SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 
TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Tax Technical Corrections Act of 2007’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
Sec. 2. Amendment related to the Tax Relief and Health Care Act of 2006. 
Sec. 3. Amendments related to title XII of the Pension Protection Act of 2006. 
Sec. 4. Amendments related to the Tax Increase Prevention and Reconciliation 
Act of 2005. 
Sec. 5. Amendments related to the Safe, Accountable, Flexible, Efficient Trans-
portation Equity Act: A Legacy for Users. 
Sec. 6. Amendments related to the Energy Policy Act of 2005. 
Sec. 7. Amendments related to the American Jobs Creation Act of 2004. 
Sec. 8. Amendments related to the Economic Growth and Tax Relief Reconcili-
ation Act of 2001. 
Sec. 9. Amendments related to the Tax Relief Extension Act of 1999. 
Sec. 10. Amendment related to the Internal Revenue Service Restructuring and 
Reform Act of 1998. 
Sec. 11. Clerical corrections. 
SEC. 2. AMENDMENT RELATED TO THE TAX RELIEF AND 
HEALTH CARE ACT OF 2006. 
(a) AMENDMENT RELATED TO SECTION 402 OF DI-
VISION A OF THE ACT.—Subparagraph (A) of section 
53(e)(2) is amended to read as follows:
‘‘(A) IN GENERAL.—The term ‘AMT re-
fundable credit amount’ means, with respect to 
any taxable year, the amount (not in excess of 
the long-term unused minimum tax credit for 
such taxable year) equal to the greater of— 
‘‘(i) $5,000, 
‘‘(ii) 20 percent of the long-term un-
used minimum tax credit for such taxable 
year, or 
‘‘(iii) the amount (if any) of the AMT 
refundable 
credit 
amount 
determined 
under this paragraph for the taxpayer’s 
preceding taxable year (as determined be-
fore any reduction under subparagraph 
(B)).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the provision 
of the Tax Relief and Health Care Act of 2006 to which 
it relates. 
SEC. 3. AMENDMENTS RELATED TO TITLE XII OF THE PEN-
SION PROTECTION ACT OF 2006. 
(a) AMENDMENT RELATED TO SECTION 1201 OF 
THE ACT.—Subparagraph (D) of section 408(d)(8) is 
amended by striking ‘‘all amounts distributed from all in-
dividual retirement plans were treated as 1 contract under
paragraph (2)(A) for purposes of determining the inclu-
sion of such distribution under section 72’’ and inserting 
‘‘all amounts in all individual retirement plans of the indi-
vidual were distributed during such taxable year and all 
such plans were treated as 1 contract for purposes of de-
termining under section 72 the aggregate amount which 
would have been so includible’’. 
(b) AMENDMENT RELATED TO SECTION 1203 OF 
THE ACT.—Subsection (d) of section 1366 is amended by 
adding at the end the following new paragraph: 
‘‘(4) APPLICATION OF LIMITATION ON CHARI-
TABLE CONTRIBUTIONS.—In the case of any chari-
table contribution of property to which the second 
sentence of section 1367(a)(2) applies, paragraph 
(1) shall not apply to the extent of the excess (if 
any) of— 
‘‘(A) the shareholder’s pro rata share of 
such contribution, over 
‘‘(B) the shareholder’s pro rata share of 
the adjusted basis of such property.’’. 
(c) AMENDMENT RELATED TO SECTION 1215 OF 
THE ACT.—Subclause (I) of section 170(e)(7)(D)(i) is 
amended by striking ‘‘related’’ and inserting ‘‘substantial 
and related’’.
(d) AMENDMENTS RELATED TO SECTION 1218 OF 
THE ACT.— 
(1) Section 2055 is amended by striking sub-
section (g) and by redesignating subsection (h) as 
subsection (g). 
(2) Subsection (e) of section 2522 is amend-
ed— 
(A) by striking paragraphs (2) and (4), 
(B) by redesignating paragraph (3) as 
paragraph (2), and 
(C) by adding at the end of paragraph (2), 
as so redesignated, the following new subpara-
graph: 
‘‘(C) 
INITIAL
FRACTIONAL
CONTRIBU-
TION.—For purposes of this paragraph, the 
term ‘initial fractional contribution’ means, 
with respect to any donor, the first gift of an 
undivided portion of the donor’s entire interest 
in any tangible personal property for which a 
deduction is allowed under subsection (a) or 
(b).’’. 
