I 
108TH CONGRESS 
1ST SESSION H. R. 2325
To amend the Internal Revenue Code of 1986 to accelerate the increase 
in the refundability of the child tax credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2003
Ms. DELAURO (for herself, Mr. ALEXANDER, Mr. EMANUEL, Mr. RANGEL, 
Mr. HOYER, Mr. DAVIS of Alabama, Ms. SCHAKOWSKY, Mr. LEVIN, Mr. 
STARK, Mr. CARDIN, Mr. STENHOLM, Mr. JEFFERSON, Mr. NEAL of 
Massachusetts, Mr. LEWIS of Georgia, Mr. SPRATT, Mr. MCDERMOTT, 
Mr. BROWN of Ohio, Mr. OBERSTAR, Mr. RODRIGUEZ, Mr. OLVER, Mr. 
MCGOVERN, Mr. GEORGE MILLER of California, Mr. MORAN of Virginia, 
Mr. CAPUANO, Mr. LANGEVIN, Mr. MENENDEZ, Mr. HINCHEY, Mr. 
SERRANO, Mr. GONZALEZ, Mr. BOUCHER, Mr. RYAN of Ohio, Ms. 
SLAUGHTER, Ms. WOOLSEY, Mrs. LOWEY, Mr. EVANS, Ms. ESHOO, Mr. 
FORD, Mr. ENGEL, Mr. TANNER, Ms. LEE, Mrs. DAVIS of California, Mr. 
TIERNEY, Mr. LANTOS, Mr. BAIRD, Ms. ROYBAL-ALLARD, Mr. MCNUL-
TY, Mr. SANDLIN, Mr. MICHAUD, Mr. INSLEE, Mr. MARKEY, Mr. 
GRIJALVA, Mr. DAVIS of Florida, Mr. BLUMENAUER, Mr. ISRAEL, Mr. 
DELAHUNT, Mr. HOEFFEL, Mr. REYES, Mr. CLYBURN, Mr. WYNN, Mr. 
PALLONE, Ms. BORDALLO, Mr. CONYERS, Mr. PASCRELL, Ms. SOLIS, 
Mr. COOPER, Mrs. MALONEY, Mr. TOWNS, Ms. CORRINE BROWN of Flor-
ida, Mr. POMEROY, Mr. DOGGETT, Mr. BERRY, Mr. DAVIS of Tennessee, 
Mr. TAYLOR of Mississippi, Mr. SKELTON, Mr. STRICKLAND, Mr. UDALL 
of New Mexico, Mr. DEFAZIO, Mr. SANDERS, Ms. KAPTUR, Mr. DOYLE, 
Mr. SCOTT of Virginia, Mr. ABERCROMBIE, Mrs. MCCARTHY of New 
York, Ms. DEGETTE, Mr. ACEVEDO-VILA´, Mr. JOHN, Mrs. CAPPS, Mr. 
CROWLEY, Mr. EDWARDS, Mr. CUMMINGS, Mr. SCOTT of Georgia, Mr. 
FROST, Mr. KUCINICH, Mr. MATSUI, Mr. HASTINGS of Florida, Mr. 
THOMPSON of Mississippi, Mr. MEEHAN, Ms. MCCOLLUM, Mr. CASE, Mr. 
HINOJOSA, Mr. HOLT, Mr. OWENS, Mr. CARDOZA, Mr. RUPPERSBERGER, 
Mr. PRICE of North Carolina, Mr. OBEY, Mr. BOSWELL, Mr. JACKSON 
of Illinois, Mr. LAMPSON, Mr. PASTOR, Mr. ORTIZ, Mr. BECERRA, and 
Mr. FILNER) 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 accelerate 
the increase in the refundability of the child tax credit, 
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Working Taxpayer 
Fairness Restoration Act of 2003’’. 
TITLE I—ACCELERATION OF IN-
CREASE IN REFUNDABILITY 
OF THE CHILD TAX CREDIT 
SEC. 101. ACCELERATION OF INCREASE IN REFUNDABILITY 
OF THE CHILD TAX CREDIT. 
(a) IN GENERAL.—Section 24(d)(1)(B)(i) of the In-
ternal Revenue Code of 1986 (relating to portion of credit 
refundable) is amended by striking ‘‘(10 percent in the 
case of taxable years beginning before January 1, 2005)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2002.
