371
If any increase determined under the preceding sen-
tence is not a multiple of $5 ($5,000 in the case of
the dollar amount in paragraph (1)(B)), such in-
crease shall be rounded to the nearest multiple
thereof.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to calendar years after 2000.
SEC. 652. MODIFICATIONS TO EXPENSING OF ENVIRON-
MENTAL REMEDIATION COSTS.
(a) EXPENSING NOT LIMITED TO SITES IN TAR-
GETED AREAS.—Subsection (c) of section 198 is amended
to read as follows:
‘‘(c) QUALIFIED CONTAMINATED SITE.—For pur-
poses of this section—
‘‘(1) IN
GENERAL.—The term ‘qualified con-
taminated site’ means any area—
‘‘(A) which is held by the taxpayer for use
in a trade or business or for the production of
income, or which is property described in sec-
tion 1221(a)(1) in the hands of the taxpayer,
and
‘‘(B) at or on which there has been a re-
lease (or threat of release) or disposal of any
hazardous substance.
372
‘‘(2) NATIONAL PRIORITIES LISTED SITES NOT
INCLUDED.—Such term shall not include any site
which is on, or proposed for, the national priorities
list under section 105(a)(8)(B) of the Comprehen-
sive Environmental Response, Compensation, and
Liability Act of 1980 (as in effect on the date of the
enactment of this section).
‘‘(3) TAXPAYER
MUST
RECEIVE
STATEMENT
FROM
STATE
ENVIRONMENTAL
AGENCY.—An area
shall be treated as a qualified contaminated site with
respect to expenditures paid or incurred during any
taxable year only if the taxpayer receives a state-
ment from the appropriate agency of the State in
which such area is located that such area meets the
requirement of paragraph (1)(B).
‘‘(4) APPROPRIATE STATE AGENCY.—For pur-
poses of paragraph (3), the chief executive officer of
each State may, in consultation with the Adminis-
trator of the Environmental Protection Agency, des-
ignate the appropriate State environmental agency
within 60 days of the date of the enactment of this
section. If the chief executive officer of a State has
not designated an appropriate environmental agency
within such 60-day period, the appropriate environ-
mental agency for such State shall be designated by
373
the Administrator of the Environmental Protection
Agency.’’.
(b) EXTENSION
OF
TERMINATION
DATE.—Sub-
section (h) of section 198 is amended by striking ‘‘2001’’
and inserting ‘‘2003’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to expenditures paid or incurred
after the date of the enactment of this Act.
SEC. 653. EXTENSION OF DC HOMEBUYER TAX CREDIT.
Section 1400C(i) (relating to application of section)
is amended by striking ‘‘2002’’ and inserting ‘‘2004’’.
TITLE 
VII—ADMINISTRATIVE,
MISCELLANEOUS, AND TECH-
NICAL PROVISIONS
Subtitle A—Administrative
Provisions
SEC. 701. EXEMPTION OF CERTAIN REPORTING REQUIRE-
MENTS.
Section 3003(a)(1) of the Federal Reports Elimi-
nation and Sunset Act of 1995 (31 U.S.C. 1113 note)
shall not apply to any report required to be submitted
under any of the following provisions of law:
(1) Section 13031(f) of the Consolidated Omni-
bus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(f)).
374
(2) Section 16(c) of the Foreign Trade Zones
Act (19 U.S.C. 81p(c)).
(3) The following provisions of the Tariff Act of
1930:
(A) 
Section 
330(c)(1) 
(19 
U.S.C.
1330(c)(1)).
(B) Section 607(c) (19 U.S.C. 1607(c)).
(4) Section 5 of the International Coffee Agree-
ment Act of 1980 (19 U.S.C. 1356n).
(5) Section 351(a)(2) of the Trade Expansion
Act of 1962 (19 U.S.C. 1981(a)(2)).
(6) Section 502 of the Automotive Products
Trade Act of 1965 (19 U.S.C. 2032).
(7) Section 3131 of the Customs Enforcement
Act of 1986 (19 U.S.C. 2081).
(8) The following provisions of the Trade Act of
1974 (19 U.S.C. 2101 et seq.):
(A) Section 102(b)(4)(A)(ii)(I) (19 U.S.C.
2112(b)(4)(A)(ii)(I)).
(B) 
Section 
102(e)(1) 
(19 
U.S.C.
2112(e)(1)).
(C) 
Section 
102(e)(2) 
(19 
U.S.C.
2112(e)(2)).
(D) Section 104(d) (19 U.S.C. 2114(d)).
(E) Section 125(e) (19 U.S.C. 2135(e)).
375
(F) 
Section 
135(e)(1) 
(19 
U.S.C.
2155(e)(1)).
(G) Section 141(c) (19 U.S.C. 2171(c)).
(H) Section 162 (19 U.S.C. 2212).
(I) Section 163(b) (19 U.S.C. 2213(b)).
(J) Section 163(c) (19 U.S.C. 2213(c)).
(K) Section 203(b) (19 U.S.C. 2253(b)).
(L) Section 302(b)(2)(C) (19 U.S.C.
2412(b)(2)(C)).
(M) Section 303 (19 U.S.C. 2413).
(N) Section 309 (19 U.S.C. 2419).
(O) Section 407(a) (19 U.S.C. 2437(a)).
(P) Section 502(f) (19 U.S.C. 2462(f)).
(Q) Section 504 (19 U.S.C. 2464).
(9) The following provisions of the Trade
Agreements Act of 1979 (19 U.S.C. 2501 et seq.):
(A) Section 2(b) (19 U.S.C. 2503(b)).
(B) Section 3(c) (19 U.S.C. 2504(c)).
(C) Section 305(c) (19 U.S.C. 2515(c)).
(10) Section 303(g)(1) of the Convention on
Cultural Property Implementation Act (19 U.S.C.
2602(g)(1)).
(11) The following provisions of the Caribbean
Basin Economic Recovery Act (19 U.S.C. 2701 et
seq.):
376
(A) Section 212(a)(1)(A) (19 U.S.C.
2702(a)(1)(A)).
(B) 
Section 
212(a)(2) 
(19 
U.S.C.
2702(a)(2)).
(12) The following provisions of the Omnibus
Trade and Competitiveness Act of 1988 (19 U.S.C.
2901 et seq.):
(A) Section 1102 (19 U.S.C. 2902).
(B) Section 1103 (19 U.S.C. 2903).
(C) Section 1206(b) (19 U.S.C. 3006(b)).
(13) Section 123(a) of the Customs and Trade
Act of 1990 (Public Law 101–382) (19 U.S.C.
2083).
(14) Section 243(b)(2) of the Caribbean Basin
Economic Recovery Expansion Act of 1990 (Public
Law 101–382).
(15) The following provisions of the Internal
Revenue Code of 1986:
(A) Section 6103(p)(5).
(B) Section 7608.
(C) Section 7802(f)(3).
(D) Section 8022(3).
(E) Section 9602(a).
(16) The following provisions relating to the
revenue laws of the United States:
377
(A) Section 1552(c) of the Tax Reform
Act of 1986 (100 Stat. 2753).
(B) Section 231 of the Deficit Reduction
Act of 1984 (26 U.S.C. 801 note).
(C) Section 208 of the Tax Treatment Ex-
tension Act of 1977 (26 U.S.C. 911 note).
(D) Section 7105 of the Technical and
Miscellaneous Revenue Act of 1988 (45 U.S.C.
369).
(17) Section 4008 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1308).
(18) Section 426 of the Black Lung Benefits
Act (30 U.S.C. 936(b)).
(19) Section 7502(g) of title 31, United States
Code.
(20) The following provisions of the Social Se-
curity Act:
(A) Section 215(i)(2)(C)(i) (42 U.S.C.
415(i)(2)(C)(i)).
(B) 
Section 
221(i)(2) 
(42 
U.S.C.
421(i)(2)).
(C) 
Section 
221(i)(3) 
(42 
U.S.C.
421(i)(3)).
(D) 
Section 
233(e)(1) 
(42 
U.S.C.
433(e)(1)).
378
(E) 
Section 
452(a)(10) 
(42 
U.S.C.
652(a)(10)).
(F) Section 452(g)(3)(B) (42 U.S.C.
652(g)(3)(B)).
(G) Section 506(a)(1) (42 U.S.C. 706(a)).
(H) Section 908 (42 U.S.C. 1108).
(I) Section 1114(f) (42 U.S.C. 1314(f)).
(J) Section 1120 (42 U.S.C. 1320).
(K) Section 1161 (42 U.S.C. 1320c–10).
(L) Section 1875(b) (42 U.S.C. 1395ll(b)).
(M) Section 1881 (42 U.S.C. 1395rr).
(N) 
Section 
1882 
(42 
U.S.C.
1395ss(f)(2)).
(21) Section 104(b) of the Social Security Inde-
pendence and Program Improvements Act of 1994
(42 USC 904 note).
(22) Section 10 of the Railroad Retirement Act
of 1937 (45 U.S.C. 231f).
(23) The following provisions of the Railroad
Retirement Act of 1974:
(A) 
Section 
22(a)(1) 
(45 
U.S.C.
231u(a)(1)).
(B) 
Section 
22(b)(1) 
(45 
U.S.C.
231u(b)(1)).
379
(24) Section 502 of the Railroad Retirement
Solvency Act of 1983 (45 U.S.C. 231f-1).
(25) Section 47121(c) of title 49, United States
Code.
(26) The following provisions of the Omnibus
Budget Reconciliation Act of 1987 (Public Law
100–203; 101 Stat. 1330-182):
(A) Section 4007(c)(4) (42 U.S.C. 1395ww
note).
(B) Section 4079 (42 U.S.C. 1395mm
note).
(C) Section 4205 (42 U.S.C. 1395i–3
note).
(D) Section 4215 (42 U.S.C. 1396r note).
(27) The following provisions of the Inspector
General Act of 1978 (Public Law 95–452):
(A) Section 5(b).
(B) Section 5(d).
(28) The following provisions of the Public
Health Service Act:
(A) 
In 
section 
308(a) 
(42 
U.S.C.
242m(a)), subparagraphs (A), (B), (C), and
(D) of paragraph (1).
(B) Section 403 (42 U.S.C. 283).
380
(29) Section 404 of the Health Services and
Centers Amendments of 1978 (42 U.S.C. 242p)
(Public Law 95–626).
(30) The following provisions of the Older
Americans Act of 1965:
(A) Section 206(d) (42 U.S.C. 3017(d)).
(B) Section 207 (42 U.S.C. 3018).
(31) Section 308 of the Age Discrimination Act
of 1975 (42 U.S.C. 6106a(b)).
(32) Section 509(c)(3) of the Americans with
Disabilities Act 0f 1990 (42 U.S.C. 12209(c)(3)).
(33) Section 4207(f) of the Omnibus Budget
Reconciliation Act of 1990 (42 U.S.C. 1395b–1
note).
SEC. 702. EXTENSION OF DEADLINES FOR IRS COMPLIANCE
WITH CERTAIN NOTICE REQUIREMENTS.
(a) ANNUAL INSTALLMENT AGREEMENT NOTICE.—
Section 3506 of the Internal Revenue Service Restruc-
turing and Reform Act of 1998 is amended by striking
‘‘July 1, 2000’’ and inserting ‘‘September 1, 2001’’.
(b) NOTICE REQUIREMENTS RELATING
TO COM-
PUTATION OF PENALTY.—Subsection (c) of section 3306
of the Internal Revenue Service Restructuring and Reform
Act of 1998 is amended—
381
(1) by striking ‘‘December 31, 2000’’ and in-
serting ‘‘June 30, 2001’’, and
(2) by adding at the end the following: ‘‘In the
case of any notice of penalty issued after June 30,
2001, and before July 1, 2003, the requirements of
section 6751(a) of the Internal Revenue Code of
1986 shall be treated as met if such notice contains
a telephone number at which the taxpayer can re-
quest a copy of the taxpayer’s assessment and pay-
ment history with respect to such penalty.’’.
(c) NOTICE REQUIREMENTS RELATING TO INTEREST
IMPOSED.—Subsection (c) of section 3308 of the Internal
Revenue Service Restructuring and Reform Act of 1998
is amended—
(1) by striking ‘‘December 31, 2000’’ and in-
serting ‘‘June 30, 2001’’, and
(2) by adding at the end the following: ‘‘In the
case of any notice issued after June 30, 2001, and
before July 1, 2003, to which section 6631 of the
Internal Revenue Code of 1986 applies, the require-
ments of section 6631 of such Code shall be treated
as met if such notice contains a telephone number
at which the taxpayer can request a copy of the tax-
payer’s payment history relating to interest amounts
included in such notice.’’.
382
SEC. 703. EXTENSION OF AUTHORITY FOR UNDERCOVER
OPERATIONS.
Paragraph (6), and the last sentence, of section
7608(c) are each amended by striking ‘‘January 1, 2001’’
and inserting ‘‘January 1, 2006’’.
SEC. 704. CONFIDENTIALITY OF CERTAIN DOCUMENTS RE-
LATING TO CLOSING AND SIMILAR AGREE-
MENTS AND TO AGREEMENTS WITH FOREIGN
GOVERNMENTS.
