Working Families Tax Relief Act of 2004
PL 108-311 (H.R.1308), enacted 10/04/2004

118 STAT. 1166
PUBLIC LAW 108–311—OCT. 4, 2004
Public Law 108–311
108th Congress
An Act
To amend the Internal Revenue Code of 1986 to provide tax relief for working
families, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CON-
TENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Working
Families Tax Relief Act of 2004’’.
(b) AMENDMENT OF 1986 CODE.—Except as otherwise expressly
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 1986.
(c) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I—EXTENSION OF FAMILY TAX PROVISIONS
Sec. 101. Repeal of scheduled reductions in child tax credit, marriage penalty relief,
and 10-percent rate bracket.
Sec. 102. Acceleration of increase in refundability of the child tax credit.
Sec. 103. 1-year extension of minimum tax relief to individuals.
Sec. 104. Earned income includes combat pay.
Sec. 105. Application of EGTRRA sunset to this title.
TITLE II—UNIFORM DEFINITION OF CHILD
Sec. 201. Uniform definition of child, etc.
Sec. 202. Modifications of definition of head of household.
Sec. 203. Modifications of dependent care credit.
Sec. 204. Modifications of child tax credit.
Sec. 205. Modifications of earned income credit.
Sec. 206. Modifications of deduction for personal exemption for dependents.
Sec. 207. Technical and conforming amendments.
Sec. 208. Effective date.
TITLE III—EXTENSIONS OF CERTAIN EXPIRING PROVISIONS
Sec. 301. Research credit.
Sec. 302. Parity in the application of certain limits to mental health benefits.
Sec. 303. Work opportunity credit and welfare-to-work credit.
Sec. 304. Qualified zone academy bonds.
Sec. 305. Cover over of tax on distilled spirits.
Sec. 306. Deduction for corporate donations of scientific property and computer
technology.
Sec. 307. Deduction for certain expenses of school teachers.
Sec. 308. Expensing of environmental remediation costs.
Sec. 309. Certain New York Liberty Zone benefits.
Sec. 310. Tax incentives for investment in the District of Columbia.
Sec. 311. Disclosure of tax information to facilitate combined employment tax re-
porting.
26 USC 1 note.
Working
Families Tax
Relief Act of
2004.
Oct. 4, 2004
[H.R. 1308]
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118 STAT. 1167
PUBLIC LAW 108–311—OCT. 4, 2004
Sec. 312. Allowance of nonrefundable personal credits against regular and min-
imum tax liability.
Sec. 313. Credit for electricity produced from certain renewable resources.
Sec. 314. Taxable income limit on percentage depletion for oil and natural gas pro-
duced from marginal properties.
Sec. 315. Indian employment tax credit.
Sec. 316. Accelerated depreciation for business property on Indian reservation.
Sec. 317. Disclosure of return information relating to student loans.
Sec. 318. Elimination of phaseout of credit for qualified electric vehicles for 2004
and 2005.
Sec. 319. Elimination of phaseout for deduction for clean-fuel vehicle property for
2004 and 2005.
Sec. 320. Disclosures relating to terrorist activities.
Sec. 321. Joint review of strategic plans and budget for the Internal Revenue Serv-
ice.
Sec. 322. Availability of medical savings accounts.
TITLE IV—TAX TECHNICAL CORRECTIONS
Sec. 401. Amendments related to Medicare Prescription Drug, Improvement, and
Modernization Act of 2003.
Sec. 402. Amendments related to Jobs and Growth Tax Relief Reconciliation Act of
2003.
Sec. 403. Amendments related to Job Creation and Worker Assistance Act of 2002.
Sec. 404. Amendments related to Economic Growth and Tax Relief Reconciliation
Act of 2001.
Sec. 405. Amendments related to Community Renewal Tax Relief Act of 2000.
Sec. 406. Amendments related to Taxpayer Relief Act of 1997.
Sec. 407. Amendments related to Small Business Job Protection Act of 1996.
Sec. 408. Clerical amendments.
TITLE I—EXTENSION OF FAMILY TAX
PROVISIONS
SEC. 101. REPEAL OF SCHEDULED REDUCTIONS IN CHILD TAX CREDIT,
MARRIAGE PENALTY RELIEF, AND 10-PERCENT RATE
BRACKET.
(a) CHILD TAX CREDIT.—Subsection (a) of section 24 (relating
to child tax credit) is amended to read as follows:
‘‘(a) ALLOWANCE OF CREDIT.—There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year with
respect to each qualifying child of the taxpayer an amount equal
to $1,000.’’.
(b) MARRIAGE PENALTY RELIEF IN STANDARD DEDUCTION.—
(1) IN GENERAL.—Paragraph (2) of section 63(c) (relating
to basic standard deduction) is amended to read as follows:
‘‘(2) BASIC STANDARD DEDUCTION.—For purposes of para-
graph (1), the basic standard deduction is—
‘‘(A) 200 percent of the dollar amount in effect under
subparagraph (C) for the taxable year in the case of—
‘‘(i) a joint return, or
‘‘(ii) a surviving spouse (as defined in section 2(a)),
‘‘(B) $4,400 in the case of a head of household (as
defined in section 2(b)), or
‘‘(C) $3,000 in any other case.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 63(c)(4) is amended by striking ‘‘(2)(D)’’
each place it occurs and inserting ‘‘(2)(C)’’.
(B) Section 63(c) is amended by striking paragraph
(7).
(c) MARRIAGE PENALTY RELIEF
IN 15-PERCENT INCOME TAX
BRACKET.—Paragraph (8) of section 1(f) is amended to read as
follows:
26 USC 1.
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118 STAT. 1168
PUBLIC LAW 108–311—OCT. 4, 2004
‘‘(8) ELIMINATION
OF
MARRIAGE
PENALTY
IN
15-PERCENT
BRACKET.—With respect to taxable years beginning after
December 31, 2003, in prescribing the tables under paragraph
(1)—
‘‘(A) the maximum taxable income in the 15-percent
rate bracket in the table contained in subsection (a) (and
the minimum taxable income in the next higher taxable
income bracket in such table) shall be 200 percent of the
maximum taxable income in the 15-percent rate bracket
in the table contained in subsection (c) (after any other
adjustment under this subsection), and
‘‘(B) the comparable taxable income amounts in the
table contained in subsection (d) shall be 1⁄2 of the amounts
determined under subparagraph (A).’’.
(d) 10-PERCENT RATE BRACKET.—
(1) IN GENERAL.—Clause (i) of section 1(i)(1)(B) is amended
by striking ‘‘($12,000 in the case of taxable years beginning
after December 31, 2004, and before January 1, 2008)’’.
(2) INFLATION ADJUSTMENT.—Subparagraph (C) of section
1(i)(1) is amended to read as follows:
‘‘(C) INFLATION ADJUSTMENT.—In prescribing the tables
under subsection (f) which apply with respect to taxable
years beginning in calendar years after 2003—
‘‘(i) the cost-of-living adjustment shall be deter-
mined under subsection (f)(3) by substituting ‘2002’
for ‘1992’ in subparagraph (B) thereof, and
‘‘(ii) the adjustments under clause (i) shall not
apply to the amount referred to in subparagraph
(B)(iii).
If any amount after adjustment under the preceding sen-
tence is not a multiple of $50, such amount shall be rounded
to the next lowest multiple of $50.’’.
(e) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2003.
SEC. 102. ACCELERATION OF INCREASE IN REFUNDABILITY OF THE
CHILD TAX CREDIT.
(a) ACCELERATION
OF REFUNDABILITY.—Section 24(d)(1)(B)(i)
(relating to portion of credit refundable) is amended by striking
‘‘(10 percent in the case of taxable years beginning before January
1, 2005)’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to taxable years beginning after December 31, 2003.
SEC. 103. EXTENSION OF MINIMUM TAX RELIEF TO INDIVIDUALS.
(a) IN GENERAL.—Subparagraphs (A) and (B) of section 55(d)(1)
of the Internal Revenue Code of 1986 (relating to exemption amount
for taxpayers other than corporations) are each amended by striking
‘‘2003 and 2004’’ and inserting ‘‘2003, 2004, and 2005’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2004.
SEC. 104. EARNED INCOME INCLUDES COMBAT PAY.
(a) CHILD TAX CREDIT.—Section 24(d)(1) (relating to portion
of credit refundable) is amended by adding at the end the following
new sentence: ‘‘For purposes of subparagraph (B), any amount
excluded from gross income by reason of section 112 shall be treated
26 USC 55 note.
26 USC 24 note.
26 USC 1 note.
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118 STAT. 1169
PUBLIC LAW 108–311—OCT. 4, 2004
as earned income which is taken into account in computing taxable
income for the taxable year.’’.
(b) EARNED INCOME CREDIT.—Subparagraph (B) of section
32(c)(2) (relating to earned income) is amended—
(1) by striking ‘‘and’’ at the end of clause (iv),
(2) by striking the period at the end of clause (v) and
inserting ‘‘, and’’, and
(3) by adding at the end the following:
‘‘(vi) in the case of any taxable year ending—
‘‘(I) after the date of the enactment of this
clause, and
‘‘(II) before January 1, 2006,
a taxpayer may elect to treat amounts excluded from
gross income by reason of section 112 as earned
income.’’.
(c) EFFECTIVE DATE.—
(1) CHILD
TAX
CREDIT.—The amendment made by sub-
section (a) shall apply to taxable years beginning after
December 31, 2003.
(2) EARNED INCOME CREDIT.—The amendments made by
subsection (b) shall apply to taxable years ending after the
date of the enactment of this Act.
SEC. 105. APPLICATION OF EGTRRA SUNSET TO THIS TITLE.
Each amendment made by this title shall be subject to title
IX of the Economic Growth and Tax Relief Reconciliation Act of
2001 to the same extent and in the same manner as the provision
of such Act to which such amendment relates.
