529
for qualified beneficiaries other than the
covered employee shall not terminate under
this subparagraph before the close of the 36-
month period beginning on the date the cov-
ered employee became so entitled.’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to plan years beginning
after December 31, 1989.
(i) TREATMENT OF CERTAIN REMIC INCLUSIONS.—
(1) IN GENERAL.—Subsection (a) of section 860E
is amended by adding at the end thereof the following
new paragraph:
‘‘(6) COORDINATION WITH MINIMUM TAX.—For
purposes of part VI of subchapter A of this chapter—
‘‘(A) the reference in section 55(b)(2) to tax-
able income shall be treated as a reference to tax-
able income determined without regard to this
subsection,
‘‘(B) the alternative minimum taxable in-
come of any holder of a residual interest in a
REMIC for any taxable year shall in no event
be less than the excess inclusion for such taxable
year, and
530
‘‘(C) any excess inclusion shall be dis-
regarded for purposes of computing the alter-
native tax net operating loss deduction.
The preceding sentence shall not apply to any organi-
zation to which section 593 applies, except to the ex-
tent provided in regulations prescribed by the Sec-
retary under paragraph (2).’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as if included in the
amendments made by section 671 of the Tax Reform
Act of 1986 unless the taxpayer elects to apply such
amendment only to taxable years beginning after the
date of the enactment of this Act.
(j) EXEMPTION FROM HARBOR MAINTENANCE TAX
FOR CERTAIN PASSENGERS.—
(1) IN GENERAL.—Subparagraph (D) of section
4462(b)(1) (relating to special rule for Alaska, Ha-
waii, and possessions) is amended by inserting before
the period the following: ‘‘, or passengers transported
on United States flag vessels operating solely within
the State waters of Alaska or Hawaii and adjacent
international waters’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as if included in the
531
amendments made by section 1402(a) of the Harbor
Maintenance Revenue Act of 1986.
(k) AMENDMENTS RELATED TO REVENUE PROVISIONS
OF ENERGY POLICY ACT OF 1992.—
(1) Effective with respect to taxable years begin-
ning after December 31, 1990, subclause (II) of sec-
tion 53(d)(1)(B)(iv) is amended to read as follows:
‘‘(II) the adjusted net minimum
tax for any taxable year is the amount
of the net minimum tax for such year
increased in the manner provided in
clause (iii).’’.
(2) Subsection (g) of section 179A is redesignated
as subsection (f).
(3) Subparagraph (E) of section 6724(d)(3) is
amended by striking ‘‘section 6109(f)’’ and inserting
‘‘section 6109(h)’’.
(4)(A) Subsection (d) of section 30 is amended—
(i) by inserting ‘‘(determined without re-
gard to subsection (b)(3))’’ before the period at
the end of paragraph (1) thereof, and
(ii) by adding at the end thereof the follow-
ing new paragraph:
‘‘(4) ELECTION TO NOT TAKE CREDIT.—No credit
shall be allowed under subsection (a) for any vehicle
532
if the taxpayer elects to not have this section apply
to such vehicle.’’.
(B) Subsection (m) of section 6501 (as redesig-
nated by section 1602) is amended by striking ‘‘sec-
tion 40(f)’’ and inserting ‘‘section 30(d)(4), 40(f)’’.
(5) Subclause (III) of section 501(c)(21)(D)(ii) is
amended by striking ‘‘section 101(6)’’ and inserting
‘‘section 101(7)’’ and by striking ‘‘1752(6)’’ and in-
serting ‘‘1752(7)’’.
(6) Paragraph (1) of section 1917(b) of the En-
ergy Policy Act of 1992 shall be applied as if ‘‘at a
rate’’ appeared instead of ‘‘at the rate’’ in the mate-
rial proposed to be stricken.
(7) Paragraph (2) of section 1921(b) of the En-
ergy Policy Act of 1992 shall be applied as if a
comma appeared after ‘‘(2)’’ in the material proposed
to be stricken.
(8) Subsection (a) of section 1937 of the Energy
Policy Act of 1992 shall be applied as if ‘‘Subpart B’’
appeared instead of ‘‘Subpart C’’.
(l) TREATMENT OF QUALIFIED FOOTBALL COACHES
PLAN.—
(1) IN GENERAL.—For purposes of the Internal
Revenue Code of 1986, a qualified football coaches
plan—
533
(A) shall be treated as a multiemployer col-
lectively bargained plan, and
(B) notwithstanding section 401(k)(4)(B) of
such Code, may include a qualified cash and de-
ferred arrangement under section 401(k) of such
Code.
(2) QUALIFIED FOOTBALL COACHES PLAN.—For
purposes of this subsection, the term ‘‘qualified foot-
ball coaches plan’’ means any defined contribution
plan which is established and maintained by an orga-
nization—
(A) which is described in section 501(c) of
such Code,
(B) the membership of which consists en-
tirely of individuals who primarily coach foot-
ball as full-time employees of 4-year colleges or
universities described in section 170(b)(1)(A)(ii)
of such Code, and
(C) which was in existence on September
18, 1986.