(a) CLOSING AND SIMILAR AGREEMENTS TREATED
AS RETURN INFORMATION.—Paragraph (2) of section
6103(b) (defining return information) is amended by
striking ‘‘and’’ at the end of subparagraph (B), by insert-
ing ‘‘and’’ at the end of subparagraph (C), and by insert-
ing after subparagraph (C) the following new subpara-
graph:
‘‘(D) any agreement under section 7121,
and any similar agreement, and any back-
ground information related to such an agree-
ment or request for such an agreement,’’.
(b) AGREEMENTS WITH FOREIGN GOVERNMENTS.—
(1) IN GENERAL.—Subchapter B of chapter 61
(relating to miscellaneous provisions) is amended by
inserting after section 6104 the following new sec-
tion:
383
‘‘SEC. 6105. CONFIDENTIALITY OF INFORMATION ARISING
UNDER TREATY OBLIGATIONS.
‘‘(a) IN GENERAL.—Tax convention information shall
not be disclosed.
‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply—
‘‘(1) to the disclosure of tax convention infor-
mation to persons or authorities (including courts
and administrative bodies) which are entitled to such
disclosure pursuant to a tax convention,
‘‘(2) to any generally applicable procedural
rules regarding applications for relief under a tax
convention, or
‘‘(3) in any case not described in paragraphs
(1) or (2), to the disclosure of any tax convention
information not relating to a particular taxpayer if
the Secretary determines, after consultation with
each other party to the tax convention, that such
disclosure would not impair tax administration.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) TAX
CONVENTION
INFORMATION.—The
term ‘tax convention information’ means any—
‘‘(A) agreement entered into with the com-
petent authority of one or more foreign govern-
ments pursuant to a tax convention,
‘‘(B) application for relief under a tax con-
vention,
384
‘‘(C) any background information related
to such agreement or application,
‘‘(D) document implementing such agree-
ment, and
‘‘(E) any other information exchanged pur-
suant to a tax convention which is treated as
confidential or secret under the tax convention.
‘‘(2) TAX CONVENTION.—The term ‘tax conven-
tion’ means—
‘‘(A) any income tax or gift and estate tax
convention, or
‘‘(B) any other convention or bilateral
agreement (including multilateral conventions
and agreements and any agreement with a pos-
session of the United States) providing for the
avoidance of double taxation, the prevention of
fiscal evasion, nondiscrimination with respect to
taxes, the exchange of tax relevant information
with the United States, or mutual assistance in
tax matters.
‘‘(d) CROSS REFERENCES.—
‘‘For penalties for the unauthorized disclosure of
tax convention information which is return or re-
turn information, see sections 7213, 7213A, and
7431.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 61 is amended by
385
inserting after the item relating to section 6104 the
following new item:
‘‘Sec. 6105. Confidentiality of information arising under treaty
obligations.’’.
(c) EXCEPTION FROM PUBLIC INSPECTION AS WRIT-
TEN DETERMINATION.—
(1) CLOSING
AND
SIMILAR
AGREEMENTS.—
Paragraph (1) of section 6110(b) is amended to
read as follows:
‘‘(1) WRITTEN DETERMINATION.—
‘‘(A) IN GENERAL.—The term ‘written de-
termination’ means a ruling, determination let-
ter, technical advice memorandum, or Chief
Counsel advice.
‘‘(B) EXCEPTIONS.—Such term shall not
include any matter referred to in subparagraph
(C) or (D) of section 6103(b)(2).’’.
(2) AGREEMENTS
WITH
FOREIGN
GOVERN-
MENTS.—Paragraph (1) of section 6110(l) is amend-
ed by inserting ‘‘or 6105’’ after ‘‘6104’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the date of the enactment
of this Act.
386
SEC. 705. INCREASE IN THRESHOLD FOR JOINT COM-
MITTEE REPORTS ON REFUNDS AND CRED-
ITS.
(a) GENERAL RULE.—Subsections (a) and (b) of sec-
tion 6405 are each amended by striking ‘‘$1,000,000’’ and
inserting ‘‘$2,000,000’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on the date of the enact-
ment of this Act, except that such amendment shall not
apply with respect to any refund or credit with respect
to a report that has been made before such date of the
enactment under section 6405 of the Internal Revenue
Code of 1986.
SEC. 706. TREATMENT OF MISSING CHILDREN WITH RE-
SPECT TO CERTAIN TAX BENEFITS.
(a) IN GENERAL.—Subsection (c) of section 151 (re-
lating to additional exemption for dependents) is amended
by adding at the end the following new paragraph:
‘‘(6) TREATMENT OF MISSING CHILDREN.—
‘‘(A) IN
GENERAL.—Solely for the pur-
poses referred to in subparagraph (B), a child
of the taxpayer—
‘‘(i) who is presumed by law enforce-
ment authorities to have been kidnapped
by someone who is not a member of the
family of such child or the taxpayer, and
387
‘‘(ii) who was (without regard to this
paragraph) the dependent of the taxpayer
for the portion of the taxable year before
the date of the kidnapping,
shall be treated as a dependent of the taxpayer
for all taxable years ending during the period
that the child is kidnapped.
‘‘(B) PURPOSES.—Subparagraph (A) shall
apply solely for purposes of determining—
‘‘(i) the deduction under this section,
‘‘(ii) the credit under section 24 (re-
lating to child tax credit), and
‘‘(iii) whether an individual is a sur-
viving spouse or a head of a household
(such terms are defined in section 2).
‘‘(C) 
COMPARABLE
TREATMENT
FOR
EARNED INCOME CREDIT.—For purposes of sec-
tion 32, an individual—
‘‘(i) who is presumed by law enforce-
ment authorities to have been kidnapped
by someone who is not a member of the
family of such individual or the taxpayer,
and
‘‘(ii) who had, for the taxable year in
which the kidnapping occurred, the same
388
principal place of abode as the taxpayer for
more than one-half of the portion of such
year before the date of the kidnapping,
shall be treated as meeting the requirement of
section 32(c)(3)(A)(ii) with respect to a tax-
payer for all taxable years ending during the
period that the individual is kidnapped.
‘‘(D) TERMINATION
OF
TREATMENT.—
Subparagraphs (A) and (C) shall cease to apply
as of the first taxable year of the taxpayer be-
ginning after the calendar year in which there
is a determination that the child is dead (or, if
earlier, in which the child would have attained
age 18).’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 707. AMENDMENTS TO STATUTES REFERENCING
YIELD ON 52-WEEK TREASURY BILLS.
(a) AMENDMENT TO THE ACT OF FEBRUARY 26,
1931.—Section 6 of the Act of February 26, 1931 (40
U.S.C. 258e–1) (relating to the interest rate on compensa-
tion owed for takings of property) is amended—
(1) in paragraph (1), by striking ‘‘the coupon
issue yield equivalent (as determined by the Sec-
389
retary of the Treasury) of the average accepted auc-
tion price for the last auction of 52 week United
States Treasury bills settled immediately before’’
and inserting ‘‘the weekly average 1-year constant
maturity Treasury yield, as published by the Board
of Governors of the Federal Reserve System, for the
calendar week preceding’’; and
(2) in paragraph (2), by striking ‘‘the coupon
issue yield equivalent (as determined by the Sec-
retary of the Treasury) of the average accepted auc-
tion price for the last auction of 52 week United
States Treasury bills settled immediately before’’
and inserting ‘‘the weekly average 1-year constant
maturity Treasury yield, as published by the Board
of Governors of the Federal Reserve System, for the
calendar week preceding’’.
(b) AMENDMENT
TO TITLE 18, UNITED STATES
CODE.—Section 3612(f)(2)(B) of title 18, United States
Code (relating to the interest rate on unpaid criminal fines
and penalties of more than $2,500) is amended by striking
‘‘the coupon issue yield equivalent (as determined by the
Secretary of the Treasury) of the average accepted auction
price for the last auction of fifty-two week United States
Treasury bills settled before’’ and inserting ‘the weekly av-
erage 1-year constant maturity Treasury yield, as pub-
390
lished by the Board of Governors of the Federal Reserve
System, for the calendar week preceding.’’.
(c) AMENDMENT
TO
THE
INTERNAL
REVENUE
CODE.—Section 995(f)(4) (relating to the interest rate on
tax-deferred liability of shareholders of domestic inter-
national sales corporations) is amended by striking ‘‘the
average investment yield of United States Treasury bills
with maturities of 52 weeks which were auctioned during
the 1-year period’’ and inserting ‘‘the average of the 1-
year constant maturity Treasury yields, as published by
the Board of Governors of the Federal Reserve System,
for the 1-year period’’.
(d) AMENDMENTS TO TITLE 28, UNITED STATES
CODE.—
(1) AMENDMENT
TO
SECTION
1961.—Section
1961(a) of title 28, United States Code (relating to
the interest rate on money judgments in civil cases
recovered in Federal district court) is amended by
striking ‘‘the coupon issue yield equivalent (as deter-
mined by the Secretary of the Treasury) of the aver-
age accepted auction price for the last auction of
fifty-two week United States Treasury bills settled
immediately prior to’’ and inserting ‘‘the weekly av-
erage 1-year constant maturity Treasury yield, as
391
published by the Board of Governors of the Federal
Reserve System, for the calendar week preceding.’’.
(2) AMENDMENT
TO
SECTION
2516.—Section
2516(b) of title 28, United States Code (relating to
the interest rate on a judgment against the United
States affirmed by the Supreme Court after review
on petition of the United States) is amended by
striking ‘‘the coupon issue yield equivalent (as deter-
mined by the Secretary of the Treasury) of the aver-
age accepted auction price for the last auction of
fifty-two week United States Treasury bills settled
immediately before’’ and inserting ‘‘the weekly aver-
age 1-year constant maturity Treasury yield, as pub-
lished by the Board of Governors of the Federal Re-
serve System, for the calendar week preceding’’.
SEC. 708. ADJUSTMENTS FOR CONSUMER PRICE INDEX
ERROR.
(a) DETERMINATIONS BY OMB.—As soon as prac-
ticable after the date of the enactment of this Act, the
Director of the Office of Management and Budget shall
determine with respect to each applicable Federal benefit
program whether the CPI computation error for 1999 has
or will result in a shortfall in payments to beneficiaries
under such program (as compared to payments that would
have been made if the error had not occurred). As soon
392
as practicable after the date of the enactment of this Act,
but not later than 60 days after such date, the Director
shall direct the head of the Federal agency which admin-
isters such program to make a payment or payments that,
insofar as the Director finds practicable and feasible—
(1) are targeted to the amount of the shortfall
experienced by individual beneficiaries, and
(2) compensate for the shortfall.
(b) COORDINATION WITH FEDERAL AGENCIES.—As
soon as practicable after the date of the enactment of this
Act, each Federal agency that administers an applicable
Federal benefit program shall, in accordance with such
guidelines as are issued by the Director pursuant to this
section, make an initial determination of whether, and the
extent to which, the CPI computation error for 1999 has
or will result in a shortfall in payments to beneficiaries
of an applicable Federal benefit program administered by
such agency. Not later than 30 days after such date, the
head of such agency shall submit a report to the Director
and to each House of the Congress of such determination,
together with a complete description of the nature of the
shortfall.
(c) IMPLEMENTATION PURSUANT TO AGENCY RE-
PORTS.—Upon receipt of the report submitted by a Fed-
eral agency pursuant to subsection (b), the Director shall
393
review the initial determination of the agency, the agency’s
description of the nature of the shortfall, and the com-
pensation payments proposed by the agency. Prior to di-
recting payment of such payments pursuant to subsection
(a), the Director shall make appropriate adjustments (if
any) in the compensation payments proposed by the agen-
cy that the Director determines are necessary to comply
with the requirements of subsection (a) and transmit to
the agency a summary report of the review, indicating any
adjustments made by the Director. The agency shall make
the compensation payments as directed by the Director
pursuant to subsection (a) in accordance with the Direc-
tor’s summary report.
(d) INCOME DISREGARD UNDER FEDERAL MEANS-
TESTED BENEFIT PROGRAMS.—A payment made under
this section to compensate for a shortfall in benefits shall,
in accordance with guidelines issued by the Director pur-
suant to this section, be disregarded in determining in-
come under title VIII of the Social Security Act or any
applicable Federal benefit program that is means-tested.
(e) FUNDING.—Funds otherwise available under each
applicable Federal benefit program for making benefit
payments under such program are hereby made available
for making compensation payments under this section in
connection with such program.
394
(f) NO JUDICIAL REVIEW.—No action taken pursu-
ant to this section shall be subject to judicial review.
(g) DIRECTOR’S REPORT.—Not later than April 1,
2001, the Director shall submit to each House of the Con-
gress a report on the activities performed by the Director
pursuant to this section.
(h) DEFINITIONS.—For purposes of this section:
(1) APPLICABLE
FEDERAL
BENEFIT
PRO-
GRAM.—The term ‘‘applicable Federal benefit pro-
gram’’ means any program of the Government of the
United States providing for regular or periodic pay-
ments or cash assistance paid directly to individual
beneficiaries, as determined by the Director of the
Office of Management and Budget.
(2) FEDERAL
AGENCY.—The term ‘‘Federal
agency’’ means a department, agency, or instrumen-
tality of the Government of the United States.
(3) CPI COMPUTATION ERROR FOR 1999.—The
term ‘‘CPI computation error for 1999’’ means the
error in the computation of the Consumer Price
Index announced by the Bureau of Labor Statistics
on September 28, 2000.
