H. R. 2014—292
‘‘(B) DEFINITIONS.—For purposes of subparagraph (A)—
‘‘(i) CHARITABLE
BENEFICIARY.—The term ‘chari-
table beneficiary’ means any beneficiary which is an
organization described in section 170(c).
‘‘(ii) ESOP BENEFICIARY.—The term ‘ESOP bene-
ficiary’ means any beneficiary which is an employee
stock ownership plan (as defined in section 4975(e)(7))
that holds a remainder interest in qualified employer
securities (as defined in section 664(g)(4)) to be trans-
ferred to such plan in a qualified gratuitous transfer
(as defined in section 664(g)(1)).
‘‘(iii) QUALIFIED CHARITABLE REMAINDER TRUST.—
The term ‘qualified charitable remainder trust’ means
a charitable remainder annuity trust or a charitable
remainder unitrust (described in section 664).’’.
(9) Section 4947(b) is amended by inserting after paragraph
(3) the following new paragraph:
‘‘(4) SECTION 507.—The provisions of section 507(a) shall
not apply to a trust which is described in subsection (a)(2)
by reason of a distribution of qualified employer securities
(as defined in section 664(g)(4)) to an employee stock ownership
plan (as defined in section 4975(e)(7)) in a qualified gratuitous
transfer (as defined by section 664(g)).’’.
(10) The last sentence of section 4975(e)(7) is amended
by inserting ‘‘and section 664(g)’’ after ‘‘section 409(n)’’.
(11) Subsection (a) of section 4978 is amended—
(A) by inserting ‘‘or acquired any qualified employer
securities in a qualified gratuitous transfer to which section
664(g) applied’’ after ‘‘section 1042 applied’’, and
(B) by inserting before the comma at the end of para-
graph (2) ‘‘60 percent of the total value of all employer
securities as of such disposition in the case of any qualified
employer securities acquired in a qualified gratuitous trans-
fer to which section 664(g) applied)’’.
(12) Paragraph (2) of section 4978(b) is amended—
(A) by inserting ‘‘or acquired in the qualified gratuitous
transfer to which section 664(g) applied’’ after ‘‘section 1042
applied’’, and
(B) by inserting ‘‘or to which section 664(g) applied’’
after ‘‘section 1042 applied’’ in subparagraph (A) thereof.
(13) Subsection (c) of section 4978 is amended by striking
‘‘written statement’’ and all that follows and inserting ‘‘written
statement described in section 664(g)(1)(E) or in section
1042(b)(3) (as the case may be).’’.
(14) Paragraph (2) of section 4978(e) is amended by striking
the period and inserting ‘‘; except that such section shall be
applied without regard to subparagraph (B) thereof for purposes
of applying this section and section 4979A with respect to
securities acquired in a qualified gratuitous transfer (as defined
in section 664(g)(1)).’’.
(15) Subsection (a) of section 4979A is amended to read
as follows:
‘‘(a) IMPOSITION OF TAX.—If—
‘‘(1) there is a prohibited allocation of qualified securities
by any employee stock ownership plan or eligible worker-owned
cooperative, or
‘‘(2) there is an allocation described in section 664(g)(5)(A),
H. R. 2014—293
there is hereby imposed a tax on such allocation equal to 50 percent
of the amount involved.’’.
(16) Subsection (c) of section 4979A is amended to read
as follows:
‘‘(c) LIABILITY FOR TAX.—The tax imposed by this section shall
be paid by—
‘‘(1) the employer sponsoring such plan, or
‘‘(2) the eligible worker-owned cooperative,
which made the written statement described in section 664(g)(1)(E)
or in section 1042(b)(3)(B) (as the case may be).’’.
(17) Section 4979A is amended by redesignating subsection
(d) as subsection (e) and by inserting after subsection (c) the
following new subsection:
‘‘(d) SPECIAL STATUTE OF LIMITATIONS FOR TAX ATTRIBUTABLE
TO CERTAIN ALLOCATIONS.—The statutory period for the assessment
of any tax imposed by this section on an allocation described in
subsection (a)(2) of qualified employer securities shall not expire
before the date which is 3 years from the later of—
‘‘(1) the 1st allocation of such securities in connection with
a qualified gratuitous transfer (as defined in section 664(g)(1)),
or
‘‘(2) the date on which the Secretary is notified of the
allocation described in subsection (a)(2).’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to transfers made by trusts to, or for the use of, an
employee stock ownership plan after the date of the enactment
of this Act.
Subtitle C—Provisions Relating to Certain
Health Acts
SEC. 1531. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986
TO IMPLEMENT THE NEWBORNS’ AND MOTHERS’ HEALTH
PROTECTION ACT OF 1996 AND THE MENTAL HEALTH
PARITY ACT OF 1996.
(a) IN GENERAL.—Subtitle K is amended—
(1) by striking all that precedes section 9801 and inserting
the following:
‘‘Subtitle K—Group Health Plan
Requirements
‘‘CHAPTER 100. Group health plan requirements.
‘‘CHAPTER 100—GROUP HEALTH PLAN REQUIREMENTS
‘‘Subchapter A. Requirements relating to portability, access, and renewabil-
ity.
‘‘Subchapter B. Other requirements.
‘‘Subchapter C. General provisions.
H. R. 2014—294
‘‘Subchapter A—Requirements Relating to Portability,
Access, and Renewability
‘‘Sec. 9801. Increased portability through limitation on preexisting condi-
tion exclusions.
‘‘Sec. 9802. Prohibiting discrimination against individual participants and
beneficiaries based on health status.
‘‘Sec. 9803. Guaranteed renewability in multiemployer plans and certain
multiple employer welfare arrangements.’’,
(2) by redesignating sections 9804, 9805, and 9806 as sec-
tions 9831, 9832, and 9833, respectively,
(3) by inserting before section 9831 (as so redesignated)
the following:
‘‘Subchapter C—General Provisions
‘‘Sec. 9831. General exceptions.
‘‘Sec. 9832. Definitions.
‘‘Sec. 9833. Regulations.’’, and
(4) by inserting after section 9803 the following:
‘‘Subchapter B—Other Requirements
‘‘Sec. 9811. Standards relating to benefits for mothers and newborns.
‘‘Sec. 9812. Parity in the application of certain limits to mental health ben-
efits.
‘‘SEC. 9811. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND
NEWBORNS.
‘‘(a) REQUIREMENTS FOR MINIMUM HOSPITAL STAY FOLLOWING
BIRTH.—
‘‘(1) IN GENERAL.—A group health plan may not—
‘‘(A) except as provided in paragraph (2)—
‘‘(i) restrict benefits for any hospital length of stay
in connection with childbirth for the mother or newborn
child, following a normal vaginal delivery, to less than
48 hours, or
‘‘(ii) restrict benefits for any hospital length of
stay in connection with childbirth for the mother or
newborn child, following a caesarean section, to less
than 96 hours; or
‘‘(B) require that a provider obtain authorization from
the plan or the issuer for prescribing any length of stay
required under subparagraph (A) (without regard to para-
graph (2)).
‘‘(2) EXCEPTION.—Paragraph (1)(A) shall not apply in
connection with any group health plan in any case in which
the decision to discharge the mother or her newborn child
prior to the expiration of the minimum length of stay otherwise
required under paragraph (1)(A) is made by an attending pro-
vider in consultation with the mother.
‘‘(b) PROHIBITIONS.—A group health plan may not—
‘‘(1) deny to the mother or her newborn child eligibility,
or continued eligibility, to enroll or to renew coverage under
the terms of the plan, solely for the purpose of avoiding the
requirements of this section;
‘‘(2) provide monetary payments or rebates to mothers to
encourage such mothers to accept less than the minimum
protections available under this section;
H. R. 2014—295
‘‘(3) penalize or otherwise reduce or limit the reimburse-
ment of an attending provider because such provider provided
care to an individual participant or beneficiary in accordance
with this section;
‘‘(4) provide incentives (monetary or otherwise) to an
attending provider to induce such provider to provide care
to an individual participant or beneficiary in a manner
inconsistent with this section; or
‘‘(5) subject to subsection (c)(3), restrict benefits for any
portion of a period within a hospital length of stay required
under subsection (a) in a manner which is less favorable than
the benefits provided for any preceding portion of such stay.
‘‘(c) RULES OF CONSTRUCTION.—
‘‘(1) Nothing in this section shall be construed to require
a mother who is a participant or beneficiary—
‘‘(A) to give birth in a hospital; or
‘‘(B) to stay in the hospital for a fixed period of time
following the birth of her child.