TITLE II—UNIFORM DEFINITION OF
CHILD
SEC. 201. UNIFORM DEFINITION OF CHILD, ETC.
Section 152 is amended to read as follows:
‘‘SEC. 152. DEPENDENT DEFINED.
‘‘(a) IN GENERAL.—For purposes of this subtitle, the term
‘dependent’ means—
‘‘(1) a qualifying child, or
‘‘(2) a qualifying relative.
‘‘(b) EXCEPTIONS.—For purposes of this section—
‘‘(1) DEPENDENTS
INELIGIBLE.—If an individual is a
dependent of a taxpayer for any taxable year of such taxpayer
beginning in a calendar year, such individual shall be treated
as having no dependents for any taxable year of such individual
beginning in such calendar year.
‘‘(2) MARRIED
DEPENDENTS.—An individual shall not be
treated as a dependent of a taxpayer under subsection (a)
if such individual has made a joint return with the individual’s
spouse under section 6013 for the taxable year beginning in
the calendar year in which the taxable year of the taxpayer
begins.
‘‘(3) CITIZENS OR NATIONALS OF OTHER COUNTRIES.—
‘‘(A) IN
GENERAL.—The term ‘dependent’ does not
include an individual who is not a citizen or national of
the United States unless such individual is a resident
26 USC 1 note.
26 USC 32 note.
26 USC 24 note.
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118 STAT. 1170
PUBLIC LAW 108–311—OCT. 4, 2004
of the United States or a country contiguous to the United
States.
‘‘(B) EXCEPTION FOR ADOPTED CHILD.—Subparagraph
(A) shall not exclude any child of a taxpayer (within the
meaning of subsection (f)(1)(B)) from the definition of
‘dependent’ if—
‘‘(i) for the taxable year of the taxpayer, the child
has the same principal place of abode as the taxpayer
and is a member of the taxpayer’s household, and
‘‘(ii) the taxpayer is a citizen or national of the
United States.
‘‘(c) QUALIFYING CHILD.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualifying child’ means, with
respect to any taxpayer for any taxable year, an individual—
‘‘(A) who bears a relationship to the taxpayer described
in paragraph (2),
‘‘(B) who has the same principal place of abode as
the taxpayer for more than one-half of such taxable year,
‘‘(C) who meets the age requirements of paragraph
(3), and
‘‘(D) who has not provided over one-half of such individ-
ual’s own support for the calendar year in which the taxable
year of the taxpayer begins.
‘‘(2) RELATIONSHIP.—For purposes of paragraph (1)(A), an
individual bears a relationship to the taxpayer described in
this paragraph if such individual is—
‘‘(A) a child of the taxpayer or a descendant of such
a child, or
‘‘(B) a brother, sister, stepbrother, or stepsister of the
taxpayer or a descendant of any such relative.
‘‘(3) AGE REQUIREMENTS.—
‘‘(A) IN GENERAL.—For purposes of paragraph (1)(C),
an individual meets the requirements of this paragraph
if such individual—
‘‘(i) has not attained the age of 19 as of the close
of the calendar year in which the taxable year of the
taxpayer begins, or
‘‘(ii) is a student who has not attained the age
of 24 as of the close of such calendar year.
‘‘(B) SPECIAL RULE FOR DISABLED.—In the case of an
individual who is permanently and totally disabled (as
defined in section 22(e)(3)) at any time during such cal-
endar year, the requirements of subparagraph (A) shall
be treated as met with respect to such individual.
‘‘(4) SPECIAL RULE RELATING TO 2 OR MORE CLAIMING QUALI-
FYING CHILD.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), if (but for this paragraph) an individual may be and
is claimed as a qualifying child by 2 or more taxpayers
for a taxable year beginning in the same calendar year,
such individual shall be treated as the qualifying child
of the taxpayer who is—
‘‘(i) a parent of the individual, or
‘‘(ii) if clause (i) does not apply, the taxpayer with
the highest adjusted gross income for such taxable
year.
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118 STAT. 1171
PUBLIC LAW 108–311—OCT. 4, 2004
‘‘(B) MORE
THAN
1
PARENT
CLAIMING
QUALIFYING
CHILD.—If the parents claiming any qualifying child do
not file a joint return together, such child shall be treated
as the qualifying child of—
‘‘(i) the parent with whom the child resided for
the longest period of time during the taxable year,
or
‘‘(ii) if the child resides with both parents for the
same amount of time during such taxable year, the
parent with the highest adjusted gross income.
‘‘(d) QUALIFYING RELATIVE.—For purposes of this section—
‘‘(1) IN
GENERAL.—The term ‘qualifying relative’ means,
with respect to any taxpayer for any taxable year, an
individual—
‘‘(A) who bears a relationship to the taxpayer described
in paragraph (2),
‘‘(B) whose gross income for the calendar year in which
such taxable year begins is less than the exemption amount
(as defined in section 151(d)),
‘‘(C) with respect to whom the taxpayer provides over
one-half of the individual’s support for the calendar year
in which such taxable year begins, and
‘‘(D) who is not a qualifying child of such taxpayer
or of any other taxpayer for any taxable year beginning
in the calendar year in which such taxable year begins.
‘‘(2) RELATIONSHIP.—For purposes of paragraph (1)(A), an
individual bears a relationship to the taxpayer described in
this paragraph if the individual is any of the following with
respect to the taxpayer:
‘‘(A) A child or a descendant of a child.
‘‘(B) A brother, sister, stepbrother, or stepsister.
‘‘(C) The father or mother, or an ancestor of either.
‘‘(D) A stepfather or stepmother.
‘‘(E) A son or daughter of a brother or sister of the
taxpayer.
‘‘(F) A brother or sister of the father or mother of
the taxpayer.
‘‘(G) A son-in-law, daughter-in-law, father-in-law,
mother-in-law, brother-in-law, or sister-in-law.
‘‘(H) An individual (other than an individual who at
any time during the taxable year was the spouse, deter-
mined without regard to section 7703, of the taxpayer)
who, for the taxable year of the taxpayer, has the same
principal place of abode as the taxpayer and is a member
of the taxpayer’s household.
‘‘(3) SPECIAL RULE RELATING TO MULTIPLE SUPPORT AGREE-
MENTS.—For purposes of paragraph (1)(C), over one-half of
the support of an individual for a calendar year shall be treated
as received from the taxpayer if—
‘‘(A) no one person contributed over one-half of such
support,
‘‘(B) over one-half of such support was received from
2 or more persons each of whom, but for the fact that
any such person alone did not contribute over one-half
of such support, would have been entitled to claim such
individual as a dependent for a taxable year beginning
in such calendar year,
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118 STAT. 1172
PUBLIC LAW 108–311—OCT. 4, 2004
‘‘(C) the taxpayer contributed over 10 percent of such
support, and
‘‘(D) each person described in subparagraph (B) (other
than the taxpayer) who contributed over 10 percent of
such support files a written declaration (in such manner
and form as the Secretary may by regulations prescribe)
that such person will not claim such individual as a
dependent for any taxable year beginning in such calendar
year.
‘‘(4) SPECIAL RULE RELATING TO INCOME OF HANDICAPPED
DEPENDENTS.—
‘‘(A) IN GENERAL.—For purposes of paragraph (1)(B),
the gross income of an individual who is permanently and
totally disabled (as defined in section 22(e)(3)) at any time
during the taxable year shall not include income attrib-
utable to services performed by the individual at a shel-
tered workshop if—
‘‘(i) the availability of medical care at such work-
shop is the principal reason for the individual’s pres-
ence there, and
‘‘(ii) the income arises solely from activities at such
workshop which are incident to such medical care.
‘‘(B) SHELTERED WORKSHOP DEFINED.—For purposes of
subparagraph (A), the term ‘sheltered workshop’ means
a school—
‘‘(i) which provides special instruction or training
designed to alleviate the disability of the individual,
and
‘‘(ii) which is operated by an organization described
in section 501(c)(3) and exempt from tax under section
501(a), or by a State, a possession of the United States,
any political subdivision of any of the foregoing, the
United States, or the District of Columbia.
‘‘(5) SPECIAL RULES FOR SUPPORT.—For purposes of this
subsection—
‘‘(A) payments to a spouse which are includible in
the gross income of such spouse under section 71 or 682
shall not be treated as a payment by the payor spouse
for the support of any dependent, and
‘‘(B) in the case of the remarriage of a parent, support
of a child received from the parent’s spouse shall be treated
as received from the parent.
‘‘(e) SPECIAL RULE FOR DIVORCED PARENTS.—
‘‘(1) IN
GENERAL.—Notwithstanding subsection (c)(1)(B),
(c)(4), or (d)(1)(C), if—
‘‘(A) a child receives over one-half of the child’s support
during the calendar year from the child’s parents—
‘‘(i) who are divorced or legally separated under
a decree of divorce or separate maintenance,
‘‘(ii) who are separated under a written separation
agreement, or
‘‘(iii) who live apart at all times during the last
6 months of the calendar year, and
‘‘(B) such child is in the custody of 1 or both of the
child’s parents for more than one-half of the calendar year,
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118 STAT. 1173
PUBLIC LAW 108–311—OCT. 4, 2004
such child shall be treated as being the qualifying child or
qualifying relative of the noncustodial parent for a calendar
year if the requirements described in paragraph (2) are met.
‘‘(2) REQUIREMENTS.—For purposes of paragraph (1), the
requirements described in this paragraph are met if—
‘‘(A) a decree of divorce or separate maintenance or
written 
separation 
agreement 
between 
the 
parents
applicable to the taxable year beginning in such calendar
year provides that—
‘‘(i) the noncustodial parent shall be entitled to
any deduction allowable under section 151 for such
child, or
‘‘(ii) the custodial parent will sign a written dec-
laration (in such manner and form as the Secretary
may prescribe) that such parent will not claim such
child as a dependent for such taxable year, or
‘‘(B) in the case of such an agreement executed before
January 1, 1985, the noncustodial parent provides at least
$600 for the support of such child during such calendar
year.