(e) AMENDMENTS RELATED TO SECTION 1219 OF 
THE ACT.— 
(1) Paragraph (2) of section 6695A(a) is 
amended by inserting ‘‘a substantial estate or gift
tax valuation understatement (within the meaning of 
section 6662(g)),’’ before ‘‘or a gross valuation 
misstatement’’. 
(2) Paragraph (1) of section 6696(d) is amend-
ed by striking ‘‘or under section 6695’’ and inserting 
‘‘, section 6695, or 6695A’’. 
(f) AMENDMENT RELATED TO SECTION 1221 OF THE 
ACT.—Subparagraph (A) of section 4940(c)(4) is amend-
ed to read as follows: 
‘‘(A) There shall not be taken into account 
any gain or loss from the sale or other disposi-
tion of property to the extent that such gain or 
loss is taken into account for purposes of com-
puting the tax imposed by section 511.’’. 
(g) AMENDMENT RELATED TO SECTION 1225 OF 
THE ACT.— 
(1) Subsection (b) of section 6104 is amend-
ed— 
(A) by striking ‘‘INFORMATION’’ in the 
heading, and 
(B) by adding at the end the following: 
‘‘Any annual return which is filed under section 
6011 by an organization described in section 
501(c)(3) and which relates to any tax imposed 
by section 511 (relating to imposition of tax on
unrelated business income of charitable, etc., 
organizations) shall be treated for purposes of 
this subsection in the same manner as if fur-
nished under section 6033.’’. 
(2) Clause (ii) of section 6104(d)(1)(A) is 
amended to read as follows: 
‘‘(ii) any annual return which is filed 
under section 6011 by an organization de-
scribed in section 501(c)(3) and which re-
lates to any tax imposed by section 511 
(relating to imposition of tax on unrelated 
business income of charitable, etc., organi-
zations),’’. 
(3) Paragraph (2) of section 6104(d) is amend-
ed by striking ‘‘section 6033’’ and inserting ‘‘section 
6011 or 6033’’. 
(h) AMENDMENT RELATED TO SECTION 1231 OF 
THE ACT.—Subsection (b) of section 4962 is amended by 
striking ‘‘or D’’ and inserting ‘‘D, or G’’. 
(i) AMENDMENT RELATED TO SECTION 1242 OF THE 
ACT.— 
(1) Subclause (II) of section 4958(c)(3)(A)(i) is 
amended by striking ‘‘paragraph (1), (2), or (4) of 
section 
509(a)’’ 
and 
inserting 
‘‘subparagraph 
(C)(ii)’’.
and inserting after subparagraph (A) the following new 
subparagraph: 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply in the case of any interest, rent, 
or royalty to the extent such interest, rent, or 
royalty creates (or increases) a deficit which 
under section 952(c) may reduce the subpart F 
income of the payor or another controlled for-
eign corporation.’’. 
(b) AMENDMENTS RELATED TO SECTION 202 OF 
THE ACT.— 
(1) Subparagraph (A) of section 355(b)(2) is 
amended to read as follows: 
‘‘(A) it is engaged in the active conduct of 
a trade or business,’’. 
(2) Paragraph (3) of section 355(b) is amended 
to read as follows: 
‘‘(3) SPECIAL
RULES
FOR
DETERMINING
AC-
TIVE
CONDUCT
IN
THE
CASE
OF
AFFILIATED 
GROUPS.— 
‘‘(A) IN GENERAL.—For purposes of deter-
mining whether a corporation meets the re-
quirements of paragraph (2)(A), all members of 
such corporation’s separate affiliated group 
shall be treated as one corporation.
‘‘(B) SEPARATE AFFILIATED GROUP.—For 
purposes of this paragraph, the term ‘separate 
affiliated group’ means, with respect to any cor-
poration, the affiliated group which would be 
determined under section 1504(a) if such cor-
poration were the common parent and section 
1504(b) did not apply. 