‘‘(2) This section shall not apply with respect to any group
health plan which does not provide benefits for hospital lengths
of stay in connection with childbirth for a mother or her new-
born child.
‘‘(3) Nothing in this section shall be construed as preventing
a group health plan from imposing deductibles, coinsurance,
or other cost-sharing in relation to benefits for hospital lengths
of stay in connection with childbirth for a mother or newborn
child under the plan, except that such coinsurance or other
cost-sharing for any portion of a period within a hospital length
of stay required under subsection (a) may not be greater than
such coinsurance or cost-sharing for any preceding portion of
such stay.
‘‘(d) LEVEL AND TYPE OF REIMBURSEMENTS.—Nothing in this
section shall be construed to prevent a group health plan from
negotiating the level and type of reimbursement with a provider
for care provided in accordance with this section.
‘‘(f) PREEMPTION; EXCEPTION FOR HEALTH INSURANCE COVERAGE
IN CERTAIN STATES.—The requirements of this section shall not
apply with respect to health insurance coverage if there is a State
law (including a decision, rule, regulation, or other State action
having the effect of law) for a State that regulates such coverage
that is described in any of the following paragraphs:
‘‘(1) Such State law requires such coverage to provide for
at least a 48-hour hospital length of stay following a normal
vaginal delivery and at least a 96-hour hospital length of stay
following a caesarean section.
‘‘(2) Such State law requires such coverage to provide for
maternity and pediatric care in accordance with guidelines
established by the American College of Obstetricians and Gyne-
cologists, the American Academy of Pediatrics, or other estab-
lished professional medical associations.
‘‘(3) Such State law requires, in connection with such cov-
erage for maternity care, that the hospital length of stay for
such care is left to the decision of (or required to be made
by) the attending provider in consultation with the mother.
H. R. 2014—296
‘‘SEC. 9812. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MEN-
TAL HEALTH BENEFITS.
‘‘(a) IN GENERAL.—
‘‘(1) AGGREGATE LIFETIME LIMITS.—In the case of a group
health plan that provides both medical and surgical benefits
and mental health benefits—
‘‘(A) NO LIFETIME LIMIT.—If the plan does not include
an aggregate lifetime limit on substantially all medical
and surgical benefits, the plan may not impose any aggre-
gate lifetime limit on mental health benefits.
‘‘(B) LIFETIME LIMIT.—If the plan includes an aggregate
lifetime limit on substantially all medical and surgical
benefits (in this paragraph referred to as the ‘applicable
lifetime limit’), the plan shall either—
‘‘(i) apply the applicable lifetime limit both to the
medical and surgical benefits to which it otherwise
would apply and to mental health benefits and not
distinguish in the application of such limit between
such medical and surgical benefits and mental health
benefits; or
‘‘(ii) not include any aggregate lifetime limit on
mental health benefits that is less than the applicable
lifetime limit.
‘‘(C) RULE IN CASE OF DIFFERENT LIMITS.—In the case
of a plan that is not described in subparagraph (A) or
(B) and that includes no or different aggregate lifetime
limits on different categories of medical and surgical bene-
fits, the Secretary shall establish rules under which
subparagraph (B) is applied to such plan with respect
to mental health benefits by substituting for the applicable
lifetime limit an average aggregate lifetime limit that is
computed taking into account the weighted average of the
aggregate lifetime limits applicable to such categories.
‘‘(2) ANNUAL LIMITS.—In the case of a group health plan
that provides both medical and surgical benefits and mental
health benefits—
‘‘(A) NO ANNUAL LIMIT.—If the plan does not include
an annual limit on substantially all medical and surgical
benefits, the plan may not impose any annual limit on
mental health benefits.
‘‘(B) ANNUAL LIMIT.—If the plan includes an annual
limit on substantially all medical and surgical benefits
(in this paragraph referred to as the ‘applicable annual
limit’), the plan shall either—
‘‘(i) apply the applicable annual limit both to medi-
cal and surgical benefits to which it otherwise would
apply and to mental health benefits and not distinguish
in the application of such limit between such medical
and surgical benefits and mental health benefits; or
‘‘(ii) not include any annual limit on mental health
benefits that is less than the applicable annual limit.
‘‘(C) RULE IN CASE OF DIFFERENT LIMITS.—In the case
of a plan that is not described in subparagraph (A) or
(B) and that includes no or different annual limits on
different categories of medical and surgical benefits, the
Secretary shall establish rules under which subparagraph
(B) is applied to such plan with respect to mental health
H. R. 2014—297
benefits by substituting for the applicable annual limit
an average annual limit that is computed taking into
account the weighted average of the annual limits
applicable to such categories.
‘‘(b) CONSTRUCTION.—Nothing in this section shall be con-
strued—
‘‘(1) as requiring a group health plan to provide any mental
health benefits; or
‘‘(2) in the case of a group health plan that provides mental
health benefits, as affecting the terms and conditions (including
cost sharing, limits on numbers of visits or days of coverage,
and requirements relating to medical necessity) relating to
the amount, duration, or scope of mental health benefits under
the plan, except as specifically provided in subsection (a) (in
regard to parity in the imposition of aggregate lifetime limits
and annual limits for mental health benefits).
‘‘(c) EXEMPTIONS.—
‘‘(1) SMALL EMPLOYER EXEMPTION.—This section shall not
apply to any group health plan for any plan year of a small
employer (as defined in section 4980D(d)(2)).
‘‘(2) INCREASED COST EXEMPTION.—This section shall not
apply with respect to a group health plan if the application
of this section to such plan results in an increase in the cost
under the plan of at least 1 percent.
‘‘(d) SEPARATE APPLICATION TO EACH OPTION OFFERED.—In the
case of a group health plan that offers a participant or beneficiary
two or more benefit package options under the plan, the require-
ments of this section shall be applied separately with respect to
each such option.
‘‘(e) DEFINITIONS.—For purposes of this section:
‘‘(1) AGGREGATE LIFETIME LIMIT.—The term ‘aggregate life-
time limit’ means, with respect to benefits under a group health
plan, a dollar limitation on the total amount that may be
paid with respect to such benefits under the plan with respect
to an individual or other coverage unit.
‘‘(2) ANNUAL LIMIT.—The term ‘annual limit’ means, with
respect to benefits under a group health plan, a dollar limitation
on the total amount of benefits that may be paid with respect
to such benefits in a 12-month period under the plan with
respect to an individual or other coverage unit.
‘‘(3) MEDICAL OR SURGICAL BENEFITS.—The term ‘medical
or surgical benefits’ means benefits with respect to medical
or surgical services, as defined under the terms of the plan,
but does not include mental health benefits.
‘‘(4) MENTAL HEALTH BENEFITS.—The term ‘mental health
benefits’ means benefits with respect to mental health services,
as defined under the terms of the plan, but does not include
benefits with respect to treatment of substance abuse or chemi-
cal dependency.
‘‘(f) SUNSET.—This section shall not apply to benefits for services
furnished on or after September 30, 2001.’’.
(b) CONFORMING AMENDMENTS.—
(1) Chapter 100 of such Code is further amended—
(A) in the last sentence of section 9801(c)(1), by striking
‘‘section 9805(c)’’ and inserting ‘‘section 9832(c)’’;
(B) in section 9831(b), by striking ‘‘9805(c)(1)’’ and
inserting ‘‘9832(c)(1)’’;
H. R. 2014—298
(C) in section 9831(c)(1), by striking ‘‘9805(c)(2)’’ and
inserting ‘‘9832(c)(2)’’;
(D) in section 9831(c)(2), by striking ‘‘9805(c)(3)’’ and
inserting ‘‘9832(c)(3)’’; and
(E) in section 9831(c)(3), by striking ‘‘9805(c)(4)’’ and
inserting ‘‘9832(c)(4)’’.
(2) Section 4980D of such Code is amended—
(A) in subsection (a), by striking ‘‘plan portability,
access, and renewability’’ and inserting ‘‘plans’’;
(B) in subsection (c)(3)(B)(i)(I), by striking ‘‘9805(d)(3)’’
and inserting ‘‘9832(d)(3)’’;
(C) in subsection (d)(1), by inserting ‘‘(other than a
failure attributable to section 9811)’’ after ‘‘on any failure’’;
(D) in subsection (d)(3), by striking ‘‘9805’’ and insert-
ing ‘‘9832’’;
(E) in subsection (f)(1), by striking ‘‘9805(a)’’ and insert-
ing ‘‘9832(a)’’.
