H. R. 1308—16 
to disclosures or inspections made pursuant to this para-
graph. 
‘‘(B) TERMINATION.—The Secretary may not make any 
disclosure under this paragraph after December 31, 2005.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall take effect on the date of the enactment of this Act. 
SEC. 312. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS 
AGAINST REGULAR AND MINIMUM TAX LIABILITY. 
(a) IN GENERAL.—Paragraph (2) of section 26(a) is amended— 
(1) by striking ‘‘RULE
FOR
2000, 2001, 2002, AND
2003.—’’ 
and inserting ‘‘RULE FOR TAXABLE YEARS 2000 THROUGH 2005.— 
’’, and 
(2) by striking ‘‘or 2003’’ and inserting ‘‘2003, 2004, or 
2005’’. 
(b) CONFORMING PROVISIONS.— 
(1) Section 904(h) is amended by striking ‘‘or 2003’’ and 
inserting ‘‘2003, 2004, or 2005’’. 
(2) The amendments made by sections 201(b), 202(f), and 
618(b) of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 shall not apply to taxable years beginning during 
2004 or 2005. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2003. 
SEC. 313. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN 
RENEWABLE RESOURCES. 
(a) IN GENERAL.—Subparagraphs (A), (B), and (C) of section 
45(c)(3) are each amended by striking ‘‘January 1, 2004’’ and 
inserting ‘‘January 1, 2006’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to facilities placed in service after December 31, 
2003. 
SEC. 314. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR 
OIL AND NATURAL GAS PRODUCED FROM MARGINAL 
PROPERTIES. 
(a) IN GENERAL.—Subparagraph (H) of section 613A(c)(6) is 
amended by striking ‘‘January 1, 2004’’ and inserting ‘‘January 
1, 2006’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to taxable years beginning after December 31, 2003. 
SEC. 315. INDIAN EMPLOYMENT TAX CREDIT. 
Section 45A(f) (relating to termination) is amended by striking 
‘‘December 31, 2004’’ and inserting ‘‘December 31, 2005’’. 
SEC. 316. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY 
ON INDIAN RESERVATION. 
Section 168(j)(8) (relating to termination) is amended by 
striking ‘‘December 31, 2004’’ and inserting ‘‘December 31, 2005’’. 
SEC. 317. DISCLOSURE OF RETURN INFORMATION RELATING TO STU-
DENT LOANS. 
Section 6103(l)(13)(D) (relating to termination) is amended by 
striking ‘‘December 31, 2004’’ and inserting ‘‘December 31, 2005’’.
H. R. 1308—17 
SEC. 318. ELIMINATION OF PHASEOUT OF CREDIT FOR QUALIFIED 
ELECTRIC VEHICLES FOR 2004 AND 2005. 
(a) IN GENERAL.—Paragraph (2) of section 30(b) is amended 
to read as follows: 
‘‘(2) PHASEOUT.—In the case of any qualified electric vehicle 
placed in service after December 31, 2005, the credit otherwise 
allowable under subsection (a) (determined after the application 
of paragraph (1)) shall be reduced by 75 percent.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after December 31, 2003. 
SEC. 319. ELIMINATION OF PHASEOUT FOR DEDUCTION FOR CLEAN- 
FUEL VEHICLE PROPERTY FOR 2004 AND 2005. 
(a) IN GENERAL.—Subparagraph (B) of section 179A(b)(1) is 
amended to read as follows: 
‘‘(B) PHASEOUT.—In the case of any qualified clean- 
fuel vehicle property placed in service after December 31, 
2005, the limit otherwise allowable under subparagraph 
(A) shall be reduced by 75 percent.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to property placed in service after December 31, 2003. 
SEC. 320. DISCLOSURES RELATING TO TERRORIST ACTIVITIES. 
(a) IN
GENERAL.—Clause (iv) of section 6103(i)(3)(C) and 
subparagraph (E) of section 6103(i)(7) are both amended by striking 
‘‘December 31, 2003’’ and inserting ‘‘December 31, 2005’’. 
(b) DISCLOSURE OF TAXPAYER IDENTITY TO LAW ENFORCEMENT 
AGENCIES INVESTIGATING TERRORISM.—Subparagraph (A) of section 
6103(i)(7) is amended by adding at the end the following new 
clause: 
‘‘(v) TAXPAYER
IDENTITY.—For purposes of this 
subparagraph, a taxpayer’s identity shall not be treated 
as taxpayer return information.’’. 