(i) TAX PROVISIONS.—If any Consumer Price Index
(as defined in section 1(f)(5) of the Internal Revenue Code
of 1986) reflects the CPI computation error for 1999—
395
(1) the correct amount of such Index shall (in
such manner and to such extent as the Secretary of
the Treasury determines to be appropriate) be taken
into account for purposes of such Code, and
(2) tables prescribed under section 1(f) of such
Code to reflect such correct amount shall apply in
lieu of any tables that were prescribed based on the
erroneous amount.
SEC. 
709. 
PREVENTION 
OF 
DUPLICATION 
OF 
LOSS
THROUGH ASSUMPTION OF LIABILITIES GIV-
ING RISE TO A DEDUCTION.
(a) IN GENERAL.—Section 358 (relating to basis to
distributees) is amended by adding at the end the fol-
lowing new subsection:
‘‘(h) SPECIAL RULES FOR ASSUMPTION OF LIABIL-
ITIES TO WHICH SUBSECTION (d) DOES NOT APPLY.—
‘‘(1) IN GENERAL.—If, after application of the
other provisions of this section to an exchange or se-
ries of exchanges, the basis of property to which
subsection (a)(1) applies exceeds the fair market
value of such property, then such basis shall be re-
duced (but not below such fair market value) by the
amount (determined as of the date of the exchange)
of any liability—
396
‘‘(A) which is assumed in exchange for
such property, and
‘‘(B) with respect to which subsection
(d)(1) does not apply to the assumption.
‘‘(2) EXCEPTIONS.—Except as provided by the
Secretary, paragraph (1) shall not apply to any li-
ability if—
‘‘(A) the trade or business with which the
liability is associated is transferred to the per-
son assuming the liability as part of the ex-
change, or
‘‘(B) substantially all of the assets with
which the liability is associated are transferred
to the person assuming the liability as part of
the exchange.
‘‘(3) LIABILITY.—For purposes of this sub-
section, the term ‘liability’ shall include any fixed or
contingent obligation to make payment, without re-
gard to whether the obligation is otherwise taken
into account for purposes of this title.’’
(b) DETERMINATION OF AMOUNT OF LIABILITY AS-
SUMED.—Section 357(d)(1) is amended by inserting ‘‘sec-
tion 358(h),’’ after ‘‘section 358(d),’’.
397
(c) APPLICATION OF COMPARABLE RULES TO PART-
NERSHIPS AND S CORPORATIONS.—The Secretary of the
Treasury or his delegate—
(1) shall prescribe rules which provide appro-
priate adjustments under subchapter K of chapter 1
of the Internal Revenue Code of 1986 to prevent the
acceleration or duplication of losses through the as-
sumption of (or transfer of assets subject to) liabil-
ities described in section 358(h)(3) of such Code (as
added by subsection (a)) in transactions involving
partnerships, and
(2) may prescribe rules which provide appro-
priate adjustments under subchapter S of chapter 1
of such Code in transactions described in paragraph
(1) involving S corporations rather than partner-
ships.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendments made by
this section shall apply to assumptions of liability
after October 18, 1999.
(2) RULES.—The rules prescribed under sub-
section (c) shall apply to assumptions of liability
after October 18, 1999, or such later date as may
be prescribed in such rules.
398
Subtitle B—Miscellaneous
Provisions
SEC. 710. REPEAL OF 4.3-CENT MOTOR FUEL EXCISE TAXES
ON RAILROADS AND INLAND WATERWAY
TRANSPORTATION WHICH REMAIN IN GEN-
ERAL FUND.
(a) TAXES ON TRAINS.—
(1) IN GENERAL.—Subparagraph (A) of section
4041(a)(1) is amended by striking ‘‘or a diesel-pow-
ered train’’ each place it appears and by striking ‘‘or
train’’.
(2) CONFORMING AMENDMENTS.—
(A) 
Subparagraph 
(C) 
of 
section
4041(a)(1) is amended by striking clause (ii)
and by redesignating clause (iii) as clause (ii).
(B) 
Subparagraph 
(C) 
of 
section
4041(b)(1) is amended by striking all that fol-
lows ‘‘section 6421(e)(2)’’ and inserting a pe-
riod.
(C) Subsection (d) of section 4041 is
amended by redesignating paragraph (3) as
paragraph (4) and by inserting after paragraph
(2) the following new paragraph:
‘‘(3) DIESEL FUEL USED IN TRAINS.—There is
hereby imposed a tax of 0.1 cent per gallon on any
399
liquid other than gasoline (as defined in section
4083)—
‘‘(A) sold by any person to an owner, les-
see, or other operator of a diesel-powered train
for use as a fuel in such train, or
‘‘(B) used by any person as a fuel in a die-
sel-powered train unless there was a taxable
sale of such fuel under subparagraph (A).
No tax shall be imposed by this paragraph on the
sale or use of any liquid if tax was imposed on such
liquid under section 4081.’’
(D) Subsection (e) of section 4082 is
amended by striking ‘‘section 4041(a)(1)’’ and
inserting ‘‘subsections (d)(3) and (a)(1) of sec-
tion 4041, respectively’’.
(E) Paragraph (3) of section 4083(a) is
amended by striking ‘‘or a diesel-powered
train’’.
(F) Paragraph (3) of section 6421(f) is
amended to read as follows:
‘‘(3) GASOLINE USED IN TRAINS.—In the case
of gasoline used as a fuel in a train, this section
shall not apply with respect to the Leaking Under-
ground Storage Tank Trust Fund financing rate
under section 4081.’’
400
(G) Paragraph (3) of section 6427(l) is
amended to read as follows:
‘‘(3) REFUND
OF
CERTAIN
TAXES
ON
FUEL
USED IN DIESEL-POWERED TRAINS.—For purposes
of this subsection, the term ‘nontaxable use’ includes
fuel used in a diesel-powered train. The preceding
sentence shall not apply to the tax imposed by sec-
tion 4041(d) and the Leaking Underground Storage
Tank Trust Fund financing rate under section 4081
except with respect to fuel sold for exclusive use by
a State or any political subdivision thereof.’’
(b) FUEL USED ON INLAND WATERWAYS.—
(1) IN
GENERAL.—Paragraph (1) of section
4042(b) is amended by adding ‘‘and’’ at the end of
subparagraph (A), by striking ‘‘, and’’ at the end of
subparagraph (B) and inserting a period, and by
striking subparagraph (C).
(2) CONFORMING AMENDMENT.—Paragraph (2)
of section 4042(b) is amended by striking subpara-
graph (C).
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 2001.
401
SEC. 711. REPEAL OF REDUCTION OF DEDUCTIONS FOR
MUTUAL LIFE INSURANCE COMPANIES.
(a) IN GENERAL.—Section 809 (relating to reduc-
tions in certain deductions of mutual life insurance compa-
nies) is hereby repealed.
(b) CONFORMING AMENDMENTS RELATED TO RE-
PEAL OF SECTION 809.—
(1) Subsections (a)(2)(B) and (b)(1)(B) of sec-
tion 807 are each amended by striking ‘‘the sum of
(i)’’ and by striking ‘‘plus (ii) any excess described
in section 809(a)(2) for the taxable year,’’.
(2)(A) The last sentence of section 807(d)(1) is
amended by striking ‘‘(as defined in section
809(b)(4)(B))’’.
(B) Subsection (d) of section 807 is amended
by adding at the end the following new paragraph:
‘‘(6) STATUTORY RESERVES.—For purposes of
this subsection, the term ‘statutory reserves’ means
the aggregate amount set forth in the annual state-
ment with respect to items described in subsection
(c). Such term shall not include any reserve attrib-
utable to a deferred and uncollected premium if the
establishment of such reserve is not permitted under
section 811(c).’’
(3) Subsection (c) of section 808 is amended to
read as follows:
402
‘‘(c) AMOUNT OF DEDUCTION.—The deduction for
policyholder dividends for any taxable year shall be an
amount equal to the policyholder dividends paid or accrued
during the taxable year.’’
(4) Subparagraph (A) of section 812(b)(3) is
amended by striking ‘‘sections 808 and 809’’ and in-
serting ‘‘section 808’’.
(5) Subsection (c) of section 817 is amended by
striking ‘‘(other than section 809)’’.
(6) Subsection (c) of section 842 is amended by
striking paragraph (3) and by redesignating para-
graph (4) as paragraph (3).
(7) The table of sections for subpart C of part
I of subchapter L of chapter 1 is amended by strik-
ing the item relating to section 809.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 712. REPEAL OF POLICYHOLDERS SURPLUS ACCOUNT
PROVISIONS.
(a) REPEAL.—Section 815 (relating to distributions
to shareholders from pre-1984 policyholders surplus ac-
counts) is hereby repealed.
(b) CONFORMING AMENDMENTS.—
403
(1) Section 801 is amended by striking sub-
section (c).
(2) The table of sections for subpart D of part
I of subchapter L of chapter 1 is amended by strik-
ing the item relating to section 815.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 713. CREDIT TO HOLDERS OF QUALIFIED AMTRAK
BONDS.
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 (relating to credits against tax) is amended by add-
ing at the end the following new subpart:
‘‘Subpart H—Nonrefundable Credit for Holders of
Qualified Amtrak Bonds
‘‘Sec. 54. Credit to holders of qualified Amtrak bonds.
‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED AMTRAK
BONDS.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a tax-
payer who holds a qualified Amtrak bond on a credit al-
lowance date of such bond which occurs during the taxable
year, there shall be allowed as a credit against the tax
imposed by this chapter for such taxable year an amount
equal to the sum of the credits determined under sub-
404
section (b) with respect to credit allowance dates during
such year on which the taxpayer holds such bond.
‘‘(b) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—The amount of the credit
determined under this subsection with respect to any
credit allowance date for a qualified Amtrak bond is
25 percent of the annual credit determined with re-
spect to such bond.
‘‘(2) ANNUAL CREDIT.—The annual credit de-
termined with respect to any qualified Amtrak bond
is the product of—
‘‘(A) the applicable credit rate, multiplied
by
‘‘(B) the outstanding face amount of the
bond.
‘‘(3) APPLICABLE CREDIT RATE.—For purposes
of paragraph (2), the applicable credit rate with re-
spect to an issue is the rate equal to an average
market yield (as of the day before the date of sale
of the issue) on outstanding long-term corporate
debt obligations (determined under regulations pre-
scribed by the Secretary).
‘‘(4) SPECIAL RULE FOR ISSUANCE AND RE-
DEMPTION.—In the case of a bond which is issued
during the 3-month period ending on a credit allow-
405
ance date, the amount of the credit determined
under this subsection with respect to such credit al-
lowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-
month period during which the bond is outstanding.
A similar rule shall apply when the bond is re-
deemed.
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.—
‘‘(1) IN GENERAL.—The credit allowed under
subsection (a) for any taxable year shall not exceed
the excess of—
‘‘(A) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax im-
posed by section 55, over
‘‘(B) the sum of the credits allowable
under this part (other than this subpart and
subpart C).
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the
credit allowable under subsection (a) exceeds the
limitation imposed by paragraph (1) for such taxable
year, such excess shall be carried to the succeeding
taxable year and added to the credit allowable under
subsection (a) for such taxable year.
‘‘(d) QUALIFIED AMTRAK BOND.—For purposes of
this part—
406
‘‘(1) IN GENERAL.—The term ‘qualified Amtrak
bond’ means any bond issued as part of an issue
if—
‘‘(A) 95 percent or more of the proceeds of
such issue are to be used for any qualified
project,
‘‘(B) the bond is issued by the National
Railroad Passenger Corporation,
‘‘(C) the issuer—
‘‘(i) designates such bond for purposes
of this section,
‘‘(ii) certifies that it meets the State
contribution requirement of paragraph (3)
with respect to such project and that it has
received the required State contribution
payment before the issuance of such bond,
and
‘‘(iii) certifies that it has obtained the
written approval of the Secretary of Trans-
portation for such project, including a
finding by the Inspector General of the De-
partment of Transportation that there is a
reasonable likelihood that the proposed
program will result in a positive incre-
mental financial contribution to the Na-
407
tional Railroad Passenger Corporation and
that the investment evaluation process in-
cludes a return on investment, leveraging
of funds (including State capital and oper-
ating contributions), cost effectiveness,
safety improvement, mobility improvement,
and feasibility,
‘‘(D) the term of each bond which is part
of such issue does not exceed 20 years,
‘‘(E) the payment of principal with respect
to such bond is the obligation of the National
Railroad Passenger Corporation (regardless of
the establishment of the trust account under
subsection (j)), and
‘‘(F) the issue meets the requirements of
subsection (h).
‘‘(2) TREATMENT OF CHANGES IN USE.—For
purposes of paragraph (1)(A), the proceeds of an
issue shall not be treated as used for a qualified
project to the extent that the issuer takes any action
within its control which causes such proceeds not to
be used for a qualified project. The Secretary shall
prescribe regulations specifying remedial actions that
may be taken (including conditions to taking such
remedial actions) to prevent an action described in
408
the preceding sentence from causing a bond to fail
to be a qualified Amtrak bond.
‘‘(3) STATE CONTRIBUTION REQUIREMENT.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(C)(ii), the State contribution require-
ment of this paragraph is met with respect to
any qualified project if the National Railroad
Passenger Corporation has a written binding
commitment from 1 or more States to make
matching contributions not later than the date
of issuance of the issue of not less than 20 per-
cent of the cost of the qualified project.
