[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4440 Enrolled Bill (ENR)]


        H.R.4440

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
            the fourth day of January, two thousand and five


                                 An Act


 
 To amend the Internal Revenue Code of 1986 to provide tax benefits for 
the Gulf Opportunity Zone and certain areas affected by Hurricanes Rita 
                   and Wilma, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``Gulf Opportunity 
Zone Act of 2005''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:
Sec. 1. Short title; etc.

             TITLE I--ESTABLISHMENT OF GULF OPPORTUNITY ZONE

Sec. 101. Tax benefits for Gulf Opportunity Zone.
Sec. 102. Expansion of Hope Scholarship and Lifetime Learning Credit for 
          students in the Gulf Opportunity Zone.
Sec. 103. Housing relief for individuals affected by Hurricane Katrina.
Sec. 104. Extension of special rules for mortgage revenue bonds.
Sec. 105. Special extension of bonus depreciation placed in service date 
          for taxpayers affected by Hurricanes Katrina, Rita, and Wilma.

       TITLE II--TAX BENEFITS RELATED TO HURRICANES RITA AND WILMA

Sec. 201. Extension of certain emergency tax relief for Hurricane 
          Katrina to Hurricanes Rita and Wilma.

                       TITLE III--OTHER PROVISIONS

Sec. 301. Gulf Coast Recovery Bonds.
Sec. 302. Election to include combat pay as earned income for purposes 
          of earned income credit.
Sec. 303. Modification of effective date of exception from suspension 
          rules for certain listed and reportable transactions.
Sec. 304. Authority for undercover operations.
Sec. 305. Disclosures of certain tax return information.

                          TITLE IV--TECHNICALS

                       Subtitle A--Tax Technicals

Sec. 401. Short title.
Sec. 402. Amendments related to Energy Policy Act of 2005.
Sec. 403. Amendments related to the American Jobs Creation Act of 2004.
Sec. 404. Amendments related to the Working Families Tax Relief Act of 
          2004.
Sec. 405. Amendments related to the Jobs and Growth Tax Relief 
          Reconciliation Act of 2003.
Sec. 406. Amendment related to the Victims of Terrorism Tax Relief Act 
          of 2001.
Sec. 407. Amendments related to the Economic Growth and Tax Relief 
          Reconciliation Act of 2001.
Sec. 408. Amendments related to the Internal Revenue Service 
          Restructuring and Reform Act of 1998.
Sec. 409. Amendments related to the Taxpayer Relief Act of 1997.
Sec. 410. Amendment related to the Omnibus Budget Reconciliation Act of 
          1990.
Sec. 411. Amendment related to the Omnibus Budget Reconciliation Act of 
          1987.
Sec. 412. Clerical corrections.
Sec. 413. Other corrections related to the American Jobs Creation Act of 
          2004.

                      Subtitle B--Trade Technicals

Sec. 421. Technical corrections to regional value content methods for 
          rules of origin under Public Law 109-53.

                     TITLE V--EMERGENCY REQUIREMENT

Sec. 501. Emergency requirement.

            TITLE I--ESTABLISHMENT OF GULF OPPORTUNITY ZONE

SEC. 101. TAX BENEFITS FOR GULF OPPORTUNITY ZONE.

    (a) In General.--Subchapter Y of chapter 1 is amended by adding at 
the end the following new part:

                  ``PART II--TAX BENEFITS FOR GO ZONES

    ``Sec. 1400M. Definitions. 
    ``Sec. 1400N. Tax benefits for Gulf Opportunity Zone.

``SEC. 1400M. DEFINITIONS.

    ``For purposes of this part--
        ``(1) Gulf opportunity zone.--The terms `Gulf Opportunity Zone' 
    and `GO Zone' mean that portion of the Hurricane Katrina disaster 
    area determined by the President to warrant individual or 
    individual and public assistance from the Federal Government under 
    the Robert T. Stafford Disaster Relief and Emergency Assistance Act 
    by reason of Hurricane Katrina.
        ``(2) Hurricane katrina disaster area.--The term `Hurricane 
    Katrina disaster area' means an area with respect to which a major 
    disaster has been declared by the President before September 14, 
    2005, under section 401 of such Act by reason of Hurricane Katrina.
        ``(3) Rita go zone.--The term `Rita GO Zone' means that portion 
    of the Hurricane Rita disaster area determined by the President to 
    warrant individual or individual and public assistance from the 
    Federal Government under such Act by reason of Hurricane Rita.
        ``(4) Hurricane rita disaster area.--The term `Hurricane Rita 
    disaster area' means an area with respect to which a major disaster 
    has been declared by the President before October 6, 2005, under 
    section 401 of such Act by reason of Hurricane Rita.
        ``(5) Wilma go zone.--The term `Wilma GO Zone' means that 
    portion of the Hurricane Wilma disaster area determined by the 
    President to warrant individual or individual and public assistance 
    from the Federal Government under such Act by reason of Hurricane 
    Wilma.
        ``(6) Hurricane wilma disaster area.--The term `Hurricane Wilma 
    disaster area' means an area with respect to which a major disaster 
    has been declared by the President before November 14, 2005, under 
    section 401 of such Act by reason of Hurricane Wilma.

``SEC. 1400N. TAX BENEFITS FOR GULF OPPORTUNITY ZONE.

    ``(a) Tax-Exempt Bond Financing.--
        ``(1) In general.--For purposes of this title--
            ``(A) any qualified Gulf Opportunity Zone Bond described in 
        paragraph (2)(A)(i) shall be treated as an exempt facility 
        bond, and
            ``(B) any qualified Gulf Opportunity Zone Bond described in 
        paragraph (2)(A)(ii) shall be treated as a qualified mortgage 
        bond.
        ``(2) Qualified gulf opportunity zone bond.--For purposes of 
    this subsection, the term `qualified Gulf Opportunity Zone Bond' 
    means any bond issued as part of an issue if--
            ``(A)(i) 95 percent or more of the net proceeds (as defined 
        in section 150(a)(3)) of such issue are to be used for 
        qualified project costs, or
            ``(ii) such issue meets the requirements of a qualified 
        mortgage issue, except as otherwise provided in this 
        subsection,
            ``(B) such bond is issued by the State of Alabama, 
        Louisiana, or Mississippi, or any political subdivision 
        thereof,
            ``(C) such bond is designated for purposes of this section 
        by--
                ``(i) in the case of a bond which is required under 
            State law to be approved by the bond commission of such 
            State, such bond commission, and
                ``(ii) in the case of any other bond, the Governor of 
            such State,
            ``(D) such bond is issued after the date of the enactment 
        of this section and before January 1, 2011, and
            ``(E) no portion of the proceeds of such issue is to be 
        used to provide any property described in section 144(c)(6)(B).
        ``(3) Limitations on bonds.--
            ``(A) Aggregate amount designated.--The maximum aggregate 
        face amount of bonds which may be designated under this 
        subsection with respect to any State shall not exceed the 
        product of $2,500 multiplied by the portion of the State 
        population which is in the Gulf Opportunity Zone (as determined 
        on the basis of the most recent census estimate of resident 
        population released by the Bureau of Census before August 28, 
        2005).
            ``(B) Movable property.--No bonds shall be issued which are 
        to be used for movable fixtures and equipment.
        ``(4) Qualified project costs.--For purposes of this 
    subsection, the term `qualified project costs' means--
            ``(A) the cost of any qualified residential rental project 
        (as defined in section 142(d)) located in the Gulf Opportunity 
        Zone, and
            ``(B) the cost of acquisition, construction, 
        reconstruction, and renovation of--
                ``(i) nonresidential real property (including fixed 
            improvements associated with such property) located in the 
            Gulf Opportunity Zone, and
                ``(ii) public utility property (as defined in section 
            168(i)(10)) located in the Gulf Opportunity Zone.
        ``(5) Special rules.--In applying this title to any qualified 
    Gulf Opportunity Zone Bond, the following modifications shall 
    apply:
            ``(A) Section 142(d)(1) (defining qualified residential 
        rental project) shall be applied--
                ``(i) by substituting `60 percent' for `50 percent' in 
            subparagraph (A) thereof, and
                ``(ii) by substituting `70 percent' for `60 percent' in 
            subparagraph (B) thereof.
            ``(B) Section 143 (relating to mortgage revenue bonds: 
        qualified mortgage bond and qualified veterans' mortgage bond) 
        shall be applied--
                ``(i) only with respect to owner-occupied residences in 
            the Gulf Opportunity Zone,
                ``(ii) by treating any such residence in the Gulf 
            Opportunity Zone as a targeted area residence,
                ``(iii) by applying subsection (f)(3) thereof without 
            regard to subparagraph (A) thereof, and
                ``(iv) by substituting `$150,000' for `$15,000' in 
            subsection (k)(4) thereof.
            ``(C) Except as provided in section 143, repayments of 
        principal on financing provided by the issue of which such bond 
        is a part may not be used to provide financing.
            ``(D) Section 146 (relating to volume cap) shall not apply.
            ``(E) Section 147(d)(2) (relating to acquisition of 
        existing property not permitted) shall be applied by 
        substituting `50 percent' for `15 percent' each place it 
        appears.
            ``(F) Section 148(f)(4)(C) (relating to exception from 
        rebate for certain proceeds to be used to finance construction 
        expenditures) shall apply to the available construction 
        proceeds of bonds which are part of an issue described in 
        paragraph (2)(A)(i).
            ``(G) Section 57(a)(5) (relating to tax-exempt interest) 
        shall not apply.
        ``(6) Separate issue treatment of portions of an issue.--This 
    subsection shall not apply to the portion of an issue which (if 
    issued as a separate issue) would be treated as a qualified bond or 
    as a bond that is not a private activity bond (determined without 
    regard to paragraph (1)), if the issuer elects to so treat such 
    portion.
    ``(b) Advance Refundings of Certain Tax-Exempt Bonds.--
        ``(1) In general.--With respect to a bond described in 
    paragraph (3), one additional advance refunding after the date of 
    the enactment of this section and before January 1, 2011, shall be 
    allowed under the applicable rules of section 149(d) if--
            ``(A) the Governor of the State designates the advance 
        refunding bond for purposes of this subsection, and
            ``(B) the requirements of paragraph (5) are met.
        ``(2) Certain private activity bonds.--With respect to a bond 
    described in paragraph (3) which is an exempt facility bond 
    described in paragraph (1) or (2) of section 142(a), one advance 
    refunding after the date of the enactment of this section and 
    before January 1, 2011, shall be allowed under the applicable rules 
    of section 149(d) (notwithstanding paragraph (2) thereof) if the 
    requirements of subparagraphs (A) and (B) of paragraph (1) are met.
        ``(3) Bonds described.--A bond is described in this paragraph 
    if such bond was outstanding on August 28, 2005, and is issued by 
    the State of Alabama, Louisiana, or Mississippi, or a political 
    subdivision thereof.
        ``(4) Aggregate limit.--The maximum aggregate face amount of 
    bonds which may be designated under this subsection by the Governor 
    of a State shall not exceed--
            ``(A) $4,500,000,000 in the case of the State of Louisiana,
            ``(B) $2,250,000,000 in the case of the State of 
        Mississippi, and
            ``(C) $1,125,000,000 in the case of the State of Alabama.
        ``(5) Additional requirements.--The requirements of this 
    paragraph are met with respect to any advance refunding of a bond 
    described in paragraph (3) if--
            ``(A) no advance refundings of such bond would be allowed 
        under this title on or after August 28, 2005,
            ``(B) the advance refunding bond is the only other 
        outstanding bond with respect to the refunded bond, and
            ``(C) the requirements of section 148 are met with respect 
        to all bonds issued under this subsection.
        ``(6) Use of proceeds requirement.--This subsection shall not 
    apply to any advance refunding of a bond which is issued as part of 
    an issue if any portion of the proceeds of such issue (or any prior 
    issue) was (or is to be) used to provide any property described in 
    section 144(c)(6)(B).
    ``(c) Low-Income Housing Credit.--
        ``(1) Additional housing credit dollar amount for gulf 
    opportunity zone.--
            ``(A) In general.--For purposes of section 42, in the case 
        of calendar years 2006, 2007, and 2008, the State housing 
        credit ceiling of each State, any portion of which is located 
        in the Gulf Opportunity Zone, shall be increased by the lesser 
        of--
                ``(i) the aggregate housing credit dollar amount 
            allocated by the State housing credit agency of such State 
            to buildings located in the Gulf Opportunity Zone for such 
            calendar year, or
                ``(ii) the Gulf Opportunity housing amount for such 
            State for such calendar year.
            ``(B) Gulf opportunity housing amount.--For purposes of 
        subparagraph (A), the term `Gulf Opportunity housing amount' 
        means, for any calendar year, the amount equal to the product 
        of $18.00 multiplied by the portion of the State population 
        which is in the Gulf Opportunity Zone (as determined on the 
        basis of the most recent census estimate of resident population 
        released by the Bureau of Census before August 28, 2005).
            ``(C) Allocations treated as made first from additional 
        allocation amount for purposes of determining carryover.--For 
        purposes of determining the unused State housing credit ceiling 
        under section 42(h)(3)(C) for any calendar year, any increase 
        in the State housing credit ceiling under subparagraph (A) 
        shall be treated as an amount described in clause (ii) of such 
        section.
        ``(2) Additional housing credit dollar amount for texas and 
    florida.--For purposes of section 42, in the case of calendar year 
    2006, the State housing credit ceiling of Texas and Florida shall 
    each be increased by $3,500,000.
        ``(3) Difficult development area.--
            ``(A) In general.--For purposes of section 42, in the case 
        of property placed in service during 2006, 2007, or 2008, the 
        Gulf Opportunity Zone, the Rita GO Zone, and the Wilma GO 
        Zone--
                ``(i) shall be treated as difficult development areas 
            designated under subclause (I) of section 42(d)(5)(C)(iii), 
            and
                ``(ii) shall not be taken into account for purposes of 
            applying the limitation under subclause (II) of such 
            section.
            ``(B) Application.--Subparagraph (A) shall apply only to--
                ``(i) housing credit dollar amounts allocated during 
            the period beginning on January 1, 2006, and ending on 
            December 31, 2008, and
                ``(ii) buildings placed in service during such period 
            to the extent that paragraph (1) of section 42(h) does not 
            apply to any building by reason of paragraph (4) thereof, 
            but only with respect to bonds issued after December 31, 
            2005.
        ``(4) Special rule for applying income tests.--In the case of 
    property placed in service--
            ``(A) during 2006, 2007, or 2008,
            ``(B) in the Gulf Opportunity Zone, and
            ``(C) in a nonmetropolitan area (as defined in section 
        42(d)(5)(C)(iv)(IV)),
    section 42 shall be applied by substituting `national 
    nonmetropolitan median gross income (determined under rules similar 
    to the rules of section 142(d)(2)(B))' for `area median gross 
    income' in subparagraphs (A) and (B) of section 42(g)(1).
        ``(5) Definitions.--Any term used in this subsection which is 
    also used in section 42 shall have the same meaning as when used in 
    such section.
    ``(d) Special Allowance for Certain Property Acquired on or After 
August 28, 2005.--
        ``(1) Additional allowance.--In the case of any qualified Gulf 
    Opportunity Zone property--
            ``(A) the depreciation deduction provided by section 167(a) 
        for the taxable year in which such property is placed in 
        service shall include an allowance equal to 50 percent of the 
        adjusted basis of such property, and
            ``(B) the adjusted basis of the qualified Gulf Opportunity 
        Zone property shall be reduced by the amount of such deduction 
        before computing the amount otherwise allowable as a 
        depreciation deduction under this chapter for such taxable year 
        and any subsequent taxable year.
        ``(2) Qualified gulf opportunity zone property.--For purposes 
    of this subsection--
            ``(A) In general.--The term `qualified Gulf Opportunity 
        Zone property' means property--
                ``(i)(I) which is described in section 168(k)(2)(A)(i), 
            or
                ``(II) which is nonresidential real property or 
            residential rental property,
                ``(ii) substantially all of the use of which is in the 
            Gulf Opportunity Zone and is in the active conduct of a 
            trade or business by the taxpayer in such Zone,
                ``(iii) the original use of which in the Gulf 
            Opportunity Zone commences with the taxpayer on or after 
            August 28, 2005,
                ``(iv) which is acquired by the taxpayer by purchase 
            (as defined in section 179(d)) on or after August 28, 2005, 
            but only if no written binding contract for the acquisition 
            was in effect before August 28, 2005, and
                ``(v) which is placed in service by the taxpayer on or 
            before December 31, 2007 (December 31, 2008, in the case of 
            nonresidential real property and residential rental 
            property).
            ``(B) Exceptions.--
                ``(i) Alternative depreciation property.--Such term 
            shall not include any property described in section 
            168(k)(2)(D)(i).
                ``(ii) Tax-exempt bond-financed property.--Such term 
            shall not include any property any portion of which is 
            financed with the proceeds of any obligation the interest 
            on which is exempt from tax under section 103.
                ``(iii) Qualified revitalization buildings.--Such term 
            shall not include any qualified revitalization building 
            with respect to which the taxpayer has elected the 
            application of paragraph (1) or (2) of section 1400I(a).
                ``(iv) Election out.--If a taxpayer makes an election 
            under this clause with respect to any class of property for 
            any taxable year, this subsection shall not apply to all 
            property in such class placed in service during such 
            taxable year.
        ``(3) Special rules.--For purposes of this subsection, rules 
    similar to the rules of subparagraph (E) of section 168(k)(2) shall 
    apply, except that such subparagraph shall be applied--
            ``(A) by substituting `August 27, 2005' for `September 10, 
        2001' each place it appears therein,
            ``(B) by substituting `January 1, 2008' for `January 1, 
        2005' in clause (i) thereof, and
            ``(C) by substituting `qualified Gulf Opportunity Zone 
        property' for `qualified property' in clause (iv) thereof.
        ``(4) Allowance against alternative minimum tax.--For purposes 
    of this subsection, rules similar to the rules of section 
    168(k)(2)(G) shall apply.
        ``(5) Recapture.--For purposes of this subsection, rules 
    similar to the rules under section 179(d)(10) shall apply with 
    respect to any qualified Gulf Opportunity Zone property which 
    ceases to be qualified Gulf Opportunity Zone property.
    ``(e) Increase in Expensing Under Section 179.--
        ``(1) In general.--For purposes of section 179--
            ``(A) the dollar amount in effect under section 179(b)(1) 
        for the taxable year shall be increased by the lesser of--
                ``(i) $100,000, or
                ``(ii) the cost of qualified section 179 Gulf 
            Opportunity Zone property placed in service during the 
            taxable year, and
            ``(B) the dollar amount in effect under section 179(b)(2) 
        for the taxable year shall be increased by the lesser of--
                ``(i) $600,000, or
                ``(ii) the cost of qualified section 179 Gulf 
            Opportunity Zone property placed in service during the 
            taxable year.
        ``(2) Qualified section 179 gulf opportunity zone property.--
    For purposes of this subsection, the term `qualified section 179 
    Gulf Opportunity Zone property' means section 179 property (as 
    defined in section 179(d)) which is qualified Gulf Opportunity Zone 
    property (as defined in subsection (d)(2)).
        ``(3) Coordination with empowerment zones and renewal 
    communities.--For purposes of sections 1397A and 1400J, qualified 
    section 179 Gulf Opportunity Zone property shall not be treated as 
    qualified zone property or qualified renewal property, unless the 
    taxpayer elects not to take such qualified section 179 Gulf 
    Opportunity Zone property into account for purposes of this 
    subsection.
        ``(4) Recapture.--For purposes of this subsection, rules 
    similar to the rules under section 179(d)(10) shall apply with 
    respect to any qualified section 179 Gulf Opportunity Zone property 
    which ceases to be qualified section 179 Gulf Opportunity Zone 
    property.
    ``(f) Expensing for Certain Demolition and Clean-up Costs.--
        ``(1) In general.--A taxpayer may elect to treat 50 percent of 
    any qualified Gulf Opportunity Zone clean-up cost as an expense 
    which is not chargeable to capital account. Any cost so treated 
    shall be allowed as a deduction for the taxable year in which such 
    cost is paid or incurred.
        ``(2) Qualified gulf opportunity zone clean-up cost.--For 
    purposes of this subsection, the term `qualified Gulf Opportunity 
    Zone clean-up cost' means any amount paid or incurred during the 
    period beginning on August 28, 2005, and ending on December 31, 
    2007, for the removal of debris from, or the demolition of 
    structures on, real property which is located in the Gulf 
    Opportunity Zone and which is--
            ``(A) held by the taxpayer for use in a trade or business 
        or for the production of income, or
            ``(B) property described in section 1221(a)(1) in the hands 
        of the taxpayer.
    For purposes of the preceding sentence, amounts paid or incurred 
    shall be taken into account only to the extent that such amount 
    would (but for paragraph (1)) be chargeable to capital account.
    ``(g) Extension of Expensing for Environmental Remediation Costs.--
With respect to any qualified environmental remediation expenditure (as 
defined in section 198(b)) paid or incurred on or after August 28, 
2005, in connection with a qualified contaminated site located in the 
Gulf Opportunity Zone, section 198 (relating to expensing of 
environmental remediation costs) shall be applied--
        ``(1) in the case of expenditures paid or incurred on or after 
    August 28, 2005, and before January 1, 2008, by substituting 
    `December 31, 2007' for the date contained in section 198(h), and
        ``(2) except as provided in section 198(d)(2), by treating 
    petroleum products (as defined in section 4612(a)(3)) as a 
    hazardous substance.
    ``(h) Increase in Rehabilitation Credit.--In the case of qualified 
rehabilitation expenditures (as defined in section 47(c)) paid or 
incurred during the period beginning on August 28, 2005, and ending on 
December 31, 2008, with respect to any qualified rehabilitated building 
or certified historic structure (as defined in section 47(c)) located 
in the Gulf Opportunity Zone, subsection (a) of section 47 (relating to 
rehabilitation credit) shall be applied--
        ``(1) by substituting `13 percent' for `10 percent' in 
    paragraph (1) thereof, and
        ``(2) by substituting `26 percent' for `20 percent' in 
    paragraph (2) thereof.
    ``(i) Special Rules for Small Timber Producers.--
        ``(1) Increased expensing for qualified timber property.--In 
    the case of qualified timber property any portion of which is 
    located in the Gulf Opportunity Zone, in that portion of the Rita 
    GO Zone which is not part of the Gulf Opportunity Zone, or in the 
    Wilma GO Zone, the limitation under subparagraph (B) of section 
    194(b)(1) shall be increased by the lesser of--
            ``(A) the limitation which would (but for this subsection) 
        apply under such subparagraph, or
            ``(B) the amount of reforestation expenditures (as defined 
        in section 194(c)(3)) paid or incurred by the taxpayer with 
        respect to such qualified timber property during the specified 
        portion of the taxable year.
        ``(2) 5 year nol carryback of certain timber losses.--For 
    purposes of determining any farming loss under section 172(i), 
    income and deductions which are allocable to the specified portion 
    of the taxable year and which are attributable to qualified timber 
    property any portion of which is located in the Gulf Opportunity 
    Zone, in that portion of the Rita GO Zone which is not part of the 
    Gulf Opportunity Zone, or in the Wilma GO Zone shall be treated as 
    attributable to farming businesses.
        ``(3) Rules not applicable to certain entities.--Paragraphs (1) 
    and (2) shall not apply to any taxpayer which--
            ``(A) is a corporation the stock of which is publicly 
        traded on an established securities market, or
            ``(B) is a real estate investment trust.
        ``(4) Rules not applicable to large timber producers.--
            ``(A) Expensing.--Paragraph (1) shall not apply to any 
        taxpayer if such taxpayer holds more than 500 acres of 
        qualified timber property at any time during the taxable year.
            ``(B) NOL carryback.--Paragraph (2) shall not apply with 
        respect to any qualified timber property unless--
                ``(i) such property was held by the taxpayer--

