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any trust described in section 401(a) and exempt
from tax under section 501(a).’’
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to taxable years beginning after Decem-
ber 31, 1993.
Subpart D—Increase in Recovery Period for
Nonresidential Real Property
SEC. 
8151. INCREASE 
IN 
RECOVERY 
PERIOD 
FOR
NONRESIDENTIAL REAL PROPERTY.
(a) GENERAL RULE.—Paragraph (1) of section 168(c)
(relating to applicable recovery period) is amended by strik-
ing the item relating to nonresidential real property and
inserting the following:
‘‘Nonresidential real property .......................................................
38 years.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendment made by subsection (a)
shall apply to property placed in service by the tax-
payer on or after February 25, 1993.
(2) EXCEPTION.—The amendments made by this
section shall not apply to property placed in service
by the taxpayer before January 1, 1994, if—
(A) the taxpayer or a qualified person en-
tered into a binding written contract to purchase
or construct such property before February 25,
1993, or
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(B) the construction of such property was
commenced by or for the taxpayer or a quali-
fied person before February 25, 1993.
For purposes of this paragraph, the term ‘‘qualified
person’’ means any person who transfers his rights in
such a contract or such property to the taxpayer but
only if the property is not placed in service by such
person before such rights are transferred to the tax-
payer.
PART V—LUXURY TAX
SEC. 8161. REPEAL OF LUXURY EXCISE TAXES OTHER THAN
ON PASSENGER VEHICLES.
(a) IN GENERAL.—Subchapter A of chapter 31 (relat-
ing to retail excise taxes) is amended to read as follows:
‘‘Subchapter A—Luxury Passenger Automobiles
‘‘Sec. 4001. Imposition of tax.
‘‘Sec. 4002. 1st retail sale; uses, etc. treated as sales; determination
of price.
‘‘Sec. 4003. Special rules.
‘‘SEC. 4001. IMPOSITION OF TAX.
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed on
the 1st retail sale of any passenger vehicle a tax equal to
10 percent of the price for which so sold to the extent such
price exceeds $30,000.
‘‘(b) PASSENGER VEHICLE.—
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‘‘(1) IN
GENERAL.—For purposes of this sub-
chapter, the term ‘passenger vehicle’ means any 4-
wheeled vehicle—
‘‘(A) which is manufactured primarily for
use on public streets, roads, and highways, and
‘‘(B) which is rated at 6,000 pounds un-
loaded gross vehicle weight or less.
‘‘(2) SPECIAL RULES.—
‘‘(A) TRUCKS AND VANS.—In the case of a
truck or van, paragraph (1)(B) shall be applied
by substituting ‘gross vehicle weight’ for ‘un-
loaded gross vehicle weight’.
‘‘(B) LIMOUSINES.—In the case of a lim-
ousine, paragraph (1) shall be applied without
regard to subparagraph (B) thereof.
‘‘(c) EXCEPTIONS FOR TAXICABS, ETC.—The tax im-
posed by this section shall not apply to the sale of any pas-
senger vehicle for use by the purchaser exclusively in the
active conduct of a trade or business of transporting persons
or property for compensation or hire.
‘‘(d) EXEMPTION
FOR LAW ENFORCEMENT USES,
ETC.—No tax shall be imposed by this section on the sale
of any passenger vehicle—
‘‘(1) to the Federal Government, or a State or
local government, for use exclusively in police, fire-
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fighting, search and rescue, or other law enforcement
or public safety activities, or in public works activi-
ties, or
‘‘(2) to any person for use exclusively in provid-
ing emergency medical services.
‘‘(e) INFLATION ADJUSTMENT.—
‘‘(1) IN GENERAL.—In the case of any calendar
year after 1992, the $30,000 amount in subsection (a)
and section 4003(a) shall be increased by an amount
equal to—
‘‘(A) $30,000, multiplied by
‘‘(B) the cost-of-living adjustment under sec-
tion 1(f)(3) for such calendar year, determined
by substituting ‘calendar year 1990’ for ‘cal-
endar year 1992’ in subparagraph (B) thereof.
‘‘(2) ROUNDING.—If any amount as adjusted
under paragraph (1) is not a multiple of $100, such
amount shall be rounded to the nearest multiple of
$100.
‘‘(f) TERMINATION.—The tax imposed by this section
shall not apply to any sale or use after December 31, 1999.
‘‘SEC. 4002. 1ST RETAIL SALE; USES, ETC. TREATED AS
SALES; DETERMINATION OF PRICE.
‘‘(a) 1ST RETAIL SALE.—For purposes of this sub-
chapter, the term ‘1st retail sale’ means the 1st sale, for
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a purpose other than resale, after manufacture, production,
or importation.
