118 HR 7024 EH: Tax Relief for American Families and Workers Act of 2024
U.S. House of Representatives
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents; etc
(a)This Act may be cited as the Tax Relief for American Families and Workers Act of 2024
. (b)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)The table of contents of this Act is as follows: Sec. 1. Short title; table of contents; etc. Title I—Tax Relief for Working Families Sec. 101. Per-child calculation of refundable portion of child tax credit. Sec. 102. Increase in refundable portion. Sec. 103. Inflation of credit amount. Sec. 104. Rule for determination of earned income. Sec. 105. Special rule for certain early-filed 2023 returns. Title II—American Innovation and Growth Sec. 201. Deduction for domestic research and experimental expenditures. Sec. 202. Extension of allowance for depreciation, amortization, or depletion in determining the limitation on business interest. Sec. 203. Extension of 100 percent bonus depreciation. Sec. 204. Increase in limitations on expensing of depreciable business assets. Title III—Increasing Global Competitiveness Subtitle A—United States-Taiwan Expedited Double-Tax Relief Act Sec. 301. Short title. Sec. 302. Special rules for taxation of certain residents of Taiwan. Subtitle B—United States-Taiwan Tax Agreement Authorization Act Sec. 311. Short title. Sec. 312. Definitions. Sec. 313. Authorization to negotiate and enter into agreement. Sec. 314. Consultations with Congress. Sec. 315. Approval and implementation of agreement. Sec. 316. Submission to Congress of agreement and implementation policy. Sec. 317. Consideration of approval legislation and implementing legislation. Sec. 318. Relationship of agreement to Internal Revenue Code of 1986. Sec. 319. Authorization of subsequent tax agreements relative to Taiwan. Sec. 320. United States treatment of double taxation matters with respect to Taiwan. Title IV—Assistance for Disaster-Impacted Communities Sec. 401. Short title. Sec. 402. Extension of rules for treatment of certain disaster-related personal casualty losses. Sec. 403. Exclusion from gross income for compensation for losses or damages resulting from certain wildfires. Sec. 404. East Palestine disaster relief payments. Title V—More Affordable housing Sec. 501. State housing credit ceiling increase for low-income housing credit. Sec. 502. Tax-exempt bond financing requirement. Title VI—Tax Administration and Eliminating Fraud Sec. 601. Increase in threshold for requiring information reporting with respect to certain payees. Sec. 602. Enforcement provisions with respect to COVID-related employee retention credits. <enum>I</enum><header>Tax Relief for Working Families</header> <section id="H06E25436D15B421C83AE5264B1113868"><enum>101.</enum><header>Per-child calculation of refundable portion of child tax credit</header> <subsection commented="no" display-inline="no-display-inline" id="HACEDB23D91A442BB839C2AF7E4D04453"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/24">section 24(h)(5)</external-xref> is amended to read as follows:</text>
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<subparagraph id="H7192B6218C8F42C3A55E85C80BC831A4"><enum>(A)</enum><header>In general</header><text>In applying subsection (d)—</text> <clause commented="no" display-inline="no-display-inline" id="H9EBCA96D1183400F9CB603767F087AB0"><enum>(i)</enum><text display-inline="yes-display-inline">the amount determined under paragraph (1)(A) of such subsection with respect to any qualifying child shall not exceed $1,400, and such paragraph shall be applied without regard to paragraph (4) of this subsection, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H34B2813AE39E4A6BA581E3B88A2EC957"><enum>(ii)</enum><text display-inline="yes-display-inline">paragraph (1)(B) of such subsection shall be applied by multiplying each of—</text> <subclause commented="no" display-inline="no-display-inline" id="H986E7EDF0A77493CA2157ACDF6085FA3"><enum>(I)</enum><text>the amount determined under clause (i) thereof, and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H3956ED89FDC247C0976589701FE7D171"><enum>(II)</enum><text>the excess determined under clause (ii) thereof,</text></subclause><continuation-text continuation-text-level="clause">by the number of qualifying children of the taxpayer.</continuation-text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H86B2545999D847F985A6222DA20C49C0"><enum>(b)</enum><header>Conforming amendment</header><text>The heading of paragraph (5) of <external-xref legal-doc="usc" parsable-cite="usc/26/24">section 24(h)</external-xref> is amended by striking <quote><header-in-text style="OLC" level="paragraph">Maximum amount of</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">Special rules for</header-in-text></quote>.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4F001DBB6190475EA23B425699D4EF91"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section> <section commented="no" display-inline="no-display-inline" id="HC8B2AFC395A84CE5B3EBB33D2123FFB6"><enum>102.</enum><header>Increase in refundable portion</header> <subsection commented="no" display-inline="no-display-inline" id="H670EAC64775F4ECFB5CE3955D76A91E2"><enum>(a)</enum><header>In general</header><text>Paragraph (5) of <external-xref legal-doc="usc" parsable-cite="usc/26/24">section 24(h)</external-xref> is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:</text>
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<subparagraph commented="no" display-inline="no-display-inline" id="H54663ABA862E411D9C84DB338A499E9B"><enum>(B)</enum><header>Amounts for 2023, 2024, and 2025</header><text>In the case of a taxable year beginning after 2022, subparagraph (A) shall be applied by substituting for <quote>$1,400</quote>—</text> <clause commented="no" display-inline="no-display-inline" id="H14EA9DEC25A9474280B47DDA9291F027"><enum>(i)</enum><text>in the case of taxable year 2023, <quote>$1,800</quote>,</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HA9591C6F3D94419E9870065AE33BC679"><enum>(ii)</enum><text>in the case of taxable year 2024, <quote>$1,900</quote>, and</text></clause> <clause commented="no" display-inline="no-display-inline" id="H3E4EC3E6EC344B2EBDAB1208865CCC3E"><enum>(iii)</enum><text>in the case of taxable year 2025, <quote>$2,000</quote>.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H1FFD82C4F2C84E07B11E57AD91A56344"><enum>(b)</enum><header>Conforming amendment</header><text>Subparagraph (C) of section 24(h)(5), as redesignated by subsection (a), is amended by inserting <quote>and before 2023</quote> after <quote>2018</quote>.</text></subsection> <subsection id="H35DA9DF38C8C4680BB8ABBF24E0DD2A1"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H2E02DBBFE7324C32BB8984E053911AE9"><enum>103.</enum><header>Inflation of credit amount</header>
<subsection commented="no" display-inline="no-display-inline" id="H2B71E69533EA451587DF430FF9B27EC7"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/24">section 24(h)</external-xref> is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="H95FE6A65CA6C4A999E037BB9D724C125"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text style="OLC" level="paragraph">amount</header-in-text>.—Subsection</quote> and inserting “<header-in-text level="paragraph" style="OLC">amount</header-in-text>.—</text>
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<subparagraph commented="no" display-inline="no-display-inline" id="HD1D7A011BCCB401B9A5933816AA75545"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H5E750F8925A843EBB060A471FDE47270"><enum>(2)</enum><text>by adding at the end the following new subparagraph:</text>
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<subparagraph id="HD593D773DE504BA2ADADE19D554AA0DE"><enum>(B)</enum><header>Adjustment for inflation</header><text>In the case of a taxable year beginning after 2023, the $2,000 amounts in subparagraph (A) and paragraph (5)(B)(iii) shall each be increased by an amount equal to—</text> <clause id="H749157DCE43247FAADED8385066098E8"><enum>(i)</enum><text>such dollar amount, multiplied by</text></clause>
<clause id="HFFD69B78AFA547B2B5D23F871F1DB1DD"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>2022</quote> for <quote>2016</quote> in subparagraph (A)(ii) thereof.</text></clause><continuation-text continuation-text-level="subparagraph">If any increase under this clause is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H216788CEB63040E49AC43DF1C06BF576"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HA5749BA9A76D49C2A4BE43FC13421B12"><enum>104.</enum><header>Rule for determination of earned income</header>
<subsection commented="no" display-inline="no-display-inline" id="H1067F89903BE40D29FC13BACBCCE697F"><enum>(a)</enum><header>In general</header><text>Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/24">section 24(h)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="HB73C6E7F5A1740DCB172EE39FFFB4D63"><enum>(1)</enum><text>by striking <quote><header-in-text style="OLC" level="paragraph">credit</header-in-text>.—Subsection</quote> and inserting “<header-in-text level="paragraph" style="OLC">credit</header-in-text>.—</text>
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<subparagraph commented="no" display-inline="no-display-inline" id="H67D02411DC584AC6BBC4E77A336BA7CA"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H8C2E3673AC944E9D921759E616D8ED80"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new subparagraphs</text>
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<subparagraph id="HEE8AAA23FAF540DA9EFC083609DF437A"><enum>(B)</enum><header>Rule for determination of earned income</header>
<clause id="HDEE0B7F003B948C2BCB1CE5F18768A6F"><enum>(i)</enum><header>In general</header><text>In the case of a taxable year beginning after 2023, if the earned income of the taxpayer for such taxable year is less than the earned income of the taxpayer for the preceding taxable year, subsection (d)(1)(B)(i) may, at the election of the taxpayer, be applied by substituting—</text> <subclause id="HC8C41428414A4158B6DAA3083752996C"><enum>(I)</enum><text>the earned income for such preceding taxable year, for</text></subclause>
<subclause id="H750370AF094A42FD95330ACE215C1554"><enum>(II)</enum><text>the earned income for the current taxable year.</text></subclause></clause> <clause id="HC316EAC2E5A04A57AB4B72D68DDFA168"><enum>(ii)</enum><header>Application to joint returns</header><text>For purposes of clause (i), in the case of a joint return, the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such preceding taxable year.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HF6E9C991C9DD4FCD98D6C9BB858B746C"><enum>(b)</enum><header>Errors treated as mathematical errors</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/6213">section 6213(g)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>and</quote> at the end of subparagraph (U), by striking the period at the end of subparagraph (V) and inserting <quote>, and</quote>, and by inserting after subparagraph (V) the following new subparagraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H0945C37C2B5347D38002EA6D642CFD9B"> <subparagraph commented="no" display-inline="no-display-inline" id="HD6DFAFA5F22943568EABE0949732CF6D"><enum>(W)</enum><text display-inline="yes-display-inline">in the case of a taxpayer electing the application of section 24(h)(6)(B) for any taxable year, an entry on a return of earned income pursuant to such section which is inconsistent with the amount of such earned income determined by the Secretary for the preceding taxable year.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H5FA1CBE15CD94BFBAFD9DD1121E6A6F2"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023.</text></subsection></section> <section id="HEA409D4DDD284B3AB3FACBD908CF0351"><enum>105.</enum><header>Special rule for certain early-filed 2023 returns</header><text display-inline="no-display-inline">In the case of an individual who claims, on the taxpayer’s return of tax for the first taxable year beginning after December 31, 2022, a credit under <external-xref legal-doc="usc" parsable-cite="usc/26/24">section 24</external-xref> of the Internal Revenue Code of 1986 which is determined without regard to the amendments made by sections 101 and 102 of this Act, the Secretary of the Treasury (or the Secretary’s delegate) shall, to the maximum extent practicable—</text>
<paragraph id="HC5856CB418AA450AB03238CE30A754DF"><enum>(1)</enum><text>redetermine the amount of such credit (after taking into account such amendments) on the basis of the information provided by the taxpayer on such return, and</text></paragraph> <paragraph id="HC616B981BAE04B339A9A1D115398E129"><enum>(2)</enum><text display-inline="yes-display-inline">to the extent that such redetermination results in an overpayment of tax, credit or refund such overpayment as expeditiously as possible.</text></paragraph></section>
<enum>II</enum><header>American Innovation and Growth</header>
<section id="H4075223D141441E9A23A83B2F53B8A5D" commented="no"><enum>201.</enum><header>Deduction for domestic research and experimental expenditures</header>
<subsection id="HEFDD5162A02B48F790320EB950E5EC07" commented="no"><enum>(a)</enum><header>Delay of amortization of domestic research and experimental expenditures</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/174">Section 174</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block style="OLC" id="HAEDBA2653B4A4718A3868909414D67FB" display-inline="no-display-inline"> <subsection id="HB838F109EEB7402C806F739000ED4245" commented="no"><enum>(e)</enum><header>Suspension of application of section to domestic research and experimental expenditures</header><text display-inline="yes-display-inline">In the case of any domestic research or experimental expenditures (as defined in section 174A(b)), this section—</text>
<paragraph id="HAAE91D90A8044611838C8B784ADFF1F6" commented="no"><enum>(1)</enum><text>shall apply to such expenditures paid or incurred in taxable years beginning after December 31, 2025, and</text></paragraph> <paragraph id="H5FF18ACA4CCE48F5949E732E59E95E3F" commented="no"><enum>(2)</enum><text>shall not apply to such expenditures paid or incurred in taxable years beginning on or before such date.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H1BF37A6FA77340F98739E79391448B5E" commented="no"><enum>(b)</enum><header>Reinstatement of expensing for domestic research and experimental expenditures</header><text display-inline="yes-display-inline">Part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 174 the following new section:</text> <quoted-block style="OLC" id="HBA99537F52784875ADB577AD95856F4B" display-inline="no-display-inline"> <section id="H338414383E154552BA956BF2EDC6AB80" commented="no"><enum>174A.</enum><header>Temporary rules for domestic research and experimental expenditures</header> <subsection id="H1312FC52A7C540A39BC68778312446EE" commented="no"><enum>(a)</enum><header>Treatment as expenses</header><text display-inline="yes-display-inline">Notwithstanding section 263, there shall be allowed as a deduction any domestic research or experimental expenditures which are paid or incurred by the taxpayer during the taxable year.</text></subsection>
<subsection id="HFE7F06B4233C463AA7495A0AD8F17D8A" commented="no"><enum>(b)</enum><header>Domestic research or experimental expenditures</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>domestic research or experimental expenditures</term> means research or experimental expenditures paid or incurred by the taxpayer in connection with the taxpayer’s trade or business other than such expenditures which are attributable to foreign research (within the meaning of section 41(d)(4)(F)).</text></subsection> <subsection id="HCF70786B55074EA193E44A460AA37166" commented="no"><enum>(c)</enum><header>Amortization of certain domestic research and experimental expenditures</header> <paragraph id="H31F3AD0F6E884D96AD11A80A4F9D58ED" commented="no"><enum>(1)</enum><header>In general</header><text>At the election of the taxpayer, made in accordance with regulations or other guidance provided by the Secretary, in the case of domestic research or experimental expenditures which would (but for subsection (a)) be chargeable to capital account but not chargeable to property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion), subsection (a) shall not apply and the taxpayer shall—</text>
<subparagraph id="H3E7EE0B7A86F48C68B7A1D0B8F289EC6" commented="no"><enum>(A)</enum><text>charge such expenditures to capital account, and</text></subparagraph> <subparagraph id="HF34B49B52F44445F8ED13B449BA15C1C" commented="no"><enum>(B)</enum><text>be allowed an amortization deduction of such expenditures ratably over such period of not less than 60 months as may be selected by the taxpayer (beginning with the month in which the taxpayer first realizes benefits from such expenditures).</text></subparagraph></paragraph>
