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‘‘(1) IN GENERAL.—For purposes of this sub-
paragraph, the term ‘qualified reclamation expendi-
ture’ means amounts otherwise chargeable to capital
account and paid or incurred to convert any real
property certified under section 1033(k)(2) (relating
to qualified disposition) into unimproved land.
‘‘(2) SPECIAL RULE FOR EXPENDITURES FOR DE-
PRECIABLE PROPERTY.—A rule similar to the rule of
section 198(b)(2) (relating to special rule for expendi-
tures for depreciable property) shall apply for pur-
poses of paragraph (1).
‘‘(c) DEDUCTION RECAPTURED
AS ORDINARY IN-
COME.—Rules similar to the rules of section 198(e) (relating
to deduction recaptured as ordinary income on sale, etc.)
shall apply with respect to any qualified reclamation ex-
penditure.
‘‘(d) TERMINATION.—This section shall not apply to
expenditures paid or incurred after December 31, 2006.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part VI of subchapter B of chapter 1, as
amended by this Act, is amended by adding at the
end the following new item:
‘‘Sec. 199B. Expensing of dairy property reclamation costs.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to expenditures paid or
incurred in taxable years ending after May 22, 2001.
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SEC. 2506. CLARIFICATION OF EXCISE TAX EXEMPTIONS
FOR AGRICULTURAL AERIAL APPLICATORS.
(a) NO WAIVER BY FARM OWNER, TENANT, OR OPER-
ATOR
NECESSARY.—Subparagraph 
(B) 
of 
section
6420(c)(4) (relating to certain farming use other than by
owner, etc.) is amended to read as follows:
‘‘(B) if the person so using the gasoline is
an aerial or other applicator of fertilizers or
other substances and is the ultimate purchaser of
the gasoline, then subparagraph (A) of this para-
graph shall not apply and the aerial or other ap-
plicator shall be treated as having used such gas-
oline on a farm for farming purposes.’’.
(b) EXEMPTION INCLUDES FUEL USED BETWEEN AIR-
FIELD AND FARM.—Section 6420(c)(4), as amended by sub-
section (a), is amended by adding at the end the following
new flush sentence:
‘‘For purposes of this paragraph, in the case of an
aerial applicator, gasoline shall be treated as used on
a farm for farming purposes if the gasoline is used
for the direct flight between the airfield and 1 or more
farms.’’.
(c) EXEMPTION FROM TAX ON AIR TRANSPORTATION
OF PERSONS FOR FORESTRY PURPOSES EXTENDED TO
FIXED-WING AIRCRAFT.—Subsection (f) of section 4261 (re-
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lating to tax on air transportation of persons) is amended
to read as follows:
‘‘(f) EXEMPTION FOR CERTAIN USES.—No tax shall be
imposed under subsection (a) or (b) on air transportation—
‘‘(1) by helicopter for the purpose of transporting
individuals, equipment, or supplies in the exploration
for, or the development or removal of, hard minerals,
oil, or gas, or
‘‘(2) by helicopter or by fixed-wing aircraft for
the purpose of the planting, cultivation, cutting, or
transportation of, or caring for, trees (including log-
ging operations),
but only if the helicopter or fixed-wing aircraft does not
take off from, or land at, a facility eligible for assistance
under the Airport and Airway Development Act of 1970,
or otherwise use services provided pursuant to section 44509
or 44913(b) or subchapter I of chapter 471 of title 49,
United States Code, during such use. In the case of heli-
copter transportation described in paragraph (1), this sub-
section shall be applied by treating each flight segment as
a distinct flight.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to fuel use or air transportation after
December 31, 2001, and before January 1, 2003.
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SEC. 2507. MODIFICATION OF RURAL AIRPORT DEFINITION.
(a) IN GENERAL.—Clause (ii) of section 4261(e)(1)(B)
(defining rural airport) is amended by striking the period
at the end of subclause (II) and inserting ‘‘, or’’ and by
adding at the end the following new subclause:
‘‘(III) is not connected by paved
roads to another airport.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to calendar years beginning after 2002.
SEC. 2508. EXEMPTION FROM TICKET TAXES FOR TRANS-
PORTATION PROVIDED BY SEAPLANES.
(a) IN GENERAL.—The taxes imposed by sections 4261
and 4271 shall not apply to transportation by a seaplane
with respect to any segment consisting of a takeoff from,
and a landing on, water.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to calendar years beginning after 2002.
DIVISION I—IRAQ OIL IMPORT
RESTRICTION
TITLE XXVI—IRAQ OIL IMPORT
RESTRICTION
SEC. 2601. SHORT TITLE AND FINDINGS.
(a) SHORT TITLE.—This title can be cited as the ‘‘Iraq
Petroleum Import Restriction Act of 2002’’.
