1412
(ii) subsection (c)(1)(A) of section
197 of the Internal Revenue Code of 1986
(as added by this section) (and so much of
subsection (f)(9)(A) of such section 197 as
precedes clause (i) thereof) shall be applied
with respect to the taxpayer by treating
July 25, 1991, as the date of the enact-
ment of such section, and
(iii) in applying subsection (f)(9) of
such section, with respect to any property
acquired by the taxpayer on or before the
date of the enactment of this Act, only
holding or use on July 25, 1991, shall be
taken into account.
(B) ELECTION.—An election under this
paragraph shall be made at such time and in
such manner as the Secretary of the Treasury
or his delegate may prescribe. Such an election
by any taxpayer, once made—
(i) may be revoked only with the con-
sent of the Secretary, and
(ii) shall apply to the taxpayer making
such election and any other taxpayer under
common control with the taxpayer (within
the meaning of subparagraphs (A) and (B)
1413
of section 41(f)(1) of such Code) at any
time after November 22, 1991, and on or
before the date on which such election is
made.
(3) ELECTIVE
BINDING
CONTRACT
EXCEP-
TION.—
(A) I N GENERAL.—The amendments made
by this section shall not apply to any acquisi-
tion of property by the taxpayer if—
(i) such acquisition is pursuant to a
written binding contract in effect on the
date of the enactment of this Act and at
all times thereafter before such acquisition,
(ii) an election under paragraph (2)
does not apply to the taxpayer, and
(iii) the taxpayer makes an election
under this paragraph with respect to such
contract.
(B) ELECTION.—An election under this
paragraph shall be made at such time and in
such manner as the Secretary of the Treasury
or his delegate shall prescribe. Such an election,
once made—
(i) may be revoked only with the con-
sent of the Secretary, and
1414
(ii) shall apply to all property ac-
quired pursuant to the contract with re-
spect to which such election was made.
(h) ANNUAL REPORTS.—The Secretary of the Treas-
ury shall submit annual reports to the Committee on Ways
and Means of the House of Representatives and the Com-
mittee on Finance of the Senate on the implementation
and effects of the amendments made by this section, in-
cluding the effects of such amendments on merger and
acquisition activities. The first such annual report shall
be submitted on or before December 31, 1994.
(i) A NNUAL REPORTS ON OUTSTANDING CASES.—
The Secretary of the Treasury shall submit annual reports
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate regarding the volume of cases still outstanding that
involve disputes regarding the amortization of intangibles,
progress made in resolving such cases, efforts made to co-
ordinate settlement proceedings, and factors inhibiting the
resolution of such cases. The report shall also address the
impact of the amendments made by this section on the
volume of disputes regarding the amortization of intangi-
bles. The first such annual report shall be submitted on
or before December 31, 1994.
1415
SEC. 14262. TREATMENT OF CERTAIN PAYMENTS TO RE-
TIRED OR DECEASED PARTNER.
(a) S ECTION 736(b) NOT TO APPLY IN CERTAIN
CASES.—Subsection (b) of section 736 (relating to pay-
ments for interest in partnership) is amended by adding
at the end thereof the following new paragraph:
‘‘(3) LIMITATION ON APPLICATION OF PARA-
GRAPH (2).—Paragraph (2) shall apply only if—
‘‘(A) capital is not a material income-pro-
ducing factor for the partnership, and
‘‘(B) the retiring or deceased partner was
a general partner in the partnership.’’
(b) L IMITATION ON DEFINITION OF UNREALIZED
RECEIVABLES.—
(1) IN
GENERAL.—Subsection (c) of section
751 (defining unrealized receivables) is amended—
(A) by striking ‘‘sections 731, 736, and
741’’ each place they appear and inserting ‘‘,
sections 731 and 741 (but not for purposes of
section 736)’’, and
(B) by striking ‘‘section 731, 736, or 741’’
each place it appears and inserting ‘‘section
731 or 741’’.
(2) TECHNICAL AMENDMENTS.—
1416
(A) Subsection (e) of section 751 is
amended by striking ‘‘sections 731, 736, and
741’’ and inserting ‘‘sections 731 and 741’’.
(B) Section 736 is amended by striking
subsection (c).
(c) EFFECTIVE DATE.—
(1) I N GENERAL.—The amendments made by
this section shall apply in the case of partners retir-
ing or dying on or after January 5, 1993.
(2) 
BINDING
CONTRACT
EXCEPTION.—The
amendments made by this section shall not apply to
any partner retiring on or after January 5, 1993, if
a written contract to purchase such partner’s inter-
est in the partnership was binding on January 4,
1993, and at all times thereafter before such pur-
chase.