For purposes of subparagraph (B), amounts expended for the
support of a child or children shall be treated as received
from the noncustodial parent to the extent that such parent
provided amounts for such support.
‘‘(3) CUSTODIAL PARENT AND NONCUSTODIAL PARENT.—For
purposes of this subsection—
‘‘(A) CUSTODIAL PARENT.—The term ‘custodial parent’
means the parent with whom a child shared the same
principal place of abode for the greater portion of the
calendar year.
‘‘(B) NONCUSTODIAL PARENT.—The term ‘noncustodial
parent’ means the parent who is not the custodial parent.
‘‘(4) EXCEPTION FOR MULTIPLE-SUPPORT AGREEMENTS.—This
subsection shall not apply in any case where over one-half
of the support of the child is treated as having been received
from a taxpayer under the provision of subsection (d)(3).
‘‘(f) OTHER DEFINITIONS
AND RULES.—For purposes of this
section—
‘‘(1) CHILD DEFINED.—
‘‘(A) IN GENERAL.—The term ‘child’ means an individual
who is—
‘‘(i) a son, daughter, stepson, or stepdaughter of
the taxpayer, or
‘‘(ii) an eligible foster child of the taxpayer.
‘‘(B) ADOPTED CHILD.—In determining whether any of
the relationships specified in subparagraph (A)(i) or para-
graph (4) exists, a legally adopted individual of the tax-
payer, or an individual who is lawfully placed with the
taxpayer for legal adoption by the taxpayer, shall be treated
as a child of such individual by blood.
‘‘(C) ELIGIBLE FOSTER CHILD.—For purposes of subpara-
graph (A)(ii), the term ‘eligible foster child’ means an indi-
vidual who is placed with the taxpayer by an authorized
placement agency or by judgment, decree, or other order
of any court of competent jurisdiction.
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118 STAT. 1174
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‘‘(2) STUDENT DEFINED.—The term ‘student’ means an indi-
vidual who during each of 5 calendar months during the cal-
endar year in which the taxable year of the taxpayer begins—
‘‘(A) is a full-time student at an educational organiza-
tion described in section 170(b)(1)(A)(ii), or
‘‘(B) is pursuing a full-time course of institutional on-
farm training under the supervision of an accredited agent
of an educational organization described in section
170(b)(1)(A)(ii) or of a State or political subdivision of a
State.
‘‘(3) DETERMINATION OF HOUSEHOLD STATUS.—An individual
shall not be treated as a member of the taxpayer’s household
if at any time during the taxable year of the taxpayer the
relationship between such individual and the taxpayer is in
violation of local law.
‘‘(4) BROTHER AND SISTER.—The terms ‘brother’ and ‘sister’
include a brother or sister by the half blood.
‘‘(5) SPECIAL
SUPPORT
TEST
IN
CASE
OF
STUDENTS.—For
purposes of subsections (c)(1)(D) and (d)(1)(C), in the case of
an individual who is—
‘‘(A) a child of the taxpayer, and
‘‘(B) a student,
amounts received as scholarships for study at an educational
organization described in section 170(b)(1)(A)(ii) shall not be
taken into account.
‘‘(6) TREATMENT OF MISSING CHILDREN.—
‘‘(A) IN GENERAL.—Solely for the purposes referred to
in subparagraph (B), a child of the taxpayer—
‘‘(i) who is presumed by law enforcement authori-
ties to have been kidnapped by someone who is not
a member of the family of such child or the taxpayer,
and
‘‘(ii) who had, for the taxable year in which the
kidnapping occurred, the same principal place of abode
as the taxpayer for more than one-half of the portion
of such year before the date of the kidnapping,
shall be treated as meeting the requirement of subsection
(c)(1)(B) with respect to a taxpayer for all taxable years
ending during the period that the child is kidnapped.
‘‘(B) PURPOSES.—Subparagraph (A) shall apply solely
for purposes of determining—
‘‘(i) the deduction under section 151(c),
‘‘(ii) the credit under section 24 (relating to child
tax credit),
‘‘(iii) whether an individual is a surviving spouse
or a head of a household (as such terms are defined
in section 2), and
‘‘(iv) the earned income credit under section 32.
‘‘(C) COMPARABLE TREATMENT OF CERTAIN QUALIFYING
RELATIVES.—For purposes of this section, a child of the
taxpayer—
‘‘(i) who is presumed by law enforcement authori-
ties to have been kidnapped by someone who is not
a member of the family of such child or the taxpayer,
and
Applicability.
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118 STAT. 1175
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‘‘(ii) who was (without regard to this paragraph)
a qualifying relative of the taxpayer for the portion
of the taxable year before the date of the kidnapping,
shall be treated as a qualifying relative of the taxpayer
for all taxable years ending during the period that the
child is kidnapped.
‘‘(D) TERMINATION OF TREATMENT.—Subparagraphs (A)
and (C) shall cease to apply as of the first taxable year
of the taxpayer beginning after the calendar year in which
there is a determination that the child is dead (or, if
earlier, in which the child would have attained age 18).
‘‘(7) CROSS REFERENCES.—
‘‘For provision treating child as dependent of both parents for pur-
poses of certain provisions, see sections 105(b), 132(h)(2)(B), and
213(d)(5).’’.
SEC. 202. MODIFICATIONS OF DEFINITION OF HEAD OF HOUSEHOLD.
(a) HEAD OF HOUSEHOLD.—Clause (i) of section 2(b)(1)(A) is
amended to read as follows:
‘‘(i) a qualifying child of the individual (as defined
in section 152(c), determined without regard to section
152(e)), but not if such child—
‘‘(I) is married at the close of the taxpayer’s
taxable year, and
‘‘(II) is not a dependent of such individual
by reason of section 152(b)(2) or 152(b)(3), or both,
or’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 2(b)(2) is amended by striking subparagraph
(A) and by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (A), (B), and (C), respectively.
(2) Clauses (i) and (ii) of section 2(b)(3)(B) are amended
to read as follows:
‘‘(i) subparagraph (H) of section 152(d)(2), or
‘‘(ii) paragraph (3) of section 152(d).’’.
SEC. 203. MODIFICATIONS OF DEPENDENT CARE CREDIT.
(a) IN GENERAL.—Section 21(a)(1) is amended by striking ‘‘In
the case of an individual who maintains a household which includes
as a member one or more qualifying individuals (as defined in
subsection (b)(1))’’ and inserting ‘‘In the case of an individual for
which there are 1 or more qualifying individuals (as defined in
subsection (b)(1)) with respect to such individual’’.
(b) QUALIFYING INDIVIDUAL.—Paragraph (1) of section 21(b)
is amended to read as follows:
‘‘(1) QUALIFYING INDIVIDUAL.—The term ‘qualifying indi-
vidual’ means—
‘‘(A) a dependent of the taxpayer (as defined in section
152(a)(1)) who has not attained age 13,
‘‘(B) a dependent of the taxpayer who is physically
or mentally incapable of caring for himself or herself and
who has the same principal place of abode as the taxpayer
for more than one-half of such taxable year, or
‘‘(C) the spouse of the taxpayer, if the spouse is phys-
ically or mentally incapable of caring for himself or herself
and who has the same principal place of abode as the
taxpayer for more than one-half of such taxable year.’’.
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(c) CONFORMING AMENDMENT.—Paragraph (1) of section 21(e)
is amended to read as follows:
‘‘(1) PLACE OF ABODE.—An individual shall not be treated
as having the same principal place of abode of the taxpayer
if at any time during the taxable year of the taxpayer the
relationship between the individual and the taxpayer is in
violation of local law.’’.
SEC. 204. MODIFICATIONS OF CHILD TAX CREDIT.
(a) IN GENERAL.—Paragraph (1) of section 24(c) is amended
to read as follows:
‘‘(1) IN
GENERAL.—The term ‘qualifying child’ means a
qualifying child of the taxpayer (as defined in section 152(c))
who has not attained age 17.’’.
(b) CONFORMING AMENDMENT.—Section 24(c)(2) is amended by
striking ‘‘the first sentence of section 152(b)(3)’’ and inserting
‘‘subparagraph (A) of section 152(b)(3)’’.
SEC. 205. MODIFICATIONS OF EARNED INCOME CREDIT.
(a) QUALIFYING
CHILD.—Paragraph (3) of section 32(c) is
amended to read as follows:
‘‘(3) QUALIFYING CHILD.—
‘‘(A) IN GENERAL.—The term ‘qualifying child’ means
a qualifying child of the taxpayer (as defined in section
152(c), determined without regard to paragraph (1)(D)
thereof and section 152(e)).
‘‘(B) MARRIED INDIVIDUAL.—The term ‘qualifying child’
shall not include an individual who is married as of the
close of the taxpayer’s taxable year unless the taxpayer
is entitled to a deduction under section 151 for such taxable
year with respect to such individual (or would be so entitled
but for section 152(e)).
‘‘(C) PLACE OF ABODE.—For purposes of subparagraph
(A), the requirements of section 152(c)(1)(B) shall be met
only if the principal place of abode is in the United States.
‘‘(D) IDENTIFICATION REQUIREMENTS.—
‘‘(i) IN GENERAL.—A qualifying child shall not be
taken into account under subsection (b) unless the
taxpayer includes the name, age, and TIN of the quali-
fying child on the return of tax for the taxable year.
‘‘(ii) OTHER
METHODS.—The Secretary may pre-
scribe other methods for providing the information
described in clause (i).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 32(c)(1) is amended by striking subparagraph
(C) and by redesignating subparagraphs (D), (E), (F), and (G)
as subparagraphs (C), (D), (E), and (F), respectively.
(2) Section 32(c)(4) is amended by striking ‘‘(3)(E)’’ and
inserting ‘‘(3)(C)’’.