‘‘(b) USE TREATED AS SALE.—
‘‘(1) IN GENERAL.—If any person uses a pas-
senger vehicle (including any use after importation)
before the 1st retail sale of such vehicle, then such per-
son shall be liable for tax under this subchapter in the
same manner as if such vehicle were sold at retail by
him.
‘‘(2) EXEMPTION
FOR
FURTHER
MANUFAC-
TURE.—Paragraph (1) shall not apply to use of a ve-
hicle as material in the manufacture or production of,
or as a component part of, another vehicle taxable
under this subchapter to be manufactured or produced
by him.
‘‘(3) EXEMPTION FOR DEMONSTRATION USE.—
Paragraph (1) shall not apply to any use of a pas-
senger vehicle as a demonstrator.
‘‘(4) EXCEPTION FOR USE AFTER IMPORTATION
OF
CERTAIN
VEHICLES.—Paragraph (1) shall not
apply to the use of a vehicle after importation if the
user or importer establishes to the satisfaction of the
Secretary that the 1st use of the vehicle occurred be-
fore January 1, 1991, outside the United States.
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‘‘(5) COMPUTATION OF TAX.—In the case of any
person made liable for tax by paragraph (1), the tax
shall be computed on the price at which similar vehi-
cles are sold at retail in the ordinary course of trade,
as determined by the Secretary.
‘‘(c) LEASES CONSIDERED AS SALES.—For purposes
of this subchapter—
‘‘(1) IN GENERAL.—Except as otherwise provided
in this subsection, the lease of a vehicle (including
any renewal or any extension of a lease or any subse-
quent lease of such vehicle) by any person shall be
considered a sale of such vehicle at retail.
‘‘(2) SPECIAL RULES FOR LONG-TERM LEASES.—
‘‘(A) TAX NOT IMPOSED ON SALE FOR LEAS-
ING IN A QUALIFIED LEASE.—The sale of a pas-
senger vehicle to a person engaged in a passenger
vehicle leasing or rental trade or business for
leasing by such person in a long-term lease shall
not be treated as the 1st retail sale of such vehi-
cle.
‘‘(B) LONG-TERM LEASE.—For purposes of
subparagraph (A), the term ‘long-term lease’
means any long-term lease (as defined in section
4052).
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‘‘(C) SPECIAL
RULES.—In the case of a
long-term lease of a vehicle which is treated as
the 1st retail sale of such vehicle—
‘‘(i) DETERMINATION OF PRICE.—The
tax under this subchapter shall be computed
on the lowest price for which the vehicle is
sold by retailers in the ordinary course of
trade.
‘‘(ii) PAYMENT OF TAX.—Rules similar
to the rules of section 4217(e)(2) shall
apply.
‘‘(iii) NO TAX WHERE EXEMPT USE BY
LESSEE.—No tax shall be imposed on any
lease payment under a long-term lease if the
lessee’s use of the vehicle under such lease is
an exempt use (as defined in section
4003(b)) of such vehicle.
‘‘(d) DETERMINATION OF PRICE.—
‘‘(1) IN
GENERAL.—In determining price for
purposes of this subchapter—
‘‘(A) there shall be included any charge in-
cident to placing the passenger vehicle in condi-
tion ready for use,
‘‘(B) there shall be excluded—
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‘‘(i) the amount of the tax imposed by
this subchapter,
‘‘(ii) if stated as a separate charge, the
amount of any retail sales tax imposed by
any State or political subdivision thereof or
the District of Columbia, whether the liabil-
ity for such tax is imposed on the vendor or
vendee, and
‘‘(iii) the value of any component of
such passenger vehicle if—
‘‘(I) such component is furnished
by the 1st user of such passenger vehi-
cle, and
‘‘(II) such component has been
used before such furnishing, and
‘‘(C) the price shall be determined without
regard to any trade-in.
‘‘(2) OTHER RULES.—Rules similar to the rules
of paragraphs (2) and (4) of section 4052(b) shall
apply for purposes of this subchapter.
‘‘SEC. 4003. SPECIAL RULES.
‘‘(a) SEPARATE PURCHASE OF VEHICLE AND PARTS
AND ACCESSORIES THEREFOR.—Under regulations pre-
scribed by the Secretary—
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), if—
‘‘(A) the owner, lessee, or operator of any
passenger vehicle installs (or causes to be in-
stalled) any part or accessory on such vehicle,
and
‘‘(B) such installation is not later than the
date 6 months after the date the vehicle was 1st
placed in service,
then there is hereby imposed on such installation a
tax equal to 10 percent of the price of such part or
accessory and its installation.
