1917 
(3) in subparagraph (C)— 
(A) by striking ‘‘upon establishment of the 
national system,’’; and 
(B) by striking the period at the end and 
inserting ‘‘; and’’; and 
(4) by adding at the end the following— 
‘‘(D) to establish and achieve compliance 
with an implementation plan under section 107 
of the NICS Improvement Amendments Act of 
2007.’’. 
SEC. 605. IMPROVING INFORMATION SHARING WITH THE 
STATES. 
(a) IN GENERAL.—Title I of the NICS Improvement 
Amendments Act of 2007 (34 U.S. 40911 et seq.) is amended 
by adding at the end the following: 
‘‘SEC. 107. IMPLEMENTATION PLAN. 
‘‘(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of the Fix NICS Act of 2018, the Attorney 
General, in coordination with the States and Indian tribal 
governments, shall establish, for each State or Indian tribal 
government, a plan to ensure maximum coordination and 
automation of the reporting or making available of appro-
priate records to the National Instant Criminal Back-
ground Check System established under section 103 of the 
Brady Handgun Violence Prevention Act (34 U.S.C. 40901)
1918 
and the verification of the accuracy of those records during 
a 4-year period specified in the plan. The records shall be 
limited to those of an individual described in subsection (g) 
or (n) of section 922 of title 18, United States Code 
‘‘(b) BENCHMARK REQUIREMENTS.—Each plan estab-
lished under this section shall include annual benchmarks 
to enable the Attorney General to assess the implementation 
of the plan, including— 
‘‘(1) qualitative goals and quantitative measures; 
and 
‘‘(2) a needs assessment, including estimated 
compliance costs. 
‘‘(c) COMPLIANCE DETERMINATION.—Not later than 
the end of each fiscal year beginning after the date of the 
establishment of an implementation plan under this section, 
the Attorney General shall determine whether each State or 
Indian tribal government has achieved substantial compli-
ance with the benchmarks included in the plan. 
‘‘(d) ACCOUNTABILITY.—The Attorney General— 
‘‘(1) shall disclose and publish, including on the 
website of the Department of Justice— 
‘‘(A) the name of each State or Indian trib-
al government that received a determination of 
failure to achieve substantial compliance with an
1919 
implementation plan under subsection (c) for the 
preceding fiscal year; and 
‘‘(B) a description of the reasons for which 
the Attorney General has determined that the 
State or Indian tribal government is not in sub-
stantial compliance with the implementation 
plan, including, to the greatest extent possible, a 
description of the types and amounts of records 
that have not been submitted; and 
‘‘(2) if a State or Indian tribal government de-
scribed in paragraph (1) subsequently receives a de-
termination of substantial compliance, shall— 
‘‘(A) immediately correct the applicable 
record; and 
‘‘(B) not later than 3 days after the deter-
mination, remove the record from the website of 
the Department of Justice and any other loca-
tion where the record was published. 
‘‘(e) INCENTIVES.—For each of fiscal years 2018 
through 2022, the Attorney General shall give affirmative 
preference to all Bureau of Justice Assistance discretionary 
grant applications of a State or Indian tribal government 
that received a determination of substantial compliance 
under subsection (c) for the fiscal year in which the grant 
was solicited.’’.
1920 
(b) TABLE OF CONTENTS.—The table of contents in 
section 1(b) of the NICS Improvement Amendments Act of 
2007 (Public Law 110–180; 121 Stat. 2559) is amended 
by inserting after the item relating to section 106 the fol-
lowing: 
‘‘Sec. 107. Implementation plan.’’. 
TITLE VII—STATE SEXUAL RISK 
AVOIDANCE EDUCATION PRO-
GRAM 
SEC. 701. FULL PAYMENT BY SECRETARY FOR STATE SEX-
UAL RISK AVOIDANCE EDUCATION PROGRAM. 
(a) IN GENERAL.—Paragraph (1) of section 510(d) of 
the Social Security Act (42 U.S.C. 710(d)) is amended by 
inserting before the period at the end the following: ‘‘, except 
that section 503(a) shall be applied by substituting ‘the 
total of the sums’ for ‘four-sevenths of the total of the 
sums’ ’’. 
(b) TECHNICAL CORRECTIONS.—Section 510(a)(1)(A) 
of the Social Security Act (42 U.S.C. 710(a)(1)(A)) is 
amended— 
(1) by striking ‘‘subsection (e)(1)’’ and inserting 
‘‘subsection (f)(1)’’; and 
(2) by striking ‘‘subsection (e)(2)’’ and inserting 
‘‘subsection (f)(2)’’.
1922 
‘‘(A) not later than 5 business days after the 
date on which those asset coverage requirements 
are approved under subparagraph (D) of this 
paragraph, the business development company 
discloses that the requirements were approved, 
and the effective date of the approval, in— 
‘‘(i) any filing submitted to the Com-
mission under section 13(a) or 15(d) of the 
Securities Exchange Act of 1934 (15 U.S.C. 
78m(a); 78o(d)); and 
‘‘(ii) a notice on the website of the 
business development company; 
‘‘(B) the business development company dis-
closes, in each periodic filing required under sec-
tion 13(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78m(a))— 
‘‘(i) the aggregate outstanding prin-
cipal amount or liquidation preference, as 
applicable, of the senior securities issued by 
the business development company and the 
asset coverage percentage as of the date of 
the business development company’s most 
recent financial statements included in that 
filing;
1923 
‘‘(ii) that the business development 
company, under subparagraph (D), has ap-
proved the asset coverage requirements 
under this paragraph; and 
‘‘(iii) the effective date of the approval 
described in clause (ii); 
‘‘(C) with respect to a business development 
company that is an issuer of common equity se-
curities, each periodic filing of the company re-
quired under section 13(a) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78m(a)) includes 
disclosures that are reasonably designed to en-
sure that shareholders are informed of— 
‘‘(i) the amount of senior securities 
(and the associated asset coverage ratios) of 
the company, determined as of the date of 
the most recent financial statements of the 
company included in that filing; and 
‘‘(ii) the principal risk factors associ-
ated with the senior securities described in 
clause (i), to the extent that risk is incurred 
by the company; and 
‘‘(D) the company— 
‘‘(i)(I) through a vote of the required 
majority (as defined in section 57(o)), ap-
1924 
proves the application of this paragraph to 
the company, to become effective on the date 
that is 1 year after the date of the approval; 
or 
‘‘(II) obtains, at a special or annual 
meeting of shareholders or partners at 
which a quorum is present, the approval of 
more than 50 percent of the votes cast for 
the application of this paragraph to the 
company, to become effective on the first 
day after the date of the approval; and 
‘‘(ii) if the company is not an issuer of 
common equity securities that are listed on 
a national securities exchange, extends, to 
each person that is a shareholder as of the 
date of an approval described in subclause 
(I) or (II) of clause (i), as applicable, the 
opportunity (which may include a tender 
offer) to sell the securities held by that 
shareholder as of that applicable approval 
date, with 25 percent of those securities to 
be repurchased in each of the 4 calendar 
quarters following the calendar quarter in 
which that applicable approval date takes 
place.’’.
1925 
(b) CONFORMING AMENDMENTS.— 
(1) INVESTMENT ADVISERS ACT OF 1940.—Sec-
tion 205(b)(3) of the Investment Advisers Act of 1940 
(15 U.S.C. 80b–5(b)(3)) is amended— 
(A) by striking ‘‘section 61(a)(3)(B)(iii)’’ 
and inserting ‘‘section 61(a)(4)(B)(iii)’’; and 
(B) by striking ‘‘section 61(a)(3)(B)’’ and 
inserting ‘‘section 61(a)(4)(B)’’. 
(2) INVESTMENT COMPANY ACT OF 1940.—The In-
vestment Company Act of 1940 (15 U.S.C. 80a–1 et 
seq.) is amended— 
(A) in section 57 (15 U.S.C. 80a–56)— 
(i) in subsection (j)(1), by striking 
‘‘section 61(a)(3)(B)’’ and inserting ‘‘section 
61(a)(4)(B)’’; and 
(ii) in subsection (n)(2), by striking 
‘‘section 61(a)(3)(B)’’ and inserting ‘‘section 
61(a)(4)(B)’’; and 
(B) in section 63(3) (15 U.S.C. 80a–62(3)), 
by striking ‘‘section 61(a)(3)’’ and inserting 
‘‘section 61(a)(4)’’. 
SEC. 803. PARITY FOR BUSINESS DEVELOPMENT COMPA-
NIES REGARDING OFFERING AND PROXY 
RULES. 
(a) DEFINITIONS.—In this section—
1926 
(1) the term ‘‘business development company’’ 
has the meaning given the term in section 2(a) of the 
Investment Company Act of 1940 (15 U.S.C. 80a– 
2(a)); 
(2) the term ‘‘Commission’’ means the Securities 
and Exchange Commission; 
(3) the term ‘‘Form N–2’’ means the form de-
scribed in section 239.14 of title 17, Code of Federal 
Regulations; 
(4) the term ‘‘Form S–3’’ means the form de-
scribed in section 239.13 of title 17, Code of Federal 
Regulations; and 
(5) the term ‘‘Schedule 14A’’ means the informa-
tion required under section 240.14a–101 of title 17, 
Code of Federal Regulations. 
(b) REVISION TO RULES.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Commission 
shall make the revisions described in paragraph (2) to 
allow a business development company that has filed 
an election under section 54 of the Investment Com-
pany Act of 1940 (15 U.S.C. 80a–53) to use the secu-
rities offering and proxy rules that are available to 
other issuers that are required to file reports under
1927 
section 13(a) or section 15(d) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78m(a); 78o(d)). 
(2) REQUIRED
REVISIONS.—The revisions de-
scribed in this paragraph are revisions to— 
(A) section 230.405 of title 17, Code of Fed-
eral Regulations— 
(i) to remove the exclusion of a busi-
ness development company from the defini-
tion of the term ‘‘well-known seasoned 
issuer’’ under that section; and 
(ii) to add a registration statement 
filed on Form N–2 to the definition of the 
term ‘‘automatic shelf registration state-
ment’’ under that section; 
(B) sections 230.168 and 230.169 of title 
17, Code of Federal Regulations, to remove the 
exclusion of a business development company 
from an issuer that is eligible for the exemptions 
under those sections; 
(C) section 230.163 of title 17, Code of Fed-
eral Regulations, to remove a business develop-
ment company from the list of issuers that are 
ineligible for the exemption under that section; 
(D) section 230.163A of title 17, Code of 
Federal Regulations, to remove the communica-
1928 
tions made by a business development company 
from the list of communications that are ineli-
gible for the exemption under that section; 
(E) section 230.134 of title 17, Code of Fed-
eral Regulations, to remove the exclusion of a 
communication relating to a business develop-
ment company from the application of that sec-
tion; 
(F) sections 230.138 and 230.139 of title 17, 
Code of Federal Regulations, to specifically in-
clude a business development company as an 
issuer to which those sections apply; 
(G) section 230.156 of title 17, Code of Fed-
eral Regulations, to provide that nothing in that 
section may be construed to prevent a business 
development company from qualifying for an ex-
emption under section 230.168 or 230.169 of title 
17, Code of Federal Regulations, as amended by 
the Commission in accordance with the require-
ments of this section; 
(H) section 230.164 of title 17, Code of Fed-
eral Regulations, to remove a business develop-
ment company from the list of issuers that are 
excluded under that section;
1929 
(I) section 230.433 of title 17, Code of Fed-
eral Regulations, to specifically include a busi-
ness development company that is a well-known 
seasoned issuer as an issuer to which that section 
applies; 
(J) section 230.415 of title 17, Code of Fed-
eral Regulations to state that the registration for 
securities under section 230.415(a)(1)(x) of title 
17, Code of Federal Regulations, includes securi-
ties registered on Form N–2 by a business devel-
opment company that would otherwise meet the 
eligibility requirements of Form S–3; 
(K) section 230.497 of title 17, Code of Fed-
eral Regulations, to include a process for a busi-
ness development company to file a form of pro-
spectus in the same manner as the process for fil-
ing 
a 
form 
of 
prospectus 
under 
section 
230.424(b) of title 17, Code of Federal Regula-
tions; 
(L) sections 230.172 and 230.173 of title 17, 
Code of Federal Regulations, to remove the exclu-
sion of an offering of a business development 
company from the application of those sections; 
(M) section 230.418 of title 17, Code of Fed-
eral Regulations, to provide that a business de-
1930 
velopment company that would otherwise meet 
the eligibility requirements of Form S–3 shall be 
exempt from paragraph (a)(3) of that section; 
(N) Schedule 14A to revise item 13(b)(1) of 
that Schedule to include a business development 
company that would otherwise meet the require-
ments of note E of that Schedule as an issuer to 
which that item applies; 
(O) section 243.103 of title 17, Code of Fed-
eral Regulations, to provide that paragraph (a) 
of that section applies for the purposes of Form 
N–2; and 
(P) item 34 on Form N–2 to require a busi-
ness development company to provide under-
takings that are no more restrictive than the un-
dertakings that are required of a registrant 
under section 229.512 of title 17, Code of Federal 
Regulations. 
(c) REVISION TO FORM N–2.—Not later than 1 year 
after the date of enactment of this Act, the Commission shall 
revise Form N–2— 
(1) to include an item or instruction that is 
similar to item 12 on Form S–3 to provide that a 
business development company that would otherwise 
meet the requirements of Form S–3 shall incorporate
1931 
by reference the reports and documents filed by the 
business development company under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.) into the 
registration statement of the business development 
company filed on Form N–2; and 
(2) to include an item or instruction that is 
similar to the instruction regarding automatic shelf 
offerings by well-known seasoned issuers on Form S– 
3 to provide that a business development company 
that is a well-known seasoned issuer may file auto-
matic shelf offerings on Form N–2. 
(d) TREATMENT IF REVISIONS NOT COMPLETED IN 
TIMELY MANNER.—If the Commission fails to complete the 
revisions required under subsections (b) and (c) by the dates 
described in those subsections, a business development com-
pany, during the period beginning on the date that is 1 
day after 1 year after the date of enactment of this Act 
and ending on the date that the Commission completes those 
revisions, may deem those revisions to have been completed 
in accordance with the actions required to be taken by the 
Commission under those subsections. 
(e) RULES OF CONSTRUCTION.— 
(1) TREATMENT
OF
SUCCESSOR
REGULATIONS 
AND FORMS.—Any reference in this section to a regu-
lation or form shall be construed as a reference to—
1932 
(A) that regulation or form, as in effect on 
the day before the date of enactment of this Act; 
or 
(B) any successor to that regulation or 
form. 
(2) DISTRIBUTION OF SALES MATERIAL.—Noth-
ing in this section, or in the amendments made pur-
suant to the requirements of this section, may be con-
strued to prevent a business development company 
from distributing sales material under section 
230.482 of title 17, Code of Federal Regulations. 
TITLE IX—SMALL BUSINESS AC-
CESS TO CAPITAL AFTER A 
NATURAL DISASTER ACT 
SEC. 901. SHORT TITLE. 
This title may be cited as the ‘‘Small Business Access 
to Capital After a Natural Disaster Act’’. 
SEC. 902. EXPANDING ACCESS TO CAPITAL FOR SMALL 
BUSINESSES IMPACTED BY A NATURAL DIS-
ASTER. 
Section 4 of the Securities Exchange Act of 1934 (15 
U.S.C. 78d) is amended— 
(1) in subsection (j)(4)(C), by striking ‘‘minor-
ity-owned and women-owned small businesses’’ and 
inserting ‘‘minority-owned small businesses, women-
1933 
owned small businesses, and small businesses affected 
by hurricanes or other natural disasters’’; and 
(2) in subsection (j)(6)(B)(iii), by striking ‘‘mi-
nority-owned and women-owned small businesses’’ 
and inserting ‘‘minority-owned small businesses, 
women-owned small businesses, and small businesses 
affected by hurricanes or other natural disasters’’. 
TITLE X—TAYLOR FORCE ACT 
SEC. 1001. SHORT TITLE. 
This title may be cited as the ‘‘Taylor Force Act’’. 
SEC. 1002. FINDINGS. 
Congress makes the following findings: 
(1) The Palestinian Authority’s practice of pay-
ing salaries to terrorists serving in Israeli prisons, as 
well as to the families of deceased terrorists, is an in-
centive to commit acts of terror. 
(2) The United States does not provide direct 
budgetary support to the Palestinian Authority. The 
United States does pay certain debts held by the Pal-
estinian Authority and funds programs for which the 
Palestinian Authority would otherwise be responsible. 
(3) The United States Government supports com-
munity-based programs in the West Bank and Gaza 
that provide for basic human needs, such as food,
1934 
water, health, shelter, protection, education, and live-
lihoods, and that promote peace and development. 
(4) Since fiscal year 2015, annual appropria-
tions legislation has mandated the reduction of Eco-
nomic Support Fund aid for the Palestinian Author-
ity as a result of their payments for acts of terrorism 
including, in fiscal year 2017, a reduction ‘‘by an 
amount the Secretary determines is equivalent to the 
amount expended by the Palestinian Authority, the 
Palestine Liberation Organization, and any successor 
or affiliated organizations with such entities as pay-
ments for acts of terrorism by individuals who are 
imprisoned after being fairly tried and convicted for 
acts of terrorism and by individuals who died com-
mitting acts of terrorism during the previous cal-
endar year’’. 
SEC. 1003. SENSE OF CONGRESS. 
Congress— 
(1) calls on the Palestinian Authority, the Pal-
estine Liberation Organization, and any successor or 
affiliated organizations to stop payments for acts of 
terrorism by individuals who are imprisoned after 
being fairly tried and convicted for acts of terrorism 
and by individuals who died committing acts of ter-
1935 
rorism and to repeal the laws authorizing such pay-
ments; 
(2) calls on all donor countries providing budg-
etary assistance to the Palestinian Authority to cease 
direct budgetary support until the Palestinian Au-
thority stops all payments incentivizing terror; 
(3) urges the Palestinian Authority to develop 
programs to provide essential public services and sup-
port to any individual in need within its jurisdic-
tional control, rather than to provide payments con-
tingent on perpetrating acts of violence; 
(4) urges the United States Permanent Rep-
resentative to the United Nations to use the voice, 
vote, and influence of the United States at the United 
Nations to highlight the issue of Palestinian Author-
ity payments for acts of terrorism and to urge other 
Member States to apply pressure upon the Pales-
tinian Authority to immediately cease such payments; 
and 
(5) urges the Department of State to use its bi-
lateral and multilateral engagements with all govern-
ments and organizations committed to the cause of 
peace between Israel and the Palestinians to highlight 
the issue of Palestinian Authority payments for acts 
of terrorism and to urge such governments and orga-
1936 
nizations to join the United States in calling on the 
Palestinian Authority to immediately cease such pay-
ments. 
SEC. 1004. LIMITATION ON ASSISTANCE TO THE WEST BANK 
AND GAZA. 
(a) LIMITATION.— 
(1) IN GENERAL.—Funds authorized to be appro-
priated or otherwise made available for assistance 
under chapter 4 of part II of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2346 et seq.; relating to Eco-
nomic Support Fund) and available for assistance for 
the West Bank and Gaza that directly benefits the 
Palestinian Authority may only be made available for 
such purpose if, except as provided in subsection (d), 
not later than 30 days after the date of the enactment 
of this Act, and every 180 days thereafter, the Sec-
retary of State certifies in writing to the appropriate 
congressional committees that the Palestinian Author-
ity, the Palestine Liberation Organization, and any 
successor or affiliated organizations— 
(A) are taking credible steps to end acts of 
violence against Israeli citizens and United 
States citizens that are perpetrated or materially 
assisted by individuals under their jurisdictional 
control, such as the March 2016 attack that
1937 
killed former United States Army officer Taylor 
Force, a veteran of the wars in Iraq and Afghan-
istan; 
(B) have terminated payments for acts of 
terrorism against Israeli citizens and United 
States citizens to any individual, after being 
fairly tried, who has been imprisoned for such 
acts of terrorism and to any individual who died 
committing such acts of terrorism, including to 
a family member of such individuals; 
(C) have revoked any law, decree, regula-
tion, or document authorizing or implementing a 
system of compensation for imprisoned individ-
uals that uses the sentence or period of incarcer-
ation of an individual imprisoned for an act of 
terrorism to determine the level of compensation 
paid, or have taken comparable action that has 
the effect of invalidating any such law, decree, 
regulation, or document; and 
(D) are publicly condemning such acts of 
violence and are taking steps to investigate or 
are cooperating in investigations of such acts to 
bring the perpetrators to justice. 
(2) 
ADDITIONAL
CERTIFICATION
REQUIRE-
MENT.—The Secretary of State shall include in the
1938 
certification required under paragraph (1) the defini-
tion of ‘‘acts of terrorism’’ that the Secretary used for 
purposes of making the determination in subpara-
graph (B) of such paragraph. 
(b) EXCEPTION.— 
(1) IN GENERAL.—Subject to paragraph (2), the 
limitation on assistance under subsection (a) shall 
not apply to— 
(A) payments made to the East Jerusalem 
Hospital Network; 
(B) assistance for wastewater projects not 
exceeding $5,000,000 in any one fiscal year; and 
(C) assistance for any other program, 
project, or activity that provides vaccinations to 
children not exceeding $500,000 in any one fis-
cal year. 
(2) NOTIFICATION.—The Secretary of State shall 
notify in writing the appropriate congressional com-
mittees not later than 15 days prior to making funds 
available for assistance under subparagraph (A), (B), 
or (C) of paragraph (1). 
(c) RULE OF CONSTRUCTION.—Funds withheld pursu-
ant to this section— 
(1) shall be deemed to satisfy any similar with-
holding or reduction required under any other provi-
1939 
sion of law relating to the Palestinian Authority’s 
payments for acts of terrorism; and 
(2) shall be in an amount that is not less than 
the total amount required by such other provision of 
law. 
(d) INITIAL USE AND DISPOSITION OF WITHHELD 
FUNDS.— 
(1) PERIOD OF AVAILABILITY.—Funds withheld 
pursuant to this section are authorized to remain 
available for an additional 2 years from the date on 
which the availability of such funds would otherwise 
have expired. 
(2) USE OF FUNDS.—Funds withheld pursuant 
to this section may be made available for assistance 
for the West Bank and Gaza that directly benefits the 
Palestinian Authority upon a certification by the Sec-
retary of State that the Palestinian Authority, the 
Palestine Liberation Organization, and any successor 
or affiliated organizations have met the conditions set 
forth in subsection (a). Except as provided in para-
graph (3), such funds may not be made available for 
any purpose other than for assistance for the West 
Bank and Gaza that directly benefits the Palestinian 
Authority.
1940 
(3) DISPOSITION
OF
UNUSED
FUNDS.—Begin-
ning on the date that is 180 days after the last day 
on which the initial availability of funds withheld 
pursuant to this section would otherwise have expired, 
such funds are authorized to be made available to the 
Department of State for assistance under chapter 4 of 
part II of the Foreign Assistance Act of 1961 (22 
U.S.C. 2346 et seq.; relating to Economic Support 
Fund) in the following manner— 
(A) 50 percent for purposes of assistance 
other than that deemed benefiting the Pales-
tinian Authority; and 
(B) 50 percent for purposes other than as-
sistance for the West Bank and Gaza. 
(e) REPORT.— 
(1) IN GENERAL.—If the Secretary of State is 
unable to certify in writing to the appropriate con-
gressional committees that the Palestinian Authority, 
the Palestine Liberation Organization, and any suc-
cessor or affiliated organizations have met the condi-
tions described in subsection (a), the Secretary shall, 
not later than 15 days after the date on which the 
Secretary is unable to make such certification, submit 
to the appropriate congressional committees a report 
that contains the following:
1941 
(A) The reasons why the Secretary was un-
able to certify in writing that such organizations 
have met such requirements. 
(B) The definition of ‘‘acts of terrorism’’ 
that the Secretary used for purposes of making 
the determination in subparagraph (B) of sub-
section (a)(1). 
(C) The total amount of funds to be with-
held. 
(2) FORM.—The report required by this sub-
section shall be submitted in unclassified form but 
may include a classified annex. 
(f) LIST OF CRITERIA.— 
(1) IN GENERAL.—Not later than 15 days after 
the date of the enactment of this Act, the Secretary of 
State shall submit to the appropriate congressional 
committees a list of the criteria that the Secretary 
uses to determine whether assistance for the West 
Bank and Gaza is assistance that directly benefits the 
Palestinian Authority for purposes of carrying out 
this section. 
(2) UPDATE.—The Secretary of State shall sub-
mit to the appropriate congressional committees an 
updated list under paragraph (1) not later than 15
1942 
days after the date on which the Secretary makes any 
modification to the list. 
SEC. 1005. INITIAL REPORT. 
(a) IN GENERAL.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary of State 
shall submit to the appropriate congressional committees a 
report describing those programs, projects, and activities 
funded by the United States Government that have been or 
will be suspended by reason of withholding of funds under 
section 1004. 
(b) FORM.—The report required by subsection (a) shall 
be submitted in unclassified form but may include a classi-
fied annex. 
SEC. 1006. ANNUAL REPORT. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, and annually thereafter 
for 6 years, the Secretary of State shall submit to the appro-
priate congressional committees a report including at a 
minimum the following elements: 
(1) An estimate of the amount expended by the 
Palestinian Authority, the Palestine Liberation Orga-
nization, and any successor or affiliated organiza-
tions during the previous calendar year as payments 
for acts of terrorism by individuals who are impris-
oned for such acts.
1943 
(2) An estimate of the amount expended by the 
Palestinian Authority, the Palestine Liberation Orga-
nization, and any successor or affiliated organiza-
tions during the previous calendar year as payments 
to the families of deceased individuals who committed 
an act of terrorism. 
(3) An overview of Palestinian laws, decrees, reg-
ulations, or documents in effect the previous calendar 
year that authorize or implement any payments re-
ported under paragraphs (1) and (2). 
(4) A description of United States Government 
policy, efforts, and engagement with the Palestinian 
Authority in order to confirm the revocation of any 
law, decree, regulation, or document in effect the pre-
vious calendar year that authorizes or implements 
any payments reported under paragraphs (1) and 
(2). 
(5) A description of United States Government 
policy, efforts, and engagement with other govern-
ments, and at the United Nations, to highlight the 
issue of Palestinian payments for acts of terrorism 
and to urge other nations to join the United States 
in calling on the Palestinian Authority to imme-
diately cease such payments.
1944 
(b) FORM OF REPORT.—The report required by sub-
section (a) shall be submitted in unclassified form but may 
include a classified annex. 
SEC. 1007. APPROPRIATE CONGRESSIONAL COMMITTEES 
DEFINED. 
In this title, the term ‘‘appropriate congressional com-
mittees’’ means— 
(1) the Committee on Appropriations and the 
Committee on Foreign Affairs of the House of Rep-
resentatives; and 
(2) the Committee on Appropriations and the 
Committee on Foreign Relations of the Senate. 
TITLE XI—FARM ACT 
SEC. 1101. SHORT TITLE. 
This title may be cited as the ‘‘Fair Agricultural Re-
porting Method Act’’ or the ‘‘FARM Act’’. 
SEC. 1102. EXEMPTIONS FROM CERTAIN NOTICE REQUIRE-
MENTS AND PENALTIES. 
Section 103 of the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42 U.S.C. 