(3) The table of subtitles for such Code is amended by
striking the item relating to subtitle K and inserting the follow-
ing new item:
‘‘SUBTITLE K. Group health plan requirements.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to group health plans for plan years begin-
ning on or after January 1, 1998.
SEC. 1532. SPECIAL RULES RELATING TO CHURCH PLANS.
(a) IN GENERAL.—Section 9802 (relating to prohibiting discrimi-
nation against individual participants and beneficiaries based on
health status) is amended by adding at the end the following
new subsection:
‘‘(c) SPECIAL RULES FOR CHURCH PLANS.—A church plan (as
defined in section 414(e)) shall not be treated as failing to meet
the requirements of this section solely because such plan requires
evidence of good health for coverage of—
‘‘(1) both any employee of an employer with 10 or less
employees (determined without regard to section 414(e)(3)(C))
and any self-employed individual, or
‘‘(2) any individual who enrolls after the first 90 days
of initial eligibility under the plan.
This subsection shall apply to a plan for any year only if the
plan included the provisions described in the preceding sentence
on July 15, 1997, and at all times thereafter before the beginning
of such year.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect as if included in the amendments made by
section 401(a) of the Health Insurance Portability and Accountabil-
ity Act of 1996.
Subtitle D—Provisions Relating to Plan
Amendments
SEC. 1541. PROVISIONS RELATING TO PLAN AMENDMENTS.
(a) IN GENERAL.—If this section applies to any plan or contract
amendment—
H. R. 2014—299
(1) such plan or contract shall be treated as being operated
in accordance with the terms of the plan during the period
described in subsection (b)(2)(A), and
(2) such plan shall not fail to meet the requirements of
section 411(d)(6) of the Internal Revenue Code of 1986 or section
204(g) of the Employee Retirement Income Security Act of
1974 by reason of such amendment.
(b) AMENDMENTS TO WHICH SECTION APPLIES.—
(1) IN GENERAL.—This section shall apply to any amend-
ment to any plan or annuity contract which is made—
(A) pursuant to any amendment made by this title
or subtitle H of title X, and
(B) before the first day of the first plan year beginning
on or after January 1, 1999.
In the case of a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), this paragraph
shall be applied by substituting ‘‘2001’’ for ‘‘1999’’.
(2) CONDITIONS.—This section shall not apply to any
amendment unless—
(A) during the period—
(i) beginning on the date the legislative amend-
ment described in paragraph (1)(A) takes effect (or
in the case of a plan or contract amendment not
required by such legislative amendment, the effective
date specified by the plan), and
(ii) ending on the date described in paragraph
(1)(B) (or, if earlier, the date the plan or contract
amendment is adopted),
the plan or contract is operated as if such plan or contract
amendment were in effect, and
(B) such plan or contract amendment applies retro-
actively for such period.
TITLE XVI—TECHNICAL AMENDMENTS
RELATED TO SMALL BUSINESS JOB
PROTECTION ACT OF 1996 AND OTHER
LEGISLATION
SEC. 1600. COORDINATION WITH OTHER TITLES.
For purposes of applying the amendments made by any title
of this Act other than this title, the provisions of this title shall
be treated as having been enacted immediately before the provisions
of such other titles.
SEC. 1601. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTEC-
TION ACT OF 1996.
(a) AMENDMENTS RELATED TO SUBTITLE A.—
(1) AMENDMENT RELATED TO SECTION 1116.—Paragraph (1)
of section 6050R(c) is amended by striking ‘‘name and address’’
and inserting ‘‘name, address, and phone number of the
information contact’’.
(2) AMENDMENT
TO
SECTION
1116.—Paragraphs (1) and
(2)(C) of section 1116(b) of the Small Business Job Protection
Act of 1996 shall each be applied as if the reference to chapter
68 were a reference to chapter 61.
H. R. 2014—300
(b) AMENDMENT RELATED TO SUBTITLE B.—Subsection (c) of
section 52 is amended by striking ‘‘targeted jobs credit’’ and insert-
ing ‘‘work opportunity credit’’.
(c) AMENDMENTS RELATED TO SUBTITLE C.—
(1) AMENDMENT RELATED TO SECTION 1302.—Subparagraph
(B) of section 1361(e)(1) is amended by striking ‘‘and’’ at the
end of clause (i), striking the period at the end of clause
(ii) and inserting ‘‘, and’’, and adding at the end the following
new clause:
‘‘(iii) any charitable remainder annuity trust or
charitable remainder unitrust (as defined in section
664(d)).’’.
(2) EFFECTIVE DATE FOR SECTION 1307.—
(A) Notwithstanding section 1317 of the Small Business
Job Protection Act of 1996, the amendments made by sub-
sections (a) and (b) of section 1307 of such Act shall apply
to determinations made after December 31, 1996.
(B) In no event shall the 120-day period referred to
in section 1377(b)(1)(B) of the Internal Revenue Code of
1986 (as added by such section 1307) expire before the
end of the 120-day period beginning on the date of the
enactment of this Act.
(3) AMENDMENT RELATED TO SECTION 1308.—Subparagraph
(A) of section 1361(b)(3) is amended by striking ‘‘For purposes
of this title’’ and inserting ‘‘Except as provided in regulations
prescribed by the Secretary, for purposes of this title’’.
(4) AMENDMENTS RELATED TO SECTION 1316.—
(A) Paragraph (2) of section 512(e) is amended by strik-
ing ‘‘within the meaning of section 1012’’ and inserting
‘‘as defined in section 1361(e)(1)(C)’’.
(B) Paragraph (7) of section 1361(c) is redesignated
as paragraph (6).
(C) Subparagraph (B) of section 1361(b)(1) is amended
by striking ‘‘subsection (c)(7)’’ and inserting ‘‘subsection
(c)(6)’’.
(D) Paragraph (1) of section 512(e) is amended by
striking 
‘‘section 
1361(c)(7)’’ 
and 
inserting 
‘‘section
1361(c)(6)’’.
(d) AMENDMENTS RELATED TO SUBTITLE D.—
(1) AMENDMENTS RELATED TO SECTION 1421.—
(A) Subsection (i) of section 408 is amended in the
last sentence by striking ‘‘30 days’’ and inserting ‘‘31 days’’.
(B) Subparagraph (H) of section 408(k)(6) is amended
by striking ‘‘if the terms of such pension’’ and inserting
‘‘of an employer if the terms of simplified employee pensions
of such employer’’.
(C)(i) Subparagraph (B) of section 408(l)(2) is amend-
ed—
(I) by inserting ‘‘and the issuer of an annuity estab-
lished under such an arrangement’’ after ‘‘under sub-
section (p)’’, and
(II) in clause (i), by inserting ‘‘or issuer’’ after
‘‘trustee’’.
(ii) Paragraph (2) of section 6693(c) is amended—
(I) by inserting ‘‘or issuer’’ after ‘‘trustee’’, and
(II) in the heading, by inserting ‘‘AND ISSUER’’ after
‘‘trustee’’.
H. R. 2014—301
(D) Subsection (p) of section 408 is amended by adding
at the end the following new paragraph:
‘‘(8) COORDINATION WITH MAXIMUM LIMITATION UNDER SUB-
SECTION (a).—In the case of any simple retirement account,
subsections (a)(1) and (b)(2) shall be applied by substituting
‘the sum of the dollar amount in effect under paragraph
(2)(A)(ii) of this subsection and the employer contribution
required under subparagraph (A)(iii) or (B)(i) of paragraph (2)
of this subsection, whichever is applicable’ for ‘$2,000’.’’.
(E) Clause (i) of section 408(p)(2)(D) is amended by
adding at the end the following new sentence: ‘‘If only
individuals other than employees described in subpara-
graph (A) or (B) of section 410(b)(3) are eligible to partici-
pate in such arrangement, then the preceding sentence
shall be applied without regard to any qualified plan in
which only employees so described are eligible to partici-
pate.’’.
(F) Subparagraph (D) of section 408(p)(2) is amended
by adding at the end the following new clause:
‘‘(iii) GRACE PERIOD.—In the case of an employer
who establishes and maintains a plan under this sub-
section for 1 or more years and who fails to meet
any requirement of this subsection for any subsequent
year due to any acquisition, disposition, or similar
transaction involving another such employer, rules
similar to the rules of section 410(b)(6)(C) shall apply
for purposes of this subsection.’’.
(G) Paragraph (5) of section 408(p) is amended in the
text preceding subparagraph (A) by striking ‘‘simplified’’
and inserting ‘‘simple’’.
