I 
110TH CONGRESS 
2D SESSION 
H. R. 6178 
To strengthen existing legislation sanctioning persons aiding and facilitating 
nonproliferation activities by the Governments of Iran, North Korea, 
and Syria, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2008 
Ms. ROS-LEHTINEN
(for herself, Mr. CANTOR, Mr. PENCE, and Mr. 
MCCOTTER) introduced the following bill; which was referred to the Com-
mittee on Foreign Affairs, and in addition to the Committees on Ways 
and Means, Judiciary, Oversight and Government Reform, and Financial 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To strengthen existing legislation sanctioning persons aiding 
and facilitating nonproliferation activities by the Govern-
ments of Iran, North Korea, and Syria, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the or 
‘‘Security through Termination Of Proliferation Act of 
2008’’ or the ‘‘STOP Act of 2008’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; Table of contents. 
TITLE I—CODIFICATION OF SANCTIONS AGAINST IRAN, NORTH 
KOREA, AND SYRIA 
Sec. 101. Codification of sanctions against Iran. 
Sec. 102. Codification of sanctions against North Korea. 
Sec. 103. Codification of sanctions against Syria. 
TITLE II—AMENDMENTS TO THE IRAN, NORTH KOREA, AND 
SYRIA NONPROLIFERATION ACT 
Sec. 201. Transshipment of certain goods, services, or technology. 
Sec. 202. Restrictions on nuclear cooperation. 
Sec. 203. Exclusion of senior officials. 
TITLE III—AMENDMENTS TO THE IRAN SANCTIONS ACT OF 1996 
AND RELATED PROVISIONS 
Sec. 301. Exclusion from the United States of senior officials of foreign persons 
who have aided proliferation relating to Iran. 
Sec. 302. Denial of tax benefits for taxpayers engaged in business activity with 
Iran prohibited by United States law. 
Sec. 303. Income tax of foreign corporations engaged in business activity with 
Iran prohibited by United States law. 
Sec. 304. Compensation for Former United States Hostages in Iran Fund. 
TITLE IV—DEFINITIONS 
Sec. 401. Definitions. 
TITLE 
I—CODIFICATION 
OF 
SANCTIONS 
AGAINST 
IRAN, 
NORTH KOREA, AND SYRIA 
SEC. 101. CODIFICATION OF SANCTIONS AGAINST IRAN. 
United States sanctions, controls, and regulations 
with respect to Iran imposed pursuant to Executive Order 
No. 12957, sections 1(b) through (1)(g) and sections (2) 
through (6) of Executive Order No. 12959, and sections 
2 and 3 of Executive Order No. 13059 (relating to exports 
and certain other transactions with Iran) as in effect on 
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January 1, 2008, shall remain in effect until the President 
certifies to the appropriate congressional committees that 
the Government of Iran has verifiably dismantled its 
weapons of mass destruction programs. 
SEC. 102. CODIFICATION OF SANCTIONS AGAINST NORTH 
KOREA. 
United States sanctions, controls, and regulations 
with respect to North Korea imposed by reason of a deter-
mination of the Secretary of State that the Government 
of North Korea, for purposes of section 6(j) of the Export 
Administration Act of 1979 (as continued in effect pursu-
ant to the International Emergency Economic Powers 
Act), section 40 of the Arms Export Control Act, section 
620A of the Foreign Assistance Act of 1961, or other pro-
vision of law, is a government that has repeatedly provided 
support for acts of international terrorism, shall remain 
in effect and may not be lifted pursuant to such provisions 
of law until the President certifies to appropriate congres-
sional committees that the Government of North Korea 
has verifiably dismantled its weapons of mass destruction 
programs. 
SEC. 103. CODIFICATION OF SANCTIONS AGAINST SYRIA. 
Restrictions against the Government of Syria, and on 
persons by reason of their direction of, or contribution to, 
activities of the Government of Syria, that were imposed 
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pursuant to the International Emergency Economic Pow-
ers Act, the Syria Accountability and Lebanese Sov-
ereignty Act of 2003, the Iran, North Korea, and Syria 
Nonproliferation Act, or any similar provision of law, as 
in effect on the date of the enactment of this Act, includ-
ing the restrictions imposed under Executive Order 12938 
(as amended by Executive Order 13094), Executive Order 
13338, Executive Order 13399, Executive Order 13460, 
and any similar Executive Order, shall remain in effect 
and may not be lifted pursuant to such provisions of law 
until the President certifies to the appropriate congres-
sional committees that the Government of Syria has 
verifiably dismantled its weapons of mass destruction pro-
grams. 