(3) EFFECTIVE
DATE.—This subsection shall
apply to years beginning after December 22, 1987.
(m) DETERMINATION OF UNRECOVERED INVESTMENT
IN ANNUITY CONTRACT.—
534
(1) IN GENERAL.—Subparagraph (A) of section
72(b)(4) is amended by inserting ‘‘(determined with-
out regard to subsection (c)(2))’’ after ‘‘contract’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect as if included in the
amendments made by section 1122(c) of the Tax Re-
form Act of 1986.
(n) MODIFICATIONS
TO
ELECTION
TO
INCLUDE
CHILD’S INCOME ON PARENT’S RETURN.—
(1) ELIGIBILITY FOR ELECTION.—Clause (ii) of
section 1(g)(7)(A) (relating to election to include cer-
tain unearned income of child on parent’s return) is
amended to read as follows:
‘‘(ii) such gross income is more than
the 
amount 
described 
in 
paragraph
(4)(A)(ii)(I) and less than 10 times the
amount so described,’’.
(2) COMPUTATION OF TAX.—Subparagraph (B)
of section 1(g)(7) (relating to income included on par-
ent’s return) is amended—
(A) by striking ‘‘$1,000’’ in clause (i) and
inserting ‘‘twice the amount described in para-
graph (4)(A)(ii)(I)’’, and
(B) by amending subclause (II) of clause
(ii) to read as follows:
535
‘‘(II) for each such child, 15 per-
cent of the lesser of the amount de-
scribed in paragraph (4)(A)(ii)(I) or
the excess of the gross income of such
child over the amount so described,
and’’.
(3) MINIMUM TAX.—Subparagraph (B) of section
59(j)(1) is amended by striking ‘‘$1,000’’ and insert-
ing ‘‘twice the amount in effect for the taxable year
under section 63(c)(5)(A)’’.
(4) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after December 31, 1995.
(o) TREATMENT OF CERTAIN VETERANS’ REEMPLOY-
MENT RIGHTS.—
(1) IN GENERAL.—Section 414 is amended by
adding at the end the following new subsection:
‘‘(u) SPECIAL RULES RELATING TO VETERANS’ REEM-
PLOYMENT RIGHTS UNDER USERRA.—
‘‘(1) TREATMENT
OF
CERTAIN
CONTRIBUTIONS
MADE
PURSUANT
TO
VETERANS’ 
REEMPLOYMENT
RIGHTS.—If any contribution is made by an em-
ployer or an employee under an individual account
plan with respect to an employee, or by an employee
to a defined benefit plan that provides for employee
536
contributions, and such contribution is required by
reason of such employee’s rights under chapter 43 of
title 38, United States Code, resulting from qualified
military service, then—
‘‘(A) such contribution shall not be subject
to any otherwise applicable limitation contained
in section 402(g), 402(h), 403(b), 404(a), 404(h),
408, 415, or 457, and shall not be taken into ac-
count in applying such limitations to other con-
tributions or benefits under such plan or any
other plan, with respect to the year in which the
contribution is made,
‘‘(B) such contribution shall be subject to
the limitations referred to in subparagraph (A)
with respect to the year to which the contribu-
tion relates (in accordance with rules prescribed
by the Secretary), and
‘‘(C) such plan shall not be treated as fail-
ing to meet the requirements of section 401(a)(4),
401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12),
401(m), 403(b)(12), 408(k)(3), 408(k)(6), 408(p),
410(b), or 416 by reason of the making of (or the
right to make) such contribution.
For purposes of the preceding sentence, any elective
deferral or employee contribution made under para-
537
graph (2) shall be treated as required by reason of the
employee’s rights under such chapter 43.
‘‘(2) REEMPLOYMENT
RIGHTS
UNDER
USERRA
WITH RESPECT TO ELECTIVE DEFERRALS.—
‘‘(A) IN
GENERAL.—For purposes of this
subchapter and section 457, if an employee is en-
titled to the benefits of chapter 43 of title 38,
United States Code, with respect to any plan
which provides for elective deferrals, the em-
ployer sponsoring the plan shall be treated as
meeting the requirements of such chapter 43 with
respect to such elective deferrals only if such em-
ployer—
‘‘(i) permits such employee to make ad-
ditional elective deferrals under such plan
(in the amount determined under subpara-
graph (B) or such lesser amount as is elect-
ed by the employee) during the period which
begins on the date of the reemployment of
such employee with such employer and has
the same length as the lesser of—
‘‘(I) the product of 3 and the pe-
riod of qualified military service which
resulted in such rights, and
‘‘(II) 5 years, and
538
‘‘(ii) makes a matching contribution
with respect to any additional elective defer-
ral made pursuant to clause (i) which
would have been required had such deferral
actually been made during the period of
such qualified military service.