‘‘(2) LIMITATION.—The tax imposed by para-
graph (1) on the installation of any part or accessory
shall not exceed 10 percent of the excess (if any) of—
‘‘(A) the sum of—
‘‘(i) the price of such part or accessory
and its installation,
‘‘(ii) the aggregate price of the parts
and accessories (and their installation) in-
stalled before such part or accessory, plus
‘‘(iii) the price for which the passenger
vehicle was sold, over
‘‘(B) $30,000.
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‘‘(3) EXCEPTIONS.—Paragraph (1) shall not
apply if—
‘‘(A) the part or accessory installed is a re-
placement part or accessory,
‘‘(B) the part or accessory is installed to en-
able or assist an individual with a disability to
operate the vehicle, or to enter or exit the vehicle,
by compensating for the effect of such disability,
or
‘‘(C) the aggregate price of the parts and
accessories (and their installation) described in
paragraph (1) with respect to the vehicle does
not exceed $200 (or such other amount or
amounts as the Secretary may by regulation pre-
scribe).
The price of any part or accessory (and its installa-
tion) to which paragraph (1) does not apply by rea-
son of this paragraph shall not be taken into account
under paragraph (2)(A).
‘‘(4) INSTALLERS
SECONDARILY
LIABLE
FOR
TAX.—The owners of the trade or business installing
the parts or accessories shall be secondarily liable for
the tax imposed by this subsection.
‘‘(b) IMPOSITION OF TAX ON SALES, ETC., WITHIN 2
YEARS OF VEHICLES PURCHASED TAX-FREE.—
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‘‘(1) IN GENERAL.—If—
‘‘(A) no tax was imposed under this sub-
chapter on the 1st retail sale of any passenger
vehicle by reason of its exempt use, and
‘‘(B) within 2 years after the date of such
1st retail sale, such vehicle is resold by the pur-
chaser or such purchaser makes a substantial
nonexempt use of such vehicle,
then such sale or use of such vehicle by such purchaser
shall be treated as the 1st retail sale of such vehicle
for a price equal to its fair market value at the time
of such sale or use.
‘‘(2) EXEMPT USE.—For purposes of this sub-
section, the term ‘exempt use’ means any use of a ve-
hicle if the 1st retail sale of such vehicle is not taxable
under this subchapter by reason of such use.
‘‘(c) PARTS AND ACCESSORIES SOLD WITH TAXABLE
PASSENGER VEHICLE.—Parts and accessories sold on, in
connection with, or with the sale of any passenger vehicle
shall be treated as part of the vehicle.
‘‘(d) PARTIAL PAYMENTS, ETC.—In the case of a con-
tract, sale, or arrangement described in paragraph (2), (3),
or (4) of section 4216(c), rules similar to the rules of section
4217(e)(2) shall apply for purposes of this subchapter.’’
(b) TECHNICAL AMENDMENTS.—
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(1) Subsection (c) of section 4221 is amended by
striking ‘‘4002(b), 4003(c), 4004(a)’’ and inserting
‘‘4001(d)’’.
(2) Subsection (d) of section 4222 is amended by
striking ‘‘4002(b), 4003(c), 4004(a)’’ and inserting
‘‘4001(d)’’.
(3) The table of subchapters for chapter 31 is
amended by striking the item relating to subchapter
A and inserting the following:
‘‘Subchapter A. Luxury passenger vehicles.’’
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 1993.
SEC. 8162. EXEMPTION FROM LUXURY EXCISE TAX FOR
CERTAIN EQUIPMENT INSTALLED ON PAS-
SENGER VEHICLES FOR USE BY DISABLED IN-
DIVIDUALS.
(a) IN GENERAL.—Paragraph (3) of section 4004(b)
(relating to separate purchase of article and parts and ac-
cessories therefor), as in effect on the day before the date
of the enactment of this Act, is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(A),
(2) by redesignating subparagraph (B) as sub-
paragraph (C),
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
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‘‘(B) the part or accessory is installed on a
passenger vehicle to enable or assist an individ-
ual with a disability to operate the vehicle, or to
enter or exit the vehicle, by compensating for the
effect of such disability, or’’, and
(4) by inserting after subparagraph (C) the fol-
lowing flush sentence:
‘‘The price of any part or accessory (and its installa-
tion) to which paragraph (1) does not apply by rea-
son of this paragraph shall not be taken into account
under paragraph (2)(A).’’
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect as if included in the amendments
made by section 11221(a) of the Omnibus Budget Reconcili-
ation Act of 1990.
(c) PERIOD FOR FILING CLAIMS.—If refund or credit
of any overpayment of tax resulting from the application
of the amendments made by this section is prevented at any
time before the close of the 1-year period beginning on the
date of the enactment of this Act by the operation of any
law or rule of law (including res judicata), refund or credit
of such overpayment (to the extent attributable to such
amendments) may, nevertheless, be made or allowed if claim
therefor is filed before the close of such 1-year period.
