(F) Section 882(a)(1) is amended by strik-
ing ‘‘, 59A’’. 
(G) Section 936(a)(3) is amended by strik-
ing subparagraph (A) and by redesignating sub-
paragraphs (B), (C), and (D) as subparagraphs 
(A), (B), and (C), respectively. 
(H) Section 1561(a) is amended— 
(i) by inserting ‘‘and’’ at the end of 
paragraph (2), by striking ‘‘, and’’ at the 
end of paragraph (3) and inserting a pe-
riod, and by striking paragraph (4), and 
(ii) by striking ‘‘, the amount speci-
fied in paragraph (3), and the amount 
specified in paragraph (4)’’ and inserting 
‘‘and the amount specified in paragraph 
(3)’’. 
(I) Section 4611(e) is amended— 
(i) by striking ‘‘section 59A, this sec-
tion,’’ in paragraph (2)(B) and inserting 
‘‘this section’’, and 
(ii) in paragraph (3)(A)— 
(I) by striking ‘‘section 59A,’’, 
and 
(II) by striking the comma after 
‘‘rate)’’. 
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(J) Section 6425(c)(1)(A) is amended by 
inserting ‘‘plus’’ at end of clause (i), by striking 
‘‘plus’’ and inserting ‘‘over’’ at the end of 
clause (ii), and by striking clause (iii). 
(K) Section 6655 is amended— 
(i) in subsections (e)(2)(A)(i) and 
(e)(2)(B)(i), by striking ‘‘taxable income, 
alternative minimum taxable income, and 
modified alternative minimum taxable in-
come’’ and inserting ‘‘taxable income and 
alternative minimum taxable income’’, 
(ii) in subsection (e)(2)(B), by strik-
ing clause (iii), and 
(iii) in subsection (g)(1)(A), by insert-
ing ‘‘plus’’ at the end of clause (ii), by 
striking clause (iii), and by redesignating 
clause (iv) as clause (iii). 
(L) Section 9507(b)(1) is amended by 
striking ‘‘59A,’’. 
(13) STANDARD DEDUCTION.— 
(A) So much of paragraph (1) of section 
63(c) as follows ‘‘the sum of—’’ is amended to 
read as follows: 
‘‘(A) the basic standard deduction, and 
‘‘(B) the additional standard deduction.’’. 
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(B) Subsection (c) of section 63 is amend-
ed by striking paragraphs (7), (8), and (9). 
(14) ANNUITIES; CERTAIN PROCEEDS OF EN-
DOWMENT AND LIFE INSURANCE CONTRACTS.—Sec-
tion 72 is amended— 
(A) in subsection (c)(4), by striking ‘‘; ex-
cept that if such date was before January 1, 
1954, then the annuity starting date is January 
1, 1954’’, and 
(B) in subsection (g)(3), by striking ‘‘Jan-
uary 1, 1954, or’’ and ‘‘, whichever is later’’. 
(15) UNEMPLOYMENT
COMPENSATION.—Sec-
tion 85 is amended by striking subsection (c). 
(16) ACCIDENT AND HEALTH PLANS.—Section 
105(f) is amended by striking ‘‘or (d)’’. 
(17) FLEXIBLE SPENDING ARRANGEMENTS.— 
Section 106(c)(1) is amended by striking ‘‘Effective 
on and after January 1, 1997, gross’’ and inserting 
‘‘Gross’’. 
(18) CERTAIN
COMBAT
ZONE
COMPENSATION 
OF MEMBERS OF THE ARMED FORCES.—Subsection 
(c) of section 112 is amended— 
(A) by striking ‘‘(after June 24, 1950)’’ in 
paragraph (2), and 
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(B) by striking ‘‘such zone;’’ and all that 
follows in paragraph (3) and inserting ‘‘such 
zone.’’. 
(19) LEGAL SERVICE PLANS.— 
(A) Part III of subchapter B of chapter 1 
is amended by striking section 120 (and by 
striking the item relating to such section in the 
table of sections for such subpart). 
(B)(i) Section 414(n)(3)(C) is amended by 
striking ‘‘120,’’. 
(ii) Section 414(t)(2) is amended by strik-
ing ‘‘120,’’. 
(iii) Section 501(c) is amended by striking 
paragraph (20). 
(iv) Section 3121(a) is amended by strik-
ing paragraph (17). 
(v) Section 3231(e) is amended by striking 
paragraph (7). 
(vi) Section 3306(b) is amended by strik-
ing paragraph (12). 
(vii) Section 6039D(d)(1) is amended by 
striking ‘‘120,’’. 
(viii) Section 209(a)(14) of the Social Se-
curity Act is amended— 
(I) by striking subparagraph (B), and 
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(II) by striking ‘‘(14)(A)’’ and insert-
ing ‘‘(14)’’. 
(20) 
PRINCIPAL
RESIDENCE.—Section 
121(b)(3) is amended— 
(A) by striking subparagraph (B), and 
(B) in subparagraph (A), by striking ‘‘(A) 
IN GENERAL.—’’ and moving the text 2 ems to 
the left. 
(21) CERTAIN REDUCED UNIFORMED SERVICES 
RETIREMENT
PAY.—Section 122(b)(1) is amended 
by striking ‘‘after December 31, 1965,’’. 
(22) 
GREAT
PLAINS
CONSERVATION
PRO-
GRAM.—Section 126(a) is amended by striking para-
graph (6) and by redesignating paragraphs (7), (8), 
(9), and (10) as paragraphs (6), (7), (8), and (9), 
respectively. 
