I 

110TH CONGRESS 

2D SESSION H. R. 5109 

To amend the Internal Revenue Code of 1986 to provide for permanent 

tax incentives for economic growth. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 23, 2008 

Mr. GARRETT of New Jersey (for himself, Mr. JORDAN of Ohio, Mr. AKIN, 

Mrs. BLACKBURN, Mr. CAMPBELL of California, Mr. CANTOR, Mr. 

CULBERSON, Mr. DAVID DAVIS of Tennessee, Mr. FEENEY, Mr. FLAKE, 

Mr. FRANKS of Arizona, Mr. GINGREY, Mr. GOHMERT, Mr. 

HENSARLING, Mr. HERGER, Mr. MACK, Mr. MCCAUL of Texas, Mr. 

MCHENRY, Mr. PAUL, Mr. PENCE, Mr. RYAN of Wisconsin, Mrs. 

BACHMANN, Mr. BARTLETT of Maryland, Mr. BILBRAY, Mr. BURTON of 

Indiana, Mr. CANNON, Mr. CARTER, Mrs. CUBIN, Mr. DOOLITTLE, Ms. 

FALLIN, Ms. FOXX, Mr. GOODLATTE, Mr. HUNTER, Mr. ISSA, Mr. SAM

JOHNSON of Texas, Mr. KLINE of Minnesota, Mr. LAMBORN, Mr. MANZULLO, Mr. MARCHANT, Mrs. MUSGRAVE, Mr. PITTS, Mr. PRICE of 

Georgia, Mrs. MCMORRIS RODGERS, Mr. ROSKAM, Mr. SESSIONS, Mr. 

SHADEGG, Mr. SOUDER, Mr. THORNBERRY, Mr. WALBERG, and Mr. 

WILSON of South Carolina) 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 provide 

for permanent tax incentives for economic growth. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Economic Growth Act 

3 of 2008’’. 

4 SEC. 2. REPEAL OF CERTAIN LIMITATIONS ON THE EX5 PENSING OF SECTION 179 PROPERTY. 

6 (a) IN GENERAL.—Section 179 of the Internal Rev7 enue Code of 1986 is amended by striking subsection (b) 

8 and by redesignating subsections (c) and (d) as sub9 sections (b) and (c), respectively. 

10 (b) EXPENSING OF SECTION 1250 PROPERTY.—Sub11 paragraph (B) of section 179(d)(1) of such Code is 

12 amended by inserting ‘‘or section 1250 property (as de13 fined in section 1250(c))’’ after ‘‘section 1245 property 

14 (as defined in section 1245(a)(3))’’. 

15 (c) CONFORMING AMENDMENTS.— 

16 (1) Subsection (c) of section 179 of such Code, 

17 as redesignated by subsection (a), is amended by 

18 striking paragraphs (6) and (8), and by redesig19 nating paragraphs (7), (9), and (10) as paragraphs 

20 (6), (7), and (8), respectively. 

21 (2) Paragraph (6) of section 179 of such Code, 

22 as redesignated by paragraph (1) and subsection (a), 

23 is amended by striking ‘‘paragraphs (2) and (6)’’ 

24 and inserting ‘‘paragraph (2)’’. 

25 (3) Sections 42(d)(2)(B)(i), 1397D(d)(1), 

26 1400B(b)(4)(A)(i) and 1400F(b)(4)(A)(i) of such 


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1 Code are each amended by striking ‘‘section 

2 179(d)(2)’’ and inserting ‘‘section 179(c)(2)’’. 

3 (4) Subclause (I) of section 42(d)(2)(D)(iii) of 

4 such Code is amended— 

5 (A) by striking ‘‘section 179(d)’’ and in6 serting ‘‘section 179(c)’’, and 

7 (B) by striking ‘‘section 179(d)(7)’’ and 

8 inserting ‘‘section 179(c)(6)’’. 

9 (5)(A) Subpart B of part III of subchapter U 

10 of chapter 1 of such Code is hereby repealed. 

11 (B) The table of subparts for such part III is 

12 amended by striking the item relating to subpart B. 

13 (6)(A) Part III of subchapter X of chapter 1 of 

14 such Code is amended by striking section 1400J. 

15 (B) The table of sections for such part is 

16 amended by striking the item relating to section 

17 1400J. 

