H. R. 4440—20
the Secretary of the Treasury may, on a taxpayer by taxpayer 
basis, extend the required date of the placement in service of 
such property under such section by such period of time as is 
determined necessary by the Secretary but not to exceed 1 year. 
For purposes of the preceding sentence, the determination shall 
be made by only taking into account the effect of one or more 
hurricanes on the date of such placement by the taxpayer. 
TITLE II—TAX BENEFITS RELATED TO 
HURRICANES RITA AND WILMA 
SEC. 201. EXTENSION OF CERTAIN EMERGENCY TAX RELIEF FOR 
HURRICANE KATRINA TO HURRICANES RITA AND WILMA. 
(a) IN GENERAL.—Part II of subchapter Y of chapter 1 (as 
added by this Act) is amended by adding at the end the following 
new sections: 
‘‘SEC. 1400Q. SPECIAL RULES FOR USE OF RETIREMENT FUNDS. 
‘‘(a) TAX-FAVORED WITHDRAWALS FROM RETIREMENT PLANS.— 
‘‘(1) IN
GENERAL.—Section 72(t) shall not apply to any 
qualified hurricane distribution. 
‘‘(2) AGGREGATE DOLLAR LIMITATION.— 
‘‘(A) IN GENERAL.—For purposes of this subsection, the 
aggregate amount of distributions received by an individual 
which may be treated as qualified hurricane distributions 
for any taxable year shall not exceed the excess (if any) 
of— 
‘‘(i) $100,000, over 
‘‘(ii) the aggregate amounts treated as qualified 
hurricane distributions received by such individual for 
all prior taxable years. 
‘‘(B) TREATMENT OF PLAN DISTRIBUTIONS.—If a distribu-
tion to an individual would (without regard to subpara-
graph (A)) be a qualified hurricane distribution, a plan 
shall not be treated as violating any requirement of this 
title merely because the plan treats such distribution as 
a qualified hurricane distribution, unless the aggregate 
amount of such distributions from all plans maintained 
by the employer (and any member of any controlled group 
which includes the employer) to such individual exceeds 
$100,000. 
‘‘(C) CONTROLLED GROUP.—For purposes of subpara-
graph (B), the term ‘controlled group’ means any group 
treated as a single employer under subsection (b), (c), (m), 
or (o) of section 414. 
‘‘(3) AMOUNT DISTRIBUTED MAY BE REPAID.— 
‘‘(A) IN GENERAL.—Any individual who receives a quali-
fied hurricane distribution may, at any time during the 
3-year period beginning on the day after the date on which 
such distribution was received, make one or more contribu-
tions in an aggregate amount not to exceed the amount 
of such distribution to an eligible retirement plan of which 
such individual is a beneficiary and to which a rollover 
contribution of such distribution could be made under sec-
tion 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), 
as the case may be.
H. R. 4440—21
‘‘(B) TREATMENT
OF
REPAYMENTS
OF
DISTRIBUTIONS 
FROM ELIGIBLE RETIREMENT PLANS OTHER THAN IRAS.—For 
purposes of this title, if a contribution is made pursuant 
to subparagraph (A) with respect to a qualified hurricane 
distribution from an eligible retirement plan other than 
an individual retirement plan, then the taxpayer shall, 
to the extent of the amount of the contribution, be treated 
as having received the qualified hurricane distribution in 
an eligible rollover distribution (as defined in section 
402(c)(4)) and as having transferred the amount to the 
eligible retirement plan in a direct trustee to trustee 
transfer within 60 days of the distribution. 
‘‘(C) TREATMENT OF REPAYMENTS FOR DISTRIBUTIONS 
FROM IRAS.—For purposes of this title, if a contribution 
is made pursuant to subparagraph (A) with respect to 
a qualified hurricane distribution from an individual retire-
ment plan (as defined by section 7701(a)(37)), then, to 
the extent of the amount of the contribution, the qualified 
hurricane distribution shall be treated as a distribution 
described in section 408(d)(3) and as having been trans-
ferred to the eligible retirement plan in a direct trustee 
to trustee transfer within 60 days of the distribution. 
‘‘(4) DEFINITIONS.—For purposes of this subsection— 
‘‘(A) QUALIFIED HURRICANE DISTRIBUTION.—Except as 
provided in paragraph (2), the term ‘qualified hurricane 
distribution’ means— 
‘‘(i) any distribution from an eligible retirement 
plan made on or after August 25, 2005, and before 
January 1, 2007, to an individual whose principal place 
of abode on August 28, 2005, is located in the Hurri-
cane Katrina disaster area and who has sustained 
an economic loss by reason of Hurricane Katrina, 
‘‘(ii) any distribution (which is not described in 
clause (i)) from an eligible retirement plan made on 
or after September 23, 2005, and before January 1, 
2007, to an individual whose principal place of abode 
on September 23, 2005, is located in the Hurricane 
Rita disaster area and who has sustained an economic 
loss by reason of Hurricane Rita, and 
‘‘(iii) any distribution (which is not described in 
clause (i) or (ii)) from an eligible retirement plan made 
on or after October 23, 2005, and before January 1, 
2007, to an individual whose principal place of abode 
on October 23, 2005, is located in the Hurricane Wilma 
disaster area and who has sustained an economic loss 
by reason of Hurricane Wilma. 
‘‘(B) ELIGIBLE RETIREMENT PLAN.—The term ‘eligible 
retirement plan’ shall have the meaning given such term 
by section 402(c)(8)(B). 
‘‘(5) INCOME INCLUSION SPREAD OVER 3-YEAR PERIOD.— 
‘‘(A) IN GENERAL.—In the case of any qualified hurri-
cane distribution, unless the taxpayer elects not to have 
this paragraph apply for any taxable year, any amount 
required to be included in gross income for such taxable 
year shall be so included ratably over the 3-taxable year 
period beginning with such taxable year.
H. R. 4440—22
‘‘(B) SPECIAL RULE.—For purposes of subparagraph (A), 
rules similar to the rules of subparagraph (E) of section 
408A(d)(3) shall apply. 
‘‘(6) SPECIAL RULES.— 
‘‘(A) EXEMPTION OF DISTRIBUTIONS FROM TRUSTEE TO 
TRUSTEE
TRANSFER
AND
WITHHOLDING
RULES.—For pur-
poses of sections 401(a)(31), 402(f), and 3405, qualified 
hurricane distributions shall not be treated as eligible roll-
over distributions. 
‘‘(B) QUALIFIED HURRICANE DISTRIBUTIONS TREATED AS 
MEETING PLAN DISTRIBUTION REQUIREMENTS.—For purposes 
this title, a qualified hurricane distribution shall be treated 
as meeting the requirements of sections 401(k)(2)(B)(i), 
403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A). 
‘‘(b) RECONTRIBUTIONS
OF
WITHDRAWALS
FOR
HOME
PUR-
CHASES.— 
‘‘(1) RECONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—Any individual who received a quali-
fied distribution may, during the applicable period, make 
one or more contributions in an aggregate amount not 
to exceed the amount of such qualified distribution to an 
eligible retirement plan (as defined in section 402(c)(8)(B)) 
of which such individual is a beneficiary and to which 
a rollover contribution of such distribution could be made 
under section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3), as 
the case may be. 
‘‘(B) TREATMENT OF REPAYMENTS.—Rules similar to the 
rules of subparagraphs (B) and (C) of subsection (a)(3) 
shall apply for purposes of this subsection. 
‘‘(2) QUALIFIED DISTRIBUTION.—For purposes of this sub-
section— 
‘‘(A) IN
GENERAL.—The term ‘qualified distribution’ 
means any qualified Katrina distribution, any qualified 
Rita distribution, and any qualified Wilma distribution. 
‘‘(B) QUALIFIED
KATRINA
DISTRIBUTION.—The term 
‘qualified Katrina distribution’ means any distribution— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 
403(b)(7)(A)(ii) (but only to the extent such distribution 
relates 
to 
financial 
hardship), 
403(b)(11)(B), 
or 
72(t)(2)(F), 
‘‘(ii) received after February 28, 2005, and before 
August 29, 2005, and 
‘‘(iii) which was to be used to purchase or construct 
a principal residence in the Hurricane Katrina disaster 
area, but which was not so purchased or constructed 
on account of Hurricane Katrina. 
‘‘(C) QUALIFIED RITA DISTRIBUTION.—The term ‘quali-
fied Rita distribution’ means any distribution (other than 
a qualified Katrina distribution)— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 
403(b)(7)(A)(ii) (but only to the extent such distribution 
relates 
to 
financial 
hardship), 
403(b)(11)(B), 
or 
72(t)(2)(F), 
‘‘(ii) received after February 28, 2005, and before 
September 24, 2005, and 
‘‘(iii) which was to be used to purchase or construct 
a principal residence in the Hurricane Rita disaster
H. R. 4440—23
area, but which was not so purchased or constructed 
on account of Hurricane Rita. 
‘‘(D) QUALIFIED WILMA DISTRIBUTION.—The term ‘quali-
fied Wilma distribution’ means any distribution (other than 
a qualified Katrina distribution or a qualified Rita distribu-
tion)— 
‘‘(i) 
described 
in 
section 
401(k)(2)(B)(i)(IV), 
403(b)(7)(A)(ii) (but only to the extent such distribution 
relates 
to 
financial 
hardship), 
403(b)(11)(B), 
or 
72(t)(2)(F), 
‘‘(ii) received after February 28, 2005, and before 
October 24, 2005, and 
‘‘(iii) which was to be used to purchase or construct 
a principal residence in the Hurricane Wilma disaster 
area, but which was not so purchased or constructed 
on account of Hurricane Wilma. 
‘‘(3) APPLICABLE PERIOD.—For purposes of this subsection, 
the term ‘applicable period’ means— 
‘‘(A) with respect to any qualified Katrina distribution, 
the period beginning on August 25, 2005, and ending on 
February 28, 2006, 
‘‘(B) with respect to any qualified Rita distribution, 
the period beginning on September 23, 2005, and ending 
on February 28, 2006, and 
‘‘(C) with respect to any qualified Wilma distribution, 
the period beginning on October 23, 2005, and ending on 
February 28, 2006. 
‘‘(c) LOANS FROM QUALIFIED PLANS.— 
‘‘(1) INCREASE IN LIMIT ON LOANS NOT TREATED AS DISTRIBU-
TIONS.—In the case of any loan from a qualified employer 
plan (as defined under section 72(p)(4)) to a qualified individual 
made during the applicable period— 
‘‘(A) clause (i) of section 72(p)(2)(A) shall be applied 
by substituting ‘$100,000’ for ‘$50,000’, and 
‘‘(B) clause (ii) of such section shall be applied by 
substituting ‘the present value of the nonforfeitable accrued 
benefit of the employee under the plan’ for ‘one-half of 
the present value of the nonforfeitable accrued benefit of 
the employee under the plan’. 
‘‘(2) DELAY OF REPAYMENT.—In the case of a qualified indi-
vidual with an outstanding loan on or after the qualified begin-
ning date from a qualified employer plan (as defined in section 
72(p)(4))— 
‘‘(A) if the due date pursuant to subparagraph (B) 
or (C) of section 72(p)(2) for any repayment with respect 
to such loan occurs during the period beginning on the 
qualified beginning date and ending on December 31, 2006, 
such due date shall be delayed for 1 year, 
‘‘(B) any subsequent repayments with respect to any 
such loan shall be appropriately adjusted to reflect the 
delay in the due date under paragraph (1) and any interest 
accruing during such delay, and 
‘‘(C) in determining the 5-year period and the term 
of a loan under subparagraph (B) or (C) of section 72(p)(2), 
the period described in subparagraph (A) shall be dis-
regarded.
H. R. 4440—24
‘‘(3) QUALIFIED
INDIVIDUAL.—For purposes of this sub-
section— 
‘‘(A) IN
GENERAL.—The term ‘qualified individual’ 
means any qualified Hurricane Katrina individual, any 
qualified Hurricane Rita individual, and any qualified 
Hurricane Wilma individual. 
‘‘(B) QUALIFIED HURRICANE KATRINA INDIVIDUAL.—The 
term ‘qualified Hurricane Katrina individual’ means an 
individual whose principal place of abode on August 28, 
2005, is located in the Hurricane Katrina disaster area 
and who has sustained an economic loss by reason of Hurri-
cane Katrina. 
‘‘(C) QUALIFIED HURRICANE RITA INDIVIDUAL.—The term 
‘qualified Hurricane Rita individual’ means an individual 
(other than a qualified Hurricane Katrina individual) 
whose principal place of abode on September 23, 2005, 
is located in the Hurricane Rita disaster area and who 
has sustained an economic loss by reason of Hurricane 
Rita. 
‘‘(D) QUALIFIED
HURRICANE
WILMA
INDIVIDUAL.—The 
term ‘qualified Hurricane Wilma individual’ means an indi-
vidual (other than a qualified Hurricane Katrina individual 
or a qualified Hurricane Rita individual) whose principal 
place of abode on October 23, 2005, is located in the Hurri-
cane Wilma disaster area and who has sustained an eco-
nomic loss by reason of Hurricane Wilma. 
‘‘(4) APPLICABLE PERIOD; QUALIFIED BEGINNING DATE.—For 
purposes of this subsection— 
‘‘(A) HURRICANE KATRINA.—In the case of any qualified 
Hurricane Katrina individual— 
‘‘(i) the applicable period is the period beginning 
on September 24, 2005, and ending on December 31, 
2006, and 
‘‘(ii) the qualified beginning date is August 25, 
2005. 
‘‘(B) HURRICANE RITA.—In the case of any qualified 
Hurricane Rita individual— 
‘‘(i) the applicable period is the period beginning 
on the date of the enactment of this subsection and 
ending on December 31, 2006, and 
‘‘(ii) the qualified beginning date is September 23, 
2005. 
‘‘(C) HURRICANE WILMA.—In the case of any qualified 
Hurricane Wilma individual— 
‘‘(i) the applicable period is the period beginning 
on the date of the enactment of this subparagraph 
and ending on December 31, 2006, and 
‘‘(ii) the qualified beginning date is October 23, 
2005. 
‘‘(d) PROVISIONS RELATING TO PLAN AMENDMENTS.— 
‘‘(1) IN GENERAL.—If this subsection applies to any amend-
ment to any plan or annuity contract, such plan or contract 
shall be treated as being operated in accordance with the terms 
of the plan during the period described in paragraph (2)(B)(i). 
‘‘(2) AMENDMENTS TO WHICH SUBSECTION APPLIES.—
H. R. 4440—25
‘‘(A) IN GENERAL.—This subsection shall apply to any 
amendment to any plan or annuity contract which is 
made— 
‘‘(i) pursuant to any provision of this section, or 
pursuant to any regulation issued by the Secretary 
or the Secretary of Labor under any provision of this 
section, and 
‘‘(ii) on or before the last day of the first plan 
year beginning on or after January 1, 2007, or such 
later date as the Secretary may prescribe. 
In the case of a governmental plan (as defined in section 
414(d)), clause (ii) shall be applied by substituting the 
date which is 2 years after the date otherwise applied 
under clause (ii). 
‘‘(B) CONDITIONS.—This subsection shall not apply to 
any amendment unless— 
‘‘(i) during the period— 
‘‘(I) beginning on the date that this section 
or the regulation described in subparagraph (A)(i) 
takes effect (or in the case of a plan or contract 
amendment not required by this section or such 
regulation, the effective date specified by the plan), 
and 
‘‘(II) ending on the date described in subpara-
graph (A)(ii) (or, if earlier, the date the plan or 
contract amendment is adopted), 
the plan or contract is operated as if such plan or 
contract amendment were in effect; and 
‘‘(ii) such plan or contract amendment applies 
retroactively for such period. 
‘‘SEC. 1400R. EMPLOYMENT RELIEF. 
‘‘(a) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED 
BY HURRICANE KATRINA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, in the case 
of an eligible employer, the Hurricane Katrina employee reten-
tion credit for any taxable year is an amount equal to 40 
percent of the qualified wages with respect to each eligible 
employee of such employer for such taxable year. For purposes 
of the preceding sentence, the amount of qualified wages which 
may be taken into account with respect to any individual shall 
not exceed $6,000. 