9603) is amended by striking subsection (e) and inserting 
the following: 
‘‘(e) APPLICABILITY
TO
REGISTERED
PESTICIDE 
PRODUCTS AND AIR EMISSIONS FROM ANIMAL WASTE AT 
FARMS.—
1945 
‘‘(1) IN GENERAL.—This section shall not apply 
to— 
‘‘(A) the application of a pesticide product 
registered under the Federal Insecticide, Fun-
gicide, and Rodenticide Act (7 U.S.C. 136 et 
seq.) or the handling and storage of such a pes-
ticide product by an agricultural producer; or 
‘‘(B) air emissions from animal waste (in-
cluding decomposing animal waste) at a farm. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) ANIMAL WASTE.— 
‘‘(i) IN GENERAL.—The term ‘animal 
waste’ means feces, urine, or other excre-
ment, digestive emission, urea, or similar 
substances emitted by animals (including 
any form of livestock, poultry, or fish). 
‘‘(ii) INCLUSIONS.—The term ‘animal 
waste’ includes animal waste that is mixed 
or commingled with bedding, compost, feed, 
soil, or any other material typically found 
with such waste. 
‘‘(B) FARM.—The term ‘farm’ means a site 
or area (including associated structures) that— 
‘‘(i) is used for— 
‘‘(I) the production of a crop; or
1946 
‘‘(II) the raising or selling of ani-
mals (including any form of livestock, 
poultry, or fish); and 
‘‘(ii) under normal conditions, pro-
duces during a farm year any agricultural 
products with a total value equal to not less 
than $1,000.’’. 
SEC. 1103. APPLICATION. 
Nothing in this title or an amendment made by this 
title affects, or supersedes or modifies the responsibility or 
authority of any Federal official or employee to comply 
with or enforce, any requirement under the Comprehensive 
Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9601 et seq.), other than the hazardous 
substance notification requirements under section 103 of 
that Act (42 U.S.C. 9603) with respect to air emissions 
from animal waste at farms. 
TITLE XII—TIPPED EMPLOYEES 
SEC. 1201. TIPPED EMPLOYEES. 
(a) PROHIBITION ON KEEPING TIPS.—Section 3(m) of 
the Fair Labor Standards Act of 1938 (29 U.S.C. 203(m)) 
is amended— 
(1) by redesignating paragraphs (1) and (2) as 
clauses (i) and (ii), respectively; 
(2) by inserting ‘‘(1)’’ after ‘‘(m)’’;
1947 
(3) by striking ‘‘any employee. In determining’’ 
and inserting the following: ‘‘any employee. 
‘‘(2)(A) In determining’’; 
(4) in clause (ii) of paragraph (2)(A) (as so re-
designated), by striking ‘‘paragraph (1)’’ and insert-
ing ‘‘clause (i)’’; and 
(5) by adding at the end the following: 
‘‘(B) An employer may not keep tips received by its 
employees for any purposes, including allowing managers 
or supervisors to keep any portion of employees’ tips, re-
gardless of whether or not the employer takes a tip credit.’’. 
(b) PENALTIES.—Section 16 of the Fair Labor Stand-
ards Act of 1938 (29 U.S.C. 216) is amended— 
(1) in subsection (b)— 
(A) by inserting after the second sentence 
the following: ‘‘Any employer who violates sec-
tion 3(m)(2)(B) shall be liable to the employee or 
employees affected in the amount of the sum of 
any tip credit taken by the employer and all 
such tips unlawfully kept by the employer, and 
in an additional equal amount as liquidated 
damages.’’; and 
(B) by striking ‘‘either of’’; 
(2) in subsection (c), by adding at the end the 
following: ‘‘The authority and requirements described
1948 
in this subsection shall apply with respect to a viola-
tion of section 3(m)(2)(B), as appropriate, and the 
employer shall be liable for the amount of the sum of 
any tip credit taken by the employer and all such tips 
unlawfully kept by the employer, and an additional 
equal amount as liquidated damages.’’; and 
(3) in subsection (e)(2), by adding at the end the 
following: 
‘‘Any 
person 
who 
violates 
section 
3(m)(2)(B) shall be subject to a civil penalty not to 
exceed $1,100 for each such violation, as the Secretary 
determines appropriate, in addition to being liable to 
the employee or employees affected for all tips unlaw-
fully kept, and an additional equal amount as liq-
uidated damages, as described in subsection (b).’’. 
(c) EFFECT ON REGULATIONS.—The portions of the 
final rule promulgated by the Department of Labor entitled 
‘‘Updating Regulations Issued Under the Fair Labor 
Standards Act’’ (76 Fed. Reg. 18832 (April 5, 2011)) that 
revised sections 531.52, 531.54, and 531.59 of title 29, Code 
of Federal Regulations (76 Fed. Reg. 18854–18856) and 
that are not addressed by section 3(m) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 203(m)) (as such section 
was in effect on April 5, 2011), shall have no further force 
or effect until any future action taken by the Administrator 
of the Wage and Hour Division of the Department of Labor.
1949 
TITLE XIII—REVISIONS TO PASS- 
THROUGH PERIOD AND PAY-
MENT RULES 
SEC. 1301. REVISIONS TO PASS-THROUGH PERIOD AND PAY-
MENT RULES UNDER OPPS FOR CERTAIN NEW 
DRUGS AND BIOLOGICALS. 
(a) REVISIONS TO PASS-THROUGH PERIOD AND PAY-
MENT RULES.— 
(1) IN GENERAL.—Section 1833(t)(6) of the So-
cial Security Act (42 U.S.C. 1395l(t)(6)) is amend-
ed— 
(A) in subparagraph (C)(i), in the matter 
preceding subclause (I), by striking ‘‘The pay-
ment’’ and inserting ‘‘Subject to subparagraph 
(G), the payment’’; 
(B) in subparagraph (D)(i), by inserting 
‘‘subject to subparagraph (H),’’ before ‘‘in the 
case’’; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(G) PASS-THROUGH EXTENSION FOR CER-
TAIN DRUGS AND BIOLOGICALS.—In the case of a 
drug or biological whose period of pass-through 
status under this paragraph ended on December 
31, 2017, and for which payment under this sub-
1950 
section was packaged into a payment for a cov-
ered OPD service (or group of services) furnished 
beginning January 1, 2018, such pass-through 
status shall be extended for a 2-year period be-
ginning on October 1, 2018. 
‘‘(H) TEMPORARY PAYMENT RULE FOR CER-
TAIN DRUGS AND BIOLOGICALS.—In the case of a 
drug or biological whose period of pass-through 
status under this paragraph ended on December 
31, 2017, and for which payment under this sub-
section was packaged into a payment for a cov-
ered OPD service (or group of services) furnished 
beginning January 1, 2018, the payment 
amount for such drug or biological under this 
subsection that is furnished during the period be-
ginning on October 1, 2018, and ending on 
March 31, 2019, shall be the greater of— 
‘‘(i) the payment amount that would 
otherwise apply under subparagraph (D)(i) 
for such drug or biological during such pe-
riod; or 
‘‘(ii) the payment amount that applied 
under such subparagraph (D)(i) for such 
drug or biological on December 31, 2017.
1951 
‘‘(I) SPECIAL PAYMENT ADJUSTMENT RULES 
FOR LAST QUARTER OF 2018.—In the case of a 
drug or biological whose period of pass-through 
status under this paragraph ended on December 
31, 2017, and for which payment under this sub-
section was packaged into a payment amount for 
a covered OPD service (or group of services) be-
ginning January 1, 2018, the following rules 
shall apply with respect to payment amounts 
under this subsection for covered a OPD service 
(or group of services) furnished during the period 
beginning on October 1, 2018, and ending on 
December 31, 2018: 
‘‘(i) The Secretary shall remove the 
packaged costs of such drug or biological (as 
determined by the Secretary) from the pay-
ment amount under this subsection for the 
covered OPD service (or group of services) 
with which it is packaged. 
‘‘(ii) The Secretary shall not make any 
adjustments to payment amounts under this 
subsection for a covered OPD service (or 
group of services) for which no costs were 
removed under clause (i).’’.
1952 
(2) NONAPPLICATION OF LIMIT ON AGGREGATE 
ANNUAL
ADJUSTMENT
FOR
2018.—Section 
1833(t)(6)(E)(i) of the Social Security Act (42 U.S.C. 
1395l(t)(6)(E)(i)) is amended by adding at the end 
the following new sentence: ‘‘This clause shall not 
apply for 2018.’’. 
(3) 
IMPLEMENTATION.—Notwithstanding 
any 
other provision of law, the Secretary of Health and 
Human Services may implement the amendments 
made by paragraphs (1) and (2) by program instruc-
tion or otherwise. 
(b) GAO STUDY AND REPORT.— 
(1) IN GENERAL.—The Comptroller General of 
the United States (in this subsection referred to as the 
‘‘Comptroller General’’) shall conduct a study on the 
policy for packaging high cost drugs and biologicals 
after their pass-through status under subsection (t)(6) 
of section 1833 of the Social Security Act (42 U.S.C. 
1395l) has expired under the payment systems for 
hospital outpatient department services under section 
subsection (t) of such section and for surgical services 
furnished in an ambulatory surgical center under 
subsection (i) of such section. Such study shall include 
an analysis of— 
(A) the impact of such policy on—
1953 
(i) the utilization of such drugs and 
biologicals; 
(ii) the availability of treatment op-
tions, including consultations with physi-
cians and hospitals; and 
(iii) to the extent practicable, the 
health outcomes of Medicare beneficiaries; 
and 
(B) the impact of the amendments made by 
subsection (a), including the impact on price 
competition and cost-sharing. 
(2) REPORT.—Not later than March 1, 2021, the 
Comptroller General shall submit to Congress a report 
containing the results of the study conducted under 
paragraph (1), together with recommendations for 
such legislation and administrative action as the 
Comptroller General determines appropriate. 
DIVISION T—REVENUE 
PROVISIONS 
SEC. 101. MODIFICATION OF DEDUCTION FOR QUALIFIED 
BUSINESS INCOME OF A COOPERATIVE AND 
ITS PATRONS. 
(a) DEDUCTION FOR QUALIFIED PRODUCTION ACTIVI-
TIES INCOME.—
1954 
(1) IN GENERAL.—Subsection (g) of section 199A 
of the Internal Revenue Code of 1986 is amended to 
read as follows: 
‘‘(g) DEDUCTION FOR INCOME ATTRIBUTABLE TO DO-
MESTIC PRODUCTION ACTIVITIES OF SPECIFIED AGRICUL-
TURAL OR HORTICULTURAL COOPERATIVES.— 
‘‘(1) ALLOWANCE OF DEDUCTION.— 
‘‘(A) IN GENERAL.—In the case of a tax-
payer which is a specified agricultural or horti-
cultural cooperative, there shall be allowed as a 
deduction an amount equal to 9 percent of the 
lesser of— 
‘‘(i) the qualified production activities 
income of the taxpayer for the taxable year, 
or 
‘‘(ii) the taxable income of the tax-
payer for the taxable year. 
‘‘(B) LIMITATION.— 
‘‘(i) IN GENERAL.—The deduction al-
lowable under subparagraph (A) for any 
taxable year shall not exceed 50 percent of 
the W-2 wages of the taxpayer for the tax-
able year. 
‘‘(ii) W-2
WAGES.—For purposes of 
this subparagraph, the W-2 wages of the
1955 
taxpayer shall be determined in the same 
manner as under subsection (b)(4) (without 
regard to subparagraph (B) thereof and 
after application of subsection (b)(5)), ex-
cept that such wages shall not include any 
amount which is not properly allocable to 
domestic production gross receipts for pur-
poses of paragraph (3)(A). 
‘‘(C) TAXABLE INCOME OF COOPERATIVES 
DETERMINED WITHOUT REGARD TO CERTAIN DE-
DUCTIONS.—For purposes of this subsection, the 
taxable income of a specified agricultural or hor-
ticultural cooperative shall be computed without 
regard to any deduction allowable under sub-
section (b) or (c) of section 1382 (relating to pa-
tronage dividends, per-unit retain allocations, 
and nonpatronage distributions). 
‘‘(2) DEDUCTION ALLOWED TO PATRONS.— 
‘‘(A) IN GENERAL.—In the case of any eligi-
ble taxpayer who receives a qualified payment 
from a specified agricultural or horticultural co-
operative, there shall be allowed as a deduction 
for the taxable year in which such payment is 
received an amount equal to the portion of the
1956 
deduction allowed under paragraph (1) to such 
cooperative which is— 
‘‘(i) allowed with respect to the portion 
of the qualified production activities income 
to which such payment is attributable, and 
‘‘(ii) identified by such cooperative in 
a written notice mailed to such taxpayer 
during the payment period described in sec-
tion 1382(d). 
‘‘(B) LIMITATION BASED ON TAXABLE IN-
COME.—The deduction allowed to any taxpayer 
under this paragraph shall not exceed the taxable 
income of the taxpayer determined without re-
gard to the deduction allowed under this para-
graph and after taking into account any deduc-
tion allowed to the taxpayer under subsection (a) 
for the taxable year. 
‘‘(C) COOPERATIVE DENIED DEDUCTION FOR 
PORTION OF QUALIFIED PAYMENTS.—The taxable 
income of a specified agricultural or horti-
cultural cooperative shall not be reduced under 
section 1382 by reason of that portion of any 
qualified payment as does not exceed the deduc-
tion allowable under subparagraph (A) with re-
spect to such payment.
1957 
‘‘(D) ELIGIBLE
TAXPAYER.—For purposes 
of this paragraph, the term ‘eligible taxpayer’ 
means— 
‘‘(i) a taxpayer other than a corpora-
tion, or 
‘‘(ii) a specified agricultural or horti-
cultural cooperative. 
‘‘(E) QUALIFIED PAYMENT.—For purposes 
of this section, the term ‘qualified payment’ 
means, with respect to any eligible taxpayer, any 
amount which— 
‘‘(i) is described in paragraph (1) or 
(3) of section 1385(a), 
‘‘(ii) is received by such taxpayer from 
a specified agricultural or horticultural co-
operative, and 
‘‘(iii) is attributable to qualified pro-
duction activities income with respect to 
which a deduction is allowed to such cooper-
ative under paragraph (1). 
‘‘(3) QUALIFIED
PRODUCTION
ACTIVITIES
IN-
COME.—For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
production activities income’ for any taxable
1958 
year means an amount equal to the excess (if 
any) of— 
‘‘(i) the taxpayer’s domestic production 
gross receipts for such taxable year, over 
‘‘(ii) the sum of— 
‘‘(I) the cost of goods sold that are 
allocable to such receipts, and 
‘‘(II) other expenses, losses, or de-
ductions (other than the deduction al-
lowed under this subsection), which are 
properly allocable to such receipts. 
‘‘(B) ALLOCATION METHOD.—The Secretary 
shall prescribe rules for the proper allocation of 
items described in subparagraph (A) for pur-
poses of determining qualified production activi-
ties income. Such rules shall provide for the 
proper allocation of items whether or not such 
items are directly allocable to domestic produc-
tion gross receipts. 
‘‘(C) SPECIAL
RULES
FOR
DETERMINING 
COSTS.— 
‘‘(i) IN GENERAL.—For purposes of de-
termining costs under subclause (I) of sub-
paragraph (A)(ii), any item or service 
brought into the United States shall be
1959 
treated as acquired by purchase, and its 
cost shall be treated as not less than its 
value immediately after it entered the 
United States. A similar rule shall apply in 
determining the adjusted basis of leased or 
rented property where the lease or rental 
gives rise to domestic production gross re-
ceipts. 
‘‘(ii) EXPORTS FOR FURTHER MANU-
FACTURE.—In the case of any property de-
scribed in clause (i) that had been exported 
by the taxpayer for further manufacture, the 
increase in cost or adjusted basis under 
clause (i) shall not exceed the difference be-
tween the value of the property when ex-
ported and the value of the property when 
brought back into the United States after 
the further manufacture. 
‘‘(D) DOMESTIC
PRODUCTION
GROSS
RE-
CEIPTS.— 
‘‘(i) IN GENERAL.—The term ‘domestic 
production gross receipts’ means the gross 
receipts of the taxpayer which are derived 
from any lease, rental, license, sale, ex-
change, or other disposition of any agricul-
1960 
tural or horticultural product which was 
manufactured, produced, grown, or ex-
tracted by the taxpayer (determined after 
the application of paragraph (4)(B)) in 
whole or significant part within the United 
States. Such term shall not include gross re-
ceipts of the taxpayer which are derived 
from the lease, rental, license, sale, ex-
change, or other disposition of land. 
‘‘(ii) RELATED PERSONS.— 
‘‘(I) IN GENERAL.—The term ‘do-
mestic production gross receipts’ shall 
not include any gross receipts of the 
taxpayer derived from property leased, 
licensed, or rented by the taxpayer for 
use by any related person. 
‘‘(II) 
RELATED
PERSON.—For 
purposes of subclause (I), a person 
shall be treated as related to another 
person if such persons are treated as a 
single employer under subsection (a) or 
(b) of section 52 or subsection (m) or 
(o) of section 414, except that deter-
minations under subsections (a) and
1961 
(b) of section 52 shall be made without 
regard to section 1563(b). 
‘‘(4) SPECIFIED
AGRICULTURAL
OR
HORTI-
CULTURAL COOPERATIVE.—For purposes of this sec-
tion— 
‘‘(A) IN GENERAL.—The term ‘specified ag-
ricultural or horticultural cooperative’ means an 
organization to which part I of subchapter T ap-
plies which is engaged— 
‘‘(i) in the manufacturing, production, 
growth, or extraction in whole or significant 
part of any agricultural or horticultural 
product, or 
‘‘(ii) in the marketing of agricultural 
or horticultural products. 
‘‘(B) APPLICATION
TO
MARKETING
CO-
OPERATIVES.—A specified agricultural or horti-
cultural cooperative described in subparagraph 
(A)(ii) shall be treated as having manufactured, 
produced, grown, or extracted in whole or sig-
nificant part any agricultural or horticultural 
product marketed by the specified agricultural or 
horticultural cooperative which its patrons have 
so manufactured, produced, grown, or extracted. 
‘‘(5) DEFINITIONS AND SPECIAL RULES.—
1962 
‘‘(A) 
SPECIAL
RULE
FOR
AFFILIATED 
GROUPS.— 
‘‘(i) IN GENERAL.—All members of an 
expanded affiliated group shall be treated as 
a single corporation for purposes of this 
subsection. 
‘‘(ii) PARTNERSHIPS
OWNED
BY
EX-
PANDED
AFFILIATED
GROUPS.—For pur-
poses of paragraph (3)(D), if all of the in-
terests in the capital and profits of a part-
nership are owned by members of a single 
expanded affiliated group at all times dur-
ing the taxable year of such partnership, the 
partnership and all members of such group 
shall be treated as a single taxpayer during 
such period. 
‘‘(iii) 
EXPANDED
AFFILIATED 
GROUP.—For purposes of this subsection, 
the term ‘expanded affiliated group’ means 
an affiliated group as defined in section 
1504(a), determined— 
‘‘(I) by substituting ‘more than 50 
percent’ for ‘at least 80 percent’ each 
place it appears, and
1963 
‘‘(II) without regard to para-
graphs (2) and (4) of section 1504(b). 
‘‘(iv) ALLOCATION
OF
DEDUCTION.— 
Except as provided in regulations, the de-
duction under paragraph (1) shall be allo-
cated among the members of the expanded 
affiliated group in proportion to each mem-
ber’s respective amount (if any) of qualified 
production activities income. 
‘‘(B) SPECIAL
RULE
FOR
COOPERATIVE 
PARTNERS.—In the case of a specified agricul-
tural or horticultural cooperative which is a 
partner in a partnership, rules similar to the 
rules of subsection (f)(1) shall apply for purposes 
of this subsection. 
‘‘(C) TRADE OR BUSINESS REQUIREMENT.— 
This subsection shall be applied by only taking 
into account items which are attributable to the 
actual conduct of a trade or business. 
‘‘(D) UNRELATED BUSINESS TAXABLE IN-
COME.—For purposes of determining the tax im-
posed by section 511, this section shall be applied 
by substituting ‘unrelated business taxable in-
come’ for ‘taxable income’ each place it appears 
in this section (other than this subparagraph).
1964 
‘‘(E) SPECIAL
RULE
FOR
COOPERATIVE 
WITH OIL RELATED QUALIFIED PRODUCTION AC-
TIVITIES INCOME.— 
‘‘(i) IN GENERAL.—If a specified agri-
cultural or horticultural cooperative has oil 
related qualified production activities in-
come for any taxable year, the amount oth-
erwise allowable as a deduction under para-
graph (1) shall be reduced by 3 percent of 
the least of— 
‘‘(I) the oil related qualified pro-
duction activities income of the cooper-
ative for the taxable year, 
‘‘(II) the qualified production ac-
tivities income of the cooperative for 
the taxable year, or 
‘‘(III) taxable income. 
‘‘(ii) OIL
RELATED
QUALIFIED
PRO-
DUCTION
ACTIVITIES
INCOME.—For pur-
poses of this subparagraph, the term ‘oil re-
lated qualified production activities income’ 
means for any taxable year the qualified 
production activities income which is at-
tributable to the production, refining, proc-
essing, transportation, or distribution of oil,
1965 
gas, or any primary product thereof (within 
the meaning of section 927(a)(2)(C), as in 
effect before its repeal) during such taxable 
year. 
‘‘(6) REGULATIONS.—The Secretary shall pre-
scribe such regulations as are necessary to carry out 
the purposes of this subsection, including regulations 
which prevent more than 1 taxpayer from being al-
lowed a deduction under this subsection with respect 
to any activity described in paragraph (3)(D)(i). 
Such regulations shall be based on the regulations ap-
plicable to cooperatives and their patrons under sec-
tion 199 (as in effect before its repeal).’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Sections 63(b)(3), 63(d)(3), 199A(e)(1), 
and 6662(d)(1)(C) of such Code are each amend-
ed by striking ‘‘the deduction’’ and inserting 
‘‘any deduction’’. 
(B) The last sentence of section 62(a) of 
such Code and section 172(d)(8) of such Code are 
each amended by striking ‘‘The deduction’’ and 
inserting ‘‘Any deduction’’. 
(C) Section 199A(e)(1) of such Code is 
amended by striking ‘‘Taxable income’’ and in-
1966 
serting ‘‘Except as otherwise provided in sub-
section (g)(2)(B), taxable income’’. 
(D) Section 613(a) of such Code is amended 
by striking ‘‘the deduction under section 199A’’ 
and inserting ‘‘any deduction under section 
199A’’. 
(b) MODIFICATIONS RELATED TO PAYMENTS FROM 
COOPERATIVES.— 
(1) REPEAL OF SPECIAL DEDUCTION FOR QUALI-
FIED
COOPERATIVE
DIVIDENDS.—Subsection (a) of 
section 199A of such Code is amended to read as fol-
lows: 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of a 
taxpayer other than a corporation, there shall be allowed 
as a deduction for any taxable year an amount equal to 
the lesser of— 
‘‘(1) the combined qualified business income 
amount of the taxpayer, or 
‘‘(2) an amount equal to 20 percent of the excess 
(if any) of— 
‘‘(A) the taxable income of the taxpayer for 
the taxable year, over 
‘‘(B) the net capital gain (as defined in sec-
tion 1(h)) of the taxpayer for such taxable 
year.’’.
1967 
(2) REPEAL OF RULE EXCLUDING QUALIFIED CO-
OPERATIVE
DIVIDENDS
FROM
QUALIFIED
BUSINESS 
INCOME.— 
(A) IN
GENERAL.—Section 199A(c)(1) of 
such Code is amended by striking ‘‘, qualified co-
operative dividends,’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 199A(c)(3)(B) of such Code 
is amended— 
(I) by striking ‘‘investment’’ in 
the matter preceding clause (i), and 
(II) by adding at the end of clause 
(ii) the following: ‘‘Any amount de-
scribed in section 1385(a)(1) shall not 
be treated as described in this clause.’’. 
(ii) Section 199A(e) of such Code is 
amended by striking paragraph (4) and by 
redesignating paragraph (5) as paragraph 
(4). 
(3) REDUCTION OF QUALIFIED BUSINESS INCOME 
WITH RESPECT TO INCOME RECEIVED FROM COOPERA-
TIVES.—Section 199A(b) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(7) SPECIAL RULE WITH RESPECT TO INCOME 
RECEIVED FROM COOPERATIVES.—In the case of any
1968 
qualified trade or business of a patron of a specified 
agricultural or horticultural cooperative, the amount 
determined under paragraph (2) with respect to such 
trade or business shall be reduced by the lesser of— 
‘‘(A) 9 percent of so much of the qualified 
business income with respect to such trade or 
business as is properly allocable to qualified pay-
ments received from such cooperative, or 
‘‘(B) 50 percent of so much of the W-2 
wages with respect to such trade or business as 
are so allocable.’’. 
(c) APPLICATION OF SECTION 199 TO CERTAIN QUALI-
FIED PAYMENTS PAID AFTER 2017.—Subsection (c) of sec-
tion 13305 of Public Law 115–97 is amended to read as 
follows: 
‘‘(c) EFFECTIVE DATES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to taxable years beginning after December 31, 
2017. 
‘‘(2) TRANSITION
RULE
FOR
QUALIFIED
PAY-
MENTS OF PATRONS OF COOPERATIVES.— 
‘‘(A) IN GENERAL.—The amendments made 
by this section shall not apply to a qualified 
payment received by a taxpayer from a specified
1969 
agricultural or horticultural cooperative in a 
taxable year of the taxpayer beginning after De-
cember 31, 2017, which is attributable to quali-
fied production activities income with respect to 
which a deduction is allowable to the cooperative 
under section 199 of the Internal Revenue Code 
of 1986 (as in effect before the amendments made 
by this section) for a taxable year of the coopera-
tive beginning before January 1, 2018. Any term 
used in this subparagraph which is also used in 
section 199 of such Code (as so in effect) shall 
have the same meaning as when used in such 
section. 
‘‘(B) COORDINATION WITH SECTION 199A.— 
No deduction shall be allowed under section 
199A of such Code for any qualified payment to 
which subparagraph (A) applies.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amendments made by this sec-
tion shall take effect as if included in section 11011 
of Public Law 115–97. 
(2) APPLICATION OF SECTION 199 TO CERTAIN 
QUALIFIED PAYMENTS PAID AFTER 2017.—The amend-
1970 
ment made by subsection (c) shall take effect as if in-
cluded in section 13305 of Public Law 115–97. 
SEC. 102. INCREASE IN STATE HOUSING CREDIT CEILING 
FOR , 2019, 2020, 2021. 
(a) IN GENERAL.—Section 42(h)(3)(I) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(I) INCREASE IN STATE HOUSING CREDIT 
CEILING FOR 2018, 2019, 2020, AND 2021.—In 
the case of calendar years 2018, 2019, 2020, and 
2021, each of the dollar amounts in effect under 
clauses (I) and (II) of subparagraph (C)(ii) for 
any calendar year (after any increase under sub-
paragraph (H)) shall be increased by multi-
plying such dollar amount by 1.125.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to calendar years beginning after De-
cember 31, 2017. 
SEC. 103. AVERAGE INCOME TEST FOR LOW-INCOME HOUS-
ING CREDIT. 
