(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
SEC. 104. REDUCTION IN INDIVIDUAL CAPITAL GAIN TAX
RATES.
(a) IN GENERAL.—
(1) Sections 1(h)(1)(B) and 55(b)(3)(B) are
each amended by striking ‘‘10 percent’’ and insert-
ing ‘‘7.5 percent’’.
(2) The following sections are each amended by
striking ‘‘20 percent’’ and inserting ‘‘15 percent’’:
(A) Section 1(h)(1)(C).
(B) Section 55(b)(3)(C).
(C) Section 1445(e)(1).
(D) The second sentence of section
7518(g)(6)(A).
(E) The second sentence of section
607(h)(6)(A) of the Merchant Marine Act,
1936.
(3) Sections 1(h)(1)(D) and 55(b)(3)(D) are
each amended by striking ‘‘25 percent’’ and insert-
ing ‘‘20 percent’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 311 of the Taxpayer Relief Act of
1997 is amended by striking subsection (e).
(2) Section 1(h) is amended—
(A) by striking paragraphs (2), (9), and
(13),
(B) 
by 
redesignating 
paragraphs 
(3)
through (8) as paragraphs (2) through (7), re-
spectively, and
(C) by redesignating paragraphs (10),
(11), and (12) as paragraphs (8), (9), and (10),
respectively.
(3) Paragraph (3) of section 55(b) is amended
by striking ‘‘In the case of taxable years beginning
after December 31, 2000, rules similar to the rules
of section 1(h)(2) shall apply for purposes of sub-
paragraphs (B) and (C).’’.
(4) 
Paragraph 
(7) 
of 
section 
57(a) 
is
amended—
(A) by striking ‘‘42 percent’’ and inserting
‘‘6 percent’’, and
(B) by striking the last sentence.
(c) TRANSITIONAL RULES
FOR TAXABLE YEARS
WHICH INCLUDE JULY 1, 1999.—For purposes of apply-
ing section 1(h) of the Internal Revenue Code of 1986 in
the case of a taxable year which includes July 1, 1999—
(1) The amount of tax determined under sub-
paragraph (B) of section 1(h)(1) of such Code shall
be the sum of—
(A) 7.5 percent of the lesser of—
(i) the net capital gain taking into ac-
count only gain or loss properly taken into
account for the portion of the taxable year
on or after such date (determined without
regard to collectibles gain or loss, gain de-
scribed in section (1)(h)(6)(A)(i) of such
Code, and section 1202 gain), or
(ii) the amount on which a tax is de-
termined under such subparagraph (with-
out regard to this subsection), plus
(B) 10 percent of the excess (if any) of—
(i) the amount on which a tax is de-
termined under such subparagraph (with-
out regard to this subsection), over
(ii) the amount on which a tax is de-
termined under subparagraph (A).
(2) The amount of tax determined under sub-
paragraph (C) of section (1)(h)(1) of such Code
shall be the sum of—
(A) 15 percent of the lesser of—
(i) the excess (if any) of the amount
of net capital gain determined under sub-
paragraph (A)(i) of paragraph (1) of this
subsection over the amount on which a tax
is determined under subparagraph (A) of
paragraph (1) of this subsection, or
(ii) the amount on which a tax is de-
termined under such subparagraph (C)
(without regard to this subsection), plus
(B) 20 percent of the excess (if any) of—
(i) the amount on which a tax is de-
termined under such subparagraph (C)
(without regard to this subsection), over
(ii) the amount on which a tax is de-
termined under subparagraph (A) of this
paragraph.
(3) The amount of tax determined under sub-
paragraph (D) of section (1)(h)(1) of such Code
shall be the sum of—
(A) 20 percent of the lesser of—
(i) the amount which would be deter-
mined under section 1(h)(6)(A)(i) of such
Code taking into account only gain prop-
erly taken into account for the portion of
the taxable year on or after such date, or
(ii) the amount on which a tax is de-
termined under such subparagraph (D)
(without regard to this subsection), plus
(B) 25 percent of the excess (if any) of—
(i) the amount on which a tax is de-
termined under such subparagraph (D)
(without regard to this subsection), over
(ii) the amount on which a tax is de-
termined under subparagraph (A) of this
paragraph.
