H. R. 1625—817 
‘‘(i) the taxpayer’s modified adjusted gross income 
for such taxable year, over 
‘‘(ii) $40,000 ($80,000 in the case of a joint return), 
bears to 
‘‘(B) $10,000 ($20,000 in the case of a joint return). 
‘‘(3) MODIFIED ADJUSTED GROSS INCOME.—For purposes of 
this subsection, the term ‘modified adjusted gross income’ 
means the adjusted gross income of the taxpayer for the taxable 
year increased by any amount excluded from gross income 
under section 911, 931, or 933.’’. 
(5) Section 25A(f)(1) is amended by adding at the end 
the following new subparagraph: 
‘‘(D) 
REQUIRED
COURSE
MATERIALS
TAKEN
INTO 
ACCOUNT
FOR
AMERICAN
OPPORTUNITY
TAX
CREDIT.—For 
purposes of determining the American Opportunity Tax 
Credit, subparagraph (A) shall be applied by substituting 
‘tuition, fees, and course materials’ for ‘tuition and fees’.’’. 
(6) Section 25A(g)(1) is amended— 
(A) by striking ‘‘No credit’’ and inserting the following: 
‘‘(A) IN GENERAL.—No credit’’, and 
(B) by adding at the end the following new subpara-
graph: 
‘‘(B) ADDITIONAL IDENTIFICATION REQUIREMENTS WITH 
RESPECT TO AMERICAN OPPORTUNITY TAX CREDIT.— 
‘‘(i) STUDENT.—The requirements of subparagraph 
(A) shall not be treated as met with respect to the 
American Opportunity Tax Credit unless the individ-
ual’s taxpayer identification number was issued on 
or before the due date for filing the return of tax 
for the taxable year. 
‘‘(ii) TAXPAYER.—No American Opportunity Tax 
Credit shall be allowed under this section if the tax-
payer identification number of the taxpayer was issued 
after the due date for filing the return for the taxable 
year. 
‘‘(iii) INSTITUTION.—No American Opportunity Tax 
Credit shall be allowed under this section unless the 
taxpayer includes the employer identification number 
of any institution to which qualified tuition and related 
expenses were paid with respect to the individual.’’. 
(7) Section 25A(h) is amended to read as follows: 
‘‘(h) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a taxable year beginning 
after 2001, the $40,000 and $80,000 amounts in subsection 
(d)(2) shall each be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year in which the taxable 
year begins, determined by substituting ‘calendar year 
2000’ for ‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted under para-
graph (1) is not a multiple of $1,000, such amount shall be 
rounded to the next lowest multiple of $1,000.’’. 
(8) Section 25A(i) is amended to read as follows: 
‘‘(i) PORTION OF AMERICAN OPPORTUNITY TAX CREDIT MADE 
REFUNDABLE.—Forty percent of so much of the credit allowed under
H. R. 1625—818 
subsection (a) as is attributable to the American Opportunity Tax 
Credit (determined after application of subsection (d) and without 
regard to this paragraph and section 26(a)) shall be treated as 
a credit allowable under subpart C (and not allowed under sub-
section (a)). The preceding sentence shall not apply to any taxpayer 
for any taxable year if such taxpayer is a child to whom subsection 
(g) of section 1 applies for such taxable year.’’. 
(9) The heading of section 25A is amended by striking 
‘‘hope’’ and inserting ‘‘american opportunity’’. 
(10) The item relating to section 25A in the table of contents 
for subpart A of part IV of subchapter A of chapter 1 is 
amended to read as follows: 
‘‘Sec. 25A. American Opportunity and Lifetime Learning credits.’’. 
(11) The heading of section 25A(b) is amended by striking 
‘‘HOPE SCHOLARSHIP CREDIT’’ and inserting ‘‘AMERICAN OPPOR-
TUNITY TAX CREDIT’’. 
(12) The heading of section 25A(b)(2) is amended by striking 
‘‘HOPE SCHOLARSHIP CREDIT’’ and inserting ‘‘AMERICAN OPPOR-
TUNITY TAX CREDIT’’. 
(13) The heading of section 25A(c)(2)(A) is amended by 
striking ‘‘HOPE SCHOLARSHIP’’ and inserting ‘‘AMERICAN OPPOR-
TUNITY TAX CREDIT’’. 
(14) Section 25A, as amended by the preceding provisions 
of this Act, is amended by striking ‘‘Hope Scholarship Credit’’ 
each place it appears in the text and inserting ‘‘American 
Opportunity Tax Credit’’. 
(15) The heading of section 529(c)(3)(B)(v) is amended by 
striking ‘‘HOPE’’ and inserting ‘‘AMERICAN OPPORTUNITY’’. 
(16) The heading of section 530(d)(2)(C) is amended by 
striking ‘‘HOPE’’ and inserting ‘‘AMERICAN OPPORTUNITY’’. 
(17) Section 6211(b)(4)(A), as amended by this Act, is 
amended by striking ‘‘subsection (i)(5)’’ and inserting ‘‘sub-
section (i)’’. 
(18) Section 6213(g)(2)(Q) is amended to read as follows: 
‘‘(Q) an omission of information required by section 
25A(b)(4)(B) or an entry on the return claiming the Amer-
ican Opportunity Tax Credit for a taxable year for which 
such credit is disallowed under section 25A(b)(4)(A).’’. 
(19) Section 207(b)(1) of the Protecting Americans from 
Tax Hikes Act of 2015 is amended by striking ‘‘the American 
opportunity tax credit under section 25A(i) of such Code’’ and 
inserting ‘‘the American Opportunity Tax Credit under section 
25A of such Code’’. 
(m) AMENDMENT RELATING TO SECTION 311.— 
(1) The last sentence of section 355(h)(2)(B) is amended 
by striking ‘‘80 percent’’ both places it appears and inserting 
‘‘at least 80 percent’’. 
(2) Section 355(h)(2) is amended— 
(A) by striking ‘‘SPINOFFS’’ in the heading of such para-
graph and inserting ‘‘DISTRIBUTIONS’’, and 
(B) by striking ‘‘SPINOFFS’’ in the headings of subpara-
graphs (A) and (B) and inserting ‘‘DISTRIBUTIONS’’. 
(n) AMENDMENT RELATING TO SECTION 318.— 
(1) Section 856(c)(9)(A) is amended— 
(A) by striking ‘‘Personal property’’ and inserting the 
following:
H. R. 1625—819 
‘‘(i) IN GENERAL.—Personal property’’, and 
(B) by adding at the end the following new clause: 
‘‘(ii) TREATMENT OF GAIN ON DISPOSITION.—If— 
‘‘(I) personal property is leased under, or in 
connection with, a lease of real property, for a 
period of not less than 1 year, and rents attrib-
utable to such personal property are treated as 
rents from real property under subsection (d)(1)(C), 
‘‘(II) any portion of such personal property and 
any portion of such real property are sold, or other-
wise disposed of, in a single disposition (or contem-
poraneously in separate dispositions), and 
‘‘(III) the fair market value of the personal 
property so sold or contemporaneously disposed 
of (determined at the time of disposition) does 
not exceed 15 percent of the total fair market 
value of all of the personal and real property so 
sold or contemporaneously disposed of (determined 
at the time of disposition), 
any gain from such dispositions shall be treated for 
purposes of paragraphs (2)(H) and (3)(H) as gain from 
the disposition of a real estate asset.’’. 
(2) Section 856(c)(9)(B) is amended to read as follows: 
‘‘(B) CERTAIN
PERSONAL
PROPERTY
MORTGAGED
IN 
CONNECTION WITH REAL PROPERTY.— 
‘‘(i) IN
GENERAL.—In the case of an obligation 
secured by a mortgage on both real property and per-
sonal property, if the fair market value of such personal 
property does not exceed 15 percent of the total fair 
market value of all such property, such obligation shall 
be treated— 
‘‘(I) for purposes of paragraph (3)(B), as an 
obligation described therein, 
‘‘(II) for purposes of paragraph (4)(A), as a 
real estate asset, and 
‘‘(III) for purposes of paragraphs (2)(D) and 
(3)(C), as a mortgage on real property. 
‘‘(ii) DETERMINATION OF FAIR MARKET VALUE.— 
‘‘(I) IN GENERAL.—Except as provided in sub-
clause (II), the fair market value of all such prop-
erty shall be determined for purposes of clause 
(i) in the same manner as the fair market value 
of real property is determined for purposes of 
apportioning interest income between real property 
and personal property under paragraph (3)(B). 
‘‘(II) GAIN ON DISPOSITION.—For purposes of 
applying clause (i)(III), fair market value shall 
be determined at the time of sale or other disposi-
tion.’’. 
(o) 
AMENDMENT
RELATED
TO
SECTION
302(b).—Section 
529A(c)(1) is amended by striking subparagraph (D). 
(p) AMENDMENTS RELATING TO SECTION 322.— 
(1) Section 897(k)(2) is amended— 
(A) by striking so much of subparagraph (B) as pre-
cedes ‘‘amounts realized by the qualified shareholder’’ and 
inserting the following:
H. R. 1625—820 
‘‘(B) EXCEPTION.—In the case of a qualified shareholder 
with one or more applicable investors— 
‘‘(i) subparagraph (A)(i) shall not apply to the 
applicable percentage of the stock of the real estate 
investment trust held by the qualified shareholder, 
and 
‘‘(ii) the applicable percentage of the’’, and 
(B) by adding at the end the following new subpara-
graph: 
‘‘(F) 
APPLICABLE
PERCENTAGE.—For 
purposes 
of 
subparagraph (B), the term ‘applicable percentage’ means 
the percentage of the value of the interests (other than 
interests held solely as a creditor) in the qualified share-
holder held by applicable investors.’’. 
(2) Section 897(k)(2)(D) is amended by striking ‘‘paragraph’’ 
and inserting ‘‘subsection’’. 
(3) Section 897(k)(2)(E) is amended by striking ‘‘and (C) 
and paragraph (4)’’ and inserting ‘‘and (D)’’. 
(4) Section 897(k)(3)(B)(i) is amended by striking so much 
as precedes ‘‘for a reduced rate of withholding’’ and inserting 
the following: 
‘‘(i) which— 
‘‘(I) is eligible for benefits under the com-
prehensive income tax treaty described in subpara-
graph (A)(i)(I), but only if the dividends article 
of such treaty imposes conditions on the benefits 
allowable in the case of dividends paid by a real 
estate investment trust, and 
‘‘(II) is eligible under such treaty’’. 
(5) Section 897(k)(3)(B)(ii) is amended— 
(A) by adding ‘‘and’’ at the end of subclause (II), and 
(B) by striking ‘‘United States corporation’’ in subclause 
(III) and inserting ‘‘domestic corporation’’. 
(6) Section 322 of the Protecting Americans from Tax Hikes 
Act of 2015 is amended by striking subsections (b)(2) and (c)(3), 
and the Internal Revenue Code of 1986 shall be applied as 
if such subsections, and amendments made thereby, had never 
been enacted. 
(7) Section 322(c)(2) of such Act is amended by striking 
‘‘take effect on’’ and inserting the following: ‘‘apply with respect 
to testing periods (as defined in section 897(h)(4)(D) of the 
Internal Revenue Code of 1986) ending on or after’’. 
(q) AMENDMENTS RELATED TO SECTION 323.— 
(1) So much of subsection (l) of section 897 as precedes 
paragraph (2) thereof is amended to read as follows: 
‘‘(l) EXCEPTION FOR QUALIFIED FOREIGN PENSION FUNDS.— 
‘‘(1) IN GENERAL.—For purposes of this section, a qualified 
foreign pension fund shall not be treated as a nonresident 
alien individual or a foreign corporation. For purposes of the 
preceding sentence, an entity all the interests of which are 
held by a qualified foreign pension fund shall be treated as 
such a fund.’’. 
(2) Subparagraph (B) of section 897(l)(2) is amended to 
read as follows: 
‘‘(B) which is established— 
‘‘(i) by such country (or one or more political sub-
divisions thereof) to provide retirement or pension
H. R. 1625—821 
benefits to participants or beneficiaries that are current 
or former employees (including self-employed individ-
uals) or persons designated by such employees, as a 
result of services rendered by such employees to their 
employers, or 
‘‘(ii) by one or more employers to provide retire-
ment or pension benefits to participants or bene-
ficiaries that are current or former employees 
(including self-employed individuals) or persons des-
ignated by such employees in consideration for services 
rendered by such employees to such employers,’’. 
(3) Section 897(l)(2)(D) is amended by striking ‘‘provides 
annual information reporting about its beneficiaries to the rel-
evant tax authorities’’ and inserting ‘‘with respect to which 
annual information about its beneficiaries is provided, or is 
otherwise available, to the relevant tax authorities’’. 
(4) Section 897(l)(2)(E) is amended— 
(A) by striking ‘‘such entity’’ in clause (i) and inserting 
‘‘such entity or arrangement’’, and 
(B) by striking ‘‘or such income is taxed at a reduced 
rate’’ in clause (ii) and inserting ‘‘, or such income is 
excluded from the gross income of such entity or arrange-
ment or is taxed at a reduced rate’’. 
