I 
109TH CONGRESS 
1ST SESSION H. R. 3376 
To amend the Internal Revenue Code of 1986 to make technical corrections, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 21, 2005 
Mr. THOMAS introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to make 
technical corrections, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; 
TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Tax Technical Corrections Act of 2005’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this Act an amend-
ment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provi-
sion of the Internal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; amendment of 1986 Code; table of contents. 
Sec. 2. Amendments related to the American Jobs Creation Act of 2004. 
Sec. 3. Amendments related to the Working Families Tax Relief Act of 2004. 
Sec. 4. Amendments related to the Jobs and Growth Tax Relief Reconciliation 
Act of 2003. 
Sec. 5. Amendment related to the Victims of Terrorism Tax Relief Act of 2001. 
Sec. 6. Amendment related to the Transportation Equity Act for the 21st Cen-
tury. 
Sec. 7. Amendments related to the Taxpayer Relief Act of 1997. 
Sec. 8. Clerical corrections. 
Sec. 9. Other corrections related to the American Jobs Creation Act of 2004. 
SEC. 2. AMENDMENTS RELATED TO THE AMERICAN JOBS 
CREATION ACT OF 2004. 
(a) AMENDMENTS RELATED TO SECTION 102 OF 
THE ACT.— 
(1) Paragraph (1) of section 199(b) is amended 
by striking ‘‘the employer’’ and inserting ‘‘the tax-
payer’’. 
(2) Paragraph (2) of section 199(b) is amended 
to read as follows: 
‘‘(2) W–2 WAGES.—For purposes of this sec-
tion, the term ‘W–2 wages’ means, with respect to 
any person for any taxable year of such person, the 
sum of the amounts described in paragraphs (3) and 
(8) of section 6051(a) paid by such person with re-
spect to employment of employees by such person 
during the calendar year ending during such taxable
year. Such term shall not include any amount which 
is not properly included in a return filed with the 
Social Security Administration on or before the 60th 
day after the due date (including extensions) for 
such return.’’. 
(3) Subparagraph (B) of section 199(c)(1) is 
amended by inserting ‘‘and’’ at the end of clause (i), 
by striking clauses (ii) and (iii), and by inserting 
after clause (i) the following: 
‘‘(ii) other expenses, losses, or deduc-
tions (other than the deduction allowed 
under this section), which are properly al-
locable to such receipts.’’. 
(4) Paragraph (2) of section 199(c) is amended 
to read as follows: 
‘‘(2) ALLOCATION
METHOD.—The Secretary 
shall prescribe rules for the proper allocation of 
items described in paragraph (1) for purposes of de-
termining qualified production activities income. 
Such rules shall provide for the proper allocation of 
items whether or not such items are directly allo-
cable to domestic production gross receipts.’’. 
(5) Subparagraph (A) of section 199(c)(4) is 
amended by striking clauses (ii) and (iii) and insert-
ing the following new clauses:
‘‘(ii) in the case of a taxpayer engaged 
in the active conduct of a construction 
trade or business, construction of real 
property performed in the United States 
by the taxpayer in the ordinary course of 
such trade or business, or 
‘‘(iii) in the case of a taxpayer en-
gaged in the active conduct of an engineer-
ing or architectural services trade or busi-
ness, engineering or architectural services 
performed in the United States by the tax-
payer in the ordinary course of such trade 
or business with respect to the construc-
tion of real property in the United 
States.’’. 
(6) Subparagraph (B) of section 199(c)(4) is 
amended by striking ‘‘and’’ at the end of clause (i), 
by striking the period at the end of clause (ii) and 
inserting ‘‘, or’’, and by adding at the end the fol-
lowing: 
‘‘(iii) the lease, rental, license, sale, 
exchange, or other disposition of land.’’. 
(7) Paragraph (4) of section 199(c) is amended 
by adding at the end the following new subpara-
graphs:
‘‘(C) SPECIAL
RULE
FOR
CERTAIN
GOV-
ERNMENT CONTRACTS.—Gross receipts derived 
from the manufacture or production of any 
property described in subparagraph (A)(i)(I) 
shall be treated as meeting the requirements of 
subparagraph (A)(i) if— 
‘‘(i) such property is manufactured or 
produced by the taxpayer pursuant to a 
contract with the Federal Government, and 
‘‘(ii) the Federal Acquisition Regula-
tion requires that title or risk of loss with 
respect to such property be transferred to 
the Federal Government before the manu-
facture or production of such property is 
complete. 
‘‘(D) PARTNERSHIPS
OWNED
BY
EX-
PANDED
AFFILIATED
GROUPS.—For purposes 
of this paragraph, if all of the interests in the 
capital and profits of a partnership are owned 
by members of a single expanded affiliated 
group at all times during the taxable year of 
such partnership, the partnership and all mem-
bers of such group shall be treated as a single 
taxpayer during such period.’’.