(c) EFFECTIVE DATES.— 
(1) IN
GENERAL.—The amendments made by subsection 
(a) shall apply to disclosures on or after the date of the enact-
ment of this Act. 
(2) SUBSECTION (b).—The amendment made by subsection 
(b) shall take effect as if included in section 201 of the Victims 
of Terrorism Tax Relief Act of 2001. 
SEC. 321. JOINT REVIEW OF STRATEGIC PLANS AND BUDGET FOR 
THE INTERNAL REVENUE SERVICE. 
(a) IN GENERAL.—Paragraph (2) of section 8021(f) (relating 
to joint reviews) is amended by striking ‘‘2004’’ and inserting ‘‘2005’’. 
(b) REPORT.—Subparagraph (C) of section 8022(3) (regarding 
reports) is amended— 
(1) by striking ‘‘2004’’ and inserting ‘‘2005’’, and 
(2) by striking ‘‘with respect to—’’ and all that follows 
and inserting ‘‘with respect to the matters addressed in the 
joint review referred to in section 8021(f)(2).’’. 
(c) TIME
FOR JOINT REVIEW.—The joint review required by 
section 8021(f)(2) of the Internal Revenue Code of 1986 to be made 
before June 1, 2004, shall be treated as timely if made before 
June 1, 2005.
H. R. 1308—18 
SEC. 322. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Paragraphs (2) and (3)(B) of section 220(i) 
(defining cut-off year) are each amended by striking ‘‘2003’’ each 
place it appears in the text and headings and inserting ‘‘2005’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 220(j) is amended— 
(A) in the text by striking ‘‘or 2002’’ each place it 
appears and inserting ‘‘2002, or 2004’’, and 
(B) in the heading by striking ‘‘OR 2002’’ and inserting 
‘‘2002, OR 2004’’. 
(2) Subparagraph (A) of section 220(j)(4) is amended by 
striking ‘‘and 2002’’ and inserting ‘‘2002, and 2004’’. 
(3) Subparagraph (C) of section 220(j)(2) is amended to 
read as follows: 
‘‘(C) NO LIMITATION FOR 2000 OR 2003.—The numerical 
limitation shall not apply for 2000 or 2003.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 1, 2004. 
(d) TIME FOR FILING REPORTS, ETC.— 
(1) The report required by section 220(j)(4) of the Internal 
Revenue Code of 1986 to be made on August 1, 2004, shall 
be treated as timely if made before the close of the 90-day 
period beginning on the date of the enactment of this Act. 
(2) The determination and publication required by section 
220(j)(5) of such Code with respect to calendar year 2004 shall 
be treated as timely if made before the close of the 120-day 
period beginning on the date of the enactment of this Act. 
If the determination under the preceding sentence is that 2004 
is a cut-off year under section 220(i) of such Code, the cut- 
off date under such section 220(i) shall be the last day of 
such 120-day period. 
TITLE IV—TAX TECHNICAL 
CORRECTIONS 
SEC. 401. AMENDMENTS RELATED TO MEDICARE PRESCRIPTION 
DRUG, IMPROVEMENT, AND MODERNIZATION ACT OF 
2003. 
(a) AMENDMENTS RELATED TO SECTION 1201 OF THE ACT.— 
(1) Paragraph (2) of section 26(b) is amended by striking 
‘‘and’’ at the end of subparagraph (Q), by striking the period 
at the end of subparagraph (R) and inserting ‘‘, and’’, and 
by adding at the end the following new subparagraph: 
‘‘(S) section 223(f)(4) (relating to additional tax on 
health savings account distributions not used for qualified 
medical expenses). 
(2) Paragraph (3) of section 35(g) is amended to read as 
follows: 
‘‘(3) MEDICAL AND HEALTH SAVINGS ACCOUNTS.—Amounts 
distributed from an Archer MSA (as defined in section 220(d)) 
or from a health savings account (as defined in section 223(d)) 
shall not be taken into account under subsection (a).’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect as if included in section 1201 of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003.