                    ``(I) on August 28, 2005, in the case of qualified 
                timber property any portion of which is located in the 
                Gulf Opportunity Zone,
                    ``(II) on September 23, 2005, in the case of 
                qualified timber property (other than property 
                described in subclause (I)) any portion of which is 
                located in that portion of the Rita GO Zone which is 
                not part of the Gulf Opportunity Zone, or
                    ``(III) on October 23, 2005, in the case of 
                qualified timber property (other than property 
                described in subclause (I) or (II)) any portion of 
                which is located in the Wilma GO Zone, and

                ``(ii) such taxpayer held not more than 500 acres of 
            qualified timber property on such date.
        ``(5) Definitions.--For purposes of this subsection--
            ``(A) Specified portion.--
                ``(i) In general.--The term `specified portion' means--

                    ``(I) in the case of qualified timber property any 
                portion of which is located in the Gulf Opportunity 
                Zone, that portion of the taxable year which is on or 
                after August 28, 2005, and before the termination date,
                    ``(II) in the case of qualified timber property 
                (other than property described in clause (i)) any 
                portion of which is located in the Rita GO Zone, that 
                portion of the taxable year which is on or after 
                September 23, 2005, and before the termination date, or
                    ``(III) in the case of qualified timber property 
                (other than property described in clause (i) or (ii)) 
                any portion of which is located in the Wilma GO Zone, 
                that portion of the taxable year which is on or after 
                October 23, 2005, and before the termination date.

                ``(ii) Termination date.--The term `termination date' 
            means--

                    ``(I) for purposes of paragraph (1), January 1, 
                2008, and
                    ``(II) for purposes of paragraph (2), January 1, 
                2007.

            ``(B) Qualified timber property.--The term `qualified 
        timber property' has the meaning given such term in section 
        194(c)(1).
    ``(j) Special Rule for Gulf Opportunity Zone Public Utility 
Casualty Losses.--
        ``(1) In general.--The amount described in section 172(f)(1)(A) 
    for any taxable year shall be increased by the Gulf Opportunity 
    Zone public utility casualty loss for such taxable year.
        ``(2) Gulf opportunity zone public utility casualty loss.--For 
    purposes of this subsection, the term `Gulf Opportunity Zone public 
    utility casualty loss' means any casualty loss of public utility 
    property (as defined in section 168(i)(10)) located in the Gulf 
    Opportunity Zone if--
            ``(A) such loss is allowed as a deduction under section 165 
        for the taxable year,
            ``(B) such loss is by reason of Hurricane Katrina, and
            ``(C) the taxpayer elects the application of this 
        subsection with respect to such loss.
        ``(3) Reduction for gains from involuntary conversion.--The 
    amount of any Gulf Opportunity Zone public utility casualty loss 
    which would (but for this paragraph) be taken into account under 
    paragraph (1) for any taxable year shall be reduced by the amount 
    of any gain recognized by the taxpayer for such year from the 
    involuntary conversion by reason of Hurricane Katrina of public 
    utility property (as so defined) located in the Gulf Opportunity 
    Zone.
        ``(4) Coordination with general disaster loss rules.--
    Subsection (k) and section 165(i) shall not apply to any Gulf 
    Opportunity Zone public utility casualty loss to the extent such 
    loss is taken into account under paragraph (1).
        ``(5) Election.--Any election under paragraph (2)(C) shall be 
    made in such manner as may be prescribed by the Secretary and shall 
    be made by the due date (including extensions of time) for filing 
    the taxpayer's return for the taxable year of the loss. Such 
    election, once made for any taxable year, shall be irrevocable for 
    such taxable year.
    ``(k) Treatment of Net Operating Losses Attributable to Gulf 
Opportunity Zone Losses.--
        ``(1) In general.--If a portion of any net operating loss of 
    the taxpayer for any taxable year is a qualified Gulf Opportunity 
    Zone loss, the following rules shall apply:
            ``(A) Extension of carryback period.--Section 172(b)(1) 
        shall be applied with respect to such portion--
                ``(i) by substituting `5 taxable years' for `2 taxable 
            years' in subparagraph (A)(i), and
                ``(ii) by not taking such portion into account in 
            determining any eligible loss of the taxpayer under 
            subparagraph (F) thereof for the taxable year.
            ``(B) Suspension of 90 percent amt limitation.--Section 
        56(d)(1) shall be applied by increasing the amount determined 
        under subparagraph (A)(ii)(I) thereof by the sum of the 
        carrybacks and carryovers of any net operating loss 
        attributable to such portion.
        ``(2) Qualified gulf opportunity zone loss.--For purposes of 
    paragraph (1), the term `qualified Gulf Opportunity Zone loss' 
    means the lesser of--
            ``(A) the excess of--
                ``(i) the net operating loss for such taxable year, 
            over
                ``(ii) the specified liability loss for such taxable 
            year to which a 10-year carryback applies under section 
            172(b)(1)(C), or
            ``(B) the aggregate amount of the following deductions to 
        the extent taken into account in computing the net operating 
        loss for such taxable year:
                ``(i) Any deduction for any qualified Gulf Opportunity 
            Zone casualty loss.
                ``(ii) Any deduction for moving expenses paid or 
            incurred after August 27, 2005, and before January 1, 2008, 
            and allowable under this chapter to any taxpayer in 
            connection with the employment of any individual--

                    ``(I) whose principal place of abode was located in 
                the Gulf Opportunity Zone before August 28, 2005,
                    ``(II) who was unable to remain in such abode as 
                the result of Hurricane Katrina, and
                    ``(III) whose principal place of employment with 
                the taxpayer after such expense is located in the Gulf 
                Opportunity Zone.

            For purposes of this clause, the term `moving expenses' has 
            the meaning given such term by section 217(b), except that 
            the taxpayer's former residence and new residence may be 
            the same residence if the initial vacating of the residence 
            was as the result of Hurricane Katrina.
                ``(iii) Any deduction allowable under this chapter for 
            expenses paid or incurred after August 27, 2005, and before 
            January 1, 2008, to temporarily house any employee of the 
            taxpayer whose principal place of employment is in the Gulf 
            Opportunity Zone.
                ``(iv) Any deduction for depreciation (or amortization 
            in lieu of depreciation) allowable under this chapter with 
            respect to any qualified Gulf Opportunity Zone property (as 
            defined in subsection (d)(2), but without regard to 
            subparagraph (B)(iv) thereof)) for the taxable year such 
            property is placed in service.
                ``(v) Any deduction allowable under this chapter for 
            repair expenses (including expenses for removal of debris) 
            paid or incurred after August 27, 2005, and before January 
            1, 2008, with respect to any damage attributable to 
            Hurricane Katrina and in connection with property which is 
            located in the Gulf Opportunity Zone.
        ``(3) Qualified gulf opportunity zone casualty loss.--
            ``(A) In general.--For purposes of paragraph (2)(B)(i), the 
        term `qualified Gulf Opportunity Zone casualty loss' means any 
        uncompensated section 1231 loss (as defined in section 
        1231(a)(3)(B)) of property located in the Gulf Opportunity Zone 
        if--
                ``(i) such loss is allowed as a deduction under section 
            165 for the taxable year, and
                ``(ii) such loss is by reason of Hurricane Katrina.
            ``(B) Reduction for gains from involuntary conversion.--The 
        amount of qualified Gulf Opportunity Zone casualty loss which 
        would (but for this subparagraph) be taken into account under 
        subparagraph (A) for any taxable year shall be reduced by the 
        amount of any gain recognized by the taxpayer for such year 
        from the involuntary conversion by reason of Hurricane Katrina 
        of property located in the Gulf Opportunity Zone.
            ``(C) Coordination with general disaster loss rules.--
        Section 165(i) shall not apply to any qualified Gulf 
        Opportunity Zone casualty loss to the extent such loss is taken 
        into account under this subsection.
        ``(4) Special rules.--For purposes of paragraph (1), rules 
    similar to the rules of paragraphs (2) and (3) of section 172(i) 
    shall apply with respect to such portion.
    ``(l) Credit to Holders of Gulf Tax Credit Bonds.--
        ``(1) Allowance of credit.--If a taxpayer holds a Gulf tax 
    credit bond on one or more credit allowance dates of the bond 
    occurring during any taxable year, there shall be allowed as a 
    credit against the tax imposed by this chapter for the taxable year 
    an amount equal to the sum of the credits determined under 
    paragraph (2) with respect to such dates.
        ``(2) Amount of credit.--
            ``(A) In general.--The amount of the credit determined 
        under this paragraph with respect to any credit allowance date 
        for a Gulf tax credit bond is 25 percent of the annual credit 
        determined with respect to such bond.
            ``(B) Annual credit.--The annual credit determined with 
        respect to any Gulf tax credit bond is the product of--
                ``(i) the credit rate determined by the Secretary under 
            subparagraph (C) for the day on which such bond was sold, 
            multiplied by
                ``(ii) the outstanding face amount of the bond.
            ``(C) Determination.--For purposes of subparagraph (B), 
        with respect to any Gulf tax credit bond, the Secretary shall 
        determine daily or cause to be determined daily a credit rate 
        which shall apply to the first day on which there is a binding, 
        written contract for the sale or exchange of the bond. The 
        credit rate for any day is the credit rate which the Secretary 
        or the Secretary's designee estimates will permit the issuance 
        of Gulf tax credit bonds with a specified maturity or 
        redemption date without discount and without interest cost to 
        the issuer.
            ``(D) Credit allowance date.--For purposes of this 
        subsection, the term `credit allowance date' means March 15, 
        June 15, September 15, and December 15. Such term also includes 
        the last day on which the bond is outstanding.
            ``(E) Special rule for issuance and redemption.--In the 
        case of a bond which is issued during the 3-month period ending 
        on a credit allowance date, the amount of the credit determined 
        under this paragraph with respect to such credit allowance date 
        shall be a ratable portion of the credit otherwise determined 
        based on the portion of the 3-month period during which the 
        bond is outstanding. A similar rule shall apply when the bond 
        is redeemed or matures.
        ``(3) Limitation based on amount of tax.--The credit allowed 
    under paragraph (1) for any taxable year shall not exceed the 
    excess of--
            ``(A) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(B) the sum of the credits allowable under part IV of 
        subchapter A (other than subpart C and this subsection).
        ``(4) Gulf tax credit bond.--For purposes of this subsection--
            ``(A) In general.--The term `Gulf tax credit bond' means 
        any bond issued as part of an issue if--
                ``(i) the bond is issued by the State of Alabama, 
            Louisiana, or Mississippi,
                ``(ii) 95 percent or more of the proceeds of such issue 
            are to be used to--

                    ``(I) pay principal, interest, or premiums on 
                qualified bonds issued by such State or any political 
                subdivision of such State, or
                    ``(II) make a loan to any political subdivision of 
                such State to pay principal, interest, or premiums on 
                qualified bonds issued by such political subdivision,

                ``(iii) the Governor of such State designates such bond 
            for purposes of this subsection,
                ``(iv) the bond is a general obligation of such State 
            and is in registered form (within the meaning of section 
            149(a)),
                ``(v) the maturity of such bond does not exceed 2 
            years, and
                ``(vi) the bond is issued after December 31, 2005, and 
            before January 1, 2007.
            ``(B) State matching requirement.--A bond shall not be 
        treated as a Gulf tax credit bond unless--
                ``(i) the issuer of such bond pledges as of the date of 
            the issuance of the issue an amount equal to the face 
            amount of such bond to be used for payments described in 
            subclause (I) of subparagraph (A)(ii), or loans described 
            in subclause (II) of such subparagraph, as the case may be, 
            with respect to the issue of which such bond is a part, and
                ``(ii) any such payment or loan is made in equal 
            amounts from the proceeds of such issue and from the amount 
            pledged under clause (i).
        The requirement of clause (ii) shall be treated as met with 
        respect to any such payment or loan made during the 1-year 
        period beginning on the date of the issuance (or any successor 
        1-year period) if such requirement is met when applied with 
        respect to the aggregate amount of such payments and loans made 
        during such period.
            ``(C) Aggregate limit on bond designations.--The maximum 
        aggregate face amount of bonds which may be designated under 
        this subsection by the Governor of a State shall not exceed--
                ``(i) $200,000,000 in the case of the State of 
            Louisiana,
                ``(ii) $100,000,000 in the case of the State of 
            Mississippi, and
                ``(iii) $50,000,000 in the case of the State of 
            Alabama.
            ``(D) Special rules relating to arbitrage.--A bond which is 
        part of an issue shall not be treated as a Gulf tax credit bond 
        unless, with respect to the issue of which the bond is a part, 
        the issuer satisfies the arbitrage requirements of section 148 
        with respect to proceeds of the issue and any loans made with 
        such proceeds.
        ``(5) Qualified bond.--For purposes of this subsection--
            ``(A) In general.--The term `qualified bond' means any 
        obligation of a State or political subdivision thereof which 
        was outstanding on August 28, 2005.
            ``(B) Exception for private activity bonds.--Such term 
        shall not include any private activity bond.
            ``(C) Exception for advance refundings.--Such term shall 
        not include any bond with respect to which there is any 
        outstanding refunded or refunding bond during the period in 
        which a Gulf tax credit bond is outstanding with respect to 
        such bond.
            ``(D) Use of proceeds requirement.--Such term shall not 
        include any bond issued as part of an issue if any portion of 
        the proceeds of such issue was (or is to be) used to provide 
        any property described in section 144(c)(6)(B).
        ``(6) Credit included in gross income.--Gross income includes 
    the amount of the credit allowed to the taxpayer under this 
    subsection (determined without regard to paragraph (3)) and the 
    amount so included shall be treated as interest income.
        ``(7) Other definitions and special rules.--For purposes of 
    this subsection--
            ``(A) Bond.--The term `bond' includes any obligation.
            ``(B)  Partnership; s corporation; and other pass-thru 
        entities.--
                ``(i) In general.--Under regulations prescribed by the 
            Secretary, in the case of a partnership, trust, S 
            corporation, or other pass-thru entity, rules similar to 
            the rules of section 41(g) shall apply with respect to the 
            credit allowable under paragraph (1).
                ``(ii) No basis adjustment.--In the case of a bond held 
            by a partnership or an S corporation, rules similar to the 
            rules under section 1397E(i) shall apply.
            ``(C) Bonds held by regulated investment companies.--If any 
        Gulf tax credit bond is held by a regulated investment company, 
        the credit determined under paragraph (1) shall be allowed to 
        shareholders of such company under procedures prescribed by the 
        Secretary.
            ``(D) Reporting.--Issuers of Gulf tax credit bonds shall 
        submit reports similar to the reports required under section 
        149(e).
            ``(E) Credit treated as nonrefundable bondholder credit.--
        For purposes of this title, the credit allowed by this 
        subsection shall be treated as a credit allowable under subpart 
        H of part IV of subchapter A of this chapter.
    ``(m) Application of New Markets Tax Credit to Investments in 
Community Development Entities Serving Gulf Opportunity Zone.--For 
purposes of section 45D--
        ``(1) a qualified community development entity shall be 
    eligible for an allocation under subsection (f)(2) thereof of the 
    increase in the new markets tax credit limitation described in 
    paragraph (2) only if a significant mission of such entity is the 
    recovery and redevelopment of the Gulf Opportunity Zone,
        ``(2) the new markets tax credit limitation otherwise 
    determined under subsection (f)(1) thereof shall be increased by an 
    amount equal to--
            ``(A) $300,000,000 for 2005 and 2006, to be allocated among 
        qualified community development entities to make qualified low-
        income community investments within the Gulf Opportunity Zone, 
        and
            ``(B) $400,000,000 for 2007, to be so allocated, and
        ``(3) subsection (f)(3) thereof shall be applied separately 
    with respect to the amount of the increase under paragraph (2).
    ``(n) Treatment of Representations Regarding Income Eligibility for 
Purposes of Qualified Residential Rental Project Requirements.--For 
purposes of determining if any residential rental project meets the 
requirements of section 142(d)(1) and if any certification with respect 
to such project meets the requirements under section 142(d)(7), the 
operator of the project may rely on the representations of any 
individual applying for tenancy in such project that such individual's 
income will not exceed the applicable income limits of section 
142(d)(1) upon commencement of the individual's tenancy if such tenancy 
begins during the 6-month period beginning on and after the date such 
individual was displaced by reason of Hurricane Katrina.
    ``(o) Treatment of Public Utility Property Disaster Losses.--
        ``(1) In general.--Upon the election of the taxpayer, in the 
    case of any eligible public utility property loss--
            ``(A) section 165(i) shall be applied by substituting `the 
        fifth taxable year immediately preceding' for `the taxable year 
        immediately preceding',
            ``(B) an application for a tentative carryback adjustment 
        of the tax for any prior taxable year affected by the 
        application of subparagraph (A) may be made under section 6411, 
        and
            ``(C) section 6611 shall not apply to any overpayment 
        attributable to such loss.
        ``(2) Eligible public utility property loss.--For purposes of 
    this subsection--
            ``(A) In general.--The term `eligible public utility 
        property loss' means any loss with respect to public utility 
        property located in the Gulf Opportunity Zone and attributable 
        to Hurricane Katrina.
            ``(B) Public utility property.--The term `public utility 
        property' has the meaning given such term by section 168(i)(10) 
        without regard to the matter following subparagraph (D) 
        thereof.
        ``(3) Waiver of limitations.--If refund or credit of any 
    overpayment of tax resulting from the application of paragraph (1) 
    is prevented at any time before the close of the 1-year period 
    beginning on the date of the enactment of this section by the 
    operation of any law or rule of law (including res judicata), such 
    refund or credit may nevertheless be made or allowed if claim 
    therefor is filed before the close of such period.
    ``(p) Tax Benefits Not Available With Respect to Certain 
Property.--
        ``(1) Qualified gulf opportunity zone property.--For purposes 
    of subsections (d), (e), and (k)(2)(B)(iv), the term `qualified 
    Gulf Opportunity Zone property' shall not include any property 
    described in paragraph (3).
        ``(2) Qualified gulf opportunity zone casualty losses.--For 
    purposes of subsection (k)(2)(B)(i), the term `qualified Gulf 
    Opportunity Zone casualty loss' shall not include any loss with 
    respect to any property described in paragraph (3).
        ``(3) Property described.--
            ``(A) In general.--For purposes of this subsection, 
        property is described in this paragraph if such property is--
                ``(i) any property used in connection with any private 
            or commercial golf course, country club, massage parlor, 
            hot tub facility, suntan facility, or any store the 
            principal business of which is the sale of alcoholic 
            beverages for consumption off premises, or
                ``(ii) any gambling or animal racing property.
            ``(B) Gambling or animal racing property.--For purposes of 
        subparagraph (A)(ii)--
                ``(i) In general.--The term `gambling or animal racing 
            property' means--

                    ``(I) any equipment, furniture, software, or other 
                property used directly in connection with gambling, the 
                racing of animals, or the on-site viewing of such 
                racing, and
                    ``(II) the portion of any real property (determined 
                by square footage) which is dedicated to gambling, the 
                racing of animals, or the on-site viewing of such 
                racing.

                ``(ii) De minimis portion.--Clause (i)(II) shall not 
            apply to any real property if the portion so dedicated is 
            less than 100 square feet.''.
    (b) Conforming Amendments.--
        (1) Paragraph (2) of section 54(c) is amended by inserting ``, 
    section 1400N(l),'' after ``subpart C''.
        (2) Subparagraph (A) of section 6049(d)(8) is amended--
            (A) by inserting ``or 1400N(l)(6)'' after ``section 
        54(g)'', and
            (B) by inserting ``or 1400N(l)(2)(D), as the case may be'' 
        after ``section 54(b)(4)''.
        (3) So much of subchapter Y of chapter 1 as precedes section 
    1400L is amended to read as follows:

              ``Subchapter Y--Short-Term Regional Benefits

            ``Part I--Tax Benefits for New York Liberty Zone

                  ``Part II--Tax Benefits for GO Zones

            ``PART I--TAX BENEFITS FOR NEW YORK LIBERTY ZONE

    ``Sec. 1400L. Tax benefits for New York Liberty Zone.''.
        (4) The item relating to subchapter Y in the table of 
    subchapters for chapter 1 is amended to read as follows:


              ``Subchapter Y--Short-Term Regional Benefits''.

