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(2) Paragraph (2) of section 6404(h) of the
1986 Code is amended by inserting ‘‘Robert T. Staf-
ford’’ before ‘‘Disaster’’.
(f) AMENDMENTS RELATED TO SECTION 1012 OF
1997 ACT.—
(1) Paragraph (2) of section 351(c) of the 1986
Code, as amended by section 6010(c) of the 1998
Act, is amended by inserting ‘‘, or the fact that the
corporation whose stock was distributed issues addi-
tional stock,’’ after ‘‘dispose of part or all of the dis-
tributed stock’’.
(2) Clause (ii) of section 368(a)(2)(H) of the
1986 Code, as amended by section 6010(c) of the
1998 Act, is amended by inserting ‘‘, or the fact
that the corporation whose stock was distributed
issues additional stock,’’ after ‘‘dispose of part or all
of the distributed stock’’.
(g) AMENDMENT RELATED TO SECTION 1082 OF
1997 ACT.—Subparagraph (F) of section 172(b)(1) of the
1986 Code is amended by adding at the end the following
new clause:
‘‘(iv) COORDINATION
WITH
PARA-
GRAPH
(2).—For purposes of applying
paragraph (2), an eligible loss for any tax-
able year shall be treated in a manner
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similar to the manner in which a specified
liability loss is treated.’’.
(h) AMENDMENT RELATED TO SECTION 1084 OF
1997 ACT.—Paragraph (3) of section 264(f) of the 1986
Code is amended by adding at the end the following flush
sentence:
‘‘If the amount described in subparagraph (A) with
respect to any policy or contract does not reasonably
approximate its actual value, the amount taken into
account under subparagraph (A) shall be the greater
of the amount of the insurance company liability or
the insurance company reserve with respect to such
policy or contract (as determined for purposes of the
annual statement approved by the National Associa-
tion of Insurance Commissioners) or shall be such
other amount as is determined by the Secretary.’’.
(i) AMENDMENT RELATED
TO SECTION 1205 OF
1997 ACT.—Paragraph (2) of section 6311(d) of the 1986
Code is amended by striking ‘‘under such contracts’’ in
the last sentence and inserting ‘‘under any such contract
for the use of credit or debit cards for the payment of
taxes imposed by subtitle A’’.
(j) 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.
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SEC. 504. AMENDMENTS RELATED TO TAX REFORM ACT OF
1984.
(a) IN GENERAL.—Subparagraph (C) of section
172(d)(4) of the 1986 Code is amended to read as follows:
‘‘(C) any deduction for casualty or theft
losses allowable under paragraph (2) or (3) of
section 165(c) shall be treated as attributable
to the trade or business; and’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 67(b) of the 1986
Code is amended by striking ‘‘for losses described in
subsection (c)(3) or (d) of section 165’’ and insert-
ing ‘‘for casualty or theft losses described in para-
graph (2) or (3) of section 165(c) or for losses de-
scribed in section 165(d)’’.
(2) Paragraph (3) of section 68(c) of the 1986
Code is amended by striking ‘‘for losses described in
subsection (c)(3) or (d) of section 165’’ and insert-
ing ‘‘for casualty or theft losses described in para-
graph (2) or (3) of section 165(c) or for losses de-
scribed in section 165(d)’’.
(3) Paragraph (1) of section 873(b) is amended
to read as follows:
‘‘(1) LOSSES.—The deduction allowed by sec-
tion 165 for casualty or theft losses described in
paragraph (2) or (3) of section 165(c), but only if
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the loss is of property located within the United
States.’’.
(c) EFFECTIVE DATES.—
(1) The amendments made by subsections (a)
and (b)(3) shall apply to taxable years beginning
after December 31, 1983.
(2) The amendment made by subsection (b)(1)
shall apply to taxable years beginning after Decem-
ber 31, 1986.
(3) The amendment made by subsection (b)(2)
shall apply to taxable years beginning after Decem-
ber 31, 1990.
