[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1447 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1447

     To amend the Internal Revenue Code of 1986 to make technical 
                  corrections, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 21, 2005

  Mr. Grassley (for himself and Mr. Baucus) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to make technical 
                  corrections, and for other purposes.

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

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Tax Technical 
Corrections 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 for this Act is as 
follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
Sec. 2. Amendments related to the American Jobs Creation Act of 2004.
Sec. 3. Amendments related to the Working Families Tax Relief Act of 
                            2004.
Sec. 4. Amendments related to the Jobs and Growth Tax Relief 
                            Reconciliation Act of 2003.
Sec. 5. Amendment related to the Victims of Terrorism Tax Relief Act of 
                            2001.
Sec. 6. Amendment related to the Transportation Equity Act for the 21st 
                            Century.
Sec. 7. Amendments related to the Taxpayer Relief Act of 1997.
Sec. 8. Clerical corrections.
Sec. 9. Other corrections related to the American Jobs Creation Act of 
                            2004.

SEC. 2. 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) the deduction under this section 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) Subsection (d) of section 199, as amended by the 
        preceding paragraphs of this subsection, is further amended by 
        redesignating paragraph (8) as paragraph (9) and by inserting 
        after paragraph (7) the following new paragraph:
            ``(8) Coordination with carryover of net operating loss.--
        The deduction allowable under this section shall not be taken 
        into account for purposes of computing taxable income under 
        section 172(b)(2).''.
            (14) Paragraph (9) of section 199(d), as redesignated by 
        the preceding paragraphs of this subsection, 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.
            (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) 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,''.
            (18) 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) Amendments Related to Section 231 of the Act.--
            (1) Clause (ii) of section 1361(c)(1)(A) is amended by 
        inserting ``(and their estates)'' after ``all members of the 
        family''.
            (2) Subparagraph (C) of section 1361(c)(1) is amended to 
        read as follows:
                    ``(C) Effect of adoption, etc.--For purposes of 
                this paragraph, 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) if such securities--
                            ``(i) were held by such trust on October 
                        22, 2004, and continuously thereafter, 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 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)(i).''.
            (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) Amendment Related to Section 245 of the Act.--Subsection (b) of 
section 45G is amended to read as follows:
    ``(b) Limitation.--The credit allowed under subsection (a) for any 
taxable year shall not exceed the product of--
            ``(1) $3,500, and
            ``(2) the sum of--
                    ``(A) the number of miles of railroad track owned 
                or leased by the eligible taxpayer as of the close of 
                the taxable year, and
                    ``(B) 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.
        Any mile which is assigned by a taxpayer under paragraph (2)(B) 
        may not be taken into account by such taxpayer under paragraph 
        (2)(A).''.
    (g) Amendments Related to Section 248 of the Act.--
            (1) 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.''.
            (2) The last sentence of section 1354(b) is amended by 
        inserting ``on or'' after ``only if made''.
    (h) Amendment Related to Section 301 of the Act.--Section 6427 is 
amended by striking subsection (f).
    (i) 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''.
    (j) Amendments Related to Section 322 of the Act.--
            (1) Subparagraph (C) of section 49(a)(1) is amended by 
        inserting ``and'' at the end of clause (i), by striking ``and'' 
        at the end of clause (ii), and by striking clause (iii).
            (2)(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.''.
            (3) Subparagraph (C) of section 1245(a)(2) is amended by 
        striking ``or 193'' and inserting ``193, or 194''.
    (k) 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)''.
    (l) 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.''.
    (m) 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.''.
    (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.''.
    (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 by striking ``taxable years 
        beginning after the date of the enactment of this Act'' and 
        inserting ``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''.
    (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) Amendments Related to Section 710 of the Act.--
            (1) Clause (ii) of section 45(b)(4)(B) is amended by 
        striking ``the date of the enactment of this Act'' and 
        inserting ``January 1, 2005,''.
            (2) Clause (ii) of section 45(c)(3)(A) is amended by 
        inserting ``or any nonhazardous lignin waste material'' after 
        ``cellulosic waste material''.
            (3) Subsection (e) of section 45 is amended by striking 
        paragraph (6).
            (4)(A) Paragraph (9) of section 45(e) is amended to read as 
        follows:
            ``(9) Coordination with credit for producing fuel from a 
        nonconventional source.--
                    ``(A) In general.--The term `qualified facility' 
                shall not include any facility which produces 
                electricity from gas derived from the biodegradation of 
                municipal solid waste if such biodegradation occurred 
                in a facility (within the meaning of section 29) the 
                production from which is allowed as a credit under 
                section 29 for the taxable year or any prior taxable 
                year.
                    ``(B) Refined coal facilities.--The term `refined 
                coal production facility' shall not include any 
                facility the production from which is allowed as a 
                credit under section 29 for the taxable year or any 
                prior taxable year.''.
            (B) Subparagraph (C) of section 45(e)(8) is amended by 
        striking ``and (9)''.
            (5) Subclause (I) of section 168(e)(3)(B)(vi) is amended to 
        read as follows:
                                    ``(I) is described in subparagraph 
                                (A) of section 48(a)(3) (or would be so 
                                described if `solar and wind' were 
                                substituted for `solar' in clause (i) 
                                thereof and the last sentence of such 
                                section did not apply to such 
                                subparagraph),''.
            (6) Paragraph (4) of section 710(g) of the American Jobs 
        Creation Act of 2004 is amended by striking ``January 1, 2004'' 
        and inserting ``January 1, 2005''.
    (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(a)(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 ``(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) Amendments Related to Section 853 of the Act.--
            (1) Subparagraph (C) of section 4081(a)(2) is amended by 
        striking ``for use in commercial aviation'' and inserting ``for 
        use in commercial aviation by a person registered for such use 
        under section 4101''.
            (2) So much of paragraph (2) of section 4081(d) as precedes 
        subparagraph (A) is amended to read as follows:
            ``(2) Aviation fuels.--The rates of tax specified in 
        clauses (ii) and (iv) of subsection (a)(2)(A) shall be 4.3 
        cents per gallon--''.
    (hh) 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.''.
    (ii) 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''.
    (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) Amendment Related to Section 909 of the Act.--Clause (ii) of 
section 451(i)(4)(B) is amended by striking ``the close of the period 
applicable under subsection (a)(2)(B) as extended under paragraph (2)'' 
and inserting ``December 31, 2006''.
    (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. 3. AMENDMENTS RELATED TO THE WORKING FAMILIES TAX RELIEF ACT OF 
              2004.

