775 
‘‘(III) A plan administrator’s failure to provide 
the notice required under this subparagraph shall be 
treated for purposes of section 502(c)(2) as a failure 
or refusal by the plan administrator to file the an-
nual report required to be filed with the Secretary 
under section 101(b)(4). 
‘‘(vi) A plan is described in this clause if it is 
a plan— 
‘‘(I) that was established in Chicago, Illi-
nois, on August 12, 1881; and 
‘‘(II) sponsored by an organization de-
scribed in section 501(c)(5) of the Internal Rev-
enue Code of 1986 and exempt from tax under 
section 501(a) of such Code.’’. 
(b) AMENDMENT TO INTERNAL REVENUE CODE.— 
Subsection (f) of section 414 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following 
new paragraph (6): 
‘‘(6) ELECTION
WITH
REGARD
TO
MULTIEM-
PLOYER STATUS.— 
‘‘(A) Within 1 year after the enactment of 
the Pension Protection Act of 2006— 
‘‘(i) An election under paragraph (5) 
may be revoked, pursuant to procedures 
prescribed by the Pension Benefit Guar-
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ccoleman on PROD1PC71 with BILLS
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anty Corporation, if, for each of the 3 plan 
years prior to the date of the enactment of 
that Act, the plan would have been a mul-
tiemployer plan but for the election under 
paragraph (5), and 
‘‘(ii) a plan that meets the criteria in 
subparagraph (A) and (B) of paragraph 
(1) of this subsection or that is described 
in subparagraph (E) may, pursuant to pro-
cedures prescribed by the Pension Benefit 
Guaranty Corporation, elect to be a multi-
employer plan, if— 
‘‘(I) for each of the 3 plan years 
immediately before the date of enact-
ment of the Pension Protection Act of 
2006, the plan has met those criteria 
or is so described, 
‘‘(II) substantially all of the 
plan’s employer contributions for each 
of those plan years were made or re-
quired to be made by organizations 
that were exempt from tax under sec-
tion 501, and 
‘‘(III) the plan was established 
prior to September 2, 1974. 
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‘‘(B) An election under this paragraph 
shall be effective for all purposes under this Act 
and under the Employee Retirement Income Se-
curity Act of 1974, starting with the first plan 
year ending after the date of the enactment of 
the Pension Protection Act of 2006. 
‘‘(C) Once made, an election under this 
paragraph shall be irrevocable, except that a 
plan described in subparagraph (A)(ii) shall 
cease to be a multiemployer plan as of the plan 
year beginning immediately after the first plan 
year for which the majority of its employer con-
tributions were made or required to be made by 
organizations that were not exempt from tax 
under section 501. 
‘‘(D) The fact that a plan makes an elec-
tion under subparagraph (A)(ii) does not imply 
that the plan was not a multiemployer plan 
prior to the date of the election or would not be 
a multiemployer plan without regard to the 
election. 
‘‘(E) A plan is described in this subpara-
graph if it is a plan— 
‘‘(i) that was established in Chicago, 
Illinois, on August 12, 1881; and 
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‘‘(ii) sponsored by an organization de-
scribed in section 501(c)(5) and exempt 
from tax under section 501(a).’’. 
SEC. 1107. PROVISIONS RELATING TO PLAN AMENDMENTS. 
(a) IN GENERAL.—If this section applies to any pen-
sion plan or contract amendment— 
(1) such pension plan or contract shall be treat-
ed as being operated in accordance with the terms 
of the plan during the period described in subsection 
(b)(2)(A), and 
(2) except as provided by the Secretary of the 
Treasury, such pension plan shall not fail to meet 
the requirements of section 411(d)(6) of the Internal 
Revenue Code of 1986 and section 204(g) of the 
Employee Retirement Income Security Act of 1974 
by reason of such amendment. 
(b) AMENDMENTS TO WHICH SECTION APPLIES.— 
(1) IN GENERAL.—This section shall apply to 
any amendment to any pension plan or annuity con-
tract which is made— 
(A) pursuant to any amendment made by 
this Act or pursuant to any regulation issued by 
the Secretary of the Treasury or the Secretary 
of Labor under this Act, and 
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ccoleman on PROD1PC71 with BILLS
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(B) on or before the last day of the first 
plan year beginning on or after January 1, 
2009. 
