘or under section 6695’’ and inserting ‘‘, section 6695, or 6695A’’. 

26 USC 408. 

26 USC 53 note. 


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PUBLIC LAW 110–172—DEC. 29, 2007 121 STAT. 2475 

(f) AMENDMENT RELATED TO SECTION 1221 OF THE ACT.— Subparagraph (A) of section 4940(c)(4) is amended to read as follows: 

‘‘(A) There shall not be taken into account any gain 

or loss from the sale or other disposition of property to 

the extent that such gain or loss is taken into account 

for purposes of computing the tax imposed by section 511.’’. 

(g) AMENDMENT RELATED TO SECTION 1225 OF THE ACT.— (1) Subsection (b) of section 6104 is amended— 

(A) by striking ‘‘INFORMATION’’ in the heading, and 

(B) by adding at the end the following: ‘‘Any annual 

return which is filed under section 6011 by an organization 

described in section 501(c)(3) and which relates to any 

tax imposed by section 511 (relating to imposition of tax 

on unrelated business income of charitable, etc., organizations) shall be treated for purposes of this subsection in 

the same manner as if furnished under section 6033.’’. 

(2) Clause (ii) of section 6104(d)(1)(A) is amended to read 

as follows: 

‘‘(ii) any annual return which is filed under section 

6011 by an organization described in section 501(c)(3) 

and which relates to any tax imposed by section 511 

(relating to imposition of tax on unrelated business 

income of charitable, etc., organizations),’’. 

(3) Paragraph (2) of section 6104(d) is amended by striking 

‘‘section 6033’’ and inserting ‘‘section 6011 or 6033’’. 

(h) AMENDMENT RELATED TO SECTION 1231 OF THE ACT.— 

Subsection (b) of section 4962 is amended by striking ‘‘or D’’ and 

inserting ‘‘D, or G’’. 

(i) AMENDMENT RELATED TO SECTION 1242 OF THE ACT.— 

(1) Subclause (II) of section 4958(c)(3)(A)(i) is amended 

by striking ‘‘paragraph (1), (2), or (4) of section 509(a)’’ and 

inserting ‘‘subparagraph (C)(ii)’’. 

(2) Clause (ii) of section 4958(c)(3)(C) is amended to read 

as follows: 

‘‘(ii) EXCEPTION.—Such term shall not include— 

‘‘(I) any organization described in paragraph 

(1), (2), or (4) of section 509(a), and 

‘‘(II) any organization which is treated as 

described in such paragraph (2) by reason of the 

last sentence of section 509(a) and which is a supported organization (as defined in section 509(f)(3)) 

of the organization to which subparagraph (A) 

applies.’’. 

(j) EFFECTIVE DATE.—The amendments made by this section 

shall take effect as if included in the provisions of the Pension 

Protection Act of 2006 to which they relate. 

SEC. 4. AMENDMENTS RELATED TO THE TAX INCREASE PREVENTION 

AND RECONCILIATION ACT OF 2005. 

(a) AMENDMENTS RELATED TO SECTION 103 OF THE ACT.—Paragraph (6) of section 954(c) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph 

(A) the following new subparagraph: 

‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply 

in the case of any interest, rent, or royalty to the extent 

such interest, rent, or royalty creates (or increases) a deficit 

26 USC 170 note. 

26 USC 4940. 


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121 STAT. 2476 PUBLIC LAW 110–172—DEC. 29, 2007 

which under section 952(c) may reduce the subpart F 

income of the payor or another controlled foreign corporation.’’. 

(b) AMENDMENTS RELATED TO SECTION 202 OF THE ACT.— 

(1) Subparagraph (A) of section 355(b)(2) is amended to 

read as follows: 

‘‘(A) it is engaged in the active conduct of a trade 

or business,’’. 

(2) Paragraph (3) of section 355(b) is amended to read 

as follows: 

‘‘(3) SPECIAL RULES FOR DETERMINING ACTIVE CONDUCT IN

THE CASE OF AFFILIATED GROUPS.— 

‘‘(A) IN GENERAL.—For purposes of determining 

whether a corporation meets the requirements of paragraph 

(2)(A), all members of such corporation’s separate affiliated 

group shall be treated as one corporation. 

‘‘(B) SEPARATE AFFILIATED GROUP.—For purposes of 

this paragraph, the term ‘separate affiliated group’ means, 

with respect to any corporation, the affiliated group which 

would be determined under section 1504(a) if such corporation were the common parent and section 1504(b) did not 

apply. 

‘‘(C) TREATMENT OF TRADE OR BUSINESS CONDUCTED

BY ACQUIRED MEMBER.—If a corporation became a member 

of a separate affiliated group as a result of one or more 

transactions in which gain or loss was recognized in whole 

or in part, any trade or business conducted by such corporation (at the time that such corporation became such a 

member) shall be treated for purposes of paragraph (2) 

as acquired in a transaction in which gain or loss was 

recognized in whole or in part. 

‘‘(D) REGULATIONS.—The Secretary shall prescribe such 

regulations as are necessary or appropriate to carry out 

the purposes of this paragraph, including regulations which 

provide for the proper application of subparagraphs (B), 

(C), and (D) of paragraph (2), and modify the application 

of subsection (a)(3)(B), in connection with the application 

of this paragraph.’’. 

(3) The Internal Revenue Code of 1986 shall be applied 

and administered as if the amendments made by section 202 

of the Tax Increase Prevention and Reconciliation Act of 2005 

and by section 410 of division A of the Tax Relief and Health 

Care Act of 2006 had never been enacted. 

(c) AMENDMENT RELATED TO SECTION 515 OF THE ACT.—Subsection (f) of section 911 is amended to read as follows: 

‘‘(f) DETERMINATION OF TAX LIABILITY.— 

‘‘(1) IN GENERAL.—If, for any taxable year, any amount 

is excluded from gross income of a taxpayer under subsection 

(a), then, notwithstanding sections 1 and 55— 

‘‘(A) if such taxpayer has taxable income for such taxable year, the tax imposed by section 1 for such taxable 

year shall be equal to the excess (if any) of— 

‘‘(i) the tax which would be imposed by section 

1 for such taxable year if the taxpayer’s taxable income 

were increased by the amount excluded under subsection (a) for such taxable year, over 

Applicability. 

26 USC 355 note. 

26 USC 355. 


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‘‘(ii) the tax which would be imposed by section 

1 for such taxable year if the taxpayer’s taxable income 

were equal to the amount excluded under subsection 

(a) for such taxable year, and 

‘‘(B) if such taxpayer has a taxable excess (as defined 

in section 55(b)(1)(A)(ii)) for such taxable year, the amount 

determined under the first sentence of section 55(b)(1)(A)(i) 

for such taxable year shall be equal to the excess (if any) 

of— 

‘‘(i) the amount which would be determined under 

such sentence for such taxable year (subject to the 

limitation of section 55(b)(3)) if the taxpayer’s taxable 

excess (as so defined) were increased by the amount 

excluded under subsection (a) for such taxable year, 

over 

‘‘(ii) the amount which would be determined under 

such sentence for such taxable year if the taxpayer’s 

taxable excess (as so defined) were equal to the amount 

excluded under subsection (a) for such taxable year. 