TITLE II—REVENUE PROVISIONS 
Subtitle A—Enron-Related Tax 
Shelter Provisions 
SEC. 201. LIMITATION ON TRANSFER OR IMPORTATION OF 
BUILT-IN LOSSES. 
(a) IN GENERAL.—Section 362 of the Internal Rev-
enue Code of 1986 (relating to basis to corporations) is 
amended by adding at the end the following new sub-
section: 
‘‘(e) LIMITATIONS ON BUILT-IN LOSSES.—
‘‘(1) LIMITATION ON IMPORTATION OF BUILT-
IN LOSSES.—
‘‘(A) IN GENERAL.—If in any transaction 
described in subsection (a) or (b) there would 
(but for this subsection) be an importation of a 
net built-in loss, the basis of each property de-
scribed in subparagraph (B) which is acquired 
in such transaction shall (notwithstanding sub-
sections (a) and (b)) be its fair market value 
immediately after such transaction. 
‘‘(B) PROPERTY
DESCRIBED.—For pur-
poses of subparagraph (A), property is de-
scribed in this subparagraph if—
‘‘(i) gain or loss with respect to such 
property is not subject to tax under this
subtitle in the hands of the transferor im-
mediately before the transfer, and 
‘‘(ii) gain or loss with respect to such 
property is subject to such tax in the 
hands of the transferee immediately after 
such transfer. 
In any case in which the transferor is a part-
nership, the preceding sentence shall be applied 
by treating each partner in such partnership as 
holding such partner’s proportionate share of 
the property of such partnership.
‘‘(C) IMPORTATION
OF
NET
BUILT-IN 
LOSS.—For purposes of subparagraph (A), 
there is an importation of a net built-in loss in 
a transaction if the transferee’s aggregate ad-
justed bases of property described in subpara-
graph (B) which is transferred in such trans-
action would (but for this paragraph) exceed 
the fair market value of such property imme-
diately after such transaction.’’. 
‘‘(2) LIMITATION ON TRANSFER OF BUILT-IN 
LOSSES IN SECTION 351 TRANSACTIONS.—
‘‘(A) IN GENERAL.—If—
‘‘(i) property is transferred by a 
transferor in any transaction which is de-
scribed in subsection (a) and which is not 
described in paragraph (1) of this sub-
section, and 
‘‘(ii) the transferee’s aggregate ad-
justed bases of such property so trans-
ferred would (but for this paragraph) ex-
ceed the fair market value of such property 
immediately after such transaction, 
then, notwithstanding subsection (a), the trans-
feree’s aggregate adjusted bases of the property 
so transferred shall not exceed the fair market 
value of such property immediately after such 
transaction. 
‘‘(B) ALLOCATION
OF
BASIS
REDUC-
TION.—The aggregate reduction in basis by 
reason of subparagraph (A) shall be allocated 
among the property so transferred in proportion 
to their respective built-in losses immediately 
before the transaction. 
‘‘(C) EXCEPTION FOR TRANSFERS WITHIN 
AFFILIATED
GROUP.—Subparagraph (A) shall 
not apply to any transaction if the transferor 
owns stock in the transferee meeting the re-
quirements of section 1504(a)(2). In the case of 
property to which subparagraph (A) does not
apply by reason of the preceding sentence, the 
transferor’s basis in the stock received for such 
property shall not exceed its fair market value 
immediately after the transfer.’’. 
(b) COMPARABLE TREATMENT WHERE LIQUIDA-
TION.—Paragraph (1) of section 334(b) of the Internal 
Revenue Code of 1986 (relating to liquidation of sub-
sidiary) is amended to read as follows: 
‘‘(1) IN GENERAL.—If property is received by a 
corporate distributee in a distribution in a complete 
liquidation to which section 332 applies (or in a 
transfer described in section 337(b)(1)), the basis of 
such property in the hands of such distributee shall 
be the same as it would be in the hands of the trans-
feror; except that the basis of such property in the 
hands of such distributee shall be the fair market 
value of the property at the time of the distribu-
tion—
‘‘(A) in any case in which gain or loss is 
recognized by the liquidating corporation with 
respect to such property, or 
‘‘(B) in any case in which the liquidating 
corporation is a foreign corporation, the cor-
porate distributee is a domestic corporation, 
and the corporate distributee’s aggregate ad-
justed bases of property described in section 
362(e)(1)(B) which is distributed in such liq-
uidation would (but for this subparagraph) ex-
ceed the fair market value of such property im-
mediately after such liquidation.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transactions after February 13, 
2003. 