(a) IN GENERAL.—Paragraph (1) of section 42(g) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘subparagraph (A) or (B)’’ and 
inserting ‘‘subparagraph (A), (B), or (C)’’, and 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph:
1971 
‘‘(C) AVERAGE INCOME TEST.— 
‘‘(i) IN GENERAL.—The project meets 
the minimum requirements of this subpara-
graph if 40 percent or more (25 percent or 
more in the case of a project described in 
section 142(d)(6)) of the residential units in 
such project are both rent-restricted and oc-
cupied by individuals whose income does 
not exceed the imputed income limitation 
designated by the taxpayer with respect to 
the respective unit. 
‘‘(ii) SPECIAL RULES RELATING TO IN-
COME LIMITATION.—For purposes of clause 
(i)— 
‘‘(I) DESIGNATION.—The taxpayer 
shall designate the imputed income 
limitation of each unit taken into ac-
count under such clause. 
‘‘(II) AVERAGE TEST.—The aver-
age of the imputed income limitations 
designated under subclause (I) shall 
not exceed 60 percent of area median 
gross income. 
‘‘(III) 
10-PERCENT
INCRE-
MENTS.—The designated imputed in-
1972 
come limitation of any unit under sub-
clause (I) shall be 20 percent, 30 per-
cent, 40 percent, 50 percent, 60 per-
cent, 70 percent, or 80 percent of area 
median gross income.’’. 
(b) RULES RELATING TO NEXT AVAILABLE UNIT.— 
Subparagraph (D) of section 42(g)(2) of the Internal Rev-
enue Code of 1986 is amended— 
(1) in clause (i), by striking ‘‘clause (ii)’’ and 
inserting ‘‘clauses (ii), (iii), and (iv)’’, 
(2) in clause (ii)— 
(A) by striking ‘‘If’’ and inserting ‘‘In the 
case of a project with respect to which the tax-
payer elects the requirements of subparagraph 
(A) or (B) of paragraph (1), if’’, 
(B) by striking the second sentence, and 
(C) by striking ‘‘NEXT
AVAILABLE
UNIT 
MUST BE RENTED TO LOW-INCOME TENANT IF IN-
COME
RISES
ABOVE
140
PERCENT
OF
INCOME 
LIMIT’’ in the heading and inserting ‘‘RENTAL 
OF NEXT AVAILABLE UNIT IN CASE OF 20–50 OR 
40–60 TEST’’, and 
(3) by adding at the end the following new 
clauses:
1973 
‘‘(iii) RENTAL
OF
NEXT
AVAILABLE 
UNIT IN CASE OF AVERAGE INCOME TEST.— 
In the case of a project with respect to 
which the taxpayer elects the requirements 
of subparagraph (C) of paragraph (1), if 
the income of the occupants of the unit in-
creases above 140 percent of the greater of— 
‘‘(I) 60 percent of area median 
gross income, or 
‘‘(II) the imputed income limita-
tion designated with respect to the unit 
under paragraph (1)(C)(ii)(I), 
clause (i) shall cease to apply to any such 
unit if any residential rental unit in the 
building (of a size comparable to, or smaller 
than, such unit) is occupied by a new resi-
dent whose income exceeds the limitation 
described in clause (v). 
‘‘(iv) 
DEEP
RENT
SKEWED 
PROJECTS.—In the case of a project de-
scribed in section 142(d)(4)(B), clause (ii) 
or (iii), whichever is applicable, shall be ap-
plied by substituting ‘170 percent’ for ‘140 
percent’, and—
1974 
‘‘(I) in the case of clause (ii), by 
substituting ‘any low-income unit in 
the building is occupied by a new resi-
dent whose income exceeds 40 percent 
of area median gross income’ for ‘any 
residential rental unit’ and all that 
follows in such clause, and 
‘‘(II) in the case of clause (iii), by 
substituting ‘any low-income unit in 
the building is occupied by a new resi-
dent whose income exceeds the lesser of 
40 percent of area median gross in-
come or the imputed income limitation 
designated with respect to such unit 
under paragraph (1)(C)(ii)(I)’ for ‘any 
residential rental unit’ and all that 
follows in such clause. 
‘‘(v) 
LIMITATION
DESCRIBED.—For 
purposes of clause (iii), the limitation de-
scribed in this clause with respect to any 
unit is— 
‘‘(I) the imputed income limita-
tion designated with respect to such 
unit under paragraph (1)(C)(ii)(I), in 
the case of a unit which was taken into
1975 
account as a low-income unit prior to 
becoming vacant, and 
‘‘(II) the imputed income limita-
tion which would have to be designated 
with respect to such unit under such 
paragraph in order for the project to 
continue to meet the requirements of 
paragraph (1)(C)(ii)(II), in the case of 
any other unit.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to elections made under section 42(g)(1) 
of the Internal Revenue Code of 1986 after the date of the 
enactment of this Act. 
DIVISION U—TAX TECHNICAL 
CORRECTIONS 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; ETC. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Tax Technical Corrections Act of 2018’’. 
(b) AMENDMENT OF INTERNAL REVENUE CODE OF 
1986.—Except as otherwise expressly provided, whenever in 
this division an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a section 
or other provision of the Internal Revenue Code of 1986.
1976 
(c) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 1. Short title; table of contents; etc. 
TITLE I—TAX TECHNICAL CORRECTIONS 
Sec. 101. Amendments relating to Protecting Americans from Tax Hikes Act of 
2015. 
Sec. 102. Amendment relating to Consolidated Appropriations Act, 2016. 
Sec. 103. Amendments relating to Fixing America’s Surface Transportation Act. 
Sec. 104. Amendments relating to Surface Transportation and Veterans Health 
Care Choice Improvement Act of 2015. 
Sec. 105. Amendments relating to Stephen Beck, Jr., ABLE Act of 2014. 
Sec. 106. Amendment relating to American Taxpayer Relief Act of 2012. 
Sec. 107. Amendment relating to United States-Korea Free Trade Agreement Im-
plementation Act. 
Sec. 108. Amendment relating to SAFETEA–LU. 
Sec. 109. Amendments relating to the American Jobs Creation Act of 2004. 
TITLE II—TECHNICAL CORRECTIONS RELATED TO PARTNERSHIP 
AUDIT RULES 
Sec. 201. Scope of adjustments subject to partnership audit rules. 
Sec. 202. Determination of imputed underpayments. 
Sec. 203. Alternative procedure to filing amended returns for purposes of modi-
fying imputed underpayment. 
Sec. 204. Treatment of passthrough partners in tiered structures. 
Sec. 205. Treatment of failure of partnership to pay imputed underpayment. 
Sec. 206. Other technical corrections related to partnership audit rules. 
Sec. 207. Effective date. 
TITLE III—OTHER CORRECTIONS 
Sec. 301. Amendments relating to the Bipartisan Budget Act of 2015. 
Sec. 302. Amendments relating to the Energy Policy Act of 2005. 
TITLE IV—CLERICAL CORRECTIONS AND DEADWOOD 
Sec. 401. Clerical corrections and deadwood-related provisions. 
TITLE I—TAX TECHNICAL 
CORRECTIONS 
SEC. 101. AMENDMENTS RELATING TO PROTECTING AMERI-
CANS FROM TAX HIKES ACT OF 2015. 
(a) AMENDMENT RELATING TO SECTION 103.— 
(1) Section 32(b)(2) is amended—
1977 
(A) by striking clauses (ii) and (iii) of sub-
paragraph (B), and 
(B) by striking so much of subparagraph 
(B) as precedes ‘‘In the case of a joint return’’ 
and inserting the following: 
‘‘(B) JOINT RETURNS.—’’. 
(2) Section 32(j)(1) is amended— 
(A) in the matter preceding subparagraph 
(A) by striking ‘‘after 1996’’ and inserting ‘‘after 
2015’’, 
(B) in subparagraph (B) by inserting ‘‘by 
substituting in subparagraph (A)(ii) thereof’’ 
after ‘‘, determined’’ , 
(C) in subparagraph (B)(i) by striking ‘‘by 
substituting’’ and ‘‘in subparagraph (A)(ii) 
thereof’’, 
(D) in subparagraph (B)(ii)— 
(i) by striking ‘‘by substituting’’ and 
‘‘in subparagraph (A)(ii) of such section 1’’, 
(ii) by striking ‘‘$3,000’’ and inserting 
‘‘$5,000’’, 
(iii) by striking ‘‘(b)(2)(B)(iii)’’ and 
inserting ‘‘(b)(2)(B)’’, and 
(iv) by striking ‘‘2007’’ and inserting 
‘‘2008’’.
1978 
(b) AMENDMENT RELATING TO SECTION 105.—Section 
132(f)(6)(A) is amended by striking the second sentence. 
(c) AMENDMENTS RELATING TO SECTION 121.—Sec-
tion 41(c) is amended— 
(1) by striking paragraph (4), 
(2) by redesignating paragraphs (5), (6), and (7) 
as paragraphs (4), (5), and (6), respectively, and 
(3) by striking the last sentence of paragraph 
(4)(C) (as so redesignated). 
(d) AMENDMENTS RELATING TO SECTION 143.— 
(1) Section 168(k)(2)(B)(i)(III) is amended by 
inserting ‘‘binding’’ before ‘‘contract’’. 
(2) Section 168(k)(5)(B)(ii) is amended— 
(A) by inserting ‘‘crop or’’ after ‘‘more than 
one’’, and 
(B) by inserting ‘‘a marketable crop or 
yield of’’ after ‘‘begins bearing’’. 
(3) For purposes of applying section 168(k) of 
the Internal Revenue Code of 1986, as in effect on the 
day before the date of the enactment of Public Law 
115-97, with respect to property acquired before Sep-
tember 28, 2017, paragraph (6) thereof shall be treat-
ed as reading as follows (and as having been included 
in section 143 of the Protecting Americans from Tax 
Hikes Act of 2015):
1979 
‘‘(6) PHASE-DOWN.—In the case of qualified 
property placed in service by the taxpayer after De-
cember 31, 2017 (December 31, 2018, in the case of 
property described in subparagraph (B) or (C) of 
paragraph (2)), paragraph (1)(A) shall be applied by 
substituting for ‘50 percent’— 
‘‘(A) ‘40 percent’ in the case of— 
‘‘(i) property placed in service in 2018 
(other than property described in subpara-
graph (B) or (C) of paragraph (2)), and 
‘‘(ii) property described in subpara-
graph (B) or (C) of paragraph (2) which is 
placed in service in 2019, and 
‘‘(B) ‘30 percent’ in the case of— 
‘‘(i) property placed in service in 2019 
(other than property described in subpara-
graph (B) or (C) of paragraph (2)), and 
‘‘(ii) property described in subpara-
graph (B) or (C) of paragraph (2) which is 
placed in service in 2020.’’. 
(4) Section 168(k)(7) of the Internal Revenue 
Code of 1986, as in effect on the day before the date 
of the enactment of Public Law 115-97, shall be ap-
plied—
1980 
(A) by substituting ‘‘paragraphs (1), (2)(F), 
and (4)’’ for ‘‘paragraphs (1) and (2)(F)’’, and 
(B) as if the application of such substi-
tution had been included in section 143 of the 
Protecting Americans from Tax Hikes Act of 
2015. 
(e) AMENDMENTS RELATING TO SECTION 167.— 
(1) Section 168(j)(3) is amended by striking 
‘‘property to which paragraph (1) applies’’ and in-
serting ‘‘qualified Indian reservation property’’. 
(2) Section 168(j)(8) is amended by striking 
‘‘this subsection’’ and inserting ‘‘paragraph (1)’’. 
(f) AMENDMENTS RELATING TO SECTION 202.— 
(1) Section 6722(c)(3)(A) is amended— 
(A) by striking ‘‘any information return’’ 
in clause (iii) and inserting ‘‘the payee state-
ment’’, and 
(B) by striking ‘‘filed’’ in the flush matter 
at the end and inserting ‘‘furnished’’. 
(2) Section 6721(c)(3)(A) is amended by striking 
‘‘any information return’’ and inserting ‘‘the infor-
mation return’’. 
(3) Section 202(e) of the Protecting Americans 
from Tax Hikes Act of 2015 is amended by striking 
‘‘provided’’ and inserting ‘‘furnished’’.
1981 
(g) AMENDMENTS RELATING TO SECTION 203.— 
(1) Section 6109(i)(1)(A)(i) is amended by strik-
ing ‘‘community-based certified acceptance agent’’ 
and inserting ‘‘community-based certifying accept-
ance agent’’. 
(2) Section 6109(i)(1)(B) is amended by striking 
‘‘Internal Revenue Service’’ and inserting ‘‘Internal 
Revenue Service, a community-based certifying ac-
ceptance agent approved by the Secretary,’’. 
(3) Section 6109(i)(3) is amended— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘ending after the 
issuance of such number’’ before the period 
at the end of the first sentence, and 
(ii) by striking ‘‘on the last day of 
such third consecutive taxable year’’ and in-
serting ‘‘on the day after the due date for 
the return of tax for such third consecutive 
taxable year’’, and 
(B) by striking subparagraph (B)(ii) and 
inserting the following: 
‘‘(ii) if the individual does not file a 
return of tax (or is not included as a de-
pendent on the return of tax of another tax-
payer) for 3 consecutive taxable years at
1982 
least one of which ends after December 18, 
2015, the due date for the return of tax for 
such third consecutive taxable year.’’. 
(4) Section 203(c) of the Protecting Americans 
from Tax Hikes Act of 2015 is amended— 
(A) by striking ‘‘section 6109(i)(1)(A)(i)’’ 
and inserting ‘‘section 6109(i)(1)’’, 
(B) by striking ‘‘community-based certified 
acceptance agents’’ and inserting ‘‘community- 
based certifying acceptance agents’’, and 
(C) by striking ‘‘CERTIFIED’’ in the heading 
thereof and inserting ‘‘CERTIFYING’’. 
(5) Section 203(f) of the Protecting Americans 
from Tax Hikes Act of 2015 is amended by striking 
‘‘The amendments’’ and inserting ‘‘Except to the ex-
tent provided in section 6109(i)(3) of the Internal 
Revenue Code of 1986, the amendments’’. 
(h) AMENDMENTS RELATING TO SECTION 204.—Sec-
tion 204(b) of the Protecting Americans from Tax Hikes 
Act of 2015 is amended— 
(1) by striking paragraph (2), and 
(2) by striking so much as precedes ‘‘amendment 
made by this section’’ and inserting the following: 
‘‘(b) EFFECTIVE DATE.—The’’. 
(i) AMENDMENTS RELATING TO SECTION 205.—
1983 
(1) Section 24(e)(2) is amended by striking 
‘‘identifying number’’ and inserting ‘‘taxpayer identi-
fication number’’. 
(2) Section 205(c) of the Protecting Americans 
from Tax Hikes Act of 2015 is amended— 
(A) by striking paragraph (2), and 
(B) by striking so much as precedes ‘‘shall 
apply to any return of tax’’ and inserting the 
following: ‘‘(c) EFFECTIVE DATE.—The amend-
ments made by this section’’. 
(j) AMENDMENTS RELATING TO SECTION 206.—Sec-
tion 206(b) of the Protecting Americans from Tax Hikes 
Act of 2015 is amended— 
(1) by striking ‘‘Except as provided in para-
graph (2), the amendment’’ in paragraph (1) and in-
serting ‘‘The amendment’’, and 
(2) by striking paragraph (2) and redesignating 
paragraph (3) as paragraph (2). 
(k) AMENDMENT RELATING TO SECTION 209.—Section 
209(d)(2) of the Protecting Americans from Tax Hikes Act 
of 2015 is amended by striking ‘‘amendment made by sub-
section (b)’’ and inserting ‘‘amendments made by sub-
sections (b) and (c)’’. 
(l) AMENDMENTS RELATED TO SECTIONS 102, 206, 
207, 208, AND 211.—
1984 
(1) Section 25A(b)(1) is amended— 
(A) in subparagraph (A) by striking 
‘‘$1,000’’ and inserting ‘‘$2,000’’, and 
(B) in subparagraph (B)— 
(i) by striking ‘‘50 percent’’ and in-
serting ‘‘25 percent’’, 
(ii) by striking ‘‘$1,000’’ and inserting 
‘‘$2,000’’, and 
(iii) by striking ‘‘the applicable limit’’ 
and inserting ‘‘$4,000’’. 
(2) Subparagraphs (A) and (C) of section 
25A(b)(2) are amended by striking ‘‘2’’ in the head-
ing and text of each subparagraph and inserting ‘‘4’’. 
(3) Section 25A(b)(4) is amended to read as fol-
lows: 
‘‘(4) RESTRICTIONS ON TAXPAYERS WHO IMPROP-
ERLY CLAIMED AMERICAN OPPORTUNITY TAX CREDIT 
IN PRIOR YEARS.— 
‘‘(A) TAXPAYERS MAKING PRIOR FRAUDU-
LENT OR RECKLESS CLAIMS.— 
‘‘(i) IN GENERAL.—No American Op-
portunity Tax Credit shall be allowed under 
this section for any taxable year in the dis-
allowance period.
1985 
‘‘(ii) 
DISALLOWANCE
PERIOD.—For 
purposes of subparagraph (A), the disallow-
ance period is— 
‘‘(I) the period of 10 taxable years 
after the most recent taxable year for 
which there was a final determination 
that the taxpayer’s claim of the Amer-
ican Opportunity Tax Credit under 
this section was due to fraud, and 
‘‘(II) the period of 2 taxable years 
after the most recent taxable year for 
which there was a final determination 
that the taxpayer’s claim of the Amer-
ican Opportunity Tax Credit under 
this section was due to reckless or in-
tentional disregard of rules and regula-
tions (but not due to fraud). 
‘‘(B) TAXPAYERS MAKING IMPROPER PRIOR 
CLAIMS.—In the case of a taxpayer who is de-
nied the American Opportunity Tax Credit 
under this section for any taxable year as a re-
sult of the deficiency procedures under sub-
chapter B of chapter 63, no American Oppor-
tunity Tax Credit shall be allowed under this 
section for any subsequent taxable year unless
1986 
the taxpayer provides such information as the 
Secretary may require to demonstrate eligibility 
for such credit.’’. 
(4) Section 25A(d) is amended to read as follows: 
‘‘(d) LIMITATIONS BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) AMERICAN OPPORTUNITY TAX CREDIT.—The 
American Opportunity Tax Credit (determined with-
out regard to this paragraph) shall be reduced (but 
not below zero) by the amount which bears the same 
ratio to such credit (as so determined) as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) $80,000 ($160,000 in the case of 
a joint return), bears to 
‘‘(B) $10,000 ($20,000 in the case of a joint 
return). 
‘‘(2) LIFETIME LEARNING CREDIT.—The Lifetime 
Learning Credit (determined without regard to this 
paragraph) shall be reduced (but not below zero) by 
the amount which bears the same ratio to such credit 
(as so determined) as— 
‘‘(A) the excess of—
1987 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) $40,000 ($80,000 in the case of a 
joint return), bears to 
‘‘(B) $10,000 ($20,000 in the case of a joint 
return). 
‘‘(3) MODIFIED ADJUSTED GROSS INCOME.—For 
purposes of this subsection, the term ‘modified ad-
justed gross income’ means the adjusted gross income 
of the taxpayer for the taxable year increased by any 
amount excluded from gross income under section 
911, 931, or 933.’’. 
(5) Section 25A(f)(1) is amended by adding at 
the end the following new subparagraph: 
‘‘(D) REQUIRED COURSE MATERIALS TAKEN 
INTO ACCOUNT FOR AMERICAN OPPORTUNITY TAX 
CREDIT.—For purposes of determining the Amer-
ican Opportunity Tax Credit, subparagraph (A) 
shall be applied by substituting ‘tuition, fees, 
and course materials’ for ‘tuition and fees’.’’. 
(6) Section 25A(g)(1) is amended— 
(A) by striking ‘‘No credit’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—No credit’’, and
1988 
(B) by adding at the end the following new 
subparagraph: 
‘‘(B) 
ADDITIONAL
IDENTIFICATION
RE-
QUIREMENTS WITH RESPECT TO AMERICAN OP-
PORTUNITY TAX CREDIT.— 
‘‘(i) STUDENT.—The requirements of 
subparagraph (A) shall not be treated as 
met with respect to the American Oppor-
tunity Tax Credit unless the individual’s 
taxpayer identification number was issued 
on or before the due date for filing the re-
turn of tax for the taxable year. 
‘‘(ii) TAXPAYER.—No American Op-
portunity Tax Credit shall be allowed under 
this section if the taxpayer identification 
number of the taxpayer was issued after the 
due date for filing the return for the taxable 
year. 
‘‘(iii) 
INSTITUTION.—No 
American 
Opportunity Tax Credit shall be allowed 
under this section unless the taxpayer in-
cludes the employer identification number 
of any institution to which qualified tuition 
and related expenses were paid with respect 
to the individual.’’.
1989 
(7) Section 25A(h) is amended to read as follows: 
‘‘(h) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a taxable year 
beginning after 2001, the $40,000 and $80,000 
amounts in subsection (d)(2) shall each be increased 
by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar year 
in which the taxable year begins, determined by 
substituting ‘calendar year 2000’ for ‘calendar 
year 2016’ in subparagraph (A)(ii) thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under paragraph (1) is not a multiple of $1,000, such 
amount shall be rounded to the next lowest multiple 
of $1,000.’’. 
(8) Section 25A(i) is amended to read as follows: 
‘‘(i) PORTION OF AMERICAN OPPORTUNITY TAX CRED-
IT MADE REFUNDABLE.—Forty percent of so much of the 
credit allowed under subsection (a) as is attributable to the 
American Opportunity Tax Credit (determined after appli-
cation of subsection (d) and without regard to this para-
graph and section 26(a)) shall be treated as a credit allow-
able under subpart C (and not allowed under subsection 
(a)). The preceding sentence shall not apply to any tax-
1990 
payer for any taxable year if such taxpayer is a child to 
whom subsection (g) of section 1 applies for such taxable 
year.’’. 
(9) The heading of section 25A is amended by 
striking ‘‘HOPE’’ and inserting ‘‘AMERICAN
OP-
PORTUNITY’’. 
(10) The item relating to section 25A in the table 
of contents for subpart A of part IV of subchapter A 
of chapter 1 is amended to read as follows: 
‘‘Sec. 25A. American Opportunity and Lifetime Learning credits.’’. 
(11) The heading of section 25A(b) is amended 
by striking ‘‘HOPE SCHOLARSHIP CREDIT’’ and in-
serting ‘‘AMERICAN OPPORTUNITY TAX CREDIT’’. 
(12) The heading of section 25A(b)(2) is amend-
ed by striking ‘‘HOPE SCHOLARSHIP CREDIT’’ and in-
serting ‘‘AMERICAN OPPORTUNITY TAX CREDIT’’. 
(13) The heading of section 25A(c)(2)(A) is 
amended by striking ‘‘HOPE SCHOLARSHIP’’ and in-
serting ‘‘AMERICAN OPPORTUNITY TAX CREDIT’’. 
(14) Section 25A, as amended by the preceding 
provisions of this Act, is amended by striking ‘‘Hope 
Scholarship Credit’’ each place it appears in the text 
and inserting ‘‘American Opportunity Tax Credit’’. 
(15) The heading of section 529(c)(3)(B)(v) is 
amended by striking ‘‘HOPE’’ and inserting ‘‘AMER-
ICAN OPPORTUNITY’’.
1991 
(16) The heading of section 530(d)(2)(C) is 
amended by striking ‘‘HOPE’’ and inserting ‘‘AMER-
ICAN OPPORTUNITY’’. 
(17) Section 6211(b)(4)(A), as amended by this 
Act, is amended by striking ‘‘subsection (i)(5)’’ and 
inserting ‘‘subsection (i)’’. 
(18) Section 6213(g)(2)(Q) is amended to read 
as follows: 
‘‘(Q) an omission of information required 
by section 25A(b)(4)(B) or an entry on the re-
turn claiming the American Opportunity Tax 
Credit for a taxable year for which such credit 
is disallowed under section 25A(b)(4)(A).’’. 
(19) Section 207(b)(1) of the Protecting Ameri-
cans from Tax Hikes Act of 2015 is amended by 
striking ‘‘the American opportunity tax credit under 
section 25A(i) of such Code’’ and inserting ‘‘the 
American Opportunity Tax Credit under section 25A 
of such Code’’. 
(m) AMENDMENT RELATING TO SECTION 311.— 
(1) The last sentence of section 355(h)(2)(B) is 
amended by striking ‘‘80 percent’’ both places it ap-
pears and inserting ‘‘at least 80 percent’’. 
(2) Section 355(h)(2) is amended—
1992 
(A) by striking ‘‘SPINOFFS’’ in the heading 
of such paragraph and inserting ‘‘DISTRIBU-
TIONS’’, and 
(B) by striking ‘‘SPINOFFS’’ in the headings 
of subparagraphs (A) and (B) and inserting 
‘‘DISTRIBUTIONS’’. 
(n) AMENDMENT RELATING TO SECTION 318.— 
(1) Section 856(c)(9)(A) is amended— 
(A) by striking ‘‘Personal property’’ and in-
serting the following: 
‘‘(i) IN
GENERAL.—Personal prop-
erty’’, and 
(B) by adding at the end the following new 
clause: 
‘‘(ii) TREATMENT OF GAIN ON DISPOSI-
TION.—If— 
‘‘(I) personal property is leased 
under, or in connection with, a lease of 
real property, for a period of not less 
than 1 year, and rents attributable to 
such personal property are treated as 
rents from real property under sub-
section (d)(1)(C), 
‘‘(II) any portion of such personal 
property and any portion of such real
1993 
property are sold, or otherwise disposed 
of, in a single disposition (or contem-
poraneously in separate dispositions), 
and 
‘‘(III) the fair market value of the 
personal property so sold or contem-
poraneously disposed of (determined at 
the time of disposition) does not exceed 
15 percent of the total fair market 
value of all of the personal and real 
property so sold or contemporaneously 
disposed of (determined at the time of 
disposition), 
any gain from such dispositions shall be 
treated for purposes of paragraphs (2)(H) 
and (3)(H) as gain from the disposition of 
a real estate asset.’’. 
(2) Section 856(c)(9)(B) is amended to read as 
follows: 
‘‘(B) CERTAIN PERSONAL PROPERTY MORT-
GAGED IN CONNECTION WITH REAL PROPERTY.— 
‘‘(i) IN GENERAL.—In the case of an 
obligation secured by a mortgage on both 
real property and personal property, if the 
fair market value of such personal property
1994 
does not exceed 15 percent of the total fair 
market value of all such property, such obli-
gation shall be treated— 
‘‘(I) for purposes of paragraph 
(3)(B), as an obligation described 
therein, 
‘‘(II) for purposes of paragraph 
(4)(A), as a real estate asset, and 
‘‘(III) for purposes of paragraphs 
(2)(D) and (3)(C), as a mortgage on 
real property. 
‘‘(ii) DETERMINATION
OF
FAIR
MAR-
KET VALUE.— 
‘‘(I) IN GENERAL.—Except as pro-
vided in subclause (II), the fair market 
value of all such property shall be de-
termined for purposes of clause (i) in 
the same manner as the fair market 
value of real property is determined for 
purposes of apportioning interest in-
come between real property and per-
sonal 
property 
under 
paragraph 
(3)(B). 