‘‘(2) SPECIAL RULES.— 

‘‘(A) REGULAR TAX.—In applying section 1(h) for purposes of determining the tax under paragraph (1)(A)(i) 

for any taxable year in which, without regard to this subsection, the taxpayer’s net capital gain exceeds taxable 

income (hereafter in this subparagraph referred to as the 

capital gain excess)— 

‘‘(i) the taxpayer’s net capital gain (determined 

without regard to section 1(h)(11)) shall be reduced 

(but not below zero) by such capital gain excess, 

‘‘(ii) the taxpayer’s qualified dividend income shall 

be reduced by so much of such capital gain excess 

as exceeds the taxpayer’s net capital gain (determined 

without regard to section 1(h)(11) and the reduction 

under clause (i)), and 

‘‘(iii) adjusted net capital gain, unrecaptured section 1250 gain, and 28-percent rate gain shall each 

be determined after increasing the amount described 

in section 1(h)(4)(B) by such capital gain excess. 

‘‘(B) ALTERNATIVE MINIMUM TAX.—In applying section 

55(b)(3) for purposes of determining the tax under paragraph (1)(B)(i) for any taxable year in which, without 

regard to this subsection, the taxpayer’s net capital gain 

exceeds the taxable excess (as defined in section 

55(b)(1)(A)(ii))— 

‘‘(i) the rules of subparagraph (A) shall apply, 

except that such subparagraph shall be applied by 

substituting ‘the taxable excess (as defined in section 

55(b)(1)(A)(ii))’ for ‘taxable income’, and 

‘‘(ii) the reference in section 55(b)(3)(B) to the 

excess described in section 1(h)(1)(B) shall be treated 

as a reference to such excess as determined under 

the rules of subparagraph (A) for purposes of determining the tax under paragraph (1)(A)(i). 

‘‘(C) DEFINITIONS.—Terms used in this paragraph 

which are also used in section 1(h) shall have the respective 

meanings given such terms by section 1(h), except that 

Applicability. 


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121 STAT. 2478 PUBLIC LAW 110–172—DEC. 29, 2007 

in applying subparagraph (B) the adjustments under part 

VI of subchapter A shall be taken into account.’’. 

(d) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall take effect 

as if included in the provisions of the Tax Increase Prevention 

and Reconciliation Act of 2005 to which they relate. 

(2) MODIFICATION OF ACTIVE BUSINESS DEFINITION UNDER

SECTION 355.— 

(A) IN GENERAL.—Except as otherwise provided in this 

paragraph, the amendments made by subsection (b) shall 

apply to distributions made after May 17, 2006. 

(B) TRANSITION RULE.—The amendments made by subsection (b) shall not apply to any distribution pursuant 

to a transaction which is— 

(i) made pursuant to an agreement which was 

binding on May 17, 2006, and at all times thereafter, 

(ii) described in a ruling request submitted to the 

Internal Revenue Service on or before such date, or 

(iii) described on or before such date in a public 

announcement or in a filing with the Securities and 

Exchange Commission. 

(C) ELECTION OUT OF TRANSITION RULE.—Subparagraph (B) shall not apply if the distributing corporation 

elects not to have such subparagraph apply to distributions 

of such corporation. Any such election, once made, shall 

be irrevocable. 

(D) SPECIAL RULE FOR CERTAIN PRE-ENACTMENT DISTRIBUTIONS.—For purposes of determining the continued 

qualification under section 355(b)(2)(A) of the Internal Revenue Code of 1986 of distributions made on or before May 

17, 2006, as a result of an acquisition, disposition, or other 

restructuring after such date, such distribution shall be 

treated as made on the date of such acquisition, disposition, 

or restructuring for purposes of applying subparagraphs 

(A) through (C) of this paragraph. The preceding sentence 

shall only apply with respect to the corporation that undertakes such acquisition, disposition, or other restructuring, 

and only if such application results in continued qualification under section 355(b)(2)(A) of such Code. 

(3) AMENDMENT RELATED TO SECTION 515 OF THE ACT.— 

The amendment made by subsection (c) shall apply to taxable 

years beginning after December 31, 2006. 

SEC. 5. AMENDMENTS RELATED TO THE SAFE, ACCOUNTABLE, 

FLEXIBLE, EFFICIENT TRANSPORTATION EQUITY ACT: A 

LEGACY FOR USERS. 

(a) AMENDMENTS RELATED TO SECTION 11113 OF THE ACT.— 

(1) Paragraph (3) of section 6427(i) is amended— 

(A) by inserting ‘‘or under subsection (e)(2) by any 

person with respect to an alternative fuel (as defined in 

section 6426(d)(2))’’ after ‘‘section 6426’’ in subparagraph 

(A), 

(B) by inserting ‘‘or (e)(2)’’ after ‘‘subsection (e)(1)’’ in 

subparagraphs (A)(i) and (B), and 

26 USC 6427. 

Applicability. 

26 USC 355 note. 


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PUBLIC LAW 110–172—DEC. 29, 2007 121 STAT. 2479 

(C) by striking ‘‘ALCOHOL FUEL AND BIODIESEL MIXTURE

CREDIT’’ and inserting ‘‘MIXTURE CREDITS AND THE ALTERNATIVE FUEL CREDIT’’ in the heading thereof. 

(2) Subparagraph (F) of section 6426(d)(2) is amended by 

striking ‘‘hydrocarbons’’ and inserting ‘‘fuel’’. 

(3) Section 6426 is amended by adding at the end the 

following new subsection: 

‘‘(h) DENIAL OF DOUBLE BENEFIT.—No credit shall be determined under subsection (d) or (e) with respect to any fuel with 

respect to which credit may be determined under subsection (b) 

or (c) or under section 40 or 40A.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall take effect as if included in the provisions of the SAFETEA– 

LU to which they relate. 

SEC. 6. AMENDMENTS RELATED TO THE ENERGY POLICY ACT OF 2005. 

(a) AMENDMENT RELATED TO SECTION 1306 OF THE ACT.— 

Paragraph (2) of section 45J(b) is amended to read as follows: 

‘‘(2) AMOUNT OF NATIONAL LIMITATION.—The aggregate 

amount of national megawatt capacity limitation allocated by 

the Secretary under paragraph (3) shall not exceed 6,000 

megawatts.’’. 

(b) AMENDMENTS RELATED TO SECTION 1342 OF THE ACT.— 

(1) So much of subsection (b) of section 30C as precedes 

paragraph (1) thereof is amended to read as follows: 

‘‘(b) LIMITATION.—The credit allowed under subsection (a) with 

respect to all qualified alternative fuel vehicle refueling property 

placed in service by the taxpayer during the taxable year at a 

location shall not exceed—’’. 

