‘‘(2) PHASEOUT
OF
GRADUATED
RATES
AND 
UNIFIED
CREDIT.—The tentative tax determined 
under paragraph (1) shall be increased by an 
amount equal to 5 percent of so much of the amount 
(with respect to which the tentative tax is to be com-
puted) as exceeds $10,000,000 but does not exceed 
the amount at which the average tax rate under this 
section is 55 percent.’’. 
(c) INCREASE IN DEDUCTION FOR FAMILY-OWNED 
BUSINESS INTERESTS.—
(1) IN
GENERAL.—Paragraph (2) of section 
2057(a) is amended by striking ‘‘$675,000’’ and in-
serting ‘‘$2,000,000’’. 
(2) REPEAL OF COORDINATION WITH UNIFIED 
CREDIT.—Section 2057(a) is amended by striking 
paragraph (3). 
(3) REPEAL OF TERMINATION.—Section 2057 
is amended by striking subsection (j). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2003. 
SEC. 305. EXTENSION OF SUPERFUND, OIL SPILL LIABILITY, 
AND 
LEAKING 
UNDERGROUND 
STORAGE 
TANK TAXES. 
(a) EXCISE TAXES.—
(1) SUPERFUND
TAXES.—Section 4611(e) of 
the Internal Revenue Code of 1986 is amended to 
read as follows: 
‘‘(e) APPLICATION
OF
HAZARDOUS
SUBSTANCE 
SUPERFUND FINANCING RATE.—The Hazardous Sub-
stance Superfund financing rate under this section shall 
apply after December 31, 1986, and before January 1, 
1996, and after the date of the enactment of this sentence 
and before October 1, 2013.’’. 
(2) OIL SPILL LIABILITY TAX.—Section 4611(f) 
is amended to read as follows: 
‘‘(f) APPLICATION OF OIL SPILL LIABILITY TRUST 
FUND FINANCING RATE.—The Oil Spill Liability Trust 
Fund financing rate under subsection (c) shall apply after 
December 31, 1989, and before January 1, 1995, and 
after the date of the enactment of this sentence and before 
October 1, 2013.’’. 
(3) LEAKING
UNDERGROUND
STORAGE
TANK 
RATE.—Section 4081(d)(3) is amended by striking 
‘‘April 1, 2005’’ and inserting ‘‘October 1, 2013’’. 
(b) CORPORATE ENVIRONMENTAL INCOME TAX.—
Section 59A(e) is amended to read as follows: 
‘‘(e) APPLICATION OF TAX.—The tax imposed by this 
section shall apply to taxable years beginning after De-
cember 31, 1986, and before January 1, 1996, and to tax-
100
able years beginning after the date of the enactment of 
this sentence and before January 1, 2013.’’. 
(c) TECHNICAL AMENDMENTS.—
(1) Section 4611(b) is amended—
(A) by striking ‘‘or exported from’’ in 
paragraph (1)(A), 
(B) by striking ‘‘or exportation’’ in para-
graph (1)(B), and 
(C) by striking ‘‘AND EXPORTATION’’ in 
the heading. 
(2) Section 4611(d)(3) is amended—
(A) by striking ‘‘or exporting the crude oil, 
as the case may be’’ in the text and inserting 
‘‘the crude oil’’, and 
(B) by striking ‘‘OR
EXPORTS’’ in the 
heading. 
(d) EFFECTIVE DATES.—
(1) EXCISE TAXES.—The amendments made by 
subsections (a) and (c) shall take effect on the date 
of the enactment of this Act.
(2) INCOME
TAX.—The amendment made by 
subsection (b) shall apply to taxable years beginning 
after the date of the enactment of this Act.
101
SEC. 306. LIMITATION ON CERTAIN BUSINESS PROVISIONS 
ENACTED IN 2002 AND 2003. 
(a) SPECIAL
DEPRECIATION.—Section 168(k) is 
amended by striking ‘‘January 1, 2005’’ each place it oc-
curs in the headings and text and inserting ‘‘January 1, 
2004’’. 
(b) CARRYBACK
OF
CERTAIN
NET
OPERATING 
LOSSES.—Section 172(H) is amended by inserting at the 
end the following: ‘‘The preceding sentence shall not apply 
after December 31, 2003.’’. 
(c) EXPENSING.—Section 179 is amended by striking 
‘‘2006’’ each place it occurs and inserting ‘‘2004’’. 
SEC. 307. REPEAL OF EXCLUSION FOR PARKING TRANS-
PORTATION FRINGE BENEFIT. 
(a) IN GENERAL.—Section 132(f) is amended—
(1) in paragraph (1) by striking subparagraph 
(C), and 
(2) in paragraph (5) by striking subparagraph 
(C) and redesignating subparagraphs (D) and (E) as 
subparagraphs (C) and (D), respectively. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003. 
SEC. 308. REPEAL OF CERTAIN DEDUCTIONS RELATING TO 
SECOND HOMES. 
(a) INTEREST.—
102
(1) IN GENERAL.—Subparagraph (A) of section 
163(h)(4) is amended to read as follows: 
‘‘(A) QUALIFIED
RESIDENCE.—The term 
‘qualified residence’ means the principal resi-
dence (within the meaning of section 121) of 
the taxpayer.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply to interest paid or ac-
crued after December 31, 2003. 
(b) PROPERTY TAXES.—
(1) IN GENERAL.—Section 164 is amended by 
redesignating subsection (g) as subsection (h) and 
by inserting after subsection (f) the following new 
subsection: 
‘‘(g) NO DEDUCTION FOR MULTIPLE RESIDENCES.—
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed under this section for real property taxes paid 
or accrued in connection with any property of the 
taxpayer used as a residence of the taxpayer at any 
time during the taxable year other than as the prin-
cipal residence (within the meaning of section 121) 
of the taxpayer during such year. 
‘‘(2) PROPERTY
USED
AS
PRINCIPAL
RESI-
DENCE FOR PORTION OF YEAR.—In the case that 
more than one property is used by the taxpayer as
103
a principal residence (as so defined) during the tax-
able year, the real property taxes allowed as a de-
duction under this section with respect to a property 
shall not exceed the amount which bears the same 
ratio to the total amount of real property taxes paid 
or accrued for the taxable year with respect to such 
property as the number of days in the taxable year 
during which the taxpayer used such property as a 
principal residence bears to 365. 
‘‘(3) SPECIAL RULES FOR MARRIED INDIVID-
UALS.—For purposes of this subsection—
‘‘(A) MARRIED COUPLES MUST FILE JOINT 
RETURN.—If the taxpayer is married at the 
close of the taxable year, the deduction under 
this section for real property taxes with respect 
to the principal residence of the taxpayer shall 
only be allowed if the taxpayer and his spouse 
file a joint return for the taxable year. 
‘‘(B) MARITAL STATUS.—An individual le-
gally separated from his spouse under a decree 
of divorce or of separate maintenance shall not 
be considered as married. 
‘‘(C) CERTAIN MARRIED INDIVIDUALS LIV-
ING APART.—If—