956 
(7) Section 865(j)(3) is amended by striking ‘‘, 
933, and 936’’ and inserting ‘‘and 933’’. 
(8) Section 901(g)(2) is amended by inserting 
‘‘(as in effect before its repeal)’’ after ‘‘936’’. 
(9) Section 904(b) is amended by striking para-
graph (4). 
(10) Section 1202(e)(4) is amended by striking 
subparagraph (B) and by redesignating subpara-
graphs (C) and (D) as subparagraphs (B) and (C), 
respectively. 
(11) Section 1361(b)(2) is amended by adding 
‘‘or’’ at the end of subparagraph (B), by striking 
subparagraph (C), and by redesignating subpara-
graph (D) as subparagraph (C). 
(12) Section 1504(b) is amended by striking 
paragraph (4). 
(13) Section 6091(b)(2)(B) is amended by 
striking clause (ii) and by redesignating clauses (iii) 
and (iv) as clauses (ii) and (iii), respectively. 
(14) Section 6654(d)(2)(D) is amended— 
(A) by striking ‘‘936(h) or’’ in clause (i), 
and 
(B) by striking ‘‘AND SECTION 936’’ in the 
heading. 
(15) Section 6655(e)(4) is amended— 
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(A) by striking ‘‘936(h) or’’ in subpara-
graph (A), and 
(B) by striking ‘‘AND SECTION 936’’ in the 
heading. 
(16)(A) Section 367(d) is amended by adding 
at the end the following new paragraph: 
‘‘(4) INTANGIBLE PROPERTY.—For purposes of 
this subsection, the term ‘intangible property’ means 
any— 
‘‘(A) patent, invention, formula, process, 
design, pattern, or know-how, 
‘‘(B) copyright, literary, musical, or artis-
tic composition, 
‘‘(C) trademark, trade name, or brand 
name, 
‘‘(D) franchise, license, or contract, 
‘‘(E) method, program, system, procedure, 
campaign, survey, study, forecast, estimate, 
customer list, or technical data, or 
‘‘(F) any similar item, 
which has substantial value independent of the serv-
ices of any individual.’’. 
(B) Section 367(a)(3)(B)(iv) is amended by 
striking ‘‘section 936(h)(3)(B)’’ and inserting ‘‘sub-
section (d)(4)’’. 
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(C) Sections 482 and 1298(e)(2)(A) are each 
amended by striking ‘‘section 936(h)(4)(B)’’ and in-
serting ‘‘section 367(d)(4)’’. 
SEC. 8046. BASIS OF PROPERTY ACQUIRED FROM DECE-
DENT. 
Section 1014 is amended— 
(1) by striking ‘‘either’’ and by striking ‘‘or sec-
tion 811(j) of the Internal Revenue Code of 1939 
where the decedent died after October 21, 1942’’ in 
subsection (a)(2), and 
(2) by striking paragraphs (7) and (8) of sub-
section (b). 
SEC. 8047. PROPERTY ON WHICH LESSEE HAS MADE IM-
PROVEMENTS. 
Section 1019 is amended by striking the last sen-
tence. 
SEC. 8048. INVOLUNTARY CONVERSION. 
Section 1033 is amended by striking subsection (j) 
and by redesignating subsection (k) as subsection (j). 
SEC. 8049. PROPERTY ACQUIRED DURING AFFILIATION. 
Section 1051 is hereby repealed, and the table of sec-
tions for part IV of subchapter O of chapter 1 is amended 
by striking the item relating to section 1051. 
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SEC. 8050. REPEAL OF SPECIAL HOLDING PERIOD RULES 
FOR CERTAIN COMMODITY FUTURES TRANS-
ACTIONS. 
Section 1222 is amended by striking the last sen-
tence. 
SEC. 8051. HOLDING PERIOD OF PROPERTY. 
(a) Paragraph (1) of section 1223 is amended by 
striking ‘‘, in the case of such exchanges after March 1, 
1954,’’. 