(2) AMENDMENTS RELATED TO SECTION 1422.—
(A) Clause (ii) of section 401(k)(11)(D) is amended by
striking the period and inserting ‘‘if such plan allows only
contributions required under this paragraph.’’.
(B) Paragraph (11) of section 401(k) is amended by
adding at the end the following new subparagraph:
‘‘(E) COST-OF-LIVING ADJUSTMENT.—The Secretary shall
adjust the $6,000 amount under subparagraph (B)(i)(I) at
the same time and in the same manner as under section
408(p)(2)(E).’’.
(C) Subparagraph (A) of section 404(a)(3) is amended—
(i) in clause (i), by striking ‘‘not in excess of’’ and
all that follows and inserting the following: ‘‘not in
excess of the greater of—
‘‘(I) 15 percent of the compensation otherwise
paid or accrued during the taxable year to the
beneficiaries under the stock bonus or profit-shar-
ing plan, or
‘‘(II) the amount such employer is required
to contribute to such trust under section 401(k)(11)
for such year.’’, and
(ii) in clause (ii), by striking ‘‘15 percent’’ and
all that follows and inserting the following ‘‘the amount
described in subclause (I) or (II) of clause (i), whichever
is greater, with respect to such taxable year.’’.
(D) Subparagraph (B) of section 401(k)(11) is amended
by adding at the end the following new clause:
H. R. 2014—302
‘‘(iii) ADMINISTRATIVE REQUIREMENTS.—
‘‘(I) IN GENERAL.—Rules similar to the rules
of subparagraphs (B) and (C) of section 408(p)(5)
shall apply for purposes of this subparagraph.
‘‘(II) 
NOTICE
OF
ELECTION
PERIOD.—The
requirements of this subparagraph shall not be
treated as met with respect to any year unless
the employer notifies each employee eligible to
participate, within a reasonable period of time
before the 60th day before the beginning of such
year (and, for the first year the employee is so
eligible, the 60th day before the first day such
employee is so eligible), of the rules similar to
the rules of section 408(p)(5)(C) which apply by
reason of subclause (I).’’.
(3) AMENDMENT RELATED TO SECTION 1433.—The heading
of paragraph (11) of section 401(m) is amended by striking
‘‘ALTERNATIVE’’ and inserting ‘‘ADDITIONAL ALTERNATIVE’’.
(4) CLARIFICATION OF SECTION 1450.—
(A) Section 403(b)(11) of the Internal Revenue Code
of 1986 shall not apply with respect to a distribution from
a contract described in section 1450(b)(1) of such Act to
the extent that such distribution is not includible in income
by reason of—
(i) in the case of distributions before January 1,
1998, section 403 (b)(8) or (b)(10) of such Code (deter-
mined after the application of section 1450(b)(2) of
such Act), and
(ii) in the case of distributions on and after such
date, such section 403(b)(1).
(B) This paragraph shall apply as if included in section
1450 of the Small Business Job Protection Act of 1996.
(5) AMENDMENT RELATED TO SECTION 1451.—Clause (ii) of
section 205(c)(8)(A) of the Employee Retirement Income Secu-
rity Act of 1974 is amended by striking ‘‘Secretary’’ and insert-
ing ‘‘Secretary of the Treasury’’.
(6) AMENDMENTS RELATED TO SECTION 1461.—
(A) Section 414(e)(5)(A) is amended to read as follows:
‘‘(A) CERTAIN MINISTERS MAY PARTICIPATE.—For pur-
poses of this part—
‘‘(i) IN GENERAL.—A duly ordained, commissioned,
or licensed minister of a church is described in para-
graph (3)(B) if, in connection with the exercise of their
ministry, the minister—
‘‘(I) is a self-employed individual (within the
meaning of section 401(c)(1)(B), or
‘‘(II) is employed by an organization other than
an organization which is described in section
501(c)(3) and with respect to which the minister
shares common religious bonds.
‘‘(ii) TREATMENT AS EMPLOYER AND EMPLOYEE.—
For purposes of sections 403(b)(1)(A) and 404(a)(10),
a minister described in clause (i)(I) shall be treated
as employed by the minister’s own employer which
is an organization described in section 501(c)(3) and
exempt from tax under section 501(a).’’.
H. R. 2014—303
(B) Section 403(b)(1)(A) is amended by striking ‘‘or’’
at the end of clause (i), by inserting ‘‘or’’ at the end of
clause (ii), and by adding at the end the following new
clause:
‘‘(iii) 
for 
the 
minister 
described 
in 
section
414(e)(5)(A) by the minister or by an employer,’’.
(7) AMENDMENT RELATED TO SECTION 1462.—The paragraph
(7) of section 414(q) added by section 1462 of the Small Business
Job Protection Act of 1996 is redesignated as paragraph (9).
(e) AMENDMENT RELATED TO SUBTITLE E.—Subparagraph (A)
of section 956(b)(1) is amended by inserting ‘‘to the extent such
amount was accumulated in prior taxable years’’ after ‘‘section
316(a)(1)’’.
(f) AMENDMENTS RELATED TO SUBTITLE F.—
(1) AMENDMENTS RELATED TO SECTION 1601.—
(A) The heading of section 30A is amended to read
as follows:
‘‘SEC. 30A. PUERTO RICO ECONOMIC ACTIVITY CREDIT.’’.
(B) The table of sections for subpart B of part IV
of subchapter A of chapter 1 is amended in the item relating
to section 30A by striking ‘‘Puerto Rican’’ and inserting
‘‘Puerto Rico’’.
(C) Paragraph (1) of section 55(c) is amended by strik-
ing ‘‘Puerto Rican’’ and inserting ‘‘Puerto Rico’’.
(2) AMENDMENTS RELATED TO SECTION 1606.—
(A) Clause (ii) of section 9503(c)(2)(A) is amended by
striking ‘‘(or with respect to qualified diesel-powered high-
way vehicles purchased before January 1, 1999)’’.
(B) Subparagraph (A) of section 9503(e)(5) is amended
by striking ‘‘; except that’’ and all that follows and inserting
a period.
(3) AMENDMENTS RELATED TO SECTION 1607.—
(A) Subsection (f) of section 4001 (relating to
phasedown of tax on luxury passenger automobiles) is
amended—
(i) by inserting ‘‘and section 4003(a)’’ after ‘‘sub-
section (a)’’, and
(ii) by inserting ‘‘, each place it appears,’’ before
‘‘the percentage’’.
(B) Subsection (g) of section 4001 (relating to termi-
nation) is amended by striking ‘‘tax imposed by this section’’
and inserting ‘‘taxes imposed by this section and section
4003’’ and by striking ‘‘or use’’ and inserting ‘‘, use, or
installation’’.
(C) The amendments made by this paragraph shall
apply to sales after the date of the enactment of this
Act.
(4) AMENDMENTS RELATED TO SECTION 1609.—
(A) Subsection (l) of section 4041 is amended—
(i) by inserting ‘‘or a fixed-wing aircraft’’ after ‘‘heli-
copter’’, and
(ii) in the heading, by striking ‘‘HELICOPTER’’.
(B) The last sentence of section 4041(a)(2) is amended
by striking ‘‘section 4081(a)(2)(A)’’ and inserting ‘‘section
4081(a)(2)(A)(i)’’.
H. R. 2014—304
(C) Subsection (b) of section 4092 is amended by strik-
ing ‘‘section 4041(c)(4)’’ and inserting ‘‘section 4041(c)(2)’’.
(D) Subsection (g) of section 4261 (as redesignated
by title X) is amended by inserting ‘‘on that flight’’ after
‘‘dedicated’’.
(E) Paragraph (1) of section 1609(h) of such Act is
amended by striking ‘‘paragraph (3)(A)(i)’’ and inserting
‘‘paragraph (3)(A)’’.
(F) Paragraph (4) of section 1609(h) of such Act is
amended by inserting before the period ‘‘or exclusively for
the use described in section 4092(b) of such Code’’.
(5) AMENDMENTS RELATED TO SECTION 1616.—
(A) Subparagraph (A) of section 593(e)(1) is amended
by inserting ‘‘(and, in the case of an S corporation, the
accumulated adjustments account, as defined in section
1368(e)(1))’’ after ‘‘1951,’’.
(B) Paragraph (7) of section 1374(d) is amended by
adding at the end the following new sentence: ‘‘For purposes
of applying this section to any amount includible in income
by reason of section 593(e), the preceding sentence shall
be applied without regard to the phrase ‘10-year’.’’.