SEC. 202. NO REDUCTION OF BASIS UNDER SECTION 734 IN 
STOCK HELD BY PARTNERSHIP IN COR-
PORATE PARTNER. 
(a) IN GENERAL.—Section 755 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(c) NO ALLOCATION
OF BASIS DECREASE
TO 
STOCK OF CORPORATE PARTNER.—In making an alloca-
tion under subsection (a) of any decrease in the adjusted 
basis of partnership property under section 734(b)—
‘‘(1) no allocation may be made to stock in a 
corporation (or any person which is related (within 
the meaning of section 267(b) or 707(b)(1)) to such 
corporation) which is a partner in the partnership, 
and
‘‘(2) any amount not allocable to stock by rea-
son of paragraph (1) shall be allocated under sub-
section (a) to other partnership property. 
Gain shall be recognized to the partnership to the extent 
that the amount required to be allocated under paragraph 
(2) to other partnership property exceeds the aggregate 
adjusted basis of such other property immediately before 
the allocation required by paragraph (2).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions after February 13, 
2003. 
SEC. 203. REPEAL OF SPECIAL RULES FOR FASITS. 
(a) IN GENERAL.—Part V of subchapter M of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
financial asset securitization investment trusts) is hereby 
repealed. 
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (6) of section 56(g) of the Inter-
nal Revenue Code of 1986 is amended by striking 
‘‘REMIC, or FASIT’’ and inserting ‘‘or REMIC’’. 
(2) Clause (ii) of section 382(l)(4)(B) of such 
Code is amended by striking ‘‘a REMIC to which 
part IV of subchapter M applies, or a FASIT to 
which part V of subchapter M applies,’’ and insert-
ing ‘‘or a REMIC to which part IV of subchapter M 
applies,’’. 
(3) Paragraph (1) of section 582(c) of such 
Code is amended by striking ‘‘, and any regular in-
terest in a FASIT,’’. 
(4) Subparagraph (E) of section 856(c)(5) of 
such Code is amended by striking the last sentence. 
(5) Paragraph (5) of section 860G(a) of such 
Code is amended by adding ‘‘and’’ at the end of sub-
paragraph (B), by striking ‘‘, and’’ at the end of 
subparagraph (C) and inserting a period, and by 
striking subparagraph (D).
(6) Subparagraph (C) of section 1202(e)(4) of 
such Code is amended by striking ‘‘REMIC, or 
FASIT’’ and inserting ‘‘or REMIC’’. 
(7) Subparagraph (C) of section 7701(a)(19) of 
such Code is amended by adding ‘‘and’’ at the end 
of clause (ix), by striking ‘‘, and’’ at the end of 
clause (x) and inserting a period, and by striking 
clause (xi). 
(8) The table of parts for subchapter M of 
chapter 1 of such Code is amended by striking the 
item relating to part V. 
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall take effect on February 14, 2003. 
(2) EXCEPTION
FOR
EXISTING
FASITS.—The 
amendments made by this section shall not apply to 
any FASIT in existence on the date of the enact-
ment of this Act to the extent that regular interests 
issued by the FASIT before such date continue to 
remain outstanding in accordance with the original 
terms of issuance of such interests. 
SEC. 204. EXPANDED DISALLOWANCE OF DEDUCTION FOR 
INTEREST ON CONVERTIBLE DEBT. 
(a) IN GENERAL.—Paragraph (2) of section 163(l) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘or a related party’’ and inserting ‘‘or equity held by 
the issuer (or any related party) in any other person’’. 
(b) EXCEPTION FOR CERTAIN INSTRUMENTS ISSUED 
BY DEALERS IN SECURITIES.—Section 163(l) of the In-
ternal Revenue Code of 1986 is amended by redesignating 
paragraphs (4) and (5) as paragraphs (5) and (6) and 
by inserting after paragraph (3) the following new para-
graph: 
‘‘(4) EXCEPTION FOR CERTAIN INSTRUMENTS 
ISSUED BY DEALERS IN SECURITIES.—For purposes 
of this subsection, the term ‘disqualified debt instru-
ment’ does not include indebtedness issued by a 
dealer in securities (or a related party) which is pay-
able in, or by reference to, equity (other than equity 
of the issuer or a related party) held by such dealer 
in its capacity as a dealer in securities. For purposes 
of this paragraph, the term ‘dealer in securities’ has 
the meaning given such term by section 475.’’. 
