term)’’ and inserting ‘‘(at all times during the lease 
term)’’. 
(d) AMENDMENTS RELATED TO SECTION 888 OF THE 
ACT.— 
(1) Subparagraph (A) of section 1092(a)(2) is 
amended by striking ‘‘and’’ at the end of clause (ii), 
by redesignating clause (iii) as clause (iv), and by in-
serting after clause (ii) the following new clause: 
‘‘(iii) if the application of clause (ii) 
does not result in an increase in the basis 
of any offsetting position in the identified 
straddle, the basis of each of the offsetting 
positions in the identified straddle shall be 
increased in a manner which— 
‘‘(I) is reasonable, consistent with 
the purposes of this paragraph, and 
consistently applied by the taxpayer, 
and 
‘‘(II) results in an aggregate in-
crease in the basis of such offsetting po-
sitions which is equal to the loss de-
scribed in clause (ii), and’’. 
(2)(A) Subparagraph (B) of section 1092(a)(2) 
is amended by adding at the end the following flush 
sentence:
‘‘A straddle shall be treated as clearly identified 
for purposes of clause (i) only if such identifica-
tion includes an identification of the positions in 
the straddle which are offsetting with respect 
other positions in the straddle.’’. 
(B) Subparagraph (A) of section 1092(a)(2) is 
amended— 
(i) by striking ‘‘identified positions’’ in 
clause (i) and inserting ‘‘positions’’, 
(ii) by striking ‘‘identified position’’ in 
clause (ii) and inserting ‘‘position’’, and 
(iii) by striking ‘‘identified offsetting posi-
tions’’ in clause (ii) and inserting ‘‘offsetting po-
sitions’’. 
(C) Subparagraph (B) of section 1092(a)(3) is 
amended by striking ‘‘identified offsetting position’’ 
and inserting ‘‘offsetting position’’. 
(3) Paragraph (2) of section 1092(a) is amended 
by redesignating subparagraph (C) as subparagraph 
(D) and inserting after subparagraph (B) the fol-
lowing new subparagraph: 
‘‘(C) APPLICATION TO LIABILITIES AND OB-
LIGATIONS.—Except as otherwise provided by the 
Secretary, rules similar to the rules of clauses 
(ii) and (iii) of subparagraph (A) shall apply
for purposes of this paragraph with respect to 
any position which is, or has been, a liability or 
obligation.’’. 
(4) Subparagraph (D) of section 1092(a)(2), as 
redesignated by paragraph (3), is amended by insert-
ing ‘‘the rules for the application of this section to a 
position which is or has been a liability or obligation, 
methods of loss allocation which satisfy the require-
ments of subparagraph (A)(iii),’’ before ‘‘and the or-
dering rules’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall take effect as if included in the provisions 
of the American Jobs Creation Act of 2004 to which 
they relate. 
(2) IDENTIFICATION REQUIREMENT OF AMEND-
MENT RELATED TO SECTION 888 OF THE AMERICAN 
JOBS CREATION ACT OF 2004.—The amendment made 
by subsection (d)(2)(A) shall apply to straddles ac-
quired after the date of the enactment of this Act.
SEC. 408. AMENDMENTS RELATED TO THE ECONOMIC 
GROWTH AND TAX RELIEF RECONCILIATION 
ACT OF 2001. 
(a) AMENDMENTS RELATED TO SECTION 617 OF THE 
ACT.— 
(1) Subclause (II) of section 402(g)(7)(A)(ii) is 
amended by striking ‘‘for prior taxable years’’ and 
inserting ‘‘permitted for prior taxable years by reason 
of this paragraph’’. 
(2) Subparagraph (A) of section 3121(v)(1) is 
amended by inserting ‘‘or consisting of designated 
Roth contributions (as defined in section 402A(c))’’ 
before the comma at the end. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the provisions of 
the Economic Growth and Tax Relief Reconciliation Act 
of 2001 to which they relate. 