‘‘(C) TREATMENT OF TRADE OR BUSINESS 
CONDUCTED BY ACQUIRED MEMBER.—If a cor-
poration became a member of a separate affili-
ated group as a result of one or more trans-
actions in which gain or loss was recognized in 
whole or in part, any trade or business con-
ducted by such corporation (at the time that 
such corporation became such a member) shall 
be treated for purposes of paragraph (2) as ac-
quired in a transaction in which gain or loss 
was recognized in whole or in part. 
‘‘(D) REGULATIONS.—The Secretary shall 
prescribe such regulations as are necessary or 
appropriate to carry out the purposes of this 
paragraph, including regulations which provide 
for the proper application of subparagraphs 
(B), (C), and (D) of paragraph (2), and modify 
the application of subsection (a)(3)(B), in con-
nection with the application of this para-
graph.’’. 
(3) The Internal Revenue Code of 1986 shall be 
applied and administered as if the amendments 
made by section 202 of the Tax Increase Prevention 
and Reconciliation Act of 2005 and by section 410 
of division A of the Tax Relief and Health Care Act 
of 2006 had never been enacted. 
(c) AMENDMENT RELATED TO SECTION 515 OF THE 
ACT.—Subsection (f) of section 911 is amended to read 
as follows: 
‘‘(f) DETERMINATION OF TAX LIABILITY.— 
‘‘(1) IN GENERAL.—If, for any taxable year, 
any amount is excluded from gross income of a tax-
payer under subsection (a), then, notwithstanding 
sections 1 and 55— 
‘‘(A) if such taxpayer has taxable income 
for such taxable year, the tax imposed by sec-
tion 1 for such taxable year shall be equal to 
the excess (if any) of— 
‘‘(i) the tax which would be imposed 
by section 1 for such taxable year if the 
taxpayer’s taxable income were increased 
by the amount excluded under subsection 
(a) for such taxable year, over
‘‘(ii) the tax which would be imposed 
by section 1 for such taxable year if the 
taxpayer’s taxable income were equal to 
the amount excluded under subsection (a) 
for such taxable year, and 
‘‘(B) if such taxpayer has a taxable excess 
(as defined in section 55(b)(1)(A)(ii)) for such 
taxable year, the amount determined under the 
first sentence of section 55(b)(1)(A)(i) for such 
taxable year shall be equal to the excess (if any) 
of— 
‘‘(i) the amount which would be deter-
mined under such sentence for such tax-
able year (subject to the limitation of sec-
tion 55(b)(3)) if the taxpayer’s taxable ex-
cess (as so defined) were increased by the 
amount excluded under subsection (a) for 
such taxable year, over 
‘‘(ii) the amount which would be de-
termined under such sentence for such tax-
able year if the taxpayer’s taxable excess 
(as so defined) were equal to the amount 
excluded under subsection (a) for such tax-
able year. 
‘‘(2) SPECIAL RULES.—
‘‘(A) REGULAR TAX.—In applying section 
1(h) for purposes of determining the tax under 
paragraph (1)(A)(i) for any taxable year in 
which, without regard to this subsection, the 
taxpayer’s net capital gain exceeds taxable in-
come (hereafter in this subparagraph referred 
to as the capital gain excess)— 
‘‘(i) the taxpayer’s net capital gain 
(determined without regard to section 
1(h)(11)) shall be reduced (but not below 
zero) by such capital gain excess, 
‘‘(ii) the taxpayer’s qualified dividend 
income shall be reduced by so much of 
such capital gain excess as exceeds the tax-
payer’s net capital gain (determined with-
out regard to section 1(h)(11) and the re-
duction under clause (i)), and 
‘‘(iii) 
adjusted 
net 
capital 
gain, 
unrecaptured section 1250 gain, and 28- 
percent rate gain shall each be determined 
after increasing the amount described in 
section 1(h)(4)(B) by such capital gain ex-
cess. 