18 (C) Paragraph (3) of section 1400E(b) of such 

19 Code is amended by striking ‘‘sections 1400F and 

20 1400J’’ and inserting ‘‘section 1400F’’. 

21 (7) Clause (iv) of section 1400L(b)(2)(A) of 

22 such Code is amended by striking ‘‘section 179(d)’’ 

23 and inserting ‘‘section 179(c)’’. 

24 (8) Section 1400L of such Code is amended by 

25 striking subsection (f). 


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

2 this section shall apply to property placed in service in 

3 taxable years beginning after December 31, 2007. 

4 SEC. 3. REDUCTION IN CORPORATE MARGINAL INCOME 

5 TAX RATES. 

6 (a) GENERAL RULE.—Paragraph (1) of section 11(b) 

7 of the Internal Revenue Code of 1986 is amended— 

8 (1) by inserting ‘‘and’’ at the end of subpara9 graph (A), 

10 (2) by striking ‘‘but does not exceed $75,000,’’ 

11 in subparagraph (B) and inserting a period, 

12 (3) by striking subparagraphs (C) and (D), and 

13 (4) by striking the last 2 sentences. 

14 (b) PERSONAL SERVICE CORPORATIONS.—Para15 graph (2) of section 11(b) of such Code is amended by 

16 striking ‘‘35 percent’’ and inserting ‘‘25 percent’’. 

17 (c) CONFORMING AMENDMENTS.—Paragraphs (1) 

18 and (2) of section 1445(e) of such Code are each amended 

19 by striking ‘‘35 percent’’ and inserting ‘‘25 percent’’. 

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

21 this section shall apply to taxable years beginning after 

22 December 31, 2007, except that the amendments made 

23 by subsection (c) shall take effect on the date of the enact24 ment of this Act. 


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1 SEC. 4. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF 

2 DETERMINING GAIN OR LOSS. 

3 (a) IN GENERAL.—Part II of subchapter O of chap4 ter 1 (relating to basis rules of general application) is 

5 amended by redesignating section 1023 as section 1024 

6 and by inserting after section 1022 the following new sec7 tion: 

8 ‘‘SEC. 1023. INDEXING OF CERTAIN ASSETS FOR PURPOSES 

9 OF DETERMINING GAIN OR LOSS. 

10 ‘‘(a) GENERAL RULE.— 

11 ‘‘(1) INDEXED BASIS SUBSTITUTED FOR AD12 JUSTED BASIS.—Solely for purposes of determining 

13 gain or loss on the sale or other disposition by a tax14 payer (other than a corporation) of an indexed asset 

15 which has been held for more than 3 years, the in16 dexed basis of the asset shall be substituted for its 

17 adjusted basis. 

18 ‘‘(2) EXCEPTION FOR DEPRECIATION, ETC.— 

19 The deductions for depreciation, depletion, and am20 ortization shall be determined without regard to the 

21 application of paragraph (1) to the taxpayer or any 

22 other person. 

23 ‘‘(3) WRITTEN DOCUMENTATION REQUIRE24 MENT.—Paragraph (1) shall apply only with respect 

25 to indexed assets for which the taxpayer has written 


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1 documentation of the original purchase price paid or 

2 incurred by the taxpayer to acquire such asset. 

3 ‘‘(b) INDEXED ASSET.— 

4 ‘‘(1) IN GENERAL.—For purposes of this sec5 tion, the term ‘indexed asset’ means— 

6 ‘‘(A) common stock in a C corporation 

7 (other than a foreign corporation), or 

8 ‘‘(B) tangible property, 

9 which is a capital asset or property used in the trade 

10 or business (as defined in section 1231(b)). 

11 ‘‘(2) STOCK IN CERTAIN FOREIGN CORPORA12 TIONS INCLUDED.—For purposes of this section— 

13 ‘‘(A) IN GENERAL.—The term ‘indexed 

14 asset’ includes common stock in a foreign cor15 poration which is regularly traded on an estab16 lished securities market. 