(3) Section 32(m) is amended by striking ‘‘subsections
(c)(1)(F)’’ and inserting ‘‘subsections (c)(1)(E)’’.
SEC. 206. MODIFICATIONS OF DEDUCTION FOR PERSONAL EXEMPTION
FOR DEPENDENTS.
Subsection (c) of section 151 is amended to read as follows:
‘‘(c) ADDITIONAL EXEMPTION FOR DEPENDENTS.—An exemption
of the exemption amount for each individual who is a dependent
(as defined in section 152) of the taxpayer for the taxable year.’’.
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SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.
(1) Section 2(a)(1)(B)(i) is amended by inserting ‘‘, deter-
mined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof’’ after ‘‘section 152’’.
(2) Section 21(e)(5) is amended—
(A) by striking ‘‘paragraph (2) or (4) of’’ in subpara-
graph (A), and
(B) by striking ‘‘within the meaning of section 152(e)(1)’’
and inserting ‘‘as defined in section 152(e)(3)(A)’’.
(3) Section 21(e)(6)(B) is amended by striking ‘‘section
151(c)(3)’’ and inserting ‘‘section 152(f)(1)’’.
(4) Section 25B(c)(2)(B) is amended by striking ‘‘151(c)(4)’’
and inserting ‘‘152(f)(2)’’.
(5)(A) Subparagraphs (A) and (B) of section 51(i)(1) are
each amended by striking ‘‘paragraphs (1) through (8) of section
152(a)’’ both places it appears and inserting ‘‘subparagraphs
(A) through (G) of section 152(d)(2)’’.
(B) Section 51(i)(1)(C) is amended by striking ‘‘152(a)(9)’’
and inserting ‘‘152(d)(2)(H)’’.
(6) Section 72(t)(2)(D)(i)(III) is amended by inserting ‘‘,
determined without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof’’ after ‘‘section 152’’.
(7) Section 72(t)(7)(A)(iii) is amended by striking ‘‘151(c)(3)’’
and inserting ‘‘152(f)(1)’’.
(8) Section 42(i)(3)(D)(ii)(I) is amended by inserting ‘‘, deter-
mined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof’’ after ‘‘section 152’’.
(9) Subsections (b) and (c)(1) of section 105 are amended
by inserting ‘‘, determined without regard to subsections (b)(1),
(b)(2), and (d)(1)(B) thereof’’ after ‘‘section 152’’.
(10) Section 120(d)(4) is amended by inserting ‘‘(determined
without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof)’’ after ‘‘section 152’’.
(11) Section 125(e)(1)(D) is amended by inserting ‘‘, deter-
mined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof’’ after ‘‘section 152’’.
(12) Section 129(c)(2) is amended by striking ‘‘151(c)(3)’’
and inserting ‘‘152(f)(1)’’.
(13) The first sentence of section 132(h)(2)(B) is amended
by striking ‘‘151(c)(3)’’ and inserting ‘‘152(f)(1)’’.
(14) Section 153 is amended by striking paragraph (1)
and by redesignating paragraphs (2), (3), and (4) as paragraphs
(1), (2), and (3), respectively.
(15) Section 170(g)(1) is amended by inserting ‘‘(determined
without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof)’’ after ‘‘section 152’’.
(16) Section 170(g)(3) is amended by striking ‘‘paragraphs
(1) through (8) of section 152(a)’’ and inserting ‘‘subparagraphs
(A) through (G) of section 152(d)(2)’’.
(17) Section 213(a) is amended by inserting ‘‘, determined
without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof’’
after ‘‘section 152’’.
(18) The second sentence of section 213(d)(11) is amended
by striking ‘‘paragraphs (1) through (8) of section 152(a)’’ and
inserting ‘‘subparagraphs (A) through (G) of section 152(d)(2)’’.
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(19) Section 220(d)(2)(A) is amended by inserting ‘‘, deter-
mined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof’’ after ‘‘section 152’’.
(20) Section 221(d)(4) is amended by inserting ‘‘(determined
without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof)’’ after ‘‘section 152’’.
(21) Section 529(e)(2)(B) is amended by striking ‘‘para-
graphs (1) through (8) of section 152(a)’’ and inserting ‘‘subpara-
graphs (A) through (G) of section 152(d)(2)’’.
(22) Section 2032A(c)(7)(D) is amended by striking ‘‘section
151(c)(4)’’ and inserting ‘‘section 152(f)(2)’’.
(23) Section 2057(d)(2)(B) is amended by inserting ‘‘, deter-
mined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)
thereof’’ after ‘‘section 152’’.
(24) Section 7701(a)(17) is amended by striking ‘‘152(b)(4),
682,’’ and inserting ‘‘682’’.
(25) Section 7702B(f)(2)(C)(iii) is amended by striking
‘‘paragraphs (1) through (8) of section 152(a)’’ and inserting
‘‘subparagraphs (A) through (G) of section 152(d)(2)’’.
(26) Section 7703(b)(1) is amended—
(A) by striking ‘‘151(c)(3)’’ and inserting ‘‘152(f)(1)’’,
and
(B) by striking ‘‘paragraph (2) or (4) of’’.
SEC. 208. EFFECTIVE DATE.
The amendments made by this title shall apply to taxable
years beginning after December 31, 2004.
TITLE III—EXTENSIONS OF CERTAIN
EXPIRING PROVISIONS
SEC. 301. RESEARCH CREDIT.
(a) EXTENSION.—
(1) IN
GENERAL.—Section 41(h)(1)(B) (relating to termi-
nation) is amended by striking ‘‘June 30, 2004’’ and inserting
‘‘December 31, 2005’’.
(2) CONFORMING
AMENDMENT.—Section 45C(b)(1)(D) is
amended by striking ‘‘June 30, 2004’’ and inserting ‘‘December
31, 2005’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to amounts paid or incurred after June 30, 2004.
SEC. 302. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO
MENTAL HEALTH BENEFITS.
(a) IN GENERAL.—Section 9812(f) is amended—
(1) by striking ‘‘and’’ at the end of paragraph (1), and
(2) by striking paragraph (2) and inserting the following
new paragraphs:
‘‘(2) on or after January 1, 2004, and before the date
of the enactment of the Working Families Tax Relief Act of
2004, and
‘‘(3) after December 31, 2005.’’.
(b) ERISA.—Section 712(f) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1185a(f)) is amended by striking
‘‘on or after December 31, 2004’’ and inserting ‘‘after December
31, 2005’’.
26 USC 41 note.
26 USC 2 note.
26 USC 7702.
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(c) PHSA.—Section 2705(f) of the Public Health Service Act
(42 U.S.C. 300gg-5(f)) is amended by striking ‘‘on or after December
31, 2004’’ and inserting ‘‘after December 31, 2005’’.
(d) EFFECTIVE DATES.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 303. WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK
CREDIT.
(a) EXTENSION OF CREDIT.—
(1) IN GENERAL.—Section 51(c)(4) is amended by striking
‘‘December 31, 2003’’ and inserting ‘‘December 31, 2005’’.
(2) LONG-TERM
FAMILY
ASSISTANCE
RECIPIENTS.—Section
51A(f) is amended by striking ‘‘December 31, 2003’’ and
inserting ‘‘December 31, 2005’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to individuals who begin work for the employer after
December 31, 2003.
SEC. 304. QUALIFIED ZONE ACADEMY BONDS.
(a) IN GENERAL.—Paragraph (1) of section 1397E(e) is amended
by striking ‘‘and 2003’’ and inserting ‘‘2003, 2004, and 2005’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to obligations issued after December 31, 2003.
SEC. 305. COVER OVER OF TAX ON DISTILLED SPIRITS.
(a) IN GENERAL.—Paragraph (1) of section 7652(f) is amended
by striking ‘‘January 1, 2004’’ and inserting ‘‘January 1, 2006’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to articles brought into the United States after December
31, 2003.
SEC. 306. DEDUCTION FOR CORPORATE DONATIONS OF SCIENTIFIC
PROPERTY AND COMPUTER TECHNOLOGY.
(a) IN GENERAL.—Section 170(e)(6)(G) is amended by striking
‘‘2003’’ and inserting ‘‘2005’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply to contributions made in taxable years beginning after
December 31, 2003.
SEC. 307. DEDUCTION FOR CERTAIN EXPENSES OF SCHOOL TEACHERS.
(a) IN GENERAL.—Subparagraph (D) of section 62(a)(2) is
amended by striking ‘‘or 2003’’ and inserting ‘‘, 2003, 2004, or
2005’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to expenses paid or incurred in taxable years beginning
after December 31, 2003.
SEC. 308. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
(a) EXTENSION OF TERMINATION DATE.—Subsection (h) of sec-
tion 198 is amended by striking ‘‘December 31, 2003’’ and inserting
‘‘December 31, 2005’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to expenditures paid or incurred after December 31,
2003.
SEC. 309. CERTAIN NEW YORK LIBERTY ZONE BENEFITS.
(a) EXTENSION
OF TAX-EXEMPT BOND FINANCING.—Subpara-
graph (D) of section 1400L(d)(2) is amended by striking ‘‘2005’’
and inserting ‘‘2010’’.
26 USC 198 note.
26 USC 62 note.
26 USC 170 note.
26 USC 7652
note.
26 USC 1397E
note.
26 USC 1397.
26 USC 51 note.
26 USC 9812
note.
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(b) EXTENSION OF ADVANCE REFUNDINGS.—Section 1400L(e)(1)
is amended by striking ‘‘2005’’ and inserting ‘‘2006’’.
(c) 
CLARIFICATION
OF
BONDS
ELIGIBLE
FOR
ADVANCE
REFUNDING.—Section 1400L(e)(2)(B) (relating to bonds described)
is amended by striking ‘‘, or’’ and inserting ‘‘or the Municipal
Assistance Corporation, or’’.