‘‘(B) ALTERNATIVE
MINIMUM
TAX.—In 
applying section 55(b)(3) for purposes of deter-
mining the tax under paragraph (1)(B)(i) for 
any taxable year in which, without regard to 
this subsection, the taxpayer’s net capital gain 
exceeds the taxable excess (as defined in section 
55(b)(1)(A)(ii))— 
‘‘(i) the rules of subparagraph (A) 
shall apply, except that such subparagraph 
shall be applied by substituting ‘the tax-
able 
excess 
(as 
defined 
in 
section 
55(b)(1)(A)(ii))’ for ‘taxable income’, and 
‘‘(ii) 
the 
reference 
in 
section 
55(b)(3)(B) to the excess described in sec-
tion 1(h)(1)(B) shall be treated as a ref-
erence to such excess as determined under 
the rules of subparagraph (A) for purposes 
of determining the tax under paragraph 
(1)(A)(i). 
‘‘(C) DEFINITIONS.—Terms used in this 
paragraph which are also used in section 1(h) 
shall have the respective meanings given such 
terms by section 1(h), except that in applying 
subparagraph (B) the adjustments under part 
VI of subchapter A shall be taken into ac-
count.’’. 
(d) EFFECTIVE DATE.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect as if included in the 
provisions of the Tax Increase Prevention and Rec-
onciliation Act of 2005 to which they relate. 
(2) MODIFICATION OF ACTIVE BUSINESS DEFI-
NITION UNDER SECTION 355.— 
(A) IN
GENERAL.—Except as otherwise 
provided in this paragraph, the amendments 
made by subsection (b) shall apply to distribu-
tions made after May 17, 2006. 
(B) TRANSITION RULE.—The amendments 
made by subsection (b) shall not apply to any 
distribution pursuant to a transaction which 
is— 
(i) made pursuant to an agreement 
which was binding on May 17, 2006, and 
at all times thereafter, 
(ii) described in a ruling request sub-
mitted to the Internal Revenue Service on 
or before such date, or 
(iii) described on or before such date 
in a public announcement or in a filing 
with the Securities and Exchange Commis-
sion.
(C) 
ELECTION
OUT
OF
TRANSITION 
RULE.—Subparagraph (B) shall not apply if 
the distributing corporation elects not to have 
such subparagraph apply to distributions of 
such corporation. Any such election, once made, 
shall be irrevocable. 
(D) SPECIAL RULE FOR CERTAIN PRE-EN-
ACTMENT
DISTRIBUTIONS.—For purposes of 
determining the continued qualification under 
section 355(b)(2)(A) of the Internal Revenue 
Code of 1986 of distributions made on or before 
May 17, 2006, as a result of an acquisition, dis-
position, or other restructuring after such date, 
such distribution shall be treated as made on 
the date of such acquisition, disposition, or re-
structuring for purposes of applying subpara-
graphs (A) through (C) of this paragraph. The 
preceding sentence shall only apply with respect 
to the corporation that undertakes such acquisi-
tion, disposition, or other restructuring, and 
only if such application results in continued 
qualification under section 355(b)(2)(A) of such 
Code. 
(3) AMENDMENT RELATED TO SECTION 515 OF 
THE ACT.—The amendment made by subsection (c)
shall apply to taxable years beginning after Decem-
ber 31, 2006. 
SEC. 5. AMENDMENTS RELATED TO THE SAFE, ACCOUNT-
ABLE, 
FLEXIBLE, 
EFFICIENT 
TRANSPOR-
TATION EQUITY ACT: A LEGACY FOR USERS. 
(a) AMENDMENTS RELATED TO SECTION 11113 OF 
THE ACT.— 
(1) Paragraph (3) of section 6427(i) is amend-
ed— 
(A) by inserting ‘‘or under subsection 
(e)(2) by any person with respect to an alter-
native fuel (as defined in section 6426(d)(2))’’ 
after ‘‘section 6426’’ in subparagraph (A), 
(B) by inserting ‘‘or (e)(2)’’ after ‘‘sub-
section (e)(1)’’ in subparagraphs (A)(i) and 
(B), and 
(C) by striking ‘‘ALCOHOL FUEL AND BIO-
DIESEL MIXTURE CREDIT’’ and inserting ‘‘MIX-
TURE CREDITS AND THE ALTERNATIVE FUEL 
CREDIT’’ in the heading thereof. 