(b) Paragraph (4) of section 1223 is amended by 
striking ‘‘(or under so much of section 1052(c) as refers 
to section 113(a)(23) of the Internal Revenue Code of 
1939)’’. 
(c) Paragraph (6) of section 1223 is repealed. 
(d) Paragraph (8) of section 1223 is repealed. 
SEC. 8052. PROPERTY USED IN THE TRADE OR BUSINESS 
AND INVOLUNTARY CONVERSIONS. 
Subparagraph (A) of section 1231(c)(2) is amended 
by striking ‘‘beginning after December 31, 1981’’. 
SEC. 8053. SALE OF PATENTS. 
Subsection (a) of section 1249 is amended by striking 
‘‘after December 31, 1962,’’. 
SEC. 8054. GAIN FROM DISPOSITION OF FARMLAND. 
(a) Paragraph (1) of section 1252(a), as amended by 
the preceding provisions of this Act, is amended— 
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(1) by striking ‘‘beginning after December 31, 
1969’’ in the matter preceding subparagraph (A), 
and 
(2) by amending subparagraph (A) to read as 
follows: 
‘‘(A) the applicable percentage of the ag-
gregate deductions allowed under section 175 
(as in effect before its repeal by the Tax Re-
form Act of 2014) with respect to the farmland, 
or’’. 
(b) Paragraph (2) of section 1252(a) is amended by 
striking ‘‘sections 175’’ and all that follows and inserting 
‘‘section 175 (as in effect before its repeal by the Tax Re-
form Act of 2014).’’. 
SEC. 8055. TRANSITION RULES RELATED TO THE TREAT-
MENT OF AMOUNTS RECEIVED ON RETIRE-
MENT OR SALE OR EXCHANGE OF DEBT IN-
STRUMENTS. 
(a) Section 1271 is amended by striking subsection 
(c). 
(b) Section 1271(a)(2)(B) is amended by striking 
‘‘(and paragraph (2) of subsection (c))’’. 
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SEC. 8056. CERTAIN RULES WITH RESPECT TO DEBT IN-
STRUMENTS ISSUED BEFORE JULY 2, 1982. 
(a) Section 1272 is amended by striking subsection 
(b). 
(b) Section 163(j)(2)(C)(ii) is amended by striking 
‘‘or (b)(4)’’. 
(c) Section 1271(a)(2)(A)(ii) is amended by striking 
‘‘subsection (a)(7) or (b)(4) of section 1272’’ and inserting 
‘‘section 1272(a)(7)’’. 
(d) Section 1271(b)(1) is amended to read as follows: 
‘‘(1) IN GENERAL.—This section shall not apply 
to any obligation issued by a natural person before 
June 9, 1997.’’. 
(e) Section 1279(a)(4)(A)(ii), as amended by the pre-
ceding provisions of this Act, is amended by striking ‘‘or 
(b)(4)’’. 
(f) The amendments made by this section shall apply 
to debt instruments issued after July 1, 1982. 
SEC. 8057. CERTAIN RULES WITH RESPECT TO STRIPPED 
BONDS PURCHASED BEFORE JULY 2, 1982. 
(a) Section 1286 is amended by striking subsection 
(c). 
(b) Section 1286(e)(5) is amended by striking the 
last sentence. 
(c) Subsections (a) and (b) of section 1286 are each 
amended by striking ‘‘after July 1, 1982,’’. 
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after December 31, 1984’’ in clause (i) and by striking 
‘‘in a taxable year beginning after December 31, 1984’’ 
in clause (ii). 
SEC. 8063. CREDIT FOR STATE DEATH TAXES. 
(a) Part II of subchapter A of chapter 11 is amended 
by striking section 2011 (and by striking the item relating 
to such section in the table of sections for such subpart). 
(b) Subchapter A of chapter 13 is amended by strik-
ing section 2604 (and by striking the item relating to such 
section in the table of sections for such subpart). 
SEC. 8064. FAMILY-OWNED BUSINESS INTEREST. 
Part IV of subchapter A of chapter 11 is amended 
by striking section 2057 (and by striking the item relating 
to such section in the table of sections for such part). 
