I 
108TH CONGRESS 
1ST SESSION H. R. 3654
To amend the Internal Revenue Code of 1986 to make technical corrections, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 8, 2003
Mr. THOMAS (for himself and Mr. RANGEL) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to make 
technical corrections, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Tax Technical Corrections Act of 2003’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; etc. 
Sec. 2. Amendments related to Jobs and Growth Tax Relief Reconciliation Act 
of 2003. 
Sec. 3. Amendments related to Job Creation and Worker Assistance Act of 
2002. 
Sec. 4. Amendments related to Economic Growth and Tax Relief Reconciliation 
Act of 2001. 
Sec. 5. Amendment related to Victims of Terrorism Tax Relief Act of 2001. 
Sec. 6. Amendments related to Community Renewal Tax Relief Act of 2000. 
Sec. 7. Amendments related to Taxpayer Relief Act of 1997. 
Sec. 8. Amendment related to Small Business Job Protection Act of 1996. 
Sec. 9. Clerical amendments.
SEC. 2. AMENDMENTS RELATED TO JOBS AND GROWTH 
TAX RELIEF RECONCILIATION ACT OF 2003. 
(a) AMENDMENTS RELATED TO SECTION 302 OF 
THE ACT.—
(1) Clause (i) of section 1(h)(1)(D) is amended 
by inserting ‘‘(determined without regard to para-
graph (11))’’ after ‘‘net capital gain’’. 
(2) Subclause (I) of section 1(h)(11)(B)(iii) is 
amended—
(A) by striking ‘‘section 246(c)(1)’’ and in-
serting ‘‘section 246(c)’’, 
(B) by striking ‘‘120-day period’’ and in-
serting ‘‘121-day period’’, and 
(C) by striking ‘‘90-day period’’ and insert-
ing ‘‘91-day period’’.
(3) Clause (ii) of section 1(h)(11)(D) is amend-
ed by striking ‘‘an individual’’ and inserting ‘‘a tax-
payer to whom this section applies’’. 
(4)(A) Subparagraph (B) of section 854(b)(1) 
is amended—
(i) by striking clauses (iii) and (iv), and 
(ii) by amending clause (i) to read as fol-
lows: 
‘‘(i) IN
GENERAL.—In any case in 
which—
‘‘(I) a dividend is received from a 
regulated investment company (other 
than a dividend to which subsection 
(a) applies), 
‘‘(II) such investment company 
meets the requirements of section 
852(a) for the taxable year during 
which it paid such dividend, and 
‘‘(III) the qualified dividend in-
come of such investment company for 
such taxable year is less than 95 per-
cent of its gross income, 
then, in computing qualified dividend in-
come, there shall be taken into account 
only that portion of such dividend des-
ignated by the regulated investment com-
pany.’’. 
(B) Subparagraph (C) of section 854(b)(1) is 
amended to read as follows: 
‘‘(C) LIMITATIONS.—
‘‘(i) SUBPARAGRAPH (A).—The aggre-
gate amount which may be designated as 
dividends under subparagraph (A) shall 
not exceed the aggregate dividends received 
by the company for the taxable year. 
‘‘(ii) SUBPARAGRAPH (B).—The aggre-
gate amount which may be designated as 
qualified dividend income under subpara-
graph (B) shall not exceed the sum of—
‘‘(I) the qualified dividend in-
come of the company for the taxable 
year, and 
‘‘(II) the amount of any earnings 
and profits which were distributed by 
the company for such taxable year in 
order to comply with the requirements 
of section 852(a)(2)(B) and accumu-
lated in a taxable year with respect to 
which this part did not apply.’’.
(C) Paragraph (2) of section 854(b) is amended 
by striking ‘‘as a dividend for purposes of the max-
imum rate under section 1(h)(11) and’’ and insert-
ing ‘‘as qualified dividend income for purposes of 
section 1(h)(11) and as dividends for purposes of’’. 
(D) Paragraph (5) of section 854(b) is amend-
ed to read as follows: 
‘‘(5) QUALIFIED DIVIDEND INCOME.—For pur-
poses of this subsection, the term ‘qualified dividend 
income’ has the meaning given such term by section 
1(h)(11)(B).’’. 