<paragraph id="H3399408E399D4FF1B804C17563891E7D" commented="no"><enum>(2)</enum><header>Time for and scope of election</header><text>The election provided by paragraph (1) may be made for any taxable year, but only if made not later than the time prescribed by law for filing the return for such taxable year (including extensions thereof). The method so elected, and the period selected by the taxpayer, shall be adhered to in computing taxable income for the taxable year for which the election is made and for all subsequent taxable years unless, with the approval of the Secretary, a change to a different method (or to a different period) is authorized with respect to part or all of such expenditures. The election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election.</text></paragraph></subsection> <subsection id="H45A4A5C83F2148E4A13415C19D4F3113" commented="no"><enum>(d)</enum><header>Election to capitalize expenses</header><text>In the case of a taxpayer which elects (at such time and in such manner as the Secretary may provide) the application of this subsection, subsections (a) and (c) shall not apply and domestic research or experimental expenditures shall be chargeable to capital account. Such election shall not apply to any expenditure paid or incurred during any taxable year before the taxable year for which the taxpayer makes the election and may be made with respect to part of the expenditures paid or incurred during any taxable year only with the approval of the Secretary.</text></subsection>
<subsection id="HACE92924483E4C978C48A0DE34DDDF2D" commented="no"><enum>(e)</enum><header>Special rules</header>
<paragraph id="H298AC77638024234B9F0055B0895F6E3" commented="no"><enum>(1)</enum><header>Land and other property</header><text>This section shall not apply to any expenditure for the acquisition or improvement of land, or for the acquisition or improvement of property to be used in connection with the research or experimentation and of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.) or section 611 (relating to allowance for depletion); but for purposes of this section allowances under section 167, and allowances under section 611, shall be considered as expenditures.</text></paragraph> <paragraph id="H82A7DDFC744C464F8CC6BAA77E883A1A" commented="no"><enum>(2)</enum><header>Exploration expenditures</header><text>This section shall not apply to any expenditure paid or incurred for the purpose of ascertaining the existence, location, extent, or quality of any deposit of ore or other mineral (including oil and gas).</text></paragraph>
<paragraph id="H57E5A182C27F44B1A2E63A13DFBCED26" commented="no"><enum>(3)</enum><header>Software development</header><text>For purposes of this section, any amount paid or incurred in connection with the development of any software shall be treated as a research or experimental expenditure.</text></paragraph></subsection> <subsection id="HDF3CC56B426A4F538778689EB4233425" commented="no"><enum>(f)</enum><header>Termination</header> <paragraph id="HEC0E2AE451E34A9899F56442545164A2" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">This section shall not apply to amounts paid or incurred in taxable years beginning after December 31, 2025.</text></paragraph>
<paragraph id="HFAECCF18F85C47CA825FF2687C0A9CDE" commented="no"><enum>(2)</enum><header>Change in method of accounting</header><text>In the case of a taxpayer’s first taxable year beginning after December 31, 2025, paragraph (1) (and the corresponding application of section 174) shall be treated as a change in method of accounting for purposes of section 481 and—</text> <subparagraph id="HECE6540BDE3140CBA58E124A4F22EC14" commented="no"><enum>(A)</enum><text>such change shall be treated as initiated by the taxpayer,</text></subparagraph>
<subparagraph id="HB75FA70502CB434B9D98A0701C68461F" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">such change shall be treated as made with the consent of the Secretary, and</text></subparagraph> <subparagraph id="H0DB758CDF4C44E82AAC28FF8A03C96C9" commented="no"><enum>(C)</enum><text>such change shall be applied only on a cut-off basis for any domestic research or experimental expenditures paid or incurred in taxable years beginning after December 31, 2025, and no adjustment under section 481(a) shall be made.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H5DED3C48BCF54B82809149465BF3EA6D" commented="no"><enum>(c)</enum><header>Coordination with certain other provisions</header>
<paragraph id="HE0BCFC430AAD489FB12544E299DC6783" commented="no"><enum>(1)</enum><header>Research credit</header>
<subparagraph id="H5AD2D28398D941108B65C10115FE82A0" commented="no"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/41">Section 41(d)(1)(A)</external-xref> is amended by inserting <quote>or domestic research or experimental expenditures under section 174A</quote> after <quote>section 174</quote>.</text></subparagraph> <subparagraph id="HF3D7E5375AC2453D929FF1A0D7E7493A" commented="no"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/280C">Section 280C(c)(1)</external-xref> is amended to read as follows:</text>
<quoted-block style="OLC" id="H399A8C2477CE4A16A59E3C8FD09A1BD6" display-inline="no-display-inline">
<paragraph id="H3BD105AEB69B4D5FB94D6E9F02D1AC7A" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The domestic research or experimental expenditures otherwise taken into account under section 174 or 174A (as the case may be) shall be reduced by the amount of the credit allowed under section 41(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HF4B65CE53E604E07A42EB63B72647529" commented="no"><enum>(2)</enum><header>AMT adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/56">Section 56(b)(2)</external-xref> is amended by striking <quote>174(a)</quote> each place it appears and inserting <quote>174A(a)</quote>.</text></paragraph>
<paragraph id="H41A68BAA95744D92A46D54EA3635336D" commented="no"><enum>(3)</enum><header>Optional 10-year writeoff</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/59">Section 59(e)(2)(B)</external-xref> is amended by striking <quote>section 174(a) (relating to research and experimental expenditures)</quote> and inserting <quote>section 174A(a) (relating to temporary rules for domestic research and experimental expenditures)</quote>.</text></paragraph> <paragraph id="H02AAEE8DB61B4E0E8D3D8517799B016A" commented="no"><enum>(4)</enum><header>Qualified small issue bonds</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/144">Section 144(a)(4)(C)(iv)</external-xref> is amended by striking <quote>174(a)</quote> and inserting <quote>174A(a)</quote>.</text></paragraph>
<paragraph id="HCFA7A01E2D7B4D4DAFCCB3AB85AF3FD2" commented="no"><enum>(5)</enum><header>Start-up expenditures</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/195">Section 195(c)(1)</external-xref> is amended by striking <quote>or 174</quote> in the last sentence and inserting <quote>174, or 174A</quote>.</text></paragraph> <paragraph id="H3998E4D72F024F74B99B3FE5A56EA7AD" commented="no"><enum>(6)</enum><header>Capital expenditures</header> <subparagraph id="H33C6DE4FA5704659A08F13F27A3D34FF" commented="no"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(a)(1)(B)</external-xref> is amended by inserting <quote> or 174A</quote> after <quote>174</quote>.</text></subparagraph>
<subparagraph id="H5707C4CE714E47B2976857D8A6F5D1A4" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/263A">Section 263A(c)(2)</external-xref> is amended by inserting <quote>or 174A</quote> after <quote>174</quote>. </text></subparagraph></paragraph> <paragraph id="H8D6F0C2AD7BA45CEB3B2B6F3507E1E26" commented="no"><enum>(7)</enum><header>Active business computer software royalties</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/543">Section 543(d)(4)(A)(i)</external-xref> is amended by inserting <quote>174A,</quote> after <quote>174,</quote>. </text></paragraph>
<paragraph id="H72583068440B41CEA5990E1DDCE37885" commented="no"><enum>(8)</enum><header>Source rules</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/864">Section 864(g)(2)</external-xref> is amended in the last sentence—</text> <subparagraph id="HDB3CC39A80FD4646ABB86BC19D6B42AC" commented="no"><enum>(A)</enum><text>by striking <quote>treated as deferred expenses under subsection (b) of section 174</quote> and inserting <quote>allowed as an amortization deduction under section 174(a) or section 174A(c),</quote>, and</text></subparagraph>
<subparagraph id="H25FA58C34EE6486D82229A7BD3221038" commented="no"><enum>(B)</enum><text>by striking <quote>such subsection</quote> and inserting <quote>such section (as the case may be)</quote>. </text></subparagraph></paragraph> <paragraph id="HC553DC34D8214A94BA42EA423B621DCE" commented="no"><enum>(9)</enum><header>Basis adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)(14)</external-xref> is amended by striking <quote>deductions as deferred expenses under section 174(b)(1) (relating to research and experimental expenditures)</quote> and inserting <quote>deductions under section 174 or 174A</quote>.</text></paragraph>
<paragraph id="H546B1DEC37054A87AB0AB12047510B84" commented="no"><enum>(10)</enum><header>Small business stock</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1202">Section 1202(e)(2)(B)</external-xref> is amended by striking <quote>research and experimental expenditures under section 174</quote> and inserting <quote>specified research or experimental expenditures under section 174 or domestic research or experimental expenditures under section 174A</quote>.</text></paragraph></subsection> <subsection id="HC70A122040FD46C58D3C5255B4DF89A4" commented="no"><enum>(d)</enum><header>Conforming amendments</header> <paragraph id="H481DC753E184462F848A960BF12B1499" commented="no"><enum>(1)</enum><text>Section 13206 of <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref> is amended by striking subsection (b) (relating to change in method of accounting).</text></paragraph>
<paragraph id="HE4946CE723DB4620BE785ED29AE6AA05" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">The table of sections for part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 174 the following new item:</text> <quoted-block style="OLC" id="H97EDAF41FFAD404B9698F9F90139349D" display-inline="no-display-inline"> <toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="HBA99537F52784875ADB577AD95856F4B" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"> <toc-entry idref="H338414383E154552BA956BF2EDC6AB80" level="section">Sec. 174A. Temporary rules for domestic research and experimental expenditures.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H9DEA46B69E704EB6930C9EB6B32EB320" commented="no"><enum>(e)</enum><header>Effective date</header> <paragraph id="HC3D182F2BE4F4552A5C12723E83DA24D" commented="no"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2021.</text></paragraph>
<paragraph id="HB5A3C322297A4FEDA1350267F2ACB717" commented="no"><enum>(2)</enum><header>Coordination with research credit</header><text>The amendment made by subsection (c)(1)(B) shall apply to taxable years beginning after December 31, 2022.</text></paragraph> <paragraph id="H2315F8DBD4AC49DAA35D513FD3810F7E" commented="no"><enum>(3)</enum><header>Repeal of superceded change in method of accounting rules</header><text display-inline="yes-display-inline">The amendment made by subsection (d)(1) shall take effect as if included in <external-xref legal-doc="public-law" parsable-cite="pl/115/97">Public Law 115–97</external-xref>.</text></paragraph>
<paragraph id="H698525BCFC2442EF8CDA2DE5520ACECD" commented="no"><enum>(4)</enum><header>No inference with respect to coordination with research credit for prior periods</header><text display-inline="yes-display-inline">The amendment made by subsection (c)(1)(B) shall not be construed to create any inference with respect to the proper application of <external-xref legal-doc="usc" parsable-cite="usc/26/280C">section 280C(c)</external-xref> of the Internal Revenue Code of 1986 with respect to taxable years beginning before January 1, 2023.</text></paragraph></subsection> <subsection id="H4CBE7E8B31844D299102BD861B542661" commented="no"><enum>(f)</enum><header>Transition rules</header> <paragraph id="H90664581FA68465FBF973EE59B880A44" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided by the Secretary, an election made under subsection (c) or (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/174A">section 174A</external-xref> of the Internal Revenue Code of 1986 (as added by this section) for the taxpayer’s first taxable year beginning after December 31, 2021, shall not fail to be treated as timely made (or as made on the return) if made during the 1-year period beginning on the date of the enactment of this Act on an amended return for the taxpayer’s first taxable year beginning after December 31, 2021, or in such other manner as the Secretary may provide.</text></paragraph>
<paragraph id="HBEB9442502F0414199F9755A393117A6" commented="no"><enum>(2)</enum><header>Election regarding treatment as change in method of accounting</header><text>In the case of any taxpayer which (as of the date of the enactment of this Act) had adopted a method of accounting provided by <external-xref legal-doc="usc" parsable-cite="usc/26/174">section 174</external-xref> of the Internal Revenue Code of 1986 (as in effect prior to the amendments made by this section) for the taxpayer’s first taxable year beginning after December 31, 2021, and elects the application of this paragraph—</text> <subparagraph id="HCCBC10DF75BD49B78D66F36260445FBE" commented="no"><enum>(A)</enum><text>the amendments made by this section shall be treated as a change in method of accounting for purposes of section 481 of such Code,</text></subparagraph>
<subparagraph id="HCD14A7ED299B4ED9B754896EADA20878" commented="no"><enum>(B)</enum><text>such change shall be treated as initiated by the taxpayer for the taxpayer’s immediately succeeding taxable year,</text></subparagraph> <subparagraph id="H719DAC734E754CA6929A880883B19709" commented="no"><enum>(C)</enum><text>such change shall be treated as made with the consent of the Secretary,</text></subparagraph>
<subparagraph id="HDC44AD26B2A04A3EB30B1810AD18B19E" commented="no"><enum>(D)</enum><text>such change shall be applied on a modified cut-off basis, taking into account for purposes of section 481(a) of such Code only the domestic research or experimental expenditures (as defined in section 174A(b) of such Code (as added by this section) and determined by applying the rules of section 174A(e) of such Code) paid or incurred in the taxpayer’s first taxable year beginning after December 31, 2021, and not allowed as a deduction in such taxable year, and</text></subparagraph> <subparagraph id="H0A5CBC0279AC4A4EB96FA4C292E995CF" commented="no"><enum>(E)</enum><text>in the case of a taxpayer which elects the application of this subparagraph, the amount of such change (as determined under subparagraph (D)) shall be taken into account ratably over the 2-taxable-year period beginning with the taxable year referred to in subparagraph (B).</text></subparagraph></paragraph>
<paragraph id="H94F6C7D2B1EB4F24B40BF0763114C34B" commented="no"><enum>(3)</enum><header>Election regarding 10-year writeoff</header>
<subparagraph id="HBB8523CE88694D7DAF11797045DFA564" commented="no"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided by the Secretary, an eligible taxpayer which files, during the 1-year period beginning on the date of the enactment of this Act, an amended income tax return for the taxable year described in subparagraph (B)(ii) may elect the application of <external-xref legal-doc="usc" parsable-cite="usc/26/59">section 59(e)</external-xref> of the Internal Revenue Code of 1986 with respect to qualified expenditures described in section 59(e)(2)(B) of such Code (as amended by subsection (c)(3)) with respect to such taxable year. Such election shall be filed with such amended income tax return and shall be effective only to the extent that such election would have been effective if filed with the original income tax return for such taxable year (determined after taking into account the amendment made by subsection (c)(3)).</text></subparagraph> <subparagraph id="HBA86450C1CB4414DBD56FBFFE3DA0DE8" commented="no"><enum>(B)</enum><header>Eligible taxpayer</header><text>For purposes of subparagraph (A), the term <term>eligible taxpayer</term> means any taxpayer which—</text>
<clause id="H0529872D871A452292643E13756014F2" commented="no"><enum>(i)</enum><text>does not elect the application of paragraph (2), and</text></clause> <clause id="HA680CF64F50648EFB54C0F4E10332F8F" commented="no"><enum>(ii)</enum><text>filed an income tax return for such taxpayer’s first taxable year beginning after December 31, 2021, before the earlier of—</text>
<subclause id="HA29F99BBB6584171A6F71BBF8AB9045E" commented="no"><enum>(I)</enum><text>the due date for such return, and</text></subclause> <subclause id="HEA0710D605CF4EF8A8AF5FDA8F179185" commented="no"><enum>(II)</enum><text>the date of the enactment of this Act.</text></subclause></clause></subparagraph></paragraph>
<paragraph id="HE23D551DA7074A6095054745F781920A" commented="no"><enum>(4)</enum><header>Election regarding coordination with research credit</header><text>Except as otherwise provided by the Secretary, an eligible taxpayer (as defined in paragraph (3)(B) without regard to clause (i) thereof) which files, during the 1-year period beginning on the date of the enactment of this Act, an amended income tax return for the taxpayer’s first taxable year beginning after December 31, 2021, may, notwithstanding subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/280C">section 280C(c)(2)</external-xref> of the Internal Revenue Code of 1986 make, or revoke, on such amended return the election under such section for such taxable year.</text></paragraph></subsection></section> <section id="H20B96D41C39240909606AA8F4E0F8ED8"><enum>202.</enum><header>Extension of allowance for depreciation, amortization, or depletion in determining the limitation on business interest</header> <subsection id="H1A363B9A8DDF45E9989E63186DA8AA65"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/163">Section 163(j)(8)(A)(v)</external-xref> is amended by striking <quote>January 1, 2022</quote> and inserting <quote>January 1, 2026</quote>. </text></subsection>