SEC. 8065. PROPERTY WITHIN THE UNITED STATES. 
Subsection (c) of section 2104 is amended by striking 
‘‘With respect to estates of decedents dying after Decem-
ber 31, 1969, deposits’’ and inserting ‘‘Deposits’’. 
SEC. 8066. REPEAL OF DEADWOOD PROVISIONS RELATING 
TO EMPLOYMENT TAXES. 
(a) TAX ON EMPLOYEES.—Subsection (a) of section 
3101 is amended by striking ‘‘the following percentages’’ 
and all that follows and inserting ‘‘6.2 percent of the 
wages (as defined in section 3121(a)) received by him with 
respect to employment (as defined in section 3121(b)).’’. 
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(b) TAX ON EMPLOYERS.— 
(1) Subsection (a) of section 3111 is amended 
by striking ‘‘the following percentages’’ and all that 
follows and inserting ‘‘6.2 percent of the wages (as 
defined in section 3121(a)) paid by him with respect 
to employment (as defined in section 3121(b)).’’ 
(2) Subsection (b) of section 3111 is amended 
by striking ‘‘the following percentages’’ and all that 
follows and inserting ‘‘1.45 percent of the wages (as 
defined in section 3121(a)) paid by him with respect 
to employment (as defined in section 3121(b)).’’ 
(3) Section 3111 is amended by striking sub-
section (d) and redesignating subsection (e) as sub-
section (d). 
(c) TIER 2 TAX ON EMPLOYEES.—Subsection (b) of 
section 3201 is amended to read as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on the income of each employee a tax 
equal to the percentage determined under section 3241 for 
any calendar year of the compensation received during 
such calendar year by such employee for services rendered 
by such employee.’’. 
(d) RATE
OF TIER 2 TAX
ON EMPLOYEE REP-
RESENTATIVES.—Subsection (b) of section 3211 is 
amended to read as follows: 
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‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on the income of each employee rep-
resentative a tax equal to the percentage determined under 
section 3241 for any calendar year of the compensation 
received during such calendar year by such employee rep-
resentative for services rendered by such employee rep-
resentative.’’. 
(e) TIER 2 TAX ON EMPLOYERS.— 
(1) Subsection (b) of section 3221 is amended 
to read as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on the income of each employer a tax 
equal to the percentage determined under section 3241 for 
any calendar year of the compensation paid during such 
calendar year by such employer for services rendered for 
such employer.’’. 
(2) Section 3221 is amended by striking sub-
section (d) and redesignating subsection (e) as sub-
section (d). 
(f) EMPLOYEE UNDER RAILROAD RETIREMENT SYS-
TEM.—Subsection (b) of section 3231 is amended by is 
amended by striking ‘‘; except’’ and all that follows and 
inserting a period. 
(g) DEFINITION OF WAGES.— 
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(1) Section 3121(b) is amended by striking 
paragraph (17). 
(2) Section 210(a) of the Social Security Act is 
amended by striking paragraph (17). 
(h) CREDITS AGAINST UNEMPLOYMENT TAX.— 
(1) Paragraph (4) of section 3302(f) is amend-
ed— 
(A) by striking ‘‘subsection—’’ and all that 
follows through ‘‘ (A) in general—The’’ and in-
serting ‘‘subsection, the’’, 
(B) by striking subparagraph (B), 
(C) by redesignating clauses (i) and(ii) as 
subparagraphs (A) and (B), respectively, and 
(D) by moving the text of such subpara-
graphs (as so redesignated) 2 ems to the left. 
(2) Paragraph (5) of section 3302(f) is amend-
ed by striking subparagraph (D) and by redesig-
nating subparagraph (E) as subparagraph (D). 
(i) DOMESTIC SERVICE EMPLOYMENT TAXES.—Sec-
tion 3510(b) is amended by striking paragraph (4). 
SEC. 8067. LUXURY PASSENGER AUTOMOBILES. 
(a) IN GENERAL.—Chapter 31 is amended by strik-
ing subchapter A (and by striking the item relating to 
such subchapter in the table of sections for such chapter). 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 4293 is amended by striking ‘‘sub-
chapter A of chapter 31,’’. 
