Technical Corrections Act of 1982
PL 97-448 (H.R.6056), enacted 01/12/1983

PUBLIC LAW 97-448—JAN. 12,1983 
96 STAT. 2365 
Public Law 97-448 
97th Congress 
An Act 
To make technical corrections in the Economic Recovery Tax Act of 1981 and certain 
Jan. 12, 198^} 
other recent tax legislation. 
[H.R. 6056] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. 
Technical 
CoiTFGCtlOIlS ^{*fc 
SECTION 1. SHORT TITLE; AMENDMENT OF 1954 CODE. 
of 1982. 
(a) SHORT TITLE.—This Act may be cited as the "Technical Correc- 
26 USC l note, 
tions Act of 1982". 
(b) AMENDMENT OF 1954 CODE.—Except as otherwise expressly 
26USClet«eg. 
provided, whenever in this Act an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a section 
or other provision of the Internal Revenue Code of 1954. 
TITLE 
I—AMENDMENTS 
RELATED 
TO 
ECONOMIC 
RECOVERY 
TAX 
ACT 
OF 
1
9
8
1 
SEC. 101. AMENDMENTS RELATED TO TITLE I OF THE ACT. 
(a) AMENDMENTS RELATED TO SECTION 101.— 
95 Stat. 176. 
(1) EFFECTIVE DATE FOR AMENDMENT TO SECTION 21.—Para-
graph (1) of section 101(f) of the Economic Recovery Tax Act of 
1981 (relating to effective dates for rate cuts) is amended by 
95 Stat. 185. 
inserting before the period at the end thereof the following: "; 
26 USC l note, 
except that the amendment made by paragraph (3) of subsection 
(d) shall apply to taxable years ending after December 31,1981". 
(2) RATE REDUCTION TAX CREDIT.—Section 6428 (relating to 
26 USC 6428. 
1981 rate reduction tsix credit) is amended by adding at the end 
thereof the following new subsection: 
"(d) SPECIAL RULES.—For purposes of this section— 
"(1) INDIVIDUALS TO WHOM 50 PERCENT MAXIMUM RATE OR 20 
PERCENT CAPITAL GAIN RATE APPUES.— 
"(A) IN GENERAL.—In the case of any individual to whom 
this paragraph applies, in determining the amount of the 
credit allowable under subsection (a)— 
"(i) the portion of the tax imposed by section 1 deter-
mined under section 1348(aX2) (as in effect before its 
repeal by the Economic Recovery Tax Act of 1981), and 
'(ii) the portion of the tax imposed by section 1 
determined under subsection (aX2XB) of section 102 of 
the Economic Recovery Tax Act of 1981, 
95 Stat. 186. 
shall not be taken into account. 
?^.^^ ^^^^ 
"(B) INDIVIDUALS TO WHOM PARAGRAPH APPUES.—This 
paragraph applies to any individual if the tax imposed by 
section 1 for the taxable year is determined under— 
"(i) section 1348 (as in effect before its repeal by the 
Economic Recovery Tax Act of 1981), or 
note. 
96 STAT. 2366 
PUBLIC LAW 97-448—JAN. 12, 1983 
"(ii) section 102(aX2) of the Economic Recovery Tax 
95 Stat. 186. 
Act of 1981. 
notY^ ^^^^ 
"^^^ SPECIAL RULE FOR TAX IMPOSED BY SECTION 402 (e).—The 
tax imposed by subsection (e) of section 402 shall be treated as a 
tax imposed by section 1." 
26 u s e 1 note. 
(3) EUMINATION OF 50-CENT ROUNDING ERRORS.—If any figure 
in any table— 
(A) which is set forth in section 1 of the Internal Revenue 
Code of 1954 (as amended by section 101 of the Economic 
95 Stat. 176. 
Recovery Tax Act of 1981), and 
(B) which applies to married individuals filing separately 
or to estates and trusts, 
differs by not more than 50 cents from the correct amount 
under the formula used in constructing such table, such figure 
is hereby corrected to the correct amount, 
(aa) AMENDMENT RELATED TO SECTION 102.—Clause (ii) of section 
95 Stat. 186. 
102(b)(lXB) of the Economic Recovery Tax Act of 1981 is amended by 
note^ ^^^^ 
striking out "qualified net capital gain" and inserting in lieu thereof 
"qualified net capital gain (or, if lesser, the alternative minimum 
taxable income within the meaning of section 55(bXl) of such Code)". 
95 Stat. 188. 
(b) AMENDMENT RELATED T
O SECTION 104.—Subparagraph (C) of 
26 use 402. 
section 402(eXl) (relating to imposition of separate tax on lump sum 
distributions) is amended by striking out "$2,300" and inserting in 
lieu thereof "the zero bracket amount applicable to such an individ-
ual for the teixable year". 
95 Stat. 190. 
(c) AMENDMENTS RELATED TO SECTION 111.— 
(1) CLARIFICATION OF UMITATION ON BENEFIT.—Subsection (d) 
26 use 911. 
of section 911 (relating to citizens or residents of the United 
States living abroad) is amended by redesignating paragraph (7) 
as paragraph (8) and by inserting after paragraph (6) the follow-
ing new paragraph: 
"(7) AGGREGATE BENEFIT CANNOT EXCEED FOREIGN EARNED 
INCOME.—The sum of the amount excluded under subsection (a) 
and the amount deducted under subsection (cX3XA) for the 
taxable year shall not exceed the individual's foreign earned 
income for such year." 
(2) TECHNICAL AMENDMENT.—Clause (ii) of section 911(cX3XB) 
(relating to special rules where housing expenses not provided 
by employer) is amended by striking out "subsection (aXD" and 
inserting in lieu thereof "subsection (a)". 
95 Stat. 197. 
(d) AMENDMENT RELATED TO SECTION 122.—Subsection (c) of SeC-
26 use 1034 
tion 122 of the Economic Recovery Tax Act of 1981 (relating to 
effective date for increase in rollover period for principal residence) 
is amended by adding at the end thereof the following new 
sentences: 
"Notwithstanding the preceding sentence, the taxpayer may elect to 
have the amendments made by this section not apply to any old 
residence sold or exchanged on or before August 13, 1981. Such an 
election shall be made at such time and in such manner as the 
Secretary of the Treasury or his delegate shall by regulations 
prescribe." 
95 Stat. 197. 
(e) AMENDMENTS RELATED TO SECTION 124.— 
(1) BENEFITS MUST BE NONDISCRIMINATORY.— 
26 use 129. 
(A) Subsection (d) of section 129 (defining dependent care 
assistance program) is amended by redesignating para-
graphs (2) through (6) as paragraphs (3) through (7), respec-
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 23(37 
tively, and by inserting after paragraph (1) the following 
new paragraph: 
"(2) DISCRIMINATION.—The contributions or benefits provided 
under the plan shall not discriminate in favor of employees 
who are officers, owners, or highly compensated, or their 
dependents." 
(B) Paragraph (8) of section 129(d) (as redesignated by 
95 Stet. 199. 
subparagraph (A)) is amended by striking out "employees 
^" ^°^ ^^^• 
who are officers, owners, or highly compensated, or their 
dependents" and inserting in lieu thereof "employees 
described in paragraph (2), or their dependents". 
(C) Paragraph (1) of section 129(d) is amended by striking 
out "paragraphs (2) through (6)" and inserting in lieu 
thereof "pargigraphs (2) through (7)". 
(2) CLARIFICATION OF DEDUCTION TO EMPLOYER.—Paragraph (7) 
of section 129(e) (relating to disallowance of excluded amounts 
as credit or deduction) is amended— 
(A) by striking out "shall be allowed" and inserting in 
lieu thereof "shall be allowed to the employee", and 
(B) by striking out "excluded from income" and inserting 
in lieu thereof "excluded from the gross income of the 
employee". 
(f) AMENDMENT RELATED TO SECTION 125.—Paragraph (2) of section 
95 Stat. 20i. 
222(c) (defining child with special needs) is amended to read as 
26 USC 222. 
follows: 
"(2) CHILD WITH SPECIAL NEEDS.—The term 'child with special 
needs' means any child determined by the State to be a child 
described in paragraphs (1) and (2) of section 473(c) of the Social 
Security Act. 
(g) AMENDMENT RELATED TO SECTION 126.—Paragraph (4) of sec- 
95 Stat. 202. 
tion 483(g) (relating to nonresident alien individuals) is amended by 
^^ ^^^ '*^^-
striking out "This section" and inserting in lieu thereof "Paragraph 
(1)". 
SEC. 102. AMENDMENTS RELATED TO TITLE II OF THE ACT. 
(a) AMENDMENTS RELATED TO SECTION 201.— 
95 Stat. 203. 
(1) APPUCATION OF SHORT TAXABLE YEAR RULE TO 15-YEAR REAL 
PROPERTY.—Paragraph (5) of section 168(f) (relating to short 
26 USC 168. 
taxable years) is amended by adding at the end thereof the 
following new sentence: "In the case of 15-year real property, 
the first sentence of this paragraph shall not apply to the 
taxable year in which the property is placed in service or 
disposed of." 
(2) ADJUSTMENTS TO BASIS IN THE CASE OF CERTAIN TRANS-
FERS.—Subparagraph (B) of section 168(dX2) (relating to adjust-
ment to basis) is amended by striking out "subsection (fK7)" and 
inserting in lieu thereof "paragraph (7) or (10) of subsection (f)". 
(3) CHANGES IN USE.—Subsection (f) of section 168 (relating to 
special rules for application of section) is amended by adding at 
the end thereof the following new paragraph: 
"(13) CHANGES IN USE.—The Secretary shall, by regulation, 
provide for the method of determining the deduction ^lowable 
under subsection (a) with respect to any property for ariy tax-
able year (and for succeeding taxable years) during which such 
property changes status under this section but continues to be 
held by the same person." 
(4) QUAUFIED COAL UTIUZATION PROPERTY.— 
96 STAT. 2368 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 use 168. 
(A) Paragraph (4) of section 168(h) (relating to qualified 
coal utilization property) is amended to read as follows: 
"(4) QUALIFIED COAL UTILIZATION PROPERTY.—The term '10-
year property' includes qualified coal utilization property which 
would otherwise be 15-year public utility property." 
(B) The heading of subparagraph (A) of section 168(gX8) is 
amended to read as follows: 
"(A) QUALIFIED COAL UTILIZATION PROPERTY.—". 
(C) The heading of subparagraph (B) of section 168(gX8) is 
amended to read as follows: 
"(B) COAL UTILIZATION PROPERTY.—". 
(5) CLARIFICATION OF APPUCABLE PERCENTAGE FOR YEAR REAL 
PROPERTY PLACED IN SERVICE.—The third sentence of section 
168(b)(2XA) (relating to 15-year real property) is amended by 
striking out "For purposes of this subparagraph" and inserting 
in lieu thereof "In the CEise of 15-year real property". 
(6) SECTION 1245 RECOVERY PROPERTY INCLUDED AS UNREAUZED 
RECEIVABLE.—The second sentence of subsection (c) of section 
26 use 751. 
751 (relating to unrealized receivables and inventory items) is 
amended by inserting "section 1245 recovery property (as 
defined in section 1245(aX5))," after "section 1245(aX3)),". 
(7) CLARIFICATION OF ADDITIONAL DEPRECIATION IN THE CASE OF 
RECOVERY PROPERTY.— 
26 use 1250. 
(A) Subsection (b) of section 1250 (defining additional 
depreciation) is amended by adding at the end thereof the 
following new paragraph: 
"(5) METHOD OF COMPUTING STRAIGHT UNE ADJUSTMENTS.—For 
purposes of paragraph (1), the depreciation adjustments which 
would have resulted for any taxable year under the straight line 
method shall be determined— 
"(A) in the case of recovery property, by determining the 
adjustments which would have resulted for such year if the 
taxpayer had elected the straight line method for such year 
using the recovery period applicable to such property, and 
"(B) in the csise of any property which is not recovery 
property, if a useful life (or salvage value) was used in 
determining the amount allowable as a deduction for any 
taxable year, by using such life (or value)." 
(B) Paragraph (1) of section 1250(b) is amended by strik-
ing out the last sentence. 
(8) THEME PARKS, ETC.—Pareigraph (2) of section 168(c) (defin-
26 use 168. 
ing classes of recovery property) is amended by adding at the 
end thereof the following new subparagraph: 
"(F) SPECIAL RULE FOR THEME PARKS, ETC.—For purposes 
of subparagraphs (C) and (D), a building (and its structural 
components) shall not be treated as having a present class 
life of 12.5 years or less by reason of any use other than the 
use for which such building was originally placed in 
service." 
(9) ANTI-CHURNING PROVISIONS.—Parg^aph (4) of section 
168(e) (relating to certain transactions in property placed in 
service before 1981), as amended by section 206(bXl) of the Tax 
Ante, p. 431. 
Equity and Fiscal Responsibility Act of 1982, is amended— 
(A) by adding at the end of subparagraph (D) thereof the 
following new sentence: "In the case of the acquisition of 
property by any partnership which results from the termi-
nation of another partnership under section 708(bXlXB), the 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 23(59 
determination of whether the acquiring partnership is re-
lated to the other partnership shall be made immediately 
before the event resulting in such termination occurs."; and 
(B) by adding at the end thereof the following new sub-
paragraphs: 
"(H) ACQUISITIONS BY REASON OF DEATH.—Subpara-
graphs (A) and (B) shall not apply to the acquisition of 
any property by the taxpayer if the basis of the proper-
ty in the hands of the taxpayer is determined under 
section 1014(a). 
"(I) SECTION 1245 CLASS PROPERTY ACQUIRED INCIDEN-
TAL TO ACQUISITION OF SECTION 1250 CLASS PROPERTY.— 
Under regulations prescribed by the Secretary, subpar-
agraph (B) shall apply (and subparagraph (A) shall not 
apply) to section 1245 class property which is acquired 
incidental to the acquisition of section 1250 class prop-
erty." 
(lOXA) Subparagraph (D) of section 168(0(8) (relating to spe- 26 USC 168. 
cial rule for leases), as in effect before the amendments made by 
the Tax Equity and Fiscal Responsibility Act of 1982, is Ante, p. 324. 
amended by adding at the end thereof the following new sen-
tence: "Under regulations prescribed by the Secretary, public 
utility property shall not be treated as qualified leased property 
unless the requirements of rules similar to the rules of subsec-
tion (e)(3) of this section and section 46(f) are met with respect to 
such property." 
(B) The amendment made by subparagraph (A) shall apply 26 USC 168 note, 
with respect to property to which the provisions of section 
168(f)(8) of the Internal Revenue Code of 1954 (as in effect before 
the amendments made by the Tax Ekjuity and Fiscal Responsi-
bility Act of 1982) apply, 
(aa) AMENDMENT RELATED TO SECTION 202.—Subsection (d) of sec- 95 Stat. 219. 
tion 179 (relating to election to expense certain business assets) is 26 use 179. 
amended by adding at the end thereof of the following new 
paragraph: 
"(10) RECAPTURE IN CERTAIN CASES.—The Secretary shall, by 
regulations, provide for recapturing the benefit under any 
deduction allowable under subsection (a) with respect to any 
property which is not used predominantly in a trade or business 
at any time before the close of the second taxable year follow-
ing the taxable year in which it is placed in service by the 
taxpayer." 
(b) AMENDMENTS RELATED TO SECTION 205.— 
95 Stat. 223. 
(IXA) The next to the last sentence of section 57(a) is amended 26 USC 57. 
by striking out "and (12)" and inserting in lieu thereof "and 
(12)(A)". 
(B) The amendment made by subparagraph (A) shall take 26 use 57 not<}. 
effect as if included in the amendment made by section 205(b) of 
the Economic Recovery Tax Act of 1981 but shall not apply to 
taxable years beginning after December 31,1982. 
(2) Paragraph (2) of section 58(f) is amended by striking out 26 USC 58. 
"the item of tax preference set forth in section 57(a)(2)" and 
inserting in lieu thereof "the items of tax preference set forth in 
paragraphs (2) and (12XB) of section 57(a)". 
(3) Paragraph (12) of section 57(a) (defining items of tax 
preference) is amended by redesignating subparagraphs (C) and 
(D) as subparagraphs (D) and (E), respectively, and by inserting 
after subparagraph (B) the following new subparagraph: 
96 STAT. 2370 
PUBLIC LAW 97-448—JAN. 12, 1983 
"(C) SUBPARAGRAPHS (A) AND (B) INAPPUCABLE WHERE 
LONGER R
E
C
O
V
E
R
Y PERIODS APPLY.—If, pursuant to section 
168G)X3) or 168(fX2), the recovery period for any property is 
longer than the recovery period for such property set forth 
in subparagraph (A) or (B), subparagraph (A) or (B) (as the 
case may be) shall not apply to such property." 
26 use 57. 
(4) Subparagraph (A) of section 57(aX12) is amended by strik-
ing out 
under section 168(a)" and inserting in lieu thereof 
"under section 168(a) (or, in the case of property described in 
section 167(k), under section 167)". 
95 Stat. 224. 
(c) AMENDMENTS RELATED T
O SECTION 206.— 
26 use 1248. 
(1) Paragraph (1) of section 1248(c) is amended by striking out 
"section 312(kX3)" and inserting in lieu thereof "section 
312(k)(4)". 
26 use 562. 
(2) Section 562 (relating to rules applicable in determining 
dividends eligible for dividends paid deduction) is amended by 
adding at the end thereof the following new subsection: 
"(e) SPECIAL RULES FOR REAL ESTATE INVESTMENT TRUSTS.—In the 
case of a real estate investment trust, in determining the amount of 
dividends under section 316 for purposes of computing the dividends 
paid deduction, the earnings and profits of such trust for any 
taxable year beginning after December 31, 1980, shall be increased 
by the total amount of gain (if any) on the sale or exchange of real 
property by such trust during such taxable year." 
95 Stat. 225. 
(d) AMENDMENTS RELATED T
O SECTION 207.— 
95 Stat. 226. 
(1) Paragraph (1) of section 209(c) of the Economic Recovery 
26 use 168 note. 
-jax Act of 1981 (relating to effective date for carryover provi-
sions) is amended by adding at the end thereof the following 
new subparagraph: 
"(C) If any net operating loss for any taxable year ending 
on or before December 31, 1975, could be a net operating 
loss carryover to a taxable year ending in 1981 by reason of 
subclause (II) of section 172(bXlXEXii) of the Internal Reve-
nue Code of 1954 (as in effect on the day before the date of 
the enactment of this Act and as modified by section 1(b) of 
26 use 172 note. 
Public Law 96-595), such net operating loss shall be a net 
operating loss carryover under section 172 of such Code to 
each of the 15 taxable years following the taxable year of 
such loss." 
26 use 168 note. 