(2) Subsection (c) of section 30C is amended to read as 

follows: 

‘‘(c) QUALIFIED ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.—For purposes of this section, the term ‘qualified alternative 

fuel vehicle refueling property’ has the same meaning as the term 

‘qualified clean-fuel vehicle refueling property’ would have under 

section 179A if— 

‘‘(1) paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, 

and 

‘‘(2) only the following were treated as clean-burning fuels 

for purposes of section 179A(d): 

‘‘(A) Any fuel at least 85 percent of the volume of 

which consists of one or more of the following: ethanol, 

natural gas, compressed natural gas, liquified natural gas, 

liquefied petroleum gas, or hydrogen. 

‘‘(B) Any mixture— 

‘‘(i) which consists of two or more of the following: 

biodiesel (as defined in section 40A(d)(1)), diesel fuel 

(as defined in section 4083(a)(3)), or kerosene, and 

‘‘(ii) at least 20 percent of the volume of which 

consists of biodiesel (as so defined) determined without 

regard to any kerosene in such mixture.’’. 

(c) AMENDMENTS RELATED TO SECTION 1351 OF THE ACT.— 

(1) Paragraph (3) of section 41(a) is amended by inserting 

‘‘for energy research’’ before the period at the end. 

26 USC 6426 

note. 

26 USC 6426. 


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121 STAT. 2480 PUBLIC LAW 110–172—DEC. 29, 2007 

(2) Paragraph (6) of section 41(f) is amended by adding 

at the end the following new subparagraph: 

‘‘(E) ENERGY RESEARCH.—The term ‘energy research’ 

does not include any research which is not qualified 

research.’’. 

(d) AMENDMENTS RELATED TO SECTION 1362 OF THE ACT.— (1)(A) Paragraph (1) of section 4041(d) is amended by 

adding at the end the following new sentence: ‘‘No tax shall 

be imposed under the preceding sentence on the sale or use 

of any liquid if tax was imposed with respect to such liquid 

under section 4081 at the Leaking Underground Storage Tank 

Trust Fund financing rate.’’. 

(B) Paragraph (3) of section 4042(b) is amended to read 

as follows: 

‘‘(3) EXCEPTION FOR FUEL ON WHICH LEAKING UNDERGROUND

STORAGE TANK TRUST FUND FINANCING RATE SEPARATELY

IMPOSED.—The Leaking Underground Storage Tank Trust Fund 

financing rate under paragraph (2)(B) shall not apply to the 

use of any fuel if tax was imposed with respect to such fuel 

under section 4041(d) or 4081 at the Leaking Underground 

Storage Tank Trust Fund financing rate.’’. 

(C) Notwithstanding section 6430 of the Internal Revenue 

Code of 1986, a refund, credit, or payment may be made under 

subchapter B of chapter 65 of such Code for taxes imposed 

with respect to any liquid after September 30, 2005, and before 

the date of the enactment of this Act under section 4041(d)(1) 

or 4042 of such Code at the Leaking Underground Storage 

Tank Trust Fund financing rate to the extent that tax was 

imposed with respect to such liquid under section 4081 at 

the Leaking Underground Storage Tank Trust Fund financing 

rate. 

(2)(A) Paragraph (5) of section 4041(d) is amended— 

(i) by striking ‘‘(other than with respect to any sale 

for export under paragraph (3) thereof)’’, and 

(ii) by adding at the end the following new sentence: 

‘‘The preceding sentence shall not apply with respect to 

subsection (g)(3) and so much of subsection (g)(1) as relates 

to vessels (within the meaning of section 4221(d)(3)) 

employed in foreign trade or trade between the United 

States and any of its possessions.’’. 

(B) Section 4082 is amended— 

(i) by striking ‘‘(other than such tax at the Leaking 

Underground Storage Tank Trust Fund financing rate 

imposed in all cases other than for export)’’ in subsection 

(a), and 

(ii) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after 

subsection (e) the following new subsection: 

‘‘(f) EXCEPTION FOR LEAKING UNDERGROUND STORAGE TANK

TRUST FUND FINANCING RATE.— 

‘‘(1) IN GENERAL.—Subsection (a) shall not apply to the 

tax imposed under section 4081 at the Leaking Underground 

Storage Tank Trust Fund financing rate. 

‘‘(2) EXCEPTION FOR EXPORT, ETC.—Paragraph (1) shall not 

apply with respect to any fuel if the Secretary determines 

that such fuel is destined for export or for use by the purchaser 

as supplies for vessels (within the meaning of section 4221(d)(3)) 

26 USC 6430 

note. 

26 USC 41. 


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employed in foreign trade or trade between the United States 

and any of its possessions.’’. 

(C) Subsection (e) of section 4082 is amended— 

(i) by striking ‘‘an aircraft, the rate of tax under section 

4081(a)(2)(A)(iii) shall be zero.’’ and inserting ‘‘an aircraft— 

‘‘(1) the rate of tax under section 4081(a)(2)(A)(iii) shall 

be zero, and 

‘‘(2) if such aircraft is employed in foreign trade or trade 

between the United States and any of its possessions, the 

increase in such rate under section 4081(a)(2)(B) shall be zero.’’; 

and 

(ii) by moving the last sentence flush with the margin 

of such subsection (following the paragraph (2) added by 

clause (i)). 

(D) Section 6430 is amended to read as follows: 

‘‘SEC. 6430. TREATMENT OF TAX IMPOSED AT LEAKING UNDERGROUND 

STORAGE TANK TRUST FUND FINANCING RATE. 

‘‘No refunds, credits, or payments shall be made under this 

subchapter for any tax imposed at the Leaking Underground Storage Tank Trust Fund financing rate, except in the case of fuels— 

‘‘(1) which are exempt from tax under section 4081(a) by 

reason of section 4082(f)(2), 

‘‘(2) which are exempt from tax under section 4041(d) by 

reason of the last sentence of paragraph (5) thereof, or 

‘‘(3) with respect to which the rate increase under section 

4081(a)(2)(B) is zero by reason of section 4082(e)(2).’’. 

(3) Paragraph (5) of section 4041(d) is amended by inserting 

‘‘(b)(1)(A),’’ after ‘‘subsections’’. 

(e) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall take effect 

as if included in the provisions of the Energy Policy Act of 

2005 to which they relate. 

(2) NONAPPLICATION OF EXEMPTION FOR OFF-HIGHWAY BUSI- NESS USE.—The amendment made by subsection (d)(3) shall 

apply to fuel sold for use or used after the date of the enactment 

of this Act. 

(3) AMENDMENT MADE BY THE SAFETEA–LU.—The amendment made by subsection (d)(2)(C)(ii) shall take effect as if 

included in section 11161 of the SAFETEA–LU. 