(2) Section 4221 is amended— 
(A) in subsections (a) and (d)(1), by strik-
ing ‘‘subchapter A or’’ and inserting ‘‘sub-
chapter’’, 
(B) in subsection (a), by striking ‘‘In the 
case of taxes imposed by subchapter A of chap-
ter 31, paragraphs (1), (3), (4), and (5) shall 
not apply.’’, and 
(C) in subsection (c), by striking ‘‘4001(c), 
4001(d)’’. 
(3) Section 4222 is amended by striking 
‘‘4001(c), 4001(d),’’. 
SEC. 8068. TRANSPORTATION BY AIR. 
Section 4261(e) is amended— 
(1) in paragraph (1) by striking subparagraph 
(C), and 
(2) by striking paragraph (5). 
SEC. 8069. TAXES ON FAILURE TO DISTRIBUTE INCOME. 
(a) Paragraph (2) of section 4942(f) is amended by 
striking the semicolon at the end of subparagraph (B) and 
inserting ‘‘, and’’, by striking ‘‘; and’’ at the end of sub-
paragraph (C) and inserting a period, and by striking sub-
paragraph (D). 
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(b) Subsection (g) of section 4942 (as amended by 
this Act) is amended— 
(1) by striking ‘‘For all taxable years beginning 
on or after January 1, 1975, subject’’ in paragraph 
(2)(A) and inserting ‘‘Subject’’, and 
(2) by striking paragraph (4). 
(c) Section 4942(i)(2) is amended by striking ‘‘begin-
ning after December 31, 1969, and’’. 
SEC. 8070. TAXES ON TAXABLE EXPENDITURES. 
Section 4945(f) is amended by striking ‘‘(excluding 
therefrom any preceding taxable year which begins before 
January 1, 1970)’’. 
SEC. 8071. DEFINITIONS AND SPECIAL RULES. 
Section 4682 is amended by striking subsection (h). 
SEC. 8072. RETURNS. 
Subsection (a) of section 6039D is amended by strik-
ing ‘‘beginning after December 31, 1984,’’. 
SEC. 8073. INFORMATION RETURNS. 
Subsection (c) of section 6060 is amended by striking 
‘‘year’’ and all that follows and inserting ‘‘year.’’. 
SEC. 8074. ABATEMENTS. 
Section 6404(f) is amended by striking paragraph 
(3). 
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SEC. 8075. FAILURE BY CORPORATION TO PAY ESTIMATED 
INCOME TAX. 
Clause (i) of section 6655(g)(4)(A) is amended by 
striking ‘‘(or the corresponding provisions of prior law)’’. 
SEC. 8076. REPEAL OF 2008 RECOVERY REBATES. 
(a) IN GENERAL.—Subchapter B of chapter 65 is 
amended by striking section 6428 (and by striking the 
item relating to such section in the table of sections for 
such subchapter). 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by strik-
ing ‘‘6428,’’. 
(2) Section 6213(g)(2)(L) is amended by strik-
ing ‘‘32, or 6428’’ and inserting ‘‘or 32’’. 
(3) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by striking ‘‘or 
6428’’. 
SEC. 8077. REPEAL OF ADVANCE PAYMENT OF PORTION OF 
INCREASED CHILD CREDIT FOR 2003. 
Subchapter B of chapter 65 is amended by striking 
section 6429 (and by striking the item relating to such 
section in the table of sections for such subchapter). 
SEC. 8078. REPEAL OF PROVISIONS RELATED TO COBRA 
PREMIUM ASSISTANCE. 
(a) IN GENERAL.—Subchapter B of chapter 65 is 
amended by striking section 6432 (and by striking the 
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item relating to such section in the table of sections for 
such subchapter). 
(b) NOTIFICATION REQUIREMENT.—Part I of sub-
chapter B of chapter 68 is amended by striking section 
6720C (and by striking the item relating to such section 
in the table of sections for such part). 