(2) Subsection (c) of section 209 of the Economic Recovery Tax 
Act of 1981 is amended by adding at the end thereof the 
following new paragraph: 
"(3) CARRYOVER MUST HAVE BEEN AUVE IN 1981.—The amend-
ments made by subsections (a), (b), and (c) of section 207 shall 
not apply to any amount which, under the law in effect on the 
day before the date of the enactment of this Act, could not be 
carried to a tsixable year ending in 1981." 
26 use 53. 
(3) Paragraph (2) of section 207(c) of the Economic Recovery 
Tax Act of 1981 (relating to new employee credit) is amended by 
striking out "section 53(c)" and inserting in lieu thereof "section 
53(b)". 
95 Stat. 227. 
(e) AMENDMENTS RELATED T
O SECTION 211.— 
(1) APPUCABLE INVESTMENT TAX CREDIT PERCENTAGE FOR 
R
E
C
O
V
E
R
Y PROPERTY.—Paragraph (7) of section 46(c) (relating to 
applicable percentage for recovery property) is amended— 
(A) by striking out subparagraph (A) and inserting in lieu 
thereof the following: 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2371 
"(A) in the case of property other than 3-year property 
(within the meaning of section 168(c)), 100 percent, and', 
and 
(B) by striking out "shall be treated as 5-year property" 
in the last sentence and inserting in lieu thereof "shall be 
treated as property which is not 3-year property". 
(2) PETROLEUM STORAGE FACIUTIES.— 
(A) Subparagraph (G) of section 48(aXl) (defining section 26 USC 48. 
38 property) is amended by inserting "(not including a 
building and its structural components)" after "storage 
facility". 
(B) Subparagraph (F) of section 1245(aX3) (defining section 26 USC 1245. 
1245 property^ is amended by inserting "(not including a 
building or its structural components)" after "storage 
facility". 
(3) CLERICAL AMENDMENT.— 
(A) Paragraph (2) of section 47(d) is amended— 
26 USC 47. 
(i) by striking out "section 48(c)(8)(D)" and inserting 
in lieu thereof "section 46(c)(8)(D)", and 
(ii) by striking out "section 48(cX8XB)" and inserting 
in lieu thereof "section 46(cX8)(B)". 
(B) Subparagraph (A) of section 47(dX3) is amended by 
striking out "section 46(cX8XE)" and inserting in lieu 
thereof "section 46(cX8XF)". 
(f) AMENDMENTS RELATED TO SECTION 212.— 
95 Stat. 235. 
(1) CLARIFICATION OF TRANSITIONAL RULE.—Subparagraph (B) 
of section 212(eX2) of the Economic Recovery Tax Act of 1981 26 USC 46 note, 
(relating to transitional rule for increase in investment tax 
credit for qualified rehabilitation expenditures) is amended to 
read as follows: 
"(B) such building does not meet the requirements of 
paragraph (1) of section 48(g) of the Internal Revenue Code 
of 1954 (as amended by this Act)." 
(2) DETERMINATION OF SUBSTANTIAL REHABIUTATION.—Clause 
(i) of section 48(gXlXC) (defining substantially rehabilitated) is 26 USC 48. 
amended by striking out "the 24-month period ending on the 
last day of the taxable year" and inserting in lieu thereof "the 
24-month period selected by the taxpayer (at the time and in the 
manner prescribed by regulations) and ending with or within 
the taxable year". 
(3) CLARIFICATION OF BASIS ADJUSTMENT.—Subparagraph (A) of 
section 48(g)(5) (relating to adjustments to basis) is amended— 
(A) by striking out "a credit is allowed under this section" 
and inserting in lieu thereof "a credit is determined under 
section 46(aX2)", and 
(B) by striking out "the credit so allowed" and inserting 
in lieu thereof "the credit so determined". 
(4) EXTENSION OF TIME TO MAKE ELECTION TO USE STRAIGHT 
UNE DEPRECIATION.—Subparagraph (B) of section 168(fX4) (relat- 26 USC 168. 
ing to election made on return) is amended to read as follows: 
"(B) ELECTION MADE ON RETURN.— 
"(i) IN GENERAL.—Except as provided in clause (ii), 
any election under this section shall be made on the 
taxpayer's return of the tax imposed by this chapter for 
the taxable year concerned. 
"(ii) 
SPECIAL RULE FOR QUALIFIED REHABIUTATED 
BUILDINGS.—In the case of any qualified rehabilitated 
96 STAT. 2372 
PUBLIC LAW 97-448—JAN. 12, 1983 
building (as defined in section 48(gXl)), an election 
under subsection (bX3) may be made at any time before 
the date 3 years after the building was placed in 
service." 
(5) CLARIFICATION OF BUILDINGS EUGIBLE FOR REHABILITATION 
26 use 46. 
(A) Subclause (II) of section 46(aX2XFXiii) (defining 40-
year building) is amended by striking out "any building" 
and inserting in lieu thereof "a qualified rehabilitated 
building". 
(B) Subclause (III) of section 46(aX2XFXiii) (defining certi-
fied historic structure) is amended by striking out "has the 
meaning given to such term by section 48(gX3)" and insert-
ing in lieu thereof "means a qualified rehabilitated building 
which meets the requirements of section 48(gX3)". 
(6) DEFINITION OF SUBSTANTIALLY REHABiuTATED.^Dlause (i) of 
26 use 48. 
section 48(gXlXC) (defining substantially rehabilitated) is 
amended— 
(A) by striking out "property" the first 2 places it appears 
and inserting in lieu thereof "building (and its structural 
components), 
(B) by striking out "property" the third place it appears 
and inserting in lieu thereof "building", and 
(C) by adding at the end thereof the following new sen-
tence: "For purposes of the preceding sentence, the determi-
nation of the beginning of the holding period shall be made 
without regard to any reconstruction by the taxpayer in 
connection with the rehabilitation." 
26 use 170. 
(7) CROSS REFERENCE.—Clause (ii) of section 170(hX4XB) (defin-
ing certified historic structure) is amended by striking out 
"section 191(dX2)" and inserting in lieu thereof "section 
48(gX3XB)". 
95 Stat. 240. 
(g) AMENDMENT RELATED TO SECTION 213.—Subsection (b) of SeC-
26 use 48 note, 
tion 213 of the Economic Recovery Tax Act of 1981 (relating to 
investment tax credit for used property; increase in dollar limit) is 
amended by striking out "property placed in service" and inserting 
in lieu thereof "tsixable years beginning", 
of fji^' ^^^" 
(^) AMENDMENTS RELATED TO SECTION 221.— 
26 use 108. 
(1) Subparagraph (B) of section 108(bX2) (relating to certain 
credit carryovers) is emiended by striking out "or" at the end of 
clause (iii), by striking out the period at the end of clause (iv) 
and inserting in lieu thereof 
, or", and by inserting after 
clause (iv) the following new clause: 
"(v) section 44F (relating to credit for increasing 
research activities)." 
(2) Effective only with respect to amounts paid or incurred 
26 use 44F. 
after March 31, 1982, subparagraph (A) of section 44F(bX2) is 
amended by adding at the end thereof the following: 
"Clause (iii) shall not apply to any amount to the extent 
that the taxpayer (or any person with whom the taxpayer 
must aggregate expenditures under 
subsection (fKD) 
receives or accrues any amount from any other person for 
the right to use substaiitially identical personal property." 
95 Stat. 246. 
(3) The paragraph (28) of section 381(c) added by section 221 of 
26 use 381. 
j.jjg Economic Recovery Tax Act of 1981 is redesignated as 
paragraph (29). 
95 Stat. 250. 
(i) AMENDMENTS RELATED TO SECTION 234.— 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2373 
(1) Subparagraph (B) of section 1371(gX3) (defining qualified 26 USC 1371. 
subchapter S trust) is amended to read as follows: 
(B) all of the income (within the meaning of section 
643(b)) of which is distributed (or required to be distributed) 
currently to 1 individual who is a citizen or resident of the 
United States, and". 
(2) Section 678 is amended by adding at the end thereof the 26 USC 678. 
following new subsection: 
"(e) CROSS REFERENCE.— 
"For provision under which beneHciary of trust is treated as owner of 
the portion of the trust which consists of stock in an electing small busi-
ness corporation, see section 1361(d)." 
(j) AMENDMENTS RELATED TO SECTION 251.— 
95 Stat. 256. 
(1) Paragraph (8) of section 422A(b) (defining incentive stock 26 USC 422A. 
option) is amended by striking out "granted options" and insert-
ing in lieu thereof "granted incentive stock options". 
(2) Paragraph (1) of section 422A(c) (relating to exercise of 
option where price is less than value of stock) is amended— 
(A) by adding at the end thereof the following new sen-
tence: "To the extent provided in regulations by the Secre-
tary, a similar rule shall apply for purposes of paragraph (8) 
of subsection (b) and paragraph (4) of this subsection.', and 
(B) by striking out the paragraph heading and inserting 
in lieu thereof the following: 
"(1) GOOD FAITH EFFORTS TO VALUE STOCK.—". 
(3) Subparagraph (A) of section 422A(cX2) (relating to certain 
disqualified dispositions where amount realized is less than 
value at exercise) is amended by striking out "the 2-year 
period" and inserting in lieu thereof "either of the periods". 
(4) Clause (ii) of section 422A(cX4XA) (relating to carryover of 
unused limit) is amended by striking out "granted options" and 
inserting in lieu thereof "granted incentive stock options". 
(5) Subsection (j) of section 425 (relating to cross references) is 26 USC 425. 
amended by inserting "an incentive stock option," after "quali-
fied stock option,". 
(6) Effective only with respect to transfers after March 15, 
1982— 
(A) subsection (c) of section 425 (defining disposition) is 
amended by adding at the end thereof the following new 
paragraph: 
"(3) 
SPECIAL RULE WHERE INCENTIVE STOCK IS ACQUIRED 
THROUGH USE OF OTHER STATUTORY OPTION STOCK.— 
"(A) NONRECOGNITION SECTIONS NOT TO APPLY.—If— 
"(i) there is a transfer of statutory option stock in 
connection with the exercise of any incentive stock 
option, and 
"(ii) the applicable holding period requirements 
(under 
section 
422(aXl), 
422A(aXl), 
423(aXl), 
or 
424(aXl)) are not met before such transfer, 
then no section referred to in subparagraph (B) of para-
graph (1) shall apply to such transfer. 
"(B) STATUTORY OPTION STOCK.—For purpose of subpara-
graph (A), the term 'statutory option stock' means any 
stock acquired through the exercise of a qualified stock 
option, an incentive stock option, an option granted under 
an employee stock purchsise plan, or a restricted stock 
option.', and 
96 STAT. 2374 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 use 425. 
(B) paragraph (1) of section 425(c) is amended by striking 
out "paragraph (2)" and inserting in lieu thereof "para-
graphs (2) and (3)". 
95 Stat. 260. 
(k) AMENDMENT RELATED TO SECTION 2 5 2 . ^ 
26 use 83. 
(1) Paragraph (3) of section 83(c) (relating to sales which may 
give rise to suit under section 16(b) of the Securities Exchange 
Act) is amended by striking out "Securities and Exchange Act of 
1934" each place it appears and inserting in lieu thereof "Secu-
rities Exchange Act of 1934", 
26 use 83 note. 
(2) Subsection (c) of section 252 of the Economic Recovery Tax 
Act of 1981 (relating to effective date) is amended by striking 
out "taxable years ending after December 31, 1981" and insert-
ing in lieu thereof "transfers after December 31,1981". 
95 Stat. 260. 
(1) AMENDMENTS RELATED TO SECTION 261.— 
(1) CLARIFICATION OF DEFINITION OF YOUTH PARTICIPATING IN 
QUAUFiED COOPERATIVE EDUCATION PROGRAM.—Subparagraph 
26 use 51. 
(D) of section 51(d)(8) (defining wages) is amended by striking 
out "subparagraph (A)" and inserting in lieu thereof "clauses 
(i), (ii), and (iii) of subparagraph (A)". 
(2) CLARIFICATION OF EFFECTIVE DATE FOR EUGIBLE WORK IN-
CENTIVE EMPLOYEES.—Subparagraph (B) of section 261(gXl) of 
26 use 51 note. 
the Economic Recovery Tax Act of 1981 (relating to eligible 
work incentive employees) is amended by striking out "subsec-
tion (b)(2)(A)" and inserting in lieu thereof "subsection (bX2)". 
(3) DEFINITION OF ELIGIBLE WORK INCENTIVE EMPLOYEES.—Sub-
paragraph (B) of section 51(d)(9) (defining eligible work incen-
tive employees) is amended by striking out "section 432(b)(1)" 
and inserting in lieu thereof "section 432(bXl) or 445". 
(4) PERIOD DURING WHICH LOW-INCOME DETERMINATION IS 
MADE.—Effective with respect to certifications made after the 
date of the enactment of this Act with respect to individuals 
beginning work for an employer after May 11, 1982, paragraph 
(11) of section 51(d) (defining members of an economically disad-
vantaged family) is amended by striking out "the month in 
which such determination occurs" and inserting in lieu thereof 
"the earlier of the month in which such determination occurs or 
the month in which the hiring date occurs". 
95 Stat. 264. 
(m) AMENDMENTS RELATED TO SECTION 263.— 
26 use 809. 
(1) Subparagraph (A) of section 809(eX3) (relating to charita-
ble, etc., contributions and gifts) is amended by striking out "5 
percent" and inserting in lieu thereof "10 percent". 
26 use 545, 556. 
(2) Sections 545(bX2) and 556(bX2) are each amended by strik-
ing out "5-percent" and inserting in lieu thereof "10-percent". 
26 use 512. 
(3) Paragraph (10) of section 512(b) (relating to modifications 
to unrelated business taxable income) is amended by striking 
out "5 percent" and inserting in lieu thereof "10 percent'. 
95 Stat. 265. 
(n) AMENDMENT RELATED TO SECTION 266.—Subsection (c) of sec-
26 use 165 note, 
tion 266 of the Economic Recovery Tax Act of 1981 (relating to 
deduction for motor carrier operating authority) is amended by 
adding at the end thereof the following new paragraph: 
"(3) 
SECTION 381 
OF THE I N T E R N A L R E V E N U E CODE OF 1954 
TO 
APPLY.—For purposes of section 381 of the Internal Revenue 
Code of 1954, any item described in this section shall be treated 
as an item described in subsection (c) of such section 381." 
SEC. 103. AMENDMENTS RELATED TO TITLE III OF THE ACT. 
95 Stat. 267. 
(a) AMENDMENTS RELATED TO SECTION 301.— 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2375 
(1) Paragraph (4) of section 128(d) (relating to limitation for 95 Stat. 267. 
credit unions) is amended by adding at the end thereof the 
^°^ ^^• 
following new sentence: "For purposes of this paragraph, the 
amounts described in subparagraph (A) of paragraph (5) shall 
include amounts paid into credit union share accounts." 
(2) Paragraph (2) of section 584(c) (relating to dividends or 26 USC 584. 
interest received) is amended to read as follows: 
"(2) DIVIDENDS OR INTEREST RECEIVED.—The proportionate 
share of each participant in the amount of dividends or interest 
received by the common trust fund and to which section 116 or 
128 applies shall be considered for purposes of such section as 
having been received by such participant." 
(3) Paragraph (7) of section 643(a) (defining distributable net 26 USC 643. 
income) is amended to read as follows: 
"(7) DIVIDENDS OR INTEREST.—There shall be included the 
amount of any dividends or interest excluded from gross income 
pursuant to section 116 (relating to partial exclusion of divi-
dends) or section 128 (relating to certain interest)." 
(4) Paragraph (5) of section 702(a) (relating to income and 26 USC 702. 
credits of partner) is amended to read as follows: 
"(5) dividends or interest with respect to which there is an 
exclusion under section 116 or 128, or a deduction under part 
VIII of subchapter B,". 
(5) Subparagraph (A) of section 128(cX2) (defining qualified 
26 use 128. 
institution) is amended— 
(A) by striking out "or" at the end of clause (ii), and 
(B) by inserting after clause (iii) the following new clause: 
"(iv) a banking facility (whether or not insured under 
Federal or State law) which is operated under a cost 
plus agreement with the Department of Defense for 
members of the Armed Forces of the United States 
serving outside the United States and their dependents, 
or . 
(b) AMENDMENT RELATED TO SECTION 302.—Subsection (c) of sec- 95 Stat. 270. 
tion 128 (as amended by section 302(a) of the Economic Recovery Tax 
26 USC 128. 
Act of 1981) is amended by adding at the end thereof the following 
new paragraph: 
"(3) LIMITATION ON QUAUFIED INTEREST EXPENSES, ETC.— 
"(A) LIMITATION.—The amount of the qualified interest 
expense of any taxpayer for any taxable year shall not 
exceed such taxpayer's excess itemized deductions (as 
defined in section 63(c)). 
"(B) C!OORDINATION WITH OTHER PROVISIONS.—For pur-
poses of sections 37, 43, 85, 105(d), 165(cX3), 170(b), and 213, 
adjusted gross income shall be determined without regard 
to the exclusion provided by this section." 
(c) AMENDMENTS RELATED TO SECTION 311.— 
95 Stat. 274. 
(1) LIMITATION ON DEDUCTION FOR SPOUSE.—Subparagraph (B) 
of section 219(cX2) (relating to limitation) is amended to read as 26 USC 219. 
follows: 
"(B) the amount allowable as a deduction under subsec-
tion (a) for the taxable year (determined without regard to 
so much of the employer contributions to a simplified 
employee pension as is fdlowable by reason of paragraph (2) 
of subsection (b))." 
96 STAT. 2376 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 u s e 219. 
26 use 72. 
Effective date. 
26 use 72 note. 
26 u s e 402. 
(2) CLARIFICATION OF AGE ToVa RULE.—Paragraph (1) of section 
219(d) (relating to individuals who have attained age 70Vz) is 
amended to read as follows: 
"(1) BENEFICIARY MUST BE UNDER AGE TOVZ.—No deduction 
shall be allowed under this section with respect to any qualified 
retirement contribution for the benefit of an individual if such 
individual has attained age 70 V
z before the close of such individ-
ual's taxable year for which the contribution was made." 
(3) DEFINITION OF QUAUFIED EMPLOYER PLAN.— 
(A) Paragraph (3) of section 219(e) (defining qualified 
employer plan) is amended by inserting "and" at the end of 
subparagraph (C), by striking out subparagraph (D), and by 
redesignating suljparagraph (E) as subparagraph (D). 
(B)(i) Paragraph (3) of section 72(p) (defining qualified 
employer plan, etc.) is amended bv striking out 
without 
regard to subparagraph (D) thereof . 
(ii) The amendment made by clause (i) shall take effect as 
if the matter struck out had never been included in such 
paragraph. 
(4) CLARIFICATION OF DEFINITION OF COMPENSATION.—Para-
graph (1) of section 219(f) (defining compensation) is amended to 
read as follows: 
"(1) COMPENSATION.—For purposes of this section, the term 
'compensation' includes earned income (as defined in section 
401(cX2)) reduced by any amount allowable as a deduction to the 
individual in computing adjusted gross income under paragraph 
(7) of section 62. The term 'compensation' does not include any 
amount received as a pension or annuity and does not include 
any amount received as deferred compensation." 