(23) TREBLE DAMAGE PAYMENTS UNDER THE 
ANTITRUST
LAW.—Section 162(g) is amended by 
striking the last sentence. 
(24) STATE LEGISLATORS’ TRAVEL EXPENSES 
AWAY
FROM
HOME.—Paragraph (4) of section 
162(h) is amended by striking ‘‘For taxable years 
beginning after December 31, 1980, this’’ and in-
serting ‘‘This’’. 
(25) INTEREST.— 
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(A) Section 163 is amended— 
(i) by striking paragraph (6) of sub-
section (d), and 
(ii) by striking paragraph (5) of sub-
section (h). 
(B) Section 56(b)(1)(C) is amended by 
striking clause (ii) and by redesignating clauses 
(iii), (iv), and (v) as clauses (ii), (iii), and (iv), 
respectively. 
(26) QUALIFIED MOTOR VEHICLE TAXES.—Sec-
tion 164, as amended by section 209(c) of this Act, 
is amended by striking subsections (a)(6) and (b)(6). 
(27) DISASTER LOSSES.— 
(A) Subsection (h) of section 165 is 
amended by striking paragraph (3) and by re-
designating paragraphs (4) and (5) as para-
graphs (3) and (4), respectively. 
(B) Paragraph (3) of section 165(h), as so 
redesignated, is amended by striking ‘‘para-
graphs (2) and (3)’’ and inserting ‘‘paragraph 
(2)’’. 
(C) Subsection (i) of section 165 is amend-
ed— 
(i) in paragraph (1)— 
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(A) Section 172, as amended by section 
211(c)(1)(B) of this Act, is amended— 
(i) by striking subparagraphs (D), 
(H), (I), and (J) of subsection (b)(1) and 
by redesignating subparagraphs (E), (F), 
and (G) as subparagraphs (D), (E), and 
(F), respectively, and 
(ii) by striking subsections (g) and (j) 
and by redesignating subsections (h), (i), 
and (k) as subsections (g), (h), and (i), re-
spectively. 
(B) Each of the following provisions of sec-
tion 172 (as amended by section 211(c)(1)(B) 
of this Act and as redesignated by subpara-
graph (A)) are amended as follows: 
(i) By striking ‘‘ending after August 
2, 1989’’ in subsection (b)(1)(D)(i)(II). 
(ii) By striking ‘‘subsection (h)’’ in 
subsection 
(b)(1)(D)(ii) 
and 
inserting 
‘‘subsection (g)’’. 
(iii) 
By 
striking 
‘‘section 
165(h)(3)(C)(i)’’ 
in 
subsection 
(b)(1)(E)(ii)(II) and inserting ‘‘section 
165(i)(5)’’. 
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(iv) By striking ‘‘subsection (i)’’ and 
all that follows in the last sentence of sub-
section (b)(1)(E)(ii) and inserting ‘‘sub-
section (h)).’’. 
(v) By striking ‘‘subsection (i)’’ in 
subsection (b)(1)(F) and inserting ‘‘sub-
section (h)’’. 
(vi) By striking subparagraph (F) of 
paragraph (2) of subsection (g). 
(vii) 
By 
striking 
‘‘subsection 
(b)(1)(E)’’ each place it appears in sub-
section (g)(4) and inserting ‘‘subsection 
(b)(1)(D)’’. 
(viii) By striking the last sentence of 
subsection (h)(1). 
(ix) 
By 
striking 
‘‘subsection 
(b)(1)(G)’’ each place it appears in sub-
section (h)(3) and inserting ‘‘subsection 
(b)(1)(F)’’. 
(C) Subsection (d) of section 56 is amend-
ed by striking paragraph (3). 
(D) Paragraph (5) of section 382(l) is 
amended by striking subparagraph (F) and by 
redesignating subparagraphs (G) and (H) as 
subparagraphs (F) and (G), respectively. 
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(31) RESEARCH AND EXPERIMENTAL EXPENDI-
TURES.—Subparagraph (A) of section 174(a)(2) is 
amended to read as follows: 
‘‘(A) WITHOUT
CONSENT.—A taxpayer 
may, without the consent of the Secretary, 
adopt the method provided in this subsection 
for his first taxable year for which expenditures 
described in paragraph (1) are paid or in-
curred.’’. 
(32) AMORTIZATION
OF
CERTAIN
RESEARCH 
AND
EXPERIMENTAL
EXPENDITURES.—Paragraph 
(2) of section 174(b) is amended by striking ‘‘begin-
ning after December 31, 1953’’. 
(33) SOIL AND WATER CONSERVATION EXPEND-
ITURES.—Paragraph (1) of section 175(d) is amend-
ed to read as follows: 
‘‘(1) WITHOUT
CONSENT.—A taxpayer may, 
without the consent of the Secretary, adopt the 
method provided in this section for the taxpayer’s 
first taxable year for which expenditures described in 
subsection (a) are paid or incurred.’’. 
(34) CLEAN-FUEL VEHICLES.— 
(A) Part VI of subchapter A of chapter 1 
is amended by striking section 179A (and by 
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striking the item relating to such section in the 
table of sections for such part). 
(B) Section 30C(e) is amended by adding 
at the end the following: 
‘‘(7) REFERENCE.—For purposes of this sec-
tion, any reference to section 179A shall be treated 
as a reference to such section as in effect imme-
diately before its repeal.’’. 