(d) EFFECTIVE DATE.—The amendment made by subsection (c)
shall take effect as if included in the amendments made by section
301 of the Job Creation and Worker Assistance Act of 2002.
SEC. 310. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
COLUMBIA.
(a) DESIGNATION OF ZONE.—Subsection (f) of section 1400 is
amended by striking ‘‘December 31, 2003’’ both places it appears
and inserting ‘‘December 31, 2005’’.
(b) TAX-EXEMPT ECONOMIC DEVELOPMENT BONDS.—Subsection
(b) of section 1400A is amended by striking ‘‘December 31, 2003’’
and inserting ‘‘December 31, 2005’’.
(c) ZERO PERCENT CAPITAL GAINS RATE.—
(1) IN
GENERAL.—Subsection (b) of section 1400B is
amended by striking ‘‘January 1, 2004’’ each place it appears
and inserting ‘‘January 1, 2006’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 1400B(e)(2) is amended—
(i) by striking ‘‘December 31, 2008’’ and inserting
‘‘December 31, 2010’’, and
(ii) by striking ‘‘2008’’ in the heading and inserting
‘‘2010’’.
(B) Section 1400B(g)(2) is amended by striking
‘‘December 31, 2008’’ and inserting ‘‘December 31, 2010’’.
(C) Section 1400F(d) is amended by striking ‘‘December
31, 2008’’ and inserting ‘‘December 31, 2010’’.
(d) FIRST-TIME HOMEBUYER CREDIT.—Subsection (i) of section
1400C is amended by striking ‘‘January 1, 2004’’ and inserting
‘‘January 1, 2006’’.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall take effect on January
1, 2004.
(2) TAX-EXEMPT
ECONOMIC
DEVELOPMENT
BONDS.—The
amendment made by subsection (b) shall apply to obligations
issued after the date of the enactment of this Act.
SEC. 311. DISCLOSURE OF TAX INFORMATION TO FACILITATE COM-
BINED EMPLOYMENT TAX REPORTING.
(a) IN GENERAL.—Paragraph (5) of section 6103(d) (relating
to disclosure to State tax officials and State and local law enforce-
ment agencies) is amended to read as follows:
‘‘(5) 
DISCLOSURE
FOR
COMBINED
EMPLOYMENT
TAX
REPORTING.—
‘‘(A) IN GENERAL.—The Secretary may disclose taxpayer
identity information and signatures to any agency, body,
or commission of any State for the purpose of carrying
out with such agency, body, or commission a combined
Federal and State employment tax reporting program
approved by the Secretary. Subsections (a)(2) and (p)(4)
and sections 7213 and 7213A shall not apply with respect
26 USC 1400
note.
26 USC 1400L
note.
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to disclosures or inspections made pursuant to this para-
graph.
‘‘(B) TERMINATION.—The Secretary may not make any
disclosure under this paragraph after December 31, 2005.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 312. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS
AGAINST REGULAR AND MINIMUM TAX LIABILITY.
(a) IN GENERAL.—Paragraph (2) of section 26(a) is amended—
(1) by striking ‘‘RULE
FOR
2000, 2001, 2002, AND
2003.—’’
and inserting ‘‘RULE FOR TAXABLE YEARS 2000 THROUGH 2005.—
’’, and
(2) by striking ‘‘or 2003’’ and inserting ‘‘2003, 2004, or
2005’’.
(b) CONFORMING PROVISIONS.—
(1) Section 904(h) is amended by striking ‘‘or 2003’’ and
inserting ‘‘2003, 2004, or 2005’’.
(2) The amendments made by sections 201(b), 202(f), and
618(b) of the Economic Growth and Tax Relief Reconciliation
Act of 2001 shall not apply to taxable years beginning during
2004 or 2005.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2003.
SEC. 313. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN
RENEWABLE RESOURCES.
(a) IN GENERAL.—Subparagraphs (A), (B), and (C) of section
45(c)(3) are each amended by striking ‘‘January 1, 2004’’ and
inserting ‘‘January 1, 2006’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall apply to facilities placed in service after December 31,
2003.
SEC. 314. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR
OIL AND NATURAL GAS PRODUCED FROM MARGINAL
PROPERTIES.
(a) IN GENERAL.—Subparagraph (H) of section 613A(c)(6) is
amended by striking ‘‘January 1, 2004’’ and inserting ‘‘January
1, 2006’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to taxable years beginning after December 31, 2003.
SEC. 315. INDIAN EMPLOYMENT TAX CREDIT.
Section 45A(f) (relating to termination) is amended by striking
‘‘December 31, 2004’’ and inserting ‘‘December 31, 2005’’.
SEC. 316. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY
ON INDIAN RESERVATION.
Section 168(j)(8) (relating to termination) is amended by
striking ‘‘December 31, 2004’’ and inserting ‘‘December 31, 2005’’.
SEC. 317. DISCLOSURE OF RETURN INFORMATION RELATING TO STU-
DENT LOANS.
Section 6103(l)(13)(D) (relating to termination) is amended by
striking ‘‘December 31, 2004’’ and inserting ‘‘December 31, 2005’’.
26 USC 613A
note.
26 USC 45 note.
26 USC 26 note.
26 USC 23 note.
26 USC 6103
note.
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SEC. 318. ELIMINATION OF PHASEOUT OF CREDIT FOR QUALIFIED
ELECTRIC VEHICLES FOR 2004 AND 2005.
(a) IN GENERAL.—Paragraph (2) of section 30(b) is amended
to read as follows:
‘‘(2) PHASEOUT.—In the case of any qualified electric vehicle
placed in service after December 31, 2005, the credit otherwise
allowable under subsection (a) (determined after the application
of paragraph (1)) shall be reduced by 75 percent.’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to property placed in service after December 31, 2003.
SEC. 319. ELIMINATION OF PHASEOUT FOR DEDUCTION FOR CLEAN-
FUEL VEHICLE PROPERTY FOR 2004 AND 2005.
(a) IN GENERAL.—Subparagraph (B) of section 179A(b)(1) is
amended to read as follows:
‘‘(B) PHASEOUT.—In the case of any qualified clean-
fuel vehicle property placed in service after December 31,
2005, the limit otherwise allowable under subparagraph
(A) shall be reduced by 75 percent.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to property placed in service after December 31, 2003.
SEC. 320. DISCLOSURES RELATING TO TERRORIST ACTIVITIES.
(a) IN
GENERAL.—Clause (iv) of section 6103(i)(3)(C) and
subparagraph (E) of section 6103(i)(7) are both amended by striking
‘‘December 31, 2003’’ and inserting ‘‘December 31, 2005’’.
(b) DISCLOSURE OF TAXPAYER IDENTITY TO LAW ENFORCEMENT
AGENCIES INVESTIGATING TERRORISM.—Subparagraph (A) of section
6103(i)(7) is amended by adding at the end the following new
clause:
‘‘(v) TAXPAYER
IDENTITY.—For purposes of this
subparagraph, a taxpayer’s identity shall not be treated
as taxpayer return information.’’.
(c) EFFECTIVE DATES.—
(1) IN
GENERAL.—The amendments made by subsection
(a) shall apply to disclosures on or after the date of the enact-
ment of this Act.
(2) SUBSECTION (b).—The amendment made by subsection
(b) shall take effect as if included in section 201 of the Victims
of Terrorism Tax Relief Act of 2001.
SEC. 321. JOINT REVIEW OF STRATEGIC PLANS AND BUDGET FOR
THE INTERNAL REVENUE SERVICE.
(a) IN GENERAL.—Paragraph (2) of section 8021(f) (relating
to joint reviews) is amended by striking ‘‘2004’’ and inserting ‘‘2005’’.
(b) REPORT.—Subparagraph (C) of section 8022(3) (regarding
reports) is amended—
(1) by striking ‘‘2004’’ and inserting ‘‘2005’’, and
(2) by striking ‘‘with respect to—’’ and all that follows
and inserting ‘‘with respect to the matters addressed in the
joint review referred to in section 8021(f)(2).’’.
(c) TIME
FOR JOINT REVIEW.—The joint review required by
section 8021(f)(2) of the Internal Revenue Code of 1986 to be made
before June 1, 2004, shall be treated as timely if made before
June 1, 2005.
Deadline.
26 USC 8021
note.
26 USC 6103
note.
26 USC 179A
note.
26 USC 30 note.
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SEC. 322. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) IN GENERAL.—Paragraphs (2) and (3)(B) of section 220(i)
(defining cut-off year) are each amended by striking ‘‘2003’’ each
place it appears in the text and headings and inserting ‘‘2005’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 220(j) is amended—
(A) in the text by striking ‘‘or 2002’’ each place it
appears and inserting ‘‘2002, or 2004’’, and
(B) in the heading by striking ‘‘OR 2002’’ and inserting
‘‘2002, OR 2004’’.
(2) Subparagraph (A) of section 220(j)(4) is amended by
striking ‘‘and 2002’’ and inserting ‘‘2002, and 2004’’.
(3) Subparagraph (C) of section 220(j)(2) is amended to
read as follows:
‘‘(C) NO LIMITATION FOR 2000 OR 2003.—The numerical
limitation shall not apply for 2000 or 2003.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on January 1, 2004.
(d) TIME FOR FILING REPORTS, ETC.—
(1) The report required by section 220(j)(4) of the Internal
Revenue Code of 1986 to be made on August 1, 2004, shall
be treated as timely if made before the close of the 90-day
period beginning on the date of the enactment of this Act.
(2) The determination and publication required by section
220(j)(5) of such Code with respect to calendar year 2004 shall
be treated as timely if made before the close of the 120-day
period beginning on the date of the enactment of this Act.
If the determination under the preceding sentence is that 2004
is a cut-off year under section 220(i) of such Code, the cut-
off date under such section 220(i) shall be the last day of
such 120-day period.