SEC. 7. AMENDMENTS RELATED TO THE AMERICAN JOBS CREATION 

ACT OF 2004. 

(a) AMENDMENTS RELATED TO SECTION 339 OF THE ACT.— 

(1)(A) Section 45H is amended by striking subsection (d) 

and by redesignating subsections (e), (f), and (g) as subsections 

(d), (e), and (f), respectively. 

(B) Subsection (d) of section 280C is amended to read 

as follows: 

‘‘(d) CREDIT FOR LOW SULFUR DIESEL FUEL PRODUCTION.— The deductions otherwise allowed under this chapter for the taxable 

year shall be reduced by the amount of the credit determined 

for the taxable year under section 45H(a).’’. 

(C) Subsection (a) of section 1016 is amended by striking 

paragraph (31) and by redesignating paragraphs (32) through 

(37) as paragraphs (31) through (36), respectively. 

26 USC 30c note. 

26 USC 4082. 


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(2)(A) Section 45H, as amended by paragraph (1), is 

amended by adding at the end the following new subsection: 

‘‘(g) ELECTION TO NOT TAKE CREDIT.—No credit shall be determined under subsection (a) for the taxable year if the taxpayer 

elects not to have subsection (a) apply to such taxable year.’’. 

(B) Subsection (m) of section 6501 is amended by inserting 

‘‘45H(g),’’ after ‘‘45C(d)(4),’’. 

(3)(A) Subsections (b)(1)(A), (c)(2), (e)(1), and (e)(2) of section 45H (as amended by paragraph (1)) and section 179B(a) 

are each amended by striking ‘‘qualified capital costs’’ and 

inserting ‘‘qualified costs’’. 

(B) The heading of paragraph (2) of section 45H(c) is 

amended by striking ‘‘CAPITAL’’. 

(C) Subsection (a) of section 179B is amended by inserting 

‘‘and which are properly chargeable to capital account’’ before 

the period at the end. 

(b) AMENDMENTS RELATED TO SECTION 710 OF THE ACT.— 

(1) Clause (ii) of section 45(c)(3)(A) is amended by striking 

‘‘which is segregated from other waste materials and’’. 

(2) Subparagraph (B) of section 45(d)(2) is amended by 

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

(ii), and by redesignating clause (iii) as clause (ii). 

(c) AMENDMENTS RELATED TO SECTION 848 OF THE ACT.— 

(1) Paragraph (2) of section 470(c) is amended to read 

as follows: 

‘‘(2) TAX-EXEMPT USE PROPERTY.— 

‘‘(A) IN GENERAL.—The term ‘tax-exempt use property’ 

has the meaning given to such term by section 168(h), 

except that such section shall be applied— 

‘‘(i) without regard to paragraphs (1)(C) and (3) 

thereof, and 

‘‘(ii) as if section 197 intangible property (as 

defined in section 197), and property described in paragraph (1)(B) or (2) of section 167(f), were tangible property. 

‘‘(B) EXCEPTION FOR PARTNERSHIPS.—Such term shall 

not include any property which would (but for this subparagraph) be tax-exempt use property solely by reason of section 168(h)(6). 

‘‘(C) CROSS REFERENCE.—For treatment of partnerships 

as leases to which section 168(h) applies, see section 

7701(e).’’. 

(2) Subparagraph (A) of section 470(d)(1) is amended by 

striking ‘‘(at any time during the lease term)’’ and inserting 

‘‘(at all times during the lease term)’’. 

(d) AMENDMENTS RELATED TO SECTION 888 OF THE ACT.— 

(1) Subparagraph (A) of section 1092(a)(2) is amended by 

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

(iii) as clause (iv), and by inserting after clause (ii) the following 

new clause: 

‘‘(iii) if the application of clause (ii) does not result 

in an increase in the basis of any offsetting position 

in the identified straddle, the basis of each of the 

offsetting positions in the identified straddle shall be 

increased in a manner which— 

Applicability. 

26 USC 6501. 


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PUBLIC LAW 110–172—DEC. 29, 2007 121 STAT. 2483 

‘‘(I) is reasonable, consistent with the purposes 

of this paragraph, and consistently applied by the 

taxpayer, and 

‘‘(II) results in an aggregate increase in the 

basis of such offsetting positions which is equal 

to the loss described in clause (ii), and’’. 

(2)(A) Subparagraph (B) of section 1092(a)(2) is amended 

by adding at the end the following flush sentence: 

‘‘A straddle shall be treated as clearly identified for purposes of clause (i) only if such identification includes an 

identification of the positions in the straddle which are 

offsetting with respect other positions in the straddle.’’. 

(B) Subparagraph (A) of section 1092(a)(2) is amended— 

(i) by striking ‘‘identified positions’’ in clause (i) and 

inserting ‘‘positions’’, 

(ii) by striking ‘‘identified position’’ in clause (ii) and 

inserting ‘‘position’’, and 

(iii) by striking ‘‘identified offsetting positions’’ in 

clause (ii) and inserting ‘‘offsetting positions’’. 

(C) Subparagraph (B) of section 1092(a)(3) is amended by 

striking ‘‘identified offsetting position’’ and inserting ‘‘offsetting 

position’’. 

(3) Paragraph (2) of section 1092(a) is amended by redesignating subparagraph (C) as subparagraph (D) and inserting 

after subparagraph (B) the following new subparagraph: 

‘‘(C) APPLICATION TO LIABILITIES AND OBLIGATIONS.— 

Except as otherwise provided by the Secretary, rules 

similar to the rules of clauses (ii) and (iii) of subparagraph 

(A) shall apply for purposes of this paragraph with respect 

to any position which is, or has been, a liability or obligation.’’. 

(4) Subparagraph (D) of section 1092(a)(2), as redesignated 

by paragraph (3), is amended by inserting ‘‘the rules for the 

application of this section to a position which is or has been 

a liability or obligation, methods of loss allocation which satisfy 

the requirements of subparagraph (A)(iii),’’ before ‘‘and the 

ordering rules’’. 

(e) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as otherwise provided in this subsection, the amendments made by this section shall take effect 

as if included in the provisions of the American Jobs Creation 

Act of 2004 to which they relate. 

(2) IDENTIFICATION REQUIREMENT OF AMENDMENT RELATED

TO SECTION 888 OF THE AMERICAN JOBS CREATION ACT OF 2004.— 

The amendment made by subsection (d)(2)(A) shall apply to 

straddles acquired after the date of the enactment of this Act. 

SEC. 8. AMENDMENTS RELATED TO THE ECONOMIC GROWTH AND TAX 

RELIEF RECONCILIATION ACT OF 2001. 

(a) AMENDMENTS RELATED TO SECTION 617 OF THE ACT.— 

(1) Subclause (II) of section 402(g)(7)(A)(ii) is amended 

by striking ‘‘for prior taxable years’’ and inserting ‘‘permitted 

for prior taxable years by reason of this paragraph’’. 