(r) AMENDMENTS RELATING TO SECTION 333.— 
(1) Section 831(b)(2)(B)(i)(II) is amended by striking ‘‘speci-
fied assets’’ and inserting ‘‘relevant specified assets’’ 
(2) Section 831(b)(2)(B) is amended by redesignating clause 
(ii) as clause (iv) and by inserting after clause (i) the following 
new clauses: 
‘‘(ii) 
AGGREGATION
OF
CERTAIN
SPOUSAL 
INTERESTS.—For purposes of clause (i)(II), any interest 
in the insurance company referred to in such clause 
which is held (directly or indirectly) by an individual 
who is a spouse of the specified holder, and who is 
a citizen of the United States, shall be treated as 
held by the specified holder. 
‘‘(iii) SPECIFIED
HOLDER.—For purposes of this 
subparagraph, the term ‘specified holder’ means, with 
respect to any insurance company, any individual who 
holds (directly or indirectly) an interest in such insur-
ance company and who— 
‘‘(I) is a lineal descendent (including by adop-
tion) of an individual who holds an interest 
(directly or indirectly) in the specified assets with 
respect to such insurance company or of such 
individual’s spouse, 
‘‘(II) is a spouse of any lineal descendent 
described in subclause (I), or 
‘‘(III) is not a citizen of the United States 
and is a spouse of an individual who holds an 
interest (directly or indirectly) in the specified 
assets with respect to such insurance company.’’. 
(3) Section 831(b)(2)(B)(iv), as redesignated by paragraph 
(2), is amended— 
(A) by striking ‘‘clause (i)(II)’’ in the matter preceding 
subclause (I) and inserting ‘‘this subparagraph’’, and 
(B) by amending subclause (I) to read as follows:
H. R. 1625—822 
‘‘(I) RELEVANT
SPECIFIED
ASSETS.—The term 
‘relevant specified assets’ means, with respect to 
any specified holder with respect to any insurance 
company, the aggregate amount of the specified 
assets, with respect to such insurance company, 
any interest in which is held (directly or indirectly) 
by any spouse or specified relation of such specified 
holder. Such term shall not include any specified 
asset solely by reason of an interest in such asset 
which was acquired by such spouse or specified 
relation by bequest, devise, or inheritance from 
a decedent during the taxable year of the insurance 
company or the preceding taxable year. For pur-
poses of this subclause, the term ‘specified relation’ 
means any individual with respect to whom the 
specified holder bears a relationship described in 
subclause (I) or (II) of clause (iii).’’. 
(4) Section 831(b)(2) is amended by redesignating subpara-
graph (D) as subparagraph (E) and by inserting after subpara-
graph (C) the following new subparagraph: 
‘‘(D) LOOK-THROUGH OF REINSURANCE AND FRONTING 
ARRANGEMENTS.—In the case of reinsurance or any 
fronting, intermediary, or similar arrangement, the term 
‘policyholder’ means each policyholder of the underlying 
direct written insurance with respect to such reinsurance 
or arrangement.’’. 
(s) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provision of the Protecting 
Americans from Tax Hikes Act of 2015 to which they relate. 
SEC. 102. AMENDMENT RELATING TO CONSOLIDATED APPROPRIA-
TIONS ACT, 2016. 
(a) AMENDMENT RELATING TO SECTION 305 OF DIVISION P.— 
For purposes of applying section 199(c)(3)(C)(i) of the Internal Rev-
enue Code of 1986 (as in effect before its repeal by Public Law 
115-97) to taxable years beginning after December 31, 2015, and 
before January 1, 2018, such section shall be applied— 
(1) by inserting ‘‘who elects the application of this clause 
for any taxable year,’’ after ‘‘In the case of any taxpayer’’, 
(2) by substituting ‘‘, and who’’ for ‘‘and who’’, 
(3) by substituting ‘‘such taxable year’’ for ‘‘the taxable 
year’’, and 
(4) by substituting ‘‘(as defined in subsection (d)(9)(B))’’ 
for ‘‘under subsection (d)(9)(B)’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in section 305 of division P of 
the Consolidated Appropriations Act, 2016. 
SEC. 103. AMENDMENTS RELATING TO FIXING AMERICA’S SURFACE 
TRANSPORTATION ACT. 
(a) AMENDMENTS RELATING TO SECTION 32101.— 
(1) Section 7345(e)(1) is amended— 
(A) by striking ‘‘or the Tax Court’’ and inserting ‘‘, 
or against the Commissioner in the Tax Court,’’, and 
(B) by adding at the end the following: ‘‘For purposes 
of the preceding sentence, the court first acquiring jurisdic-
tion over such an action shall have sole jurisdiction.’’.
H. R. 1625—823 
(2) Section 7345(f) is amended by striking ‘‘subsection (a)’’ 
and inserting ‘‘subsection (b)(1)(B)’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in section 32101 of the Fixing 
America’s Surface Transportation Act. 
SEC. 104. AMENDMENTS RELATING TO SURFACE TRANSPORTATION 
AND VETERANS HEALTH CARE CHOICE IMPROVEMENT 
ACT OF 2015. 
(a) AMENDMENT RELATING TO SECTION 2004.—Section 6662(k) 
is amended to read as follows: 
‘‘(k) INCONSISTENT ESTATE BASIS REPORTING.—For purposes of 
this section, the term ‘inconsistent estate basis’ means any portion 
of an underpayment attributable to the failure to comply with 
section 1014(f).’’. 
(b) 
AMENDMENTS
RELATING
TO
SECTION
2008.—Section 
9503(e)(2) is amended— 
(1) by striking ‘‘per gallon’’ in subparagraph (C) and 
inserting ‘‘per energy equivalent of a gallon of diesel (as defined 
in section 4041(a)(2)(D))’’, and 
(2) by striking ‘‘per gallon’’ in subparagraph (D) and 
inserting ‘‘per energy equivalent of a gallon of gasoline (as 
defined in section 4041(a)(2)(C))’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provision of the Surface 
Transportation and Veterans Health Care Choice Improvement Act 
of 2015 to which they relate. 
SEC. 105. AMENDMENTS RELATING TO STEPHEN BECK, JR., ABLE ACT 
OF 2014. 
(a) AMENDMENTS RELATING TO SECTION 208.—Section 208(h) 
of the Stephen Beck, Jr., ABLE Act of 2014 is amended— 
(1) by striking so much as precedes ‘‘made by this section’’ 
and inserting the following: 
‘‘(h) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the amendments’’, 
(2) by inserting ‘‘, and statements required to be furnished,’’ 
after ‘‘returns required to be filed’’, and 
(3) by adding at the end the following new paragraph: 
‘‘(2) SUBSECTION (c).—The amendment made by subsection 
(c) shall apply to returns or claims for refund filed after 
December 31, 2014.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in section 208 of the Stephen Beck, 
Jr., ABLE Act of 2014. 
SEC. 106. AMENDMENT RELATING TO AMERICAN TAXPAYER RELIEF 
ACT OF 2012. 
(a) 
AMENDMENT
RELATING
TO
SECTION
104.—Section 
6211(b)(4)(A) is amended by striking ‘‘subsection (i)(6)’’ and inserting 
‘‘subsection (i)(5)’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in section 104 of the American 
Taxpayer Relief Act of 2012.
H. R. 1625—824 
SEC. 107. AMENDMENT RELATING TO UNITED STATES-KOREA FREE 
TRADE AGREEMENT IMPLEMENTATION ACT. 
(a) AMENDMENT RELATING
TO SECTION 501.—Section 501(b) 
of the United States-Korea Free Trade Agreement Implementation 
Act is amended by striking ‘‘returns required to be filed’’ and 
inserting ‘‘documents prepared’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in section 501 of the United States- 
Korea Free Trade Agreement Implementation Act. 
SEC. 108. AMENDMENT RELATING TO SAFETEA–LU. 
(a) AMENDMENT RELATING TO SECTION 11125.—Section 5681(b) 
is amended by striking ‘‘who has paid the special tax (or who 
is exempt from payment of such special tax by reason of the provi-
sions of section 5113(a))’’ and inserting ‘‘who meets the requirements 
of section 5121(a) and section 5124 (or who is exempt from such 
requirements by reason of section 5121(b))’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in section 11125 of the Safe, Account-
able, Flexible, Efficient Transportation Equity Act: A Legacy for 
Users. 
SEC. 109. AMENDMENTS RELATING TO THE AMERICAN JOBS CREATION 
ACT OF 2004. 
(a) 
AMENDMENT
RELATING
TO
SECTION
233.—Section 
1361(c)(2)(B)(vi) is amended by striking ‘‘a shareholder’’ and 
inserting ‘‘the shareholder’’. 
(b) 
AMENDMENT
RELATING
TO
SECTION
319.—Section 
501(c)(12)(E) is amended by striking ‘‘means the Federal Energy 
Regulatory Commission’’ and all that follows and inserting: 
‘‘means— 
‘‘(i) the Federal Energy Regulatory Commission, 
or 
‘‘(ii) in the case of any utility with respect to which 
all of the electricity generated, transmitted, or distrib-
uted by such utility is generated, transmitted, distrib-
uted, and consumed in the same State, the State 
agency of such State with the authority to regulate 
electric utilities.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in section 319 of the American 
Jobs Creation Act of 2004. 
TITLE 
II—TECHNICAL 
CORRECTIONS 
RELATED TO PARTNERSHIP AUDIT 
RULES 
SEC. 201. SCOPE OF ADJUSTMENTS SUBJECT TO PARTNERSHIP AUDIT 
RULES. 
(a) IN GENERAL.—Section 6241(2) is amended to read as follows: 
‘‘(2) PARTNERSHIP ADJUSTMENT.— 
‘‘(A) IN GENERAL.—The term ‘partnership adjustment’ 
means any adjustment to a partnership-related item. 
‘‘(B) PARTNERSHIP-RELATED ITEM.—The term ‘partner-
ship-related item’ means—
H. R. 1625—825 
‘‘(i) any item or amount with respect to the partner-
ship (without regard to whether or not such item or 
amount appears on the partnership’s return and 
including an imputed underpayment and any item or 
amount relating to any transaction with, basis in, or 
liability of, the partnership) which is relevant (deter-
mined without regard to this subchapter) in deter-
mining the tax liability of any person under chapter 
1, and 
‘‘(ii) any partner’s distributive share of any item 
or amount described in clause (i).’’. 
(b) COORDINATION WITH OTHER CHAPTERS.— 
(1) IN GENERAL.—Section 6241 is amended by adding at 
the end the following new paragraph: 
‘‘(9) COORDINATION WITH OTHER CHAPTERS.— 
‘‘(A) IN GENERAL.—This subchapter shall not apply with 
respect to any tax imposed (including any amount required 
to be deducted or withheld) under chapter 2, 2A, 3, or 
4, except that any partnership adjustment determined 
under this subchapter for purposes of chapter 1 shall be 
taken into account for purposes of determining any such 
tax to the extent that such adjustment is relevant to such 
determination. 
‘‘(B) TIMING OF WITHHOLDING.—In the case of any tax 
imposed (including any amount required to be deducted 
or withheld) under chapter 3 or 4, which is determined 
with respect to an adjustment described in subparagraph 
(A), such tax— 
‘‘(i) shall be so determined with respect to the 
reviewed year, and 
‘‘(ii) shall be so imposed (or so required to be 
deducted or withheld) with respect to the adjustment 
year. 
‘‘(C) STATUTE OF LIMITATION ON ASSESSMENT.—For spe-
cial rule with respect to limitation on assessment of taxes 
under chapter 2 or 2A which are attributable to any part-
nership adjustment, see section 6501(c)(12).’’. 
(2) SPECIAL RULE.—Section 6501(c) is amended by adding 
at the end the following new paragraph: 
‘‘(12) CERTAIN
TAXES
ATTRIBUTABLE
TO
PARTNERSHIP 
ADJUSTMENTS.—In the case of any partnership adjustment 
determined under subchapter C of chapter 63, the period for 
assessment of any tax imposed under chapter 2 or 2A which 
is attributable to such adjustment shall not expire before the 
date that is 1 year after— 
‘‘(A) in the case of an adjustment pursuant to the 
decision of a court in a proceeding brought under section 
6234, such decision becomes final, or 
‘‘(B) in any other case, 90 days after the date on 
which the notice of the final partnership adjustment is 
mailed under section 6231.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6211(c) is amended to read as follows: 
‘‘(c) COORDINATION WITH SUBCHAPTER C.—In determining the 
amount of any deficiency for purposes of this subchapter, adjust-
ments to partnership-related items shall be made only as provided 
in subchapter C.’’.
H. R. 1625—826 
(2) Section 6221(a) is amended to read as follows: 
‘‘(a) IN GENERAL.—Any adjustment to a partnership-related 
item shall be determined, and any tax attributable thereto shall 
be assessed and collected, and the applicability of any penalty, 
addition to tax, or additional amount which relates to an adjustment 
to any such item shall be determined, at the partnership level, 
except to the extent otherwise provided in this subchapter.’’. 