(C) Section 62(a) is amended by striking 
paragraph (14). 
(D) Section 263(a)(1) is amended by strik-
ing subparagraph (H). 
(E) Section 280F(a)(1) is amended by 
striking subparagraph (C). 
(F) Section 312(k)(3) is amended by strik-
ing ‘‘179A,’’ each place it appears. 
(G) Section 1016(a) is amended by strik-
ing paragraph (24). 
(H) Section 1245(a) is amended by strik-
ing ‘‘179A,’’ each place it appears in para-
graphs (2)(C) and (3)(C). 
(35) QUALIFIED
DISASTER
EXPENSES.—Part 
VI of subchapter A of chapter 1 is amended by 
striking section 198A (and by striking the item re-
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lating to such section in the table of sections for 
such part). 
(36) ACTIVITIES NOT ENGAGED IN FOR PROF-
IT.—Section 183(e)(1) is amended by striking the 
last sentence. 
(37) DOMESTIC PRODUCTION ACTIVITIES.— 
(A) Subsection (a) of section 199 is 
amended— 
(i) by striking paragraph (2), 
(ii) by redesignating subparagraphs 
(A) and (B) of paragraph (1) as para-
graphs (1) and (2), respectively, and by 
moving paragraphs (1) and (2) (as so re-
designated) 2 ems to the left, and 
(iii) by striking ‘‘ALLOWANCE OF DE-
DUCTION.—’’ and all that follows through 
‘‘There shall be allowed’’ and inserting the 
following: 
‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be 
allowed’’. 
(B) Paragraphs (2) and (6)(B) of section 
199(d) 
are 
each 
amended 
by 
striking 
‘‘(a)(1)(B)’’ and inserting ‘‘(a)(2)’’. 
(38) RETIREMENT SAVINGS.— 
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(A) Subparagraph (A) of section 219(b)(5) 
is amended to read as follows: 
‘‘(A) 
IN
GENERAL.—The 
deductible 
amount is $5,000.’’. 
(B) Clause (ii) of section 219(b)(5)(B) is 
amended to read as follows: 
‘‘(ii) APPLICABLE AMOUNT.—For pur-
poses of clause (i), the applicable amount 
is $1,000.’’. 
(C) Paragraph (5) of section 219(b) is 
amended by striking subparagraph (C) and by 
redesignating subparagraph (D) as subpara-
graph (C). 
(D) Clause (ii) of section 219(g)(2)(A) is 
amended by striking ‘‘for a taxable year begin-
ning after December 31, 2006’’. 
(E) Section 219(g)(3)(B) is amended by 
striking clauses (i) and (ii) and inserting the 
following: 
‘‘(i) In the case of a taxpayer filing a 
joint return, $80,000. 
‘‘(ii) In the case of any other taxpayer 
(other than a married individual filing a 
separate return), $50,000.’’. 
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(F) Paragraph (8) of section 219(g) is 
amended by striking ‘‘the dollar amount in the 
last row of the table contained in paragraph 
(3)(B)(i), the dollar amount in the last row of 
the table contained in paragraph (3)(B)(ii), and 
the dollar amount contained in paragraph 
(7)(A),’’ and inserting ‘‘each of the dollar 
amounts in paragraphs (3)(B)(i), (3)(B)(ii), 
and (7)(A)’’. 
(39) REPORTS
REGARDING
QUALIFIED
VOL-
UNTARY RETIREMENT CONTRIBUTIONS.— 
(A) Section 219 is amended by striking 
paragraph (4) of subsection (f) and subsection 
(h). 
(B) Section 6652 is amended by striking 
subsection (g). 
(40) INTEREST ON EDUCATION LOANS.—Para-
graph (1) of section 221(b) is amended by striking 
‘‘shall not exceed’’ and all that follows and inserting 
‘‘shall not exceed $2,500.’’. 
(41) DIVIDENDS RECEIVED ON CERTAIN PRE-
FERRED STOCK; AND DIVIDENDS PAID ON CERTAIN 
PREFERRED STOCK OF PUBLIC UTILITIES.— 
(A) Sections 244 and 247 are hereby re-
pealed, and the table of sections for part VIII 
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of subchapter B of chapter 1 is amended by 
striking the items relating to sections 244 and 
247. 
(B) Paragraph (5) of section 172(d) is 
amended to read as follows: 
‘‘(5) COMPUTATION OF DEDUCTION FOR DIVI-
DENDS RECEIVED.—The deductions allowed by sec-
tion 243 (relating to dividends received by corpora-
tions) and 245 (relating to dividends received from 
certain foreign corporations) shall be computed with-
out regard to section 246(b) (relating to limitation 
on aggregate amount of deductions).’’. 
(C) Paragraph (1) of section 243(c) is 
amended to read as follows: 
‘‘(1) IN GENERAL.—In the case of any dividend 
received from a 20-percent owned corporation, sub-
section (a)(1) shall be applied by substituting ‘80 
percent’ for ‘70 percent’.’’. 
(D) Section 243(d) is amended by striking 
paragraph (4). 