‘‘(B) USE OF STATE MATCHING CONTRIBU-
TIONS.—The matching contributions described
in subparagraph (A) with respect to each quali-
fied project shall be used—
‘‘(i) as necessary to redeem bonds
which are a part of the issue with respect
to such project, and
‘‘(ii) in the case of any remaining
amount, at the election of the National
Railroad Passenger Corporation and the
contributing State—
‘‘(I) to fund a qualified project,
409
‘‘(II) to redeem other qualified
Amtrak bonds, or
‘‘(III) for the purposes of sub-
clauses (I) and (II).
‘‘(C) STATE
MATCHING
CONTRIBUTIONS
MAY NOT INCLUDE FEDERAL FUNDS.—For pur-
poses of this paragraph, State matching con-
tributions shall not be derived, directly or indi-
rectly, from Federal funds, including any trans-
fers from the Highway Trust Fund under sec-
tion 9503.
‘‘(D) NO STATE CONTRIBUTION REQUIRE-
MENT
FOR
CERTAIN
QUALIFIED
PROJECTS.—
With respect to any qualified project described
in paragraph (2)(B) or (4) of subsection (e),
the State contribution requirement of this para-
graph is zero.
‘‘(4) QUALIFIED PROJECT.—
‘‘(A) IN
GENERAL.—The term ‘qualified
project’ means—
‘‘(i) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and
other capital improvements for the north-
east rail corridor between Washington,
D.C. and Boston, Massachusetts (including
410
the 
project 
described 
in 
subsection
(e)(2)(B)),
‘‘(ii) the acquisition, financing, or refi-
nancing of equipment, rolling stock, and
other capital improvements for the im-
provement of train speeds or safety (or
both) on the high-speed rail corridors des-
ignated under section 104(d)(2) of title 23,
United States Code, and
‘‘(iii) the acquisition, financing, or re-
financing of equipment, rolling stock, and
other capital improvements for other inter-
city passenger rail corridors, including sta-
tion rehabilitation or construction, track or
signal improvements, or the elimination of
grade crossings.
‘‘(B) REFINANCING RULES.—For purposes
of subparagraph (A), a refinancing shall con-
stitute a qualified project only if the indebted-
ness being refinanced (including any obligation
directly or indirectly refinanced by such indebt-
edness) was originally incurred by the National
Railroad Passenger Corporation—
‘‘(i) after the date of the enactment of
this section,
411
‘‘(ii) for a term of not more than 3
years,
‘‘(iii) to finance or acquire capital im-
provements described in subparagraph (A),
and
‘‘(iv) in anticipation of being refi-
nanced with proceeds of a qualified Am-
trak bond.
‘‘(e) LIMITATIONS
ON AMOUNT
OF BONDS DES-
IGNATED.—
‘‘(1) IN GENERAL.—There is a qualified Am-
trak bond limitation for each fiscal year. Such limi-
tation is—
‘‘(A) $1,000,000,000 for each of the fiscal
years 2001 through 2010, and
‘‘(B) except as provided in paragraph (5),
zero after fiscal year 2010.
‘‘(2) BONDS FOR RAIL CORRIDORS.—
‘‘(A) 
IN
GENERAL.—Not 
more 
than
$3,000,000,000 of the limitation under para-
graph (1) may be designated for any 1 rail cor-
ridor described in clause (i) or (ii) of subsection
(d)(4)(A).
‘‘(B) SPECIFIC QUALIFIED PROJECT ALLO-
CATION.—Of the amount described in subpara-
412
graph (A), the Secretary of Transportation
shall allocate $92,000,000 for the acquisition
and installation of platform facilities, perform-
ance of railroad force account work necessary to
complete improvements below street grade, and
any other necessary improvements related to
construction at the railroad station at the
James A. Farley Post Office Building in New
York City, New York.
‘‘(3) BONDS FOR OTHER PROJECTS.—Not more
than 10 percent of the limitation under paragraph
(1) for any fiscal year may be allocated to qualified
projects described in subsection (d)(4)(A)(iii).
‘‘(4) BONDS FOR ALASKA RAILROAD.—The Sec-
retary of Transportation may allocate to the Alaska
Railroad a portion of the qualified Amtrak limitation
for any fiscal year in order to allow the Alaska Rail-
road to issue bonds which meet the requirements of
this section for use in financing any project de-
scribed in subsection (d)(4)(A)(iii). For purposes of
this section, the Alaska Railroad shall be treated in
the same manner as the National Railroad Pas-
senger Corporation.
‘‘(5) CARRYOVER OF UNUSED LIMITATION.—If
for any fiscal year—
413
‘‘(A) the limitation amount under para-
graph (1), exceeds
‘‘(B) the amount of bonds issued during
such year which are designated under sub-
section (d)(1)(C)(i),
the limitation amount under paragraph (1) for the
following fiscal year (through fiscal year 2014) shall
be increased by the amount of such excess.
‘‘(6) PREFERENCE FOR GREATER STATE PAR-
TICIPATION.—In selecting qualified projects for allo-
cation of the qualified Amtrak bond limitation under
this subsection, the Secretary of Transportation
shall give preference to any project with a State
matching contribution rate exceeding 20 percent.
‘‘(f) OTHER DEFINITIONS.—For purposes of this
subpart—
‘‘(1) BOND.—The term ‘bond’ includes any ob-
ligation.
‘‘(2) CREDIT
ALLOWANCE
DATE.—The term
‘credit allowance date’ means—
‘‘(A) March 15,
‘‘(B) June 15,
‘‘(C) September 15, and
‘‘(D) December 15.
414
Such term includes the last day on which the bond
is outstanding.
‘‘(3) STATE.—The term ‘State’ means the sev-
eral States and the District of Columbia, and any
subdivision thereof.
‘‘(4) PROGRAM.—The term ‘program’ means 1
or more projects implemented over 1 or more years
to support the development of intercity passenger
rail corridors.
‘‘(g) CREDIT INCLUDED IN GROSS INCOME.—Gross
income includes the amount of the credit allowed to the
taxpayer under this section (determined without regard to
subsection (c)) and the amount so included shall be treat-
ed as interest income.
‘‘(h) SPECIAL RULES RELATING TO ARBITRAGE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
an issue shall be treated as meeting the require-
ments of this subsection if as of the date of
issuance, the issuer reasonably expects—
‘‘(A) to spend at least 95 percent of the
proceeds of the issue for 1 or more qualified
projects within the 3-year period beginning on
such date,
‘‘(B) to incur a binding commitment with
a third party to spend at least 10 percent of the
415
proceeds of the issue, or to commence construc-
tion, with respect to such projects within the 6-
month period beginning on such date, and
‘‘(C) to proceed with due diligence to com-
plete such projects and to spend the proceeds of
the issue.
‘‘(2) RULES REGARDING CONTINUING COMPLI-
ANCE AFTER 3-YEAR DETERMINATION.—If at least
95 percent of the proceeds of the issue is not ex-
pended for 1 or more qualified projects within the 3-
year period beginning on the date of issuance, an
issue shall be treated as continuing to meet the re-
quirements of this subsection if either—
‘‘(A) the issuer uses all unspent proceeds
of the issue to redeem bonds of the issue within
90 days after the end of such 3-year period, or
‘‘(B) the following requirements are met:
‘‘(i) The issuer spends at least 75 per-
cent of the proceeds of the issue for 1 or
more qualified projects within the 3-year
period beginning on the date of issuance.
‘‘(ii) The issuer has proceeded with
due diligence to spend the proceeds of the
issue within such 3-year period and con-
416
tinues to proceed with due diligence to
spend such proceeds.
‘‘(iii) The issuer pays to the Federal
Government any earnings on the proceeds
of the issue that accrue after the end of
such 3-year period.
‘‘(iv) Either—
‘‘(I) at least 95 percent of the
proceeds of the issue is expended for
1 or more qualified projects within the
4-year period beginning on the date of
issuance, or
‘‘(II) the issuer uses all unspent
proceeds of the issue to redeem bonds
of the issue within 90 days after the
end of such 4-year period.
‘‘(i) RECAPTURE OF PORTION OF CREDIT WHERE
CESSATION OF COMPLIANCE.—
‘‘(1) IN GENERAL.—If any bond which when
issued purported to be a qualified Amtrak bond
ceases to be a qualified Amtrak bond, the issuer
shall pay to the United States (at the time required
by the Secretary) an amount equal to the sum of—
‘‘(A) the aggregate of the credits allowable
under this section with respect to such bond
417
(determined without regard to subsection (c))
for taxable years ending during the calendar
year in which such cessation occurs and the 2
preceding calendar years, and
‘‘(B) interest at the underpayment rate
under section 6621 on the amount determined
under subparagraph (A) for each calendar year
for the period beginning on the first day of
such calendar year.
‘‘(2) FAILURE TO PAY.—If the issuer fails to
timely pay the amount required by paragraph (1)
with respect to such bond, the tax imposed by this
chapter on each holder of any such bond which is
part of such issue shall be increased (for the taxable
year of the holder in which such cessation occurs) by
the aggregate decrease in the credits allowed under
this section to such holder for taxable years begin-
ning in such 3 calendar years which would have re-
sulted solely from denying any credit under this sec-
tion with respect to such issue for such taxable
years.
‘‘(3) SPECIAL RULES.—
‘‘(A) TAX
BENEFIT
RULE.—The tax for
the taxable year shall be increased under para-
graph (2) only with respect to credits allowed
418
by reason of this section which were used to re-
duce tax liability. In the case of credits not so
used to reduce tax liability, the carryforwards
and carrybacks under section 39 shall be appro-
priately adjusted.
‘‘(B) NO CREDITS AGAINST TAX.—Any in-
crease in tax under paragraph (2) shall not be
treated as a tax imposed by this chapter for
purposes of determining —
‘‘(i) the amount of any credit allow-
able under this part, or
‘‘(ii) the amount of the tax imposed
by section 55.
‘‘(j) USE OF TRUST ACCOUNT.—
‘‘(1) IN GENERAL.—The amount of any match-
ing contribution with respect to a qualified project
described 
in 
subsection 
(d)(3)(B)(i) 
or
(d)(3)(B)(ii)(II) and the temporary period invest-
ment earnings on proceeds of the issue with respect
to such project, and any earnings thereon, shall be
held in a trust account by a trustee independent of
the National Railroad Passenger Corporation to be
used to the extent necessary to redeem bonds which
are part of such issue.
419
‘‘(2) USE OF REMAINING FUNDS IN TRUST AC-
COUNT.—Upon the repayment of the principal of all
qualified Amtrak bonds issued under this section,
any remaining funds in the trust account described
in paragraph (1) shall be available—
‘‘(A) to the trustee described in paragraph
(1), to meet any remaining obligations under
any guaranteed investment contract used to se-
cure earnings sufficient to repay the principal
of such bonds, and
‘‘(B) to the issuer, for any qualified
project.
‘‘(k) OTHER SPECIAL RULES.—
‘‘(1) PARTNERSHIP; 
S
CORPORATION; 
AND
OTHER
PASS-THRU
ENTITIES.—Under regulations
prescribed by the Secretary, in the case of a partner-
ship, trust, S corporation, or other pass-thru entity,
rules similar to the rules of section 41(g) shall apply
with respect to the credit allowable under subsection
(a).
‘‘(2) BONDS
HELD
BY
REGULATED
INVEST-
MENT COMPANIES.—If any qualified Amtrak bond is
held by a regulated investment company, the credit
determined under subsection (a) shall be allowed to
420
shareholders of such company under procedures pre-
scribed by the Secretary.
‘‘(3) CREDITS MAY BE STRIPPED.—Under regu-
lations prescribed by the Secretary—
‘‘(A) IN GENERAL.—There may be a sepa-
ration (including at issuance) of the ownership
of a qualified Amtrak bond and the entitlement
to the credit under this section with respect to
such bond. In case of any such separation, the
credit under this section shall be allowed to the
person who on the credit allowance date holds
the instrument evidencing the entitlement to
the credit and not to the holder of the bond.
‘‘(B) CERTAIN RULES TO APPLY.—In the
case of a separation described in subparagraph
(A), the rules of section 1286 shall apply to the
qualified Amtrak bond as if it were a stripped
bond and to the credit under this section as if
it were a stripped coupon.
‘‘(4) TREATMENT FOR ESTIMATED TAX PUR-
POSES.—Solely for purposes of sections 6654 and
6655, the credit allowed by this section to a tax-
payer by reason of holding a qualified Amtrak bond
on a credit allowance date shall be treated as if it
421
were a payment of estimated tax made by the tax-
payer on such date.
‘‘(5) CREDIT MAY BE TRANSFERRED.—Nothing
in any law or rule of law shall be construed to limit
the transferability of the credit allowed by this sec-
tion through sale and repurchase agreements.
‘‘(6) REPORTING.—Issuers of qualified Amtrak
bonds shall submit reports similar to the reports re-
quired under section 149(e).’’.
(b) REPORTING.—Subsection (d) of section 6049 (re-
lating to returns regarding payments of interest), as
amended by section 505(d), is amended by adding at the
end the following new paragraph:
‘‘(9) REPORTING OF CREDIT ON QUALIFIED AM-
TRAK BONDS.—
‘‘(A) IN GENERAL.—For purposes of sub-
section (a), the term ‘interest’ includes amounts
includible in gross income under section 54(g)
and such amounts shall be treated as paid on
the credit allowance date (as defined in section
54(f)(2)).