(3) Section 6222(a) is amended to read as follows: 
‘‘(a) IN GENERAL.—A partner shall, on the partner’s return, 
treat any partnership-related item in a manner which is consistent 
with the treatment of such item on the partnership return.’’. 
(4) Section 6226(a)(2) is amended by striking ‘‘any adjust-
ment to income, gain, loss, deduction, or credit’’ and inserting 
‘‘any adjustment to a partnership-related item’’. 
(5) Section 6227(a) is amended by striking ‘‘items of income, 
gain, loss, deduction, or credit of the partnership’’ and inserting 
‘‘partnership-related items’’. 
(6) Section 6231(a)(1) is amended by striking ‘‘any item 
of income, gain, loss, deduction, or credit of a partnership 
for a partnership taxable year’’ and inserting ‘‘any partnership- 
related item for any partnership taxable year’’. 
(7) Section 6234(c) is amended by striking ‘‘all items of 
income, gain, loss, deduction, or credit of the partnership’’ and 
inserting ‘‘all partnership-related items’’. 
(8) Section 7485(b) is amended by striking ‘‘partnership 
items’’ and inserting ‘‘partnership-related items (as defined in 
section 6241)’’. 
SEC. 202. DETERMINATION OF IMPUTED UNDERPAYMENTS. 
(a) IN GENERAL.—Section 6225(b) is amended to read as follows: 
‘‘(b) DETERMINATION OF IMPUTED UNDERPAYMENTS.—For pur-
poses of this subchapter— 
‘‘(1) IN GENERAL.—Except as otherwise provided in this 
section, any imputed underpayment with respect to any 
reviewed year shall be determined by the Secretary by— 
‘‘(A) appropriately netting all partnership adjustments 
with respect to such reviewed year, and 
‘‘(B) applying the highest rate of tax in effect for the 
reviewed year under section 1 or 11. 
‘‘(2) ADJUSTMENTS TO DISTRIBUTIVE SHARES OF PARTNERS 
NOT NETTED.—In the case of any adjustment which reallocates 
the distributive share of any item from one partner to another, 
such adjustment shall be taken into account by disregarding 
so much of such adjustment as results in a decrease in the 
amount of the imputed underpayment. 
‘‘(3) ADJUSTMENTS SEPARATELY NETTED BY CATEGORY.—For 
purposes of paragraph (1)(A), partnership adjustments for any 
reviewed year shall first be separately determined (and netted 
as appropriate) within each category of items that are required 
to be taken into account separately under section 702(a) or 
other provision of this title. 
‘‘(4) LIMITATION ON ADJUSTMENTS THAT MAY BE TAKEN INTO 
ACCOUNT.—If any adjustment would (but for this paragraph)— 
‘‘(A) result in a decrease in the amount of the imputed 
underpayment, and 
‘‘(B) could be subject to any additional limitation under 
the provisions of this title (or not allowed, in whole or
H. R. 1625—828 
then the imputed underpayment amount shall be deter-
mined without regard to the portion of the adjustments 
so taken into account. 
‘‘(B) ALTERNATIVE
PROCEDURE
TO
FILING
AMENDED 
RETURNS.—Such procedures shall provide that, with respect 
to any partner referred to in subparagraph (A), the require-
ments of subparagraph (A) shall be treated as satisfied 
with respect to adjustments properly allocable to such 
partner if, in lieu of filing the returns described in such 
subparagraph— 
‘‘(i) the amounts described in subparagraph (A)(iii) 
are paid by the partner, 
‘‘(ii) the partner agrees to take into account, in 
the form and manner prescribed by the Secretary, the 
adjustments to the tax attributes of such partner 
referred to in subparagraph (A)(ii), and 
‘‘(iii) such partner provides, in the form and 
manner specified by the Secretary (including, if the 
Secretary so specifies, in the same form as on an 
amended return), such information as the Secretary 
may require to carry out this subparagraph. 
‘‘(C) REALLOCATION
OF
DISTRIBUTIVE
SHARE.—In the 
case of any adjustment which reallocates the distributive 
share of any item from one partner to another, this para-
graph shall apply with respect to any such partner only 
if the requirements of subparagraph (A) or (B) are satisfied 
with respect to all partners affected by such adjustment. 
‘‘(D) APPLICATION OF STATUTE OF LIMITATIONS.—In the 
case of adjustments referred to in subparagraph (A)(ii), 
sections 6501 and 6511 shall not apply with respect to 
any return filed for purposes of subparagraph (A)(i) or 
any amount paid under subparagraph (A)(iii) or (B)(i). 
‘‘(E) ADJUSTMENTS
TO
TAX
ATTRIBUTES
BINDING
FOR 
AFFECTED TAXABLE YEARS OF PARTNER.—The adjustments 
to the tax attributes of any partner provided for in subpara-
graph (A)(ii) or (B)(ii) shall be binding with respect to 
the taxable year of the partner which includes the end 
of the reviewed year of the partnership and any taxable 
years for which any tax attribute is affected by such adjust-
ment. Any failure to so treat any such tax attribute shall 
be treated for purposes of this title in the same manner 
as a failure to treat a partnership-related item in a manner 
which is consistent with the treatment of such item on 
the partnership return within the meaning of section 6222. 
‘‘(F) APPLICATION TO PARTNERSHIPS AND S CORPORA-
TIONS IN TIERED STRUCTURES.— 
‘‘(i) IN GENERAL.—In the case of any partnership 
any partner of which is a partnership, subparagraph 
(A) or (B) may apply with respect to any partner (here-
after in this subparagraph referred to as the ‘relevant 
partner’) in the chain of ownership of such partnerships 
if— 
‘‘(I) such information as the Secretary may 
require is furnished to the Secretary for purposes 
of carrying out this paragraph with respect to such
H. R. 1625—829 
partnerships (including any information the Sec-
retary may require with respect to any chain of 
ownership of the relevant partner), and 
‘‘(II) to such extent as the Secretary may 
require, each partnership in the chain of ownership 
between the relevant partner and the audited part-
nership satisfies the requirements of subparagraph 
(A) or (B). 
‘‘(ii) TREATMENT
OF
S
CORPORATIONS.—For pur-
poses of clause (i), an S corporation and its share-
holders shall be treated in the same manner as a 
partnership and its partners.’’. 
(b) CONFORMING AMENDMENT.—Section 6201(a)(1) is amended 
by inserting ‘‘(or payments under section 6225(c)(2)(B)(i))’’ after 
‘‘returns or lists’’. 
SEC. 204. TREATMENT OF PASSTHROUGH PARTNERS IN TIERED 
STRUCTURES. 
(a) IN GENERAL.—Section 6226(b) is amended by adding at 
the end the following new paragraph: 
‘‘(4) TREATMENT
OF
PARTNERSHIPS
AND
S
CORPORATIONS 
IN TIERED STRUCTURES.— 
‘‘(A) IN GENERAL.—If a partner which receives a state-
ment under subsection (a)(2) is a partnership or an S 
corporation, such partner shall, with respect to the part-
ner’s share of the adjustment— 
‘‘(i) file with the Secretary a partnership adjust-
ment tracking report which includes such information 
as the Secretary may require, and 
‘‘(ii)(I) furnish statements under rules similar to 
the rules of subsection (a)(2), or 
‘‘(II) if no such statements are furnished, compute 
and pay an imputed underpayment under rules similar 
to the rules of section 6225 (other than paragraphs 
(2), (7), and (9) of subsection (c) thereof). 
‘‘(B) DUE DATE.—For purposes of subparagraph (A), 
with respect to a partner’s share of the adjustment, the 
partnership adjustment tracking report shall be filed, and 
the imputed underpayment shall be paid or statements 
shall be furnished, not later than the due date for the 
return for the adjustment year of the audited partnership. 
‘‘(C) PARTNERSHIP PAYMENT OF TAX IF ELECTED OUT 
OF SUBCHAPTER.—In the case of a partnership which has 
elected the application of section 6221(b) with respect to 
the taxable year of the partnership which includes the 
end of the reviewed year of the audited partnership, this 
paragraph shall apply notwithstanding such election. 
‘‘(D) AUDITED PARTNERSHIP.—For purposes of this para-
graph, the term ‘audited partnership’ means, with respect 
to any partner described in subparagraph (A), the partner-
ship in the chain of ownership originally electing the 
application of this section. 
‘‘(E) TREATMENT OF TRUSTS.—The Secretary shall pre-
scribe such rules as may be necessary with respect to 
trusts which receive a statement under subsection (a)(2).’’. 
(b) CONFORMING AMENDMENTS.—
H. R. 1625—830 
(1) Section 6226(b)(1) is amended by striking ‘‘Each part-
ner’s’’ and inserting ‘‘Except as provided in paragraph (4), each 
partner’s’’. 
(2) Section 6226(c)(2) is amended by inserting ‘‘or which 
is described in subsection (b)(4)(A)(ii)(I),’’ after ‘‘is elected,’’. 
SEC. 205. TREATMENT OF FAILURE OF PARTNERSHIP TO PAY IMPUTED 
UNDERPAYMENT. 
(a) IN GENERAL.—Section 6232 is amended by adding at the 
end the following new subsection: 
‘‘(f) FAILURE TO PAY IMPUTED UNDERPAYMENT.— 
‘‘(1) IN GENERAL.—If any amount of any imputed under-
payment to which section 6225 applies or any specified similar 
amount (or any interest or penalties with respect to any such 
amount) has not been paid by the date which is 10 days 
after the date on which the Secretary provides notice and 
demand for such payment— 
‘‘(A) section 6621(a)(2)(B) shall be applied by sub-
stituting ‘5 percentage points’ for ‘3 percentage points’ with 
respect to such amount, and 
‘‘(B) the Secretary may assess upon each partner of 
the partnership (determined as of the close of the adjust-
ment year or, if the partnership has ceased to exist as 
of such time, the former partners of the partnership as 
determined for purposes of section 6241(7)) a tax equal 
to such partner’s proportionate share of such amount 
(including any such interest or penalties, determined after 
application of subparagraph (A)). 
‘‘(2) SPECIFIED SIMILAR AMOUNT.—For purposes of this sub-
section, the term ‘specified similar amount’ means— 
‘‘(A) the amount described in subclause (II) of section 
6226(b)(4)(A)(ii) (including any failure to satisfy the 
requirement of subclause (I) of such section which is treated 
as a failure to pay such amount under section 6651(i)), 
and 
‘‘(B) any amount assessed under paragraph (1)(B) upon 
a partner which is a partnership. 
‘‘(3) PROPORTIONATE
SHARE.—For purposes of paragraph 
(1), a partner’s proportionate share is such percentage as the 
Secretary may determine on the basis of such partner’s distribu-
tive share. The Secretary shall make determinations under 
the preceding sentence such that the aggregate proportionate 
shares so determined total 100 percent. 
‘‘(4) COORDINATION
WITH
PARTNERSHIP
LIABILITY.—The 
liability of the partnership for any amount with respect to 
which a partner is made liable under paragraph (1) shall be 
reduced upon payment by the partner of such amount. Para-
graph (1)(B) shall not apply with respect to any amount after 
the date on which such amount is paid by the partnership. 
‘‘(5) S CORPORATIONS.—For purposes of this subsection, an 
S corporation and its shareholders shall be treated in the 
same manner as a partnership and its partners. 
‘‘(6) RULES RELATED TO ASSESSMENT AND COLLECTION.— 
‘‘(A) DEFICIENCY PROCEDURES NOT APPLICABLE.—Sub-
chapter B shall not apply to any assessment or collection 
under this paragraph.
H. R. 1625—831 
‘‘(B) LIMITATION ON ASSESSMENT.—Except as otherwise 
provided in this subtitle, no assessment may be made (or 
proceeding in court begun without assessment) with respect 
to any partner with respect to an amount under paragraph 
(1) after the date which is 2 years after the date on which 
the Secretary provides the notice and demand referred 
to in paragraph (1) with respect to such amount.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
6501(c)(4)(A) 
is 
amended by striking ‘‘in this section’’. 
SEC. 206. OTHER TECHNICAL CORRECTIONS RELATED TO PARTNER-
SHIP AUDIT RULES. 
(a) LIMITATION
ON AMENDMENT
OF STATEMENTS FURNISHED 
TO PARTNERS NOT APPLICABLE TO PARTNERSHIPS ELECTING OUT 
OF PARTNERSHIP AUDIT RULES.—Section 6031(b) is amended by 
striking the last sentence and inserting the following: ‘‘Information 
required to be furnished by the partnership under this subsection 
may not be amended after the due date of the return under sub-
section (a) to which such information relates, except— 
‘‘(1) in the case of a partnership which has elected the 
application of section 6221(b) for the taxable year, 
‘‘(2) as provided in the procedures under section 6225(c), 
‘‘(3) with respect to statements under section 6226, or 
‘‘(4) as otherwise provided by the Secretary.’’. 