SEC. 409. AMENDMENTS RELATED TO THE TAX RELIEF EX-
TENSION ACT OF 1999. 
(a) AMENDMENT RELATED TO SECTION 507 OF THE 
ACT.—Clause (i) of section 45(e)(7)(A) is amended by strik-
ing ‘‘placed in service by the taxpayer’’ and inserting 
‘‘originally placed in service’’. 
(b) AMENDMENT RELATED TO SECTION 542 OF THE 
ACT.—Clause (ii) of section 856(d)(9)(D) is amended to 
read as follows:
‘‘(ii) LODGING
FACILITY.—The term 
‘lodging facility’ means a— 
‘‘(I) hotel, 
‘‘(II) motel, or 
‘‘(III) other establishment more 
than one-half of the dwelling units in 
which are used on a transient basis.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the provisions of 
the Tax Relief Extension Act of 1999 to which they relate. 
SEC. 410. AMENDMENT RELATED TO THE INTERNAL REV-
ENUE SERVICE RESTRUCTURING AND RE-
FORM ACT OF 1998. 
(a) AMENDMENT RELATED TO SECTION 3509 OF THE 
ACT.—Paragraph (3) of section 6110(i) is amended by in-
serting ‘‘and related background file documents’’ after 
‘‘Chief Counsel advice’’ in the matter preceding subpara-
graph (A). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in the provision of 
the Internal Revenue Service Restructuring and Reform Act 
of 1998 to which it relates. 
SEC. 411. CLERICAL CORRECTIONS. 
(a) IN GENERAL.—
(1) Paragraph (5) of section 21(e) is amended by 
striking ‘‘section 152(e)(3)(A)’’ in the flush matter 
after subparagraph (B) and inserting ‘‘section 
152(e)(4)(A)’’. 
(2) Paragraph (3) of section 25C(c) is amended 
by striking ‘‘section 3280’’ and inserting ‘‘part 3280’’. 
(3) Paragraph (2) of section 26(b) is amended by 
redesignating subparagraphs (S) and (T) as subpara-
graphs (U) and (V), respectively, and by inserting 
after subparagraph (R) the following new subpara-
graphs: 
‘‘(S) 
sections 
106(e)(3)(A)(ii), 
223(b)(8)(B)(i)(II), and 408(d)(9)(D)(i)(II) (re-
lating to certain failures to maintain high de-
ductible health plan coverage), 
‘‘(T) section 170(o)(3)(B) (relating to recap-
ture of certain deductions for fractional gifts),’’. 
(4) Subsection (a) of section 34 is amended— 
(A) in paragraph (1), by striking ‘‘with re-
spect to gasoline used during the taxable year on 
a farm for farming purposes’’, 
(B) in paragraph (2), by striking ‘‘with re-
spect to gasoline used during the taxable year 
(A) otherwise than as a fuel in a highway vehicle 
or (B) in vehicles while engaged in furnishing
certain public passenger land transportation 
service’’, and 
(C) in paragraph (3), by striking ‘‘with re-
spect to fuels used for nontaxable purposes or re-
sold during the taxable year’’. 
(5) Paragraph (2) of section 35(d) is amended— 
(A) by striking ‘‘paragraph (2) or (4) of’’, 
and 
(B) by striking ‘‘(within the meaning of sec-
tion 152(e)(1))’’ and inserting ‘‘(as defined in 
section 152(e)(4)(A))’’. 
(6) Subsection (b) of section 38 is amended— 
(A) by striking ‘‘and’’ each place it appears 
at the end of any paragraph, 
(B) by striking ‘‘plus’’ each place it appears 
at the end of any paragraph, and 
(C) by inserting ‘‘plus’’ at the end of para-
graph (30). 
(7) Paragraphs (2) and (3) of section 45L(c) are 
each amended by striking ‘‘section 3280’’ and insert-
ing ‘‘part 3280’’. 
(8) Subsection (c) of section 48 is amended by 
striking ‘‘subsection’’ in the text preceding paragraph 
(1) and inserting ‘‘section’’.