(4) For purposes of applying section 55(b)(3)
of such Code, rules similar to the rules of para-
graphs (1), (2), and (3) of this subsection shall
apply.
(5) In applying this subsection with respect to
any pass-thru entity, the determination of when
gains and loss are properly taken into account shall
be made at the entity level.
(6) Terms used in this subsection which are
also used in section 1(h) of such Code shall have the
respective meanings that such terms have in such
section.
(d) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as otherwise pro-
vided by this subsection, the amendments made by
this section shall apply to taxable years ending after
June 30, 1999.
(2) WITHHOLDING.—The amendment made by
subsection (a)(2)(C) shall apply to amounts paid
after the date of the enactment of this Act.
(3) SMALL
BUSINESS
STOCK.—The amend-
ments made by subsection (b)(4) shall apply to dis-
positions on or after July 1, 1999.
SEC. 105. CAPITAL GAINS TAX RATES APPLIED TO CAPITAL
GAINS OF DESIGNATED SETTLEMENT FUNDS.
(a) IN GENERAL.—Paragraph (1) of section 468B(b)
(relating to taxation of designated settlement funds) is
amended by inserting ‘‘(subject to section 1(h))’’ after
‘‘maximum rate’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1999.
TITLE II—TAX RELIEF FOR
BUSINESSES
SEC. 201. PERMANENT EXTENSION OF RESEARCH CREDIT;
INCREASE IN PERCENTAGES UNDER ALTER-
NATIVE INCREMENTAL CREDIT.
(a) CREDIT MADE PERMANENT.—
(1) IN GENERAL.—Section 41 (relating to cred-
it for increasing research activities) is amended by
striking subsection (h).
(2) CONFORMING AMENDMENT.—Paragraph (1)
section 45C(b) is amended by striking subparagraph
(D).
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to amounts paid or in-
curred after June 30, 1999.
(b) INCREASE
IN PERCENTAGES UNDER ALTER-
NATIVE INCREMENTAL CREDIT.—
(1) IN GENERAL.—Subparagraph (A) of section
41(c)(4) is amended—
(A) by striking ‘‘1.65 percent’’ and insert-
ing ‘‘2.65 percent’’,
(B) by striking ‘‘2.2 percent’’ and inserting
‘‘3.2 percent’’, and
(C) by striking ‘‘2.75 percent’’ and insert-
ing ‘‘3.75 percent’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to taxable years begin-
ning after June 30, 1999.
SEC. 202. REPEAL OF LIMITATION ON ESTATE TAX DEDUC-
TION FOR FAMILY-OWNED BUSINESS INTER-
ESTS.
(a) IN GENERAL.—Subsection (a) of section 2057
(relating to family-owned business interests) is amended
to read as follows:
‘‘(a) ALLOWANCE OF DEDUCTION.—For purposes of
the tax imposed by section 2001, in the case of an estate
of a decedent to which this section applies, the value of
the taxable estate shall be determined by deducting from
the value of the gross estate the adjusted value of the
qualified family-owned business interests of the decedent
which are described in subsection (b)(2).’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to estates of decedents dying
after the date of the enactment of this Act.
TITLE III—EDUCATIONAL
OPPORTUNITIES
SEC. 301. ELIMINATION OF 60-MONTH LIMIT ON STUDENT
LOAN INTEREST DEDUCTION.
(a) IN GENERAL.—Section 221 (relating to interest
on education loans) is amended by striking subsection (d)
and by redesignating subsections (e), (f), and (g) as sub-
sections (d), (e), and (f), respectively.