<subsection id="H710236071139481CBD4AE30CAC77DCA4"><enum>(b)</enum><header>Effective date</header>
<paragraph id="H3F59C3B5BF5D466B8F820FC8495322BA"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendment made by this section shall apply to taxable years beginning after December 31, 2023.</text></paragraph> <paragraph id="H90A1345BBABF4A649E15031F736BF2EF"><enum>(2)</enum><header>Election to apply extension retroactively</header><text>In the case of a taxpayer which elects (at such time and in such manner as the Secretary may provide) the application of this paragraph, paragraph (1) shall be applied by substituting <quote>December 31, 2021</quote> for <quote>December 31, 2023</quote>. </text></paragraph></subsection></section>
<section id="H8DFCE22C9CB6423F809CED38CBECB7B2"><enum>203.</enum><header>Extension of 100 percent bonus depreciation</header>
<subsection id="H098D689CF6AE4A53961F63D83C360AD6" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(k)(6)(A)</external-xref> is amended—</text> <paragraph id="H38918E619C1842C49B2775CFE021B955" commented="no"><enum>(1)</enum><text>in clause (i)—</text>
<subparagraph id="HAED98BA4E0BD47F19F268707680664CB"><enum>(A)</enum><text>by striking <quote>2023</quote> and inserting <quote>2026</quote>, and</text></subparagraph> <subparagraph id="HE8F4B1615B764D13B7F51D472B6207D6"><enum>(B)</enum><text>by adding <quote>and</quote> at the end, and</text></subparagraph></paragraph>
<paragraph id="H571FE6C39ABA4962B10755C34E60ED51"><enum>(2)</enum><text>by striking clauses (ii), (iii), and (iv), and redesignating clause (v) as clause (ii).</text></paragraph></subsection> <subsection id="H60879E51C4D54B838B7B9646CBF58E6A" commented="no"><enum>(b)</enum><header>Property with longer production periods</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(k)(6)(B)</external-xref> is amended—</text>
<paragraph id="H6B87AB925B2D418F8BF448013B9468B3"><enum>(1)</enum><text>in clause (i)—</text> <subparagraph id="H0516926EEB274E58BA8D3721EBEBCE1E"><enum>(A)</enum><text>by striking <quote>2024</quote> and inserting <quote>2027</quote>, and</text></subparagraph>
<subparagraph id="HAE3F36845E1549F5858C6F67C29F8FE9"><enum>(B)</enum><text>by adding <quote>and</quote> at the end, and </text></subparagraph></paragraph> <paragraph id="H296A9BBE68234DAD9C461E3869805DE7"><enum>(2)</enum><text display-inline="yes-display-inline">by striking clauses (ii), (iii), and (iv), and redesignating clause (v) as clause (ii).</text></paragraph></subsection>
<subsection id="HE232C25C80FB4EBF807E1DF2EB36DD60" commented="no"><enum>(c)</enum><header>Plants bearing fruits and nuts</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(k)(6)(C)</external-xref> is amended—</text> <paragraph id="H9C6B6AB1BA9A470BA9CE828F7F3E65F8" commented="no"><enum>(1)</enum><text>in clause (i)—</text>
<subparagraph id="HEEAD2C06B0C8455FA4241252E1B36033"><enum>(A)</enum><text>by striking <quote>2023</quote> and inserting <quote>2026</quote>, and</text></subparagraph> <subparagraph id="HD640DF7844204D408C26B443DCFFC2D2"><enum>(B)</enum><text>by adding <quote>and</quote> at the end, and</text></subparagraph></paragraph>
<paragraph id="H3C1C1703F6A748EB97B69647EAEF05A2"><enum>(2)</enum><text display-inline="yes-display-inline">by striking clauses (ii), (iii), and (iv), and redesignating clause (v) as clause (ii).</text></paragraph></subsection> <subsection id="H78A8C50F817F4FF4A5EEAFA2A0E8CFFE"><enum>(d)</enum><header>Effective dates</header> <paragraph id="H9C7585809C974A898F46E75EBF2DED6B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2022.</text></paragraph>
<paragraph id="H5D8B20C17F494E9096A0D407BA86B33C"><enum>(2)</enum><header>Plants bearing fruits and nuts</header><text>The amendments made by subsection (c) shall apply to specified plants planted or grafted after December 31, 2022.</text></paragraph></subsection></section> <section id="HEC24D1BEA4824CA4AE2D58B0E941BE41" section-type="subsequent-section"><enum>204.</enum><header>Increase in limitations on expensing of depreciable business assets</header> <subsection id="HD6C7FDE5032247BC8112B8D80B296404"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/179">Section 179(b)</external-xref> is amended—</text>
<paragraph id="HCB7AE31CB631438E9E14AC02FFF0A950"><enum>(1)</enum><text>by striking <quote>$1,000,000</quote> in paragraph (1) and inserting <quote>$1,290,000</quote>, and</text></paragraph> <paragraph id="H755AF02B5A5B41BAA83E72C78CDCE35D"><enum>(2)</enum><text>by striking <quote>$2,500,000</quote> in paragraph (2) and inserting <quote>$3,220,000</quote>.</text></paragraph></subsection>
<subsection id="H964197B8E19A40DD8D447D1345DC66B5"><enum>(b)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179">Section 179(b)(6)</external-xref> is amended—</text> <paragraph id="H44FB7E360DC74C7281D946FC5016D668"><enum>(1)</enum><text>by striking <quote>2018</quote> and inserting <quote>2024 (2018 in the case of the dollar amount in paragraph (5)(A))</quote>, and</text></paragraph>
<paragraph id="H149D030C5AB44BC78974B5BD8F84301F"><enum>(2)</enum><text>by striking <quote>‘calendar year 2017</quote> and inserting <quote><quote>calendar year 2024</quote> (<quote>calendar year 2017</quote> in the case of the dollar amount in paragraph (5)(A))</quote>.</text></paragraph></subsection> <subsection id="H91BDEB496F7E4B35883998060C500092"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2023. </text></subsection></section>
<enum>III</enum><header>Increasing Global Competitiveness</header>
<subtitle id="H4F0981F70D7A4859954B0B7BE7C7EF89"><enum>A</enum><header>United States-Taiwan Expedited Double-Tax Relief Act</header>
<section id="H39697759E1A441E78874CD23825E628C" section-type="subsequent-section"><enum>301.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>United States-Taiwan Expedited Double-Tax Relief Act</short-title></quote>.</text></section> <section id="H4CFB38B4420A4B06A76B221AB79C7941"><enum>302.</enum><header>Special rules for taxation of certain residents of Taiwan</header> <subsection commented="no" display-inline="no-display-inline" id="HEECFB4AE3DB643EFAA0F0A5716B12AFC"><enum>(a)</enum><header>In general</header><text>Subpart D of part II of subchapter N of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 894 the following new section:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HD9C85A80227C4678858A0B93234FCB46">
<section id="HC24129C0D37E4FE6A0B35F48C08C1A5D"><enum>894A.</enum><header>Special rules for qualified residents of Taiwan</header>
<subsection commented="no" display-inline="no-display-inline" id="H1C886AFB359E48758EAA174173750CD9"><enum>(a)</enum><header>Certain income from United States sources</header>
<paragraph commented="no" display-inline="no-display-inline" id="HABBC744BAA9B447E8C67E22DD0FD563F"><enum>(1)</enum><header display-inline="yes-display-inline">Interest, dividends, and royalties, etc</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3E8AE4DC93694045A6B1371C7C0E6820"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of interest (other than original issue discount), dividends, royalties, amounts described in section 871(a)(1)(C), and gains described in section 871(a)(1)(D) received by or paid to a qualified resident of Taiwan—</text> <clause commented="no" display-inline="no-display-inline" id="HEE1148BD9C54412F88785FADCA9A95D9"><enum>(i)</enum><text display-inline="yes-display-inline">sections 871(a), 881(a), 1441(a), 1441(c)(5), and 1442(a) shall each be applied by substituting <quote>the applicable percentage (as defined in section 894A(a)(1)(C))</quote> for <quote>30 percent</quote> each place it appears, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H9003FE6450B347469E4805AC5266B3DC"><enum>(ii)</enum><text>sections 871(a), 881(a), and 1441(c)(1) shall each be applied by substituting <quote>a United States permanent establishment of a qualified resident of Taiwan</quote> for <quote>a trade or business within the United States</quote> each place it appears.</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H620FC5E49D144C9BAB6A286C81571885"><enum>(B)</enum><header>Exceptions</header> <clause commented="no" display-inline="no-display-inline" id="H55F2612E617344E1B10D115999F3C215"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to—</text>
<subclause commented="no" display-inline="no-display-inline" id="H37E34808C06C49FB8E5179EDB8F7D45A"><enum>(I)</enum><text display-inline="yes-display-inline">any dividend received from or paid by a real estate investment trust which is not a qualified REIT dividend,</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H9203FDA34E83488F90494927F6B7BCD1"><enum>(II)</enum><text>any amount subject to section 897,</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H22941646B2CB4BC689F7F1D54C59EE50"><enum>(III)</enum><text>any amount received from or paid by an expatriated entity (as defined in section 7874(a)(2)) to a foreign related person (as defined in section 7874(d)(3)), and</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H2AF00821DEE14499BD9F524EA804901D"><enum>(IV)</enum><text>any amount which is included in income under section 860C to the extent that such amount does not exceed an excess inclusion with respect to a REMIC.</text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="HDBCB631896EF4D2C8F0E8B0EC807C04C"><enum>(ii)</enum><header>Qualified REIT dividend</header><text>For purposes of clause (i)(I), the term <term>qualified REIT dividend</term> means any dividend received from or paid by a real estate investment trust if such dividend is paid with respect to a class of shares that is publicly traded and the recipient of the dividend is a person who holds an interest in any class of shares of the real estate investment trust of not more than 5 percent.</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H3C154E1FF25440B3A9BAB2F02E0B337E"><enum>(C)</enum><header>Applicable percentage</header><text>For purposes of applying subparagraph (A)(i)—</text>
<clause commented="no" display-inline="no-display-inline" id="HA9E250D8E8BC47869153F9D43CDC6F84"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), the term <term>applicable percentage</term> means 10 percent.</text></clause> <clause commented="no" display-inline="no-display-inline" id="H60C91B76A5794E53B673B280ED8FAEB4"><enum>(ii)</enum><header>Special rules for dividends</header><text> In the case of any dividend in respect of stock received by or paid to a qualified resident of Taiwan, the applicable percentage shall be 15 percent (10 percent in the case of a dividend which meets the requirements of subparagraph (D) and is received by or paid to an entity taxed as a corporation in Taiwan).</text></clause></subparagraph>
<subparagraph id="H8646C225383A497FBFDDC7A3C156ABCC"><enum>(D)</enum><header>Requirements for lower dividend rate</header>
<clause commented="no" display-inline="no-display-inline" id="HF39A0364525446E589D1FD04EC1348BF"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements of this subparagraph are met with respect to any dividend in respect of stock in a corporation if, at all times during the 12-month period ending on the date such stock becomes ex-dividend with respect to such dividend—</text> <subclause commented="no" display-inline="no-display-inline" id="H96772BE696664A96B82F824355B188D3"><enum>(I)</enum><text>the dividend is derived by a qualified resident of Taiwan, and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H1890FE5DBBB9407FACECA66A99B310B2"><enum>(II)</enum><text display-inline="yes-display-inline">such qualified resident of Taiwan has held directly at least 10 percent (by vote and value) of the total outstanding shares of stock in such corporation.</text></subclause><continuation-text continuation-text-level="clause" commented="no">For purposes of subclause (II), a person shall be treated as directly holding a share of stock during any period described in the preceding sentence if the share was held by a corporation from which such person later acquired that share and such corporation was, at the time the share was acquired, both a connected person to such person and a qualified resident of Taiwan.</continuation-text></clause> <clause id="HDC3D8F231F2B494EB3FDB3894328B10B"><enum>(ii)</enum><header>Exception for RICs and REITs</header><text>Notwithstanding clause (i), the requirements of this subparagraph shall not be treated as met with respect to any dividend paid by a regulated investment company or a real estate investment trust.</text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H81B627C8E0A841F3AE8FA2955CCB6A2F"><enum>(2)</enum><header>Qualified wages</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6BBB196A02744A82A4A6A4F3861AEDDA"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">No tax shall be imposed under this chapter (and no amount shall be withheld under section 1441(a) or chapter 24) with respect to qualified wages paid to a qualified resident of Taiwan who—</text> <clause commented="no" display-inline="no-display-inline" id="H8D978F2A7F704AFBBB3D880B94BB465C"><enum>(i)</enum><text display-inline="yes-display-inline">is not a resident of the United States (determined without regard to subsection (c)(3)(E)), or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H7BE1ACC526114AD8838621E15A64AAB4"><enum>(ii)</enum><text display-inline="yes-display-inline">is employed as a member of the regular component of a ship or aircraft operated in international traffic.</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H9336047AF9C246CB979789BCADBF1F7C"><enum>(B)</enum><header>Qualified wages</header> <clause commented="no" display-inline="no-display-inline" id="H5CBAB24CFBA4482086013EED34710BE0"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified wages</term> means wages, salaries, or similar remunerations with respect to employment involving the performance of personal services within the United States which—</text>
<subclause commented="no" display-inline="no-display-inline" id="H1EDAD25B6AC44DCDB97F6A19A13F6EBF"><enum>(I)</enum><text display-inline="yes-display-inline">are paid by (or on behalf of) any employer other than a United States person, and</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H80E60A8633884A7D888A3129D4AAF6F4"><enum>(II)</enum><text>are not borne by a United States permanent establishment of any person other than a United States person.</text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="H22382046120547EDA600D02EB979F89D"><enum>(ii)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include directors' fees, income derived as an entertainer or athlete, income derived as a student or trainee, pensions, amounts paid with respect to employment with the United States, any State (or political subdivision thereof), or any possession of the United States (or any political subdivision thereof), or other amounts specified in regulations or guidance under subsection (f)(1)(F). </text></clause></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HAC10150F7F004C96A1C32830C1A36067"><enum>(3)</enum><header>Income derived from entertainment or athletic activities</header> <subparagraph commented="no" display-inline="no-display-inline" id="H9663E2B407DA494F9AAB19755CA0B0BD"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">No tax shall be imposed under this chapter (and no amount shall be withheld under section 1441(a) or chapter 24) with respect to income derived by an entertainer or athlete who is a qualified resident of Taiwan from personal activities as such performed in the United States if the aggregate amount of gross receipts from such activities for the taxable year do not exceed $30,000.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H3CEA8BBE76F74C89B2D8E63BB3E16305"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply with respect to—</text> <clause commented="no" display-inline="no-display-inline" id="HBF8FE51DC49E440884B1FA43F0A423F2"><enum>(i)</enum><text display-inline="yes-display-inline">income which is qualified wages (as defined in paragraph (2)(B), determined without regard to clause (ii) thereof), or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HD208AE84C13C476684BF0D9AC4354FE1"><enum>(ii)</enum><text display-inline="yes-display-inline">income which is effectively connected with a United States permanent establishment. </text></clause></subparagraph></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H194EB11410794F77ADCE85C247B32D92"><enum>(b)</enum><header>Income connected with a United States permanent establishment of a qualified resident of Taiwan</header> <paragraph commented="no" display-inline="no-display-inline" id="H52D8FB19175C4131ABC556232779853C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header> <subparagraph commented="no" display-inline="no-display-inline" id="H5C770AE4AA844886B5137B01919F2E96"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In lieu of applying sections 871(b) and 882, a qualified resident of Taiwan that carries on a trade or business within the United States through a United States permanent establishment shall be taxable as provided in section 1, 11, 55, or 59A, on its taxable income which is effectively connected with such permanent establishment.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HBB531C9030124124B5E9A59046CBEE79"><enum>(B)</enum><header>Determination of taxable income</header><text>In determining taxable income for purposes of paragraph (1), gross income includes only gross income which is effectively connected with the permanent establishment.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HA5ED8E4B498E493289901DBC2C14AABA"><enum>(2)</enum><header>Treatment of dispositions of United States real property</header><text>In the case of a qualified resident of Taiwan, section 897(a) shall be applied—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H83A0E18A18AF4D5BA52EA7A4852EFAD4"><enum>(A)</enum><text>by substituting <quote>carried on a trade or business within the United States through a United States permanent establishment</quote> for <quote>were engaged in a trade or business within the United States</quote>, and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HC8EC06C2D3F54043AB38BF157DAD36B5"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>such United States permanent establishment</quote> for <quote>such trade or business</quote>.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H547CF2E0DEFC482CBEF69A3B0D8AFA5E"><enum>(3)</enum><header>Treatment of branch profits taxes</header><text>In the case of any corporation which is a qualified resident of Taiwan, section 884 shall be applied—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H8F0DAF66A51A4DDAAC1E1B8082584D64"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>10 percent</quote> for <quote>30 percent </quote> in subsection (a) thereof, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H4164CCAE68EB46848822D41D37D0D71D"><enum>(B)</enum><text>by substituting <quote>a United States permanent establishment of a qualified resident of Taiwan</quote> for <quote>the conduct of a trade or business within the United States</quote> in subsection (d)(1) thereof.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H5CD59CCA294248BB924FF3AF8E284C1F"><enum>(4)</enum><header>Special rule with respect to income derived from certain entertainment or athletic activities</header> <subparagraph commented="no" display-inline="no-display-inline" id="H42D481ADD715406F8959FCC0D56BDCF1"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to the extent that the income is derived—</text>
