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(b) THRESHOLD AMOUNT.—Paragraph (3) of section
3402(q) is amended—
(1) by striking ‘‘(B) and (C)’’ in subparagraph
(A) and inserting ‘‘(B), (C), and (D)’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(D) BINGO
AND
KENO.—Proceeds of
more than $5,000 from a wager placed in a
bingo or keno game.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1996.
PART VII—OTHER REFORMS
SEC. 13636. SUNSET OF LOW-INCOME HOUSING CREDIT.
(a) REPEAL OF REALLOCATION OF UNUSED CRED-
ITS
AMONG
STATES.—Subparagraph (D) of section
42(h)(3) is amended by adding at the end the following
new clause:
‘‘(v) TERMINATION.—No amount may
be allocated under this paragraph for any
calendar year after 1995.’’
(b) TERMINATION.—Section 42 is amended by add-
ing at the end the following new subsection:
‘‘(o) TERMINATION.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2)—
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‘‘(A) clause (i) of subsection (h)(3)(C)
shall not apply to any amount allocated after
December 31, 1997, and
‘‘(B) subsection (h)(4) shall not apply to
any building placed in service after such date.
‘‘(2) EXCEPTION FOR BOND-FINANCED BUILD-
INGS
IN
PROGRESS.—For purposes of paragraph
(1)(B), a building shall be treated as placed in serv-
ice before January 1, 1998, if—
‘‘(A) the bonds with respect to such build-
ing are issued before such date,
‘‘(B) the taxpayer’s basis in the project (of
which the building is a part) as of December
31, 1997, is more than 10 percent of the tax-
payer’s reasonably expected basis in such
project as of December 31, 1999, and
‘‘(C) such building is placed in service be-
fore January 1, 2000.’’
SEC. 13637. REPEAL OF CREDIT FOR CONTRIBUTIONS TO
COMMUNITY DEVELOPMENT CORPORATIONS.
(a) IN GENERAL.—Section 13311 of the Revenue
Reconciliation Act of 1993 (relating to credit for contribu-
tions to certain community development corporations) is
hereby repealed.
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(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to contributions made after the
date of the enactment of this Act (other than contributions
made pursuant to a legally enforceable agreement which
is effect on the date of the enactment of this Act).
SEC. 13638. REPEAL OF DIESEL FUEL TAX REBATE TO PUR-
CHASERS 
OF 
DIESEL-POWERED 
AUTO-
MOBILES AND LIGHT TRUCKS.
(a) IN GENERAL.—Section 6427 is amended by strik-
ing subsection (g).
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 34(a) is amended
to read as follows:
‘‘(3) under section 6427 with respect to fuels
used for nontaxable purposes or resold during the
taxable year (determined without regard to section
6427(k)).’’
(2) Paragraphs (1) and (2)(A) of section
6427(i) are each amended—
(A) by striking ‘‘(g),’’, and
(B) by striking ‘‘(or a qualified diesel pow-
ered highway vehicle purchased)’’ each place it
appears.
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(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to vehicles purchased after Decem-
ber 31, 1995.
SEC. 13639. APPLICATION OF FAILURE-TO-PAY PENALTY TO
SUBSTITUTE RETURNS.
(a) GENERAL RULE.—Section 6651 (relating to fail-
ure to file tax return or to pay tax) is amended by adding
at the end the following new subsection:
‘‘(g) TREATMENT OF RETURNS PREPARED BY SEC-
RETARY UNDER SECTION 6020(b).—In the case of any
return made by the Secretary under section 6020(b)—
‘‘(1) such return shall be disregarded for pur-
poses of determining the amount of the addition
under paragraph (1) of subsection (a), but
‘‘(2) such return shall be treated as the return
filed by the taxpayer for purposes of determining the
amount of the addition under paragraphs (2) and
(3) of subsection (a).’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply in the case of any return the
due date for which (determined without regard to exten-
sions) is after the date of the enactment of this Act.
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SEC. 13640. REPEAL OF SPECIAL RULE FOR RENTAL USE OF
VACATION HOMES, ETC., FOR LESS THAN 15
DAYS.
(a) IN GENERAL.—Section 280A (relating to dis-
allowance of certain expenses in connection with business
use of home, rental of vacation homes, etc.) is amended
by striking subsection (g).
(b) NO BASIS REDUCTION UNLESS DEPRECIATION
CLAIMED.—Section 1016 is amended by redesignating
subsection (e) as subsection (f) and by inserting after sub-
section (d) the following new subsection:
‘‘(e) SPECIAL RULE WHERE RENTAL USE OF VACA-
TION HOME, ETC., FOR LESS THAN 15 DAYS.—If a dwell-
ing unit is used during the taxable year by the taxpayer
as a residence and such dwelling unit is actually rented
for less than 15 days during the taxable year, the reduc-
tion under subsection (a)(2) by reason of such rental use
in any taxable year beginning after December 31, 1995,
shall not exceed the depreciation deduction allowed for
such rental use.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1995.
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SEC. 13641. ELECTION TO CEASE STATUS AS QUALIFIED
SCHOLARSHIP FUNDING CORPORATION.
(a) IN GENERAL.—Subsection (d) of section 150 (re-
lating to definitions and special rules) is amended by add-
ing at the end thereof the following new paragraph:
‘‘(3) ELECTION TO CEASE STATUS AS QUALI-
FIED SCHOLARSHIP FUNDING CORPORATION.—
‘‘(A) IN GENERAL.—Any qualified scholar-
ship funding bond, and qualified student loan
bond, outstanding on the date of the issuer’s
election under this paragraph (and any bond
(or series of bonds) issued to refund such a
bond) shall not fail to be a tax-exempt bond
solely because the issuer ceases to be described
in subparagraphs (A) and (B) of paragraph (2)
if the issuer meets the requirements of subpara-
graphs (B) and (C) of this paragraph.
‘‘(B) ASSETS AND LIABILITIES OF ISSUER
TRANSFERRED TO TAXABLE SUBSIDIARY.—The
requirements of this subparagraph are met by
an issuer if—
‘‘(i) all of the student loan notes of
the issuer and other assets pledged to se-
cure the repayment of qualified scholarship
funding bond indebtedness of the issuer
are transferred to another corporation
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within a reasonable period after the elec-
tion is made under this paragraph;
‘‘(ii) such transferee corporation as-
sumes or otherwise provides for the pay-
ment of all of the qualified scholarship
funding bond indebtedness of the issuer
within a reasonable period after the elec-
tion is made under this paragraph;
‘‘(iii) to the extent permitted by law,
such transferee corporation assumes all of
the responsibilities, and succeeds to all of
the rights, of the issuer under the issuer’s
agreements with the Secretary of Edu-
cation in respect of student loans;
‘‘(iv) immediately after such transfer,
the issuer, together with any other issuer
which has made an election under this
paragraph in respect of such transferee,
hold all of the senior stock in such trans-
feree corporation; and
‘‘(v) such transferee corporation is not
exempt from tax under this chapter.
‘‘(C) ISSUER TO OPERATE AS INDEPEND-
ENT
ORGANIZATION
DESCRIBED
IN
SECTION
501(c)(3).—The requirements of this subpara-