(b) CONFORMING AMENDMENT.—Section 6050(e) is
amended by striking ‘‘section 221(e)(1)’’ and inserting
‘‘section 221(d)(1)’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to any loan interest
paid after December 31, 1997.
SEC. 302. CREDIT FOR INFORMATION TECHNOLOGY TRAIN-
ING PROGRAM EXPENSES.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 (relating to business-related cred-
its) is amended by adding at the end the following:
‘‘SEC. 45E. INFORMATION TECHNOLOGY TRAINING PRO-
GRAM EXPENSES.
‘‘(a) GENERAL RULE.—For purposes of section 38,
in the case of an employer, the information technology
training program credit determined under this section is
an amount equal to 20 percent of information technology
training program expenses paid or incurred by the tax-
payer during the taxable year.
‘‘(b) ADDITIONAL CREDIT PERCENTAGE FOR CER-
TAIN PROGRAMS.—The percentage under subsection (a)
shall be increased by 5 percentage points for information
technology training program expenses paid or incurred by
the taxpayer with respect to a program operated—
‘‘(1) in an empowerment zone or enterprise
community designated under part I of subchapter U,
‘‘(2) in a school district in which a least 50 per-
cent of the students attending schools in such dis-
trict are eligible for free or reduced-cost lunches
under the school lunch program established under
the National School Lunch Act,
‘‘(3) in an area designated as a disaster area by
the Secretary of Agriculture or by the President
under the Disaster Relief and Emergency Assistance
Act in the taxable year or the 4 preceding taxable
years,
‘‘(4) in a rural enterprise community designated
under section 766 of the Agriculture, Rural Develop-
ment, Food and Drug Administration, and Related
Agencies Appropriations Act, 1999, or
‘‘(5) in an area designated by the Secretary of
Agriculture as a Rural Economic Area Partnership
Zone, or
‘‘(6) by an employer who has 200 or fewer em-
ployees for each working day in each of 20 or more
calendar weeks in the current or preceding calendar
year.
‘‘(c) LIMITATION.—The amount of information tech-
nology training program expenses with respect to an indi-
vidual which may be taken into account under subsection
(a) for the taxable year shall not exceed $6,000.
‘‘(d) INFORMATION TECHNOLOGY TRAINING PRO-
GRAM EXPENSES.—For purposes of this section—
‘‘(1) IN
GENERAL.—The term ‘information
technology training program expenses’ means ex-
penses paid or incurred by reason of the participa-
tion of the employer in any information technology
training program.
‘‘(2) INFORMATION
TECHNOLOGY
TRAINING
PROGRAM.—The term ‘information technology train-
ing program’ means a program—
‘‘(A) for the training of computer program-
mers, systems analysts, and computer scientists
or engineers (as such occupations are defined
by the Bureau of Labor Statistics),
‘‘(B) involving a partnership of—
‘‘(i) employers, and
‘‘(ii) State training programs, school
districts, university systems, or certified
commercial information technology train-
ing providers, and
‘‘(C) at least 50 percent of the costs of
which are paid or incurred by the employers.
‘‘(3) CERTIFIED
COMMERCIAL
INFORMATION
TECHNOLOGY TRAINING PROVIDER.—The term ‘cer-
tified commercial information technology training
providers’ means a private sector provider of edu-
cational products and services utilized for training in
information technology which is certified with re-
spect to—
‘‘(A) the curriculum that is used for the
training, or
‘‘(B) the technical knowledge of the in-
structors of such provider,
by 1 or more software publishers or hardware manu-
facturers the products of which are a subject of the
training.
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction
or credit under any other provision of this chapter shall
be allowed with respect to information technology training
program expenses (determined without regard to the limi-
tation under subsection (c)).
‘‘(f) ALLOCATIONS.—For purposes of this section,
rules similar to the rules of section 41(f)(2) shall apply.’’