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SEC. 8163. TAX ON DIESEL FUEL USED IN NONCOMMERCIAL
BOATS.
(a) GENERAL RULE.—
(1) Paragraph (2) of section 4092(a) (defining
diesel fuel) is amended by striking ‘‘or a diesel-pow-
ered train’’ and inserting ‘‘, a diesel-powered train,
or a diesel-powered boat’’.
(2) Paragraph (1) of section 4041(a) is amend-
ed—
(A) by striking ‘‘diesel-powered highway ve-
hicle’’ each place it appears and inserting ‘‘die-
sel-powered highway vehicle or diesel-powered
boat’’, and
(B) by striking ‘‘such vehicle’’ and inserting
‘‘such vehicle or boat’’.
(3) Subparagraph (B) of section 4092(b)(1) is
amended by striking ‘‘commercial and noncommercial
vessels’’ each place it appears and inserting ‘‘vessels
for use in an off-highway business use (as defined in
section 6421(e)(2)(B))’’.
(b) EXEMPTION FOR USE IN FISHERIES OR COMMER-
CIAL
NAVIGATION.—Subparagraph 
(B) 
of 
section
6421(e)(2) is amended to read as follows:
‘‘(B) USES IN BOATS.—
‘‘(i) IN GENERAL.—Except as otherwise
provided in this subparagraph, the term
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‘off-highway business use’ does not include
any use in a motorboat.
‘‘(ii) FISHERIES AND WHALING.—The
term ‘off-highway business use’ shall include
any use in a vessel employed in the fisheries
or in the whaling business.
‘‘(iii) EXCEPTION FOR DIESEL FUEL.—
The term ‘off-highway business use’ shall in-
clude the use of diesel fuel in a boat in the
active conduct of—
‘‘(I) a trade or business of com-
mercial fishing or transporting persons
or property for compensation or hire,
or
‘‘(II) any other trade or business,
except that this subclause shall not
apply to noncommercial uses described
in clause (iv) during a taxable period.
‘‘(iv) TAXABLE
PERIODS
FOR
NON-
COMMERCIAL BOATS.—In the case of any
use of diesel fuel in a boat used predomi-
nantly in any activity which is of a type
generally considered to constitute entertain-
ment, amusement, or recreation, the taxable
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period for purposes of clause (iii)(II) shall
be—
‘‘(I) in the case so much of the tax
under section 4091 as is attributable to
4.3 cents of the diesel fuel deficit reduc-
tion rate imposed under such section,
any period beginning after September
30, 1993, and
‘‘(II) in the case so much of the
tax under section 4091 as is not de-
scribed in subclause (I) the period be-
ginning after January 1, 1994, and
ending on December 31, 1999.
(c) RETENTION OF TAXES IN GENERAL FUND.—
(1) TAXES IMPOSED AT HIGHWAY TRUST FUND
FINANCING RATE.—Paragraph (4) of section 9503(b)
(relating to transfers to Highway Trust Fund) is
amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (A),
(B) by striking the period at the end of sub-
paragraph (B) and inserting ‘‘, and’’, and
(C) by adding at the end thereof the follow-
ing new subparagraph:
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‘‘(C) there shall not be taken into account
the taxes imposed by sections 4041 and 4091 on
diesel fuel sold for use or used as fuel in a diesel-
powered boat.’’
(2) TAXES IMPOSED AT LEAKING UNDERGROUND
STORAGE TANK TRUST FUND FINANCING RATE.—Sub-
section (b) of section 9508 (relating to transfers to
Leaking Underground Storage Tank Trust Fund) is
amended by adding at the end thereof the following
new sentence: ‘‘For purposes of this subsection, there
shall not be taken into account the taxes imposed by
sections 4041 and 4091 on diesel fuel sold for use or
used as fuel in a diesel-powered boat.’’
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
take effect on October 1, 1993.
(2) SPECIAL RULE.—No tax shall be imposed be-
fore January 1, 1994, under section 4091 of the Inter-
nal Revenue Code of 1986 by reason of the amend-
ments made by this section, other than the portion of
such tax as is attributable to 4.3 cents of the diesel
fuel deficit reduction rate imposed by such section.
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PART VI—OTHER CHANGES
SEC. 8171. ALTERNATIVE MINIMUM TAX TREATMENT OF
CONTRIBUTIONS 
OF 
APPRECIATED 
PROP-
ERTY.
(a) REPEAL OF TAX PREFERENCE.—Subsection (a) of
section 57 is amended by striking paragraph (6) (relating
to appreciated property charitable deduction) and by redes-
ignating paragraph (7) as paragraph (6).