(6) AMENDMENTS RELATED TO SECTION 1621.—
(A) Subparagraph (A) of section 860L(b)(1) is amended
in the text preceding clause (i) by striking ‘‘after the startup
date’’ and inserting ‘‘on or after the startup date’’.
(B) Paragraph (2) of section 860L(d) is amended by
striking 
‘‘section 
860I(c)(2)’’ 
and 
inserting 
‘‘section
860I(b)(2)’’.
(C) Subparagraph (B) of section 860L(e)(2) is amended
by inserting ‘‘other than foreclosure property’’ after ‘‘any
permitted asset’’.
(D) Subparagraph (A) of section 860L(e)(3) is amended
by striking ‘‘if the FASIT’’ and all that follows and inserting
the following new flush text after clause (ii):
‘‘if the FASIT were treated as a REMIC and permitted
assets (other than cash or cash equivalents) were treated
as qualified mortgages.’’.
(E)(i) Paragraph (3) of section 860L(e) is amended by
adding at the end the following new subparagraph:
‘‘(D) INCOME
FROM
DISPOSITIONS
OF
FORMER
HEDGE
ASSETS.—Paragraph (2)(A) shall not apply to income
derived from the disposition of—
‘‘(i) an asset which was described in subsection
(c)(1)(D) when first acquired by the FASIT but on
the date of such disposition was no longer described
in subsection (c)(1)(D)(ii), or
‘‘(ii) a contract right to acquire an asset described
in clause (i).’’.
(ii) Subparagraph (A) of section 860L(e)(2) is amended
by inserting ‘‘except as provided in paragraph (3),’’ before
‘‘the receipt’’.
(g) AMENDMENTS RELATED TO SUBTITLE G.—
(1) EXTENSION OF PERIOD FOR CLAIMING REFUNDS FOR ALCO-
HOL
FUELS.—Notwithstanding section 6427(i)(3)(C) of the
Internal Revenue Code of 1986, a claim filed under section
6427(f) of such Code for any period after September 30, 1995,
and before October 1, 1996, shall be treated as timely filed
H. R. 2014—305
if filed before the 60th day after the date of the enactment
of this Act.
(2) AMENDMENTS
TO SECTIONS
1703
AND
1704.—Sections
1703(n)(8) and 1704(j)(4)(B) of the Small Business Job Protec-
tion Act of 1996 shall each be applied as if such sections
referred to section 1702 instead of section 1602.
(h) AMENDMENTS RELATED TO SUBTITLE H.—
(1) AMENDMENTS RELATED TO SECTION 1806.—
(A) Subparagraph (B) of section 529(e)(1) is amended
by striking ‘‘subsection (c)(2)(C)’’ and inserting ‘‘subsection
(c)(3)(C)’’.
(B) Subparagraph (C) of section 529(e)(1) is amended
by inserting ‘‘(or agency or instrumentality thereof)’’ after
‘‘local government’’.
(C) Paragraph (2) of section 1806(c) of the Small Busi-
ness Job Protection Act of 1996 is amended by striking
so much of the first sentence as follows subparagraph (B)(ii)
and inserting the following:
‘‘then such program (as in effect on August 20, 1996) shall
be treated as a qualified State tuition program with respect
to contributions (and earnings allocable thereto) pursuant to
contracts entered into under such program before the first
date on which such program meets such requirements (deter-
mined without regard to this paragraph) and the provisions
of such program (as so in effect) shall apply in lieu of section
529(b) of the Internal Revenue Code of 1986 with respect to
such contributions and earnings.’’.
(2) AMENDMENTS RELATED TO SECTION 1807.—
(A) Paragraph (2) of section 23(a) is amended to read
as follows:
‘‘(2) YEAR CREDIT ALLOWED.—The credit under paragraph
(1) with respect to any expense shall be allowed—
‘‘(A) in the case of any expense paid or incurred before
the taxable year in which such adoption becomes final,
for the taxable year following the taxable year during which
such expense is paid or incurred, and
‘‘(B) in the case of an expense paid or incurred during
or after the taxable year in which such adoption becomes
final, for the taxable year in which such expense is paid
or incurred.’’.
(B) Subparagraph (B) of section 23(b)(2) is amended
by striking ‘‘determined—’’ and all that follows and insert-
ing the following: ‘‘determined without regard to sections
911, 931, and 933.’’.
(C) Paragraph (1) of section 137(b) (relating to adoption
assistance programs) is amended by striking ‘‘amount
excludable from gross income’’ and inserting ‘‘of the
amounts paid or expenses incurred which may be taken
into account’’.
(D)(i) Subparagraph (C) of section 414(n)(3) is amended
by inserting ‘‘137,’’ after ‘‘132,’’.
(ii) Paragraph (2) of section 414(t) is amended by
inserting ‘‘137,’’ after ‘‘132,’’.
(iii) Paragraph (1) of section 6039D(d) is amended by
striking ‘‘or 129’’ and inserting ‘‘129, or 137’’.
(i) AMENDMENTS RELATED TO SUBTITLE I.—
H. R. 2014—306
(1) AMENDMENT RELATED TO SECTION 1901.—Subsection (b)
of section 6048 is amended in the heading by striking
‘‘GRANTOR’’ and inserting ‘‘OWNER’’.
(2) AMENDMENTS RELATED TO SECTION 1903.—
Clauses (ii) and (iii) of section 679(a)(3)(C) are each
amended by inserting ‘‘, owner,’’ after ‘‘grantor’’.
(3) AMENDMENTS RELATED TO SECTION 1907.—
(A) Clause (ii) of section 7701(a)(30)(E) is amended
by striking ‘‘fiduciaries’’ and inserting ‘‘persons’’.
(B) Subsection (b) of section 641 is amended by adding
at the end the following new sentence: ‘‘For purposes of
this subsection, a foreign trust or foreign estate shall be
treated as a nonresident alien individual who is not present
in the United States at any time.’’.
(4) EFFECTIVE DATE RELATED TO SUBTITLE I.—The Secretary
of the Treasury may by regulations or other administrative
guidance provide that the amendments made by section 1907(a)
of the Small Business Job Protection Act of 1996 shall not
apply to a trust with respect to a reasonable period beginning
on the date of the enactment of such Act, if—
(A) such trust is in existence on August 20, 1996,
and is a United States person for purposes of the Internal
Revenue Code of 1986 on such date (determined without
regard to such amendments),
(B) no election is in effect under section 1907(a)(3)(B)
of such Act with respect to such trust,
(C) before the expiration of such reasonable period,
such trust makes the modifications necessary to be treated
as a United States person for purposes of such Code (deter-
mined with regard to such amendments), and
(D) such trust meets such other conditions as the Sec-
retary may require.
(j) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall take effect as if included
in the provisions of the Small Business Job Protection Act
of 1996 to which they relate.
(2) CERTAIN ADMINISTRATIVE REQUIREMENTS WITH RESPECT
TO CERTAIN PENSION PLANS.—The amendment made by sub-
section (d)(2)(D) shall apply to calendar years beginning after
the date of the enactment of this Act.
SEC. 1602. AMENDMENTS RELATED TO HEALTH INSURANCE PORT-
ABILITY AND ACCOUNTABILITY ACT OF 1996.
(a) AMENDMENTS RELATED TO SECTION 301.—
(1) Paragraph (2) of section 26(b) is amended by striking
‘‘and’’ at the end of subparagraph (N), by striking the period
at the end of subparagraph (O) and inserting ‘‘, and’’, and
by adding at the end the following new subparagraph:
‘‘(P) section 220(f)(4) (relating to additional tax on
medical savings account distributions not used for qualified
medical expenses).’’.
(2) Paragraph (3) of section 220(c) is amended by striking
subparagraph (A) and redesignating subparagraphs (B) through
(D) as subparagraphs (A) through (C), respectively.
H. R. 2014—307
(3) Subparagraph (C) of section 220(d)(2) is amended by
striking ‘‘an eligible individual’’ and inserting ‘‘described in
clauses (i) and (ii) of subsection (c)(1)(A)’’.
(4) Subsection (a) of section 6693 is amended by adding
at the end the following new sentence:
‘‘This subsection shall not apply to any report which is an informa-
tion return described in section 6724(d)(1)(C)(i) or a payee statement
described in section 6724(d)(2)(X).’’.
(5) Paragraph (4) of section 4975(c) is amended by striking
‘‘if, with respect to such transaction’’ and all that follows and
inserting the following: ‘‘if section 220(e)(2) applies to such
transaction.’’.
(b) AMENDMENT RELATED TO SECTION 321.—Subparagraph (B)
of section 7702B(c)(2) is amended in the last sentence by inserting
‘‘described in subparagraph (A)(i)’’ after ‘‘chronically ill individual’’.