‘‘(2) DEFINITIONS.—For purposes of this subsection— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eligible employer’ 
means any employer— 
‘‘(i) which conducted an active trade or business 
on August 28, 2005, in the GO Zone, and 
‘‘(ii) with respect to whom the trade or business 
described in clause (i) is inoperable on any day after 
August 28, 2005, and before January 1, 2006, as a 
result of damage sustained by reason of Hurricane 
Katrina. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘eligible employee’ 
means with respect to an eligible employer an employee 
whose principal place of employment on August 28, 2005, 
with such eligible employer was in the GO Zone.
H. R. 4440—26
‘‘(C) QUALIFIED
WAGES.—The term ‘qualified wages’ 
means wages (as defined in section 51(c)(1), but without 
regard to section 3306(b)(2)(B)) paid or incurred by an 
eligible employer with respect to an eligible employee on 
any day after August 28, 2005, and before January 1, 
2006, which occurs during the period— 
‘‘(i) beginning on the date on which the trade or 
business described in subparagraph (A) first became 
inoperable at the principal place of employment of 
the employee immediately before Hurricane Katrina, 
and 
‘‘(ii) ending on the date on which such trade or 
business has resumed significant operations at such 
principal place of employment. 
Such term shall include wages paid without regard to 
whether the employee performs no services, performs serv-
ices at a different place of employment than such principal 
place of employment, or performs services at such principal 
place of employment before significant operations have 
resumed. 
‘‘(3) CERTAIN RULES TO APPLY.—For purposes of this sub-
section, rules similar to the rules of sections 51(i)(1) and 52 
shall apply. 
‘‘(4) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT
MORE
THAN 
ONCE.—An employee shall not be treated as an eligible 
employee for purposes of this subsection for any period with 
respect to any employer if such employer is allowed a credit 
under section 51 with respect to such employee for such period. 
‘‘(b) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED 
BY HURRICANE RITA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, in the case 
of an eligible employer, the Hurricane Rita employee retention 
credit for any taxable year is an amount equal to 40 percent 
of the qualified wages with respect to each eligible employee 
of such employer for such taxable year. For purposes of the 
preceding sentence, the amount of qualified wages which may 
be taken into account with respect to any individual shall 
not exceed $6,000. 
‘‘(2) DEFINITIONS.—For purposes of this subsection— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eligible employer’ 
means any employer— 
‘‘(i) which conducted an active trade or business 
on September 23, 2005, in the Rita GO Zone, and 
‘‘(ii) with respect to whom the trade or business 
described in clause (i) is inoperable on any day after 
September 23, 2005, and before January 1, 2006, as 
a result of damage sustained by reason of Hurricane 
Rita. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘eligible employee’ 
means with respect to an eligible employer an employee 
whose principal place of employment on September 23, 
2005, with such eligible employer was in the Rita GO 
Zone. 
‘‘(C) QUALIFIED
WAGES.—The term ‘qualified wages’ 
means wages (as defined in section 51(c)(1), but without 
regard to section 3306(b)(2)(B)) paid or incurred by an 
eligible employer with respect to an eligible employee on
H. R. 4440—27
any day after September 23, 2005, and before January 
1, 2006, which occurs during the period— 
‘‘(i) beginning on the date on which the trade or 
business described in subparagraph (A) first became 
inoperable at the principal place of employment of 
the employee immediately before Hurricane Rita, and 
‘‘(ii) ending on the date on which such trade or 
business has resumed significant operations at such 
principal place of employment. 
Such term shall include wages paid without regard to 
whether the employee performs no services, performs serv-
ices at a different place of employment than such principal 
place of employment, or performs services at such principal 
place of employment before significant operations have 
resumed. 
‘‘(3) CERTAIN RULES TO APPLY.—For purposes of this sub-
section, rules similar to the rules of sections 51(i)(1) and 52 
shall apply. 
‘‘(4) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT
MORE
THAN 
ONCE.—An employee shall not be treated as an eligible 
employee for purposes of this subsection for any period with 
respect to any employer if such employer is allowed a credit 
under subsection (a) or section 51 with respect to such employee 
for such period. 
‘‘(c) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED 
BY HURRICANE WILMA.— 
‘‘(1) IN GENERAL.—For purposes of section 38, in the case 
of an eligible employer, the Hurricane Wilma employee reten-
tion credit for any taxable year is an amount equal to 40 
percent of the qualified wages with respect to each eligible 
employee of such employer for such taxable year. For purposes 
of the preceding sentence, the amount of qualified wages which 
may be taken into account with respect to any individual shall 
not exceed $6,000. 
‘‘(2) DEFINITIONS.—For purposes of this subsection— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eligible employer’ 
means any employer— 
‘‘(i) which conducted an active trade or business 
on October 23, 2005, in the Wilma GO Zone, and 
‘‘(ii) with respect to whom the trade or business 
described in clause (i) is inoperable on any day after 
October 23, 2005, and before January 1, 2006, as a 
result of damage sustained by reason of Hurricane 
Wilma. 
‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘eligible employee’ 
means with respect to an eligible employer an employee 
whose principal place of employment on October 23, 2005, 
with such eligible employer was in the Wilma GO Zone. 
‘‘(C) QUALIFIED
WAGES.—The term ‘qualified wages’ 
means wages (as defined in section 51(c)(1), but without 
regard to section 3306(b)(2)(B)) paid or incurred by an 
eligible employer with respect to an eligible employee on 
any day after October 23, 2005, and before January 1, 
2006, which occurs during the period— 
‘‘(i) beginning on the date on which the trade or 
business described in subparagraph (A) first became 
inoperable at the principal place of employment of
H. R. 4440—28
the employee immediately before Hurricane Wilma, 
and 
‘‘(ii) ending on the date on which such trade or 
business has resumed significant operations at such 
principal place of employment. 
Such term shall include wages paid without regard to 
whether the employee performs no services, performs serv-
ices at a different place of employment than such principal 
place of employment, or performs services at such principal 
place of employment before significant operations have 
resumed. 
‘‘(3) CERTAIN RULES TO APPLY.—For purposes of this sub-
section, rules similar to the rules of sections 51(i)(1) and 52 
shall apply. 
‘‘(4) EMPLOYEE
NOT
TAKEN
INTO
ACCOUNT
MORE
THAN 
ONCE.—An employee shall not be treated as an eligible 
employee for purposes of this subsection for any period with 
respect to any employer if such employer is allowed a credit 
under subsection (a) or (b) or section 51 with respect to such 
employee for such period. 
‘‘SEC. 1400S. ADDITIONAL TAX RELIEF PROVISIONS. 
‘‘(a) TEMPORARY SUSPENSION OF LIMITATIONS ON CHARITABLE 
CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—Except as otherwise provided in para-
graph (2), section 170(b) shall not apply to qualified contribu-
tions and such contributions shall not be taken into account 
for purposes of applying subsections (b) and (d) of section 170 
to other contributions. 
‘‘(2) TREATMENT OF EXCESS CONTRIBUTIONS.—For purposes 
of section 170— 
‘‘(A) INDIVIDUALS.—In the case of an individual— 
‘‘(i) LIMITATION.—Any qualified contribution shall 
be allowed only to the extent that the aggregate of 
such contributions does not exceed the excess of the 
taxpayer’s contribution base (as defined in subpara-
graph (F) of section 170(b)(1)) over the amount of all 
other charitable contributions allowed under section 
170(b)(1). 
‘‘(ii) CARRYOVER.—If the aggregate amount of 
qualified contributions made in the contribution year 
(within the meaning of section 170(d)(1)) exceeds the 
limitation of clause (i), such excess shall be added 
to the excess described in the portion of subparagraph 
(A) of such section which precedes clause (i) thereof 
for purposes of applying such section. 
‘‘(B) CORPORATIONS.—In the case of a corporation— 
‘‘(i) LIMITATION.—Any qualified contribution shall 
be allowed only to the extent that the aggregate of 
such contributions does not exceed the excess of the 
taxpayer’s taxable income (as determined under para-
graph (2) of section 170(b)) over the amount of all 
other charitable contributions allowed under such para-
graph. 
‘‘(ii) CARRYOVER.—Rules similar to the rules of 
subparagraph (A)(ii) shall apply for purposes of this 
subparagraph.
H. R. 4440—29
‘‘(3) EXCEPTION
TO
OVERALL
LIMITATION
ON
ITEMIZED 
DEDUCTIONS.—So much of any deduction allowed under section 
170 as does not exceed the qualified contributions paid during 
the taxable year shall not be treated as an itemized deduction 
for purposes of section 68. 
‘‘(4) QUALIFIED CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—For purposes of this subsection, the 
term ‘qualified contribution’ means any charitable contribu-
tion (as defined in section 170(c)) if— 
‘‘(i) such contribution is paid during the period 
beginning on August 28, 2005, and ending on December 
31, 2005, in cash to an organization described in section 
170(b)(1)(A) (other than an organization described in 
section 509(a)(3)), 
‘‘(ii) in the case of a contribution paid by a corpora-
tion, such contribution is for relief efforts related to 
Hurricane Katrina, Hurricane Rita, or Hurricane 
Wilma, and 
‘‘(iii) the taxpayer has elected the application of 
this subsection with respect to such contribution. 
‘‘(B) EXCEPTION.—Such term shall not include a con-
tribution if the contribution is for establishment of a new, 
or maintenance in an existing, segregated fund or account 
with respect to which the donor (or any person appointed 
or designated by such donor) has, or reasonably expects 
to have, advisory privileges with respect to distributions 
or investments by reason of the donor’s status as a donor. 
‘‘(C) APPLICATION OF ELECTION TO PARTNERSHIPS AND 
S CORPORATIONS.—In the case of a partnership or S corpora-
tion, the election under subparagraph (A)(iii) shall be made 
separately by each partner or shareholder. 
‘‘(b) SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CAS-
UALTY LOSSES.—Paragraphs (1) and (2)(A) of section 165(h) shall 
not apply to losses described in section 165(c)(3)— 
‘‘(1) which arise in the Hurricane Katrina disaster area 
on or after August 25, 2005, and which are attributable to 
Hurricane Katrina, 
‘‘(2) which arise in the Hurricane Rita disaster area on 
or after September 23, 2005, and which are attributable to 
Hurricane Rita, or 
‘‘(3) which arise in the Hurricane Wilma disaster area 
on or after October 23, 2005, and which are attributable to 
Hurricane Wilma. 
In the case of any other losses, section 165(h)(2)(A) shall be applied 
without regard to the losses referred to in the preceding sentence. 
‘‘(c) REQUIRED
EXERCISE
OF
AUTHORITY
UNDER
SECTION 
7508A.—In the case of any taxpayer determined by the Secretary 
to be affected by the Presidentially declared disaster relating to 
Hurricane Katrina, Hurricane Rita, or Hurricane Wilma, any relief 
provided by the Secretary under section 7508A shall be for a period 
ending not earlier than February 28, 2006. 
‘‘(d) SPECIAL RULE FOR DETERMINING EARNED INCOME.— 
‘‘(1) IN GENERAL.—In the case of a qualified individual, 
if the earned income of the taxpayer for the taxable year 
which includes the applicable date is less than the earned 
income of the taxpayer for the preceding taxable year, the
H. R. 4440—30
credits allowed under sections 24(d) and 32 may, at the election 
of the taxpayer, be determined by substituting— 
‘‘(A) such earned income for the preceding taxable year, 
for 
‘‘(B) such earned income for the taxable year which 
includes the applicable date. 
‘‘(2) QUALIFIED
INDIVIDUAL.—For purposes of this sub-
section— 
‘‘(A) IN
GENERAL.—The term ‘qualified individual’ 
means any qualified Hurricane Katrina individual, any 
qualified Hurricane Rita individual, and any qualified 
Hurricane Wilma individual. 
‘‘(B) QUALIFIED HURRICANE KATRINA INDIVIDUAL.—The 
term ‘qualified Hurricane Katrina individual’ means any 
individual whose principal place of abode on August 25, 
2005, was located— 
‘‘(i) in the GO Zone, or 
‘‘(ii) in the Hurricane Katrina disaster area (but 
outside the GO Zone) and such individual was dis-
placed from such principal place of abode by reason 
of Hurricane Katrina. 
‘‘(C) QUALIFIED HURRICANE RITA INDIVIDUAL.—The term 
‘qualified Hurricane Rita individual’ means any individual 
(other than a qualified Hurricane Katrina individual) 
whose principal place of abode on September 23, 2005, 
was located— 
‘‘(i) in the Rita GO Zone, or 
‘‘(ii) in the Hurricane Rita disaster area (but out-
side the Rita GO Zone) and such individual was dis-
placed from such principal place of abode by reason 
of Hurricane Rita. 
‘‘(D) QUALIFIED
HURRICANE
WILMA
INDIVIDUAL.—The 
term ‘qualified Hurricane Wilma individual’ means any 
individual whose principal place of abode on October 23, 
2005, was located— 
‘‘(i) in the Wilma GO Zone, or 
‘‘(ii) in the Hurricane Wilma disaster area (but 
outside the Wilma GO Zone) and such individual was 
displaced from such principal place of abode by reason 
of Hurricane Wilma. 
‘‘(3) APPLICABLE DATE.—For purposes of this subsection, 
the term ‘applicable date’ means— 
‘‘(A) in the case of a qualified Hurricane Katrina indi-
vidual, August 25, 2005, 
‘‘(B) in the case of a qualified Hurricane Rita indi-
vidual, September 23, 2005, and 
‘‘(C) in the case of a qualified Hurricane Wilma indi-
vidual, October 23, 2005. 
‘‘(4) EARNED INCOME.—For purposes of this subsection, the 
term ‘earned income’ has the meaning given such term under 
section 32(c). 
‘‘(5) SPECIAL RULES.— 
‘‘(A) APPLICATION
TO
JOINT
RETURNS.—For purposes 
of paragraph (1), in the case of a joint return for a taxable 
year which includes the applicable date— 
‘‘(i) such paragraph shall apply if either spouse 
is a qualified individual, and
H. R. 4440—31
‘‘(ii) the earned income of the taxpayer for the 
preceding taxable year shall be the sum of the earned 
income of each spouse for such preceding taxable year. 
‘‘(B) UNIFORM APPLICATION OF ELECTION.—Any election 
made under paragraph (1) shall apply with respect to both 
sections 24(d) and section 32. 
‘‘(C) ERRORS TREATED AS MATHEMATICAL ERROR.—For 
purposes of section 6213, an incorrect use on a return 
of earned income pursuant to paragraph (1) shall be treated 
as a mathematical or clerical error. 
‘‘(D) NO EFFECT ON DETERMINATION OF GROSS INCOME, 
ETC.—Except as otherwise provided in this subsection, this 
title shall be applied without regard to any substitution 
under paragraph (1). 
‘‘(e) 
SECRETARIAL
AUTHORITY
TO
MAKE
ADJUSTMENTS 
REGARDING TAXPAYER AND DEPENDENCY STATUS.—With respect to 
taxable years beginning in 2005 or 2006, the Secretary may make 
such adjustments in the application of the internal revenue laws 
as may be necessary to ensure that taxpayers do not lose any 
deduction or credit or experience a change of filing status by reason 
of temporary relocations by reason of Hurricane Katrina, Hurricane 
Rita, or Hurricane Wilma. Any adjustments made under the pre-
ceding sentence shall ensure that an individual is not taken into 
account by more than one taxpayer with respect to the same tax 
benefit. 
‘‘SEC. 1400T. SPECIAL RULES FOR MORTGAGE REVENUE BONDS. 
‘‘(a) IN GENERAL.—In the case of financing provided with respect 
to owner-occupied residences in the GO Zone, the Rita GO Zone, 
or the Wilma GO Zone, section 143 shall be applied— 
‘‘(1) by treating any such residence in the Rita GO Zone 
or the Wilma GO Zone as a targeted area residence, 
‘‘(2) by applying subsection (f)(3) thereof without regard 
to subparagraph (A) thereof, and 
‘‘(3) by substituting ‘$150,000’ for ‘$15,000’ in subsection 
(k)(4) thereof. 