PART VII—MISCELLANEOUS PROVISIONS
SEC. 14271. SUBSTANTIATION REQUIREMENT FOR DEDUC-
TION OF CERTAIN CHARITABLE CONTRIBU-
TIONS.
(a) 
SUBSTANTIATION
REQUIREMENT.—Section
170(f) (providing special rules relating to the deduction
of charitable contributions and gifts) is amended by add-
ing at the end the following new paragraph:
1417
‘‘(8) SUBSTANTIATION REQUIREMENT FOR CER-
TAIN CONTRIBUTIONS.—
‘‘(A) G ENERAL RULE.—No deduction shall
be allowed under subsection (a) for any con-
tribution of $750 or more unless the taxpayer
substantiates the contribution by a contempora-
neous written acknowledgment of the contribu-
tion by the donee organization that meets the
requirements of subparagraph (B).
‘‘(B) CONTENT OF ACKNOWLEDGMENT.—
An acknowledgment meets the requirements of
this subparagraph if it provides information
sufficient to substantiate the amount of the de-
ductible contribution. If the contribution was
made by means of a payment part of which con-
stituted consideration for goods or services pro-
vided by the donee organization, the acknowl-
edgment must provide a good faith estimate of
the value of such goods or services.
‘‘(C) CONTEMPORANEOUS.—For purposes
of subparagraph (A), an acknowledgment shall
be considered to be contemporaneous if the tax-
payer obtains the acknowledgment on or before
the earlier of—
1418
‘‘(i) the date on which the taxpayer
files a return for the taxable year in which
the contribution was made, or
‘‘(ii) the due date (including exten-
sions) for filing such return.
‘‘(D) SUBSTANTIATION
NOT
REQUIRED
FOR
CONTRIBUTIONS
REPORTED
BY
THE
DONEE
ORGANIZATION.—Subparagraph 
(A)
shall not apply to a contribution if the donee
organization files a return, on such form and in
accordance with such regulations as the Sec-
retary may prescribe, which includes the infor-
mation described in subparagraph (B) with re-
spect to the contribution.
‘‘(E) R EGULATIONS.—The Secretary shall
prescribe such regulations as may be necessary
or appropriate to carry out the purposes of this
paragraph, including regulations that may pro-
vide that some or all of the requirements of this
paragraph do not apply in appropriate cases.’’
(b) E FFECTIVE DATE.—The provisions of this sec-
tion shall apply to contributions made on or after January
1, 1994.
1419
SEC. 14272. DISCLOSURE RELATED TO QUID PRO QUO
CONTRIBUTIONS.
(a) D ISCLOSURE REQUIREMENT.—Subchapter B of
chapter 61 (relating to information and returns) is amend-
ed by redesignating section 6115 as section 6116 and by
inserting after section 6114 the following new section:
‘‘SEC. 6115. DISCLOSURE RELATED TO QUID PRO QUO CON-
TRIBUTIONS.
‘‘(a) DISCLOSURE REQUIREMENT.—If an organiza-
tion described in section 170(c) (other than paragraph (1)
thereof) receives a quid pro quo contribution, the organi-
zation shall, in connection with the solicitation or receipt
of the contribution—
‘‘(1) inform the donor that the amount of the
contribution that is deductible for Federal income
tax purposes is limited to the excess of the amount
of any money and the value of any property other
than money contributed by the donor over the value
of the goods or services provided by the organiza-
tion, and
‘‘(2) provide the donor with a good faith esti-
mate of the value of such goods or services.
‘‘(b) QUID PRO QUO CONTRIBUTION.—For purposes
of this section, the term ‘quid pro quo contribution’ means
a payment made partly as a contribution and partly in
1420
consideration for goods or services provided to the payor
by the donee organization.’’
(b) P ENALTY FOR FAILURE TO DISCLOSE.—Part I
of subchapter B of chapter 68 (relating to assessable pen-
alties) is amended by inserting after section 6713 the fol-
lowing new section:
‘‘SEC. 6714. FAILURE TO MEET DISCLOSURE REQUIRE-
MENTS APPLICABLE TO QUID PRO QUO CON-
TRIBUTIONS.
‘‘(a) I MPOSITION OF PENALTY.—If an organization
fails to meet the disclosure requirement of section 6115
with respect to a quid pro quo contribution, such organiza-
tion shall pay a penalty of $10 for each contribution in
respect of which the organization fails to make the re-
quired disclosure, except that the total penalty imposed
by this subsection with respect to a particular fundraising
event or mailing shall not exceed $5,000.