(c) CONFORMING AMENDMENT.—Paragraph (3) of 
section 163(l) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or a related party’’ in the material 
preceding subparagraph (A) and inserting ‘‘or any other 
person’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to debt instruments issued after 
February 13, 2003. 
SEC. 205. EXPANDED AUTHORITY TO DISALLOW TAX BENE-
FITS UNDER SECTION 269. 
(a) IN GENERAL.—Subsection (a) of section 269 of 
the Internal Revenue Code of 1986 (relating to acquisi-
tions made to evade or avoid income tax) is amended to 
read as follows: 
‘‘(a) IN GENERAL.—If—
‘‘(1)(A) any person acquires stock in a corpora-
tion, or
‘‘(B) any corporation acquires, directly or indi-
rectly, property of another corporation and the basis 
of such property, in the hands of the acquiring cor-
poration, is determined by reference to the basis in 
the hands of the transferor corporation, and 
‘‘(2) the principal purpose for which such acqui-
sition was made is evasion or avoidance of Federal 
income tax by securing the benefit of a deduction, 
credit, or other allowance, 
then the Secretary may disallow such deduction, credit, 
or other allowance.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to stock and property acquired 
after February 13, 2003. 
SEC. 206. MODIFICATIONS OF CERTAIN RULES RELATING 
TO CONTROLLED FOREIGN CORPORATIONS. 
(a) LIMITATION ON EXCEPTION FROM PFIC RULES 
FOR UNITED STATES SHAREHOLDERS OF CONTROLLED 
FOREIGN
CORPORATIONS.—Paragraph (2) of section 
1297(e) of the Internal Revenue Code of 1986 (relating 
to passive investment company) is amended by adding at 
the end the following flush sentence: 
‘‘Such term shall not include any period if there is 
only a remote likelihood of an inclusion in gross in-
during the taxable year, one person (other than a 
qualified entity)—
‘‘(A) in the case of a corporation, owns 
stock—
‘‘(i) possessing at least 50 percent of 
the total voting power of the stock of such 
corporation, or 
‘‘(ii) having a value equal to at least 
50 percent of the total value of the stock 
of such corporation, or 
‘‘(B) in the case of a trust, owns beneficial 
interests in the trust which would meet the re-
quirements of subparagraph (A) if such inter-
ests were stock. 
‘‘(2) QUALIFIED
ENTITY.—For purposes of 
paragraph (1), the term ‘qualified entity’ means—
‘‘(A) any real estate investment trust, and 
‘‘(B) any partnership in which one real es-
tate investment trust owns at least 50 percent 
of the capital and profits interests in the part-
nership. 
‘‘(3) ATTRIBUTION
RULES.—For purposes of 
this paragraphs (1) and (2)—
‘‘(A) IN GENERAL.—Rules similar to the 
rules of subsections (d)(5) and (h)(3) shall
apply; except that section 318(a)(3)(C) shall 
not be applied under such rules to treat stock 
owned by a qualified entity as being owned by 
a person which is not a qualified entity. 
‘‘(B) STAPLED ENTITIES.—A group of en-
tities which are stapled entities (as defined in 
section 269B(c)(2)) shall be treated as one per-
son. 
‘‘(4) EXCEPTION FOR CERTAIN NEW REITS.—
‘‘(A) IN GENERAL.—The term ‘controlled 
entity’ shall not include an incubator REIT. 
‘‘(B) INCUBATOR
REIT.—A corporation 
shall be treated as an incubator REIT for any 
taxable year during the eligibility period if it 
meets all the following requirements for such 
year: 
‘‘(i) The corporation elects to be treat-
ed as an incubator REIT. 
‘‘(ii) The corporation has only voting 
common stock outstanding. 
‘‘(iii) Not more than 50 percent of the 
corporation’s real estate assets consist of 
mortgages. 
‘‘(iv) From not later than the begin-
ning of the last half of the second taxable
year, at least 10 percent of the corpora-
tion’s capital is provided by lenders or eq-
uity investors who are unrelated to the cor-
poration’s largest shareholder. 