(E) Section 246 is amended— 
(i) by striking ‘‘, 244,’’ in subsection 
(a)(1), 
(ii) in subsection (b)(1)— 
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(I) 
by 
striking 
‘‘sections 
243(a)(1), 244(a),’’ and inserting 
‘‘section 243(a)(1)’’, 
(II) by striking ‘‘244(a),’’ the 
second place it appears, and 
(III) by striking ‘‘subsection (a) 
or (b) of section 245, and 247,’’ and 
inserting ‘‘and subsection (a) or (b) of 
section 245,’’, and 
(iii) by striking ‘‘, 244,’’ in subsection 
(c)(1). 
(F) Section 246A is amended by striking 
‘‘, 244,’’ both places it appears in subsections 
(a) and (e). 
(G) Sections 263(g)(2)(B)(iii), 277(a), 
301(e)(2), 469(e)(4), 512(a)(3)(A), subpara-
graphs (A), (C), and (D) of section 805(a)(4), 
805(b)(5), 
812(e)(2)(A), 
815(c)(2)(A)(iii), 
832(b)(5), 833(b)(3)(E), and 1059(b)(2)(B) are 
each amended by striking ‘‘, 244,’’ each place 
it appears. 
(H) Section 1244(c)(2)(C) is amended by 
striking ‘‘244,’’. 
(I) Section 805(a)(4)(B) is amended by 
striking ‘‘, 244(a),’’ each place it appears. 
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(J) Section 810(c)(2)(B) is amended by 
striking ‘‘244 (relating to dividends on certain 
preferred stock of public utilities),’’. 
(K) The amendments made by this para-
graph shall not apply to preferred stock issued 
before October 1, 1942 (determined in the same 
manner as under section 247 of the Internal 
Revenue Code of 1986 as in effect before its re-
peal by such amendments). 
(42) 
ORGANIZATION
EXPENSES.—Section 
248(c) is amended by striking ‘‘beginning after De-
cember 31, 1953,’’ and by striking the last sentence. 
(43) BOND
REPURCHASE
PREMIUM.—Section 
249(b)(1) is amended by striking ‘‘, in the case of 
bonds or other evidences of indebtedness issued after 
February 28, 1913,’’. 
(44) AMOUNT
OF
GAIN
WHERE
LOSS
PRE-
VIOUSLY DISALLOWED.—Section 267(d) is amended 
by striking ‘‘(or by reason of section 24(b) of the In-
ternal Revenue Code of 1939)’’ in paragraph (1), by 
striking ‘‘after December 31, 1953,’’ in paragraph 
(2), by striking the second sentence, and by striking 
‘‘or by reason of section 118 of the Internal Revenue 
Code of 1939’’ in the last sentence. 
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(45) ACQUISITIONS MADE TO EVADE OR AVOID 
INCOME TAX.—Paragraphs (1) and (2) of section 
269(a) are each amended by striking ‘‘or acquired 
on or after October 8, 1940,’’. 
(46) MEALS
AND
ENTERTAINMENT.—Para-
graph (3) of section 274(n) is amended— 
(A) by striking ‘‘(A) IN GENERAL.—’’, 
(B) by striking ‘‘substituting ‘the applica-
ble percentage’ for’’ and inserting ‘‘substituting 
‘80 percent’ for’’, and 
(C) by striking subparagraph (B). 
(47) INTEREST ON INDEBTEDNESS INCURRED 
BY CORPORATIONS TO ACQUIRE STOCK OR ASSETS 
OF ANOTHER CORPORATION.— 
(A) Section 279 is amended— 
(i) by striking ‘‘after December 31, 
1967,’’ in subsection (a)(2), 
(ii) by striking ‘‘after October 9, 
1969,’’ in subsection (b), 
(iii) by striking ‘‘after October 9, 
1969, and’’ in subsection (d)(5), and 
(iv) by striking subsection (i) and re-
designating subsection (j) as subsection (i). 
(B) The amendments made by this para-
graph shall not— 
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(i) apply to obligations issued on or 
before October 9, 1969 (determined in the 
same manner as under section 279 of the 
Internal Revenue Code of 1986 as in effect 
before such amendments), and 
(ii) be construed to require interest on 
obligations issued on or before December 
31, 1967, to be taken into account under 
section 279(a)(2) of such Code (as in ef-
fect after such amendments). 
(48) BANK HOLDING COMPANIES.— 
(A) Clause (iii) of section 304(b)(3)(D) is 
repealed. 
(B) The heading of subparagraph (D) of 
section 304(b)(3) is amended by striking ‘‘AND 
SPECIAL RULE’’. 
(49) EFFECT
ON
EARNINGS
AND
PROFITS.— 
Subsection (d) of section 312 is amended by striking 
paragraph (2) and redesignating paragraph (3) as 
paragraph (2). 
(50) DISQUALIFIED STOCK.—Paragraph (3) of 
section 355(d) is amended by striking ‘‘after Octo-
ber 9, 1990, and’’ each place it appears. 
(51) BASIS TO CORPORATIONS.—Section 362 is 
amended by striking ‘‘on or after June 22, 1954’’ in 
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subsection (a) and by striking ‘‘, on or after June 
22, 1954,’’ each place it appears in subsection (c). 
(52) TEMPORARY
WAIVER
OF
MINIMUM
RE-
QUIRED
DISTRIBUTION.—Section 
401(a)(9) 
is 
amended by striking subparagraph (H). 
(53) INDIVIDUAL
RETIREMENT
ACCOUNTS.— 
Clause (i) of section 408(p)(2)(E) is amended to 
read as follows: 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph 
(A)(ii), 
the 
applicable 
amount is $10,000.’’. 