(9) Paragraphs (1)(B) and (2)(B) of section 
48(c) are each amended by striking ‘‘paragraph (1)’’ 
and inserting ‘‘subsection (a)’’. 
(10) Clause (ii) of section 48A(d)(4)(B) is 
amended by striking ‘‘subsection’’ both places it ap-
pears. 
(11) The last sentence of section 125(b)(2) is 
amended by striking ‘‘last sentence’’ and inserting 
‘‘second sentence’’. 
(12) Subclause (II) of section 167(g)(8)(C)(ii) is 
amended by striking ‘‘section 263A(j)(2)’’ and insert-
ing ‘‘section 263A(i)(2)’’. 
(13)(A) Clause (vii) of section 170(b)(1)(A) is 
amended by striking ‘‘subparagraph (E)’’ and insert-
ing ‘‘subparagraph (F)’’. 
(B) Clause (ii) of section 170(e)(1)(B) is amend-
ed by striking ‘‘subsection (b)(1)(E)’’ and inserting 
‘‘subsection (b)(1)(F)’’. 
(C) Clause (i) of section 1400S(a)(2)(A) is 
amended by striking ‘‘subparagraph (F)’’ and insert-
ing ‘‘subparagraph (G)’’. 
(D) Subparagraph (A) of section 4942(i)(1) is 
amended by striking ‘‘section 170(b)(1)(E)(ii)’’ and 
inserting ‘‘section 170(b)(1)(F)(ii)’’.
(14) Subclause (II) of section 170(e)(1)(B)(i) is 
amended by inserting ‘‘, but without regard to clause 
(ii) thereof’’ after ‘‘paragraph (7)(C)’’. 
(15)(A) Subparagraph (A) of section 170(o)(1) 
and subparagraph (A) of section 2522(e)(1) are each 
amended by striking ‘‘all interest in the property is’’ 
and inserting ‘‘all interests in the property are’’. 
(B) 
Section 
170(o)(3)(A)(i), 
and 
section 
2522(e)(2)(A)(i) 
(as 
redesignated 
by 
section 
403(d)(2)), are each amended— 
(i) by striking ‘‘interest’’ and inserting ‘‘in-
terests’’, and 
(ii) by striking ‘‘before’’ and inserting ‘‘on 
or before’’. 
(16)(A) Subparagraph (C) of section 852(b)(4) is 
amended to read as follows: 
‘‘(C) DETERMINATION
OF
HOLDING
PERI-
ODS.—For purposes of this paragraph, in deter-
mining the period for which the taxpayer has 
held any share of stock— 
‘‘(i) the rules of paragraphs (3) and 
(4) of section 246(c) shall apply, and 
‘‘(ii) there shall not be taken into ac-
count any day which is more than 6
months after the date on which such share 
becomes ex-dividend.’’. 
(B) Subparagraph (B) of section 857(b)(8) is 
amended to read as follows: 
‘‘(B) DETERMINATION
OF
HOLDING
PERI-
ODS.—For purposes of this paragraph, in deter-
mining the period for which the taxpayer has 
held any share of stock or beneficial interest— 
‘‘(i) the rules of paragraphs (3) and 
(4) of section 246(c) shall apply, and 
‘‘(ii) there shall not be taken into ac-
count any day which is more than 6 
months after the date on which such share 
or interest becomes ex-dividend.’’. 
(17) Paragraph (2) of section 856(l) is amended 
by striking the last sentence and inserting the fol-
lowing: ‘‘For purposes of subparagraph (B), securities 
described in subsection (m)(2)(A) shall not be taken 
into account.’’. 
(18) Subparagraph (F) of section 954(c)(1) is 
amended to read as follows: 
‘‘(F) INCOME
FROM
NOTIONAL
PRINCIPAL 
CONTRACTS.— 
‘‘(i) IN
GENERAL.—Net income from 
notional principal contracts.