    (c) Effective Date.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall apply to taxable years ending 
    on or after August 28, 2005.
        (2) Carrybacks.--Subsections (i)(2), (j), and (k) of section 
    1400N of the Internal Revenue Code of 1986 (as added by this 
    section) shall apply to losses arising in such taxable years.

SEC. 102. EXPANSION OF HOPE SCHOLARSHIP AND LIFETIME LEARNING CREDIT 
              FOR STUDENTS IN THE GULF OPPORTUNITY ZONE.

    (a) In General.--Part II of subchapter Y of chapter 1 (as added by 
this Act) is amended by adding at the end the following new section:

``SEC. 1400O. EDUCATION TAX BENEFITS.

    ``In the case of an individual who attends an eligible educational 
institution (as defined in section 25A(f)(2)) located in the Gulf 
Opportunity Zone for any taxable year beginning during 2005 or 2006--
        ``(1) in applying section 25A, the term `qualified tuition and 
    related expenses' shall include any costs which are qualified 
    higher education expenses (as defined in section 529(e)(3)),
        ``(2) each of the dollar amounts in effect under of 
    subparagraphs (A) and (B) of section 25A(b)(1) shall be twice the 
    amount otherwise in effect before the application of this 
    subsection, and
        ``(3) section 25A(c)(1) shall be applied by substituting `40 
    percent' for `20 percent'.''.
    (b) Conforming Amendment.--The table of sections for part II of 
subchapter Y of chapter 1 is amended by adding at the end the following 
new item:
    ``Sec. 1400O. Education tax benefits.''.

SEC. 103. HOUSING RELIEF FOR INDIVIDUALS AFFECTED BY HURRICANE KATRINA.

    (a) In General.--Part II of subchapter Y of chapter 1 (as added by 
this Act) is amended by adding at the end the following new section:

``SEC. 1400P. HOUSING TAX BENEFITS .

    ``(a) Exclusion of Employer Provided Housing for Individual 
Affected by Hurricane Katrina.--
        ``(1) In general.--Gross income of a qualified employee shall 
    not include the value of any lodging furnished in-kind to such 
    employee (and such employee's spouse or any of such employee's 
    dependents) by or on behalf of a qualified employer for any month 
    during the taxable year.
        ``(2) Limitation.--The amount which may be excluded under 
    paragraph (1) for any month for which lodging is furnished during 
    the taxable year shall not exceed $600.
        ``(3) Treatment of exclusion.--The exclusion under paragraph 
    (1) shall be treated as an exclusion under section 119 (other than 
    for purposes of sections 3121(a)(19) and 3306(b)(14)).
    ``(b) Employer Credit for Housing Employees Affected by Hurricane 
Katrina.--For purposes of section 38, in the case of a qualified 
employer, the Hurricane Katrina housing credit for any month during the 
taxable year is an amount equal to 30 percent of any amount which is 
excludable from the gross income of a qualified employee of such 
employer under subsection (a) and not otherwise excludable under 
section 119.
    ``(c) Qualified Employee.--For purposes of this section, the term 
`qualified employee' means, with respect to any month, an individual--
        ``(1) who had a principal residence (as defined in section 121) 
    in the Gulf Opportunity Zone on August 28, 2005, and
        ``(2) who performs substantially all employment services--
            ``(A) in the Gulf Opportunity Zone, and
            ``(B) for the qualified employer which furnishes lodging to 
        such individual.
    ``(d) Qualified Employer.--For purposes of this section, the term 
`qualified employer' means any employer with a trade or business 
located in the Gulf Opportunity Zone.
    ``(e) Certain Rules to Apply.--For purposes of this subsection, 
rules similar to the rules of sections 51(i)(1) and 52 shall apply.
    ``(f) Application of Section.--This section shall apply to lodging 
furnished during the period--
        ``(1) beginning on the first day of the first month beginning 
    after the date of the enactment of this section, and
        ``(2) ending on the date which is 6 months after the first day 
    described in paragraph (1).''.
    (b) Conforming Amendments.--
        (1) Subsection (b) of section 38 is amended by striking ``and'' 
    at the end of paragraph (25), by striking the period at the end of 
    paragraph (26) and inserting ``, and'', and by adding at the end 
    the following new paragraph:
        ``(27) the Hurricane Katrina housing credit determined under 
    section 1400P(b).''.
        (2) Section 280C(a) is amended by striking ``and 1396(a)'' and 
    inserting ``1396(a), and 1400P(b)''.
        (3) The table of sections for part II of subchapter Y of 
    chapter 1 is amended by adding at the end the following new item:
    ``Sec. 1400P. Housing tax benefits.''.

SEC. 104. EXTENSION OF SPECIAL RULES FOR MORTGAGE REVENUE BONDS.

    Section 404(d) of the Katrina Emergency Tax Relief Act of 2005 is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2010''.

SEC. 105. SPECIAL EXTENSION OF BONUS DEPRECIATION PLACED IN SERVICE 
              DATE FOR TAXPAYERS AFFECTED BY HURRICANES KATRINA, RITA, 
              AND WILMA.

    In applying the rule under section 168(k)(2)(A)(iv) of the Internal 
Revenue Code of 1986 to any property described in subparagraph (B) or 
(C) of section 168(k)(2) of such Code--
        (1) the placement in service of which--
            (A) is to be located in the GO Zone (as defined in section 
        1400M(1) of such Code), the Rita GO Zone (as defined in section 
        1400M(3) of such Code), or the Wilma GO Zone (as defined in 
        section 1400M(5) of such Code), and
            (B) is to be made by any taxpayer affected by Hurricane 
        Katrina, Rita, or Wilma, or
        (2) which is manufactured in such Zone by any person affected 
    by Hurricane Katrina, Rita, or Wilma,
the Secretary of the Treasury may, on a taxpayer by taxpayer basis, 
extend the required date of the placement in service of such property 
under such section by such period of time as is determined necessary by 
the Secretary but not to exceed 1 year. For purposes of the preceding 
sentence, the determination shall be made by only taking into account 
the effect of one or more hurricanes on the date of such placement by 
the taxpayer.

      TITLE II--TAX BENEFITS RELATED TO HURRICANES RITA AND WILMA

SEC. 201. EXTENSION OF CERTAIN EMERGENCY TAX RELIEF FOR HURRICANE 
              KATRINA TO HURRICANES RITA AND WILMA.

    (a) In General.--Part II of subchapter Y of chapter 1 (as added by 
this Act) is amended by adding at the end the following new sections:

``SEC. 1400Q. SPECIAL RULES FOR USE OF RETIREMENT FUNDS.

    ``(a) Tax-Favored Withdrawals From Retirement Plans.--
        ``(1) In general.--Section 72(t) shall not apply to any 
    qualified hurricane distribution.
        ``(2) Aggregate dollar limitation.--
            ``(A) In general.--For purposes of this subsection, the 
        aggregate amount of distributions received by an individual 
        which may be treated as qualified hurricane distributions for 
        any taxable year shall not exceed the excess (if any) of--
                ``(i) $100,000, over
                ``(ii) the aggregate amounts treated as qualified 
            hurricane distributions received by such individual for all 
            prior taxable years.
            ``(B) Treatment of plan distributions.--If a distribution 
        to an individual would (without regard to subparagraph (A)) be 
        a qualified hurricane distribution, a plan shall not be treated 
        as violating any requirement of this title merely because the 
        plan treats such distribution as a qualified hurricane 
        distribution, unless the aggregate amount of such distributions 
        from all plans maintained by the employer (and any member of 
        any controlled group which includes the employer) to such 
        individual exceeds $100,000.
            ``(C) Controlled group.--For purposes of subparagraph (B), 
        the term `controlled group' means any group treated as a single 
        employer under subsection (b), (c), (m), or (o) of section 414.
        ``(3) Amount distributed may be repaid.--
            ``(A) In general.--Any individual who receives a qualified 
        hurricane distribution may, at any time during the 3-year 
        period beginning on the day after the date on which such 
        distribution was received, make one or more contributions in an 
        aggregate amount not to exceed the amount of such distribution 
        to an eligible retirement plan of which such individual is a 
        beneficiary and to which a rollover contribution of such 
        distribution could be made under section 402(c), 403(a)(4), 
        403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.
            ``(B) Treatment of repayments of distributions from 
        eligible retirement plans other than iras.--For purposes of 
        this title, if a contribution is made pursuant to subparagraph 
        (A) with respect to a qualified hurricane distribution from an 
        eligible retirement plan other than an individual retirement 
        plan, then the taxpayer shall, to the extent of the amount of 
        the contribution, be treated as having received the qualified 
        hurricane distribution in an eligible rollover distribution (as 
        defined in section 402(c)(4)) and as having transferred the 
        amount to the eligible retirement plan in a direct trustee to 
        trustee transfer within 60 days of the distribution.
            ``(C) Treatment of repayments for distributions from 
        iras.--For purposes of this title, if a contribution is made 
        pursuant to subparagraph (A) with respect to a qualified 
        hurricane distribution from an individual retirement plan (as 
        defined by section 7701(a)(37)), then, to the extent of the 
        amount of the contribution, the qualified hurricane 
        distribution shall be treated as a distribution described in 
        section 408(d)(3) and as having been transferred to the 
        eligible retirement plan in a direct trustee to trustee 
        transfer within 60 days of the distribution.
        ``(4) Definitions.--For purposes of this subsection--
            ``(A) Qualified hurricane distribution.--Except as provided 
        in paragraph (2), the term `qualified hurricane distribution' 
        means--
                ``(i) any distribution from an eligible retirement plan 
            made on or after August 25, 2005, and before January 1, 
            2007, to an individual whose principal place of abode on 
            August 28, 2005, is located in the Hurricane Katrina 
            disaster area and who has sustained an economic loss by 
            reason of Hurricane Katrina,
                ``(ii) any distribution (which is not described in 
            clause (i)) from an eligible retirement plan made on or 
            after September 23, 2005, and before January 1, 2007, to an 
            individual whose principal place of abode on September 23, 
            2005, is located in the Hurricane Rita disaster area and 
            who has sustained an economic loss by reason of Hurricane 
            Rita, and
                ``(iii) any distribution (which is not described in 
            clause (i) or (ii)) from an eligible retirement plan made 
            on or after October 23, 2005, and before January 1, 2007, 
            to an individual whose principal place of abode on October 
            23, 2005, is located in the Hurricane Wilma disaster area 
            and who has sustained an economic loss by reason of 
            Hurricane Wilma.
            ``(B) Eligible retirement plan.--The term `eligible 
        retirement plan' shall have the meaning given such term by 
        section 402(c)(8)(B).
        ``(5) Income inclusion spread over 3-year period.--
            ``(A) In general.--In the case of any qualified hurricane 
        distribution, unless the taxpayer elects not to have this 
        paragraph apply for any taxable year, any amount required to be 
        included in gross income for such taxable year shall be so 
        included ratably over the 3-taxable year period beginning with 
        such taxable year.
            ``(B) Special rule.--For purposes of subparagraph (A), 
        rules similar to the rules of subparagraph (E) of section 
        408A(d)(3) shall apply.
        ``(6) Special rules.--
            ``(A) Exemption of distributions from trustee to trustee 
        transfer and withholding rules.--For purposes of sections 
        401(a)(31), 402(f), and 3405, qualified hurricane distributions 
        shall not be treated as eligible rollover distributions.
            ``(B) Qualified hurricane distributions treated as meeting 
        plan distribution requirements.--For purposes this title, a 
        qualified hurricane distribution shall be treated as meeting 
        the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 
        403(b)(11), and 457(d)(1)(A).
    ``(b) Recontributions of Withdrawals for Home Purchases.--
        ``(1) Recontributions.--
            ``(A) In general.--Any individual who received a qualified 
        distribution may, during the applicable period, make one or 
        more contributions in an aggregate amount not to exceed the 
        amount of such qualified distribution to an eligible retirement 
        plan (as defined in section 402(c)(8)(B)) of which such 
        individual is a beneficiary and to which a rollover 
        contribution of such distribution could be made under section 
        402(c), 403(a)(4), 403(b)(8), or 408(d)(3), as the case may be.
            ``(B) Treatment of repayments.--Rules similar to the rules 
        of subparagraphs (B) and (C) of subsection (a)(3) shall apply 
        for purposes of this subsection.
        ``(2) Qualified distribution.--For purposes of this 
    subsection--
            ``(A) In general.--The term `qualified distribution' means 
        any qualified Katrina distribution, any qualified Rita 
        distribution, and any qualified Wilma distribution.
            ``(B) Qualified katrina distribution.--The term `qualified 
        Katrina distribution' means any distribution--
                ``(i) described in section 401(k)(2)(B)(i)(IV), 
            403(b)(7)(A)(ii) (but only to the extent such distribution 
            relates to financial hardship), 403(b)(11)(B), or 
            72(t)(2)(F),
                ``(ii) received after February 28, 2005, and before 
            August 29, 2005, and
                ``(iii) which was to be used to purchase or construct a 
            principal residence in the Hurricane Katrina disaster area, 
            but which was not so purchased or constructed on account of 
            Hurricane Katrina.
            ``(C) Qualified rita distribution.--The term `qualified 
        Rita distribution' means any distribution (other than a 
        qualified Katrina distribution)--
                ``(i) described in section 401(k)(2)(B)(i)(IV), 
            403(b)(7)(A)(ii) (but only to the extent such distribution 
            relates to financial hardship), 403(b)(11)(B), or 
            72(t)(2)(F),
                ``(ii) received after February 28, 2005, and before 
            September 24, 2005, and
                ``(iii) which was to be used to purchase or construct a 
            principal residence in the Hurricane Rita disaster area, 
            but which was not so purchased or constructed on account of 
            Hurricane Rita.
            ``(D) Qualified wilma distribution.--The term `qualified 
        Wilma distribution' means any distribution (other than a 
        qualified Katrina distribution or a qualified Rita 
        distribution)--
                ``(i) described in section 401(k)(2)(B)(i)(IV), 
            403(b)(7)(A)(ii) (but only to the extent such distribution 
            relates to financial hardship), 403(b)(11)(B), or 
            72(t)(2)(F),
                ``(ii) received after February 28, 2005, and before 
            October 24, 2005, and
                ``(iii) which was to be used to purchase or construct a 
            principal residence in the Hurricane Wilma disaster area, 
            but which was not so purchased or constructed on account of 
            Hurricane Wilma.
        ``(3) Applicable period.--For purposes of this subsection, the 
    term `applicable period' means--
            ``(A) with respect to any qualified Katrina distribution, 
        the period beginning on August 25, 2005, and ending on February 
        28, 2006,
            ``(B) with respect to any qualified Rita distribution, the 
        period beginning on September 23, 2005, and ending on February 
        28, 2006, and
            ``(C) with respect to any qualified Wilma distribution, the 
        period beginning on October 23, 2005, and ending on February 
        28, 2006.
    ``(c) Loans From Qualified Plans.--
        ``(1) Increase in limit on loans not treated as 
    distributions.--In the case of any loan from a qualified employer 
    plan (as defined under section 72(p)(4)) to a qualified individual 
    made during the applicable period--
            ``(A) clause (i) of section 72(p)(2)(A) shall be applied by 
        substituting `$100,000' for `$50,000', and
            ``(B) clause (ii) of such section shall be applied by 
        substituting `the present value of the nonforfeitable accrued 
        benefit of the employee under the plan' for `one-half of the 
        present value of the nonforfeitable accrued benefit of the 
        employee under the plan'.
        ``(2) Delay of repayment.--In the case of a qualified 
    individual with an outstanding loan on or after the qualified 
    beginning date from a qualified employer plan (as defined in 
    section 72(p)(4))--
            ``(A) if the due date pursuant to subparagraph (B) or (C) 
        of section 72(p)(2) for any repayment with respect to such loan 
        occurs during the period beginning on the qualified beginning 
        date and ending on December 31, 2006, such due date shall be 
        delayed for 1 year,
            ``(B) any subsequent repayments with respect to any such 
        loan shall be appropriately adjusted to reflect the delay in 
        the due date under paragraph (1) and any interest accruing 
        during such delay, and
            ``(C) in determining the 5-year period and the term of a 
        loan under subparagraph (B) or (C) of section 72(p)(2), the 
        period described in subparagraph (A) shall be disregarded.
        ``(3) Qualified individual.--For purposes of this subsection--
            ``(A) In general.--The term `qualified individual' means 
        any qualified Hurricane Katrina individual, any qualified 
        Hurricane Rita individual, and any qualified Hurricane Wilma 
        individual.
            ``(B) Qualified hurricane katrina individual.--The term 
        `qualified Hurricane Katrina individual' means an individual 
        whose principal place of abode on August 28, 2005, is located 
        in the Hurricane Katrina disaster area and who has sustained an 
        economic loss by reason of Hurricane Katrina.
            ``(C) Qualified hurricane rita individual.--The term 
        `qualified Hurricane Rita individual' means an individual 
        (other than a qualified Hurricane Katrina individual) whose 
        principal place of abode on September 23, 2005, is located in 
        the Hurricane Rita disaster area and who has sustained an 
        economic loss by reason of Hurricane Rita.
            ``(D) Qualified hurricane wilma individual.--The term 
        `qualified Hurricane Wilma individual' means an individual 
        (other than a qualified Hurricane Katrina individual or a 
        qualified Hurricane Rita individual) whose principal place of 
        abode on October 23, 2005, is located in the Hurricane Wilma 
        disaster area and who has sustained an economic loss by reason 
        of Hurricane Wilma.
        ``(4) Applicable period; qualified beginning date.--For 
    purposes of this subsection--
            ``(A) Hurricane katrina.--In the case of any qualified 
        Hurricane Katrina individual--
                ``(i) the applicable period is the period beginning on 
            September 24, 2005, and ending on December 31, 2006, and
                ``(ii) the qualified beginning date is August 25, 2005.
            ``(B) Hurricane rita.--In the case of any qualified 
        Hurricane Rita individual--
                ``(i) the applicable period is the period beginning on 
            the date of the enactment of this subsection and ending on 
            December 31, 2006, and
                ``(ii) the qualified beginning date is September 23, 
            2005.
            ``(C) Hurricane wilma.--In the case of any qualified 
        Hurricane Wilma individual--
                ``(i) the applicable period is the period beginning on 
            the date of the enactment of this subparagraph and ending 
            on December 31, 2006, and
                ``(ii) the qualified beginning date is October 23, 
            2005.
    ``(d) Provisions Relating to Plan Amendments.--
        ``(1) In general.--If this subsection applies to any amendment 
    to any plan or annuity contract, such plan or contract shall be 
    treated as being operated in accordance with the terms of the plan 
    during the period described in paragraph (2)(B)(i).
        ``(2) Amendments to which subsection applies.--
            ``(A) In general.--This subsection shall apply to any 
        amendment to any plan or annuity contract which is made--
                ``(i) pursuant to any provision of this section, or 
            pursuant to any regulation issued by the Secretary or the 
            Secretary of Labor under any provision of this section, and
                ``(ii) on or before the last day of the first plan year 
            beginning on or after January 1, 2007, or such later date 
            as the Secretary may prescribe.
        In the case of a governmental plan (as defined in section 
        414(d)), clause (ii) shall be applied by substituting the date 
        which is 2 years after the date otherwise applied under clause 
        (ii).
            ``(B) Conditions.--This subsection shall not apply to any 
        amendment unless--
                ``(i) during the period--

                    ``(I) beginning on the date that this section or 
                the regulation described in subparagraph (A)(i) takes 
                effect (or in the case of a plan or contract amendment 
                not required by this section or such regulation, the 
                effective date specified by the plan), and
                    ``(II) ending on the date described in subparagraph 
                (A)(ii) (or, if earlier, the date the plan or contract 
                amendment is adopted),

            the plan or contract is operated as if such plan or 
            contract amendment were in effect; and
                ``(ii) such plan or contract amendment applies 
            retroactively for such period.

``SEC. 1400R. EMPLOYMENT RELIEF.

