I

103D CONGRESS

1ST SESSION H. R. 2152

To amend the Merchant Marine Act, 1936 to encourage merchant marine

investment, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 19, 1993

Mr. STUDDS (for himself, Mr. LIPINSKI, Mr. FIELDS of Texas, Mr. BATEMAN,

Mr. YOUNG of Alaska, Mr. HUGHES, Mr. HUTTO, Mr. TAUZIN, Mr.

ORTIZ, Mr. MANTON, Mr. PICKETT, Mr. HOCHBRUECKNER, Mr.

PALLONE, Mrs. UNSOELD, Mr. LANCASTER, Mr. ANDREWS of Maine, Mr.

GENE GREEN of Texas, Mr. HASTINGS, Mr. HAMBURG, Mr. STUPAK, Mr.

THOMPSON of Mississippi, Mr. ACKERMAN, and Mr. KING) introduced the

following bill; which was referred jointly to the Committees on Merchant

Marine and Fisheries and Ways and Means

A BILL

To amend the Merchant Marine Act, 1936 to encourage

merchant marine investment, 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.

4 This Act may be cited as the ‘‘Merchant Marine

5 Investment Act of 1993’’.
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1 SEC. 2. AMENDMENTS OF MERCHANT MARINE ACT, 1936.

2 (a) CHANGES IN VESSELS TO WHICH CAPITAL CON3 STRUCTION FUNDS APPLY.—

4 (1) The second sentence of section 607(a) of

5 the Merchant Marine Act, 1936 (46 App. U.S.C.

6 1177) is amended to read as follows: ‘‘Any agree7 ment entered into under this section shall be for the

8 purpose of providing replacement vessels, additional

9 vessels, or reconstructed vessels, built in the United

10 States and documented under the laws of the United

11 States for operation in the foreign or domestic com12 merce of the United States or in the fisheries of the

13 United States and shall provide for the deposit in

14 the fund of the amounts agreed upon as necessary

15 or appropriate to provide for qualified withdrawals

16 under subsection (f).’’

17 (2) Paragraph (1) of section 607(k) of such Act

18 (defining eligible vessel) is amended to read as fol19 lows:

20 ‘‘(1) The term ‘eligible vessel’ means any ves21 sel—

22 ‘‘(A) documented under the laws of the

23 United States, and

24 ‘‘(B) operated in the foreign or domestic

25 commerce of the United States or in the fish26 eries of the United States.’’
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1 (3) Paragraph (2) of section 607(k) of such Act

2 is amended by striking subparagraph (C) and insert3 ing the following:

4 ‘‘(C) which the person maintaining the

5 fund agrees with the Secretary will be operated

6 in the foreign or domestic commerce of the

7 United States or in the fisheries of the United

8 States.

9 Such term shall not include any towing vessel,

10 barge, or dry or liquid bulk vessel operated on the

11 inland waterways of the United States.’’

12 (4) Subsection (f) of section 607 of such Act is

13 amended by adding at the end thereof the following

14 new paragraph:

15 ‘‘(3) For purposes of this subsection, the deter16 mination of whether any withdrawal from amounts

17 in any capital construction fund as of the date of the

18 enactment of the Merchant Marine Investment Act

19 of 1993 (or from earnings thereon) is a qualified

20 withdrawal shall be made using the definition of

21 ‘qualified vessel’ as in effect on the day before such

22 date of the enactment.’’

23 (5) Subsection (k) of section 607 of such Act

24 is amended by adding at the end thereof the follow25 ing new paragraphs:
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1 ‘‘(10) The term ‘inland waterways of the Unit2 ed States’ means any inland waterway of the United

3 States which is described in section 206 of the In4 land Waterways Revenue Act of 1978 (33 U.S.C.

5 1804).

6 ‘‘(11) The terms ‘foreign commerce’ and ‘for7 eign trade’ have the meanings given such terms in

8 section 905, except that such terms shall include

9 commerce or trade between foreign ports.’’

10 (6) Paragraph (7) of section 607(k) of such Act

11 is amended by inserting ‘‘containers or barges in12 tended for use as part of the complement of 1 or

13 more qualified vessels and’’ before ‘‘cargo handling’’.