<clause commented="no" display-inline="no-display-inline" id="HAFC896D20AEC413B8FF975C4D1A5B7FB"><enum>(i)</enum><text display-inline="yes-display-inline">in respect of entertainment or athletic activities performed in the United States, and</text></clause> <clause commented="no" display-inline="no-display-inline" id="H6AC424D4BD844960B4E5D784B965BDD1"><enum>(ii)</enum><text>by a qualified resident of Taiwan who is not the entertainer or athlete performing such activities.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HB085202727E74F18B202DACDD612CFC0"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply if the person described in subparagraph (A)(ii) is contractually authorized to designate the individual who is to perform such activities.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HEE7397EF4306449FB299E4C0F9FA63B4"><enum>(5)</enum><header>Special rule with respect to certain amounts</header><text>Paragraph (1) shall not apply to any income which is wages, salaries, or similar remuneration with respect to employment or with respect to any amount which is described in subsection (a)(2)(B)(ii). </text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H441B2DCC8A4D4010BF2EFF69624D767C"><enum>(c)</enum><header>Qualified resident of Taiwan</header><text display-inline="yes-display-inline">For purposes of this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="H491079814E4D492598B31508B72D48D5"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified resident of Taiwan</term> means any person who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1CC90B87403D42D0A70B172DE9F00C82"><enum>(A)</enum><text display-inline="yes-display-inline">is liable to tax under the laws of Taiwan by reason of such person's domicile, residence, place of management, place of incorporation, or any similar criterion, </text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H9188B30323CA41EDAFDE86C959A42A2D"><enum>(B)</enum><text display-inline="yes-display-inline">is not a United States person (determined without regard to paragraph (3)(E)), and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HEA74F087CC7B43F186E0E82611AEFD4C"><enum>(C)</enum><text>in the case of an entity taxed as a corporation in Taiwan, meets the requirements of paragraph (2).</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HF0EA4DAC5F724A79A598462EA1B7FA0A"><enum>(2)</enum><header>Limitation on benefits for corporate entities of Taiwan</header> <subparagraph commented="no" display-inline="no-display-inline" id="HAD0B24625E894162ADBC9D92BE8CB541"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraphs (E) and (F), an entity meets the requirements of this paragraph only if it—</text>
<clause commented="no" display-inline="no-display-inline" id="H8C04B6992CDF4E7DBECFE028B20B6675"><enum>(i)</enum><text>meets the ownership and income requirements of subparagraph (B), </text></clause> <clause commented="no" display-inline="no-display-inline" id="H005F7F62EF1C46CE924C7660C90436FD"><enum>(ii)</enum><text>meets the publicly traded requirements of subparagraph (C), or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H1A35BE1AB2E84F27BAE4AE3FB4EC2515"><enum>(iii)</enum><text>meets the qualified subsidiary requirements of subparagraph (D).</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H61ADA3295EDC4B32924FE145298838FE"><enum>(B)</enum><header>Ownership and income requirements</header><text>The requirements of this subparagraph are met for an entity if—</text>
<clause commented="no" display-inline="no-display-inline" id="H0A14F4A82AF7499DAA9A10A278BD20F5"><enum>(i)</enum><text>at least 50 percent (by vote and value) of the total outstanding shares of stock in such entity are owned directly or indirectly by qualified residents of Taiwan, and</text></clause> <clause commented="no" display-inline="no-display-inline" id="H26D603FB148A48C4BD80266C1B1BECD6"><enum>(ii)</enum><text>less than 50 percent of such entity’s gross income (and in the case of an entity that is a member of a tested group, less than 50 percent of the tested group’s gross income) is paid or accrued, directly or indirectly, in the form of payments that are deductible for purposes of the income taxes imposed by Taiwan, to persons who are not—</text>
<subclause commented="no" display-inline="no-display-inline" id="H6FD9B6D85D1E463DAFFC51FAC5B0F2C6"><enum>(I)</enum><text display-inline="yes-display-inline">qualified residents of Taiwan, or</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="HFBA06C560DA84522A6946957827CE2F6"><enum>(II)</enum><text display-inline="yes-display-inline">United States persons who meet such requirements with respect to the United States as determined by the Secretary to be equivalent to the requirements of this subsection (determined without regard to paragraph (1)(B)) with respect to residents of Taiwan.</text></subclause></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H98A9733AD640490FA807B4864232AD86"><enum>(C)</enum><header>Publicly traded requirements</header><text display-inline="yes-display-inline">An entity meets the requirements of this subparagraph if—</text> <clause commented="no" display-inline="no-display-inline" id="H8B10AA3A31B8441483560C24B7877BFB"><enum>(i)</enum><text>the principal class of its shares (and any disproportionate class of shares) of such entity are primarily and regularly traded on an established securities market in Taiwan, or </text></clause>
<clause commented="no" display-inline="no-display-inline" id="H77459EAA0F86442BA8CC1ABC33BC758B"><enum>(ii)</enum><text display-inline="yes-display-inline">the primary place of management and control of the entity is in Taiwan and all classes of its outstanding shares described in clause (i) are regularly traded on an established securities market in Taiwan.</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HF2EE22E5E73049319AD64D8D014C20E3"><enum>(D)</enum><header>Qualified subsidiary requirements</header><text>An entity meets the requirement of this subparagraph if—</text>
<clause commented="no" display-inline="no-display-inline" id="HDFF7A8DE6DBD4366A59127ADAFA58D82"><enum>(i)</enum><text>at least 50 percent (by vote and value) of the total outstanding shares of the stock of such entity are owned directly or indirectly by 5 or fewer entities—</text> <subclause commented="no" display-inline="no-display-inline" id="HA82BA9DAF80F4E0A85D01924F118CB46"><enum>(I)</enum><text display-inline="yes-display-inline">which meet the requirements of subparagraph (C), or </text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H279711EBA96D47DAA9B7AD214F79D094"><enum>(II)</enum><text display-inline="yes-display-inline">which are United States persons the principal class of the shares (and any disproportionate class of shares) of which are primarily and regularly traded on an established securities market in the United States, and</text></subclause></clause> <clause commented="no" display-inline="no-display-inline" id="H50DD3CF4E5D348B4829674682C9F3116"><enum>(ii)</enum><text display-inline="yes-display-inline">the entity meets the requirements of clause (ii) of subparagraph (B).</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H48B74FA65F9B4877921E8A085E1551F7"><enum>(E)</enum><header>Only indirect ownership through qualifying intermediaries counted</header>
<clause commented="no" display-inline="no-display-inline" id="H54694BB4E18541CDBC40E3131226286D"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Stock in an entity owned by a person indirectly through 1 or more other persons shall not be treated as owned by such person in determining whether the person meets the requirements of subparagraph (B)(i) or (D)(i) unless all such other persons are qualifying intermediate owners.</text></clause> <clause commented="no" display-inline="no-display-inline" id="HFB8A5799E9F64303B3045B3CF2068DC9"><enum>(ii)</enum><header>Qualifying intermediate owners</header><text>The term <term>qualifying intermediate owner</term> means a person that is—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD3DFDD4E95314D4F879179E3EF1AE675"><enum>(I)</enum><text display-inline="yes-display-inline"> a qualified resident of Taiwan, or</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="HB9FBF3A6AC6248D3A51E4C32CECB5D0E"><enum>(II)</enum><text> a resident of any other foreign country (other than a foreign country that is a foreign country of concern) that has in effect a comprehensive convention with the United States for the avoidance of double taxation.</text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="HA555B5E231F942D6AA20F18F906331A4"><enum>(iii)</enum><header>Special rule for qualified subsidiaries</header><text>For purposes of applying subparagraph (D)(i), the term <term>qualifying intermediate owner</term> shall include any person who is a United States person who meets such requirements with respect to the United States as determined by the Secretary to be equivalent to the requirements of this subsection (determined without regard to paragraph (1)(B)) with respect to residents of Taiwan. </text></clause></subparagraph> <subparagraph id="HF901A0127B0B43018D96C4FDF8507072"><enum>(F)</enum><header>Certain payments not included</header><text>In determining whether the requirements of subparagraph (B)(ii) or (D)(ii) are met with respect to an entity, the following payments shall not be taken into account:</text>
<clause commented="no" display-inline="no-display-inline" id="HD9A400F2D1B7492DA94C1B293A052191"><enum>(i)</enum><text>Arm’s-length payments by the entity in the ordinary course of business for services or tangible property.</text></clause> <clause commented="no" display-inline="no-display-inline" id="H21E9CF4F2B334DCFA1107BDDB920873F"><enum>(ii)</enum><text>In the case of a tested group, intra-group transactions. </text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H21CBE86012DC4DBDAB5D1D305A2482C1"><enum>(3)</enum><header>Dual residents</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1B88580995E24A888D2226B0CE6F1191"><enum>(A)</enum><header>Rules for determination of status</header>
<clause commented="no" display-inline="no-display-inline" id="HE7C59D7898B34C209A6887700F0AFBD7"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">An individual who is an applicable dual resident and who is described in subparagraph (B), (C), or (D) shall be treated as a qualified resident of Taiwan.</text></clause> <clause id="H32B59F6BA4614DDBBEBDCAE239454B08"><enum>(ii)</enum><header>Applicable dual resident</header><text>For purposes of this paragraph, the term <term>applicable dual resident</term> means an individual who—</text>
<subclause commented="no" display-inline="no-display-inline" id="HCB66C36A5A9A44E3BD3D223341A3FBA6"><enum>(I)</enum><text display-inline="yes-display-inline">is not a United States citizen,</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H049112C5F85747CDA9973A386F26CE47"><enum>(II)</enum><text>is a resident of the United States (determined without regard to subparagraph (E)), and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H5BFE15EC739848E58C340F77D4E09D46"><enum>(III)</enum><text>would be a qualified resident of Taiwan but for paragraph (1)(B).</text></subclause></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H8AD486270F454BB9A56EE65D73150897"><enum>(B)</enum><header display-inline="yes-display-inline">Permanent home</header><text>An individual is described in this subparagraph if such individual—</text>
<clause commented="no" display-inline="no-display-inline" id="H859ECBA7ADAF4774A93EA52907A78E92"><enum>(i)</enum><text display-inline="yes-display-inline">has a permanent home available to such individual in Taiwan, and</text></clause> <clause commented="no" display-inline="no-display-inline" id="H535F9CE2DD8A4584810060905324E51C"><enum>(ii)</enum><text display-inline="yes-display-inline">does not have a permanent home available to such individual in the United States.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HA951955D7CAD40C59FB42EFC9EF9F2B5"><enum>(C)</enum><header>Center of vital interests</header><text display-inline="yes-display-inline">An individual is described in this subparagraph if—</text> <clause commented="no" display-inline="no-display-inline" id="H5106FC93C3C248EAB5E2A649B7FA839D"><enum>(i)</enum><text display-inline="yes-display-inline">such individual has a permanent home available to such individual in both Taiwan and the United States, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H3DC99DB19E774DA2A25D5CEDF69E6993"><enum>(ii)</enum><text display-inline="yes-display-inline">such individual's personal and economic relations (center of vital interests) are closer to Taiwan than to the United States.</text></clause></subparagraph> <subparagraph id="H19395F7F76584C3FBCFB24F18F42A32E" commented="no"><enum>(D)</enum><header>Habitual abode</header><text>An individual is described in this subparagraph if—</text>
<clause commented="no" display-inline="no-display-inline" id="H367581969F41454E9859350711C12FA1"><enum>(i)</enum><text display-inline="yes-display-inline">such individual—</text> <subclause commented="no" display-inline="no-display-inline" id="H5AB944DB9841414493DFBC34E8A969DB"><enum>(I)</enum><text display-inline="yes-display-inline">does not have a permanent home available to such individual in either Taiwan or the United States, or</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HAEFBFE1E1FDB4F2FB47AEF472BFDE0F4"><enum>(II)</enum><text display-inline="yes-display-inline">has a permanent home available to such individual in both Taiwan and the United States but such individual's center of vital interests under subparagraph (C)(ii) cannot be determined, and</text></subclause></clause> <clause commented="no" display-inline="no-display-inline" id="H75583BC3502649B7B1E5636C7670C671"><enum>(ii)</enum><text>such individual has a habitual abode in Taiwan and not the United States.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD61F96C956EE49A8A003102AFDDAE78C"><enum>(E)</enum><header>United States tax treatment of qualified resident of Taiwan</header><text display-inline="yes-display-inline">Notwithstanding section 7701, an individual who is treated as a qualified resident of Taiwan by reason of this paragraph for all or any portion of a taxable year shall not be treated as a resident of the United States for purposes of computing such individual's United States income tax liability for such taxable year or portion thereof. </text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H8BB071A14BC94461B0CEC2ADE357D24B"><enum>(4)</enum><header>Rules of special application</header> <subparagraph commented="no" display-inline="no-display-inline" id="H9D91AE62EC5346348B0F86648CE052CB"><enum>(A)</enum><header display-inline="yes-display-inline">Dividends</header><text>For purposes of applying this section to any dividend, paragraph (2)(D) shall be applied without regard to clause (ii) thereof.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H9E4DBE733A20473C807A56BBCB04B994"><enum>(B)</enum><header>Items of income emanating from an active trade or business in Taiwan</header><text>For purposes of this section—</text> <clause commented="no" display-inline="no-display-inline" id="HE5CDE917C2244A3598DF84AE8578A07B"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding the preceding paragraphs of this subsection, if an entity taxed as a corporation in Taiwan is not a qualified resident of Taiwan but meets the requirements of subparagraphs (A) and (B) of paragraph (1), any qualified item of income such entity derived from the United States shall be treated as income of a qualified resident of Taiwan.</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H0F60060DEEE34CDB9D7FACEB34A7E808"><enum>(ii)</enum><header>Qualified items of income</header>