(b) ADMINISTRATIVE ADJUSTMENT REQUEST AND PARTNERSHIP 
ADJUSTMENT TRACKING REPORT NOT TREATED AS AMENDED RETURN 
FOR PURPOSES OF MODIFICATION OF IMPUTED UNDERPAYMENTS.— 
Section 6225(c)(2), as amended by the preceding provisions of this 
Act, is amended by adding at the end the following new subpara-
graph: 
‘‘(F) 
ADJUSTMENTS
NOT
TREATED
AS
AMENDED 
RETURN.—An administrative adjustment request under sec-
tion 6227 and a partnership adjustment tracking report 
under section 6226(b)(4)(A) shall not be treated as a return 
for purposes of this paragraph.’’. 
(c) AUTHORITY TO REQUIRE E-FILING OF MATERIALS IN CONNEC-
TION WITH MODIFICATION OF IMPUTED UNDERPAYMENTS, ETC.—Sec-
tion 6241, as amended by the preceding provisions of this Act, 
is amended by adding at the end the following new paragraph: 
‘‘(10) AUTHORITY TO REQUIRE ELECTRONIC FILING.—Notwith-
standing section 6011(e), the Secretary may require that any-
thing required to be filed or submitted under section 6225(c), 
or to be furnished to or filed with the Secretary under section 
6226, be so filed, submitted, or furnished by magnetic media 
or in other machine-readable form.’’. 
(d) CLARIFICATION OF ASSESSMENT AUTHORITY.—Section 6226(a) 
is amended by inserting ‘‘(and no assessment of tax, levy, or pro-
ceeding in any court for the collection of such underpayment shall 
be made against such partnership)’’ after ‘‘section 6225 shall not 
apply with respect to such underpayment’’. 
(e) TREATMENT OF PARTNERSHIP ADJUSTMENTS THAT RESULT 
IN DECREASE IN TAX IN CASE OF ELECTION TO PUSH OUT ADJUST-
MENTS.—Section 6226(b) is amended— 
(1) by striking ‘‘increased’’ in paragraph (1) and inserting 
‘‘adjusted’’, 
(2) by striking ‘‘adjustment amounts’’ each place it appears 
in paragraphs (1) and (2) and inserting ‘‘correction amounts’’,
H. R. 1625—832 
(3) by striking ‘‘increase’’ each place it appears in subpara-
graphs (A) and (B) of paragraph (2) and inserting ‘‘increase 
or decrease’’, 
(4) by striking ‘‘plus’’ at the end of paragraph (2)(A) and 
inserting ‘‘and’’, and 
(5) by striking ‘‘ADJUSTMENT
AMOUNTS’’ in the heading 
of paragraph (2) and inserting ‘‘CORRECTION AMOUNTS’’. 
(f) COORDINATION
OF
STATUTE
OF
LIMITATION
ON
FILING 
ADMINISTRATION
ADJUSTMENT
REQUEST
WITH
ADJUSTMENTS 
RELATED TO FOREIGN TAX CREDITS.—Section 6227 is amended by 
adding at the end the following new subsection: 
‘‘(d) COORDINATION WITH ADJUSTMENTS RELATED TO FOREIGN 
TAX CREDITS.—The Secretary shall issue regulations or other guid-
ance which provide for the proper coordination of this section and 
section 905(c).’’. 
(g) CLARIFICATION
OF ASSESSMENT
OF IMPUTED UNDERPAY-
MENTS.— 
(1) IN GENERAL.—Section 6232(a) is amended by striking 
‘‘except that in the case of’’ and all that follows and inserting 
the following: ‘‘except that— 
‘‘(1) subchapter B of chapter 63 shall not apply, and 
‘‘(2) in the case of an administrative adjustment request 
to which section 6227(b)(1) applies, the underpayment shall 
be paid and may be assessed when the request is filed.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
6232(b) 
is 
amended— 
(A) by striking ‘‘assessment of a deficiency’’ and 
inserting ‘‘assessment of an imputed underpayment’’, and 
(B) by adding at the end the following new flush 
matter: 
‘‘The preceding sentence shall not apply in the case of a specified 
similar amount (as defined in subsection (f)(2)).’’. 
(h) TIME LIMITATION FOR NOTICE OF PROPOSED ADJUSTMENT.— 
(1) IN GENERAL.—Section 6231 is amended by redesignating 
subsections (b) and (c) as subsections (c) and (d), respectively, 
and by inserting after subsection (a) the following new sub-
section: 
‘‘(b) TIMING OF NOTICES.— 
‘‘(1) NOTICE OF PROPOSED PARTNERSHIP ADJUSTMENT.—Any 
notice of a proposed partnership adjustment shall not be mailed 
later than the date determined under section 6235 (determined 
without regard to paragraphs (2) and (3) of subsection (a) 
thereof). 
‘‘(2) NOTICE OF FINAL PARTNERSHIP ADJUSTMENT.— 
‘‘(A) IN GENERAL.—Except to the extent that the part-
nership elects to waive the application of this subpara-
graph, any notice of a final partnership adjustment shall 
not be mailed earlier than 270 days after the date on 
which the notice of the proposed partnership adjustment 
is mailed. 
‘‘(B) STATUTE OF LIMITATIONS ON ADJUSTMENT.—For 
the period of limitations on making adjustments, see section 
6235.’’. 
(2) CONFORMING AMENDMENT.—Section 6231(a) is amended 
by striking ‘‘Any notice of a final partnership adjustment’’ and 
all that follows through ‘‘Such notices’’ and inserting ‘‘Any 
notice of a final partnership adjustment’’.
H. R. 1625—833 
(i) DEPOSIT
TO
SUSPEND
INTEREST
ON
IMPUTED
UNDER-
PAYMENT.—Section 6233 is amended by adding at the end the 
following new subsection: 
‘‘(c) DEPOSIT
TO
SUSPEND
INTEREST.—For rules allowing 
deposits to suspend running of interest on potential underpayments, 
see section 6603.’’. 
(j) DEPOSIT TO MEET JURISDICTIONAL REQUIREMENT.—The first 
sentence of section 6234(b) is amended by striking ‘‘the amount 
of the imputed underpayment (as of the date of the filing of the 
petition)’’ and inserting ‘‘the amount of (as of the date of the 
filing of the petition) the imputed underpayment, penalties, addi-
tions to tax, and additional amounts with respect to such imputed 
underpayment’’. 
(k) CORRECTIONS
RELATED
TO
PERIOD
OF
LIMITATION
ON 
MAKING ADJUSTMENTS.— 
(1) Section 6235(a) is amended— 
(A) by inserting ‘‘or section 905(c)’’ after ‘‘Except as 
otherwise provided in this section’’, and 
(B) by striking ‘‘subpart’’ and inserting ‘‘subchapter’’. 
(2) Section 6235(a)(3) is amended by striking ‘‘section 
6225(c)(7)’’ and inserting ‘‘section 6225(c)(7))’’. 
(3) Section 6235(c)(2) is amended by striking ‘‘section 
6501(e)(1)(A)’’ and inserting ‘‘subparagraph (A) or (C) of section 
6501(e)(1)’’. 
(4) Section 6235(c) is amended by adding at the end the 
following new subparagraphs: 
‘‘(5) INFORMATION REQUIRED TO BE REPORTED.—In the case 
of a partnership that is required to report any information 
described in section 6501(c)(8), the time for making any adjust-
ment under this subchapter with respect to any tax return, 
event, or period to which such information relates shall not 
expire before the date that is determined under section 
6501(c)(8). 
‘‘(6) LISTED TRANSACTIONS.—If a partnership fails to include 
on any return or statement any information with respect to 
a listed transaction as described in section 6501(c)(10), the 
time for making any adjustment under this subchapter with 
respect to such transaction shall not expire before the date 
that is determined under section 6501(c)(10).’’. 
(5) Section 6235 is amended by striking subsection (d). 
(l) TREATMENT OF SPECIAL ENFORCEMENT MATTERS.—Section 
6241, as amended by the preceding provisions of this Act, is 
amended by adding at the end the following new paragraph: 
‘‘(11) TREATMENT OF SPECIAL ENFORCEMENT MATTERS.— 
‘‘(A) IN GENERAL.—In the case of partnership-related 
items which involve special enforcement matters, the Sec-
retary may prescribe regulations pursuant to which— 
‘‘(i) this subchapter (or any portion thereof) does 
not apply to such items, and 
‘‘(ii) such items are subject to such special rules 
(including rules related to assessment and collection) 
as the Secretary determines to be necessary for the 
effective and efficient enforcement of this title. 
‘‘(B) SPECIAL
ENFORCEMENT
MATTERS.—For purposes 
of subparagraph (A), the term ‘special enforcement matters’ 
means—
H. R. 1625—834 
‘‘(i) failure to comply with the requirements of 
section 6226(b)(4)(A)(ii), 
‘‘(ii) assessments under section 6851 (relating to 
termination assessments of income tax) or section 6861 
(relating to jeopardy assessments of income, estate, 
gift, and certain excise taxes), 
‘‘(iii) criminal investigations, 
‘‘(iv) indirect methods of proof of income, 
‘‘(v) foreign partners or partnerships, and 
‘‘(vi) other matters that the Secretary determines 
by regulation present special enforcement consider-
ations.’’. 
(m) UNITED STATES SHAREHOLDERS AND CERTAIN OTHER PER-
SONS TREATED AS PARTNERS.—Section 6241, as amended by the 
preceding provisions of this Act, is amended by adding at the 
end the following new paragraph: 
‘‘(12) UNITED STATES SHAREHOLDERS AND CERTAIN OTHER 
PERSONS TREATED AS PARTNERS.— 
‘‘(A) IN GENERAL.—Except as otherwise provided by 
the Secretary, in the case of any controlled foreign corpora-
tion (as defined in section 957 or 953(c)(1)) which is a 
partner of a partnership, each United States shareholder 
(as defined in section 951(b) or 953(c)(1)) with respect to 
such controlled foreign corporation shall be treated for 
purposes of this subchapter as a partner of such partner-
ship. For purposes of the preceding sentence, any distribu-
tive share of any such United States shareholder with 
respect to such partnership shall, except as otherwise pro-
vided by the Secretary, be equal to such United States 
shareholder’s pro rata share with respect to such controlled 
foreign corporation (determined under rules similar to the 
rules of section 951(a)(2)). 
‘‘(B) PASSIVE
FOREIGN
INVESTMENT
COMPANIES.—For 
purposes of subparagraph (A), in the case of a passive 
foreign investment company (as defined in section 1297), 
each taxpayer that makes an election under section 1295 
with respect to such company shall be treated in the same 
manner as United States shareholders under subparagraph 
(A), except that such taxpayer’s pro rata share with respect 
to the passive foreign investment company shall be deter-
mined under rules similar to the rules of section 1293(b). 
‘‘(C) REGULATIONS OR OTHER GUIDANCE.—The Secretary 
shall issue such regulations or other guidance as is nec-
essary or appropriate to carry out the purposes of this 
paragraph, including regulations which apply the rules 
of subparagraph (A) in similar circumstances or with 
respect to similarly situated persons.’’. 
(n) PENALTIES
RELATED
TO
ADMINISTRATIVE
ADJUSTMENT 
REQUESTS AND PARTNERSHIP ADJUSTMENT TRACKING REPORTS.— 
(1) FAILURE TO PAY.—Section 6651 is amended by redesig-
nating subsection (i) as subsection (j) and by inserting after 
subsection (h) the following new subsection: 
‘‘(i) APPLICATION TO IMPUTED UNDERPAYMENT.—For purposes 
of this section, any failure to comply with section 6226(b)(4)(A)(ii) 
shall be treated as a failure to pay the amount described in sub-
clause (II) thereof and such amount shall be treated for purposes
H. R. 1625—835 
of this section as an amount shown as tax on a return specified 
in subsection (a)(1).’’. 
(2) FAILURE TO FILE PARTNERSHIP ADJUSTMENT TRACKING 
REPORT.—Section 6698(a) is amended— 
(A) in the matter preceding paragraph (1) by inserting 
‘‘, or a partnership adjustment tracking report under sec-
tion 6226(b)(4)(A),’’ after ‘‘under section 6031’’, 
(B) in paragraph (1) by inserting ‘‘, or such report,’’ 
after ‘‘such return’’, and 
(C) in paragraph (2)— 
(i) by inserting ‘‘or a report’’ after ‘‘a return’’, and 
(ii) by inserting ‘‘or 6226(b)(4)(A), respectively’’ 
before the comma at the end. 
(3) TAX
RETURN
PREPARER
RELATED
PENALTIES.—Section 
6696(e)(1) is amended by inserting ‘‘, any administrative adjust-
ment request under section 6227, and any partnership adjust-
ment tracking report under section 6226(b)(4)(A)’’ before the 
period at the end. 
(4) FRIVOLOUS TAX SUBMISSIONS.—Section 6702 is amended 
by adding at the end the following new subsection: 
‘‘(f) PARTNERSHIP ADJUSTMENTS.—An administrative adjust-
ment request under section 6227 and a partnership adjustment 
tracking report under section 6226(b)(4)(A) shall be treated as a 
return for purposes of this section.’’. 