17 ‘‘(B) EXCEPTION.—Subparagraph (A) 

18 shall not apply to— 

19 ‘‘(i) stock of a foreign investment 

20 company, 

21 ‘‘(ii) stock in a passive foreign invest22 ment company (as defined in section 

23 1296), 

24 ‘‘(iii) stock in a foreign corporation 

25 held by a United States person who meets 


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1 the requirements of section 1248(a)(2), 

2 and 

3 ‘‘(iv) stock in a foreign personal hold4 ing company. 

5 ‘‘(C) TREATMENT OF AMERICAN DEPOSI6 TORY RECEIPTS.—An American depository re7 ceipt for common stock in a foreign corporation 

8 shall be treated as common stock in such cor9 poration. 

10 ‘‘(c) INDEXED BASIS.—For purposes of this sec11 tion— 

12 ‘‘(1) GENERAL RULE.—The indexed basis for 

13 any asset is— 

14 ‘‘(A) the adjusted basis of the asset, in15 creased by 

16 ‘‘(B) the applicable inflation adjustment. 

17 ‘‘(2) APPLICABLE INFLATION ADJUSTMENT.— 

18 The applicable inflation adjustment for any asset is 

19 an amount equal to— 

20 ‘‘(A) the adjusted basis of the asset, multi21 plied by 

22 ‘‘(B) the percentage (if any) by which— 

23 ‘‘(i) the gross domestic product 

24 deflator for the last calendar quarter end25 ing before the asset is disposed of, exceeds 


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1 ‘‘(ii) the gross domestic product 

2 deflator for the last calendar quarter end3 ing before the asset was acquired by the 

4 taxpayer. 

5 The percentage under subparagraph (B) shall be 

rounded to the nearest 1 6 ⁄10 of 1 percentage point. 

7 ‘‘(3) GROSS DOMESTIC PRODUCT DEFLATOR.— 

8 The gross domestic product deflator for any cal9 endar quarter is the implicit price deflator for the 

10 gross domestic product for such quarter (as shown 

11 in the last revision thereof released by the Secretary 

12 of Commerce before the close of the following cal13 endar quarter). 

14 ‘‘(d) SUSPENSION OF HOLDING PERIOD WHERE DI15 MINISHED RISK OF LOSS; TREATMENT OF SHORT

16 SALES.— 

17 ‘‘(1) IN GENERAL.—If the taxpayer (or a re18 lated person) enters into any transaction which sub19 stantially reduces the risk of loss from holding any 

20 asset, such asset shall not be treated as an indexed 

21 asset for the period of such reduced risk. 

22 ‘‘(2) SHORT SALES.— 

23 ‘‘(A) IN GENERAL.—In the case of a short 

24 sale of an indexed asset with a short sale period 

25 in excess of 3 years, for purposes of this title, 


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1 the amount realized shall be an amount equal 

2 to the amount realized (determined without re3 gard to this paragraph) increased by the appli4 cable inflation adjustment. In applying sub5 section (c)(2) for purposes of the preceding sen6 tence, the date on which the property is sold 

7 short shall be treated as the date of acquisition 

8 and the closing date for the sale shall be treat9 ed as the date of disposition. 

10 ‘‘(B) SHORT SALE PERIOD.—For purposes 

11 of subparagraph (A), the short sale period be12 gins on the day that the property is sold and 

13 ends on the closing date for the sale. 

14 ‘‘(e) TREATMENT OF REGULATED INVESTMENT

15 COMPANIES AND REAL ESTATE INVESTMENT TRUSTS.— 

16 ‘‘(1) ADJUSTMENTS AT ENTITY LEVEL.— 

17 ‘‘(A) IN GENERAL.—Except as otherwise 

18 provided in this paragraph, the adjustment 

19 under subsection (a) shall be allowed to any 

20 qualified investment entity (including for pur21 poses of determining the earnings and profits of 

22 such entity). 

23 ‘‘(B) EXCEPTION FOR CORPORATE SHARE24 HOLDERS.—Under regulations— 


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1 ‘‘(i) in the case of a distribution by a 

2 qualified investment entity (directly or in3 directly) to a corporation— 

4 ‘‘(I) the determination of whether 

5 such distribution is a dividend shall be 

6 made without regard to this section, 

7 and 

8 ‘‘(II) the amount treated as gain 

9 by reason of the receipt of any capital 

10 gain dividend shall be increased by the 

11 percentage by which the entity’s net 

12 capital gain for the taxable year (de13 termined without regard to this sec14 tion) exceeds the entity’s net capital 

15 gain for such year determined with re16 gard to this section, and 

17 ‘‘(ii) there shall be other appropriate 

18 adjustments (including deemed distribu19 tions) so as to ensure that the benefits of 

20 this section are not allowed (directly or in21 directly) to corporate shareholders of quali22 fied investment entities. 