    ``(a) Employee Retention Credit for Employers Affected by Hurricane 
Katrina.--
        ``(1) In general.--For purposes of section 38, in the case of 
    an eligible employer, the Hurricane Katrina employee retention 
    credit for any taxable year is an amount equal to 40 percent of the 
    qualified wages with respect to each eligible employee of such 
    employer for such taxable year. For purposes of the preceding 
    sentence, the amount of qualified wages which may be taken into 
    account with respect to any individual shall not exceed $6,000.
        ``(2) Definitions.--For purposes of this subsection--
            ``(A) Eligible employer.--The term `eligible employer' 
        means any employer--
                ``(i) which conducted an active trade or business on 
            August 28, 2005, in the GO Zone, and
                ``(ii) with respect to whom the trade or business 
            described in clause (i) is inoperable on any day after 
            August 28, 2005, and before January 1, 2006, as a result of 
            damage sustained by reason of Hurricane Katrina.
            ``(B) Eligible employee.--The term `eligible employee' 
        means with respect to an eligible employer an employee whose 
        principal place of employment on August 28, 2005, with such 
        eligible employer was in the GO Zone.
            ``(C) Qualified wages.--The term `qualified wages' means 
        wages (as defined in section 51(c)(1), but without regard to 
        section 3306(b)(2)(B)) paid or incurred by an eligible employer 
        with respect to an eligible employee on any day after August 
        28, 2005, and before January 1, 2006, which occurs during the 
        period--
                ``(i) beginning on the date on which the trade or 
            business described in subparagraph (A) first became 
            inoperable at the principal place of employment of the 
            employee immediately before Hurricane Katrina, and
                ``(ii) ending on the date on which such trade or 
            business has resumed significant operations at such 
            principal place of employment.
        Such term shall include wages paid without regard to whether 
        the employee performs no services, performs services at a 
        different place of employment than such principal place of 
        employment, or performs services at such principal place of 
        employment before significant operations have resumed.
        ``(3) Certain rules to apply.--For purposes of this subsection, 
    rules similar to the rules of sections 51(i)(1) and 52 shall apply.
        ``(4) Employee not taken into account more than once.--An 
    employee shall not be treated as an eligible employee for purposes 
    of this subsection for any period with respect to any employer if 
    such employer is allowed a credit under section 51 with respect to 
    such employee for such period.
    ``(b) Employee Retention Credit for Employers Affected by Hurricane 
Rita.--
        ``(1) In general.--For purposes of section 38, in the case of 
    an eligible employer, the Hurricane Rita employee retention credit 
    for any taxable year is an amount equal to 40 percent of the 
    qualified wages with respect to each eligible employee of such 
    employer for such taxable year. For purposes of the preceding 
    sentence, the amount of qualified wages which may be taken into 
    account with respect to any individual shall not exceed $6,000.
        ``(2) Definitions.--For purposes of this subsection--
            ``(A) Eligible employer.--The term `eligible employer' 
        means any employer--
                ``(i) which conducted an active trade or business on 
            September 23, 2005, in the Rita GO Zone, and
                ``(ii) with respect to whom the trade or business 
            described in clause (i) is inoperable on any day after 
            September 23, 2005, and before January 1, 2006, as a result 
            of damage sustained by reason of Hurricane Rita.
            ``(B) Eligible employee.--The term `eligible employee' 
        means with respect to an eligible employer an employee whose 
        principal place of employment on September 23, 2005, with such 
        eligible employer was in the Rita GO Zone.
            ``(C) Qualified wages.--The term `qualified wages' means 
        wages (as defined in section 51(c)(1), but without regard to 
        section 3306(b)(2)(B)) paid or incurred by an eligible employer 
        with respect to an eligible employee on any day after September 
        23, 2005, and before January 1, 2006, which occurs during the 
        period--
                ``(i) beginning on the date on which the trade or 
            business described in subparagraph (A) first became 
            inoperable at the principal place of employment of the 
            employee immediately before Hurricane Rita, and
                ``(ii) ending on the date on which such trade or 
            business has resumed significant operations at such 
            principal place of employment.
        Such term shall include wages paid without regard to whether 
        the employee performs no services, performs services at a 
        different place of employment than such principal place of 
        employment, or performs services at such principal place of 
        employment before significant operations have resumed.
        ``(3) Certain rules to apply.--For purposes of this subsection, 
    rules similar to the rules of sections 51(i)(1) and 52 shall apply.
        ``(4) Employee not taken into account more than once.--An 
    employee shall not be treated as an eligible employee for purposes 
    of this subsection for any period with respect to any employer if 
    such employer is allowed a credit under subsection (a) or section 
    51 with respect to such employee for such period.
    ``(c) Employee Retention Credit for Employers Affected by Hurricane 
Wilma.--
        ``(1) In general.--For purposes of section 38, in the case of 
    an eligible employer, the Hurricane Wilma employee retention credit 
    for any taxable year is an amount equal to 40 percent of the 
    qualified wages with respect to each eligible employee of such 
    employer for such taxable year. For purposes of the preceding 
    sentence, the amount of qualified wages which may be taken into 
    account with respect to any individual shall not exceed $6,000.
        ``(2) Definitions.--For purposes of this subsection--
            ``(A) Eligible employer.--The term `eligible employer' 
        means any employer--
                ``(i) which conducted an active trade or business on 
            October 23, 2005, in the Wilma GO Zone, and
                ``(ii) with respect to whom the trade or business 
            described in clause (i) is inoperable on any day after 
            October 23, 2005, and before January 1, 2006, as a result 
            of damage sustained by reason of Hurricane Wilma.
            ``(B) Eligible employee.--The term `eligible employee' 
        means with respect to an eligible employer an employee whose 
        principal place of employment on October 23, 2005, with such 
        eligible employer was in the Wilma GO Zone.
            ``(C) Qualified wages.--The term `qualified wages' means 
        wages (as defined in section 51(c)(1), but without regard to 
        section 3306(b)(2)(B)) paid or incurred by an eligible employer 
        with respect to an eligible employee on any day after October 
        23, 2005, and before January 1, 2006, which occurs during the 
        period--
                ``(i) beginning on the date on which the trade or 
            business described in subparagraph (A) first became 
            inoperable at the principal place of employment of the 
            employee immediately before Hurricane Wilma, and
                ``(ii) ending on the date on which such trade or 
            business has resumed significant operations at such 
            principal place of employment.
        Such term shall include wages paid without regard to whether 
        the employee performs no services, performs services at a 
        different place of employment than such principal place of 
        employment, or performs services at such principal place of 
        employment before significant operations have resumed.
        ``(3) Certain rules to apply.--For purposes of this subsection, 
    rules similar to the rules of sections 51(i)(1) and 52 shall apply.
        ``(4) Employee not taken into account more than once.--An 
    employee shall not be treated as an eligible employee for purposes 
    of this subsection for any period with respect to any employer if 
    such employer is allowed a credit under subsection (a) or (b) or 
    section 51 with respect to such employee for such period.

``SEC. 1400S. ADDITIONAL TAX RELIEF PROVISIONS.

    ``(a) Temporary Suspension of Limitations on Charitable 
Contributions.--
        ``(1) In general.--Except as otherwise provided in paragraph 
    (2), section 170(b) shall not apply to qualified contributions and 
    such contributions shall not be taken into account for purposes of 
    applying subsections (b) and (d) of section 170 to other 
    contributions.
        ``(2) Treatment of excess contributions.--For purposes of 
    section 170--
            ``(A) Individuals.--In the case of an individual--
                ``(i) Limitation.--Any qualified contribution shall be 
            allowed only to the extent that the aggregate of such 
            contributions does not exceed the excess of the taxpayer's 
            contribution base (as defined in subparagraph (F) of 
            section 170(b)(1)) over the amount of all other charitable 
            contributions allowed under section 170(b)(1).
                ``(ii) Carryover.--If the aggregate amount of qualified 
            contributions made in the contribution year (within the 
            meaning of section 170(d)(1)) exceeds the limitation of 
            clause (i), such excess shall be added to the excess 
            described in the portion of subparagraph (A) of such 
            section which precedes clause (i) thereof for purposes of 
            applying such section.
            ``(B) Corporations.--In the case of a corporation--
                ``(i) Limitation.--Any qualified contribution shall be 
            allowed only to the extent that the aggregate of such 
            contributions does not exceed the excess of the taxpayer's 
            taxable income (as determined under paragraph (2) of 
            section 170(b)) over the amount of all other charitable 
            contributions allowed under such paragraph.
                ``(ii) Carryover.--Rules similar to the rules of 
            subparagraph (A)(ii) shall apply for purposes of this 
            subparagraph.
        ``(3) Exception to overall limitation on itemized deductions.--
    So much of any deduction allowed under section 170 as does not 
    exceed the qualified contributions paid during the taxable year 
    shall not be treated as an itemized deduction for purposes of 
    section 68.
        ``(4) Qualified contributions.--
            ``(A) In general.--For purposes of this subsection, the 
        term `qualified contribution' means any charitable contribution 
        (as defined in section 170(c)) if--
                ``(i) such contribution is paid during the period 
            beginning on August 28, 2005, and ending on December 31, 
            2005, in cash to an organization described in section 
            170(b)(1)(A) (other than an organization described in 
            section 509(a)(3)),
                ``(ii) in the case of a contribution paid by a 
            corporation, such contribution is for relief efforts 
            related to Hurricane Katrina, Hurricane Rita, or Hurricane 
            Wilma, and
                ``(iii) the taxpayer has elected the application of 
            this subsection with respect to such contribution.
            ``(B) Exception.--Such term shall not include a 
        contribution if the contribution is for establishment of a new, 
        or maintenance in an existing, segregated fund or account with 
        respect to which the donor (or any person appointed or 
        designated by such donor) has, or reasonably expects to have, 
        advisory privileges with respect to distributions or 
        investments by reason of the donor's status as a donor.
            ``(C) Application of election to partnerships and s 
        corporations.--In the case of a partnership or S corporation, 
        the election under subparagraph (A)(iii) shall be made 
        separately by each partner or shareholder.
    ``(b) Suspension of Certain Limitations on Personal Casualty 
Losses.--Paragraphs (1) and (2)(A) of section 165(h) shall not apply to 
losses described in section 165(c)(3)--
        ``(1) which arise in the Hurricane Katrina disaster area on or 
    after August 25, 2005, and which are attributable to Hurricane 
    Katrina,
        ``(2) which arise in the Hurricane Rita disaster area on or 
    after September 23, 2005, and which are attributable to Hurricane 
    Rita, or
        ``(3) which arise in the Hurricane Wilma disaster area on or 
    after October 23, 2005, and which are attributable to Hurricane 
    Wilma.
In the case of any other losses, section 165(h)(2)(A) shall be applied 
without regard to the losses referred to in the preceding sentence.
    ``(c) Required Exercise of Authority Under Section 7508A.--In the 
case of any taxpayer determined by the Secretary to be affected by the 
Presidentially declared disaster relating to Hurricane Katrina, 
Hurricane Rita, or Hurricane Wilma, any relief provided by the 
Secretary under section 7508A shall be for a period ending not earlier 
than February 28, 2006.
    ``(d) Special Rule for Determining Earned Income.--
        ``(1) In general.--In the case of a qualified individual, if 
    the earned income of the taxpayer for the taxable year which 
    includes the applicable date is less than the earned income of the 
    taxpayer for the preceding taxable year, the credits allowed under 
    sections 24(d) and 32 may, at the election of the taxpayer, be 
    determined by substituting--
            ``(A) such earned income for the preceding taxable year, 
        for
            ``(B) such earned income for the taxable year which 
        includes the applicable date.
        ``(2) Qualified individual.--For purposes of this subsection--
            ``(A) In general.--The term `qualified individual' means 
        any qualified Hurricane Katrina individual, any qualified 
        Hurricane Rita individual, and any qualified Hurricane Wilma 
        individual.
            ``(B) Qualified hurricane katrina individual.--The term 
        `qualified Hurricane Katrina individual' means any individual 
        whose principal place of abode on August 25, 2005, was 
        located--
                ``(i) in the GO Zone, or
                ``(ii) in the Hurricane Katrina disaster area (but 
            outside the GO Zone) and such individual was displaced from 
            such principal place of abode by reason of Hurricane 
            Katrina.
            ``(C) Qualified hurricane rita individual.--The term 
        `qualified Hurricane Rita individual' means any individual 
        (other than a qualified Hurricane Katrina individual) whose 
        principal place of abode on September 23, 2005, was located--
                ``(i) in the Rita GO Zone, or
                ``(ii) in the Hurricane Rita disaster area (but outside 
            the Rita GO Zone) and such individual was displaced from 
            such principal place of abode by reason of Hurricane Rita.
            ``(D) Qualified hurricane wilma individual.--The term 
        `qualified Hurricane Wilma individual' means any individual 
        whose principal place of abode on October 23, 2005, was 
        located--
                ``(i) in the Wilma GO Zone, or
                ``(ii) in the Hurricane Wilma disaster area (but 
            outside the Wilma GO Zone) and such individual was 
            displaced from such principal place of abode by reason of 
            Hurricane Wilma.
        ``(3) Applicable date.--For purposes of this subsection, the 
    term `applicable date' means--
            ``(A) in the case of a qualified Hurricane Katrina 
        individual, August 25, 2005,
            ``(B) in the case of a qualified Hurricane Rita individual, 
        September 23, 2005, and
            ``(C) in the case of a qualified Hurricane Wilma 
        individual, October 23, 2005.
        ``(4) Earned income.--For purposes of this subsection, the term 
    `earned income' has the meaning given such term under section 
    32(c).
        ``(5) Special rules.--
            ``(A) Application to joint returns.--For purposes of 
        paragraph (1), in the case of a joint return for a taxable year 
        which includes the applicable date--
                ``(i) such paragraph shall apply if either spouse is a 
            qualified individual, and
                ``(ii) 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.
            ``(B) Uniform application of election.--Any election made 
        under paragraph (1) shall apply with respect to both sections 
        24(d) and section 32.
            ``(C) Errors treated as mathematical error.--For purposes 
        of section 6213, an incorrect use on a return of earned income 
        pursuant to paragraph (1) shall be treated as a mathematical or 
        clerical error.
            ``(D) No effect on determination of gross income, etc.--
        Except as otherwise provided in this subsection, this title 
        shall be applied without regard to any substitution under 
        paragraph (1).
    ``(e) Secretarial Authority To Make Adjustments Regarding Taxpayer 
and Dependency Status.--With respect to taxable years beginning in 2005 
or 2006, the Secretary may make such adjustments in the application of 
the internal revenue laws as may be necessary to ensure that taxpayers 
do not lose any deduction or credit or experience a change of filing 
status by reason of temporary relocations by reason of Hurricane 
Katrina, Hurricane Rita, or Hurricane Wilma. Any adjustments made under 
the preceding sentence shall ensure that an individual is not taken 
into account by more than one taxpayer with respect to the same tax 
benefit.

``SEC. 1400T. SPECIAL RULES FOR MORTGAGE REVENUE BONDS.

    ``(a) In General.--In the case of financing provided with respect 
to owner-occupied residences in the GO Zone, the Rita GO Zone, or the 
Wilma GO Zone, section 143 shall be applied--
        ``(1) by treating any such residence in the Rita GO Zone or the 
    Wilma GO Zone as a targeted area residence,
        ``(2) by applying subsection (f)(3) thereof without regard to 
    subparagraph (A) thereof, and
        ``(3) by substituting `$150,000' for `$15,000' in subsection 
    (k)(4) thereof.
    ``(b) Application.--Subsection (a) shall not apply to financing 
provided after December 31, 2010.''.
    (b) Conforming Amendments.--
        (1) Subsection (b) of section 38, as amended by this Act, is 
    amended by striking ``and'' at the end of paragraph (26), by 
    striking the period at the end of paragraph (27) and inserting a 
    comma, and by adding at the end the following new paragraphs:
        ``(28) the Hurricane Katrina employee retention credit 
    determined under section 1400R(a),
        ``(29) the Hurricane Rita employee retention credit determined 
    under section 1400R(b), and
        ``(30) the Hurricane Wilma employee retention credit determined 
    under section 1400R(c).''.
        (2) Section 280C(a), as amended by this Act, is amended by 
    striking ``and 1400P(b)'' and inserting ``1400P(b), and 1400R''.
        (3) The table of sections for part II of subchapter Y of 
    chapter 1 is amended by adding at the end the following new items:
    ``Sec. 1400Q. Special rules for use of retirement funds.
    ``Sec. 1400R. Employment relief.
    ``Sec. 1400S. Additional tax relief provisions.''.
        (4) The following provisions of the Katrina Emergency Tax 
    Relief Act of 2005 are hereby repealed:
            (A) Title I.
            (B) Sections 202, 301, 402, 403(b), 406, and 407.

                      TITLE III--OTHER PROVISIONS

SEC. 301. GULF COAST RECOVERY BONDS.

    It is the sense of the Congress that the Secretary of the Treasury, 
or the Secretary's delegate, should designate one or more series of 
bonds or certificates (or any portion thereof) issued under section 
3105 of title 31, United States Code, as ``Gulf Coast Recovery Bonds'' 
in response to Hurricanes Katrina, Rita, and Wilma.

SEC. 302. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES 
              OF EARNED INCOME CREDIT.

    (a) In General.--Subclause (II) of section 32(c)(2)(B)(vi) is 
amended by striking ``January 1, 2006'' and inserting ``January 1, 
2007''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2005.

SEC. 303. MODIFICATION OF EFFECTIVE DATE OF EXCEPTION FROM SUSPENSION 
              RULES FOR CERTAIN LISTED AND REPORTABLE TRANSACTIONS.

    (a) Effective Date Modification.--
        (1) In general.--Paragraph (2) of section 903(d) of the 
    American Jobs Creation Act of 2004 is amended to read as follows:
        ``(2) Exception for reportable or listed transactions.--
            ``(A) In general.--The amendments made by subsection (c) 
        shall apply with respect to interest accruing after October 3, 
        2004.
            ``(B) Special rule for certain listed and reportable 
        transactions.--
                ``(i) In general.--Except as provided in clauses (ii), 
            (iii), and (iv), the amendments made by subsection (c) 
            shall also apply with respect to interest accruing on or 
            before October 3, 2004.
                ``(ii) Participants in settlement initiatives.--Clause 
            (i) shall not apply to any transaction if, as of January 
            23, 2006--

                    ``(I) the taxpayer is participating in a settlement 
                initiative described in Internal Revenue Service 
                Announcement 2005-80 with respect to such transaction, 
                or
                    ``(II) the taxpayer has entered into a settlement 
                agreement pursuant to such an initiative.

            Subclause (I) shall not apply to any taxpayer if, after 
            January 23, 2006, the taxpayer withdraws from, or 
            terminates, participation in the initiative or the 
            Secretary of the Treasury or the Secretary's delegate 
            determines that a settlement agreement will not be reached 
            pursuant to the initiative within a reasonable period of 
            time.
                ``(iii) Taxpayers acting in good faith.--The Secretary 
            of the Treasury may except from the application of clause 
            (i) any transaction in which the taxpayer has acted 
            reasonably and in good faith.
                ``(iv) Closed transactions.--Clause (i) shall not apply 
            to a transaction if, as of December 14, 2005--

                    ``(I) the assessment of all Federal income taxes 
                for the taxable year in which the tax liability to 
                which the interest relates arose is prevented by the 
                operation of any law or rule of law, or
                    ``(II) a closing agreement under section 7121 has 
                been entered into with respect to the tax liability 
                arising in connection with the transaction.''.

        (2) Effective date.--The amendment made by this subsection 
    shall take effect as if included in the provisions of the American 
    Jobs Creation Act of 2004 to which it relates.
    (b) Treatment of Amended Returns and Other Similar Notices of 
Additional Tax Owed.--
        (1) In general.--Section 6404(g)(1) (relating to suspension) is 
    amended by adding at the end the following new sentence: ``If, 
    after the return for a taxable year is filed, the taxpayer provides 
    to the Secretary 1 or more signed written documents showing that 
    the taxpayer owes an additional amount of tax for the taxable year, 
    clause (i) shall be applied by substituting the date the last of 
    the documents was provided for the date on which the return is 
    filed.''.
        (2) Effective date.--The amendment made by this subsection 
    shall apply to documents provided on or after the date of the 
    enactment of this Act.

SEC. 304. AUTHORITY FOR UNDERCOVER OPERATIONS.

    Paragraph (6) of section 7608(c) (relating to application of 
section) is amended by striking ``January 1, 2006'' both places is 
appears and inserting ``January 1, 2007''.

SEC. 305. DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.

    (a) Disclosures To Facilitate Combined Employment Tax Reporting.--
        (1) In general.--Subparagraph (B) of section 6103(d)(5) 
    (relating to termination) is amended by striking ``December 31, 
    2005'' and inserting ``December 31, 2006''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    apply to disclosures after December 31, 2005.
    (b) Disclosures Relating to Terrorist Activities.--
        (1) In general.--Clause (iv) of section 6103(i)(3)(C) and 
    subparagraph (E) of section 6103(i)(7) are each amended by striking 
    ``December 31, 2005'' and inserting ``December 31, 2006''.
        (2) Effective date.--The amendments made by paragraph (1) shall 
    apply to disclosures after December 31, 2005.
    (c) Disclosures Relating to Student Loans.--
        (1) In general.--Subparagraph (D) of section 6103(l)(13) 
    (relating to termination) is amended by striking ``December 31, 
    2005'' and inserting ``December 31, 2006''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    apply to requests made after December 31, 2005.

                          TITLE IV--TECHNICALS
                       Subtitle A--Tax Technicals

SEC. 401. SHORT TITLE.

    This subtitle may be cited as the ``Tax Technical Corrections Act 
of 2005''.

SEC. 402. AMENDMENTS RELATED TO ENERGY POLICY ACT OF 2005.