(b) EFFECT ON ADJUSTED CURRENT EARNINGS.—
Paragraph (4) of section 56(g) is amended by adding at
the end thereof the following new subparagraph:
‘‘(J) TREATMENT
OF
CHARITABLE
CON-
TRIBUTIONS.—Notwithstanding 
subparagraphs
(B) and (C), no adjustment related to the earn-
ings and profits effects of any charitable con-
tribution shall be made in computing adjusted
current earnings.’’
(c) CONFORMING AMENDMENT.—Subclause (II) of sec-
tion 53(d)(1)(B)(ii) is amended by striking ‘‘(5) and (6)’’
and inserting ‘‘(5)’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to contributions made after June 30,
1992, except that in the case of any contribution of capital
gain property which is not tangible personal property, such
amendments shall apply only if the contribution is made
after December 31, 1992.
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SEC. 8172. SUBSTANTIATION REQUIREMENT FOR DEDUC-
TION OF CERTAIN CHARITABLE CONTRIBU-
TIONS.
(a) SUBSTANTIATION REQUIREMENT.—Section 170(f)
(providing special rules relating to the deduction of chari-
table contributions and gifts) is amended by adding at the
end the following new paragraph:
‘‘(8) SUBSTANTIATION REQUIREMENT FOR CER-
TAIN CONTRIBUTIONS.—
‘‘(A) GENERAL RULE.—No deduction shall
be allowed under subsection (a) for any contribu-
tion of $250 or more unless the taxpayer sub-
stantiates the contribution by a contemporaneous
written acknowledgment of the contribution by
the donee organization that meets the require-
ments of subparagraph (B).
‘‘(B) CONTENT OF ACKNOWLEDGMENT.—
‘‘(i) IN
GENERAL.—An acknowledg-
ment meets the requirements of this sub-
paragraph if it provides information suffi-
cient to substantiate the amount of the de-
ductible contribution. Nothing in this clause
shall be construed as requiring the donee or-
ganization to estimate the value of a
noncash contribution.
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‘‘(ii) 
QUID
PRO
QUO
CONTRIBU-
TIONS.—If the contribution was made by
means of a payment part of which con-
stituted consideration for goods or services
provided by the donee organization, the ac-
knowledgment must provide a good faith
estimate of the value of such goods or serv-
ices. The preceding sentence shall not apply
to any payment made to an organization,
organized exclusively for religious purposes,
in return for which the taxpayer receives
solely an intangible religious benefit that
generally is not sold in a commercial trans-
action outside the donative context.
‘‘(C) CONTEMPORANEOUS.—For purposes of
subparagraph (A), an acknowledgment shall be
considered to be contemporaneous if the taxpayer
obtains the acknowledgment on or before the ear-
lier of—
‘‘(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.
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‘‘(D) SUBSTANTIATION NOT REQUIRED FOR
CONTRIBUTIONS REPORTED BY THE DONEE OR-
GANIZATION.—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 Secretary may prescribe,
which includes the information described in sub-
paragraph (B) with respect to the contribution.
‘‘(E) REGULATIONS.—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) EFFECTIVE DATE.—The provisions of this section
shall apply to contributions made on or after January 1,
1994.
SEC. 8173. DISCLOSURE RELATED TO QUID PRO QUO
CONTRIBUTIONS.
(a) DISCLOSURE 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:
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‘‘SEC. 6115. DISCLOSURE RELATED TO QUID PRO QUO CON-
TRIBUTIONS.
‘‘(a) DISCLOSURE REQUIREMENT.—If an organization
described in section 170(c) (other than paragraph (1) there-
of) receives a quid pro quo contribution in excess of $75,
the organization shall, in connection with the solicitation
or receipt of the contribution, provide a written statement
which—
‘‘(1) informs 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 organization, and
‘‘(2) provides 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 con-
sideration for goods or services provided to the payor by
the donee organization. A quid pro quo contribution does
not include any payment made to an organization, orga-
nized exclusively for religious purposes, in return for which
the taxpayer receives solely an intangible religious benefit
that generally is not sold in a commercial transaction out-
side the donative context.’’
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(b) PENALTY FOR FAILURE TO DISCLOSE.—Part I of
subchapter B of chapter 68 (relating to assessable penalties)
is amended by inserting after section 6713 the following
new section:
‘‘SEC. 6714. FAILURE TO MEET DISCLOSURE REQUIRE-
MENTS APPLICABLE TO QUID PRO QUO CON-
TRIBUTIONS.
‘‘(a) IMPOSITION OF PENALTY.—If an organization
fails to meet the disclosure requirement of section 6115 with
respect to a quid pro quo contribution, such organization
shall pay a penalty of $10 for each contribution in respect
of which the organization fails to make the required disclo-
sure, except that the total penalty imposed by this sub-
section with respect to a particular fundraising event or
mailing shall not exceed $5,000.