H. R. 1308—19 
SEC. 402. AMENDMENTS RELATED TO JOBS AND GROWTH TAX RELIEF 
RECONCILIATION ACT OF 2003. 
(a) AMENDMENTS RELATED TO SECTION 302 OF THE ACT.— 
(1) Clause (i) of section 1(h)(1)(D) is amended by inserting 
‘‘(determined without regard to paragraph (11))’’ after ‘‘net cap-
ital gain’’. 
(2) Subclause (I) of section 1(h)(11)(B)(iii) is amended— 
(A) by striking ‘‘section 246(c)(1)’’ and inserting ‘‘section 
246(c)’’, 
(B) by striking ‘‘120-day period’’ and inserting ‘‘121- 
day period’’, and 
(C) by striking ‘‘90-day period’’ and inserting ‘‘91-day 
period’’. 
(3) Clause (ii) of section 1(h)(11)(D) is amended by striking 
‘‘an individual’’ and inserting ‘‘a taxpayer to whom this section 
applies’’. 
(4) Paragraph (4) of section 691(c) is amended by striking 
‘‘of any gain’’. 
(5)(A) Subparagraph (B) of section 854(b)(1) is amended— 
(i) by striking clauses (iii) and (iv), and 
(ii) by amending clause (i) to read as follows: 
‘‘(i) IN GENERAL.—In any case in which— 
‘‘(I) a dividend is received from a regulated 
investment company (other than a dividend to 
which subsection (a) applies), 
‘‘(II) such investment company meets the 
requirements of section 852(a) for the taxable year 
during which it paid such dividend, and 
‘‘(III) the qualified dividend income of such 
investment company for such taxable year is less 
than 95 percent of its gross income, 
then, in computing qualified dividend income, there 
shall be taken into account only that portion of such 
dividend designated by the regulated investment com-
pany.’’. 
(B) Subparagraph (C) of section 854(b)(1) is amended to 
read as follows: 
‘‘(C) LIMITATIONS.— 
‘‘(i) SUBPARAGRAPH
(A).—The aggregate amount 
which may be designated as dividends under subpara-
graph (A) shall not exceed the aggregate dividends 
received by the company for the taxable year. 
‘‘(ii) SUBPARAGRAPH
(B).—The aggregate amount 
which may be designated as qualified dividend income 
under subparagraph (B) shall not exceed the sum of— 
‘‘(I) the qualified dividend income of the com-
pany for the taxable year, and 
‘‘(II) the amount of any earnings and profits 
which were distributed by the company for such 
taxable year and accumulated in a taxable year 
with respect to which this part did not apply.’’. 
(C) Paragraph (2) of section 854(b) is amended by striking 
‘‘as a dividend for purposes of the maximum rate under section 
1(h)(11) and’’ and inserting ‘‘as qualified dividend income for 
purposes of section 1(h)(11) and as dividends for purposes of’’. 
(D) Paragraph (5) of section 854(b) is amended to read 
as follows:
H. R. 1308—20 
‘‘(5) QUALIFIED
DIVIDEND
INCOME.—For purposes of this 
subsection, the term ‘qualified dividend income’ has the 
meaning given such term by section 1(h)(11)(B).’’. 
(E) Paragraph (2) of section 857(c) is amended to read 
as follows: 
‘‘(2) SECTION (1)(h)(11).— 
‘‘(A) IN GENERAL.—In any case in which— 
‘‘(i) a dividend is received from a real estate invest-
ment trust (other than a capital gain dividend), and 
‘‘(ii) such trust meets the requirements of section 
856(a) for the taxable year during which it paid such 
dividend, 
then, in computing qualified dividend income, there shall 
be taken into account only that portion of such dividend 
designated by the real estate investment trust. 
‘‘(B) LIMITATION.—The aggregate amount which may 
be designated as qualified dividend income under subpara-
graph (A) shall not exceed the sum of— 
‘‘(i) the qualified dividend income of the trust for 
the taxable year, 
‘‘(ii) the excess of— 
‘‘(I) the sum of the real estate investment trust 
taxable income computed under section 857(b)(2) 
for the preceding taxable year and the income 
subject to tax by reason of the application of the 
regulations under section 337(d) for such preceding 
taxable year, over 
‘‘(II) the sum of the taxes imposed on the 
trust for such preceding taxable year under section 
857(b)(1) and by reason of the application of such 
regulations, and 
‘‘(iii) the amount of any earnings and profits which 
were distributed by the trust for such taxable year 
and accumulated in a taxable year with respect to 
which this part did not apply. 