‘‘(ii) COORDINATION WITH OTHER CAT-
EGORIES OF FOREIGN PERSONAL HOLDING 
COMPANY
INCOME.—Any item of income, 
gain, deduction, or loss from a notional 
principal contract entered into for purposes 
of hedging any item described in any pre-
ceding subparagraph shall not be taken into 
account for purposes of this subparagraph 
but shall be taken into account under such 
other subparagraph.’’. 
(19) Paragraph (1) of section 954(c) is amended 
by redesignating subparagraph (I) as subparagraph 
(H). 
(20) Paragraph (33) of section 1016(a), as redes-
ignated by section 407(a)(1)(C), is amended by strik-
ing ‘‘section 25C(e)’’ and inserting ‘‘section 25C(f)’’. 
(21) Paragraph (36) of section 1016(a), as redes-
ignated by section 407(a)(1)(C), is amended by strik-
ing 
‘‘section 
30C(f)’’ 
and 
inserting 
‘‘section 
30C(e)(1)’’. 
(22) Subparagraph (G) of section 1260(c)(2) is 
amended by adding ‘‘and’’ at the end. 
(23)(A) Section 1297 is amended by striking 
subsection (d) and by redesignating subsections (e) 
and (f) as subsections (d) and (e), respectively.
(B) Subparagraph (G) of section 1260(c)(2) is 
amended by striking ‘‘subsection (e)’’ and inserting 
‘‘subsection (d)’’. 
(C) Subparagraph (B) of section 1298(a)(2) is 
amended by striking ‘‘Section 1297(e)’’ and inserting 
‘‘Section 1297(d)’’. 
(24) Paragraph (1) of section 1362(f) is amend-
ed— 
(A) by striking ‘‘, section 1361(b)(3)(B)(ii), 
or section 1361(c)(1)(A)(ii)’’ and inserting ‘‘or 
section 1361(b)(3)(B)(ii)’’, and 
(B) by striking ‘‘, section 1361(b)(3)(C), or 
section 1361(c)(1)(D)(iii)’’ in subparagraph (B) 
and inserting ‘‘or section 1361(b)(3)(C)’’. 
(25) Paragraph (2) of section 1400O is amended 
by striking ‘‘under of’’ and inserting ‘‘under’’. 
(26) The table of sections for part II of sub-
chapter Y of chapter 1 is amended by adding at the 
end the following new item: 
‘‘Sec. 1400T. Special rules for mortgage revenue bonds.’’. 
(27) Subsection (b) of section 4082 is amended 
to read as follows: 
‘‘(b) NONTAXABLE USE.—For purposes of this section, 
the term ‘nontaxable use’ means—
100 
‘‘(1) any use which is exempt from the tax im-
posed by section 4041(a)(1) other than by reason of 
a prior imposition of tax, 
‘‘(2) any use in a train, and 
‘‘(3) 
any 
use 
described 
in 
section 
4041(a)(1)(C)(iii)(II). 
The term ‘nontaxable use’ does not include the use of ker-
osene in an aircraft and such term shall not include any 
use described in section 6421(e)(2)(C).’’. 
(28) Paragraph (4) of section 4101(a) (relating 
to registration in event of change of ownership) is re-
designated as paragraph (5). 
(29) Paragraph (6) of section 4965(c) is amend-
ed by striking ‘‘section 4457(e)(1)(A)’’ and inserting 
‘‘section 457(e)(1)(A)’’. 
(30) Subpart C of part II of subchapter A of 
chapter 51 is amended by redesignating section 5432 
(relating to recordkeeping by wholesale dealers) as sec-
tion 5121. 
(31) Paragraph (2) of section 5732(c), as redes-
ignated by section 11125(b)(20)(A) of the SAFETEA– 
LU, is amended by striking ‘‘this subpart’’ and in-
serting ‘‘this subchapter’’. 