‘‘(II) GAIN ON DISPOSITION.—For 
purposes of applying clause (i)(III),
1995 
fair market value shall be determined 
at the time of sale or other disposi-
tion.’’. 
(o) AMENDMENT RELATED TO SECTION 302(b).—Sec-
tion 529A(c)(1) is amended by striking subparagraph (D). 
(p) AMENDMENTS RELATING TO SECTION 322.— 
(1) Section 897(k)(2) is amended— 
(A) by striking so much of subparagraph 
(B) as precedes ‘‘amounts realized by the quali-
fied shareholder’’ and inserting the following: 
‘‘(B) EXCEPTION.—In the case of a quali-
fied shareholder with one or more applicable in-
vestors— 
‘‘(i) subparagraph (A)(i) shall not 
apply to the applicable percentage of the 
stock of the real estate investment trust held 
by the qualified shareholder, and 
‘‘(ii) the applicable percentage of the’’, 
and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(F) APPLICABLE PERCENTAGE.—For pur-
poses of subparagraph (B), the term ‘applicable 
percentage’ means the percentage of the value of 
the interests (other than interests held solely as
1996 
a creditor) in the qualified shareholder held by 
applicable investors.’’. 
(2) Section 897(k)(2)(D) is amended by striking 
‘‘paragraph’’ and inserting ‘‘subsection’’. 
(3) Section 897(k)(2)(E) is amended by striking 
‘‘and (C) and paragraph (4)’’ and inserting ‘‘and 
(D)’’. 
(4) Section 897(k)(3)(B)(i) is amended by strik-
ing so much as precedes ‘‘for a reduced rate of with-
holding’’ and inserting the following: 
‘‘(i) which— 
‘‘(I) is eligible for benefits under 
the comprehensive income tax treaty 
described in subparagraph (A)(i)(I), 
but only if the dividends article of such 
treaty imposes conditions on the bene-
fits allowable in the case of dividends 
paid by a real estate investment trust, 
and 
‘‘(II) is eligible under such trea-
ty’’. 
(5) Section 897(k)(3)(B)(ii) is amended— 
(A) by adding ‘‘and’’ at the end of subclause 
(II), and
1997 
(B) by striking ‘‘United States corporation’’ 
in subclause (III) and inserting ‘‘domestic cor-
poration’’. 
(6) Section 322 of the Protecting Americans from 
Tax Hikes Act of 2015 is amended by striking sub-
sections (b)(2) and (c)(3), and the Internal Revenue 
Code of 1986 shall be applied as if such subsections, 
and amendments made thereby, had never been en-
acted. 
(7) Section 322(c)(2) of such Act is amended by 
striking ‘‘take effect on’’ and inserting the following: 
‘‘apply with respect to testing periods (as defined in 
section 897(h)(4)(D) of the Internal Revenue Code of 
1986) ending on or after’’. 
(q) AMENDMENTS RELATED TO SECTION 323.— 
(1) So much of subsection (l) of section 897 as 
precedes paragraph (2) thereof is amended to read as 
follows: 
‘‘(l) EXCEPTION FOR QUALIFIED FOREIGN PENSION 
FUNDS.— 
‘‘(1) IN GENERAL.—For purposes of this section, 
a qualified foreign pension fund shall not be treated 
as a nonresident alien individual or a foreign cor-
poration. For purposes of the preceding sentence, an 
entity all the interests of which are held by a quali-
1998 
fied foreign pension fund shall be treated as such a 
fund.’’. 
(2) Subparagraph (B) of section 897(l)(2) is 
amended to read as follows: 
‘‘(B) which is established— 
‘‘(i) by such country (or one or more 
political subdivisions thereof) to provide re-
tirement or pension benefits to participants 
or beneficiaries that are current or former 
employees (including self-employed individ-
uals) or persons designated by such employ-
ees, as a result of services rendered by such 
employees to their employers, or 
‘‘(ii) by one or more employers to pro-
vide retirement or pension benefits to par-
ticipants or beneficiaries that are current or 
former employees (including self-employed 
individuals) or persons designated by such 
employees in consideration for services ren-
dered by such employees to such employ-
ers,’’. 
(3) Section 897(l)(2)(D) is amended by striking 
‘‘provides annual information reporting about its 
beneficiaries to the relevant tax authorities’’ and in-
serting ‘‘with respect to which annual information
1999 
about its beneficiaries is provided, or is otherwise 
available, to the relevant tax authorities’’. 
(4) Section 897(l)(2)(E) is amended— 
(A) by striking ‘‘such entity’’ in clause (i) 
and inserting ‘‘such entity or arrangement’’, and 
(B) by striking ‘‘or such income is taxed at 
a reduced rate’’ in clause (ii) and inserting ‘‘, or 
such income is excluded from the gross income of 
such entity or arrangement or is taxed at a re-
duced rate’’. 
(r) AMENDMENTS RELATING TO SECTION 333.— 
(1) Section 831(b)(2)(B)(i)(II) is amended by 
striking ‘‘specified assets’’ and inserting ‘‘relevant 
specified assets’’ 
(2) Section 831(b)(2)(B) is amended by redesig-
nating clause (ii) as clause (iv) and by inserting after 
clause (i) the following new clauses: 
‘‘(ii) 
AGGREGATION
OF
CERTAIN 
SPOUSAL
INTERESTS.—For 
purposes 
of 
clause (i)(II), any interest in the insurance 
company referred to in such clause which is 
held (directly or indirectly) by an indi-
vidual who is a spouse of the specified hold-
er, and who is a citizen of the United
2000 
States, shall be treated as held by the speci-
fied holder. 
‘‘(iii) SPECIFIED HOLDER.—For pur-
poses of this subparagraph, the term ‘speci-
fied holder’ means, with respect to any in-
surance company, any individual who holds 
(directly or indirectly) an interest in such 
insurance company and who— 
‘‘(I) is a lineal descendent (in-
cluding by adoption) of an individual 
who holds an interest (directly or indi-
rectly) in the specified assets with re-
spect to such insurance company or of 
such individual’s spouse, 
‘‘(II) is a spouse of any lineal de-
scendent described in subclause (I), or 
‘‘(III) is not a citizen of the 
United States and is a spouse of an in-
dividual who holds an interest (di-
rectly or indirectly) in the specified as-
sets with respect to such insurance 
company.’’. 
(3) Section 831(b)(2)(B)(iv), as redesignated by 
paragraph (2), is amended—
2001 
(A) by striking ‘‘clause (i)(II)’’ in the mat-
ter preceding subclause (I) and inserting ‘‘this 
subparagraph’’, and 
(B) by amending subclause (I) to read as 
follows: 
‘‘(I) RELEVANT
SPECIFIED
AS-
SETS.—The term ‘relevant specified as-
sets’ means, with respect to any speci-
fied holder with respect to any insur-
ance company, the aggregate amount of 
the specified assets, with respect to 
such insurance company, any interest 
in which is held (directly or indirectly) 
by any spouse or specified relation of 
such specified holder. Such term shall 
not include any specified asset solely 
by reason of an interest in such asset 
which was acquired by such spouse or 
specified relation by bequest, devise, or 
inheritance from a decedent during the 
taxable year of the insurance company 
or the preceding taxable year. For pur-
poses of this subclause, the term ‘speci-
fied relation’ means any individual 
with respect to whom the specified
2002 
holder bears a relationship described in 
subclause (I) or (II) of clause (iii).’’. 
(4) Section 831(b)(2) is amended by redesig-
nating subparagraph (D) as subparagraph (E) and 
by inserting after subparagraph (C) the following new 
subparagraph: 
‘‘(D) LOOK-THROUGH OF REINSURANCE AND 
FRONTING ARRANGEMENTS.—In the case of rein-
surance or any fronting, intermediary, or simi-
lar arrangement, the term ‘policyholder’ means 
each policyholder of the underlying direct writ-
ten insurance with respect to such reinsurance or 
arrangement.’’. 
(s) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the provision of 
the Protecting Americans from Tax Hikes Act of 2015 to 
which they relate. 
SEC. 102. AMENDMENT RELATING TO CONSOLIDATED AP-
PROPRIATIONS ACT, 2016. 
(a) AMENDMENT RELATING TO SECTION 305 OF DIVI-
SION P.—For purposes of applying section 199(c)(3)(C)(i) 
of the Internal Revenue Code of 1986 (as in effect before 
its repeal by Public Law 115-97) to taxable years beginning 
after December 31, 2015, and before January 1, 2018, such 
section shall be applied—
2003 
(1) by inserting ‘‘who elects the application of 
this clause for any taxable year,’’ after ‘‘In the case 
of any taxpayer’’, 
(2) by substituting ‘‘, and who’’ for ‘‘and who’’, 
(3) by substituting ‘‘such taxable year’’ for ‘‘the 
taxable year’’, and 
(4) by substituting ‘‘(as defined in subsection 
(d)(9)(B))’’ for ‘‘under subsection (d)(9)(B)’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in section 305 of divi-
sion P of the Consolidated Appropriations Act, 2016. 
SEC. 103. AMENDMENTS RELATING TO FIXING AMERICA’S 
SURFACE TRANSPORTATION ACT. 
(a) AMENDMENTS RELATING TO SECTION 32101.— 
(1) Section 7345(e)(1) is amended— 
(A) by striking ‘‘or the Tax Court’’ and in-
serting ‘‘, or against the Commissioner in the 
Tax Court,’’, and 
(B) by adding at the end the following: 
‘‘For purposes of the preceding sentence, the 
court first acquiring jurisdiction over such an 
action shall have sole jurisdiction.’’. 
(2) Section 7345(f) is amended by striking ‘‘sub-
section (a)’’ and inserting ‘‘subsection (b)(1)(B)’’.
2004 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in section 32101 of 
the Fixing America’s Surface Transportation Act. 
SEC. 104. AMENDMENTS RELATING TO SURFACE TRANS-
PORTATION AND VETERANS HEALTH CARE 
CHOICE IMPROVEMENT ACT OF 2015. 
(a) AMENDMENT RELATING TO SECTION 2004.—Sec-
tion 6662(k) is amended to read as follows: 
‘‘(k) INCONSISTENT ESTATE BASIS REPORTING.—For 
purposes of this section, the term ‘inconsistent estate basis’ 
means any portion of an underpayment attributable to the 
failure to comply with section 1014(f).’’. 
(b) AMENDMENTS RELATING TO SECTION 2008.—Sec-
tion 9503(e)(2) is amended— 
(1) by striking ‘‘per gallon’’ in subparagraph (C) 
and inserting ‘‘per energy equivalent of a gallon of 
diesel (as defined in section 4041(a)(2)(D))’’, and 
(2) by striking ‘‘per gallon’’ in subparagraph 
(D) and inserting ‘‘per energy equivalent of a gallon 
of gasoline (as defined in section 4041(a)(2)(C))’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in the provision of 
the Surface Transportation and Veterans Health Care 
Choice Improvement Act of 2015 to which they relate.
2005 
SEC. 105. AMENDMENTS RELATING TO STEPHEN BECK, JR., 
ABLE ACT OF 2014. 
(a) AMENDMENTS RELATING TO SECTION 208.—Sec-
tion 208(h) of the Stephen Beck, Jr., ABLE Act of 2014 
is amended— 
(1) by striking so much as precedes ‘‘made by 
this section’’ and inserting the following: 
‘‘(h) EFFECTIVE DATE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments’’, 
(2) by inserting ‘‘, and statements required to be 
furnished,’’ after ‘‘returns required to be filed’’, and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) SUBSECTION (c).—The amendment made by 
subsection (c) shall apply to returns or claims for re-
fund filed after December 31, 2014.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in section 208 of the 
Stephen Beck, Jr., ABLE Act of 2014. 
SEC. 106. AMENDMENT RELATING TO AMERICAN TAXPAYER 
RELIEF ACT OF 2012. 
(a) AMENDMENT RELATING TO SECTION 104.—Section 
6211(b)(4)(A) is amended by striking ‘‘subsection (i)(6)’’ 
and inserting ‘‘subsection (i)(5)’’.
2006 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in section 104 of the 
American Taxpayer Relief Act of 2012. 
SEC. 107. AMENDMENT RELATING TO UNITED STATES- 
KOREA FREE TRADE AGREEMENT IMPLEMEN-
TATION ACT. 
(a) AMENDMENT RELATING TO SECTION 501.—Section 
501(b) of the United States-Korea Free Trade Agreement 
Implementation Act is amended by striking ‘‘returns re-
quired to be filed’’ and inserting ‘‘documents prepared’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in section 501 of the 
United States-Korea Free Trade Agreement Implementa-
tion Act. 
SEC. 108. AMENDMENT RELATING TO SAFETEA–LU. 
(a) AMENDMENT RELATING TO SECTION 11125.—Sec-
tion 5681(b) is amended by striking ‘‘who has paid the spe-
cial tax (or who is exempt from payment of such special 
tax by reason of the provisions of section 5113(a))’’ and 
inserting ‘‘who meets the requirements of section 5121(a) 
and section 5124 (or who is exempt from such requirements 
by reason of section 5121(b))’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall take effect as if included in section 11125 of
2007 
the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users. 
SEC. 109. AMENDMENTS RELATING TO THE AMERICAN JOBS 
CREATION ACT OF 2004. 
(a) AMENDMENT RELATING TO SECTION 233.—Section 
1361(c)(2)(B)(vi) is amended by striking ‘‘a shareholder’’ 
and inserting ‘‘the shareholder’’. 
(b) AMENDMENT RELATING TO SECTION 319.—Section 
501(c)(12)(E) is amended by striking ‘‘means the Federal 
Energy Regulatory Commission’’ and all that follows and 
inserting: ‘‘means— 
‘‘(i) the Federal Energy Regulatory 
Commission, or 
‘‘(ii) in the case of any utility with re-
spect to which all of the electricity gen-
erated, transmitted, or distributed by such 
utility is generated, transmitted, distrib-
uted, and consumed in the same State, the 
State agency of such State with the author-
ity to regulate electric utilities.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in section 319 of the 
American Jobs Creation Act of 2004.
2008 
TITLE II—TECHNICAL CORREC-
TIONS RELATED TO PARTNER-
SHIP AUDIT RULES 
SEC. 201. SCOPE OF ADJUSTMENTS SUBJECT TO PARTNER-
SHIP AUDIT RULES. 
(a) IN GENERAL.—Section 6241(2) is amended to read 
as follows: 
‘‘(2) PARTNERSHIP ADJUSTMENT.— 
‘‘(A) IN GENERAL.—The term ‘partnership 
adjustment’ means any adjustment to a partner-
ship-related item. 
‘‘(B) PARTNERSHIP-RELATED
ITEM.—The 
term ‘partnership-related item’ means— 
‘‘(i) any item or amount with respect 
to the partnership (without regard to wheth-
er or not such item or amount appears on 
the partnership’s return and including an 
imputed underpayment and any item or 
amount relating to any transaction with, 
basis in, or liability of, the partnership) 
which is relevant (determined without re-
gard to this subchapter) in determining the 
tax liability of any person under chapter 1, 
and
2009 
‘‘(ii) any partner’s distributive share 
of any item or amount described in clause 
(i).’’. 
(b) COORDINATION WITH OTHER CHAPTERS.— 
(1) IN GENERAL.—Section 6241 is amended by 
adding at the end the following new paragraph: 
‘‘(9) COORDINATION WITH OTHER CHAPTERS.— 
‘‘(A) IN GENERAL.—This subchapter shall 
not apply with respect to any tax imposed (in-
cluding any amount required to be deducted or 
withheld) under chapter 2, 2A, 3, or 4, except 
that any partnership adjustment determined 
under this subchapter for purposes of chapter 1 
shall be taken into account for purposes of deter-
mining any such tax to the extent that such ad-
justment is relevant to such determination. 
‘‘(B) TIMING
OF
WITHHOLDING.—In the 
case of any tax imposed (including any amount 
required to be deducted or withheld) under chap-
ter 3 or 4, which is determined with respect to 
an adjustment described in subparagraph (A), 
such tax— 
‘‘(i) shall be so determined with respect 
to the reviewed year, and
2010 
‘‘(ii) shall be so imposed (or so re-
quired to be deducted or withheld) with re-
spect to the adjustment year. 
‘‘(C) STATUTE OF LIMITATION ON ASSESS-
MENT.—For special rule with respect to limita-
tion on assessment of taxes under chapter 2 or 
2A which are attributable to any partnership 
adjustment, see section 6501(c)(12).’’. 
(2) SPECIAL RULE.—Section 6501(c) is amended 
by adding at the end the following new paragraph: 
‘‘(12) CERTAIN TAXES ATTRIBUTABLE TO PART-
NERSHIP ADJUSTMENTS.—In the case of any partner-
ship adjustment determined under subchapter C of 
chapter 63, the period for assessment of any tax im-
posed under chapter 2 or 2A which is attributable to 
such adjustment shall not expire before the date that 
is 1 year after— 
‘‘(A) in the case of an adjustment pursuant 
to the decision of a court in a proceeding brought 
under section 6234, such decision becomes final, 
or 
‘‘(B) in any other case, 90 days after the 
date on which the notice of the final partnership 
adjustment is mailed under section 6231.’’. 
(c) CONFORMING AMENDMENTS.—
2011 
(1) Section 6211(c) is amended to read as fol-
lows: 
‘‘(c) COORDINATION WITH SUBCHAPTER C.—In deter-
mining the amount of any deficiency for purposes of this 
subchapter, adjustments to partnership-related items shall 
be made only as provided in subchapter C.’’. 
(2) Section 6221(a) is amended to read as fol-
lows: 
‘‘(a) IN GENERAL.—Any adjustment to a partnership- 
related item shall be determined, and any tax attributable 
thereto shall be assessed and collected, and the applicability 
of any penalty, addition to tax, or additional amount 
which relates to an adjustment to any such item shall be 
determined, at the partnership level, except to the extent 
otherwise provided in this subchapter.’’. 
(3) Section 6222(a) is amended to read as fol-
lows: 
‘‘(a) IN GENERAL.—A partner shall, on the partner’s 
return, treat any partnership-related item in a manner 
which is consistent with the treatment of such item on the 
partnership return.’’. 
(4) Section 6226(a)(2) is amended by striking 
‘‘any adjustment to income, gain, loss, deduction, or 
credit’’ and inserting ‘‘any adjustment to a partner-
ship-related item’’.
2012 
(5) Section 6227(a) is amended by striking 
‘‘items of income, gain, loss, deduction, or credit of 
the partnership’’ and inserting ‘‘partnership-related 
items’’. 
(6) Section 6231(a)(1) is amended by striking 
‘‘any item of income, gain, loss, deduction, or credit 
of a partnership for a partnership taxable year’’ and 
inserting ‘‘any partnership-related item for any part-
nership taxable year’’. 
(7) Section 6234(c) is amended by striking ‘‘all 
items of income, gain, loss, deduction, or credit of the 
partnership’’ and inserting ‘‘all partnership-related 
items’’. 
(8) Section 7485(b) is amended by striking 
‘‘partnership items’’ and inserting ‘‘partnership-re-
lated items (as defined in section 6241)’’. 
SEC. 202. DETERMINATION OF IMPUTED UNDERPAYMENTS. 
(a) IN GENERAL.—Section 6225(b) is amended to read 
as follows: 
‘‘(b) 
DETERMINATION
OF
IMPUTED
UNDERPAY-
MENTS.—For purposes of this subchapter— 
‘‘(1) IN GENERAL.—Except as otherwise provided 
in this section, any imputed underpayment with re-
spect to any reviewed year shall be determined by the 
Secretary by—
2013 
‘‘(A) appropriately netting all partnership 
adjustments with respect to such reviewed year, 
and 
‘‘(B) applying the highest rate of tax in ef-
fect for the reviewed year under section 1 or 11. 
‘‘(2) ADJUSTMENTS
TO
DISTRIBUTIVE
SHARES 
OF PARTNERS NOT NETTED.—In the case of any ad-
justment which reallocates the distributive share of 
any item from one partner to another, such adjust-
ment shall be taken into account by disregarding so 
much of such adjustment as results in a decrease in 
the amount of the imputed underpayment. 
‘‘(3) ADJUSTMENTS
SEPARATELY
NETTED
BY 
CATEGORY.—For purposes of paragraph (1)(A), part-
nership adjustments for any reviewed year shall first 
be separately determined (and netted as appropriate) 
within each category of items that are required to be 
taken into account separately under section 702(a) or 
other provision of this title. 
‘‘(4) LIMITATION ON ADJUSTMENTS THAT MAY BE 
TAKEN
INTO
ACCOUNT.—If any adjustment would 
(but for this paragraph)— 
‘‘(A) result in a decrease in the amount of 
the imputed underpayment, and
2014 
‘‘(B) could be subject to any additional lim-
itation under the provisions of this title (or not 
allowed, in whole or in part, against ordinary 
income) if such adjustment were taken into ac-
count by any person, 
such adjustment shall not be taken into account under 
paragraph (1)(A) except to the extent otherwise pro-
vided by the Secretary.’’. 
(b) MODIFICATIONS OF IMPUTED UNDERPAYMENTS.— 
(1) Section 6225(c)(3) is amended by striking 
‘‘without regard to the portion thereof’’ and inserting 
‘‘without regard to the portion of the adjustment’’. 
(2) Section 6225(c)(4)(A) is amended by striking 
‘‘with respect to any portion of the imputed under-
payment’’ and inserting ‘‘with respect to any portion 
of the adjustment’’. 
(3) Section 6225(c)(5)(A)(i) is amended by strik-
ing ‘‘without regard to the portion thereof’’ and in-
serting ‘‘without regard to the portion of the adjust-
ment’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6225(a) is amended to read as fol-
lows:
2015 
‘‘(a) IN GENERAL.—In the case of any adjustments by 
the Secretary to any partnership-related items with respect 
to any reviewed year of a partnership— 
‘‘(1) if such adjustments result in an imputed 
underpayment, the partnership shall pay an amount 
equal to such imputed underpayment in the adjust-
ment year as provided in section 6232, and 
‘‘(2) if such adjustments do not result in an im-
puted underpayment, such adjustments shall be taken 
into account by the partnership in the adjustment 
year.’’. 
(2) Section 6225(c) is amended by adding at the 
end the following new paragraph: 
‘‘(9) MODIFICATION OF ADJUSTMENTS NOT RE-
SULTING IN AN IMPUTED UNDERPAYMENT.—The Sec-
retary shall establish procedures under which the ad-
justments described in subsection (a)(2) may be modi-
fied in such manner as the Secretary determines ap-
propriate.’’. 
SEC. 203. ALTERNATIVE PROCEDURE TO FILING AMENDED 
RETURNS FOR PURPOSES OF MODIFYING IM-
PUTED UNDERPAYMENT. 
(a) IN GENERAL.—Section 6225(c)(2) is amended to 
read as follows:
2016 
‘‘(2) PROCEDURES FOR PARTNERS TO TAKE AD-
JUSTMENTS INTO ACCOUNT.— 
‘‘(A) AMENDED RETURNS OF PARTNERS.— 
Such procedures shall provide that if— 
‘‘(i) one or more partners file returns 
for the taxable year of the partners which 
includes the end of the reviewed year of the 
partnership (and for any taxable year with 
respect to which any tax attribute is af-
fected by reason of any adjustment referred 
to in clause (ii)), 
‘‘(ii) such returns take into account all 
adjustments under subsection (a) properly 
allocable to such partners (and the effect of 
such adjustments on any tax attributes), 
and 
‘‘(iii) payment of any tax due is in-
cluded with such returns, 
then the imputed underpayment amount shall be 
determined without regard to the portion of the 
adjustments so taken into account. 
‘‘(B) ALTERNATIVE PROCEDURE TO FILING 
AMENDED RETURNS.—Such procedures shall pro-
vide that, with respect to any partner referred to 
in subparagraph (A), the requirements of sub-
2017 
paragraph (A) shall be treated as satisfied with 
respect to adjustments properly allocable to such 
partner if, in lieu of filing the returns described 
in such subparagraph— 
‘‘(i) the amounts described in subpara-
graph (A)(iii) are paid by the partner, 
‘‘(ii) the partner agrees to take into ac-
count, in the form and manner prescribed 
by the Secretary, the adjustments to the tax 
attributes of such partner referred to in sub-
paragraph (A)(ii), and 
‘‘(iii) such partner provides, in the 
form and manner specified by the Secretary 
(including, if the Secretary so specifies, in 
the same form as on an amended return), 
such information as the Secretary may re-
quire to carry out this subparagraph. 
‘‘(C) 
REALLOCATION
OF
DISTRIBUTIVE 
SHARE.—In the case of any adjustment which 
reallocates the distributive share of any item 
from one partner to another, this paragraph 
shall apply with respect to any such partner 
only if the requirements of subparagraph (A) or 
(B) are satisfied with respect to all partners af-
fected by such adjustment.
2018 
‘‘(D) APPLICATION OF STATUTE OF LIMITA-
TIONS.—In the case of adjustments referred to in 
subparagraph (A)(ii), sections 6501 and 6511 
shall not apply with respect to any return filed 
for purposes of subparagraph (A)(i) or any 
amount paid under subparagraph (A)(iii) or 
(B)(i). 
‘‘(E) ADJUSTMENTS
TO
TAX
ATTRIBUTES 
BINDING
FOR
AFFECTED
TAXABLE
YEARS
OF 
PARTNER.—The adjustments to the tax attributes 
of any partner provided for in subparagraph 
(A)(ii) or (B)(ii) shall be binding with respect to 
the taxable year of the partner which includes 
the end of the reviewed year of the partnership 
and any taxable years for which any tax at-
tribute is affected by such adjustment. Any fail-
ure to so treat any such tax attribute shall be 
treated for purposes of this title in the same 
manner as a failure to treat a partnership-re-
lated item in a manner which is consistent with 
the treatment of such item on the partnership re-
turn within the meaning of section 6222. 
‘‘(F) APPLICATION TO PARTNERSHIPS AND S 
CORPORATIONS IN TIERED STRUCTURES.—
2019 
‘‘(i) IN GENERAL.—In the case of any 
partnership any partner of which is a part-
nership, subparagraph (A) or (B) may 
apply with respect to any partner (hereafter 
in this subparagraph referred to as the ‘rel-
evant partner’) in the chain of ownership of 
such partnerships if— 
‘‘(I) such information as the Sec-
retary may require is furnished to the 
Secretary for purposes of carrying out 
this paragraph with respect to such 
partnerships (including any informa-
tion the Secretary may require with 
respect to any chain of ownership of 
the relevant partner), and 
‘‘(II) to such extent as the Sec-
retary may require, each partnership 
in the chain of ownership between the 
relevant partner and the audited part-
nership satisfies the requirements of 
subparagraph (A) or (B). 
‘‘(ii) TREATMENT
OF
S
CORPORA-
TIONS.—For purposes of clause (i), an S 
corporation and its shareholders shall be
2020 
treated in the same manner as a partner-
ship and its partners.’’. 
(b) CONFORMING AMENDMENT.—Section 6201(a)(1) is 
amended by inserting ‘‘(or payments under section 
6225(c)(2)(B)(i))’’ after ‘‘returns or lists’’. 
SEC. 204. TREATMENT OF PASSTHROUGH PARTNERS IN 
TIERED STRUCTURES. 