(5) TIME WHEN CERTAIN CONTRIBUTIONS DEEMED MADE.— 
Subparagraph (B) of section 219(fX3) (relating to time when 
contributions deemed made) is amended by striking out "the 
contribution is made" and inserting in lieu thereof "the contri-
bution is made on account of the taxable year which includes 
such last day and". 
(6) 
CLARIFICATION 
OF ADDITIONAL TAX WHERE 
AMOUNTS 
RECEIVED BEFORE AGE 59 Va.—Subparagraph (A) of section 72(oX2) 
(relating to additional tax if amount received before age 59^2) is 
amended by striking out "to which the employee made one or 
more deductible employee contributions". 
(7) 10-YEAR AVERAGING AND CAPITAL GAINS PROVISIONS.—The 
last sentence of subparagraph (A) of section 402(eX4) (defining 
lump sum distribution) is amended by striking out "this section 
and section 403" and inserting in lieu thereof "this subsection, 
subsection (aX2) of this section, and subsection (aX2) of section 
403". 
(8) 
ROLLOVER 
OF PARTIAL 
DISTRIBUTIONS OF DEDUCTIBLE 
EMPLOYEE CONTRIBUTIONS PERMITTED.— 
(A) Subparagraph (D) of section 402(aX5) (relating to roll-
over amounts) is amended by adding at the end thereof the 
following new clause: 
"(v) ROLLOVER OF PARTIAL DISTRIBUTIONS OF DEDUCT-
IBLE EMPLOYEE CONTRIBUTIONS PERMITTED.—In the case 
of any qualifying rollover distribution described in sub-
clause (III) of clause (i), clause (i) of subparagraph (A) 
shall be applied by substituting 'any portion of the 
balance' for the balance'." 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2377 
(B) Subparagraph (C) of section 403(b)(8) (relating to roll- 26 USC 403. 
over amounts) is amended by striking out "subparagraphs 
(B), (C)," and inserting in lieu thereof "subparagraphs (B), 
(C), (D)(v),". 
(9) ESTATE TAX EXCLUSION.— 
(A) Paragraph (1) of section 2039(f) is amended to read as 26 USC 2039. 
follows: 
"(1) IN GENERAL.—An amount is described in this subsection 
if— 
"(A) it is a lump sum distribution described in section 
402(e)(4) (determined without regard to the third sentence 
of section 402(e)(4)(A)), or 
"(B) it is an amount attributable to accumulated deduct-
ible 
employee 
contributions 
(as 
defined 
in 
section 
72(o)(5)(B)) in any plan taken into account for purposes of 
determining whether the distribution described in subpara-
graph (A) qualifies as a lump sum distribution." 
(B) Paragraph (2) of section 2039(f) is amended by striking 
out "A lump sum distribution" and inserting in lieu thereof 
"An amount". 
(10) DEDUCTIBLE EMPLOYEE CONTRIBUTIONS BY OWNER-EMPLOY-
EES PERMITTED.— 
(A) The second sentence of section 401(d)(5) is amended to 26 USC 401. 
read as follows: "Subparagraphs (A) and (B) shall not apply 
to contributions described in subsection (e), and shall not 
apply to any deductible employee contribution (eis defined 
in section 72(o)(5))." 
(B) Paragraph (2) of section 4972(b) (relating to contribu- 26 USC 4972. 
tions by owner-employees) is amended by adding at the end 
thereof the following new sentence: "No contribution by an 
owner-employee which is a deductible employee contribu-
tion (as defined in section 72(o)(5)) shall be taken into 
account under this paragraph." 
(11) EFFECTIVE DATE FOR ESTATE AND GIFT TAX PROVISIONS.— 26 USC 219 note. 
Subsection (i) of section 311 of the Economic Recovery Tax Act 
of 1981 (relating to effective dates) is amended by adding at the 95 Stat. 274. 
end thereof the following new paragraph: 
"(5) ESTATE AND GIFT TAX PROVISIONS.— 
"(A) ESTATE TAX.—The amendments made by subsections 
(d)(1) and (h)(4) shall apply to the estates of decedents dying 
after December 31, 1981. 
"(B) GIFT TAX.—The amendments made by subsections 
(d)(2) and (h)(5) shall apply to transfers after December 31, 
1981." 
(12) CLERICAL AMENDMENTS.— 
(A) Subparagraph (A) of section 219(bX2) is amended by 26 USC 219. 
striking out "paragraph (1)" and inserting in lieu thereof 
"paragraph (1))". 
(B) Subparagraph (D) of section 3401(aX12) is amended by 26 USC 3401. 
striking out "section 219(a)" and inserting in lieu thereof 
"section 219". 
(C) Subsection (d) of section 6047 is amended by striking 26 USC 6047. 
.^ut "section 219(a)" and inserting in lieu thereof "section 
219". 
(D) Paragraph (2) of section 311(c) of the Economic Recov-
ery Tax Act of 1981 is amended to read as follows: 
26 USC 402. 
96 STAT. 2378 
PUBLIC LAW 97-448—JAN. 12, 1983 
"(2) Subparagraph (J) of section 402(e)(4) (relating to tax on 
lump sum distribution) is amended by adding at the end thereof 
the following new sentence: 'This subparagraph shall not apply 
to distributions of accumulated deductible employee contribu-
tions (within the meaning of section 72(o)(5)).' " 
95 Stat. 283. 
((J) AMENDMENTS RELATED TO SECTION 312.— 
(1) SiMPUFIED EMPLOYEE PENSIONS.— 
26 use 408. 
(A) Clause (ii) of section 408(k)(3)(C) (relating to uniform 
relationships of contributions) is amended by striking out 
"on behalf of each employee" and inserting in lieu thereof 
"on behalf of each employee (other than an employee 
within the meaning of section 401(c)(1))". 
(B) Subsection (j) of section 408 is amended by striking out 
"$15,000" and inserting in lieu thereof "$17,000". 
(2) CONFORMING AMENDMENT.—The last sentence of section 
26 use 401. 
401(j)(3) is amended— 
(A) by striking out "subsection (j)(2)" and inserting in lieu 
thereof "paragraph (2)", and 
(B) by inserting "with respect only to such change" after 
"participation". 
26 use 72 note. 
(3) CLARIFICATION OF EFFECTIVE DATE.—Paragraph (1) of Sec-
tion 312(f) of the Economic Recovery Tax Act of 1981 (relating to 
effective date) is amended by striking out "plans which include 
employees within the meaning of section 401(cXl) with respect 
to". 
95 Stat. 286. 
(e) AMENDMENTS RELATED TO SECTION 314.— 
(1) Paragraph (1) of section 314(b) of the Economic Recovery 
26 use 408. 
Tax Act of 1981 is amended by striking out "by redesignating 
subsection (n) as subsection (o) and by inserting after subsection 
(m)" and inserting in lieu thereof "by redesignating subsection 
(m) as subsection (n) and by inserting after subsection (1)". 
26 use 408. 
(2) Section 408 is amended by redesignating the subsection 
added by section 314(bXl) of the Economic Recovery Tax Act of 
1981 as subsection (m). 
95 Stat. 287. 
(f) AMENDMENTS RELATED TO SECTION 321.— 
26 use 305. 
(1) Subparagraph (A) of section 305(eX3) (defining qualified 
public utility) is amended to read as follows: 
"(A) IN GENERAL.—For purposes of this subsection, the 
term 'qualified public utility' means, for any tsixable 
year of the corporation, a domestic corporation which, for 
the 10-year period ending on the day before the beginning 
of the taxable year, placed in service qualified long-life 
public utility property having a cost equgd to at least 60 
percent of the aggregate cost of all tangible property 
described in subparagraph (A) or (B) of section 1245(aX3) 
placed in service by the corporation during such period." 
(2) Clause (ii) of section 305(e)(3XC) is amended to read as 
follows: 
"(ii) QUAUFIED LONG-UFE PUBUC UTILITY PROPERTY.— 
The term 'qualified long-life public utility property' 
means any tangible property which— 
"(I) is described in subparagraph (A) or (B) of 
section 1245(aX3), 
"(II) has a present class life (as defined in section 
168(g)(2)) of more than 18 years, and 
"(III) is public utility property (within the mean-
ing of section 167(1)(3XA))." 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2379 
(g) AMENDMENTS RELATED TO SECTION 331.— 
95 Stat. 289. 
(1) CERTAIN REGULATED COMPANIES.—Paragraph (3) of section 
44G(b) (relating to certain regulated companies) is amended— 26 USC 44G. 
(A) by striking out "No credit" and inserting in lieu 
thereof "No credit attributable to compensation taken into 
account for the ratemaking purposes involved", and 
(B) by adding at the end thereof the following new 
sentence: 
"Under regulations prescribed by the Secretary, rules similar to 
the rules of paragraphs (4) and (7) of section 46(f) shall apply for 
purposes of the preceding sentence." 
(2) CONFORMING AMENDMENTS.^-
(A) Paragraph (21) of section 401(a) is amended by strik- 26 USC 401. 
ing out "which would be allowable" and all that follows and 
inserting in lieu thereof the following: 
"which would be allowable— 
"(A) under section 46(a) if the employer made the transfer 
described in section 48(nXl), or 
"(B) under section 44G if the employer made the transfer 
described in section 44G(cXlXB)." 
(B) Paragraph (4) of section 331(c) of the Economic Recov- 26 USC 6699. 
ery Tax Act of 1981 is amended by striking out "section 
6699" and inserting in lieu thereof "section 6699(c)". 
(C) Clause (ii) of section 6699(cX2XA) is amended by strik- 26 USC 6699. 
ing out "subparagraph (A)" and inserting in lieu thereof 
"clause (i)". 
(D) Clause (ii) of section 6699(c)(2)(B) is amended by strik-
ing out "subparagraph (A)" and inserting in lieu thereof 
"clause (i)". 
(E) Paragraph (4) of section 55(c) is amended by striking 26 USC 55. 
out "44G(bXl),". 
(F) The paragraph (29) of section 381(c) added by section 26 USC 381. 
331 of the Economic Recovery Tax Act of 1981 is redesig-
nated as paragraph (30). 
(h) AMENDMENT RELATED TO SECTION 334.—The last sentence of ^5 Stat. 297. 
section 409A(h)(2) is amended by striking out "the requirements of 26 USC 409A. 
section 401(a)" and inserting in lieu thereof "the requirements 
of this subsection or of section 401(a)". 
(i) AMENDMENT RELATED TO SECTION 337.—Paragraph (2) of section 95 Stat. 298. 
409A(d) is amended to read as follows: 
"(2) a transfer of a participant to the employment of an 
acquiring employer from the employment of the selling corpora-
tion in the case of a sale to the acquiring corporation of substan-
tially all of the assets used by the selling corporation in a trade 
or business conducted by the selling corporation, or". 
SEC. 104. AMENDMENTS RELATED TO TITLE IV OF THE ACT. 
(a) AMENDMENTS RELATED TO SECTION 403.— 
95 Stat. 301. 
(1) PROPERTY TREATED AS HAVING PASSED FROM SPOUSE.— 
(A) Subsection (b) of section 1014 (relating to basis of 26 USC 1014. 
property acquired from decedent) is amended by adding at 
the end thereof the following new paragraph: 
"(10) Property includible in the gross estate of the decedent 
under section 2044 (relating to certain property for which mari-
tal deduction was previously allowed). In any such case, the last 
3 sentences of paragraph (9) shall apply as if such property were 
described in the first sentence of paragraph (9)." 
96 STAT. 2380 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 use 2044. 
(B) Section 2044 (relating to certain property for which 
marital deduction was previously allowed) is amended by 
adding at the end thereof the following new subsection: 
"(c) PROPERTY TREATED AS HAVING PASSED FROM DECEDENT.—For 
purposes of this chapter and chapter 13, property includible in the 
gross estate of the decedent under subsection (a) shall be treated as 
property passing from the decedent." 
(2) DENIAL OF DOUBLE DEDUCTION.— 
26 use 2056. 
(A) Subsection (b) of section 2056 (relating to bequests, 
etc., to surviving spouse) is amended by adding at the end 
thereof the following new paragraph: 
"(9) DENIAL OF DOUBLE DEDUCTION.—Nothing in this section or 
any other provision of this chapter shall allow the value of any 
interest in property to be deducted under this chapter more 
than once with respect to the same decedent." 
26 use 2523. 
(B) Section 2523 (relating to gift to spouse) is amended by 
adding at the end thereof the following new subsection: 
"(h) DENIAL OP DOUBLE DEDUCTION.—Nothing in this section or 
any other provision of this chapter shall allow the value of any 
interest in property to be deducted under this chapter more than 
once with respect to the same donor." 
(3) DISPOSITIONS OF CERTAIN LIFE ESTATES.— 
26 use 2519. 
(A) Subsection (a) of section 2519 (relating to dispositions 
of certain life estates) is amended to read as follows: 
"(a) GENERAL RULE.—For purposes of this chapter and chapter 11, 
any disposition of all or part of a qualifying income interest for life 
in any property to which this section applies shall be treated as a 
transfer of all interests in such property other than the qualifying 
income interest." 
(B) Clauses (i) and (ii) of section 403(d)(3XB) of the Eco-
95 Stat. 301. 
nomic Recovery Tax Act of 1981 are each amended by 
striking out "chapter 11" and inserting in lieu thereof 
"chapter 12". 
(4) TIME FOR MAKING ELECTION.—Paragraph (4) of section 
2523(f) (relating to election with respect to life estate for donee 
spouse) is amended to read £is follows: 
"(4) ELECTION.— 
"(A) TIME AND MANNER.—An election under this subsec-
tion with respect to any property shall be made on or before 
the first April 15th after the calendar year in which the 
interest was transferred and shall be made in such manner 
as the Secretary shall by regulations prescribe. 
"(B) ELECTION IRREVOCABLE.—An election under this sub-
• 
section, once made, shall be irrevocable." 
(5) TREATMENT OF CERTAIN INTEREST RETAINED BY DONOR 
SPOUSE.—Subsection (f) of section 2523 (relating to election with 
respect to life estate for donee spouse) is amended by adding at 
the end thereof the following new paragraph: 
"(5) TREATMENT OF INTEREST RETAINED BY DONOR SPOUSE.— 
"(A) IN GENERAL.—In the case of any qualified terminable 
interest property— 
"(i) such property shall not be includible in the gross 
estate of the donor spouse, and 
"(ii) any subsequent transfer by the donor spouse of 
an interest in such property shall not be treated as a 
transfer for purposes of this chapter. 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2381 
"(B) SUBPARAGRAPH (A) NOT TO APPLY AFTER TRANSFER BY 
DONEE SPOUSE.—Subparagraph (A) shall not apply with 
respect to any property after the donee spouse is treated as 
having transferred such property under section 2519, or 
such property is includible in the donee spouse's gross 
estate under section 2044." 
(6) AMENDMENT OF SECTION 2523(f).—Paragraph (3) of section 26 USC 2523. 
2523(f) (relating to certain rules made applicable) is amended by 
striking out "the rules o f and inserting in lieu thereof "rules 
similar to the rules of. 
(7) CROSS REFERENCE.—Section 2519 is amended by adding at 26 use 2519. 
the end thereof the following new subsection: 
"(c) CROSS REFERENCE.— 
"For right of recovery for gift tax in the case of property treated as 
transferred under this section, see section 2207A(b)." 
(8) 
TREATMENT 
OF 
ANNUITIES.—Clause 
(ii) of 
section 
2056(b)(7)(B) is amended by adding at the end thereof the follow- 26 USC 2056. 
ing new sentence: "To the extent provided in regulations, an 
annuity shall be treated in a manner similar to an income 
interest in property (regardless of whether the property from 
which the annuity is payable can be separately identified)." 
(9) CLERICAL AMENDMENT.—Paragraph (2) of section 2035(b) is 26 USC 2035. 
amended by striking out "section 6019(aX2)" and inserting in 
lieu thereof "section 6019(2)". 
(10) CLARIFICATION OF EFFECTIVE DATE.—Paragraph (2) of 26 USC 2056 
section 403(e) of the Economic Recovery Teix Act of 1981 is "°*®' 
amended by striking out "and paragraphs (2) and (3XB) of 
subsection (d)" and inserting in lieu thereof "paragraphs (2) and 
(3XB) of subsection (d), and paragraph (4XA) of subsection (d) (to 
the extent related to the tax imposed by chapter 12 of the 
Internal Revenue Code of 1954)". 
26 USC 2501 et 
(b) AMENDMENTS RELATED TO SECTION 421.— 
*^9-
(1) TREATMENT OF CERTAIN SURVIVING SPOUSES.—Paragraph (5) ^^ ^*^*- ^^^• 
of section 2032A(b) (relating to special rules for surviving 26USC2032A. 
spouses) is amended by adding at the end thereof the following 
new subparagraph: 
"(C) COORDINATION WITH PARAGRAPH (4).—In any case in 
which to do so will enable the requirements of paragraph 
dXCXii) to be met with respect to the surviving spouse, this 
subsection and subsection (c) shall be applied by taking into 
account any application of paragraph (4)." 
(2) EXCHANGES OF QUAUFIED REAL PROPERTY.— 
(A) Clause (ii) of section 2032A(iXlXB) (relating to 
exchanges where other property received) is amended by 
striking out "the other property" and inserting in lieu 
thereof "the qualified exchange property". 
(B) Paragraph (3) of section 2032A(i) is amended by strik-
ing out "subparagraph (A), (B), or (C)" and inserting in lieu 
thereof "subparagraph (A) or (B)". 
(3) TRANSFERS OF CERTAIN FARM, ETC., REAL PROPERTY.— 
(A) Subsection (a) of section 1040 (relating to transfer of 26 USC 1040. 
certain farm, etc., real property) is amended by striking out 
"such exchange" and inserting in lieu thereof '^uch 
transfer". 
(B) Subsection (c) of section 1040 is amended— 
96 STAT. 2382 
PUBLIC LAW 97-448—JAN. 12, 1983 
95 Stat. 306. 
26 u s e 2032A 
note. 
(i) by striking out "an exchange" and inserting in 
lieu thereof "a transfer", 
(ii) by striking out "the exchange" each place it 
appears and inserting in lieu thereof "the transfer", 
and 
(iii) by striking out "EXCHANGE" in the subsection 
heading and inserting in lieu thereof "TRANSFER". 
26 use 1223. 
(C) Section 1223 (defining holding period of property) is 
amended by redesignating paragraph (12) £is paragraph (13) 
and by inserting after paragraph (11) the following new 
paragraph: 
"(12) If— 
"(A) property is acquired by any person in a transfer to 
which section 1040 applies, 
"(B) such property is sold or otherwise disposed of by such 
person within 1 year after the decedent's death, and 
"(C) such sale or disposition is to a person who is a 
qualified heir (as defined in section 2032A(eXl)) with respect 
to the decedent, 
then the person making such sale or other disposition shall be 
considered to have held such property for more than 1 year." 