14 (b) TREATMENT OF FUND EARNINGS.—

15 (1) Section 607 of such Act is amended by add16 ing at the end thereof the following new subsection:

17 ‘‘(n) TAXATION OF EARNINGS ON INVESTMENTS.—

18 ‘‘(1) IN GENERAL.—The tax imposed by chap19 ter 1 of the Internal Revenue Code of 1986 shall be

20 determined—

21 ‘‘(A) by excluding from gross income the

22 taxable earnings from the investment and rein23 vestment of amounts held in a capital construc24 tion fund, and
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1 ‘‘(B) by increasing the tax imposed by

2 such chapter by the product of the amount of

3 such taxable earnings and the highest rate of

4 tax specified in section 1 (section 11 in the case

5 of a corporation) of such Code.

6 ‘‘(2) MAXIMUM RATE ON CAPITAL GAINS.—If

7 there is a net capital gain on amounts held in a cap8 ital construction fund, the rate of tax taken into ac9 count under paragraph (1)(B) with respect to such

10 gain shall not exceed the rate applicable to net cap11 ital gain under section 1(h) or 1201(a) of such

12 Code, as the case may be.

13 ‘‘(3) COORDINATION WITH DEDUCTION FOR

14 NET OPERATING LOSSES.—Any earnings excluded

15 from gross income under paragraph (1) shall be ex16 cluded in determining taxable income under section

17 172(b)(2) of such Code.

18 ‘‘(4) TAXABLE EARNINGS.—For purposes of

19 this section, the term ‘taxable earnings’ means net

20 earnings determined with the following modifica21 tions:

22 ‘‘(A) There shall be excluded interest in23 come exempt from taxation under section 203

24 of such Code.
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1 ‘‘(B) If the person maintaining the fund is

2 a corporation, there shall be excluded the per3 centage applicable under section 243(a)(1) of

4 such Code of any dividend received by the fund

5 with respect to which such person would (but

6 for paragraph (1)(A)) be allowed a deduction

7 under section 243 of such Code.

8 ‘‘(C) Losses from the sale or exchange of

9 capital assets shall be allowed only to the extent

10 of gains from such sales or exchanges.

11 ‘‘(D) There shall be excluded—

12 ‘‘(i) earnings on amounts deposited in

13 the fund which are attributable to vessels

14 documented under the laws of the United

15 States for operation in the fisheries of the

16 United States, and

17 ‘‘(ii) earnings on earnings described in

18 clause (i).’’

19 (2) Subparagraph (D) of section 607(b)(1) of

20 such Act is amended by inserting ‘‘reduced by the

21 tax imposed on such receipts under subsection (n)’’

22 after ‘‘in such fund’’.

23 (3) Subparagraph (C) of section 607(d)(1) of

24 such Act is amended by striking ‘‘shall not be taken
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1 into account’’ and inserting ‘‘shall be taken into ac2 count as provided in subsection (n)’’.

3 (4) Paragraph (2) of section 607(e) of such Act

4 is amended by striking ‘‘and’’ at the end of subpara5 graph (C), by striking the period at the end of sub6 paragraph (D) and inserting ‘‘, and’’, and by adding

7 at the end thereof the following new subparagraph:

8 ‘‘(F) the taxable earnings (as defined in

9 subsection (n)) of the fund for any taxable year

10 beginning after the date of the enactment of the

11 Merchant Marine Investment Act of 1993.’’

12 (5) Paragraph (3) of section 607(e) of such Act

13 is amended by adding at the end thereof the follow14 ing new sentence:

15 ‘‘Any amount included in the taxable earnings (as

16 defined in subsection (n)) of the fund for any tax17 able year beginning after the date of the enactment

18 of the Merchant Marine Investment Act of 1993

19 shall not be taken into account under this para20 graph.’’

21 (6) Paragraph (4) of section 607(e) of such Act

22 is amended by adding at the end thereof the follow23 ing new sentence:

24 ‘‘In the case of taxable years beginning after the

25 date of the enactment of the Merchant Marine In-
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1 vestment Act of 1993, any amount included in the

2 taxable earnings (as defined in subsection (n)) of the

3 fund shall not be taken into account under subpara4 graph (B), and subparagraphs (C) and (E) shall not

5 apply.’’

6 (7) Paragraph (1) of section 607(f) of such Act

7 is amended by striking ‘‘or’’ at the end of subpara8 graph (B), by striking the period at the end of sub9 paragraph (C) and inserting ‘‘, or’’, and by inserting

10 after subparagraph (C) the following new subpara11 graph:

12 ‘‘(D) the payment of the tax imposed by

13 subsection (n).’’