<subclause commented="no" display-inline="no-display-inline" id="H1D7C0AB231364D898BBD8D0335A6101D"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified item of income</term> means any item of income which emanates from, or is incidental to, the conduct of an active trade or business in Taiwan (other than operating as a holding company, providing overall supervision or administration of a group of companies, providing group financing, or making or managing investments (unless such making or managing investments is carried on by a bank, insurance company, or registered securities dealer in the ordinary course of its business as such)).</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H5D7A0709353949AE8EAE783E66FF3431"><enum>(II)</enum><header>Substantial activity requirement</header><text>An item of income which is derived from a trade or business conducted in the United States or from a connected person shall be a qualified item of income only if the trade or business activity conducted in Taiwan to which the item is related is substantial in relation to the same or a complementary trade or business activity carried on in the United States. For purposes of applying this subclause, activities conducted by persons that are connected to the entity described in clause (i) shall be deemed to be conducted by such entity.</text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="H0BA38AB2AC7F416D942CECBEA49DFF31"><enum>(iii)</enum><header>Exception</header><text>This subparagraph shall not apply to any item of income derived by an entity if at least 50 percent (by vote or value) of such entity is owned (directly or indirectly) or controlled by residents of a foreign country of concern. </text></clause></subparagraph></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H362F1142E7554F8D93EF2CE893D89A61"><enum>(d)</enum><header>Other definitions and special rules</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H604B65B2D6604FE783597377271F5A1A"><enum>(1)</enum><header display-inline="yes-display-inline">United States permanent establishment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H3A6EEB5D36FA48848B5C69BC76DD91E0"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>United States permanent establishment</term> means, with respect to a qualified resident of Taiwan, a permanent establishment of such resident which is within the United States.</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H919A006D55D9422590FE3C5B1C5195B9"><enum>(B)</enum><header>Special rule</header><text display-inline="yes-display-inline">The determination of whether there is a permanent establishment of a qualified resident of Taiwan within the United States shall be made without regard to whether an entity which is taxed as a corporation in Taiwan and which is a qualified resident of Taiwan controls or is controlled by—</text>
<clause commented="no" display-inline="no-display-inline" id="H761B80EEBB5346F8B2B74F73E0B0999D"><enum>(i)</enum><text display-inline="yes-display-inline">a domestic corporation, or</text></clause> <clause commented="no" display-inline="no-display-inline" id="H0B0DEE220A484E6197B95CA109D11522"><enum>(ii)</enum><text display-inline="yes-display-inline">any other person that carries on business in the United States (whether through a permanent establishment or otherwise). </text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H10A16C9C663B4B33A328388A390C4930"><enum>(2)</enum><header>Permanent establishment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H9660E8EF51E24508B9FFD64CB1C542DC"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>permanent establishment</term> means a fixed place of business through which a trade or business is wholly or partly carried on. Such term shall include—</text> <clause commented="no" display-inline="no-display-inline" id="HFFEE533BC0E84ECE89D70D5005F43E0F"><enum>(i)</enum><text display-inline="yes-display-inline">a place of management,</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HB130E5939EDE47ACB625A1CD502D2CF3"><enum>(ii)</enum><text display-inline="yes-display-inline">a branch, </text></clause> <clause commented="no" display-inline="no-display-inline" id="HB6983EEC10BA4F4DB86867F704DEB617"><enum>(iii)</enum><text display-inline="yes-display-inline">an office,</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H266A8E216E564815956FB4EAA85FD2E9"><enum>(iv)</enum><text display-inline="yes-display-inline">a factory, </text></clause> <clause commented="no" display-inline="no-display-inline" id="H39C3638F90B44B7E9909F3FECF8695C1"><enum>(v)</enum><text display-inline="yes-display-inline">a workshop, and </text></clause>
<clause commented="no" display-inline="no-display-inline" id="H16F97CC32EB84EC28D0C2C3E2F90DC71"><enum>(vi)</enum><text display-inline="yes-display-inline">a mine, an oil or gas well, a quarry, or any other place of extraction of natural resources.</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H7ED28368FEA344F38E3F6B26B5103A44"><enum>(B)</enum><header>Special rules for certain temporary projects</header> <clause commented="no" display-inline="no-display-inline" id="H87DF3B059ACD42B9AFFF8FE9DAE5F3CB"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">A building site or construction or installation project, or an installation or drilling rig or ship used for the exploration or exploitation of the sea bed and its subsoil and their natural resources, constitutes a permanent establishment only if it lasts, or the activities of the rig or ship lasts, for more than 12 months. </text></clause>
<clause commented="no" display-inline="no-display-inline" id="HFBFD46C21E9D45DD8FD4EC8FACBF6D58"><enum>(ii)</enum><header>Determination of 12-month period</header><text display-inline="yes-display-inline">For purposes of clause (i), the period over which a building site or construction or installation project of a person lasts shall include any period of more than 30 days during which such person does not carry on activities at such building site or construction or installation project but connected activities are carried on at such building site or construction or installation project by one or more connected persons. </text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HCF070F1BC88544629ED1B89ADE48D9F5"><enum>(C)</enum><header>Habitual exercise of contract authority treated as permanent establishment</header><text display-inline="yes-display-inline">Notwithstanding subparagraphs (A) and (B), where a person (other than an agent of an independent status to whom subparagraph (D)(ii) applies) is acting on behalf of a trade or business of a qualified resident of Taiwan and has and habitually exercises an authority to conclude contracts that are binding on the trade or business, that trade or business shall be deemed to have a permanent establishment in the country in which such authority is exercised in respect of any activities that the person undertakes for the trade or business, unless the activities of such person are limited to those described in subparagraph (D)(i) that, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that subparagraph. </text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H60EBD36E9AA948498B50194651037969"><enum>(D)</enum><header>Exclusions</header>
<clause commented="no" display-inline="no-display-inline" id="H62726342A4854B80B91B82B680B87469"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding subparagraphs (A) and (B), the term <term>permanent establishment</term> shall not include—</text> <subclause commented="no" display-inline="no-display-inline" id="HE4659FC710ED425D9F7BB5C2D855B9DE"><enum>(I)</enum><text display-inline="yes-display-inline">the use of facilities solely for the purpose of storage, display, or delivery of goods or merchandise belonging to the trade or business, </text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HA40AEAADD4074691803B04F73E665B3F"><enum>(II)</enum><text display-inline="yes-display-inline">the maintenance of a stock of goods or merchandise belonging to the trade or business solely for the purpose of storage, display, or delivery,</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H07E43A1BAECA43DFA3CCC696B3E4B8E2"><enum>(III)</enum><text display-inline="yes-display-inline">the maintenance of a stock of goods or merchandise belonging to the trade or business solely for the purpose of processing by another trade or business,</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HF390900D7CEA45D5AF201E7A07837B0C"><enum>(IV)</enum><text display-inline="yes-display-inline">the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the trade or business,</text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H40B4A7DA34BA4925BE587C939720BF17"><enum>(V)</enum><text display-inline="yes-display-inline">the maintenance of a fixed place of business solely for the purpose of carrying on, for the trade or business, any other activity of a preparatory or auxiliary character, or</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HEA83647B824342F6ABFEF5A65E636802"><enum>(VI)</enum><text display-inline="yes-display-inline">the maintenance of a fixed place of business solely for any combination of the activities mentioned in subclauses (I) through (V), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character. </text></subclause></clause> <clause commented="no" display-inline="no-display-inline" id="H88E0D8FB83F542CE8265DECC169FF8DA"><enum>(ii)</enum><header>Brokers and other independent agents</header><text display-inline="yes-display-inline">A trade or business shall not be considered to have a permanent establishment in a country merely because it carries on business in such country through a broker, general commission agent, or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business as independent agents.</text></clause></subparagraph></paragraph>
<paragraph id="HD5AFA87DBC9C46C7B8A74312799B7868"><enum>(3)</enum><header>Tested group</header><text>The term <term>tested group</term> includes, with respect to any entity taxed as a corporation in Taiwan, such entity and any other entity taxed as a corporation in Taiwan that—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H0B5C202A1982429CAFA1281CF98937A1"><enum>(A)</enum><text>participates as a member with such entity in a tax consolidation, fiscal unity, or similar regime that requires members of the group to share profits or losses, or</text></subparagraph>
<subparagraph id="HBEE1EB36245B4B9BB7F53F5D26C8C99E"><enum>(B)</enum><text>shares losses with such entity pursuant to a group relief or other loss sharing regime. </text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H7D5FFC2B09CC4FF095E89271744DB262"><enum>(4)</enum><header>Connected person</header><text>Two persons shall be <quote>connected persons</quote> if one owns, directly or indirectly, at least 50 percent of the interests in the other (or, in the case of a corporation, at least 50 percent of the aggregate vote and value of the corporation’s shares) or another person owns, directly or indirectly, at least 50 percent of the interests (or, in the case of a corporation, at least 50 percent of the aggregate vote and value of the corporation’s shares) in each person. In any case, a person shall be connected to another if, based on all the relevant facts and circumstances, one has control of the other or both are under the control of the same person or persons. </text></paragraph>
<paragraph id="H2DB37903ACC6453AB8BA915765EC0A13"><enum>(5)</enum><header>Foreign country of concern</header><text>The term <term>foreign country of concern</term> has the meaning given such term under paragraph (7) of section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (<external-xref legal-doc="usc" parsable-cite="usc/15/4651">15 U.S.C. 4651(7)</external-xref>), as added by section 103(a)(4) of the CHIPS Act of 2022).</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H466ADF210AA54B0288B96FE898CCA183"><enum>(6)</enum><header>Partnerships; beneficiaries of estates and trusts</header><text>For purposes of this section—</text>
<subparagraph id="H7A1743607F574B259D58B89004519490"><enum>(A)</enum><text>a qualified resident of Taiwan which is a partner of a partnership which carries on a trade or business within the United States through a United States permanent establishment shall be treated as carrying on such trade or business through such permanent establishment, and</text></subparagraph> <subparagraph id="H9494D4B7094C46928AEBBC15818A7A25"><enum>(B)</enum><text>a qualified resident of Taiwan which is a beneficiary of an estate or trust which carries on a trade or business within the United States through a United States permanent establishment shall be treated as carrying on such trade or business through such permanent establishment.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD4CAD7A4102D4732B573FD64ADBA434D"><enum>(7)</enum><header>Denial of benefits for certain payments through hybrid entities</header><text display-inline="yes-display-inline">For purposes of this section, rules similar to the rules of section 894(c) shall apply. </text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H2899C55D2B93420CA4A83BC977A5BCCA"><enum>(e)</enum><header>Application</header> <paragraph commented="no" display-inline="no-display-inline" id="H0FC3616D8A0A4E9582EF81DCC27ECF26"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">This section shall not apply to any period unless the Secretary has determined that Taiwan has provided benefits to United States persons for such period that are reciprocal to the benefits provided to qualified residents of Taiwan under this section. </text></paragraph>
<paragraph id="H10D4849D5F6544ED8CDF511266C63A8F"><enum>(2)</enum><header>Provision of reciprocity</header><text>The President or his designee is authorized to exchange letters, enter into an agreement, or take other necessary and appropriate steps relative to Taiwan for the reciprocal provision of the benefits described in this section.</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="HA7BA564E8ED14207A4AE274572B1F0C1"><enum>(f)</enum><header>Regulations or other guidance</header> <paragraph commented="no" display-inline="no-display-inline" id="HE40C50C3906F4AE4AA6AE4E6482240E3"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the provisions of this section, including such regulations or guidance for—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5BFAF96116624B8C8A34719C3698D059"><enum>(A)</enum><text display-inline="yes-display-inline">determining—</text> <clause commented="no" display-inline="no-display-inline" id="H90ECA9BDB3FD4F53B752736F9099679D"><enum>(i)</enum><text display-inline="yes-display-inline">what constitutes a United States permanent establishment of a qualified resident of Taiwan, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H987B903A4FD84131B9A31453509BA831"><enum>(ii)</enum><text>income that is effectively connected with such a permanent establishment,</text></clause></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H2E4A43CADC184F9583DAA01ACCF9791D"><enum>(B)</enum><text>preventing the abuse of the provisions of this section by persons who are not (or who should not be treated as) qualified residents of Taiwan,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H94F7E14AD6EC41BDA48DEABA97CC9AD5"><enum>(C)</enum><text>requirements for record keeping and reporting,</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H135A7D4ED1DF4DAA8CC8F95E6CF9809C"><enum>(D)</enum><text display-inline="yes-display-inline">rules to assist withholding agents or employers in determining whether a foreign person is a qualified resident of Taiwan for purposes of determining whether withholding or reporting is required for a payment (and, if withholding is required, whether it should be applied at a reduced rate), </text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H1BFD34E19C10463882D43AC4643A053D"><enum>(E)</enum><text display-inline="yes-display-inline">the application of subsection (a)(1)(D)(i) to stock held by predecessor owners, </text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H0AFDE9C03C894769BE4E6D671A6D1E4E"><enum>(F)</enum><text display-inline="yes-display-inline">determining what amounts are to be treated as qualified wages for purposes of subsection (a)(2),</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H13E90D2F7BC940D0BC5D2DEBDEBCEB96"><enum>(G)</enum><text>determining the amounts to which subsection (a)(3) applies,</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H560D3E1FF9364F048D136E159354511D"><enum>(H)</enum><text display-inline="yes-display-inline">defining established securities market for purposes of subsection (c), </text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H3B22871E476B46A8B17858748CE18664"><enum>(I)</enum><text>the application of the rules of subsection (c)(4)(B),</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H38CD51A1A5374020A5182FC760C4D2B5"><enum>(J)</enum><text display-inline="yes-display-inline">the application of subsection (d)(6) and section 1446, </text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H304CB891FAE54710870BDC4FFD65DC27"><enum>(K)</enum><text display-inline="yes-display-inline">determining ownership interests held by residents of a foreign country of concern, and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H0FE4635A1C0E4F919DC8E72889297D7A"><enum>(L)</enum><text display-inline="yes-display-inline">determining the starting and ending dates for periods with respect to the application of this section under subsection (e), which may be separate dates for taxes withheld at the source and other taxes.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC7434747D8554523B07FEDFD18089E89"><enum>(2)</enum><header>Regulations to be consistent with model treaty</header><text display-inline="yes-display-inline">Any regulations or other guidance issued under this section shall, to the extent practical, be consistent with the provisions of the United States model income tax convention dated February 7, 2016.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="HD3CD5D6136DF4211A5542A105F20E4AD"><enum>(b)</enum><header>Conforming amendment to withholding tax</header><text>Subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/3">chapter 3</external-xref> is amended by adding at the end the following new section:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H267A7D63D44247EAB22C8F2D5E199053">