    (a) Amendments Related to Section 1263.--
        (1) Part VI of subchapter O of chapter 1 is repealed.
        (2) Section 1223 is amended by striking paragraph (3) and by 
    redesignating paragraphs (4) through (16) as paragraphs (3) through 
    (15), respectively.
        (3) Section 121(g) is amended by striking ``1223(7)'' and 
    inserting ``1223(6)''.
        (4) Section 246(c)(3)(B) is amended by striking ``paragraph (4) 
    of section 1223'' and inserting ``paragraph (3) of section 1223''.
        (5) Section 247(b)(2)(D) is amended by inserting ``as in effect 
    before its repeal'' after ``part VI of subchapter O''.
        (6)(A) Section 1245(b) is amended by striking paragraph (5) and 
    redesignating paragraphs (6) through (9) as paragraphs (5) through 
    (8), respectively.
        (B) Section 1245(b)(3) is amended by striking ``paragraph (7)'' 
    and inserting ``paragraph (6)''.
        (7)(A) Section 1250(d) is amended by striking paragraph (5) and 
    redesignating paragraphs (6) through (8) as paragraphs (5) through 
    (7), respectively.
        (B) Section 1250(e)(2) is amended by striking ``(3), or (5)'' 
    and inserting ``or (3)''.
    (b) Amendment Related to Section 1301.--Clause (ii) of section 
45(c)(3)(A) is amended by striking ``nonhazardous lignin waste 
material'' and inserting ``lignin material''.
    (c) Amendments Related to Section 1303.--
        (1) Subsection (l) of section 54 is amended by striking 
    paragraph (5), and by redesignating paragraphs (6) and (7) as 
    paragraphs (5) and (6), respectively.
        (2) Subsection (e) of section 1303 of the Energy Policy Act of 
    2005 is amended to read as follows:
    ``(e) Effective Dates.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall apply to bonds issued after 
    December 31, 2005.
        ``(2) Subsection (c).--The amendments made by subsection (c) 
    shall apply to taxable years beginning after December 31, 2005.''.
    (d) Amendments Related to Section 1306.--
        (1) Paragraph (2) of section 45J(c) is amended to read as 
    follows:
        ``(2) Phaseout of credit.--
            ``(A) In general.--The amount of the credit determined 
        under subsection (a) shall be reduced by an amount which bears 
        the same ratio to the amount of the credit (determined without 
        regard to this paragraph) as--
                ``(i) the amount by which the reference price (as 
            defined in section 45(e)(2)(C)) for the calendar year in 
            which the sale occurs exceeds 8 cents, bears to
                ``(ii) 3 cents.
            ``(B) Phaseout adjustment based on inflation.--The 8 cent 
        amount in subparagraph (A) shall be adjusted by multiplying 
        such amount by the inflation adjustment factor (as defined in 
        section 45(e)(2)(B)) for the calendar year in which the sale 
        occurs. If any amount as increased under the preceding sentence 
        is not a multiple of 0.1 cent, such amount shall be rounded to 
        the nearest multiple of 0.1 cent.''.
        (2) Subsection (e) of section 45J is amended by striking 
    ``(2),''.
    (e) Amendment Related to Section 1309.--Subparagraph (B) of section 
169(d)(5) is amended by adding at beginning thereof ``in the case of 
facility placed in service in connection with a plant or other property 
placed in operation after December 31, 1975,''.
    (f) Amendments Related to Section 1311.--
        (1) Clause (i) of section 172(b)(1)(I) is amended to read as 
    follows:
                ``(i) In general.--At the election of the taxpayer for 
            any taxable year ending after December 31, 2005, and before 
            January 1, 2009, in the case of a net operating loss for a 
            taxable year ending after December 31, 2002, and before 
            January 1, 2006, there shall be a net operating loss 
            carryback to each of the 5 taxable years preceding the 
            taxable year of such loss to the extent that such loss does 
            not exceed 20 percent of the sum of the electric 
            transmission property capital expenditures and the 
            pollution control facility capital expenditures of the 
            taxpayer for the taxable year preceding the taxable year 
            for which such election is made.''.
        (2) Clause (ii) of section 172(b)(1)(I) is amended by striking 
    ``in a taxable year'' and inserting ``for a taxable year''.
        (3) Subparagraph (I) of section 172(b)(1) is amended by 
    striking clause (iv) and (v), by redesignating clause (vi) as 
    clause (v), and by inserting after clause (iii) the following:
                ``(iv) Special rules relating to credit or refund.--In 
            the case of the portion of the loss which is carried back 5 
            years by reason of clause (i)--

                    ``(I) an application under section 6411(a) with 
                respect to such portion shall not fail to be treated as 
                timely filed if filed within 24 months after the due 
                date specified under such section, and
                    ``(II) references in sections 6501(h), 
                6511(d)(2)(A), and 6611(f)(1) to the taxable year in 
                which such net operating loss arises or results in a 
                net operating loss carryback shall be treated as 
                references to the taxable year for which such election 
                is made.''.

    (g) Amendment Related to Section 1322.--Subsection (a) of section 
45K is amended by striking ``if the taxpayer elects to have this 
section apply,''.
    (h) Amendment Related to Section 1331.--Paragraph (3) of section 
1250(b) is amended by striking ``or by section 179D''.
    (i) Amendments Related to Section 1335.--
        (1) Paragraph (1) of section 25D(b) is amended by inserting 
    ``(determined without regard to subsection (c))'' after 
    ``subsection (a)''.
        (2) Subparagraphs (A) and (B) of section 25D(e)(4) are amended 
    to read as follows:
            ``(A) Maximum expenditures.--The maximum amount of 
        expenditures which may be taken into account under subsection 
        (a) by all such individuals with respect to such dwelling unit 
        during such calendar year shall be--
                ``(i) $6,667 in the case of any qualified photovoltaic 
            property expenditures,
                ``(ii) $6,667 in the case of any qualified solar water 
            heating property expenditures, and
                ``(iii) $1,667 in the case of each half kilowatt of 
            capacity of qualified fuel cell property (as defined in 
            section 48(c)(1)) for which qualified fuel cell property 
            expenditures are made.
            ``(B) Allocation of expenditures.--The expenditures 
        allocated to any individual for the taxable year in which such 
        calendar year ends shall be an amount equal to the lesser of--
                ``(i) the amount of expenditures made by such 
            individual with respect to such dwelling during such 
            calendar year, or
                ``(ii) the maximum amount of such expenditures set 
            forth in subparagraph (A) multiplied by a fraction--

                    ``(I) the numerator of which is the amount of such 
                expenditures with respect to such dwelling made by such 
                individual during such calendar year, and
                    ``(II) the denominator of which is the total 
                expenditures made by all such individuals with respect 
                to such dwelling during such calendar year.''.

        (3)(A)(i) The matter preceding subparagraph (A) of section 
    23(b)(4) is amended by striking ``The credit'' and inserting ``In 
    the case of a taxable year to which section 26(a)(2) does not 
    apply, the credit''.
        (ii) Subsection (c) of section 23 is amended to read as 
    follows:
    ``(c) Carryforwards of Unused Credit.--
        ``(1) Rule for years in which all personal credits allowed 
    against regular and alternative minimum tax.--In the case of a 
    taxable year to which section 26(a)(2) applies, if the credit 
    allowable under subsection (a) for any taxable year exceeds the 
    limitation imposed by section 26(a)(2) for such taxable year 
    reduced by the sum of the credits allowable under this subpart 
    (other than this section and sections 25D and 1400C), such excess 
    shall be carried to the succeeding taxable year and added to the 
    credit allowable under subsection (a) for such taxable year.
        ``(2) Rule for other years.--In the case of a taxable year to 
    which section 26(a)(2) does not apply, if the credit allowable 
    under subsection (a) for any taxable year exceeds the limitation 
    imposed by subsection (b)(4) for such taxable year, such excess 
    shall be carried to the succeeding taxable year and added to the 
    credit allowable under subsection (a) for such taxable year.
        ``(3) Limitation.--No credit may be carried forward under this 
    subsection to any taxable year following the fifth taxable year 
    after the taxable year in which the credit arose. For purposes of 
    the preceding sentence, credits shall be treated as used on a 
    first-in first-out basis.''.
        (B)(i) The matter preceding subparagraph (A) of section 
    24(b)(3) is amended by striking ``The credit'' and inserting ``In 
    the case of a taxable year to which section 26(a)(2) does not 
    apply, the credit''.
        (ii) Paragraph (1) of section 24(d) is amended to read as 
    follows:
        ``(1) In general.--The aggregate credits allowed to a taxpayer 
    under subpart C shall be increased by the lesser of--
            ``(A) the credit which would be allowed under this section 
        without regard to this subsection and the limitation under 
        section 26(a)(2) or subsection (b)(3), as the case may be, or
            ``(B) the amount by which the aggregate amount of credits 
        allowed by this subpart (determined without regard to this 
        subsection) would increase if the limitation imposed by section 
        26(a)(2) or subsection (b)(3), as the case may be, were 
        increased by the excess (if any) of--
                ``(i) 15 percent of so much of the taxpayer's earned 
            income (within the meaning of section 32) which is taken 
            into account in computing taxable income for the taxable 
            year as exceeds $10,000, or
                ``(ii) in the case of a taxpayer with 3 or more 
            qualifying children, the excess (if any) of--

                    ``(I) the taxpayer's social security taxes for the 
                taxable year, over
                    ``(II) the credit allowed under section for the 
                taxable year.

    The amount of the credit allowed under this subsection shall not be 
    treated as a credit allowed under this subpart and shall reduce the 
    amount of credit otherwise allowable under subsection (a) without 
    regard to section 26(a)(2) or subsection (b)(3), as the case may 
    be. For purposes of subparagraph (B), any amount excluded from 
    gross income by reason of section 112 shall be treated as earned 
    income which is taken into account in computing taxable income for 
    the taxable year.''.
        (C) Subparagraph (C) of section 25(e)(1) is amended to read as 
    follows:
            ``(C) Applicable tax limit.--For purposes of this 
        paragraph, the term `applicable tax limit' means--
                ``(i) in the case of a taxable year to which section 
            26(a)(2) applies, the limitation imposed by section 
            26(a)(2) for the taxable year reduced by the sum of the 
            credits allowable under this subpart (other than this 
            section and sections 23, 25D, and 1400C), and
                ``(ii) in the case of a taxable year to which section 
            26(a)(2) does not apply, the limitation imposed by section 
            26(a)(1) for the taxable year reduced by the sum of the 
            credits allowable under this subpart (other than this 
            section and sections 23, 24, 25B, 25D, and 1400C).''.
        (D) The matter preceding paragraph (1) of section 25B(g) is 
    amended by striking ``The credit'' and inserting ``In the case of a 
    taxable year to which section 26(a)(2) does not apply, the 
    credit''.
        (E) Subsection (c) of section 25D is amended to read as 
    follows:
    ``(c) Carryforward of Unused Credit.--
        ``(1) Rule for years in which all personal credits allowed 
    against regular and alternative minimum tax.--In the case of a 
    taxable year to which section 26(a)(2) applies, if the credit 
    allowable under subsection (a) exceeds the limitation imposed by 
    section 26(a)(2) for such taxable year reduced by the sum of the 
    credits allowable under this subpart (other than this section), 
    such excess shall be carried to the succeeding taxable year and 
    added to the credit allowable under subsection (a) for such 
    succeeding taxable year.
        ``(2) Rule for other years.--In the case of a taxable year to 
    which section 26(a)(2) does not apply, if the credit allowable 
    under subsection (a) exceeds the limitation imposed by section 
    26(a)(1) for such taxable year reduced by the sum of the credits 
    allowable under this subpart (other than this section and sections 
    23, 24, and 25B), such excess shall be carried to the succeeding 
    taxable year and added to the credit allowable under subsection (a) 
    for such succeeding taxable year.''.
        (F) Subsection (d) of section 1400C is amended to read as 
    follows:
    ``(d) Carryforward of Unused Credit.--
        ``(1) Rule for years in which all personal credits allowed 
    against regular and alternative minimum tax.--In the case of a 
    taxable year to which section 26(a)(2) applies, if the credit 
    allowable under subsection (a) exceeds the limitation imposed by 
    section 26(a)(2) for such taxable year reduced by the sum of the 
    credits allowable under subpart A of part IV of subchapter A (other 
    than this section and section 25D), such excess shall be carried to 
    the succeeding taxable year and added to the credit allowable under 
    subsection (a) for such taxable year.
        ``(2) Rule for other years.--In the case of a taxable year to 
    which section 26(a)(2) does not apply, if the credit allowable 
    under subsection (a) exceeds the limitation imposed by section 
    26(a)(1) for such taxable year reduced by the sum of the credits 
    allowable under subpart A of part IV of subchapter A (other than 
    this section and sections 23, 24, 25B, and 25D), such excess shall 
    be carried to the succeeding taxable year and added to the credit 
    allowable under subsection (a) for such taxable year.''.
        (G) Subsection (i) of section 904 is amended to read as 
    follows:
    ``(i) Coordination With Nonrefundable Personal Credits.--In the 
case of any taxable year of an individual to which section 26(a)(2) 
does not apply, for purposes of subsection (a), the tax against which 
the credit is taken is such tax reduced by the sum of the credits 
allowable under subpart A of part IV of subchapter A of this chapter 
(other than sections 23, 24, and 25B).''.
        (H) Application of egtrra sunset.--The amendments made by this 
    paragraph (and each part thereof) shall be subject to title IX of 
    the Economic Growth and Tax Relief Reconciliation Act of 2001 in 
    the same manner as the provisions of such Act to which such 
    amendment (or part thereof) relates.
        (4) Subsection (b) of section 1335 of the Energy Policy Act of 
    2005 is amended by striking paragraphs (1), (2), and (3). The 
    Internal Revenue Code of 1986 shall be applied and administered as 
    if the amendments made such paragraphs had never been enacted.
    (j) Amendment Related to Section 1341.--Paragraph (6) of section 
30B(h) is amended by adding at the end the following sentence: ``For 
purposes of subsection (g), property to which this paragraph applies 
shall be treated as of a character subject to an allowance for 
depreciation.''.
    (k) Amendment Related to Section 1342.--Paragraph (2) of section 
30C(e) is amended by adding at the end the following sentence: ``For 
purposes of subsection (d), property to which this paragraph applies 
shall be treated as of a character subject to an allowance for 
depreciation.''.
    (l) Amendments Related to Section 1351.--
        (1) Paragraph (6) of section 41(f) (relating to special rules) 
    is amended by adding at the end the following:
            ``(C) Foreign research.--For purposes of subsection (a)(3), 
        amounts paid or incurred for any energy research conducted 
        outside the United States, the Commonwealth of Puerto Rico, or 
        any possession of the United States shall not be taken into 
        account.
            ``(D) Denial of double benefit.--Any amount taken into 
        account under subsection (a)(3) shall not be taken into account 
        under paragraph (1) or (2) of subsection (a).''.
        (2) Clause (ii) of section 41(b)(3)(C) is amended by striking 
    ``(other than an energy research consortium)''.
    (m) Effective Date.--
        (1) In general.--Except as provided in paragraphs (2) and (3), 
    the amendments made by this section shall take effect as if 
    included in the provisions of the Energy Policy Act of 2005 to 
    which they relate.
        (2) Repeal of public utility holding company act of 1935.--The 
    amendments made by subsection (a) shall not apply with respect to 
    any transaction ordered in compliance with the Public Utility 
    Holding Company Act of 1935 before its repeal.
        (3) Coordination of personal credits.--The amendments made by 
    subsection (i)(3) shall apply to taxable years beginning after 
    December 31, 2005.

SEC. 403. AMENDMENTS RELATED TO THE AMERICAN JOBS CREATION ACT OF 2004.

    (a) Amendments Related to Section 102 of the Act.--
        (1) Paragraph (1) of section 199(b) is amended by striking 
    ``the employer'' and inserting ``the taxpayer''.
        (2) Paragraph (2) of section 199(b) is amended to read as 
    follows:
        ``(2) W-2 wages.--For purposes of this section, the term `W-2 
    wages' means, with respect to any person for any taxable year of 
    such person, the sum of the amounts described in paragraphs (3) and 
    (8) of section 6051(a) paid by such person with respect to 
    employment of employees by such person during the calendar year 
    ending during such taxable year. Such term shall not include any 
    amount which is not properly included in a return filed with the 
    Social Security Administration on or before the 60th day after the 
    due date (including extensions) for such return.''.
        (3) Subparagraph (B) of section 199(c)(1) is amended by 
    inserting ``and'' at the end of clause (i), by striking clauses 
    (ii) and (iii), and by inserting after clause (i) the following:
                ``(ii) other expenses, losses, or deductions (other 
            than the deduction allowed under this section), which are 
            properly allocable to such receipts.''.
        (4) Paragraph (2) of section 199(c) is amended to read as 
    follows:
        ``(2) Allocation method.--The Secretary shall prescribe rules 
    for the proper allocation of items described in paragraph (1) for 
    purposes of determining qualified production activities income. 
    Such rules shall provide for the proper allocation of items whether 
    or not such items are directly allocable to domestic production 
    gross receipts.''.
        (5) Subparagraph (A) of section 199(c)(4) is amended by 
    striking clauses (ii) and (iii) and inserting the following new 
    clauses:
                ``(ii) in the case of a taxpayer engaged in the active 
            conduct of a construction trade or business, construction 
            of real property performed in the United States by the 
            taxpayer in the ordinary course of such trade or business, 
            or
                ``(iii) in the case of a taxpayer engaged in the active 
            conduct of an engineering or architectural services trade 
            or business, engineering or architectural services 
            performed in the United States by the taxpayer in the 
            ordinary course of such trade or business with respect to 
            the construction of real property in the United States.''.
        (6) Subparagraph (B) of section 199(c)(4) is amended by 
    striking ``and'' at the end of clause (i), by striking the period 
    at the end of clause (ii) and inserting ``, or'', and by adding at 
    the end the following:
                ``(iii) the lease, rental, license, sale, exchange, or 
            other disposition of land.''.
        (7) Paragraph (4) of section 199(c) is amended by adding at the 
    end the following new subparagraphs:
            ``(C) Special rule for certain government contracts.--Gross 
        receipts derived from the manufacture or production of any 
        property described in subparagraph (A)(i)(I) shall be treated 
        as meeting the requirements of subparagraph (A)(i) if--
                ``(i) such property is manufactured or produced by the 
            taxpayer pursuant to a contract with the Federal 
            Government, and
                ``(ii) the Federal Acquisition Regulation requires that 
            title or risk of loss with respect to such property be 
            transferred to the Federal Government before the 
            manufacture or production of such property is complete.
            ``(D) Partnerships owned by expanded affiliated groups.--
        For purposes of this paragraph, if all of the interests in the 
        capital and profits of a partnership are owned by members of a 
        single expanded affiliated group at all times during the 
        taxable year of such partnership, the partnership and all 
        members of such group shall be treated as a single taxpayer 
        during such period.''.
        (8) Paragraph (1) of section 199(d) is amended to read as 
    follows:
        ``(1) Application of section to pass-thru entities.--
            ``(A) Partnerships and s corporations.--In the case of a 
        partnership or S corporation--
                ``(i) this section shall be applied at the partner or 
            shareholder level,
                ``(ii) each partner or shareholder shall take into 
            account such person's allocable share of each item 
            described in subparagraph (A) or (B) of subsection (c)(1) 
            (determined without regard to whether the items described 
            in such subparagraph (A) exceed the items described in such 
            subparagraph (B)), and
                ``(iii) each partner or shareholder shall be treated 
            for purposes of subsection (b) as having W-2 wages for the 
            taxable year in an amount equal to the lesser of--

                    ``(I) such person's allocable share of the W-2 
                wages of the partnership or S corporation for the 
                taxable year (as determined under regulations 
                prescribed by the Secretary), or
                    ``(II) 2 times 9 percent of so much of such 
                person's qualified production activities income as is 
                attributable to items allocated under clause (ii) for 
                the taxable year.

            ``(B) Trusts and estates.--In the case of a trust or 
        estate--
                ``(i) the items referred to in subparagraph (A)(ii) (as 
            determined therein) and the W-2 wages of the trust or 
            estate for the taxable year, shall be apportioned between 
            the beneficiaries and the fiduciary (and among the 
            beneficiaries) under regulations prescribed by the 
            Secretary, and
                ``(ii) for purposes of paragraph (2), adjusted gross 
            income of the trust or estate shall be determined as 
            provided in section 67(e) with the adjustments described in 
            such paragraph.
            ``(C) Regulations.--The Secretary may prescribe rules 
        requiring or restricting the allocation of items and wages 
        under this paragraph and may prescribe such reporting 
        requirements as the Secretary determines appropriate.''.
        (9) Paragraph (3) of section 199(d) is amended to read as 
    follows:
        ``(3) Agricultural and horticultural cooperatives.--
            ``(A) Deduction allowed to patrons.--Any person who 
        receives a qualified payment from a specified agricultural or 
        horticultural cooperative shall be allowed for the taxable year 
        in which such payment is received a deduction under subsection 
        (a) equal to the portion of the deduction allowed under 
        subsection (a) to such cooperative which is--
                ``(i) allowed with respect to the portion of the 
            qualified production activities income to which such 
            payment is attributable, and
                ``(ii) identified by such cooperative in a written 
            notice mailed to such person during the payment period 
            described in section 1382(d).
            ``(B) Cooperative denied deduction for portion of qualified 
        payments.--The taxable income of a specified agricultural or 
        horticultural cooperative shall not be reduced under section 
        1382 by reason of that portion of any qualified payment as does 
        not exceed the deduction allowable under subparagraph (A) with 
        respect to such payment.
            ``(C) Taxable income of cooperatives determined without 
        regard to certain deductions.--For purposes of this section, 
        the taxable income of a specified agricultural or horticultural 
        cooperative shall be computed without regard to any deduction 
        allowable under subsection (b) or (c) of section 1382 (relating 
        to patronage dividends, per-unit retain allocations, and 
        nonpatronage distributions).
            ``(D) Special rule for marketing cooperatives.--For 
        purposes of this section, a specified agricultural or 
        horticultural cooperative described in subparagraph (F)(ii) 
        shall be treated as having manufactured, produced, grown, or 
        extracted in whole or significant part any qualifying 
        production property marketed by the organization which its 
        patrons have so manufactured, produced, grown, or extracted.
            ``(E) Qualified payment.--For purposes of this paragraph, 
        the term `qualified payment' means, with respect to any person, 
        any amount which--
                ``(i) is described in paragraph (1) or (3) of section 
            1385(a),
                ``(ii) is received by such person from a specified 
            agricultural or horticultural cooperative, and
                ``(iii) is attributable to qualified production 
            activities income with respect to which a deduction is 
            allowed to such cooperative under subsection (a).
            ``(F) Specified agricultural or horticultural 
        cooperative.--For purposes of this paragraph, the term 
        `specified agricultural or horticultural cooperative' means an 
        organization to which part I of subchapter T applies which is 
        engaged--
                ``(i) in the manufacturing, production, growth, or 
            extraction in whole or significant part of any agricultural 
            or horticultural product, or
                ``(ii) in the marketing of agricultural or 
            horticultural products.''.
        (10) Clause (i) of section 199(d)(4)(B) is amended--
            (A) by striking ``50 percent'' and inserting ``more than 50 
        percent'', and
            (B) by striking ``80 percent'' and inserting ``at least 80 
        percent''.
        (11)(A) Paragraph (6) of section 199(d) is amended to read as 
    follows:
        ``(6) Coordination with minimum tax.--For purposes of 
    determining alternative minimum taxable income under section 55--
            ``(A) qualified production activities income shall be 
        determined without regard to any adjustments under sections 56 
        through 59, and
            ``(B) in the case of a corporation, subsection (a)(1)(B) 
        shall be applied by substituting `alternative minimum taxable 
        income' for `taxable income'.''.
        (B) Paragraph (2) of section 199(a) is amended by striking 
    ``subsections (d)(1) and (d)(6)'' and inserting ``subsection 
    (d)(1)''.
        (12) Subsection (d) of section 199 is amended by redesignating 
    paragraph (7) as paragraph (8) and by inserting after paragraph (6) 
    the following new paragraph:
        ``(7) Unrelated business taxable income.--For purposes of 
    determining the tax imposed by section 511, subsection (a)(1)(B) 
    shall be applied by substituting `unrelated business taxable 
    income' for `taxable income'.''.
        (13) Paragraph (8) of section 199(d), as redesignated by 
    paragraph (12), is amended by inserting ``, including regulations 
    which prevent more than 1 taxpayer from being allowed a deduction 
    under this section with respect to any activity described in 
    subsection (c)(4)(A)(i)'' before the period at the end.
        (14) Clauses (i)(II) and (ii)(II) of section 56(d)(1)(A) are 
    each amended by striking ``such deduction'' and inserting ``such 
    deduction and the deduction under section 199''.
        (15) Clause (i) of section 163(j)(6)(A) is amended by striking 
    ``and'' at the end of subclause (II), by redesignating subclause 
    (III) as subclause (IV), and by inserting after subclause (II) the 
    following new subclause:

                    ``(III) any deduction allowable under section 199, 
                and''.

