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(f) AMENDMENTS RELATED TO SECTION 245 OF THE
ACT.—
(1) Subsection (b) of section 45G is amended to
read as follows:
‘‘(b) LIMITATION.—
‘‘(1) IN
GENERAL.—The credit allowed under
subsection (a) for any taxable year shall not exceed
the product of—
‘‘(A) $3,500, multiplied by
‘‘(B) the sum of—
‘‘(i) the number of miles of railroad
track owned or leased by the eligible tax-
payer as of the close of the taxable year, and
‘‘(ii) the number of miles of railroad
track assigned for purposes of this sub-
section to the eligible taxpayer by a Class II
or Class III railroad which owns or leases
such railroad track as of the close of the tax-
able year.
‘‘(2) ASSIGNMENTS.—With respect to any assign-
ment of a mile of railroad track under paragraph
(1)(B)(ii)—
‘‘(A) such assignment may be made only
once per taxable year of the Class II or Class III
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railroad and shall be treated as made as of the
close of such taxable year,
‘‘(B) such mile may not be taken into ac-
count under this section by such railroad for
such taxable year, and
‘‘(C) such assignment shall be taken into ac-
count for the taxable year of the assignee which
includes the date that such assignment is treated
as effective.’’.
(2) Paragraph (2) of section 45G(c) is amended
to read as follows:
‘‘(2) any person who transports property using
the rail facilities of a Class II or Class III railroad
or who furnishes railroad-related property or services
to a Class II or Class III railroad, but only with re-
spect to miles of railroad track assigned to such per-
son by such Class II or Class III railroad for pur-
poses of subsection (b).’’.
(g) AMENDMENTS RELATED TO SECTION 248 OF THE
ACT.—
(1)(A) Subsection (d) of section 1353 is amended
by striking ‘‘ownership and charter interests’’ and in-
serting ‘‘ownership, charter, and operating agreement
interests’’.
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(B) Subsection (a) of section 1355 is amended by
striking paragraph (8).
(C) Paragraph (1) of section 1355(b) is amended
to read as follows:
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a person is treated as operating any vessel
during any period if—
‘‘(A)(i) such vessel is owned by, or chartered
(including a time charter) to, the person, or
‘‘(ii) the person provides services for such
vessel pursuant to an operating agreement, and
‘‘(B) such vessel is in use as a qualifying
vessel during such period.’’.
(D) Paragraph (3) of section 1355(d) is amended
to read as follows:
‘‘(3) the extent of a partner’s ownership, charter,
or operating agreement interest in any vessel operated
by the partnership shall be determined on the basis of
the partner’s interest in the partnership.’’.
(2) Paragraph (3) of section 1355(c) is amended
by striking ‘‘determined—’’ and all that follows and
inserting ‘‘determined by treating all members of such
group as 1 person.’’
(3) Subsection (c) of section 1356 is amended—
(A) by striking paragraph (3), and
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(B) by adding at the end of paragraph (2)
the following new flush sentence:
‘‘Such term shall not include any core qualifying ac-
tivities.’’.
(4) The last sentence of section 1354(b) is
amended by inserting ‘‘on or’’ after ‘‘only if made’’.
(h) AMENDMENT RELATED TO SECTION 314 OF THE
ACT.—Paragraph (2) of section 55(c) is amended by strik-
ing ‘‘regular tax’’ and inserting ‘‘regular tax liability’’.
(i) AMENDMENTS RELATED TO SECTION 322 OF THE
ACT.—
(1)(A) Subparagraph (B) of section 194(b)(1) is
amended to read as follows:
‘‘(B) DOLLAR LIMITATION.—The aggregate
amount of reforestation expenditures which may
be taken into account under subparagraph (A)
with respect to each qualified timber property for
any taxable year shall not exceed—
‘‘(i) except as provided in clause (ii) or
(iii), $10,000,
‘‘(ii) in the case of a separate return
by a married individual (as defined in sec-
tion 7703), $5,000, and
‘‘(iii) in the case of a trust, zero.’’.
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(B) Paragraph (4) of section 194(c) is amended
to read as follows:
‘‘(4) TREATMENT OF TRUSTS AND ESTATES.—
The aggregate amount of reforestation expenditures
incurred by any trust or estate shall be apportioned
between the income beneficiaries and the fiduciary
under regulations prescribed by the Secretary. Any
amount so apportioned to a beneficiary shall be taken
into account as expenditures incurred by such bene-
ficiary in applying this section to such beneficiary.’’.
(2) Subparagraph (C) of section 1245(a)(2) is
amended by striking ‘‘or 193’’ and inserting ‘‘193, or
194’’.
(j) AMENDMENTS RELATED TO SECTION 336 OF THE
ACT.—
(1) Clause (iv) of section 168(k)(2)(A) is amend-
ed by striking ‘‘subparagraphs (B) and (C)’’ and in-
serting ‘‘subparagraph (B) or (C)’’.
(2) Clause (iii) of section 168(k)(4)(B) is amend-
ed by striking ‘‘and paragraph (2)(C)’’ and inserting
‘‘or paragraph (2)(C) (as so modified)’’.