‘‘(C) NOTICE TO SHAREHOLDERS.—The amount of any 
distribution by a real estate investment trust which may 
be taken into account as qualified dividend income shall 
not exceed the amount so designated by the trust in a 
written notice to its shareholders mailed not later than 
60 days after the close of its taxable year. 
‘‘(D) QUALIFIED
DIVIDEND
INCOME.—For purposes of 
this paragraph, the term ‘qualified dividend income’ has 
the meaning given such term by section 1(h)(11)(B).’’. 
(F) With respect to any taxable year of a regulated invest-
ment company or real estate investment trust ending on or 
before November 30, 2003, the period for providing notice of 
the qualified dividend amount to shareholders under sections 
854(b)(2) and 857(c)(2)(C) of the Internal Revenue Code of 1986, 
as amended by this section, shall not expire before the date 
on which the statement under section 6042(c) of such Code 
is required to be furnished with respect to the last calendar 
year beginning in such taxable year. 
(6) Paragraph (2) of section 302(f) of the Jobs and Growth 
Tax Relief Reconciliation Act of 2003 is amended to read as 
follows:
H. R. 1308—21 
‘‘(2) PASS-THRU ENTITIES.—In the case of a pass-thru entity 
described in subparagraph (A), (B), (C), (D), (E), or (F) of 
section 1(h)(10) of the Internal Revenue Code of 1986, as 
amended by this Act, the amendments made by this section 
shall apply to taxable years ending after December 31, 2002; 
except that dividends received by such an entity on or before 
such date shall not be treated as qualified dividend income 
(as defined in section 1(h)(11)(B) of such Code, as added by 
this Act).’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect as if included in section 302 of the Jobs and 
Growth Tax Relief Reconciliation Act of 2003. 
SEC. 403. AMENDMENTS RELATED TO JOB CREATION AND WORKER 
ASSISTANCE ACT OF 2002. 
(a) AMENDMENTS RELATED TO SECTION 101 OF THE ACT.— 
(1) Clause (i) of section 168(k)(2)(B) is amended to read 
as follows: 
‘‘(i) IN
GENERAL.—The term ‘qualified property’ 
includes any property if such property— 
‘‘(I) meets the requirements of clauses (i), (ii), 
and (iii) of subparagraph (A), 
‘‘(II) has a recovery period of at least 10 years 
or is transportation property, 
‘‘(III) is subject to section 263A, and 
‘‘(IV) meets the requirements of clause (ii) or 
(iii) of section 263A(f)(1)(B) (determined as if such 
clauses also apply to property which has a long 
useful 
life 
(within 
the 
meaning 
of 
section 
263A(f))).’’. 
(2)(A) Subparagraph (D) of section 168(k)(2) is amended 
by adding at the end the following new clauses: 
‘‘(iii) SYNDICATION.—For purposes of subparagraph 
(A)(ii), if— 
‘‘(I) property is originally placed in service 
after September 10, 2001, by the lessor of such 
property, 
‘‘(II) such property is sold by such lessor or 
any subsequent purchaser within 3 months after 
the date such property was originally placed in 
service, and 
‘‘(III) the user of such property after the last 
sale during such 3-month period remains the same 
as when such property was originally placed in 
service, 
such property shall be treated as originally placed 
in service not earlier than the date of such last sale. 
‘‘(iv) LIMITATIONS RELATED TO USERS AND RELATED 
PARTIES.—The term ‘qualified property’ shall not 
include any property if— 
‘‘(I) the user of such property (as of the date 
on which such property is originally placed in 
service) or a person which is related (within the 
meaning of section 267(b) or 707(b)) to such user 
or to the taxpayer had a written binding contract 
in effect for the acquisition of such property at 
any time on or before September 10, 2001, or
H. R. 1308—22 
‘‘(II) in the case of property manufactured, 
constructed, or produced for such user’s or person’s 
own use, the manufacture, construction, or produc-
tion of such property began at any time on or 
before September 10, 2001.’’. 