SEC. 505. OTHER AMENDMENTS.
(a) AMENDMENTS RELATED TO SECTION 6103 OF
1986 CODE.—
(1) Subsection (j) of section 6103 of the 1986
Code is amended by adding at the end the following
new paragraph:
‘‘(5) DEPARTMENT
OF
AGRICULTURE.—Upon
request in writing by the Secretary of Agriculture,
the Secretary shall furnish such returns, or return
information reflected thereon, as the Secretary may
prescribe by regulation to officers and employees of
the Department of Agriculture whose official duties
require access to such returns or information for the
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purpose of, but only to the extent necessary in,
structuring, preparing, and conducting the census of
agriculture pursuant to the Census of Agriculture
Act of 1997 (Public Law 105–113).’’.
(2) Paragraph (4) of section 6103(p) of the
1986 Code is amended by striking ‘‘(j)(1) or (2)’’ in
the material preceding subparagraph (A) and in sub-
paragraph (F) and inserting ‘‘(j)(1), (2), or (5)’’.
(3) The amendments made by this subsection
shall apply to requests made on or after the date of
the enactment of this Act.
(b) AMENDMENT RELATED TO SECTION 9004 OF
TRANSPORTATION EQUITY ACT
FOR
THE 21ST CEN-
TURY.—
(1) Paragraph (2) of section 9503(f) of the
1986 Code is amended to read as follows:
‘‘(2) notwithstanding section 9602(b), obliga-
tions held by such Fund after September 30, 1998,
shall be obligations of the United States which are
not interest-bearing.’’.
(2) The amendment made by paragraph (1)
shall take effect on October 1, 1998.
(c) CLERICAL AMENDMENTS.—
(1) Clause (i) of section 51(d)(6)(B) of the
1986 Code is amended by striking ‘‘rehabilitation
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plan’’ and inserting ‘‘plan for employment’’. The ref-
erence to plan for employment in such clause shall
be treated as including a reference to the rehabilita-
tion plans referred to in such clause as in effect be-
fore the amendment made by the preceding sen-
tence.
(2) Subparagraphs (C) and (D) of section
6693(a)(2) of the 1986 Code are each amended by
striking ‘‘Section’’ and inserting ‘‘section’’.
TITLE 
VI—AMERICAN 
COMMU-
NITY RENEWAL ACT OF 1998
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘American Community
Renewal Act of 1998’’.
SEC. 602. DESIGNATION OF AND TAX INCENTIVES FOR RE-
NEWAL COMMUNITIES.
(a) IN GENERAL.—Chapter 1 is amended by adding
at the end the following new subchapter:
‘‘Subchapter X—Renewal Communities
‘‘Part I.
Designation.
‘‘Part II.
Renewal community capital gain; renewal community
business.
‘‘Part III. Family development accounts.
‘‘Part IV.
Additional incentives.
‘‘PART I—DESIGNATION
‘‘Sec. 1400E. Designation of renewal communities.
‘‘SEC. 1400E. DESIGNATION OF RENEWAL COMMUNITIES.
‘‘(a) DESIGNATION.—
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‘‘(1) DEFINITIONS.—For purposes of this title,
the term ‘renewal community’ means any area—
‘‘(A) which is nominated by one or more
local governments and the State or States in
which it is located for designation as a renewal
community (hereinafter in this section referred
to as a ‘nominated area’); and
‘‘(B) which the Secretary of Housing and
Urban Development designates as a renewal
community, after consultation with—
‘‘(i) the Secretaries of Agriculture,
Commerce, Labor, and the Treasury; the
Director of the Office of Management and
Budget; and the Administrator of the
Small Business Administration; and
‘‘(ii) in the case of an area on an In-
dian reservation, the Secretary of the Inte-
rior.