‘‘(b) REASONABLE CAUSE EXCEPTION.—No penalty
shall be imposed under this section with respect to any fail-
ure 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 items:
‘‘Sec. 6115. Disclosure related to quid pro quo contributions.
‘‘Sec. 6116. Cross reference.’’
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(2) The table for part I of subchapter B of chap-
ter 68 is amended by inserting after the item for sec-
tion 6713 the following new item:
‘‘Sec. 6714. Failure to meet disclosure requirements applicable to
quid pro quo contributions.’’
(d) EFFECTIVE DATE.—The provisions of this section
shall apply to quid pro quo contributions made on or after
January 1, 1994.
SEC. 8174. CERTAIN TRANSFERS TO RAILROAD RETIRE-
MENT ACCOUNT MADE PERMANENT.
Subsection (c)(1)(A) of section 224 of the Railroad Re-
tirement Solvency Act of 1983 (relating to section 72(r) rev-
enue increase transferred to certain railroad accounts) is
amended by striking ‘‘with respect to benefits received before
October 1, 1992’’.
SEC. 8175. TEMPORARY EXTENSION OF DEDUCTION FOR
HEALTH INSURANCE COSTS OF SELF-EM-
PLOYED INDIVIDUALS.
(a) IN GENERAL.—
(1) EXTENSION.—Paragraph (6) of section
162(l) (relating to special rules for health insurance
costs of self-employed individuals) is amended by
striking ‘‘June 30, 1992’’ and inserting ‘‘December
31, 1993’’.
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(2) CONFORMING AMENDMENT.—Paragraph (2)
of section 110(a) of the Tax Extension Act of 1991 is
hereby repealed.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years ending
after June 30, 1992.
(b) DETERMINATION OF ELIGIBILITY FOR EMPLOYER-
SPONSORED HEALTH PLAN.—
(1) IN GENERAL.—Paragraph (2)(B) of section
162(l) is amended to read as follows:
‘‘(B) OTHER
COVERAGE.—Paragraph (1)
shall not apply to any taxpayer for any calendar
month for which the taxpayer is eligible to par-
ticipate in any subsidized health plan main-
tained by any employer of the taxpayer or of the
spouse of the taxpayer.’’
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall apply to taxable years beginning
after December 31, 1992.
Part VII—Investment in Indian Reservations
SEC. 8181. INVESTMENT TAX CREDIT FOR PROPERTY ON IN-
DIAN RESERVATIONS.
(a) ALLOWANCE OF INDIAN RESERVATION CREDIT.—
Section 46 (relating to investment credits) is amended by
striking ‘‘and’’ at the end of paragraph (2), by striking the
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period at the end of paragraph (3) and inserting ‘‘, and’’,
and by adding after paragraph (3) the following new para-
graph:
‘‘(4) the Indian reservation credit.’’
(b) AMOUNT OF INDIAN RESERVATION CREDIT.—
(1) IN GENERAL.—Section 48 (relating to the en-
ergy credit and the reforestation credit) is amended
by adding after subsection (b) the following new sub-
section:
‘‘(c) INDIAN RESERVATION CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 46,
the Indian reservation credit for any taxable year is
the Indian reservation percentage of the qualified in-
vestment in qualified Indian reservation property
placed in service during such taxable year, deter-
mined in accordance with the following table:
‘‘In the case of qualified
Indian reservation property
The Indian reservation
which is:
percentage is:
Reservation personal property ..................................
New reservation construction property ....................
Reservation infrastructure investment .....................
15.
‘‘(2) QUALIFIED INVESTMENT IN QUALIFIED IN-
DIAN RESERVATION PROPERTY DEFINED.—For pur-
poses of this subpart—
‘‘(A) IN GENERAL.—The term ‘qualified In-
dian reservation property’ means property—
‘‘(i) which is—
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‘‘(I) reservation personal prop-
erty,
‘‘(II) new reservation construction
property, or
‘‘(III) reservation infrastructure
investment, and
‘‘(ii) not acquired (directly or indi-
rectly) by the taxpayer from a person who
is related to the taxpayer (within the mean-
ing of section 465(b)(3)(C)).
The term ‘qualified Indian reservation property’
does not include any property (or any portion
thereof) placed in service for purposes of conduct-
ing or housing class I, II, or III gaming (as de-
fined in section 4 of the Indian Regulatory Act
(25 U.S.C. 2703)).