(4) CLARIFICATION OF EFFECTIVE DATES.— 
(A) Subparagraph (A) of section 421(kX5) of the Economic 
Recovery Tax Act of 1981 is amended by striking out "sub-
sections (bXD, (cX2), (jXD, and (jX2)" and inserting in lieu 
thereof "subsections (bXD, (jXD, and (jX2) and the provisions 
of subparagraph (A) of section 2032A(cX'7) of the Internal 
Revenue Code of 1954 (as added by subsection (cX2))". 
(B) Subparagraph (B) of section 421(k)(5) of the Economic 
Recovery Tax Act of 1981 is amended by striking out the 
second sentence and inserting in lieu thereof the following: 
"If the estate of any decedent would not qualify under 
section 2032A of the Internal Revenue Code of 1954 but for 
the amendments described in subparagraph (A) and the 
time for making an election under section 2032A with 
respect to such estate would (but for this sentence) expire 
after July 28, 1980, the time for making such election shall 
not expire before the close of February 16,1982." 
(CXi) Subparagraph (C) of section 421(kX5) of the Eco-
nomic Recovery Tax Act of 1981 is amended by striking out 
"within 6 months after the date of the enactment of this 
Act" and inserting in lieu thereof "at any time before 
February 17,1982". 
(ii) Subparagraph (D) of section 421(kX5) of the Economic 
Recovery Tax Act of 1981 is amended— 
(I) by striking out "within 6 months after such date of 
enactment" and inserting in lieu thereof "before Feb-
ruary 17,1982", and 
(II) by striking out "the date 6 months after such date 
of enactment" and inserting in lieu thereof "February 
17,1982". 
95 Stat. 314. 
(c) AMENDMENTS RELATED TO SECTION 422.— 
26 use 6166. 
(1) Paragraph (3) of section 6166(b) (relating to farm houses 
and certain other structures taken into account) is amended by 
striking out "65-percent requirement" and inserting in lieu 
thereof "35-percent requirement". 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2383 
(2) Clauses (i) and (ii) of the first sentence of section 
6166(gXl)(B) (relating to disposition of interest; withdrawal of 26 USC 6166. 
funds from business) are amended to read as follows: 
"(i) the redemption of such stock, and the withdrawal 
of money and other property distributed in such 
redemption, shall not be treated as a distribution or 
withdrawal for purposes of subparagraph (A), and 
"(ii) for purposes of subparagraph (A), the value of 
the interest in the closely held business shall be consid-
ered to be such value reduced by the value of the stock 
redeemed." 
(d) AMENDMENTS RELATED TO SECTION 424.— 
95 Stat. 317. 
(1) COORDINATION WITH SECTION 6166 (a) (i).— 
(A) IN GENERAL.—Subsection (d) of section 2035 (relating 26 USC 2035. 
to adjustments for gifts made within 3 years of decedent's 
death) is amended by adding at the end thereof the follow-
ing new paragraph: 
"(4) 
COORDINATION 
OF 
3-YEAR 
RULE 
WITH 
SECTION 
6166(a)(1).—An estate shall be treated as meeting the 35-
percent of adjusted gross estate requirement of section 6166(a)(1) 
only if the estate meets such requirement both with and with-
out the application of paragraph (1)." 
(B) CROSS REFERENCE.—Subsection (j) of section 6166 26 USC 6166. 
(relating to extension of time for payment of estate tax 
where estate consists largely of interest in closely held 
business) is amended by adding at the end thereof the 
following new paragraph: 
"(5) TRANSFERS WITHIN 3 YEARS OF DEATH.— 
"For special rule for qualifying an estate under this section where prop-
erty has been transferred within 3 years of decedent's death, see section 
2035(d)(4)." 
(C) CONFORMING AMENDMENT.—Paragraph (3) of section 
2035(d) is amended by striking out subparagraph (C), by 
adding "and" at the end of subparagraph (B), and by redes-
ignating subparagraph (D) as subparagraph (C). 
(2) EXCEPTIONS FOR CERTAIN TRANSFERS.—Paragraph (2) of 
section 2035(d) (relating to exceptions for certain transfers) is 
amended— 
(A) by inserting "of this subsection and paragraph (2) of 
subsection (b)" after "Paragraph (1)", and 
(B) by striking out "2041,". 
(3) ELECTION TO HAVE AMENDMENTS NOT APPLY.— 
26 use 2501 
(A) In the case of any decedent— 
note, 
(i) who dies before August 13,1984, and 
(ii) who made a gift (before August 13, 1981, and 
during the 3-year period ending on the date of the 
decedent's death) on which tax imposed by chapter 12 
of the Internal Revenue Code of 1954 has been paid 26 USC 2501 et 
before April 16,1982, 
^^ 
such decedent's executor may make an election to have 
subtitle B of such Code (relating to estate and gift taxes) 26 USC 2001. 
applied with respect to such decedent without regard to any 
of the amendments made by title IV of the Economic 
Recovery Tax Act of 1981. 
96 STAT. 2384 
PUBLIC LAW 97-448—JAN. 12, 1983 
(B) An election under subparagraph (A) shall be made at 
such time and in such manner as the Secretary of the 
Treasury or his delegate shall prescribe. 
(C) An election under subparagraph (A), once made, shall 
be irrevocable. 
95 Stat. 318. 
(e) AMENDMENT RELATED TO SECTION 426.—Paragraph (3) of sec-
26 use 2518. 
tion 2518(c) (relating to disclaimers) is amended by striking out "For 
purposes of subsection (a), a" and inserting in lieu thereof "A". 
SEC. 105. AMENDMENTS RELATED TO TITLE V OF THE ACT. 
95 Stat. 323. 
(a) AMENDMENTS RELATED TO SECTION 501.— 
(1) Loss COMPUTED WITH RESPECT T
O UNRECOGNIZED GAIN.— 
26 use 1092. 
(A) IN GENERAL.—Subparagraph (A) of section 1092(a)(1) 
(relating to recognition of loss in case of straddles, etc.) is 
amended by striking out "unrealized gain" and inserting in 
lieu thereof "unrecognized gain". 
(B) UNRECOGNIZED GAIN DEFINED.—So much of paragraph 
(8) of section 1092(a) as precedes subparagraph (B) thereof is 
amended to read as follows: 
"(3) UNRECOGNIZED GAIN.—For purposes of this subsection— 
"(A) IN GENERAL.—The term 'unrecognized gain' means— 
"(i) in the case of any position held by the taxpayer 
as of the close of the teixable year, the amount of gain 
which would be taken into account with respect to such 
position if such position were sold on the last business 
day of such taxable year at its fair market value, and 
"(ii) in the case of any position with respect to which, 
as of the close of the taxable year, gain has been 
realized but not recognized, the amount of gain so 
realized." 
(C) REPORTING OF GAIN.—Subclauses (I) and (II) of section 
1092(aX3XBXi) (relating to reporting of gain) are amended to 
read as follows: 
"(I) each position (whether or not part of a strad-
dle) with respect to which, as of the close of the 
taxable year, there is unrecognized gain, and 
"(II) the amount of such unrecognized gain." 
(D) CLERICAL AMENDMENTS.— 
26 use 6653. 
(i) Section 6653 (relating to failure to pay tax) is 
amended by redesignating subsection (g) as subsection 
(f). 
(ii) The subsection heading of subsection (f) of section 
6653 (as redesignated by clause (i)) is amended by strik-
ing out "UNREAUZED" and inserting in lieu thereof 
"UNRECOGNIZED". 
(2) CLARIFICATION OF GENERAL RULE UMITING RECOGNITION OF 
LOSS.—Subparagraph (A) of section 1092(aXl) is amended by 
striking out "which—" and all that follows and inserting in lieu 
thereof the following: "which were offsetting positions with 
respect to 1 or more positions from which the loss arose." 
(3) COORDINATION WITH SECTION 1256.—Paragraph (4) of sec-
tion 1092(d) (relating to special rule for regulated futures con-
tracts) is amended to read as follows: 
"(4) SPECIAL RULE FOR REGULATED FUTURES CONTRACTS.—In the 
case of a straddle at least 1 0)ut not all) of the positions of which 
are regulated futures contracts, the provisions of this section 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2385 
shall apply to any regulated futures contract and any other 
position making up such straddle." 
(4) CLERICAL AMENDMENT.—Subparagraph (C) of section 
1092(cX2) (relating to offsetting positions) is amended by striking 26 USC 1092. 
out "subsection (aXBXB)" and inserting in lieu thereof "subsec-
tion (aX2XB)". 
(b) AMENDMENTS RELATED TO SECTION 502.— 
95 Stat. 327. 
(1) IN GENERAL.—Clause (ii) of section 263(gX2XA) (defining 26 USC 263. 
interest and carrying charges) is amended to read as follows: 
"(ii) all other amounts (including charges for tempo-
rary use of the personal property in a short sale, or to 
insure, store, or transport the personal property) paid 
or incurred to carry the personal property, over". 
(2) EFFECTIVE DATE.—The amendment made by paragraph (1) 26 USC 263 note, 
shall apply to property acquired, and p>ositions established, by 
the taxpayer after September 22, 1982, in taxable years ending 
after such date. 
(c) AMENDMENTS RELATED TO SECTION 503.— 
95 Stat. 327. 
(1) TRANSFERS OF RIGHTS AND OBLIGATIONS.—Subsection (c) of 
section 1256 (relating to regulated futures contracts marked to 26 USC 1256. 
market) is amended to read as follows: 
"(c) TERMINATIONS, ETC.— 
"(1) IN GENERAL.—The rules of paragraphs (1), (2), and (3) of 
subsection (a) shall also apply to the termination (or transfer) 
during the taxable year of the taxpayer's obligation (or rights) 
with respect to a regulated futures contract by offsetting, by 
taking or making delivery, or otherwise, 
"(2) SPECIAL RULE WHERE TAXPAYER TAKES DEUVERY ON PART 
OF STRADDLE.—If— 
"(A) 2 or more regulated futures contracts are part of a 
straddle (as defined in section 1092(c)), and 
"(B) the taxpayer takes delivery under any of such 
contracts, 
then, for purposes of this section, each of the other such con-
tracts shall be treated as terminated on the day on which the 
taxpayer took delivery. 
"(3) FAIR MARKET VALUE TAKEN INTO ACCOUNT.—For purposes 
of this subsection, fair market value at the time of the termina-
tion (or transfer) shall be taken into account." 
(2) IDENTIFICATION OF MIXED STRADDLES.—Subparagraph (B) of 
section 1256(dX4) (defining mixed straddles) is amended by strik-
ing out "such position" and inserting in lieu thereof "the first 
regulated futures contract forming part of the straddle". 
(3) 
ACTIVE MANAGEMENT WITH RESPECT TO SYNDICATES.— 
Clause (v) of section 1256(eX3XC) is amended by inserting "(by 
regulations or otherwise)" after "determines". 
(4) HOLDING PERIOD.—Paragraph (8) of section 1223 (relating 26 USC 1223. 
to holding period of property) is amended by inserting "(other 
than a commodity futures contract to which section 1256 
applies)" after "commodity futures contract" the first place it 
appears. 
(5) 
FOREIGN CURRENCY AND CASH SETTLEMENT CONTRACTS 
MARKED TO MARKET,— 
(A) CASH SETTLEMENT CONTRACTS.—Subsection (b) of sec-
tion 1256 (defining regulated futures contract) is amended 
by striking out paragraph (1) and by redesignating para-
graphs (2) and (3) as paragraphs (1) and (2), respectively. 
96 STAT. 2386 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 use 1256. 
(B) FOREIGN CURRENCY CONTRACTS.—Subsection O
b
) of sec-
tion 1256 (as amended by subparagraph (A)) is amended by 
adding at the end thereof the following new sentence: 
"Such term includes any foreign currency contract." 
(C) FOREIGN CURRENCY CONTRACT DEFINED.—Section 1256 
is amended by adding at the end thereof the following new 
subsection: 
"(g) FOREIGN CURRENCY CONTRACT DEFINED.— 
"(1) FOREIGN CURRENCY CONTRACT.—For purposes of this sec-
tion, the term 'foreign currency contract' means a contract— 
"(A) which requires delivery of a foreign currency which 
is a currency in which positions are also traded through 
regulated futures contracts, 
"(B) which is traded in the interbank market, and 
"(C) which is entered into at arm's length at a price 
determined by reference to the price in the interbank 
market. 
Regulations. 
"(2) REGULATIONS.—The Secretary shall prescribe such regu-
lations as may be necessary or appropriate to carry out the 
purposes of paragraph (1), including regulations excluding from 
the application of paragraph (1) any contract (or type of con-
tract) if its application thereto would be inconsistent with such 
purposes." 
26 use 1256 
(D) EFFECTIVE DATES.— 
note. 
(i) IN GENERAL.—Except as provided in clauses (ii) 
and (iii), the amendments made by subparagraphs (B) 
and (C) shall apply only with respect to contracts 
entered into after May 11,1982. 
(ii) ELECTION BY TAXPAYER OF RETROACTIVE APPLICA-
TION.— 
(I) RETROACTIVE APPLICATION.—If the taxpayer so 
elects, the amendments made by subparagraphs (B) 
and (C) shall apply as if included within the 
amendments made by title V of the Economic Re-
95 Stat. 323. 
covery Tax Act of 1981. 
(II) ADDITIONAL CHOICES WITH RESPECT TO 198I.— 
If the taxpayer held a foreign currency contract 
after December 31, 1980, and before June 24, 1981, 
and such taxpayer makes an election under sub-
clause (I), such taxpayer may revoke any election 
made under section 508(c) or 509(a) of such Act, 
and may make an election under section 508(c) or 
509(a) of such Act. 
(III) ADDITIONAL CHOICES APPLY TO ALL REGULAT-
ED FUTURES CONTRACTS.—Except as provided in 
subclause (IV), in the case of any taxpayer who 
makes an election under subclause (I), any election 
under section 508(c) or 509(a) of such Act or any 
revocation of such an election shall apply to all 
regulated futures contracts (including foreign cur-
rency contracts). 
(IV) SECTION 509(a) (3) AND (4) NOT TO APPLY TO 
FOREIGN 
CURRENCY CONTRACTS.—Paragraphs 
(3) 
and (4) of section 509(a) of such Act shall not apply 
to any foreign currency contract. 
(V) TIME FOR MAKING ELECTION OR REVOCATION.— 
Any election under subclause (I) and any election 
or revocation under subclause (II) may be made 
only within the 90-day period beginning on the 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2387 
date of the enactment of this Act. Any such action, 
once taken, shall be irrevocable. 
(VI) DEFINITIONS.—For purposes of this clause, 
the terms "regulated futures contract" and "for-
eign currency contract" have the same respective 
meanings as when used in section 1256 of the 
Internal Revenue Code of 1954 (as amended by this 
Act), 
(iii) ELECTION BY TAXPAYER WITH RESPECT TO POSITIONS 
HELD DURING TAXABLE YEARS ENDING AFTER MAY 11, 
1982.—In lieu of the election under clause (ii), a taxpay-
er may elect to have the amendments made by subpar-
agraphs (B) and (C) applied to all positions held in 
taxable years ending after May 11, 1982, except that 
the provisions of section 509(a) (3) and (4) of the Eco-
nomic Recovery Tax Act of 1981 shall not apply. 
(6) CLARIFICATION OF EXTENSION.—Paragraph (3) of section 
509(b) of the Economic Recovery Tax Act of 1981 is amended to 
26 use 1256 
read as follows: 
^°^-
"(3) the fair market value on the last business day of the 
preceding taxable year for each regulated futures contract 
described in paragraph (2), and". 
(7) CLERICAL AMENDMENT.—Subparagraph (A) of section 
1212(cX4) (defining net commodities futures loss) is amended by 
26 USC 1212. 
striking out "and positions to which section 1256 applies". 
(d) AMENDMENT RELATED TO SECTION 506.— 
95 Stat. 332. 
(1) REQUIREMENT THAT OPTIONS BE DESIGNATED AS HELD FOR 
INVESTMENT.—Section 1236 (relating to dealers in securities) is 
26 USC 1236. 
amended by adding at the end thereof the following new 
subsection: 
"(e) SPECIAL RULE FOR OPTIONS.—For purposes of subsection (a), 
any security acquired by a dealer pursuant to an option held by such 
dealer may be treated as held for investment only if the dealer, 
before the close of the day on which the option was acquired, clearly 
identified the option on his records as held for investment. For 
purposes of the preceding sentence, the term 'option' includes the 
right to subscribe to or purchase any security." 
(2) EFFECTIVE DATE.—The amendment made by paragraph (1) 26 USC 1236 
shall apply to securities acquired after September 22, 1982, in 
"°**-
taxable years ending after such date. 
(e) AMENDMENT RELATED TO SECTION 507.—Section 1234A (relating 
95 Stat. 333. 
to gains or losses from certain terminations) is amended to read as 
^^ ^ ^ 1234A. 
follows: 
"SEC. 1234A. GAINS OR LOSSES FROM CERTAIN TERMINATIONS. 
"Gain or loss attributable to the cancellation, lapse, expiration, or 
other termination of— 
"(1) a right or obligation with respect to personal property (as 
defined in section 1092(dXl)) which is (or on acquisition would 
be) a capital asset in the hands of the taxpayer, or 
"(2) a regulated futures contract (as defined in section 1256) 
not described in paragraph (1) which is a capital asset in the 
hands of the taxpayer, 
shall be treated as gain or loss from the sale of a capital asset." 
SEC. 106. AMENDMENTS RELATED TO TITLE VI OF THE ACT. 
(a) AMENDMENTS RELATED TO SECTION 601.— 
95 Stat. 335. 
(1) PRODUCTION FROM TRANSFERRED PROPERTY.—Paragraph (3) 
of section 6429(d) (relating to production from transferred prop- 
26 use 6429. 
erty) is amended by striking out subparagraph (D). 
97-200 O—84—pt. 2 
3.3 : QL3 
96 STAT. 2388 
PUBLIC LAW 97-448—JAN. 12, 1983 
(2) ALLOCATION OF ROYALTY LIMIT.—Subparagraph (B) of sec-
26 use 4994. 
tion 4994(fX3) (relating to allocation of royalty limit) is amended 
by striking out "subsection (b)(1)" and inserting in lieu thereof 
"paragraph (2XA)". 
(3) QuAUFiED FAMILY CORPORATION DEFINED.—Subparagraph 
26 use 6429. 
(B) of section 6429(d)(4) is amended by striking out "other than 
royalty interests described in paragraph (2)(A)' and inserting in 
lieu thereof "other than royalty interests from which there is 
qualified royalty production determined by treating such corpo-
ration as a qualified royalty owner". 
(4) CREDIT OR REFUND FOR BENEFICIARIES OF TRUST OWNING 
ROYALTY INTERESTS.— 
(A) IN GENERAL.—Subchapter B of chapter 65 (relating to 
rules of special application) is amended by adding at the 
end thereof the following new section: 
26 use 6430. 