<section commented="no" display-inline="no-display-inline" id="H6AB82C5BCA7B46848CF8ABBCA1E8DD7A"><enum>1447.</enum><header>Withholding for qualified residents of Taiwan</header><text display-inline="no-display-inline">For reduced rates of withholding for certain residents of Taiwan, see section 894A.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H8748389DE95D4FB0A34A1F5058E6061C"><enum>(c)</enum><header>Clerical amendments</header> <paragraph commented="no" display-inline="no-display-inline" id="H2C5A42F4FE5F4764B114A259D19AEFF9"><enum>(1)</enum><text>The table of sections for subpart D of part II of subchapter N of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 894 the following new item:</text>
<quoted-block style="OLC" id="H5AA3528E3F324663894715319D0E182E">
<toc>
<toc-entry level="section" idref="HC24129C0D37E4FE6A0B35F48C08C1A5D">Sec. 894A. Special rules for qualified residents of Taiwan.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6176CF33706A47E3A9A5E61D1FA2E6BB"><enum>(2)</enum><text>The table of sections for subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/3">chapter 3</external-xref> is amended by adding at the end the following new item:</text> <quoted-block style="OLC" id="HB959862B4AC34BCBB990C600C2A6C1C6"> <toc> <toc-entry level="section" idref="H6AB82C5BCA7B46848CF8ABBCA1E8DD7A">Sec. 1447. Withholding for qualified residents of Taiwan.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></subtitle> <subtitle id="H1F790B58BEC741E0878112FD85520678"><enum>B</enum><header>United States-Taiwan Tax Agreement Authorization Act</header> <section id="HA83CC58F95554FCDB7ACEE10BDA1600C" section-type="subsequent-section"><enum>311.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>United States-Taiwan Tax Agreement Authorization Act</short-title></quote>.</text></section>
<section id="H907758C2AFA64EC182F7454DF6744EC3"><enum>312.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph id="HC7E37EFF6A7A4B81903A9D17D2A90672"><enum>(1)</enum><header>Agreement</header><text>The term <term>Agreement</term> means the tax agreement authorized by section 313(a).</text></paragraph>
<paragraph id="H1A3E98E8E64646B38EC80D6548F29527"><enum>(2)</enum><header>Appropriate congressional committees</header><text>The term <term>appropriate congressional committees</term> means—</text> <subparagraph id="H9977BBFA98D54021917C3173471E3B82"><enum>(A)</enum><text>the Committee on Foreign Relations and the Committee on Finance of the Senate; and</text></subparagraph>
<subparagraph id="H99C859CEDE77443A98F2D1A84CB32402"><enum>(B)</enum><text>the Committee on Ways and Means of the House of Representatives.</text></subparagraph></paragraph> <paragraph id="H30A9342EC1C84776AA1ADDF80E902E19"><enum>(3)</enum><header>Approval legislation</header><text>The term <term>approval legislation</term> means legislation that approves the Agreement.</text></paragraph>
<paragraph id="HCAB1AC76448640E5B62E65CEBDB11D07"><enum>(4)</enum><header>Implementing legislation</header><text>The term <term>implementing legislation</term> means legislation that makes any changes to the Internal Revenue Code of 1986 necessary to implement the Agreement.</text></paragraph></section> <section id="H82D35E6BE4FD4298B779A7A5434F66B4"><enum>313.</enum><header>Authorization to negotiate and enter into agreement</header> <subsection id="H22F7A426399E415C8517B75471504AFA"><enum>(a)</enum><header>In general</header><text>Subsequent to a determination under <external-xref legal-doc="usc" parsable-cite="usc/26/894A">section 894A(e)(1)</external-xref> of the Internal Revenue Code of 1986 (as added by the <short-title>United States-Taiwan Expedited Double-Tax Relief Act</short-title>), the President is authorized to negotiate and enter into a tax agreement relative to Taiwan.</text></subsection>
<subsection id="H809A7264AE6444B2B0DF13482A4661A9"><enum>(b)</enum><header>Elements of agreement</header>
<paragraph id="HA0D175F036334C0AA9F7B72EB4C9345B"><enum>(1)</enum><header>Conformity with bilateral income tax conventions</header><text>The President shall ensure that—</text> <subparagraph id="HC3F21C8E980A401EAFA2A323C973421F"><enum>(A)</enum><text>any provisions included in the Agreement conform with provisions customarily contained in United States bilateral income tax conventions, as exemplified by the 2016 United States Model Income Tax Convention; and</text></subparagraph>
<subparagraph id="HB339B00426DD4CEA887DF59A37D089F4"><enum>(B)</enum><text>the Agreement does not include elements outside the scope of the 2016 United States Model Income Tax Convention.</text></subparagraph></paragraph> <paragraph id="HF66282862CA04D8AB2231CBC382F1534"><enum>(2)</enum><header>Incorporation of tax agreements and laws</header><text>Notwithstanding paragraph (1), the Agreement may incorporate and restate provisions of any agreement, or existing United States law, addressing double taxation for residents of the United States and Taiwan.</text></paragraph>
<paragraph id="HB172AFD734D94647BB3E6C5B6A20A9DE"><enum>(3)</enum><header>Authority</header><text>The Agreement shall include the following statement: <quote>The Agreement is entered into pursuant to the <short-title>United States-Taiwan Tax Agreement Authorization Act</short-title>.</quote></text></paragraph> <paragraph id="H63DA87844ED7473E8394BD59D28861CB"><enum>(4)</enum><header>Entry into force</header><text>The Agreement shall include a provision conditioning entry into force upon—</text>
<subparagraph id="H6DFB20ECD15E448582DA6F03E33AEC4F"><enum>(A)</enum><text>enactment of approval legislation and implementing legislation pursuant to section 317; and</text></subparagraph> <subparagraph id="H62C2DF796EB24746998B7A600119D7CD"><enum>(B)</enum><text>confirmation by the Secretary of the Treasury that the relevant authority in Taiwan has approved and taken appropriate steps required to implement the Agreement.</text></subparagraph></paragraph></subsection></section>
<section id="H96D309B9C6C54DB39705A202E79AF314"><enum>314.</enum><header>Consultations with Congress</header>
<subsection id="HD8E87536F28F457E8D66038620AA0549"><enum>(a)</enum><header>Notification upon commencement of negotiations</header><text>The President shall provide written notification to the appropriate congressional committees of the commencement of negotiations between the United States and Taiwan on the Agreement at least 15 calendar days before commencing such negotiations.</text></subsection> <subsection id="H3E55FCA23F6548639B4B3C1FFF35221C"><enum>(b)</enum><header>Consultations during negotiations</header> <paragraph id="H610E8A14D1EF48E48361302C6AD8778D"><enum>(1)</enum><header>Briefings</header><text>Not later than 90 days after commencement of negotiations with respect to the Agreement, and every 180 days thereafter until the President enters into the Agreement, the President shall provide a briefing to the appropriate congressional committees on the status of the negotiations, including a description of elements under negotiation.</text></paragraph>
<paragraph id="H29923D13E9FB449381E8B035D97D5777"><enum>(2)</enum><header>Meetings and other consultations</header>
<subparagraph id="H76FF5236C1C94AEF999AAB233C356477"><enum>(A)</enum><header>In general</header><text>In the course of negotiations with respect to the Agreement, the Secretary of the Treasury, in coordination with the Secretary of State, shall—</text> <clause id="H2A52F786E5C34ED2BF480C00D965A005"><enum>(i)</enum><text>meet, upon request, with the chairman or ranking member of any of the appropriate congressional committees regarding negotiating objectives and the status of negotiations in progress; and</text></clause>
<clause id="H638D3EDA781A466E9FD9A47C68F47E02"><enum>(ii)</enum><text>consult closely and on a timely basis with, and keep fully apprised of the negotiations, the appropriate congressional committees.</text></clause></subparagraph> <subparagraph id="HEFE9CE1BB6BD4F85AFAA36D123692DC0"><enum>(B)</enum><header>Elements of consultations</header><text>The consultations described in subparagraph (A) shall include consultations with respect to—</text>
<clause id="HABF1B339A6634F99A2CC731D0CBEB080"><enum>(i)</enum><text>the nature of the contemplated Agreement;</text></clause> <clause id="HC1AF4B26FE284C3F8EC41A06261BB54A"><enum>(ii)</enum><text>how and to what extent the contemplated Agreement is consistent with the elements set forth in section 313(b); and</text></clause>
<clause id="H760CF38503FF4BC883071EB10642840F"><enum>(iii)</enum><text>the implementation of the contemplated Agreement, including—</text> <subclause id="HFAD67ADBF5AE499A8C2240C2816D52C5"><enum>(I)</enum><text>the general effect of the contemplated Agreement on existing laws;</text></subclause>
<subclause id="HDF7CA8C428AD4930A207BDE9E0F38ED4"><enum>(II)</enum><text>proposed changes to any existing laws to implement the contemplated Agreement; and</text></subclause> <subclause id="HDB30C14294854C7EB7B4FFBB77838280"><enum>(III)</enum><text>proposed administrative actions to implement the contemplated Agreement.</text></subclause></clause></subparagraph></paragraph></subsection></section>
<section id="HACC5835B467541748DD447CC6919EBF1"><enum>315.</enum><header>Approval and implementation of agreement</header>
<subsection id="H98CC26759665402BB9B5FCC76E4D55B1"><enum>(a)</enum><header>In general</header><text>The Agreement may not enter into force unless—</text> <paragraph id="H6B492A4ED258440DAA1077FAE7303687"><enum>(1)</enum><text>the President, at least 60 days before the day on which the President enters into the Agreement, publishes the text of the contemplated Agreement on a publicly available website of the Department of the Treasury; and</text></paragraph>
<paragraph id="HFBAC461D01BB4A86A6C4643DE9BFE3EF"><enum>(2)</enum><text>there is enacted into law, with respect to the Agreement, approval legislation and implementing legislation pursuant to section 317.</text></paragraph></subsection> <subsection id="HBE021CB1080F4B988EEBC3B5DEE9D10B"><enum>(b)</enum><header>Entry into force</header><text>The President may provide for the Agreement to enter into force upon—</text>
<paragraph id="H1AA2BE2F2F504E3381D392D542B5E153"><enum>(1)</enum><text>enactment of approval legislation and implementing legislation pursuant to section 317; and</text></paragraph> <paragraph id="H57458B3FB0C84F7E8AAB6F02D9A97837"><enum>(2)</enum><text>confirmation by the Secretary of the Treasury that the relevant authority in Taiwan has approved and taken appropriate steps required to implement the Agreement.</text></paragraph></subsection></section>
<section id="HC26473304D1749578D05D43369DA7050"><enum>316.</enum><header>Submission to Congress of agreement and implementation policy</header>
<subsection id="HD9FE11031B794AECAD50AA216B575D17"><enum>(a)</enum><header>Submission of agreement</header><text>Not later than 270 days after the President enters into the Agreement, the President or the President’s designee shall submit to Congress—</text> <paragraph id="H80C75ABF8B3B4AF691099CFAD42238BB"><enum>(1)</enum><text>the final text of the Agreement; and</text></paragraph>
<paragraph id="H9F7BF03BDD5941F4ABE04B5099C88D0E"><enum>(2)</enum><text>a technical explanation of the Agreement.</text></paragraph></subsection> <subsection id="HCDBFEA402867480394C0D365CB2B27F2"><enum>(b)</enum><header>Submission of implementation policy</header><text>Not later than 270 days after the President enters into the Agreement, the Secretary of the Treasury shall submit to Congress—</text>
<paragraph id="H063C94DB622F41158ED7034FEA1B374E"><enum>(1)</enum><text>a description of those changes to existing laws that the President considers would be required in order to ensure that the United States acts in a manner consistent with the Agreement; and</text></paragraph> <paragraph id="HC952C0D688DA456598A87FF45BED9A4C"><enum>(2)</enum><text>a statement of anticipated administrative action proposed to implement the Agreement.</text></paragraph></subsection></section>
<section id="H6C7D13E83BB541B2845B763E439A6C2A"><enum>317.</enum><header>Consideration of approval legislation and implementing legislation</header>
<subsection id="H6FC3A2516227476D8D6FF7649384BCE5"><enum>(a)</enum><header>In general</header><text>The approval legislation with respect to the Agreement shall include the following: <quote>Congress approves the Agreement submitted to Congress pursuant to section 316 of the <short-title>United States-Taiwan Tax Agreement Authorization Act</short-title> on ____.</quote>, with the blank space being filled with the appropriate date.</text></subsection> <subsection id="HC66D209E2C9746EA9889760C5964B4F2"><enum>(b)</enum><header>Approval legislation committee referral</header><text>The approval legislation shall—</text>
<paragraph id="H4AFCB84F955C44E3AF212D0D7EE59E41"><enum>(1)</enum><text>in the Senate, be referred to the Committee on Foreign Relations; and</text></paragraph> <paragraph id="HAA075FBACEA34E719A9C51A36EABCEB6"><enum>(2)</enum><text>in the House of Representaives, be referred to the Committee on Ways and Means.</text></paragraph></subsection>
<subsection id="HAE34F1B5B8F249A9AC48EE0400EA1BF1"><enum>(c)</enum><header>Implementing legislation committee referral</header><text>The implementing legislation shall—</text> <paragraph id="H5B27B228259844A58CED1FFB5CD53F93"><enum>(1)</enum><text>in the Senate, be referred to the Committee on Finance; and</text></paragraph>
<paragraph id="H6F81B358A5484891B1B7486147672A75"><enum>(2)</enum><text>in the House of Representatives, be referred to the Committee on Ways and Means.</text></paragraph></subsection></section> <section id="HD71747ACCFFD457E8BBEDC59F8DA04AF"><enum>318.</enum><header>Relationship of agreement to Internal Revenue Code of 1986</header> <subsection id="H95D8DC92E5B545EE9D478912D0E102E1"><enum>(a)</enum><header>Internal Revenue Code of 1986 to control</header><text>No provision of the Agreement or approval legislation, nor the application of any such provision to any person or circumstance, which is inconsistent with any provision of the Internal Revenue Code of 1986, shall have effect.</text></subsection>
<subsection id="H07EA193ED497402C9E4517258CE75A99"><enum>(b)</enum><header>Construction</header><text>Nothing in this subtitle shall be construed—</text> <paragraph id="H09D374F92A1D41E2AE55587D456D2FB7"><enum>(1)</enum><text>to amend or modify any law of the United States; or</text></paragraph>
<paragraph id="H53913EB05FF546B7973CE022E0BECA71"><enum>(2)</enum><text>to limit any authority conferred under any law of the United States,</text></paragraph><continuation-text continuation-text-level="subsection">unless specifically provided for in this subtitle.</continuation-text></subsection></section> <section id="H1D712C19A05A4928A9E984E08B516E6D"><enum>319.</enum><header>Authorization of subsequent tax agreements relative to Taiwan</header> <subsection id="H4E9C662B657B4D18905A894240025F70"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsequent to the enactment of approval legislation and implementing legislation pursuant to section 317—</text>
<paragraph id="H0F07A766AAB943829E61EC408837FBD3"><enum>(1)</enum><text>the term “tax agreement” in section 313(a) shall be treated as including any tax agreement relative to Taiwan which supplements or supersedes the Agreement to which such approval legislation and implementing legislation relates, and</text></paragraph> <paragraph id="H59FC94BCE5CD4F2FBE85E5062644D3E9"><enum>(2)</enum><text>the term “Agreement” shall be treated as including such tax agreement.</text></paragraph></subsection>
<subsection id="HC812C30F027A4FD9B6716E75CA509BAA"><enum>(b)</enum><header>Requirements, etc., to apply separately</header><text>The provisions of this subtitle (including section 314) shall be applied separately with respect to each tax agreement referred to in subsection (a).</text></subsection></section> <section id="HC0E349B53E2246278229D1E628A41BE4"><enum>320.</enum><header>United States treatment of double taxation matters with respect to Taiwan</header> <subsection id="H531A62CD3CC44FD09151C503E6B2403E"><enum>(a)</enum><header>Findings</header><text>Congress makes the following findings:</text>