23 For purposes of the preceding sentence, any 

24 amount includible in gross income under section 

25 852(b)(3)(D) shall be treated as a capital gain 


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1 dividend and an S corporation shall not be 

2 treated as a corporation. 

3 ‘‘(C) EXCEPTION FOR QUALIFICATION

4 PURPOSES.—This section shall not apply for 

5 purposes of sections 851(b) and 856(c). 

6 ‘‘(D) EXCEPTION FOR CERTAIN TAXES IM7 POSED AT ENTITY LEVEL.— 

8 ‘‘(i) TAX ON FAILURE TO DISTRIBUTE

9 ENTIRE GAIN.—If any amount is subject to 

10 tax under section 852(b)(3)(A) for any 

11 taxable year, the amount on which tax is 

12 imposed under such section shall be in13 creased by the percentage determined 

14 under subparagraph (B)(i)(II). A similar 

15 rule shall apply in the case of any amount 

16 subject to tax under paragraph (2) or (3) 

17 of section 857(b) to the extent attributable 

18 to the excess of the net capital gain over 

19 the deduction for dividends paid deter20 mined with reference to capital gain divi21 dends only. The first sentence of this 

22 clause shall not apply to so much of the 

23 amount subject to tax under section 

24 852(b)(3)(A) as is designated by the com25 pany under section 852(b)(3)(D). 


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1 ‘‘(ii) OTHER TAXES.—This section 

2 shall not apply for purposes of determining 

3 the amount of any tax imposed by para4 graph (4), (5), or (6) of section 857(b). 

5 ‘‘(2) ADJUSTMENTS TO INTERESTS HELD IN

6 ENTITY.— 

7 ‘‘(A) REGULATED INVESTMENT COMPA8 NIES.—Stock in a regulated investment com9 pany (within the meaning of section 851) shall 

10 be an indexed asset for any calendar quarter in 

11 the same ratio as— 

12 ‘‘(i) the average of the fair market 

13 values of the indexed assets held by such 

14 company at the close of each month during 

15 such quarter, bears to 

16 ‘‘(ii) the average of the fair market 

17 values of all assets held by such company 

18 at the close of each such month. 

19 ‘‘(B) REAL ESTATE INVESTMENT

20 TRUSTS.—Stock in a real estate investment 

21 trust (within the meaning of section 856) shall 

22 be an indexed asset for any calendar quarter in 

23 the same ratio as— 


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1 ‘‘(i) the fair market value of the in2 dexed assets held by such trust at the close 

3 of such quarter, bears to 

4 ‘‘(ii) the fair market value of all as5 sets held by such trust at the close of such 

6 quarter. 

7 ‘‘(C) RATIO OF 80 PERCENT OR MORE.—If 

8 the ratio for any calendar quarter determined 

9 under subparagraph (A) or (B) would (but for 

10 this subparagraph) be 80 percent or more, such 

11 ratio for such quarter shall be 100 percent. 

12 ‘‘(D) RATIO OF 20 PERCENT OR LESS.—If 

13 the ratio for any calendar quarter determined 

14 under subparagraph (A) or (B) would (but for 

15 this subparagraph) be 20 percent or less, such 

16 ratio for such quarter shall be zero. 

17 ‘‘(E) LOOK-THRU OF PARTNERSHIPS.—For 

18 purposes of this paragraph, a qualified invest19 ment entity which holds a partnership interest 

20 shall be treated (in lieu of holding a partnership 

21 interest) as holding its proportionate share of 

22 the assets held by the partnership. 

23 ‘‘(3) TREATMENT OF RETURN OF CAPITAL DIS24 TRIBUTIONS.—Except as otherwise provided by the 

25 Secretary, a distribution with respect to stock in a 


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1 qualified investment entity which is not a dividend 

2 and which results in a reduction in the adjusted 

3 basis of such stock shall be treated as allocable to 

4 stock acquired by the taxpayer in the order in which 

5 such stock was acquired. 