‘‘(b) APPLICATION.—Subsection (a) shall not apply to financing 
provided after December 31, 2010.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 38, as amended by this Act, 
is amended by striking ‘‘and’’ at the end of paragraph (26), 
by striking the period at the end of paragraph (27) and inserting 
a comma, and by adding at the end the following new para-
graphs: 
‘‘(28) the Hurricane Katrina employee retention credit 
determined under section 1400R(a), 
‘‘(29) the Hurricane Rita employee retention credit deter-
mined under section 1400R(b), and 
‘‘(30) the Hurricane Wilma employee retention credit deter-
mined under section 1400R(c).’’. 
(2) Section 280C(a), as amended by this Act, is amended 
by striking ‘‘and 1400P(b)’’ and inserting ‘‘1400P(b), and 1400R’’. 
(3) The table of sections for part II of subchapter Y of 
chapter 1 is amended by adding at the end the following new 
items:
‘‘Sec. 1400Q. Special rules for use of retirement funds. 
‘‘Sec. 1400R. Employment relief. 
‘‘Sec. 1400S. Additional tax relief provisions.’’.
H. R. 4440—32
(4) The following provisions of the Katrina Emergency Tax 
Relief Act of 2005 are hereby repealed: 
(A) Title I. 
(B) Sections 202, 301, 402, 403(b), 406, and 407. 
TITLE III—OTHER PROVISIONS 
SEC. 301. GULF COAST RECOVERY BONDS. 
It is the sense of the Congress that the Secretary of the 
Treasury, or the Secretary’s delegate, should designate one or more 
series of bonds or certificates (or any portion thereof) issued under 
section 3105 of title 31, United States Code, as ‘‘Gulf Coast Recovery 
Bonds’’ in response to Hurricanes Katrina, Rita, and Wilma. 
SEC. 302. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME 
FOR PURPOSES OF EARNED INCOME CREDIT. 
(a) IN GENERAL.—Subclause (II) of section 32(c)(2)(B)(vi) is 
amended by striking ‘‘January 1, 2006’’ and inserting ‘‘January 
1, 2007’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to taxable years beginning after December 31, 2005. 
SEC. 303. MODIFICATION OF EFFECTIVE DATE OF EXCEPTION FROM 
SUSPENSION RULES FOR CERTAIN LISTED AND REPORT-
ABLE TRANSACTIONS. 
(a) EFFECTIVE DATE MODIFICATION.— 
(1) IN GENERAL.—Paragraph (2) of section 903(d) of the 
American Jobs Creation Act of 2004 is amended to read as 
follows: 
‘‘(2) EXCEPTION
FOR
REPORTABLE
OR
LISTED
TRANS-
ACTIONS.— 
‘‘(A) IN
GENERAL.—The amendments made by sub-
section (c) shall apply with respect to interest accruing 
after October 3, 2004. 
‘‘(B) SPECIAL RULE FOR CERTAIN LISTED AND REPORT-
ABLE TRANSACTIONS.— 
‘‘(i) IN GENERAL.—Except as provided in clauses 
(ii), (iii), and (iv), the amendments made by subsection 
(c) shall also apply with respect to interest accruing 
on or before October 3, 2004. 
‘‘(ii) PARTICIPANTS IN SETTLEMENT INITIATIVES.—
Clause (i) shall not apply to any transaction if, as 
of January 23, 2006— 
‘‘(I) the taxpayer is participating in a settle-
ment initiative described in Internal Revenue 
Service Announcement 2005–80 with respect to 
such transaction, or 
‘‘(II) the taxpayer has entered into a settle-
ment agreement pursuant to such an initiative. 
Subclause (I) shall not apply to any taxpayer if, after 
January 23, 2006, the taxpayer withdraws from, or 
terminates, participation in the initiative or the Sec-
retary of the Treasury or the Secretary’s delegate deter-
mines that a settlement agreement will not be reached 
pursuant to the initiative within a reasonable period 
of time.
H. R. 4440—33
‘‘(iii) TAXPAYERS ACTING IN GOOD FAITH.—The Sec-
retary of the Treasury may except from the application 
of clause (i) any transaction in which the taxpayer 
has acted reasonably and in good faith. 
‘‘(iv) CLOSED TRANSACTIONS.—Clause (i) shall not 
apply to a transaction if, as of December 14, 2005— 
‘‘(I) the assessment of all Federal income taxes 
for the taxable year in which the tax liability to 
which the interest relates arose is prevented by 
the operation of any law or rule of law, or 
‘‘(II) a closing agreement under section 7121 
has been entered into with respect to the tax 
liability arising in connection with the trans-
action.’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall take effect as if included in the provisions of 
the American Jobs Creation Act of 2004 to which it relates. 
(b) TREATMENT
OF AMENDED RETURNS
AND OTHER SIMILAR 
NOTICES OF ADDITIONAL TAX OWED.— 
(1) IN GENERAL.—Section 6404(g)(1) (relating to suspension) 
is amended by adding at the end the following new sentence: 
‘‘If, after the return for a taxable year is filed, the taxpayer 
provides to the Secretary 1 or more signed written documents 
showing that the taxpayer owes an additional amount of tax 
for the taxable year, clause (i) shall be applied by substituting 
the date the last of the documents was provided for the date 
on which the return is filed.’’. 
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply to documents provided on or after the date 
of the enactment of this Act. 
SEC. 304. AUTHORITY FOR UNDERCOVER OPERATIONS. 
Paragraph (6) of section 7608(c) (relating to application of sec-
tion) is amended by striking ‘‘January 1, 2006’’ both places is 
appears and inserting ‘‘January 1, 2007’’. 
SEC. 305. DISCLOSURES OF CERTAIN TAX RETURN INFORMATION. 
(a) DISCLOSURES TO FACILITATE COMBINED EMPLOYMENT TAX 
REPORTING.— 
(1) IN GENERAL.—Subparagraph (B) of section 6103(d)(5) 
(relating to termination) is amended by striking ‘‘December 
31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall apply to disclosures after December 31, 2005. 
(b) DISCLOSURES RELATING TO TERRORIST ACTIVITIES.— 
(1) IN GENERAL.—Clause (iv) of section 6103(i)(3)(C) and 
subparagraph (E) of section 6103(i)(7) are each amended by 
striking ‘‘December 31, 2005’’ and inserting ‘‘December 31, 
2006’’. 
(2) EFFECTIVE DATE.—The amendments made by paragraph 
(1) shall apply to disclosures after December 31, 2005. 
(c) DISCLOSURES RELATING TO STUDENT LOANS.— 
(1) IN GENERAL.—Subparagraph (D) of section 6103(l)(13) 
(relating to termination) is amended by striking ‘‘December 
31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
(1) shall apply to requests made after December 31, 2005.
H. R. 4440—34
TITLE IV—TECHNICALS 
Subtitle A—Tax Technicals 
SEC. 401. SHORT TITLE. 
This subtitle may be cited as the ‘‘Tax Technical Corrections 
Act of 2005’’. 
SEC. 402. AMENDMENTS RELATED TO ENERGY POLICY ACT OF 2005. 
(a) AMENDMENTS RELATED TO SECTION 1263.— 
(1) Part VI of subchapter O of chapter 1 is repealed. 
(2) Section 1223 is amended by striking paragraph (3) 
and by redesignating paragraphs (4) through (16) as paragraphs 
(3) through (15), respectively. 
(3) Section 121(g) is amended by striking ‘‘1223(7)’’ and 
inserting ‘‘1223(6)’’. 
(4) Section 246(c)(3)(B) is amended by striking ‘‘paragraph 
(4) of section 1223’’ and inserting ‘‘paragraph (3) of section 
1223’’. 
(5) Section 247(b)(2)(D) is amended by inserting ‘‘as in 
effect before its repeal’’ after ‘‘part VI of subchapter O’’. 
(6)(A) Section 1245(b) is amended by striking paragraph 
(5) and redesignating paragraphs (6) through (9) as paragraphs 
(5) through (8), respectively. 
(B) Section 1245(b)(3) is amended by striking ‘‘paragraph 
(7)’’ and inserting ‘‘paragraph (6)’’. 
(7)(A) Section 1250(d) is amended by striking paragraph 
(5) and redesignating paragraphs (6) through (8) as paragraphs 
(5) through (7), respectively. 
(B) Section 1250(e)(2) is amended by striking ‘‘(3), or (5)’’ 
and inserting ‘‘or (3)’’. 
(b) AMENDMENT RELATED TO SECTION 1301.—Clause (ii) of sec-
tion 45(c)(3)(A) is amended by striking ‘‘nonhazardous lignin waste 
material’’ and inserting ‘‘lignin material’’. 
(c) AMENDMENTS RELATED TO SECTION 1303.— 
(1) Subsection (l) of section 54 is amended by striking 
paragraph (5), and by redesignating paragraphs (6) and (7) 
as paragraphs (5) and (6), respectively. 
(2) Subsection (e) of section 1303 of the Energy Policy 
Act of 2005 is amended to read as follows: 
‘‘(e) EFFECTIVE DATES.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the amendments made by this section shall apply to bonds 
issued after December 31, 2005. 
‘‘(2) SUBSECTION (C).—The amendments made by subsection 
(c) shall apply to taxable years beginning after December 31, 
2005.’’. 
(d) AMENDMENTS RELATED TO SECTION 1306.— 
(1) Paragraph (2) of section 45J(c) is amended to read 
as follows: 
‘‘(2) PHASEOUT OF CREDIT.— 
‘‘(A) IN GENERAL.—The amount of the credit determined 
under subsection (a) shall be reduced by an amount which 
bears the same ratio to the amount of the credit (deter-
mined without regard to this paragraph) as—
H. R. 4440—35
‘‘(i) the amount by which the reference price (as 
defined in section 45(e)(2)(C)) for the calendar year 
in which the sale occurs exceeds 8 cents, bears to 
‘‘(ii) 3 cents. 
‘‘(B) PHASEOUT
ADJUSTMENT
BASED
ON
INFLATION.—
The 8 cent amount in subparagraph (A) shall be adjusted 
by multiplying such amount by the inflation adjustment 
factor (as defined in section 45(e)(2)(B)) for the calendar 
year in which the sale occurs. If any amount as increased 
under the preceding sentence is not a multiple of 0.1 cent, 
such amount shall be rounded to the nearest multiple 
of 0.1 cent.’’. 
(2) Subsection (e) of section 45J is amended by striking 
‘‘(2),’’. 
(e) AMENDMENT RELATED TO SECTION 1309.—Subparagraph (B) 
of section 169(d)(5) is amended by adding at beginning thereof 
‘‘in the case of facility placed in service in connection with a plant 
or other property placed in operation after December 31, 1975,’’. 
(f) AMENDMENTS RELATED TO SECTION 1311.— 
(1) Clause (i) of section 172(b)(1)(I) is amended to read 
as follows: 
‘‘(i) IN GENERAL.—At the election of the taxpayer 
for any taxable year ending after December 31, 2005, 
and before January 1, 2009, in the case of a net oper-
ating loss for a taxable year ending after December 
31, 2002, and before January 1, 2006, there shall be 
a net operating loss carryback to each of the 5 taxable 
years preceding the taxable year of such loss to the 
extent that such loss does not exceed 20 percent of 
the sum of the electric transmission property capital 
expenditures and the pollution control facility capital 
expenditures of the taxpayer for the taxable year pre-
ceding the taxable year for which such election is 
made.’’. 
(2) Clause (ii) of section 172(b)(1)(I) is amended by striking 
‘‘in a taxable year’’ and inserting ‘‘for a taxable year’’. 
(3) Subparagraph (I) of section 172(b)(1) is amended by 
striking clause (iv) and (v), by redesignating clause (vi) as 
clause (v), and by inserting after clause (iii) the following: 
‘‘(iv) SPECIAL
RULES
RELATING
TO
CREDIT
OR 
REFUND.—In the case of the portion of the loss which 
is carried back 5 years by reason of clause (i)— 
‘‘(I) an application under section 6411(a) with 
respect to such portion shall not fail to be treated 
as timely filed if filed within 24 months after the 
due date specified under such section, and 
‘‘(II) 
references 
in 
sections 
6501(h), 
6511(d)(2)(A), and 6611(f)(1) to the taxable year 
in which such net operating loss arises or results 
in a net operating loss carryback shall be treated 
as references to the taxable year for which such 
election is made.’’. 
(g) AMENDMENT RELATED
TO SECTION 1322.—Subsection (a) 
of section 45K is amended by striking ‘‘if the taxpayer elects to 
have this section apply,’’. 
(h) AMENDMENT RELATED
TO SECTION 1331.—Paragraph (3) 
of section 1250(b) is amended by striking ‘‘or by section 179D’’.
H. R. 4440—36
(i) AMENDMENTS RELATED TO SECTION 1335.— 
(1) Paragraph (1) of section 25D(b) is amended by inserting 
‘‘(determined without regard to subsection (c))’’ after ‘‘subsection 
(a)’’. 
(2) Subparagraphs (A) and (B) of section 25D(e)(4) are 
amended to read as follows: 
‘‘(A) MAXIMUM EXPENDITURES.—The maximum amount 
of expenditures which may be taken into account under 
subsection (a) by all such individuals with respect to such 
dwelling unit during such calendar year shall be— 
‘‘(i) $6,667 in the case of any qualified photovoltaic 
property expenditures, 
‘‘(ii) $6,667 in the case of any qualified solar water 
heating property expenditures, and 
‘‘(iii) $1,667 in the case of each half kilowatt of 
capacity of qualified fuel cell property (as defined in 
section 48(c)(1)) for which qualified fuel cell property 
expenditures are made. 
‘‘(B) ALLOCATION OF EXPENDITURES.—The expenditures 
allocated to any individual for the taxable year in which 
such calendar year ends shall be an amount equal to the 
lesser of— 
‘‘(i) the amount of expenditures made by such indi-
vidual with respect to such dwelling during such cal-
endar year, or 
‘‘(ii) the maximum amount of such expenditures 
set forth in subparagraph (A) multiplied by a fraction— 
‘‘(I) the numerator of which is the amount 
of such expenditures with respect to such dwelling 
made by such individual during such calendar 
year, and 
‘‘(II) the denominator of which is the total 
expenditures made by all such individuals with 
respect to such dwelling during such calendar 
year.’’. 
(3)(A)(i) The matter preceding subparagraph (A) of section 
23(b)(4) is amended by striking ‘‘The credit’’ and inserting ‘‘In 
the case of a taxable year to which section 26(a)(2) does not 
apply, the credit’’. 
(ii) Subsection (c) of section 23 is amended to read as 
follows: 
‘‘(c) CARRYFORWARDS OF UNUSED CREDIT.— 
‘‘(1) RULE
FOR
YEARS
IN
WHICH
ALL
PERSONAL
CREDITS 
ALLOWED AGAINST REGULAR AND ALTERNATIVE MINIMUM TAX.—
In the case of a taxable year to which section 26(a)(2) applies, 
if the credit allowable under subsection (a) for any taxable 
year exceeds the limitation imposed by section 26(a)(2) for 
such taxable year reduced by the sum of the credits allowable 
under this subpart (other than this section and sections 25D 
and 1400C), such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under subsection 
(a) for such taxable year. 
‘‘(2) RULE FOR OTHER YEARS.—In the case of a taxable 
year to which section 26(a)(2) does not apply, if the credit 
allowable under subsection (a) for any taxable year exceeds 
the limitation imposed by subsection (b)(4) for such taxable 
year, such excess shall be carried to the succeeding taxable
H. R. 4440—37
year and added to the credit allowable under subsection (a) 
for such taxable year. 
‘‘(3) LIMITATION.—No credit may be carried forward under 
this subsection to any taxable year following the fifth taxable 
year after the taxable year in which the credit arose. For 
purposes of the preceding sentence, credits shall be treated 
as used on a first-in first-out basis.’’. 
(B)(i) The matter preceding subparagraph (A) of section 
24(b)(3) is amended by striking ‘‘The credit’’ and inserting ‘‘In 
the case of a taxable year to which section 26(a)(2) does not 
apply, the credit’’. 