(c) AMENDMENTS RELATED TO SECTION 322.—Subparagraph (B)
of section 162(l)(2) is amended by adding at the end the following
new sentence: ‘‘The preceding sentence shall be applied separately
with respect to—
‘‘(i) plans which include coverage for qualified long-
term care services (as defined in section 7702B(c)) or
are qualified long-term care insurance contracts (as
defined in section 7702B(b)), and
‘‘(ii) plans which do not include such coverage and
are not such contracts.’’.
(d) AMENDMENTS RELATED TO SECTION 323.—
(1) Paragraph (1) of section 6050Q(b) is amended by insert-
ing ‘‘, address, and phone number of the information contact’’
after ‘‘name’’.
(2)(A) Paragraph (2) of section 6724(d) is amended by strik-
ing so much as follows subparagraph (Q) and precedes the
last sentence, and inserting the following new subparagraphs:
‘‘(R) section 6050R(c) (relating to returns relating to
certain purchases of fish),
‘‘(S) section 6051 (relating to receipts for employees),
‘‘(T) section 6052(b) (relating to returns regarding pay-
ment of wages in the form of group-term life insurance),
‘‘(U) section 6053(b) or (c) (relating to reports of tips),
‘‘(V) section 6048(b)(1)(B) (relating to foreign trust
reporting requirements),
‘‘(W) section 4093(c)(4)(B) (relating to certain pur-
chasers of diesel and aviation fuels),
‘‘(X) section 408(i) (relating to reports with respect
to individual retirement plans) to any person other than
the Secretary with respect to the amount of payments
made to such person, or
‘‘(Y) section 6047(d) (relating to reports by plan
administrators) to any person other than the Secretary
with respect to the amount of payments made to such
person.’’.
(B) Subsection (e) of section 6652 is amended in the last
sentence by striking ‘‘section 6724(d)(2)(X)’’ and inserting ‘‘sec-
tion 6724(d)(2)(Y)’’.
(e) AMENDMENT RELATED TO SECTION 325.—Clauses (ii) and
(iii) of section 7702B(g)(4)(B) are each amended by striking ‘‘Sec-
retary’’ and inserting ‘‘appropriate State regulatory agency’’.
(f) AMENDMENTS RELATED TO SECTION 501.—
H. R. 2014—308
(1) Paragraph (4) of section 264(a) is amended by striking
subparagraph (A) and all that follows through ‘‘by the tax-
payer.’’ and inserting the following:
‘‘(A) is or was an officer or employee, or
‘‘(B) is or was financially interested in,
any trade or business carried on (currently or formerly) by
the taxpayer.’’.
(2) The last 2 sentences of section 264(d)(2)(B)(ii) are
amended to read as follows:
‘‘For purposes of subclause (II), the term ‘applicable
period’ means the 12-month period beginning on the
date the policy is issued (and each successive 12-month
period thereafter) unless the taxpayer elects a number
of months (not greater than 12) other than such 12-
month period to be its applicable period. Such an elec-
tion shall be made not later than the 90th day after
the date of the enactment of this sentence and, if
made, shall apply to the taxpayer’s first taxable year
ending on or after October 13, 1995, and all subsequent
taxable years unless revoked with the consent of the
Secretary.’’.
(3) Subparagraph (B) of section 264(d)(4) is amended by
striking ‘‘the employer’’ and inserting ‘‘the taxpayer’’.
(4) Subsection (c) of section 501 of the Health Insurance
Portability and Accountability Act of 1996 is amended by strik-
ing paragraph (3).
(5) Paragraph (2) of section 501(d) of such Act is amended
by striking ‘‘no additional premiums’’ and all that follows and
inserting the following: ‘‘a lapse occurring after October 13,
1995, by reason of no additional premiums being received under
the contract.’’.
(g) AMENDMENTS RELATED TO SECTION 511.—
(1) Subparagraph (B) of section 877(d)(2) is amended by
striking ‘‘the 10-year period described in subsection (a)’’ and
inserting ‘‘the 10-year period beginning on the date the individ-
ual loses United States citizenship’’.
(2) Subparagraph (D) of section 877(d)(2) is amended by
adding at the end the following new sentence: ‘‘In the case
of any exchange occurring during such 5 years, any gain recog-
nized under this subparagraph shall be recognized immediately
after such loss of citizenship.’’.
(3) Paragraph (3) of section 877(d) is amended by inserting
‘‘and the period applicable under paragraph (2)’’ after ‘‘sub-
section (a)’’.
(4) Subparagraph (A) of section 877(d)(4) is amended—
(A) by inserting ‘‘during the 10-year period beginning
on the date the individual loses United States citizenship’’
after ‘‘contributes property’’ in clause (i),
(B) by inserting ‘‘immediately before such contribution’’
after ‘‘from such property’’, and
(C) by striking ‘‘during the 10-year period referred
to in subsection (a),’’.
(5) Subparagraph (C) of section 2501(a)(3) is amended by
striking ‘‘decedent’’ and inserting ‘‘donor’’.
(6)(A) Clause (i) of section 2107(c)(2)(B) is amended by
striking ‘‘such foreign country in respect of property included
in the gross estate as the value of the property’’ and inserting
H. R. 2014—309
‘‘such foreign country as the value of the property subjected
to such taxes by such foreign country and’’.
(B) Subparagraph (C) of section 2107(c)(2) is amended to
read as follows:
‘‘(C) PROPORTIONATE SHARE.—In the case of property
which is included in the gross estate solely by reason
of subsection (b), such property’s proportionate share is
the percentage which the value of such property bears
to the total value of all property included in the gross
estate solely by reason of subsection (b).’’.
(h) AMENDMENTS RELATED TO SECTION 512.—
(1) Subpart A of part III of subchapter A of chapter 61
is amended by redesignating the section 6039F added by section
512 of the Health Insurance Portability and Accountability
Act of 1996 as section 6039G and by moving such section
6039G to immediately after the section 6039F added by section
1905 of the Small Business Job Protection Act of 1996.
(2) The table of sections for subpart A of part III of sub-
chapter A of chapter 61 is amended by striking the item relating
to the section 6039F related to information on individuals losing
United States citizenship and inserting after the item relating
to the section 6039F related to notice of large gifts received
from foreign persons the following new item:
‘‘Sec. 6039G. Information on individuals losing United States citizenship.’’.
(3) Paragraph (1) of section 877(e) is amended by striking
‘‘6039F’’ and inserting ‘‘6039G’’.
(i) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Health
Insurance Portability and Accountability Act of 1996 to which such
amendments relate.
SEC. 1603. AMENDMENTS RELATED TO TAXPAYER BILL OF RIGHTS
2.
(a) AMENDMENT RELATED
TO SECTION 1311.—Subsection (b)
of section 4962 is amended by striking ‘‘subchapter A or C’’ and
inserting ‘‘subchapter A, C, or D’’.
(b) AMENDMENTS RELATED TO SECTION 1312.—
(1)(A) Paragraph (10) of section 6033(b) is amended by
striking all that precedes subparagraph (A) and inserting the
following:
‘‘(10) the respective amounts (if any) of the taxes imposed
on the organization, or any organization manager of the
organization, during the taxable year under any of the following
provisions (and the respective amounts (if any) of reimburse-
ments paid by the organization during the taxable year with
respect to taxes imposed on any such organization manager
under any of such provisions):’’.
(B) Subparagraph (C) of section 6033(b)(10) is amended
by adding at the end the following: ‘‘except to the extent that,
by reason of section 4962, the taxes imposed under such section
are not required to be paid or are credited or refunded,’’.
(2) Paragraph (11) of section 6033(b) is amended to read
as follows:
‘‘(11) the respective amounts (if any) of—
‘‘(A) the taxes imposed with respect to the organization
on any organization manager, or any disqualified person,
during the taxable year under section 4958 (relating to
H. R. 2014—310
taxes on private excess benefit from certain charitable
organizations), and
‘‘(B) reimbursements paid by the organization during
the taxable year with respect to taxes imposed under such
section,
except to the extent that, by reason of section 4962, the taxes
imposed under such section are not required to be paid or
are credited or refunded,’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Taxpayer
Bill of Rights 2 to which such amendments relate.
SEC. 1604. MISCELLANEOUS PROVISIONS.
(a) AMENDMENTS RELATED TO ENERGY POLICY ACT OF 1992.—
(1) Paragraph (1) of section 263(a) is amended by striking
‘‘or’’ at the end of subparagraph (F), by striking the period
at the end of subparagraph (G) and inserting ‘‘; or’’, and by
adding at the end the following new subparagraph:
‘‘(H) expenditures for which a deduction is allowed
under section 179A.’’.