(2) Subparagraph (A) of section 3121(v)(1) is amended by 

inserting ‘‘or consisting of designated Roth contributions (as 

defined in section 402A(c))’’ before the comma at the end. 

Applicability. 

26 USC 1092 

note. 

26 USC 1092. 


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121 STAT. 2484 PUBLIC LAW 110–172—DEC. 29, 2007 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall take effect as if included in the provisions of the Economic 

Growth and Tax Relief Reconciliation Act of 2001 to which they 

relate. 

SEC. 9. AMENDMENTS RELATED TO THE TAX RELIEF EXTENSION ACT 

OF 1999. 

(a) AMENDMENT RELATED TO SECTION 507 OF THE ACT.—Clause 

(i) of section 45(e)(7)(A) is amended by striking ‘‘placed in service 

by the taxpayer’’ and inserting ‘‘originally placed in service’’. 

(b) AMENDMENT RELATED TO SECTION 542 OF THE ACT.—Clause 

(ii) of section 856(d)(9)(D) is amended to read as follows: 

‘‘(ii) LODGING FACILITY.—The term ‘lodging facility’ 

means a— 

‘‘(I) hotel, 

‘‘(II) motel, or 

‘‘(III) other establishment more than one-half 

of the dwelling units in which are used on a transient basis.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect as if included in the provisions of the Tax Relief 

Extension Act of 1999 to which they relate. 

SEC. 10. AMENDMENT RELATED TO THE INTERNAL REVENUE SERVICE 

RESTRUCTURING AND REFORM ACT OF 1998. 

(a) AMENDMENT RELATED TO SECTION 3509 OF THE ACT.— 

Paragraph (3) of section 6110(i) is amended by inserting ‘‘and 

related background file documents’’ after ‘‘Chief Counsel advice’’ 

in the matter preceding subparagraph (A). 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall take effect as if included in the provision of the Internal 

Revenue Service Restructuring and Reform Act of 1998 to which 

it relates. 

SEC. 11. CLERICAL CORRECTIONS. 

(a) IN GENERAL.— 

(1) Paragraph (5) of section 21(e) is amended by striking 

‘‘section 152(e)(3)(A)’’ in the flush matter after subparagraph 

(B) and inserting ‘‘section 152(e)(4)(A)’’. 

(2) Paragraph (3) of section 25C(c) is amended by striking 

‘‘section 3280’’ and inserting ‘‘part 3280’’. 

(3) Paragraph (2) of section 26(b) is amended by redesignating subparagraphs (S) and (T) as subparagraphs (U) and 

(V), respectively, and by inserting after subparagraph (R) the 

following new subparagraphs: 

‘‘(S) sections 106(e)(3)(A)(ii), 223(b)(8)(B)(i)(II), and 

408(d)(9)(D)(i)(II) (relating to certain failures to maintain 

high deductible health plan coverage), 

‘‘(T) section 170(o)(3)(B) (relating to recapture of certain 

deductions for fractional gifts),’’. 

(4) Subsection (a) of section 34 is amended— 

(A) in paragraph (1), by striking ‘‘with respect to gasoline used during the taxable year on a farm for farming 

purposes’’, 

(B) in paragraph (2), by striking ‘‘with respect to gasoline used during the taxable year: (A) otherwise than as 

a fuel in a highway vehicle; or (B) in vehicles while engaged 

26 USC 6110 

note. 

26 USC 45 note. 

26 USC 45. 

26 USC 402 note. 


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PUBLIC LAW 110–172—DEC. 29, 2007 121 STAT. 2485 

in furnishing certain public passenger land transportation 

service’’, and 

(C) in paragraph (3), by striking ‘‘with respect to fuels 

used for nontaxable purposes or resold during the taxable 

year’’. 

(5) Paragraph (2) of section 35(d) is amended— 

(A) by striking ‘‘paragraph (2) or (4) of’’, and 

(B) by striking ‘‘(within the meaning of section 

152(e)(1))’’ and inserting ‘‘(as defined in section 

152(e)(4)(A))’’. 

(6) Subsection (b) of section 38 is amended— 

(A) by striking ‘‘and’’ each place it appears at the 

end of any paragraph, 

(B) by striking ‘‘plus’’ each place it appears at the 

end of any paragraph, and 

(C) by inserting ‘‘plus’’ at the end of paragraph (30). 

(7) Paragraphs (2) and (3) of section 45L(c) are each 

amended by striking ‘‘section 3280’’ and inserting ‘‘part 3280’’. 

(8) Subsection (c) of section 48 is amended by striking 

‘‘subsection’’ in the text preceding paragraph (1) and inserting 

‘‘section’’. 

(9) Paragraphs (1)(B) and (2)(B) of section 48(c) are each 

amended by striking ‘‘paragraph (1)’’ and inserting ‘‘subsection 

(a)’’. 

(10) Clause (ii) of section 48A(d)(4)(B) is amended by 

striking ‘‘subsection’’ both places it appears. 

(11)(A) Paragraph (9) of section 121(d) is amended by 

adding at the end the following new subparagraph: 

‘‘(E) TERMINATION WITH RESPECT TO EMPLOYEES OF

INTELLIGENCE COMMUNITY.—Clause (iii) of subparagraph 

(A) shall not apply with respect to any sale or exchange 

after December 31, 2010.’’. 

(B) Subsection (e) of section 417 of division A of the Tax 

Relief and Health Care Act of 2006 is amended by striking 

‘‘and before January 1, 2011’’. 

(12) The last sentence of section 125(b)(2) is amended by 

striking ‘‘last sentence’’ and inserting ‘‘second sentence’’. 

(13) Subclause (II) of section 167(g)(8)(C)(ii) is amended 

by striking ‘‘section 263A(j)(2)’’ and inserting ‘‘section 

263A(i)(2)’’. 

(14)(A) Clause (vii) of section 170(b)(1)(A) is amended by 

striking ‘‘subparagraph (E)’’ and inserting ‘‘subparagraph (F)’’. 

(B) Clause (ii) of section 170(e)(1)(B) is amended by striking 

‘‘subsection (b)(1)(E)’’ and inserting ‘‘subsection (b)(1)(F)’’. 

(C) Clause (i) of section 1400S(a)(2)(A) is amended by 

striking ‘‘subparagraph (F)’’ and inserting ‘‘subparagraph (G)’’. 

(D) Subparagraph (A) of section 4942(i)(1) is amended by 

striking ‘‘section 170(b)(1)(E)(ii)’’ and inserting ‘‘section 

170(b)(1)(F)(ii)’’. 

(15) Subclause (II) of section 170(e)(1)(B)(i) is amended 

by inserting ‘‘, but without regard to clause (ii) thereof’’ after 

‘‘paragraph (7)(C)’’. 