14 (c) TREATMENT OF CERTAIN LEASE PAYMENTS.—

15 (1) Paragraph (1) of section 607(f) of such Act

16 is amended by striking ‘‘or’’ at the end of subpara17 graph (C), by striking the period at the end of sub18 paragraph (D) and inserting ‘‘, or’’, and by inserting

19 after subparagraph (D) the following new subpara20 graph:

21 ‘‘(E) the payment of amounts which reduce

22 the principal amount (as determined under reg23 ulations) of a qualified lease of a qualified ves24 sel or of a barge or container which is part of

25 the complement of a qualified vessel.’’
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1 (2) Paragraph (4) of section 607(g) of such Act

2 is amended by inserting ‘‘(or to reduce the principal

3 amount of any qualified lease)’’ after ‘‘indebted4 ness’’.

5 (3) Subsection (k) of section 607 of such Act

6 is amended by adding at the end thereof the follow7 ing new paragraph:

8 ‘‘(12) The term ‘qualified lease’ means any

9 lease with a term of at least 5 years.’’

10 (d) AUTHORITY TO MAKE DEPOSITS FOR PRIOR

11 YEARS BASED ON AUDIT ADJUSTMENTS.—Subsection (b)

12 of section 607 of such Act is amended by adding at the

13 end thereof the following new paragraph:

14 ‘‘(4) To the extent permitted by joint regula15 tions, deposits may be made in excess of the limita16 tion described in paragraph (1) (and any limitation

17 specified in the agreement) for the taxable year if,

18 by reason of an audit adjustment to a prior taxable

19 year which became final during the taxable year, the

20 amount of the deposit could have been made for

21 such prior taxable year.’’

22 (e) TREATMENT OF CAPITAL GAINS AND LOSSES.—

23 (1) Paragraph (3) of section 607(e) of such Act

24 is amended to read as follows:

25 ‘‘(3) The capital gain account shall consist of—
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1 ‘‘(A) amounts representing long-term cap2 ital gains (as defined in section 1222 of such

3 Code) on assets referred to in subsection

4 (b)(1)(C), reduced by

5 ‘‘(B) amounts representing long-term cap6 ital losses (as defined in such section) on assets

7 held in the fund.’’

8 (2) Subparagraph (B) of section 607(e)(4) of

9 such Act is amended to read as follows:

10 ‘‘(B)(i) amounts representing short-term

11 capital gains (as defined in section 1222 of

12 such Code) on assets referred to in subsection

13 (b)(1)(C), reduced by

14 ‘‘(ii) amounts representing short-term cap15 ital losses (as defined in such section) on assets

16 held in the fund, and’’.

17 (3) Subparagraph (B) of section 607(h)(3) of

18 such Act is amended by striking ‘‘gain’’ and all that

19 follows and inserting ‘‘long-term capital gain (as de20 fined in section 1222 of such Code), and’’.

21 (4) The last sentence of subparagraph (A) of

22 section 607(h)(6) of such Act is amended by striking

23 ‘‘28 percent (34 percent in the case of a corpora24 tion)’’ and inserting ‘‘the rate applicable to net cap-
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1 ital gain under such section 1(h) or 1201(a), as the

2 case may be’’.

3 (f) COMPUTATION OF INTEREST WITH RESPECT TO

4 NONQUALIFIED WITHDRAWALS.—

5 (1) Subparagraph (C) of section 607(h)(3) of

6 such Act is amended—

7 (A) by striking clause (i) and inserting the

8 following new clause:

9 ‘‘(i) no addition to the tax shall be

10 payable under section 6651 of such Code,

11 and’’, and

12 (B) by striking ‘‘paid at the applicable rate

13 (as defined in paragraph (4))’’ in clause (ii) and

14 inserting ‘‘paid in accordance with section 6601

15 of such Code’’.

16 (2) Subsection (h) of section 607 of such Act

17 is amended by striking paragraph (4) and by redes18 ignating paragraphs (5) and (6) as paragraphs (4)

19 and (5), respectively.

20 (3) Subparagraph (A) of section 607(h)(5) of

21 such Act, as redesignated by paragraph (2), is

22 amended by striking ‘‘paragraph (5)’’ and inserting

23 ‘‘paragraph (4)’’.