(2) Subparagraph (B) of section 312(k)(3) is amended—
(A) by striking ‘‘179’’ in the heading and the first
place it appears in the text and inserting ‘‘179 or 179A’’,
and
(B) by striking ‘‘179’’ the last place it appears and
inserting ‘‘179 or 179A, as the case may be’’.
(3) Paragraphs (2)(C) and (3)(C) of section 1245(a) are
each amended by inserting ‘‘179A,’’ after ‘‘179,’’.
(4) The amendments made by this subsection shall take
effect as if included in the amendments made by section 1913
of the Energy Policy Act of 1992.
(b) AMENDMENTS RELATED TO URUGUAY ROUND AGREEMENTS
ACT.—
(1) Paragraph (1) of section 6621(a) is amended in the
last sentence by striking ‘‘subsection (c)(3))’’ and inserting ‘‘sub-
section (c)(3), applied by substituting ‘overpayment’ for ‘under-
payment’)’’.
(2)(A) Subclause (II) of section 412(m)(5)(E)(ii) is amended
by striking ‘‘clause (i)’’ and inserting ‘‘subclause (I)’’.
(B) Subclause (II) of section 302(e)(5)(E)(ii) of the Employee
Retirement Income Security Act of 1974 is amended by striking
‘‘clause (i)’’ and inserting ‘‘subclause (I)’’.
(3) Subparagraph (A) of section 767(d)(3) of the Uruguay
Round Agreements Act is amended in the last sentence by
striking ‘‘(except that’’ and all that follows through ‘‘into
account)’’.
(4) The amendments made by this subsection shall take
effect as if included in the sections of the Uruguay Round
Agreements Act to which they relate.
(c) AMENDMENT RELATED TO OMNIBUS BUDGET RECONCILIATION
ACT OF 1993.—
(1) Paragraph (6) of section 168(j) (defining Indian reserva-
tion) is amended by adding at the end the following new flush
sentence:
‘‘For purposes of the preceding sentence, such section 3(d) shall
be applied by treating the term ‘former Indian reservations
in Oklahoma’ as including only lands which are within the
H. R. 2014—311
jurisdictional area of an Oklahoma Indian tribe (as determined
by the Secretary of the Interior) and are recognized by such
Secretary as eligible for trust land status under 25 CFR Part
151 (as in effect on the date of the enactment of this sentence).’’.
(2) The amendment made by paragraph (1) shall apply
as if included in the amendments made by section 13321 of
the Omnibus Budget Reconciliation Act of 1993, except that
such amendment shall not apply—
(A) with respect to property (with an applicable recov-
ery period under section 168(j) of the Internal Revenue
Code of 1986 of 6 years or less) held by the taxpayer
if the taxpayer claimed the benefits of section 168(j) of
such Code with respect to such property on a return filed
before March 18, 1997, but only if such return is the
first return of tax filed for the taxable year in which such
property was placed in service, or
(B) with respect to wages for which the taxpayer
claimed the benefits of section 45A of such Code for a
taxable year on a return filed before March 18, 1997,
but only if such return was the first return of tax filed
for such taxable year.
(d) AMENDMENTS RELATED TO TAX REFORM ACT OF 1986.—
(1) Paragraph (3) of section 1059(d) is amended by striking
‘‘subsection (a)(2)’’ and inserting ‘‘subsection (a)’’.
(2)(A) Subparagraph (A) of section 833(b)(1) is amended—
(i) by inserting before the comma at the end of clause
(i) ‘‘and liabilities incurred during the taxable year under
cost-plus contracts’’, and
(ii) by inserting before the comma at the end of clause
(ii) ‘‘or in connection with the administration of cost-plus
contracts’’.
(B) The amendment made by subparagraph (A) shall take
effect as if included in the amendments made by section 1012
of the Tax Reform Act of 1986.
(e) AMENDMENT RELATED TO TAX REFORM ACT OF 1984.—
(1) Section 267(f) is amended by adding at the end the
following new paragraph:
‘‘(4) DETERMINATION OF RELATIONSHIP RESULTING IN DIS-
ALLOWANCE OF LOSS, FOR PURPOSES OF OTHER PROVISIONS.—
For purposes of any other section of this title which refers
to a relationship which would result in a disallowance of losses
under this section, deferral under paragraph (2) shall be treated
as disallowance.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall take effect as if included in section 174(b) of the
Tax Reform Act of 1984.
(f) AMENDMENTS RELATED TO BALANCED BUDGET ACT OF 1997.—
(1) The Balanced Budget Act of 1997 is amended—
(A) in the table of contents for title IV, in the item
relating to section 4921, by striking ‘‘children with’’;
(B) in the heading for section 4921, by striking ‘‘CHIL-
DREN WITH’’; and
(C) in the section added by section 4921—
(i) in the heading for such section, by striking
‘‘CHILDREN WITH’’; and
(ii) by amending subsection (a) to read as follows:
H. R. 2014—312
‘‘(a) IN GENERAL.—The Secretary, directly or through grants,
shall provide for research into the prevention and cure of Type
I diabetes.’’.
(2)(A) Section 11201(g)(2)(B)(iii) of the Balanced Budget
Act of 1997 shall apply as if the reference in such section
to ‘‘December 31, 2003’’ were a reference to ‘‘December 31,
2001’’.
(B) Notwithstanding section 11104(b)(3) of the Balanced
Budget Act of 1997, in carrying out any of the management
reform plans under such section, the head of a department
of the government of the District of Columbia shall report
solely to the District of Columbia Financial Responsibility and
Management Assistance Authority.
(3) Section 9302 of the Balanced Budget Act of 1997 is
amended by adding at the end the following new subsection:
‘‘(k) COORDINATION
WITH
TOBACCO
INDUSTRY
SETTLEMENT
AGREEMENT.—The increase in excise taxes collected as a result
of the amendments made by subsections (a), (e), and (g) of this
section shall be credited against the total payments made by parties
pursuant to Federal legislation implementing the tobacco industry
settlement agreement of June 20, 1997.
(4) The provisions of, and amendments made by, this subsection
shall take effect immediately after the sections referred to in this
subsection take effect.
(g) CLERICAL AMENDMENTS.—
(1) Clause (iii) of section 163(j)(2)(B) is amended by striking
‘‘clause (i)’’ and inserting ‘‘clause (ii)’’.
(2) Paragraph (1) of section 665(d) is amended in the last
sentence by striking ‘‘or 669(d) and (e)’’.
(3) Subsection (g) of section 1441 (relating to cross ref-
erence) is amended by striking ‘‘one-half’’ and inserting ‘‘85
percent’’.
(4) Paragraph (1) of section 2523(g) is amended by striking
‘‘qualified remainder trust’’ and inserting ‘‘qualified charitable
remainder trust’’.
(5) Subsection (d) of section 9502 is amended by redesignat-
ing the paragraph added by section 806 of the Federal Aviation
Reauthorization Act of 1996 as paragraph (6).
TITLE XVII—IDENTIFICATION OF LIM-
ITED TAX BENEFITS SUBJECT TO
LINE ITEM VETO
SEC. 1701. IDENTIFICATION OF LIMITED TAX BENEFITS SUBJECT TO
LINE ITEM VETO.