(16)(A) Subparagraph (A) of section 170(o)(1) and subparagraph (A) of section 2522(e)(1) are each amended by striking 

‘‘all interest in the property is’’ and inserting ‘‘all interests 

in the property are’’. 

26 USC 121 note. 

26 USC 35. 


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121 STAT. 2486 PUBLIC LAW 110–172—DEC. 29, 2007 

(B) Section 170(o)(3)(A)(i), and section 2522(e)(2)(A)(i) (as 

redesignated by section 3(d)(2)), are each amended— 

(i) by striking ‘‘interest’’ and inserting ‘‘interests’’, and 

(ii) by striking ‘‘before’’ and inserting ‘‘on or before’’. 

(17)(A) Subparagraph (C) of section 852(b)(4) is amended 

to read as follows: 

‘‘(C) DETERMINATION OF HOLDING PERIODS.—For purposes of this paragraph, in determining the period for 

which the taxpayer has held any share of stock— 

‘‘(i) the rules of paragraphs (3) and (4) of section 

246(c) shall apply, and 

‘‘(ii) there shall not be taken into account any 

day which is more than 6 months after the date on 

which such share becomes ex-dividend.’’. 

(B) Subparagraph (B) of section 857(b)(8) is amended to 

read as follows: 

‘‘(B) DETERMINATION OF HOLDING PERIODS.—For purposes of this paragraph, in determining the period for 

which the taxpayer has held any share of stock or beneficial 

interest— 

‘‘(i) the rules of paragraphs (3) and (4) of section 

246(c) shall apply, and 

‘‘(ii) there shall not be taken into account any 

day which is more than 6 months after the date on 

which such share or interest becomes ex-dividend.’’. 

(18) Paragraph (2) of section 856(l) is amended by striking 

the last sentence and inserting the following: ‘‘For purposes 

of subparagraph (B), securities described in subsection (m)(2)(A) 

shall not be taken into account.’’. 

(19) Subparagraph (F) of section 954(c)(1) is amended to 

read as follows: 

‘‘(F) INCOME FROM NOTIONAL PRINCIPAL CONTRACTS.— 

‘‘(i) IN GENERAL.—Net income from notional principal contracts. 

‘‘(ii) COORDINATION WITH OTHER CATEGORIES OF

FOREIGN PERSONAL HOLDING COMPANY INCOME.—Any 

item of income, gain, deduction, or loss from a notional 

principal contract entered into for purposes of hedging 

any item described in any preceding subparagraph 

shall not be taken into account for purposes of this 

subparagraph but shall be taken into account under 

such other subparagraph.’’. 

(20) Paragraph (1) of section 954(c) is amended by redesignating subparagraph (I) as subparagraph (H). 

(21) Paragraph (33) of section 1016(a), as redesignated 

by section 7(a)(1)(C), is amended by striking ‘‘section 25C(e)’’ 

and inserting ‘‘section 25C(f)’’. 

(22) Paragraph (36) of section 1016(a), as redesignated 

by section 7(a)(1)(C), is amended by striking ‘‘section 30C(f)’’ 

and inserting ‘‘section 30C(e)(1)’’. 

(23) Subparagraph (G) of section 1260(c)(2) is amended 

by adding ‘‘and’’ at the end. 

(24)(A) Section 1297 is amended by striking subsection 

(d) and by redesignating subsections (e) and (f) as subsections 

(d) and (e), respectively. 

(B) Subparagraph (G) of section 1260(c)(2) is amended by 

striking ‘‘subsection (e)’’ and inserting ‘‘subsection (d)’’. 

Applicability. 

Applicability. 

26 USC 852. 


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PUBLIC LAW 110–172—DEC. 29, 2007 121 STAT. 2487 

(C) Subparagraph (B) of section 1298(a)(2) is amended by 

striking ‘‘Section 1297(e)’’ and inserting ‘‘Section 1297(d)’’. 

(25) Paragraph (1) of section 1362(f) is amended— 

(A) by striking ‘‘, section 1361(b)(3)(B)(ii), or section 

1361(c)(1)(A)(ii)’’ and inserting ‘‘or section 1361(b)(3)(B)(ii)’’, 

and 

(B) by striking ‘‘, section 1361(b)(3)(C), or section 

1361(c)(1)(D)(iii)’’ in subparagraph (B) and inserting ‘‘or 

section 1361(b)(3)(C)’’. 

(26) Paragraph (2) of section 1400O is amended by striking 

‘‘under of’’ and inserting ‘‘under’’. 

(27) The table of sections for part II of subchapter Y of 

chapter 1 is amended by adding at the end the following new 

item: 

‘‘Sec. 1400T. Special rules for mortgage revenue bonds.’’. 

(28) Subsection (b) of section 4082 is amended to read 

as follows: 

‘‘(b) NONTAXABLE USE.—For purposes of this section, the term 

‘nontaxable use’ means— 

‘‘(1) any use which is exempt from the tax imposed by 

section 4041(a)(1) other than by reason of a prior imposition 

of tax, 

‘‘(2) any use in a train, and 

‘‘(3) any use described in section 4041(a)(1)(C)(iii)(II). 

The term ‘nontaxable use’ does not include the use of kerosene 

in an aircraft and such term shall not include any use described 

in section 6421(e)(2)(C).’’. 

(29) Paragraph (4) of section 4101(a) (relating to registration in event of change of ownership) is redesignated as paragraph (5). 

(30) Paragraph (6) of section 4965(c) is amended by striking 

‘‘section 4457(e)(1)(A)’’ and inserting ‘‘section 457(e)(1)(A)’’. 

(31) Subpart C of part II of subchapter A of chapter 51 

is amended by redesignating section 5432 (relating to recordkeeping by wholesale dealers) as section 5121. 

(32) Paragraph (2) of section 5732(c), as redesignated by 

section 11125(b)(20)(A) of the SAFETEA–LU, is amended by 

striking ‘‘this subpart’’ and inserting ‘‘this subchapter’’. 

(33) Subsection (b) of section 6046 is amended— 

(A) by striking ‘‘subsection (a)(1)’’ and inserting ‘‘subsection (a)(1)(A)’’, and 

(B) by striking ‘‘paragraph (2) or (3) of subsection (a)’’ 

and inserting ‘‘subparagraph (B) or (C) of subsection (a)(1)’’. 

(34)(A) Subparagraph (A) of section 6103(b)(5) is amended 

by striking ‘‘the Canal Zone,’’. 

(B) Section 7651 is amended by striking paragraph (4) 

and by redesignating paragraph (5) as paragraph (4). 

(35) Subparagraph (A) of section 6211(b)(4) is amended 

by striking ‘‘and 34’’ and inserting ‘‘34, and 35’’. 

(36) Subparagraphs (A) and (B) of section 6230(a)(3) are 

each amended by striking ‘‘section 6013(e)’’ and inserting ‘‘section 6015’’. 