TITLE II—AMENDMENTS TO THE 
IRAN, NORTH KOREA, AND 
SYRIA 
NONPROLIFERATION 
ACT 
SEC. 201. TRANSSHIPMENT OF CERTAIN GOODS, SERVICES, 
OR TECHNOLOGY. 
The Iran, North Korea, and Syria Nonproliferation 
Act (Public Law 106–178; 50 U.S.C. 1701 note) is 
amended— 
(1) in section 2— 
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(A) in subsection (a), in the matter pre-
ceding paragraph (1)— 
(i) by striking ‘‘or’’ after ‘‘Syria’’; and 
(ii) by inserting after ‘‘North Korea’’ 
the following: ‘‘, on or after January 1, 
1999, permitted, hosted or otherwise facili-
tated a transshipment (as such term is de-
fined in section 5) that may have enabled 
a foreign person to transfer (as such term 
is defined in section 7) to or acquire from 
Iran, on or after January 1, 2005, per-
mitted, hosted or otherwise facilitated a 
transshipment that may have enabled a 
foreign person to transfer to or acquire 
from Syria, or on or after January 1, 
2006, permitted, hosted or otherwise facili-
tated a transshipment that may have en-
abled a person to transfer to or acquire 
from North Korea’’; and 
(B) in subsection (e), by inserting ‘‘, or 
whose transfer via transshipment was per-
mitted, hosted or facilitated,’’ after ‘‘trans-
ferred’’; and 
(2) in section 5— 
(A) in subsection (a)— 
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(i) in paragraph (1), by inserting ‘‘, or 
did not permit, host, or otherwise facilitate 
transshipment (as such term is defined in 
section 5) that may have enabled a foreign 
person to transfer to or acquire from,’’ be-
fore ‘‘Iran’’; 
(ii) in paragraph (3), by striking ‘‘or’’ 
at the end; 
(iii) in paragraph (4), by striking the 
period at the end and inserting ‘‘; or’’; and 
(iv) by adding at the end the following 
new paragraph: 
‘‘(5) in the case of a foreign person who per-
mitted, hosted or otherwise facilitated transshipment 
that may have enabled a foreign person to transfer 
to or acquire from, Iran, North Korea, or Syria, as 
the case may be, the goods, services, or technology 
the apparent transfer of which caused that person to 
be identified in a report submitted pursuant to sec-
tion 2(a), the government with primary jurisdiction 
over the foreign person has made and continues to 
make clear, specific efforts to stop and deter the 
permitting, hosting, or other facilitating of trans-
shipments that may enable such transfers or acquisi-
tions.’’; and 
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(B) by adding at the end the following new 
subsection: 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) GOODS, SERVICES, OR TECHNOLOGY.—The 
term ‘goods, services, or technology’ includes— 
‘‘(A) any defense articles or defense serv-
ices on the United States Munitions List under 
section 38 of the Arms Export Control Act (22 
U.S.C. 2778) for which special export controls 
are warranted under such Act (22 U.S.C. 2751 
3 et seq.); 
‘‘(B) any item identified on the Commerce 
Control List maintained under part 774 of title 
15, Code of Federal Regulations; and 
‘‘(C) other sensitive United States goods, 
including intellectual property and services that 
would contribute to the abilities of Iran, North 
Korea, and Syria to further their conventional 
and unconventional military capabilities. 
‘‘(2) TRANSSHIPMENT.—In this section, the 
term ‘transshipment’ means the export from one 
country to another that passes through a third coun-
try, in which cargo is off-loaded and there is some 
change to conveyance.’’. 
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SEC. 202. RESTRICTIONS ON NUCLEAR COOPERATION. 