(54) TAX CREDIT EMPLOYEE STOCK OWNER-
SHIP PLANS.—Section 409 is amended by striking 
subsection (q). 
(55) CATCH-UP
CONTRIBUTIONS.—Clauses (i) 
and (ii) of section 414(v)(2)(B) are amended to read 
as follows: 
‘‘(i) In the case of an applicable em-
ployer plan other than a plan described in 
section 401(k)(11) or 408(p), the applica-
ble dollar amount is $5,000. 
‘‘(ii) In the case of an applicable em-
ployer plan described in section 401(k)(11) 
or 408(p), the applicable dollar amount is 
$2,500.’’. 
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(56) EMPLOYEE
STOCK
PURCHASE
PLANS.— 
Section 423(a) is amended by striking ‘‘after De-
cember 31, 1963,’’. 
(57) PENSION RELATED TRANSITION RULES.— 
(A) Section 402(g)(1)(B) is amended by 
striking ‘‘shall be’’ and all that follows and in-
serting ‘‘is $15,000.’’. 
(B)(i) 
Subparagraph 
(D) 
of 
section 
417(e)(3) is amended— 
(I) by striking clauses (ii) and (iii), 
(II) by striking ‘‘if—’’ and all that 
follows through ‘‘section 430(h)(2)(D)’’ 
and inserting ‘‘if section 430(h)(2)(D)’’, 
and 
(III) by striking ‘‘described in such 
section,’’ and inserting ‘‘described in such 
section.’’. 
(ii) Clause (iii) of section 205(g)(3)(B) of 
the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1055(g)(3)(B)) is amend-
ed— 
(I) by striking subclauses (II) and 
(III), 
(II) by striking ‘‘if—’’ and all that 
follows through ‘‘section 303(h)(2)(D)’’ 
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and inserting ‘‘if section 303(h)(2)(D)’’, 
and 
(III) by striking ‘‘described in such 
section,’’ and inserting ‘‘described in such 
section.’’. 
(C)(i) Paragraph (5) of section 430(c) is 
amended by striking subparagraph (B) and by 
striking ‘‘(A) IN GENERAL.—’’. 
(ii) Paragraph (5) of section 303(c) of the 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1083(c)) is amended by strik-
ing subparagraph (B) and by striking ‘‘(A) IN 
GENERAL.—’’. 
(D)(i) Paragraph (2) of section 430(h) is 
amended by striking subparagraph (G). 
(ii) Paragraph (2) of section 303(h) of the 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1083(h)) is amended by strik-
ing subparagraph (G). 
(E)(i) Paragraph (3) of section 436(j), as 
added by section 113(a)(1)(B) of the Pension 
Protection Act of 2006, is amended by striking 
subparagraphs (B) and (C) and by striking 
‘‘(A) IN GENERAL.—’’. 
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(ii) Subparagraph (C) of section 206(g)(9) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1056(g)(9)) is amended 
by striking clauses (ii) and (iii) and by striking 
‘‘(i) IN GENERAL.—’’. 
(F)(i) Section 436(j) is amended by strik-
ing the paragraph (3) added by section 
203(a)(2) of the Preservation of Access to Care 
for Medicare Beneficiaries and Pension Relief 
Act of 2010. 
(ii) Section 206(g)(9) of the Employee Re-
tirement Income Security Act of 1974 (29 
U.S.C. 1056(g)(9)) is amended by striking sub-
paragraph (D). 
(G)(i) Section 436 is amended by striking 
subsection (m). 
(ii) Section 206(g) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 
1056(g)) is amended by striking paragraph 
(11). 
(H) Section 457(e)(15)(A) is amended by 
striking ‘‘shall be’’ and all that follows and in-
serting ‘‘is $15,000.’’. 
(58) LIMITATION
ON
DEDUCTIONS
FOR
CER-
TAIN FARMING.— 
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(A) Section 464 is amended by striking 
‘‘any farming syndicate (as defined in sub-
section (c))’’ both places it appears in sub-
sections (a) and (b) and inserting ‘‘any tax-
payer to whom subsection (d) applies’’. 
(B)(i) Subsection (c) of section 464 is 
hereby moved to the end of section 461 and re-
designated as subsection (j). 
(ii) Such subsection (j) is amended— 
(I) by striking ‘‘For purposes of this 
section’’ in paragraph (1) and inserting 
‘‘For purposes of subsection (i)(4)’’, and 
(II) by adding at the end the fol-
lowing new paragraphs: 
‘‘(3) FARMING.—For purposes of this sub-
section, the term ‘farming’ has the meaning given to 
such term by section 464(e). 
‘‘(4) LIMITED ENTREPRENEUR.—For purposes 
of this subsection, the term ‘limited entrepreneur’ 
means a person who— 
‘‘(A) has an interest in an enterprise other 
than as a limited partner, and 
‘‘(B) does not actively participate in the 
management of such enterprise.’’. 
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100 
(iii) Paragraph (4) of section 461(i) is 
amended by striking ‘‘section 464(c)’’ and 
inserting ‘‘subsection (j)’’. 
(C) Section 464 is amended— 
(i) by striking subsections (e) and (g) 
and redesignating subsections (d) and (f) 
as subsections (c) and (d), respectively, 
and 
(ii) by adding at the end the following 
new subsection: 
‘‘(e) FARMING.—For purposes of this section, the 
term ‘farming’ means the cultivation of land or the raising 
or harvesting of any agricultural or horticultural com-
modity including the raising, shearing, feeding, caring for, 
training, and management of animals. For purposes of the 
preceding sentence, trees (other than trees bearing fruit 
or nuts) shall not be treated as an agricultural or horti-
cultural commodity.’’. 