In the case of a governmental plan (as defined in 
section 414(d) of the Internal Revenue Code of 
1986), this paragraph shall be applied by sub-
stituting ‘‘2011’’ for ‘‘2009’’. 
(2) CONDITIONS.—This section shall not apply 
to any amendment unless— 
(A) during the period— 
(i) beginning on the date the legisla-
tive or regulatory amendment described in 
paragraph (1)(A) takes effect (or in the 
case of a plan or contract amendment not 
required by such legislative or regulatory 
amendment, the effective date specified by 
the plan), and 
(ii) ending on the date described in 
paragraph (1)(B) (or, if earlier, the date 
the plan or contract amendment is adopt-
ed), the plan or contract is operated as if 
such plan or contract amendment were in 
effect; and 
(B) such plan or contract amendment ap-
plies retroactively for such period. 
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TITLE XII—PROVISIONS RELAT-
ING TO EXEMPT ORGANIZA-
TIONS 
Subtitle A—Charitable Giving 
Incentives 
SEC. 1201. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
RETIREMENT PLANS FOR CHARITABLE PUR-
POSES. 
(a) IN GENERAL.—Subsection (d) of section 408 (re-
lating to individual retirement accounts) is amended by 
adding at the end the following new paragraph: 
‘‘(8) DISTRIBUTIONS
FOR
CHARITABLE
PUR-
POSES.— 
‘‘(A) IN GENERAL.—So much of the aggre-
gate amount of qualified charitable distributions 
with respect to a taxpayer made during any 
taxable year which does not exceed $100,000 
shall not be includible in gross income of such 
taxpayer for such taxable year. 
‘‘(B) QUALIFIED
CHARITABLE
DISTRIBU-
TION.—For purposes of this paragraph, the 
term ‘qualified charitable distribution’ means 
any distribution from an individual retirement 
plan (other than a plan described in subsection 
(k) or (p))— 
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‘‘(i) which is made directly by the 
trustee to an organization described in sec-
tion 170(b)(1)(A) (other than any organi-
zation described in section 509(a)(3) or 
any fund or account described in section 
4966(d)(2)), and 
‘‘(ii) which is made on or after the 
date that the individual for whose benefit 
the plan is maintained has attained age 
701⁄2. 
A distribution shall be treated as a qualified 
charitable distribution only to the extent that 
the distribution would be includible in gross in-
come without regard to subparagraph (A). 
‘‘(C) CONTRIBUTIONS
MUST
BE
OTHER-
WISE DEDUCTIBLE.—For purposes of this para-
graph, a distribution to an organization de-
scribed in subparagraph (B)(i) shall be treated 
as a qualified charitable distribution only if a 
deduction for the entire distribution would be 
allowable under section 170 (determined with-
out regard to subsection (b) thereof and this 
paragraph). 
‘‘(D) APPLICATION OF SECTION 72.—Not-
withstanding section 72, in determining the ex-
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782 
tent to which a distribution is a qualified chari-
table distribution, the entire amount of the dis-
tribution shall be treated as includible in gross 
income without regard to subparagraph (A) to 
the extent that such amount does not exceed 
the aggregate amount which would have been so 
includible if all amounts distributed from all in-
dividual retirement plans were treated as 1 con-
tract under paragraph (2)(A) for purposes of 
determining the inclusion of such distribution 
under section 72. Proper adjustments shall be 
made in applying section 72 to other distribu-
tions in such taxable year and subsequent tax-
able years. 
‘‘(E) DENIAL
OF
DEDUCTION.—Qualified 
charitable distributions which are not includible 
in gross income pursuant to subparagraph (A) 
shall not be taken into account in determining 
the deduction under section 170. 
‘‘(F) TERMINATION.—This paragraph shall 
not apply to distributions made in taxable years 
beginning after December 31, 2007.’’. 