The Iran, North Korea, and Syria Nonproliferation 
Act is further amended— 
(1) by redesignating section 7 as section 9; and 
(2) by inserting after section 6 the following 
new section: 
‘‘SEC. 7. RESTRICTIONS ON NUCLEAR COOPERATION WITH 
COUNTRIES 
AIDING 
PROLIFERATION 
BY 
IRAN, NORTH KOREA, OR SYRIA. 
‘‘(a) IN GENERAL.— 
‘‘(1) 
RESTRICTIONS.—Notwithstanding 
any 
other provision of law— 
‘‘(A) no agreement for cooperation between 
the United States and the government of any 
country that is assisting the nuclear program of 
Iran, North Korea, or Syria or transferring ad-
vanced conventional weapons or missiles to 
Iran, North Korea, or Syria may be submitted 
to the President or to Congress pursuant to 
section 123 of the Atomic Energy Act of 1954 
(42 U.S.C. 2153); 
‘‘(B) no such agreement may enter into 
force with such country; 
‘‘(C) no license may be issued for export 
directly or indirectly to such country of any nu-
clear material, facilities, components, or other 
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goods, services, or technology that would be 
subject to such agreement; and 
‘‘(D) no approval may be given for the 
transfer or retransfer directly or indirectly to 
such country of any nuclear material, facilities, 
components, or other goods, services, or tech-
nology that would be subject to such agreement, 
until the President makes the determination 
and report under paragraph (2). 
‘‘(2) DETERMINATION AND REPORT.—The de-
termination and report referred to in paragraph 
(1)(D) are a determination and report by the Presi-
dent, submitted to the Committee on Foreign Affairs 
of the House of Representatives and the Committee 
on Foreign Relations of the Senate, that— 
‘‘(A) Iran, North Korea, or Syria have 
ceased their efforts to design, develop, or ac-
quire a nuclear explosive device or related mate-
rials or technology; or 
‘‘(B) the government of the country that is 
assisting the nuclear programs of Iran, North 
Korea, or Syria or transferring advanced con-
ventional weapons or missiles to Iran, North 
Korea, or Syria— 
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‘‘(i) has suspended all nuclear assist-
ance to Iran, North Korea, or Syria and 
all transfers of advanced conventional 
weapons and missiles to Iran, North 
Korea, or Syria; and 
‘‘(ii) is committed to maintaining that 
suspension until Iran, North Korea, or 
Syria have implemented measures that 
would permit the President to make the 
determination described in subparagraph 
(A). 
‘‘(b) RULES OF CONSTRUCTION.—The restrictions 
described in subsection (a)(1)— 
‘‘(1) shall apply in addition to all other applica-
ble procedures, requirements, and restrictions de-
scribed in the Atomic Energy Act of 1954 and other 
applicable Acts; and 
‘‘(2) shall not be construed as affecting the va-
lidity of an agreement for cooperation between the 
United States and the government of a country that 
is in effect on the date of the enactment of this Act. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) AGREEMENT
FOR
COOPERATION.—The 
term ‘agreement for cooperation’ has the meaning 
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given that term in section 11 b. of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2014(b)). 
‘‘(2) ASSISTING
THE
NUCLEAR
PROGRAM
OF 
IRAN, NORTH KOREA, OR SYRIA.—The term ‘assist-
ing the nuclear program of Iran, North Korea, or 
Syria’ means the intentional transfer to Iran, North 
Korea, or Syria by a government, or by a person 
subject to the jurisdiction of a government with the 
knowledge and acquiescence of that government, of 
goods, services, or technology listed on the Nuclear 
Suppliers Group Guidelines for the Export of Nu-
clear Material, Equipment and Technology (pub-
lished by the International Atomic Energy Agency as 
Information Circular INFCIRC/254/Rev. 3/Part 1, 
and subsequent revisions), or the Nuclear Suppliers 
Group Guidelines for Transfers of Nuclear-Related 
Dual-Use Equipment, Material, and Related Tech-
nology (published by the International Atomic En-
ergy Agency as Information Circular INFCIR/254/ 
Rev. 3/Part 2, and subsequent revisions). 