        (16) Paragraph (2) of section 170(b) is amended by 
    redesignating subparagraphs (C) and (D) as subparagraphs (D) and 
    (E), respectively, and by inserting after subparagraph (B) the 
    following new subparagraph:
            ``(C) section 199,''.
        (17) Subsection (d) of section 172 is amended by adding at the 
    end the following new paragraph:
        ``(7) Manufacturing deduction.--The deduction under section 199 
    shall not be allowed.''.
        (18) Paragraph (1) of section 613A(d) is amended by 
    redesignating subparagraphs (B), (C), and (D) as subparagraphs (C), 
    (D), and (E), respectively, and by inserting after subparagraph (A) 
    the following new subparagraph:
            ``(B) any deduction allowable under section 199,''.
        (19) Subsection (e) of section 102 of the American Jobs 
    Creation Act of 2004 is amended to read as follows:
    ``(e) Effective Date.--
        ``(1) In general.--The amendments made by this section shall 
    apply to taxable years beginning after December 31, 2004.
        ``(2) Application to pass-thru entities, etc.--In determining 
    the deduction under section 199 of the Internal Revenue Code of 
    1986 (as added by this section), items arising from a taxable year 
    of a partnership, S corporation, estate, or trust beginning before 
    January 1, 2005, shall not be taken into account for purposes of 
    subsection (d)(1) of such section.''.
    (b) Amendment Related to Section 231 of the Act.--Paragraph (1) of 
section 1361(c) is amended to read as follows:
        ``(1) Members of a family treated as 1 shareholder.--
            ``(A) In general.--For purposes of subsection (b)(1)(A), 
        there shall be treated as one shareholder--
                ``(i) a husband and wife (and their estates), and
                ``(ii) all members of a family (and their estates).
            ``(B) Members of a family.--For purposes of this 
        paragraph--
                ``(i) In general.--The term `members of a family' means 
            a common ancestor, any lineal descendant of such common 
            ancestor, and any spouse or former spouse of such common 
            ancestor or any such lineal descendant.
                ``(ii) Common ancestor.--An individual shall not be 
            considered to be a common ancestor if, on the applicable 
            date, the individual is more than 6 generations removed 
            from the youngest generation of shareholders who would (but 
            for this subparagraph) be members of the family. For 
            purposes of the preceding sentence, a spouse (or former 
            spouse) shall be treated as being of the same generation as 
            the individual to whom such spouse is (or was) married.
                ``(iii) Applicable date.--The term `applicable date' 
            means the latest of--

                    ``(I) the date the election under section 1362(a) 
                is made,
                    ``(II) the earliest date that an individual 
                described in clause (i) holds stock in the S 
                corporation, or
                    ``(III) October 22, 2004.

            ``(C) Effect of adoption, etc.--Any legally adopted child 
        of an individual, any child who is lawfully placed with an 
        individual for legal adoption by the individual, and any 
        eligible foster child of an individual (within the meaning of 
        section 152(f)(1)(C)), shall be treated as a child of such 
        individual by blood.''.
    (c) Amendment Related to Section 235 of the Act.--Subsection (b) of 
section 235 of the American Jobs Creation Act of 2004 is amended by 
striking ``taxable years beginning'' and inserting ``transfers''.
    (d) Amendments Related to Section 243 of the Act.--
        (1) Paragraph (7) of section 856(c) is amended to read as 
    follows:
        ``(7) Rules of application for failure to satisfy paragraph 
    (4).--
            ``(A) In general.--A corporation, trust, or association 
        that fails to meet the requirements of paragraph (4) (other 
        than a failure to meet the requirements of paragraph 
        (4)(B)(iii) which is described in subparagraph (B)(i) of this 
        paragraph) for a particular quarter shall nevertheless be 
        considered to have satisfied the requirements of such paragraph 
        for such quarter if--
                ``(i) following the corporation, trust, or 
            association's identification of the failure to satisfy the 
            requirements of such paragraph for a particular quarter, a 
            description of each asset that causes the corporation, 
            trust, or association to fail to satisfy the requirements 
            of such paragraph at the close of such quarter of any 
            taxable year is set forth in a schedule for such quarter 
            filed in accordance with regulations prescribed by the 
            Secretary,
                ``(ii) the failure to meet the requirements of such 
            paragraph for a particular quarter is due to reasonable 
            cause and not due to willful neglect, and
                ``(iii)(I) the corporation, trust, or association 
            disposes of the assets set forth on the schedule specified 
            in clause (i) within 6 months after the last day of the 
            quarter in which the corporation, trust or association's 
            identification of the failure to satisfy the requirements 
            of such paragraph occurred or such other time period 
            prescribed by the Secretary and in the manner prescribed by 
            the Secretary, or
                ``(II) the requirements of such paragraph are otherwise 
            met within the time period specified in subclause (I).
            ``(B) Rule for certain de minimis failures.--A corporation, 
        trust, or association that fails to meet the requirements of 
        paragraph (4)(B)(iii) for a particular quarter shall 
        nevertheless be considered to have satisfied the requirements 
        of such paragraph for such quarter if--
                ``(i) such failure is due to the ownership of assets 
            the total value of which does not exceed the lesser of--

                    ``(I) 1 percent of the total value of the trust's 
                assets at the end of the quarter for which such 
                measurement is done, and
                    ``(II) $10,000,000, and

                ``(ii)(I) the corporation, trust, or association, 
            following the identification of such failure, disposes of 
            assets in order to meet the requirements of such paragraph 
            within 6 months after the last day of the quarter in which 
            the corporation, trust or association's identification of 
            the failure to satisfy the requirements of such paragraph 
            occurred or such other time period prescribed by the 
            Secretary and in the manner prescribed by the Secretary, or
                ``(II) the requirements of such paragraph are otherwise 
            met within the time period specified in subclause (I).
            ``(C) Tax.--
                ``(i) Tax imposed.--If subparagraph (A) applies to a 
            corporation, trust, or association for any taxable year, 
            there is hereby imposed on such corporation, trust, or 
            association a tax in an amount equal to the greater of--

                    ``(I) $50,000, or
                    ``(II) the amount determined (pursuant to 
                regulations promulgated by the Secretary) by 
                multiplying the net income generated by the assets 
                described in the schedule specified in subparagraph 
                (A)(i) for the period specified in clause (ii) by the 
                highest rate of tax specified in section 11.

                ``(ii) Period.--For purposes of clause (i)(II), the 
            period described in this clause is the period beginning on 
            the first date that the failure to satisfy the requirements 
            of such paragraph (4) occurs as a result of the ownership 
            of such assets and ending on the earlier of the date on 
            which the trust disposes of such assets or the end of the 
            first quarter when there is no longer a failure to satisfy 
            such paragraph (4).
                ``(iii) Administrative provisions.--For purposes of 
            subtitle F, the taxes imposed by this subparagraph shall be 
            treated as excise taxes with respect to which the 
            deficiency procedures of such subtitle apply.''.
        (2) Subsection (m) of section 856 is amended by adding at the 
    end the following new paragraph:
        ``(6) Transition rule.--
            ``(A) In general.--Notwithstanding paragraph (2)(C), 
        securities held by a trust shall not be considered securities 
        held by the trust for purposes of subsection 
        (c)(4)(B)(iii)(III) during any period beginning on or before 
        October 22, 2004, if such securities--
                ``(i) are held by such trust continuously during such 
            period, and
                ``(ii) would not be taken into account for purposes of 
            such subsection by reason of paragraph (7)(C) of subsection 
            (c) (as in effect on October 22, 2004) if the amendments 
            made by section 243 of the American Jobs Creation Act of 
            2004 had never been enacted.
            ``(B) Rule not to apply to securities held after maturity 
        date.--Subparagraph (A) shall not apply with respect to any 
        security after the later of October 22, 2004, or the latest 
        maturity date under the contract (as in effect on October 22, 
        2004) taking into account any renewal or extension permitted 
        under the contract if such renewal or extension does not 
        significantly modify any other terms of the contract.
            ``(C) Successors.--If the successor of a trust to which 
        this paragraph applies acquires securities in a transaction to 
        which section 381 applies, such trusts shall be treated as a 
        single entity for purposes of determining the holding period of 
        such securities under subparagraph (A).''.
        (3) Subparagraph (E) of section 857(b)(2) is amended by 
    striking ``section 856(c)(7)(B)(iii), and section 856(g)(1).'' and 
    inserting ``section 856(c)(7)(C), and section 856(g)(5)''.
        (4) Subsection (g) of section 243 of the American Jobs Creation 
    Act of 2004 is amended to read as follows:
    ``(g) Effective Dates.--
        ``(1) Subsections (a) and (b).--The amendments made by 
    subsections (a) and (b) shall apply to taxable years beginning 
    after December 31, 2000.
        ``(2) Subsections (c) and (e).--The amendments made by 
    subsections (c) and (e) shall apply to taxable years beginning 
    after the date of the enactment of this Act.
        ``(3) Subsection (d).--The amendment made by subsection (d) 
    shall apply to transactions entered into after December 31, 2004.
        ``(4) Subsection (f).--
            ``(A) The amendment made by paragraph (1) of subsection (f) 
        shall apply to failures with respect to which the requirements 
        of subparagraph (A) or (B) of section 856(c)(7) of the Internal 
        Revenue Code of 1986 (as added by such paragraph) are satisfied 
        after the date of the enactment of this Act.
            ``(B) The amendment made by paragraph (2) of subsection (f) 
        shall apply to failures with respect to which the requirements 
        of paragraph (6) of section 856(c) of the Internal Revenue Code 
        of 1986 (as amended by such paragraph) are satisfied after the 
        date of the enactment of this Act.
            ``(C) The amendments made by paragraph (3) of subsection 
        (f) shall apply to failures with respect to which the 
        requirements of paragraph (5) of section 856(g) of the Internal 
        Revenue Code of 1986 (as added by such paragraph) are satisfied 
        after the date of the enactment of this Act.
            ``(D) The amendment made by paragraph (4) of subsection (f) 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.
            ``(E) The amendments made by paragraph (5) of subsection 
        (f) shall apply to statements filed after the date of the 
        enactment of this Act.''.
    (e) Amendments Related to Section 244 of the Act.--
        (1) Paragraph (2) of section 181(d) is amended by striking the 
    last sentence in subparagraph (A), by redesignating subparagraph 
    (B) as subparagraph (C), and by inserting after subparagraph (A) 
    the following new subparagraph:
            ``(B) Special rules for television series.--In the case of 
        a television series--
                ``(i) each episode of such series shall be treated as a 
            separate production, and
                ``(ii) only the first 44 episodes of such series shall 
            be taken into account.''.
        (2) Subparagraph (C) of section 1245(a)(2) is amended by 
    inserting ``181,'' after ``179B,''.
    (f) Amendments Related to Section 245 of the Act.--
        (1) Subsection (b) of section 45G is amended to read as 
    follows:
    ``(b) Limitation.--
        ``(1) In general.--The credit allowed under subsection (a) for 
    any taxable year shall not exceed the product of--
            ``(A) $3,500, multiplied by
            ``(B) the sum of--
                ``(i) the number of miles of railroad track owned or 
            leased by the eligible taxpayer as of the close of the 
            taxable year, and
                ``(ii) the number of miles of railroad track assigned 
            for purposes of this subsection to the eligible taxpayer by 
            a Class II or Class III railroad which owns or leases such 
            railroad track as of the close of the taxable year.
        ``(2) Assignments.--With respect to any assignment of a mile of 
    railroad track under paragraph (1)(B)(ii)--
            ``(A) such assignment may be made only once per taxable 
        year of the Class II or Class III railroad and shall be treated 
        as made as of the close of such taxable year,
            ``(B) such mile may not be taken into account under this 
        section by such railroad for such taxable year, and
            ``(C) such assignment shall be taken into account for the 
        taxable year of the assignee which includes the date that such 
        assignment is treated as effective.''.
        (2) Paragraph (2) of section 45G(c) is amended to read as 
    follows:
        ``(2) any person who transports property using the rail 
    facilities of a Class II or Class III railroad or who furnishes 
    railroad-related property or services to a Class II or Class III 
    railroad, but only with respect to miles of railroad track assigned 
    to such person by such Class II or Class III railroad for purposes 
    of subsection (b).''.
    (g) Amendments Related to Section 248 of the Act.--
        (1)(A) Subsection (d) of section 1353 is amended by striking 
    ``ownership and charter interests'' and inserting ``ownership, 
    charter, and operating agreement interests''.
        (B) Subsection (a) of section 1355 is amended by striking 
    paragraph (8).
        (C) Paragraph (1) of section 1355(b) is amended to read as 
    follows:
        ``(1) In general.--Except as provided in paragraph (2), a 
    person is treated as operating any vessel during any period if--
            ``(A)(i) such vessel is owned by, or chartered (including a 
        time charter) to, the person, or
            ``(ii) the person provides services for such vessel 
        pursuant to an operating agreement, and
            ``(B) such vessel is in use as a qualifying vessel during 
        such period.''.
        (D) Paragraph (3) of section 1355(d) is amended to read as 
    follows:
        ``(3) the extent of a partner's ownership, charter, or 
    operating agreement interest in any vessel operated by the 
    partnership shall be determined on the basis of the partner's 
    interest in the partnership.''.
        (2) Paragraph (3) of section 1355(c) is amended by striking 
    ``determined--'' and all that follows and inserting ``determined by 
    treating all members of such group as 1 person.''.
        (3) Subsection (c) of section 1356 is amended--
            (A) by striking paragraph (3), and
            (B) by adding at the end of paragraph (2) the following new 
        flush sentence:
    ``Such term shall not include any core qualifying activities.''.
        (4) The last sentence of section 1354(b) is amended by 
    inserting ``on or'' after ``only if made''.
    (h) Amendment Related to Section 314 of the Act.--Paragraph (2) of 
section 55(c) is amended by striking ``regular tax'' and inserting 
``regular tax liability''.
    (i) Amendments Related to Section 322 of the Act.--
        (1)(A) Subparagraph (B) of section 194(b)(1) is amended to read 
    as follows:
            ``(B) Dollar limitation.--The aggregate amount of 
        reforestation expenditures which may be taken into account 
        under subparagraph (A) with respect to each qualified timber 
        property for any taxable year shall not exceed--
                ``(i) except as provided in clause (ii) or (iii), 
            $10,000,
                ``(ii) in the case of a separate return by a married 
            individual (as defined in section 7703), $5,000, and
                ``(iii) in the case of a trust, zero.''.
        (B) Paragraph (4) of section 194(c) is amended to read as 
    follows:
        ``(4) Treatment of trusts and estates.--The aggregate amount of 
    reforestation expenditures incurred by any trust or estate shall be 
    apportioned between the income beneficiaries and the fiduciary 
    under regulations prescribed by the Secretary. Any amount so 
    apportioned to a beneficiary shall be taken into account as 
    expenditures incurred by such beneficiary in applying this section 
    to such beneficiary.''.
        (2) Subparagraph (C) of section 1245(a)(2) is amended by 
    striking ``or 193'' and inserting ``193, or 194''.
    (j) Amendments Related to Section 336 of the Act.--
        (1) Clause (iv) of section 168(k)(2)(A) is amended by striking 
    ``subparagraphs (B) and (C)'' and inserting ``subparagraph (B) or 
    (C)''.
        (2) Clause (iii) of section 168(k)(4)(B) is amended by striking 
    ``and paragraph (2)(C)'' and inserting ``or paragraph (2)(C) (as so 
    modified)''.
    (k) Amendment Related to Section 402 of the Act.--Paragraph (2) of 
section 904(g) is amended to read as follows:
        ``(2) Overall domestic loss.--For purposes of this subsection--
            ``(A) In general.--The term `overall domestic loss' means--
                ``(i) with respect to any qualified taxable year, the 
            domestic loss for such taxable year to the extent such loss 
            offsets taxable income from sources without the United 
            States for the taxable year or for any preceding qualified 
            taxable year by reason of a carryback, and
                ``(ii) with respect to any other taxable year, the 
            domestic loss for such taxable year to the extent such loss 
            offsets taxable income from sources without the United 
            States for any preceding qualified taxable year by reason 
            of a carryback.
            ``(B) Domestic loss.--For purposes of subparagraph (A), the 
        term `domestic loss' means the amount by which the gross income 
        for the taxable year from sources within the United States is 
        exceeded by the sum of the deductions properly apportioned or 
        allocated thereto (determined without regard to any carryback 
        from a subsequent taxable year).
            ``(C) Qualified taxable year.--For purposes of subparagraph 
        (A), the term `qualified taxable year' means any taxable year 
        for which the taxpayer chose the benefits of this subpart.''.
    (l) Amendment Related to Section 403 of the Act.--Section 403 of 
the American Jobs Creation Act of 2004 is amended by adding at the end 
the following new subsection:
    ``(d) Transition Rule.--If the taxpayer elects (at such time and in 
such form and manner as the Secretary of the Treasury may prescribe) to 
have the rules of this subsection apply--
        ``(1) the amendments made by this section shall not apply to 
    taxable years beginning after December 31, 2002, and before January 
    1, 2005, and
        ``(2) in the case of taxable years beginning after December 31, 
    2004, clause (iv) of section 904(d)(4)(C) of the Internal Revenue 
    Code of 1986 (as amended by this section) shall be applied by 
    substituting `January 1, 2005' for `January 1, 2003' both places it 
    appears.''.
    (m) Amendment Related to Section 412 of the Act.--Subparagraph (B) 
of section 954(c)(4) is amended by adding at the end the following: 
``If a controlled foreign corporation is treated as owning a capital or 
profits interest in a partnership under constructive ownership rules 
similar to the rules of section 958(b), the controlled foreign 
corporation shall be treated as owning such interest directly for 
purposes of this subparagraph.''.
    (n) Amendments Related to Section 413 of the Act.--
        (1) Subsection (b) of section 532 is amended by striking 
    paragraph (2) and redesignating paragraphs (3) and (4) as 
    paragraphs (2) and (3), respectively.
        (2) Subsection (b) of section 535 is amended by adding at the 
    end the following new paragraph:
        ``(10) Controlled foreign corporations.--There shall be allowed 
    as a deduction the amount of the corporation's income for the 
    taxable year which is included in the gross income of a United 
    States shareholder under section 951(a). In the case of any 
    corporation the accumulated taxable income of which would (but for 
    this sentence) be determined without allowance of any deductions, 
    the deduction under this paragraph shall be allowed and shall be 
    appropriately adjusted to take into account any deductions which 
    reduced such inclusion.''.
        (3)(A) Section 6683 is repealed.
        (B) The table of sections for part I of subchapter B of chapter 
    68 is amended by striking the item relating to section 6683.
    (o) Amendment Related to Section 415 of the Act.--Subparagraph (D) 
of section 904(d)(2) is amended by inserting ``as in effect before its 
repeal'' after ``section 954(f)''.
    (p) Amendments Related to Section 418 of the Act.--
        (1) The second sentence of section 897(h)(1) is amended--
            (A) by striking ``any distribution'' and all that follows 
        through ``any class of stock'' and inserting ``any distribution 
        by a real estate investment trust with respect to any class of 
        stock'', and
            (B) by striking ``the taxable year'' and inserting ``the 1-
        year period ending on the date of the distribution''.
        (2) Subsection (c) of section 418 of the American Jobs Creation 
    Act of 2004 is amended to read as follows:
    ``(c) Effective Date.--The amendments made by this section shall 
apply to--
        ``(1) any distribution by a real estate investment trust which 
    is treated as a deduction for a taxable year of such trust 
    beginning after the date of the enactment of this Act, and
        ``(2) any distribution by a real estate investment trust made 
    after such date which is treated as a deduction under section 860 
    for a taxable year of such trust beginning on or before such 
    date.''.
    (q) Amendments Related to Section 422 of the Act.--
        (1) Subparagraph (B) of section 965(a)(2) is amended by 
    inserting ``from another controlled foreign corporation in such 
    chain of ownership'' before ``, but only to the extent''.
        (2) Subparagraph (A) of section 965(b)(2) is amended by 
    inserting ``cash'' before ``dividends''.
        (3) Paragraph (3) of section 965(b) is amended by adding at the 
    end the following: ``The Secretary may prescribe such regulations 
    as may be necessary or appropriate to prevent the avoidance of the 
    purposes of this paragraph, including regulations which provide 
    that cash dividends shall not be taken into account under 
    subsection (a) to the extent such dividends are attributable to the 
    direct or indirect transfer (including through the use of 
    intervening entities or capital contributions) of cash or other 
    property from a related person (as so defined) to a controlled 
    foreign corporation.''.
        (4) Paragraph (1) of section 965(c) is amended to read as 
    follows:
        ``(1) Applicable financial statement.--The term `applicable 
    financial statement' means--
            ``(A) with respect to a United States shareholder which is 
        required to file a financial statement with the Securities and 
        Exchange Commission (or which is included in such a statement 
        so filed by another person), the most recent audited annual 
        financial statement (including the notes which form an integral 
        part of such statement) of such shareholder (or which includes 
        such shareholder)--
                ``(i) which was so filed on or before June 30, 2003, 
            and
                ``(ii) which was certified on or before June 30, 2003, 
            as being prepared in accordance with generally accepted 
            accounting principles, and
            ``(B) with respect to any other United States shareholder, 
        the most recent audited financial statement (including the 
        notes which form an integral part of such statement) of such 
        shareholder (or which includes such shareholder)--
                ``(i) which was certified on or before June 30, 2003, 
            as being prepared in accordance with generally accepted 
            accounting principles, and
                ``(ii) which is used for the purposes of a statement or 
            report--

                    ``(I) to creditors,
                    ``(II) to shareholders, or
                    ``(III) for any other substantial nontax 
                purpose.''.