(E) Paragraph (2) of section 857(c) is amended 
to read as follows: 
‘‘(2) SECTION (1)(h)(11).—
‘‘(A) IN
GENERAL.—In any case in 
which—
‘‘(i) a dividend is received from a real 
estate investment trust (other than a cap-
ital gain dividend), and 
‘‘(ii) such trust meets the require-
ments of section 856(a) for the taxable 
year during which it paid such dividend,
then, in computing qualified dividend income, 
there shall be taken into account only that por-
tion of such dividend designated by the real es-
tate investment trust. 
‘‘(B) LIMITATION.—The aggregate amount 
which may be designated as qualified dividend 
income under subparagraph (A) shall not ex-
ceed the sum of—
‘‘(i) the qualified dividend income of 
the trust for the taxable year, 
‘‘(ii) the excess of—
‘‘(I) the sum of the real estate 
investment trust taxable income com-
puted under section 857(b)(2) for the 
preceding taxable year and the income 
subject to tax by reason of the appli-
cation of the regulations under section 
337(d) for such preceding taxable 
year, over 
‘‘(II) the sum of the taxes im-
posed on the trust for such preceding 
taxable year under section 857(b)(1) 
and by reason of the application of 
such regulations, and 
‘‘(iii) the amount of any earnings and 
profits which were—
‘‘(I) distributed by the trust for 
such taxable year in order to comply 
with the requirements of section 
857(a)(2)(B), and 
‘‘(II) accumulated in a taxable 
year with respect to which this part 
did not apply. 
‘‘(C) NOTICE
TO
SHAREHOLDERS.—The 
amount of any distribution by a real estate in-
vestment trust which may be taken into account 
as qualified dividend income shall not exceed 
the amount so designated by the trust in a writ-
ten notice to its shareholders mailed not later 
than 60 days after the close of its taxable year. 
‘‘(D) QUALIFIED DIVIDEND INCOME.—For 
purposes of this paragraph, the term ‘qualified 
dividend income’ has the meaning given such 
term by section 1(h)(11)(B).’’. 
(F) With respect to any taxable year of a regu-
lated investment company or real estate investment 
trust ending on or before November 30, 2003, the 
period for providing notice of the qualified dividend 
amount to shareholders under sections 854(b)(2) 
and 857(c)(2)(C) of the Internal Revenue Code of 
1986, as amended by this section, shall not expire
before the date on which the statement under sec-
tion 6042(c) of such Code is required to be fur-
nished with respect to the last calendar year begin-
ning in such taxable year. 
(5) Paragraph (2) of section 302(f) of the Jobs 
and Growth Tax Relief Reconciliation Act of 2003 is 
amended to read as follows: 
‘‘(2) PASS-THRU ENTITIES.—In the case of a 
pass-thru entity described in subparagraph (A), (B), 
(C), (D), (E), or (F) of section 1(h)(10) of the In-
ternal Revenue Code of 1986, as amended by this 
Act, the amendments made by this section shall 
apply to taxable years ending after December 31, 
2002; except that dividends received by such an enti-
ty on or before such date shall not be treated as 
qualified dividend income (as defined in section 
1(h)(11)(B) of such Code, as added by this Act).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in section 
302 of the Jobs and Growth Tax Relief Reconciliation Act 
of 2003. 
SEC. 3. AMENDMENTS RELATED TO JOB CREATION AND 
WORKER ASSISTANCE ACT OF 2002.
(a) AMENDMENTS RELATED TO SECTION 101 OF 
THE ACT.—
(1) Subparagraph (D) of section 168(k)(2) is 
amended by adding at the end the following new 
clauses: 
‘‘(iii) SYNDICATION.—For purposes of 
subparagraph (A)(ii), if—
‘‘(I) property is originally placed 
in service after September 10, 2001, 
by the lessor of such property, 
‘‘(II) such property is sold by 
such lessor or any subsequent pur-
chaser within 3 months after the date 
such property was originally placed in 
service, and
‘‘(III) the user of such property 
after the last sale during such 3-
month period remains the same as 
when such property was originally 
placed in service, 
such property shall be treated as originally 
placed in service not earlier than the date 
of such last sale. 