(ii) Paragraph (1) of section 24(d) is amended to read as 
follows: 
‘‘(1) IN GENERAL.—The aggregate credits allowed to a tax-
payer under subpart C shall be increased by the lesser of— 
‘‘(A) the credit which would be allowed under this 
section without regard to this subsection and the limitation 
under section 26(a)(2) or subsection (b)(3), as the case may 
be, or 
‘‘(B) the amount by which the aggregate amount of 
credits allowed by this subpart (determined without regard 
to this subsection) would increase if the limitation imposed 
by section 26(a)(2) or subsection (b)(3), as the case may 
be, were increased by the excess (if any) of— 
‘‘(i) 15 percent of so much of the taxpayer’s earned 
income (within the meaning of section 32) which is 
taken into account in computing taxable income for 
the taxable year as exceeds $10,000, or 
‘‘(ii) in the case of a taxpayer with 3 or more 
qualifying children, the excess (if any) of— 
‘‘(I) the taxpayer’s social security taxes for the 
taxable year, over 
‘‘(II) the credit allowed under section for the 
taxable year. 
The amount of the credit allowed under this subsection shall 
not be treated as a credit allowed under this subpart and 
shall reduce the amount of credit otherwise allowable under 
subsection (a) without regard to section 26(a)(2) or subsection 
(b)(3), as the case may be. For purposes of subparagraph (B), 
any amount excluded from gross income by reason of section 
112 shall be treated as earned income which is taken into 
account in computing taxable income for the taxable year.’’. 
(C) Subparagraph (C) of section 25(e)(1) is amended to 
read as follows: 
‘‘(C) APPLICABLE TAX LIMIT.—For purposes of this para-
graph, the term ‘applicable tax limit’ means— 
‘‘(i) in the case of a taxable year to which section 
26(a)(2) applies, the limitation imposed by section 
26(a)(2) for the taxable year reduced by the sum of 
the credits allowable under this subpart (other than 
this section and sections 23, 25D, and 1400C), and 
‘‘(ii) in the case of a taxable year to which section 
26(a)(2) does not apply, the limitation imposed by sec-
tion 26(a)(1) for the taxable year reduced by the sum 
of the credits allowable under this subpart (other than 
this section and sections 23, 24, 25B, 25D, and 
1400C).’’.
H. R. 4440—38
(D) The matter preceding paragraph (1) of section 25B(g) 
is amended by striking ‘‘The credit’’ and inserting ‘‘In the case 
of a taxable year to which section 26(a)(2) does not apply, 
the credit’’. 
(E) Subsection (c) of section 25D is amended to read as 
follows: 
‘‘(c) CARRYFORWARD OF UNUSED CREDIT.— 
‘‘(1) RULE
FOR
YEARS
IN
WHICH
ALL
PERSONAL
CREDITS 
ALLOWED AGAINST REGULAR AND ALTERNATIVE MINIMUM TAX.—
In the case of a taxable year to which section 26(a)(2) applies, 
if the credit allowable under subsection (a) exceeds the limita-
tion imposed by section 26(a)(2) for such taxable year reduced 
by the sum of the credits allowable under this subpart (other 
than this section), such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under subsection 
(a) for such succeeding taxable year. 
‘‘(2) RULE FOR OTHER YEARS.—In the case of a taxable 
year to which section 26(a)(2) does not apply, if the credit 
allowable under subsection (a) exceeds the limitation imposed 
by section 26(a)(1) for such taxable year reduced by the sum 
of the credits allowable under this subpart (other than this 
section and sections 23, 24, and 25B), such excess shall be 
carried to the succeeding taxable year and added to the credit 
allowable under subsection (a) for such succeeding taxable 
year.’’. 
(F) Subsection (d) of section 1400C is amended to read 
as follows: 
‘‘(d) CARRYFORWARD OF UNUSED CREDIT.— 
‘‘(1) RULE
FOR
YEARS
IN
WHICH
ALL
PERSONAL
CREDITS 
ALLOWED AGAINST REGULAR AND ALTERNATIVE MINIMUM TAX.—
In the case of a taxable year to which section 26(a)(2) applies, 
if the credit allowable under subsection (a) exceeds the limita-
tion imposed by section 26(a)(2) for such taxable year reduced 
by the sum of the credits allowable under subpart A of part 
IV of subchapter A (other than this section and section 25D), 
such excess shall be carried to the succeeding taxable year 
and added to the credit allowable under subsection (a) for 
such taxable year. 
‘‘(2) RULE FOR OTHER YEARS.—In the case of a taxable 
year to which section 26(a)(2) does not apply, if the credit 
allowable under subsection (a) exceeds the limitation imposed 
by section 26(a)(1) for such taxable year reduced by the sum 
of the credits allowable under subpart A of part IV of sub-
chapter A (other than this section and sections 23, 24, 25B, 
and 25D), such excess shall be carried to the succeeding taxable 
year and added to the credit allowable under subsection (a) 
for such taxable year.’’. 
(G) Subsection (i) of section 904 is amended to read as 
follows: 
‘‘(i) 
COORDINATION
WITH
NONREFUNDABLE
PERSONAL 
CREDITS.—In the case of any taxable year of an individual to 
which section 26(a)(2) does not apply, for purposes of subsection 
(a), the tax against which the credit is taken is such tax reduced 
by the sum of the credits allowable under subpart A of part IV 
of subchapter A of this chapter (other than sections 23, 24, and 
25B).’’.
H. R. 4440—39
(H) APPLICATION
OF
EGTRRA
SUNSET.—The amendments 
made by this paragraph (and each part thereof) shall be subject 
to title IX of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 in the same manner as the provisions of such 
Act to which such amendment (or part thereof) relates. 
(4) Subsection (b) of section 1335 of the Energy Policy 
Act of 2005 is amended by striking paragraphs (1), (2), and 
(3). The Internal Revenue Code of 1986 shall be applied and 
administered as if the amendments made such paragraphs 
had never been enacted. 
(j) AMENDMENT RELATED TO SECTION 1341.—Paragraph (6) of 
section 30B(h) is amended by adding at the end the following 
sentence: ‘‘For purposes of subsection (g), property to which this 
paragraph applies shall be treated as of a character subject to 
an allowance for depreciation.’’. 
(k) AMENDMENT RELATED
TO SECTION 1342.—Paragraph (2) 
of section 30C(e) is amended by adding at the end the following 
sentence: ‘‘For purposes of subsection (d), property to which this 
paragraph applies shall be treated as of a character subject to 
an allowance for depreciation.’’. 
(l) AMENDMENTS RELATED TO SECTION 1351.— 
(1) Paragraph (6) of section 41(f) (relating to special rules) 
is amended by adding at the end the following: 
‘‘(C) FOREIGN RESEARCH.—For purposes of subsection 
(a)(3), amounts paid or incurred for any energy research 
conducted outside the United States, the Commonwealth 
of Puerto Rico, or any possession of the United States 
shall not be taken into account. 
‘‘(D) DENIAL OF DOUBLE BENEFIT.—Any amount taken 
into account under subsection (a)(3) shall not be taken 
into account under paragraph (1) or (2) of subsection (a).’’. 
(2) Clause (ii) of section 41(b)(3)(C) is amended by striking 
‘‘(other than an energy research consortium)’’. 
(m) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as provided in paragraphs (2) 
and (3), the amendments made by this section shall take effect 
as if included in the provisions of the Energy Policy Act of 
2005 to which they relate. 
(2) REPEAL OF PUBLIC UTILITY HOLDING COMPANY ACT OF 
1935.—The amendments made by subsection (a) shall not apply 
with respect to any transaction ordered in compliance with 
the Public Utility Holding Company Act of 1935 before its 
repeal. 
(3) COORDINATION
OF
PERSONAL
CREDITS.—The amend-
ments made by subsection (i)(3) shall apply to taxable years 
beginning after December 31, 2005. 
SEC. 403. AMENDMENTS RELATED TO THE AMERICAN JOBS CREATION 
ACT OF 2004. 
(a) AMENDMENTS RELATED TO SECTION 102 OF THE ACT.— 
(1) Paragraph (1) of section 199(b) is amended by striking 
‘‘the employer’’ and inserting ‘‘the taxpayer’’. 
(2) Paragraph (2) of section 199(b) is amended to read 
as follows: 
‘‘(2) W–2 WAGES.—For purposes of this section, the term 
‘W–2 wages’ means, with respect to any person for any taxable 
year of such person, the sum of the amounts described in
H. R. 4440—40
paragraphs (3) and (8) of section 6051(a) paid by such person 
with respect to employment of employees by such person during 
the calendar year ending during such taxable year. Such term 
shall not include any amount which is not properly included 
in a return filed with the Social Security Administration on 
or before the 60th day after the due date (including extensions) 
for such return.’’. 
(3) Subparagraph (B) of section 199(c)(1) is amended by 
inserting ‘‘and’’ at the end of clause (i), by striking clauses 
(ii) and (iii), and by inserting after clause (i) the following: 
‘‘(ii) other expenses, losses, or deductions (other 
than the deduction allowed under this section), which 
are properly allocable to such receipts.’’. 
(4) Paragraph (2) of section 199(c) is amended to read 
as follows: 
‘‘(2) ALLOCATION METHOD.—The Secretary shall prescribe 
rules for the proper allocation of items described in paragraph 
(1) for purposes of determining qualified production activities 
income. Such rules shall provide for the proper allocation of 
items whether or not such items are directly allocable to 
domestic production gross receipts.’’. 
(5) Subparagraph (A) of section 199(c)(4) is amended by 
striking clauses (ii) and (iii) and inserting the following new 
clauses: 
‘‘(ii) in the case of a taxpayer engaged in the active 
conduct of a construction trade or business, construc-
tion of real property performed in the United States 
by the taxpayer in the ordinary course of such trade 
or business, or 
‘‘(iii) in the case of a taxpayer engaged in the 
active conduct of an engineering or architectural serv-
ices trade or business, engineering or architectural 
services performed in the United States by the tax-
payer in the ordinary course of such trade or business 
with respect to the construction of real property in 
the United States.’’. 
(6) Subparagraph (B) of section 199(c)(4) is amended by 
striking ‘‘and’’ at the end of clause (i), by striking the period 
at the end of clause (ii) and inserting ‘‘, or’’, and by adding 
at the end the following: 
‘‘(iii) the lease, rental, license, sale, exchange, or 
other disposition of land.’’. 
(7) Paragraph (4) of section 199(c) is amended by adding 
at the end the following new subparagraphs: 
‘‘(C) SPECIAL
RULE
FOR
CERTAIN
GOVERNMENT
CON-
TRACTS.—Gross receipts derived from the manufacture or 
production of any property described in subparagraph 
(A)(i)(I) shall be treated as meeting the requirements of 
subparagraph (A)(i) if— 
‘‘(i) such property is manufactured or produced 
by the taxpayer pursuant to a contract with the Federal 
Government, and 
‘‘(ii) the Federal Acquisition Regulation requires 
that title or risk of loss with respect to such property 
be transferred to the Federal Government before the 
manufacture or production of such property is com-
plete.
H. R. 4440—41
‘‘(D) PARTNERSHIPS OWNED BY EXPANDED AFFILIATED 
GROUPS.—For purposes of this paragraph, if all of the 
interests in the capital and profits of a partnership are 
owned by members of a single expanded affiliated group 
at all times during the taxable year of such partnership, 
the partnership and all members of such group shall be 
treated as a single taxpayer during such period.’’. 
(8) Paragraph (1) of section 199(d) is amended to read 
as follows: 
‘‘(1) APPLICATION
OF
SECTION
TO
PASS-THRU
ENTITIES.— 
‘‘(A) PARTNERSHIPS AND S CORPORATIONS.—In the case 
of a partnership or S corporation— 
‘‘(i) this section shall be applied at the partner 
or shareholder level, 
‘‘(ii) each partner or shareholder shall take into 
account such person’s allocable share of each item 
described in subparagraph (A) or (B) of subsection 
(c)(1) (determined without regard to whether the items 
described in such subparagraph (A) exceed the items 
described in such subparagraph (B)), and 
‘‘(iii) each partner or shareholder shall be treated 
for purposes of subsection (b) as having W–2 wages 
for the taxable year in an amount equal to the lesser 
of— 
‘‘(I) such person’s allocable share of the W–
2 wages of the partnership or S corporation for 
the taxable year (as determined under regulations 
prescribed by the Secretary), or 
‘‘(II) 2 times 9 percent of so much of such 
person’s qualified production activities income as 
is attributable to items allocated under clause (ii) 
for the taxable year. 
‘‘(B) TRUSTS AND ESTATES.—In the case of a trust or 
estate— 
‘‘(i) the items referred to in subparagraph (A)(ii) 
(as determined therein) and the W–2 wages of the 
trust or estate for the taxable year, shall be appor-
tioned between the beneficiaries and the fiduciary (and 
among the beneficiaries) under regulations prescribed 
by the Secretary, and 
‘‘(ii) for purposes of paragraph (2), adjusted gross 
income of the trust or estate shall be determined as 
provided in section 67(e) with the adjustments 
described in such paragraph. 
‘‘(C) REGULATIONS.—The Secretary may prescribe rules 
requiring or restricting the allocation of items and wages 
under this paragraph and may prescribe such reporting 
requirements as the Secretary determines appropriate.’’. 
(9) Paragraph (3) of section 199(d) is amended to read 
as follows: 
‘‘(3) AGRICULTURAL AND HORTICULTURAL COOPERATIVES.— 
‘‘(A) DEDUCTION ALLOWED TO PATRONS.—Any person 
who receives a qualified payment from a specified agricul-
tural or horticultural cooperative shall be allowed for the 
taxable year in which such payment is received a deduction 
under subsection (a) equal to the portion of the deduction
H. R. 4440—42
allowed under subsection (a) to such cooperative which 
is— 
‘‘(i) allowed with respect to the portion of the quali-
fied production activities income to which such pay-
ment is attributable, and 
‘‘(ii) identified by such cooperative in a written 
notice mailed to such person during the payment period 
described in section 1382(d). 
‘‘(B) COOPERATIVE DENIED DEDUCTION FOR PORTION OF 
QUALIFIED PAYMENTS.—The taxable income of a specified 
agricultural or horticultural cooperative shall not be 
reduced under section 1382 by reason of that portion of 
any qualified payment as does not exceed the deduction 
allowable under subparagraph (A) with respect to such 
payment. 
‘‘(C) TAXABLE INCOME OF COOPERATIVES DETERMINED 
WITHOUT REGARD TO CERTAIN DEDUCTIONS.—For purposes 
of this section, the taxable income of a specified agricultural 
or horticultural cooperative shall be computed without 
regard to any deduction allowable under subsection (b) 
or (c) of section 1382 (relating to patronage dividends, 
per-unit retain allocations, and nonpatronage distribu-
tions). 
‘‘(D) SPECIAL RULE FOR MARKETING COOPERATIVES.—
For purposes of this section, a specified agricultural or 
horticultural cooperative described in subparagraph (F)(ii) 
shall be treated as having manufactured, produced, grown, 
or extracted in whole or significant part any qualifying 
production property marketed by the organization which 
its patrons have so manufactured, produced, grown, or 
extracted. 
‘‘(E) QUALIFIED PAYMENT.—For purposes of this para-
graph, the term ‘qualified payment’ means, with respect 
to any person, any amount which— 
‘‘(i) is described in paragraph (1) or (3) of section 
1385(a), 
‘‘(ii) is received by such person from a specified 
agricultural or horticultural cooperative, and 
‘‘(iii) is attributable to qualified production activi-
ties income with respect to which a deduction is 
allowed to such cooperative under subsection (a). 
‘‘(F) SPECIFIED
AGRICULTURAL
OR
HORTICULTURAL 
COOPERATIVE.—For purposes of this paragraph, the term 
‘specified agricultural or horticultural cooperative’ means 
an organization to which part I of subchapter T applies 
which is engaged— 
‘‘(i) in the manufacturing, production, growth, or 
extraction in whole or significant part of any agricul-
tural or horticultural product, or 
‘‘(ii) in the marketing of agricultural or horti-
cultural products.’’. 
(10) Clause (i) of section 199(d)(4)(B) is amended— 
(A) by striking ‘‘50 percent’’ and inserting ‘‘more than 
50 percent’’, and 
(B) by striking ‘‘80 percent’’ and inserting ‘‘at least 
80 percent’’.