‘‘(B) AMOUNT OF MAKEUP REQUIRED.—The
amount determined under this subparagraph
with respect to any plan is the maximum
amount of the elective deferrals that the individ-
ual would have been permitted to make under the
plan in accordance with the limitations referred
to in paragraph (1)(A) during the period of
qualified military service if the individual had
continued to be employed by the employer during
such period and received compensation as deter-
mined under paragraph (7). Proper adjustment
shall be made to the amount determined under
the preceding sentence for any elective deferrals
actually made during the period of such quali-
fied military service.
‘‘(C) ELECTIVE DEFERRAL.—For purposes
of this paragraph, the term ‘elective deferral’ has
the meaning given such term by section
402(g)(3); except that such term shall include
539
any deferral of compensation under an eligible
deferred compensation plan (as defined in sec-
tion 457(b)).
‘‘(D) AFTER-TAX
EMPLOYEE
CONTRIBU-
TIONS.—References in subparagraphs (A) and
(B) to elective deferrals shall be treated as in-
cluding references to employee contributions.
‘‘(3) CERTAIN RETROACTIVE ADJUSTMENTS NOT
REQUIRED.—For purposes of this subchapter and sub-
chapter E, no provision of chapter 43 of title 38,
United States Code, shall be construed as requiring—
‘‘(A) any crediting of earnings to an em-
ployee with respect to any contribution before
such contribution is actually made, or
‘‘(B) any allocation of any forfeiture with
respect to the period of qualified military service.
‘‘(4) LOAN
REPAYMENT
SUSPENSIONS
PER-
MITTED.—If any plan suspends the obligation to
repay any loan made to an employee from such plan
for any part of any period during which such em-
ployee is performing service in the uniformed services
(as defined in chapter 43 of title 38, United States
Code), whether or not qualified military service, such
suspension shall not be taken into account for pur-
poses of section 72(p), 401(a), or 4975(d)(1).
540
‘‘(5) QUALIFIED MILITARY SERVICE.—For pur-
poses of this subsection, the term ‘qualified military
service’ means any service in the uniformed services
(as defined in chapter 43 of title 38, United States
Code) by any individual if such individual is entitled
to reemployment rights under such chapter with re-
spect to such service.
‘‘(6) INDIVIDUAL ACCOUNT PLAN.—For purposes
of this subsection, the term ‘individual account plan’
means any defined contribution plan (including any
tax-sheltered annuity plan under section 403(b), any
simplified employee pension under section 408(k),
any qualified salary reduction arrangement under
section 408(p), and any eligible deferred compensa-
tion plan (as defined in section 457(b)).
‘‘(7) COMPENSATION.—For purposes of sections
403(b)(3), 415(c)(3), and 457(e)(5), an employee who
is in qualified military service shall be treated as re-
ceiving compensation from the employer during such
period of qualified military service equal to—
‘‘(A) the compensation the employee would
have received during such period if the employee
were not in qualified military service, deter-
mined based on the rate of pay the employee
would have received from the employer but for
541
absence during the period of qualified military
service, or
‘‘(B) if the compensation the employee
would have received during such period was not
reasonably certain, the employee’s average com-
pensation from the employer during the 12-
month period immediately preceding the quali-
fied military service (or, if shorter, the period of
employment immediately preceding the qualified
military service).
‘‘(8) USERRA REQUIREMENTS FOR QUALIFIED
RETIREMENT PLANS.—For purposes of this subchapter
and section 457, an employer sponsoring a retirement
plan shall be treated as meeting the requirements of
chapter 43 of title 38, United States Code, only if
each of the following requirements is met:
‘‘(A) An individual reemployed under such
chapter is treated with respect to such plan as
not having incurred a break in service with the
employer maintaining the plan by reason of such
individual’s period of qualified military service.
‘‘(B) Each period of qualified military serv-
ice served by an individual is, upon reemploy-
ment under such chapter, deemed with respect to
such plan to constitute service with the employer
542
maintaining the plan for the purpose of deter-
mining the nonforfeitability of the individual’s
accrued benefits under such plan and for the
purpose of determining the accrual of benefits
under such plan.
‘‘(C) An individual reemployed under such
chapter is entitled to accrued benefits that are
contingent on the making of, or derived from,
employee contributions or elective deferrals only
to the extent the individual makes payment to
the plan with respect to such contributions or de-
ferrals. No such payment may exceed the amount
the individual would have been permitted or re-
quired to contribute had the individual remained
continuously employed by the employer through-
out the period of qualified military service. Any
payment to such plan shall be made during the
period beginning with the date of reemployment
and whose duration is 3 times the period of the
qualified military service (but not greater than
5 years).
‘‘(9) PLANS NOT SUBJECT TO TITLE 38.—This
subsection shall not apply to any retirement plan to
which chapter 43 of title 38, United States Code, does
not apply.