(b) CREDIT TO BE PART OF GENERAL BUSINESS
CREDIT.—Section 38(b) (relating to current year business
credit) is amended by striking ‘‘plus’’ at the end of para-
graph (12), by striking the period at the end of paragraph
(13) and inserting ‘‘, plus’’, and by adding at the end the
following:
‘‘(14) the information technology training pro-
gram credit determined under section 45E.’’
(c) NO CARRYBACKS.—Subsection (d) of section 39
(relating to carryback and carryforward of unused credits)
is amended by adding at the end the following:
‘‘(9) NO CARRYBACK OF SECTION 45E CREDIT
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is
attributable to the information technology training
program credit determined under section 45E may
be carried back to a taxable year ending before the
date of the enactment of section 45E.’’
(d) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
is amended by adding at the end the following:
‘‘Sec. 45E. Information technology training program expenses.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid or incurred after
the date of enactment of this Act in taxable years ending
after such date.
SEC. 303. CERTAIN CREDITS RELATED TO EDUCATION AND
CHILDREN ALLOWED AGAINST ALTERNATIVE
MINIMUM TAX.
(a) IN GENERAL.—Subsection (a) of section 26 (re-
lating to limitation based on amount of tax) is amended
to read as follows:
‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.—The
aggregate amount of credits allowed by this subpart for
the taxable year shall not exceed the sum of—
‘‘(1) the taxpayer’s regular tax liability for the
taxable year, and
‘‘(2) the tax imposed for the taxable year by
section 55(a).
Paragraph (2) shall not apply to the credits allowable by
sections 22, 23, and 25, and this sentence shall be applied
before the preceding sentence.’’
(b) CHILD CREDIT.—Subsection (d) of section 24 is
amended by striking paragraph (2) and by redesignating
paragraph (3) as paragraph (2).
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
TITLE IV—TAX RELIEF FOR
RETIREMENT SAVINGS
SEC. 401. INCREASE IN DEDUCTION FOR INDIVIDUAL RE-
TIREMENT PLAN SAVINGS.
(a) INCREASE IN MAXIMUM AMOUNT OF DEDUC-
TION.—Subparagraph (A) of section 219(b)(1) (relating
to maximum amount of deduction) is amended by striking
‘‘$2,000’’ and inserting ‘‘$5,000’’.
(b) 
CONFORMING
AMENDMENTS.—Subsections
(a)(1), (b)(2), (j), and (p)(8) of section 408 are each
amended by striking ‘‘$2,000’’ each place it appears and
inserting ‘‘$5,000’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 402. ADJUSTMENT IN MONTHLY EXEMPT AMOUNT FOR
PURPOSES OF THE SOCIAL SECURITY EARN-
INGS TEST.
(a) INCREASE IN MONTHLY EXEMPT AMOUNT FOR
INDIVIDUALS
WHO
HAVE
ATTAINED
RETIREMENT
AGE.—Section 203(f)(8)(D) of the Social Security Act (42
U.S.C. 403(f)(8)(D)) is amended—
(1) in clause (iii), by inserting ‘‘and’’ at the
end; and
(2) by striking clauses (iv) through (vii) and in-
serting the following new clause:
‘‘(iv) for each month of any taxable
year ending after 1999 and before 2001,
$2,500.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 203(f)(8)(B)(ii) of such Act (42
U.S.C. 403(f)(8)(B)(ii)) is amended—
(A) by striking ‘‘after 2001 and before
2003’’ and inserting ‘‘after 1999 and before
2001’’; and
(B) in subclause (II), by striking ‘‘2001’’
and inserting ‘‘1998’’.
(2) The second sentence of section 223(d)(4)(A)
of such Act (42 U.S.C. 423(d)(4)(A)) is amended by
inserting ‘‘and section 402 of the Common Sense
Family Tax Relief Act of 1999’’ after ‘‘1996’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to taxable years begin-
ning after 1999.