(B) Clause (ii) of section 168(k)(2)(D) is amended by 
inserting ‘‘clause (iii) and’’ before ‘‘subparagraph (A)(ii)’’. 
(b) AMENDMENTS RELATED TO SECTION 102 OF THE ACT.— 
(1) Subparagraph (H) of section 172(b)(1) is amended by 
striking ‘‘a taxpayer which has’’. 
(2) In the case of a net operating loss for a taxable year 
ending during 2001 or 2002— 
(A) an application under section 6411(a) of the Internal 
Revenue Code of 1986 with respect to such loss shall not 
fail to be treated as timely filed if filed before November 
1, 2002, 
(B) any election made under section 172(b)(3) of such 
Code may (notwithstanding such section) be revoked before 
November 1, 2002, and 
(C) any election made under section 172(j) of such 
Code shall (notwithstanding such section) be treated as 
timely made if made before November 1, 2002. 
(3) Section 102(c)(2) of the Job Creation and Worker Assist-
ance Act of 2002 (Public Law 107–147) is amended by striking 
‘‘before January 1, 2003’’ and inserting ‘‘after December 31, 
1990’’. 
(4)(A) Subclause (I) of section 56(d)(1)(A)(i) is amended 
by striking ‘‘attributable to carryovers’’. 
(B) Subclause (I) of section 56(d)(1)(A)(ii) is amended— 
(i) by striking ‘‘for taxable years’’ and inserting ‘‘from 
taxable years’’, and 
(ii) 
by 
striking 
‘‘carryforwards’’ 
and 
inserting 
‘‘carryovers’’. 
(c) AMENDMENTS RELATED TO SECTION 301 OF THE ACT.— 
(1) Subparagraph (D) of section 1400L(a)(2) is amended— 
(A) by striking ‘‘subchapter B’’ and inserting ‘‘sub-
chapter A’’, and 
(B) in clause (ii), by striking ‘‘subparagraph (B)’’ and 
inserting ‘‘this paragraph’’. 
(2) Subparagraph (D) of section 1400L(b)(2) is amended 
by inserting ‘‘, and clause (iv) thereof shall be applied by 
substituting ‘qualified New York Liberty Zone property’ for 
‘qualified property’ ’’ before the period at the end. 
(3) Subsection (c) of section 1400L is amended by adding 
at the end the following new paragraph: 
‘‘(5) ELECTION OUT.—For purposes of this subsection, rules 
similar to the rules of section 168(k)(2)(C)(iii) shall apply.’’. 
(4) Paragraph (2) of section 1400L(f) is amended by 
inserting before the period ‘‘, determined without regard to 
subparagraph (C)(i) thereof’’. 
(d) AMENDMENT RELATED TO SECTION 405 OF THE ACT.—The 
last sentence of section 4006(a)(3)(E)(iii)(IV) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(E)(iii)(IV)) 
is amended— 
(1) by inserting ‘‘or this subparagraph’’ after ‘‘this clause’’ 
both places it appears, and
H. R. 1308—23 
(2) by inserting ‘‘(other than sections 4005, 4010, 4011, 
and 4043)’’ after ‘‘subsections’’. 
(e) AMENDMENT RELATED
TO SECTION 411 OF
THE ACT.— 
Subparagraph (B) of section 411(c)(2) of the Job Creation and 
Worker Assistance Act of 2002 is amended by striking ‘‘Paragraph 
(2)’’ and inserting ‘‘Paragraph (1)’’. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provisions of the Job Creation 
and Worker Assistance Act of 2002 to which they relate. 
SEC. 404. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX 
RELIEF RECONCILIATION ACT OF 2001. 
(a) AMENDMENT RELATED TO SECTION 401 OF THE ACT.—Clause 
(i) of section 530(d)(2)(C) is amended by striking ‘‘higher’’ after 
‘‘qualified’’. 
(b) AMENDMENTS RELATED TO SECTION 611 OF THE ACT.— 
(1) Paragraph (3) of section 45A(c) is amended by inserting 
‘‘, except that the base period taken into account for purposes 
of such adjustment shall be the calendar quarter beginning 
October 1, 1993’’ before the period at the end. 
(2) Subparagraph (A) of section 415(d)(4) is amended by 
adding at the end the following new sentence: ‘‘This subpara-
graph shall also apply for purposes of any provision of this 
title that provides for adjustments in accordance with the 
method contained in this subsection, except to the extent pro-
vided in such provision.’’. 