(37) Paragraph (3) of section 6427(e) (relating to termination), as added by section 11113 of the SAFETEA–LU, is 

redesignated as paragraph (5) and moved after paragraph (4). 

26 USC 1298. 


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121 STAT. 2488 PUBLIC LAW 110–172—DEC. 29, 2007 

(38) Clause (ii) of section 6427(l)(4)(A) is amended by 

striking ‘‘section 4081(a)(2)(iii)’’ and inserting ‘‘section 

4081(a)(2)(A)(iii)’’. 

(39)(A) Section 6427, as amended by section 1343(b)(1) 

of the Energy Policy Act of 2005, is amended by striking subsection (p) (relating to gasohol used in noncommercial aviation) 

and redesignating subsection (q) as subsection (p). 

(B) The Internal Revenue Code of 1986 shall be applied 

and administered as if the amendments made by paragraph 

(2) of section 11151(a) of the SAFETEA–LU had never been 

enacted. 

(40) Subsection (a) of section 6695A is amended by striking 

‘‘then such person’’ in paragraph (2) and inserting the following: 

‘‘then such person’’. 

(41) Subparagraph (C) of section 6707A(e)(2) is amended 

by striking ‘‘section 6662A(e)(2)(C)’’ and inserting ‘‘section 

6662A(e)(2)(B)’’. 

(42)(A) Paragraph (3) of section 9002 is amended by 

striking ‘‘section 309(a)(1)’’ and inserting ‘‘section 306(a)(1)’’. 

(B) Paragraph (1) of section 9004(a) is amended by striking 

‘‘section 320(b)(1)(B)’’ and inserting ‘‘section 315(b)(1)(B)’’. 

(C) Paragraph (3) of section 9032 is amended by striking 

‘‘section 309(a)(1)’’ and inserting ‘‘section 306(a)(1)’’. 

(D) Subsection (b) of section 9034 is amended by striking 

‘‘section 320(b)(1)(A)’’ and inserting ‘‘section 315(b)(1)(A)’’. 

(43) Section 9006 is amended by striking ‘‘Comptroller General’’ each place it appears and inserting ‘‘Commission’’. 

(44) Subsection (c) of section 9503 is amended by redesignating paragraph (7) (relating to transfers from the trust fund 

for certain aviation fuels taxes) as paragraph (6). 

(45) Paragraph (1) of section 1301(g) of the Energy Policy 

Act of 2005 is amended by striking ‘‘shall take effect of the 

date of the enactment’’ and inserting ‘‘shall take effect on 

the date of the enactment’’. 

(46) The Internal Revenue Code of 1986 shall be applied 

and administered as if the amendments made by section 1(a) 

of Public Law 109–433 had never been enacted. 

(b) CLERICAL AMENDMENTS RELATED TO THE TAX RELIEF AND

HEALTH CARE ACT OF 2006.— 

(1) AMENDMENT RELATED TO SECTION 209 OF DIVISION A

OF THE ACT.—Paragraph (3) of section 168(l) is amended by 

striking ‘‘enzymatic’’. 

(2) AMENDMENTS RELATED TO SECTION 419 OF DIVISION A

OF THE ACT.— 

(A) Clause (iv) of section 6724(d)(1)(B) is amended 

by inserting ‘‘or (h)(1)’’ after ‘‘section 6050H(a)’’. 

(B) Subparagraph (K) of section 6724(d)(2) is amended 

by inserting ‘‘or (h)(2)’’ after ‘‘section 6050H(d)’’. 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect as if included in the provision of the 

Tax Relief and Health Care Act of 2006 to which they relate. 

(c) CLERICAL AMENDMENTS RELATED TO THE GULF OPPORTUNITY

ZONE ACT OF 2005.— 

(1) AMENDMENTS RELATED TO SECTION 402 OF THE ACT.— 

Subparagraph (B) of section 24(d)(1) is amended— 

(A) by striking ‘‘the excess (if any) of’’ in the matter 

preceding clause (i) and inserting ‘‘the greater of’’, and 

26 USC 168 note. 

Applicability. 

26 USC 9508 

note. 

26 USC 45 note. 

Applicability. 

26 USC 6427 

note. 

26 USC 6427. 


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PUBLIC LAW 110–172—DEC. 29, 2007 121 STAT. 2489 

(B) by striking ‘‘section’’ in clause (ii)(II) and inserting 

‘‘section 32’’. 

(2) EFFECTIVE DATE.—The amendments made by this subsection shall take effect as if included in the provisions of 

the Gulf Opportunity Zone Act of 2005 to which they relate. 

(d) CLERICAL AMENDMENTS RELATED TO THE SAFE, ACCOUNT- ABLE, FLEXIBLE, EFFICIENT TRANSPORTATION EQUITY ACT: A LEGACY

FOR USERS.— 

(1) AMENDMENTS RELATED TO SECTION 11163 OF THE ACT.— Subparagraph (C) of section 6416(a)(4) is amended— 

(A) by striking ‘‘ultimate vendor’’ and all that follows 

through ‘‘has certified’’ and inserting ‘‘ultimate vendor or 

credit card issuer has certified’’, and 

(B) by striking ‘‘all ultimate purchasers of the vendor’’ 

and all that follows through ‘‘are certified’’ and inserting 

‘‘all ultimate purchasers of the vendor or credit card issuer 

are certified’’. 

(2) EFFECTIVE DATE.—The amendments made by this subsection shall take effect as if included in the provisions of 

the Safe, Accountable, Flexible, Efficient Transportation Equity 

Act: A Legacy for Users to which they relate. 

(e) CLERICAL AMENDMENTS RELATED TO THE ENERGY POLICY

ACT OF 2005.— 

(1) AMENDMENT RELATED TO SECTION 1344 OF THE ACT.— 

Subparagraph (B) of section 6427(e)(5), as redesignated by subsection (a)(37), is amended by striking ‘‘2006’’ and inserting 

‘‘2008’’. 

(2) AMENDMENTS RELATED TO SECTION 1351 OF THE ACT.— 

Subparagraphs (A)(ii) and (B)(ii) of section 41(f)(1) are each 

amended by striking ‘‘qualified research expenses and basic 

research payments’’ and inserting ‘‘qualified research expenses, 

basic research payments, and amounts paid or incurred to 

energy research consortiums,’’. 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect as if included in the provisions of 

the Energy Policy Act of 2005 to which they relate. 

(f) CLERICAL AMENDMENTS RELATED TO THE AMERICAN JOBS

CREATION ACT OF 2004.— 

(1) AMENDMENT RELATED TO SECTION 301 OF THE ACT.— 

Section 9502 is amended by striking subsection (e) and redesignating subsection (f) as subsection (e). 

(2) AMENDMENT RELATED TO SECTION 413 OF THE ACT.— 

Subsection (b) of section 1298 is amended by striking paragraph 

(7) and by redesignating paragraphs (8) and (9) as paragraphs 

(7) and (8), respectively. 