24 (g) OTHER CHANGES.—
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1 (1) Section 607 of such Act is amended by

2 striking ‘‘the Internal Revenue Code of 1954’’ each

3 place it appears and inserting ‘‘the Internal Revenue

4 Code of 1986’’.

5 (2) Subsection (c) of section 607 of such Act is

6 amended by striking ‘‘interest-bearing securities ap7 proved by the Secretary’’ and inserting ‘‘interest8 bearing securities and other income-producing assets

9 (including accounts receivable) approved by the Sec10 retary’’.

11 SEC. 3. AMENDMENTS OF INTERNAL REVENUE CODE OF

12 1986.

13 (a) TREATMENT OF FUND EARNINGS.—

14 (1) Section 7518 of the Internal Revenue Code

15 of 1986 is amended by redesignating subsections (h)

16 and (i) as subsections (i) and (j), respectively, and

17 by inserting after subsection (g) the following new

18 subsection:

19 ‘‘(h) TAXATION OF EARNINGS ON INVESTMENTS.—

20 ‘‘(1) IN GENERAL.—The tax imposed by chap21 ter 1 shall be determined—

22 ‘‘(A) by excluding from gross income the

23 earnings from the investment and reinvestment

24 of amounts held in a capital construction fund,

25 and
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1 ‘‘(B) by increasing the tax imposed by

2 such chapter by the product of the amount of

3 such earnings and the highest rate of tax speci4 fied in section 1 (section 11 in the case of a

5 corporation).

6 ‘‘(2) MAXIMUM RATE ON CAPITAL GAINS.—If

7 there is a net capital gain on amounts held in a cap8 ital construction fund, the rate of tax taken into ac9 count under paragraph (1)(B) with respect to such

10 gain shall not exceed the rate applicable to net cap11 ital gain under section 1(h) or 1201(a), as the case

12 may be.

13 ‘‘(3) COORDINATION WITH DEDUCTION FOR

14 NET OPERATING LOSSES.—Any earnings excluded

15 from gross income under paragraph (1) shall be ex16 cluded in determining taxable income under section

17 172(b)(2).

18 ‘‘(4) TAXABLE EARNINGS.—For purposes of

19 this section, the term ‘taxable earnings’ means net

20 earnings determined with the following modifica21 tions:

22 ‘‘(A) There shall be excluded interest in23 come exempt from taxation under section 203.

24 ‘‘(B) If the person maintaining the fund is

25 a corporation, there shall be excluded the per-
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1 centage applicable under section 243(a)(1) of

2 any dividend received by the fund with respect

3 to which such person would (but for paragraph

4 (1)(A)) be allowed a deduction under section

5 243.

6 ‘‘(C) Losses from the sale or exchange of

7 capital assets shall be allowed only to the extent

8 of gains from such sales or exchanges.

9 ‘‘(D) There shall be excluded—

10 ‘‘(i) earnings on amounts deposited in

11 the fund which are attributable to vessels

12 documented under the laws of the United

13 States for operation in the fisheries of the

14 United States, and

15 ‘‘(ii) earnings on earnings described in

16 clause (i).’’

17 (2) Subparagraph (D) of section 7518(a)(1) of

18 such Code is amended by inserting ‘‘reduced by the

19 tax imposed on such receipts under subsection (h)’’

20 after ‘‘in such fund’’.

21 (3) Subparagraph (C) of section 7518(c)(1) of

22 such Code is amended by striking ‘‘shall not be

23 taken into account’’ and inserting ‘‘shall be taken

24 into account as provided in subsection (h)’’.
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1 (4) Paragraph (2) of section 7518(d) of such

2 Code is amended by striking ‘‘and’’ at the end of

3 subparagraph (C), by striking the period at the end

4 of subparagraph (D) and inserting ‘‘, and’’, and by

5 adding at the end thereof the following new subpara6 graph:

7 ‘‘(F) the taxable earnings (as defined in

8 subsection (h)) of the fund for any taxable year

9 beginning after the date of the enactment of the

10 Merchant Marine Investment Act of 1993.’’

11 (5) Paragraph (3) of section 7518(d) of such

12 Code is amended by adding at the end thereof the

13 following new sentence: ‘‘Any amount included in

14 the taxable earnings (as defined in subsection (h)) of

15 the fund for any taxable year beginning after the

16 date of the enactment of the Merchant Marine In17 vestment Act of 1993 shall not be taken into ac18 count under this paragraph.’’