H. R. 4440—43
(11)(A) Paragraph (6) of section 199(d) is amended to read 
as follows: 
‘‘(6) COORDINATION WITH MINIMUM TAX.—For purposes of 
determining alternative minimum taxable income under section 
55— 
‘‘(A) qualified production activities income shall be 
determined without regard to any adjustments under sec-
tions 56 through 59, and 
‘‘(B) in the case of a corporation, subsection (a)(1)(B) 
shall be applied by substituting ‘alternative minimum tax-
able income’ for ‘taxable income’.’’. 
(B) Paragraph (2) of section 199(a) is amended by striking 
‘‘subsections (d)(1) and (d)(6)’’ and inserting ‘‘subsection (d)(1)’’. 
(12) Subsection (d) of section 199 is amended by redesig-
nating paragraph (7) as paragraph (8) and by inserting after 
paragraph (6) the following new paragraph: 
‘‘(7) UNRELATED BUSINESS TAXABLE INCOME.—For purposes 
of determining the tax imposed by section 511, subsection 
(a)(1)(B) shall be applied by substituting ‘unrelated business 
taxable income’ for ‘taxable income’.’’. 
(13) Paragraph (8) of section 199(d), as redesignated by 
paragraph (12), is amended by inserting ‘‘, including regulations 
which prevent more than 1 taxpayer from being allowed a 
deduction under this section with respect to any activity 
described in subsection (c)(4)(A)(i)’’ before the period at the 
end. 
(14) Clauses (i)(II) and (ii)(II) of section 56(d)(1)(A) are 
each amended by striking ‘‘such deduction’’ and inserting ‘‘such 
deduction and the deduction under section 199’’. 
(15) Clause (i) of section 163(j)(6)(A) is amended by striking 
‘‘and’’ at the end of subclause (II), by redesignating subclause 
(III) as subclause (IV), and by inserting after subclause (II) 
the following new subclause: 
‘‘(III) any deduction allowable under section 
199, and’’. 
(16) Paragraph (2) of section 170(b) is amended by redesig-
nating subparagraphs (C) and (D) as subparagraphs (D) and 
(E), respectively, and by inserting after subparagraph (B) the 
following new subparagraph: 
‘‘(C) section 199,’’. 
(17) Subsection (d) of section 172 is amended by adding 
at the end the following new paragraph: 
‘‘(7) MANUFACTURING
DEDUCTION.—The deduction under 
section 199 shall not be allowed.’’. 
(18) Paragraph (1) of section 613A(d) is amended by 
redesignating subparagraphs (B), (C), and (D) as subparagraphs 
(C), (D), and (E), respectively, and by inserting after subpara-
graph (A) the following new subparagraph: 
‘‘(B) any deduction allowable under section 199,’’. 
(19) Subsection (e) of section 102 of the American Jobs 
Creation Act of 2004 is amended to read as follows: 
‘‘(e) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2004. 
‘‘(2) APPLICATION TO PASS-THRU ENTITIES, ETC.—In deter-
mining the deduction under section 199 of the Internal Revenue 
Code of 1986 (as added by this section), items arising from
H. R. 4440—44
a taxable year of a partnership, S corporation, estate, or trust 
beginning before January 1, 2005, shall not be taken into 
account for purposes of subsection (d)(1) of such section.’’. 
(b) AMENDMENT RELATED TO SECTION 231 OF THE ACT.—Para-
graph (1) of section 1361(c) is amended to read as follows: 
‘‘(1) MEMBERS OF A FAMILY TREATED AS 1 SHAREHOLDER.— 
‘‘(A) IN GENERAL.—For purposes of subsection (b)(1)(A), 
there shall be treated as one shareholder— 
‘‘(i) a husband and wife (and their estates), and 
‘‘(ii) all members of a family (and their estates). 
‘‘(B) MEMBERS OF A FAMILY.—For purposes of this para-
graph— 
‘‘(i) IN GENERAL.—The term ‘members of a family’ 
means a common ancestor, any lineal descendant of 
such common ancestor, and any spouse or former 
spouse of such common ancestor or any such lineal 
descendant. 
‘‘(ii) COMMON ANCESTOR.—An individual shall not 
be considered to be a common ancestor if, on the 
applicable date, the individual is more than 6 genera-
tions removed from the youngest generation of share-
holders who would (but for this subparagraph) be mem-
bers of the family. For purposes of the preceding sen-
tence, a spouse (or former spouse) shall be treated 
as being of the same generation as the individual to 
whom such spouse is (or was) married. 
‘‘(iii) APPLICABLE DATE.—The term ‘applicable date’ 
means the latest of— 
‘‘(I) the date the election under section 1362(a) 
is made, 
‘‘(II) the earliest date that an individual 
described in clause (i) holds stock in the S corpora-
tion, or 
‘‘(III) October 22, 2004. 
‘‘(C) EFFECT OF ADOPTION, ETC.—Any legally adopted 
child of an individual, any child who is lawfully placed 
with an individual for legal adoption by the individual, 
and any eligible foster child of an individual (within the 
meaning of section 152(f)(1)(C)), shall be treated as a child 
of such individual by blood.’’. 
(c) AMENDMENT RELATED TO SECTION 235 OF THE ACT.—Sub-
section (b) of section 235 of the American Jobs Creation Act of 
2004 is amended by striking ‘‘taxable years beginning’’ and inserting 
‘‘transfers’’. 
(d) AMENDMENTS RELATED
TO SECTION 243 OF
THE ACT.— 
(1) Paragraph (7) of section 856(c) is amended to read 
as follows: 
‘‘(7) RULES OF APPLICATION FOR FAILURE TO SATISFY PARA-
GRAPH (4).— 
‘‘(A) IN GENERAL.—A corporation, trust, or association 
that fails to meet the requirements of paragraph (4) (other 
than a failure to meet the requirements of paragraph 
(4)(B)(iii) which is described in subparagraph (B)(i) of this 
paragraph) for a particular quarter shall nevertheless be 
considered to have satisfied the requirements of such para-
graph for such quarter if—
H. R. 4440—45
‘‘(i) following the corporation, trust, or association’s 
identification of the failure to satisfy the requirements 
of such paragraph for a particular quarter, a descrip-
tion of each asset that causes the corporation, trust, 
or association to fail to satisfy the requirements of 
such paragraph at the close of such quarter of any 
taxable year is set forth in a schedule for such quarter 
filed in accordance with regulations prescribed by the 
Secretary, 
‘‘(ii) the failure to meet the requirements of such 
paragraph for a particular quarter is due to reasonable 
cause and not due to willful neglect, and 
‘‘(iii)(I) the corporation, trust, or association dis-
poses of the assets set forth on the schedule specified 
in clause (i) within 6 months after the last day of 
the quarter in which the corporation, trust or associa-
tion’s identification of the failure to satisfy the require-
ments of such paragraph occurred or such other time 
period prescribed by the Secretary and in the manner 
prescribed by the Secretary, or 
‘‘(II) the requirements of such paragraph are other-
wise met within the time period specified in subclause 
(I). 
‘‘(B) RULE FOR CERTAIN DE MINIMIS FAILURES.—A cor-
poration, trust, or association that fails to meet the require-
ments of paragraph (4)(B)(iii) for a particular quarter shall 
nevertheless be considered to have satisfied the require-
ments of such paragraph for such quarter if— 
‘‘(i) such failure is due to the ownership of assets 
the total value of which does not exceed the lesser 
of— 
‘‘(I) 1 percent of the total value of the trust’s 
assets at the end of the quarter for which such 
measurement is done, and 
‘‘(II) $10,000,000, and 
‘‘(ii)(I) the corporation, trust, or association, fol-
lowing the identification of such failure, disposes of 
assets in order to meet the requirements of such para-
graph within 6 months after the last day of the quarter 
in which the corporation, trust or association’s identi-
fication of the failure to satisfy the requirements of 
such paragraph occurred or such other time period 
prescribed by the Secretary and in the manner pre-
scribed by the Secretary, or 
‘‘(II) the requirements of such paragraph are other-
wise met within the time period specified in subclause 
(I). 
‘‘(C) TAX.— 
‘‘(i) TAX IMPOSED.—If subparagraph (A) applies to 
a corporation, trust, or association for any taxable year, 
there is hereby imposed on such corporation, trust, 
or association a tax in an amount equal to the greater 
of— 
‘‘(I) $50,000, or 
‘‘(II) the amount determined (pursuant to regu-
lations promulgated by the Secretary) by multi-
plying the net income generated by the assets
H. R. 4440—46
described in the schedule specified in subpara-
graph (A)(i) for the period specified in clause (ii) 
by the highest rate of tax specified in section 11. 
‘‘(ii) PERIOD.—For purposes of clause (i)(II), the 
period described in this clause is the period beginning 
on the first date that the failure to satisfy the require-
ments of such paragraph (4) occurs as a result of 
the ownership of such assets and ending on the earlier 
of the date on which the trust disposes of such assets 
or the end of the first quarter when there is no longer 
a failure to satisfy such paragraph (4). 
‘‘(iii) ADMINISTRATIVE
PROVISIONS.—For purposes 
of subtitle F, the taxes imposed by this subparagraph 
shall be treated as excise taxes with respect to which 
the deficiency procedures of such subtitle apply.’’. 
(2) Subsection (m) of section 856 is amended by adding 
at the end the following new paragraph: 
‘‘(6) TRANSITION RULE.— 
‘‘(A) IN GENERAL.—Notwithstanding paragraph (2)(C), 
securities held by a trust shall not be considered securities 
held by the trust for purposes of subsection (c)(4)(B)(iii)(III) 
during any period beginning on or before October 22, 2004, 
if such securities— 
‘‘(i) are held by such trust continuously during 
such period, and 
‘‘(ii) would not be taken into account for purposes 
of such subsection by reason of paragraph (7)(C) of 
subsection (c) (as in effect on October 22, 2004) if 
the amendments made by section 243 of the American 
Jobs Creation Act of 2004 had never been enacted. 
‘‘(B) RULE NOT TO APPLY TO SECURITIES HELD AFTER 
MATURITY DATE.—Subparagraph (A) shall not apply with 
respect to any security after the later of October 22, 2004, 
or the latest maturity date under the contract (as in effect 
on October 22, 2004) taking into account any renewal or 
extension permitted under the contract if such renewal 
or extension does not significantly modify any other terms 
of the contract. 
‘‘(C) SUCCESSORS.—If the successor of a trust to which 
this paragraph applies acquires securities in a transaction 
to which section 381 applies, such trusts shall be treated 
as a single entity for purposes of determining the holding 
period of such securities under subparagraph (A).’’. 
(3) Subparagraph (E) of section 857(b)(2) is amended by 
striking ‘‘section 856(c)(7)(B)(iii), and section 856(g)(1).’’ and 
inserting ‘‘section 856(c)(7)(C), and section 856(g)(5)’’. 
(4) Subsection (g) of section 243 of the American Jobs 
Creation Act of 2004 is amended to read as follows: 
‘‘(g) EFFECTIVE DATES.— 
‘‘(1) SUBSECTIONS (a) AND (b).—The amendments made by 
subsections (a) and (b) shall apply to taxable years beginning 
after December 31, 2000. 
‘‘(2) SUBSECTIONS (c) AND (e).—The amendments made by 
subsections (c) and (e) shall apply to taxable years beginning 
after the date of the enactment of this Act.
H. R. 4440—47
‘‘(3) SUBSECTION (d).—The amendment made by subsection 
(d) shall apply to transactions entered into after December 
31, 2004. 
‘‘(4) SUBSECTION (f).— 
‘‘(A) The amendment made by paragraph (1) of sub-
section (f) shall apply to failures with respect to which 
the requirements of subparagraph (A) or (B) of section 
856(c)(7) of the Internal Revenue Code of 1986 (as added 
by such paragraph) are satisfied after the date of the 
enactment of this Act. 
‘‘(B) The amendment made by paragraph (2) of sub-
section (f) shall apply to failures with respect to which 
the requirements of paragraph (6) of section 856(c) of the 
Internal Revenue Code of 1986 (as amended by such para-
graph) are satisfied after the date of the enactment of 
this Act. 
‘‘(C) The amendments made by paragraph (3) of sub-
section (f) shall apply to failures with respect to which 
the requirements of paragraph (5) of section 856(g) of the 
Internal Revenue Code of 1986 (as added by such para-
graph) are satisfied after the date of the enactment of 
this Act. 
‘‘(D) The amendment made by paragraph (4) of sub-
section (f) shall apply to taxable years ending after the 
date of the enactment of this Act. 
‘‘(E) The amendments made by paragraph (5) of sub-
section (f) shall apply to statements filed after the date 
of the enactment of this Act.’’. 
(e) AMENDMENTS RELATED TO SECTION 244 OF THE ACT.— 
(1) Paragraph (2) of section 181(d) is amended by striking 
the last sentence in subparagraph (A), by redesignating 
subparagraph (B) as subparagraph (C), and by inserting after 
subparagraph (A) the following new subparagraph: 
‘‘(B) SPECIAL RULES FOR TELEVISION SERIES.—In the 
case of a television series— 
‘‘(i) each episode of such series shall be treated 
as a separate production, and 
‘‘(ii) only the first 44 episodes of such series shall 
be taken into account.’’. 
(2) Subparagraph (C) of section 1245(a)(2) is amended by 
inserting ‘‘181,’’ after ‘‘179B,’’. 
(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 taxpayer as of the close of 
the taxable year, and 
‘‘(ii) the number of miles of railroad track assigned 
for purposes of this subsection 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 taxable 
year.
H. R. 4440—48
‘‘(2) ASSIGNMENTS.—With respect to any assignment of a 
mile of railroad track under paragraph (1)(B)(ii)— 
‘‘(A) such assignment may be made only once per tax-
able year of the Class II or Class III railroad and shall 
be treated as made as of the close of such taxable year, 
‘‘(B) such mile may not be taken into account under 
this section by such railroad for such taxable year, and 
‘‘(C) such assignment shall be taken into account 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 respect to miles of railroad track 
assigned to such person by such Class II or Class III railroad 
for purposes 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 inserting ‘‘ownership, 
charter, and operating agreement interests’’. 
(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 paragraph (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 pursu-
ant 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 oper-
ating agreement interest in any vessel operated by the partner-
ship 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 
(B) by adding at the end of paragraph (2) the following 
new flush sentence: 
‘‘Such term shall not include any core qualifying activities.’’. 
(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.—Para-
graph (2) of section 55(c) is amended by striking ‘‘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:
H. R. 4440—49
‘‘(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 section 7703), $5,000, and 
‘‘(iii) in the case of a trust, zero.’’. 
(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 beneficiary 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 amended by striking 
‘‘subparagraphs (B) and (C)’’ and inserting ‘‘subparagraph (B) 
or (C)’’. 
(2) Clause (iii) of section 168(k)(4)(B) is amended by striking 
‘‘and paragraph (2)(C)’’ and inserting ‘‘or paragraph (2)(C) (as 
so modified)’’. 
(k) AMENDMENT RELATED TO SECTION 402 OF THE ACT.—Para-
graph (2) of section 904(g) is amended to read as follows: 
‘‘(2) OVERALL DOMESTIC LOSS.—For purposes of this sub-
section— 
‘‘(A) IN
GENERAL.—The term ‘overall domestic loss’ 
means— 
‘‘(i) with respect to any qualified taxable 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 reason 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 (determined with-
out regard to any carryback from a subsequent taxable 
year). 
‘‘(C) QUALIFIED
TAXABLE
YEAR.—For purposes 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:
H. R. 4440—50
‘‘(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 subsection 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 appears.’’. 
(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 interest 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 shareholder under section 951(a). In the 
case of any corporation the accumulated taxable income of 
which would (but for this sentence) be determined without 
allowance of any deductions, the deduction under this para-
graph shall be allowed and shall be appropriately adjusted 
to take into account any deductions which reduced such inclu-
sion.’’. 
(3)(A) Section 6683 is repealed. 
(B) The table of sections for part I of subchapter B of 
chapter 68 is amended by striking the item relating 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 inserting ‘‘any distribution 
by a real estate investment trust with respect to any class 
of stock’’, and 
(B) by striking ‘‘the taxable year’’ and inserting ‘‘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 follows: 
‘‘(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to— 
‘‘(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 enactment of this Act, 
and
H. R. 4440—51
‘‘(2) any distribution by a real estate investment trust 
made after such date which is treated as a deduction 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 foreign 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 purposes of this paragraph, including 
regulations which provide that cash dividends shall not be 
taken into account under subsection (a) to the extent such 
dividends are attributable to the direct or indirect transfer 
(including through the use of intervening entities or capital 
contributions) of cash or other property from a related person 
(as so defined) to a controlled foreign corporation.’’. 