(3) AMENDMENT RELATED TO SECTION 895 OF THE ACT.— 

Clause (iv) of section 904(f)(3)(D) is amended by striking ‘‘a 

controlled group’’ and inserting ‘‘an affiliated group’’. 

(4) EFFECTIVE DATE.—The amendments made by this subsection shall take effect as if included in the provisions of 

the American Jobs Creation Act of 2004 to which they relate. 

(g) CLERICAL AMENDMENTS RELATED TO THE FSC REPEAL AND

EXTRATERRITORIAL INCOME EXCLUSION ACT OF 2000.— 

(1) Subclause (I) of section 56(g)(4)(C)(ii) is amended by 

striking ‘‘921’’ and inserting ‘‘921 (as in effect before its repeal 

by the FSC Repeal and Extraterritorial Income Exclusion Act 

of 2000)’’. 

26 USC 904 note. 

26 USC 41 note. 

26 USC 6416 

note. 

26 USC 6416. 

26 USC 24 note. 


jbridges on POFP91QD1 with PUBLIC LAWS
121 STAT. 2490 PUBLIC LAW 110–172—DEC. 29, 2007 

(2) Clause (iv) of section 54(g)(4)(C) is amended by striking 

‘‘a cooperative described in section 927(a)(4)’’ and inserting 

‘‘an organization to which part I of subchapter T (relating 

to tax treatment of cooperatives) applies which is engaged 

in the marketing of agricultural or horticultural products’’. 

(3) Paragraph (4) of section 245(c) is amended by adding 

at the end the following new subparagraph: 

‘‘(C) FSC.—The term ‘FSC’ has the meaning given such 

term by section 922.’’. 

(4) Subsection (c) of section 245 is amended by inserting 

at the end the following new paragraph: 

‘‘(5) REFERENCES TO PRIOR LAW.—Any reference in this 

subsection to section 922, 923, or 927 shall be treated as a 

reference to such section as in effect before its repeal by the 

FSC Repeal and Extraterritorial Income Exclusion Act of 

2000.’’. 

(5) Paragraph (4) of section 275(a) is amended by striking 

‘‘if’’ and all that follows and inserting ‘‘if the taxpayer chooses 

to take to any extent the benefits of section 901.’’. 

(6)(A) Subsection (a) of section 291 is amended by striking 

paragraph (4) and by redesignating paragraph (5) as paragraph 

(4). 

(B) Paragraph (1) of section 291(c) is amended by striking 

‘‘subsection (a)(5)’’ and inserting ‘‘subsection (a)(4)’’. 

(7)(A) Paragraph (4) of section 441(b) is amended by 

striking ‘‘FSC or’’. 

(B) Subsection (h) of section 441 is amended— 

(i) by striking ‘‘FSC or’’ each place it appears, and 

(ii) by striking ‘‘FSC’S AND’’ in the heading thereof. 

(8) Subparagraph (B) of section 884(d)(2) is amended by 

inserting before the comma ‘‘(as in effect before their repeal 

by the FSC Repeal and Extraterritorial Income Exclusion Act 

of 2000)’’. 

(9) Section 901 is amended by striking subsection (h). 

(10) Clause (v) of section 904(d)(2)(B) is amended— 

(A) by inserting ‘‘and’’ at the end of subclause (I), 

by striking subclause (II), and by redesignating subclause 

(III) as subclause (II), 

(B) by striking ‘‘a FSC (or a former FSC)’’ in subclause 

(II) (as so redesignated) and inserting ‘‘a former FSC (as 

defined in section 922)’’, and 

(C) by adding at the end the following: 

‘‘Any reference in subclause (II) to section 922, 923, 

or 927 shall be treated as a reference to such section 

as in effect before its repeal by the FSC Repeal and 

Extraterritorial Income Exclusion Act of 2000.’’. 

(11) Subsection (b) of section 906 is amended by striking 

paragraph (5) and redesignating paragraphs (6) and (7) as 

paragraphs (5) and (6), respectively. 

(12) Subparagraph (B) of section 936(f)(2) is amended by 

striking ‘‘FSC or’’. 

(13) Section 951 is amended by striking subsection (c) 

and by redesignating subsection (d) as subsection (c). 

(14) Subsection (b) of section 952 is amended by striking 

the second sentence. 

(15)(A) Paragraph (2) of section 956(c) is amended— 

26 USC 56. 


jbridges on POFP91QD1 with PUBLIC LAWS
PUBLIC LAW 110–172—DEC. 29, 2007 121 STAT. 2491 

LEGISLATIVE HISTORY—H.R. 4839: 

CONGRESSIONAL RECORD, Vol. 153 (2007): 

Dec. 19, considered and passed House and Senate. 

Æ 

(i) by striking subparagraph (I) and by redesignating 

subparagraphs (J) through (M) as subparagraphs (I) 

through (L), respectively, and 

(ii) by striking ‘‘subparagraphs (J), (K), and (L)’’ in 

the flush sentence at the end and inserting ‘‘subparagraphs 

(I), (J), and (K)’’. 

(B) Clause (ii) of section 954(c)(2)(C) is amended by striking 

‘‘section 956(c)(2)(J)’’ and inserting ‘‘section 956(c)(2)(I)’’. 

(16) Paragraph (1) of section 992(a) is amended by striking 

subparagraph (E), by inserting ‘‘and’’ at the end of subparagraph (C), and by striking ‘‘, and’’ at the end of subparagraph 

(D) and inserting a period. 

(17) Paragraph (5) of section 1248(d) is amended— 

(A) by inserting ‘‘(as defined in section 922)’’ after 

‘‘a FSC’’, and 

(B) by adding at the end the following new sentence: 

‘‘Any reference in this paragraph to section 922, 923, or 

927 shall be treated as a reference to such section as 

in effect before its repeal by the FSC Repeal and 

Extraterritorial Income Exclusion Act of 2000.’’. 

(18) Subparagraph (D) of section 1297(b)(2) is amended 

by striking ‘‘foreign trade income of a FSC or’’. 

(19)(A) Paragraph (1) of section 6011(c) is amended by 

striking ‘‘or former DISC or a FSC or former FSC’’ and inserting 

‘‘, former DISC, or former FSC (as defined in section 922 

as in effect before its repeal by the FSC Repeal and 

Extraterritorial Income Exclusion Act of 2000)’’. 

(B) Subsection (c) of section 6011 is amended by striking 

‘‘AND FSC’S’’ in the heading thereof. 

(20) Subsection (c) of section 6072 is amended by striking 

‘‘a FSC or former FSC’’ and inserting ‘‘a former FSC (as defined 

in section 922 as in effect before its repeal by the FSC Repeal 

and Extraterritorial Income Exclusion Act of 2000)’’. 

(21) Section 6686 is amended by inserting ‘‘FORMER’’ 

before ‘‘FSC’’ in the heading thereof. 

Approved December 29, 2007. 

26 USC 954. 


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