HR 4840 RFS 
(38) DEALERS IN SECURITIES.—Subsection (b) 
of section 1236 of such Code is amended by striking 
‘‘after November 19, 1951,’’. 
(39) SALE OF PATENTS.—Subsection (a) of sec-
tion 1249 of such Code is amended by striking 
‘‘after December 31, 1962,’’. 
(40) GAIN
FROM
DISPOSITION
OF
FARM 
LAND.—Paragraph (1) of section 1252(a) of such 
Code is amended by striking ‘‘after December 31, 
1969,’’ both places it appears. 
(41) TREATMENT OF AMOUNTS RECEIVED ON 
RETIREMENT OR SALE OR EXCHANGE OF DEBT IN-
STRUMENTS.—Subsection (c) of section 1271 of 
such Code is amended to read as follows: 
‘‘(c) SPECIAL RULE
FOR CERTAIN OBLIGATIONS 
WITH RESPECT TO WHICH ORIGINAL ISSUE DISCOUNT 
NOT CURRENTLY INCLUDIBLE.— 
‘‘(1) IN GENERAL.—On the sale or exchange of 
debt instruments issued by a government or political 
subdivision thereof after December 31, 1954, and 
before July 2, 1982, or by a corporation after De-
cember 31, 1954, and on or before May 27, 1969, 
any gain realized which does not exceed— 
‘‘(A) an amount equal to the original issue 
discount, or
HR 4840 RFS 
‘‘(B) if at the time of original issue there 
was no intention to call the debt instrument be-
fore maturity, an amount which bears the same 
ratio to the original issue discount as the num-
ber of complete months that the debt instru-
ment was held by the taxpayer bears to the 
number of complete months from the date of 
original issue to the date of maturity, 
shall be considered as ordinary income. 
‘‘(2) SUBSECTION (a)(2)(A) NOT TO APPLY.— 
Subsection (a)(2)(A) shall not apply to any debt in-
strument referred to in subparagraph (A) of this 
paragraph. 
‘‘(3) CROSS REFERENCE.— 
‘‘For current inclusion of original issue discount, 
see section 1272.’’. 
(42) AMOUNT
AND
METHOD
OF
ADJUST-
MENT.—Section 1314 of such Code is amended by 
striking subsection (d) and by redesignating sub-
section (e) as subsection (d). 
(43) ELECTION; REVOCATION; TERMINATION.— 
Clause (iii) of section 1362(d)(3) of such Code is 
amended by striking ‘‘unless’’ and all that follows 
and inserting ‘‘unless the corporation was an S cor-
poration for such taxable year.’’.
HR 4840 RFS 
(44) AFFILIATED GROUP DEFINED.—Subpara-
graph (A) of section 1504(a)(3) of such Code is 
amended by striking ‘‘for a taxable year which in-
cludes any period after December 31, 1984’’ in 
clause (i) and by striking ‘‘in a taxable year begin-
ning after December 31, 1984’’ in clause (ii). 
(45) DISALLOWANCE
OF
THE
BENEFITS
OF 
THE GRADUATED CORPORATE RATES AND ACCUMU-
LATED EARNINGS CREDIT.— 
(A) Subsection (a) of section 1551 of such 
Code is amended— 
(i) by striking paragraph (1) and by 
redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively, and 
(ii) by striking ‘‘after June 12, 1963,’’ 
each place it appears. 
(B) Section 1551(b) of such Code is 
amended— 
(i) by striking ‘‘or (2)’’ in paragraph 
(1), and 
(ii) by striking ‘‘(a)(3)’’ in paragraph 
(2) and inserting ‘‘(a)(2)’’. 
(46) DEFINITION OF WAGES.— 
(A) Section 3121(b) of such Code is 
amended by striking paragraph (17).
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(B) Section 210(a) of the Social Security 
Act is amended by striking paragraph (17). 
(47) CREDITS AGAINST TAX.— 
(A) Paragraph (4) of section 3302(f) of 
such Code is amended— 
(i) by striking ‘‘subsection—’’ and all 
that follows through ‘‘(A) IN GENERAL.— 
The’’ and inserting ‘‘subsection, the, 
(ii) by striking subparagraph (B), 
(iii) by redesignating clauses (i) and 
(ii) as subparagraphs (A) and (B), respec-
tively, and 
(iv) by moving the text of such sub-
paragraphs (as so redesignated) 2 ems to 
the left. 
(B) Paragraph (5) of section 3302(f) of 
such Code is amended by striking subparagraph 
(D) and by redesignating subparagraph (E) as 
subparagraph (D). 
(48) 
DOMESTIC
SERVICE
EMPLOYMENT 
TAXES.—Section 3510(b) of such Code is amended 
by striking paragraph (4). 
(49) TAX
ON
FUEL
USED
IN
COMMERCIAL 
TRANSPORTATION ON INLAND WATERWAYS.—Section