6 ‘‘(4) QUALIFIED INVESTMENT ENTITY.—For 

7 purposes of this subsection, the term ‘qualified in8 vestment entity’ means— 

9 ‘‘(A) a regulated investment company 

10 (within the meaning of section 851), and 

11 ‘‘(B) a real estate investment trust (within 

12 the meaning of section 856). 

13 ‘‘(f) OTHER PASS-THRU ENTITIES.— 

14 ‘‘(1) PARTNERSHIPS.— 

15 ‘‘(A) IN GENERAL.—In the case of a part16 nership, the adjustment made under subsection 

17 (a) at the partnership level shall be passed 

18 through to the partners. 

19 ‘‘(B) SPECIAL RULE IN THE CASE OF SEC20 TION 754 ELECTIONS.—In the case of a transfer 

21 of an interest in a partnership with respect to 

22 which the election provided in section 754 is in 

23 effect— 

24 ‘‘(i) the adjustment under section 

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1 feror partner, be treated as a sale of the 

2 partnership assets for purposes of applying 

3 this section, and 

4 ‘‘(ii) with respect to the transferee 

5 partner, the partnership’s holding period 

6 for purposes of this section in such assets 

7 shall be treated as beginning on the date 

8 of such adjustment. 

9 ‘‘(2) S CORPORATIONS.—In the case of an S 

10 corporation, the adjustment made under subsection 

11 (a) at the corporate level shall be passed through to 

12 the shareholders. This section shall not apply for 

13 purposes of determining the amount of any tax im14 posed by section 1374 or 1375. 

15 ‘‘(3) COMMON TRUST FUNDS.—In the case of a 

16 common trust fund, the adjustment made under sub17 section (a) at the trust level shall be passed through 

18 to the participants. 

19 ‘‘(4) INDEXING ADJUSTMENT DISREGARDED IN

20 DETERMINING LOSS ON SALE OF INTEREST IN ENTI21 TY.—Notwithstanding the preceding provisions of 

22 this subsection, for purposes of determining the 

23 amount of any loss on a sale or exchange of an in24 terest in a partnership, S corporation, or common 

25 trust fund, the adjustment made under subsection 


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1 (a) shall not be taken into account in determining 

2 the adjusted basis of such interest. 

3 ‘‘(g) DISPOSITIONS BETWEEN RELATED PERSONS.— 

4 ‘‘(1) IN GENERAL.—This section shall not apply 

5 to any sale or other disposition of property between 

6 related persons except to the extent that the basis 

7 of such property in the hands of the transferee is a 

8 substituted basis. 

9 ‘‘(2) RELATED PERSONS DEFINED.—For pur10 poses of this section, the term ‘related persons’ 

11 means— 

12 ‘‘(A) persons bearing a relationship set 

13 forth in section 267(b), and 

14 ‘‘(B) persons treated as single employer 

15 under subsection (b) or (c) of section 414. 

16 ‘‘(h) TRANSFERS TO INCREASE INDEXING ADJUST17 MENT.—If any person transfers cash, debt, or any other 

18 property to another person and the principal purpose of 

19 such transfer is to secure or increase an adjustment under 

20 subsection (a), the Secretary may disallow part or all of 

21 such adjustment or increase. 

22 ‘‘(i) SPECIAL RULES.—For purposes of this section— 

23 ‘‘(1) TREATMENT OF IMPROVEMENTS, ETC.—If 

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1 ing the taxable year by reason of an improvement to 

2 such property or a contribution to capital of such 

3 corporation— 

4 ‘‘(A) such addition shall never be taken 

5 into account under subsection (c)(1)(A) if the 

6 aggregate amount thereof during the taxable 

7 year with respect to such property or stock is 

8 less than $1,000, and 

9 ‘‘(B) such addition shall be treated as a 

10 separate asset acquired at the close of such tax11 able year if the aggregate amount thereof dur12 ing the taxable year with respect to such prop13 erty or stock is $1,000 or more. 

14 A rule similar to the rule of the preceding sentence 

15 shall apply to any other portion of an asset to the 

16 extent that separate treatment of such portion is ap17 propriate to carry out the purposes of this section. 

