(c) EFFECTIVE DATE.— 
(1) SALES, ETC.—The amendments made by 
this section shall apply to sales and uses on or after 
the first day of the first month which begins more 
than 4 weeks after the date of the enactment of this 
Act. 
(2) DELIVERIES.—For purposes of paragraph 
(1) and section 4131 of the Internal Revenue Code 
of 1986, in the case of sales on or before the effec-
tive date described in such paragraph for which de-
livery is made after such date, the delivery date shall 
be considered the sale date. 
SEC. 239. CLARIFICATION OF TAXATION OF CERTAIN SET-
TLEMENT FUNDS MADE PERMANENT. 
(a) IN GENERAL.—Subsection (g) of section 468B, 
as amended by section 201 of the Tax Increase Prevention 
and Reconciliation Act of 2005, is amended by striking 
paragraph (3). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 201 
of the Tax Increase Prevention and Reconciliation Act of 
2005. 
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SEC. 240. MODIFICATION OF ACTIVE BUSINESS DEFINITION 
UNDER SECTION 355 MADE PERMANENT. 
(a) IN GENERAL.—Subparagraphs (A) and (D) of 
section 355(b)(3), as amended by section 202 of the Tax 
Increase Prevention and Reconciliation Act of 2005, are 
each amended by striking ‘‘and on or before December 31, 
2010’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 202 
of the Tax Increase Prevention and Reconciliation Act of 
2005. 
SEC. 241. REVISION OF STATE VETERANS LIMIT MADE PER-
MANENT. 
(a) IN GENERAL.—Subparagraph (B) of section 
143(l)(3), as amended by section 203 of the Tax Increase 
Prevention and Reconciliation Act of 2005, is amended by 
striking clause (iv). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 203 
of the Tax Increase Prevention and Reconciliation Act of 
2005. 
SEC. 242. CAPITAL GAINS TREATMENT FOR CERTAIN SELF- 
CREATED MUSICAL WORKS MADE PERMA-
NENT. 
(a) IN GENERAL.—Paragraph (3) of section 1221(b), 
as amended by section 204 of the Tax Increase Prevention 
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and Reconciliation Act of 2005, is amended by striking 
‘‘before January 1, 2011,’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 204 
of the Tax Increase Prevention and Reconciliation Act of 
2005. 
SEC. 243. REDUCTION IN MINIMUM VESSEL TONNAGE 
WHICH QUALIFIES FOR TONNAGE TAX MADE 
PERMANENT. 
(a) IN GENERAL.—Paragraph (4) of section 1355(a), 
as amended by section 205 of the Tax Increase Prevention 
and Reconciliation Act of 2005, is amended by striking 
‘‘10,000 (6,000, in the case of taxable years beginning 
after December 31, 2005, and ending before January 1, 
2011)’’ and inserting ‘‘6,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 205 
of the Tax Increase Prevention and Reconciliation Act of 
2005. 
SEC. 244. MODIFICATION OF SPECIAL ARBITRAGE RULE 
FOR CERTAIN FUNDS MADE PERMANENT. 
(a) IN GENERAL.—Section 206 of the Tax Increase 
Prevention and Reconciliation Act of 2005 is amended by 
striking ‘‘and before August 31, 2009’’. 
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