(2) Subparagraph (F) of section 6426(d)(2) is 
amended by striking ‘‘hydrocarbons’’ and inserting 
‘‘fuel’’. 
(3) Section 6426 is amended by adding at the 
end the following new subsection:
‘‘(h) DENIAL OF DOUBLE BENEFIT.—No credit shall 
be determined under subsection (d) or (e) with respect to 
any fuel with respect to which credit may be determined 
under subsection (b) or (c) or under section 40 or 40A.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the SAFETEA–LU to which they relate. 
SEC. 6. AMENDMENTS RELATED TO THE ENERGY POLICY 
ACT OF 2005. 
(a) AMENDMENT RELATED TO SECTION 1306 OF 
THE ACT.—Paragraph (2) of section 45J(b) is amended 
to read as follows: 
‘‘(2) AMOUNT OF NATIONAL LIMITATION.—The 
aggregate amount of national megawatt capacity 
limitation allocated by the Secretary under para-
graph (3) shall not exceed 6,000 megawatts.’’. 
(b) AMENDMENTS RELATED TO SECTION 1342 OF 
THE ACT.— 
(1) So much of subsection (b) of section 30C as 
precedes paragraph (1) thereof is amended to read 
as follows: 
‘‘(b) LIMITATION.—The credit allowed under sub-
section (a) with respect to all qualified alternative fuel ve-
hicle refueling property placed in service by the taxpayer
during the taxable year at a location shall not 
exceed—’’. 
(2) Subsection (c) of section 30C is amended to 
read as follows: 
‘‘(c) QUALIFIED ALTERNATIVE FUEL VEHICLE RE-
FUELING PROPERTY.—For purposes of this section, the 
term ‘qualified alternative fuel vehicle refueling property’ 
has the same meaning as the term ‘qualified clean-fuel ve-
hicle refueling property’ would have under section 179A 
if— 
‘‘(1) paragraph (1) of section 179A(d) did not 
apply to property installed on property which is used 
as the principal residence (within the meaning of 
section 121) of the taxpayer, and 
‘‘(2) only the following were treated as clean- 
burning fuels for purposes of section 179A(d): 
‘‘(A) Any fuel at least 85 percent of the 
volume of which consists of one or more of the 
following: ethanol, natural gas, compressed nat-
ural gas, liquified natural gas, liquefied petro-
leum gas, or hydrogen. 
‘‘(B) Any mixture— 
‘‘(i) which consists of two or more of 
the following: biodiesel (as defined in sec-
tion 40A(d)(1)), diesel fuel (as defined in 
section 4083(a)(3)), or kerosene, and 
‘‘(ii) at least 20 percent of the volume 
of which consists of biodiesel (as so de-
fined) determined without regard to any 
kerosene in such mixture.’’. 
(c) AMENDMENTS RELATED TO SECTION 1351 OF 
THE ACT.— 
(1) Paragraph (3) of section 41(a) is amended 
by inserting ‘‘for energy research’’ before the period 
at the end. 
(2) Paragraph (6) of section 41(f) is amended 
by adding at the end the following new subpara-
graph: 
‘‘(E) ENERGY RESEARCH.—The term ‘en-
ergy research’ does not include any research 
which is not qualified research.’’. 
(d) AMENDMENTS RELATED TO SECTION 1362 OF 
THE ACT.— 
(1)(A) Paragraph (1) of section 4041(d) is 
amended by adding at the end the following new 
sentence: ‘‘No tax shall be imposed under the pre-
ceding sentence on the sale or use of any liquid if 
tax was imposed with respect to such liquid under
section 4081 at the Leaking Underground Storage 
Tank Trust Fund financing rate.’’. 
(B) Paragraph (3) of section 4042(b) is amend-
ed to read as follows: 
‘‘(3) EXCEPTION FOR FUEL ON WHICH LEAK-
ING UNDERGROUND STORAGE TANK TRUST FUND FI-
NANCING RATE SEPARATELY IMPOSED.—The Leak-
ing Underground Storage Tank Trust Fund financ-
ing rate under paragraph (2)(B) shall not apply to 
the use of any fuel if tax was imposed with respect 
to such fuel under section 4041(d) or 4081 at the 
Leaking Underground Storage Tank Trust Fund fi-
nancing rate.’’. 