‘‘(v) The corporation annually in-
creases the value of its real estate assets 
by at least 10 percent. 
‘‘(vi) The directors of the corporation 
adopt a resolution setting forth an intent 
to engage in a going public transaction. 
No election may be made with respect to any 
REIT if an election under this subsection was 
in effect for any predecessor of such REIT. 
‘‘(C) ELIGIBILITY PERIOD.—
‘‘(i) IN GENERAL.—The eligibility pe-
riod (for which an incubator REIT election 
can be made) begins with the REIT’s sec-
ond taxable year and ends at the close of 
the REIT’s third taxable year, except that 
the REIT may, subject to clauses (ii), (iii), 
and (iv), elect to extend such period for an 
additional 2 taxable years. 
‘‘(ii) GOING PUBLIC TRANSACTION.—
A REIT may not elect to extend the eligi-
bility period under clause (i) unless it en-
ters into an agreement with the Secretary 
that if it does not engage in a going public 
transaction by the end of the extended eli-
gibility period, it shall pay Federal income 
taxes for the 2 years of the extended eligi-
bility period as if it had not made an incu-
bator REIT election and had ceased to 
qualify as a REIT for those 2 taxable 
years. 
‘‘(iii) RETURNS, INTEREST, AND NO-
TICE.— 
‘‘(I) RETURNS.—In the event the 
corporation ceases to be treated as a 
REIT by operation of clause (ii), the 
corporation shall file any appropriate 
amended returns reflecting the change 
in status within 3 months of the close 
of the extended eligibility period. 
‘‘(II) INTEREST.—Interest shall 
be payable on any tax imposed by rea-
son of clause (ii) for any taxable year 
but, unless there was a finding under 
subparagraph (D), no substantial un-
derpayment penalties shall be im-
posed.
‘‘(III) NOTICE.—The corporation 
shall, at the same time it files its re-
turns under subclause (I), notify its 
shareholders and any other persons 
whose tax position is, or may reason-
ably be expected to be, affected by the 
change in status so they also may file 
any appropriate amended returns to 
conform their tax treatment consistent
with the corporation’s loss of REIT 
status. 
‘‘(IV) REGULATIONS.—The Sec-
retary shall provide appropriate regu-
lations setting forth transferee liabil-
ity and other provisions to ensure col-
lection of tax and the proper adminis-
tration of this provision. 
‘‘(iv) Clauses (ii) and (iii) shall not 
apply if the corporation allows its incu-
bator REIT status to lapse at the end of 
the initial 2-year eligibility period without 
engaging in a going public transaction if 
the corporation is not a controlled entity as 
of the beginning of its fourth taxable year. 
In such a case, the corporation’s directors
may still be liable for the penalties de-
scribed in subparagraph (D) during the eli-
gibility period. 
‘‘(D) SPECIAL
PENALTIES.—If the Sec-
retary determines that an incubator REIT elec-
tion was filed for a principal purpose other than 
as part of a reasonable plan to undertake a 
going public transaction, an excise tax of 
$20,000 shall be imposed on each of the cor-
poration’s directors for each taxable year for 
which an election was in effect. 
‘‘(E) GOING PUBLIC TRANSACTION.—For 
purposes of this paragraph, a going public 
transaction means—
‘‘(i) a public offering of shares of the 
stock of the incubator REIT; 
‘‘(ii) a transaction, or series of trans-
actions, that results in the stock of the in-
cubator REIT being regularly traded on an 
established securities market and that re-
sults in at least 50 percent of such stock 
being held by shareholders who are unre-
lated to persons who held such stock before 
it began to be so regularly traded; or
‘‘(iii) any transaction resulting in 
ownership of the REIT by 200 or more 
persons (excluding the largest single share-
holder) who in the aggregate own at least 
50 percent of the stock of the REIT. 
For the purposes of this subparagraph, the 
rules of paragraph (3) shall apply in deter-
mining the ownership of stock. 
‘‘(F) DEFINITIONS.—The term ‘established 
securities market’ shall have the meaning set 
forth in the regulations under section 897.’’. 
(c) CONFORMING AMENDMENT.—Paragraph (2) of 
section 856(h) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and (6)’’ each place it appears and 
inserting ‘‘, (6), and (7)’’. 
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by 
this section shall apply to taxable years ending after 
May 8, 2003. 