(b) MODIFICATIONS RELATING TO INFORMATION RE-
TURNS BY CERTAIN TRUSTS.— 
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783 
(1) RETURNS.—Section 6034 (relating to re-
turns by trusts described in section 4947(a)(2) or 
claiming charitable deductions under section 642(c)) 
is amended to read as follows: 
‘‘SEC. 6034. RETURNS BY CERTAIN TRUSTS. 
‘‘(a) SPLIT-INTEREST TRUSTS.—Every trust de-
scribed in section 4947(a)(2) shall furnish such informa-
tion with respect to the taxable year as the Secretary may 
by forms or regulations require. 
‘‘(b) TRUSTS CLAIMING CERTAIN CHARITABLE DE-
DUCTIONS.— 
‘‘(1) IN GENERAL.—Every trust not required to 
file a return under subsection (a) but claiming a de-
duction under section 642(c) for the taxable year 
shall furnish such information with respect to such 
taxable year as the Secretary may by forms or regu-
lations prescribe, including— 
‘‘(A) the amount of the deduction taken 
under section 642(c) within such year, 
‘‘(B) the amount paid out within such year 
which represents amounts for which deductions 
under section 642(c) have been taken in prior 
years, 
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‘‘(C) the amount for which such deductions 
have been taken in prior years but which has 
not been paid out at the beginning of such year, 
‘‘(D) the amount paid out of principal in 
the current and prior years for the purposes de-
scribed in section 642(c), 
‘‘(E) the total income of the trust within 
such year and the expenses attributable thereto, 
and 
‘‘(F) a balance sheet showing the assets, li-
abilities, and net worth of the trust as of the 
beginning of such year. 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 
apply to a trust for any taxable year if— 
‘‘(A) all the net income for such year, de-
termined under the applicable principles of the 
law of trusts, is required to be distributed cur-
rently to the beneficiaries, or 
‘‘(B) the trust is described in section 
4947(a)(1).’’. 
(2) INCREASE IN PENALTY RELATING TO FIL-
ING OF INFORMATION RETURN BY SPLIT-INTEREST 
TRUSTS.—Paragraph (2) of section 6652(c) (relating 
to returns by exempt organizations and by certain 
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ccoleman on PROD1PC71 with BILLS
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trusts) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) SPLIT-INTEREST
TRUSTS.—In the 
case of a trust which is required to file a return 
under section 6034(a), subparagraphs (A) and 
(B) of this paragraph shall not apply and para-
graph (1) shall apply in the same manner as if 
such return were required under section 6033, 
except that— 
‘‘(i) the 5 percent limitation in the 
second sentence of paragraph (1)(A) shall 
not apply, 
‘‘(ii) in the case of any trust with 
gross income in excess of $250,000, the 
first sentence of paragraph (1)(A) shall be 
applied by substituting ‘$100’ for ‘$20’, 
and the second sentence thereof shall be 
applied by substituting ‘$50,000’ for 
‘$10,000’, and 
‘‘(iii) the third sentence of paragraph 
(1)(A) shall be disregarded. 
In addition to any penalty imposed on the trust 
pursuant to this subparagraph, if the person re-
quired to file such return knowingly fails to file 
the return, such penalty shall also be imposed 
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ccoleman on PROD1PC71 with BILLS
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on such person who shall be personally liable 
for such penalty.’’. 
(3) CONFIDENTIALITY
OF
NONCHARITABLE 
BENEFICIARIES.—Subsection (b) of section 6104 
(relating to inspection of annual information re-
turns) is amended by adding at the end the fol-
lowing new sentence: ‘‘In the case of a trust which 
is required to file a return under section 6034(a), 
this subsection shall not apply to information re-
garding beneficiaries which are not organizations de-
scribed in section 170(c).’’. 
(4) CLERICAL AMENDMENT.—The item in the 
table of sections for subpart A of part III of sub-
chapter A of chapter 61 relating to section 6034 is 
amended to read as follows: 
‘‘Sec. 6034. Returns by certain trusts.’’. 
(c) EFFECTIVE DATES.— 
(1) SUBSECTION (a).—The amendment made 
by subsection (a) shall apply to distributions made 
in taxable years beginning after December 31, 2005. 