(c) EXCLUSION FROM GROSS INCOME.—Part III of 
subchapter B of chapter 1 is amended by striking section 
139C (and by striking the item relating to such section 
in the table of sections for such part). 
SEC. 8079. RETIREMENT. 
Section 7447(i)(3)(B)(ii) is amended by striking ‘‘at 
4 percent per annum to December 31, 1947, and at 3 per-
cent per annum thereafter’’, and inserting ‘‘at 3 percent 
per annum’’. 
SEC. 8080. ANNUITIES TO SURVIVING SPOUSES AND DE-
PENDENT CHILDREN OF JUDGES. 
(a) Paragraph (2) of section 7448(a) is amended by 
striking ‘‘or under section 1106 of the Internal Revenue 
Code of 1939’’ and by striking ‘‘or pursuant to section 
1106(d) of the Internal Revenue Code of 1939’’. 
(b) Subsection (g) of section 7448 is amended by 
striking ‘‘or other than pursuant to section 1106 of the 
Internal Revenue Code of 1939’’. 
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(c) Subsections (g), (j)(1), and (j)(2) of section 7448 
are each amended by striking ‘‘at 4 percent per annum 
to December 31, 1947, and at 3 percent per annum there-
after’’ and inserting ‘‘at 3 percent per annum’’. 
SEC. 8081. MERCHANT MARINE CAPITAL CONSTRUCTION 
FUNDS. 
Paragraph (4) of section 7518(g) is amended by 
striking ‘‘any nonqualified withdrawal’’ and all that fol-
lows through ‘‘shall be determined’’ and inserting ‘‘any 
nonqualified withdrawal shall be determined’’. 
SEC. 8082. VALUATION TABLES. 
(a) Subsection (c) of section 7520 is amended by 
striking paragraph (2) and by redesignating paragraph 
(3) as paragraph (2). 
(b) Paragraph (2) of section 7520(c) of such Code, 
as so redesignated, is amended— 
(1) by striking ‘‘Not later than December 31, 
1989, the’’ and inserting ‘‘The’’, and 
(2) by striking ‘‘thereafter’’ in the last sentence 
thereof. 
SEC. 8083. DEFINITION OF EMPLOYEE. 
Section 7701(a)(20) is amended by striking ‘‘chapter 
21’’ and all that follows and inserting ‘‘chapter 21.’’. 
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SEC. 8084. EFFECTIVE DATE. 
(a) GENERAL RULE.—Except as otherwise provided 
in subsection (b) of this section and the preceding sections 
of this subtitle, the amendments made by this subtitle 
shall take effect on the date of enactment of this Act. 
(b) SAVINGS PROVISION.—If— 
(1) any provision amended or repealed by the 
amendments made by this subtitle applied to— 
(A) any transaction occurring before the 
date of the enactment of this Act, 
(B) any property acquired before such date 
of enactment, or 
(C) any item of income, loss, deduction, or 
credit taken into account before such date of 
enactment, and 
(2) the treatment of such transaction, property, 
or item under such provision would (without regard 
to the amendments or repeals made by this subtitle) 
affect the liability for tax for periods ending after 
such date of enactment, 
nothing in the amendments or repeals made by this sub-
title shall be construed to affect the treatment of such 
transaction, property, or item for purposes of determining 
liability for tax for periods ending after such date of enact-
ment. 
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Subtitle 
B—Conforming 
Amend-
ments Related to Multiple Sec-
tions 
SEC. 8101. CONFORMING AMENDMENTS RELATED TO MUL-
TIPLE SECTIONS. 
(a) GENERAL BUSINESS CREDIT.—Section 38(b), as 
amended by the preceding provisions of this Act, is amend-
ed— 
(1) by redesignating paragraphs (4), (5), (7), 
(8), (13), (20), and (33) as paragraphs (3), (4), (5), 
(6), (7), (8), and (9), respectively, 
(2) by adding ‘‘plus’’ at the end of paragraph 
(8) (as so redesignated), and 
(3) by striking the comma at the end of para-
graph (9) (as so redesignated) and inserting a pe-
riod. 