18 ‘‘(2) ASSETS WHICH ARE NOT INDEXED ASSETS

19 THROUGHOUT HOLDING PERIOD.—The applicable in20 flation adjustment shall be appropriately reduced for 

21 periods during which the asset was not an indexed 

22 asset. 

23 ‘‘(3) TREATMENT OF CERTAIN DISTRIBU24 TIONS.—A distribution with respect to stock in a 


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1 corporation which is not a dividend shall be treated 

2 as a disposition. 

3 ‘‘(4) SECTION CANNOT INCREASE ORDINARY

4 LOSS.—To the extent that (but for this paragraph) 

5 this section would create or increase a net ordinary 

6 loss to which section 1231(a)(2) applies or an ordi7 nary loss to which any other provision of this title 

8 applies, such provision shall not apply. The taxpayer 

9 shall be treated as having a long-term capital loss in 

10 an amount equal to the amount of the ordinary loss 

11 to which the preceding sentence applies. 

12 ‘‘(5) ACQUISITION DATE WHERE THERE HAS

13 BEEN PRIOR APPLICATION OF SUBSECTION (a)(1) 

14 WITH RESPECT TO THE TAXPAYER.—If there has 

15 been a prior application of subsection (a)(1) to an 

16 asset while such asset was held by the taxpayer, the 

17 date of acquisition of such asset by the taxpayer 

18 shall be treated as not earlier than the date of the 

19 most recent such prior application. 

20 ‘‘(j) REGULATIONS.—The Secretary shall prescribe 

21 such regulations as may be necessary or appropriate to 

22 carry out the purposes of this section. 

23 ‘‘(k) TERMINATION.—For purposes of this section, 

24 the term ‘indexed asset’ shall not include any asset ac25 quired after December 31, 2008.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for part II of subchapter O of chapter 1 is amended by 

3 striking the item relating to section 1023 and by inserting 

4 after the item relating to section 1022 the following new 

5 item: 

‘‘Sec. 1022. Indexing of certain assets for purposes of determining gain or loss. 

‘‘Sec. 1023. Cross references.’’. 

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

7 this section shall apply to sales and other dispositions of 

8 indexed assets after the date of the enactment of this Act, 

9 in taxable years ending after such date. 

10 SEC. 5. REDUCED CAPITAL GAINS RATE FOR CORPORA11 TIONS. 

12 (a) IN GENERAL.—Section 1201 of the Internal Rev13 enue Code of 1986 is amended by striking ‘‘35 percent’’ 

14 both places it appears and inserting ‘‘15 percent’’. 

15 (b) ALTERNATIVE MINIMUM TAX.—Section 55(b) of 

16 such Code is amended by adding at the end the following 

17 new paragraph: 

18 ‘‘(4) MAXIMUM RATE OF TAX ON NET CAPITAL

19 GAIN OF CORPORATIONS.—The amount determined 

20 under paragraph (1)(B)(i) shall not exceed the sum 

21 of— 

22 ‘‘(A) the amount determined under such 

23 paragraph computed at the rates and in the 

24 same manner as if this paragraph had not been 


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1 enacted on the taxable excess reduced by the 

2 net capital gain, plus 

3 ‘‘(B) the amount determined under section 

4 1201.’’. 

5 (c) TECHNICAL AMENDMENTS.— 

6 (1) Section 1445(e)(1) of such Code is amended 

7 by striking ‘‘35 percent (or, to the extent provided 

8 in regulations, 15 percent)’’ and inserting ‘‘15 per9 cent’’. 

10 (2) Section 1445(e)(2) of such Code is amended 

11 by striking ‘‘35 percent’’ and inserting ‘‘15 per12 cent’’. 

13 (3) Section 7518(g)(6)(A) of such Code is 

14 amended by striking ‘‘(34 percent in the case of a 

15 corporation)’’. 

16 (4) Section 607(h)(6)(A) of the Merchant Ma17 rine Act, 1936 is amended by striking ‘‘(34 percent 

18 in the case of a corporation)’’. 

19 (d) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section 

22 shall apply to taxable years beginning after Decem23 ber 31, 2007. 


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1 (2) WITHHOLDING.—The amendment made by 

2 subsection (c)(2) shall apply to amounts paid after 

3 the date of the enactment of this Act. 

Æ 


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