Note this is a hand enrollment pursuant to Public Law 105–32.
H. R. 2014
One Hundred Fifth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, one thousand nine hundred and ninety-seven
An Act
To provide for reconciliation pursuant to subsections (b)(2) and (d) of section 105
of the concurrent resolution on the budget for fiscal year 1998.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Taxpayer
Relief Act of 1997’’.
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section
or other provision of the Internal Revenue Code of 1986.
(c) SECTION 15 NOT TO APPLY.—No amendment made by this
Act shall be treated as a change in a rate of tax for purposes
of section 15 of the Internal Revenue Code of 1986.
(d) WAIVER
OF ESTIMATED TAX PENALTIES.—No addition to
tax shall be made under section 6654 or 6655 of the Internal
Revenue Code of 1986 for any period before January 1, 1998,
for any payment the due date of which is before January 16,
1998, with respect to any underpayment attributable to such period
to the extent such underpayment was created or increased by
any provision of this Act.
(e) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; etc.
TITLE I—CHILD TAX CREDIT
Sec. 101. Child tax credit.
TITLE II—EDUCATION INCENTIVES
Subtitle A—Tax Benefits Relating to Education Expenses
Sec. 201. Hope and lifetime learning credits.
Sec. 202. Deduction for interest on education loans.
Sec. 203. Penalty-free withdrawals from individual retirement plans for higher edu-
cation expenses.
Subtitle B—Expanded Education Investment Savings Opportunities
PART I—QUALIFIED TUITION PROGRAMS
Sec. 211. Modifications of qualified State tuition programs.
PART II—EDUCATION INDIVIDUAL RETIREMENT ACCOUNTS
Sec. 213. Education individual retirement accounts.
H. R. 2014—2
Subtitle C—Other Education Initiatives
Sec. 221. Extension of exclusion for employer-provided educational assistance.
Sec. 222. Repeal of limitation on qualified 501(c)(3) bonds other than hospital
bonds.
Sec. 223. Increase in arbitrage rebate exception for governmental bonds used to fi-
nance education facilities.
Sec. 224. Contributions of computer technology and equipment for elementary or
secondary school purposes.
Sec. 225. Treatment of cancellation of certain student loans.
Sec. 226. Incentives for education zones.
TITLE III—SAVINGS AND INVESTMENT INCENTIVES
Subtitle A—Retirement Savings
Sec. 301. Restoration of IRA deduction for certain taxpayers.
Sec. 302. Establishment of nondeductible tax-free individual retirement accounts.
Sec. 303. Distributions from certain plans may be used without penalty to purchase
first homes.
Sec. 304. Certain bullion not treated as collectibles.
Subtitle B—Capital Gains
Sec. 311. 20 percent maximum capital gains rate for individuals.
Sec. 312. Exemption from tax for gain on sale of principal residence.
Sec. 313. Rollover of gain from sale of qualified stock.
Sec. 314. Amount of net capital gain taken into account in computing alternative
tax on capital gains for corporations not to exceed taxable income of the
corporation.
TITLE IV—ALTERNATIVE MINIMUM TAX REFORM
Sec. 401. Exemption from alternative minimum tax for small corporations.
Sec. 402. Repeal of separate depreciation lives for minimum tax purposes.
Sec. 403. Minimum tax not to apply to farmers’ installment sales.
TITLE V—ESTATE, GIFT, AND GENERATION-SKIPPING TAX PROVISIONS
Subtitle A—Estate and Gift Tax Provisions
Sec. 501. Cost-of-living adjustments relating to estate and gift tax provisions.
Sec. 502. Family-owned business exclusion.
Sec. 503. Modifications to rate of interest on portion of estate tax extended under
section 6166.
Sec. 504. Extension of treatment of certain rents under section 2032A to lineal de-
scendants.
Sec. 505. Clarification of judicial review of eligibility for extension of time for pay-
ment of estate tax.
Sec. 506. Gifts may not be revalued for estate tax purposes after expiration of stat-
ute of limitations.
Sec. 507. Repeal of throwback rules applicable to certain domestic trusts.
Sec. 508. Treatment of land subject to a qualified conservation easement.
Subtitle B—Generation-Skipping Tax Provision
Sec. 511. Expansion of exception from generation-skipping transfer tax for trans-
fers to individuals with deceased parents.