(C) Notwithstanding section 6430 of the Inter-
nal Revenue Code of 1986, a refund, credit, or pay-
ment may be made under subchapter B of chapter 
65 of such Code for taxes imposed with respect to 
any liquid after September 30, 2005, and before the 
date of the enactment of this Act under section 
4041(d)(1) or 4042 of such Code at the Leaking 
Underground Storage Tank Trust Fund financing 
rate to the extent that tax was imposed with respect 
to such liquid under section 4081 at the Leaking 
Underground Storage Tank Trust Fund financing 
rate.
(2)(A) Paragraph (5) of section 4041(d) is 
amended— 
(i) by striking ‘‘(other than with respect to 
any sale for export under paragraph (3) there-
of)’’, and 
(ii) by adding at the end the following new 
sentence: ‘‘The preceding sentence shall not 
apply with respect to subsection (g)(3) and so 
much of subsection (g)(1) as relates to vessels 
(within the meaning of section 4221(d)(3)) em-
ployed in foreign trade or trade between the 
United States and any of its possessions.’’. 
(B) Section 4082 is amended— 
(i) by striking ‘‘(other than such tax at the 
Leaking Underground Storage Tank Trust 
Fund financing rate imposed in all cases other 
than for export)’’ in subsection (a), and 
(ii) by redesignating subsections (f) and 
(g) as subsections (g) and (h), respectively, and 
by inserting after subsection (e) the following 
new subsection: 
‘‘(f) EXCEPTION
FOR
LEAKING
UNDERGROUND 
STORAGE TANK TRUST FUND FINANCING RATE.— 
‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply to the tax imposed under section 4081 at the
Leaking Underground Storage Tank Trust Fund fi-
nancing rate. 
‘‘(2) EXCEPTION
FOR
EXPORT, ETC.—Para-
graph (1) shall not apply with respect to any fuel if 
the Secretary determines that such fuel is destined 
for export or for use by the purchaser as supplies for 
vessels (within the meaning of section 4221(d)(3)) 
employed in foreign trade or trade between the 
United States and any of its possessions.’’. 
(C) Subsection (e) of section 4082 is amend-
ed— 
(i) by striking ‘‘an aircraft, the rate of tax 
under section 4081(a)(2)(A)(iii) shall be zero.’’ 
and inserting ‘‘an aircraft— 
‘‘(1) 
the 
rate 
of 
tax 
under 
section 
4081(a)(2)(A)(iii) shall be zero, and 
‘‘(2) if such aircraft is employed in foreign 
trade or trade between the United States and any of 
its possessions, the increase in such rate under sec-
tion 4081(a)(2)(B) shall be zero.’’; and 
(ii) by moving the last sentence flush with 
the margin of such subsection (following the 
paragraph (2) added by clause (i)). 
(D) Section 6430 is amended to read as follows:
‘‘SEC. 6430. TREATMENT OF TAX IMPOSED AT LEAKING UN-
DERGROUND STORAGE TANK TRUST FUND 
FINANCING RATE. 
‘‘No refunds, credits, or payments shall be made 
under this subchapter for any tax imposed at the Leaking 
Underground Storage Tank Trust Fund financing rate, 
except in the case of fuels— 
‘‘(1) which are exempt from tax under section 
4081(a) by reason of section 4082(f)(2), 
‘‘(2) which are exempt from tax under section 
4041(d) by reason of the last sentence of paragraph 
(5) thereof, or 
‘‘(3) with respect to which the rate increase 
under section 4081(a)(2)(B) is zero by reason of 
section 4082(e)(2).’’. 
(3) Paragraph (5) of section 4041(d) is amend-
ed by inserting ‘‘(b)(1)(A),’’ after ‘‘subsections’’. 
(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect as if included in the 
provisions of the Energy Policy Act of 2005 to which 
they relate. 