(a) IN GENERAL.—Section 6226(b) is amended by 
adding at the end the following new paragraph: 
‘‘(4) TREATMENT OF PARTNERSHIPS AND S COR-
PORATIONS IN TIERED STRUCTURES.— 
‘‘(A) IN GENERAL.—If a partner which re-
ceives a statement under subsection (a)(2) is a 
partnership or an S corporation, such partner 
shall, with respect to the partner’s share of the 
adjustment— 
‘‘(i) file with the Secretary a partner-
ship adjustment tracking report which in-
cludes such information as the Secretary 
may require, and 
‘‘(ii)(I) furnish statements under rules 
similar to the rules of subsection (a)(2), or 
‘‘(II) if no such statements are fur-
nished, compute and pay an imputed un-
derpayment under rules similar to the rules
2021 
of section 6225 (other than paragraphs (2), 
(7), and (9) of subsection (c) thereof). 
‘‘(B) DUE DATE.—For purposes of subpara-
graph (A), with respect to a partner’s share of 
the adjustment, the partnership adjustment 
tracking report shall be filed, and the imputed 
underpayment shall be paid or statements shall 
be furnished, not later than the due date for the 
return for the adjustment year of the audited 
partnership. 
‘‘(C) PARTNERSHIP
PAYMENT
OF
TAX
IF 
ELECTED OUT OF SUBCHAPTER.—In the case of 
a partnership which has elected the application 
of section 6221(b) with respect to the taxable 
year of the partnership which includes the end of 
the reviewed year of the audited partnership, this 
paragraph shall apply notwithstanding such 
election. 
‘‘(D) AUDITED
PARTNERSHIP.—For pur-
poses of this paragraph, the term ‘audited part-
nership’ means, with respect to any partner de-
scribed in subparagraph (A), the partnership in 
the chain of ownership originally electing the ap-
plication of this section.
2022 
‘‘(E) TREATMENT
OF
TRUSTS.—The Sec-
retary shall prescribe such rules as may be nec-
essary with respect to trusts which receive a 
statement under subsection (a)(2).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6226(b)(1) is amended by striking 
‘‘Each partner’s’’ and inserting ‘‘Except as provided 
in paragraph (4), each partner’s’’. 
(2) Section 6226(c)(2) is amended by inserting 
‘‘or which is described in subsection (b)(4)(A)(ii)(I),’’ 
after ‘‘is elected,’’. 
SEC. 205. TREATMENT OF FAILURE OF PARTNERSHIP TO 
PAY IMPUTED UNDERPAYMENT. 
(a) IN GENERAL.—Section 6232 is amended by adding 
at the end the following new subsection: 
‘‘(f) FAILURE TO PAY IMPUTED UNDERPAYMENT.— 
‘‘(1) IN GENERAL.—If any amount of any im-
puted underpayment to which section 6225 applies or 
any specified similar amount (or any interest or pen-
alties with respect to any such amount) has not been 
paid by the date which is 10 days after the date on 
which the Secretary provides notice and demand for 
such payment—
2023 
‘‘(A) section 6621(a)(2)(B) shall be applied 
by substituting ‘5 percentage points’ for ‘3 per-
centage points’ with respect to such amount, and 
‘‘(B) the Secretary may assess upon each 
partner of the partnership (determined as of the 
close of the adjustment year or, if the partner-
ship has ceased to exist as of such time, the 
former partners of the partnership as determined 
for purposes of section 6241(7)) a tax equal to 
such partner’s proportionate share of such 
amount (including any such interest or pen-
alties, determined after application of subpara-
graph (A)). 
‘‘(2) SPECIFIED
SIMILAR
AMOUNT.—For pur-
poses of this subsection, the term ‘specified similar 
amount’ means— 
‘‘(A) the amount described in subclause (II) 
of section 6226(b)(4)(A)(ii) (including any fail-
ure to satisfy the requirement of subclause (I) of 
such section which is treated as a failure to pay 
such amount under section 6651(i)), and 
‘‘(B) any amount assessed under paragraph 
(1)(B) upon a partner which is a partnership. 
‘‘(3) PROPORTIONATE SHARE.—For purposes of 
paragraph (1), a partner’s proportionate share is
2024 
such percentage as the Secretary may determine on 
the basis of such partner’s distributive share. The Sec-
retary shall make determinations under the preceding 
sentence such that the aggregate proportionate shares 
so determined total 100 percent. 
‘‘(4) COORDINATION WITH PARTNERSHIP LIABIL-
ITY.—The liability of the partnership for any amount 
with respect to which a partner is made liable under 
paragraph (1) shall be reduced upon payment by the 
partner of such amount. Paragraph (1)(B) shall not 
apply with respect to any amount after the date on 
which such amount is paid by the partnership. 
‘‘(5) S CORPORATIONS.—For purposes of this 
subsection, an S corporation and its shareholders 
shall be treated in the same manner as a partnership 
and its partners. 
‘‘(6) RULES RELATED TO ASSESSMENT AND COL-
LECTION.— 
‘‘(A) DEFICIENCY PROCEDURES NOT APPLI-
CABLE.—Subchapter B shall not apply to any 
assessment or collection under this paragraph. 
‘‘(B) LIMITATION ON ASSESSMENT.—Except 
as otherwise provided in this subtitle, no assess-
ment may be made (or proceeding in court begun 
without assessment) with respect to any partner
2025 
with respect to an amount under paragraph (1) 
after the date which is 2 years after the date on 
which the Secretary provides the notice and de-
mand referred to in paragraph (1) with respect 
to such amount.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
6501(c)(4)(A) is amended by striking ‘‘in this section’’. 
SEC. 206. OTHER TECHNICAL CORRECTIONS RELATED TO 
PARTNERSHIP AUDIT RULES. 
(a) LIMITATION
ON AMENDMENT
OF STATEMENTS 
FURNISHED TO PARTNERS NOT APPLICABLE TO PARTNER-
SHIPS ELECTING OUT OF PARTNERSHIP AUDIT RULES.— 
Section 6031(b) is amended by striking the last sentence 
and inserting the following: ‘‘Information required to be 
furnished by the partnership under this subsection may not 
be amended after the due date of the return under subsection 
(a) to which such information relates, except— 
‘‘(1) in the case of a partnership which has elect-
ed the application of section 6221(b) for the taxable 
year, 
‘‘(2) as provided in the procedures under section 
6225(c), 
‘‘(3) with respect to statements under section 
6226, or 
‘‘(4) as otherwise provided by the Secretary.’’.
2026 
(b) ADMINISTRATIVE
ADJUSTMENT
REQUEST
AND 
PARTNERSHIP
ADJUSTMENT
TRACKING
REPORT
NOT 
TREATED AS AMENDED RETURN FOR PURPOSES OF MODI-
FICATION
OF
IMPUTED
UNDERPAYMENTS.—Section 
6225(c)(2), as amended by the preceding provisions of this 
Act, is amended by adding at the end the following new 
subparagraph: 
‘‘(F) ADJUSTMENTS
NOT
TREATED
AS 
AMENDED RETURN.—An administrative adjust-
ment request under section 6227 and a partner-
ship adjustment tracking report under section 
6226(b)(4)(A) shall not be treated as a return for 
purposes of this paragraph.’’. 
(c) AUTHORITY TO REQUIRE E-FILING OF MATERIALS 
IN CONNECTION WITH MODIFICATION OF IMPUTED UNDER-
PAYMENTS, ETC.—Section 6241, as amended by the pre-
ceding provisions of this Act, is amended by adding at the 
end the following new paragraph: 
‘‘(10) AUTHORITY TO REQUIRE ELECTRONIC FIL-
ING.—Notwithstanding section 6011(e), the Secretary 
may require that anything required to be filed or sub-
mitted under section 6225(c), or to be furnished to or 
filed with the Secretary under section 6226, be so 
filed, submitted, or furnished by magnetic media or 
in other machine-readable form.’’.
2027 
(d) CLARIFICATION OF ASSESSMENT AUTHORITY.— 
Section 6226(a) is amended by inserting ‘‘(and no assess-
ment of tax, levy, or proceeding in any court for the collec-
tion of such underpayment shall be made against such part-
nership)’’ after ‘‘section 6225 shall not apply with respect 
to such underpayment’’. 
(e) TREATMENT
OF
PARTNERSHIP
ADJUSTMENTS 
THAT RESULT IN DECREASE IN TAX IN CASE OF ELECTION 
TO PUSH OUT ADJUSTMENTS.—Section 6226(b) is amend-
ed— 
(1) by striking ‘‘increased’’ in paragraph (1) 
and inserting ‘‘adjusted’’, 
(2) by striking ‘‘adjustment amounts’’ each place 
it appears in paragraphs (1) and (2) and inserting 
‘‘correction amounts’’, 
(3) by striking ‘‘increase’’ each place it appears 
in subparagraphs (A) and (B) of paragraph (2) and 
inserting ‘‘increase or decrease’’, 
(4) by striking ‘‘plus’’ at the end of paragraph 
(2)(A) and inserting ‘‘and’’, and 
(5) by striking ‘‘ADJUSTMENT AMOUNTS’’ in the 
heading of paragraph (2) and inserting ‘‘CORRECTION 
AMOUNTS’’. 
(f) COORDINATION OF STATUTE OF LIMITATION ON 
FILING ADMINISTRATION ADJUSTMENT REQUEST WITH
2028 
ADJUSTMENTS RELATED TO FOREIGN TAX CREDITS.—Sec-
tion 6227 is amended by adding at the end the following 
new subsection: 
‘‘(d) COORDINATION WITH ADJUSTMENTS RELATED 
TO FOREIGN TAX CREDITS.—The Secretary shall issue reg-
ulations or other guidance which provide for the proper co-
ordination of this section and section 905(c).’’. 
(g) CLARIFICATION OF ASSESSMENT OF IMPUTED UN-
DERPAYMENTS.— 
(1) IN GENERAL.—Section 6232(a) is amended 
by striking ‘‘except that in the case of’’ and all that 
follows and inserting the following: ‘‘except that— 
‘‘(1) subchapter B of chapter 63 shall not apply, 
and 
‘‘(2) in the case of an administrative adjustment 
request to which section 6227(b)(1) applies, the under-
payment shall be paid and may be assessed when the 
request is filed.’’. 
(2) CONFORMING AMENDMENT.—Section 6232(b) 
is amended— 
(A) by striking ‘‘assessment of a deficiency’’ 
and inserting ‘‘assessment of an imputed under-
payment’’, and 
(B) by adding at the end the following new 
flush matter:
2030 
‘‘(B) STATUTE OF LIMITATIONS ON ADJUST-
MENT.—For the period of limitations on making 
adjustments, see section 6235.’’. 
(2) CONFORMING AMENDMENT.—Section 6231(a) 
is amended by striking ‘‘Any notice of a final part-
nership adjustment’’ and all that follows through 
‘‘Such notices’’ and inserting ‘‘Any notice of a final 
partnership adjustment’’. 
(i) DEPOSIT TO SUSPEND INTEREST ON IMPUTED UN-
DERPAYMENT.—Section 6233 is amended by adding at the 
end the following new subsection: 
‘‘(c) DEPOSIT TO SUSPEND INTEREST.—For rules al-
lowing deposits to suspend running of interest on potential 
underpayments, see section 6603.’’. 
(j) DEPOSIT
TO MEET JURISDICTIONAL REQUIRE-
MENT.—The first sentence of section 6234(b) is amended by 
striking ‘‘the amount of the imputed underpayment (as of 
the date of the filing of the petition)’’ and inserting ‘‘the 
amount of (as of the date of the filing of the petition) the 
imputed underpayment, penalties, additions to tax, and ad-
ditional amounts with respect to such imputed under-
payment’’. 
(k) CORRECTIONS RELATED TO PERIOD OF LIMITA-
TION ON MAKING ADJUSTMENTS.— 
(1) Section 6235(a) is amended—
2031 
(A) by inserting ‘‘or section 905(c)’’ after 
‘‘Except as otherwise provided in this section’’, 
and 
(B) by striking ‘‘subpart’’ and inserting 
‘‘subchapter’’. 
(2) Section 6235(a)(3) is amended by striking 
‘‘section 
6225(c)(7)’’ 
and 
inserting 
‘‘section 
6225(c)(7))’’. 
(3) Section 6235(c)(2) is amended by striking 
‘‘section 6501(e)(1)(A)’’ and inserting ‘‘subparagraph 
(A) or (C) of section 6501(e)(1)’’. 
(4) Section 6235(c) is amended by adding at the 
end the following new subparagraphs: 
‘‘(5) INFORMATION
REQUIRED
TO
BE
RE-
PORTED.—In the case of a partnership that is re-
quired to report any information described in section 
6501(c)(8), the time for making any adjustment 
under this subchapter with respect to any tax return, 
event, or period to which such information relates 
shall not expire before the date that is determined 
under section 6501(c)(8). 
‘‘(6) LISTED TRANSACTIONS.—If a partnership 
fails to include on any return or statement any infor-
mation with respect to a listed transaction as de-
scribed in section 6501(c)(10), the time for making
2032 
any adjustment under this subchapter with respect to 
such transaction shall not expire before the date that 
is determined under section 6501(c)(10).’’. 
(5) Section 6235 is amended by striking sub-
section (d). 
(l) TREATMENT
OF SPECIAL ENFORCEMENT MAT-
TERS.—Section 6241, as amended by the preceding provi-
sions of this Act, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(11) TREATMENT
OF
SPECIAL
ENFORCEMENT 
MATTERS.— 
‘‘(A) IN GENERAL.—In the case of partner-
ship-related items which involve special enforce-
ment matters, the Secretary may prescribe regu-
lations pursuant to which— 
‘‘(i) this subchapter (or any portion 
thereof) does not apply to such items, and 
‘‘(ii) such items are subject to such spe-
cial rules (including rules related to assess-
ment and collection) as the Secretary deter-
mines to be necessary for the effective and 
efficient enforcement of this title. 
‘‘(B) SPECIAL
ENFORCEMENT
MATTERS.— 
For purposes of subparagraph (A), the term ‘spe-
cial enforcement matters’ means—
2033 
‘‘(i) failure to comply with the require-
ments of section 6226(b)(4)(A)(ii), 
‘‘(ii) assessments under section 6851 
(relating to termination assessments of in-
come tax) or section 6861 (relating to jeop-
ardy assessments of income, estate, gift, and 
certain excise taxes), 
‘‘(iii) criminal investigations, 
‘‘(iv) indirect methods of proof of in-
come, 
‘‘(v) foreign partners or partnerships, 
and 
‘‘(vi) other matters that the Secretary 
determines by regulation present special en-
forcement considerations.’’. 
(m) UNITED STATES SHAREHOLDERS AND CERTAIN 
OTHER PERSONS TREATED AS PARTNERS.—Section 6241, 
as amended by the preceding provisions of this Act, is 
amended by adding at the end the following new paragraph: 
‘‘(12) UNITED STATES SHAREHOLDERS AND CER-
TAIN OTHER PERSONS TREATED AS PARTNERS.— 
‘‘(A) IN
GENERAL.—Except as otherwise 
provided by the Secretary, in the case of any 
controlled foreign corporation (as defined in sec-
tion 957 or 953(c)(1)) which is a partner of a
2034 
partnership, each United States shareholder (as 
defined in section 951(b) or 953(c)(1)) with re-
spect to such controlled foreign corporation shall 
be treated for purposes of this subchapter as a 
partner of such partnership. For purposes of the 
preceding sentence, any distributive share of any 
such United States shareholder with respect to 
such partnership shall, except as otherwise pro-
vided by the Secretary, be equal to such United 
States shareholder’s pro rata share with respect 
to such controlled foreign corporation (deter-
mined under rules similar to the rules of section 
951(a)(2)). 
‘‘(B) PASSIVE FOREIGN INVESTMENT COM-
PANIES.—For purposes of subparagraph (A), in 
the case of a passive foreign investment company 
(as defined in section 1297), each taxpayer that 
makes an election under section 1295 with re-
spect to such company shall be treated in the 
same manner as United States shareholders 
under subparagraph (A), except that such tax-
payer’s pro rata share with respect to the passive 
foreign investment company shall be determined 
under rules similar to the rules of section 
1293(b).
2035 
‘‘(C) REGULATIONS OR OTHER GUIDANCE.— 
The Secretary shall issue such regulations or 
other guidance as is necessary or appropriate to 
carry out the purposes of this paragraph, includ-
ing regulations which apply the rules of sub-
paragraph (A) in similar circumstances or with 
respect to similarly situated persons.’’. 
(n) PENALTIES RELATED TO ADMINISTRATIVE AD-
JUSTMENT REQUESTS
AND PARTNERSHIP ADJUSTMENT 
TRACKING REPORTS.— 
(1) FAILURE TO PAY.—Section 6651 is amended 
by redesignating subsection (i) as subsection (j) and 
by inserting after subsection (h) the following new 
subsection: 
‘‘(i) APPLICATION TO IMPUTED UNDERPAYMENT.—For 
purposes of this section, any failure to comply with section 
6226(b)(4)(A)(ii) shall be treated as a failure to pay the 
amount described in subclause (II) thereof and such amount 
shall be treated for purposes of this section as an amount 
shown as tax on a return specified in subsection (a)(1).’’. 
(2) FAILURE
TO
FILE
PARTNERSHIP
ADJUST-
MENT TRACKING REPORT.—Section 6698(a) is amend-
ed— 
(A) in the matter preceding paragraph (1) 
by inserting ‘‘, or a partnership adjustment
2036 
tracking report under section 6226(b)(4)(A),’’ 
after ‘‘under section 6031’’, 
(B) in paragraph (1) by inserting ‘‘, or 
such report,’’ after ‘‘such return’’, and 
(C) in paragraph (2)— 
(i) by inserting ‘‘or a report’’ after ‘‘a 
return’’, and 
(ii) by inserting ‘‘or 6226(b)(4)(A), re-
spectively’’ before the comma at the end. 
(3) TAX
RETURN
PREPARER
RELATED
PEN-
ALTIES.—Section 6696(e)(1) is amended by inserting 
‘‘, any administrative adjustment request under sec-
tion 6227, and any partnership adjustment tracking 
report under section 6226(b)(4)(A)’’ before the period 
at the end. 
(4) FRIVOLOUS TAX SUBMISSIONS.—Section 6702 
is amended by adding at the end the following new 
subsection: 
‘‘(f) PARTNERSHIP ADJUSTMENTS.—An administra-
tive adjustment request under section 6227 and a partner-
ship 
adjustment 
tracking 
report 
under 
section 
6226(b)(4)(A) shall be treated as a return for purposes of 
this section.’’. 
(o) ADJUSTED SCHEDULE K–1 TREATED AS PAYEE 
STATEMENT.—Section 6724(d)(2) is amended by striking
2037 
‘‘or’’ at the end of subparagraph (HH), by striking the pe-
riod at the end of subparagraph (II) and inserting ‘‘, or’’, 
and by inserting after subparagraph (II) the following new 
subparagraph: 
‘‘(JJ) section 6226(a)(2) (relating to state-
ments relating to alternative to payment of im-
puted underpayment by partnership) or under 
any other provision of this title which provides 
for the application of rules similar to such sec-
tion.’’. 
(p) OTHER CLERICAL CORRECTIONS.— 
(1) Section 6225(c)(7) is amended by striking 
‘‘submitted pursuant to paragraph (1)’’ and inserting 
‘‘filed or submitted under this subsection’’. 
(2) Section 6227(b) is amended by striking ‘‘is 
made’’ both places it appears and inserting ‘‘is filed’’. 
(3) Section 6227(b)(1) is amended by striking 
‘‘paragraphs (2), (6), and (7)’’ and inserting ‘‘para-
graphs (2), (7), and (9)’’. 
(4) Section 6232(b) is amended by striking ‘‘this 
chapter’’ and inserting ‘‘this subtitle (other than sub-
chapter B of this chapter)’’. 
(5) Section 6232(d)(1)(A) is amended by striking 
‘‘a item’’ and inserting ‘‘an item’’.
2038 
(6) Section 6232(e) is amended by striking 
‘‘thereof’’. 
(7) Section 6241(5) is amended by striking ‘‘sec-
tions 6234’’ and inserting ‘‘section 6234’’. 
(8) Section 7485(b) is amended by striking ‘‘a 
partner’’ and inserting ‘‘the partnership’’. 
(9) The heading of the first part of subchapter C 
of chapter 63 is amended to read as follows: 
‘‘PART I—IN GENERAL’’. 
(10) The heading of the second part of sub-
chapter C of chapter 63 is amended to read as follows: 
‘‘PART II—PARTNERSHIP ADJUSTMENTS’’. 
(11) The heading of the third part of subchapter 
C of chapter 63 is amended to read as follows: 
‘‘PART III—PROCEDURE’’. 
(12) The heading of the fourth part of subchapter 
C of chapter 63 is amended to read as follows: 
‘‘PART IV—DEFINITIONS AND SPECIAL RULES’’. 
SEC. 207. EFFECTIVE DATE. 
The amendments made by this title shall take effect 
as if included in section 1101 of the Bipartisan Budget Act 
of 2015.
2039 
TITLE III—OTHER CORRECTIONS 
SEC. 301. AMENDMENTS RELATING TO THE BIPARTISAN 
BUDGET ACT OF 2015. 
(a) AMENDMENTS RELATING TO SECTION 1101.— 
(1) Section 6011(e) is amended by adding at the 
end the following new paragraph: 
‘‘(5) SPECIAL RULES FOR PARTNERSHIPS.— 
‘‘(A) PARTNERSHIPS PERMITTED TO BE RE-
QUIRED TO FILE ON MAGNETIC MEDIA.—In the 
case of a partnership, paragraph (2)(A) shall be 
applied by substituting for ‘250’ the following 
amount: 
‘‘(i) In the case of returns and state-
ments relating to calendar year 2018, ‘200’. 
‘‘(ii) In the case of returns and state-
ments relating to calendar year 2019, ‘150’. 
‘‘(iii) In the case of returns and state-
ments relating to calendar year 2020, ‘100’. 
‘‘(iv) In the case of returns and state-
ments relating to calendar year 2021, ‘50’. 
‘‘(v) In the case of returns and state-
ments relating to calendar years after 2021, 
‘20’. 
‘‘(B) PARTNERSHIPS REQUIRED TO FILE ON 
MAGNETIC
MEDIA.—Notwithstanding subpara-
2040 
graph (A) and paragraph (2)(A), the Secretary 
shall require partnerships having more than 100 
partners to file returns on magnetic media.’’. 
(2) Section 6011(e)(2) is amended by striking 
the last sentence. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as if included in section 1101 of 
the Bipartisan Budget Act of 2015. 
SEC. 302. AMENDMENTS RELATING TO THE ENERGY POLICY 
ACT OF 2005. 
(a) AMENDMENTS RELATING TO SECTION 1253.— 
(1) Subclause (II) of section 168(e)(3)(B)(vi) is 
amended by striking ‘‘is a qualifying small power 
production facility’’ and all that follows and insert-
ing ‘‘has a power production capacity of not greater 
than 80 megawatts, or’’. 
(2) The last sentence of section 168(e)(3)(B) is 
amended by striking ‘‘clause (vi)(I)’’ and all that fol-
lows and inserting ‘‘subclause (I) or (II) of clause (vi) 
by reason of being public utility property.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after the 
date of the enactment of this Act.
2041 
TITLE IV—CLERICAL 
CORRECTIONS AND DEADWOOD 
SEC. 401. CLERICAL CORRECTIONS AND DEADWOOD-RE-
LATED PROVISIONS. 
(a) CLERICAL CORRECTIONS.— 
(1) The table of subchapters for chapter 1 is 
amended by moving the item relating to subchapter R 
before the item relating to subchapter S. 
(2)(A) Sections 22(c)(3)(A)(i)(III), 104(b)(2)(D), 
140(a)(3), and 149(b)(3)(A)(i) are each amended by 
striking ‘‘Veterans’ Administration’’ and inserting 
‘‘Department of Veterans Affairs’’. 
(B) The heading of section 4980H(c)(2)(F) is 
amended by striking ‘‘VETERANS ADMINISTRATION’’ 
and inserting ‘‘DEPARTMENT OF VETERANS AFFAIRS’’. 
(C) Section 6050H(h)(3)(B)(i) is amended by 
striking ‘‘Veterans Administration’’ and inserting 
‘‘Department of Veterans Affairs’’. 
(3) Section 24(d) is amended by redesignating 
paragraph (5) as paragraph (3). 
(4) Section 25C(b)(2) is amended by striking 
‘‘subsection (c)(2)(B)’’ and inserting ‘‘subsection 
(c)(3)(B)’’. 
(5) Section 25C(d)(3) is amended—
2042 
(A) by striking the period at the end of sub-
paragraph (B) and inserting a comma, and 
(B) by striking the period at the end of sub-
paragraph (D) and inserting ‘‘, and’’. 
(6) Section 25C(g)(2) is amended by striking 
‘‘2017..’’ and inserting ‘‘2017.’’. 
(7) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 is amended— 
(A) by striking the item relating to section 
41 which relates to the employee stock ownership 
credit, and 
(B) by moving the item relating to section 
45K after the item relating to section 45J. 
(8) Section 38(b)(34) is amended by adding a 
comma at the end. 
(9) The heading of section 40(g)(2) is amended 
by striking ‘‘AGGREGRATION’’ and inserting ‘‘AGGRE-
GATION’’. 
(10) The heading of section 42(e)(2)(B) is 
amended by striking ‘‘ETC,’’ and inserting ‘‘ETC.,’’. 
(11)(A) Section 42(d)(4)(C)(i) is amended by 
striking ‘‘as defined in paragraph (5)(C)’’ and insert-
ing ‘‘as defined in paragraph (5)(B)(ii)’’. 
(B) Section 42(f)(5)(B)(ii)(I) is amended by 
striking ‘‘(d)(6)(C)’’ and inserting ‘‘(d)(6)(B)’’.
2043 
(C) Section 42(k)(2)(B) is amended— 
(i) by striking ‘‘(d)(6)(B)’’ and inserting 
‘‘(d)(6)(C)’’, and 
(ii) by striking ‘‘building..’’ in clause (ii) 
and inserting ‘‘building.’’. 
(D) Section 42(m)(1)(B)(ii)(III) is amended by 
striking ‘‘as defined in subsection (d)(5)(C)’’ and in-
serting ‘‘as defined in subsection (d)(5)(B)(ii)’’. 
(12) Section 42(h)(5)(C)(ii) is amended by strik-
ing ‘‘; and’’ and inserting ‘‘, and’’. 
(13) Section 42(i)(3)(D)(ii)(I) is amended by 
striking the period at the end. 
(14) Section 45(c)(6) is amended by striking 
‘‘section 2(27)’’ and inserting ‘‘section 1004(27)’’. 
(15) Section 45(c)(7)(A)(i)(II) is amended by 
striking ‘‘for purpose’’ and inserting ‘‘for the pur-
pose’’. 
(16) Section 45(c)(7)(A)(i)(III) is amended by 
striking the period at the end and inserting ‘‘, or’’. 
(17) Section 45C(b)(2)(A)(ii)(II) is amended by 
striking ‘‘; and’’ and inserting ‘‘, and’’. 
(18) Section 45D(f)(1)(F) is amended by adding 
‘‘, and’’ at the end. 
(19) Section 45H(d) is amended by striking 
‘‘purposes this’’ and inserting ‘‘purposes of this’’.