(4) Paragraph (1) of section 965(c) is amended to read 
as follows: 
‘‘(1) 
APPLICABLE
FINANCIAL
STATEMENT.—The 
term 
‘applicable financial statement’ means— 
‘‘(A) with respect to a United States shareholder which 
is required to file a financial statement with the Securities 
and Exchange Commission (or which is included in such 
a statement so filed by another person), the most recent 
audited annual financial statement (including the notes 
which form an integral part of such statement) of such 
shareholder (or which includes such shareholder)— 
‘‘(i) which was so filed on or before June 30, 2003, 
and 
‘‘(ii) which was certified on or before June 30, 
2003, as being prepared in accordance with generally 
accepted accounting principles, and 
‘‘(B) with respect to any other United States share-
holder, the most recent audited financial statement 
(including the notes which form an integral part of such 
statement) of such shareholder (or which includes such 
shareholder)— 
‘‘(i) which was certified on or before June 30, 2003, 
as being prepared in accordance with generally 
accepted accounting principles, and 
‘‘(ii) which is used for the purposes of a statement 
or report— 
‘‘(I) to creditors, 
‘‘(II) to shareholders, or 
‘‘(III) for any other substantial nontax pur-
pose.’’. 
(5) Paragraph (2) of section 965(d) is amended by striking 
‘‘properly allocated and apportioned’’ and inserting ‘‘directly 
allocable’’. 
(6) Subsection (d) of section 965 is amended by adding 
at the end the following new paragraph:
H. R. 4440—52
‘‘(4) COORDINATION WITH SECTION 78.—Section 78 shall not 
apply to any tax which is not allowable as a credit under 
section 901 by reason of this subsection.’’. 
(7) The last sentence of section 965(e)(1) is amended by 
inserting ‘‘which are imposed by foreign countries and posses-
sions of the United States and are’’ after ‘‘taxes’’. 
(8) Subsection (f) of section 965 is amended by inserting 
‘‘on or’’ before ‘‘before the due date’’. 
(r) AMENDMENTS RELATED TO SECTION 501 OF THE ACT.— 
(1) Subparagraph (A) of section 164(b)(5) is amended to 
read as follows: 
‘‘(A) ELECTION
TO
DEDUCT
STATE
AND
LOCAL
SALES 
TAXES IN LIEU OF STATE AND LOCAL INCOME TAXES.—At 
the election of the taxpayer for the taxable year, subsection 
(a) shall be applied— 
‘‘(i) without regard to the reference to State and 
local income taxes, and 
‘‘(ii) as if State and local general sales taxes were 
referred to in a paragraph thereof.’’. 
(2) Clause (ii) of section 56(b)(1)(A) is amended by inserting 
‘‘or clause (ii) of section 164(b)(5)(A)’’ before the period at the 
end. 
(s) AMENDMENTS RELATED TO SECTION 708 OF THE ACT.—Sec-
tion 708 of the American Jobs Creation Act of 2004 is amended— 
(1) in subsection (a), by striking ‘‘contract commencement 
date’’ and inserting ‘‘construction commencement date’’, and 
(2) by redesignating subsection (d) as subsection (e) and 
inserting after subsection (c) the following new subsection: 
‘‘(d) CERTAIN ADJUSTMENTS NOT
TO APPLY.—Section 481 of 
the Internal Revenue Code of 1986 shall not apply with respect 
to any change in the method of accounting which is required by 
this section.’’. 
(t) AMENDMENT RELATED TO SECTION 710 OF THE ACT.—Clause 
(i) of section 45(c)(7)(A) is amended by striking ‘‘synthetic’’. 
(u) AMENDMENT RELATED TO SECTION 801 OF THE ACT.—Para-
graph (3) of section 7874(a) is amended to read as follows: 
‘‘(3) COORDINATION WITH SUBSECTION (b).—A corporation 
which is treated as a domestic corporation under subsection 
(b) shall not be treated as a surrogate foreign corporation 
for purposes of paragraph (2)(A).’’. 
(v) AMENDMENTS RELATED TO SECTION 804 OF THE ACT.— 
(1) Subparagraph (C) of section 877(g)(2) is amended by 
striking ‘‘section 7701(b)(3)(D)(ii)’’ and inserting ‘‘section 
7701(b)(3)(D)’’. 
(2) Subsection (n) of section 7701 is amended to read as 
follows: 
‘‘(n) SPECIAL RULES FOR DETERMINING WHEN AN INDIVIDUAL 
IS NO LONGER A UNITED STATES CITIZEN OR LONG-TERM RESI-
DENT.—For purposes of this chapter— 
‘‘(1) UNITED STATES CITIZENS.—An individual who would 
(but for this paragraph) cease to be treated as a citizen of 
the United States shall continue to be treated as a citizen 
of the United States until such individual— 
‘‘(A) gives notice of an expatriating act (with the req-
uisite intent to relinquish citizenship) to the Secretary 
of State, and
H. R. 4440—53
‘‘(B) provides a statement in accordance with section 
6039G (if such a statement is otherwise required). 
‘‘(2) LONG-TERM
RESIDENTS.—A long-term resident (as 
defined in section 877(e)(2)) who would (but for this paragraph) 
be described in section 877(e)(1) shall be treated as a lawful 
permanent resident of the United States and as not described 
in section 877(e)(1) until such individual— 
‘‘(A) gives notice of termination of residency (with the 
requisite intent to terminate residency) to the Secretary 
of Homeland Security, and 
‘‘(B) provides a statement in accordance with section 
6039G (if such a statement is otherwise required).’’. 
(w) AMENDMENT RELATED TO SECTION 811 OF THE ACT.—Sub-
section (c) of section 811 of the American Jobs Creation Act of 
2004 is amended by inserting ‘‘and which were not filed before 
such date’’ before the period at the end. 
(x) AMENDMENTS RELATED TO SECTION 812 OF THE ACT.— 
(1) Subsection (b) of section 6662 is amended by adding 
at the end the following new sentence: ‘‘Except as provided 
in paragraph (1) or (2)(B) of section 6662A(e), this section 
shall not apply to the portion of any underpayment which 
is attributable to a reportable transaction understatement on 
which a penalty is imposed under section 6662A.’’. 
(2) Paragraph (2) of section 6662A(e) is amended to read 
as follows: 
‘‘(2) COORDINATION WITH OTHER PENALTIES.— 
‘‘(A) COORDINATION WITH FRAUD PENALTY.—This sec-
tion shall not apply to any portion of an understatement 
on which a penalty is imposed under section 6663. 
‘‘(B) 
COORDINATION
WITH
GROSS
VALUATION 
MISSTATEMENT PENALTY.—This section shall not apply to 
any portion of an understatement on which a penalty is 
imposed under section 6662 if the rate of the penalty is 
determined under section 6662(h).’’. 
(3) Subsection (f) of section 812 of the American Jobs Cre-
ation Act of 2004 is amended to read as follows: 
‘‘(f) EFFECTIVE DATES.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
the amendments made by this section shall apply to taxable 
years ending after the date of the enactment of this Act. 
‘‘(2) DISQUALIFIED OPINIONS.—Section 6664(d)(3)(B) of the 
Internal Revenue Code of 1986 (as added by subsection (c)) 
shall not apply to the opinion of a tax advisor if— 
‘‘(A) the opinion was provided to the taxpayer before 
the date of the enactment of this Act, 
‘‘(B) the opinion relates to one or more transactions 
all of which were entered into before such date, and 
‘‘(C) the tax treatment of items relating to each such 
transaction was included on a return or statement filed 
by the taxpayer before such date.’’. 
(y) AMENDMENT RELATED
TO SECTION 814 OF
THE ACT.—
Subparagraph (B) of section 6501(c)(10) is amended by striking 
‘‘(as defined in section 6111)’’. 
(z) AMENDMENT RELATED TO SECTION 815 OF THE ACT.—Para-
graph (1) of section 6112(b) is amended by inserting ‘‘(or was 
required to maintain a list under subsection (a) as in effect before
H. R. 4440—54
the enactment of the American Jobs Creation Act of 2004)’’ after 
‘‘a list under subsection (a)’’. 
(aa) AMENDMENTS RELATED TO SECTION 832 OF THE ACT.— 
(1) Subsection (e) of section 853 is amended to read as 
follows: 
‘‘(e) TREATMENT OF CERTAIN TAXES NOT ALLOWED AS A CREDIT 
UNDER SECTION 901.—This section shall not apply to any tax with 
respect to which the regulated investment company is not allowed 
a credit under section 901 by reason of subsection (k) or (l) of 
such section.’’. 
(2) Clause (i) of section 901(l)(2)(C) is amended by striking 
‘‘if such security were stock’’. 
(bb) AMENDMENTS RELATED TO SECTION 833 OF THE ACT.— 
(1) Subsection (a) of section 734 is amended by inserting 
‘‘with respect to such distribution’’ before the period at the 
end. 
(2) So much of subsection (b) of section 734 as precedes 
paragraph (1) is amended to read as follows: 
‘‘(b) METHOD OF ADJUSTMENT.—In the case of a distribution 
of property to a partner by a partnership with respect to which 
the election provided in section 754 is in effect or with respect 
to which there is a substantial basis reduction, the partnership 
shall—’’. 
(cc) AMENDMENT RELATED TO SECTION 835 OF THE ACT.—Para-
graph (3) of section 860G(a) is amended— 
(1) in subparagraph (A)(iii)(I), by striking ‘‘the obligation’’ 
and inserting ‘‘a reverse mortgage loan or other obligation’’, 
and 
(2) by striking all that follows subparagraph (C) and 
inserting the following: 
‘‘For purposes of subparagraph (A), any obligation secured by 
stock held by a person as a tenant-stockholder (as defined 
in section 216) in a cooperative housing corporation (as so 
defined) shall be treated as secured by an interest in real 
property. For purposes of subparagraph (A), any obligation 
originated by the United States or any State (or any political 
subdivision, agency, or instrumentality of the United States 
or any State) shall be treated as principally secured by an 
interest in real property if more than 50 percent of such obliga-
tions which are transferred to, or purchased by, the REMIC 
are principally secured by an interest in real property (deter-
mined without regard to this sentence).’’. 
(dd) AMENDMENTS RELATED TO SECTION 836 OF THE ACT.— 
(1) Paragraph (1) of section 334(b) is amended by striking 
‘‘except that’’ and all that follows and inserting ‘‘except that, 
in the hands of such distributee— 
‘‘(A) the basis of such property shall be the fair market 
value of the property at the time of the distribution in 
any case in which gain or loss is recognized by the liqui-
dating corporation with respect to such property, and 
‘‘(B) the basis of any property described in section 
362(e)(1)(B) shall be the fair market value of the property 
at the time of the distribution in any case in which such 
distributee’s aggregate adjusted basis of such property 
would (but for this subparagraph) exceed the fair market 
value of such property immediately after such liquidation.’’.
H. R. 4440—55
(2) Clause (ii) of section 362(e)(2)(C) is amended to read 
as follows: 
‘‘(ii) ELECTION.—Any election under clause (i) shall 
be made at such time and in such form and manner 
as the Secretary may prescribe, and, once made, shall 
be irrevocable.’’. 
(ee) AMENDMENT RELATED TO SECTION 840 OF THE ACT.—Sub-
section (d) of section 121 is amended— 
(1) by redesignating the paragraph (10) relating to property 
acquired from a decedent as paragraph (11) and by moving 
such paragraph to the end of such subsection, and 
(2) by amending the paragraph (10) relating to property 
acquired in like-kind exchange to read as follows: 
‘‘(10) PROPERTY ACQUIRED IN LIKE-KIND EXCHANGE.—If a 
taxpayer acquires property in an exchange with respect to 
which gain is not recognized (in whole or in part) to the tax-
payer under subsection (a) or (b) of section 1031, subsection 
(a) shall not apply to the sale or exchange of such property 
by such taxpayer (or by any person whose basis in such property 
is determined, in whole or in part, by reference to the basis 
in the hands of such taxpayer) during the 5-year period begin-
ning with the date of such acquisition.’’. 
(ff) AMENDMENT RELATED TO SECTION 849 OF THE ACT.—Sub-
section (a) of section 849 of the American Jobs Creation Act of 
2004 is amended by inserting ‘‘, and in the case of property treated 
as tax-exempt use property other than by reason of a lease, to 
property acquired after March 12, 2004’’ before the period at the 
end. 
(gg) AMENDMENT RELATED
TO SECTION 884 OF
THE ACT.—
Subparagraph (B) of section 170(f)(12) is amended by adding at 
the end the following new clauses: 
‘‘(v) Whether the donee organization provided any 
goods or services in consideration, in whole or in part, 
for the qualified vehicle. 
‘‘(vi) A description and good faith estimate of the 
value of any goods or services referred to in clause 
(v) or, if such goods or services consist solely of intan-
gible religious benefits (as defined in paragraph (8)(B)), 
a statement to that effect.’’. 
(hh) AMENDMENTS RELATED TO SECTION 885 OF THE ACT.— 
(1) Paragraph (2) of section 26(b) is amended by striking 
‘‘and’’ at the end of subparagraph (R), by striking the period 
at the end of subparagraph (S) and inserting ‘‘, and’’, and 
by adding at the end the following new subparagraph: 
‘‘(T) subsections (a)(1)(B)(i) and (b)(4)(A) of section 409A 
(relating to interest and additional tax with respect to 
certain deferred compensation).’’. 
(2) Clause (ii) of section 409A(a)(4)(C) is amended by 
striking ‘‘first’’. 
(3)(A) Notwithstanding section 885(d)(1) of the American 
Jobs Creation Act of 2004, subsection (b) of section 409A of 
the Internal Revenue Code of 1986 shall take effect on January 
1, 2005. 
(B) Not later than 90 days after the date of the enactment 
of this Act, the Secretary of the Treasury shall issue guidance 
under which a nonqualified deferred compensation plan which 
is in violation of the requirements of section 409A(b) of such
H. R. 4440—56
Code shall be treated as not having violated such requirements 
if such plan comes into conformance with such requirements 
during such limited period as the Secretary may specify in 
such guidance. 
(4) Subsection (f) of section 885 of the American Jobs Cre-
ation Act of 2004 is amended by striking ‘‘December 31, 2004’’ 
the first place it appears and inserting ‘‘January 1, 2005’’. 
(ii) AMENDMENT RELATED TO SECTION 888 OF THE ACT.—Para-
graph (2) of section 1092(a) is amended by striking the last sentence 
and adding at the end the following new subparagraph: 
‘‘(C) REGULATIONS.—The Secretary shall prescribe such 
regulations or other guidance as may be necessary or appro-
priate to carry out the purposes of this paragraph. Such 
regulations or other guidance may specify the proper 
methods for clearly identifying a straddle as an identified 
straddle (and for identifying the positions comprising such 
straddle), the rules for the application of this section to 
a taxpayer which fails to comply with those identification 
requirements, and the ordering rules in cases where a 
taxpayer disposes (or otherwise ceases to be the holder) 
of any part of any position which is part of an identified 
straddle.’’. 
(jj) AMENDMENTS RELATED
TO SECTION 898 OF
THE ACT.— 
(1) Paragraph (3) of section 361(b) is amended by inserting 
‘‘(reduced by the amount of the liabilities assumed (within 
the meaning of section 357(c)))’’ before the period at the end. 
(2) Paragraph (1) of section 357(d) is amended by inserting 
‘‘section 361(b)(3),’’ after ‘‘section 358(h),’’. 
(kk) AMENDMENT RELATED
TO SECTION 899 OF
THE ACT.—
Subparagraph (A) of section 351(g)(3) is amended by adding at 
the end the following: ‘‘If there is not a real and meaningful likeli-
hood that dividends beyond any limitation or preference will actu-
ally be paid, the possibility of such payments will be disregarded 
in determining whether stock is limited and preferred as to divi-
dends.’’. 
(ll) AMENDMENT RELATED TO SECTION 902 OF THE ACT.—Para-
graph (1) of section 709(b) is amended by striking ‘‘taxpayer’’ both 
places it appears and inserting ‘‘partnership’’. 