(2) SUBSECTION (b).—The amendments made 
by subsection (b) shall apply to returns for taxable 
years beginning after December 31, 2006. 
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SEC. 1202. EXTENSION OF MODIFICATION OF CHARITABLE 
DEDUCTION FOR CONTRIBUTIONS OF FOOD 
INVENTORY. 
(a) IN GENERAL.—Section 170(e)(3)(C)(iv) (relating 
to termination) is amended by striking ‘‘2005’’ and insert-
ing ‘‘2007’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made after De-
cember 31, 2005. 
SEC. 1203. BASIS ADJUSTMENT TO STOCK OF S CORPORA-
TION CONTRIBUTING PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 1367(a) 
(relating to adjustments to basis of stock of shareholders, 
etc.) is amended by adding at the end the following new 
flush sentence: 
‘‘The decrease under subparagraph (B) by reason of 
a charitable contribution (as defined in section 
170(c)) of property shall be the amount equal to the 
shareholder’s pro rata share of the adjusted basis of 
such property. The preceding sentence shall not 
apply to contributions made in taxable years begin-
ning after December 31, 2007.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2005. 
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788 
SEC. 1204. EXTENSION OF MODIFICATION OF CHARITABLE 
DEDUCTION FOR CONTRIBUTIONS OF BOOK 
INVENTORY. 
(a) IN GENERAL.—Section 170(e)(3)(D)(iv) (relating 
to termination) is amended by striking ‘‘2005’’ and insert-
ing ‘‘2007’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to contributions made after De-
cember 31, 2005. 
SEC. 1205. MODIFICATION OF TAX TREATMENT OF CERTAIN 
PAYMENTS TO CONTROLLING EXEMPT ORGA-
NIZATIONS. 
(a) IN GENERAL.—Paragraph (13) of section 512(b) 
(relating to special rules for certain amounts received from 
controlled entities) is amended by redesignating subpara-
graph (E) as subparagraph (F) and by inserting after sub-
paragraph (D) the following new subparagraph: 
‘‘(E) PARAGRAPH TO APPLY ONLY TO CER-
TAIN EXCESS PAYMENTS.— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall apply only to the portion of a quali-
fying specified payment received or accrued 
by the controlling organization that ex-
ceeds the amount which would have been 
paid or accrued if such payment met the 
requirements prescribed under section 482. 
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‘‘(ii) ADDITION
TO
TAX
FOR
VALU-
ATION MISSTATEMENTS.—The tax imposed 
by this chapter on the controlling organiza-
tion shall be increased by an amount equal 
to 20 percent of the larger of— 
‘‘(I) such excess determined with-
out regard to any amendment or sup-
plement to a return of tax, or 
‘‘(II) such excess determined 
with regard to all such amendments 
and supplements. 
‘‘(iii) QUALIFYING
SPECIFIED
PAY-
MENT.—The term ‘qualifying specified 
payment’ means a specified payment which 
is made pursuant to— 
‘‘(I) a binding written contract in 
effect on the date of the enactment of 
this subparagraph, or 
‘‘(II) a contract which is a re-
newal, under substantially similar 
terms, of a contract described in sub-
clause (I). 
‘‘(iv) TERMINATION.—This subpara-
graph shall not apply to payments received 
or accrued after December 31, 2007.’’. 
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(b) REPORTING.— 
(1) IN GENERAL.—Section 6033 (relating to re-
turns by exempt organizations) is amended by redes-
ignating subsection (h) as subsection (i) and by in-
serting after subsection (g) the following new sub-
section: 
‘‘(h) CONTROLLING ORGANIZATIONS.—Each control-
ling organization (within the meaning of section 
512(b)(13)) which is subject to the requirements of sub-
section (a) shall include on the return required under sub-
section (a)— 
‘‘(1) any interest, annuities, royalties, or rents 
received from each controlled entity (within the 
meaning of section 512(b)(13)), 
‘‘(2) any loans made to each such controlled en-
tity, and 
‘‘(3) any transfers of funds between such con-
trolling organization and each such controlled enti-
ty.’’. 