‘‘(b) R EASONABLE CAUSE EXCEPTION.—No penalty
shall be imposed under this section with respect to any
failure if it is shown that such failure is due to reasonable
cause.’’
(c) CLERICAL AMENDMENTS.—
(1) The table for subchapter B of chapter 61
is amended by striking the item relating to section
6115 and inserting the following new item:
1421
‘‘Sec. 6115. Disclosure related to quid pro quo contributions.
‘‘Sec. 6116. Cross reference.’’
(2) The table for part I of subchapter B of
chapter 68 is amended by inserting after the item
for section 6713 the following new item:
‘‘Sec. 6714. Failure to meet disclosure requirements applicable to
quid pro quo contributions.’’
(d) E FFECTIVE DATE.—The provisions of this sec-
tion shall apply to quid pro quo contributions made on
or after January 1, 1994.
SEC. 14273. DISALLOWANCE OF INTEREST ON CERTAIN
OVERPAYMENTS OF TAX.
(a) GENERAL RULE.—Subsection (e) of section 6611
is amended to read as follows:
‘‘(e) DISALLOWANCE
OF INTEREST
ON CERTAIN
OVERPAYMENTS.—
‘‘(1) REFUNDS WITHIN 45 DAYS AFTER RETURN
IS FILED.—If any overpayment of tax imposed by
this title is refunded within 45 days after the last
day prescribed for filing the return of such tax (de-
termined without regard to any extension of time for
filing the return) or, in the case of a return filed
after such last date, is refunded within 45 days after
the date the return is filed, no interest shall be al-
lowed under subsection (a) on such overpayment.
‘‘(2) REFUNDS AFTER CLAIM FOR CREDIT OR
REFUND.—If—
1422
‘‘(A) the taxpayer files a claim for a credit
or refund for any overpayment of tax imposed
by this title, and
‘‘(B) such overpayment is refunded within
45 days after such claim is filed,
no interest shall be allowed on such overpayment
from the date the claim is filed until the day the re-
fund is made.
‘‘(3) IRS INITIATED ADJUSTMENTS.—If an ad-
justment initiated by the Secretary, results in a re-
fund or credit of an overpayment, interest on such
overpayment shall be computed by subtracting 45
days from the number of days interest would other-
wise be allowed with respect to such overpayment.’’
(b) EFFECTIVE DATES.—
(1) Paragraph (1) of section 6611(e) of the In-
ternal Revenue Code of 1986 (as amended by sub-
section (a)) shall apply in the case of returns the
due date for which (determined without regard to
extensions) is on or after January 1, 1994.
(2) Paragraph (2) of section 6611(e) of such
Code (as so amended) shall apply in the case of
claims for credit or refund of any overpayment filed
on or after January 1, 1995, regardless of the tax-
able period to which such refund relates.
1423
(3) Paragraph (3) of section 6611(e) of such
Code (as so amended) shall apply in the case of any
refund paid on or after January 1, 1995, regardless
of the taxable period to which such refund relates.
SEC. 14274. DENIAL OF DEDUCTION RELATING TO TRAVEL
EXPENSES.
(a) IN GENERAL.—Section 274(m) (relating to addi-
tional limitations on travel expenses) is amended by add-
ing at the end thereof the following new paragraph:
‘‘(3) T RAVEL EXPENSES OF SPOUSE, DEPEND-
ENT, OR OTHERS.—No deduction shall be allowed
under this chapter (other than section 217) for trav-
el expenses paid or incurred with respect to a
spouse, dependent, or other individual accompanying
the taxpayer (or an officer or employee of the tax-
payer) on business travel, unless—
‘‘(A) the spouse, dependent, or other indi-
vidual is an employee of the taxpayer,
‘‘(B) the travel of the spouse, dependent,
or other individual is for a bona fide business
purpose, and
‘‘(C) such expenses would otherwise be de-
ductible by the spouse, dependent, or other indi-
vidual.’’
1425
‘‘Subchapter U—Designation and Treatment
of Empowerment Zones and Enterprise
Communities
‘‘Part I. Designation.
‘‘Part II. Incentives for empowerment zones and enterprise com-
munities.
‘‘Part III. Additional incentives for empowerment zones.
‘‘Part IV. Regulations.
‘‘PART I—DESIGNATION
‘‘Sec. 1391. Designation procedure.
‘‘Sec. 1392. Eligibility criteria.
‘‘Sec. 1393. Definitions and special rules.