(c) AMENDMENT RELATED TO SECTION 614 OF THE ACT.—Clause 
(ii) of section 4972(c)(6)(A) is amended to read as follows: 
‘‘(ii) the amount of contributions described in sec-
tion 401(m)(4)(A), or’’. 
(d) AMENDMENT RELATED TO SECTION 637 OF THE ACT.—Clause 
(i) of section 408(p)(6)(A) is amended by adding at the end the 
following new sentence: ‘‘For purposes of the preceding sentence, 
amounts described in section 6051(a)(3) shall be determined without 
regard to section 3401(a)(3).’’. 
(e) AMENDMENT RELATED
TO SECTION 641 OF
THE ACT.— 
Subparagraph (B) of section 403(a)(4) is amended to read as follows: 
‘‘(B) CERTAIN RULES MADE APPLICABLE.—The rules of 
paragraphs (2) through (7) and (9) of section 402(c) and 
section 402(f) shall apply for purposes of subparagraph 
(A).’’. 
(f) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provisions of the Economic 
Growth and Tax Relief Reconciliation Act of 2001 to which they 
relate. 
SEC. 405. AMENDMENTS RELATED TO COMMUNITY RENEWAL TAX 
RELIEF ACT OF 2000. 
(a) AMENDMENTS RELATED TO SECTION 401 OF THE ACT.— 
(1) Subsection (c) of section 1234B is amended by adding 
at the end the following new sentence: ‘‘The Secretary may 
prescribe regulations regarding the status of contracts the 
values of which are determined directly or indirectly by ref-
erence to any index which becomes (or ceases to be) a narrow- 
based security index (as defined for purposes of section 
1256(g)(6)).’’. 
(2) Paragraph (6) of section 1256(g) is amended by adding 
at the end the following new sentence: ‘‘The Secretary may
H. R. 1308—24 
prescribe regulations regarding the status of options the values 
of which are determined directly or indirectly by reference 
to any index which becomes (or ceases to be) a narrow-based 
security index (as so defined).’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect as if included in section 401 of the Community 
Renewal Tax Relief Act of 2000. 
SEC. 406. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997. 
(a) AMENDMENT RELATED
TO SECTION 211 OF
THE ACT.— 
Subparagraph (B) of section 529(c)(5) is amended to read as follows: 
‘‘(B) TREATMENT
OF
DESIGNATION
OF
NEW
BENE-
FICIARY.—The taxes imposed by chapters 12 and 13 shall 
apply to a transfer by reason of a change in the designated 
beneficiary under the program (or a rollover to the account 
of a new beneficiary) unless the new beneficiary is— 
‘‘(i) assigned to the same generation as (or a higher 
generation than) the old beneficiary (determined in 
accordance with section 2651), and 
‘‘(ii) a member of the family of the old beneficiary.’’. 
(b) AMENDMENT RELATED TO SECTION 213 OF THE ACT.—Clause 
(iii) of section 530(d)(4)(B) is amended by striking ‘‘account holder’’ 
and inserting ‘‘designated beneficiary’’. 
(c) AMENDMENT RELATED TO SECTION 226 OF THE ACT.—Section 
1397E is amended by adding at the end the following new sub-
section: 
‘‘(i) S CORPORATIONS.—In the case of a qualified zone academy 
bond held by an S corporation which is an eligible taxpayer— 
‘‘(1) each shareholder shall take into account such share-
holder’s pro rata share of the credit, and 
‘‘(2) no basis adjustments to the stock of the corporation 
shall be made under section 1367 on account of this section.’’. 
(d) AMENDMENT RELATED
TO SECTION 311 OF
THE ACT.— 
Subparagraph (B) of section 55(b)(3) is amended by striking ‘‘the 
amount on which a tax is determined under’’ and inserting ‘‘an 
amount equal to the excess described in’’. 
(e) AMENDMENTS RELATED TO SECTION 1001 OF THE ACT.— 
(1) Paragraph (2) of section 1259(c) is amended by striking 
‘‘The term ‘constructive sale’ shall not include any contract’’ 
and inserting ‘‘A taxpayer shall not be treated as having made 
a constructive sale solely because the taxpayer enters into 
a contract’’. 