‘‘(B) QUALIFIED
INVESTMENT.—The term
‘qualified investment’ means—
‘‘(i) in the case of reservation infra-
structure investment, the amount expended
by the taxpayer for the acquisition or con-
struction of the reservation infrastructure
investment; and
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‘‘(ii) in the case of all other qualified
Indian reservation property, the taxpayer’s
basis for such property.
‘‘(C) RESERVATION PERSONAL PROPERTY.—
The term ‘reservation personal property’ means
qualified personal property which is used by the
taxpayer predominantly in the active conduct of
a trade or business within an Indian reserva-
tion. Property shall not be treated as ‘reservation
personal property’ if it is used or located outside
the Indian reservation on a regular basis.
‘‘(D) QUALIFIED
PERSONAL
PROPERTY.—
The term ‘qualified personal property’ means
property—
‘‘(i) for which depreciation is allowable
under section 168,
‘‘(ii) which is not—
‘‘(I) nonresidential real property,
‘‘(II) residential rental property,
or
‘‘(III) real property which is not
described in (I) or (II) and which has
a class life of more than 12.5 years.
For purposes of this subparagraph, the terms
‘nonresidential real property’, ‘residential rental
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property’, and ‘class life’ have the respective
meanings given such terms by section 168.
‘‘(E) NEW
RESERVATION
CONSTRUCTION
PROPERTY.—The term ‘new reservation construc-
tion property’ means qualified real property—
‘‘(i) which is located in an Indian res-
ervation,
‘‘(ii) which is used by the taxpayer
predominantly in the active conduct of a
trade or business within an Indian reserva-
tion, and
‘‘(iii) which is originally placed in
service by the taxpayer.
‘‘(F) QUALIFIED
REAL
PROPERTY.—The
term ‘qualified real property’ means property for
which depreciation is allowable under section
168 and which is described in clause (I), (II), or
(III) of subparagraph (D)(ii).
‘‘(G) RESERVATION
INFRASTRUCTURE
IN-
VESTMENT.—
‘‘(i) IN GENERAL.—The term ‘reserva-
tion 
infrastructure 
investment’ 
means
qualified personal property or qualified real
property which—
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‘‘(I) benefits the tribal infrastruc-
ture,
‘‘(II) is available to the general
public, and
‘‘(III) is placed in service in con-
nection with the taxpayer’s active con-
duct of a trade or business within an
Indian reservation.
‘‘(ii) PROPERTY MAY BE LOCATED OUT-
SIDE
THE
RESERVATION.—Qualified per-
sonal property and qualified real property
used or located outside an Indian reserva-
tion shall be reservation infrastructure in-
vestment only if its purpose is to connect to
existing tribal infrastructure in the reserva-
tion, and shall include, but not be limited
to, roads, power lines, water systems, rail-
road spurs, and communications facilities.
‘‘(H) COORDINATION
WITH
OTHER
CRED-
ITS.—The term ‘qualified Indian reservation
property’ shall not include any property with re-
spect to which the energy credit or the rehabilita-
tion credit is allowed.
‘‘(3) REAL ESTATE RENTALS.—For purposes of
this section, the rental to others of real property lo-
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‘‘(iii) if such Indian unemployment
rate does not exceed 150 percent, 0 percent
of such credit.
‘‘(B) 
SPECIAL
RULE
FOR
LARGE
PROJECTS.—In the case of a qualified Indian
reservation property which has (or is a compo-
nent of a project which has) a projected construc-
tion period of more than 2 years or a cost of
more than $1,000,000, subparagraph (A) shall
apply by substituting ‘during the earlier of the
calendar year in which the taxpayer enters into
a binding agreement to make a qualified invest-
ment or the first calendar year in which the tax-
payer has expended at least 10 percent of the
taxpayer’s qualified investment, or the preceding
calendar year’ for ‘during the calendar year in
which the property is placed in service or during
the immediately preceding 2 calendar years’.
‘‘(C) DETERMINATION
OF
INDIAN
UNEM-
PLOYMENT.—For purposes of this paragraph,
with respect to any Indian reservation, the In-
dian unemployment rate shall be based upon In-
dians unemployed and able to work, and shall be
certified by the Secretary of the Interior.
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‘‘(6) COORDINATION WITH NONREVENUE LAWS.—
Any reference in this subsection to a provision not
contained in this title shall be treated for purposes of
this subsection as a reference to such provision as in
effect on the date of the enactment of this paragraph.’’
(2) LODGING
TO
QUALIFY.—Paragraph (2) of
section 50(b) (relating to property used for lodging)
is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C),
(B) by striking the period at the end of sub-
paragraph (D) and inserting ‘‘; and’’ and
(C) by adding at the end thereof the follow-
ing subparagraph:
‘‘(E) new reservation construction prop-
erty.’’