(D) Subsection (d) of section 464 of such 
Code (as redesignated by subparagraph (C)) is 
amended— 
(i) by striking paragraph (1) and re-
designating paragraphs (2), (3), and (4) as 
paragraphs (1), (2), and (3), respectively, 
and 
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101 
(ii) by striking ‘‘SUBSECTIONS (A) 
AND (B) TO APPLY TO’’ in the heading. 
(E) Subparagraph (A) of section 58(a)(2) 
is amended by striking ‘‘section 464(c)’’ and in-
serting ‘‘section 461(j)’’. 
(59) DEDUCTIONS
LIMITED
TO
AMOUNT
AT 
RISK.—Subparagraph (A) of section 465(c)(3) is 
amended by striking ‘‘In the case of taxable years 
beginning after December 31, 1978, this’’ and in-
serting ‘‘This’’. 
(60) PASSIVE ACTIVITY LOSSES AND CREDITS 
LIMITED.— 
(A) Section 469 is amended by striking 
subsection (m). 
(B) Subsection (b) of section 58 is amend-
ed by adding ‘‘and’’ at the end of paragraph 
(1), by striking paragraph (2), and by redesig-
nating paragraph (3) as paragraph (2). 
(61) ADJUSTMENTS REQUIRED BY CHANGES IN 
METHOD
OF
ACCOUNTING.—Section 481(b)(3) is 
amended by striking subparagraph (C). 
(62) EXEMPTION FROM TAX ON CORPORATIONS, 
CERTAIN TRUSTS, ETC.—Section 501 is amended by 
striking subsection (s). 
(63) REQUIREMENTS FOR EXEMPTION.— 
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102 
(A) Section 503(a)(1) is amended to read 
as follows: 
‘‘(1) GENERAL
RULE.—An organization de-
scribed in paragraph (17) or (18) of section 501(c), 
or described in section 401(a) and referred to in sec-
tion 4975(g) (2) or (3), shall not be exempt from 
taxation under section 501(a) if it has engaged in a 
prohibited transaction.’’. 
(B) Paragraph (2) of section 503(a) is 
amended by striking ‘‘described in section 
501(c)(17) or (18) or paragraph (a)(1)(B)’’ and 
inserting ‘‘described in paragraph (1)’’. 
(C) Subsection (c) of section 503 is 
amended by striking ‘‘described in section 
501(c)(17) or (18) or subsection (a)(1)(B)’’ and 
inserting ‘‘described in subsection (a)(1)’’. 
(64) ACCUMULATED TAXABLE INCOME.—Para-
graph (1) of section 535(b) and paragraph (1) of 
section 545(b) are each amended by striking ‘‘sec-
tion 531’’ and all that follows and inserting ‘‘section 
531 or the personal holding company tax imposed by 
section 541.’’. 
(65) DEFINITION
OF
PROPERTY.—Subsection 
(b) of section 614 is amended— 
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103 
(A) by striking paragraphs (3)(C) and (5), 
and 
(B) in paragraph (4), by striking ‘‘which-
ever of the following years is later: The first 
taxable year beginning after December 31, 
1963, or’’. 
(66) AMOUNTS RECEIVED BY SURVIVING ANNU-
ITANT UNDER JOINT AND SURVIVOR ANNUITY CON-
TRACT.—Subparagraph (A) of section 691(d)(1) is 
amended by striking ‘‘after December 31, 1953, 
and’’. 
(67) INCOME TAXES OF MEMBERS OF ARMED 
FORCES ON DEATH.—Section 692(a)(1) is amended 
by striking ‘‘after June 24, 1950’’. 
(68) SPECIAL
RULES
FOR
COMPUTING
RE-
SERVES.—Paragraph (7) of section 807(e) is amend-
ed by striking subparagraph (B) and redesignating 
subparagraph (C) as subparagraph (B). 
(69) INSURANCE COMPANY TAXABLE INCOME.— 
(A) Section 832(e) is amended by striking 
‘‘of taxable years beginning after December 31, 
1966,’’. 
(B) Section 832(e)(6) is amended by strik-
ing ‘‘In the case of any taxable year beginning 
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104 
after December 31, 1970, the’’ and inserting 
‘‘The’’. 
(70) CAPITALIZATION OF CERTAIN POLICY AC-
QUISITION EXPENSES.—Section 848 is amended by 
striking subsection (j). 
(71) TAX
ON
NONRESIDENT
ALIEN
INDIVID-
UALS.—Subparagraph (B) of section 871(a)(1) is 
amended to read as follows: 
‘‘(B) gains described in subsection (b) or 
(c) of section 631,’’. 
(72) LIMITATION ON CREDIT.—Paragraph (2) 
of section 904(d) is amended by striking subpara-
graph (J). 
(73) FOREIGN EARNED INCOME.—Clause (i) of 
section 911(b)(2)(D) is amended to read as follows: 
‘‘(i) IN
GENERAL.—The exclusion 
amount for any calendar year is $80,000.’’. 
(74) BASIS OF PROPERTY ACQUIRED FROM DE-
CEDENT.— 
(A) Section 1014(a)(2) is amended to read 
as follows: 
‘‘(2) in the case of an election under section 
2032, its value at the applicable valuation date pre-
scribed by such section,’’. 