‘‘(B) 
REPORTING
TO
CORPORATIONS,
ETC.—Except as otherwise provided in regula-
tions, in the case of any interest described in
subparagraph (A) of this paragraph, subsection
422
(b)(4) of this section shall be applied without
regard to subparagraphs (A), (H), (I), (J), (K),
and (L)(i).
‘‘(C) REGULATORY AUTHORITY.—The Sec-
retary may prescribe such regulations as are
necessary or appropriate to carry out the pur-
poses of this paragraph, including regulations
which require more frequent or more detailed
reporting.’’.
(c) CLERICAL AMENDMENTS.—
(1) The table of subparts for part IV of sub-
chapter A of chapter 1 is amended by adding at the
end the following new item:
‘‘Subpart H. Nonrefundable Credit for Holders of Qualified Am-
trak Bonds.’’.
(2) Section 6401(b)(1) is amended by striking
‘‘and G’’ and inserting ‘‘G, and H’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to obligations issued after Sep-
tember 30, 2000.
(e) MULTI-YEAR CAPITAL SPENDING PLAN
AND
OVERSIGHT.—
(1) AMTRAK CAPITAL SPENDING PLAN.—
(A) IN GENERAL.—The National Railroad
Passenger Corporation shall annually submit to
the President and Congress a multi-year capital
423
spending plan, as approved by the Board of Di-
rectors of the Corporation.
(B) CONTENTS OF PLAN.—Such plan shall
identify the capital investment needs of the
Corporation over a period of not less than 5
years and the funding sources available to fi-
nance such needs and shall prioritize such
needs according to corporate goals and strate-
gies.
(C) INITIAL SUBMISSION DATE.—The first
plan shall be submitted before the issuance of
any qualified Amtrak bonds by the National
Railroad Passenger Corporation pursuant to
section 54 of the Internal Revenue Code of
1986 (as added by this section).
(2) OVERSIGHT OF AMTRAK TRUST ACCOUNT
AND QUALIFIED PROJECTS.—
(A) TRUST
ACCOUNT
OVERSIGHT.—The
Secretary of the Treasury shall annually report
to Congress as to whether the amount deposited
in the trust account established by the National
Railroad Passenger Corporation under section
54(i) of such Code (as so added) is sufficient to
fully repay at maturity the principal of any out-
standing qualified Amtrak bonds issued pursu-
424
ant to section 54 of such Code (as so added),
together with amounts expected to be deposited
into such account, as certified by the National
Railroad Passenger Corporation in accordance
with procedures prescribed by the Secretary of
the Treasury.
(B) PROJECT OVERSIGHT.—The National
Railroad Passenger Corporation shall contract
for an annual independent assessment of the
costs and benefits of the qualified projects fi-
nanced by such qualified Amtrak bonds, includ-
ing an assessment of the investment evaluation
process of the Corporation. The annual assess-
ment shall be included in the plan submitted
under paragraph (1).
(C) OVERSIGHT FUNDING.—Not more than
0.5 percent of the amounts made available
through the issuance of qualified Amtrak bonds
by the National Railroad Passenger Corpora-
tion pursuant to section 54 of such Code (as so
added) may be used by the National Railroad
Passenger Corporation for assessments de-
scribed in subparagraph (B).
(f) PROTECTION OF HIGHWAY TRUST FUND.—
425
(1) CERTIFICATION
BY
THE
SECRETARY
OF
THE TREASURY.—The issuance of any qualified Am-
trak bonds by the National Railroad Passenger Cor-
poration or the Alaska Railroad pursuant to section
54 of the Internal Revenue Code of 1986 (as added
by this section) is conditioned on certification by the
Secretary of the Treasury, after consultation with
the Secretary of Transportation, within 30 days of
a request by the issuer, that with respect to funds
of the Highway Trust Fund described under para-
graph (2), the issuer either—
(A) has not received such funds during fis-
cal years commencing with fiscal year 2001 and
ending before the fiscal year the bonds are
issued, or
(B) has repaid to the Highway Trust Fund
any such funds which were received during such
fiscal years.
(2) 
APPLICABILITY.—This 
subsection 
shall
apply to funds received directly, or indirectly from a
State or local transit authority, from the Highway
Trust Fund established under section 9503 of the
Internal Revenue Code of 1986, except for funds au-
thorized to be expended under section 9503(c) of
426
such Code, as in effect on the date of the enactment
of this Act.
(3) NO
RETROACTIVE
EFFECT.—Nothing in
this subsection shall adversely affect the entitlement
of the holders of qualified Amtrak bonds to the tax
credit allowed pursuant to section 54 of the Internal
Revenue Code of 1986 (as so added) or to repay-
ment of principal upon maturity.
SEC. 714. FARM, FISHING, AND RANCH RISK MANAGEMENT
ACCOUNTS.
(a) IN GENERAL.—Subpart C of part II of sub-
chapter E of chapter 1 (relating to taxable year for which
deductions taken) is amended by inserting after section
468B the following new section:
‘‘SEC. 468C. FARM, FISHING, AND RANCH RISK MANAGE-
MENT ACCOUNTS.
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual engaged in an eligible farming business or commer-
cial fishing, there shall be allowed as a deduction for any
taxable year the amount paid in cash by the taxpayer dur-
ing the taxable year to a Farm, Fishing, and Ranch Risk
Management Account (hereinafter referred to as the
‘FFARRM Account’).
‘‘(b) LIMITATION.—
427
‘‘(1) CONTRIBUTIONS.—The amount which a
taxpayer may pay into the FFARRM Account for
any taxable year shall not exceed 20 percent of so
much of the taxable income of the taxpayer (deter-
mined without regard to this section) which is at-
tributable (determined in the manner applicable
under section 1301) to any eligible farming business
or commercial fishing.
‘‘(2) DISTRIBUTIONS.—Distributions from a
FFARRM Account may not be used to purchase,
lease, or finance any new fishing vessel, add capacity
to any fishery, or otherwise contribute to the over-
capitalization of any fishery. The Secretary of Com-
merce shall implement regulations to enforce this
paragraph.
‘‘(c) ELIGIBLE BUSINESSES.—For purposes of this
section—
‘‘(1) ELIGIBLE FARMING BUSINESS.—The term
‘eligible farming business’ means any farming busi-
ness (as defined in section 263A(e)(4)) which is not
a passive activity (within the meaning of section
469(c)) of the taxpayer.
‘‘(2) COMMERCIAL FISHING.—The term ‘com-
mercial fishing’ has the meaning given such term by
section (3) of the Magnuson-Stevens Fishery Con-
428
servation and Management Act (16 U.S.C. 1802)
but only if such fishing is not a passive activity
(within the meaning of section 469(c)) of the tax-
payer.
‘‘(d) FFARRM ACCOUNT.—For purposes of this
section—
‘‘(1) IN GENERAL.—The term ‘FFARRM Ac-
count’ means a trust created or organized in the
United States for the exclusive benefit of the tax-
payer, but only if the written governing instrument
creating the trust meets the following requirements:
‘‘(A) No contribution will be accepted for
any taxable year in excess of the amount al-
lowed as a deduction under subsection (a) for
such year.
‘‘(B) The trustee is a bank (as defined in
section 408(n)) or another person who dem-
onstrates to the satisfaction of the Secretary
that the manner in which such person will ad-
minister the trust will be consistent with the re-
quirements of this section.
‘‘(C) The assets of the trust consist en-
tirely of cash or of obligations which have ade-
quate stated interest (as defined in section
429
1274(c)(2)) and which pay such interest not
less often than annually.
‘‘(D) All income of the trust is distributed
currently to the grantor.
‘‘(E) The assets of the trust will not be
commingled with other property except in a
common trust fund or common investment
fund.
‘‘(2) ACCOUNT TAXED AS GRANTOR TRUST.—
The grantor of a FFARRM Account shall be treated
for purposes of this title as the owner of such Ac-
count and shall be subject to tax thereon in accord-
ance with subpart E of part I of subchapter J of
this chapter (relating to grantors and others treated
as substantial owners).
‘‘(e) INCLUSION OF AMOUNTS DISTRIBUTED.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), there shall be includible in the gross in-
come of the taxpayer for any taxable year—
‘‘(A) any amount distributed from a
FFARRM Account of the taxpayer during such
taxable year, and
‘‘(B) any deemed distribution under—
‘‘(i) subsection (f )(1) (relating to de-
posits not distributed within 5 years),
430
‘‘(ii) subsection (f )(2) (relating to ces-
sation in eligible farming business), and
‘‘(iii) subparagraph (B) or (C) of sub-
section (f )(3) (relating to prohibited trans-
actions and pledging account as security).
‘‘(2) EXCEPTIONS.—Paragraph (1)(A) shall not
apply to—
‘‘(A) any distribution to the extent attrib-
utable to income of the Account, and
‘‘(B) the distribution of any contribution
paid during a taxable year to a FFARRM Ac-
count to the extent that such contribution ex-
ceeds the limitation applicable under subsection
(b) if requirements similar to the requirements
of section 408(d)(4) are met.
For purposes of subparagraph (A), distributions
shall be treated as first attributable to income and
then to other amounts.
‘‘(f ) SPECIAL RULES.—
‘‘(1) TAX
ON
DEPOSITS
IN
ACCOUNT
WHICH
ARE NOT DISTRIBUTED WITHIN 5 YEARS.—
‘‘(A) IN GENERAL.—If, at the close of any
taxable year, there is a nonqualified balance in
any FFARRM Account—
431
‘‘(i) there shall be deemed distributed
from such Account during such taxable
year an amount equal to such balance, and
‘‘(ii) the taxpayer’s tax imposed by
this chapter for such taxable year shall be
increased by 10 percent of such deemed
distribution.
The preceding sentence shall not apply if an
amount equal to such nonqualified balance is
distributed from such Account to the taxpayer
before the due date (including extensions) for
filing the return of tax imposed by this chapter
for such year (or, if earlier, the date the tax-
payer files such return for such year).
‘‘(B) NONQUALIFIED BALANCE.—For pur-
poses of subparagraph (A), the term ‘non-
qualified balance’ means any balance in the Ac-
count on the last day of the taxable year which
is attributable to amounts deposited in such Ac-
count before the 4th preceding taxable year.
‘‘(C) ORDERING RULE.—For purposes of
this paragraph, distributions from a FFARRM
Account (other than distributions of current in-
come) shall be treated as made from deposits in
432
the order in which such deposits were made, be-
ginning with the earliest deposits.
‘‘(2) CESSATION
IN
ELIGIBLE
BUSINESS.—At
the close of the first disqualification period after a
period for which the taxpayer was engaged in an eli-
gible farming business or commercial fishing, there
shall be deemed distributed from the FFARRM Ac-
count of the taxpayer an amount equal to the bal-
ance in such Account (if any) at the close of such
disqualification period. For purposes of the pre-
ceding sentence, the term ‘disqualification period’
means any period of 2 consecutive taxable years for
which the taxpayer is not engaged in an eligible
farming business or commercial fishing.
‘‘(3) CERTAIN RULES TO APPLY.—Rules similar
to the following rules shall apply for purposes of this
section:
‘‘(A) Section 220(f )(8) (relating to treat-
ment on death).
‘‘(B) Section 408(e)(2) (relating to loss of
exemption of account where individual engages
in prohibited transaction).
‘‘(C) Section 408(e)(4) (relating to effect
of pledging account as security).
433
‘‘(D) Section 408(g) (relating to commu-
nity property laws).
‘‘(E) Section 408(h) (relating to custodial
accounts).
‘‘(4) TIME WHEN PAYMENTS DEEMED MADE.—
For purposes of this section, a taxpayer shall be
deemed to have made a payment to a FFARRM Ac-
count on the last day of a taxable year if such pay-
ment is made on account of such taxable year and
is made on or before the due date (without regard
to extensions) for filing the return of tax for such
taxable year.
‘‘(5) INDIVIDUAL.—For purposes of this sec-
tion, the term ‘individual’ shall not include an estate
or trust.
‘‘(6) DEDUCTION NOT ALLOWED FOR SELF-EM-
PLOYMENT TAX.—The deduction allowable by reason
of subsection (a) shall not be taken into account in
determining an individual’s net earnings from self-
employment (within the meaning of section 1402(a))
for purposes of chapter 2.
‘‘(g) REPORTS.—The trustee of a FFARRM Account
shall make such reports regarding such Account to the
Secretary and to the person for whose benefit the Account
is maintained with respect to contributions, distributions,
434
and such other matters as the Secretary may require
under regulations. The reports required by this subsection
shall be filed at such time and in such manner and fur-
nished to such persons at such time and in such manner
as may be required by such regulations.’’.
(b) TAX ON EXCESS CONTRIBUTIONS.—
(1) Subsection (a) of section 4973 (relating to
tax on excess contributions to certain tax-favored ac-
counts and annuities) is amended by striking ‘‘or’’
at the end of paragraph (3), by redesignating para-
graph (4) as paragraph (5), and by inserting after
paragraph (3) the following new paragraph:
‘‘(4) a FFARRM Account (within the meaning
of section 468C(d)), or’’.