‘‘(iv) 
LIMITATIONS
RELATED
TO 
USERS AND RELATED PARTIES.—The term 
‘qualified property’ shall not include any 
property if—
‘‘(I) the user of such property (as 
of the date on which such property is 
originally placed in service) or a per-
son which is related (within the mean-
ing of section 267(b) or 707(b)) to 
such user or to the taxpayer had a 
written binding contract in effect for 
the acquisition of such property at 
any time before September 11, 2001, 
or 
‘‘(II) in the case of property 
manufactured, constructed, or pro-
duced for such user’s or person’s own 
use, the manufacture, construction, or 
production of such property began at 
any 
time 
before 
September 
11, 
2001.’’. 
(2) Clause (ii) of section 168(k)(2)(D) is 
amended by inserting ‘‘clause (iii) and’’ before ‘‘sub-
paragraph (A)(ii)’’.
(b) AMENDMENTS RELATED TO SECTION 102 OF 
THE ACT.—
(1) Subparagraph (H) of section 172(b)(1) is 
amended by striking ‘‘a taxpayer which has’’.
(2) In the case of a net operating loss for a tax-
able year ending during 2001 or 2002—
(A) an application under section 6411(a) 
of the Internal Revenue Code of 1986 with re-
spect to such loss shall not fail to be treated as 
timely filed if filed before November 1, 2002, 
(B) any election made under section 
172(b)(3) of such Code may (notwithstanding 
such section) be revoked before November 1, 
2002, and 
(C) any election made under section 172(j) 
of such Code shall (notwithstanding such sec-
tion) be treated as timely made if made before 
November 1, 2002. 
(3) Section 102(c)(2) of the Job Creation and 
Worker Assistance Act of 2002 (Public Law 107–
147) is amended by striking ‘‘before January 1, 
2003’’ and inserting ‘‘after December 31, 1990’’. 
(4)(A) Subclause (I) of section 56(d)(1)(A)(i) is 
amended by striking ‘‘attributable to carryovers’’. 
(B) Subclause (I) of section 56(d)(1)(A)(ii) is 
amended—
(i) by striking ‘‘for taxable years’’ and in-
serting ‘‘from taxable years’’, and
(ii) by striking ‘‘carryforwards’’ and insert-
ing ‘‘carryovers’’. 
(c) AMENDMENTS RELATED TO SECTION 301 OF 
THE ACT.—
(1) Subparagraph (D) of section 1400L(a)(2) is 
amended—
(A) by striking ‘‘subchapter B’’ and insert-
ing ‘‘subchapter A’’, and 
(B) in clause (ii), by striking ‘‘subpara-
graph (B)’’ and inserting ‘‘this paragraph’’. 
(2) Subparagraph (D) of section 1400L(b)(2) is 
amended by inserting ‘‘, and clause (iv) thereof shall 
be applied by substituting ‘qualified New York Lib-
erty Zone property’ for ‘qualified property’ ’’ before 
the period at the end. 
(3) Subsection (c) of section 1400L is amended 
by adding at the end the following new paragraph: 
‘‘(5) ELECTION
OUT.—For purposes of this 
subsection, rules similar to the rules of section 
168(k)(2)(C)(iii) shall apply.’’. 
(4) Paragraph (2) of section 1400L(f) is 
amended by inserting before the period ‘‘, deter-
mined without regard to subparagraph (C)(i) there-
of’’.
(d) AMENDMENT RELATED TO SECTION 405 OF THE 
ACT.—The last sentence of section 4006(a)(3)(E)(iii)(IV) 
of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1306(a)(3)(E)(iii)(IV)) is amended—
(1) by inserting ‘‘or this subparagraph’’ after 
‘‘this clause’’ both places it appears, and 
(2) by inserting ‘‘(other than sections 4005, 
4010, 4011, and 4043)’’ after ‘‘subsections’’. 
(e) AMENDMENT RELATED TO SECTION 411 OF THE 
ACT.—Subparagraph (B) of section 411(c)(2) of the Job 
Creation and Worker Assistance Act of 2002 is amended 
by striking ‘‘Paragraph (2)’’ and inserting ‘‘Paragraph 
(1)’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Job Creation and Worker Assistance Act of 2002 
to which they relate. 
SEC. 4. AMENDMENTS RELATED TO ECONOMIC GROWTH 
AND TAX RELIEF RECONCILIATION ACT OF 
2001. 
(a) AMENDMENT RELATED TO SECTION 401 OF THE 
ACT.—Clause (i) of section 530(d)(2)(C) is amended by 
striking ‘‘higher’’ after ‘‘qualified’’. 