    (a) Amendment Related to Section 201 of the Act.--Paragraph (2) of 
section 152(e) is amended to read as follows:
            ``(2) Requirements.--For purposes of paragraph (1), the 
        requirements described in this paragraph are met if--
                    ``(A) a decree of divorce or separate maintenance 
                or written separation agreement between the parents 
                applicable to the taxable year beginning in such 
                calendar year provides that the noncustodial parent 
                shall be entitled to any deduction allowable under 
                section 151 for such child, and in the case of such a 
                decree or agreement executed before January 1, 1985, 
                the noncustodial parent provides at least $600 for the 
                support of such child during such calendar year, or
                    ``(B) the custodial parent signs a written 
                declaration (in such manner and form as the Secretary 
                may prescribe) that such parent will not claim such 
                child as a dependent for such taxable year.
        For purposes of subparagraph (A), 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) 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. 4. 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 amendment 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. 5. 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. 6. AMENDMENT RELATED TO THE TRANSPORTATION EQUITY ACT FOR THE 21ST 
              CENTURY.

    (a) Amendment Related to Section 9005 of the Act.--The last 
sentence of paragraph (2) of section 9504(b) is amended by striking 
``subparagraph (B)'' and inserting ``subparagraph (C)''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 9005 of the Transportation Equity Act 
for the 21st Century.

SEC. 7. 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 1144 of the Act.--Subparagraph (B) 
of section 6038B(a)(1) is amended by inserting ``or'' at the end.
    (c) 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. 8. CLERICAL CORRECTIONS.