(2) Subparagraphs (A) and (B)(i) of section 1259(c)(3) are 
each amended by striking ‘‘be treated as a constructive sale’’ 
and inserting ‘‘cause a constructive sale’’. 
(3) Clause (i) of section 1259(c)(3)(A) is amended by striking 
‘‘before the end of’’ and inserting ‘‘on or before’’. 
(4) Clause (ii) of section 1259(c)(3)(B) is amended by 
striking ‘‘substantially similar’’. 
(5) Subclause (I) of section 1259(c)(3)(B)(ii) is amended 
to read as follows: 
‘‘(I) which would (but for this subparagraph) 
cause the requirement of subparagraph (A)(iii) not 
to be met with respect to the transaction described 
in clause (i) of this subparagraph,’’. 
(6) Subclause (II) of such section is amended by inserting 
‘‘on or’’ before ‘‘before the 30th day’’.
H. R. 1308—25 
(7) The heading for subparagraph (B) of section 1259(c)(3) 
is amended by striking ‘‘POSITIONS WHICH ARE REESTABLISHED’’ 
and inserting ‘‘CERTAIN CLOSED TRANSACTIONS WHERE RISK OF 
LOSS ON APPRECIATED FINANCIAL POSITION DIMINISHED’’. 
(f) AMENDMENTS RELATED TO SECTION 1015 OF THE ACT.— 
(1) Section 246(c)(1)(A) is amended by striking ‘‘90-day 
period’’ and inserting ‘‘91-day period’’. 
(2) Section 246(c)(2)(B) is amended— 
(A) by striking ‘‘180-day period’’ and inserting ‘‘181- 
day period’’, and 
(B) by striking ‘‘90-day period’’ and inserting ‘‘91-day 
period’’. 
(g) AMENDMENTS RELATED TO SECTION 1053 OF THE ACT.— 
(1) Section 901(k)(1)(A)(i) is amended by striking ‘‘30-day 
period’’ and inserting ‘‘31-day period’’. 
(2) Section 901(k)(3)(B) is amended— 
(A) by striking ‘‘90-day period’’ and inserting ‘‘91-day 
period’’, and 
(B) by striking ‘‘30-day period’’ and inserting ‘‘31-day 
period’’. 
(h) EFFECTIVE DATE.—The amendments made by this section 
shall take effect as if included in the provisions of the Taxpayer 
Relief Act of 1997 to which they relate. 
SEC. 407. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTEC-
TION ACT OF 1996. 
(a) AMENDMENT RELATED
TO SECTION 1307 OF
THE ACT.— 
Subsection (b) of section 1377 (relating to post-termination transi-
tion period) is amended by adding at the end the following new 
paragraph: 
‘‘(3) SPECIAL RULES FOR AUDIT RELATED POST-TERMINATION 
TRANSITION PERIODS.— 
‘‘(A) NO
APPLICATION
TO
CARRYOVERS.—Paragraph 
(1)(B) shall not apply for purposes of section 1366(d)(3). 
‘‘(B) LIMITATION ON APPLICATION TO DISTRIBUTIONS.— 
Paragraph (1)(B) shall apply to a distribution described 
in section 1371(e) only to the extent that the amount of 
such distribution does not exceed the aggregate increase 
(if any) in the accumulated adjustments account (within 
the meaning of section 1368(e)) by reason of the adjust-
ments referred to in such paragraph.’’. 
(b) AMENDMENTS RELATED TO SECTION 1432 OF THE ACT.— 
Paragraph (26) of section 401(a) is amended by striking subpara-
graph (C) and by redesignating subparagraphs (D) through (I) as 
subparagraphs (C) through (H), respectively. 
(c) 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. 408. CLERICAL AMENDMENTS. 
(a) INTERNAL REVENUE CODE OF 1986.— 
(1) Subclause (II) of section 1(g)(7)(B)(ii) is amended by 
striking ‘‘10 percent.’’ and inserting ‘‘10 percent’’. 
(2) Clause (ii) of section 1(h)(6)(A) is amended— 
(A) in subclause (I), by striking ‘‘(5)(B)’’ and inserting 
‘‘(4)(B)’’, and 
(B) in subclause (II), by striking ‘‘(5)(A)’’ and inserting 
‘‘(4)(A)’’.