(b) AMENDMENTS RELATED TO SECTION 611 OF 
THE ACT.—
(1) Paragraph (3) of section 45A(c) is amended 
by inserting ‘‘, except that the base period taken 
into account for purposes of such adjustment shall 
be the calendar quarter beginning October 1, 1993’’ 
before the period at the end. 
(2) Subparagraph (A) of section 415(d)(4) is 
amended by adding at the end the following new 
sentence: ‘‘This subparagraph shall also apply for 
purposes of any provision of this title that provides 
for adjustments in accordance with the method con-
tained in this subsection, except to the extent pro-
vided in such provision.’’. 
(c) AMENDMENT RELATED TO SECTION 614 OF THE 
ACT.—Clause (ii) of section 4972(c)(6)(A) is amended to 
read as follows: 
‘‘(ii) the amount of contributions de-
scribed in section 401(m)(4)(A), or’’. 
(d) AMENDMENT RELATED TO SECTION 637 OF THE 
ACT.—Section 408(p)(6)(A)(i) is amended by adding at 
the end the following new sentence: ‘‘For purposes of the 
preceding 
sentence, 
amounts 
described 
in 
section 
6051(a)(3) shall be determined without regard to section 
3401(a)(3).’’.
(e) AMENDMENT RELATED TO SECTION 641 OF THE 
ACT.—Subparagraph (B) of section 403(a)(4) is amended 
to read as follows: 
‘‘(B) CERTAIN
RULES
MADE
APPLICA-
BLE.—The rules of paragraphs (2) through (7) 
and (9) of section 402(c) and section 402(f) 
shall apply for purposes of subparagraph (A).’’. 
(f) 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. 5. AMENDMENT RELATED TO VICTIMS OF TERRORISM 
TAX RELIEF ACT OF 2001. 
(a) AMENDMENT RELATED TO SECTION 201 OF THE 
ACT.—Subparagraph (A) of section 6103(i)(7) is amended 
by adding at the end the following new clause: 
‘‘(v) TAXPAYER IDENTITY.—For pur-
poses of this subparagraph, a taxpayer’s
identity shall not be treated as taxpayer 
return information.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in section 
201 of the Victims of Terrorism Tax Relief Act of 2001.
SEC. 6. AMENDMENTS RELATED TO COMMUNITY RENEWAL 
TAX RELIEF ACT OF 2000. 
(a) AMENDMENTS RELATED TO SECTION 401 OF 
THE ACT.—
(1) Subsection (c) of section 1234B is amended 
by adding at the end the following new sentence: 
‘‘The Secretary may prescribe regulations regarding 
the status of contracts the values of which are deter-
mined directly or indirectly by reference to any index 
which becomes (or ceases to be) a narrow-based se-
curity index (as defined for purposes of section 
1256(g)(6)).’’. 
(2) Paragraph (6) of section 1256(g) is amend-
ed by adding at the end the following new sentence: 
‘‘The Secretary may prescribe regulations regarding 
the status of options the values of which are deter-
mined directly or indirectly by reference to any index 
which becomes (or ceases to be) a narrow-based se-
curity index (as so defined).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in section 
401 of the Community Renewal Tax Relief Act of 2000.
SEC. 7. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT 
OF 1997. 
(a) AMENDMENT RELATED TO SECTION 211 OF THE 
ACT.—Subparagraph (B) of section 529(c)(5) is amended 
to read as follows: 
‘‘(B) TREATMENT
OF
DESIGNATION
OF 
NEW
BENEFICIARY.—The taxes imposed by 
chapters 12 and 13 shall apply to a transfer by 
reason of a change in the designated beneficiary 
under the program (or a rollover to the account 
of a new beneficiary) unless the new beneficiary 
is—
‘‘(i) assigned to the same generation 
as (or a higher generation than) the old 
beneficiary (determined in accordance with 
section 2651), and 
‘‘(ii) a member of the family of the 
old beneficiary.’’. 
(b) AMENDMENT RELATED TO SECTION 213 OF THE 
ACT.—Clause (iii) of section 530(d)(4)(B) is amended by 
striking ‘‘account holder’’ and inserting ‘‘designated bene-
ficiary’’. 
(c) AMENDMENTS RELATED TO SECTION 1001 OF 
THE ACT.—
(1) Paragraph (2) of section 1259(c) is amend-
ed by striking ‘‘The term ‘constructive sale’ shall not