TITLE IV—TAX TECHNICAL
CORRECTIONS
SEC. 401. AMENDMENTS RELATED TO MEDICARE PRESCRIPTION
DRUG, IMPROVEMENT, AND MODERNIZATION ACT OF
2003.
(a) AMENDMENTS RELATED TO SECTION 1201 OF THE ACT.—
(1) Paragraph (2) of section 26(b) is amended by striking
‘‘and’’ at the end of subparagraph (Q), by striking the period
at the end of subparagraph (R) and inserting ‘‘, and’’, and
by adding at the end the following new subparagraph:
‘‘(S) section 223(f)(4) (relating to additional tax on
health savings account distributions not used for qualified
medical expenses).
(2) Paragraph (3) of section 35(g) is amended to read as
follows:
‘‘(3) MEDICAL AND HEALTH SAVINGS ACCOUNTS.—Amounts
distributed from an Archer MSA (as defined in section 220(d))
or from a health savings account (as defined in section 223(d))
shall not be taken into account under subsection (a).’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect as if included in section 1201 of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003.
26 USC 26 note.
26 USC 26.
Deadlines.
26 USC 220 note.
26 USC 220 note.
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SEC. 402. AMENDMENTS RELATED TO JOBS AND GROWTH TAX RELIEF
RECONCILIATION ACT OF 2003.
(a) AMENDMENTS RELATED TO SECTION 302 OF THE ACT.—
(1) Clause (i) of section 1(h)(1)(D) is amended by inserting
‘‘(determined without regard to paragraph (11))’’ after ‘‘net cap-
ital gain’’.
(2) Subclause (I) of section 1(h)(11)(B)(iii) is amended—
(A) by striking ‘‘section 246(c)(1)’’ and inserting ‘‘section
246(c)’’,
(B) by striking ‘‘120-day period’’ and inserting ‘‘121-
day period’’, and
(C) by striking ‘‘90-day period’’ and inserting ‘‘91-day
period’’.
(3) Clause (ii) of section 1(h)(11)(D) is amended by striking
‘‘an individual’’ and inserting ‘‘a taxpayer to whom this section
applies’’.
(4) Paragraph (4) of section 691(c) is amended by striking
‘‘of any gain’’.
(5)(A) Subparagraph (B) of section 854(b)(1) is amended—
(i) by striking clauses (iii) and (iv), and
(ii) by amending clause (i) to read as follows:
‘‘(i) IN GENERAL.—In any case in which—
‘‘(I) a dividend is received from a regulated
investment company (other than a dividend to
which subsection (a) applies),
‘‘(II) such investment company meets the
requirements of section 852(a) for the taxable year
during which it paid such dividend, and
‘‘(III) the qualified dividend income of such
investment company for such taxable year is less
than 95 percent of its gross income,
then, in computing qualified dividend income, there
shall be taken into account only that portion of such
dividend designated by the regulated investment com-
pany.’’.
(B) Subparagraph (C) of section 854(b)(1) is amended to
read as follows:
‘‘(C) LIMITATIONS.—
‘‘(i) SUBPARAGRAPH
(A).—The aggregate amount
which may be designated as dividends under subpara-
graph (A) shall not exceed the aggregate dividends
received by the company for the taxable year.
‘‘(ii) SUBPARAGRAPH
(B).—The aggregate amount
which may be designated as qualified dividend income
under subparagraph (B) shall not exceed the sum of—
‘‘(I) the qualified dividend income of the com-
pany for the taxable year, and
‘‘(II) the amount of any earnings and profits
which were distributed by the company for such
taxable year and accumulated in a taxable year
with respect to which this part did not apply.’’.
(C) Paragraph (2) of section 854(b) is amended by striking
‘‘as a dividend for purposes of the maximum rate under section
1(h)(11) and’’ and inserting ‘‘as qualified dividend income for
purposes of section 1(h)(11) and as dividends for purposes of’’.
(D) Paragraph (5) of section 854(b) is amended to read
as follows:
26 USC 1.
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‘‘(5) QUALIFIED
DIVIDEND
INCOME.—For purposes of this
subsection, the term ‘qualified dividend income’ has the
meaning given such term by section 1(h)(11)(B).’’.
(E) Paragraph (2) of section 857(c) is amended to read
as follows:
‘‘(2) SECTION (1)(h)(11).—
‘‘(A) IN GENERAL.—In any case in which—
‘‘(i) a dividend is received from a real estate invest-
ment trust (other than a capital gain dividend), and
‘‘(ii) such trust meets the requirements of section
856(a) for the taxable year during which it paid such
dividend,
then, in computing qualified dividend income, there shall
be taken into account only that portion of such dividend
designated by the real estate investment trust.
‘‘(B) LIMITATION.—The aggregate amount which may
be designated as qualified dividend income under subpara-
graph (A) shall not exceed the sum of—
‘‘(i) the qualified dividend income of the trust for
the taxable year,
‘‘(ii) the excess of—
‘‘(I) the sum of the real estate investment trust
taxable income computed under section 857(b)(2)
for the preceding taxable year and the income
subject to tax by reason of the application of the
regulations under section 337(d) for such preceding
taxable year, over
‘‘(II) the sum of the taxes imposed on the
trust for such preceding taxable year under section
857(b)(1) and by reason of the application of such
regulations, and
‘‘(iii) the amount of any earnings and profits which
were distributed by the trust for such taxable year
and accumulated in a taxable year with respect to
which this part did not apply.
‘‘(C) NOTICE TO SHAREHOLDERS.—The amount of any
distribution by a real estate investment trust which may
be taken into account as qualified dividend income shall
not exceed the amount so designated by the trust in a
written notice to its shareholders mailed not later than
60 days after the close of its taxable year.
‘‘(D) QUALIFIED
DIVIDEND
INCOME.—For purposes of
this paragraph, the term ‘qualified dividend income’ has
the meaning given such term by section 1(h)(11)(B).’’.
(F) With respect to any taxable year of a regulated invest-
ment company or real estate investment trust ending on or
before November 30, 2003, the period for providing notice of
the qualified dividend amount to shareholders under sections
854(b)(2) and 857(c)(2)(C) of the Internal Revenue Code of 1986,
as amended by this section, shall not expire before the date
on which the statement under section 6042(c) of such Code
is required to be furnished with respect to the last calendar
year beginning in such taxable year.
(6) Paragraph (2) of section 302(f) of the Jobs and Growth
Tax Relief Reconciliation Act of 2003 is amended to read as
follows:
26 USC 1 note.
26 USC 854 note.
Deadline.
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‘‘(2) PASS-THRU ENTITIES.—In the case of a pass-thru entity
described in subparagraph (A), (B), (C), (D), (E), or (F) of
section 1(h)(10) of the Internal Revenue Code of 1986, as
amended by this Act, the amendments made by this section
shall apply to taxable years ending after December 31, 2002;
except that dividends received by such an entity on or before
such date shall not be treated as qualified dividend income
(as defined in section 1(h)(11)(B) of such Code, as added by
this Act).’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect as if included in section 302 of the Jobs and
Growth Tax Relief Reconciliation Act of 2003.
SEC. 403. AMENDMENTS RELATED TO JOB CREATION AND WORKER
ASSISTANCE ACT OF 2002.
(a) AMENDMENTS RELATED TO SECTION 101 OF THE ACT.—
(1) Clause (i) of section 168(k)(2)(B) is amended to read
as follows:
‘‘(i) IN
GENERAL.—The term ‘qualified property’
includes any property if such property—
‘‘(I) meets the requirements of clauses (i), (ii),
and (iii) of subparagraph (A),
‘‘(II) has a recovery period of at least 10 years
or is transportation property,
‘‘(III) is subject to section 263A, and
‘‘(IV) meets the requirements of clause (ii) or
(iii) of section 263A(f)(1)(B) (determined as if such
clauses also apply to property which has a long
useful 
life 
(within 
the 
meaning 
of 
section
263A(f))).’’.
(2)(A) Subparagraph (D) of section 168(k)(2) is amended
by adding at the end the following new clauses:
‘‘(iii) SYNDICATION.—For purposes of subparagraph
(A)(ii), if—
‘‘(I) property is originally placed in service
after September 10, 2001, by the lessor of such
property,
‘‘(II) such property is sold by such lessor or
any subsequent purchaser within 3 months after
the date such property was originally placed in
service, and
‘‘(III) the user of such property after the last
sale during such 3-month period remains the same
as when such property was originally placed in
service,
such property shall be treated as originally placed
in service not earlier than the date of such last sale.
‘‘(iv) LIMITATIONS RELATED TO USERS AND RELATED
PARTIES.—The term ‘qualified property’ shall not
include any property if—
‘‘(I) the user of such property (as of the date
on which such property is originally placed in
service) or a person which is related (within the
meaning of section 267(b) or 707(b)) to such user
or to the taxpayer had a written binding contract
in effect for the acquisition of such property at
any time on or before September 10, 2001, or
26 USC 168.
26 USC 1 note.
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‘‘(II) in the case of property manufactured,
constructed, or produced for such user’s or person’s
own use, the manufacture, construction, or produc-
tion of such property began at any time on or
before September 10, 2001.’’.
(B) Clause (ii) of section 168(k)(2)(D) is amended by
inserting ‘‘clause (iii) and’’ before ‘‘subparagraph (A)(ii)’’.
(b) AMENDMENTS RELATED TO SECTION 102 OF THE ACT.—
(1) Subparagraph (H) of section 172(b)(1) is amended by
striking ‘‘a taxpayer which has’’.
(2) In the case of a net operating loss for a taxable year
ending during 2001 or 2002—
(A) an application under section 6411(a) of the Internal
Revenue Code of 1986 with respect to such loss shall not
fail to be treated as timely filed if filed before November
1, 2002,
(B) any election made under section 172(b)(3) of such
Code may (notwithstanding such section) be revoked before
November 1, 2002, and
(C) any election made under section 172(j) of such
Code shall (notwithstanding such section) be treated as
timely made if made before November 1, 2002.