(2) EXCEPTION
FOR
EXISTING
CONTROLLED 
ENTITIES.—The amendments made by this section 
shall not apply to any entity which is a controlled 
entity (as defined in section 856(l) of the Internal 
Revenue Code of 1986, as added by this section) as 
of May 8, 2003, which is a real estate investment
trust for the taxable year which includes such date, 
and which has significant business assets or activi-
ties as of such date. For purposes of the preceding 
sentence, an entity shall be treated as such a con-
trolled entity on May 8, 2003, if it becomes such an 
entity after such date in a transaction—
(A) made pursuant to a written agreement 
which was binding on such date and at all times 
thereafter, or 
(B) described on or before such date in a 
filing with the Securities and Exchange Com-
mission required solely by reason of the trans-
action. 
Subtitle B—Extension of Internal 
Revenue Service User Fees 
SEC. 211. EXTENSION OF INTERNAL REVENUE SERVICE 
USER FEES. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 (relating to miscellaneous provisions) 
is amended by adding at the end the following new section: 
‘‘SEC. 7528. INTERNAL REVENUE SERVICE USER FEES. 
‘‘(a) GENERAL RULE.—The Secretary shall establish 
a program requiring the payment of user fees for—
‘‘(1) requests to the Internal Revenue Service 
for ruling letters, opinion letters, and determination 
letters, and 
‘‘(2) other similar requests. 
‘‘(b) PROGRAM CRITERIA.—
‘‘(1) IN GENERAL.—The fees charged under the 
program required by subsection (a)—
‘‘(A) shall vary according to categories (or 
subcategories) established by the Secretary, 
‘‘(B) shall be determined after taking into 
account the average time for (and difficulty of) 
complying with requests in each category (and 
subcategory), and 
‘‘(C) shall be payable in advance. 
‘‘(2) EXEMPTIONS, ETC.—
‘‘(A) IN
GENERAL.—The Secretary shall 
provide for such exemptions (and reduced fees) 
under such program as the Secretary deter-
mines to be appropriate. 
‘‘(B) EXEMPTION FOR CERTAIN REQUESTS 
REGARDING
PENSION
PLANS.—The Secretary 
shall not require payment of user fees under 
such program for requests for determination 
letters with respect to the qualified status of a 
pension benefit plan maintained solely by 1 or
more eligible employers or any trust which is 
part of the plan. The preceding sentence shall 
not apply to any request—
‘‘(i) made after the later of—
‘‘(I) the fifth plan year the pen-
sion benefit plan is in existence, or 
‘‘(II) the end of any remedial 
amendment period with respect to the 
plan beginning within the first 5 plan 
years, or 
‘‘(ii) made by the sponsor of any pro-
totype or similar plan which the sponsor 
intends to market to participating employ-
ers. 
‘‘(C) DEFINITIONS AND SPECIAL RULES.—
For purposes of subparagraph (B)—
‘‘(i) PENSION
BENEFIT
PLAN.—The 
term ‘pension benefit plan’ means a pen-
sion, profit-sharing, stock bonus, annuity, 
or employee stock ownership plan. 
‘‘(ii) 
ELIGIBLE
EMPLOYER.—The 
term ‘eligible employer’ means an eligible 
employer 
(as 
defined 
in 
section 
408(p)(2)(C)(i)(I)) which has at least 1 
employee who is not a highly compensated
employee (as defined in section 414(q)) 
and is participating in the plan. The deter-
mination of whether an employer is an eli-
gible employer under subparagraph (B) 
shall be made as of the date of the request 
described in such subparagraph. 
‘‘(iii) DETERMINATION
OF
AVERAGE 
FEES CHARGED.—For purposes of any de-
termination of average fees charged, any 
request to which subparagraph (B) applies 
shall not be taken into account. 
‘‘(3) AVERAGE FEE REQUIREMENT.—The aver-
age fee charged under the program required by sub-
section (a) shall not be less than the amount deter-
mined under the following table:
‘‘Category 
Average Fee
Employee plan ruling and opinion ...........................................
$250
Exempt organization ruling .....................................................
$350
Employee plan determination ..................................................
$300
Exempt organization determination ........................................
$275
Chief counsel ruling .................................................................
$200.
‘‘(c) TERMINATION.—No fee shall be imposed under 
this section with respect to requests made after September 
30, 2013.’’. 
(b) CONFORMING AMENDMENTS.—