(32) Subsection (b) of section 6046 is amended—
101 
(A) by striking ‘‘subsection (a)(1)’’ and in-
serting ‘‘subsection (a)(1)(A)’’, and 
(B) by striking ‘‘paragraph (2) or (3) of 
subsection (a)’’ and inserting ‘‘subparagraph (B) 
or (C) of subsection (a)(1)’’. 
(33)(A) Subparagraph (A) of section 6103(b)(5) 
is amended by striking ‘‘the Canal Zone,’’. 
(B) Section 7651 is amended by striking para-
graph (4) and by redesignating paragraph (5) as 
paragraph (4). 
(34) Subparagraph (A) of section 6211(b)(4) is 
amended by striking ‘‘and 34’’ and inserting ‘‘34, 
and 35’’. 
(35) Subparagraphs (A) and (B) of section 
6230(a)(3) are each amended by striking ‘‘section 
6013(e)’’ and inserting ‘‘section 6015’’. 
(36) Paragraph (3) of section 6427(e) (relating 
to termination), as added by section 11113 of the 
SAFETEA–LU, is redesignated as paragraph (5) and 
moved after paragraph (4). 
(37) Clause (ii) of section 6427(l)(4)(A) is 
amended by striking ‘‘section 4081(a)(2)(iii)’’ and in-
serting ‘‘section 4081(a)(2)(A)(iii)’’. 
(38)(A) Section 6427, as amended by section 
1343(b)(1) of the Energy Policy Act of 2005, is
102 
amended by striking subsection (p) (relating to gas-
ohol used in noncommercial aviation) and redesig-
nating subsection (q) as subsection (p). 
(B) The Internal Revenue Code of 1986 shall be 
applied and administered as if the amendments made 
by paragraph (2) of section 11151(a) of the 
SAFETEA–LU had never been enacted. 
(39) Subsection (a) of section 6695A is amended 
by striking ‘‘then such person’’ in paragraph (2) and 
inserting the following: 
‘‘then such person’’. 
(40) Subparagraph (C) of section 6707A(e)(2) is 
amended by striking ‘‘section 6662A(e)(2)(C)’’ and 
inserting ‘‘section 6662A(e)(2)(B)’’. 
(41)(A) Paragraph (3) of section 9002 is amend-
ed by striking ‘‘section 309(a)(1)’’ and inserting ‘‘sec-
tion 306(a)(1)’’. 
(B) Paragraph (1) of section 9004(a) is amended 
by striking ‘‘section 320(b)(1)(B)’’ and inserting ‘‘sec-
tion 315(b)(1)(B)’’. 
(C) Paragraph (3) of section 9032 is amended by 
striking ‘‘section 309(a)(1)’’ and inserting ‘‘section 
306(a)(1)’’.
103 
(D) Subsection (b) of section 9034 is amended by 
striking ‘‘section 320(b)(1)(A)’’ and inserting ‘‘section 
315(b)(1)(A)’’. 
(42) Section 9006 is amended by striking 
‘‘Comptroller General’’ each place it appears and in-
serting ‘‘Commission’’. 
(43) Subsection (c) of section 9503 is amended 
by redesignating paragraph (7) (relating to transfers 
from the trust fund for certain aviation fuels taxes) 
as paragraph (6). 
(44) Paragraph (1) of section 1301(g) of the En-
ergy Policy Act of 2005 is amended by striking ‘‘shall 
take effect of the date of the enactment’’ and inserting 
‘‘shall take effect on the date of the enactment’’. 
(45) The Internal Revenue Code of 1986 shall be 
applied and administered as if the amendments made 
by section 1(a) of Public Law 109–433 had never 
been enacted. 
(b) CLERICAL AMENDMENTS RELATED TO THE TAX 
RELIEF AND HEALTH CARE ACT OF 2006.— 
(1) AMENDMENT RELATED TO SECTION 209 OF 
DIVISION A OF THE ACT.—Paragraph (3) of section 
168(l) is amended by striking ‘‘enzymatic’’. 
(2) AMENDMENTS RELATED TO SECTION 419 OF 
DIVISION A OF THE ACT.—