‘‘(3) COUNTRY
THAT
IS
ASSISTING
THE
NU-
CLEAR
PROGRAMS
OF
IRAN, NORTH
KOREA, OR 
SYRIA, 
OR
TRANSFERRING
ADVANCED
CONVEN-
TIONAL
WEAPONS
OR
MISSILES
TO
IRAN, NORTH 
KOREA, OR SYRIA.—The term ‘country that is assist-
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ing the nuclear program of Iran, North Korea, or 
Syria, or transferring advanced conventional weap-
ons or missiles to Iran, North Korea, or Syria’ 
means— 
‘‘(A) the Russian Federation; and 
‘‘(B) any other country determined by the 
President to be assisting the nuclear program 
of Iran, North Korea, or Syria, or transferring 
advanced conventional weapons or missiles to 
Iran, North Korea, or Syria. 
‘‘(4) TRANSFER.—The term ‘transfer’ means 
the conveyance of technological or intellectual prop-
erty, or the conversion of intellectual or technological 
advances into marketable goods, services, or articles 
of value, developed and generated in one place, to 
another through illegal or illicit means to a country, 
the government of which the Secretary of State has 
determined, for purposes of section 6(j)(1)(A) of the 
Export Administration Act of 1979 (as in effect pur-
suant to the International Emergency Economic 
Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) 
of the Arms Export Control Act (22 U.S.C. 
2780(d)), and section 620A of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371), is a government 
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that has repeatedly provided support for acts of 
international terrorism. 
‘‘(5) 
TRANSFERRING
ADVANCED
CONVEN-
TIONAL
WEAPONS
OR
MISSILES
TO
IRAN, NORTH 
KOREA, OR SYRIA.—The term ‘transferring advanced 
conventional weapons or missiles to Iran, North 
Korea, or Syria’ means the intentional transfer to 
Iran, North Korea, or Syria by a government, or by 
a person subject to the jurisdiction of a government 
with the knowledge and acquiescence of that govern-
ment, of goods, services, or technology listed on— 
‘‘(A) the Wassenaar Arrangement list of 
Dual Use Goods and Technologies and Muni-
tions list of July 12, 1996, and subsequent revi-
sions; or 
‘‘(B) the Missile Technology Control Re-
gime Equipment and Technology Annex of 
June 11, 1996, and subsequent revisions. 
‘‘(d) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to expense paid or incurred on 
or after January 1, 2008.’’. 
SEC. 203. EXCLUSION OF SENIOR OFFICIALS. 
The Iran, North Korea, and Syria Nonproliferation 
Act is further amended by inserting after section (7), as 
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added by section 202 of this Act, the following new sec-
tion: 
‘‘SEC. 8. EXCLUSION FROM THE UNITED STATES OF SENIOR 
OFFICIALS OF FOREIGN PERSONS WHO HAVE 
AIDED PROLIFERATION RELATING TO IRAN, 
NORTH KOREA, OR SYRIA. 
‘‘(a) GROUNDS
FOR EXCLUSION.—Except as pro-
vided in subsection (b), the Secretary of State shall deny 
a visa to, and the Secretary of Homeland Security shall 
exclude from the United States, any alien whom the Sec-
retary of State determines is an alien who, on or after 
the date of the enactment of this Act is a— 
‘‘(1) corporate officer, principal, or shareholder 
with a controlling interest of a foreign person identi-
fied in a report submitted pursuant to section 2(a); 
‘‘(2) corporate officer, principal, or shareholder 
with a controlling interest of a successor entity to, 
or a parent or subsidiary of, a foreign person identi-
fied in such a report; 
‘‘(3) corporate officer, principal, or shareholder 
with a controlling interest of an affiliate of a foreign 
person identified in such a report, if such affiliate 
engaged in the activities referred to in such report, 
and if such affiliate is controlled in fact by the for-
eign person identified in such report; 
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‘‘(4) spouse, minor child, or agent of a person 
excludable under paragraph (1), (2), or (3); 
‘‘(5) senior official of a foreign government 
identified in such a report; 
‘‘(6) senior official of a foreign government with 
primary jurisdiction over a foreign person identified 
in such a report; or 
‘‘(7) spouse, minor child, or agent of a person 
excludable under paragraph (5) or (6). 