        (5) Paragraph (2) of section 965(d) is amended by striking 
    ``properly allocated and apportioned'' and inserting ``directly 
    allocable''.
        (6) Subsection (d) of section 965 is amended by adding at the 
    end the following new paragraph:
        ``(4) Coordination with section 78.--Section 78 shall not apply 
    to any tax which is not allowable as a credit under section 901 by 
    reason of this subsection.''.
        (7) The last sentence of section 965(e)(1) is amended by 
    inserting ``which are imposed by foreign countries and possessions 
    of the United States and are'' after ``taxes''.
        (8) Subsection (f) of section 965 is amended by inserting ``on 
    or'' before ``before the due date''.
    (r) Amendments Related to Section 501 of the Act.--
        (1) Subparagraph (A) of section 164(b)(5) is amended to read as 
    follows:
            ``(A) Election to deduct state and local sales taxes in 
        lieu of state and local income taxes.--At the election of the 
        taxpayer for the taxable year, subsection (a) shall be 
        applied--
                ``(i) without regard to the reference to State and 
            local income taxes, and
                ``(ii) as if State and local general sales taxes were 
            referred to in a paragraph thereof.''.
        (2) Clause (ii) of section 56(b)(1)(A) is amended by inserting 
    ``or clause (ii) of section 164(b)(5)(A)'' before the period at the 
    end.
    (s) Amendments Related to Section 708 of the Act.--Section 708 of 
the American Jobs Creation Act of 2004 is amended--
        (1) in subsection (a), by striking ``contract commencement 
    date'' and inserting ``construction commencement date'', and
        (2) by redesignating subsection (d) as subsection (e) and 
    inserting after subsection (c) the following new subsection:
    ``(d) Certain Adjustments Not to Apply.--Section 481 of the 
Internal Revenue Code of 1986 shall not apply with respect to any 
change in the method of accounting which is required by this 
section.''.
    (t) Amendment Related to Section 710 of the Act.--Clause (i) of 
section 45(c)(7)(A) is amended by striking ``synthetic''.
    (u) Amendment Related to Section 801 of the Act.--Paragraph (3) of 
section 7874(a) is amended to read as follows:
        ``(3) Coordination with subsection (b).--A corporation which is 
    treated as a domestic corporation under subsection (b) shall not be 
    treated as a surrogate foreign corporation for purposes of 
    paragraph (2)(A).''.
    (v) Amendments Related to Section 804 of the Act.--
        (1) Subparagraph (C) of section 877(g)(2) is amended by 
    striking ``section 7701(b)(3)(D)(ii)'' and inserting ``section 
    7701(b)(3)(D)''.
        (2) Subsection (n) of section 7701 is amended to read as 
    follows:
    ``(n) Special Rules for Determining When an Individual Is No Longer 
a United States Citizen or Long-Term Resident.--For purposes of this 
chapter--
        ``(1) United states citizens.--An individual who would (but for 
    this paragraph) cease to be treated as a citizen of the United 
    States shall continue to be treated as a citizen of the United 
    States until such individual--
            ``(A) gives notice of an expatriating act (with the 
        requisite intent to relinquish citizenship) to the Secretary of 
        State, and
            ``(B) provides a statement in accordance with section 6039G 
        (if such a statement is otherwise required).
        ``(2) Long-term residents.--A long-term resident (as defined in 
    section 877(e)(2)) who would (but for this paragraph) be described 
    in section 877(e)(1) shall be treated as a lawful permanent 
    resident of the United States and as not described in section 
    877(e)(1) until such individual--
            ``(A) gives notice of termination of residency (with the 
        requisite intent to terminate residency) to the Secretary of 
        Homeland Security, and
            ``(B) provides a statement in accordance with section 6039G 
        (if such a statement is otherwise required).''.
    (w) Amendment Related to Section 811 of the Act.--Subsection (c) of 
section 811 of the American Jobs Creation Act of 2004 is amended by 
inserting ``and which were not filed before such date'' before the 
period at the end.
    (x) Amendments Related to Section 812 of the Act.--
        (1) Subsection (b) of section 6662 is amended by adding at the 
    end the following new sentence: ``Except as provided in paragraph 
    (1) or (2)(B) of section 6662A(e), this section shall not apply to 
    the portion of any underpayment which is attributable to a 
    reportable transaction understatement on which a penalty is imposed 
    under section 6662A.''.
        (2) Paragraph (2) of section 6662A(e) is amended to read as 
    follows:
        ``(2) Coordination with other penalties.--
            ``(A) Coordination with fraud penalty.--This section shall 
        not apply to any portion of an understatement on which a 
        penalty is imposed under section 6663.
            ``(B) Coordination with gross valuation misstatement 
        penalty.--This section shall not apply to any portion of an 
        understatement on which a penalty is imposed under section 6662 
        if the rate of the penalty is determined under section 
        6662(h).''.
        (3) Subsection (f) of section 812 of the American Jobs Creation 
    Act of 2004 is amended to read as follows:
    ``(f) Effective Dates.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall apply to taxable years ending 
    after the date of the enactment of this Act.
        ``(2) Disqualified opinions.--Section 6664(d)(3)(B) of the 
    Internal Revenue Code of 1986 (as added by subsection (c)) shall 
    not apply to the opinion of a tax advisor if--
            ``(A) the opinion was provided to the taxpayer before the 
        date of the enactment of this Act,
            ``(B) the opinion relates to one or more transactions all 
        of which were entered into before such date, and
            ``(C) the tax treatment of items relating to each such 
        transaction was included on a return or statement filed by the 
        taxpayer before such date.''.
    (y) Amendment Related to Section 814 of the Act.--Subparagraph (B) 
of section 6501(c)(10) is amended by striking ``(as defined in section 
6111)''.
    (z) Amendment Related to Section 815 of the Act.--Paragraph (1) of 
section 6112(b) is amended by inserting ``(or was required to maintain 
a list under subsection (a) as in effect before the enactment of the 
American Jobs Creation Act of 2004)'' after ``a list under subsection 
(a)''.
    (aa) Amendments Related to Section 832 of the Act.--
        (1) Subsection (e) of section 853 is amended to read as 
    follows:
    ``(e) Treatment of Certain Taxes Not Allowed as a Credit Under 
Section 901.--This section shall not apply to any tax with respect to 
which the regulated investment company is not allowed a credit under 
section 901 by reason of subsection (k) or (l) of such section.''.
        (2) Clause (i) of section 901(l)(2)(C) is amended by striking 
    ``if such security were stock''.
    (bb) Amendments Related to Section 833 of the Act.--
        (1) Subsection (a) of section 734 is amended by inserting 
    ``with respect to such distribution'' before the period at the end.
        (2) So much of subsection (b) of section 734 as precedes 
    paragraph (1) is amended to read as follows:
    ``(b) Method of Adjustment.--In the case of a distribution of 
property to a partner by a partnership with respect to which the 
election provided in section 754 is in effect or with respect to which 
there is a substantial basis reduction, the partnership shall--''.
    (cc) Amendment Related to Section 835 of the Act.--Paragraph (3) of 
section 860G(a) is amended--
        (1) in subparagraph (A)(iii)(I), by striking ``the obligation'' 
    and inserting ``a reverse mortgage loan or other obligation'', and
        (2) by striking all that follows subparagraph (C) and inserting 
    the following:
    ``For purposes of subparagraph (A), any obligation secured by stock 
    held by a person as a tenant-stockholder (as defined in section 
    216) in a cooperative housing corporation (as so defined) shall be 
    treated as secured by an interest in real property. For purposes of 
    subparagraph (A), any obligation originated by the United States or 
    any State (or any political subdivision, agency, or instrumentality 
    of the United States or any State) shall be treated as principally 
    secured by an interest in real property if more than 50 percent of 
    such obligations which are transferred to, or purchased by, the 
    REMIC are principally secured by an interest in real property 
    (determined without regard to this sentence).''.
    (dd) Amendments Related to Section 836 of the Act.--
        (1) Paragraph (1) of section 334(b) is amended by striking 
    ``except that'' and all that follows and inserting ``except that, 
    in the hands of such distributee--
            ``(A) the basis of such property shall be the fair market 
        value of the property at the time of the distribution in any 
        case in which gain or loss is recognized by the liquidating 
        corporation with respect to such property, and
            ``(B) the basis of any property described in section 
        362(e)(1)(B) shall be the fair market value of the property at 
        the time of the distribution in any case in which such 
        distributee's aggregate adjusted basis of such property would 
        (but for this subparagraph) exceed the fair market value of 
        such property immediately after such liquidation.''.
        (2) Clause (ii) of section 362(e)(2)(C) is amended to read as 
    follows:
                ``(ii) Election.--Any election under clause (i) shall 
            be made at such time and in such form and manner as the 
            Secretary may prescribe, and, once made, shall be 
            irrevocable.''.
    (ee) Amendment Related to Section 840 of the Act.--Subsection (d) 
of section 121 is amended--
        (1) by redesignating the paragraph (10) relating to property 
    acquired from a decedent as paragraph (11) and by moving such 
    paragraph to the end of such subsection, and
        (2) by amending the paragraph (10) relating to property 
    acquired in like-kind exchange to read as follows:
        ``(10) Property acquired in like-kind exchange.--If a taxpayer 
    acquires property in an exchange with respect to which gain is not 
    recognized (in whole or in part) to the taxpayer under subsection 
    (a) or (b) of section 1031, subsection (a) shall not apply to the 
    sale or exchange of such property by such taxpayer (or by any 
    person whose basis in such property is determined, in whole or in 
    part, by reference to the basis in the hands of such taxpayer) 
    during the 5-year period beginning with the date of such 
    acquisition.''.
    (ff) Amendment Related to Section 849 of the Act.--Subsection (a) 
of section 849 of the American Jobs Creation Act of 2004 is amended by 
inserting ``, and in the case of property treated as tax-exempt use 
property other than by reason of a lease, to property acquired after 
March 12, 2004'' before the period at the end.
    (gg) Amendment Related to Section 884 of the Act.--Subparagraph (B) 
of section 170(f)(12) is amended by adding at the end the following new 
clauses:
                ``(v) Whether the donee organization provided any goods 
            or services in consideration, in whole or in part, for the 
            qualified vehicle.
                ``(vi) A description and good faith estimate of the 
            value of any goods or services referred to in clause (v) 
            or, if such goods or services consist solely of intangible 
            religious benefits (as defined in paragraph (8)(B)), a 
            statement to that effect.''.
    (hh) Amendments Related to Section 885 of the Act.--
        (1) Paragraph (2) of section 26(b) is amended by striking 
    ``and'' at the end of subparagraph (R), by striking the period at 
    the end of subparagraph (S) and inserting ``, and'', and by adding 
    at the end the following new subparagraph:
            ``(T) subsections (a)(1)(B)(i) and (b)(4)(A) of section 
        409A (relating to interest and additional tax with respect to 
        certain deferred compensation).''.
        (2) Clause (ii) of section 409A(a)(4)(C) is amended by striking 
    ``first''.
        (3)(A) Notwithstanding section 885(d)(1) of the American Jobs 
    Creation Act of 2004, subsection (b) of section 409A of the 
    Internal Revenue Code of 1986 shall take effect on January 1, 2005.
        (B) Not later than 90 days after the date of the enactment of 
    this Act, the Secretary of the Treasury shall issue guidance under 
    which a nonqualified deferred compensation plan which is in 
    violation of the requirements of section 409A(b) of such Code shall 
    be treated as not having violated such requirements if such plan 
    comes into conformance with such requirements during such limited 
    period as the Secretary may specify in such guidance.
        (4) Subsection (f) of section 885 of the American Jobs Creation 
    Act of 2004 is amended by striking ``December 31, 2004'' the first 
    place it appears and inserting ``January 1, 2005''.
    (ii) Amendment Related to Section 888 of the Act.--Paragraph (2) of 
section 1092(a) is amended by striking the last sentence and adding at 
the end the following new subparagraph:
            ``(C) Regulations.--The Secretary shall prescribe such 
        regulations or other guidance as may be necessary or 
        appropriate to carry out the purposes of this paragraph. Such 
        regulations or other guidance may specify the proper methods 
        for clearly identifying a straddle as an identified straddle 
        (and for identifying the positions comprising such straddle), 
        the rules for the application of this section to a taxpayer 
        which fails to comply with those identification requirements, 
        and the ordering rules in cases where a taxpayer disposes (or 
        otherwise ceases to be the holder) of any part of any position 
        which is part of an identified straddle.''.
    (jj) Amendments Related to Section 898 of the Act.--
        (1) Paragraph (3) of section 361(b) is amended by inserting 
    ``(reduced by the amount of the liabilities assumed (within the 
    meaning of section 357(c)))'' before the period at the end.
        (2) Paragraph (1) of section 357(d) is amended by inserting 
    ``section 361(b)(3),'' after ``section 358(h),''.
    (kk) Amendment Related to Section 899 of the Act.--Subparagraph (A) 
of section 351(g)(3) is amended by adding at the end the following: 
``If there is not a real and meaningful likelihood that dividends 
beyond any limitation or preference will actually be paid, the 
possibility of such payments will be disregarded in determining whether 
stock is limited and preferred as to dividends.''.
    (ll) Amendment Related to Section 902 of the Act.--Paragraph (1) of 
section 709(b) is amended by striking ``taxpayer'' both places it 
appears and inserting ``partnership''.
    (mm) Amendments Related to Section 907 of the Act.--Clause (ii) of 
section 274(e)(2)(B) is amended--
        (1) in subclause (I), by inserting ``or a related party to the 
    taxpayer'' after ``the taxpayer'',
        (2) in subclause (II), by inserting ``(or such related party)'' 
    after ``the taxpayer'', and
        (3) by adding at the end the following new flush sentence:
            ``For purposes of this clause, a person is a related party 
            with respect to another person if such person bears a 
            relationship to such other person described in section 
            267(b) or 707(b).''.
    (nn) Effective Date.--The amendments made by this section shall 
take effect as if included in the provisions of the American Jobs 
Creation Act of 2004 to which they relate.

SEC. 404. AMENDMENTS RELATED TO THE WORKING FAMILIES TAX RELIEF ACT OF 
              2004.

    (a) Amendment Related to Section 201 of the Act.--Subsection (e) of 
section 152 is amended to read as follows:
    ``(e) Special Rule for Divorced Parents, Etc.--
        ``(1) In general.--Notwithstanding subsection (c)(1)(B), 
    (c)(4), or (d)(1)(C), if--
            ``(A) a child receives over one-half of the child's support 
        during the calendar year from the child's parents--
                ``(i) who are divorced or legally separated under a 
            decree of divorce or separate maintenance,
                ``(ii) who are separated under a written separation 
            agreement, or
                ``(iii) who live apart at all times during the last 6 
            months of the calendar year, and--
            ``(B) such child is in the custody of 1 or both of the 
        child's parents for more than one-half of the calendar year, 
        such child shall be treated as being the qualifying child or 
        qualifying relative of the noncustodial parent for a calendar 
        year if the requirements described in paragraph (2) or (3) are 
        met.
        ``(2) Exception where custodial parent releases claim to 
    exemption for the year.--For purposes of paragraph (1), the 
    requirements described in this paragraph are met with respect to 
    any calendar year if--
            ``(A) the custodial parent signs a written declaration (in 
        such manner and form as the Secretary may by regulations 
        prescribe) that such custodial parent will not claim such child 
        as a dependent for any taxable year beginning in such calendar 
        year, and
            ``(B) the noncustodial parent attaches such written 
        declaration to the noncustodial parent's return for the taxable 
        year beginning during such calendar year.
        ``(3) Exception for certain pre-1985 instruments.--
            ``(A) In general .--For purposes of paragraph (1), the 
        requirements described in this paragraph are met with respect 
        to any calendar year if--
                ``(i) a qualified pre-1985 instrument between the 
            parents applicable to the taxable year beginning in such 
            calendar year provides that the noncustodial parent shall 
            be entitled to any deduction allowable under section 151 
            for such child, and
                ``(ii) the noncustodial parent provides at least $600 
            for the support of such child during such calendar year.
        For purposes of this subparagraph, amounts expended for the 
        support of a child or children shall be treated as received 
        from the noncustodial parent to the extent that such parent 
        provided amounts for such support.
            ``(B) Qualified pre-1985 instrument.--For purposes of this 
        paragraph, the term `qualified pre-1985 instrument' means any 
        decree of divorce or separate maintenance or written 
        agreement--
                ``(i) which is executed before January 1, 1985,
                ``(ii) which on such date contains the provision 
            described in subparagraph (A)(i), and
                ``(iii) which is not modified on or after such date in 
            a modification which expressly provides that this paragraph 
            shall not apply to such decree or agreement.
        ``(4) Custodial parent and noncustodial parent.--For purposes 
    of this subsection--
            ``(A) Custodial parent.--The term `custodial parent' means 
        the parent having custody for the greater portion of the 
        calendar year.
            ``(B) Noncustodial parent.--The term `noncustodial parent' 
        means the parent who is not the custodial parent.
        ``(5) Exception for multiple-support agreement.--This 
    subsection shall not apply in any case where over one-half of the 
    support of the child is treated as having been received from a 
    taxpayer under the provision of subsection (d)(3).
        ``(6) Special rule for support received from new spouse of 
    parent.--For purposes of this subsection, in the case of the 
    remarriage of a parent, support of a child received from the 
    parent's spouse shall be treated as received from the parent.''.
    (b) Amendment Related to Section 203 of the Act.--Subparagraph (B) 
of section 21(b)(1) is amended by inserting ``(as defined in section 
152, determined without regard to subsections (b)(1), (b)(2), and 
(d)(1)(B))'' after ``dependent of the taxpayer''.
    (c) Amendment Related to Section 207 of the Act.--Subparagraph (A) 
of section 223(d)(2) is amended by inserting ``, determined without 
regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof'' after 
``section 152''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Working Families Tax 
Relief Act of 2004 to which they relate.

SEC. 405. AMENDMENTS RELATED TO THE JOBS AND GROWTH TAX RELIEF 
              RECONCILIATION ACT OF 2003.

    (a) Amendments Related to Section 201 of the Act.--
        (1) Clause (ii) of section 168(k)(4)(B) is amended to read as 
    follows:
                ``(ii) which is--

                    ``(I) acquired by the taxpayer after May 5, 2003, 
                and before January 1, 2005, but only if no written 
                binding contract for the acquisition was in effect 
                before May 6, 2003, or
                    ``(II) acquired by the taxpayer pursuant to a 
                written binding contract which was entered into after 
                May 5, 2003, and before January 1, 2005, and''.

        (2) Subparagraph (D) of section 1400L(b)(2) is amended by 
    striking ``September 11, 2004'' and inserting ``January 1, 2005''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in section 201 of the Jobs and Growth Tax Relief 
and Reconciliation Act of 2003.

SEC. 406. AMENDMENT RELATED TO THE VICTIMS OF TERRORISM TAX RELIEF ACT 
              OF 2001.

    (a) Amendment Related to Section 201 of the Act.--Paragraph (17) of 
section 6103(l) is amended by striking ``subsection (f), (i)(7), or 
(p)'' and inserting ``subsection (f), (i)(8), or (p)''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 201 of the Victims of Terrorism Tax 
Relief Act of 2001.

SEC. 407. AMENDMENTS RELATED TO THE ECONOMIC GROWTH AND TAX RELIEF 
              RECONCILIATION ACT OF 2001.

    (a) Amendments Related to Section 617 of the Act.--
        (1) Clause (ii) of section 402(g)(7)(A) is amended to read as 
    follows:
                ``(ii) $15,000 reduced by the sum of--

                    ``(I) the amounts not included in gross income for 
                prior taxable years by reason of this paragraph, plus
                    ``(II) the aggregate amount of designated Roth 
                contributions (as defined in section 402A(c)) for prior 
                taxable years, or''.

        (2) Subparagraph (A) of section 402(g)(1) is amended by 
    inserting ``to'' after ``shall not apply''.
    (b) Amendment Related to Section 632 of the Act.--Subparagraph (C) 
of section 415(c)(7) is amended by striking ``the greater of $3,000'' 
and all that follows and inserting ``$3,000. This subparagraph shall 
not apply with respect to any taxable year to any individual whose 
adjusted gross income for such taxable year (determined separately and 
without regard to community property laws) exceeds $17,000.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 to which they relate.

SEC. 408. AMENDMENTS RELATED TO THE INTERNAL REVENUE SERVICE 
              RESTRUCTURING AND REFORM ACT OF 1998.