(mm) AMENDMENTS RELATED TO SECTION 907 OF THE ACT.—
Clause (ii) of section 274(e)(2)(B) is amended— 
(1) in subclause (I), by inserting ‘‘or a related party to 
the taxpayer’’ after ‘‘the taxpayer’’, 
(2) in subclause (II), by inserting ‘‘(or such related party)’’ 
after ‘‘the taxpayer’’, and 
(3) by adding at the end the following new flush sentence: 
‘‘For purposes of this clause, a person is a related 
party with respect to another person if such person 
bears a relationship to such other person described 
in section 267(b) or 707(b).’’. 
(nn) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provisions of the American 
Jobs Creation Act of 2004 to which they relate. 
SEC. 404. AMENDMENTS RELATED TO THE WORKING FAMILIES TAX 
RELIEF ACT OF 2004. 
(a) AMENDMENT RELATED TO SECTION 201 OF THE ACT.—Sub-
section (e) of section 152 is amended to read as follows:
H. R. 4440—57
‘‘(e) SPECIAL RULE FOR DIVORCED PARENTS, ETC.— 
‘‘(1) IN
GENERAL.—Notwithstanding subsection (c)(1)(B), 
(c)(4), or (d)(1)(C), if— 
‘‘(A) a child receives over one-half of the child’s support 
during the calendar year from the child’s parents— 
‘‘(i) who are divorced or legally separated under 
a decree of divorce or separate maintenance, 
‘‘(ii) who are separated under a written separation 
agreement, or 
‘‘(iii) who live apart at all times during the last 
6 months of the calendar year, and— 
‘‘(B) such child is in the custody of 1 or both of the 
child’s parents for more than one-half of the calendar year, 
such child shall be treated as being the qualifying child 
or qualifying relative of the noncustodial parent for a cal-
endar year if the requirements described in paragraph 
(2) or (3) are met. 
‘‘(2) EXCEPTION WHERE CUSTODIAL PARENT RELEASES CLAIM 
TO EXEMPTION FOR THE YEAR.—For purposes of paragraph (1), 
the requirements described in this paragraph are met with 
respect to any calendar year if— 
‘‘(A) the custodial parent signs a written declaration 
(in such manner and form as the Secretary may by regula-
tions prescribe) that such custodial parent will not claim 
such child as a dependent for any taxable year beginning 
in such calendar year, and 
‘‘(B) the noncustodial parent attaches such written dec-
laration to the noncustodial parent’s return for the taxable 
year beginning during such calendar year. 
‘‘(3) EXCEPTION FOR CERTAIN PRE-1985 INSTRUMENTS.— 
‘‘(A) IN GENERAL .—For purposes of paragraph (1), the 
requirements described in this paragraph are met with 
respect to any calendar year if— 
‘‘(i) a qualified pre-1985 instrument between the 
parents applicable to the taxable year beginning in 
such calendar year provides that the noncustodial 
parent shall be entitled to any deduction allowable 
under section 151 for such child, and 
‘‘(ii) the noncustodial parent provides at least $600 
for the support of such child during such calendar 
year. 
For purposes of this subparagraph, amounts expended for 
the support of a child or children shall be treated as 
received from the noncustodial parent to the extent that 
such parent provided amounts for such support. 
‘‘(B) QUALIFIED PRE-1985 INSTRUMENT.—For purposes 
of this paragraph, the term ‘qualified pre-1985 instrument’ 
means any decree of divorce or separate maintenance or 
written agreement— 
‘‘(i) which is executed before January 1, 1985, 
‘‘(ii) which on such date contains the provision 
described in subparagraph (A)(i), and 
‘‘(iii) which is not modified on or after such date 
in a modification which expressly provides that this 
paragraph shall not apply to such decree or agreement. 
‘‘(4) CUSTODIAL PARENT AND NONCUSTODIAL PARENT.—For 
purposes of this subsection—
H. R. 4440—58
‘‘(A) CUSTODIAL PARENT.—The term ‘custodial parent’ 
means the parent having custody for the greater portion 
of the calendar year. 
‘‘(B) NONCUSTODIAL PARENT.—The term ‘noncustodial 
parent’ means the parent who is not the custodial parent. 
‘‘(5) EXCEPTION FOR MULTIPLE-SUPPORT AGREEMENT.—This 
subsection shall not apply in any case where over one-half 
of the support of the child is treated as having been received 
from a taxpayer under the provision of subsection (d)(3). 
‘‘(6) SPECIAL
RULE
FOR
SUPPORT
RECEIVED
FROM
NEW 
SPOUSE OF PARENT.—For purposes of this subsection, in the 
case of the remarriage of a parent, support of a child received 
from the parent’s spouse shall be treated as received from 
the parent.’’. 
(b) AMENDMENT RELATED
TO SECTION 203 OF
THE ACT.—
Subparagraph (B) of section 21(b)(1) is amended by inserting ‘‘(as 
defined in section 152, determined without regard to subsections 
(b)(1), (b)(2), and (d)(1)(B))’’ after ‘‘dependent of the taxpayer’’. 
(c) AMENDMENT RELATED
TO SECTION 207 OF
THE ACT.—
Subparagraph (A) of section 223(d)(2) is amended by inserting ‘‘, 
determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) 
thereof’’ after ‘‘section 152’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provisions of the Working 
Families Tax Relief Act of 2004 to which they relate. 
SEC. 405. AMENDMENTS RELATED TO THE JOBS AND GROWTH TAX 
RELIEF RECONCILIATION ACT OF 2003. 
(a) AMENDMENTS RELATED TO SECTION 201 OF THE ACT.— 
(1) Clause (ii) of section 168(k)(4)(B) is amended to read 
as follows: 
‘‘(ii) which is— 
‘‘(I) acquired by the taxpayer after May 5, 
2003, and before January 1, 2005, but only if no 
written binding contract for the acquisition was 
in effect before May 6, 2003, or 
‘‘(II) acquired by the taxpayer pursuant to a 
written binding contract which was entered into 
after May 5, 2003, and before January 1, 2005, 
and’’. 
(2) Subparagraph (D) of section 1400L(b)(2) is amended 
by striking ‘‘September 11, 2004’’ and inserting ‘‘January 1, 
2005’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in section 201 of the Jobs and 
Growth Tax Relief and Reconciliation Act of 2003. 
SEC. 406. AMENDMENT RELATED TO THE VICTIMS OF TERRORISM TAX 
RELIEF ACT OF 2001. 
(a) AMENDMENT RELATED TO SECTION 201 OF THE ACT.—Para-
graph (17) of section 6103(l) is amended by striking ‘‘subsection 
(f), (i)(7), or (p)’’ and inserting ‘‘subsection (f), (i)(8), or (p)’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in section 201 of the Victims of 
Terrorism Tax Relief Act of 2001.
H. R. 4440—59
SEC. 407. AMENDMENTS RELATED TO THE ECONOMIC GROWTH AND 
TAX RELIEF RECONCILIATION ACT OF 2001. 
(a) AMENDMENTS RELATED TO SECTION 617 OF THE ACT.— 
(1) Clause (ii) of section 402(g)(7)(A) is amended to read 
as follows: 
‘‘(ii) $15,000 reduced by the sum of— 
‘‘(I) the amounts not included in gross income 
for prior taxable years by reason of this paragraph, 
plus 
‘‘(II) the aggregate amount of designated Roth 
contributions (as defined in section 402A(c)) for 
prior taxable years, or’’. 
(2) Subparagraph (A) of section 402(g)(1) is amended by 
inserting ‘‘to’’ after ‘‘shall not apply’’. 
(b) AMENDMENT RELATED
TO SECTION 632 OF
THE ACT.—
Subparagraph (C) of section 415(c)(7) is amended by striking ‘‘the 
greater of $3,000’’ and all that follows and inserting ‘‘$3,000. This 
subparagraph shall not apply with respect to any taxable year 
to any individual whose adjusted gross income for such taxable 
year (determined separately and without regard to community prop-
erty laws) exceeds $17,000.’’. 
(c) 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. 408. AMENDMENTS RELATED TO THE INTERNAL REVENUE 
SERVICE RESTRUCTURING AND REFORM ACT OF 1998. 
(a) AMENDMENTS RELATED TO SECTION 3415 OF THE ACT.— 
(1) Paragraph (2) of section 7609(c) is amended by inserting 
‘‘or’’ at the end of subparagraph (D), by striking ‘‘; or’’ at 
the end of subparagraph (E) and inserting a period, and by 
striking subparagraph (F). 
(2) Subsection (c) of section 7609 is amended by redesig-
nating paragraph (3) as paragraph (4) and by inserting after 
paragraph (2) the following new paragraph: 
‘‘(3) JOHN
DOE
AND
CERTAIN
OTHER
SUMMONSES.—Sub-
section (a) shall not apply to any summons described in sub-
section (f) or (g).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in section 3415 of the Internal 
Revenue Service Restructuring and Reform Act of 1998. 
SEC. 409. AMENDMENTS RELATED TO THE TAXPAYER RELIEF ACT OF 
1997. 
(a) AMENDMENTS RELATED TO SECTION 1055 OF THE ACT.— 
(1) The last sentence of section 6411(a) is amended by 
striking ‘‘6611(f)(3)(B)’’ and inserting ‘‘6611(f)(4)(B)’’. 
(2) Paragraph (4) of section 6601(d) is amended by striking 
‘‘6611(f)(3)(A)’’ and inserting ‘‘6611(f)(4)(A)’’. 
(b) AMENDMENT RELATED
TO SECTION 1112 OF
THE ACT.—
Subsection (c) of section 961 is amended to read as follows: 
‘‘(c) BASIS ADJUSTMENTS IN STOCK HELD BY FOREIGN CORPORA-
TIONS.—Under regulations prescribed by the Secretary, if a United 
States shareholder is treated under section 958(a)(2) as owning 
stock in a controlled foreign corporation which is owned by another 
controlled foreign corporation, then adjustments similar to the
H. R. 4440—60
adjustments provided by subsections (a) and (b) shall be made 
to— 
‘‘(1) the basis of such stock, and 
‘‘(2) the basis of stock in any other controlled foreign cor-
poration by reason of which the United States shareholder 
is considered under section 958(a)(2) as owning the stock 
described in paragraph (1), 
but only for the purposes of determining the amount included 
under section 951 in the gross income of such United States share-
holder (or any other United States shareholder who acquires from 
any person any portion of the interest of such United States share-
holder by reason of which such shareholder was treated as owning 
such stock, but only to the extent of such portion, and subject 
to such proof of identity of such interest as the Secretary may 
prescribe by regulations). The preceding sentence shall not apply 
with respect to any stock to which a basis adjustment applies 
under subsection (a) or (b).’’. 
(c) AMENDMENT RELATED
TO SECTION 1144 OF
THE ACT.—
Subparagraph (B) of section 6038B(a)(1) is amended by inserting 
‘‘or’’ at the end. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provisions of the Taxpayer 
Relief Act of 1997 to which they relate. 
SEC. 410. AMENDMENT RELATED TO THE OMNIBUS BUDGET REC-
ONCILIATION ACT OF 1990. 
(a) AMENDMENT RELATED TO SECTION 11813 OF THE ACT.—
Subclause (I) of section 168(e)(3)(B)(vi) is amended by striking ‘‘if 
‘solar and wind’ were substituted for ‘solar’ in clause (i) thereof’’ 
and inserting ‘‘if ‘solar or wind energy’ were substituted for ‘solar 
energy’ in clause (i) thereof’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in section 11813 of the Omnibus 
Budget Reconciliation Act of 1990. 
SEC. 411. AMENDMENT RELATED TO THE OMNIBUS BUDGET REC-
ONCILIATION ACT OF 1987. 
(a) AMENDMENT RELATED TO SECTION 10227 OF THE ACT.—
Section 1363(d) is amended by adding at the end the following 
new paragraph: 
‘‘(5) SPECIAL RULE.—Sections 1367(a)(2)(D) and 1371(c)(1) 
shall not apply with respect to any increase in the tax imposed 
by reason of this subsection.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect as if included in section 10227 of the Omnibus 
Budget Reconciliation Act of 1987. 
SEC. 412. CLERICAL CORRECTIONS. 
(a) Subparagraph (C) of section 2(b)(2) is amended by striking 
‘‘subparagraph (C)’’ and inserting ‘‘subparagraph (B)’’. 
(b) Paragraph (2) of section 25C(b) is amended by striking 
‘‘subsection (c)(3)(B)’’ and inserting ‘‘subsection (c)(2)(B)’’. 
(c) Subparagraph (E) of section 26(b)(2) is amended by striking 
‘‘section 530(d)(3)’’ and inserting ‘‘section 530(d)(4)’’. 
(d) Subparagraph (A) of section 30B(g)(2) and subparagraph 
(A) of section 30C(d)(2) are each amended by striking ‘‘regular 
tax’’ and inserting ‘‘regular tax liability (as defined in section 26(b))’’.
H. R. 4440—61
(e) The table of sections for subpart B of part IV of subchapter 
A of chapter 1 is amended by striking the item relating to section 
30C and inserting the following new item:
‘‘Sec. 30C. Alternative fuel vehicle refueling property credit.’’.
(f)(1) Subclause (II) of section 38(c)(2)(A)(ii) is amended by 
striking ‘‘or the New York Liberty Zone business employee credit 
or the specified credits’’ and inserting ‘‘, the New York Liberty 
Zone business employee credit, and the specified credits’’. 
(2) Subclause (II) of section 38(c)(3)(A)(ii) is amended by striking 
‘‘or the specified credits’’ and inserting ‘‘and the specified credits’’. 
(3) Subparagraph (B) of section 38(c)(4) is amended— 
(A) by striking ‘‘includes’’ and inserting ‘‘means’’, and 
(B) by inserting ‘‘and’’ at the end of clause (i). 
(g)(1) Subparagraph (A) of section 39(a)(1) is amended by 
striking ‘‘each of the 1 taxable years’’ and inserting ‘‘the taxable 
year’’. 
(2) Subparagraph (B) of section 39(a)(3) is amended to read 
as follows: 
‘‘(B) paragraph (1) shall be applied by substituting 
‘each of the 5 taxable years’ for ‘the taxable year’ in 
subparagraph (A) thereof, and’’. 
(h) Subparagraph (B) of section 40A(b)(5) is amended by 
striking ‘‘(determined without regard to the last sentence of sub-
section (d)(2))’’. 
(i) Paragraph (5) of section 43(c) is amended to read as follows: 
‘‘(5) ALASKA
NATURAL
GAS.—For purposes of paragraph 
(1)(D)— 
‘‘(A) IN
GENERAL.—The term ‘Alaska natural gas’ 
means natural gas entering the Alaska natural gas pipeline 
(as defined in section 168(i)(16) (determined without regard 
to subparagraph (B) thereof)) which is produced from a 
well— 
‘‘(i) located in the area of the State of Alaska 
lying north of 64 degrees North latitude, determined 
by excluding the area of the Alaska National Wildlife 
Refuge (including the continental shelf thereof within 
the meaning of section 638(1)), and 
‘‘(ii) pursuant to the applicable State and Federal 
pollution prevention, control, and permit requirements 
from such area (including the continental shelf thereof 
within the meaning of section 638(1)). 
‘‘(B) NATURAL GAS.—The term ‘natural gas’ has the 
meaning given such term by section 613A(e)(2).’’. 
(j) Subsection (d) of section 45 is amended— 
(1) in paragraph (8) by striking ‘‘The term’’ and inserting 
‘‘In the case of a facility that produces refined coal, the term’’, 
and 
(2) in paragraph (10) by striking ‘‘The term’’ and inserting 
‘‘In the case of a facility that produces Indian coal, the term’’. 
(k) Paragraph (2) of section 45I(a) is amended by striking 
‘‘qualified credit oil production’’ and inserting ‘‘qualified crude oil 
production’’. 
(l) Subsection (g) of section 45K, as redesignated by section 
1322 of the Energy Policy Act of 2005, is amended— 
(1) in the matter preceding paragraph (1), by striking ‘‘sub-
section (f)’’ and inserting ‘‘subsection (e)’’, and
H. R. 4440—62
(2) in paragraph (2)(C), by striking ‘‘subsection (g)’’ and 
inserting ‘‘subsection (f)’’. 