(o) ADJUSTED SCHEDULE K–1 TREATED AS PAYEE STATEMENT.— 
Section 6724(d)(2) is amended by striking ‘‘or’’ at the end of subpara-
graph (HH), by striking the period at the end of subparagraph 
(II) and inserting ‘‘, or’’, and by inserting after subparagraph (II) 
the following new subparagraph: 
‘‘(JJ) section 6226(a)(2) (relating to statements relating 
to alternative to payment of imputed underpayment by 
partnership) or under any other provision of this title which 
provides for the application of rules similar to such sec-
tion.’’. 
(p) OTHER CLERICAL CORRECTIONS.— 
(1) Section 6225(c)(7) is amended by striking ‘‘submitted 
pursuant to paragraph (1)’’ and inserting ‘‘filed or submitted 
under this subsection’’. 
(2) Section 6227(b) is amended by striking ‘‘is made’’ both 
places it appears and inserting ‘‘is filed’’. 
(3) Section 6227(b)(1) is amended by striking ‘‘paragraphs 
(2), (6), and (7)’’ and inserting ‘‘paragraphs (2), (7), and (9)’’. 
(4) Section 6232(b) is amended by striking ‘‘this chapter’’ 
and inserting ‘‘this subtitle (other than subchapter B of this 
chapter)’’. 
(5) Section 6232(d)(1)(A) is amended by striking ‘‘a item’’ 
and inserting ‘‘an item’’. 
(6) Section 6232(e) is amended by striking ‘‘thereof’’. 
(7) Section 6241(5) is amended by striking ‘‘sections 6234’’ 
and inserting ‘‘section 6234’’. 
(8) Section 7485(b) is amended by striking ‘‘a partner’’ 
and inserting ‘‘the partnership’’. 
(9) The heading of the first part of subchapter C of chapter 
63 is amended to read as follows:
H. R. 1625—836 
‘‘PART I—IN GENERAL’’. 
(10) The heading of the second part of subchapter C of 
chapter 63 is amended to read as follows: 
‘‘PART II—PARTNERSHIP ADJUSTMENTS’’. 
(11) The heading of the third part of subchapter C of 
chapter 63 is amended to read as follows: 
‘‘PART III—PROCEDURE’’. 
(12) The heading of the fourth part of subchapter C of 
chapter 63 is amended to read as follows: 
‘‘PART IV—DEFINITIONS AND SPECIAL RULES’’. 
SEC. 207. EFFECTIVE DATE. 
The amendments made by this title shall take effect as if 
included in section 1101 of the Bipartisan Budget Act of 2015. 
TITLE III—OTHER CORRECTIONS 
SEC. 301. AMENDMENTS RELATING TO THE BIPARTISAN BUDGET ACT 
OF 2015. 
(a) AMENDMENTS RELATING TO SECTION 1101.— 
(1) Section 6011(e) is amended by adding at the end the 
following new paragraph: 
‘‘(5) SPECIAL RULES FOR PARTNERSHIPS.— 
‘‘(A) PARTNERSHIPS PERMITTED TO BE REQUIRED TO FILE 
ON MAGNETIC MEDIA.—In the case of a partnership, para-
graph (2)(A) shall be applied by substituting for ‘250’ the 
following amount: 
‘‘(i) In the case of returns and statements relating 
to calendar year 2018, ‘200’. 
‘‘(ii) In the case of returns and statements relating 
to calendar year 2019, ‘150’. 
‘‘(iii) In the case of returns and statements relating 
to calendar year 2020, ‘100’. 
‘‘(iv) In the case of returns and statements relating 
to calendar year 2021, ‘50’. 
‘‘(v) In the case of returns and statements relating 
to calendar years after 2021, ‘20’. 
‘‘(B) PARTNERSHIPS REQUIRED TO FILE ON MAGNETIC 
MEDIA.—Notwithstanding subparagraph (A) and paragraph 
(2)(A), the Secretary shall require partnerships having 
more than 100 partners to file returns on magnetic media.’’. 
(2) Section 6011(e)(2) is amended by striking the last sen-
tence. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in section 1101 of the Bipartisan 
Budget Act of 2015. 
SEC. 302. AMENDMENTS RELATING TO THE ENERGY POLICY ACT OF 
2005. 
(a) AMENDMENTS RELATING TO SECTION 1253.—
H. R. 1625—837 
(1) Subclause (II) of section 168(e)(3)(B)(vi) is amended 
by striking ‘‘is a qualifying small power production facility’’ 
and all that follows and inserting ‘‘has a power production 
capacity of not greater than 80 megawatts, or’’. 
(2) The last sentence of section 168(e)(3)(B) is amended 
by striking ‘‘clause (vi)(I)’’ and all that follows and inserting 
‘‘subclause (I) or (II) of clause (vi) by reason of being public 
utility property.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after the date of the 
enactment of this Act. 
TITLE IV—CLERICAL CORRECTIONS 
AND DEADWOOD 
SEC. 401. CLERICAL CORRECTIONS AND DEADWOOD-RELATED PROVI-
SIONS. 
(a) CLERICAL CORRECTIONS.— 
(1) The table of subchapters for chapter 1 is amended 
by moving the item relating to subchapter R before the item 
relating to subchapter S. 
(2)(A) Sections 22(c)(3)(A)(i)(III), 104(b)(2)(D), 140(a)(3), and 
149(b)(3)(A)(i) are each amended by striking ‘‘Veterans’ 
Administration’’ and inserting ‘‘Department of Veterans 
Affairs’’. 
(B) The heading of section 4980H(c)(2)(F) is amended by 
striking ‘‘VETERANS ADMINISTRATION’’ and inserting ‘‘DEPART-
MENT OF VETERANS AFFAIRS’’. 
(C) Section 6050H(h)(3)(B)(i) is amended by striking ‘‘Vet-
erans Administration’’ and inserting ‘‘Department of Veterans 
Affairs’’. 
(3) Section 24(d) is amended by redesignating paragraph 
(5) as paragraph (3). 
(4) Section 25C(b)(2) is amended by striking ‘‘subsection 
(c)(2)(B)’’ and inserting ‘‘subsection (c)(3)(B)’’. 
(5) Section 25C(d)(3) is amended— 
(A) by striking the period at the end of subparagraph 
(B) and inserting a comma, and 
(B) by striking the period at the end of subparagraph 
(D) and inserting ‘‘, and’’. 
(6) Section 25C(g)(2) is amended by striking ‘‘2017..’’ and 
inserting ‘‘2017.’’. 
(7) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1 is amended— 
(A) by striking the item relating to section 41 which 
relates to the employee stock ownership credit, and 
(B) by moving the item relating to section 45K after 
the item relating to section 45J. 
(8) Section 38(b)(34) is amended by adding a comma at 
the end. 
(9) The heading of section 40(g)(2) is amended by striking 
‘‘AGGREGRATION’’ and inserting ‘‘AGGREGATION’’. 
(10) The heading of section 42(e)(2)(B) is amended by 
striking ‘‘ETC,’’ and inserting ‘‘ETC.,’’.
H. R. 1625—860 
(III) by striking ‘‘IN GENERAL.—’’ and all that 
precedes it and inserting the following: 
‘‘(2) SPECIAL LIMITATIONS ON FOREIGN TESTING.—’’. 
(iv) Section 168(g)(4)(G) is amended by striking 
‘‘(other than a corporation which has an election in 
effect under section 936)’’. 
(v) Section 243(b)(1)(B) is amended to read as fol-
lows: 
‘‘(B) if such dividend is distributed out of the earnings 
and profits of a taxable year of the distributing corporation 
which ends after December 31, 1963, and on each day 
of which the distributing corporation and the corporation 
receiving the dividend were members of such affiliated 
group.’’. 
(vi) Section 246 is amended by striking subsection 
(e). 
(vii) Section 338(h)(6)(B)(i) is amended by striking 
‘‘, a DISC, or a corporation to which an election under 
section 936 applies’’ and inserting ‘‘or a DISC’’. 
(viii)(I) Section 367(d) is amended by adding at 
the end the following new paragraph: 
‘‘(4) INTANGIBLE
PROPERTY.—For purposes of this sub-
section, the term ‘intangible property’ means any— 
‘‘(A) patent, invention, formula, process, design, pat-
tern, or know-how, 
‘‘(B) copyright, literary, musical, or artistic composition, 
‘‘(C) trademark, trade name, or brand name, 
‘‘(D) franchise, license, or contract, 
‘‘(E) method, program, system, procedure, campaign, 
survey, study, forecast, estimate, customer list, or technical 
data, 
‘‘(F) goodwill, going concern value, or workforce in place 
(including its composition and terms and conditions 
(contractual or otherwise) of its employment), or 
‘‘(G) other item the value or potential value of which 
is not attributable to tangible property or the services 
of any individual.’’. 
(II) Section 367(d)(1) is amended by striking 
‘‘(within the meaning of section 936(h)(3)(B))’’. 
(III) Sections 482 and 1298(e)(2)(A) are each 
amended 
by 
striking 
‘‘section 
936(h)(3)(B)’’ 
and 
inserting ‘‘section 367(d)(4)’’. 
(ix) Section 861(a)(2)(A) is amended by striking 
‘‘other than a corporation which has an election in 
effect under section 936’’. 
(x) Section 864(d)(5) is amended to read as follows: 
‘‘(5) CERTAIN
PROVISIONS
NOT
TO
APPLY.—The following 
provisions shall not apply to any amount treated as interest 
under paragraph (1) or (6): 
‘‘(A) Section 904(d)(2)(B)(iii)(I) (relating to exceptions 
for export financing interest). 
‘‘(B) Subparagraph (A) of section 954(b)(3) (relating 
to exception where foreign base company income is less 
than 5 percent or $1,000,000). 
‘‘(C) Subparagraph (B) of section 954(c)(2) (relating 
to certain export financing).
H. R. 1625—861 
‘‘(D) Clause (i) of section 954(c)(3)(A) (relating to certain 
income received from related persons).’’. 
(xi) Section 865(j)(3) is amended by striking ‘‘, 
933, and 936’’ and inserting ‘‘and 933’’. 
(xii) Section 901(g)(2) is amended by inserting ‘‘(as 
in effect on the day before the date of the enactment 
of the Tax Technical Corrections Act of 2018)’’ after 
‘‘section 936’’. 
(xiii) Section 904(b) is amended by striking para-
graph (4) and by redesignating paragraph (5) as para-
graph (4). 
(xiv) Section 904(f)(1) is amended by striking ‘‘and 
section 936’’. 
(xv) Section 1202(e)(4) is amended by striking 
subparagraph (B) and by redesignating subparagraphs 
(C) and (D) as subparagraphs (B) and (C), respectively. 
(xvi) Section 1361(b)(2) is amended by adding ‘‘or’’ 
at the end of subparagraph (B), by striking subpara-
graph (C), and by redesignating subparagraph (D) as 
subparagraph (C). 
(xvii)(I) Section 1504(b) is amended by striking 
paragraph (4) and by redesignating paragraphs (6), 
(7), and (8) as paragraphs (4), (5), and (6), respectively. 
(II) Section 243(b)(2) is amended by striking ‘‘, 
1504(b)(4),’’. 
(III) Section 332(d)(2)(B) is amended by striking 
‘‘paragraphs (2) and (4)’’ and inserting ‘‘paragraph (2)’’. 
(IV) Section 864(e)(5)(A) is amended by striking 
‘‘(determined without regard to paragraph (4) of section 
1504(b))’’. 
(V) Section 864(f) is amended in paragraphs 
(1)(C)(i) and (2) by striking ‘‘paragraphs (2) and (4)’’ 
and inserting ‘‘paragraph (2)’’. 
(xviii) Section 6091(b)(2)(B) is amended by striking 
clause (ii) and by redesignating clauses (iii) and (iv) 
as clauses (ii) and (iii), respectively. 
(xix) Section 6654(d)(2)(D) is amended— 
(I) by striking ‘‘936(h) or’’ in clause (i), and 
(II) by striking ‘‘AND
SECTION 936’’ in the 
heading. 
(xx) Section 6655(e)(4) is amended— 
(I) by striking ‘‘936(h) or’’ in subparagraph 
(A), and 
(II) by striking ‘‘AND
SECTION 936’’ in the 
heading. 
(2) ENERGY EFFICIENT APPLIANCE CREDIT.— 
(A) IN GENERAL.—Subpart D of part IV of subchapter 
A of chapter 1 is amended by striking section 45M (and 
by striking the item relating to such section in the table 
of sections for such subpart). 
(B) 
CONFORMING
AMENDMENT.—Section 
38(b), 
as 
amended by the preceding provisions of this Act, is 
amended by striking paragraph (24) and by redesignating 
paragraphs (25) through (37) as paragraphs (24) through 
(36), respectively. 