"SEC. 6430. CREDIT OR REFUND OF WINDFALL PROFIT TAXES TO CERTAIN 
TRUST BENEFICIARIES. 
"(a) GENERAL RULE.—That portion of the tax imposed by section 
4986 (relating to crude oil windfall profit tax) which is paid by any 
trust with respect to any qualified beneficiary's allocable trust 
production shall be treated as an overpayment of such tax by such 
qualified beneficiary. Any such overpayment shall be credited 
against the tax imposed by section 4986 or refunded to such quali-
fied beneficiary. 
"(b) COORDINATION WITH ROYALTY EXEMPTION.— 
"(1) IN GENERAL.—If the aggregate amount of the allocable 
trust production of any qualified beneficiary for any calendar 
year exceeds such beneficiary's unused exempt royalty limit for 
such calendar year, then the amount treated as an overpayment 
under subsection (a) with respect to such qualified beneficiary 
shall be reduced by an amount which bears the same ratio to 
the amount which (but for this paragraph) would be so treated 
as— 
"(A) the amount of such excess, bears to 
"(B) the aggregate amount of such allocable trust 
production. 
"(2) UNUSED EXEMPT ROYALTY UMIT,—The unused exempt 
royalty limit of any qualified beneficiary for any calendar year 
is the excess o
f
— 
"(A) the number of days in such calendar year, multiplied 
by the limitation in barrels determined under the table 
contained in section 4994(f)(2)(A)(ii), over 
"(B) the amount of exempt royalty oil (within the mean-
ing of section 4994(f))— 
"(i) with respect to which such qualified beneficiary 
is the producer, and 
"(ii) which is removed from the premises during such 
calendar year. 
"(3) ALLOCATION.—Rules similar to the rules of paragraphs 
(2), (3), and (4) of section 6429(c) shall apply to the amount 
determined under paragraph (2)(A). 
"(c) 
ALLOCABLE 
TRUST 
PRODUCTION.—For purposes of this 
section— 
"(1) IN GENERAL.—The term 'allocable trust production' 
means, with respect to any qualified beneficiary, the qualified 
royalty production of any trust which— 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2389 
"(A) is removed from the premises during the calendar 
year, and 
"(B) is allocated to such qualified beneficiary under para-
graph (2). 
"(2) ALLOCATION OF PRODUCTION.— 
"(A) IN GENERAL.—The qualified royalty production of a 
trust for any calendar year shall be allocated between the 
trust and its income beneficiaries as follows: 
"(i) there shall be sdlocated to the trust an amount of 
production based on the amount of any reserve for 
depletion for the calendar year with respect to quali-
fied royalty production, and 
"(ii) production not allocated under clause (i) shall be 
allocated between the trust and the income benefici-
aries in accordance with their respective shares of the 
adjusted distributable net income for the calendar year. 
"(B) DEFINITION AND SPECIAL RULE.—For purposes of this 
paragraph— 
"(i) ADJUSTED DISTRIBUTABLE NET INCOME.—The term 
'adjusted distributable net income* means distributable 
net income (as defined in section 643) for the calendar 
year reduced by the excess (if any) of— 
"(I) any reserve for depletion for such year with 
respect to qualified royalty production, over 
"(II) the amount allowable as a deduction for 
depletion to the trust for such year with respect to 
qualified royalty production, 
"(ii) ALLOCATION PRO RATA FROM EACH UNIT OF PRO-
DUCTION.—Allocations under subparagraph (A) shall be 
treated as made pro rata from each unit of the quali-
fied royalty production. 
"(3) PRODUCTION FROM TRANSFERRED PROPERTY.— 
"(A) IN GENERAL.—The allocable trust production of any 
qualified beneficiary shall not include any production 
attributable to an interest in property which has been 
transferred after June 9,1981, in a transfer which— 
"(i) is described in section 613A(cX9XA), and 
"(ii) is not described in section 613A(cX9XB). 
"(B) EXCEPTIONS.—Subparagraph (A) shall not apply in 
the case of any transfer so long as the transferor and the 
qualified beneficiary are required by subsection (bX3) to 
share the amount determined under subsection (bX2XA). 
The preceding sentence shall apply to the transfer of any 
property only if the production attributable to the property 
was allocable trust production or qualified royalty produc-
tion of the transferor. 
"(d) DEFINITIONS.—For purposes of this section— 
"(1) QUAUFIED BENEFICIARY.—The term 'qualified beneficiary' 
means any individual or estate which is a beneficiary of any 
trust which is a producer. 
"(2) QUAUFIED ROYALTY PRODUCTION.—The term 'qualified 
royalty production' means, with respect to any person, taxable 
crude oil (within the meaning of section 4991(a)) which is attrib-
utable to an economic interest of such person other than an 
operating mineral interest (within the meaning of section 
614(d)). Such term does not include taxable crude oil attributa-
96 STAT. 2390 
PUBLIC LAW 97-448—JAN. 12, 1983 
ble to any overriding royalty interest, production payment, net 
profits interest, or similar interest of the person which— 
"(A) is created after June 9, 1981, out of an operating 
mineral interest in property which is proven oil or gas 
property (within the meaning of section 613A(c)(9)(A)) on 
the date such interest is created, and 
"(B) is not created pursuant to a binding contract entered 
into before June 10,1981. 
"(3) PRODUCER.—The term 'producer' has the meaning given 
to such term by section 4996(a)(1). 
Regulations. 
"(e) REGULATIONS.—The Secretary shall prescribe such regula-
tions as may be necessary or appropriate to carry out the purposes 
of this section." 
(B) ALLOCATION OF LIMITATION BETWEEN EXEMPT ROYALTY 
OIL AND A
L
L
O
C
A
B
L
E TRUST PRODUCTION.—Paragraph (2) of 
26 use 4994. 
section 4994(f) (relating to royalty limit) is amended— 
(i) by striking out "A qualified" in subparagraph (A) 
and inserting in lieu thereof "Except as provided in 
subparagraph (C), a qualified", and 
(ii) by adding at the end thereof the following new 
subparagraph: 
"(C) ELECTION TO INCREASE SECTION 6430 ROYALTY CREDIT 
BY REDUCING EXEMPTION UNDER THIS SUBSECTION.—Any 
qualified royalty owner who is a qualified beneficiary 
(within the meaning of section 6430(d)(1)) for any quarter 
may elect (at such time and in such manner as the Secre-
tary may prescribe by regulations) to reduce by any amount 
the qualified royalty owner's royalty limit determined 
under subparagraph (A) for such quarter (after the applica-
tion of paragraph (3)(B))." 
(C) TECHNICAL AMENDMENT.—Subparagraph (B) of section 
26 use 6654. 
6654(g)(3) (relating to estimated tax computed after applica-
tion of credits against tax) is amended by inserting "or 
6430" after "section 6429". 
(D) CONFORMING AMENDMENT.—The table of sections for 
subchapter B of chapter 65 is amended by adding at the end 
thereof the following new item: 
"Sec. 6430. Credit or refund of windfall profit taxes to certain trust 
beneficiaries." 
26 use 6430 
(E) EFFECTIVE DATE.— 
note. 
(i) IN GENERAL.—Except as provided in clause (ii), the 
amendments made by this paragraph shall apply with 
respect to calendar years beginning after December 31, 
1981. 
(ii) ESTIMATED TAX.—The amendment made by sub-
paragraph (C) shall take effect on January 1, 1982. 
(b) AMENDMENT RELATED TO SECTION 603.—Paragraph (2) of sec-
tion 4994(g) (relating to limitations for certain transferred proper-
ties) is amended by striking out "owned by a person other than an 
independent producer (within the meaning of section 4992(bXl))." 
and inserting in lieu thereof "owned by any person (other than the 
producer) who during the period of ownership after such date was 
not an independent producer (within the meaning of section 
4992(bXl)). The preceding sentence shall not apply to property so 
owned by any person if, at the time of transfer of such property by 
such person, such property was not a proven property (within the 
meaning of section 613A(c)(9)(A))." 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2391 
SEC. 107. AMENDMENTS RELATED TO TITLE VII OF THE ACT, 
(a) AMENDMENTS RELATED TO SECTION 722.— 
95 Stat. 341. 
(1) AGGREGATION OF PROPERTIES.—Subsection (d) of section 
6659 (relating to underpayment must be at least $1,000) is 
26USC6659. 
amended by striking out "the valuation overstatement" and 
inserting in lieu thereof "valuation overstatements". 
(2) CLARIFICATION OF DEFINITION OF VALUATION OVERSTATE-
MENT.—Paragraph (1) of section 6659(c) (defining valuation over-
statement) is amended by striking out "exceeds 150 percent o f 
Eind inserting in lieu thereof 'Is 150 percent or more of. 
(3) CLARIFICATION OF INCREASE IN NEGUGENCE PENALTY.— 
Subparagraph (B) of section 6653(a)(2) (relating to additional 
26USC6653. 
amount for portion attributable to negligence, etc.) is simended 
by inserting "(or, if earlier, the date of the payment of the tax)" 
^ter "assessment of the tax". 
(b) AMENDMENTS RELATED TO SECTION 724.—Subsection (c) of sec- 
95 Stat. 344. 
tion 5761 (relating to application of section 6659) is amended— 
26USC5761. 
(1) by striking out "section 6659(a)" and inserting in lieu 
thereof "section 6660(a)", and 
(2) by striking out "Section 6659" in the heading and inserting 
in lieu thereof Section 6660". 
(c) AMENDMENT RELATING TO SECTION 725.— 
95 Stat. 345. 
(1) Paragraph (1) of section 6654(f) (relating to exception to 
26 USC 6654. 
penalty for failure to pay estimated tax where tax is small 
amount) is amended by striking out "is less than" and inserting 
in lieu thereof ", reduced by the credit allowable under section 
31, is less than". 
(2) Subsection (a) of section 6015 (relating to requirement of 
26 USC 6015. 
declaration of estimated income tax by individuals) is amended 
by striking out "entitled under subsection (b)" each place it 
appears and inserting in lieu thereof "entitled under subsection 
(0^ 
SEC. 108. AMENDMENTS RELATED TO TITLE VIII OF THE ACT. 
(a) AMENDMENT RELATED TO SECTION 802.—Subsection (e) of sec- 
95 Stat. 349. 
tion 120 (relating to termination of exclusion for amounts received 
26 USC 120. 
under qualified group legal service plans) is amended by striking out 
"This section" and inserting in lieu thereof "This section and sec-
tion 501(c)(20)". 
(b) AMENDMENT RELATED TO SECTION 823.—Subparagraph (A) of 
95 Stat. 351. 
section 4942(jX3) is amended by striking out "and" at the end of 
26 USC 4942. 
clause (i) and inserting in lieu thereof "or . 
SEC. 109. EFFECTIVE DATE. 
Except as otherwise provided in this title, any amendment made 
26 USC i note. 
by this title shall take effect £is if it had been included in the 
provision of the Economic Recovery Tax Act of 1981 to which such 
95 Stat. 172. 
amendment relates. 
26 use i note. 
TITLE II—AMENDMENTS RELATED TO 
CRUDE OIL WINDFALL PROFIT TAX ACT 
OF 1980 
SEC. 201. AMENDMENTS RELATED TO WINDFALL PROFIT TAX. 
26 USC 1 note. 
(a) AMENDMENTS TO SECTION 4988.— 
26 use 4988. 
96 STAT. 2392 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 use 4988. 
(1) Paragraph (3) of section 4988(b) (defining taxable income 
from the property) is amended by striking out "purposes of 
paragraph (2) and inserting in lieu thereof "purposes of this 
subsection". 
(2) Clause (ii) of section 4988(b)(3)(C) (relating to taxable 
income reduced by cost depletion) is amended by striking out 
"all taxable periods" and inserting in lieu thereof "all taxable 
years". 
26 use 4989. 
(b) AMENDMENT TO SECTION 4989.—Paragraph (3) of section 4989(b) 
(relating to inflation adjustment) is amended— 
(1) by striking out "paragraphs (1) and (2)" and inserting in 
lieu thereof "paragraphs (IXA) and (2)", and 
(2) by adding at the end thereof the following new sentence: 
"For purposes of applying paragraph (IXB), the revision of the 
price deflator which is most consistent with the revision used 
for purposes of paragraph (1)(A) shall be used." 
26 use 4991. 
(c) AMENDMENT TO SECTION 4991.—Subparagraph (B) of section 
4991(d)(1) (defining tier 2 oil) is amended by striking out "National 
Petroleum Reserve" and inserting in lieu thereof "Navsd Petroleum 
Reserve". 
26 use 4992. 
(d) AMENDMENTS TO SECTION 4992.— 
(1) Subsection (b) of section 4992 (defining independent pro-
ducer) is amended to read as follows: 
"(b) INDEPENDENT PRODUCER DEFINED.—For purposes of this 
section— 
"(1) IN GENERAL.—The term 'independent producer' means, 
with respect to any quarter in any calendar year, any person 
other than a person to whom subsection (c) of section 613A does 
not apply for such calendar year by reason of paragraph (2) 
(relating to certain retailers) or paragraph (4) (relating to cer-
tain refiners) of section 613A(d). 
"(2) RULES FOR APPLYING PARAGRAPHS (2) AND (4) OF SECTION 
613A (d).—For purposes of paragraph (1), paragraphs (2) and (4) 
of section 613A(d) shall be applied by substituting 'calendar 
year' for 'taxable year' each place it appears in such 
paragraphs." 
(2) Paragraph (2) of section 4992(c) (relating to allocation 
where production exceeds independent producer amount) is 
amended— 
(A) by striking out "such person's production for such 
quarter of domestic crude oil' and inserting in lieu thereof 
'such person's qualified production of oil for such quarter", 
(B) by striking out "such person's domestic crude oil" and 
inserting in lieu thereof "such person's qualified production 
of oil", and 
(C) by striking out the last sentence. 
(3) Clause (i) of section 4992(dX3XB) (relating to small 
producer transfer exemption) is amended by striking out "has 
the property" and inserting in lieu thereof "has the interest". 
26 use 4993. 
(e) AMENDMENT TO SECTION 4993.—Subparagraph (B) of section 
4993(cX2) (relating to requirements for qualified tertiary recovery 
project) is amended to read as follows: 
"(B) the date on which the injection of liquids, gases, or 
other matter begins is after May 1979,". 
26 use 4994. 
(f) AMENDMENTS TO SECTION 4994.— 
(1) Subparagraph (A) of section 4994(cX2) (relating to refunds 
for tertiary projects of integrated producers) is amended by 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2393 
striking out "the taxpayer" each place it appears and inserting 
in lieu thereof "the producer". 
(2XA) Paragraph (1) of section 4994(e) (defining exempt Alas- 26 USC 4994. 
kan oil) is amended to read as follows: 
"(1) from a well located north of the Arctic Circle or from a 
reservoir from which oil has been produced in commercial 
quantities through such a well, or". 
(B) Paragraph (2) of section 4994(e) is amended by striking out 
"the divide of the Alaskan-Aleutian range" and inserting in lieu 
thereof "the divides of the Alaska and Aleutian ranges". 
(3)(A) Subparagraph (A) of section 4994(b)(1) (defining quali-
fied charitable interest) is amended— 
(i) by striking out "or" at the end of clause (ii), 
(ii) by striking out "and" at the end of clause (iii) and 
inserting in lieu thereof "or", and 
(iii) bv adding at the end thereof the following new clause: 
(iv) held by an organization described in section 
509(a)(3) which is operated exclusively for the benefit of 
an organization described in— 
"(I) clause (ii), or 
"(II) 
section 
170(b)(l)(A)(ii) 
which 
is 
also 
described in section 170(c)(2), and". 
(B) Subparagraph (B) of section 4994(b)(1) is amended by 
striking out "or (ii)" and inserting in lieu thereof ", (ii), or 
(iv)". 
(C) Paragraph (2) of section 4994(b) is amended— 
(i) by striking out "clause (ii) or (iii)" and inserting in lieu 
thereof "clause (ii), (iii), or (iv)", 
(ii) by striking out "clause (i) or (ii)" each place it appears 
and inserting in lieu thereof "clause (i), (ii), or (iv) , and 
(iii) by inserting ", whichever is applicable," after "para-
graph (1)(A)" each place it appears, 
(g) AMENDMENTS TO SECTION 4995.— 
26 use 4995. 
(1) Subparagraph (A) of section 4995(aX3) (relating to adjust-
ments for withholding errors) is amended— 
(A) by striking out "removed during any calendar year", 
and 
(B) by striking out "removed during the same calendar 
year". 
(2) Paragraph (3) of section 4995(a) is amended by striking out 
subparagraph (C) and by redesignating subparagraph (D) as 
subparagraph (C). 
(3) Subparagraph (B) of section 4995(a)(4) (relating to time 
payment deemed made) is amended by striking out The pro-
ducer" and inserting in lieu thereof "For purposes of this 
chapter (and so much of subtitle F as relates to this chapter), 
the producer". 
(h) AMENDMENTS TO SECTION 4996.— 
26 use 4996. 
(IXA) Paragraph (1) of section 4996(a) (defining producer) is 
amended by redesignating subparagraph (B) as subparagraph 
(C) and by inserting after subparagraph (A) the following new 
subparagraph: 
'(B) NET PROFITS INTERESTS.— 
"(i) IN GENERAL.—Except to the extent otherwise 
provided by regulations, in the case of any property, all 
cost recovery oil covered by a net profits agreement 
(within the meaning of subsection (h)) shall be treated 
96 STAT. 2394 
PUBLIC LAW 97-448—JAN. 12, 1983 
as produced by the parties to such agreement in propor-
tion to their respective shares (determined after reduc-
tion for such cost recovery oil) of the production of the 
crude oil covered by such agreement. 
"(ii) CLAUSE (i) NOT TO APPLY BEFORE PAYOUT.—In the 
case of any property, clause (i) shall only apply for— 
"(I) the first taxable period in which, under the 
agreement with respect to such property, one or 
more persons receives a share described in subsec-
tion (h)(1)(B), and 
"(II) all subsequent taxable periods to which such 
agreement applies.". 
(B) Subparagraph (A) of such paragraph (1) is amended by 
striking out "subparagraph (B)" and inserting in lieu thereof 
"subparagraphs (B) and (C)". 
26 use 4996. 
(C) Section 4996 (relating to other definitions and special 
rules) is amended by redesignating subsection (h) as subsection 
(i) and by inserting after subsection (g) the following new 
subsection: 
"(h) TERMS USED IN SUBSECTION (a)(1)(B).—For purposes of subsec-
tion (a)(lXB) and this subsection— 
"(1) NET PROFITS AGREEMENT.—The term 'net profits agree-
ment' means an agreement entered into (or renewed) after 
March 31, 1982, and providing for sharing part or all of the 
production of crude oil from a property where— 
"(A) 1 or more persons are to be reimbursed for qualified 
costs by the allocation of cost recovery oil, and 
"(B) 1 or more persons are to receive a share of any 
production of crude oil from the property remaining after 
reduction for the cost recovery oil referred to in subpara-
graph (A). 