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105 
(B) Section 1014(b) is amended by strik-
ing paragraphs (7) and (8). 
(75) ADJUSTED
BASIS.—Section 1016(a) is 
amended by striking paragraph (12). 
(76) PROPERTY ON WHICH LESSEE HAS MADE 
IMPROVEMENTS.—Section 1019 is amended by strik-
ing the last sentence. 
(77) 
INVOLUNTARY
CONVERSION.—Section 
1033 is amended by striking subsection (j) and by 
redesignating subsections (k) and (l) as subsections 
(j) and (k), respectively. 
(78) PROPERTY
ACQUIRED
DURING
AFFILI-
ATION.—Section 1051 is hereby repealed, and the 
table of sections for part IV of subchapter O of 
chapter 1 is amended by striking the item relating 
to section 1051. 
(79) CAPITAL
GAINS
AND
LOSSES.—Section 
1222 is amended by striking the last sentence. 
(80) HOLDING PERIOD OF PROPERTY.— 
(A) Paragraph (1) of section 1223 is 
amended by striking ‘‘after March 1, 1954,’’. 
(B) Paragraph (4) of section 1223 is 
amended by striking ‘‘ ‘(or under so much of 
section 1052(c) as refers to section 113(a)(23) 
of the Internal Revenue Code of 1939)’ ’’. 
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106 
(C) Paragraphs (6) and (8) of section 
1223 are repealed. 
(81) PROPERTY USED IN THE TRADE OR BUSI-
NESS AND INVOLUNTARY CONVERSIONS.—Subpara-
graph (A) of section 1231(c)(2) is amended by strik-
ing ‘‘beginning after December 31, 1981’’. 
(82) SALE OR EXCHANGE OF PATENTS.—Sec-
tion 1235 is amended— 
(A) by striking subsection (c) and by re-
designating subsections (d) and (e) as sub-
sections (c) and (d), respectively, and 
(B) by striking ‘‘subsection (d)’’ in sub-
section (b)(2)(B) and inserting ‘‘subsection 
(c)’’. 
(83) DEALERS IN SECURITIES.—Subsection (b) 
of section 1236 is amended by striking ‘‘after No-
vember 19, 1951,’’. 
(84) SALE OF PATENTS.—Subsection (a) of sec-
tion 1249 is amended by striking ‘‘after December 
31, 1962,’’. 
(85) GAIN FROM DISPOSITION OF FARMLAND.— 
Paragraph (1) of section 1252(a) is amended— 
(A) by striking ‘‘after December 31, 1969’’ 
the first place it appears, and 
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107 
(B) by striking ‘‘after December 31, 
1969,’’ in subparagraph (A). 
(86) TREATMENT OF AMOUNTS RECEIVED ON 
RETIREMENT OR SALE OR EXCHANGE OF DEBT IN-
STRUMENTS.—Subsection (c) of section 1271 is 
amended to read as follows: 
‘‘(c) SPECIAL RULE
FOR CERTAIN OBLIGATIONS 
WITH RESPECT TO WHICH ORIGINAL ISSUE DISCOUNT 
NOT CURRENTLY INCLUDIBLE.— 
‘‘(1) IN GENERAL.—On the sale or exchange of 
debt instruments issued by a government or political 
subdivision thereof after December 31, 1954, and 
before July 2, 1982, or by a corporation after De-
cember 31, 1954, and on or before May 27, 1969, 
any gain realized which does not exceed— 
‘‘(A) an amount equal to the original issue 
discount, or 
‘‘(B) if at the time of original issue there 
was no intention to call the debt instrument be-
fore maturity, an amount which bears the same 
ratio to the original issue discount as the num-
ber of complete months that the debt instru-
ment was held by the taxpayer bears to the 
number of complete months from the date of 
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108 
original issue to the date of maturity, shall be 
considered as ordinary income. 
‘‘(2) SUBSECTION (a)(2)(A) NOT TO APPLY.— 
Subsection (a)(2)(A) shall not apply to any debt in-
strument referred to in paragraph (1) of this sub-
section. 
‘‘(3) CROSS
REFERENCE.—For current inclu-
sion of original issue discount, see section 1272.’’. 
(87) AMOUNT
AND
METHOD
OF
ADJUST-
MENT.—Section 1314 is amended by striking sub-
section (d) and by redesignating subsection (e) as 
subsection (d). 
(88) ELECTION; REVOCATION; TERMINATION.— 
Clause (iii) of section 1362(d)(3)(A) is amended by 
striking ‘‘unless’’ and all that follows and inserting 
‘‘unless the corporation was an S corporation for 
such taxable year.’’. 
(89) OLD-AGE, SURVIVORS, AND DISABILITY IN-
SURANCE.—Subsection (a) of section 1401 is amend-
ed by striking ‘‘the following percent’’ and all that 
follows and inserting ‘‘12.4 percent of the amount of 
the self-employment income for such taxable year.’’. 
(90) HOSPITAL INSURANCE.—Paragraph (1) of 
section 1401(b) is amended by striking: ‘‘the fol-
lowing percent’’ and all that follows and inserting 
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109 
‘‘2.9 percent of the amount of the self-employment 
income for such taxable year.’’. 