<paragraph id="HF8E5092A9C0E46BDB0C722C46E8D9619"><enum>(1)</enum><text>The United States addresses issues with respect to double taxation with foreign countries by entering into bilateral income tax conventions (known as tax treaties) with such countries, subject to the advice and consent of the Senate to ratification pursuant to article II of the Constitution.</text></paragraph> <paragraph id="H41E7CF569F804733B3C22429BE224683"><enum>(2)</enum><text>The United States has entered into more than sixty such tax treaties, which facilitate economic activity, strengthen bilateral cooperation, and benefit United States workers, businesses, and other United States taxpayers.</text></paragraph>
<paragraph id="HD494C621101240E589436F81B4BC2E02"><enum>(3)</enum><text display-inline="yes-display-inline">Due to Taiwan’s unique status, the United States is unable to enter into an article II tax treaty with Taiwan, necessitating an agreement to address issues with respect to double taxation.</text></paragraph></subsection> <subsection id="HEEC12535A04E40E486262B1C4A3BA850"><enum>(b)</enum><header>Statement of policy</header><text>It is the policy of the United States to—</text>
<paragraph id="H8F33171D4A03421092B474BF3ECFF7AC"><enum>(1)</enum><text display-inline="yes-display-inline">provide for additional bilateral tax relief with respect to Taiwan, beyond that provided for in <external-xref legal-doc="usc" parsable-cite="usc/26/894A">section 894A</external-xref> of the Internal Revenue Code of 1986 (as added by the <short-title>United States-Taiwan Expedited Double-Tax Relief Act</short-title>), only after entry into force of an Agreement, as provided for in section 315, and only in a manner consistent with such Agreement; and</text></paragraph> <paragraph id="H4515234802A74A3B996896A76C3681D3"><enum>(2)</enum><text>continue to provide for bilateral tax relief with sovereign states to address double taxation and other related matters through entering into bilateral income tax conventions, subject to the Senate’s advice and consent to ratification pursuant to article II of the Constitution.</text></paragraph></subsection></section></subtitle>
<enum>IV</enum><header>Assistance for Disaster-Impacted Communities</header>
<section id="H3C785CFD7342495E98D1349292E6B8C6" section-type="subsequent-section"><enum>401.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Federal Disaster Tax Relief Act of 2024</short-title></quote>. </text></section> <section id="H23D7407643014E379F4408501856D5EA"><enum>402.</enum><header>Extension of rules for treatment of certain disaster-related personal casualty losses</header><text display-inline="no-display-inline">For purposes of applying section 304(b) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, section 301 of such Act shall be applied by substituting <quote>the <short-title>Federal Disaster Tax Relief Act of 2024</short-title></quote> for <quote>this Act</quote> each place it appears. </text></section>
<section id="H78EB6B4386EE472B94658C6CF965BBAC" section-type="subsequent-section"><enum>403.</enum><header>Exclusion from gross income for compensation for losses or damages resulting from certain wildfires</header>
<subsection id="HAE10BD653CE14F879972F62ABB5F54F2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of the Internal Revenue Code of 1986, gross income shall not include any amount received by an individual as a qualified wildfire relief payment.</text></subsection> <subsection id="HB6C8B509A7BA439687C17CD23B5B6074"><enum>(b)</enum><header>Qualified wildfire relief payment</header><text>For purposes of this section—</text>
<paragraph id="HC52D72AE802F4C2E8C39F97103DC4E03"><enum>(1)</enum><header>In general</header><text>The term <term>qualified wildfire relief payment</term> means any amount received by or on behalf of an individual as compensation for losses, expenses, or damages (including compensation for additional living expenses, lost wages (other than compensation for lost wages paid by the employer which would have otherwise paid such wages), personal injury, death, or emotional distress) incurred as a result of a qualified wildfire disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise.</text></paragraph> <paragraph id="HC463B04406954B2AA53FCE1DCF681E43"><enum>(2)</enum><header>Qualified wildfire disaster</header><text display-inline="yes-display-inline">The term <term>qualified wildfire disaster</term> means any federally declared disaster (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/165">section 165(i)(5)(A)</external-xref> of the Internal Revenue Code of 1986) declared, after December 31, 2014, as a result of any forest or range fire.</text></paragraph></subsection>
<subsection id="HB8D63AE5480D452DB13D3EF231198503"><enum>(c)</enum><header>Denial of double benefit</header><text display-inline="yes-display-inline">Notwithstanding any other provision of the Internal Revenue Code of 1986—</text> <paragraph id="H8AC73C54C5B5406983386C46275A9A82"><enum>(1)</enum><text>no deduction or credit shall be allowed (to the person for whose benefit a qualified wildfire relief payment is made) for, or by reason of, any expenditure to the extent of the amount excluded under this section with respect to such expenditure, and</text></paragraph>
<paragraph id="H7A41BB33693E41078D149389ACDE903D"><enum>(2)</enum><text display-inline="yes-display-inline">no increase in the basis or adjusted basis of any property shall result from any amount excluded under this subsection with respect to such property.</text></paragraph></subsection> <subsection id="H17839C090CDD4B8284FF86CB18C6AD57"><enum>(d)</enum><header>Limitation on application</header><text>This section shall only apply to qualified wildfire relief payments received by the individual during taxable years beginning after December 31, 2019, and before January 1, 2026.</text></subsection></section>
<section id="HDECA31B9707B47839F116357665C6918" section-type="subsequent-section"><enum>404.</enum><header>East Palestine disaster relief payments</header>
<subsection id="H86E066A4615543B48E711FFDE2EA121F"><enum>(a)</enum><header>Disaster relief payments to victims of East Palestine train derailment</header><text display-inline="yes-display-inline">East Palestine train derailment payments shall be treated as qualified disaster relief payments for purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/139">section 139(b)</external-xref> of the Internal Revenue Code of 1986.</text></subsection> <subsection id="HED9730262DE0492D93B560131F53E7FA"><enum>(b)</enum><header>East Palestine train derailment payments</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>East Palestine train derailment payment</term> means any amount received by or on behalf of an individual as compensation for loss, damages, expenses, loss in real property value, closing costs with respect to real property (including realtor commissions), or inconvenience (including access to real property) resulting from the East Palestine train derailment if such amount was provided by—</text>
<paragraph id="H5197EB52506248A5B372A3BA65DBE57B" commented="no"><enum>(1)</enum><text>a Federal, State, or local government agency,</text></paragraph> <paragraph id="HB1BAB47FC78E401D88D8144426C85BF6"><enum>(2)</enum><text>Norfolk Southern Railway, or</text></paragraph>
<paragraph id="H56D0326707714E9FA8A407ECA917F0D5"><enum>(3)</enum><text>any subsidiary, insurer, or agent of Norfolk Southern Railway or any related person.</text></paragraph></subsection> <subsection id="HE92F49BD75C244399584268549EB8A95"><enum>(c)</enum><header>Train derailment</header><text>For purposes of this section, the term <term>East Palestine train derailment</term> means the derailment of a train in East Palestine, Ohio, on February 3, 2023.</text></subsection>
<subsection id="H571184F2FF8E46C09FA283261DC25B3E"><enum>(d)</enum><header>Effective date</header><text>This section shall apply to amounts received on or after February 3, 2023.</text></subsection></section> <enum>V</enum><header>More Affordable housing</header> <section id="H9B394987DC4A470485AF238C67D81E82" commented="no"><enum>501.</enum><header>State housing credit ceiling increase for low-income housing credit</header> <subsection id="HE0BC497909C84D3887F60D15B180286F" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/42">Section 42(h)(3)(I)</external-xref> is amended—</text>
<paragraph id="H3F53201183054B3DA87A83774465ECD1"><enum>(1)</enum><text>by striking <quote>and 2021,</quote> and inserting <quote>2021, 2023, 2024, and 2025,</quote>, and</text></paragraph> <paragraph id="HF19E6FEBF14848BE80E04F6864B6638F"><enum>(2)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">2018, 2019, 2020, and 2021</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subparagraph" style="OLC">certain calendar years</header-in-text></quote>. </text></paragraph></subsection>
<subsection id="H50D09045FB7B4CA296954D6F1007D468" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to calendar years after 2022.</text></subsection></section> <section id="H19711F151AFD4A13B62B1CEEE044BEF8"><enum>502.</enum><header>Tax-exempt bond financing requirement</header> <subsection id="HC4CE1CEAB3BA43189C6C244752F9755B"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/42">Section 42(h)(4)</external-xref> is amended by striking subparagraph (B) and inserting the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HBD5383D1D2754AF5893F088728BADE63">
<subparagraph id="H65F10B475C754E76940C2D7EEC3B3DC0"><enum>(B)</enum><header>Special rule where minimum percent of buildings is financed with tax-exempt bonds subject to volume cap</header><text>For purposes of subparagraph (A), paragraph (1) shall not apply to any portion of the credit allowable under subsection (a) with respect to a building if—</text> <clause id="HD052E23CE6B548A5A6B9C1EB1689A00E"><enum>(i)</enum><text>50 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), or</text></clause>
<clause id="H5944AE228EB84025BFD28DFA2C18FA6D"><enum>(ii)</enum>
<subclause commented="no" display-inline="yes-display-inline" id="H6BC161198A0A40E182FF3EBFEE94D4E1"><enum>(I)</enum><text>30 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more qualified obligations, and </text></subclause> <subclause commented="no" display-inline="no-display-inline" id="H2F909F470DDC42A085C5DA73C1E84D20" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">1 or more of such qualified obligations—</text>
<item commented="no" display-inline="no-display-inline" id="HC8409D213E7749E6BAF0B309E4B8FFCF"><enum>(aa)</enum><text display-inline="yes-display-inline">are part of an issue the issue date of which is after December 31, 2023, and</text></item> <item commented="no" display-inline="no-display-inline" id="HEC412A925D474158A606ED4ACB504A63"><enum>(bb)</enum><text display-inline="yes-display-inline">provide the financing for not less than 5 percent of the aggregate basis of such building and the land on which the building is located. </text></item></subclause></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HB9C7B083F0024512BEA4A84E67317C34"><enum>(C)</enum><header>Qualified obligation</header><text display-inline="yes-display-inline">For purposes of subparagraph (B)(ii), the term <term>qualified obligation</term> means an obligation which is described in subparagraph (A) and which is part of an issue the issue date of which is before January 1, 2026.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection commented="no" display-inline="no-display-inline" id="HBCA1CDE114A140FE93C0B732E78B1360"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header> <paragraph commented="no" display-inline="no-display-inline" id="H678F873D4955406AB9AC2EB2AF7965E4"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to buildings placed in service in taxable years beginning after December 31, 2023.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H3E4826E1A3E841A5B40B85CAADFE3D95"><enum>(2)</enum><header>Rehabilitation expenditures treated as separate new building</header><text>In the case of any building with respect to which any expenditures are treated as a separate new building under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(e)</external-xref> of the Internal Revenue Code of 1986, for purposes of paragraph (1), both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section 42(e)(4) of such Code.</text></paragraph></subsection></section> <enum>VI</enum><header>Tax Administration and Eliminating Fraud</header> <section id="H49393EE91A5E45749BA0AADC5200EEFA" section-type="subsequent-section"><enum>601.</enum><header>Increase in threshold for requiring information reporting with respect to certain payees</header> <subsection id="H8048417F6BBB4E33B25041F00D1F4C66"><enum>(a)</enum><header>In general</header><text>Sections 6041(a) is amended by striking <quote>$600</quote> and inserting <quote>$1,000</quote>.</text></subsection>
<subsection id="HB500D68BF56441E38081C6340D9BC294"><enum>(b)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6041">Section 6041</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block id="HA9AB7136F9664E1486A410E47BDE3B34" style="OLC"> <subsection id="H3F8C82278FF547EA9BA6EE12F4EB8B84"><enum>(h)</enum><header>Inflation adjustment</header><text>In the case of any calendar year after 2024, the dollar amount in subsection (a) shall be increased by an amount equal to—</text>
<paragraph id="H4362980B0ACD458E92171F3E7CB2D6EC"><enum>(1)</enum><text>such dollar amount, multiplied by</text></paragraph> <paragraph id="H4683D0691C1E48C0A5D2C5044BF16CBE"><enum>(2)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting <quote>calendar year 2023</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></paragraph><continuation-text continuation-text-level="subsection">If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HBA11EDA5E2FA4EDEBBB75B6DAB396ED9"><enum>(c)</enum><header>Application to reporting on remuneration for services and direct sales</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6041A">Section 6041A</external-xref> is amended—</text> <paragraph id="H44785544D1E94A60A3B485AD4ACB5DEB"><enum>(1)</enum><text>in subsection (a)(2), by striking <quote>is $600 or more</quote> and inserting <quote>equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)</quote>, and</text></paragraph>
<paragraph id="H034C39CEF8544B49AC1C21326F0655BB"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(1)(B), by striking <quote>is $5,000 or more</quote> and inserting <quote>equals or exceeds the dollar amount in effect for such calendar year under section 6041(a)</quote>.</text></paragraph></subsection> <subsection id="H15B44123C8A94B64AE9F626A0710A24E"><enum>(d)</enum><header>Application to backup withholding</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/3406">Section 3406(b)(6)</external-xref> is amended—</text>
<paragraph id="HE8A613D35C9F4CDB9AC06FD0AE938EDF"><enum>(1)</enum><text>by striking <quote>$600</quote> in subparagraph (A) and inserting <quote>the dollar amount in effect for such calendar year under section 6041(a)</quote>, and</text></paragraph> <paragraph id="HA314CBE580414A7AA6BDF758C875DAE0"><enum>(2)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">only where aggregate for calendar year is <enum-in-header>$600</enum-in-header> or more</header-in-text></quote> in the heading and inserting <quote><header-in-text level="paragraph" style="OLC">only if in excess of threshold</header-in-text></quote>. </text></paragraph></subsection>
<subsection id="H9B6A49CF853148169BFABF77FE63CC9C"><enum>(e)</enum><header>Conforming amendments</header>
<paragraph id="H248F6F3ED57E411B97AABD521576EB6C"><enum>(1)</enum><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/6041">section 6041(a)</external-xref> is amended by striking <quote><header-in-text level="subsection" style="OLC">of $600 or more</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">exceeding threshold</header-in-text></quote>.</text></paragraph> <paragraph id="H91F7AB145B244FECA3477892D45AC3BE"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6041">Section 6041(a)</external-xref> is amended by striking <quote>taxable year</quote> and inserting <quote>calendar year</quote>.</text></paragraph></subsection>
<subsection id="HC3FC197397E94A2CBC1BB322D0155577"><enum>(f)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply with respect to payments made after December 31, 2023.</text></subsection></section> <section id="H427EDFCF13014EB688008887E44862AD"><enum>602.</enum><header>Enforcement provisions with respect to COVID-related employee retention credits</header> <subsection id="H2A18068FDC7541668D82BCBE7FB0EE98"><enum>(a)</enum><header>Increase in assessable penalty on COVID–ERTC promoters for aiding and abetting understatements of tax liability</header> <paragraph id="H2B92B970E52D4B47A29E3A84C316A05E"><enum>(1)</enum><header>In general</header><text>If any COVID–ERTC promoter is subject to penalty under <external-xref legal-doc="usc" parsable-cite="usc/26/6701">section 6701(a)</external-xref> of the Internal Revenue Code of 1986 with respect to any COVID–ERTC document, notwithstanding paragraphs (1) and (2) of section 6701(b) of such Code, the amount of the penalty imposed under such section 6701(a) shall be the greater of—</text>
<subparagraph id="H18DDEBD882F54F46A6801C491E265E80"><enum>(A)</enum><text>$200,000 ($10,000, in the case of a natural person), or</text></subparagraph> <subparagraph id="H94BED1C77E6D4BF380F746FFBEFE9352"><enum>(B)</enum><text>75 percent of the gross income derived (or to be derived) by such promoter with respect to the aid, assistance, or advice referred to in section 6701(a)(1) of such Code with respect to such document.</text></subparagraph></paragraph>