H. R. 1308—27 
(14) The table contained in section 411(a)(12)(B) is amended 
by striking the last line and inserting the following: 
‘‘6 or more ...................................................................................
100.’’. 
(15) Paragraph (7) of section 414(q) is amended by striking 
‘‘section’’ and inserting ‘‘subsection’’. 
(16) Subparagraph (A) of section 416(i)(1) is amended in 
the matter following clause (iii) by striking ‘‘in the case of 
plan years’’ and inserting ‘‘In the case of plan years’’. 
(17) Subparagraph (C) of section 415(c)(7) is amended by 
striking ‘‘subparagraph (D)’’ and inserting ‘‘subparagraph (B)’’. 
(18) The item relating to section 1234B in the table of 
sections for part IV of subchapter P of chapter 1 is amended 
to read as follows: 
‘‘Sec. 1234B. Gains or losses from securities futures contracts.’’. 
(19) Subsection (h) of section 1296 is amended by striking 
‘‘paragraphs (2) and (3) of section 851(b)’’ and inserting ‘‘section 
851(b)(2)’’. 
(20) The table of sections for part II of subchapter A of 
chapter 11 is amended by inserting after the item relating 
to section 2010 the following new item: 
‘‘Sec. 2011. Credit for State death taxes.’’. 
(21) The table of sections for subchapter A of chapter 
13 is amended by inserting after the item relating to section 
2603 the following new item: 
‘‘Sec. 2604. Credit for certain State taxes.’’. 
(22) Subsection (c) of section 4973 is amended by striking 
‘‘subsection (a)(2)’’ and inserting ‘‘subsection (a)(3)’’. 
(23) Paragraph (2) of section 4978(a) is amended by striking 
‘‘60 percent’’ and inserting ‘‘(60 percent’’. 
(24) Paragraph (4) of section 6103(p) is amended by striking 
‘‘subsection (l)(16) or (17)’’ each place it appears and inserting 
‘‘subsection (l)(16) or (18)’’. 
(b) OTHER LAWS.— 
(1) Subsection (c) of section 156 of the Community Renewal 
Tax Relief Act of 2000 (114 Stat. 2763A–623) is amended in 
the first sentence by inserting ‘‘than’’ after ‘‘not later’’. 
(2) Paragraph (6) of section 1(a) of Public Law 107–22 
shall be applied by substituting ‘‘part VIII’’ for ‘‘part VII’’ in 
such paragraph. 
(3) Subparagraph (A) of section 1(b)(3) of Public Law 107– 
22 shall be applied by substituting ‘‘EDUCATIONAL’’ for ‘‘EDU-
CATION’’ in the matter preceding subparagraph (A) in such 
section. 
(4) Paragraph (1) of section 204(e) of the Railroad Retire-
ment and Survivors’ Improvement Act of 2001 shall be applied 
by 
substituting 
‘‘Section 
24(d)(2)(A)(iii)’’ 
for 
‘‘Section 
24(d)(3)(A)(iii)’’ in such paragraph. 
(5) Paragraph (2) of section 412(b) of the Economic Growth 
and Tax Relief Reconciliation Act of 2001 shall be applied 
by substituting ‘‘Section 221(f)(1)’’ for ‘‘Section 221(g)(1)’’ in 
such paragraph. 
(6) Subsection (b) of section 531 of the Economic Growth 
and Tax Relief Reconciliation Act of 2001 shall be applied 
by substituting ‘‘section’’ for ‘‘subsection’’ in such subsection.
H. R. 1308—28 
(7) Paragraph (3) of section 619(c) of the Economic Growth 
and Tax Relief Reconciliation Act of 2001 shall be applied 
by substituting ‘‘after the item relating to section 45D’’ for 
‘‘at the end’’ in such paragraph. 
(8) The table contained in section 203(a)(4)(B) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1053(a)(4)(B)) is amended by striking the last line and inserting 
the following: 
‘‘6 or more ...................................................................................
100.’’. 
(9) Paragraph (3) of section 652(b) of the Economic Growth 
and Tax Relief Reconciliation Act of 2001 shall be applied 
by inserting ‘‘each place it appears’’ before ‘‘in the next to 
last sentence’’ in such paragraph. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.