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Secretary determines necessary or appropriate to ensure
compliance with the amendments made by this section with
respect to entities applying for certification as certified pro-
fessional employer organizations or entities that have been
so certified. Such rules shall be designed in a manner which
streamlines, to the extent possible, the application of re-
quirements of such amendments, the exchange of informa-
tion between a certified professional employer organization
and its customers, and the reporting and recordkeeping ob-
ligations of the certified professional employer organization.
(f) USER FEES.—Subsection (b) of section 7528 (relat-
ing to Internal Revenue Service user fees) is amended by
adding at the end the following new paragraph:
‘‘(4) CERTIFIED PROFESSIONAL EMPLOYER OR-
GANIZATIONS.—The fee charged under the program in
connection with the certification by the Secretary of
a professional employer organization under section
7705 shall not exceed $500.’’.
(g) EFFECTIVE DATES.—
(1) IN
GENERAL.—The amendments made by
this section shall apply with respect to wages for serv-
ices performed on or after January 1 of the first cal-
endar year beginning more than 12 months after the
date of the enactment of this Act.
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(2) CERTIFICATION PROGRAM.—The Secretary of
the Treasury shall establish the certification program
described in section 7705(b) of the Internal Revenue
Code of 1986, as added by subsection (b), not later
than 6 months before the effective date determined
under paragraph (1).
(h) NO INFERENCE.—Nothing contained in this section
or the amendments made by this section shall be construed
to create any inference with respect to the determination
of who is an employee or employer—
(1) for Federal tax purposes (other than the pur-
poses set forth in the amendments made by this sec-
tion), or
(2) for purposes of any other provision of law.
SEC. 516. ACCELERATED DEPRECIATION FOR INVESTMENT
IN HIGH OUT-MIGRATION COUNTIES.
(a) IN GENERAL.—Section 168 (relating to accelerated
cost recovery system) is amended by adding at the end the
following new subsection:
‘‘(m) RURAL INVESTMENT PROPERTY.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a), the applicable recovery period for qualified rural
investment property shall be determined in accord-
ance with the table contained in paragraph (2) in
lieu of the table contained in subsection (c).
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‘‘(2) APPLICABLE RECOVERY PERIOD FOR RURAL
INVESTMENT PROPERTY.—For purposes of paragraph
(1)—
The applicable
‘‘
‘‘In the case of:
recovery period is:
3-year property ......................................................................
2 years
5-year property ......................................................................
3 years
7-year property ......................................................................
4 years
10-year property ....................................................................
6 years
15-year property ....................................................................
9 years
20-year property ....................................................................
12 years
Nonresidential real property ................................................
22 years.
‘‘(3) QUALIFIED RURAL INVESTMENT PROPERTY
DEFINED.—For purposes of this subsection—
‘‘(A) IN
GENERAL.—The term ‘qualified
rural investment property’ means property
which is property described in the table in para-
graph (2) and which is—
‘‘(i) used by the taxpayer predomi-
nantly in the active conduct of a trade or
business within a high out-migration coun-
ty,
‘‘(ii) not used or located outside such
county on a regular basis,
‘‘(iii) not acquired (directly or indi-
rectly) by the taxpayer from a person who
is related to the taxpayer (within the mean-
ing of section 465(b)(3)(C)), and
‘‘(iv) not property (or any portion
thereof) placed in service for purposes of op-
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erating any racetrack or other facility used
for gambling.
‘‘(B) HIGH OUT-MIGRATION COUNTY.—The
term ‘high out-migration county’ means any
county which—
‘‘(i) is outside a metropolitan statis-
tical area (defined as such by the Office of
Management and Budget), and
‘‘(ii) during the 5-year periods 1990
through 1994 and 1995 through 1999 had a
net population loss.
‘‘(4) TERMINATION.—This subsection shall not
apply to property placed in service after March 31,
2008.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to property placed in service after the
date of the enactment of this Act, the original use of which
begins with the taxpayer after such date.
SEC. 517. EXTENSION OF INCREASED EXPENSING FOR
QUALIFIED SECTION 179 GULF OPPORTUNITY
ZONE PROPERTY.
Paragraph (2) of section 1400N(e) (relating to quali-
fied section 179 Gulf Opportunity Zone property) is
amended—
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(1) by striking ‘‘this subsection, the term’’ and
inserting ‘‘this subsection—
‘‘(A) IN GENERAL.—The term’’, and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) EXTENSION
FOR
CERTAIN
PROP-
ERTY.—In the case of property substantially all
of the use of which is in one or more specified
portions of the GO Zone (as defined by sub-
section (d)(6)), such term shall include section
179 property (as so defined) which is described
in subsection (d)(2), determined—
‘‘(i) without regard to subsection
(d)(6), and
‘‘(ii) by substituting ‘2008’ for ‘2007’
in subparagraph (A)(v) thereof.’’.
Subpart B—Subchapter S Provisions
SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED
AS PASSIVE INVESTMENT INCOME.
(a) IN GENERAL.—Section 1362(d)(3) is amended by
striking subparagraphs (B), (C), (D), (E), and (F) and in-
serting the following new subparagraph:
‘‘(B) PASSIVE
INVESTMENT
INCOME
DE-
FINED.—
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‘‘(i) IN GENERAL.—Except as otherwise
provided in this subparagraph, the term
‘passive investment income’ means gross re-
ceipts derived from royalties, rents, divi-
dends, interest, and annuities.
‘‘(ii) EXCEPTION
FOR
INTEREST
ON
NOTES
FROM
SALES
OF
INVENTORY.—The
term ‘passive investment income’ shall not
include interest on any obligation acquired
in the ordinary course of the corporation’s
trade or business from its sale of property
described in section 1221(a)(1).
‘‘(iii) TREATMENT OF CERTAIN LEND-
ING OR FINANCE COMPANIES.—If the S cor-
poration meets the requirements of section
542(c)(6) for the taxable year, the term
‘passive investment income’ shall not in-
clude gross receipts for the taxable year
which are derived directly from the active
and regular conduct of a lending or finance
business (as defined in section 542(d)(1)).
‘‘(iv) TREATMENT
OF
CERTAIN
DIVI-
DENDS.—If an S corporation holds stock in
a C corporation meeting the requirements of
section 1504(a)(2), the term ‘passive invest-