19 (6) Paragraph (4) of section 7518(d) of such

20 Code is amended by adding at the end thereof the

21 following new sentence: ‘‘In the case of taxable years

22 beginning after the date of the enactment of the

23 Merchant Marine Investment Act of 1993, any

24 amount included in the taxable earnings (as defined

25 in subsection (h)) of the fund shall not be taken into
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1 account under subparagraph (B), and subpara2 graphs (C) and (E) shall not apply.’’

3 (7) Paragraph (1) of section 7518(g) of such

4 Code is amended by striking ‘‘subsection (h)’’ and

5 inserting ‘‘subsection (i)’’.

6 (8) Paragraph (1) of section 7518(e) of such

7 Code is amended by striking ‘‘or’’ at the end of sub8 paragraph (B), by striking the period at the end of

9 subparagraph (C) and inserting ‘‘, or’’, and by in10 serting after subparagraph (C) the following new

11 subparagraph:

12 ‘‘(D) the tax imposed by subsection (h).’’

13 (b) TREATMENT OF CERTAIN LEASE PAYMENTS.—

14 (1) Paragraph (1) of section 7518(e) of such

15 Code is amended by striking ‘‘or’’ at the end of sub16 paragraph (C), by striking the period at the end of

17 subparagraph (D) and inserting ‘‘, or’’, and by in18 serting after subparagraph (D) the following new

19 subparagraph:

20 ‘‘(E) the payment of amounts which reduce

21 the principal amount (as determined under reg22 ulations) of a qualified lease of a qualified ves23 sel or of a barge or container which is part of

24 the complement of a qualified vessel.
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1 (2) Paragraph (4) of section 7518(f) of such

2 Code is amended by inserting ‘‘(or to reduce the

3 principal amount of any qualified lease)’’ after ‘‘in4 debtedness’’.

5 (c) AUTHORITY TO MAKE DEPOSITS FOR PRIOR

6 YEARS BASED ON AUDIT ADJUSTMENTS.—Subsection (a)

7 of section 7518 of such Code is amended by adding at

8 the end thereof the following new paragraph:

9 ‘‘(4) To the extent permitted by joint regula10 tions, deposits may be made in excess of the limita11 tion described in paragraph (1) (and any limitation

12 specified in the agreement) for the taxable year if,

13 by reason of an audit adjustment to a prior taxable

14 year which became final during the taxable year, the

15 amount of the deposit could have been made for

16 such prior taxable year.’’

17 (d) TREATMENT OF CAPITAL GAINS AND LOSSES.—

18 (1) Paragraph (3) of section 7518(d) of such

19 Code is amended to read as follows:

20 ‘‘(3) The capital gain account shall consist of—

21 ‘‘(A) amounts representing long-term cap22 ital gains (as defined in section 1222) on assets

23 referred to in subsection (b)(1)(C), reduced by
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1 ‘‘(B) amounts representing long-term cap2 ital losses (as defined in such section) on assets

3 held in the fund.’’

4 (2) Subparagraph (B) of section 7518(d)(4) of

5 such Code is amended to read as follows:

6 ‘‘(B)(i) amounts representing short-term

7 capital gains (as defined in section 1222) on as8 sets referred to in subsection (a)(1)(C), reduced

9 by

10 ‘‘(ii) amounts representing short-term cap11 ital losses (as defined in such section) on assets

12 held in the fund, and’’.

13 (3) Subparagraph (B) of section 7518(g)(3) of

14 such Code is amended by striking ‘‘gain’’ and all

15 that follows and inserting ‘‘long-term capital gain

16 (as defined in section 1222), and’’.

17 (4) The last sentence of subparagraph (A) of

18 section 7518(g)(6) of such Code is amended by

19 striking ‘‘28 percent (34 percent in the case of a

20 corporation)’’ and inserting ‘‘the rate applicable to

21 net capital gain under such section 1(h) or 1201(a),

22 as the case may be’’.

23 (e) COMPUTATION OF INTEREST WITH RESPECT TO

24 NONQUALIFIED WITHDRAWALS.—
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1 (1) Subparagraph (C) of section 7518(g)(3) of

2 such Code is amended—

3 (A) by striking clause (i) and inserting the

4 following new clause:

5 ‘‘(i) no addition to the tax shall be

6 payable under section 6651, and’’, and

7 (B) by striking ‘‘paid at the applicable rate

8 (as defined in paragraph (4))’’ in clause (ii) and

9 inserting ‘‘paid in accordance with section

10 6601’’.