(3) QUALIFYING THERAPEUTIC DISCOVERY PROJECT CREDIT.—
H. R. 1625—862 
(A) IN GENERAL.—Subpart E of part IV of subchapter 
A of chapter 1 is amended by striking section 48D (and 
by striking the item relating to such section in the table 
of sections for such subpart). 
(B) CONFORMING AMENDMENTS.— 
(i) Section 49(a)(1)(C) is amended by adding ‘‘and’’ 
at the end of clause (iv), by striking ‘‘, and’’ at the 
end of clause (v) and inserting a period, and by striking 
clause (vi). 
(ii) Section 50(a)(2)(E) is amended by striking 
‘‘48C(b)(2), or 48D(b)(4)’’ and inserting ‘‘or 48C(b)(2)’’. 
(iii) Section 280C is amended by striking the sub-
section (g) which relates to the qualifying therapeutic 
discovery project credit. 
(C) SAVINGS PROVISION.—In the case of the repeal of 
section 48D(e)(1) of the Internal Revenue Code of 1986, 
the amendments made by this paragraph shall not apply 
to expenditures made in taxable years beginning before 
January 1, 2011. 
(4) DC ZONE PROVISIONS.— 
(A) IN GENERAL.—Chapter 1 is amended by striking 
subchapter W (and by striking the item relating to such 
subchapter in the table of subchapters for such chapter). 
(B) CONFORMING AMENDMENTS.— 
(i) Section 23(c)(1) is amended by striking ‘‘sections 
25D and 1400C’’ and inserting ‘‘section 25D’’. 
(ii) Section 25(e)(1)(C) is amended by striking ‘‘sec-
tions 23, 25D, and 1400C’’ and inserting ‘‘sections 23 
and 25D’’. 
(iii) Section 45D(h) is amended by striking ‘‘sec-
tions 1202, 1400B, and 1400F’’ and inserting ‘‘section 
1202’’. 
(iv) Section 1016(a) is amended by striking para-
graph (27). 
(v) Section 1202(a)(2)(B) is amended by inserting 
‘‘(as in effect before its repeal)’’ after ‘‘1400B(b)’’. 
(vi) Section 1223(13) is amended by striking ‘‘sec-
tions 1202(a)(2), 1202(c)(2)(A), 1400B(b), and 1400F(b)’’ 
and inserting ‘‘subsections (a)(2) and (c)(2)(A) of section 
1202’’. 
(vii) Section 1397B(b)(1) is amended by striking 
subparagraph (B). 
(C) SAVINGS PROVISIONS.—The amendments made by 
this paragraph shall not apply to— 
(i) in the case of the repeal of section 1400A of 
the Internal Revenue Code of 1986, obligations 
described in section 1394 of such Code (as in effect 
before its repeal) which were issued before January 
1, 2012, 
(ii) in the case of the repeal of section 1400B 
of such Code, DC Zone assets (as defined in such 
section, as in effect before its repeal) which were 
acquired by the taxpayer before January 1, 2012, and 
(iii) in the case of the repeal of section 1400C 
of such Code, principal residences acquired before 
January 1, 2012. 
(5) RENEWAL COMMUNITY PROVISIONS.—
H. R. 1625—863 
(A) IN GENERAL.—Chapter 1 is amended by striking 
subchapter X (and by striking the item relating to such 
subchapter in the table of subchapters for such chapter). 
(B) CONFORMING AMENDMENTS.— 
(i) Section 469(i)(3) is amended by striking 
subparagraph (C) and by redesignating subparagraphs 
(D), (E), and (F) as subparagraphs (C), (D), and (E), 
respectively. 
(ii) Section 469(i)(3)(D), as so redesignated, is 
amended to read as follows: 
‘‘(D) ORDERING RULE.—Paragraph (1) shall be applied 
for any taxable year— 
‘‘(i) first, to the passive activity loss, 
‘‘(ii) second, to the portion of the passive activity 
credit to which subparagraph (B) and (C) does not 
apply, 
‘‘(iii) third, to the portion of such credit to which 
subparagraph (B) applies, and 
‘‘(iv) then, to the portion of such credit to which 
subparagraph (C) applies.’’. 
(iii) Section 469(i)(6)(B) is amended— 
(I) by striking ‘‘, REHABILITATION CREDIT, OR 
COMMERCIAL
REVITALIZATION
DEDUCTION’’ in the 
heading 
and 
inserting 
‘‘OR
REHABILITATION 
CREDIT’’, 
(II) by adding ‘‘or’’ at the end of clause (i), 
(III) by striking ‘‘, or’’ at the end of clause 
(ii) and inserting a comma, and 
(IV) by striking clause (iii). 
(iv) Section 1397B(b)(1), as amended by the pre-
ceding provisions of this Act, is amended by adding 
at the end the following new subparagraph: 
‘‘(B) REFERENCES.—Any reference in this paragraph 
to section 1400F shall be treated as reference to such 
section before its repeal.’’. 
(v) Section 1397B(b)(5) is amended by striking 
‘‘which is sold—’’ and all that follows and inserting 
‘‘which is sold, the taxpayer’s holding period for such 
asset and the asset referred to in subsection (a)(1) 
shall be determined without regard to section 1223.’’. 
(C) SAVINGS PROVISIONS.—The amendments made by 
this paragraph shall not apply to— 
(i) in the case of the repeal of section 1400F of 
the Internal Revenue Code of 1986, qualified commu-
nity assets (as defined in such section, as in effect 
before its repeal) which were acquired by the taxpayer 
before January 1, 2010, 
(ii) in the case of the repeal section 1400H of 
such Code, wages paid or incurred before January 1, 
2010, 
(iii) in the case of the repeal of section 1400I 
of such Code, qualified revitalization buildings (as 
defined in such section, as in effect before its repeal) 
which were placed in service before January 1, 2010, 
and 
(iv) in the case of the repeal of section 1400J 
of such Code, property acquired before January 1, 2010.
H. R. 1625—864 
(6) SHORT-TERM REGIONAL BENEFITS.— 
(A) IN GENERAL.—Chapter 1 is amended by striking 
subchapter Y (and by striking the item relating to such 
subchapter in the table of subchapters for such chapter). 
(B) CONFORMING AMENDMENTS.— 
(i) Section 38(b), as amended by the preceding 
provisions of this Act, is amended by striking para-
graphs (26), (27), (28), and (29) and by redesignating 
paragraphs (30) through (36) as paragraphs (26) 
through (32), respectively. 
(ii) Section 38(c)(2)(A)(ii)(II), as amended by the 
preceding provisions of this Act, is amended by striking 
‘‘, the New York Liberty Zone business employee 
credit,’’. 
(iii) Section 38(c) is amended by striking paragraph 
(3). 
(iv) Section 280C(a), as amended by the preceding 
provisions of this Act, is amended by striking ‘‘1396(a), 
1400P(b), and 1400R’’ and inserting ‘‘and 1396(a)’’. 
(v) Section 6033(b)(14) is amended by striking 
‘‘including the amount and use of qualified contribu-
tions to which section 1400S(a) applies,’’. 
(vi) Section 6049(d)(8)(A) is amended— 
(I) by striking ‘‘or 1400N(l)(6)’’, and 
(II) by striking ‘‘or 1400N(l)(2)(D), as the case 
may be’’. 
(C) SAVINGS PROVISIONS.—The amendments made by 
this paragraph shall not apply to— 
(i) in the case of the repeal of section 1400L(a) 
of the Internal Revenue Code of 1986, qualified wages 
(as defined in such section, as in effect before its repeal) 
which were paid or incurred before January 1, 2004, 
(ii) in the case of the repeal of subsections (b) 
and (f) of section 1400L of such Code, qualified New 
York Liberty Zone property (as defined in section 
1400L(b) of such Code, as in effect before its repeal) 
placed in service before January 1, 2010, 
(iii) in the case of the repeal of section 1400L(c) 
of such Code, qualified New York Liberty Zone lease-
hold improvement property (as defined in such section, 
as in effect before its repeal) placed in service before 
January 1, 2007, 
(iv) in the case of the repeal of section 1400L(d) 
of such Code, qualified New York Liberty bonds (as 
defined in such section, as in effect before its repeal) 
issued before January 1, 2014, 
(v) in the case of the repeal of section 1400L(e) 
of such Code, advanced refundings before January 1, 
2006, 
(vi) in the case of the repeal of section 1400L(g) 
of such Code, property which is compulsorily or invol-
untarily converted as a result of the terrorist attacks 
on September 11, 2001, 
(vii) in the case of the repeal of section 1400N(a) 
of such Code, obligations issued before January 1, 2012,
H. R. 1625—865 
(viii) in the case of the repeal of section 1400N(b) 
of such Code, advanced refundings before January 1, 
2011, 
(ix) in the case of the repeal of section 1400N(d) 
of such Code, property placed in service before January 
1, 2012, 
(x) in the case of the repeal of section 1400N(e) 
of such Code, property placed in service before January 
1, 2009, 
(xi) in the case of the repeal of subsections (f) 
and (g) of section 1400N of such Code, amounts paid 
or incurred before January 1, 2008, 
(xii) in the case of the repeal of section 1400N(h) 
of such Code, amounts paid or incurred before January 
1, 2012, 
(xiii) in the case of the repeal of section 
1400N(k)(1)(B) of such Code, losses arising in taxable 
years beginning before January 1, 2008, 
(xiv) in the case of the repeal of section 1400N(l) 
of such Code, bonds issued before January 1, 2007, 
(xv) in the case of the repeal of section 1400Q(a) 
of such Code, distributions before January 1, 2007, 
(xvi) in the case of the repeal of section 1400Q(b) 
of such Code, contributions before March 1, 2006, 
(xvii) in the case of the repeal of section 1400Q(c) 
of such Code, loans made before January 1, 2007, 
(xviii) in the case of the repeal of section 1400R 
of such Code, wages paid or incurred before January 
1, 2006, 
(xix) in the case of the repeal of section 1400S(a) 
of such Code, contributions paid before January 1, 
2006, 
(xx) in the case of the repeal of section 1400T 
of such Code, financing provided before January 1, 
2011, and 
(xxi) in the case of the repeal of part III of sub-
chapter Y of chapter 1 of such Code, obligations issued 
before January 1, 2011. 
(7) PROVISIONS RELATED TO COBRA PREMIUM ASSISTANCE.— 
(A) IN
GENERAL.—Subchapter B of chapter 65 is 
amended by striking section 6432 (and by striking the 
item relating to such section in the table of sections for 
such subchapter). 
(B) NOTIFICATION REQUIREMENT.—Part I of subchapter 
B of chapter 68 is amended by striking section 6720C 
(and by striking the item relating to such section in the 
table of sections for such part). 
(C) EXCLUSION FROM GROSS INCOME.—Part III of sub-
chapter B of chapter 1 is amended by striking section 
139C (and by striking the item relating to such section 
in the table of sections for such part). 
(8) EFFECTIVE DATE OF PRESIDENTIAL ELECTION CAMPAIGN 
FUND.—Chapter 95 is amended by striking section 9013 (and 
by striking the item relating to such section in the table of 
sections for such chapter). 
(e) GENERAL SAVINGS PROVISION WITH RESPECT TO DEADWOOD 
PROVISIONS.—If—
H. R. 1625—866 
(1) any provision amended or repealed by the amendments 
made by subsection (b) or (d) applied to— 
(A) any transaction occurring before the date of the 
enactment of this Act, 
(B) any property acquired before such date of enact-
ment, or 
(C) any item of income, loss, deduction, or credit taken 
into account before such date of enactment, and 
(2) the treatment of such transaction, property, or item 
under such provision would (without regard to the amendments 
or repeals made by such subsection) affect the liability for 
tax for periods ending after such date of enactment, 
nothing in the amendments or repeals made by this section shall 
be construed to affect the treatment of such transaction, property, 
or item for purposes of determining liability for tax for periods 
ending after such date of enactment. 
DIVISION V—CLOUD ACT 
SEC. 101. SHORT TITLE. 
This division may be cited as the ‘‘Clarifying Lawful Overseas 
Use of Data Act’’ or the ‘‘CLOUD Act’’. 
SEC. 102. CONGRESSIONAL FINDINGS. 
Congress finds the following: 
(1) Timely access to electronic data held by communica-
tions-service providers is an essential component of government 
efforts to protect public safety and combat serious crime, 
including terrorism. 
(2) Such efforts by the United States Government are being 
impeded by the inability to access data stored outside the 
United States that is in the custody, control, or possession 
of communications-service providers that are subject to jurisdic-
tion of the United States. 
(3) Foreign governments also increasingly seek access to 
electronic data held by communications-service providers in 
the United States for the purpose of combating serious crime. 
(4) Communications-service providers face potential con-
flicting legal obligations when a foreign government orders 
production of electronic data that United States law may pro-
hibit providers from disclosing. 
(5) Foreign law may create similarly conflicting legal obliga-
tions when chapter 121 of title 18, United States Code (com-
monly known as the ‘‘ Stored Communications Act’’), requires 
disclosure of electronic data that foreign law prohibits commu-
nications-service providers from disclosing. 