(2) REPORT
TO
CONGRESS.—Not later than 
January 1, 2009, the Secretary of the Treasury 
shall submit to the Committee on Finance of the 
Senate and the Committee on Ways and Means of 
the House of Representatives a report on the effec-
tiveness of the Internal Revenue Service in admin-
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ccoleman on PROD1PC71 with BILLS
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istering the amendments made by subsection (a) and 
on the extent to which payments by controlled enti-
ties (within the meaning of section 512(b)(13) of the 
Internal Revenue Code of 1986) to controlling orga-
nizations (within the meaning of section 512(b)(13) 
of such Code) meet the requirements under section 
482 of such Code. Such report shall include the re-
sults of any audit of any controlling organization or 
controlled entity and recommendations relating to 
the tax treatment of payments from controlled enti-
ties to controlling organizations. 
(c) EFFECTIVE DATE.— 
(1) SUBSECTION (a).—The amendments made 
by subsection (a) shall apply to payments received or 
accrued after December 31, 2005. 
(2) SUBSECTION (b).—The amendments made 
by subsection (b) shall apply to returns the due date 
(determined without regard to extensions) of which 
is after the date of the enactment of this Act. 
SEC. 1206. ENCOURAGEMENT OF CONTRIBUTIONS OF CAP-
ITAL GAIN REAL PROPERTY MADE FOR CON-
SERVATION PURPOSES. 
(a) IN GENERAL.— 
(1) INDIVIDUALS.—Paragraph (1) of section 
170(b) (relating to percentage limitations) is amend-
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ccoleman on PROD1PC71 with BILLS
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ed by redesignating subparagraphs (E) and (F) as 
subparagraphs (F) and (G), respectively, and by in-
serting after subparagraph (D) the following new 
subparagraph: 
‘‘(E) CONTRIBUTIONS OF QUALIFIED CON-
SERVATION CONTRIBUTIONS.— 
‘‘(i) IN GENERAL.—Any qualified con-
servation contribution (as defined in sub-
section (h)(1)) shall be allowed to the ex-
tent the aggregate of such contributions 
does not exceed the excess of 50 percent of 
the taxpayer’s contribution base over the 
amount of all other charitable contribu-
tions allowable under this paragraph. 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
(i) exceeds the limitation of clause (i), such 
excess shall be treated (in a manner con-
sistent with the rules of subsection (d)(1)) 
as a charitable contribution to which clause 
(i) applies in each of the 15 succeeding 
years in order of time. 
‘‘(iii) COORDINATION
WITH
OTHER 
SUBPARAGRAPHS.—For purposes of apply-
ing this subsection and subsection (d)(1), 
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contributions described in clause (i) shall 
not be treated as described in subpara-
graph (A), (B), (C), or (D) and such sub-
paragraphs shall apply without regard to 
such contributions. 
‘‘(iv) SPECIAL RULE FOR CONTRIBU-
TION OF PROPERTY USED IN AGRICULTURE 
OR LIVESTOCK PRODUCTION.— 
‘‘(I) IN GENERAL.—If the indi-
vidual is a qualified farmer or rancher 
for the taxable year for which the con-
tribution is made, clause (i) shall be 
applied by substituting ‘100 percent’ 
for ‘50 percent’. 
‘‘(II) EXCEPTION.—Subclause (I) 
shall not apply to any contribution of 
property made after the date of the 
enactment of this subparagraph which 
is used in agriculture or livestock pro-
duction (or available for such produc-
tion) unless such contribution is sub-
ject to a restriction that such property 
remain available for such production. 
This subparagraph shall be applied 
separately with respect to property to 
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ccoleman on PROD1PC71 with BILLS
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which subclause (I) does not apply by 
reason of the preceding sentence prior 
to its application to property to which 
subclause (I) does apply. 
‘‘(v) DEFINITION.—For purposes of 
clause (iv), the term ‘qualified farmer or 
rancher’ means a taxpayer whose gross in-
come from the trade or business of farm-
ing 
(within 
the 
meaning 
of 
section 
2032A(e)(5)) is greater than 50 percent of 
the taxpayer’s gross income for the taxable 
year. 