"(2) COST RECOVERY OIL DEFINED.—The term 'cost recovery oil' 
means crude oil produced from the property which is allocated 
to a person as reimbursement for qualified costs paid or 
incurred with respect to the property. The Secretary shall by 
regulation prescribe rules for allocating the cost recovery oil to 
the oil produced from the property. 
"(3) QUALIFIED COSTS.—The term 'qualified costs' means any 
amount paid or incurred for exploring for, or developing or 
producing, 1 or more oil or gas wells on the property. 
"(4) SCOPE OF AGREEMENT.—A net profits agreement shall be 
treated as covering only shares of production of crude oil held 
by persons who hold economic interests in the property (deter-
mined without regard to subsection (a)(1)(B))." 
26 use 4988. 
(D) Subsection (b) of section 4988 (relating to net income 
limitation on windfall profit) is amended by adding at the end 
thereof the following new paragraph: 
"(6) COST RECOVERY OIL COVERED BY NET PROFITS AGREEMENT.— 
For purposes of paragraph (2), if any person is treated under 
section 4996(a)(1)(B) as the producer of any portion of the cost 
recovery oil covered by a net profits agreement (within the 
meaning of section 4996(h))— 
"(A) such person (and only such person) shall include in 
his gross income from the property the gross income from 
such portion, and 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2395 
"(B) the qualified costs allocable to such portion shall be 
treated as paid or incurred by such person (and only by 
such person)." 
(E) If 90 percent or more of the remaining production referred 26 use 4996 
to in subparagraph (B) of section 4996(hXl) of the Internal '^°^-
Revenue Code of 1954 is to be received by governmental entities, 
and organizations described in clause (i), (ii), or (iii) of section 
4994(b)(1)(A) of such Code, which do not share in the costs 
referred to in subparagraph (A) of such section 4996(hXl), then 
the requirement of paragraph (1) of section 4996(h) of such Code 
that the agreement be entered into (or renewed) after March 31, 
1982, shall not apply. 
(2)(A) Paragraph (1) of section 4996(b) (defining crude oil) is 26 use 4996. 
amended by adding at the end thereof the following new sen-
tence: "In the case of crude oil which is condensate recovered off 
the premises by mechanical separation, such crude oil shall be 
treated as removed from the premises on the date on which it is 
so recovered." 
(B) Paragraph (3) of section 4996(b) (defining domestic) is 
amended by striking out "an oil well" and inserting in lieu 
thereof "a well", 
(i) AMENDMENTS RELATED TO SECTION 4997.— 
26 use 4997. 
(1) IN GENERAL.—Subsection (a) of section 4997 (relating to 
records and information; regulations) is amended by striking 
out "such information" and inserting in lieu thereof "such 
statements and other information". 
(2) PENALTY FOR FAILURE TO MAKE A RETURN.— 
(A) Subsection (a) of section 6652 (relating to failure to file 26 use 6652. 
certain information returns, registration statements, etc.) is 
amended by striking out "or" at the end of subparagraph 
(F) of paragraph (1), by adding "or" at the end of paragraph 
(2), and by inserting after paragraph (2) the following new 
paragraph: 
"(3) to make a return required by section 4997(a) (relating 
to information with respect to windfall profit tax on crude 
oil)," 
(B) Subsection (a) of section 6652 is amended by striking 
out "paragraph (2)" and inserting in lieu thereof "para-
graph (2) or (3)". 
(3) PENALTY FOR FAILURE TO FURNISH CERTAIN STATEMENTS.— 
Paragraph (3) of section 6678 (relating to failure to furnish 26USC6678. 
certain statements) is amended by redesignating subparagraphs 
(A) through (D) as subparagraphs (B) through (E), respectively, 
and by inserting before subparagraph (B) (as so redesignated) 
the following: 
"(A) section 4997(a) (relating to statements with respect to 
windfall profit tax on crude oil),", 
(j) AMENDMENTS TO ESTIMATED TAX PROVISIONS.— 
(1) Paragraph (3) of section 6015(d) (defining estimated tax in 26 use 6015. 
the case of an individual) is amended to read as follows: 
"(3) the amount which the individual estimates as the sum 
of— 
"(A) any credits against tax provided by part IV of sub-
chapter A of chapter 1, and 
26 use 31. 
"(B) to the extent allowed under regulations prescribed 
by the Secretary, any overpajrment of the tax imposed by 
section 4986." 
96 STAT. 2396 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 use 6154. 
(2) Paragraph (2) of section 6154(c) (defining estimated tax in 
the case of a corporation) is amended to read as follows: 
"(2) the amount which the corporation estimates as the sum 
of— 
"(A) any credits against tax provided by part IV of sub-
26 use 31. 
chapter A of chapter 1, and 
"(B) to the extent allowed under regulations prescribed 
by the Secretary, any overpayment of the tax imposed by 
section 4986." 
26 use 6654. 
(3) Subparagraph (B) of section 6654(g)(3) (defining tax) is 
amended to read as follows: 
"(B) to the extent allowed under regulations prescribed 
by the Secretary, any overpajonent of the tax imposed by 
section 
4986 (determined 
without 
regard to section 
4995(a)(4XB))." 
26 use 6655. 
(4) Subparagraph (B) of section 6655(e)(2) (defining tax) is 
amended to read as follows: 
"(B) to the extent allowed under regulations prescribed 
by the Secretary, any overpajonent of the tax imposed by 
section 
4986 (determined 
without 
regard to section 
4995(a)(4XB))." 
SEC. 202. MISCELLANEOUS PROVISIONS. 
26 use 44D. 
(a) AMENDMENT TO SECTION 44D.—Subsection (f) of section 44D 
(relating to application of section) is amended by striking out 
"December 3, 1979" each place it appears and inserting in lieu 
thereof "December 31,1979'\ 
26 use 193. 
(b) AMENDMENT TO SECTION 193.—Paragraph (1) of section 193(b) 
(defining qualified tertiary injectant expenses) is amended by strik-
ing out 'during the taxable year". 
26 use 48. 
(c) AMENDMENT TO SECTION 223 OF THE ACT.—Paragraph (1) of 
section 223(a) of the Crude Oil Windfall Profit Tax Act of 1980 
(relating to boilers fueled by petroleum coke or petroleum pitch) is 
amended by striking out "Paragraph (10)" and inserting in lieu 
thereof "Subparagraph (A) of paragraph (10)". 
26 use 613A. 
(d) AMENDMENTS TO SECTION 613A.— 
(1) Subparagraph (E) of section 613A(cX10) is amended by 
inserting 'and, in the case of any property, also includes neces-
sary production equipment for such property which is in place 
when the property is transferred" before the period at the end 
thereof. 
(2) Paragraph (2) of section 613 
A(d) (relating to exclusion of 
retailers) is amended by inserting "(excluding bulk sales of 
aviation fuels to the Department of Defense)" sifter "any prod-
uct derived from oil or natural gas" the first place it appears. 
26 u s e 44E note. 
(e) AMENDMENT TO SECTION 232 OF THE ACT.—SubseCtiOH (h) of 
section 232 of the Crude Oil Windfall Profit Tax Act of 1980 (relating 
to effective dates) is amended by adding at the end thereof the 
following new paragraph: 
"(4) ADDITION OF DENATURANTS.—Notwithstanding paragraph 
(1), the provisions of section 44E(dX4XB) of such Code, as added 
by this section, shall take effect on April 2,1980." 
(f) CERTAIN LONG-TERM PROJECTS.—Subclause (I) of section 
26 use 46. 
46(aX2)(CXiii) is amended to read as follows: 
"(I) before Jginuary 1, 1983, all engineering stud-
ies in connection with the commencement of the 
construction of the project have been completed 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2397 
and all environmental and construction permits 
required under Federal, State, or local law in con-
nection with the commencement of the construc-
tion of the project have been applied for, and". 
SEC. 203. EFFECTIVE DATES. 
(a) GENERAL RULE.—Except as provided in subsection (b), any 
26 USC 4988 
amendment made by this title shall take effect as if it had been 
^°^-
included in the provision of the Crude Oil Windfall Profit Tax Act of 
1980 to which such amendment relates. 
26 USC 1 note. 
(b) EXCEPTIONS.— 
26 use 4988 
(1) DEFINITION OF INDEPENDENT PRODUCER.—The amendment 
"°*^-
made by section 201(d)(1) shall take effect on January 1, 1983. 
(2) PENALTY PROVISION.—The amendments made by section 
201(i) shall apply with respect to returns and statements the 
due dates for which (without regard to extensions) are after the 
date of the enactment of this Act. 
(3) AMENDMENTS TO SECTION 613A.— 
26 USC 613A. 
(A) The amendment made by section 202(d)(1) shall apply 
to transfers in taxable years ending after December 31, 
1974, but only for purposes of applying section 613A of the 
Internal Revenue Code of 1954 to periods after December 
31, 1979. 
(B) The amendment made by section 202(dX2) shall apply 
to bulk sales after September 18,1982. 
(4) N o WITHHOLDING BY REASON OF CONDENSATE PROVISION.— 
No withholding of tax shall be required under section 4995 of 
the Internal Revenue Code of 1954 by reason of the amendment 
made by section 201(h)(2)(A) of this Act before the date on which 
regulations with respect to such amendment are published in 
the Federal Register. 
(c) No INTEREST FOR PAST PERIODS RESULTING FROM AMENDMENTS 
26 use 4996 
RELATING TO COST RECOVERY OIL.—No interest shall be paid or 
^°^-
credited with respect to the credit or refund of any overpayment of 
tax imposed by the Internal Revenue Code of 1954, and no interest 
shall be assessed or collected with respect to any underpayment of 
tax imposed by such Code, for any period before the date which is 60 
days after the date of the enactment of this Act, to the extent that 
such overpayment or underpayment is attributable to the amend-
ments made by section 201(h)(1). 
TITLE III—AMENDMENTS RELATED TO 
INSTALLMENT SALES REVISION ACT OF 
1980, ETC. 
SEC. 301. CLARIFICATION OF ATTRIBUTION RULES IN SECTION 1239. 
(a) DEFINITION OF RELATED PERSONS.—Subsection (b) of section 
1239 (defining related persons) is amended to read as follows: 
26 USC 1239. 
"(b) RELATED PERSONS.—For purposes of subsection (a), the term 
'related persons' means— 
"(1) a husband and wife, and 
"(2) a person and all entities which are 80-percent owned 
entities with respect to such person." 
96 STAT. 2398 
PUBLIC LAW 97-448—JAN. 12, 1983 
(b) 80-PERCENT OWNED ENTITY DEFINED.—Subsection (c) of section 
26 use 1239. 
1239 (defining 80-percent owned entity) is amended to read as 
follows: 
"(c) 80-PERCENT OWNED ENTITY DEFINED.— 
"(1) GENERAL RULE.—For purposes of this section, the term 
'80-percent owned entity' means, with respect to any person— 
"(A) a corporation 80 percent or more in value of the 
outstanding stock of which is owned (directly or indirectly) 
by or for such person, and 
"(B) a partnership 80 percent or more of the capital 
interest or profits interest in which is owned (directly or 
indirectly) by or for such person. 
"(2) CONSTRUCTIVE OWNERSHIP.—For purposes of subpara-
graphs (A) and (B) of paragraph (1), the principles of section 318 
shall apply, except that— 
"(A) the members of an individual's family shall consist 
only of such individual and such individual's spouse, 
"(B) paragraph (2XC) of section 318(a) shall be applied 
without regard to the 50-percent limitation contained 
therein, and 
"(C) paragraph (3) of section 318(a) shall not apply." 
SEC. 302. CORRECTION OF CLERICAL ERROR IN SECTION 453B(d)(2). 
26 use 453B. 
Paragraph (2) of section 453B(d) (relating to liquidations to which 
section 337 applies) is amended by striking out "to the extent that 
under paragraph (1)" and inserting in lieu thereof "to the extent 
that under subsection (a)". 
SEC. 303. CLARIFICATION OF INSTALLMENT SALE RULES WITH RESPECT 
TO LIKE-KIND EXCHANGES. 
26 use 453. 
Subparagraph (C) of section 453(fK6) (relating to like-kind 
exchanges) is amended by inserting ", when used in any provision 
of this section other than subsection (b)(1)," after "the term 
'payment' ". 
SEC. 304. TECHNICAL CORRECTIONS TO BANKRUPTCY TAX ACT OF 1980. 
(a) CORRECTION OF CLERICAL ERROR RELATING TO CROSS REFER-
26 use 443. 
ENCE.—The last sentence of subsection (e) of section 443 (relating to 
returns for a period of less than 12 months) is amended by striking 
out "section 1398(dX3)(E)" and inserting in lieu thereof "section 
1398(dX2XE)". 
(b) CLARIFICATION OF CERTAIN TRANSFERS OF ASSETS IN SUBPARA-
GRAPH (G) REORGANIZATIONS.—The last sentence of subparagraph 
26 use 368. 
(C) of section 368(aX2) (relating to special rules relating to definition 
of reorganization) is amended by striking out "or stock". 
(c) TRANSFER OF ASSETS IN A 'TITLE 11 OR SIMILAR CASE.—Clause (i) 
of section 368(aX3XB) (relating to transfer of assets in a title 11 or 
similar case) is amended by striking out "such corporation" and 
inserting in lieu thereof "any party to the reorganization". 
(d) RECAPTURE OF GAIN ON SUBSEQUENT SALE OF STOCK.—Subpara-
26 use 108. 
graph (A) of section 108(eX7) (relating to recapture of gain on 
subsequent sale of stock) is amended— 
(1) by striking out "and" at the end of clause (i), 
(2) by striking out the period at the end of clause (ii) and 
inserting in lieu thereof ", and", and 
(3) by inserting after clause (ii) the following new clause: 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2399 
"(iii) an exchange of such stock qualifying under 
section 354(a), 355(a), or 356(a) shall be treated as an 
exchange to which section 1245(bX3) applies." 
SEC. 
3
0
5
. 
MISCELLANEOUS 
AMENDMENTS. 
(a) Effective Date of Section 404A.—Subparagraph (E) of section 
26 USC 404A 
2(e)(2) of Public Law 96-603 is amended by striking out "was barred" 
note. 
and inserting in lieu thereof "was not barred". 
(b) REDESIGNATION OF SECTION 194.— 
(1) The section 194 which relates to contributions to employer 
26 USC 194, 
liability trusts is hereby redesignated as section 194A. 
^^^• 
(2) The table of sections for part VI of subchapter B of chapter 
1 is amended by striking out the item relating to the section 194 
which relates to contributions to employer liability trusts and 
inserting in lieu thereof the following: 
"Sec. 194A. Contributions to employer liability trusts." 
(c) AMENDMENT RELATED TO SECTION 421 OF THE REVENUE ACT OF 
1978.—The last sentence of section 55(bXl), as in effect on the day 
26 use 55. 
before the date of the enactment of the Tax Equity and Fiscal 
Responsibility Act of 1982, is amended by striking out "subpara- 
Ante, p. 324. 
graph (A)" and inserting in lieu thereof "subparagraph (A) (and in 
determining the sum of itemized deductions for purposes of subpara-
graph (C)(i))". 
(d) AMENDMENTS RELATED TO SUBCHAPTER S REVISION ACT OF 
(1)(A) Section 6 of the Subchapter S Revision Act of 1982 is 
Ante,^. 1697. 
amended by adding at the end thereof the following new 
^^^ 
^^^^ 
subsection: 
"(f) TAXABLE YEAR OF S CORPORATIONS.—Section 1378 of the Inter-
nal Revenue Code of 1954 (as added by this Act) shall take effect on 
the day after the date of the enactment of this Act. For purposes of 
applying such section, the reference in subsection (aX2) of such 
section to an election under section 1362(a) shall include a reference 
to an election under section 1372(a) of such Code as in effect on the 
day before the date of the enactment of this Act." 
(B) If— 
26 USC 1361 
(i) after September 30, 1982, and on or before the date of '^^^^ 
the enactment of this Act, stock or securities were trans-
ferred to a small business corporation (as defined in section 
1361(b) of the Internal Revenue Code of 1954 as amended by 
the Subchapter S Revision Act of 1982) in a transaction to 
which section 351 of such Code applies, and 
(ii) such corporation is liquidated under section 333 of 
such Code before March 1,1983, 
then such stock or securities shall not be taken into account 
under section 333(eX2) of such Code. 
(2) Subsection (e) of section 1368 (relating to distributions) is 
Ante, p. 1680. 
amended by adding at the end thereof the following new 
paragraph: 
"(3) ELECTION TO DISTRIBUTE EARNINGS FIRST.— 
"(A) IN GENERAL.—An S corporation may, with the con-
sent of all of its affected shareholders, elect to have para-
graph (1) of subsection (c) not apply to all distributions 
made during the taxable year for which the election is 
made. 
26 u s e 7448 
note 
96 STAT. 2400 
PUBLIC LAW 97-448—JAN. 12, 1983 
"(B) AFFECTED SHAREHOLDER.—For purposes of subpara-
graph (A), the term 'affected shareholder' means any share-
holder to whom a distribution is made by the S corporation 
during the taxable year." 
Ante, p. 1683. 
(3) Subsection (d) of section 1374 (relating to determination of 
taxable income) is amended by striking out "subsections (aX2) 
and (bK2)" and inserting in lieu thereof "this section". 
26 use 221. 
(4) Subparagraph (B) of section 221(bXl) is amended by strik-
ing out "(9),". 
26 use 4975. 
(5) The last sentence of section 4975(d) is amended by striking 
out "section 1379" and inserting in lieu thereof "section 1379, as 
in effect on the day before the date of the enactment of the 
Subchapter S Revision Act of 1982". 
(e) AMENDMENT RELATED TO MISCELLANEOUS REVENUE ACT OF 
^^"TT'^R iT?o• 
1982.—Subsection (c) of section 105 of the Miscellaneous Revenue 
Act of 1982 is amended by striking out "the amendment made by 
subsection (a)" and inserting in lieu thereof "the amendment made 
by subsection (b)". 
SEC. 306. TECHNICAL AMENDMENTS TO THE REVENUE PROVISIONS OF 
THE TAX EQUITY AND FISCAL RESPONSIBILITY ACT OF 1982. 
(a) AMENDMENTS RELATED TO TITLE IL— 
Ante, p. 411. 
(1) AMENDMENTS RELATED TO SECTION 201.— 
(A) Section 201 of the Tax Equity and Fiscal Responsi-
bility Act of 1982 is amended— 
(i) by redesignating the second subsection (c) as sub-
section (d), and 
26 use 56 note. 
(ii) by striking out "subsection (cXD" in subsection 
(eX2) and inserting in lieu thereof "subsection (dXD". 
26 use 55. 