(2) Section 4973 is amended by adding at the
end the following new subsection:
‘‘(g) EXCESS CONTRIBUTIONS
TO FFARRM AC-
COUNTS.—For purposes of this section, in the case of a
FFARRM Account (within the meaning of section
468C(d)), the term ‘excess contributions’ means the
amount by which the amount contributed for the taxable
year to the Account exceeds the amount which may be con-
tributed to the Account under section 468C(b) for such
taxable year. For purposes of this subsection, any con-
tribution which is distributed out of the FFARRM Ac-
435
count in a distribution to which section 468C(e)(2)(B) ap-
plies shall be treated as an amount not contributed.’’.
(3) The section heading for section 4973 is
amended to read as follows:
‘‘SEC. 4973. EXCESS CONTRIBUTIONS TO CERTAIN AC-
COUNTS, ANNUITIES, ETC.’’.
(4) The table of sections for chapter 43 is
amended by striking the item relating to section
4973 and inserting the following new item:
‘‘Sec. 4973. Excess contributions to certain accounts, annuities,
etc.’’.
(c) TAX ON PROHIBITED TRANSACTIONS.—
(1) Subsection (c) of section 4975 (relating to
tax on prohibited transactions) is amended by add-
ing at the end the following new paragraph:
‘‘(6) SPECIAL RULE FOR FFARRM ACCOUNTS.—
A person for whose benefit a FFARRM Account
(within the meaning of section 468C(d)) is estab-
lished shall be exempt from the tax imposed by this
section with respect to any transaction concerning
such account (which would otherwise be taxable
under this section) if, with respect to such trans-
action, the account ceases to be a FFARRM Ac-
count by reason of the application of section
468C(f )(3)(A) to such account.’’.
436
(2) Paragraph (1) of section 4975(e) is amend-
ed by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), respectively, and by in-
serting after subparagraph (D) the following new
subparagraph:
‘‘(E) a FFARRM Account described in
section 468C(d),’’.
(d) FAILURE TO PROVIDE REPORTS ON FFARRM
ACCOUNTS.—Paragraph (2) of section 6693(a) (relating
to failure to provide reports on certain tax-favored ac-
counts or annuities) is amended by redesignating subpara-
graphs (C) and (D) as subparagraphs (D) and (E), re-
spectively, and by inserting after subparagraph (B) the
following new subparagraph:
‘‘(C) 
section 
468C(g) 
(relating 
to
FFARRM Accounts),’’.
(e) CLERICAL AMENDMENT.—The table of sections
for subpart C of part II of subchapter E of chapter 1 is
amended by inserting after the item relating to section
468B the following new item:
‘‘Sec. 468C. Farm, Fishing and Ranch Risk Management Ac-
counts.’’.
(f ) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
437
SEC. 715. EXTENSION OF ENHANCED DEDUCTION FOR COR-
PORATE DONATIONS OF COMPUTER TECH-
NOLOGY.
(a) EXPANSION OF COMPUTER TECHNOLOGY DONA-
TIONS TO PUBLIC LIBRARIES.—
(1) IN
GENERAL.—Paragraph (6) of section
170(e) (relating to special rule for contributions of
computer technology and equipment for elementary
or secondary school purposes) is amended by strik-
ing ‘‘qualified elementary or secondary educational
contribution’’ each place it occurs in the headings
and text and inserting ‘‘qualified computer contribu-
tion’’.
(2) EXPANSION OF ELIGIBLE DONEES.—Clause
(i) of section 170(e)(6)(B) (relating to qualified ele-
mentary or secondary educational contribution) is
amended by striking ‘‘or’’ at the end of subclause
(I), by adding ‘‘or’’ at the end of subclause (II), and
by inserting after subclause (II) the following new
subclause:
‘‘(III) a public library (within the
meaning of section 213(2)(A) of the
Library Services and Technology Act
(20 U.S.C. 9122(2)(A)), as in effect
on the date of the enactment of the
Community Renewal and New Mar-
438
kets Act of 2000, established and
maintained by an entity described in
subsection (c)(1),’’.
(3) EXTENSION OF DONATION PERIOD.—Clause
(ii) of section 170(e)(6)(B) is amended by striking
‘‘2 years’’ and inserting ‘‘3 years’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 170(e)(6)(B)(iv) is amended by
striking ‘‘in any grades of the K–12’’.
(2) The heading of paragraph (6) of section
170(e) is amended by striking ‘‘ELEMENTARY OR
SECONDARY
SCHOOL
PURPOSES’’ and inserting
‘‘EDUCATIONAL PURPOSES’’.
(c) 
EXTENSION
OF
DEDUCTION.—Section
170(e)(6)(F) (relating to termination) is amended by
striking ‘‘December 31, 2000’’ and inserting ‘‘December
31, 2003’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions made after De-
cember 31, 2000.
439
SEC. 716. RELIEF FROM FEDERAL TAX LIABILITY ARISING
WITH RESPECT TO CERTAIN CLAIMS AGAINST
THE DEPARTMENT OF AGRICULTURE FOR
DISCRIMINATION IN FARM CREDIT AND BEN-
EFIT PROGRAMS.
Notwithstanding any provision of the Internal Rev-
enue Code of 1986, in the case of a person who is certified
to be a member of the plaintiff class in the settlement of
the consolidated actions entitled ‘‘Pigford, et al. v. Glick-
man’’, No. 97–1978 (D.D.C.) (PLF), and ‘‘Brewington et
al. v. Glickman’’, No. 98–1693 (D.D.C.) (PLF), gross in-
come for purposes of subtitle A of such Code shall not
include—
(1) any cash payment received before, on, or
after the date of the enactment of this Act by, or
made on behalf of, a person under such settlement,
and
(2) any amount which (but for this section)
would be includible in gross income by reason of the
discharge of indebtedness pursuant to such settle-
ment.
SEC. 717. EXPANSION OF CREDIT FOR ADOPTION EX-
PENSES.
(a) INCREASE IN EXPENSES ALLOWABLE FOR ADOP-
TION.—Paragraph (1) of section 23(b) (relating to dollar
limitation) is amended to read as follows:
440
‘‘(1) DOLLAR LIMITATION.—
‘‘(A) 
IN
GENERAL.—The 
aggregate
amount of qualified adoption expenses which
may be taken into account under subsection (a)
for all taxable years with respect to the adop-
tion of a child by the taxpayer shall not exceed
the applicable amount.
‘‘(B) APPLICABLE AMOUNT.—For purposes
of subparagraph (A)—
‘‘(i) CHILD WITH SPECIAL NEEDS.—
In the case of a child with special needs,
the applicable amount for a taxable year
shall be the amount determined in accord-
ance with the following table:
‘‘For taxable years
The applicable
beginning in:
amount is:
2001 .............................................................................
$8,000
2002 .............................................................................
$10,000
2003 and thereafter .....................................................
$12,000.
‘‘(ii) OTHER CHILDREN.—In the case
of a child who is not a child with special
needs, the applicable amount for a taxable
year shall be the amount determined in ac-
cordance with the following table:
‘‘For taxable years
The applicable
beginning in:
amount is:
2001 .............................................................................
$6,000
2002 .............................................................................
$7,000
2003 .............................................................................
$8,000
2004 .............................................................................
$9,000
2005 and thereafter ..................................................... $10,000.’’.
441
(b) INCREASE IN INCOME LIMITATION.—Clause (i) of
section 23(b)(2)(A) (relating to income limitation) is
amended 
by 
striking 
‘‘$75,000’’ 
and 
inserting
‘‘$150,000’’.
(c) EXTENSION OF SUNSET.—Subparagraph (B) of
section 23(d)(2) (relating to eligible child) is amended by
striking ‘‘2001’’ and inserting ‘‘2005’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 718. STUDY CONCERNING UNITED STATES INSURANCE
COMPANIES WITH CERTAIN OFFSHORE REIN-
SURANCE AFFILIATES.
(a) STUDY.—The Secretary of the Treasury shall
conduct a study on the extent to which United States tax
on investment income of United States insurance compa-
nies is being avoided through the use of affiliated corpora-
tions in Bermuda or other offshore locations. In con-
ducting such study, the Secretary shall—
(1) address issues concerning the application of
current United States tax law in preventing such
avoidance,
(2) examine changes to United States tax law
which may be needed to prevent such avoidance, and
442
(3) make such recommendations as the Sec-
retary considers appropriate.
(b) SUBMISSION
OF STUDY
TO CONGRESS.—Not
later than December 31, 2001, the Secretary shall submit
the study conducted under subsection (a), together with
recommendations thereon, to the Committee on Ways and
Means of the House of Representatives and the Committee
on Finance of the Senate.
SEC. 719. TREATMENT OF INDIAN TRIBAL GOVERNMENTS
UNDER FEDERAL UNEMPLOYMENT TAX ACT.
(a) IN GENERAL.—Section 3306(c)(7) (defining em-
ployment) is amended—
(1) by inserting ‘‘or in the employ of an Indian
tribe,’’ after ‘‘service performed in the employ of a
State, or any political subdivision thereof,’’; and
(2) by inserting ‘‘or Indian tribes’’ after ‘‘whol-
ly owned by one or more States or political subdivi-
sions’’.
(b) PAYMENTS IN LIEU OF CONTRIBUTIONS.—Sec-
tion 3309 (relating to State law coverage of services per-
formed for nonprofit organizations or governmental enti-
ties) is amended—
(1) in subsection (a)(2) by inserting ‘‘, includ-
ing an Indian tribe,’’ after ‘‘the State law shall pro-
vide that a governmental entity’’;
443
(2) in subsection (b)(3)(B) by inserting ‘‘, or of
an Indian tribe’’ after ‘‘of a State or political sub-
division thereof’’;
(3) in subsection (b)(3)(E) by inserting ‘‘or
tribal’’ after ‘‘the State’’; and
(4) in subsection (b)(5) by inserting ‘‘or of an
Indian tribe’’ after ‘‘an agency of a State or political
subdivision thereof’’.
(c) STATE LAW COVERAGE.—Section 3309 (relating
to State law coverage of services performed for nonprofit
organizations or governmental entities) is amended by
adding at the end the following new subsection:
‘‘(d) ELECTION BY INDIAN TRIBE.—The State law
shall provide that an Indian tribe may make contributions
for employment as if the employment is within the mean-
ing of section 3306 or make payments in lieu of contribu-
tions under this section, and shall provide that an Indian
tribe may make separate elections for itself and each sub-
division, subsidiary, or business enterprise wholly owned
by such Indian tribe. State law may require a tribe to post
a payment bond or take other reasonable measures to as-
sure the making of payments in lieu of contributions under
this section. Notwithstanding the requirements of section
3306(a)(6), if, within 90 days of having received a notice
of delinquency, a tribe fails to make contributions, pay-
444
ments in lieu of contributions, or payment of penalties or
interest (at amounts or rates comparable to those applied
to all other employers covered under the State law) as-
sessed with respect to such failure, or if the tribe fails
to post a required payment bond, then service for the tribe
shall not be excepted from employment under section
3306(c)(7) until any such failure is corrected. This sub-
section shall apply to an Indian tribe within the meaning
of section 4(e) of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b(e)).’’.
(d) DEFINITIONS.—Section 3306 (relating to defini-
tions) is amended by adding at the end the following new
subsection:
‘‘(u) INDIAN TRIBE.—For purposes of this chapter,
the term ‘Indian tribe’ has the meaning given to such term
by section 4(e) of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b(e)), and includes
any subdivision, subsidiary, or business enterprise wholly
owned by such an Indian tribe.’’.
(e) EFFECTIVE DATE; TRANSITION RULE.—
(1) EFFECTIVE DATE.—The amendments made
by this section shall apply to service performed on
or after the date of the enactment of this Act.
(2) TRANSITION RULE.—For purposes of the
Federal Unemployment Tax Act, service performed
445
in the employ of an Indian tribe (as defined in sec-
tion 3306(u) of the Internal Revenue Code of 1986
(as added by this section)) shall not be treated as
employment (within the meaning of section 3306 of
such Code) if—
(A) it is service which is performed before
the date of the enactment of this Act and with
respect to which the tax imposed under the
Federal Unemployment Tax Act has not been
paid, and
(B) such Indian tribe reimburses a State
unemployment fund for unemployment benefits
paid for service attributable to such tribe for
such period.
Subtitle C—Technical Corrections
SEC. 721. AMENDMENTS RELATED TO TICKET TO WORK
AND WORK INCENTIVES IMPROVEMENT ACT
OF 1999.
(a) AMENDMENTS RELATED TO SECTION 502 OF
THE ACT.—
(1) Section 280C(c)(1) is amended by striking
‘‘or credit’’ after ‘‘deduction’’ each place it appears.
(2) Section 30A is amended by redesignating
subsections (f) and (g) as subsections (g) and (h),
446
respectively, and by inserting after subsection (e) the
following new subsection:
‘‘(f) DENIAL OF DOUBLE BENEFIT.—Any wages or
other expenses taken into account in determining the cred-
it under this section may not be taken into account in de-
termining the credit under section 41.’’