‘‘(vi) TERMINATION.—This subpara-
graph shall not apply to any contribution 
made in taxable years beginning after De-
cember 31, 2007.’’. 
(2) CORPORATIONS.—Paragraph (2) of section 
170(b) is amended to read as follows: 
‘‘(2) CORPORATIONS.—In the case of a corpora-
tion— 
‘‘(A) IN GENERAL.—The total deductions 
under subsection (a) for any taxable year (other 
than for contributions to which subparagraph 
(B) applies) shall not exceed 10 percent of the 
taxpayer’s taxable income. 
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‘‘(B) QUALIFIED
CONSERVATION
CON-
TRIBUTIONS BY CERTAIN CORPORATE FARMERS 
AND RANCHERS.— 
‘‘(i) IN GENERAL.—Any qualified con-
servation contribution (as defined in sub-
section (h)(1))— 
‘‘(I) which is made by a corpora-
tion which, for the taxable year during 
which the contribution is made, is a 
qualified farmer or rancher (as de-
fined in paragraph (1)(E)(v)) and the 
stock of which is not readily tradable 
on an established securities market at 
any time during such year, and 
‘‘(II) which, in the case of con-
tributions made after the date of the 
enactment of this subparagraph, is a 
contribution of property which is used 
in agriculture or livestock production 
(or available for such production) and 
which is subject to a restriction that 
such property remain available for 
such production, 
shall be allowed to the extent the aggregate 
of such contributions does not exceed the 
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ccoleman on PROD1PC71 with BILLS
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excess of the taxpayer’s taxable income 
over the amount of charitable contributions 
allowable under subparagraph (A). 
‘‘(ii) CARRYOVER.—If the aggregate 
amount of contributions described in clause 
(i) exceeds the limitation of clause (i), such 
excess shall be treated (in a manner con-
sistent with the rules of subsection (d)(2)) 
as a charitable contribution to which clause 
(i) applies in each of the 15 succeeding 
years in order of time. 
‘‘(iii) TERMINATION.—This subpara-
graph shall not apply to any contribution 
made in taxable years beginning after De-
cember 31, 2007. 
‘‘(C) TAXABLE INCOME.—For purposes of 
this paragraph, taxable income shall be com-
puted without regard to— 
‘‘(i) this section, 
‘‘(ii) part VIII (except section 248), 
‘‘(iii) any net operating loss carryback 
to the taxable year under section 172, 
‘‘(iv) section 199, and 
‘‘(v) any capital loss carryback to the 
taxable year under section 1212(a)(1).’’. 
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(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 170(d) is amended 
by striking ‘‘subsection (b)(2)’’ each place it appears 
and inserting ‘‘subsection (b)(2)(A)’’. 
(2) Section 545(b)(2) is amended by striking 
‘‘and (D)’’ and inserting ‘‘(D), and (E)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made in taxable 
years beginning after December 31, 2005. 
SEC. 1207. EXCISE TAXES EXEMPTION FOR BLOOD COL-
LECTOR ORGANIZATIONS. 
(a) EXEMPTION FROM IMPOSITION
OF SPECIAL 
FUELS TAX.—Section 4041(g) (relating to other exemp-
tions) is amended by striking ‘‘and’’ at the end of para-
graph (3), by striking the period in paragraph (4) and 
inserting ‘‘; and’’, and by inserting after paragraph (4) 
the following new paragraph: 
‘‘(5) with respect to the sale of any liquid to a 
qualified blood collector organization (as defined in 
section 7701(a)(49)) for such organization’s exclu-
sive use in the collection, storage, or transportation 
of blood.’’. 
(b) EXEMPTION FROM MANUFACTURERS EXCISE 
TAX.— 
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798 
(1) IN GENERAL.—Section 4221(a) (relating to 
certain tax-free sales) is amended by striking ‘‘or’’ 
at the end of paragraph (4), by adding ‘‘or’’ at the 
end of paragraph (5), and by inserting after para-
graph (5) the following new paragraph: 
‘‘(6) to a qualified blood collector organization 
(as defined in section 7701(a)(49)) for such organi-
zation’s exclusive use in the collection, storage, or 
transportation of blood,’’. 