(m) Paragraph (1) of section 48(a), as amended by section 
1336 of the Energy Policy Act of 2005, is amended by striking 
‘‘paragraph (1)(B) or (2)(B) of subsection (d)’’ and inserting ‘‘para-
graphs (1)(B) and (2)(B) of subsection (c)’’. 
(n) Subparagraph (A) of section 48(a)(3) is amended— 
(1) by redesignating clause (iii) (relating to qualified fuel 
cell property or qualified microturbine property), as added by 
section 1336 of the Energy Policy Act of 2005, as clause (iv) 
and by moving such clause to the end of such subparagraph, 
and 
(2) by striking ‘‘or’’ at the end of clause (ii). 
(o) Subparagraph (E) of section 50(a)(2) is amended by striking 
‘‘section 48(a)(5)’’ and inserting ‘‘section 48(b)’’. 
(p)(1) Paragraph (3) of section 55(c) is amended by inserting 
‘‘30B(g)(2), 30C(d)(2),’’ after ‘‘30(b)(3),’’. 
(2) Section 1341(b)(3) of the Energy Policy Act of 2005 is 
repealed. 
(3) Section 1342(b)(3) of the Energy Policy Act of 2005 is 
repealed. 
(q)(1) Subsection (a) of section 62 is amended— 
(A) by redesignating paragraph (19) (relating to costs 
involving discrimination suits, etc.), as added by section 703 
of the American Jobs Creation Act of 2004, as paragraph (20), 
and 
(B) by moving such paragraph after paragraph (19) 
(relating to health savings accounts). 
(2) Subsection (e) of section 62 is amended by striking ‘‘sub-
section (a)(19)’’ and inserting ‘‘subsection (a)(20)’’. 
(r) Paragraph (3) of section 167(f) is amended by striking ‘‘sec-
tion 197(e)(7)’’ and inserting ‘‘section 197(e)(6)’’. 
(s) Subparagraph (D) of section 168(i)(15) is amended by 
striking ‘‘This paragraph shall not apply to’’ and inserting ‘‘Such 
term shall not include’’. 
(t) Paragraph (2) of section 221(d) is amended by striking 
‘‘this Act’’ and inserting ‘‘the Taxpayer Relief Act of 1997’’. 
(u) Paragraph (8) of section 318(b) is amended by striking 
‘‘section 6038(d)(2)’’ and inserting ‘‘section 6038(e)(2)’’. 
(v) Subparagraph (B) of section 332(d)(1) is amended by striking 
‘‘distribution to which section 301 applies’’ and inserting ‘‘distribu-
tion of property to which section 301 applies’’. 
(w) Subparagraph (B) of section 403(b)(9) is amended by 
inserting ‘‘or’’ before ‘‘a convention’’. 
(x)(1) Clause (i) of section 412(m)(4)(B) is amended by striking 
‘‘subsection (c)’’ and inserting ‘‘subsection (d)’’. 
(2) Clause (i) of section 302(e)(4)(B) of the Employee Retirement 
Income Security Act of 1974 is amended by striking ‘‘subsection 
(c)’’ and inserting ‘‘subsection (d)’’. 
(y) Paragraph (1) of section 415(l) is amended by striking ‘‘indi-
vidual medical account’’ and inserting ‘‘individual medical benefit 
account’’. 
(z) The matter following clause (iv) of section 415(n)(3)(C) is 
amended by striking ‘‘clauses’’ and inserting ‘‘clause’’. 
(aa) Subparagraph (C) of section 461(i)(3) is amended by 
striking 
‘‘section 
6662(d)(2)(C)(iii)’’ 
and 
inserting 
‘‘section 
6662(d)(2)(C)(ii)’’.
H. R. 4440—63
(bb) Paragraph (12) of section 501(c) is amended— 
(1) by striking ‘‘subparagraph (C)(iii)’’ in subparagraph (F) 
and inserting ‘‘subparagraph (C)(iv)’’, and 
(2) by striking ‘‘subparagraph (C)(iv)’’ in subparagraph (G) 
and inserting ‘‘subparagraph (C)(v)’’. 
(cc) Clause (ii) of section 501(c)(22)(B) is amended by striking 
‘‘clause (ii) of paragraph (21)(B)’’ and inserting ‘‘clause (ii) of para-
graph (21)(D)’’. 
(dd) Paragraph (1) of section 512(b) is amended by striking 
‘‘section 512(a)(5)’’ and inserting ‘‘subsection (a)(5)’’. 
(ee)(1) Subsection (b) of section 512 is amended— 
(A) by redesignating paragraph (18) (relating to the treat-
ment of gain or loss on sale or exchange of certain brownfield 
sites), as added by section 702 of the American Jobs Creation 
Act of 2004, as paragraph (19), and 
(B) by moving such paragraph to the end of such subsection. 
(2) Subparagraph (E) of section 514(b)(1) is amended by striking 
‘‘section 512(b)(18)’’ and inserting ‘‘section 512(b)(19)’’. 
(3) Paragraph (6) of section 529(c) is amended by striking 
‘‘education individual retirement account’’ and inserting ‘‘Coverdell 
education savings account’’. 
(ff)(1) Subsection (b) of section 530 is amended by striking 
paragraph (3) and by redesignating paragraphs (4) and (5) as para-
graphs (3) and (4), respectively. 
(2) Clause (ii) of section 530(b)(2)(A) is amended by striking 
‘‘paragraph (4)’’ and inserting ‘‘paragraph (3)’’. 
(gg) Subparagraph (H) of section 613(c)(4) is amended by 
inserting ‘‘(including in situ retorting)’’ after ‘‘and retorting’’. 
(hh) Subparagraph (A) of section 856(g)(5) is amended by 
striking ‘‘subsection (c)(6) or (c)(7) of section 856’’ and inserting 
‘‘paragraph (2), (3), or (4) of subsection (c)’’. 
(ii) Paragraph (6) of section 857(b) is amended— 
(1) in subparagraph (E), by striking ‘‘subparagraph (C)’’ 
and inserting ‘‘subparagraphs (C) and (D)’’, and 
(2) in subparagraph (F)— 
(A) by striking ‘‘subparagraph (C) of this paragraph’’ 
and inserting ‘‘subparagraph (C) or (D)’’, and 
(B) by striking ‘‘subparagraphs (C) and (D)’’ and 
inserting ‘‘subparagraphs (C), (D), and (E)’’. 
(jj) Subparagraph (C) of section 881(e)(1) is amended by 
inserting ‘‘interest-related dividend received by a controlled foreign 
corporation’’ after ‘‘shall apply to any’’. 
(kk) Clause (ii) of section 952(c)(1)(B) is amended— 
(1) by striking ‘‘clause (iii)(III) or (IV)’’ and inserting ‘‘sub-
clause (II) or (III) of clause (iii)’’, and 
(2) by striking ‘‘clause (iii)(II)’’ and inserting ‘‘clause (iii)(I)’’. 
(ll) Clause (i) of section 954(c)(1)(C) is amended by striking 
‘‘paragraph (4)(A)’’ and inserting ‘‘paragraph (5)(A)’’. 
(mm) Subparagraph (F) of section 954(c)(1) is amended by 
striking ‘‘Net income from notional principal contracts.’’ after 
‘‘Income from notional principal contracts.—’’. 
(nn) Paragraph (23) of section 1016(a) is amended by striking 
‘‘1045(b)(4)’’ and inserting ‘‘1045(b)(3)’’. 
(oo) Paragraph (1) of section 1256(f) is amended by striking 
‘‘subsection (e)(2)(C)’’ and inserting ‘‘subsection (e)(2)’’.
H. R. 4440—64
(pp) The matter preceding clause (i) of section 1031(h)(2)(B) 
is amended by striking ‘‘subparagraph’’ and inserting ‘‘subpara-
graphs’’. 
(qq) Paragraphs (1) and (2) of section 1375(d) are each amended 
by striking ‘‘subchapter C’’ and inserting ‘‘accumulated’’. 
(rr) Each of the following provisions are amended by striking 
‘‘General Accounting Office’’ each place it appears therein and 
inserting ‘‘Government Accountability Office’’: 
(1) Clause (ii) of section 1400E(c)(4)(A). 
(2) Paragraph (1) of section 6050M(b). 
(3) Subparagraphs (A), (B)(i), and (B)(ii) of section 
6103(i)(8). 
(4) Paragraphs (3)(C)(i), (4), (5), and (6)(B) of section 
6103(p). 
(5) Subsection (e) of section 8021. 
(ss)(1) Clause (ii) of section 1400L(b)(2)(C) is amended by 
striking 
‘‘section 
168(k)(2)(C)(i)’’ 
and 
inserting 
‘‘section 
168(k)(2)(D)(i)’’. 
(2) Clause (iv) of section 1400L(b)(2)(C) is amended by striking 
‘‘section 168(k)(2)(C)(iii)’’ and inserting ‘‘section 168(k)(2)(D)(iii)’’. 
(3) Subparagraph (D) of section 1400L(b)(2) is amended by 
striking ‘‘section 168(k)(2)(D)’’ and inserting ‘‘section 168(k)(2)(E)’’. 
(4) Subparagraph (E) of section 1400L(b)(2) is amended by 
striking ‘‘section 168(k)(2)(F)’’ and inserting ‘‘section 168(k)(2)(G)’’. 
(5) Paragraph (5) of section 1400L(c) is amended by striking 
‘‘section 168(k)(2)(C)(iii)’’ and inserting ‘‘section 168(k)(2)(D)(iii)’’. 
(tt) Section 3401 is amended by redesignating subsection (h) 
as subsection (g). 
(uu) Paragraph (2) of section 4161(a) is amended to read as 
follows: 
‘‘(2) 3 PERCENT
RATE
OF
TAX
FOR
ELECTRIC
OUTBOARD 
MOTORS.—In the case of an electric outboard motor, paragraph 
(1) shall be applied by substituting ‘3 percent’ for ‘10 percent’.’’. 
(vv) Subparagraph (C) of section 4261(e)(4) is amended by 
striking ‘‘imposed subsection (b)’’ and inserting ‘‘imposed by sub-
section (b)’’. 
(ww) Subsection (a) of section 4980D is amended by striking 
‘‘plans’’ and inserting ‘‘plan’’. 
(xx) The matter following clause (iii) of section 6045(e)(5)(A) 
is amended by striking ‘‘for ‘$250,000’.’’ and all that follows through 
‘‘to the Treasury.’’ and inserting ‘‘for ‘$250,000’. The Secretary may 
by regulation increase the dollar amounts under this subparagraph 
if the Secretary determines that such an increase will not materially 
reduce revenues to the Treasury.’’. 
(yy) Subsection (p) of section 6103 is amended— 
(1) by striking so much of paragraph (4) as precedes 
subparagraph (A) and inserting the following: 
‘‘(4) SAFEGUARDS.—Any Federal agency described in sub-
section (h)(2), (h)(5), (i)(1), (2), (3), (5), or (7), (j)(1), (2), or 
(5), (k)(8), (l)(1), (2), (3), (5), (10), (11), (13), (14), or (17) or 
(o)(1), the Government Accountability Office, the Congressional 
Budget Office, or any agency, body, or commission described 
in subsection (d), (i)(3)(B)(i) or 7(A)(ii), or (l)(6), (7), (8), (9), 
(12), (15), or (16) or any other person described in subsection 
(l)(16), (18), (19), or (20) shall, as a condition for receiving 
returns or return information—’’, 
(2) by amending paragraph (4)(F)(i) to read as follows:
H. R. 4440—65
‘‘(i) in the case of an agency, body, or commission 
described in subsection (d), (i)(3)(B)(i), or (l)(6), (7), 
(8), (9), or (16), or any other person described in sub-
section (l)(16), (18), (19), or (20) return to the Secretary 
such returns or return information (along with any 
copies made therefrom) or make such returns or return 
information undisclosable in any manner and furnish 
a written report to the Secretary describing such 
manner,’’, and 
(3) by striking the first full sentence in the matter following 
subparagraph (F) of paragraph (4) and inserting the following: 
‘‘If the Secretary determines that any such agency, body, or 
commission, including an agency or any other person described 
in subsection (l)(16), (18), (19), or (20), or the Government 
Accountability Office or the Congressional Budget Office, has 
failed to, or does not, meet the requirements of this paragraph, 
he may, after any proceedings for review established under 
paragraph (7), take such actions as are necessary to ensure 
such requirements are met, including refusing to disclose 
returns or return information to such agency, body, or commis-
sion, including an agency or any other person described in 
subsection (l)(16), (18), (19), or (20), or the Government Account-
ability Office or the Congressional Budget Office, until he deter-
mines that such requirements have been or will be met.’’. 
(zz) Clause (ii) of section 6111(b)(1)(A) is amended by striking 
‘‘advice or assistance’’ and inserting ‘‘aid, assistance, or advice’’. 
(aaa) Paragraph (3) of section 6662(d) is amended by striking 
‘‘the’’ before ‘‘1 or more’’. 
SEC. 413. OTHER CORRECTIONS RELATED TO THE AMERICAN JOBS 
CREATION ACT OF 2004. 
(a) AMENDMENTS RELATED TO SECTION 233 OF THE ACT.— 
(1) Clause (vi) of section 1361(c)(2)(A) is amended— 
(A) by inserting ‘‘or a depository institution holding 
company (as defined in section 3(w)(1) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(w)(1))’’ after ‘‘a bank 
(as defined in section 581)’’, and 
(B) by inserting ‘‘or company’’ after ‘‘such bank’’. 
(2) Paragraph (16) of section 4975(d) is amended— 
(A) in subparagraph (A), by inserting ‘‘or a depository 
institution holding company (as defined in section 3(w)(1) 
of 
the 
Federal 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1813(w)(1))’’ after ‘‘a bank (as defined in section 581)’’, 
and 
(B) in subparagraph (C), by inserting ‘‘or company’’ 
after ‘‘such bank’’. 
(b) AMENDMENT RELATED
TO SECTION 237 OF
THE ACT.—
Subparagraph (F) of section 1362(d)(3) is amended by striking ‘‘a 
bank holding company’’ and all that follows through ‘‘section 2(p) 
of such Act)’’ and inserting ‘‘a depository institution holding com-
pany (as defined in section 3(w)(1) of the Federal Deposit Insurance 
Act (12 U.S.C. 1813(w)(1))’’. 
(c) AMENDMENTS RELATED TO SECTION 239 OF THE ACT.—Para-
graph (3) of section 1361(b) is amended— 
(1) in subparagraph (A), by striking ‘‘and in the case of 
information returns required under part III of subchapter A 
of chapter 61’’, and
H. R. 4440—66
(2) by adding at the end the following new subparagraph: 
‘‘(E) INFORMATION RETURNS.—Except to the extent pro-
vided by the Secretary, this paragraph shall not apply 
to part III of subchapter A of chapter 61 (relating to 
information returns).’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provisions of the American 
Jobs Creation Act of 2004 to which they relate. 
Subtitle B—Trade Technicals
SEC. 421. TECHNICAL CORRECTIONS TO REGIONAL VALUE-CONTENT 
METHODS FOR RULES OF ORIGIN UNDER PUBLIC LAW 
109–53. 
Section 203(c) of the Dominican Republic-Central America-
United States Free Trade Agreement Implementation Act (Public 
Law 109–53; 19 U.S.C. 4033(c)) is amended as follows: 
(1) In paragraph (2)(A), by striking all that follows ‘‘the 
following build-down method:’’ and inserting the following:
AV–VNM
‘‘RVC = ———— × 100’’.
AV
(2) In paragraph (3)(A), by striking all that follows ‘‘the 
following build-up method:’’ and inserting the following:
VOM
‘‘RVC = ———— × 100’’.
AV
(3) In paragraph (4)(A), by striking all that follows ‘‘the 
following net cost method:’’ and inserting the following:
NC–VNM
‘‘RVC = ———— × 100’’.
NC
TITLE V—EMERGENCY REQUIREMENT 
SEC. 501. EMERGENCY REQUIREMENT. 
Any provision of this Act causing an effect on receipts, budget 
authority, or outlays is designated as an emergency requirement 
pursuant to section 402 of H. Con. Res. 95 (109th Congress).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.