TITLE VI—EXTENSIONS
Sec. 601. Research tax credit.
Sec. 602. Contributions of stock to private foundations.
Sec. 603. Work opportunity tax credit.
Sec. 604. Orphan drug tax credit.
TITLE VII—INCENTIVES FOR REVITALIZATION OF THE DISTRICT OF
COLUMBIA
Sec. 701. Tax incentives for revitalization of the District of Columbia.
TITLE VIII—WELFARE-TO-WORK INCENTIVES
Sec. 801. Incentives for employing long-term family assistance recipients.
TITLE IX—MISCELLANEOUS PROVISIONS
Subtitle A—Provisions Relating to Excise Taxes
Sec. 901. General revenue portion of highway motor fuels taxes deposited into
Highway Trust Fund.
H. R. 2014—3
Sec. 902. Repeal of tax on diesel fuel used in recreational boats.
Sec. 903. Continued application of tax on imported recycled Halon-1211.
Sec. 904. Uniform rate of tax on vaccines.
Sec. 905. Operators of multiple gasoline retail outlets treated as wholesale distribu-
tor for refund purposes.
Sec. 906. Exemption of electric and other clean-fuel motor vehicles from luxury
automobile classification.
Sec. 907. Rate of tax on certain special fuels determined on basis of BTU equiva-
lency with gasoline.
Sec. 908. Modification of tax treatment of hard cider.
Sec. 909. Study of feasibility of moving collection point for distilled spirits excise
tax.
Sec. 910. Clarification of authority to use semi-generic designations on wine labels.
Subtitle B—Revisions Relating to Disasters
Sec. 911. Authority to postpone certain tax-related deadlines by reason of presi-
dentially declared disaster.
Sec. 912. Use of certain appraisals to establish amount of disaster loss.
Sec. 913. Treatment of livestock sold on account of weather-related conditions.
Sec. 914. Mortgage financing for residences located in disaster areas.
Sec. 915. Abatement of interest on underpayments by taxpayers in presidentially
declared disaster areas.
Subtitle C—Provisions Relating to Employment Taxes
Sec. 921. Clarification of standard to be used in determining employment tax sta-
tus of securities brokers.
Sec. 922. Clarification of exemption from self-employment tax for certain termi-
nation payments received by former insurance salesmen.
Subtitle D—Provisions Relating to Small Businesses
Sec. 931. Waiver of penalty through June 30, 1998, on small businesses failing to
make electronic fund transfers of taxes.
Sec. 932. Clarification of treatment of home office use for administrative and man-
agement activities.
Sec. 933. Averaging of farm income over 3 years.
Sec. 934. Increase in deduction for health insurance costs of self-employed individ-
uals.
Sec. 935. Moratorium on certain regulations.
Subtitle E—Brownfields
Sec. 941. Expensing of environmental remediation costs.
Subtitle F—Empowerment Zones, Enterprise Communities, Brownfields, and
Community Development Financial Institutions
CHAPTER 1—ADDITIONAL EMPOWERMENT ZONES
Sec. 951. Additional empowerment zones.
CHAPTER 2—NEW EMPOWERMENT ZONES
Sec. 952. Designation of new empowerment zones.
Sec. 953. Volume cap not to apply to enterprise zone facility bonds with respect to
new empowerment zones.
Sec. 954. Modification to eligibility criteria for designation of future enterprise
zones in Alaska or Hawaii.
CHAPTER 3—TREATMENT OF EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES
Sec. 955. Modifications to enterprise zone facility bond rules for all empowerment
zones and enterprise communities.
Sec. 956. Modifications to enterprise zone business definition for all empowerment
zones and enterprise communities.
Subtitle G—Other Provisions
Sec. 961. Use of estimates of shrinkage for inventory accounting.
Sec. 962. Assignment of workmen’s compensation liability eligible for exclusion re-
lating to personal injury liability assignments.
Sec. 963. Tax-exempt status for certain State worker’s compensation act companies.
Sec. 964. Election for 1987 partnerships to continue exception from treatment of
publicly traded partnerships as corporations.
Sec. 965. Exclusion from unrelated business taxable income for certain sponsorship
payments.