(2) NO
EXEMPTION
WITH
RESPECT
TO
VAC-
CINES
AND
RECREATIONAL
EQUIPMENT.—Section 
4221(a) is amended by adding at the end the fol-
lowing new sentence: ‘‘In the case of taxes imposed 
by subchapter C or D, paragraph (6) shall not 
apply.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) The second sentence of section 
4221(a) is amended by striking ‘‘Paragraphs 
(4) and (5)’’ and inserting ‘‘Paragraphs (4), 
(5), and (6)’’. 
(B) Section 6421(c) is amended by strik-
ing ‘‘or (5)’’ and inserting ‘‘(5), or (6)’’. 
(c) EXEMPTION
FROM
COMMUNICATION
EXCISE 
TAX.— 
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(1) IN GENERAL.—Section 4253 (relating to ex-
emptions) is amended by redesignating subsection 
(k) as subsection (l) and inserting after subsection 
(j) the following new subsection: 
‘‘(k) EXEMPTION
FOR
QUALIFIED
BLOOD
COL-
LECTOR ORGANIZATIONS.—Under regulations provided by 
the Secretary, no tax shall be imposed under section 4251 
on any amount paid by a qualified blood collector organi-
zation (as defined in section 7701(a)(49)) for services or 
facilities furnished to such organization.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
4253(l), as redesignated by paragraph (1), is 
amended by striking ‘‘or (j)’’ and inserting ‘‘(j), or 
(k)’’. 
(d) EXEMPTION FROM TAX ON HEAVY VEHICLES.— 
Section 4483 is amended by redesignating subsection (h) 
as subsection (i) and by inserting after subsection (g) the 
following new subsection: 
‘‘(h) EXEMPTION FOR VEHICLES USED IN BLOOD 
COLLECTION.— 
‘‘(1) IN GENERAL.—No tax shall be imposed by 
section 4481 on the use of any qualified blood col-
lector vehicle by a qualified blood collector organiza-
tion. 
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‘‘(2) QUALIFIED
BLOOD
COLLECTOR
VEHI-
CLE.—For purposes of this subsection, the term 
‘qualified blood collector vehicle’ means a vehicle at 
least 80 percent of the use of which during the prior 
taxable period was by a qualified blood collector or-
ganization in the collection, storage, or transpor-
tation of blood. 
‘‘(3) SPECIAL
RULE
FOR
VEHICLES
FIRST 
PLACED IN SERVICE IN A TAXABLE PERIOD.—In the 
case of a vehicle first placed in service in a taxable 
period, a vehicle shall be treated as a qualified blood 
collector vehicle for such taxable period if such quali-
fied blood collector organization certifies to the Sec-
retary that the organization reasonably expects at 
least 80 percent of the use of such vehicle by the or-
ganization during such taxable period will be in the 
collection, storage, or transportation of blood. 
‘‘(4) QUALIFIED BLOOD COLLECTOR ORGANIZA-
TION.—The term ‘qualified blood collector organiza-
tion’ has the meaning given such term by section 
7701(a)(49).’’. 
(e) CREDIT OR REFUND FOR CERTAIN TAXES ON 
SALES AND SERVICES.— 
(1) DEEMED OVERPAYMENT.— 
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ccoleman on PROD1PC71 with BILLS
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(A) IN GENERAL.—Section 6416(b)(2) is 
amended by redesignating subparagraphs (E) 
and (F) as subparagraphs (F) and (G), respec-
tively, and by inserting after subparagraph (D) 
the following new subparagraph: 
‘‘(E) sold to a qualified blood collector or-
ganization (as defined in section 7701(a)(49)) 
for such organization’s exclusive use in the col-
lection, storage, or transportation of blood;’’. 
(B) NO CREDIT OR REFUND FOR VACCINES 
OR
RECREATIONAL
EQUIPMENT.—Section 
6416(b)(2) is amended by adding at the end the 
following new sentence: ‘‘In the case of taxes 
imposed by subchapter C or D of chapter 32, 
subparagraph (E) shall not apply.’’. 