(3) Section 102(c)(2) of the Job Creation and Worker Assist-
ance Act of 2002 (Public Law 107–147) is amended by striking
‘‘before January 1, 2003’’ and inserting ‘‘after December 31,
1990’’.
(4)(A) Subclause (I) of section 56(d)(1)(A)(i) is amended
by striking ‘‘attributable to carryovers’’.
(B) Subclause (I) of section 56(d)(1)(A)(ii) is amended—
(i) by striking ‘‘for taxable years’’ and inserting ‘‘from
taxable years’’, and
(ii) 
by 
striking 
‘‘carryforwards’’ 
and 
inserting
‘‘carryovers’’.
(c) AMENDMENTS RELATED TO SECTION 301 OF THE ACT.—
(1) Subparagraph (D) of section 1400L(a)(2) is amended—
(A) by striking ‘‘subchapter B’’ and inserting ‘‘sub-
chapter A’’, and
(B) in clause (ii), by striking ‘‘subparagraph (B)’’ and
inserting ‘‘this paragraph’’.
(2) Subparagraph (D) of section 1400L(b)(2) is amended
by inserting ‘‘, and clause (iv) thereof shall be applied by
substituting ‘qualified New York Liberty Zone property’ for
‘qualified property’ ’’ before the period at the end.
(3) Subsection (c) of section 1400L is amended by adding
at the end the following new paragraph:
‘‘(5) ELECTION OUT.—For purposes of this subsection, rules
similar to the rules of section 168(k)(2)(C)(iii) shall apply.’’.
(4) Paragraph (2) of section 1400L(f) is amended by
inserting before the period ‘‘, determined without regard to
subparagraph (C)(i) thereof’’.
(d) AMENDMENT RELATED TO SECTION 405 OF THE ACT.—The
last sentence of section 4006(a)(3)(E)(iii)(IV) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1306(a)(3)(E)(iii)(IV))
is amended—
(1) by inserting ‘‘or this subparagraph’’ after ‘‘this clause’’
both places it appears, and
Applicability.
26 USC 1400L.
26 USC 56 note.
26 USC 172 note.
26 USC 172.
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(2) by inserting ‘‘(other than sections 4005, 4010, 4011,
and 4043)’’ after ‘‘subsections’’.
(e) AMENDMENT RELATED
TO SECTION 411 OF
THE ACT.—
Subparagraph (B) of section 411(c)(2) of the Job Creation and
Worker Assistance Act of 2002 is amended by striking ‘‘Paragraph
(2)’’ and inserting ‘‘Paragraph (1)’’.
(f) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Job Creation
and Worker Assistance Act of 2002 to which they relate.
SEC. 404. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX
RELIEF RECONCILIATION ACT OF 2001.
(a) AMENDMENT RELATED TO SECTION 401 OF THE ACT.—Clause
(i) of section 530(d)(2)(C) is amended by striking ‘‘higher’’ after
‘‘qualified’’.
(b) AMENDMENTS RELATED TO SECTION 611 OF THE ACT.—
(1) Paragraph (3) of section 45A(c) is amended by inserting
‘‘, except that the base period taken into account for purposes
of such adjustment shall be the calendar quarter beginning
October 1, 1993’’ before the period at the end.
(2) Subparagraph (A) of section 415(d)(4) is amended by
adding at the end the following new sentence: ‘‘This subpara-
graph shall also apply for purposes of any provision of this
title that provides for adjustments in accordance with the
method contained in this subsection, except to the extent pro-
vided in such provision.’’.
(c) AMENDMENT RELATED TO SECTION 614 OF THE ACT.—Clause
(ii) of section 4972(c)(6)(A) is amended to read as follows:
‘‘(ii) the amount of contributions described in sec-
tion 401(m)(4)(A), or’’.
(d) AMENDMENT RELATED TO SECTION 637 OF THE ACT.—Clause
(i) of section 408(p)(6)(A) is amended by adding at the end the
following new sentence: ‘‘For purposes of the preceding sentence,
amounts described in section 6051(a)(3) shall be determined without
regard to section 3401(a)(3).’’.
(e) AMENDMENT RELATED
TO SECTION 641 OF
THE ACT.—
Subparagraph (B) of section 403(a)(4) is amended to read as follows:
‘‘(B) CERTAIN RULES MADE APPLICABLE.—The rules of
paragraphs (2) through (7) and (9) of section 402(c) and
section 402(f) shall apply for purposes of subparagraph
(A).’’.
(f) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001 to which they
relate.
SEC. 405. AMENDMENTS RELATED TO COMMUNITY RENEWAL TAX
RELIEF ACT OF 2000.
(a) AMENDMENTS RELATED TO SECTION 401 OF THE ACT.—
(1) Subsection (c) of section 1234B is amended by adding
at the end the following new sentence: ‘‘The Secretary may
prescribe regulations regarding the status of contracts the
values of which are determined directly or indirectly by ref-
erence to any index which becomes (or ceases to be) a narrow-
based security index (as defined for purposes of section
1256(g)(6)).’’.
(2) Paragraph (6) of section 1256(g) is amended by adding
at the end the following new sentence: ‘‘The Secretary may
26 USC 1256.
26 USC 1234B.
26 USC 45A note.
26 USC 403.
26 USC 408.
26 USC 4972.
26 USC 415.
26 USC 45A.
26 USC 530.
26 USC 56 note.
26 USC 137.
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prescribe regulations regarding the status of options the values
of which are determined directly or indirectly by reference
to any index which becomes (or ceases to be) a narrow-based
security index (as so defined).’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect as if included in section 401 of the Community
Renewal Tax Relief Act of 2000.
SEC. 406. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.
(a) AMENDMENT RELATED
TO SECTION 211 OF
THE ACT.—
Subparagraph (B) of section 529(c)(5) is amended to read as follows:
‘‘(B) TREATMENT
OF
DESIGNATION
OF
NEW
BENE-
FICIARY.—The taxes imposed by chapters 12 and 13 shall
apply to a transfer by reason of a change in the designated
beneficiary under the program (or a rollover to the account
of a new beneficiary) unless the new beneficiary is—
‘‘(i) assigned to the same generation as (or a higher
generation than) the old beneficiary (determined in
accordance with section 2651), and
‘‘(ii) a member of the family of the old beneficiary.’’.
(b) AMENDMENT RELATED TO SECTION 213 OF THE ACT.—Clause
(iii) of section 530(d)(4)(B) is amended by striking ‘‘account holder’’
and inserting ‘‘designated beneficiary’’.
(c) AMENDMENT RELATED TO SECTION 226 OF THE ACT.—Section
1397E is amended by adding at the end the following new sub-
section:
‘‘(i) S CORPORATIONS.—In the case of a qualified zone academy
bond held by an S corporation which is an eligible taxpayer—
‘‘(1) each shareholder shall take into account such share-
holder’s pro rata share of the credit, and
‘‘(2) no basis adjustments to the stock of the corporation
shall be made under section 1367 on account of this section.’’.
(d) AMENDMENT RELATED
TO SECTION 311 OF
THE ACT.—
Subparagraph (B) of section 55(b)(3) is amended by striking ‘‘the
amount on which a tax is determined under’’ and inserting ‘‘an
amount equal to the excess described in’’.
(e) AMENDMENTS RELATED TO SECTION 1001 OF THE ACT.—
(1) Paragraph (2) of section 1259(c) is amended by striking
‘‘The term ‘constructive sale’ shall not include any contract’’
and inserting ‘‘A taxpayer shall not be treated as having made
a constructive sale solely because the taxpayer enters into
a contract’’.
(2) Subparagraphs (A) and (B)(i) of section 1259(c)(3) are
each amended by striking ‘‘be treated as a constructive sale’’
and inserting ‘‘cause a constructive sale’’.
(3) Clause (i) of section 1259(c)(3)(A) is amended by striking
‘‘before the end of’’ and inserting ‘‘on or before’’.
(4) Clause (ii) of section 1259(c)(3)(B) is amended by
striking ‘‘substantially similar’’.
(5) Subclause (I) of section 1259(c)(3)(B)(ii) is amended
to read as follows:
‘‘(I) which would (but for this subparagraph)
cause the requirement of subparagraph (A)(iii) not
to be met with respect to the transaction described
in clause (i) of this subparagraph,’’.
(6) Subclause (II) of such section is amended by inserting
‘‘on or’’ before ‘‘before the 30th day’’.
26 USC 1259.
26 USC 55.
26 USC 1397E.
26 USC 530.
Applicability.
26 USC 529.
26 USC 1234B
note.
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(7) The heading for subparagraph (B) of section 1259(c)(3)
is amended by striking ‘‘POSITIONS WHICH ARE REESTABLISHED’’
and inserting ‘‘CERTAIN CLOSED TRANSACTIONS WHERE RISK OF
LOSS ON APPRECIATED FINANCIAL POSITION DIMINISHED’’.
(f) AMENDMENTS RELATED TO SECTION 1015 OF THE ACT.—
(1) Section 246(c)(1)(A) is amended by striking ‘‘90-day
period’’ and inserting ‘‘91-day period’’.
(2) Section 246(c)(2)(B) is amended—
(A) by striking ‘‘180-day period’’ and inserting ‘‘181-
day period’’, and
(B) by striking ‘‘90-day period’’ and inserting ‘‘91-day
period’’.
(g) AMENDMENTS RELATED TO SECTION 1053 OF THE ACT.—
(1) Section 901(k)(1)(A)(i) is amended by striking ‘‘30-day
period’’ and inserting ‘‘31-day period’’.
(2) Section 901(k)(3)(B) is amended—
(A) by striking ‘‘90-day period’’ and inserting ‘‘91-day
period’’, and
(B) by striking ‘‘30-day period’’ and inserting ‘‘31-day
period’’.