2044 
(20) Section 48(a)(1) is amended by striking 
‘‘(3)(B), and (4)(B)’’ and inserting ‘‘and (3)(B)’’. 
(21) Section 48(a)(6)(B) is amended by striking 
‘‘property energy property’’ and inserting ‘‘energy 
property’’. 
(22) Section 48(c)(2)(B) is amended by striking 
‘‘equal $200’’ and inserting ‘‘equal to $200’’. 
(23) Section 48(d)(3) is amended— 
(A) by striking ‘‘shall’’ in the matter that 
precedes subparagraph (A), and 
(B) by inserting ‘‘shall’’ before ‘‘not’’ in 
subparagraph (A). 
(24) Section 49(a)(1)(D)(iii) is amended by 
striking ‘‘share-holder’’ in the last sentence and in-
serting ‘‘shareholder’’. 
(25) Section 50(b)(2)(A) is amended by striking 
the period at the end and inserting a semicolon. 
(26) Section 51(c)(4) is amended by adding a 
period at the end. 
(27) Section 51(d)(3)(A)(ii)(II) is amended by 
adding a comma at the end. 
(28) Section 51(d)(8) is amended by striking 
‘‘FOOD STAMP RECIPIENT’’ in the heading thereof and 
inserting ‘‘SUPPLEMENTAL
NUTRITION
ASSISTANCE 
PROGRAM BENEFITS RECIPIENT’’.
2045 
(29) Section 51(i)(1)(A) is amended by striking 
‘‘entity,’’ and inserting ‘‘entity’’. 
(30) Section 58(a)(2)(A) is amended by striking 
‘‘461(j)’’ and inserting ‘‘461(k)’’. 
(31) Section 62(a)(20) is amended by inserting 
a comma after ‘‘United States Code’’. 
(32) Section 62(e)(1) is amended by striking ‘‘(2 
U.S.C. 1202)’’ and inserting ‘‘(42 U.S.C. 2000e– 
16b)’’. 
(33) Section 68(b)(2) is amended by striking 
‘‘shall be shall be’’ and inserting ‘‘shall be’’. 
(34) The heading of section 82 is amended by 
striking ‘‘FOR EXPENSES OF MOVING’’ and insert-
ing ‘‘OF MOVING EXPENSES’’. 
(35) The heading of section 84 is amended by 
striking ‘‘POLITICAL ORGANIZATION’’ and insert-
ing ‘‘POLITICAL ORGANIZATIONS’’. 
(36) Section 105(h)(7)(B) is amended by strik-
ing ‘‘subparagraph (A)’’ and inserting ‘‘subparagraph 
(A))’’. 
(37) Section 125(e)(2) is amended by striking 
‘‘subparagraphs’’ and inserting ‘‘subparagraph’’. 
(38) Section 132(c)(4) is amended by striking 
‘‘peforming’’ and inserting ‘‘performing’’.
2046 
(39) Section 134(b)(6) is amended by striking 
‘‘an combat’’ and inserting ‘‘a combat’’. 
(40) Section 137(c) is amended by striking ‘‘sec-
tion 514’’ in the second sentence and inserting ‘‘sec-
tion 541’’. 
(41) Section 139(c)(2) is amended by striking 
‘‘federally’’ and inserting ‘‘a federally’’. 
(42) Section 139E(c)(1) is amended by striking 
‘‘(43 U.S.C. 1601, et seq.)’’ and inserting ‘‘(43 U.S.C. 
1601 et seq.)’’. 
(43) Section 139E(c)(3) is amended by striking 
‘‘2013’’ and inserting ‘‘2014’’. 
(44) Section 3(a) of the Tribal General Welfare 
Exclusion Act of 2014 is amended by striking ‘‘sub-
section’’ and inserting ‘‘section’’. 
(45) Section 4(c) of such Act is amended by 
striking ‘‘subsection’’ and inserting ‘‘section’’. 
(46) The item relating to section 143 in the table 
of sections for subpart A of part IV of subchapter B 
of chapter 1 is amended to read as follows: 
‘‘Sec. 143. Mortgage revenue bonds; qualified mortgage bond and qualified vet-
erans’ mortgage bond.’’. 
(47) Section 142(d)(2)(C) is amended by insert-
ing ‘‘section’’ before ‘‘42(i)(3)(D)’’. 
(48) Section 163(e)(5)(C)(ii) is amended by in-
serting ‘‘in’’ before ‘‘subsection (i)(1)(B)’’.
2047 
(49) Section 168(d)(3)(B)(i) is amended by in-
serting a comma after ‘‘real property’’. 
(50) Section 168(e)(3)(C)(i) is amended by strik-
ing ‘‘and’’. 
(51) Section 169(d)(5)(B) is amended by insert-
ing ‘‘a’’ before ‘‘facility’’. 
(52) Section 170(b)(1)(A)(ix) is amended by in-
serting ‘‘National’’ before ‘‘Agricultural’’. 
(53) Section 172(d)(5) is amended by striking 
‘‘section 243’’ and inserting ‘‘sections 243’’. 
(54) Section 179D(d)(1)(B) is amended by strik-
ing ‘‘which’’ and inserting ‘‘such that’’. 
(55) Section 219(f)(1) is amended by striking 
‘‘term compensation includes’’ in the last sentence 
and inserting ‘‘term ‘compensation’ includes’’. 
(56) Section 219(g)(8) is amended by striking 
‘‘shall each be’’ and inserting ‘‘shall be’’. 
(57) Section 223(c)(2)(C) is amended by striking 
‘‘section 1871’’ and inserting ‘‘section 1861’’. 
(58) Section 223(d)(2)(A) is amended by striking 
‘‘section 213(d)’’ and inserting ‘‘section 213(d))’’. 
(59) The item relating to section 280H in the 
table of sections for part IX of subchapter B of chap-
ter 1 is amended to read as follows: 
‘‘Sec. 280H. Limitation on certain amounts paid to employee-owners by personal 
service corporations electing alternative taxable years.’’.
2048 
(60) Subparagraphs (F) and (G) of section 
263(a)(1) are each amended by striking the semicolon 
at the end and inserting a comma. 
(61) Section 263(a)(1) is amended by redesig-
nating subparagraphs (I) through (L) as subpara-
graphs (H) through (K), respectively. 
(62) Section 280C(a) is amended by striking 
‘‘and 1396(a),’’ and inserting ‘‘1396(a),’’. 
(63) The heading of section 331 is amended by 
striking ‘‘SHAREHOLDERS’’ and inserting ‘‘SHARE-
HOLDER’’. 
(64) Section 338(h)(3)(A)(iii) is amended by 
striking ‘‘paragaraph’’ and inserting ‘‘paragraph’’. 
(65) The second sentence of section 355(h)(2)(B) 
is amended by striking ‘‘of assets’’. 
(66) The heading of subpart C of part III of sub-
chapter C of chapter 1 is amended by striking ‘‘Cor-
poration’’ and inserting ‘‘Corporations’’. 
(67) Section 362(a) is amended by striking the 
comma after ‘‘acquired’’. 
(68) Section 368(a)(2)(F)(vii) is amended by 
striking ‘‘(15 U.S.C. 80a-2(36))’’ and inserting ‘‘(15 
U.S.C. 80a–2(a)(36))’’. 
(69) Section 401(a)(2) is amended by striking 
‘‘determination).;’’ and inserting ‘‘determination));’’.
2049 
(70) Section 401(a)(15) is amended by striking 
‘‘a trust’’ and inserting ‘‘A trust’’. 
(71) Section 401(a)(32)(A) is amended by strik-
ing ‘‘section section’’ both places it appears and in-
serting ‘‘section’’. 
(72) Section 401(c)(2)(A)(iii) is amended by 
striking ‘‘sections 3121(d)(3)(A), (C), or (D), without 
regard to paragraph (2) of section 1402(c)’’ and in-
serting ‘‘subparagraph (A), (C), or (D) of section 
3121(d)(3), without regard to section 1402(c)(2)’’. 
(73) Section 402(i) is amended by striking ‘‘sub-
paragraph (A) of subsection (d)(4)’’ and inserting 
‘‘subsection (e)(4)(D)(i)’’. 
(74) Section 404A(c)(4)(B) is amended by strik-
ing ‘‘and’’ at the end. 
(75) Section 408(a)(1) is amended by inserting 
‘‘or’’ after ‘‘subsection (d)(3)’’. 
(76) Section 408(m)(3)(B) is amended by strik-
ing ‘‘section 7’’ and inserting ‘‘section 5’’. 
(77) Section 408A(d)(3)(B) is amended by add-
ing a period at the end. 
(78) Section 408A(e)(2)(B) is amended by strik-
ing ‘‘the subparagraph (A)’’ and inserting ‘‘subpara-
graph (A)’’.
2050 
(79) Section 409(n)(1)(A)(i) is amended by 
striking ‘‘securities,,,’’ and inserting ‘‘securities,’’. 
(80) Section 409A(b)(3)(B)(i) is amended by 
striking the semicolon at the end and inserting a 
comma. 
(81) The item relating to section 413 in the table 
of sections for subpart B of part I of subchapter D 
of chapter 1 is amended to read as follows: 
‘‘Sec. 413. Collectively bargained plans, etc.’’. 
(82) Section 411(a)(4)(A) is amended by striking 
the comma at the end and inserting a semicolon. 
(83) Section 412(c)(1)(A) is amended by adding 
a period at the end. 
(84) Section 412(c)(4)(B) is amended by insert-
ing ‘‘section’’ before ‘‘433(d)’’. 
(85) Section 412(c)(7)(B)(iii) is amended by 
striking the comma after ‘‘subchapter D’’. 
(86) Section 413(b)(6) is amended by striking 
‘‘and the last sentence of section 4971(a)’’ in the last 
sentence and inserting ‘‘and section 4971(e)’’. 
(87) Section 414(l)(2)(G) is amended by striking 
‘‘BANKS’’ in the heading thereof and inserting ‘‘DE-
POSITORY INSTITUTIONS’’. 
(88) Section 414(u)(6) is amended by striking 
‘‘section 457(b))’’ and inserting ‘‘section 457(b)))’’.
2051 
(89) Section 414(x)(1) is amended by striking 
‘‘are’’ and inserting ‘‘is’’. 
(90) Section 414(y)(1)(C)(i) is amended by strik-
ing ‘‘of such Code’’. 
(91) Section 414(y)(2) is amended by striking 
‘‘subparagraph’’ and inserting ‘‘subparagraphs’’. 
(92) Section 418E is amended by striking ‘‘sub-
section 432(b)(2)’’ each place it appears and inserting 
‘‘section 432(b)(2)’’. 
(93) Section 418E(d)(1), as amended by the pre-
ceding paragraph, is amended— 
(A) by striking ‘‘section 432(b)(2),,’’ and in-
serting ‘‘section 432(b)(2),’’, 
(B) by striking ‘‘section 432(b)(2),)’’ and 
inserting ‘‘section 432(b)(2))’’, and 
(C) by striking ‘‘compare the value of plan 
assets’’ and all that follows through ‘‘for that 
plan year with’’ and inserting ‘‘compare the 
value of plan assets for that plan year with’’. 
(94) Section 418E(e)(1)(A) is amended to read 
as follows: 
‘‘(A) notify the Secretary and the parties 
described in section 101(f)(1) of the Employee 
Retirement Income Security Act of 1974 of that 
determination, and’’.
2052 
(95) The table of subparts for part I of sub-
chapter D of chapter 1 is amended by striking the 
item relating to subpart C and inserting the fol-
lowing: 
‘‘SUBPART C—INSOLVENT PLANS’’. 
(96) Section 419A(c)(6)(B) is amended by strik-
ing ‘‘(42 U.S.C. 300gg-91(d)(3))’’ and inserting ‘‘(42 
U.S.C. 300gg–91(d)(3)))’’. 
(97) Section 420(c)(1)(A) is amended by striking 
‘‘subsection (e)(1)(D)’’ and inserting ‘‘subsection 
(e)(1)(E)’’. 
(98) Section 424(g) is amended by striking ‘‘sec-
tion 422(a)(2)’’ and inserting ‘‘sections 422(a)(2)’’. 
(99) Section 430(c)(7)(E)(v)(II) is amended by 
inserting ‘‘the’’ after ‘‘title I of’’. 
(100) Section 430(h)(2)(F) is amended by strik-
ing ‘‘section 417(e)(3)(D)(i)’’ and inserting ‘‘section 
417(e)(3)(D)’’. 
(101) Section 431(d)(2)(B)(i) is amended by 
striking ‘‘this Act’’ and inserting ‘‘the Pension Protec-
tion Act of 2006’’. 
(102) Section 432(b)(3)(A)(i) is amended by 
striking ‘‘in endangered status for such plan year’’ 
and all that follows through ‘‘, whether or not’’ and 
inserting the following: ‘‘in endangered status for such
2053 
plan year, or would be in endangered status for such 
plan year but for paragraph (5), whether or not’’. 
(103) Section 432(b)(3)(B) is amended by redes-
ignating the clause (iv) relating to projections of crit-
ical and declining status as clause (v). 
(104) Section 432(b)(3)(D)(iv) is amended by in-
serting a comma after ‘‘Labor’’. 
(105) Section 432(e)(8)(C)(iii) is amended by 
striking ‘‘the Secretary shall’’ and inserting ‘‘The Sec-
retary shall’’. 
(106) So much of the text of section 432(f)(3) as 
precedes subparagraph (A) is amended to read as fol-
lows: ‘‘During the period beginning on the date of the 
certification under subsection (b)(3)(A) for the initial 
critical year and ending on the date of the adoption 
of a rehabilitation plan—’’. 
(107) Section 432(g)(1) is amended by striking 
‘‘subsection (e)(9))’’ and inserting ‘‘subsection (e)(9)’’. 
(108) Section 433(c)(5)(C)(ii)(II) is amended by 
inserting ‘‘of such Act’’ after ‘‘title IV’’. 
(109)(A) The heading for section 433 is amended 
by inserting ‘‘FOR CSEC PLANS’’ after ‘‘FUNDING 
STANDARDS’’.
2054 
(B) The table of sections for subpart A of part 
III of subchapter D of chapter 1 is amended by add-
ing at the end the following new item: 
‘‘Sec. 433. Minimum funding standards for CSEC plans.’’. 
(110) The item relating to section 436 in the 
table of sections for subpart B of part III of sub-
chapter D of chapter 1 is amended to read as follows: 
‘‘Sec. 436. Funding-based limits on benefits and benefit accruals under single-em-
ployer plans.’’. 
(111) The heading of section 453B is amended 
by striking ‘‘LOSS
DISPOSITION’’ and inserting 
‘‘LOSS ON DISPOSITION’’. 
(112) Section 457(f)(4)(C)(i) is amended— 
(A) by striking ‘‘section 9101’’ and insert-
ing ‘‘section 8101’’, and 
(B) by striking ‘‘7801),’’ and inserting 
‘‘7801)),’’. 
(113) Section 457A(d)(4) is amended— 
(A) by striking ‘‘case a foreign’’ and insert-
ing ‘‘case of a foreign’’, and 
(B) by striking ‘‘had been’’ and inserting 
‘‘been’’. 
(114) Section 458(b)(9) is amended by striking 
‘‘REPURCHASED’’ in the heading thereof and inserting 
‘‘REPURCHASE’’.
2055 
(115) Section 458(c)(1) is amended by striking 
‘‘regulations prescribed’’ and inserting ‘‘regulations 
prescribe’’. 
(116) Section 460(b)(2)(A) is amended by insert-
ing a comma after ‘‘first’’. 
(117)(A) Section 461 is amended by redesig-
nating the second subsection (j) (relating to farming 
syndicate defined) as subsection (k). 
(B) Section 461(i)(4) is amended by striking 
‘‘subsection (j)’’ and inserting ‘‘subsection (k)’’. 
(118) The heading of section 464 is amended by 
inserting ‘‘EXPENSES’’ after ‘‘FARMING’’. 
(119) Section 464(d)(2)(B)(iii) is amended by 
striking ‘‘subsection (c)(2)(E)’’ and inserting ‘‘section 
461(k)(2)(E)’’. 
(120) Section 470(d)(2)(B) is amended by strik-
ing ‘‘clause (ii)’’ and inserting ‘‘subparagraph 
(A)(ii)’’. 
(121) The item relating to part VIII in the table 
of parts for subchapter F of chapter 1 is amended to 
read as follows: 
‘‘PART VIII. CERTAIN SAVINGS ENTITIES’’. 
(122) Section 501(c)(14)(B)(iv) is amended by 
adding a period at the end. 
(123) Section 501(c)(19)(B) is amended by strik-
ing ‘‘widows,,’’ and inserting ‘‘widows,’’.
2056 
(124) Section 501(f)(3)(B) is amended by strik-
ing ‘‘section 115(a)’’ and inserting ‘‘section 115’’. 
(125) The item relating to section 511 in the 
table of sections for part III of subchapter F of chap-
ter 1 is amended to read as follows: 
‘‘Sec. 511. Imposition of tax on unrelated business income of charitable, etc., or-
ganizations.’’. 
(126) Section 512(b)(19)(H)(iii) is amended by 
striking ‘‘clause (i)(II)’’ and inserting ‘‘clause (i)’’. 
(127) Section 529(c)(6) is amended by striking 
‘‘an Coverdell’’ and inserting ‘‘a Coverdell’’. 
(128) Section 529(e)(3)(A) is amended— 
(A) by striking the semicolon at the end of 
clause (i) and inserting a comma, and 
(B) by adding ‘‘, and’’ at the end of clause 
(ii). 
(129) Section 529A(d)(4) is amended by striking 
‘‘Achieving a Better Life Experience Act of 2014’’ and 
inserting ‘‘Stephen Beck, Jr., ABLE Act of 2014’’. 
(130) Section 529A(e)(4) is amended by striking 
‘‘subparagraph section’’ and inserting ‘‘section’’. 
(131) Section 530(d)(9)(B) is amended by strik-
ing ‘‘by the’’ and inserting ‘‘by’’. 
(132) Section 542(c)(5) is amended by striking 
the comma at the end and inserting a semicolon.
2057 
(133) Section 542(c)(7) is amended by striking 
‘‘A small’’ and inserting ‘‘a small’’. 
(134) Section 543(a)(2)(B)(ii) is amended by 
striking ‘‘section 563(d)’’ and inserting ‘‘section 
563(c)’’. 
(135) Section 543(d)(5)(A)(ii) is amended by 
striking ‘‘section 563(d)’’ and inserting ‘‘section 
563(c)’’. 
(136) Section 613A(c)(7)(B) is amended by 
striking ‘‘taxpayers’’ and inserting ‘‘taxpayer’s’’. 
(137) Section 642(c)(1) is amended by striking 
‘‘other then’’ and inserting ‘‘other than’’. 
(138) The item relating to section 661 in the 
table of sections for subpart C of part I of subchapter 
J of chapter 1 is amended to read as follows: 
‘‘Sec. 661. Deduction for estates and trusts accumulating income or distributing 
corpus.’’. 
(139) Section 706(b)(5) is amended by striking 
‘‘section 584(h)’’ and inserting ‘‘section 584(i)’’. 
(140) Section 751(c) is amended by striking 
‘‘and, sections’’ both places it appears and inserting 
‘‘and sections’’. 
(141) Section 807(e)(5)(A)(i) is amended by 
striking ‘‘subparagraph (C)’’ and inserting ‘‘subpara-
graph (B)’’.
2058 
(142) Section 831(c) is amended by striking 
‘‘section 816(a)).’’ and inserting ‘‘section 816(a).’’. 
(143) Section 832(b)(7)(E)(ii)(II) is amended by 
striking the comma at the end and inserting a period. 
(144) Section 852(a)(1)(B) is amended by strik-
ing ‘‘265,’’ and inserting ‘‘265 and’’. 
(145) Section 852(b)(2)(D) is amended by strik-
ing ‘‘the deduction’’ and inserting ‘‘The deduction’’. 
(146) Subparagraphs (A) and (B) of section 
856(c)(7) are each amended by striking ‘‘paragraph 
(4)(B)(iii)’’ and inserting ‘‘paragraph (4)(B)(iv)’’. 
(147) Paragraphs (1), (3), (4), and (5) of section 
856(m) are each amended by striking ‘‘subsection 
(c)(4)(B)(iii)’’ 
and 
inserting 
‘‘subsection 
(c)(4)(B)(iv)’’. 
(148) Section 857(b)(6)(J) is amended by strik-
ing ‘‘section 856(c)(8)’’ and inserting ‘‘section 
856(c)(10)’’. 
(149) Section 860(f)(2)(A)(ii) is amended by 
striking ‘‘decreased’’ and inserting ‘‘decrease’’. 
(150) Section 860(i) is amended by striking 
‘‘willfull’’ and inserting ‘‘willful’’. 
(151) Section 860G(a)(3)(A)(iii)(III) is amended 
by striking the period at the end and inserting a 
comma.
2059 
(152) Section 864(d)(8) is amended by striking 
‘‘section 956(b)(3)’’ and inserting ‘‘section 956(c)(3)’’. 
(153) Section 877(d)(4)(B)(i) is amended by 
striking ‘‘in 957’’ and inserting ‘‘in section 957’’. 
(154) Section 877A(g)(6) is amended by striking 
‘‘220(e)(4)’’ and inserting ‘‘220(f)(4)’’. 
(155) Section 897(a)(1)(A) is amended by strik-
ing ‘‘section 871(B)(1)’’ and inserting ‘‘section 
871(b)(1)’’. 
(156) The heading of section 897(k)(2) is amend-
ed by striking ‘‘USRPI’’ and inserting ‘‘UNITED 
STATES REAL PROPERTY INTEREST’’. 
(157) Section 904(d)(2)(B)(ii) is amended— 
(A) by striking ‘‘, except as provided in sub-
paragraph (E)(iii) or paragraph (3)(I),’’, and 
(B) by inserting ‘‘subparagraph (E)(ii), or 
paragraph (3)(H),’’ after ‘‘Except as provided in 
clause (iii),’’ 
(158) Section 907(c)(3)(C) is amended by strik-
ing the period after ‘‘partnerships’’ and inserting a 
comma. 
(159) Section 907(f)(1) is amended by striking 
‘‘year,’’ and inserting ‘‘years,’’.
2060 
(160) Section 911(d)(8)(B)(i) is amended by 
striking ‘‘(50 U.S.C. App. 1 et seq.)’’ and inserting 
‘‘(50 U.S.C. 4301 et seq.)’’. 
(161) Section 912(1)(B) is amended by striking 
‘‘(50 U.S.C., sec. 403e)’’ and inserting ‘‘(50 U.S.C. 
3505)’’. 
(162) Section 956(c)(2)(E) is amended by strik-
ing ‘‘which are not contracts described in section 
953(a)(1)’’ and inserting ‘‘which are contracts de-
scribed in section 953(e)(2)’’. 
(163) Section 956(e) is amended by striking 
‘‘provisons’’ and inserting ‘‘provisions’’. 
(164) Section 957(b) is amended by striking 
‘‘contracts described in section 953(a)(1)’’ and insert-
ing ‘‘contracts not described in section 953(e)(2)’’. 
(165) The heading of section 993 is amended by 
inserting ‘‘AND SPECIAL RULES’’ after ‘‘DEFINI-
TIONS’’. 
(166) Section 1016(a)(3)(D) is amended by in-
serting ‘‘as in effect prior to its repeal by the Tax Re-
form Act of 1986’’ before ‘‘(or the corresponding pro-
visions of prior income tax laws)’’. 
(167) Section 1033(h)(2) is amended by insert-
ing ‘‘is’’ before ‘‘located’’.
2061 
(168) Section 1035(a)(1) is amended by striking 
‘‘; or’’ and inserting a semicolon. 
(169) Section 1059(d)(3) is amended by striking 
‘‘; except that’’ and all that follows and inserting 
‘‘and there shall not be taken into account any day 
which is more than 2 years after the date on which 
such share becomes ex-dividend.’’. 
(170) Section 1092(a)(2)(B) is amended by strik-
ing ‘‘with respect other’’ in the last sentence and in-
serting ‘‘with respect to other’’. 
(171) Section 1092(c)(4)(E) is amended by strik-
ing ‘‘(other than subparagraph (B) thereof)’’. 
(172) The item relating to section 1222 in the 
table of sections for part III of subchapter P of chap-
ter 1 is amended to read as follows: 
‘‘Sec. 1222. Other terms relating to capital gains and losses.’’. 
(173) The item relating to section 1252 in the 
table of sections for part IV of subchapter P of chap-
ter 1 is amended to read as follows: 
‘‘Sec. 1252. Gain from disposition of farm land.’’. 
(174) Section 1250(d)(3) is amended by striking 
‘‘paragraph (9)’’ and inserting ‘‘paragraph (6)’’. 
(175) Section 1255(b)(2) is amended by striking 
‘‘170(e),’’ and inserting ‘‘170(e)’’.
2062 
(176)(A) Subparagraphs (B) and (C) of section 
1256(e)(3) are each amended by striking ‘‘section 
464(e)(2)’’ and inserting ‘‘section 461(k)(4)’’. 
(B) Section 1258(d)(5)(C) is amended by strik-
ing ‘‘section 464(e)(2)’’ and inserting ‘‘section 
461(k)(4)’’. 
(177) Section 1257(c)(1) is amended— 
(A) by striking ‘‘section 1201(4)’’ and in-
serting ‘‘section 1201(a)(7)’’, and 
(B) by striking ‘‘16 U.S.C. 3801(4)’’ and 
inserting ‘‘16 U.S.C. 3801(7)’’. 
(178) Section 1257(c)(2) is amended— 
(A) by striking ‘‘section 1201(6)’’ and in-
serting ‘‘section 1201(a)(10)’’, and 
(B) by striking ‘‘16 U.S.C. 3801(6)’’ and 
inserting ‘‘16 U.S.C. 3801(10)’’. 
(179) Section 1274(b)(3)(B)(i) is amended by 
striking ‘‘section 6662(d)(2)(C)(iii)’’ and inserting 
‘‘section 6662(d)(2)(C)(ii)’’. 
(180) Section 1276(a)(4) is amended by striking 
‘‘871(a),,’’ and inserting ‘‘871(a),’’. 
(181) Section 1278(b)(1) is amended by striking 
‘‘871(a),,’’ and inserting ‘‘871(a),’’. 
(182) Section 1286(f) is amended by striking 
‘‘and 305(e),’’ and inserting ‘‘and section 305(e),’’.
2063 
(183) Section 1291(e) is amended by striking 
‘‘subsections (c) and (d) (e),’’ and inserting ‘‘sub-
sections (c), (d), and (e)’’. 
(184) Section 1298(b)(5)(B) is amended by strik-
ing ‘‘section 951(f)’’ and inserting ‘‘section 951(c)’’. 
(185) Section 1298(d)(2)(A) is amended by strik-
ing ‘‘section 1296(a)(2)’’ and inserting ‘‘section 
1297(a)(2)’’. 
(186) Section 1298(e)(2)(B)(ii) is amended by 
striking ‘‘provisons’’ and inserting ‘‘provisions’’. 
(187) Section 1355(f)(3) is amended by striking 
‘‘of which’’ and inserting ‘‘on which’’. 
(188) Section 1358(b)(1) is amended by striking 
‘‘section 1352(a)(2)’’ and inserting ‘‘section 1352(2)’’. 