(b) ADJUSTMENTS TO BASIS.—Section 1016(a), as 
amended by the preceding provisions of this Act, is amend-
ed— 
(1) by striking the last two sentences of para-
graph (2), 
(2) in paragraph (4) by striking ‘‘(not includ-
ing’’ and all that follows through ‘‘1921)’’, 
(3) by striking paragraph (12), 
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(4) by redesignating paragraphs (11), (14), 
(16), (17), (18), (21), (23), (26), (38), and (39) as 
paragraphs (9), (10), (11), (12), (13), (14), (15), 
(16), (17), and (18), respectively, and 
(5) by adding ‘‘and’’ at the end of paragraph 
(17) (as so redesignated). 
(c) HOLDING PERIOD OF PROPERTY.—Section 1223, 
as amended by the preceding provisions of this Act, is 
amended by redesignating paragraphs (9), (10), (11), 
(12), and (15) as paragraphs (6), (7), (8), (9) and (10), 
respectively. 
(d) CORPORATE PREFERENCE ITEMS.— 
(1) IN GENERAL.—Subchapter B of chapter 1, 
as amended by this Act, is amended by striking part 
XI (and by striking the item relating to such part 
from the table of parts for such subchapter). 
(2) PRESERVATION
OF
SPECIAL
RULE
FOR 
TREATMENT
OF
INTANGIBLE
DRILLING
COSTS.— 
Section 263(c) is amended— 
(A) by striking all that precedes ‘‘and ex-
cept as provided in subsection (i)’’ and inserting 
the following: 
‘‘(c) INTANGIBLE DRILLING
AND DEVELOPMENT 
COSTS IN THE CASE OF OIL AND GAS WELLS AND GEO-
THERMAL WELLS.— 
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‘‘(1) IN GENERAL.—Notwithstanding subsection 
(a),’’, and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) REDUCTION FOR INTEGRATED OIL COMPA-
NIES.— 
‘‘(A) IN GENERAL.—In the case of a cor-
poration which is an integrated oil company, 
the amount allowable as a deduction for any 
taxable year (determined without regard to this 
paragraph) under paragraph (1) shall be re-
duced by 30 percent. 
‘‘(B) 
AMORTIZATION
OF
DISALLOWED 
AMOUNTS.—The amount not allowable as a de-
duction under paragraph (1) for any taxable 
year by reason of subparagraph (A) shall be al-
lowable as a deduction ratably over the 60- 
month period beginning with the month in 
which the costs are paid or incurred. 
‘‘(C) DISPOSITIONS.—For purposes of sec-
tion 1254, any deduction under subparagraph 
(B) shall be treated as a deduction allowable 
under paragraph (1). 
‘‘(D) INTEGRATED
OIL
COMPANY.—For 
purposes of this paragraph, the term ‘inte-
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grated oil company’ means, with respect to any 
taxable year, any producer of crude oil to whom 
subsection (c) of section 613A does not apply 
by reason of paragraph (2) or (4) of section 
613A(d) (as such provisions were in effect be-
fore their repeal by the Tax Reform Act of 
2014). 
‘‘(E) COORDINATION WITH COST DEPLE-
TION.—The portion of the adjusted basis of any 
property which is attributable to amounts to 
which subparagraph (A) applied shall not be 
taken into account for purposes of determining 
depletion under section 611.’’. 
(3) PRESERVATION OF LIMITATION ON CERTAIN 
INTEREST ON INDEBTEDNESS OF FINANCIAL INSTI-
TUTIONS.— 
(A) IN GENERAL.—Section 163 is amended 
by redesignating subsection (n) as subsection 
(o) and by inserting after subsection (m) the 
following new subsection: 
‘‘(n) LIMITATION
ON CERTAIN INTEREST
ON IN-
DEBTEDNESS OF FINANCIAL INSTITUTIONS.— 
‘‘(1) IN GENERAL.—For purposes of this sub-
title, in the case of a corporation, the amount allow-
able as a deduction under this chapter (determined 
VerDate Sep 11 2014 
23:03 Dec 19, 2014
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