(h) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Taxpayer
Relief Act of 1997 to which they relate.
SEC. 407. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTEC-
TION ACT OF 1996.
(a) AMENDMENT RELATED
TO SECTION 1307 OF
THE ACT.—
Subsection (b) of section 1377 (relating to post-termination transi-
tion period) is amended by adding at the end the following new
paragraph:
‘‘(3) SPECIAL RULES FOR AUDIT RELATED POST-TERMINATION
TRANSITION PERIODS.—
‘‘(A) NO
APPLICATION
TO
CARRYOVERS.—Paragraph
(1)(B) shall not apply for purposes of section 1366(d)(3).
‘‘(B) LIMITATION ON APPLICATION TO DISTRIBUTIONS.—
Paragraph (1)(B) shall apply to a distribution described
in section 1371(e) only to the extent that the amount of
such distribution does not exceed the aggregate increase
(if any) in the accumulated adjustments account (within
the meaning of section 1368(e)) by reason of the adjust-
ments referred to in such paragraph.’’.
(b) AMENDMENTS RELATED TO SECTION 1432 OF THE ACT.—
Paragraph (26) of section 401(a) is amended by striking subpara-
graph (C) and by redesignating subparagraphs (D) through (I) as
subparagraphs (C) through (H), respectively.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect as if included in the provisions of the Small
Business Job Protection Act of 1996 to which they relate.
SEC. 408. CLERICAL AMENDMENTS.
(a) INTERNAL REVENUE CODE OF 1986.—
(1) Subclause (II) of section 1(g)(7)(B)(ii) is amended by
striking ‘‘10 percent.’’ and inserting ‘‘10 percent’’.
(2) Clause (ii) of section 1(h)(6)(A) is amended—
(A) in subclause (I), by striking ‘‘(5)(B)’’ and inserting
‘‘(4)(B)’’, and
(B) in subclause (II), by striking ‘‘(5)(A)’’ and inserting
‘‘(4)(A)’’.
26 USC 1.
26 USC 401 note.
26 USC 401.
26 USC 1377.
26 USC 55 note.
26 USC 901.
26 USC 246.
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(3) Subclause (I) of section 42(d)(2)(D)(iii) is amended by
striking ‘‘section 179(b)(7)’’ and inserting ‘‘section 179(d)(7)’’.
(4) Subsection (f) of section 72 is amended by striking
‘‘Economic Growth and Tax Relief Reconciliation Act of 2001’’
and inserting ‘‘Economic Growth and Tax Relief Reconciliation
Act of 2001)’’.
(5)(A) Section 138 and paragraph (2) of section 26(b) are
each amended by striking ‘‘Medicare+Choice MSA’’ each place
it appears in the text and inserting ‘‘Medicare Advantage MSA’’.
(B) The heading for section 138 is amended to read as
follows:
‘‘SEC. 138. MEDICARE ADVANTAGE MSA.’’.
(C) The heading for subsection (b) of section 138 is amended
by striking ‘‘MEDICARE+CHOICE MSA’’ and inserting ‘‘MEDICARE
ADVANTAGE MSA’’.
(D) The heading for paragraph (2) of section 138(c) is
amended by striking ‘‘MEDICARE+CHOICE MSA’’ and inserting
‘‘MEDICARE ADVANTAGE MSA’’.
(E) Clause (i) of section 138(c)(2)(C) is amended by striking
‘‘Medicare+Choice MSAs’’ and inserting ‘‘Medicare Advantage
MSAs’’.
(F) Subsection (f) of section 138 is amended by striking
‘‘Medicare+Choice MSA’s’’ and inserting ‘‘Medicare Advantage
MSAs’’.
(G) The item relating to section 138 in the table of sections
for part III of subchapter B of chapter 1 is amended to read
as follows:
‘‘Sec. 138. Medicare Advantage MSA.’’.
(6) Clause (ii) of section 168(k)(2)(D) is amended—
(A) by inserting ‘‘is’’ after ‘‘if property’’, and
(B) by striking ‘‘is’’ in subclause (I).
(7) Each of the following provisions is amended by inserting
‘‘Robert T. Stafford’’ before ‘‘Disaster Relief and Emergency
Assistance Act’’:
(A) Section 165(i)(1).
(B) Section 165(k).
(C) Section 1033(h)(3).
(D) Section 5064(b)(3).
(E) Section 5708(a).
(8) The heading for subparagraph (F) of section 168(k)(2)
is amended by striking ‘‘MINIUMUM’’ and inserting ‘‘MINIMUM’’.
(9) Paragraph (1) of section 246A(b) is amended by striking
‘‘section 243(c)(4)’’ and inserting ‘‘section 243(d)(4)’’.
(10) Clause (ii) of section 263(g)(2)(B) is amended by
striking ‘‘1278’’ and inserting ‘‘1276’’.
(11) Clause (ii) of section 403(b)(7)(A) is amended by
striking 
‘‘section 
3121(a)(1)(D)’’ 
and 
inserting 
‘‘section
3121(a)(5)(D)’’.
(12) Paragraph (1) of section 408(a) is amended by striking
‘‘457(e)(16)’’ and inserting ‘‘457(e)(16),’’.
(13) Paragraph (2) of section 408(n) is amended by striking
‘‘section 101(6)’’ and inserting ‘‘paragraph (6) or (7) of section
101’’.
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PUBLIC LAW 108–311—OCT. 4, 2004
(14) The table contained in section 411(a)(12)(B) is amended
by striking the last line and inserting the following:
‘‘6 or more ...................................................................................
100.’’.
(15) Paragraph (7) of section 414(q) is amended by striking
‘‘section’’ and inserting ‘‘subsection’’.
(16) Subparagraph (A) of section 416(i)(1) is amended in
the matter following clause (iii) by striking ‘‘in the case of
plan years’’ and inserting ‘‘In the case of plan years’’.
(17) Subparagraph (C) of section 415(c)(7) is amended by
striking ‘‘subparagraph (D)’’ and inserting ‘‘subparagraph (B)’’.
(18) The item relating to section 1234B in the table of
sections for part IV of subchapter P of chapter 1 is amended
to read as follows:
‘‘Sec. 1234B. Gains or losses from securities futures contracts.’’.
(19) Subsection (h) of section 1296 is amended by striking
‘‘paragraphs (2) and (3) of section 851(b)’’ and inserting ‘‘section
851(b)(2)’’.
(20) The table of sections for part II of subchapter A of
chapter 11 is amended by inserting after the item relating
to section 2010 the following new item:
‘‘Sec. 2011. Credit for State death taxes.’’.
(21) The table of sections for subchapter A of chapter
13 is amended by inserting after the item relating to section
2603 the following new item:
‘‘Sec. 2604. Credit for certain State taxes.’’.
(22) Subsection (c) of section 4973 is amended by striking
‘‘subsection (a)(2)’’ and inserting ‘‘subsection (a)(3)’’.
(23) Paragraph (2) of section 4978(a) is amended by striking
‘‘60 percent’’ and inserting ‘‘(60 percent’’.
(24) Paragraph (4) of section 6103(p) is amended by striking
‘‘subsection (l)(16) or (17)’’ each place it appears and inserting
‘‘subsection (l)(16) or (18)’’.
(b) OTHER LAWS.—
(1) Subsection (c) of section 156 of the Community Renewal
Tax Relief Act of 2000 (114 Stat. 2763A–623) is amended in
the first sentence by inserting ‘‘than’’ after ‘‘not later’’.
(2) Paragraph (6) of section 1(a) of Public Law 107–22
shall be applied by substituting ‘‘part VIII’’ for ‘‘part VII’’ in
such paragraph.
(3) Subparagraph (A) of section 1(b)(3) of Public Law 107–
22 shall be applied by substituting ‘‘EDUCATIONAL’’ for ‘‘EDU-
CATION’’ in the matter preceding subparagraph (A) in such
section.
(4) Paragraph (1) of section 204(e) of the Railroad Retire-
ment and Survivors’ Improvement Act of 2001 shall be applied
by 
substituting 
‘‘Section 
24(d)(2)(A)(iii)’’ 
for 
‘‘Section
24(d)(3)(A)(iii)’’ in such paragraph.
(5) Paragraph (2) of section 412(b) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 shall be applied
by substituting ‘‘Section 221(f)(1)’’ for ‘‘Section 221(g)(1)’’ in
such paragraph.
(6) Subsection (b) of section 531 of the Economic Growth
and Tax Relief Reconciliation Act of 2001 shall be applied
by substituting ‘‘section’’ for ‘‘subsection’’ in such subsection.
26 USC 2011
note.
26 USC 221.
26 USC 24.
26 USC 72.
26 USC 1400E
note.
Applicability.
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118 STAT. 1193
PUBLIC LAW 108–311—OCT. 4, 2004
LEGISLATIVE HISTORY—H.R. 1308:
HOUSE REPORTS: No. 108–696 (Comm. of Conference).
CONGRESSIONAL RECORD:
Vol. 149 (2003): Mar. 19, considered and passed House.
June 5, considered and passed Senate, amended.
June 12, House concurred in Senate amendments with an
amendment pursuant to H. Res. 270.
Vol. 150 (2004): Sept. 23, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 40 (2004):
Oct. 4, Presidential remarks.
(7) Paragraph (3) of section 619(c) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 shall be applied
by substituting ‘‘after the item relating to section 45D’’ for
‘‘at the end’’ in such paragraph.
(8) The table contained in section 203(a)(4)(B) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1053(a)(4)(B)) is amended by striking the last line and inserting
the following:
‘‘6 or more ...................................................................................
100.’’.
(9) Paragraph (3) of section 652(b) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 shall be applied
by inserting ‘‘each place it appears’’ before ‘‘in the next to
last sentence’’ in such paragraph.
Approved October 4, 2004.
26 USC 4972.
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