    (a) Amendments Related to Section 3415 of the Act.--
        (1) Paragraph (2) of section 7609(c) is amended by inserting 
    ``or'' at the end of subparagraph (D), by striking ``; or'' at the 
    end of subparagraph (E) and inserting a period, and by striking 
    subparagraph (F).
        (2) Subsection (c) of section 7609 is amended by redesignating 
    paragraph (3) as paragraph (4) and by inserting after paragraph (2) 
    the following new paragraph:
        ``(3) John doe and certain other summonses.--Subsection (a) 
    shall not apply to any summons described in subsection (f) or 
    (g).''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in section 3415 of the Internal Revenue Service 
Restructuring and Reform Act of 1998.

SEC. 409. AMENDMENTS RELATED TO THE TAXPAYER RELIEF ACT OF 1997.

    (a) Amendments Related to Section 1055 of the Act.--
        (1) The last sentence of section 6411(a) is amended by striking 
    ``6611(f)(3)(B)'' and inserting ``6611(f)(4)(B)''.
        (2) Paragraph (4) of section 6601(d) is amended by striking 
    ``6611(f)(3)(A)'' and inserting ``6611(f)(4)(A)''.
    (b) Amendment Related to Section 1112 of the Act.--Subsection (c) 
of section 961 is amended to read as follows:
    ``(c) Basis Adjustments in Stock Held by Foreign Corporations.--
Under regulations prescribed by the Secretary, if a United States 
shareholder is treated under section 958(a)(2) as owning stock in a 
controlled foreign corporation which is owned by another controlled 
foreign corporation, then adjustments similar to the adjustments 
provided by subsections (a) and (b) shall be made to--
        ``(1) the basis of such stock, and
        ``(2) the basis of stock in any other controlled foreign 
    corporation by reason of which the United States shareholder is 
    considered under section 958(a)(2) as owning the stock described in 
    paragraph (1),
but only for the purposes of determining the amount included under 
section 951 in the gross income of such United States shareholder (or 
any other United States shareholder who acquires from any person any 
portion of the interest of such United States shareholder by reason of 
which such shareholder was treated as owning such stock, but only to 
the extent of such portion, and subject to such proof of identity of 
such interest as the Secretary may prescribe by regulations). The 
preceding sentence shall not apply with respect to any stock to which a 
basis adjustment applies under subsection (a) or (b).''.
    (c) Amendment Related to Section 1144 of the Act.--Subparagraph (B) 
of section 6038B(a)(1) is amended by inserting ``or'' at the end.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Taxpayer Relief Act of 
1997 to which they relate.

SEC. 410. AMENDMENT RELATED TO THE OMNIBUS BUDGET RECONCILIATION ACT OF 
              1990.

    (a) Amendment Related to Section 11813 of the Act.--Subclause (I) 
of section 168(e)(3)(B)(vi) is amended by striking ``if `solar and 
wind' were substituted for `solar' in clause (i) thereof'' and 
inserting ``if `solar or wind energy' were substituted for `solar 
energy' in clause (i) thereof''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 11813 of the Omnibus Budget 
Reconciliation Act of 1990.

SEC. 411. AMENDMENT RELATED TO THE OMNIBUS BUDGET RECONCILIATION ACT OF 
              1987.

    (a) Amendment Related to Section 10227 of the Act.--Section 1363(d) 
is amended by adding at the end the following new paragraph:
        ``(5) Special rule.--Sections 1367(a)(2)(D) and 1371(c)(1) 
    shall not apply with respect to any increase in the tax imposed by 
    reason of this subsection.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 10227 of the Omnibus Budget 
Reconciliation Act of 1987.

SEC. 412. CLERICAL CORRECTIONS.

    (a) Subparagraph (C) of section 2(b)(2) is amended by striking 
``subparagraph (C)'' and inserting ``subparagraph (B)''.
    (b) Paragraph (2) of section 25C(b) is amended by striking 
``subsection (c)(3)(B)'' and inserting ``subsection (c)(2)(B)''.
    (c) Subparagraph (E) of section 26(b)(2) is amended by striking 
``section 530(d)(3)'' and inserting ``section 530(d)(4)''.
    (d) Subparagraph (A) of section 30B(g)(2) and subparagraph (A) of 
section 30C(d)(2) are each amended by striking ``regular tax'' and 
inserting ``regular tax liability (as defined in section 26(b))''.
    (e) The table of sections for subpart B of part IV of subchapter A 
of chapter 1 is amended by striking the item relating to section 30C 
and inserting the following new item:
``Sec. 30C. Alternative fuel vehicle refueling property credit.''.
    (f)(1) Subclause (II) of section 38(c)(2)(A)(ii) is amended by 
striking ``or the New York Liberty Zone business employee credit or the 
specified credits'' and inserting ``, the New York Liberty Zone 
business employee credit, and the specified credits''.
    (2) Subclause (II) of section 38(c)(3)(A)(ii) is amended by 
striking ``or the specified credits'' and inserting ``and the specified 
credits''.
    (3) Subparagraph (B) of section 38(c)(4) is amended--
        (A) by striking ``includes'' and inserting ``means'', and
        (B) by inserting ``and'' at the end of clause (i).
    (g)(1) Subparagraph (A) of section 39(a)(1) is amended by striking 
``each of the 1 taxable years'' and inserting ``the taxable year''.
    (2) Subparagraph (B) of section 39(a)(3) is amended to read as 
follows:
            ``(B) paragraph (1) shall be applied by substituting `each 
        of the 5 taxable years' for `the taxable year' in subparagraph 
        (A) thereof, and''.
    (h) Subparagraph (B) of section 40A(b)(5) is amended by striking 
``(determined without regard to the last sentence of subsection 
(d)(2))''.
    (i) Paragraph (5) of section 43(c) is amended to read as follows:
        ``(5) Alaska natural gas.--For purposes of paragraph (1)(D)--
            ``(A) In general.--The term `Alaska natural gas' means 
        natural gas entering the Alaska natural gas pipeline (as 
        defined in section 168(i)(16) (determined without regard to 
        subparagraph (B) thereof)) which is produced from a well--
                ``(i) located in the area of the State of Alaska lying 
            north of 64 degrees North latitude, determined by excluding 
            the area of the Alaska National Wildlife Refuge (including 
            the continental shelf thereof within the meaning of section 
            638(1)), and
                ``(ii) pursuant to the applicable State and Federal 
            pollution prevention, control, and permit requirements from 
            such area (including the continental shelf thereof within 
            the meaning of section 638(1)).
            ``(B) Natural gas.--The term `natural gas' has the meaning 
        given such term by section 613A(e)(2).''.
    (j) Subsection (d) of section 45 is amended--
        (1) in paragraph (8) by striking ``The term'' and inserting 
    ``In the case of a facility that produces refined coal, the term'', 
    and
        (2) in paragraph (10) by striking ``The term'' and inserting 
    ``In the case of a facility that produces Indian coal, the term''.
    (k) Paragraph (2) of section 45I(a) is amended by striking 
``qualified credit oil production'' and inserting ``qualified crude oil 
production''.
    (l) Subsection (g) of section 45K, as redesignated by section 1322 
of the Energy Policy Act of 2005, is amended--
        (1) in the matter preceding paragraph (1), by striking 
    ``subsection (f)'' and inserting ``subsection (e)'', and
        (2) in paragraph (2)(C), by striking ``subsection (g)'' and 
    inserting ``subsection (f)''.
    (m) Paragraph (1) of section 48(a), as amended by section 1336 of 
the Energy Policy Act of 2005, is amended by striking ``paragraph 
(1)(B) or (2)(B) of subsection (d)'' and inserting ``paragraphs (1)(B) 
and (2)(B) of subsection (c)''.
    (n) Subparagraph (A) of section 48(a)(3) is amended--
        (1) by redesignating clause (iii) (relating to qualified fuel 
    cell property or qualified microturbine property), as added by 
    section 1336 of the Energy Policy Act of 2005, as clause (iv) and 
    by moving such clause to the end of such subparagraph, and
        (2) by striking ``or'' at the end of clause (ii).
    (o) Subparagraph (E) of section 50(a)(2) is amended by striking 
``section 48(a)(5)'' and inserting ``section 48(b)''.
    (p)(1) Paragraph (3) of section 55(c) is amended by inserting 
``30B(g)(2), 30C(d)(2),'' after ``30(b)(3),''.
    (2) Section 1341(b)(3) of the Energy Policy Act of 2005 is 
repealed.
    (3) Section 1342(b)(3) of the Energy Policy Act of 2005 is 
repealed.
    (q)(1) Subsection (a) of section 62 is amended--
        (A) by redesignating paragraph (19) (relating to costs 
    involving discrimination suits, etc.), as added by section 703 of 
    the American Jobs Creation Act of 2004, as paragraph (20), and
        (B) by moving such paragraph after paragraph (19) (relating to 
    health savings accounts).
    (2) Subsection (e) of section 62 is amended by striking 
``subsection (a)(19)'' and inserting ``subsection (a)(20)''.
    (r) Paragraph (3) of section 167(f) is amended by striking 
``section 197(e)(7)'' and inserting ``section 197(e)(6)''.
    (s) Subparagraph (D) of section 168(i)(15) is amended by striking 
``This paragraph shall not apply to'' and inserting ``Such term shall 
not include''.
    (t) Paragraph (2) of section 221(d) is amended by striking ``this 
Act'' and inserting ``the Taxpayer Relief Act of 1997''.
    (u) Paragraph (8) of section 318(b) is amended by striking 
``section 6038(d)(2)'' and inserting ``section 6038(e)(2)''.
    (v) Subparagraph (B) of section 332(d)(1) is amended by striking 
``distribution to which section 301 applies'' and inserting 
``distribution of property to which section 301 applies''.
    (w) Subparagraph (B) of section 403(b)(9) is amended by inserting 
``or'' before ``a convention''.
    (x)(1) Clause (i) of section 412(m)(4)(B) is amended by striking 
``subsection (c)'' and inserting ``subsection (d)''.
    (2) Clause (i) of section 302(e)(4)(B) of the Employee Retirement 
Income Security Act of 1974 is amended by striking ``subsection (c)'' 
and inserting ``subsection (d)''.
    (y) Paragraph (1) of section 415(l) is amended by striking 
``individual medical account'' and inserting ``individual medical 
benefit account''.
    (z) The matter following clause (iv) of section 415(n)(3)(C) is 
amended by striking ``clauses'' and inserting ``clause''.
    (aa) Subparagraph (C) of section 461(i)(3) is amended by striking 
``section 6662(d)(2)(C)(iii)'' and inserting ``section 
6662(d)(2)(C)(ii)''.
    (bb) Paragraph (12) of section 501(c) is amended--
        (1) by striking ``subparagraph (C)(iii)'' in subparagraph (F) 
    and inserting ``subparagraph (C)(iv)'', and
        (2) by striking ``subparagraph (C)(iv)'' in subparagraph (G) 
    and inserting ``subparagraph (C)(v)''.
    (cc) Clause (ii) of section 501(c)(22)(B) is amended by striking 
``clause (ii) of paragraph (21)(B)'' and inserting ``clause (ii) of 
paragraph (21)(D)''.
    (dd) Paragraph (1) of section 512(b) is amended by striking 
``section 512(a)(5)'' and inserting ``subsection (a)(5)''.
    (ee)(1) Subsection (b) of section 512 is amended--
        (A) by redesignating paragraph (18) (relating to the treatment 
    of gain or loss on sale or exchange of certain brownfield sites), 
    as added by section 702 of the American Jobs Creation Act of 2004, 
    as paragraph (19), and
        (B) by moving such paragraph to the end of such subsection.
    (2) Subparagraph (E) of section 514(b)(1) is amended by striking 
``section 512(b)(18)'' and inserting ``section 512(b)(19)''.
    (3) Paragraph (6) of section 529(c) is amended by striking 
``education individual retirement account'' and inserting ``Coverdell 
education savings account''.
    (ff)(1) Subsection (b) of section 530 is amended by striking 
paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs 
(3) and (4), respectively.
    (2) Clause (ii) of section 530(b)(2)(A) is amended by striking 
``paragraph (4)'' and inserting ``paragraph (3)''.
    (gg) Subparagraph (H) of section 613(c)(4) is amended by inserting 
``(including in situ retorting)'' after ``and retorting''.
    (hh) Subparagraph (A) of section 856(g)(5) is amended by striking 
``subsection (c)(6) or (c)(7) of section 856'' and inserting 
``paragraph (2), (3), or (4) of subsection (c)''.
    (ii) Paragraph (6) of section 857(b) is amended--
        (1) in subparagraph (E), by striking ``subparagraph (C)'' and 
    inserting ``subparagraphs (C) and (D)'', and
        (2) in subparagraph (F)--
            (A) by striking ``subparagraph (C) of this paragraph'' and 
        inserting ``subparagraph (C) or (D)'', and
            (B) by striking ``subparagraphs (C) and (D)'' and inserting 
        ``subparagraphs (C), (D), and (E)''.
    (jj) Subparagraph (C) of section 881(e)(1) is amended by inserting 
``interest-related dividend received by a controlled foreign 
corporation'' after ``shall apply to any''.
    (kk) Clause (ii) of section 952(c)(1)(B) is amended--
        (1) by striking ``clause (iii)(III) or (IV)'' and inserting 
    ``subclause (II) or (III) of clause (iii)'', and
        (2) by striking ``clause (iii)(II)'' and inserting ``clause 
    (iii)(I)''.
    (ll) Clause (i) of section 954(c)(1)(C) is amended by striking 
``paragraph (4)(A)'' and inserting ``paragraph (5)(A)''.
    (mm) Subparagraph (F) of section 954(c)(1) is amended by striking 
``Net income from notional principal contracts.'' after ``Income from 
notional principal contracts.--''.
    (nn) Paragraph (23) of section 1016(a) is amended by striking 
``1045(b)(4)'' and inserting ``1045(b)(3)''.
    (oo) Paragraph (1) of section 1256(f) is amended by striking 
``subsection (e)(2)(C)'' and inserting ``subsection (e)(2)''.
    (pp) The matter preceding clause (i) of section 1031(h)(2)(B) is 
amended by striking ``subparagraph'' and inserting ``subparagraphs''.
    (qq) Paragraphs (1) and (2) of section 1375(d) are each amended by 
striking ``subchapter C'' and inserting ``accumulated''.
    (rr) Each of the following provisions are amended by striking 
``General Accounting Office'' each place it appears therein and 
inserting ``Government Accountability Office'':
        (1) Clause (ii) of section 1400E(c)(4)(A).
        (2) Paragraph (1) of section 6050M(b).
        (3) Subparagraphs (A), (B)(i), and (B)(ii) of section 
    6103(i)(8).
        (4) Paragraphs (3)(C)(i), (4), (5), and (6)(B) of section 
    6103(p).
        (5) Subsection (e) of section 8021.
    (ss)(1) Clause (ii) of section 1400L(b)(2)(C) is amended by 
striking ``section 168(k)(2)(C)(i)'' and inserting ``section 
168(k)(2)(D)(i)''.
    (2) Clause (iv) of section 1400L(b)(2)(C) is amended by striking 
``section 168(k)(2)(C)(iii)'' and inserting ``section 
168(k)(2)(D)(iii)''.
    (3) Subparagraph (D) of section 1400L(b)(2) is amended by striking 
``section 168(k)(2)(D)'' and inserting ``section 168(k)(2)(E)''.
    (4) Subparagraph (E) of section 1400L(b)(2) is amended by striking 
``section 168(k)(2)(F)'' and inserting ``section 168(k)(2)(G)''.
    (5) Paragraph (5) of section 1400L(c) is amended by striking 
``section 168(k)(2)(C)(iii)'' and inserting ``section 
168(k)(2)(D)(iii)''.
    (tt) Section 3401 is amended by redesignating subsection (h) as 
subsection (g).
    (uu) Paragraph (2) of section 4161(a) is amended to read as 
follows:
        ``(2) 3 percent rate of tax for electric outboard motors.--In 
    the case of an electric outboard motor, paragraph (1) shall be 
    applied by substituting `3 percent' for `10 percent'.''.
    (vv) Subparagraph (C) of section 4261(e)(4) is amended by striking 
``imposed subsection (b)'' and inserting ``imposed by subsection (b)''.
    (ww) Subsection (a) of section 4980D is amended by striking 
``plans'' and inserting ``plan''.
    (xx) The matter following clause (iii) of section 6045(e)(5)(A) is 
amended by striking ``for `$250,000'.'' and all that follows through 
``to the Treasury.'' and inserting ``for `$250,000'. The Secretary may 
by regulation increase the dollar amounts under this subparagraph if 
the Secretary determines that such an increase will not materially 
reduce revenues to the Treasury.''.
    (yy) Subsection (p) of section 6103 is amended--
        (1) by striking so much of paragraph (4) as precedes 
    subparagraph (A) and inserting the following:
        ``(4) Safeguards.--Any Federal agency described in subsection 
    (h)(2), (h)(5), (i)(1), (2), (3), (5), or (7), (j)(1), (2), or (5), 
    (k)(8), (l)(1), (2), (3), (5), (10), (11), (13), (14), or (17) or 
    (o)(1), the Government Accountability Office, the Congressional 
    Budget Office, or any agency, body, or commission described in 
    subsection (d), (i)(3)(B)(i) or 7(A)(ii), or (l)(6), (7), (8), (9), 
    (12), (15), or (16) or any other person described in subsection 
    (l)(16), (18), (19), or (20) shall, as a condition for receiving 
    returns or return information--'',
        (2) by amending paragraph (4)(F)(i) to read as follows:
                ``(i) in the case of an agency, body, or commission 
            described in subsection (d), (i)(3)(B)(i), or (l)(6), (7), 
            (8), (9), or (16), or any other person described in 
            subsection (l)(16), (18), (19), or (20) return to the 
            Secretary such returns or return information (along with 
            any copies made therefrom) or make such returns or return 
            information undisclosable in any manner and furnish a 
            written report to the Secretary describing such manner,'', 
            and
        (3) by striking the first full sentence in the matter following 
    subparagraph (F) of paragraph (4) and inserting the following: ``If 
    the Secretary determines that any such agency, body, or commission, 
    including an agency or any other person described in subsection 
    (l)(16), (18), (19), or (20), or the Government Accountability 
    Office or the Congressional Budget Office, has failed to, or does 
    not, meet the requirements of this paragraph, he may, after any 
    proceedings for review established under paragraph (7), take such 
    actions as are necessary to ensure such requirements are met, 
    including refusing to disclose returns or return information to 
    such agency, body, or commission, including an agency or any other 
    person described in subsection (l)(16), (18), (19), or (20), or the 
    Government Accountability Office or the Congressional Budget 
    Office, until he determines that such requirements have been or 
    will be met.''.
    (zz) Clause (ii) of section 6111(b)(1)(A) is amended by striking 
``advice or assistance'' and inserting ``aid, assistance, or advice''.
    (aaa) Paragraph (3) of section 6662(d) is amended by striking 
``the'' before ``1 or more''.

SEC. 413. OTHER CORRECTIONS RELATED TO THE AMERICAN JOBS CREATION ACT 
              OF 2004.

    (a) Amendments Related to Section 233 of the Act.--
        (1) Clause (vi) of section 1361(c)(2)(A) is amended--
            (A) by inserting ``or a depository institution holding 
        company (as defined in section 3(w)(1) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813(w)(1))'' after ``a bank (as 
        defined in section 581)'', and
            (B) by inserting ``or company'' after ``such bank''.
        (2) Paragraph (16) of section 4975(d) is amended--
            (A) in subparagraph (A), by inserting ``or a depository 
        institution holding company (as defined in section 3(w)(1) of 
        the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1))'' 
        after ``a bank (as defined in section 581)'', and
            (B) in subparagraph (C), by inserting ``or company'' after 
        ``such bank''.
    (b) Amendment Related to Section 237 of the Act.--Subparagraph (F) 
of section 1362(d)(3) is amended by striking ``a bank holding company'' 
and all that follows through ``section 2(p) of such Act)'' and 
inserting ``a depository institution holding company (as defined in 
section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(w)(1))''.
    (c) Amendments Related to Section 239 of the Act.--Paragraph (3) of 
section 1361(b) is amended--
        (1) in subparagraph (A), by striking ``and in the case of 
    information returns required under part III of subchapter A of 
    chapter 61'', and
        (2) by adding at the end the following new subparagraph:
            ``(E) Information returns.--Except to the extent provided 
        by the Secretary, this paragraph shall not apply to part III of 
        subchapter A of chapter 61 (relating to information 
        returns).''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the American Jobs Creation 
Act of 2004 to which they relate.

                      Subtitle B--Trade Technicals

SEC. 421. TECHNICAL CORRECTIONS TO REGIONAL VALUE-CONTENT METHODS FOR 
              RULES OF ORIGIN UNDER PUBLIC LAW 109-53.

    Section 203(c) of the Dominican Republic-Central America-United 
States Free Trade Agreement Implementation Act (Public Law 109-53; 19 
U.S.C. 4033(c)) is amended as follows:
        (1) In paragraph (2)(A), by striking all that follows ``the 
    following build-down method:'' and inserting the following:

                                       av-vnm

                          ``rvc = -------- <greek-e> 100''.

                                         av

        (2) In paragraph (3)(A), by striking all that follows ``the 
    following build-up method:'' and inserting the following:

                                         vom

                           ``rvc = -------- <greek-e> 100''.

                                         av

        (3) In paragraph (4)(A), by striking all that follows ``the 
    following net cost method:'' and inserting the following:

                                       nc-vnm

                          ``rvc = -------- <greek-e> 100''.

                                         nc

                     TITLE V--EMERGENCY REQUIREMENT

SEC. 501. EMERGENCY REQUIREMENT.

    Any provision of this Act causing an effect on receipts, budget 
authority, or outlays is designated as an emergency requirement 
pursuant to section 402 of H. Con. Res. 95 (109th Congress).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.