‘‘(b) EXCEPTION.—The President may waive the 
sanctions described in subsection (a) with respect to a per-
son specified in paragraph (5), (6), or (7) if the President 
determines and certifies in writing to the Committee on 
Foreign Affairs and the Committee on Appropriations of 
the House of Representatives and the Committee on For-
eign Relations and the Committee on Appropriations of 
the Senate, on a case by case basis, that the foreign gov-
ernment with primary jurisdiction over such person has 
made and continues to make clear, specific efforts to stop 
and deter the transfer (as such term is defined in section 
7) or retransfer of, or the permitting, hosting, or other 
facilitating of transshipments (as such term is defined in 
section 5) that may enable the transfer or retransfer of, 
goods or technology that contribute to the efforts by Iran, 
North Korea, or Syria, as the case may be, to acquire or 
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develop advanced conventional weapons, or to acquire, de-
velop, produce, or stockpile biological, chemical, radio-
logical, or nuclear weapons or long-range ballistic missiles. 
‘‘(c) ADVANCED
CONVENTIONAL
WEAPONS
DE-
FINED.—In this section, the term ‘advanced conventional 
weapons’ means goods, services, or technology listed on— 
‘‘(1) the Wassenaar Arrangement list of Dual 
Use Goods and Technologies and Munitions list of 
July 12, 1996, and subsequent revisions; or 
‘‘(2) the Missile Technology Control Regime 
Equipment and Technology Annex of June 11, 
1996, and subsequent revisions.’’. 
TITLE 
III—AMENDMENTS 
TO 
THE IRAN SANCTIONS ACT OF 
1996 AND RELATED PROVI-
SIONS 
SEC. 301. EXCLUSION FROM THE UNITED STATES OF SEN-
IOR OFFICIALS OF FOREIGN PERSONS WHO 
HAVE AIDED PROLIFERATION RELATING TO 
IRAN. 
The Iran Sanctions Act of 1996 (Public Law 104– 
172; 50 U.S.C. 1701 note) is amended— 
(1) in section 5(b), in the matter preceding 
paragraph (1), by inserting ‘‘, or permitted, hosted, 
or otherwise facilitated transshipment that may have 
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enabled a person to export, transfer, or otherwise 
provide to Iran,’’ after ‘‘or otherwise provided to 
Iran’’; 
(2) by redesignating sections (7) through (14) 
as sections (8) through (15), respectively; and 
(3) by inserting after section (6) the following 
new section: 
‘‘SEC. 7. EXCLUSION FROM THE UNITED STATES OF SENIOR 
OFFICIALS OF FOREIGN PERSONS WHO HAVE 
AIDED PROLIFERATION RELATING TO IRAN. 
‘‘(a) GROUNDS
FOR EXCLUSION.—Except as pro-
vided in subsection (b), the Secretary of State shall deny 
a visa to, and the Secretary of State shall exclude from 
the United States, any alien whom the Secretary of State 
determines is an alien who, on or after the date of the 
enactment of this Act is a— 
‘‘(1) corporate officer, principal, or shareholder 
with a controlling interest of a person against whom 
sanctions have been imposed pursuant to section 5; 
‘‘(2) corporate officer, principal, or shareholder 
with a controlling interest of a successor entity to or 
a parent or subsidiary of such a person; 
‘‘(3) corporate officer, principal, or shareholder 
with a controlling interest of an affiliate of such a 
sanctioned person, if such affiliate engaged in a 
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(A) by redesignating paragraphs (15) and 
(16) as paragraphs (17) and (18), respectively; 
and 
(B) by inserting after paragraph (14) the 
following new paragraphs: 
‘‘(14) TRANSFER.—The term ‘transfer’ means 
the conveyance of technological or intellectual prop-
erty, or the conversion of intellectual or technological 
advances into marketable goods, services, or articles 
of value, developed and generated in one place, to 
another through illegal or illicit means to a country, 
the government of which the Secretary of State has 
determined, for purposes of section 6(j)(1)(A) of the 
Export Administration Act of 1979 (as in effect pur-
suant to the International Emergency Economic 
Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) 
of the Arms Export Control Act (22 U.S.C. 
2780(d)), and section 620A of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371), is a government 
that has repeatedly provided support for acts of 
international terrorism. 
‘‘(15) TRANSSHIPMENT.—The term ‘trans-
shipment’ means the export from one country to an-
other that passes through a third country, in which 
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cargo is off-loaded and there is some change to con-
veyance.’’. 