(2) NONAPPLICATION OF EXEMPTION FOR OFF- 
HIGHWAY BUSINESS USE.—The amendment made by
subsection (d)(3) shall apply to fuel sold for use or 
used after the date of the enactment of this Act. 
(3) AMENDMENT
MADE
BY
THE
SAFETEA– 
LU.—The 
amendment 
made 
by 
subsection 
(d)(2)(C)(ii) shall take effect as if included in sec-
tion 11161 of the SAFETEA–LU. 
SEC. 7. AMENDMENTS RELATED TO THE AMERICAN JOBS 
CREATION ACT OF 2004. 
(a) AMENDMENTS RELATED TO SECTION 339 OF 
THE ACT.— 
(1)(A) Section 45H is amended by striking sub-
section (d) and by redesignating subsections (e), (f), 
and (g) as subsections (d), (e), and (f), respectively. 
(B) Subsection (d) of section 280C is amended 
to read as follows: 
‘‘(d) CREDIT FOR LOW SULFUR DIESEL FUEL PRO-
DUCTION.—The deductions otherwise allowed under this 
chapter for the taxable year shall be reduced by the 
amount of the credit determined for the taxable year 
under section 45H(a).’’. 
(C) Subsection (a) of section 1016 is amended 
by striking paragraph (31) and by redesignating 
paragraphs (32) through (37) as paragraphs (31) 
through (36), respectively.
(2)(A) Section 45H, as amended by paragraph 
(1), is amended by adding at the end the following 
new subsection: 
‘‘(g) ELECTION TO NOT TAKE CREDIT.—No credit 
shall be determined under subsection (a) for the taxable 
year if the taxpayer elects not to have subsection (a) apply 
to such taxable year.’’. 
(B) Subsection (m) of section 6501 is amended 
by inserting ‘‘45H(g),’’ after ‘‘45C(d)(4),’’. 
(3)(A) Subsections (b)(1)(A), (c)(2), (e)(1), and 
(e)(2) of section 45H (as amended by paragraph 
(1)) and section 179B(a) are each amended by strik-
ing ‘‘qualified capital costs’’ and inserting ‘‘qualified 
costs’’. 
(B) The heading of paragraph (2) of section 
45H(c) is amended by striking ‘‘CAPITAL’’. 
(C) Subsection (a) of section 179B is amended 
by inserting ‘‘and which are properly chargeable to 
capital account’’ before the period at the end. 
(b) AMENDMENTS RELATED TO SECTION 710 OF 
THE ACT.— 
(1) Clause (ii) of section 45(c)(3)(A) is amend-
ed by striking ‘‘which is segregated from other waste 
materials and’’.
‘‘(C) CROSS REFERENCE.—For treatment 
of partnerships as leases to which section 
168(h) applies, see section 7701(e).’’. 
(2) Subparagraph (A) of section 470(d)(1) is 
amended by striking ‘‘(at any time during the lease 
term)’’ and inserting ‘‘(at all times during the lease 
term)’’. 
(d) AMENDMENTS RELATED TO SECTION 888 OF 
THE ACT.— 
(1) Subparagraph (A) of section 1092(a)(2) is 
amended by striking ‘‘and’’ at the end of clause (ii), 
by redesignating clause (iii) as clause (iv), and by in-
serting after clause (ii) the following new clause: 
‘‘(iii) if the application of clause (ii) 
does not result in an increase in the basis 
of any offsetting position in the identified 
straddle, the basis of each of the offsetting 
positions in the identified straddle shall be 
increased in a manner which— 
‘‘(I) is reasonable, consistent 
with the purposes of this paragraph, 
and consistently applied by the tax-
payer, and 
‘‘(II) results in an aggregate in-
crease in the basis of such offsetting
positions which is equal to the loss de-
scribed in clause (ii), and’’. 
(2)(A) Subparagraph (B) of section 1092(a)(2) 
is amended by adding at the end the following flush 
sentence: 
‘‘A straddle shall be treated as clearly identified 
for purposes of clause (i) only if such identifica-
tion includes an identification of the positions 
in the straddle which are offsetting with respect 
other positions in the straddle.’’. 