(k) AMENDMENT RELATED TO SECTION 402 OF THE
ACT.—Paragraph (2) of section 904(g) is amended to read
as follows:
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‘‘(2) OVERALL DOMESTIC LOSS.—For purposes of
this subsection—
‘‘(A) IN GENERAL.—The term ‘overall do-
mestic loss’ means—
‘‘(i) with respect to any qualified tax-
able year, the domestic loss for such taxable
year to the extent such loss offsets taxable
income from sources without the United
States for the taxable year or for any pre-
ceding qualified taxable year by reason of a
carryback, and
‘‘(ii) with respect to any other taxable
year, the domestic loss for such taxable year
to the extent such loss offsets taxable income
from sources without the United States for
any preceding qualified taxable year by rea-
son of a carryback.
‘‘(B) DOMESTIC
LOSS.—For purposes of
subparagraph (A), the term ‘domestic loss’ means
the amount by which the gross income for the
taxable year from sources within the United
States is exceeded by the sum of the deductions
properly apportioned or allocated thereto (deter-
mined without regard to any carryback from a
subsequent taxable year).
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‘‘(C) QUALIFIED TAXABLE YEAR.—For pur-
poses of subparagraph (A), the term ‘qualified
taxable year’ means any taxable year for which
the taxpayer chose the benefits of this subpart.’’.
(l) AMENDMENT RELATED TO SECTION 403 OF THE
ACT.—Section 403 of the American Jobs Creation Act of
2004 is amended by adding at the end the following new
subsection:
‘‘(d) TRANSITION RULE.—If the taxpayer elects (at
such time and in such form and manner as the Secretary
of the Treasury may prescribe) to have the rules of this sub-
section apply—
‘‘(1) the amendments made by this section shall
not apply to taxable years beginning after December
31, 2002, and before January 1, 2005, and
‘‘(2) in the case of taxable years beginning after
December 31, 2004, clause (iv) of section 904(d)(4)(C)
of the Internal Revenue Code of 1986 (as amended by
this section) shall be applied by substituting ‘January
1, 2005’ for ‘January 1, 2003’ both places it ap-
pears.’’.
(m) AMENDMENT RELATED TO SECTION 412 OF THE
ACT.—Subparagraph (B) of section 954(c)(4) is amended
by adding at the end the following: ‘‘If a controlled foreign
corporation is treated as owning a capital or profits inter-
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est in a partnership under constructive ownership rules
similar to the rules of section 958(b), the controlled foreign
corporation shall be treated as owning such interest directly
for purposes of this subparagraph.’’.
(n) AMENDMENTS RELATED TO SECTION 413 OF THE
ACT.—
(1) Subsection (b) of section 532 is amended by
striking paragraph (2) and redesignating paragraphs
(3) and (4) as paragraphs (2) and (3), respectively.
(2) Subsection (b) of section 535 is amended by
adding at the end the following new paragraph:
‘‘(10) CONTROLLED FOREIGN CORPORATIONS.—
There shall be allowed as a deduction the amount of
the corporation’s income for the taxable year which is
included in the gross income of a United States share-
holder under section 951(a). In the case of any cor-
poration the accumulated taxable income of which
would (but for this sentence) be determined without
allowance of any deductions, the deduction under this
paragraph shall be allowed and shall be appropriately
adjusted to take into account any deductions which
reduced such inclusion.’’.
(3)(A) Section 6683 is repealed.
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(B) The table of sections for part I of subchapter
B of chapter 68 is amended by striking the item relat-
ing to section 6683.
(o) AMENDMENT RELATED TO SECTION 415 OF THE
ACT.—Subparagraph (D) of section 904(d)(2) is amended
by inserting ‘‘as in effect before its repeal’’ after ‘‘section
954(f)’’.
(p) AMENDMENTS RELATED TO SECTION 418 OF THE
ACT.—
(1) The second sentence of section 897(h)(1) is
amended—
(A) by striking ‘‘any distribution’’ and all
that follows through ‘‘any class of stock’’ and in-
serting ‘‘any distribution by a real estate invest-
ment trust with respect to any class of stock’’,
and
(B) by striking ‘‘the taxable year’’ and in-
serting ‘‘the 1-year period ending on the date of
the distribution’’.
(2) Subsection (c) of section 418 of the American
Jobs Creation Act of 2004 is amended to read as fol-
lows:
‘‘(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to—
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‘‘(1) any distribution by a real estate investment
trust which is treated as a deduction for a taxable
year of such trust beginning after the date of the en-
actment of this Act, and
‘‘(2) any distribution by a real estate investment
trust made after such date which is treated as a de-
duction under section 860 for a taxable year of such
trust beginning on or before such date.’’.
(q) AMENDMENTS RELATED TO SECTION 422 OF THE
ACT.—
(1) Subparagraph (B) of section 965(a)(2) is
amended by inserting ‘‘from another controlled for-
eign corporation in such chain of ownership’’ before
‘‘, but only to the extent’’.
(2) Subparagraph (A) of section 965(b)(2) is
amended by inserting ‘‘cash’’ before ‘‘dividends’’.
(3) Paragraph (3) of section 965(b) is amended
by adding at the end the following: ‘‘The Secretary
may prescribe such regulations as may be necessary
or appropriate to prevent the avoidance of the pur-
poses of this paragraph, including regulations which
provide that cash dividends shall not be taken into
account under subsection (a) to the extent such divi-
dends are attributable to the direct or indirect trans-
fer (including through the use of intervening entities