SEC. 302. DENIAL OF TAX BENEFITS FOR TAXPAYERS EN-
GAGED IN BUSINESS ACTIVITY WITH IRAN 
PROHIBITED BY UNITED STATES LAW. 
(a) IN GENERAL.—Section 901 of the Internal Rev-
enue Code of 1986 (relating to taxes of foreign countries 
and of possessions of United States) is amended by redes-
ignating subsection (m) as subsection (n) and by inserting 
after subsection (l) the following new subsection: 
‘‘(m) TAXPAYERS ENGAGED IN BUSINESS ACTIVITY 
WITH IRAN PROHIBITED BY UNITED STATES LAW.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this part, in the case of a taxpayer 
which is a member of an expanded affiliated group 
any member of which, on any day during the taxable 
year, engaged in business activity with Iran which is 
prohibited by United States law, no credit shall be 
allowed under subsection (a) to the taxpayer for any 
income, war profits, or excess profits taxes paid or 
accrued (or deemed paid under section 902 or 960) 
to any country if such taxes are with respect to in-
come attributable to a period any part of which oc-
curs during such taxable year. 
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‘‘(2) BUSINESS
ACTIVITY.—For purposes of 
paragraph (1)— 
‘‘(A) IN
GENERAL.—The term ‘business 
activity’ means any of the following: 
‘‘(i) An entity described in subpara-
graph (D) that— 
‘‘(I) has in effect a contract that 
includes the responsibility for the de-
velopment of petroleum resources, pe-
troleum refining capacity, or liquefied 
natural gas located in Iran or (as the 
case may be), or 
‘‘(II) has in effect a contract pro-
viding for the general supervision and 
guarantee of another person’s per-
formance of a contract described in 
subclause (I). 
‘‘(ii) The purchase of a share of own-
ership, including an equity interest, in the 
development described in clause (i). 
‘‘(iii) Having in effect a contract pro-
viding for the participation in royalties, 
earnings, or profits in the development de-
scribed in clause (i), without regard to the 
form of the participation. 
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‘‘(B) 
GOODS, 
SERVICES, 
AND
TECH-
NOLOGY.—The term ‘business activity’ includes 
the entry into, performance, or financing of a 
contract to sell or purchase goods, services, or 
technology. 
‘‘(C) SPECIAL RULE.—For purposes of this 
paragraph, an amendment or other modification 
that is made, on or the date of the enactment 
of this subsection to an agreement or contract 
shall be treated as the entry of an agreement 
or contract. 
‘‘(D) ENTITIES
DESCRIBED.—For pur-
poses of subparagraph (A), an entity described 
in this subparagraph is— 
‘‘(i) a natural person, 
‘‘(ii) a corporation, business associa-
tion, partnership, society, trust, financial 
institution, insurer, underwriter, guar-
antor, and any other business organization, 
‘‘(iii) any foreign subsidiary of any en-
tity described in clause (ii), 
‘‘(iv) any governmental entity oper-
ating as a business enterprise, such as an 
export credit agency, and 
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‘‘(v) any successor to any entity de-
scribed in clause (ii), (iii), or (iv). 
‘‘(3) TAXES ALLOWED AS A DEDUCTION, ETC.— 
Sections 275 and 78 shall not apply to any tax 
which is not allowable as a credit under subsection 
(a) by reason of this subsection. 
‘‘(4) EXPANDED AFFILIATED GROUP.—For pur-
poses of paragraph (1), the term ‘expanded affiliated 
group’ means an affiliated group (as defined in sub-
section (a) of section 1504 (without regard to sub-
sections (b)(2), (b)(4), and (c) thereof)); except that 
section 1504(a) shall be applied by substituting 
‘more than 50 percent’ for ‘at least 80 percent’ each 
place it appears. 
‘‘(5) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary or ap-
propriate to carry out the purposes of this sub-
section, including regulations which impose appro-
priate reporting requirements.’’. 
(b) INCOME INCLUDED AS SUBPART F INCOME.— 
Subsection (a) of section 952 is amended by striking 
‘‘and’’ at the end of paragraph (4), by striking the period 
at the end of paragraph (5) and inserting ‘‘, and’’, and 
by inserting after paragraph (5) the following new para-
graph: 
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