(189) Section 1358(c)(2) is amended by striking 
‘‘an person’s’’ and inserting ‘‘a person’s’’. 
(190) Sections 1361(f)(2), 1362(d)(3)(C)(v), and 
4975(d)(16)(A) 
are 
each 
amended 
by 
striking 
‘‘1813(w)(1)),’’ and inserting ‘‘1813(w)(1))),’’. 
(191) Section 1362(f) is amended by striking 
‘‘may be during’’ and inserting ‘‘may be, during’’. 
(192) Section 1366(e) is amended by striking 
‘‘section 704(e)(3)’’ and inserting ‘‘section 704(e)(2)’’. 
(193) Section 1368(f)(2) is amended by striking 
‘‘in included’’ and inserting ‘‘is included’’.
2064 
(194) Section 1391(g)(3)(E)(ii) is amended by 
striking ‘‘Interior’’ and inserting ‘‘the Interior’’. 
(195) Section 1394(b)(3)(B)(i)(II) is amended by 
striking ‘‘subsection’’ and inserting ‘‘subsections’’. 
(196) Section 1397C(d)(5)(B) is amended by 
striking ‘‘subparagraphs (A) or (B)’’ and inserting 
‘‘subparagraph (A) or (B)’’. 
(197) Section 1402(a)(1) is amended— 
(A) by striking ‘‘section 1233(2)’’ and in-
serting ‘‘section 1233(a)(2)’’, and 
(B) by striking ‘‘16 U.S.C. 3833(2)’’ and 
inserting ‘‘16 U.S.C. 3833(a)(2)’’. 
(198) Section 1402(b) is amended by striking 
‘‘3211,.’’ and inserting ‘‘3211.’’. 
(199) The heading of section 1446 is amended by 
striking ‘‘WITHHOLDING TAX’’ in the heading and 
inserting ‘‘WITHHOLDING OF TAX’’. 
(200) Section 2031(c)(1) is amended by striking 
all that follows subparagraph (A) and inserting the 
following: 
‘‘(B) $500,000.’’. 
(201) Section 2031(c)(2) is amended by striking 
‘‘paragraph (5)).’’ and inserting ‘‘paragraph (5))).’’.
2065 
(202) Section 2055(e)(3)(G) is amended by strik-
ing ‘‘subparagraph (J)’’ and inserting ‘‘subparagraph 
(J))’’. 
(203) Section 2106(a)(4) is amended by insert-
ing ‘‘section’’ before ‘‘2058(a)’’. 
(204) Section 2522(c)(1) is amended by striking 
‘‘to of for’’ and inserting ‘‘to or for’’. 
(205) Section 2523(g)(1) is amended by striking 
‘‘noncharitable beneficiary’’ and inserting ‘‘bene-
ficiary who is not a charitable beneficiary’’. 
(206) Section 2523(g)(2) is amended by striking 
‘‘noncharitable’’ and inserting ‘‘charitable’’. 
(207) Section 3101(a) is amended by adding a 
period at the end. 
(208) Section 3111(e)(5)(B) is amended by in-
serting ‘‘the’’ before ‘‘meaning’’. 
(209) Section 3121(b)(5)(B)(i)(V) is amended by 
striking ‘‘section 105(e)(2)’’ and inserting ‘‘section 
104(e)(2)’’. 
(210) Section 3121(b)(5)(H)(i) is amended by 
striking ‘‘1997’’ and inserting ‘‘1997,’’. 
(211) Section 3304(a)(4)(G)(ii) is amended by 
striking ‘‘section 6402(f)(4)(B)’’ and inserting ‘‘sec-
tion 6402(f)(4)(C)’’.
2066 
(212) Section 3306(b)(5)(F) is amended by strik-
ing the semicolon at the end and inserting a comma. 
(213) Section 3306(c)(19) is amended by striking 
‘‘Service’’ and inserting ‘‘service’’. 
(214) Section 3306(u) is amended by striking 
‘‘25 U.S.C. 450b(e)’’ and inserting ‘‘25 U.S.C. 
5304(e)’’. 
(215) Section 3306(v) is amended by striking 
‘‘this part’’ and inserting ‘‘this section’’. 
(216) Section 3309(d) is amended by striking 
‘‘25 U.S.C. 450b(e)’’ and inserting ‘‘25 U.S.C. 
5304(e)’’. 
(217)(A) Paragraphs (1), (2), (3), (4)(B), (5), 
(6), (8)(A)(ii), (8)(B), (8)(D), (9), (10)(B), (11), 
(12)(A), (12)(B), (12)(C), (13), (14), and (15) of sec-
tion 3401(a) are each amended by striking ‘‘; or’’ at 
the end and inserting a comma. 
(B) 
Paragraphs 
(4)(A), 
(8)(A)(i), 
(8)(C), 
(10)(A), (12)(D), and (22) of section 3401(a) are each 
amended by striking ‘‘; or’’ at the end and inserting 
‘‘, or’’. 
(C) Section 3401(a)(12)(E) is amended by strik-
ing ‘‘, or’’ at the end and inserting a comma. 
(D) Paragraphs (16)(A), (16)(B), (17), (18), 
(19), (20), and (21) of section 3401(a) are each
2067 
amended by striking the semicolon at the end and in-
serting a comma. 
(218) Section 3509(d)(1)(C) is amended by strik-
ing ‘‘sections’’ and inserting ‘‘section’’. 
(219) Section 4051(a)(3) is amended by striking 
‘‘Secretary.’’ and inserting ‘‘Secretary).’’. 
(220) Section 4104(a)(1) is amended by striking 
‘‘section’’ and inserting ‘‘sections’’. 
(221) Section 4221(a) is amended by striking 
‘‘section 4051,’’ and inserting ‘‘section 4051’’. 
(222) The item relating to part III in the table 
of parts for subchapter C of chapter 33 is amended 
by striking ‘‘relating’’ and inserting ‘‘applicable’’. 
(223) Section 4612(e)(2)(B)(ii)(I) is amended by 
striking ‘‘tranferred’’ and inserting ‘‘transferred’’. 
(224) Section 4958(f)(1)(D) is amended by strik-
ing the period at the end and inserting a comma. 
(225) Section 4971(b) is amended by striking 
‘‘minimum required contribution,’’ and all that fol-
lows through ‘‘whichever is applicable’’ and inserting 
the following: ‘‘minimum required contribution, accu-
mulated funding deficiency, or CSEC accumulated 
funding deficiency, whichever is applicable’’. 
(226) Section 4971(c)(3) is amended by striking 
‘‘applicable and’’ and inserting ‘‘applicable, and’’.
2068 
(227) Section 4971(f) is amended by striking 
‘‘applicable for’’ and inserting ‘‘applicable, for’’. 
(228) Section 4971(g)(4)(C)(ii) is amended by 
striking ‘‘section 432(i)(9)’’ and inserting ‘‘section 
432(j)(9)’’. 
(229) Section 4975(d)(3) is amended by striking 
‘‘an leveraged’’ and inserting ‘‘a leveraged’’. 
(230) Section 4975(d)(17) is amended by strik-
ing ‘‘Any’’ and inserting ‘‘any’’. 
(231) Section 4975(d)(21) is amended by strik-
ing ‘‘person person’’ and inserting ‘‘person’’. 
(232) Section 4975(f)(8)(C)(iv)(II) is amended 
by inserting ‘‘subsection’’ before ‘‘(d)(17)(A)(ii)’’. 
(233) Section 4975(f)(8)(F)(i)(I) is amended by 
striking ‘‘adviser,’’ and inserting ‘‘adviser’’. 
(234) Section 4975(f)(8)(F)(i)(V) is amended by 
inserting ‘‘of’’ before ‘‘the manner’’. 
(235) Section 4980B(f)(1) is amended by strik-
ing ‘‘section 2162 of the Public Health Service Act’’ 
and inserting ‘‘section 1928(h)(6) of the Social Secu-
rity Act (42 U.S.C. 1396s(h)(6))’’. 
(236) Section 4980B(f)(5)(C)(iii) is amended by 
striking ‘‘section 2701(c)(2)’’ and inserting ‘‘section 
2704(c)(2)’’.
2069 
(237) Section 4980I(b)(3)(C)(iv) is amended by 
striking the comma at the end and inserting a period. 
(238) Section 4980I(b)(3)(C)(v) is amended by 
striking ‘‘for for’’ and inserting ‘‘for’’. 
(239) Section 5054(a)(3)(B) is amended by strik-
ing ‘‘sections’’ and inserting ‘‘section’’. 
(240) Section 5066(d) is amended by striking 
‘‘section 
5001(a)(5)’’ 
and 
inserting 
‘‘section 
5001(a)(4)’’. 
(241) The item relating to subpart C in the table 
of subparts for part II of subchapter A of chapter 51 
is amended to read as follows: 
‘‘SUBPART C. RECORDKEEPING AND REGISTRATION BY DEALERS’’. 
(242) The item relating to section 5178 in the 
table of sections for subchapter B of chapter 51 is 
amended to read as follows: 
‘‘Sec. 5178. Premises of distilled spirits plants.’’. 
(243) Section 5182 is amended by striking ‘‘sec-
tion 5112’’ and inserting ‘‘section 5121’’. 
(244) Section 5273(e)(2) is amended by striking 
‘‘section 
5001(a)(6)’’ 
and 
inserting 
‘‘section 
5001(a)(5)’’. 
(245) Section 5314(a)(2) is amended by striking 
‘‘section 
5001(a)(10)’’ 
and 
inserting 
‘‘section 
5001(a)(9)’’.
2070 
(246) Section 5392(f) is amended by striking 
‘‘section 17(a)(5)’’ and inserting ‘‘section 117(a)(5)’’. 
(247) Section 5512 is amended by striking ‘‘sec-
tion 5001(a)(7)’’ and inserting ‘‘section 5001(a)(6)’’. 
(248) Section 5601(a)(15) is amended by strik-
ing ‘‘Withdraws,’’ and inserting ‘‘withdraws,’’. 
(249) The heading of section 5603 is amended by 
inserting a comma after ‘‘RETURNS’’. 
(250) Section 5701(e) is amended by striking 
‘‘manufacturered’’ and inserting ‘‘manufactured’’. 
(251) The item relating to section 5847 in the 
table of sections for part I of subchapter B of chapter 
53 is amended to read as follows: 
‘‘Sec. 5847. Effect on other laws.’’. 
(252) Section 5847 is amended by striking ‘‘sec-
tion 414 of the Mutual Security Act of 1954’’ and in-
serting ‘‘section 38 of the Arms Export Control Act 
(22 U.S.C. 2778)’’. 
(253) The item relating to section 5852 in the 
table of sections for part II of subchapter B of chapter 
53 is amended to read as follows: 
‘‘Sec. 5852. General transfer and making tax exemption.’’. 
(254) The item relating to section 5853 in the 
table of sections for part II of subchapter B of chapter 
53 is amended to read as follows:
2073 
(269) Section 6103(l)(10) is amended by striking 
so much of subparagraph (B) as precedes ‘‘Any’’ and 
inserting the following: 
‘‘(B) RESTRICTION ON USE OF DISCLOSED 
INFORMATION.—(i)’’. 
(270) Section 6103(l)(16)(A) is amended by 
striking ‘‘subsection 6103(b)(6)’’ and inserting ‘‘sec-
tion 6103(b)(6)’’. 
(271) Section 6103(p)(3)(A) is amended by strik-
ing ‘‘subsections’’ and inserting ‘‘subsection’’. 
(272) Section 6103(p)(3)(C)(ii) is amended by 
striking the comma at the end and inserting a period. 
(273) Section 6103(p)(4) is amended by striking 
‘‘7(A)(ii)’’ in the matter preceding subparagraph (A) 
and inserting ‘‘(7)(A)(ii)’’. 
(274) Section 6103(p)(4)(F)(ii) is amended— 
(A) by striking ‘‘subsections’’ and inserting 
‘‘subsection’’, and 
(B) by striking ‘‘subsection (l)(21),,,’’ and 
inserting ‘‘subsection (l)(21),’’. 
(275) Section 6103(p)(4) is amended by striking 
‘‘subsection (l)(21),,’’ both places it appears in the 
flush matter at the end and inserting ‘‘subsection 
(l)(21),’’.
2074 
(276) Section 6109(f) is amended by striking 
‘‘OF 1977’’ in the heading thereof. 
(277) Section 6213(g)(2)(O) is amended by add-
ing a comma at the end. 
(278) Section 6213(g)(2)(P) is amended— 
(A) by striking ‘‘section 24(h)(2)’’ and in-
serting ‘‘section 24(g)(2)’’, and 
(B) by striking ‘‘subsection (h)(1)’’ and in-
serting ‘‘subsection (g)(1)’’. 
(279) Section 6302(e)(2)(A) is amended by strik-
ing ‘‘sections’’ and inserting ‘‘section’’. 
(280) Section 6311(d)(3)(D) is amended— 
(A) by striking ‘‘section 103(f)’’ and insert-
ing ‘‘section 103(g)’’, and 
(B) by striking ‘‘1602(f)’’ and inserting 
‘‘1602(g)’’. 
(281) Section 6330(c) is amended by striking 
‘‘subsection (d)(2)(B)’’ in the last sentence and insert-
ing ‘‘subsection (d)(3)(B)’’. 
(282) Section 6330(d)(2) is amended by striking 
‘‘, and’’ at the end and inserting a period. 
(283) Section 6334(a)(10)(A) is amended by 
striking ‘‘V,,’’ and inserting ‘‘V,’’. 
(284) Section 6342(a) is amended by striking 
‘‘subsection (c)(2)’’ and inserting ‘‘subsection (d)(2)’’.
2075 
(285) Section 6402(a) is amended by striking 
‘‘(f) refund’’ and inserting ‘‘(f), refund’’. 
(286) Section 6402(c) is amended by striking ‘‘of 
of’’ and inserting ‘‘of’’. 
(287) Section 6402(d)(2) is amended by striking 
‘‘section 402(a)(26) of the Social Security Act’’ and 
inserting ‘‘section 408(a)(3) of the Social Security Act 
(42 U.S.C. 608(a)(3))’’. 
(288) Section 6404(g)(2)(E) is amended by strik-
ing ‘‘section 6664(d)(2)(A)’’ and inserting ‘‘section 
6664(d)(3)(A)’’. 
(289) Section 6420(i)(4) is amended by striking 
‘‘State and’’ and inserting ‘‘State (and’’. 
(290) Section 6421(c) is amended by striking 
‘‘(4) (5)’’ and inserting ‘‘(4), (5)’’. 
(291) Section 6421(j)(3) is amended by striking 
‘‘State and’’ and inserting ‘‘State (and’’. 
(292) Section 6422 is amended— 
(A) by striking paragraph (7), 
(B) 
by 
redesignating 
paragraphs 
(8) 
through (12) as paragraphs (7) through (11), re-
spectively, and 
(C) by striking ‘‘for credit’’ in paragraph 
(10) as so redesignated and inserting ‘‘For cred-
it’’.
2076 
(293) Section 6425(c)(1)(A) is amended by strik-
ing ‘‘The sum’’ and inserting ‘‘the sum’’. 
(294) Section 6426(b)(2)(A)(ii) is amended by 
striking ‘‘cents..’’ and inserting ‘‘cents.’’. 
(295) Section 6501(m) is amended by striking 
‘‘any election’’ and all that follows through ‘‘(or any’’ 
and inserting the following: ‘‘any election under sec-
tion 30B(h)(9), 30C(e)(4), 30D(e)(4), 35(g)(11), 40(f), 
43, 45B, 45C(d)(4), 45H(g), or 51(j) (or any’’. 
(296) Section 6503(a)(1) is amended by striking 
‘‘section 6230(a)).’’ and inserting ‘‘section 6230(a))’’. 
(297) Section 6612(c) is amended— 
(A) by inserting ‘‘sections’’ before ‘‘2014(e)’’, 
and 
(B) by striking ‘‘and 6420’’ and inserting 
‘‘6420’’. 
(298) The item relating to section 6651 in the 
table of sections for part I of subchapter A of chapter 
68 is amended to read as follows: 
‘‘Sec. 6651. Failure to file tax return or to pay tax.’’. 
(299) Each of the following sections are amended 
by inserting ‘‘an amount equal to’’ after ‘‘increased 
by’’ and by inserting ‘‘for the calendar year’’ after 
‘‘section 1(f)(3)’’: 
(A) Section 6651(i). 
(B) Section 6652(c)(7)(A).
2077 
(C) Section 6695(h)(1). 
(D) Section 6698(e)(1). 
(E) Section 6699(e)(1). 
(F) Section 6721(f)(1). 
(G) Section 6722(f)(1). 
(300) Section 6652(e) is amended by striking 
‘‘section 6724(d)(2)(Y)’’ in the last sentence and in-
serting ‘‘section 6724(d)(2)(AA)’’. 
(301) Section 6654(a) is amended by striking 
‘‘chapter 1 the tax’’ and inserting ‘‘chapter 1, the 
tax’’. 
(302) Section 6654(f)(3) is amended by striking 
‘‘taxes’’ and inserting ‘‘tax’’. 
(303) Section 6662(d)(3) is amended by striking 
‘‘section 
6664(d)(2)’’ 
and 
inserting 
‘‘section 
6664(d)(3)’’. 
(304) Section 6662 is amended by moving sub-
section (i) before subsection (j). 
(305) The heading of section 6676(c) is amended 
by striking ‘‘REASONABLE
BASIS’’ and inserting 
‘‘REASONABLE CAUSE’’. 
(306) The item relating to section 6684 in the 
table of sections for part I of subchapter B of chapter 
68 is amended to read as follows: 
‘‘Sec. 6684. Assessable penalties with respect to liability for tax under chapter 
42.’’.
2078 
(307) The item relating to section 6686 in the 
table of sections for part I of subchapter B of chapter 
68 is amended to read as follows: 
‘‘Sec. 6686. Failure to file returns or supply information by DISC or former 
FSC.’’. 
(308) Section 6679(a)(1) is amended by striking 
‘‘section 6046 and 6046A’’ and inserting ‘‘section 
6046 or 6046A’’. 
(309) Section 6695(h)(2) is amended by striking 
‘‘subparagraph (A)’’ and inserting ‘‘paragraph (1)’’. 
(310) Section 6695(h)(2)(B) is amended by strik-
ing ‘‘clause (i)’’ and inserting ‘‘subparagraph (A)’’. 
(311) Section 6696(a) is amended by striking 
‘‘section 6694,’’ and inserting ‘‘sections 6694,’’. 
(312) Section 6696(d)(1) is amended by striking 
‘‘section 6695,’’ and inserting ‘‘6695,’’. 
(313) Section 6698(b)(2) is amended by adding 
a period at the end. 
(314) Section 6700(a) is amended by striking 
‘‘the $1,000’’ and inserting ‘‘$1,000’’. 
(315) Section 6724(d)(1)(B)(xx) is amended by 
striking ‘‘or’’ at the end. 
(316) Section 6724(d)(1)(B)(xxi) is amended by 
striking ‘‘and’’ at the end.
2079 
(317) Section 6724(d)(1) is amended by striking 
‘‘Such term also includes’’ and inserting the fol-
lowing: 
‘‘Such term also includes’’. 
(318) Section 6724(d)(2)(F) is amended by strik-
ing the period at the end and inserting a comma. 
(319) Section 6724(d)(2)(M) is amended by 
striking ‘‘(h)(2) relating’’ and inserting ‘‘(h)(2) (re-
lating’’. 
(320) Section 6724(d)(2)(DD) is amended by 
adding a comma at the end. 
(321) Section 6863(a) is amended by striking 
‘‘6852,,’’ and inserting ‘‘6852,’’. 
(322) Section 6901(a)(1)(B) is amended by strik-
ing ‘‘Code in’’ and inserting ‘‘Code, in’’. 
(323) Section 7275(b)(2) is amended by striking 
‘‘taxes, shall’’ and inserting ‘‘taxes,’’. 
(324) Section 7421(b)(2) is amended by striking 
‘‘Code in’’ and inserting ‘‘Code, in’’. 
(325)(A) Subsections (e) and (i) of section 7422 
and sections 3121(b)(5)(E), 6110(j)(1)(B), 7428(a), 
and 7430(c)(6) are each amended by striking ‘‘United 
States Claims Court’’ and inserting ‘‘United States 
Court of Federal Claims’’.
2080 
(B) Subsections (a), (b), and (c)(1)(C)(iii) of sec-
tion 7428 are each amended by striking ‘‘Claims 
Court’’ and inserting ‘‘Court of Federal Claims’’. 
(C) The heading of section 4961(c)(1) is amended 
by striking ‘‘UNITED STATES CLAIMS COURT’’ and in-
serting 
‘‘UNITED
STATES
COURT
OF
FEDERAL 
CLAIMS’’. 
(D) Section 6672(c)(2) is amended by striking 
‘‘Court of Claims’’ and inserting ‘‘Court of Federal 
Claims’’. 
(326) The item relating to section 7448 in the 
table of sections for part I of subchapter C of chapter 
76 is amended to read as follows: 
‘‘Sec. 7448. Annuities to surviving spouses and dependent children of judges and 
special trial judges.’’. 
(327) Section 7448(j)(1)(A) is amended by strik-
ing ‘‘Code,),’’ and inserting ‘‘Code),’’. 
(328) Section 7448(m) is amended by striking 
‘‘Code,’’ and inserting ‘‘Code),’’. 
(329) Section 7454(b) is amended by striking 
‘‘4955),,’’ and inserting ‘‘4955),’’. 
(330) Section 7654(d)(1) is amended by striking 
‘‘50 App. U.S.C. 501 et seq.’’ and inserting ‘‘50 
U.S.C. 3901 et seq.’’. 
(331) Section 7701(a)(36)(B) is amended by 
striking ‘‘an ‘tax’’ and inserting ‘‘a ‘tax’’.
2081 
(332) Section 7701(e)(5)(B) is amended by strik-
ing ‘‘Reconcilation’’ and inserting ‘‘Reconciliation’’. 
(333) Section 7801(a)(2)(B) is amended— 
(A) by striking ‘‘this Act’’ and inserting 
‘‘the Homeland Security Act of 2002’’, and 
(B) by striking ‘‘effective date of the Home-
land Security Act of 2002’’ and inserting ‘‘effec-
tive date of such Act’’. 
(334) Section 7809(c)(1) is amended by striking 
‘‘Work’’ and inserting ‘‘work’’. 
(335) Section 7851(a)(1)(A) is amended by strik-
ing ‘‘, 4’’. 
(336) Section 7851(a)(1)(B) is amended by strik-
ing ‘‘Chapters 3 and 5’’ and inserting ‘‘Chapter 3’’. 
(337) Section 7871(c)(3)(D)(ii)(II) is amended 
by striking ‘‘calender’’ and inserting ‘‘calendar’’. 
(338) Section 9003(b)(2) is amended by striking 
‘‘section 9006(d)’’ and inserting ‘‘section 9006(c)’’. 
(339) Section 9011(b)(1) is amended by striking 
‘‘contrue’’ and inserting ‘‘construe’’. 
(340) Section 9502(d)(2) is amended by striking 
‘‘farms,’’ and inserting ‘‘farms),’’. 
(341) Section 9503(c)(5) is amended by striking 
‘‘and before October 1, 2011,’’.
2082 
(342) Section 9508(c)(1) is amended by striking 
‘‘the Public’’ and inserting ‘‘Public’’. 
(343) Section 9701(a)(4) is amended by striking 
‘‘section 9713A’’ and inserting ‘‘section 9712’’. 
(344) Section 9704(d)(2)(B) is amended by strik-
ing ‘‘1232)),’’ and inserting ‘‘1232),’’. 
(345) Section 9705(b)(1) is amended by striking 
‘‘1232(h)’’ and inserting ‘‘1232’’. 
(346) Section 9705(b)(2) is amended by striking 
‘‘Acts’’ and inserting ‘‘Act’’. 
(347) Section 9711(c)(4)(B) is amended by strik-
ing ‘‘paragraph (4)(C)’’ and inserting ‘‘paragraph 
(3)(C)’’. 
(348) Section 9712(a)(4)(A) is amended by in-
serting ‘‘section 402 of’’ after ‘‘subsections (h) and (i) 
of’’. 
(349) Section 9812(a)(3)(B)(i) is amended by 
striking the comma at the end and inserting a period. 
(350) Section 302 of division P of the Consoli-
dated Appropriations Act, 2016 is amended— 
(A) in subsection (a), by inserting ‘‘of the 
Internal Revenue Code of 1986’’ after ‘‘section 
48(a)(5)(C)’’, and 
(B) in subsection (b), by inserting ‘‘of such 
Code’’ after ‘‘section 48(a)’’.
2084 
‘‘(5) RULES RELATED TO ELIGIBLE SMALL BUSI-
NESSES.—’’, 
(ii) by redesignating subparagraphs (C) 
and (D) as subparagraphs (A) and (B), respec-
tively, and 
(iii) by amending subparagraph (B) (as so 
redesignated) to read as follows: 
‘‘(B) TREATMENT OF PARTNERS AND S COR-
PORATION
SHAREHOLDERS.—For purposes of 
paragraph (4)(B)(ii), any credit determined 
under section 41 with respect to a partnership or 
S corporation shall not be treated as a specified 
credit by any partner or shareholder unless such 
partner or shareholder meets the gross receipts 
test under subparagraph (A) for the taxable year 
in which such credit is treated as a current year 
business credit.’’. 
(B) Section 38(c)(2)(A)(ii)(II) is amended by 
striking ‘‘the eligible small business credits,’’. 
(C) Section 38(c)(4)(A)(ii)(II) is amended by 
striking ‘‘the eligible small business credits and’’. 
(D) Section 38(c)(4)(B)(ii) is amended by strik-
ing ‘‘(as defined in paragraph (5)(C), after applica-
tion of rules similar to the rules of paragraph 
(5)(D))’’ and inserting ‘‘(as defined in paragraph
2085 
(5)(A) after application of the rules of paragraph 
(5)(B))’’. 
(E) Section 39(a) is amended by striking para-
graph (4). 
(F) Section 39(a)(3)(A) is amended by striking 
‘‘or the eligible small business credits’’. 
(6) Section 41(c)(4)(A), as amended by the pre-
ceding provisions of this Act, is amended by striking 
‘‘(12 percent in the case of taxable years ending before 
January 1, 2009)’’. 
(7) Section 56(b)(1)(E) is amended by striking 
the last sentence. 
(8) Section 56(d)(1)(A)(ii)(I) is amended by in-
serting ‘‘(as in effect before its repeal by the Tax In-
crease Prevention Act of 2014)’’ after ‘‘section 
172(b)(1)(H)’’. 
(9) Section 126(a) is amended by striking para-
graph (7) and by redesignating paragraphs (8) and 
(9) as paragraphs (7) and (8), respectively. 
(10)(A) Section 139(c)(2) is amended by striking 
‘‘section 165(h)(3)(C)(i)’’ and inserting ‘‘section 
165(i)(5)(A)’’. 
(B) Section 7508A(a) is amended by striking 
‘‘section 165(h)(3)(C)(i)’’ and inserting ‘‘section 
165(i)(5)(A)’’.
2086 
(11) Section 140(a) is amended by striking 
paragraph (2) and by redesignating paragraphs (3) 
through (6) as paragraphs (2) through (5), respec-
tively. 