(6) International agreements provide a mechanism for 
resolving these potential conflicting legal obligations where the 
United States and the relevant foreign government share a 
common commitment to the rule of law and the protection 
of privacy and civil liberties. 
SEC. 103. PRESERVATION OF RECORDS; COMITY ANALYSIS OF LEGAL 
PROCESS. 
(a) REQUIRED PRESERVATION AND DISCLOSURE OF COMMUNICA-
TIONS AND RECORDS.—
H. R. 1625—867 
(1) AMENDMENT.—Chapter 121 of title 18, United States 
Code, is amended by adding at the end the following: 
‘‘§ 2713. Required preservation and disclosure of communica-
tions and records 
‘‘A provider of electronic communication service or remote com-
puting service shall comply with the obligations of this chapter 
to preserve, backup, or disclose the contents of a wire or electronic 
communication and any record or other information pertaining to 
a customer or subscriber within such provider’s possession, custody, 
or control, regardless of whether such communication, record, or 
other information is located within or outside of the United States.’’. 
(2) TABLE OF SECTIONS.—The table of sections for chapter 
121 of title 18, United States Code, is amended by inserting 
after the item relating to section 2712 the following: 
‘‘2713. Required preservation and disclosure of communications and records.’’. 
(b) COMITY ANALYSIS OF LEGAL PROCESS SEEKING CONTENTS 
OF WIRE OR ELECTRONIC COMMUNICATION.—Section 2703 of title 
18, United States Code, is amended by adding at the end the 
following: 
‘‘(h) COMITY
ANALYSIS
AND
DISCLOSURE
OF
INFORMATION 
REGARDING LEGAL PROCESS SEEKING CONTENTS OF WIRE OR ELEC-
TRONIC COMMUNICATION.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘qualifying foreign government’ means 
a foreign government— 
‘‘(i) with which the United States has an executive 
agreement that has entered into force under section 
2523; and 
‘‘(ii) the laws of which provide to electronic commu-
nication service providers and remote computing 
service 
providers 
substantive 
and 
procedural 
opportunities similar to those provided under para-
graphs (2) and (5); and 
‘‘(B) the term ‘United States person’ has the meaning 
given the term in section 2523. 
‘‘(2) MOTIONS
TO
QUASH
OR
MODIFY.—(A) A provider of 
electronic communication service to the public or remote com-
puting service, including a foreign electronic communication 
service or remote computing service, that is being required 
to disclose pursuant to legal process issued under this section 
the contents of a wire or electronic communication of a sub-
scriber or customer, may file a motion to modify or quash 
the legal process where the provider reasonably believes— 
‘‘(i) that the customer or subscriber is not a United 
States person and does not reside in the United States; 
and 
‘‘(ii) that the required disclosure would create a mate-
rial risk that the provider would violate the laws of a 
qualifying foreign government. 
Such a motion shall be filed not later than 14 days after 
the date on which the provider was served with the legal 
process, absent agreement with the government or permis-
sion from the court to extend the deadline based on an 
application made within the 14 days. The right to move 
to quash is without prejudice to any other grounds to
H. R. 1625—868 
move to quash or defenses thereto, but it shall be the 
sole basis for moving to quash on the grounds of a conflict 
of law related to a qualifying foreign government. 
‘‘(B) Upon receipt of a motion filed pursuant to subpara-
graph (A), the court shall afford the governmental entity that 
applied for or issued the legal process under this section the 
opportunity to respond. The court may modify or quash the 
legal process, as appropriate, only if the court finds that— 
‘‘(i) the required disclosure would cause the provider 
to violate the laws of a qualifying foreign government; 
‘‘(ii) based on the totality of the circumstances, the 
interests of justice dictate that the legal process should 
be modified or quashed; and 
‘‘(iii) the customer or subscriber is not a United States 
person and does not reside in the United States. 
‘‘(3) COMITY ANALYSIS.—For purposes of making a deter-
mination under paragraph (2)(B)(ii), the court shall take into 
account, as appropriate— 
‘‘(A) the interests of the United States, including the 
investigative interests of the governmental entity seeking 
to require the disclosure; 
‘‘(B) the interests of the qualifying foreign government 
in preventing any prohibited disclosure; 
‘‘(C) the likelihood, extent, and nature of penalties 
to the provider or any employees of the provider as a 
result of inconsistent legal requirements imposed on the 
provider; 
‘‘(D) the location and nationality of the subscriber or 
customer whose communications are being sought, if 
known, and the nature and extent of the subscriber or 
customer’s connection to the United States, or if the legal 
process has been sought on behalf of a foreign authority 
pursuant to section 3512, the nature and extent of the 
subscriber 
or 
customer’s 
connection 
to 
the 
foreign 
authority’s country; 
‘‘(E) the nature and extent of the provider’s ties to 
and presence in the United States; 
‘‘(F) the importance to the investigation of the informa-
tion required to be disclosed; 
‘‘(G) the likelihood of timely and effective access to 
the information required to be disclosed through means 
that would cause less serious negative consequences; and 
‘‘(H) if the legal process has been sought on behalf 
of a foreign authority pursuant to section 3512, the inves-
tigative interests of the foreign authority making the 
request for assistance. 
‘‘(4) DISCLOSURE OBLIGATIONS DURING PENDENCY OF CHAL-
LENGE.—A service provider shall preserve, but not be obligated 
to produce, information sought during the pendency of a motion 
brought under this subsection, unless the court finds that imme-
diate production is necessary to prevent an adverse result 
identified in section 2705(a)(2). 
‘‘(5) DISCLOSURE TO QUALIFYING FOREIGN GOVERNMENT.— 
(A) It shall not constitute a violation of a protective order 
issued under section 2705 for a provider of electronic commu-
nication service to the public or remote computing service to 
disclose to the entity within a qualifying foreign government,
H. R. 1625—869 
designated in an executive agreement under section 2523, the 
fact of the existence of legal process issued under this section 
seeking the contents of a wire or electronic communication 
of a customer or subscriber who is a national or resident of 
the qualifying foreign government. 
‘‘(B) Nothing in this paragraph shall be construed to modify 
or otherwise affect any other authority to make a motion to 
modify or quash a protective order issued under section 2705.’’. 
(c) RULE OF CONSTRUCTION.—Nothing in this section, or an 
amendment made by this section, shall be construed to modify 
or otherwise affect the common law standards governing the avail-
ability or application of comity analysis to other types of compulsory 
process or to instances of compulsory process issued under section 
2703 of title 18, United States Code, as amended by this section, 
and not covered under subsection (h)(2) of such section 2703. 
SEC. 104. ADDITIONAL AMENDMENTS TO CURRENT COMMUNICATIONS 
LAWS. 
Title 18, United States Code, is amended— 
(1) in chapter 119— 
(A) in section 2511(2), by adding at the end the fol-
lowing: 
‘‘(j) It shall not be unlawful under this chapter for a provider 
of electronic communication service to the public or remote com-
puting service to intercept or disclose the contents of a wire or 
electronic communication in response to an order from a foreign 
government that is subject to an executive agreement that the 
Attorney General has determined and certified to Congress satisfies 
section 2523.’’; and 
(B) in section 2520(d), by amending paragraph (3) to 
read as follows: 
‘‘(3) a good faith determination that section 2511(3), 
2511(2)(i), or 2511(2)(j) of this title permitted the conduct com-
plained of;’’; 
(2) in chapter 121— 
(A) in section 2702— 
(i) in subsection (b)— 
(I) in paragraph (8), by striking the period 
at the end and inserting ‘‘; or’’; and 
(II) by adding at the end the following: 
‘‘(9) to a foreign government pursuant to an order from 
a foreign government that is subject to an executive agreement 
that the Attorney General has determined and certified to 
Congress satisfies section 2523.’’; and 
(ii) in subsection (c)— 
(I) in paragraph (5), by striking ‘‘or’’ at the 
end; 
(II) in paragraph (6), by striking the period 
at the end and inserting ‘‘; or’’; and 
(III) by adding at the end the following: 
‘‘(7) to a foreign government pursuant to an order from 
a foreign government that is subject to an executive agreement 
that the Attorney General has determined and certified to 
Congress satisfies section 2523.’’; and 
(B) in section 2707(e), by amending paragraph (3) to 
read as follows:
H. R. 1625—870 
‘‘(3) a good faith determination that section 2511(3), section 
2702(b)(9), or section 2702(c)(7) of this title permitted the con-
duct complained of;’’; and 
(3) in chapter 206— 
(A) in section 3121(a), by inserting before the period 
at the end the following: ‘‘or an order from a foreign govern-
ment that is subject to an executive agreement that the 
Attorney General has determined and certified to Congress 
satisfies section 2523’’; and 
(B) in section 3124— 
(i) by amending subsection (d) to read as follows: 
‘‘(d) NO CAUSE OF ACTION AGAINST A PROVIDER DISCLOSING 
INFORMATION UNDER THIS CHAPTER.—No cause of action shall lie 
in any court against any provider of a wire or electronic communica-
tion service, its officers, employees, agents, or other specified per-
sons for providing information, facilities, or assistance in accordance 
with a court order under this chapter, request pursuant to section 
3125 of this title, or an order from a foreign government that 
is subject to an executive agreement that the Attorney General 
has determined and certified to Congress satisfies section 2523.’’; 
and 
(ii) by amending subsection (e) to read as follows: 
‘‘(e) DEFENSE.—A good faith reliance on a court order under 
this chapter, a request pursuant to section 3125 of this title, a 
legislative authorization, a statutory authorization, or a good faith 
determination that the conduct complained of was permitted by 
an order from a foreign government that is subject to executive 
agreement that the Attorney General has determined and certified 
to Congress satisfies section 2523, is a complete defense against 
any civil or criminal action brought under this chapter or any 
other law.’’. 
SEC. 105. EXECUTIVE AGREEMENTS ON ACCESS TO DATA BY FOREIGN 
GOVERNMENTS. 
(a) IN GENERAL.—Chapter 119 of title 18, United States Code, 
is amended by adding at the end the following: 
‘‘§ 2523. Executive agreements on access to data by foreign 
governments 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘lawfully admitted for permanent residence’ 
has the meaning given the term in section 101(a) of the 
Immigration and Nationality Act (8 U.S.C. 1101(a)); and 
‘‘(2) the term ‘United States person’ means a citizen or 
national of the United States, an alien lawfully admitted for 
permanent residence, an unincorporated association a substan-
tial number of members of which are citizens of the United 
States or aliens lawfully admitted for permanent residence, 
or a corporation that is incorporated in the United States. 