(b) FINDINGS.—Congress finds that—
(1) the Government of the Republic of Iraq—
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(A) has failed to comply with the terms of
United Nations Security Council Resolution 687
regarding unconditional Iraqi acceptance of the
destruction, removal, or rendering harmless,
under international supervision, of all nuclear,
chemical and biological weapons and all stocks of
agents and all related subsystems and compo-
nents and all research, development, support and
manufacturing facilities, as well as all ballistic
missiles with a range greater than 150 kilo-
meters and related major parts, and repair and
production facilities and has failed to allow
United Nations inspectors access to sites used for
the production or storage of weapons of mass de-
struction;
(B) routinely contravenes the terms and.
conditions of UNSC Resolution 661, authorizing
the export of petroleum products from Iraq in ex-
change for food, medicine and other humani-
tarian products by conducting a routine and ex-
tensive program to sell such products outside of
the channels established by UNSC Resolution
661 in exchange for military equipment and ma-
terials to be used in pursuit of its program to de-
velop weapons of mass destruction in order to
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threaten the United States and its allies in the
Persian Gulf and surrounding regions;
(C) has failed to adequately draw down
upon the amounts received in the Escrow Ac-
count established by UNSC Resolution 986 to
purchase food, medicine and other humanitarian
products required by its citizens, resulting in
massive humanitarian suffering by the Iraqi
people;
(D) conducts a periodic and systematic
campaign to harass and obstruct the enforcement
of the United States- and United Kingdom-en-
forced ‘‘No-Fly Zones’’ in effect in the Republic
of Iraq;
(E) routinely manipulates the petroleum ex-
port production volumes permitted under UNSC
Resolution 661 in order to create uncertainty in
global energy markets, and therefore threatens
the economic security of the United States;
(F) pays bounties to the families of suicide
bombers in order to encourage the murder of
Israeli civilians;
(2) further imports of petroleum products from
the Republic of Iraq are inconsistent with the na-
tional security and foreign policy interests of the
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United States and should be eliminated until such
time as they are not so inconsistent.
SEC. 2602. PROHIBITION ON IRAQI-ORIGIN PETROLEUM IM-
PORTS.
The direct or indirect import from Iraq of Iraqi-origin
petroleum and petroleum products is prohibited, notwith-
standing an authorization by the Committee established by
UNSC Resolution 661 or its designee, or any other order
to the contrary.
SEC. 2603. TERMINATION/PRESIDENTIAL CERTIFICATION.
This title will remain in effect until such time as the
President, after consultation with the relevant committees
in Congress, certifies to the Congress that—
(1) Iraq is in substantial compliance with the
terms of—
(A) UNSC Resolution 687; and
(B) UNSC Resolution 986 prohibiting
smuggling of oil in circumvention of the ‘‘Oil-
for-Food’’ program; and
(2) ceases the practice of compensating the fami-
lies of suicide bombers in order to encourage the mur-
der of Israeli citizens; or that
(3) resuming the importation of Iraqi-origin pe-
troleum and petroleum products would not be incon-
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sistent with the national security and foreign policy
interests of the United States.
SEC. 2604. HUMANITARIAN INTERESTS.
It is the sense of the Senate that the President should
make all appropriate efforts to ensure that the humani-
tarian needs of the Iraqi people are not negatively affected
by this Act, and should encourage through public, private,
domestic and international means the direct or indirect
sale, donation or other transfer to appropriate nongovern-
mental health and humanitarian organizations and indi-
viduals within Iraq of food, medicine and other humani-
tarian products.
SEC. 2605. DEFINITIONS.
(a) 661 COMMITTEE.—The term 661 Committee means
the Security Council Committee established by UNSC Reso-
lution 661, and persons acting for or on behalf of the Com-
mittee under its specific delegation of authority for the rel-
evant matter or category of activity, including the overseers
appointed by the United Nations Secretary-General to ex-
amine and approve agreements for purchases of petroleum
and petroleum products from the Government of Iraq pur-
suant to UNSC Resolution 986.
(b) UNSC RESOLUTION 661.—The term UNSC Reso-
lution 661 means United Nations Security Council Resolu-
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tion No. 661, adopted August 6, 1990, prohibiting certain
transactions with respect to Iraq and Kuwait.
(c) UNSC RESOLUTION 687.—The term UNSC Reso-
lution 687 means United Nations Security Council Resolu-
tion 687, adopted April 3, 1991.
(d) UNSC RESOLUTION 986.—The term UNSC Reso-
lution 986 means United Nations Security Council Resolu-
tion 986, adopted April 14, 1995.
SEC. 2606. EFFECTIVE DATE.
The prohibition on importation of Iraqi-origin petro-
leum and petroleum products shall be effective 30 days after
enactment of this Act.
DIVISION J—MISCELLANEOUS
TITLE XXVII—MISCELLANEOUS
PROVISION
SEC. 2701. FAIR TREATMENT OF PRESIDENTIAL JUDICIAL
NOMINEES.
It is the sense of the Senate that, in the interests of
the administration of justice, the Senate Judiciary Com-
mittee should along with its other legislative and oversight
responsibilities, continue to hold regular hearings on judi-
cial nominees and should, in accordance with the precedents
and practices of the Committee, schedule hearings on the
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nominees submitted by the President on May 9, 2001, and
resubmitted on September 5, 2001, expeditiously.
Attest:
Secretary.