(91) MINISTERS, MEMBERS OF RELIGIOUS OR-
DERS, AND CHRISTIAN SCIENCE PRACTITIONERS.— 
Paragraph (3) of section 1402(e) is amended— 
(A) by striking ‘‘whichever of the following 
dates is later: (A)’’, and 
(B) by striking ‘‘;or (B)’ ’’ and all that fol-
lows and inserting a period. 
(92) WITHHOLDING OF TAX ON NONRESIDENT 
ALIENS.—The first sentence of subsection (b) of sec-
tion 1441 and the first sentence of paragraph (5) of 
section 1441(c) are each amended by striking ‘‘gains 
subject to tax’’ and all that follows through ‘‘Octo-
ber 4, 1966’’ and inserting ‘‘and gains subject to tax 
under section 871(a)(1)(D)’’. 
(93) AFFILIATED GROUP DEFINED.—Subpara-
graph (A) of section 1504(a)(3) is amended by strik-
ing ‘‘for a taxable year which includes any period 
after December 31, 1984’’ in clause (i) and by strik-
ing ‘‘in a taxable year beginning after December 31, 
1984’’ in clause (ii). 
(94) DISALLOWANCE
OF
THE
BENEFITS
OF 
THE GRADUATED CORPORATE RATES AND ACCUMU-
LATED EARNINGS CREDIT.— 
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110 
(A) Subsection (a) of section 1551 is 
amended— 
(i) by striking paragraph (1) and by 
redesignating paragraphs (2) and (3) as 
paragraphs (1) and (2), respectively, and 
(ii) by striking ‘‘after June 12, 1963,’’ 
each place it appears. 
(B) Section 1551(b) is amended— 
(i) by striking ‘‘or (2)’’ in paragraph 
(1), and 
(ii) by striking ‘‘(a)(3)’’ in paragraph 
(2) and inserting ‘‘(a)(2)’’. 
(95) CREDIT FOR STATE DEATH TAXES.— 
(A)(i) Part II of subchapter A of chapter 
11 is amended by striking section 2011 (and by 
striking the item relating to such section in the 
table of sections for such subpart). 
(ii) Section 2106(a)(4) is amended by 
striking 
‘‘section 
2011(a)’’ 
and 
inserting 
‘‘2058(a)’’. 
(B)(i) Subchapter A of chapter 13 is 
amended by striking section 2604 (and by strik-
ing the item relating to such section in the 
table of sections for such subpart). 
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111 
(ii) Clause (ii) of section 164(b)(4)(A) is 
amended by inserting ‘‘(as in effect before its 
repeal)’’ after ‘‘section 2604’’. 
(iii) Section 2654(a)(1) is amended by 
striking ‘‘(computed without regard to section 
2604)’’. 
(96) GROSS ESTATE.—Subsection (c) of section 
2031 is amended by striking paragraph (3) and by 
amending paragraph (1)(B) to read as follows: 
‘‘(II) $500,000.’’. 
(97)(A) Part IV of subchapter A of chapter 11 
is amended by striking section 2057 (and by striking 
the item relating to such section in the table of sec-
tions for such subpart). 
(B) Paragraph (10) of section 2031(c) is 
amended by inserting ‘‘(as in effect before its re-
peal)’’ immediately before the period at the end 
thereof. 
(98) 
PROPERTY
WITHIN
THE
UNITED 
STATES.—Subsection (c) of section 2104 is amended 
by striking ‘‘With respect to estates of decedents 
dying after December 31, 1969, deposits’’ and in-
serting ‘‘Deposits’’. 
(99) FICA TAXES.— 
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112 
(A) Subsection (a) of section 3101 is 
amended by striking ‘‘the following percent-
ages’’ and all that follows and inserting ‘‘6.2 
percent of the wages (as defined in section 
3121(a)) received by the individual with respect 
to employment (as defined in section 3121(b))’’. 
(B)(i) Subsection (a) of section 3111 is 
amended by striking ‘‘the following percent-
ages’’ and all that follows and inserting ‘‘6.2 
percent of the wages (as defined in section 
3121(a)) paid by the employer with respect to 
employment (as defined in section 3121(b)).’’. 
(ii) Subsection (b) of section 3111 is 
amended by striking ‘‘the following percent-
ages’’ and all that follows and inserting ‘‘1.45 
percent of the wages (as defined in section 
3121(a)) paid by the employer with respect to 
employment (as defined in section 3121(b)).’’. 
(C)(i) Section 3121(b) is amended by 
striking paragraph (17). 
(ii) Section 210(a) of the Social Security 
Act is amended by striking paragraph (17). 
(100) RAILROAD RETIREMENT.— 
(A) Subsection (b) of section 3201 is 
amended to read as follows: 
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113 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on the income of each employee a tax 
equal to the percentage determined under section 3241 for 
any calendar year of the compensation received during 
such calendar year by such employee for services rendered 
by such employee.’’. 
(B) Subsection (b) of section 3211 is 
amended to read as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on the income of each employee rep-
resentative a tax equal to the percentage determined under 
section 3241 for any calendar year of the compensation 
received during such calendar year by such employee rep-
resentative for services rendered by such employee rep-
resentative.’’. 
(C) Subsection (b) of section 3221 is 
amended to read as follows: 
‘‘(b) TIER 2 TAX.—In addition to other taxes, there 
is hereby imposed on every employer an excise tax, with 
respect to having individuals in his employ, equal to the 
percentage determined under section 3241 for any cal-
endar year of the compensation paid during such calendar 
year by such employer for services rendered to such em-
ployer.’’. 
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