11 (2) Subsection (g) of section 7518 of such Code

12 is amended by striking paragraph (4) and by redes13 ignating paragraphs (5) and (6) as paragraphs (4)

14 and (5), respectively.

15 (3) Subparagraph (A) of section 7518(g)(5) of

16 such Code, as redesignated by paragraph (2), is

17 amended by striking ‘‘paragraph (5)’’ and inserting

18 ‘‘paragraph (4)’’.

19 (f) OTHER CHANGES.—

20 (1) Paragraph (2) of section 7518(b) of such

21 Code is amended by striking ‘‘interest-bearing secu22 rities approved by the Secretary’’ and inserting ‘‘in23 terest-bearing securities and other income-producing

24 assets (including accounts receivable) approved by

25 the Secretary’’.
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1 (2) Subsection (j) of section 7518 of such Code

2 is amended by striking ‘‘this section.’’ and inserting

3 ‘‘the Omnibus Budget Reconciliation Act of 1993.’’

4 (3) Section 137 of such Code is amended by

5 striking paragraph (4) and by redesignating para6 graphs (5) and (6) as paragraphs (4) and (5), re7 spectively.

8 (4) Subparagraph (B) of section 543(a)(1) of

9 such Code is amended to read as follows:

10 ‘‘(B) interest on amounts set aside in a capital

11 construction fund under section 607 of the Merchant

12 Marine Act, 1936 (46 App. U.S.C. 1177), or in a

13 construction reserve fund under section 511 of such

14 Act (46 App. U.S.C. 1161),’’.

15 (5) Subsection (c) of section 56 is amended by

16 striking paragraph (2) and by redesignating para17 graph (3) as paragraph (2).

18 SEC. 4. 3-YEAR RECOVERY PERIOD FOR UNITED STATES

19 FLAG VESSELS.

20 (a) IN GENERAL.—Subparagraph (A) of section

21 168(e)(3) of the Internal Revenue Code of 1986 is amend22 ed by striking ‘‘and’’ at the end of clause (i), by striking

23 the period at the end of clause (ii) and inserting ‘‘, and’’,

24 and by adding at the end thereof the following:
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1 ‘‘(iii) any eligible vessel (as defined in

2 section 607(k)(1) of the Merchant Marine

3 Act, 1936, and its complement of contain4 ers, but only if the original use of such

5 vessel and containers commences with the

6 taxpayer.

7 Clause (iii) shall not apply to any vessel docu8 mented under the laws of the United States for

9 operation in the fisheries of the United States.’’

10 (b) MINIMUM TAX TREATMENT.—

11 (1) Subparagraph (B) of section 56(a)(1) of

12 such Code is amended by inserting before the period

13 ‘‘or in paragraph (3)(A)(iii) of section 168(e)’’.

14 (2) Clause (v) of section 56(g)(4)(A) of such

15 Code is amended by inserting ‘‘or in paragraph

16 (3)(A)(iii) of section 168(e)’’ after ‘‘section 168(f)’’.

17 SEC. 5. EFFECTIVE DATE.

18 (a) IN GENERAL.—Except as otherwise provided in

19 this section, the amendments made by this Act shall apply

20 to taxable years beginning after the date of the enactment

21 of this Act.

22 (b) DEFINITION OF QUALIFIED VESSEL.—The

23 amendments made by paragraphs (2) and (3) of section

24 2(a) shall apply for purposes of determining whether any

25 withdrawal made after December 31, 1992, is a qualified
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1 withdrawal (within the meaning of section 607(f) of the

2 Merchant Marine Act, 1936, as in effect after such

3 amendments).

4 (c) TAXATION OF EARNINGS.—The amendments

5 made by sections 2(b) and 3(a) shall apply to earnings

6 after December 31, 1992, in taxable years ending after

7 such date.

8 (d) CHANGES IN COMPUTATION OF INTEREST.—The

9 amendments made by sections 2(f) and 3(e) shall apply

10 to withdrawals made after December 31, 1992, including

11 for purposes of computing interest on such a withdrawal

12 for periods on or before such date.

13 (e) QUALIFIED LEASES.—The amendments made by

14 sections 2(c) and 3(b) shall apply to leases in effect on,

15 or entered into after, December 31, 1992.

16 (f) DEPRECIATION.—The amendments made by sec17 tion 4 shall apply to property placed in service after De18 cember 31, 1992, in taxable years ending after such date.

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