‘‘SEC. 1391. DESIGNATION PROCEDURE.
‘‘(a) IN GENERAL.—From among the areas nomi-
nated for designation under this section, the appropriate
Secretaries may, in consultation with the Enterprise
Board, designate empowerment zones and enterprise
communities.
‘‘(b) NUMBER OF DESIGNATIONS.—
‘‘(1) ENTERPRISE COMMUNITIES.—The appro-
priate Secretaries may designate in the aggregate
100 nominated areas as enterprise communities
under this section, subject to the availability of eligi-
ble nominated areas. Of that number, not more than
65 may be designated in urban areas, not more than
30 may be designated in rural areas, and not more
than 5 may be designated by the Secretary of the
Interior in Indian reservations.
1426
‘‘(2) E MPOWERMENT ZONES.—The appropriate
Secretaries may designate in the aggregate 10 nomi-
nated areas as empowerment zones under this sec-
tion, subject to the availability of eligible nominated
areas. Of that number, not more than 6 may be des-
ignated in urban areas, not more than 3 may be des-
ignated in rural areas, and not more than 1 may be
designated by the Secretary of the Interior in an In-
dian reservation. If 6 empowerment zones are des-
ignated in urban areas, no less than 1 shall be des-
ignated in an urban area the most populous city of
which has a population of 500,000 or less. The Sec-
retary of Housing and Urban Development shall des-
ignate empowerment zones located in urban areas in
such a manner that the aggregate population of all
such zones does not exceed 750,000.
‘‘(c) PERIOD DESIGNATIONS MAY BE MADE.—A des-
ignation may be made under this section only after 1993
and before 1996.
‘‘(d) P ERIOD FOR WHICH DESIGNATION IS IN EF-
FECT.—
‘‘(1) I N GENERAL.—Any designation under this
section shall remain in effect during the period be-
ginning on the date of the designation and ending
on the earliest of—
1427
‘‘(A) the close of the 10th calendar year
beginning on or after such date of designation,
‘‘(B) the termination date designated by
the State and local governments as provided for
in their nomination, or
‘‘(C) the date the appropriate Secretary re-
vokes the designation.
‘‘(2) REVOCATION OF DESIGNATION.—
‘‘(A) I N GENERAL.—The appropriate Sec-
retary, in consultation with the Enterprise
Board, may revoke the designation under this
section of an area if such Secretary determines
that the local government or the State in which
it is located—
‘‘(i) has modified the boundaries of
the area, or
‘‘(ii) is not complying substantially
with, or fails to make progress in achieving
the benchmarks set forth in, the strategic
plan under subsection (f)(2).
‘‘(B) APPLICABLE PROCEDURES.—A des-
ignation may be revoked by the appropriate
Secretary under subparagraph (A) only after a
hearing on the record involving officials of the
State or local government involved.
1428
‘‘(e) LIMITATIONS ON DESIGNATIONS.—An area may
be designated under subsection (a) only if—
‘‘(1) the area is nominated by 1 or more local
governments and the State or States in which it is
located for designation under this section,
‘‘(2) such State or States and the local govern-
ments have the authority—
‘‘(A) to nominate the area for designation
under this section, and
‘‘(B) to provide the assurances described in
paragraph (3),
‘‘(3) such State or States and the local govern-
ments provide written assurances satisfactory to the
appropriate Secretary that the strategic plan de-
scribed in the application under subsection (f)(2) for
such area will be implemented,
‘‘(4) the appropriate Secretary determines that
any information furnished is reasonably accurate,
and
‘‘(5) such State or States and local govern-
ments certify that no portion of the area nominated
is already included in an empowerment zone or in an
enterprise community or in an area otherwise nomi-
nated to be designated under this section.
1429
‘‘(f) APPLICATION.—An application for designation
as an empowerment zone or as an enterprise community
shall—
‘‘(1) demonstrate that the nominated area sat-
isfies the eligibility criteria described in section
1392,
‘‘(2) include a strategic plan for accomplishing
the purposes of this subchapter that—
‘‘(A) describes the coordinated economic,
human, community, and physical development
plan and related activities proposed for the
nominated area,
‘‘(B) describes the process by which the af-
fected community is a full partner in the proc-
ess of developing and implementing the plan
and the extent to which local institutions and
organizations have contributed to the planning
process,
‘‘(C) identifies the amount of State, local,
and private resources that will be available in
the nominated area and the private/public part-
nerships to be used, which may include partici-
pation by, and cooperation with, universities,
medical centers, and other private and public
entities,