(b) AMENDMENT RELATED TO SECTION 545 OF THE
ACT.—Clause (ii) of section 857(b)(7)(B) is amended to
read as follows:
‘‘(ii) 
EXCEPTION
FOR
CERTAIN
AMOUNTS.—Clause (i) shall not apply to
amounts received directly or indirectly by a
real estate investment trust—
‘‘(I) for services furnished or ren-
dered by a taxable REIT subsidiary
that are described in paragraph
(1)(B) of section 856(d), or
‘‘(II) from a taxable REIT sub-
sidiary that are described in para-
graph (7)(C)(ii) of such section.’’
(c) CLARIFICATION RELATED TO SECTION 538 OF
THE ACT.—The reference to section 332(b)(1) of the In-
ternal Revenue Code of 1986 in Treasury Regulation sec-
tion 1.1502-34 shall be deemed to include a reference to
section 732(f) of such Code.
447
(d) EFFECTIVE
DATE.—Subsection (c) and the
amendments made by this section shall take effect as if
included in the provisions of the Ticket to Work and Work
Incentives Improvement Act of 1999 to which they relate.
SEC. 722. AMENDMENTS RELATED TO TAX AND TRADE RE-
LIEF EXTENSION ACT OF 1998.
(a) AMENDMENT RELATED TO SECTION 1004(b) OF
THE ACT.—Subsection (d) of section 6104 is amended by
adding at the end the following new paragraph:
‘‘(6) APPLICATION
TO
NONEXEMPT
CHARI-
TABLE TRUSTS AND NONEXEMPT PRIVATE FOUNDA-
TIONS.—The organizations referred to in paragraphs
(1) and (2) of section 6033(d) shall comply with the
requirements of this subsection relating to annual
returns filed under section 6033 in the same manner
as the organizations referred to in paragraph (1).’’.
(b) AMENDMENT RELATED TO SECTION 4003 OF
THE ACT.—Subsection (b) of section 4003 of the Tax and
Trade Relief Extension Act of 1998 is amended by insert-
ing ‘‘(7)(A)(i)(II),’’ after ‘‘(5)(A)(ii)(I),’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the provisions
of the Tax and Trade Relief Extension Act of 1998 to
which they relate.
448
SEC. 723. AMENDMENTS RELATED TO INTERNAL REVENUE
SERVICE RESTRUCTURING AND REFORM ACT
OF 1998.
(a) AMENDMENTS RELATED TO INNOCENT SPOUSE
RELIEF.—
(1) ELECTION MAY BE MADE ANY TIME AFTER
DEFICIENCY ASSERTED.—Subparagraph (B) of sec-
tion 6015(c)(3) is amended by striking ‘‘shall be
made’’ and inserting ‘‘may be made at any time
after a deficiency for such year is asserted but’’.
(2) CLARIFICATION REGARDING DISALLOWANCE
OF
REFUNDS
AND
CREDITS
UNDER
SECTION
6015(c).—
(A) IN GENERAL.—Section 6015 is amend-
ed by redesignating subsection (g) as subsection
(h) and by inserting after subsection (f) the fol-
lowing new subsection:
‘‘(g) CREDITS AND REFUNDS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), notwithstanding any other law
or rule of law (other than section 6511, 6512(b),
7121, or 7122), credit or refund shall be allowed or
made to the extent attributable to the application of
this section.
‘‘(2) RES JUDICATA.—In the case of any elec-
tion under subsection (b) or (c), if a decision of a
449
court in any prior proceeding for the same taxable
year has become final, such decision shall be conclu-
sive except with respect to the qualification of the
individual for relief which was not an issue in such
proceeding. The exception contained in the preceding
sentence shall not apply if the court determines that
the individual participated meaningfully in such
prior proceeding.
‘‘(3) CREDIT
AND
REFUND
NOT
ALLOWED
UNDER SUBSECTION (c).—No credit or refund shall
be allowed as a result of an election under sub-
section (c).’’.
(B) 
CONFORMING
AMENDMENT.—Para-
graph (3) of section 6015(e) is amended to read
as follows:
‘‘(3) LIMITATION
ON
TAX
COURT
JURISDIC-
TION.—If a suit for refund is begun by either indi-
vidual filing the joint return pursuant to section
6532—
‘‘(A) the Tax Court shall lose jurisdiction
of the individual’s action under this section to
whatever extent jurisdiction is acquired by the
district court or the United States Court of
Federal Claims over the taxable years that are
the subject of the suit for refund, and
450
‘‘(B) the court acquiring jurisdiction shall
have jurisdiction over the petition filed under
this subsection.’’.
(3) CLARIFICATIONS
REGARDING
REVIEW
BY
TAX COURT.—
(A) Paragraph (1) of section 6015(e) is
amended in the matter preceding subparagraph
(A) by inserting after ‘‘individual’’ the fol-
lowing: ‘‘against whom a deficiency has been as-
serted and’’.
(B) 
Subparagraph 
(A) 
of 
section
6015(e)(1) is amended to read as follows:
‘‘(A) IN
GENERAL.—In addition to any
other remedy provided by law, the individual
may petition the Tax Court (and the Tax Court
shall have jurisdiction) to determine the appro-
priate relief available to the individual under
this section if such petition is filed—
‘‘(i) at any time after the earlier of—
‘‘(I) the date the Secretary mails,
by certified or registered mail to the
taxpayer’s last known address, notice
of the Secretary’s final determination
of relief available to the individual, or
451
‘‘(II) the date which is 6 months
after the date such election is filed
with the Secretary, and
‘‘(ii) not later than the close of the
90th day after the date described in clause
(i)(I).’’.
(C) 
Subparagraph 
(B)(i) 
of 
section
6015(e)(1) is amended—
(i) by striking ‘‘until the expiration of
the 90-day period described in subpara-
graph (A)’’ and inserting ‘‘until the close
of the 90th day referred to in subpara-
graph (A)(ii)’’, and
(ii) by inserting ‘‘under subparagraph
(A)’’ after ‘‘filed with the Tax Court’’.
(D)(i) Subsection (e) of section 6015 is
amended by adding at the end the following
new paragraph:
‘‘(5) WAIVER.—An individual who elects the ap-
plication of subsection (b) or (c) (and who agrees
with the Secretary’s determination of relief) may
waive in writing at any time the restrictions in para-
graph (1)(B) with respect to collection of the out-
standing assessment (whether or not a notice of the
452
Secretary’s final determination of relief has been
mailed).’’.
(ii) Paragraph (2) of section 6015(e) is
amended to read as follows:
‘‘(2) SUSPENSION OF RUNNING OF PERIOD OF
LIMITATIONS.—The running of the period of limita-
tions in section 6502 on the collection of the assess-
ment to which the petition under paragraph (1)(A)
relates shall be suspended—
‘‘(A) for the period during which the Sec-
retary is prohibited by paragraph (1)(B) from
collecting by levy or a proceeding in court and
for 60 days thereafter, and
‘‘(B) if a waiver under paragraph (5) is
made, from the date the claim for relief was
filed until 60 days after the waiver is filed with
the Secretary.’’.
(b) AMENDMENTS RELATED TO PROCEDURE AND
ADMINISTRATION.—
(1) DISPUTES INVOLVING $50,000 OR LESS.—
Section 7463 is amended by adding at the end the
following new subsection:
‘‘(f) ADDITIONAL CASES IN WHICH PROCEEDINGS
MAY BE CONDUCTED UNDER THIS SECTION.—At the op-
tion of the taxpayer concurred in by the Tax Court or a
453
division thereof before the hearing of the case, proceedings
may be conducted under this section (in the same manner
as a case described in subsection (a)) in the case of—
‘‘(1) a petition to the Tax Court under section
6015(e) in which the amount of relief sought does
not exceed $50,000, and
‘‘(2) an appeal under section 6330(d)(1)(A) to
the Tax Court of a determination in which the un-
paid tax does not exceed $50,000.’’.
(2) AUTHORITY
TO
ENJOIN
COLLECTION
AC-
TIONS.—
(A) Section 6330(e)(1) is amended by add-
ing at the end the following: ‘‘Notwithstanding
the provisions of section 7421(a), the beginning
of a levy or proceeding during the time the sus-
pension under this paragraph is in force may be
enjoined by a proceeding in the proper court,
including the Tax Court. The Tax Court shall
have no jurisdiction under this paragraph to en-
join any action or proceeding unless a timely
appeal has been filed under subsection (d)(1)
and then only in respect of the unpaid tax or
proposed levy to which the determination being
appealed relates.’’.
454
(B) Section 7421(a) is amended by insert-
ing ‘‘6330(e)(1),’’ after ‘‘6246(b),’’.
(3) CLARIFICATION.—Paragraph (3) of section
6331(k) is amended by striking ‘‘(3), (4), and (5)’’
and inserting ‘‘(3) and (4)’’.
(c) AMENDMENT RELATED TO SECTION 1103 OF
THE
ACT.—Paragraph (6) of section 6103(k) is
amended—
(1) by inserting ‘‘and an officer or employee of
the Office of Treasury Inspector General for Tax
Administration’’ after ‘‘internal revenue officer or
employee’’, and
(2) by striking ‘‘INTERNAL REVENUE’’ in the
heading and inserting ‘‘CERTAIN’’.
(d) AMENDMENT RELATED TO SECTION 3401 OF
THE ACT.—Section 6330(d)(1)(A) is amended by striking
‘‘to hear’’ and inserting ‘‘with respect to’’.
(e) AMENDMENT RELATED TO SECTION 3509 OF
THE ACT.—Subparagraph (A) of section 6110(g)(5) is
amended by inserting ‘‘, any Chief Counsel advice,’’ after
‘‘technical advice memorandum’’.
(f) EFFECTIVE DATES.—The amendments made by
subsections (a) and (b) shall take effect on the date of
the enactment of this Act. The amendments made by sub-
sections (c), (d), and (e) shall take effect as if included
455
in the provisions of the Internal Revenue Service Restruc-
turing and Reform Act of 1998 to which they relate.
SEC. 724. AMENDMENTS RELATED TO TAXPAYER RELIEF
ACT OF 1997.
(a) AMENDMENT RELATED TO SECTION 101 OF THE
ACT.—Paragraph (4) of section 6211(b) is amended by
striking ‘‘sections 32 and 34’’ and inserting ‘‘sections
24(d), 32, and 34’’.
(b) AMENDMENT RELATED TO SECTION 302 OF THE
ACT.—The last sentence of section 3405(e)(1)(B) is
amended by inserting ‘‘(other than a Roth IRA)’’ after
‘‘individual retirement plan’’.
(c) AMENDMENT TO SECTION 311 OF THE ACT.—
Paragraph (3) of section 311(e) of the Taxpayer Relief
Act of 1997 (relating to election to recognize gain on as-
sets held on January 1, 2001) is amended by adding at
the end the following new sentence: ‘‘Such an election shall
not apply to any asset which is disposed of (in a trans-
action in which gain or loss is recognized in whole or in
part) before the close of the 1-year period beginning on
the date that the asset would have been treated as sold
under such election.’’
(d) AMENDMENT RELATED TO SECTION 402 OF THE
ACT.—The flush sentence at the end of clause (ii) of sec-
tion 56(a)(1)(A) is amended by inserting before ‘‘or to any
456
other property’’ the following: ‘‘(and the straight line
method shall be used for such 1250 property)’’.
(e) AMENDMENTS RELATED TO SECTION 1072 OF
THE ACT.—
(1) Clause (ii) of section 415(c)(3)(D) and sub-
paragraph (B) of section 403(b)(3) are each amend-
ed by striking ‘‘section 125 or’’ and inserting ‘‘sec-
tion 125, 132(f)(4), or’’.
(2) Paragraph (2) of section 414(s) is amended
by striking ‘‘section 125, 402(e)(3)’’ and inserting
‘‘section 125, 132(f)(4), 402(e)(3)’’.
(f) AMENDMENT RELATED TO SECTION 1454 OF THE
ACT.—Subsection (a) of section 7436 is amended by in-
serting before the period at the end of the first sentence
‘‘and the proper amount of employment tax under such
determination’’.
(g) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the provisions
of the Taxpayer Relief of 1997 to which they relate.
SEC. 725. AMENDMENTS RELATED TO BALANCED BUDGET
ACT OF 1997.
(a) AMENDMENTS RELATED TO SECTION 9302 OF
THE ACT.—
(1) Paragraph (1) of section 9302(j) of the Bal-
anced Budget Act of 1997 is amended by striking
457
‘‘tobacco products and cigarette papers and tubes’’
and inserting ‘‘cigarettes’’.
(2)(A) Subsection (h) of section 5702 is amend-
ed to read as follows:
‘‘(h) MANUFACTURER OF CIGARETTE PAPERS AND
TUBES.—‘Manufacturer of cigarette papers and tubes’
means any person who manufactures cigarette paper, or
makes up cigarette paper into tubes, except for his own
personal use or consumption.’’
(B) Section 5702, as amended by subparagraph
(A), is amended by striking subsection (f) and by re-
designating subsections (g) through (p) as sub-
sections (f) through (o), respectively.
(3) Subsection (c) of section 5761 is amended
by adding at the end the following: ‘‘This subsection
and section 5754 shall not apply to any person who
relands or receives tobacco products in the quantity
allowed entry free of tax and duty under chapter 98
of the Harmonized Tariff Schedule of the United
States, and such person may voluntarily relinquish
to the Secretary at the time of entry any excess of
such quantity without incurring the penalty under
this subsection. No quantity of tobacco products
other than the quantity referred to in the preceding
458
sentence may be relanded or received as a personal
use quantity.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in section 9302
of the Balanced Budget Act of 1997.