<paragraph id="H038746DC2F124CEE90D27DF12930FBC1"><enum>(2)</enum><header>No inference</header><text display-inline="yes-display-inline">Paragraph (1) shall not be construed to create any inference with respect to the proper application of the knowledge requirement of <external-xref legal-doc="usc" parsable-cite="usc/26/6701">section 6701(a)(3)</external-xref> of the Internal Revenue Code of 1986.</text></paragraph></subsection> <subsection id="HDC8BE480CD3A4C4C84E9EF034E25C121"><enum>(b)</enum><header>Failure to comply with due diligence requirements treated as knowledge for purposes of assessable penalty for aiding and abetting understatement of tax liability</header><text display-inline="yes-display-inline">In the case of any COVID–ERTC promoter, the knowledge requirement of <external-xref legal-doc="usc" parsable-cite="usc/26/6701">section 6701(a)(3)</external-xref> of the Internal Revenue Code of 1986 shall be treated as satisfied with respect to any COVID–ERTC document with respect to which such promoter provided aid, assistance, or advice, if such promoter fails to comply with the due diligence requirements referred to in subsection (c)(1).</text></subsection>
<subsection id="HB9903246F82C41368DA4886C5F9FCF99"><enum>(c)</enum><header>Assessable penalty for failure to comply with due diligence requirements</header>
<paragraph id="H88CFC3B3CA0740AE9FAECBFE57B34DC1"><enum>(1)</enum><header>In general</header><text>Any COVID–ERTC promoter which provides aid, assistance, or advice with respect to any COVID–ERTC document and which fails to comply with due diligence requirements imposed by the Secretary with respect to determining eligibility for, or the amount of, any COVID-related employee retention tax credit, shall pay a penalty of $1,000 for each such failure.</text></paragraph> <paragraph id="HF8D59803F8BE4D21A5A88326776F1137"><enum>(2)</enum><header>Due diligence requirements</header><text>Except as otherwise provided by the Secretary, the due diligence requirements referred to in paragraph (1) shall be similar to the due diligence requirements imposed under section 6695(g).</text></paragraph>
<paragraph id="H8B927BF0680A4EB48C392152B69605D2"><enum>(3)</enum><header>Restriction to documents used in connection with returns or claims for refund</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply with respect to any COVID–ERTC document unless such document constitutes, or relates to, a return or claim for refund.</text></paragraph> <paragraph id="HB2626805833D4FAE81B540954CEA79C9"><enum>(4)</enum><header>Treatment as assessable penalty, etc</header><text>For purposes of the Internal Revenue Code of 1986, the penalty imposed under paragraph (1) shall be treated in the same manner as a penalty imposed under section 6695(g).</text></paragraph>
<paragraph id="H610DBA6203344F1187724516EA31E108"><enum>(5)</enum><header>Secretary</header><text>For purposes of this subsection, the term <term>Secretary</term> means the Secretary of the Treasury or the Secretary’s delegate. </text></paragraph></subsection> <subsection id="HDF756F46FAFD436391FCBBCE7B04F674"><enum>(d)</enum><header>Assessable penalties for failure to disclose information, maintain client lists, etc</header><text>For purposes of sections 6111, 6112, 6707 and 6708 of the Internal Revenue Code of 1986—</text>
<paragraph id="H8828BE91F7064DACBF87F3FB64106821"><enum>(1)</enum><text>any COVID-related employee retention tax credit (whether or not the taxpayer claims such COVID-related employee retention tax credit) shall be treated as a listed transaction (and as a reportable transaction) with respect to any COVID–ERTC promoter if such promoter provides any aid, assistance, or advice with respect to any COVID–ERTC document relating to such COVID-related employee retention tax credit, and</text></paragraph> <paragraph id="H6EA4C784C4734BBF82FDAA3EBEEB3CD0"><enum>(2)</enum><text>such COVID–ERTC promoter shall be treated as a material advisor with respect to such transaction.</text></paragraph></subsection>
<subsection id="H9AA240EB7EC844D1A81CC996329DD191" display-inline="no-display-inline"><enum>(e)</enum><header>COVID–ERTC promoter</header><text>For purposes of this section—</text> <paragraph id="H2F39DD2998E944AE9C6D79BB7CCDF744"><enum>(1)</enum><header>In general</header><text>The term <term>COVID–ERTC promoter</term> means, with respect to any COVID–ERTC document, any person which provides aid, assistance, or advice with respect to such document if—</text>
<subparagraph id="HBA2F0C48D2204AC4B316BC8CBC9DE11D"><enum>(A)</enum><text display-inline="yes-display-inline">such person charges or receives a fee for such aid, assistance, or advice which is based on the amount of the refund or credit with respect to such document and, with respect to such person’s taxable year in which such person provided such assistance or the preceding taxable year, the aggregate gross receipts of such person for aid, assistance, and advice with respect to all COVID-ERTC documents exceeds 20 percent of the gross receipts of such person for such taxable year, or</text></subparagraph> <subparagraph id="H020F54A71C0E44CD867E56492F889465"><enum>(B)</enum><text>with respect to such person’s taxable year in which such person provided such assistance or the preceding taxable year—</text>
<clause id="H398289FA055A47C0A0F6E6BE98DF678A"><enum>(i)</enum><text>the aggregate gross receipts of such person for aid, assistance, and advice with respect to all COVID–ERTC documents exceeds 50 percent of the gross receipts of such person for such taxable year, or</text></clause> <clause id="H32D919E56BE148E39798439DD3A9A237"><enum>(ii)</enum><text display-inline="yes-display-inline">both—</text>
<subclause id="H3D72A9BB1DF44B2CB432C6B314AD1B60"><enum>(I)</enum><text display-inline="yes-display-inline">such aggregate gross receipts exceeds 20 percent of the gross receipts of such person for such taxable year, and</text></subclause> <subclause id="H7A47C831215744FEB170AF8065518E21"><enum>(II)</enum><text display-inline="yes-display-inline">the aggregate gross receipts of such person for aid, assistance, and advice with respect to all COVID–ERTC documents (determined after application of paragraph (3)) exceeds $500,000.</text></subclause></clause></subparagraph></paragraph>
<paragraph id="HB8C0D108FCF04ACA951B40AF6C0225A3"><enum>(2)</enum><header>Exception for certified professional employer organizations</header><text>The term <term>COVID–ERTC promoter</term> shall not include a certified professional employer organization (as defined in section 7705).</text></paragraph> <paragraph id="H0A8320055EF2445192DD50998FD57BF7"><enum>(3)</enum><header>Aggregation rule</header><text>For purposes of paragraph (1)(B)(ii)(II), all persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986, or subsection (m) or (o) of section 414 of such Code, shall be treated as 1 person.</text></paragraph>
<paragraph id="H8F0409020E704A18906DB3284D85DECF"><enum>(4)</enum><header>Short taxable years</header><text>In the case of any taxable year of less than 12 months, paragraph (1) shall be applied with respect to the calendar year in which such taxable year begins (in addition to applying to such taxable year).</text></paragraph></subsection> <subsection id="HACDC33AE9194424A8751295AE143EAD5"><enum>(f)</enum><header>COVID–ERTC document</header><text>For purposes of this section, the term <term>COVID–ERTC document</term> means any return, affidavit, claim, or other document related to any COVID-related employee retention tax credit, including any document related to eligibility for, or the calculation or determination of any amount directly related to any COVID-related employee retention tax credit.</text></subsection>
<subsection id="H4695D404E9E0410683199D4EDBA8B572"><enum>(g)</enum><header>COVID-related employee retention tax credit</header><text>For purposes of this section, the term <term>COVID-related employee retention tax credit</term> means—</text> <paragraph id="HE46185EA215B47578C6E41E8D9B63514"><enum>(1)</enum><text>any credit, or advance payment, under <external-xref legal-doc="usc" parsable-cite="usc/26/3134">section 3134</external-xref> of the Internal Revenue Code of 1986, and</text></paragraph>
<paragraph id="H4F5703037384447A9102FB44744ADCC9"><enum>(2)</enum><text>any credit, or advance payment, under section 2301 of the CARES Act.</text></paragraph></subsection> <subsection id="H381BB113B31A44D9938A2B0E6FF7A723"><enum>(h)</enum><header>Limitation on credit and refund of COVID-related employee retention tax credits</header><text>Notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/26/6511">section 6511</external-xref> of the Internal Revenue Code of 1986 or any other provision of law, no credit or refund of any COVID-related employee retention tax credit shall be allowed or made after January 31, 2024, unless a claim for such credit or refund is filed by the taxpayer on or before such date.</text></subsection>
<subsection id="H259492E543A24D6595A715B86B3D7200" display-inline="no-display-inline"><enum>(i)</enum><header>Amendments to extend limitation on assessment</header>
<paragraph id="HD687816F2D1A41B7BB34834D24F6B939"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/3134">Section 3134(l)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H7BA74A584A1B460DAA377A2083581161"> <subsection id="H6E44B74F29B44C2A919EF4E659CEA1D1"><enum>(l)</enum><header>Extension of limitation on assessment</header> <paragraph id="H49F7304C84924CAB961CA7CF9B539800"><enum>(1)</enum><header>In general</header><text>Notwithstanding section 6501, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 6 years after the latest of—</text>
<subparagraph id="HF08E9755A7734DEAA6297A37AD4769C7"><enum>(A)</enum><text>the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed,</text></subparagraph> <subparagraph id="HCAE00325CDD541318ACF54388F8EB23D"><enum>(B)</enum><text>the date on which such return is treated as filed under section 6501(b)(2), or</text></subparagraph>
<subparagraph id="H7F06ED7E8544443CBE2F4CE1E46C62F8"><enum>(C)</enum><text>the date on which the claim for credit or refund with respect to such credit is made.</text></subparagraph></paragraph> <paragraph id="H6A19B38404D14D0BAFBDD0896567E7D3"><enum>(2)</enum><header>Deduction for wages taken into account in determining improperly claimed credit</header> <subparagraph id="H964E4635AFE049B28EAD319B4ECFD930"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding section 6511, in the case of an assessment attributable to a credit claimed under this section, the limitation on the time period for credit or refund of any amount attributable to a deduction for improperly claimed ERTC wages shall not expire before the time period for such assessment expires under paragraph (1).</text></subparagraph>
<subparagraph id="H8449FE3F289A47C0B7AC3973D1D83036"><enum>(B)</enum><header>Improperly claimed ERTC wages</header><text>For purposes of this paragraph, the term <term>improperly claimed ERTC wages</term> means, with respect to an assessment attributable to a credit claimed under this section, the wages with respect to which a deduction would not have been allowed if the portion of the credit to which such assessment relates had been properly claimed. </text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HA108946D4FA842B48CE8E15BD018C8B3"><enum>(2)</enum><header>Application to CARES Act credit</header><text>Section 2301 of the CARES Act is amended by adding at the end the following new subsection:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H3E80A1CD114E40D394BD4ACF2A0D9442">
<subsection id="H413D6C608C9D4E14BFF236F75B6179BA"><enum>(o)</enum><header>Extension of limitation on assessment</header>
<paragraph id="H39A50B76B01643FC9E363C770CE40C10"><enum>(1)</enum><header>In general</header><text>Notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/26/6501">section 6501</external-xref> of the Internal Revenue Code of 1986, the limitation on the time period for the assessment of any amount attributable to a credit claimed under this section shall not expire before the date that is 6 years after the latest of—</text> <subparagraph id="HA76BD21292ED4EBB8ED3C49D42F9091D"><enum>(A)</enum><text>the date on which the original return which includes the calendar quarter with respect to which such credit is determined is filed,</text></subparagraph>
<subparagraph id="HC1A964027D5F4C95A94E80D94E4BAEFF"><enum>(B)</enum><text>the date on which such return is treated as filed under section 6501(b)(2) of such Code, or</text></subparagraph> <subparagraph id="H464FE9F8A0444C1C8914EE710E72CBCD"><enum>(C)</enum><text>the date on which the claim for credit or refund with respect to such credit is made.</text></subparagraph></paragraph>
<paragraph id="H1C17E078FCE84B3E8998240E91F6C23C"><enum>(2)</enum><header>Deduction for wages taken into account in determining improperly claimed credit</header>
<subparagraph id="H48B5F072343B49B1867D17AEAEA90FE7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding section 6511 of such Code, in the case of an assessment attributable to a credit claimed under this section, the limitation on the time period for credit or refund of any amount attributable to a deduction for improperly claimed ERTC wages shall not expire before the time period for such assessment expires under paragraph (1).</text></subparagraph> <subparagraph id="H4391EA52B7624973B8742CBA5D12B062"><enum>(B)</enum><header>Improperly claimed ERTC wages</header><text>For purposes of this paragraph, the term <term>improperly claimed ERTC wages</term> means, with respect to an assessment attributable to a credit claimed under this section, the wages with respect to which a deduction would not have been allowed if the portion of the credit to which such assessment relates had been properly claimed. </text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H59D400BF76864FB5A87A02159B831261"><enum>(j)</enum><header>Effective dates</header>
<paragraph id="H049C31815D1241DA92EEDFAF45C2B592"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this subsection, the provisions of this section shall apply to aid, assistance, and advice provided after March 12, 2020.</text></paragraph> <paragraph id="H36090677B71B4A1481977247A74336EB"><enum>(2)</enum><header>Due diligence requirements</header><text display-inline="yes-display-inline">Subsections (b) and (c) shall apply to aid, assistance, and advice provided after the date of the enactment of this Act.</text></paragraph>
<paragraph id="H25A4791E3ACD4BA38C29C9DFA1CAB4CC"><enum>(3)</enum><header>Limitation on credit and refund of COVID-related employee retention tax credits</header><text>Subsection (h) shall apply to credits and refunds allowed or made after January 31, 2024.</text></paragraph> <paragraph id="H21A8331DD496499A81010C4055334D54"><enum>(4)</enum><header>Amendments to extend limitation on assessment</header><text>The amendments made by subsection (i) shall apply to assessments made after the date of the enactment of this Act.</text></paragraph></subsection>
<subsection id="HD5F89BDFF6934B509A503FAFFE06075C"><enum>(k)</enum><header>Transition rule with respect to requirements to disclose information, maintain client lists, etc</header><text display-inline="yes-display-inline">Any return under <external-xref legal-doc="usc" parsable-cite="usc/26/6111">section 6111</external-xref> of the Internal Revenue Code of 1986, or list under section 6112 of such Code, required by reason of subsection (d) of this section to be filed or maintained, respectively, with respect to any aid, assistance, or advice provided by a COVID–ERTC promoter with respect to a COVID–ERTC document before the date of the enactment of this Act, shall not be required to be so filed or maintained (with respect to such aid, assistance or advice) before the date which is 90 days after such date. </text></subsection> <subsection id="H15716971AB0B46F4B37EE79BEDFEF81A"><enum>(l)</enum><header>Provisions not to be construed to create negative inferences</header> <paragraph id="HA3FD97BF95E346D3ABEF00D1F28B1B46"><enum>(1)</enum><header>No inference with respect to application of knowledge requirement to pre-enactment conduct of COVID-ERTC promoters, etc</header><text display-inline="yes-display-inline">Subsection (b) shall not be construed to create any inference with respect to the proper application of <external-xref legal-doc="usc" parsable-cite="usc/26/6701">section 6701(a)(3)</external-xref> of the Internal Revenue Code of 1986 with respect to any aid, assistance, or advice provided by any COVID-ERTC promoter on or before the date of the enactment of this Act (or with respect to any other aid, assistance, or advice to which such subsection does not apply).</text></paragraph>
<paragraph id="H2B4A31693D8442DAB48781E9F8567C76"><enum>(2)</enum><header>Requirements to disclose information, maintain client lists, etc</header><text>Subsections (d) and (k) shall not be construed to create any inference with respect to whether any COVID-related employee retention tax credit is (without regard to subsection (d)) a listed transaction (or reportable transaction) with respect to any COVID–ERTC promoter; and, for purposes of subsection (j), a return or list shall not be treated as required (with respect to such aid, assistance, or advice) by reason of subsection (d) if such return or list would be so required without regard to subsection (d).</text></paragraph></subsection> <subsection id="H857FE9149A5F4CDAA60DA2567530672A"><enum>(m)</enum><header>Regulations</header><text>The Secretary (as defined in subsection (c)(5)) shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section (and the amendments made by this section).</text></subsection></section>
Passed the House of Representatives January 31, 2024.Cheryl L. Johnson,Clerk.