(c) RECAPTURE.—Subsection (a) of section 50 (relat-
ing to recapture in case of dispositions, etc.), is amended
by adding at the end thereof the following new paragraph:
‘‘(6) SPECIAL RULES FOR INDIAN RESERVATION
PROPERTY.—
‘‘(A) IN GENERAL.—If, during any taxable
year, property with respect to which the tax-
payer claimed an Indian reservation credit—
‘‘(i) is disposed of, or
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‘‘(ii) in the case of reservation personal
property—
‘‘(I) otherwise ceases to be invest-
ment credit property with respect to
the taxpayer, or
‘‘(II) is removed from the Indian
reservation, converted or otherwise
ceases to be Indian reservation prop-
erty,
the tax under this chapter for such taxable year
shall be increased by the amount described in
subparagraph (B).
‘‘(B) AMOUNT OF INCREASE.—The increase
in tax under subparagraph (A) shall equal the
aggregate decrease in the credits allowed under
section 38 by reason of section 48(c) for all prior
taxable years which would have resulted had the
qualified investment taken into account with re-
spect to the property been limited to an amount
which bears the same ratio to the qualified in-
vestment with respect to such property as the pe-
riod such property was held by the taxpayer
bears to the applicable recovery period under sec-
tion 168(g).
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‘‘(C) COORDINATION WITH OTHER RECAP-
TURE PROVISIONS.—In the case of property to
which this paragraph applies, paragraph (1)
shall not apply and the rules of paragraphs (3),
(4), and (5) shall apply.’’
(d) BASIS ADJUSTMENT TO REFLECT INVESTMENT
CREDIT.—Paragraph (3) of section 50(c) (relating to basis
adjustment to investment credit property) is amended by
striking ‘‘energy credit or reforestation credit’’ and insert-
ing ‘‘energy credit, reforestation credit or Indian reserva-
tion credit other than with respect to any expenditure for
new reservation construction property’’.
(e) CERTAIN GOVERNMENTAL USE PROPERTY TO
QUALIFY.—Paragraph (4) of section 50(b) (relating to
property used by governmental units or foreign persons or
entities) is amended by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respectively, and
inserting after subparagraph (C) the following new sub-
paragraph:
‘‘(D) EXCEPTION FOR RESERVATION INFRA-
STRUCTURE INVESTMENT.—This paragraph shall
not apply for purposes of determining the Indian
reservation credit with respect to reservation in-
frastructure investment.’’
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(f) APPLICATION OF AT-RISK RULES.—Subparagraph
(C) of section 49(a)(1) is amended by striking ‘‘and’’ at
the end of clause (ii), by striking the period at the end of
clause (iii) and inserting ‘‘, and’’, and by adding at the
end the following new clause:
‘‘(iv) the qualified investment in quali-
fied Indian reservation property.’’
(g) CLERICAL AMENDMENTS.—
(1) Section 48 is amended by striking the head-
ing and inserting the following:
‘‘SEC. 48. ENERGY CREDIT; REFORESTATION CREDIT; IN-
DIAN RESERVATION CREDIT.’’
(2) The table of sections for subpart E of part IV
of subchapter A of chapter 1 is amended by striking
out the item relating to section 48 and inserting the
following:
‘‘Sec. 48. Energy credit; reforestation credit; Indian reservation
credit.’’
(h) EFFECTIVE DATE.—The amendments made by this
section shall apply to property placed in service after De-
cember 31, 1993.
SEC. 8182. INDIAN EMPLOYMENT CREDIT.
(a) ALLOWANCE OF INDIAN EMPLOYMENT CREDIT.—
Section 38(b) (relating to general business credits) is
amended by striking ‘‘plus’’ at the end of paragraph (6),
by striking the period at the end of paragraph (7) and in-
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serting ‘‘, plus’’, and by adding after paragraph (7) the fol-
lowing new paragraph:
‘‘(8) the Indian employment credit as deter-
mined under section 45(a).’’
(b) AMOUNT OF INDIAN EMPLOYMENT CREDIT.—Sub-
part D of Part IV of subchapter A of chapter 1 (relating
to business related credits) is amended by adding at the
end thereof the following new section:
‘‘SEC. 45. INDIAN EMPLOYMENT CREDIT.
‘‘(a) AMOUNT OF CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 38,
the amount of the Indian employment credit deter-
mined under this section with respect to any em-
ployer for any taxable year is 10 percent (30 percent
in the case of an employer with at least 85 percent
Indian employees throughout the taxable year) of the
sum of—
‘‘(A) the qualified wages paid or incurred
during such taxable year, plus
‘‘(B) qualified employee health insurance
costs paid or incurred during such taxable year.
In no event shall the amount of the Indian employ-
ment credit for any taxable year exceed the credit
limitation amount determined under subsection (e)
for such taxable year.