SEC. 726. AMENDMENTS RELATED TO SMALL BUSINESS JOB
PROTECTION ACT OF 1996.
(a) AMENDMENT RELATED TO SECTION 1201 OF
THE ACT.—Subparagraph (B) of section 51(d)(2) is
amended—
(1) by striking ‘‘plan approved’’ and inserting
‘‘program funded’’, and
(2) by striking ‘‘(relating to assistance for
needy families with minor children)’’.
(b) AMENDMENT RELATED TO SECTION 1302 OF
THE ACT.—Clause (i) of section 1361(e)(1)(A) is amended
by striking ‘‘or’’ before ‘‘(III)’’ and by adding at the end
the following: ‘‘or (IV) an organization described in section
170(c)(1) which holds a contingent interest in such trust
and is not a potential current beneficiary,’’.
(c) AMENDMENT RELATED TO SECTION 1401 OF
THE ACT.—Clause (ii) of section 401(k)(10)(B) is amend-
ed by adding at the end the following new sentence: ‘‘Such
term includes a distribution of an annuity contract from—
459
‘‘(I) a trust which forms a part
of a plan described in section 401(a)
and which is exempt from tax under
section 501(a), or
‘‘(II) an annuity plan described
in section 403(a).’’.
(d) AMENDMENT RELATED TO SECTION 1427 OF
THE ACT.—Clause (ii) of section 219(c)(1)(B) is amended
by striking ‘‘and’’ at the end of subclause (I), by redesig-
nating subclause (II) as subclause (III), and by inserting
after subclause (I) the following new subclause:
‘‘(II) the amount of any des-
ignated nondeductible contribution (as
defined in section 408(o)) on behalf of
such spouse for such taxable year,
and’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the provisions
of the Small Business Job Protection Act of 1996 to which
they relate.
SEC. 727. AMENDMENT RELATED TO REVENUE RECONCILI-
ATION ACT OF 1990.
(a) AMENDMENT RELATED TO SECTION 11511 OF
THE ACT.—Subparagraph (C) of section 43(c)(1) is
amended—
460
(1) by inserting ‘‘(as defined in section
193(b))’’ after ‘‘expenses’’, and
(2) by striking ‘‘under section 193’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect as if included in section
11511 of the Revenue Reconciliation Act of 1990.
SEC. 728. OTHER TECHNICAL CORRECTIONS.
(a) MODIFIED ENDOWMENT CONTRACTS.—
(1) Paragraph (2) of section 7702A(a) is
amended by inserting ‘‘or this paragraph’’ before the
period.
(2) Clause (ii) of section 7702A(c)(3)(A) is
amended by striking ‘‘under the contract’’ and in-
serting ‘‘under the old contract’’.
(3) The amendments made by this subsection
shall take effect as if included in the amendments
made by section 5012 of the Technical and Miscella-
neous Revenue Act of 1988.
(b) AFFILIATED CORPORATIONS
IN CONTEXT
OF
WORTHLESS SECURITIES.—
(1) Subparagraph (A) of section 165(g)(3) is
amended to read as follows:
‘‘(A) the taxpayer owns directly stock in
such corporation meeting the requirements of
section 1504(a)(2), and’’.
461
(2) Paragraph (3) of section 165(g) is amended
by striking the last sentence.
(3) The amendments made by this subsection
shall apply to taxable years beginning after Decem-
ber 31, 1984.
(c) CERTAIN ANNUITIES ISSUED BY TAX-EXEMPT
ORGANIZATIONS NOT TREATED AS DEBT INSTRUMENTS
UNDER ORIGINAL ISSUE DISCOUNT RULES.—
(1) Clause (ii) of section 1275(a)(1)(B) is
amended by striking ‘‘subchapter L’’ and inserting
‘‘subchapter L (or by an entity described in section
501(c) and exempt from tax under section 501(a)
which would be subject to tax under subchapter L
were it not so exempt)’’.
(2) The amendment made by this subsection
shall take effect as if included in the amendments
made by section 41 of the Tax Reform Act of 1984.
(d) TENTATIVE
CARRYBACK
ADJUSTMENTS
OF
LOSSES FROM SECTION 1256 CONTRACTS.—
(1) Subsection (a) of section 6411 is amended
by striking ‘‘section 1212(a)(1)’’ and inserting ‘‘sub-
section (a)(1) or (c) of section 1212’’.
(2) The amendment made by paragraph (1)
shall take effect as if included in the amendments
463
‘‘(5) DISTRIBUTIONS
OF
EXCESS
CONTRIBU-
TIONS AFTER DUE DATE FOR TAXABLE YEAR AND
CERTAIN EXCESS ROLLOVER CONTRIBUTIONS.—’’.
(4) Paragraph (3) of section 475(g) is amended
by striking ‘‘267(b) of’’ and inserting ‘‘267(b) or’’.
(5) The heading for subparagraph (B) of sec-
tion 529(e)(3) is amended by striking ‘‘UNDER
GUARANTEED PLANS’’.
(6) Clause (iii) of section 530(d)(4)(B) is
amended by striking ‘‘; or’’ at the end and inserting
‘‘, or’’.
(7) Paragraphs (1)(C) and (2)(C) of section
664(d) are each amended by striking the period
after ‘‘subsection (g))’’.
(8)(A) Subsection (e) of section 678 is amended
by striking ‘‘an electing small business corporation’’
and inserting ‘‘an S corporation’’.
(B) Clause (v) of section 6103(e)(1)(D) is
amended to read as follows:
‘‘(v) if the corporation was an S cor-
poration, any person who was a share-
holder during any part of the period cov-
ered by such return during which an elec-
tion under section 1362(a) was in effect,
or’’.
464
(9) Paragraph (7) of section 856(c) is amended
by striking ‘‘paragraph (4)(B)(ii)(III)’’ and inserting
‘‘paragraph (4)(B)(iii)(III)’’
(10) Subparagraph (A) of section 856(l)(4) is
amended by striking ‘‘paragraph (9)(D)(ii)’’ and in-
serting ‘‘subsection (d)(9)(D)(ii)’’.
(11) Subparagraph (B) of section 871(f)(2) is
amended by striking ‘‘19 U.S.C.’’ and inserting ‘‘(19
U.S.C.’’.
(12) Subparagraph (B) of section 995(b)(3) is
amended by striking ‘‘the Military Security Act of
1954 (22 U.S.C. 1934)’’ and inserting ‘‘section 38
of the International Security Assistance and Arms
Export Control Act of 1976 (22 U.S.C. 2778)’’.
(13) Section 1391(g)(3)(C) is amended by
striking ‘‘paragraph (1)(B)’’ and inserting ‘‘para-
graph (1)’’.
(14)(A) Paragraph (2) of section 2035(c) is
amended by striking ‘‘paragraph (1)’’ and inserting
‘‘subsection (a)’’.
(B) Subsection (d) of section 2035 is amended
by inserting ‘‘and paragraph (1) of subsection (c)’’
after ‘‘Subsection (a)’’.
465
(15) Paragraph (5) of section 3121(a) is
amended by striking the semicolon at the end of
subparagraph (G) and inserting a comma.
(16) Subparagraph (B) of section 4946(c)(3) is
amended by striking ‘‘the lowest rate of compensa-
tion prescribed for GS–16 of the General Schedule
under section 5332’’ and inserting ‘‘the lowest rate
of basic pay for the Senior Executive Service under
section 5382’’.
(17) Subsection (p) of section 6103 is
amended—
(A) in paragraph (4), in the matter pre-
ceding subparagraph (A)—
(i) by striking the second comma after
‘‘(13)’’, and
(ii) by striking ‘‘(7)’’ and all that fol-
lows through ‘‘shall, as a condition’’ and
inserting ‘‘(7), (8), (9), (12), (15), or (16)
or any other person described in subsection
(l)(16) shall, as a condition’’, and
(B) in paragraph (4)(F)(ii), by striking the
second comma after ‘‘(14)’’.
(18) Paragraph (5) of section 6166(k) is
amended by striking ‘‘2035(d)(4)’’ and inserting
‘‘2035(c)(2)’’.
466
(19) Subsection (a) of section 6512 is amended
by striking ‘‘; and’’ at the end of paragraphs (1),
(2), and (5) and inserting ‘‘, and’’.
(20) Paragraph (1) of section 6611(g) is
amended by striking the comma after ‘‘(b)(3)’’.
(21) Subparagraphs (A) and (B) of section
6655(e)(5) are amended by striking ‘‘subsections
(d)(5) and (l)(3)(B)’’ and inserting ‘‘subsection
(d)(5)’’.
(22) The subchapter heading for subchapter D
of chapter 67 is amended by capitalizing the first
letter of the second word.
(23)(A) Section 6724(d)(1)(B) is amended by
striking clauses (xiv) through (xvii) and inserting
the following:
‘‘(xiv) subparagraph (A) or (C) of
subsection (c)(4) of section 4093 (relating
to information reporting with respect to
tax on diesel and aviation fuels),
‘‘(xv) section 4101(d) (relating to in-
formation reporting with respect to fuels
taxes),
‘‘(xvi) subparagraph (C) of section
338(h)(10) (relating to information re-
quired to be furnished to the Secretary in
467
case of elective recognition of gain or loss),
or
‘‘(xvii) section 264(f)(5)(A)(iv) (relat-
ing to reporting with respect to certain life
insurance and annuity contracts), and’’.
(B) Section 6010(o)(4)(C) of the Internal Rev-
enue Service Restructuring and Reform Act of 1998
is amended by striking ‘‘inserting ‘or’, and by add-
ing at the end’’ and inserting ‘‘inserting ‘, or’, and
by adding after subparagraph (Z)’’.
(24) Subsection (a) of section 7421 is amended
by striking ‘‘6672(b)’’ and inserting ‘‘6672(c)’’.
(25) Paragraph (3) of section 7430(c) is
amended—
(A) in the paragraph heading, by striking
‘‘ATTORNEYS’’ and inserting ‘‘ATTORNEYS’ ’’,
and
(B) in subparagraph (B), by striking ‘‘at-
torneys fees’’ each place it appears and insert-
ing ‘‘attorneys’ fees’’.
(26) Paragraph (2) of section 7603(b) is
amended by striking the semicolon at the end of
subparagraphs (A), (B), (C), (D), (E), (F), and (G)
and inserting a comma.
468
(27) Clause (ii) of section 7802(b)(2)(B) is
amended by striking ‘‘; and’’ at the end and insert-
ing ‘‘, and’’.
(28) Paragraph (3) of section 7811(a) is
amended by striking ‘‘taxpayer assistance order’’
and inserting ‘‘Taxpayer Assistance Order’’.
(29) Paragraph (1) of section 7811(d) is
amended by striking ‘‘Ombudsman’s’’ and inserting
‘‘National Taxpayer Advocate’s’’.
(30) Paragraph (3) of section 7872(f) is
amended by striking ‘‘foregoing’’ and inserting ‘‘for-
going’’.
Subtitle D—Pay-Go Adjustment
SEC. 731. AVOIDANCE OF A PAY-GO SEQUESTRATION FOR
FISCAL YEAR 2001.
(a) PAY-GO ADJUSTMENTS.—(1) In preparing the
final sequestration report required by section 254(f)(3) of
the Balanced Budget and Emergency Deficit Control Act
of 1985 for fiscal year 2001, in addition to the information
required by that section, the Director of the Office of Man-
agement and Budget shall change any balance of direct
spending and receipts legislation for fiscal year 2001
under section 252 of that Act to zero.
(2) 
Notwithstanding 
Rule 
of 
the 
Budget
Scorekeeping Guidelines set forth in the joint explanatory
469
statement of the committee of conference accompanying
the conference report on the bill H.R. 2015 of the 105th
Congress (House Report No. 105–217, filed July 30,
1997), the legislation enacted in sections 504 and 505 of
the Department of Transportation and Related Agencies
Appropriations Act, 2001, section 312 of the Legislative
Branch Appropriations Act, 2001, and section 1003 of di-
vision B of H.R. 4516 (106th Congress), as enacted, that
would have been estimated by the Office of Management
and Budget as changing direct spending or receipts under
section 252 of the Balanced Budget and Emergency Def-
icit Control Act of 1985 were it included in an Act other
than an appropriations Act shall be treated as direct
spending or receipts legislation, as appropriate, under sec-
tion 252 of the Balanced Budget and Emergency Deficit
Control Act of 1985.
(b) EXEMPTION OF CERTAIN BUDGETARY REPORTS
FROM TERMINATION.—Section 3003(a)(1) of the Federal
Reports Elimination and Sunset Act of 1995 (31 U.S.C.
1113 note) does not apply to any report required to be
submitted under any of the following provisions of law:
(1) Sections 1105(a), 1106(a) and (b), and
1109(a) of title 31, United States Code, and any
other law relating to the budget of the United States
Government.
470
(2) The Balanced Budget and Emergency Def-
icit Control Act of 1985 (2 U.S.C. 900 et seq.).
(3) Sections 202(e)(1) and (3) of the Congres-
sional Budget Act of 1974 (2 U.S.C. 602(e)(1) and
(3)).
(4) Section 1014(e) of the Congressional Budg-
et and Impoundment Control Act of 1974 (2 U.S.C.
685(e)).
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