(C) CONFORMING AMENDMENTS.—Section 
6416(b)(2) is amended— 
(i) by striking ‘‘Subparagraphs (C) 
and (D)’’ in the second sentence and in-
serting ‘‘Subparagraphs (C), (D), and 
(E)’’. 
(ii) by striking ‘‘(B), (C), and (D)’’ 
and inserting ‘‘(B), (C), (D), and (E)’’. 
(2) SALES OF TIRES.—Section 6416(b)(4)(B) is 
amended by striking ‘‘or’’ at the end of clause (i), 
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ccoleman on PROD1PC71 with BILLS
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by striking the period at the end of clause (ii) and 
inserting ‘‘, or’’, and by adding after clause (ii) the 
following: 
‘‘(iii) sold to a qualified blood collector 
organization for its exclusive use in con-
nection with a vehicle the organization cer-
tifies will be primarily used in the collec-
tion, storage, or transportation of blood.’’. 
(f) DEFINITION OF QUALIFIED BLOOD COLLECTOR 
ORGANIZATION.—Section 7701(a) is amended by inserting 
at the end the following new paragraph: 
‘‘(49) QUALIFIED BLOOD COLLECTOR ORGANI-
ZATION.—The term ‘qualified blood collector organi-
zation’ means an organization which is— 
‘‘(A) described in section 501(c)(3) and ex-
empt from tax under section 501(a), 
‘‘(B) primarily engaged in the activity of 
the collection of human blood, 
‘‘(C) registered with the Secretary for pur-
poses of excise tax exemptions, and 
‘‘(D) registered by the Food and Drug Ad-
ministration to collect blood.’’. 
(g) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall take effect on January 1, 2007. 
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ccoleman on PROD1PC71 with BILLS
803 
(2) SUBSECTION (d).—The amendment made 
by subsection (d) shall apply to taxable periods be-
ginning on or after July 1, 2007. 
Subtitle B—Reforming Exempt 
Organizations 
PART 1—GENERAL REFORMS 
SEC. 1211. REPORTING ON CERTAIN ACQUISITIONS OF IN-
TERESTS 
IN 
INSURANCE 
CONTRACTS 
IN 
WHICH CERTAIN EXEMPT ORGANIZATIONS 
HOLD AN INTEREST. 
(a) REPORTING REQUIREMENTS.— 
(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 (relating to information 
concerning transactions with other persons), as 
amended by this Act, is amended by adding at the 
end the following new section: 
‘‘SEC. 6050V. RETURNS RELATING TO APPLICABLE INSUR-
ANCE CONTRACTS IN WHICH CERTAIN EX-
EMPT ORGANIZATIONS HOLD INTERESTS. 
‘‘(a) IN GENERAL.—Each applicable exempt organi-
zation which makes a reportable acquisition shall make the 
return described in subsection (c). 
‘‘(b) TIME FOR MAKING RETURN.—Any applicable 
exempt organization required to make a return under sub-
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section (a) shall file such return at such time as may be 
established by the Secretary. 
‘‘(c) FORM AND MANNER OF RETURNS.—A return 
is described in this subsection if such return— 
‘‘(1) is in such form as the Secretary pre-
scribes, 
‘‘(2) contains the name, address, and taxpayer 
identification number of the applicable exempt orga-
nization and the issuer of the applicable insurance 
contract, and 
‘‘(3) contains such other information as the 
Secretary may prescribe. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) REPORTABLE
ACQUISITION.—The term 
‘reportable acquisition’ means the acquisition by an 
applicable exempt organization of a direct or indirect 
interest in any applicable insurance contract in any 
case in which such acquisition is a part of a struc-
tured transaction involving a pool of such contracts. 
‘‘(2) APPLICABLE INSURANCE CONTRACT.— 
‘‘(A) IN GENERAL.—The term ‘applicable 
insurance contract’ means any life insurance, 
annuity, or endowment contract with respect to 
which both an applicable exempt organization 
and a person other than an applicable exempt 
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