(B) Subparagraph (A) of section 1092(a)(2) is 
amended— 
(i) by striking ‘‘identified positions’’ in 
clause (i) and inserting ‘‘positions’’, 
(ii) by striking ‘‘identified position’’ in 
clause (ii) and inserting ‘‘position’’, and 
(iii) by striking ‘‘identified offsetting posi-
tions’’ in clause (ii) and inserting ‘‘offsetting 
positions’’. 
(C) Subparagraph (B) of section 1092(a)(3) is 
amended by striking ‘‘identified offsetting position’’ 
and inserting ‘‘offsetting position’’. 
(3) Paragraph (2) of section 1092(a) is amend-
ed by redesignating subparagraph (C) as subpara-
graph (D) and inserting after subparagraph (B) the 
following new subparagraph: 
‘‘(C) APPLICATION
TO
LIABILITIES
AND 
OBLIGATIONS.—Except as otherwise provided 
by the Secretary, rules similar to the rules of 
clauses (ii) and (iii) of subparagraph (A) shall 
apply for purposes of this paragraph with re-
spect to any position which is, or has been, a 
liability or obligation.’’. 
(4) Subparagraph (D) of section 1092(a)(2), as 
redesignated by paragraph (3), is amended by in-
serting ‘‘the rules for the application of this section 
to a position which is or has been a liability or obli-
gation, methods of loss allocation which satisfy the 
requirements of subparagraph (A)(iii),’’ before ‘‘and 
the ordering rules’’. 
(e) EFFECTIVE DATE.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall take effect as if included in the 
provisions of the American Jobs Creation Act of 
2004 to which they relate. 
(2) IDENTIFICATION REQUIREMENT OF AMEND-
MENT RELATED TO SECTION 888 OF THE AMERICAN 
JOBS
CREATION
ACT
OF
2004.—The amendment
made by subsection (d)(2)(A) shall apply to strad-
dles acquired after the date of the enactment of this 
Act. 
SEC. 
8. 
AMENDMENTS 
RELATED 
TO 
THE 
ECONOMIC 
GROWTH AND TAX RELIEF RECONCILIATION 
ACT OF 2001. 
(a) AMENDMENTS RELATED TO SECTION 617 OF 
THE ACT.— 
(1) Subclause (II) of section 402(g)(7)(A)(ii) is 
amended by striking ‘‘for prior taxable years’’ and 
inserting ‘‘permitted for prior taxable years by rea-
son of this paragraph’’. 
(2) Subparagraph (A) of section 3121(v)(1) is 
amended by inserting ‘‘or consisting of designated 
Roth contributions (as defined in section 402A(c))’’ 
before the comma at the end. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Economic Growth and Tax Relief Reconciliation Act 
of 2001 to which they relate. 
SEC. 9. AMENDMENTS RELATED TO THE TAX RELIEF EX-
TENSION ACT OF 1999. 
(a) AMENDMENT RELATED TO SECTION 507 OF THE 
ACT.—Clause (i) of section 45(e)(7)(A) is amended by
striking ‘‘placed in service by the taxpayer’’ and inserting 
‘‘originally placed in service’’. 
(b) AMENDMENT RELATED TO SECTION 542 OF THE 
ACT.—Clause (ii) of section 856(d)(9)(D) is amended to 
read as follows: 
‘‘(ii) LODGING FACILITY.—The term 
‘lodging facility’ means a— 
‘‘(I) hotel, 
‘‘(II) motel, or 
‘‘(III) other establishment more 
than one-half of the dwelling units in 
which are used on a transient basis.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the provisions 
of the Tax Relief Extension Act of 1999 to which they 
relate. 
SEC. 10. AMENDMENT RELATED TO THE INTERNAL REV-
ENUE SERVICE RESTRUCTURING AND RE-
FORM ACT OF 1998. 
(a) AMENDMENT RELATED TO SECTION 3509 OF 
THE ACT.—Paragraph (3) of section 6110(i) is amended 
by inserting ‘‘and related background file documents’’ 
after ‘‘Chief Counsel advice’’ in the matter preceding sub-
paragraph (A).