(B) Clause (ii) of section 55(eX5XB) (defining qualified 
investment income) is amended by striking out "net capital 
gain" and inserting in lieu thereof "capital gain net 
income". 
(C) Subparagraph (B) of section 55(dX2) (relating to adjust-
ments to net operating loss computation) is amended by 
striking out "subparagraph (A)" and inserting in lieu there-
of "paragraph (1)". 
Ante, p. 423. 
(2) AMENDMENT RELATED TO SECTION 204.—Paragraph (1) of 
26 use 291. 
section 291(a) (relating to 15-percent reduction for certain pref-
erence items) is amended by adding at the end thereof the 
following new sentence: "Under regulations prescribed by the 
Secretary, the provisions of this paragraph shall not apply to 
the disposition of any property to the extent section 1250(a) does 
not apply to such disposition by reason of section 1250(d)." 
Ante. p. 427. 
(3) AMENDMENT RELATED TO SECTION 205.—Paragraph (3) of 
26 use 48. 
section 48(q) (relating to b£isis adjustment to section 38 property) 
is amended by striking out "paragraphs (1) and (2)" and insert-
ing in lieu thereof "paragraphs (1) and (2) of this subsection and 
paragraph (5) of subsection (d)". 
Ante, p. 432. 
(4) AMENDMENTS RELATED TO SECTION 208.— 
(A) Subsection (d) of section 208 of such Act is amended— 
26 use 168 note. 
(i) by striking out "described in section 1381(a)" in 
paragraph (3XEXi) and inserting in lieu thereof 
"engaged in the furnishing of electric energy to persons 
in rural areas", and 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2401 
(ii) by inserting ", or section 168(fX8XJ) of such Code, 26 USC168 note, 
as added by subsection (b)(4)" after "as added by subsec-
tion (aXD" in paragraph (5) thereof. 
(B) Subsection (d) of section 208 of such Act (relating to 26 USC 168 note, 
effective dates) is amended by adding at the end thereof the 
following new paragraph: 
"(7) COORDINATION WITH AT RISK RULES.—Subparagraph (J) of 
section 168(f)(8) of the Internal Revenue Code of 1954 (as added 
by subsection (b)(4)) shall take effect as provided in such 
subparagraph (J)." 
(C) Subparagraph (C) of section 208(d)(3) of such Act 26 USC 168 note, 
(defining 
transitional 
safe harbor 
lease property) is 
amended to read as follows: 
"(C) AUTOMOTIVE MANUFACTURING PROPERTY.— 
"(i) IN GENERAL.—Property is described in this sub-
paragraph i
f
— 
"(I) such property is used principally by the tax-
payer directly in connection with the trade or 
business of the taxpayer of the manufacture of 
automobiles or light-duty trucks, 
"(II) such property is automotive manufacturing 
property, and 
"(III) such property would be described in sub-
paragraph (A) if 'October 1' were substituted for 
'January 1'. 
"(ii) LIGHT-DUTY TRUCK.—For purposes of this subpar-
agraph, the term 'light-duty truck' means any truck 
with a gross vehicle weight of 13,000 pounds or less. 
Such term shall not include any truck tractor. 
"(iii) AUTOMOTIVE MANUFACTURING PROPERTY.—For 
purposes of this subparagraph, the term 'automotive 
manufacturing property' means machinery, equipment, 
and special tools of the type included in the former 
asset depreciation range guideline classes 37.11 and 
37.12. 
"(iv) SPECIAL TOOLS USED BY CERTAIN VENDORS.—For 
purposes of this subparagraph, any special tools owned 
by a taxpayer described in subclause (I) of clause (i) 
which are used by a vendor solely for the production of 
component parts for sale to the taxpayer shall be 
treated as automotive manufacturing property used 
directly by such taxpayer." 
(5) AMENDMENT RELATED TO SECTION 211.—Paragraph (2) of Ante, p. 448. 
section 211(e) of the Tax Equity and Fiscal Responsibility Act of 26 USC 907 note. 
1982 (relating to effective date for foreign tax credit for taxes on 
oil and gas income) is amended to read as follows: 
"(2) Retention of old sections 907(b) and 904(f)(4) where tax-
payer had separate basket foreign loss.— 
"(A) IN GENERAL.—If, after applying old sections 907(b) 
and 904(fK4) to a taxable year beginning before January 1, 
1983, the taxpayer had a separate basket foreign loss, such 
loss shall not be recaptured from income of a kind not 
taken into account in computing the amount of such sepa-
rate basket foreign loss more rapidly than ratably over the 
8-year period beginning with the first taxable year begin-
ning after December 31,1982. 
"(B) DEFINITIONS.—For purposes of this paragraph— 
96 STAT. 2402 
PUBLIC LAW 97-448—JAN. 12, 1983 
"(i) The term 'separate basket foreign loss' means 
any foreign loss attributable to activities taken into 
account (or not taken into account) in determining 
foreign oil related income (as defined in old section 
907(c)(2)). 
"(ii) An 'old' section is such section as in effect on the 
day before the date of the enactment of this Act." 
Ante, p. 478. 
(6) AMENDMENTS RELATED TO SECTION 222,— 
26 use 302 note. 
(A) The last sentence of paragraph (2) of section 222(f) of 
such Act is amended by inserting ", except that in applying 
such section both direct and indirect ownership of stock 
shall be taken into account" before the period at the end 
thereof. 
26 use 312. 
(BXi) Paragraph (3) of section 312(j) (relating to earnings 
and profits of foreign investment companies) is amended by 
striking out "in partial liquidation or". 
(ii) TTie heading for paragraph (3) of section 312(j) is 
amended to read as follows: 
"(3) REDEMPTIONS.—". 
^nte. p-483. 
(7) AMENDMENT RELATED TO SECTION 223.—Subparagraph (B) 
26 use 311 note. 
^f section 223(b)(2) of such Act (relating to effective date for 
changes in tax treatment of distributions of appreciated 
property in redemption of stock) is amended to read as follows: 
"(B) either before October 21, 1982, or within 90 days 
after the date of such ruling." 
(8) AMENDMENTS RELATED TO SECTION 224.— 
Ante, p. 485. 
(A)(i) Subsection (h) of section 338 (relating to definitions 
and special rules) is amended by adding at the end thereof 
the following new paragraphs: 
"(8) TARGET NOT TREATED AS MEMBER OF AFFILIATED GROUP.— 
Except as otherwise provided in paragraph (9) or in regulations 
prescribed under this paragraph, the target corporation shall 
not be treated as a member of ein affiliated group with respect to 
the sale described in subsection (aXD. 
"(9) ELECTIVE RECOGNITION OF GAIN OR LOSS BY TARGET CORPO-
RATION, TOGETHER WITH NONRECOGNITION OF GAIN O
R LOSS ON 
S
T
O
C
K S
O
L
D B
Y SELLING CONSOUDATED GROUP.— 
"(A) IN GENERAL.—Under regulations prescribed by the 
Secretary, an election may be made under which if— 
"(i) the target corporation was, before the transac-
tion, a member of the selling consolidated group, and 
"(ii) the target corporation recognizes gain or loss 
with respect to the transaction as if it sold all of its 
assets in a single transaction, 
then the target corporation shall be treated as a member of 
the selling consolidated group with respect to such sale, and 
(to the extent provided in regulations) no gain or loss will be 
recognized on stock sold or exchanged in the transaction by 
members of the selling consolidated group. 
"(B) SEIXING CONSOUDATED GROUP.—For purposes of sub-
paragraph (A), the term 'selling consolidated group' means 
any group of corporations which (for the taxable period 
which includes the transaction)— 
"(i) includes the target corporation, and 
"(ii) files a consolidated return." 
26 u s e 338 note. 
(ii) If— 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2403 
(I) any portion of a qualified stock purchase is pursu-
ant to a binding contract entered into on or after the 
date of the enactment of the Tax Equity and Fiscal 
Responsibility Act of 1982, and on or before the date of Ante, p. 324. 
the enactment of this Act, and 
(II) the purchasing corporation establishes by clear 
and convincing evidence that such contract was negoti-
ated on the contemplation that, with respect to the 
deemed sale under section 338 of the Internal Revenue 
Code of 1954, the target corporation would be treated as 
a member of the affiliated group which includes the 
selling corporation, 
then the amendment made by clause (i) shall not apply to 
such qualified stock purchase. 
(B)(i) Subsection (d) of section 224 of such Act is amended Ante, p. 485. 
by adding at the end thereof the following new paragraphs: ^^ ^^ ^^^ ^°^-
"(4) EXTENSION OF TIME FOR MAKING ELECTIONS; REVOCATION 
OF ELECTIONS.— 
"(A) EXTENSION.—The time for making an election under 
section 338 of such Code shall not expire before the close of 
February 28,1983. 
"(B) REVOCATION.—Any election made under section 338 
of such Code may be revoked by the purchasing corporation 
if revoked before March 1,1983. 
"(5) RULES FOR ACQUISITIONS DESCRIBED IN PARAGRAPH 
(2).— 
"(A) IN GENERAL.—For purposes of applying section 338 of 
such Code with respect to any acquisition described in 
paragraph (2)— 
"(i) the date selected under subparagraph (B) of this 
paragraph shall be treated as the acquisition date, 
"(ii) a rule similar to the last sentence of section 
334(bX2) of such Code (as in effect on August 31, 1982) 
shall apply, and 
"(iii) subsections (e), (f), and (i) of such section 338, 
and paragraphs (4), (6), (8), and (9) of subsection (h) of 
such section 338, shall not apply. 
"(B) SELECTION OF ACQUISITION DATE BY PURCHASING COR-
PORATION.—The purchasing corporation may select any 
date for purposes of subparagraph (A)(i) if such date— 
"(i) is after the later of June 30, 1982, or the acquisi-
tion date (within the meaning of section 338 of such 
Code without regard to this paragraph), and 
"(ii) is on or before the date on which the election 
described in paragraph (2XC) is made." 
(ii) Subparagraph (A) of section 224(dX2) of such Act is 26 use 338 note, 
amended by striking out "under paragraph (1)" and insert-
ing in lieu thereof "(within the meaning of section 338 of 
such Code without regard to paragraph (5) of this 
subsection)". 
(9) AMENDMENTS RELATED TO SECTION 231.— 
(A) Clause (ii) of section 263(gX2XB) (defining interest and 26 use 263. 
carrying charges) is amended by striking out "section 
1232(aX4XA)" and inserting in lieu thereof 
"section 
1232(aX3XA)". 
(B) Section 1232 (relating to bonds and other evidences of 26 use 1232. 
indebtedness) is amended by redesignating subsection (d) as 
subsection (c). 
96 STAT. 2404 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 use 1232. 
(C)(i) The next to the last sentence of section 1232(b)(2) 
(defining issue price) is amended by striking out "(other 
than a bond or other evidence of indebtedness or an invest-
ment unit issued pursuant to a plan of reorganization 
within the meaning of section 368(a)(1) or an insolvency 
reorganization within the meaning of section 371 or 374)' . 
(ii) Subsection (b) of section 1232 is amended by adding at 
the end thereof the following new paragraph: 
"(4) SPECIAL RULE FOR EXCHANGE OF BONDS IN REORGANIZA-
TIONS.— 
"(A) I N GENERAL.—If— 
"(i) any bond is issued pursuant to a plan of reorgani-
zation within the meaning of section 368(a)(1) for 
another bond (hereinafter in this paragraph referred to 
as the 'old bond'), and 
"(ii) the fair market value of the old bond is less than 
its adjusted issue price, 
then, for purposes of the next to the last sentence of 
paragraph (2), the fair market value of the old bond shall be 
treated as equal to its adjusted issue price. 
"(B) DEFINITIONS.—For purposes of this paragraph— 
"(i) BOND.—The term 'bond' includes any other evi-
dence of indebtedness and an investment unit, 
"(ii) ADJUSTED ISSUE PRICE.— 
"(I) I N GENERAL.—The adjusted issue price of the 
old bond is its issue price, increased by the portion 
of any original issue discount previously includible 
in the gross income of any holder (without regard 
to subsection (a)(6) or (b)(4) of section 1232A (or the 
corresponding provisions of prior law)). 
"(II) SPECIAL RULE FOR APPLYING SECTION 163(e).— 
For purposes of section 163(e), the adjusted issue 
price of the old bond is its issue price, increased by 
any original issue discount previously allowed as a 
deduction." 
^^fY^ ^^^^ 
(iii^ ^^^ purposes of paragraph (4) of section 1232(b) of the 
Internal Revenue Code of 1954 (as added by clause (ii)), any 
insolvency reorganization within the meaning of section 
371 or 374 of such Code shall be treated as a reorganization 
within the meaning of section 368(a)(1) of such Code. 
26 use 1232 
(iv) The amendments made by this subparagraph shall 
"^ote. 
apply to evidences of indebtedness issued after December 
13, 1982; except that such amendments shall not apply to 
any evidence of indebtedness issued after such date pursu-
ant to a written commitment which was binding on such 
date and at all times thereafter. 
Ante, p. 505. 
(10) AMENDMENT RELATED TO SECTION 235.—Section 235(g)(5) of 
26 use 415 note. 
gu^h Act is amended by striking out "section 253" and inserting 
in lieu thereof "section 242". 
^pte, p.509. 
(11) AMENDMENT RELATED TO SECTION 236.—Subsection (c) of 
section 236 of the Tax Equity and Fiscal Responsibility Act of 
1982 (relating to effective date) is amended by adding at the end 
thereof the following new paragraph: 
"(3) TREATMENT OF CERTAIN RENEGOTIATIONS.—If— 
"(A) the taxpayer after August 13, 1982, and before Sep-
tember 4, 1982, borrows money from a government plan (as 
note. 
26 u s e 72 note. 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2405 
defined in section 219(eX4) of the Internal Revenue Code of 
1954), 
"(B) under the appHcable State law, such loan requires 
the renegotiation of all outstanding prior loans made to the 
taxpayer under such plan, and 
"(C) the renegotiation described in subparagraph (B) does 
not change the interest rate on, or extend the duration of, 
any such outstanding prior loan, 
then the renegotiation described in subparagraph (B) shall not 
be treated as a renegotiation, extension, renewal, or revision for 
purposes of paragraph (1). If the renegotiation described in 
subparagraph (B) does not meet the requirements of subpara-
graph (C) solely because it extends the duration of any such 
outstanding prior loan, the requirements of subparagraph (C) 
shall be treated as met with respect to such renegotiation if, 
before April 1, 1983, such extension is eliminated." 
(12) AMENDMENT RELATED TO SECTION 237.—Paragraph (2) of Ante, p. 511. 
section 401(d) (as redesignated by section 237 of the Tax Equity 26 USC 401. 
and Fiscal Responsibility Act of 1982) is amended by striking 
out "paragraph (9)(B)" and inserting in lieu thereof "paragraph 
(1)(B)". 
(13) AMENDMENT RELATED TO SECTION 266.—Section 266(c)(3) of Ante, p. 547. 
such Act is amended by striking out "section 103(f)(2)(C)" and 26 USC lOl note, 
inserting in lieu thereof "section 101(f)(2)(C)". 
(14) 
AMENDMENT 
RELATED 
TO 
SECTION 
283.—Section Ante, p. 568. 
283(b)(2)(B) of such Act (relating to liability for tax and method 26 USC 5701 
of payment) is amended by striking out "January 18" and "° 
inserting in lieu thereof "February 17". 
(b) AMENDMENTS RELATED TO TITLE III.— 
(1) AMENDMENTS RELATED TO SECTION 302.— 
Ante, p. 585. 
(A) Subsection (d) of section 31 (relating to year for which 26 USC 31. 
credit allowed) is amended to read as follows: 
"(d) YEAR FOR WHICH CREDIT ALLOWED.— 
"(1) WAGES.—Any credit allowed— 
"(A) by subsection (a) shall be allowed for the taxable 
year beginning in the calendar year in which the amount is 
withheld, or 
"(B) by subsection (c) shall be allowed for the taxable year 
beginning in the calendar year in which the wages are 
received. 
For purposes of this paragraph, if more than 1 taxable year 
begins in a calendar year, such amount shall be allowed as a 
credit for the last taxable year so beginning. 
"(2) INTEREST, DIVIDENDS, AND PATRONAGE DIVIDENDS.—Any 
credit allowed by subsection (b) shall be allowed for the taxable 
year of the recipient of the income in which the amount is 
received." 
(B) Paragraph (4) of section 3(i) of the Subchapter S Ante, p. 1687. 
Revision Act of 1982 is hereby repealed. 
26 USC 31. 
(2) AMENDMENT RELATED TO SECTION 31O.—Subsection (d) of Ante, p. 595. 
section 310 of the Tax Equity and Fiscal Responsibility Act of 26 USC 103 note. 
1982 (relating to effective date for requirement that obligations 
be registered) is amended by adding at the end thereof the 
following new paragraph: 
"(4) EFFECTIVE DATE FOR TAX-EXEMPT OBUGATIONS.—In the 
case of obligations the interest on which is exempt from tax 
96 STAT. 2406 
PUBLIC LAW 97-448—JAN. 12, 1983 
Ante, p. 628. 
26 use 7701. 
Ante, p. 631. 
26 use 6038A. 
Ante, p. 640. 
26 use 501. 
Ante, p. 648. 
26 use 6226. 
26 use 6228. 
Ante, p. 669. 
26 use 6679. 
(determined without regard to the amendments made by this 
section)— 
"(A) under section 103 of the Internal Revenue Code of 
1954, or 
"(B) under any other provision of law (without regard to 
the identity of the holder), 
the amendments made by this section shall apply only to obliga-
tions issued after June 30, 1983. The preceding sentence shall 
not apply in the case of any obligation which under the Internal 
Revenue Code of 1954 (as in effect on the day before the date of 
the enactment of the Tax Equity and Fiscal Responsibility Act 
of 1982) was required to be in registered form." 
(3) AMENDMENT RELATED TO SECTION 336.—Section 7701(a) 
(relating to definitions) is amended by redesignating paragraph 
(38) (as added by section 336(a) of the Tax Equity and Fiscal 
Responsibility Act of 1982) as paragraph (39). 
(4) AMENDMENT RELATED TO SECTION 339.—Subparagraph (B) 
of section 6038A(c)(2) (defining controlled group) is amended by 
inserting ", (bX2)(C)," after "(aX4)". 
(5) AMENDMENT RELATED TO SECTION 354.—Paragraph (23) of 
section 501(c) (relating to exempt organizations) is amended by 
striking out "25 percent" and inserting in lieu thereof "75 
percent". 
(c) AMENDMENTS RELATED TO TITLE IV.— 
(1) AMENDMENTS RELATED TO SECTION 402.— 
(A) The second sentence of section 6226(g) (relating to 
determination of court reviewable) is amended by striking 
out "Only" and inserting in lieu thereof "With respect to 
the partnership, only". 
(B) The second sentence of section 6228(a)(6) (relating to 
determination of court reviewable) is amended by striking 
out "Only" and inserting in lieu thereof "With respect to 
the partnership, only". 