Section 1021(a)(3) of the Congressional Budget and Impound-
ment Control Act of 1974 shall only apply to—
(1) section 101(c) (relating to high risk pools permitted
to cover dependents of high risk individuals);
(2) section 222 (relating to limitation on qualified 501(c)(3)
bonds other than hospital bonds);
(3) section 224 (relating to contributions of computer tech-
nology and equipment for elementary or secondary school pur-
poses);
H. R. 2014—313
(4) section 312(a) (relating to treatment of remainder
interests for purposes of provision relating to gain on sale
of principal residence);
(5) section 501(b) (relating to indexing of alternative valu-
ation of certain farm, etc., real property);
(6) section 504 (relating to extension of treatment of certain
rents under section 2032A to lineal descendants);
(7) section 505 (relating to clarification of judicial review
of eligibility for extension of time for payment of estate tax);
(8) section 508 (relating to treatment of land subject to
qualified conservation easement);
(9) section 511 (relating to expansion of exception from
generation-skipping transfer tax for transfers to individuals
with deceased parents);
(10) section 601 (relating to the research tax credit);
(11) section 602 (relating to contributions of stock to private
foundations);
(12) section 603 (relating to the work opportunity tax
credit);
(13) section 604 (relating to orphan drug tax credit);
(14) section 701 (relating to incentives for revitalization
of the District of Columbia) to the extent it amends the Internal
Revenue Code of 1986 to create sections 1400 and 1400A (relat-
ing to tax-exempt economic development bonds);
(15) section 701 (relating to incentives for revitalization
of the District of Columbia) to the extent it amends the Internal
Revenue Code of 1986 to create section 1400C (relating to
first-time homebuyer credit for District of Columbia);
(16) section 801 (relating to incentives for employing long-
term family assistance recipients);
(17) section 904(b) (relating to uniform rate of tax on vac-
cines) as it relates to any vaccine containing pertussis bacteria,
extracted or partial cell bacteria, or specific pertussis antigens;
(18) section 904(b) (relating to uniform rate of tax on vac-
cines) as it relates to any vaccine against measles;
(19) section 904(b) (relating to uniform rate of tax on vac-
cines) as it relates to any vaccine against mumps;
(20) section 904(b) (relating to uniform rate of tax on vac-
cines) as it relates to any vaccine against rubella;
(21) section 905 (relating to operators of multiple retail
gasoline outlets treated as wholesale distributors for refund
purposes);
(22) section 906 (relating to exemption of electric and other
clean-fuel motor vehicles from luxury automobile classification);
(23) section 907(a) (relating to rate of tax on liquefied
natural gas determined on basis of BTU equivalency with gaso-
line);
(24) section 907(b) (relating to rate of tax on methanol
from natural gas determined on basis of BTU equivalency with
gasoline);
(25) section 908 (relating to modification of tax treatment
of hard cider);
(26) section 914 (relating to mortgage financing for resi-
dences located in disaster areas);
(27) section 962 (relating to assignment of workmen’s com-
pensation liability eligible for exclusion relating to personal
injury liability assignments);
H. R. 2014—314
(28) section 963 (relating to tax-exempt status for certain
State worker’s compensation act companies);
(29) section 967 (relating to additional advance refunding
of certain Virgin Island bonds);
(30) section 968 (relating to nonrecognition of gain on sale
of stock to certain farmers’ cooperatives);
(31) section 971 (relating to exemption of the incremental
cost of a clean fuel vehicle from the limits on depreciation
for vehicles);
(32) section 974 (relating to clarification of treatment of
certain receivables purchased by cooperative hospital service
organizations);
(33) section 975 (relating to deduction in computing
adjusted gross income for expenses in connection with service
performed by certain officials) with respect to taxable years
beginning before 1991;
(34) section 977 (relating to elective carryback of existing
carryovers of National Railroad Passenger Corporation);
(35) section 1005(b)(2)(B) (relating to transition rule for
instruments described in a ruling request submitted to the
Internal Revenue Service on or before June 8, 1997);
(36) section 1005(b)(2)(C) (relating to transition rule for
instruments described on or before June 8, 1997, in a public
announcement or in a filing with the Securities and Exchange
Commission) as it relates to a public announcement;
(37) section 1005(b)(2)(C) (relating to transition rule for
instruments described on or before June 8, 1997, in a public
announcement or in a filing with the Securities and Exchange
Commission) as it relates to a filing with the Securities and
Exchange Commission;
(38) section 1011(d)(2)(B) (relating to transition rule for
distributions made pursuant to the terms of a tender offer
outstanding on May 3, 1995);
(39) section 1011(d)(3) (relating to transition rule for dis-
tributions made pursuant to the terms of a tender offer
outstanding on September 13, 1995);
(40) section 1012(d)(3)(B) (relating to transition rule for
distributions pursuant to an acquisition described in section
355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described
in a ruling request submitted to the Internal Revenue Service
on or before April 16, 1997);
(41) section 1012(d)(3)(C) (relating to transition rule for
distributions pursuant to an acquisition described in section
355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described
in a public announcement or filing with the Securities and
Exchange Commission) as it relates to a public announcement;
(42) section 1012(d)(3)(C) (relating to transition rule for
distributions pursuant to an acquisition described in section
355(e)(2)(A)(ii) of the Internal Revenue Code of 1986 described
in a public announcement or filing with the Securities and
Exchange Commission) as it relates to a filing with the Securi-
ties and Exchange Commission;
(43) section 1013(d)(2)(B) (relating to transition rule for
distributions or acquisitions after June 8, 1997, described in
a ruling request submitted to the Internal Revenue Service
submitted on or before June 8, 1997);
H. R. 2014—315
(44) section 1013(d)(2)(C) (relating to transition rule for
distributions or acquisitions after June 8, 1997, described in
a public announcement or filing with the Securities and
Exchange Commission on or before June 8, 1997) as it relates
to a public announcement;
(45) section 1013(d)(2)(C) (relating to transition rule for
distributions or acquisitions after June 8, 1997, described in
a public announcement or filing with the Securities and
Exchange Commission on or before June 8, 1997) as it relates
to a filing with the Securities and Exchange Commission;
(46) section 1014(f)(2)(B) (relating to transition rule for
any transaction after June 8, 1997, if such transaction is
described in a ruling request submitted to the Internal Revenue
Service on or before June 8, 1997);
(47) section 1014(f)(2)(C) (relating to transition rule for
any transaction after June 8, 1997, if such transaction is
described in a public announcement or filing with the Securities
and Exchange Commission on or before June 8, 1997) as it
relates to a public announcement;
(48) section 1014(f)(2)(C) (relating to transition rule for
any transaction after June 8, 1997, if such transaction is
described in a public announcement or filing with the Securities
and Exchange Commission on or before June 8, 1997) as it
relates to a filing with the Securities and Exchange Commis-
sion;
(49) section 1042(b) (relating to special rules for provision
terminating certain exceptions from rules relating to exempt
organizations which provide commercial-type insurance);
(50) section 1081(a) (relating to termination of suspense
accounts for family corporations required to use accrual method
of accounting) as it relates to the repeal of Internal Revenue
Code section 447(i)(3);
(51) section 1089(b)(3) (relating to reformations);
(52) section 1089(b)(5)(B)(i) (relating to persons under a
mental disability;
(53) section 1171 (relating to treatment of computer soft-
ware as FSC export property);
(54) section 1175 (relating to exemption for active financing
income);
(55) section 1204 (relating to travel expenses of certain
Federal employees engaged in criminal investigations);
(56) section 1236 (relating to extension of time for filing
a request for administrative adjustment);
(57) section 1243 (relating to special rules for administra-
tive adjustment request with respect to bad debts or worthless
securities);
(58) section 1251 (relating to clarification of limitation on
maximum number of shareholders);
(59) section 1253 (relating to attribution rules applicable
to stock ownership);
(60) section 1256 (relating to modification of earnings and
profits rules for determining whether REIT has earnings and
profits from non-REIT year);
(61) section 1257 (relating to treatment of foreclosure prop-
erty);
(62) section 1261 (relating to shared appreciation mort-
gages);
H. R. 2014—316
(63) section 1302 (relating to clarification of waiver of cer-
tain rights of recovery);
(64) section 1303 (relating to transitional rule under section
2056A);
(65) section 1304 (relating to treatment for estate tax pur-
poses of short-term obligations held by nonresident aliens);
(66) section 1311 (relating to clarification of treatment of
survivor annuities under qualified terminable interest rules);
(67) section 1312 (relating to treatment of qualified domes-
tic trust rules of forms of ownership which are not trusts);
(68) section 1313 (relating to opportunity to correct failures
under section 2032A);
(69) section 1414 (relating to fermented material from any
brewery may be received at a distilled spirits plant);
(70) section 1417 (relating to use of additional ameliorating
material in certain wines);
(71) section 1418 (relating to domestically produced beer
may be withdrawn free of tax for use of foreign embassies,
legations, etc.);
(72) section 1421 (relating to transfer to brewery of beer
imported in bulk without payment of tax);
(73) section 1422 (relating to transfer to bonded wine cellars
of wine imported in bulk without payment of tax);
(74) section 1506 (relating to clarification of certain rules
relating to employee stock ownership plans of S corporations);
(75) section 1507 (relating to modification of 10-percent
tax for nondeductible contributions);
(76) section 1523 (relating to repeal of application of unre-
lated business income tax to ESOPs);
(77) section 1530 (relating to gratuitous transfers for the
benefit of employees);
(78) section 1532 (relating to special rules relating to church
plans); and
(79) section 1604(c)(2) (relating to amendment related to
Omnibus Budget Reconciliation Act of 1993).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.