‘‘(b) EXECUTIVE AGREEMENT REQUIREMENTS.—For purposes of 
this chapter, chapter 121, and chapter 206, an executive agreement 
governing access by a foreign government to data subject to this 
chapter, chapter 121, or chapter 206 shall be considered to satisfy 
the requirements of this section if the Attorney General, with 
the concurrence of the Secretary of State, determines, and submits 
a written certification of such determination to Congress, including
H. R. 1625—871 
a written certification and explanation of each consideration in 
paragraphs (1), (2), (3), and (4), that— 
‘‘(1) the domestic law of the foreign government, including 
the implementation of that law, affords robust substantive and 
procedural protections for privacy and civil liberties in light 
of the data collection and activities of the foreign government 
that will be subject to the agreement, if— 
‘‘(A) such a determination under this section takes 
into account, as appropriate, credible information and 
expert input; and 
‘‘(B) the factors to be met in making such a determina-
tion include whether the foreign government— 
‘‘(i) has adequate substantive and procedural laws 
on cybercrime and electronic evidence, as demonstrated 
by being a party to the Convention on Cybercrime, 
done at Budapest November 23, 2001, and entered 
into force January 7, 2004, or through domestic laws 
that are consistent with definitions and the require-
ments set forth in chapters I and II of that Convention; 
‘‘(ii) demonstrates respect for the rule of law and 
principles of nondiscrimination; 
‘‘(iii) adheres to applicable international human 
rights obligations and commitments or demonstrates 
respect for international universal human rights, 
including— 
‘‘(I) protection from arbitrary and unlawful 
interference with privacy; 
‘‘(II) fair trial rights; 
‘‘(III) freedom of expression, association, and 
peaceful assembly; 
‘‘(IV) prohibitions on arbitrary arrest and 
detention; and 
‘‘(V) prohibitions against torture and cruel, 
inhuman, or degrading treatment or punishment; 
‘‘(iv) has clear legal mandates and procedures gov-
erning those entities of the foreign government that 
are authorized to seek data under the executive agree-
ment, including procedures through which those 
authorities collect, retain, use, and share data, and 
effective oversight of these activities; 
‘‘(v) has sufficient mechanisms to provide account-
ability and appropriate transparency regarding the 
collection and use of electronic data by the foreign 
government; and 
‘‘(vi) demonstrates a commitment to promote and 
protect the global free flow of information and the 
open, distributed, and interconnected nature of the 
Internet; 
‘‘(2) the foreign government has adopted appropriate proce-
dures to minimize the acquisition, retention, and dissemination 
of information concerning United States persons subject to the 
agreement; 
‘‘(3) the terms of the agreement shall not create any obliga-
tion that providers be capable of decrypting data or limitation 
that prevents providers from decrypting data; and 
‘‘(4) the agreement requires that, with respect to any order 
that is subject to the agreement—
H. R. 1625—872 
‘‘(A) the foreign government may not intentionally tar-
get a United States person or a person located in the 
United States, and shall adopt targeting procedures 
designed to meet this requirement; 
‘‘(B) the foreign government may not target a non- 
United States person located outside the United States 
if the purpose is to obtain information concerning a United 
States person or a person located in the United States; 
‘‘(C) the foreign government may not issue an order 
at the request of or to obtain information to provide to 
the United States Government or a third-party government, 
nor shall the foreign government be required to share 
any information produced with the United States Govern-
ment or a third-party government; 
‘‘(D) an order issued by the foreign government— 
‘‘(i) shall be for the purpose of obtaining informa-
tion relating to the prevention, detection, investigation, 
or prosecution of serious crime, including terrorism; 
‘‘(ii) shall identify a specific person, account, 
address, or personal device, or any other specific identi-
fier as the object of the order; 
‘‘(iii) shall be in compliance with the domestic law 
of that country, and any obligation for a provider of 
an electronic communications service or a remote com-
puting service to produce data shall derive solely from 
that law; 
‘‘(iv) shall be based on requirements for a reason-
able justification based on articulable and credible 
facts, particularity, legality, and severity regarding the 
conduct under investigation; 
‘‘(v) shall be subject to review or oversight by a 
court, 
judge, 
magistrate, 
or 
other 
independent 
authority prior to, or in proceedings regarding, enforce-
ment of the order; and 
‘‘(vi) in the case of an order for the interception 
of wire or electronic communications, and any exten-
sions thereof, shall require that the interception 
order— 
‘‘(I) be for a fixed, limited duration; and 
‘‘(II) may not last longer than is reasonably 
necessary to accomplish the approved purposes of 
the order; and 
‘‘(III) be issued only if the same information 
could not reasonably be obtained by another less 
intrusive method; 
‘‘(E) an order issued by the foreign government may 
not be used to infringe freedom of speech; 
‘‘(F) the foreign government shall promptly review 
material collected pursuant to the agreement and store 
any unreviewed communications on a secure system acces-
sible only to those persons trained in applicable procedures; 
‘‘(G) the foreign government shall, using procedures 
that, to the maximum extent possible, meet the definition 
of minimization procedures in section 101 of the Foreign 
Intelligence Surveillance Act of 1978 (50 U.S.C. 1801), seg-
regate, seal, or delete, and not disseminate material found 
not to be information that is, or is necessary to understand
H. R. 1625—873 
or assess the importance of information that is, relevant 
to the prevention, detection, investigation, or prosecution 
of serious crime, including terrorism, or necessary to protect 
against a threat of death or serious bodily harm to any 
person; 
‘‘(H) the foreign government may not disseminate the 
content of a communication of a United States person to 
United States authorities unless the communication may 
be disseminated pursuant to subparagraph (G) and relates 
to significant harm, or the threat thereof, to the United 
States or United States persons, including crimes involving 
national security such as terrorism, significant violent 
crime, child exploitation, transnational organized crime, 
or significant financial fraud; 
‘‘(I) the foreign government shall afford reciprocal 
rights of data access, to include, where applicable, removing 
restrictions on communications service providers, including 
providers subject to United States jurisdiction, and thereby 
allow them to respond to valid legal process sought by 
a governmental entity (as defined in section 2711) if foreign 
law would otherwise prohibit communications-service pro-
viders from disclosing the data; 
‘‘(J) the foreign government shall agree to periodic 
review of compliance by the foreign government with the 
terms of the agreement to be conducted by the United 
States Government; and 
‘‘(K) the United States Government shall reserve the 
right to render the agreement inapplicable as to any order 
for which the United States Government concludes the 
agreement may not properly be invoked. 
‘‘(c) LIMITATION ON JUDICIAL REVIEW.—A determination or cer-
tification made by the Attorney General under subsection (b) shall 
not be subject to judicial or administrative review. 
‘‘(d) EFFECTIVE DATE OF CERTIFICATION.— 
‘‘(1) NOTICE.—Not later than 7 days after the date on 
which the Attorney General certifies an executive agreement 
under subsection (b), the Attorney General shall provide notice 
of the determination under subsection (b) and a copy of the 
executive agreement to Congress, including— 
‘‘(A) the Committee on the Judiciary and the Com-
mittee on Foreign Relations of the Senate; and 
‘‘(B) the Committee on the Judiciary and the Com-
mittee on Foreign Affairs of the House of Representatives. 
‘‘(2) ENTRY INTO FORCE.—An executive agreement that is 
determined and certified by the Attorney General to satisfy 
the requirements of this section shall enter into force not earlier 
than the date that is 180 days after the date on which notice 
is provided under paragraph (1), unless Congress enacts a 
joint resolution of disapproval in accordance with paragraph 
(4). 
‘‘(3) REQUESTS FOR INFORMATION.—Upon request by the 
Chairman or Ranking Member of a congressional committee 
described in paragraph (1), the head of an agency shall promptly 
furnish a summary of factors considered in determining that 
the foreign government satisfies the requirements of this sec-
tion. 
‘‘(4) CONGRESSIONAL REVIEW.—
H. R. 1625—874 
‘‘(A) JOINT RESOLUTION DEFINED.—In this paragraph, 
the term ‘joint resolution’ means only a joint resolution— 
‘‘(i) introduced during the 180-day period described 
in paragraph (2); 
‘‘(ii) which does not have a preamble; 
‘‘(iii) the title of which is as follows: ‘Joint resolu-
tion disapproving the executive agreement signed by 
the United States and ll.’, the blank space being 
appropriately filled in; and 
‘‘(iv) the matter after the resolving clause of which 
is as follows: ‘That Congress disapproves the executive 
agreement governing access by lll to certain elec-
tronic data as submitted by the Attorney General on 
lll’, the blank spaces being appropriately filled in. 
‘‘(B) JOINT
RESOLUTION
ENACTED.—Notwithstanding 
any other provision of this section, if not later than 180 
days after the date on which notice is provided to Congress 
under paragraph (1), there is enacted into law a joint 
resolution disapproving of an executive agreement under 
this section, the executive agreement shall not enter into 
force. 
‘‘(C) 
INTRODUCTION.—During 
the 
180-day 
period 
described in subparagraph (B), a joint resolution of dis-
approval may be introduced— 
‘‘(i) in the House of Representatives, by the 
majority leader or the minority leader; and 
‘‘(ii) in the Senate, by the majority leader (or the 
majority leader’s designee) or the minority leader (or 
the minority leader’s designee). 
‘‘(5) FLOOR
CONSIDERATION
IN
HOUSE
OF
REPRESENTA-
TIVES.—If a committee of the House of Representatives to which 
a joint resolution of disapproval has been referred has not 
reported the joint resolution within 120 days after the date 
of referral, that committee shall be discharged from further 
consideration of the joint resolution. 
‘‘(6) CONSIDERATION IN THE SENATE.— 
‘‘(A) COMMITTEE REFERRAL.—A joint resolution of dis-
approval introduced in the Senate shall be referred 
jointly— 
‘‘(i) to the Committee on the Judiciary; and 
‘‘(ii) to the Committee on Foreign Relations. 
‘‘(B) REPORTING AND DISCHARGE.—If a committee to 
which a joint resolution of disapproval was referred has 
not reported the joint resolution within 120 days after 
the date of referral of the joint resolution, that committee 
shall be discharged from further consideration of the joint 
resolution and the joint resolution shall be placed on the 
appropriate calendar. 
‘‘(C) PROCEEDING TO CONSIDERATION.—It is in order 
at any time after both the Committee on the Judiciary 
and the Committee on Foreign Relations report a joint 
resolution of disapproval to the Senate or have been dis-
charged from consideration of such a joint resolution (even 
though a previous motion to the same effect has been 
disagreed to) to move to proceed to the consideration of 
the joint resolution, and all points of order against the
H. R. 1625—875 
joint resolution (and against consideration of the joint reso-
lution) are waived. The motion is not debatable or subject 
to a motion to postpone. A motion to reconsider the vote 
by which the motion is agreed to or disagreed to shall 
not be in order. 
‘‘(D) CONSIDERATION IN THE SENATE.—In the Senate, 
consideration of the joint resolution, and on all debatable 
motions and appeals in connection therewith, shall be lim-
ited to not more than 10 hours, which shall be divided 
equally between those favoring and those opposing the 
joint resolution. A motion further to limit debate is in 
order and not debatable. An amendment to, or a motion 
to postpone, or a motion to proceed to the consideration 
of other business, or a motion to recommit the joint resolu-
tion is not in order. 
‘‘(E) CONSIDERATION OF VETO MESSAGES.—Debate in 
the Senate of any veto message with respect to a joint 
resolution of disapproval, including all debatable motions 
and appeals in connection with the joint resolution, shall 
be limited to 10 hours, to be equally divided between, 
and controlled by, the majority leader and the minority 
leader or their designees. 
‘‘(7) RULES RELATING TO SENATE AND HOUSE OF REPRESENT-
ATIVES.— 
‘‘(A) TREATMENT
OF
SENATE
JOINT
RESOLUTION
IN 
HOUSE.—In the House of Representatives, the following 
procedures shall apply to a joint resolution of disapproval 
received from the Senate (unless the House has already 
passed a joint resolution relating to the same proposed 
action): 
‘‘(i) The joint resolution shall be referred to the 
appropriate committees. 
‘‘(ii) If a committee to which a joint resolution 
has been referred has not reported the joint resolution 
within 7 days after the date of referral, that committee 
shall be discharged from further consideration of the 
joint resolution. 
‘‘(iii) Beginning on the third legislative day after 
each committee to which a joint resolution has been 
referred reports the joint resolution to the House or 
has been discharged from further consideration thereof, 
it shall be in order to move to proceed to consider 
the joint resolution in the House. All points of order 
against the motion are waived. Such a motion shall 
not be in order after the House has disposed of a 
motion to proceed on the joint resolution. The previous 
question shall be considered as ordered on the motion 
to its adoption without intervening motion. The motion 
shall not be debatable. A motion to reconsider the 
vote by which the motion is disposed of shall not be 
in order. 
‘‘(iv) The joint resolution shall be considered as 
read. All points of order against the joint resolution 
and against its consideration are waived. The previous 
question shall be considered as ordered on the joint 
resolution to final passage without intervening motion 
except 2 hours of debate equally divided and controlled
H. R. 1625—877 
‘‘(B) any substantive changes to the agreement or to 
the relevant laws or procedures of the foreign government 
since the original determination or, in the case of a second 
or subsequent renewal, since the last renewal; and 
‘‘(C) how the agreement has been implemented and 
what problems or controversies, if any, have arisen as 
a result of the agreement or its implementation. 
‘‘(3) NONRENEWAL.—If a determination is not renewed 
under paragraph (1), the agreement shall no longer be consid-
ered to satisfy the requirements of this section. 
‘‘(f) REVISIONS TO AGREEMENT.—A revision to an agreement 
under this section shall be treated as a new agreement for purposes 
of this section and shall be subject to the certification requirement 
under subsection (b), and to the procedures under subsection (d), 
except that for purposes of a revision to an agreement— 
‘‘(1) the applicable time period under paragraphs (2), 
(4)(A)(i), (4)(B), and (4)(C) of subsection (d) shall be 90 days 
after the date notice is provided under subsection (d)(1); and 
‘‘(2) the applicable time period under paragraphs (5) and 
(6)(B) of subsection (d) shall be 60 days after the date notice 
is provided under subsection (d)(1). 
‘‘(g) PUBLICATION.—Any determination or certification under 
subsection (b) regarding an executive agreement under this section, 
including any termination or renewal of such an agreement, shall 
be published in the Federal Register as soon as is reasonably 
practicable. 
‘‘(h) MINIMIZATION PROCEDURES.—A United States authority 
that receives the content of a communication described in subsection 
(b)(4)(H) from a foreign government in accordance with an executive 
agreement under this section shall use procedures that, to the 
maximum extent possible, meet the definition of minimization 
procedures in section 101 of the Foreign Intelligence Surveillance 
Act of 1978 (50 U.S.C. 1801) to appropriately protect nonpublicly 
available information concerning United States persons.’’. 
(b) TABLE OF SECTIONS AMENDMENT.—The table of sections 
for chapter 119 of title 18, United States Code, is amended by 
inserting after the item relating to section 2522 the following: 
‘‘2523. Executive agreements on access to data by foreign governments.’’. 
SEC. 106. RULE OF CONSTRUCTION. 
Nothing in this division, or the amendments made by this 
division, shall be construed to preclude any foreign authority from 
obtaining assistance in a criminal investigation or prosecution 
pursuant to section 3512 of title 18, United States Code, section
H. R. 1625—878 
1782 of title 28, United States Code, or as otherwise provided 
by law. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.