‘‘(2) NUMBER OF DESIGNATIONS.—
‘‘(A) IN
GENERAL.—The Secretary of
Housing and Urban Development may des-
ignate not more than 20 nominated areas as re-
newal communities.
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‘‘(B) MINIMUM
DESIGNATION
IN
RURAL
AREAS.—Of the areas designated under para-
graph (1), at least 4 must be areas—
‘‘(i) which are within a local govern-
ment jurisdiction or jurisdictions with a
population of less than 50,000,
‘‘(ii) which are outside of a metropoli-
tan statistical area (within the meaning of
section 143(k)(2)(B)), or
‘‘(iii) which are determined by the
Secretary of Housing and Urban Develop-
ment, after consultation with the Secretary
of Commerce, to be rural areas.
‘‘(3) AREAS DESIGNATED BASED ON DEGREE
OF POVERTY, ETC.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this section, the nominated areas
designated as renewal communities under this
subsection shall be those nominated areas with
the highest average ranking with respect to the
criteria described in subparagraphs (B), (C),
and (D) of subsection (c)(3). For purposes of
the preceding sentence, an area shall be ranked
within each such criterion on the basis of the
amount by which the area exceeds such cri-
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terion, with the area which exceeds such cri-
terion by the greatest amount given the highest
ranking.
‘‘(B) EXCEPTION
WHERE
INADEQUATE
COURSE OF ACTION, ETC.—An area shall not be
designated under subparagraph (A) if the Sec-
retary of Housing and Urban Development de-
termines that the course of action described in
subsection (d)(2) with respect to such area is
inadequate.
‘‘(C) PRIORITY FOR EMPOWERMENT ZONES
AND ENTERPRISE COMMUNITIES WITH RESPECT
TO FIRST HALF OF DESIGNATIONS.—With re-
spect to the first 10 designations made under
this section—
‘‘(i) 10 shall be chosen from nomi-
nated areas which are empowerment zones
or enterprise communities (and are other-
wise eligible for designation under this sec-
tion); and
‘‘(ii) of such 10, 2 shall be areas de-
scribed in paragraph (2)(B).
‘‘(4) LIMITATION ON DESIGNATIONS.—
‘‘(A) PUBLICATION
OF
REGULATIONS.—
The Secretary of Housing and Urban Develop-
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ment shall prescribe by regulation no later than
4 months after the date of the enactment of
this section, after consultation with the officials
described in paragraph (1)(B)—
‘‘(i) the procedures for nominating an
area under paragraph (1)(A);
‘‘(ii) the parameters relating to the
size and population characteristics of a re-
newal community; and
‘‘(iii) the manner in which nominated
areas will be evaluated based on the cri-
teria specified in subsection (d).
‘‘(B) TIME LIMITATIONS.—The Secretary
of Housing and Urban Development may des-
ignate nominated areas as renewal communities
only during the 24-month period beginning on
the first day of the first month following the
month in which the regulations described in
subparagraph (A) are prescribed.
‘‘(C) PROCEDURAL RULES.—The Secretary
of Housing and Urban Development shall not
make any designation of a nominated area as a
renewal community under paragraph (2) un-
less—
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‘‘(i) the local governments and the
States in which the nominated area is lo-
cated have the authority—
‘‘(I) to nominate such area for
designation as a renewal community;
‘‘(II) to make the State and local
commitments described in subsection
(d); and
‘‘(III) to provide assurances sat-
isfactory to the Secretary of Housing
and Urban Development that such
commitments will be fulfilled,
‘‘(ii) a nomination regarding such
area is submitted in such a manner and in
such form, and contains such information,
as the Secretary of Housing and Urban
Development shall by regulation prescribe;
and
‘‘(iii) the Secretary of Housing and
Urban Development determines that any
information furnished is reasonably accu-
rate.
‘‘(5) NOMINATION PROCESS FOR INDIAN RES-
ERVATIONS.—For purposes of this subchapter, in
the case of a nominated area on an Indian reserva-