(12) Section 163(d)(4) is amended by striking 
subparagraph (E). 
(13)(A) Section 168 is amended by striking sub-
section (n). 
(B) The amendment made by this paragraph 
shall not apply to property placed in service before 
the date of the enactment of this Act. 
(14) Section 170(e)(3) is amended by striking 
subparagraph (D) and redesignating subparagraph 
(E) as subparagraph (D). 
(15)(A) Section 179 is amended by striking sub-
section (e) and redesignating subsection (f) as sub-
section (e). 
(B) Section 179(d)(1)(B)(ii) is amended by 
striking ‘‘subsection (f)’’ and inserting ‘‘subsection 
(e)’’. 
(C) The amendments made by this paragraph 
shall not apply to property placed in service before 
the date of the enactment of this Act. 
(16) Section 196(d) is amended—
2087 
(A) by striking ‘‘in the case of—’’ and all 
that follows and inserting ‘‘in the case of the in-
vestment credit determined under section 46 
(other than the rehabilitation credit).’’, and 
(B) by striking ‘‘AND RESEARCH CREDIT’’ 
in the heading thereof. 
(17) Section 246A(b)(1) is amended by striking 
‘‘without regard to section 243(d)(4)’’. 
(18) Section 381(c)(16) is amended by striking 
the second sentence. 
(19) Section 411(a)(3)(F)(i) is amended by strik-
ing ‘‘under section 418D or’’. 
(20) Section 415(g) is amended by striking ‘‘sub-
section (f)(3)’’ and inserting ‘‘subsection (f)(2)’’. 
(21)(A) Section 419(e)(3)(A) is amended by 
striking ‘‘(17), or (20)’’ and inserting ‘‘or (17)’’. 
(B) Section 419A(g)(1) is amended by striking 
‘‘(17), or (20)’’ and inserting ‘‘or (17)’’. 
(C) Section 419A(g)(2) is amended by striking 
‘‘(17), or (20)’’ and inserting ‘‘or (17)’’. 
(D) Section 505 is amended— 
(i) in the heading thereof, by striking 
‘‘PARAGRAPH (9), (17), OR (20)’’ and inserting 
‘‘PARAGRAPH (9) OR (17)’’,
2088 
(ii) in the heading of subsection (a), by 
striking ‘‘PARAGRAPH (9) OR (20) OF SECTION 
501(c)’’ and inserting ‘‘SECTION 501(c)(9)’’, 
(iii) in subsection (a)(1), by striking ‘‘para-
graph (9) or (20) of subsection (c) of section 
501’’ and inserting ‘‘section 501(c)(9)’’, and 
(iv) in subsection (c)(1), by striking ‘‘para-
graph (9), (17), or (20)’’ and inserting ‘‘para-
graph (9) or (17)’’. 
(E) Subparagraphs (A), (C), and (D) of section 
512(a)(3) are each amended in the text thereof by 
striking ‘‘(17), or (20)’’ and inserting ‘‘or (17)’’. 
(F) Subparagraphs (B)(ii) and (E) of section 
512(a)(3) are each amended in the text thereof by 
striking ‘‘, (17), or (20)’’ and inserting ‘‘or (17)’’. 
(G) The heading of section 512(a)(3) is amended 
by striking ‘‘(17), OR (20)’’ and inserting ‘‘OR (17)’’. 
(H) The heading of section 512(a)(3)(E) is 
amended by striking ‘‘, (17), OR (20)’’ and inserting 
‘‘OR (17)’’. 
(I) The item relating to section 505 in the table 
of sections for part I of subchapter F of chapter 1 is 
amended to read as follows: 
‘‘Sec. 505. Additional requirements for organizations described in paragraph (9) 
or (17) of section 501(c).’’.
2089 
(22) Section 501(p)(4) is amended by striking ‘‘, 
556(b)(2)’’. 
(23) Section 530(b)(3) is amended— 
(A) by striking ‘‘(as defined in section 
170(e)(6)(F)(i))’’ in subparagraph (A)(iii), and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(C) COMPUTER
TECHNOLOGY
OR
EQUIP-
MENT.—The term ‘computer technology or equip-
ment’ means computer software (as defined by 
section 197(e)(3)(B)), computer or peripheral 
equipment (as defined by section 168(i)(2)(B)), 
and fiber optic cable related to computer use.’’. 
(24) Section 593(b)(2)(D)(iv) is amended by 
striking ‘‘(determined without regard to section 596)’’. 
(25) Section 597(c)(1) is amended by striking 
‘‘or section 21A of the Federal Home Loan Bank 
Act’’. 
(26) Section 613A(c)(6) is amended by striking 
subparagraph (H). 
(27) Section 664(g)(3)(E) is amended by striking 
‘‘limitations under sections 415(c) and (e)’’ and in-
serting ‘‘limitation under section 415(c)’’. 
(28) Section 856(m) is amended by striking 
paragraph (6).
2090 
(29) Section 871(a)(3) is amended by striking 
the last sentence thereof. 
(30) Section 992(d) is amended by striking 
paragraph (6), by inserting ‘‘or’’ at the end of para-
graph (5), and by redesignating paragraph (7) as 
paragraph (6). 
(31) Section 1245(a)(3)(C) is amended by strik-
ing ‘‘, 185’’. 
(32)(A) Section 1252(a)(1) is amended by strik-
ing ‘‘during a taxable year beginning’’. 
(B) Section 1252(a)(1)(A) is amended— 
(i) by striking ‘‘sections’’ and inserting 
‘‘section’’, and 
(ii) by striking ‘‘and 182’’ and all that fol-
lows through ‘‘for expenditures’’ and inserting 
‘‘for expenditures’’. 
(C) Section 1252(a)(2) is amended— 
(i) by striking ‘‘sections’’ and inserting 
‘‘section’’, and 
(ii) by striking ‘‘or 182’’ and all that fol-
lows and inserting a period. 
(33) Section 1374(d)(2)(B) is amended by strik-
ing the last sentence. 
(34) Section 3111 is amended by striking sub-
section (d).
2091 
(35) Section 3127(b)(3) is amended by striking 
‘‘or 222(b)’’. 
(36) Section 3221 is amended by striking sub-
section (c) and by redesignating subsection (d) as sub-
section (c). 
(37) Section 3301 is amended by striking ‘‘equal 
to—’’ and all that follows and inserting ‘‘equal to 6 
percent of the total wages (as defined in section 
3306(b)) paid by such employer during the calendar 
year with respect to employment (as defined in sec-
tion 3306(c)).’’. 
(38) Section 3302(c)(2) is amended by striking 
the next to last sentence. 
(39) Section 3302(f)(2) is amended— 
(A) by striking ‘‘(or, for purposes of apply-
ing this subparagraph to taxable year 1983, Sep-
tember 30, 1981)’’ in subparagraph (D), and 
(B) by striking the last sentence. 
(40) Section 4042(b)(1) is amended by adding 
‘‘and’’ at the end of subparagraph (A), by striking ‘‘, 
and’’ at the end of subparagraph (B) and inserting 
a period, and by striking subparagraph (C). 
(41) Section 4042(b)(2) is amended by striking 
subparagraph (C).
2092 
(42) Section 4261(b)(1) is amended by striking 
‘‘a tax in the amount’’ and all that follows and in-
serting ‘‘a tax in the amount of $3.00.’’. 
(43) Section 4481(d) is amended to read as fol-
lows: 
‘‘(d) ONE TAX LIABILITY PER PERIOD.—To the extent 
that the tax imposed by this section is paid with respect 
to any highway motor vehicle for any taxable period, no 
further tax shall be imposed by this section for such taxable 
period with respect to such vehicle.’’. 
(44) Section 4971(d) is amended by striking the 
last sentence. 
(45) Section 6050G(a)(2) is amended by striking 
‘‘(to the extent not previously taken into account 
under section 72(d)(1))’’. 
(46) Section 6215(b) is amended by striking 
paragraph (5) and by redesignating paragraphs (6) 
and (7) as paragraphs (5) and (6), respectively. 
(47) Section 6601(b) is amended by striking 
paragraph (2) and by redesignating paragraphs (3) 
through (5) as paragraphs (2) through (4), respec-
tively. 
(48) Section 6654(d)(1)(C)(i) is amended by 
striking ‘‘by substituting’’ and all that follows and
2093 
inserting ‘‘by substituting ‘110 percent’ for ‘100 per-
cent’.’’. 
(49) Section 6654(d)(1) is amended by striking 
subparagraph (D). 
(50) Part II of subchapter C of chapter 75 is 
amended by striking section 7326 (and by striking the 
item relating to such section in the table of sections 
for such part). 
(51) Section 7448(a)(5) is amended by striking 
‘‘, whether or not performing judicial duties under 
section 7443B’’. 
(52) Section 7448(a)(6) is amended by striking 
‘‘, and compensation received under section 7443B’’. 
(53) Section 7448(d) is amended by striking ‘‘at 
4 percent per annum to December 31, 1947, and 3 
percent per annum thereafter’’ and inserting ‘‘at 3 
percent per annum’’. 
(54) Section 7701(a)(19)(A) is amended by strik-
ing ‘‘either (i)’’ and all that follows through ‘‘(ii)’’. 
(55) Section 7701(a)(32)(A) is amended to read 
as follows: 
‘‘(A) is subject by law to supervision and 
examination by State or Federal authority hav-
ing supervision over such institutions, and’’.
2094 
(56) Section 8021 is amended by striking sub-
section (f). 
(57) Section 8022(3) is amended by striking sub-
paragraph (C). 
(c) REPEAL OF CERTAIN OBSOLETE BOND PROVI-
SIONS.— 
(1) CERTAIN RULES WITH RESPECT TO BONDS 
ISSUED BEFORE JULY 2, 1982.— 
(A) Section 1271 is amended— 
(i) by striking subsection (c) and by 
redesignating subsection (d) as subsection 
(c), and 
(ii) by striking ‘‘(and paragraph (2) of 
subsection (c))’’ in subsection (a)(2)(B). 
(B) Section 1272 is amended by striking 
subsection (b) and by redesignating subsections 
(c) and (d) as subsections (b) and (c), respec-
tively. 
(C) Section 163(e)(1) is amended by strik-
ing ‘‘In the case of any debt instrument issued 
after July 1, 1982, the portion of the original 
issue discount with respect to such debt instru-
ment which is’’ and inserting ‘‘The portion of 
the original issue discount with respect to any 
debt instrument which is’’.
2095 
(D) Section 1271(a)(2)(A)(ii) is amended 
by striking ‘‘subsection (a)(7) or (b)(4) of section 
1272’’ and inserting ‘‘section 1272(a)(7)’’. 
(E) Section 1271(b)(1) is amended to read 
as follows: 
‘‘(1) IN GENERAL.—This section shall not apply 
to any obligation issued by a natural person before 
June 9, 1997.’’. 
(F) Section 1272(a) is amended— 
(i) by striking ‘‘ON DEBT INSTRU-
MENTS ISSUED AFTER JULY 1, 1982,’’ in 
the heading, and 
(ii) by striking ‘‘issued after July 1, 
1982’’ in paragraph (1). 
(G) Section 1278(a)(4)(B) is amended by 
striking ‘‘or (b)(4)’’. 
(H) The amendments made by this para-
graph shall apply to debt instruments issued on 
or after July 2, 1982. 
(2) CERTAIN RULES WITH RESPECT TO STRIPPED 
BONDS PURCHASED BEFORE JULY 2, 1982.— 
(A) Section 1286, as amended by this sec-
tion, is amended by striking subsection (c) and 
by redesignating subsections (d), (e), (f), and (g) 
as subsections (c), (d), (e), and (f), respectively.
2096 
(B) Subsections (a) and (b) of section 1286 
are each amended by striking ‘‘after July 1, 
1982,’’. 
(C) Section 1286(d)(5), as redesignated by 
subparagraph (A), is amended by striking the 
last sentence. 
(D) Section 305(e)(7) is amended by strik-
ing ‘‘1286(f)’’ and inserting ‘‘1286(e)’’. 
(E) The amendments made by this para-
graph shall apply to bonds purchased on or after 
July 2, 1982. 
(3) CERTAIN RULES WITH RESPECT TO OBLIGA-
TIONS ISSUED BEFORE MARCH 2, 1984.— 
(A) Section 1272(a)(2) is amended by strik-
ing subparagraph (D) and by redesignating sub-
paragraph (E) as subparagraph (D). 
(B) Section 163(e)(4) is amended to read as 
follows: 
‘‘(4) EXCEPTION.—This subsection shall not 
apply to any debt instrument described in section 
1272(a)(2)(D) (relating to loans between natural per-
sons).’’. 
(C) The amendments made by this para-
graph shall apply to obligations issued on or 
after March 2, 1984.
2097 
(d) DEADWOOD PROVISIONS INVOLVING REPEAL OF 
ONE OR MORE SECTIONS.— 
(1) PUERTO RICO ECONOMIC ACTIVITY CREDIT; 
PUERTO RICO AND POSSESSION TAX CREDIT.— 
(A) POSSESSION TAX CREDIT.—Section 27 
is amended to read as follows: 
‘‘SEC. 27. TAXES OF FOREIGN COUNTRIES AND POSSES-
SIONS OF THE UNITED STATES. 
‘‘The amount of taxes imposed by foreign countries 
and possessions of the United States shall be allowed as a 
credit against the tax imposed by this chapter to the extent 
provided in section 901’’. 
(B) PUERTO
RICO
ECONOMIC
ACTIVITY 
CREDIT.—Subpart C of part IV of subchapter A 
of chapter 1 is amended by striking section 30A 
(and by striking the item relating to such section 
in the table of sections for such subpart). 
(C) PUERTO
RICO
AND
POSSESSION
TAX 
CREDIT.—Subpart C of part III of subchapter N 
of chapter 1 is amended by striking section 936 
(and by striking the item relating to such section 
in the table of sections for such subpart). 
(D) CONFORMING AMENDMENTS.— 
(i) The item relating to section 27 in 
the table of sections for subpart B of part
2098 
IV of subchapter A of chapter 1 is amended 
to read as follows: 
‘‘Sec. 27. Taxes of foreign countries and possessions of the United States.’’. 
(ii) 
Sections 
26(a)(1), 
59(a)(1), 
469(c)(3)(B), and 469(d)(2)(A)(ii) are each 
amended by striking ‘‘27(a)’’ and inserting 
‘‘27’’. 
(iii) Section 45C(d)(2) is amended— 
(I) by striking subparagraph (B), 
(II) by redesignating clauses (i) 
and (ii) of subparagraph (A) as sub-
paragraphs (A) and (B), respectively, 
and moving such subparagraphs (as so 
redesignated) 2 ems to the left, and 
(III) by striking ‘‘IN GENERAL.— 
’’ and all that precedes it and inserting 
the following: 
‘‘(2) SPECIAL LIMITATIONS ON FOREIGN TEST-
ING.—’’. 
(iv) Section 168(g)(4)(G) is amended 
by striking ‘‘(other than a corporation 
which has an election in effect under section 
936)’’. 
(v) Section 243(b)(1)(B) is amended to 
read as follows:
2099 
‘‘(B) if such dividend is distributed out of 
the earnings and profits of a taxable year of the 
distributing corporation which ends after Decem-
ber 31, 1963, and on each day of which the dis-
tributing corporation and the corporation receiv-
ing the dividend were members of such affiliated 
group.’’. 
(vi) Section 246 is amended by strik-
ing subsection (e). 
(vii) Section 338(h)(6)(B)(i) is amend-
ed by striking ‘‘, a DISC, or a corporation 
to which an election under section 936 ap-
plies’’ and inserting ‘‘or a DISC’’. 
(viii)(I) Section 367(d) is amended by 
adding at the end the following new para-
graph: 
‘‘(4) INTANGIBLE PROPERTY.—For purposes of 
this subsection, the term ‘intangible property’ means 
any— 
‘‘(A) patent, invention, formula, process, de-
sign, pattern, or know-how, 
‘‘(B) copyright, literary, musical, or artistic 
composition, 
‘‘(C) trademark, trade name, or brand 
name,
2100 
‘‘(D) franchise, license, or contract, 
‘‘(E) method, program, system, procedure, 
campaign, survey, study, forecast, estimate, cus-
tomer list, or technical data, 
‘‘(F) goodwill, going concern value, or work-
force in place (including its composition and 
terms and conditions (contractual or otherwise) 
of its employment), or 
‘‘(G) other item the value or potential value 
of which is not attributable to tangible property 
or the services of any individual.’’. 
(II) Section 367(d)(1) is amended by 
striking ‘‘(within the meaning of section 
936(h)(3)(B))’’. 
(III) Sections 482 and 1298(e)(2)(A) 
are each amended by striking ‘‘section 
936(h)(3)(B)’’ 
and 
inserting 
‘‘section 
367(d)(4)’’. 
(ix) Section 861(a)(2)(A) is amended 
by striking ‘‘other than a corporation which 
has an election in effect under section 936’’. 
(x) Section 864(d)(5) is amended to 
read as follows:
2101 
‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.—The 
following provisions shall not apply to any amount 
treated as interest under paragraph (1) or (6): 
‘‘(A) Section 904(d)(2)(B)(iii)(I) (relating 
to exceptions for export financing interest). 
‘‘(B) Subparagraph (A) of section 954(b)(3) 
(relating to exception where foreign base com-
pany income is less than 5 percent or 
$1,000,000). 
‘‘(C) Subparagraph (B) of section 954(c)(2) 
(relating to certain export financing). 
‘‘(D) Clause (i) of section 954(c)(3)(A) (re-
lating to certain income received from related 
persons).’’. 
(xi) Section 865(j)(3) is amended by 
striking ‘‘, 933, and 936’’ and inserting 
‘‘and 933’’. 
(xii) Section 901(g)(2) is amended by 
inserting ‘‘(as in effect on the day before the 
date of the enactment of the Tax Technical 
Corrections Act of 2018)’’ after ‘‘section 
936’’. 
(xiii) Section 904(b) is amended by 
striking paragraph (4) and by redesig-
nating paragraph (5) as paragraph (4).
2102 
(xiv) Section 904(f)(1) is amended by 
striking ‘‘and section 936’’. 
(xv) Section 1202(e)(4) is amended by 
striking subparagraph (B) and by redesig-
nating subparagraphs (C) and (D) as sub-
paragraphs (B) and (C), respectively. 
(xvi) Section 1361(b)(2) is amended by 
adding ‘‘or’’ at the end of subparagraph 
(B), by striking subparagraph (C), and by 
redesignating subparagraph (D) as sub-
paragraph (C). 
(xvii)(I) Section 1504(b) is amended 
by striking paragraph (4) and by redesig-
nating paragraphs (6), (7), and (8) as 
paragraphs (4), (5), and (6), respectively. 
(II) Section 243(b)(2) is amended by 
striking ‘‘, 1504(b)(4),’’. 
(III) Section 332(d)(2)(B) is amended 
by striking ‘‘paragraphs (2) and (4)’’ and 
inserting ‘‘paragraph (2)’’. 
(IV) Section 864(e)(5)(A) is amended 
by striking ‘‘(determined without regard to 
paragraph (4) of section 1504(b))’’. 
(V) Section 864(f) is amended in para-
graphs (1)(C)(i) and (2) by striking ‘‘para-
2103 
graphs (2) and (4)’’ and inserting ‘‘para-
graph (2)’’. 
(xviii) 
Section 
6091(b)(2)(B) 
is 
amended by striking clause (ii) and by re-
designating clauses (iii) and (iv) as clauses 
(ii) and (iii), respectively. 
(xix) Section 6654(d)(2)(D) is amend-
ed— 
(I) by striking ‘‘936(h) or’’ in 
clause (i), and 
(II) by striking ‘‘AND
SECTION 
936’’ in the heading. 
(xx) Section 6655(e)(4) is amended— 
(I) by striking ‘‘936(h) or’’ in 
subparagraph (A), and 
(II) by striking ‘‘AND
SECTION 
936’’ in the heading. 
(2) ENERGY EFFICIENT APPLIANCE CREDIT.— 
(A) IN GENERAL.—Subpart D of part IV of 
subchapter A of chapter 1 is amended by striking 
section 45M (and by striking the item relating to 
such section in the table of sections for such sub-
part). 
(B) 
CONFORMING
AMENDMENT.—Section 
38(b), as amended by the preceding provisions of
2104 
this Act, is amended by striking paragraph (24) 
and by redesignating paragraphs (25) through 
(37) as paragraphs (24) through (36), respec-
tively. 
(3) 
QUALIFYING
THERAPEUTIC
DISCOVERY 
PROJECT CREDIT.— 
(A) IN GENERAL.—Subpart E of part IV of 
subchapter A of chapter 1 is amended by striking 
section 48D (and by striking the item relating to 
such section in the table of sections for such sub-
part). 
(B) CONFORMING AMENDMENTS.— 
(i) Section 49(a)(1)(C) is amended by 
adding ‘‘and’’ at the end of clause (iv), by 
striking ‘‘, and’’ at the end of clause (v) and 
inserting a period, and by striking clause 
(vi). 
(ii) Section 50(a)(2)(E) is amended by 
striking ‘‘48C(b)(2), or 48D(b)(4)’’ and in-
serting ‘‘or 48C(b)(2)’’. 
(iii) Section 280C is amended by strik-
ing the subsection (g) which relates to the 
qualifying therapeutic discovery project 
credit.
2105 
(C) SAVINGS PROVISION.—In the case of the 
repeal of section 48D(e)(1) of the Internal Rev-
enue Code of 1986, the amendments made by this 
paragraph shall not apply to expenditures made 
in taxable years beginning before January 1, 
2011. 
(4) DC ZONE PROVISIONS.— 
(A) IN GENERAL.—Chapter 1 is amended by 
striking subchapter W (and by striking the item 
relating to such subchapter in the table of sub-
chapters for such chapter). 
(B) CONFORMING AMENDMENTS.— 
(i) Section 23(c)(1) is amended by 
striking ‘‘sections 25D and 1400C’’ and in-
serting ‘‘section 25D’’. 
(ii) Section 25(e)(1)(C) is amended by 
striking ‘‘sections 23, 25D, and 1400C’’ and 
inserting ‘‘sections 23 and 25D’’. 
(iii) Section 45D(h) is amended by 
striking ‘‘sections 1202, 1400B, and 1400F’’ 
and inserting ‘‘section 1202’’. 
(iv) Section 1016(a) is amended by 
striking paragraph (27).
2106 
(v) Section 1202(a)(2)(B) is amended 
by inserting ‘‘(as in effect before its repeal)’’ 
after ‘‘1400B(b)’’. 
(vi) Section 1223(13) is amended by 
striking ‘‘sections 1202(a)(2), 1202(c)(2)(A), 
1400B(b), and 1400F(b)’’ and inserting 
‘‘subsections (a)(2) and (c)(2)(A) of section 
1202’’. 
(vii) Section 1397B(b)(1) is amended 
by striking subparagraph (B). 
(C) SAVINGS
PROVISIONS.—The amend-
ments made by this paragraph shall not apply 
to— 
(i) in the case of the repeal of section 
1400A of the Internal Revenue Code of 
1986, obligations described in section 1394 
of such Code (as in effect before its repeal) 
which were issued before January 1, 2012, 
(ii) in the case of the repeal of section 
1400B of such Code, DC Zone assets (as de-
fined in such section, as in effect before its 
repeal) which were acquired by the taxpayer 
before January 1, 2012, and
2121 
‘‘(i) the required disclosure would cause the 
provider to violate the laws of a qualifying for-
eign government; 
‘‘(ii) based on the totality of the cir-
cumstances, the interests of justice dictate that 
the legal process should be modified or quashed; 
and 
‘‘(iii) the customer or subscriber is not a 
United States person and does not reside in the 
United States. 
‘‘(3) COMITY ANALYSIS.—For purposes of making 
a determination under paragraph (2)(B)(ii), the 
court shall take into account, as appropriate— 
‘‘(A) the interests of the United States, in-
cluding the investigative interests of the govern-
mental entity seeking to require the disclosure; 
‘‘(B) the interests of the qualifying foreign 
government in preventing any prohibited disclo-
sure; 
‘‘(C) the likelihood, extent, and nature of 
penalties to the provider or any employees of the 
provider as a result of inconsistent legal require-
ments imposed on the provider; 
‘‘(D) the location and nationality of the 
subscriber or customer whose communications
2122 
are being sought, if known, and the nature and 
extent of the subscriber or customer’s connection 
to the United States, or if the legal process has 
been sought on behalf of a foreign authority pur-
suant to section 3512, the nature and extent of 
the subscriber or customer’s connection to the for-
eign authority’s country; 
‘‘(E) the nature and extent of the provider’s 
ties to and presence in the United States; 
‘‘(F) the importance to the investigation of 
the information required to be disclosed; 
‘‘(G) the likelihood of timely and effective 
access to the information required to be disclosed 
through means that would cause less serious neg-
ative consequences; and 
‘‘(H) if the legal process has been sought on 
behalf of a foreign authority pursuant to section 
3512, the investigative interests of the foreign au-
thority making the request for assistance. 
‘‘(4) DISCLOSURE OBLIGATIONS DURING PEND-
ENCY OF CHALLENGE.—A service provider shall pre-
serve, but not be obligated to produce, information 
sought during the pendency of a motion brought 
under this subsection, unless the court finds that im-
2123 
mediate production is necessary to prevent an adverse 
result identified in section 2705(a)(2). 
‘‘(5) DISCLOSURE TO QUALIFYING FOREIGN GOV-
ERNMENT.—(A) It shall not constitute a violation of 
a protective order issued under section 2705 for a 
provider of electronic communication service to the 
public or remote computing service to disclose to the 
entity within a qualifying foreign government, des-
ignated in an executive agreement under section 2523, 
the fact of the existence of legal process issued under 
this section seeking the contents of a wire or electronic 
communication of a customer or subscriber who is a 
national or resident of the qualifying foreign govern-
ment. 
‘‘(B) Nothing in this paragraph shall be con-
strued to modify or otherwise affect any other author-
ity to make a motion to modify or quash a protective 
order issued under section 2705.’’. 
(c) RULE OF CONSTRUCTION.—Nothing in this section, 
or an amendment made by this section, shall be construed 
to modify or otherwise affect the common law standards 
governing the availability or application of comity analysis 
to other types of compulsory process or to instances of com-
pulsory process issued under section 2703 of title 18, United
2124 
States Code, as amended by this section, and not covered 
under subsection (h)(2) of such section 2703. 
SEC. 104. ADDITIONAL AMENDMENTS TO CURRENT COMMU-
NICATIONS LAWS. 
Title 18, United States Code, is amended— 
(1) in chapter 119— 
(A) in section 2511(2), by adding at the end 
the following: 
‘‘(j) It shall not be unlawful under this chapter for a 
provider of electronic communication service to the public 
or remote computing service to intercept or disclose the con-
tents of a wire or electronic communication in response to 
an order from a foreign government that is subject to an 
executive agreement that the Attorney General has deter-
mined and certified to Congress satisfies section 2523.’’; and 
(B) in section 2520(d), by amending para-
graph (3) to read as follows: 
‘‘(3) a good faith determination that section 
2511(3), 2511(2)(i), or 2511(2)(j) of this title per-
mitted the conduct complained of;’’; 
(2) in chapter 121— 
(A) in section 2702— 
(i) in subsection (b)—