(2) AMENDMENTS RELATED TO SECTION 405.— 
(A) Subsection (b) of section 405 of the Tax Equity and 
Fiscal Responsibility Act of 1982 is amended to read as 
follows: 
"(b) PENALTY.—Subsection (a) of section 6679 (relating to failure to 
file returns as to organization or reorganization of foreign corpora-
tions and acquisition of their stock), as amended by section 340(b)(1), 
is amended by striking out 'section 6035 or 6046' and inserting in 
lieu thereof 'section 6035, 6046, or 6046A'." 
(B) Paragraphs (2) and (3) of section 405(c) of such Act are 
amended to read as follows: 
"(2) The section heading of section 6679, as amended by 
section 3400)X2), is amended to read as follows: 
" 'SEC. 6679. FAILURE TO FILE RETURNS, ETC.. WITH RESPECT TO FOREIGN 
CORPORATIONS OR FOREIGN PARTNERSHIPS.' 
"(3) The table of sections for subchapter B of chapter 68 is 
amended by striking out the item relating to section 6679 and 
inserting in lieu thereof the following: 
" 'Sec. 6679. Failure to file returns, etc., with respect to foreign corporations 
or foreign partnerships.'" 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2407 
SEC. 307. EXTENSION OF CERTAIN PROVISIONS RELATING TO MEMBERS 
OF THE ARMED FORCES MISSING IN ACTION. 
(a) SURVIVING SPOUSE.—Clause (i) of section 2(a)(3)(B) (relating to 
26 use 2. 
special rule where deceased spouse was in missing status) is 
amended by striking out "January 2, 1978" and inserting in lieu 
thereof "December 31,1982". 
(b) INCOME TAXES ON MEMBERS OF ARMED FORCES ON DEATH.— 
Paragraph (1) of section 692(b) (relating to income taxes of members 
26 USC 692. 
of the Armed Forces on death while in a missing status) is amended 
by striking out "January 2, 1978" and inserting in lieu thereof 
"December 31,1982". 
(c) JOINT RETURNS BY HUSBAND AND WIFE.—The last sentence of 
section 6013(f)(1) (relating to joint return where individual is in 
26 USC 6013. 
missing status) is amended by striking out "January 2, 1978" and 
inserting in lieu thereof "December 31, 1982". 
(d) TIME FOR PERFORMING CERTAIN ACTS POSTPONED.—Paragraph 
(1) of section 7508(b) (relating to the application to spouse of provi- 
26 USC 7508. 
sions relating to the time for performing certain acts postponed by 
reason of service in combat zone) is amended by striking out "Janu-
ary 2, 1978" and inserting in lieu thereof "December 31, 1982". 
SEC. .308. EXTENSION OF TIME FOR PAYMENT OF CIGARETTE TAX. 
(a) IN GENERAL.—Subsection (b) of section 5703 (relating to method 
26 use 5703. 
of payment of tax) is amended to read as follows: 
"(b) METHOD OF PAYMENT OF TAX.— 
"(1) IN GENERAL.—The taxes imposed by section 5701 shall be 
determined at the time of removal of the tobacco products and 
cigarette papers and tubes. Such taxes shall be paid on the basis 
of return. The Secretary shall, by regulations, prescribe the 
period or the event for which such return shall be made and the 
information to be furnished on such return. Any postponement 
under this subsection of the payment of taxes determined at the 
time of removal shall be conditioned upon the filing of such 
additional bonds, and upon compliance with such requirements, 
as the Secretary may prescribe for the protection of the reve-
nue. The Secretary may, by regulations, require payment of tax 
on the basis of a return prior to removal of the tobacco products 
and cigarette papers and tubes where a person defaults in the 
postponed payment of tax on the basis of a return under this 
subsection or regulations prescribed thereunder. All administra-
tive and penalty provisions of this title, insofar as applicable, 
shall apply to any tax imposed by section 5701. 
"(2) TIME FOR MAKING OF RETURN AND PAYMENT OF TAXES.—In 
the case of tobacco products and cigarette papers and tubes 
removed after December 31, 1982, under bond for deferred 
payment of tax, the last day for filing a return and paying any 
tax due for each return period shall be the last day of the first 
succeeding return period plus 10 days." 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
26 use 5703 
shall apply with respect to tobacco products and cigarette papers 
"°^-
and tubes removed after December 31,1982. 
96 STAT. 2408 
PUBLIC LAW 97-448—JAN. 12, 1983 
Ante, p. 324. 
42 u s e 1395WW 
note. 
42 u s e 1395u 
note. 
42 u s e 1395xx 
note. 
42 u s e 1395x. 
42 u s e 1395CC. 
42 u s e 1395b-l 
note, 1395f note. 
42 u s e 1395f 
note. 
42 u s e 1396a, 
1396o note. 
42 u s e 1320c 
note. 
42 u s e 426 note. 
42 u s e 426-1. 
Ante, p. 382. 
42 u s e 1320C-2. 
Ante, p. 385. 
42 u s e 1320C-3. 
SEC. 309. TECHNICAL CORRECTIONS RELATING TO SPENDING REDUCTION 
PROVISIONS OF TAX EQUITY AND FISCAL RESPONSIBILITY 
ACT OF 1982. 
(aXl) Section 101(bX2XB) of the Tax Equity and Fiscal Responsibil-
ity Act of 1982 is amended by striking out "title 5" and inserting in 
lieu thereof "title 44". 
(2) Section 104(b) of such Act is amended by striking out "made by 
this section". 
(3) Section 108 of such Act is amended by redesignating subsection 
(c) as subsection Qo). 
(4) Section 109(bX2) of such Act is amended by striking out "sec-
tion 108a)X2)" and inserting in lieu thereof "section 108(aX2)". 
(5) Section 122(gX5) of such Act is amended by striking out 
"1866(bX2XA)" and inserting in lieu thereof "1866(aX2XA)". 
(6) Section 122 of such Act is amended by redesignating the last 
three subsections as subsections (i), (j), and (k). 
(7) Section 122(k) of such Act (as redesignated by paragraph (6)) is 
amended by striking out "1861(ddX2XAXiv)" and inserting in lieu 
thereof "1861(ddX2XAXiii)". 
(8) Section 131 of such Act is amended by redesignating the last 
two subsections thereof as subsections (c) and (d). 
(9XA) The second sentence of section 150(a) of such Act and the 
first sentence of section 150(b) of such Act are each amended by 
striking out "contract" and inserting in lieu thereof "agreement . 
(B) The first sentence of section 150(b) of such Act is amended by 
striking out "contracts" and inserting in lieu thereof "agreements . 
(10) Section 278(cX2XA) of such Act is amended by striking out 
"paragraph (3) of that subsection" and inserting in lieu thereof 
"paragraph (2) of that subsection". 
(11) Section 278(d) of such Act is amended— 
(A) by amending paragraph (1) to read as follows: 
"(1) IN GENERAL.—For purposes of sections 226, 226A, and 
1811 of the Social Security Act, in the case of any individual 
who performs service both during January 1983, and before 
January 1, 1983, which constitutes medicare qualified Federal 
employment (as defined in section 210(p) of such Act), the 
individual's medicare qualified Federal employment (as so 
defined) performed before January 1,1983, for which remunera-
tion was paid before such date, shall be considered to be 
'employment' (as defined for purposes of title II of such Act), 
but only for the purpose of providing the individual (or another 
person) with entitlement to hospital insurance benefits under 
part A of title XVIII of such Act.''; 
(B) by striking out paragraph (2); and 
(C) by redesignating paragraph (3) as paragraph (2) and strik-
ing out "or (2)" in subparagraph (A) thereof. 
O
a
X
D Section 226A(aXlXBXiii) of the Social Security Act is 
amended by striking out "210(p)) after December 31, 1982," and 
inserting in lieu thereof "section 210(p))". 
(2) Section 1153(d) of such Act is amended— 
(A) in paragraph (1), by striking out "(cX5)(B)" and inserting 
in lieu thereof "(cX6XB)"; and 
(B) in paragraph (2), by striking out "(cX5XC)" and inserting in 
lieu thereof "(cX6XB)". 
(3) Section 1154(a)(1)(A) of such Act is amended by striking out "or 
otherwise allowable under section 1862(aXl)" and inserting in lieu 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2409 
thereof "and whether such services and items are not allowable 
under subsection (aXD or (aX9) of section 1862". 
(4) Section 1154(aX2XB) of such Act is amended by striking out 
"posthospital". 
(5) Section 1812(dX2XA) of such Act is amended by striking out "or 
to other than services" and inserting in lieu thereof "or to services". 
(6) The heading of subsection (i) of section 1814 of such Act is 
amended to read as follows: 
Ante, p. 385. 
42 u s e 1320C-3. 
Ante, p. 356. 
42 u s e 1395d. 
"Pajnnent for Hospice Care". 
(7) Section 1814(iXl) of such Act is amended by inserting "made" 
before "for bereavement counseling". 
(8) Section 1839(d) of such Act is amended by striking out "subsec-
tion (b) or (c)" and inserting in lieu thereof "subsection (b), (c), or 
(g)". 
(9) The heading of subsection (dd) of section 1861 of such Act is 
amended to read as follows: 
Ante, p. 358. 
42 u s e 1395f. 
42 u s e 1395r. 
Ante, p. 359. 
42 u s e 1395x. 
"Hospice Care; Hospice Program". 
(10) Section 1862(bX3)(AXi) of such Act is amended— 
(A) by inserting "in any month" after "service furnished"; 
and 
(B) by inserting "during any part of such month" after "70 
years of age" each place it appears. 
(11) Section 1866(aX2)(A) of such Act is amended by inserting a 
comma after "1813(aXl)". 
(12) Section 1876(gXl) of such Act is amended by striking out 
"subsection (bXD" and inserting in lieu thereof "subsection (b)". 
(13) Section 1886(a)(4) of such Act is amended by striking out "and 
such costs are determined" and inserting in lieu thereof "as such 
costs are determined". 
(14) Section 1886(b)(1) of such Act is amended by striking out 
"sections 1814(b)" and inserting in lieu thereof "section 1814(b),". 
(15) Section 1886(b)(6)(C) of such Act is amended by striking out 
"under this subsection" in the matter before clause (i) and inserting 
in lieu thereof "under this title (taking into account any limitation 
under subsection (a))". 
(16) Section 1903(tX3) of such Act is amended to read as follows: 
"(3) Only for the purposes of computing under this subsection the 
Federal share of expenditures for a State for fiscal years 1982, 1983, 
and 1984 (in the case of the payment which may be made for the 
first quarter of fiscal years 1983, 1984, and 1985, respectively), the 
Federal medical assistance percentage for fiscal years 1982, 1983, 
and 1984 shall be the lower of the Federal medical assistance 
percentage for the State in effect for fiscal year 1981, or the Federal 
medical assistance percentage for the State in effect for fiscal year 
1982.". 
(17) Section 1915(cX2XB) of such Act is amended by striking out 
"need for such services" in the matter following clause (iii) and 
inserting in lieu thereof "need for such skilled nursing facility or 
intermediate care facility services". 
(18) Section 1916(c) of such Act is amended by striking out "this 
subparagraph" and inserting in lieu thereof "this subsection". 
Ante, p. 353. 
42 u s e 1395y. 
42 u s e 1395CC. 
Ante, p. 341. 
42 u s e 1395mm. 
Ante, p. 331. 
42 u s e 1395WW. 
42 u s e 1396b. 
Ante, p. 380. 
42 u s e 1396n. 
Ante, p. 367. 
42 u s e 1396o. 
96 STAT. 2410 
PUBLIC LAW 97-448—JAN. 12, 1983 
Ante, p. 367. 
42 use 1396o. 
Ante, p. 370. 
42 u s e 1396p. 
Ante, p. 551. 
42 u s e 410. 
42 u s e 426 note. 
42 u s e 426-1 
note. 
42 use 1320c 
note. 
42 u s e 1395b-l 
note. 
(19) Section 1916(d) of such Act is amended by striking out "unless 
authorized under this section" and inserting in lieu thereof ", except 
£is provided in subsections (a)(3) and (b)(3)". 
(20) Section 1916(dX5) of such Act is amended by striking out "in 
which participation is voluntary, or in which provision is made" and 
inserting in lieu thereof "is voluntary, or makes provision". 
(21) Section 1917(b)(2)(B) of such Act is amended by striking out 
"and has lawfully resided" and inserting in lieu thereof "who has 
lawfully resided". 
(22) Section 1917(c)(2)(B)(iii) of such Act is amended— 
(A) in subclause (I), by striking out "cannot" and inserting in 
lieu thereof "can"; and 
(B) in subclause (IV), by striking out "if. 
(23) Subsection (p) of section 210 of such Act {as added by section 
269(b) of the Tax Equity and Fiscal Responsibility Act of 1982, 
relating to treatment of real estate agents) is redesignated as subsec-
tion (q). 
(c)(1) Any amendment to the Tax Equity and Fiscal Responsibility 
Act of 1982 made by this section shall be effective as if it had been 
originally included in the provision of such Act to which such 
amendment relates. 
(2) Any amendment to the Social Security Act made by this 
section shall be effective as if it had been originally included as a 
part of that provision of the Social Security Act to which it relates, 
as such provision of such Act was amended or added by the Tax 
Equity and Fiscal Responsibility Act of 1982. 
(d) In order to avoid unfairly discriminating against professional 
standards review organizations whose performance was evaluated 
during the first and second calendar quarters of 1982, the Secretary 
of Health and Human Services shall disregard the results of such 
evaluations and shall carry out such new evaluations of such organi-
zations as may be necessary to select utilization and quality control 
peer review organizations in accordance with subtitle C of title I of 
the Tax Equity and Fiscal Responsibility Act of 1982 and part B of 
title XI of the Social Security Act as amended by such subtitle. 
(e) Section 122(i) of the Tax Equity and Fiscal Responsibility Act of 
1982 (as redesignated by subsection (aX6) of this section) is amended 
by adding at the end thereof the following new paragraph: 
"(3)(A) Notwithstanding the provisions of paragraph (1), the Secre-
tary of Health and Human Services, upon request of the hospice 
involved, shall permit continuation of a hospice demonstration proj-
ect described in paragraph (1) until September 30, 1986, if the 
hospice involved in such demonstration project does not provide 
hospice care directly but acts as a channeling agency for the provi-
sion of hospice care. 
"(B) During the period after the date on which a hospice demon-
stration project described in subparagraph (A) would otherwise have 
terminated under the provisions of paragraph (1), and prior to 
September 30, 1986, any such hospice demonstration project shall be 
subject to the same requirements as are imposed under the hospice 
program provided for under the amendments made by this section 
with respect to reimbursement and benefits, other than the require-
ment that certain benefits be provided directly by the hospice 
involved.". 
note. 
PUBLIC LAW 97-448—JAN. 12, 1983 
96 STAT. 2411 
SEC. 310. TECHNICAL CORRECTION RELATING TO FEDERAL SUPPLEMEN-
TAL UNEMPLOYMENT COMPENSATION PROGRAM. 
(a) Section 602(d) of the Tax Equity and Fiscal Responsibility Act 
26 use 3304 
of 1982 is amended— 
^°^ 
(1) by striking out "and" at the end of paragraph (1); 
(2) by striking out the period at the end of paragraph (2) and 
inserting in lieu thereof "; and"; and 
(3) by inserting after paragraph (2) the following new 
paragraph: 
"(3) the maximum amount of Federal supplemental compen-
sation payable to any individual for whom an account is estab-
lished under subsection (e) shall not exceed the lesser of (A) the 
amount established in such account for such individual, or (B) in 
the case of an individual filing a claim under the interstate 
benefit pasmient plan for Federal supplemental compensation, 
an amount equal to his average weekly benefit amount (as 
determined for purposes of section 202(bXl)(C) of the Federal-
State Extended Unemplojnnent Compensation Act of 1970) for ?^^Y^^ ^^^^ 
his benefit year, multiplied by the number '6', '8', or '10', 
whichever is applicable under subsection (e)(2XAXii) in the State 
in which such individual is filing such interstate claim under 
the interstate benefit pajnnent plan for the week in which he is 
filing such claim.". 
(b) The amendment made by subsection (a) shall be effective as if 
fFf^ljonl®" 
it had been originally included in section 602 of the Tax Equity and ^^te 
Fiscal Responsibility Act of 1982. 
Ante, p. 702. 
SEC. 311. EFFECTIVE DATES. 
(a) FOR SECTIONS 301, 302, AND 303.—The amendments made by 26 use 453 note, 
sections 301, 302, and 303 shall apply to dispositions made after 
October 19,1980, in taxable years ending after such date. 
(b) FOR SECTION 304.— 
(1) The amendment made by subsection (a) of section 304 26 use 443 note. 
shall take effect as if included in the amendments made by 
section 3 of the Bankruptcy Tax Act of 1980. 
94 Stat. 3397. 
(2) The amendment made by subsection (b) of section 304 shall 26 use 368 note. 
take effect as if included in the amendments made by section 4 
of such Act. 
94 Stat. 3401. 
(c) FOR SECTION 305.— 
(1) The amendment made by subsection (a) of section 305 shall 26 use 4
0
4
A 
take effect on December 28,1980. 
"°^-
(2) The amendments made by subsection (b) of section 305 26 use 1
9
4
A 
shall take effect on October 14,1980. 
^°^-
(3) The amendment made by subsection (c) of section 305 shall 26 use 55 note, 
take effect as if included in the amendments made by section 
421 of the Revenue Act of 1978. 
92 stat. 2871. 
(4) The amendments made by subsection (d) of section 305 26 use 221 note. 
shall take effect on the date of the enactment of the Subchapter 
S Revision Act of 1982. 
Ante, p. 1669. 
96 STAT. 2412 
PUBLIC LAW 97-448—JAN. 12, 1983 
26 use 7448 
(5) fhe amendment made by subsection (e) of section 305 shall 
take effect on the date of the enactment of ihe Miscellaneous 
Ante, p 1
7
2
6 
Revonue Act of 1982. 
26 use 31 note. 
(d) FoR SBCTION 306—The amendments made by section 306 shall 
take effect as if included in the provisions of the Tax Equity and 
Ante, p. 324. 
ViaoA Responsibility Act of 1982 to which such amendments relate. 
Approved January 12, 1983. 
LEGISLATIVE HISTORY—H.R. 6056: 
HOUSE REPORTS: No. 97-794 (Comm. on Ways and Means) and No. 97-986 (Ck)mm. 
of Conference). 
SENATE REPORT No. 97-592 (Ck)mm. on Finance). 
CONGRESSIONAL RECORD, Vol. 128 (1982): 
Sept. 14, considered and passed House. 
Sept. 30, considered and passed Senate, amended. 
Dec. 13, House concurred in certain Senate amendments in others with 
amendments. 
Dec. 21, House agreed to conference report. 
Dec. 22, Senate agreed to conference report.