    (a) Subparagraph (C) of section 2(b)(2) is amended by striking 
``subparagraph (C)'' and inserting ``subparagraph (B)''.
    (b) Subparagraph (E) of section 26(b)(2) is amended by striking 
``section 530(d)(3)'' and inserting ``section 530(d)(4)''.
    (c)(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).
    (d)(1) Subparagraph (A) of section 39(a)(1) is amended by striking 
``each of the 1 taxable years'' and by 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''.
    (e) 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).''.
    (f) Paragraph (2) of section 45I(a) is amended by striking 
``qualified credit oil production'' and inserting ``qualified crude oil 
production''.
    (g) Subparagraph (E) of section 50(a)(2) is amended by striking 
``section 48(a)(5)'' and inserting ``section 48(b)''.
    (h)(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)''.
    (i) Paragraph (3) of section 167(f) is amended by striking 
``section 197(e)(7)'' and inserting ``section 197(e)(6)''.
    (j) Subparagraph (D) of section 168(i)(15) is amended by striking 
``This paragraph shall not apply to'' and inserting ``Such term shall 
not include''.
    (k) Paragraph (2) of section 221(d) is amended by striking ``this 
Act'' and inserting ``the Taxpayer Relief Act of 1997''.
    (l) Paragraph (8) of section 318(b) is amended by striking 
``section 6038(d)(2)'' and inserting ``section 6038(e)(2)''.
    (m) 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''.
    (n) Paragraph (1) of section 415(l) is amended by striking 
``individual medical account'' and inserting ``individual medical 
benefit account''.
    (o) The matter following clause (iv) of section 415(n)(3)(C) is 
amended by striking ``clauses'' and inserting ``clause''.
    (p) 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)''.
    (q) 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)''.
    (r) Paragraph (1) of section 512(b) is amended by striking 
``section 512(a)(5)'' and inserting ``subsection (a)(5)''.
    (s)(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)''.
    (t)(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)''.
    (u) Section 881(e)(1)(C) is amended by inserting ``interest-related 
dividend received by a controlled foreign corporation'' after ``shall 
apply to any''.
    (v) Clause (i) of section 954(c)(1)(C) is amended by striking 
``paragraph (4)(A)'' and inserting ``paragraph (5)(A)''.
    (w) Subparagraph (F) of section 954(c)(1) is amended by striking 
``Net income from notional principal contracts.'' after ``Income from 
notional principal contracts.--''.
    (x) Paragraph (23) of section 1016(a) is amended by striking 
``1045(b)(4)'' and inserting ``1045(b)(3)''.
    (y) Paragraph (1) of section 1256(f) is amended by striking 
``subsection (e)(2)(C)'' and inserting ``subsection (e)(2)''.
    (z) The matter preceding clause (i) of section 1031(h)(2)(B) is 
amended by striking ``subparagraph'' and inserting ``subparagraphs''.
    (aa) Paragraphs (1) and (2) of section 1375(d) are each amended by 
striking ``subchapter C'' and inserting ``accumulated''.
    (bb) 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.
    (cc)(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)''.
    (dd) Section 3401 is amended by redesignating subsection (h) as 
subsection (g).
    (ee) 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'.''.
    (ff) Subparagraph (C) of section 4261(e)(4) is amended by striking 
``imposed subsection (b)'' and inserting ``imposed by subsection (b)''.
    (gg) Subsection (a) of section 4980D is amended by striking 
``plans'' and inserting ``plan''.
    (hh) 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.''.
    (ii) 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.''.
    (jj) Clause (ii) of section 6111(b)(1)(A) is amended by striking 
``advice or assistance'' and inserting ``aid, assistance, or advice''.
    (kk) Section 6427 is amended by striking subsection (o) and by 
redesignating subsection (p) as subsection (o).
    (ll) Paragraph (3) of section 6662(d) is amended by striking 
``the'' before ``1 or more''.

SEC. 9. 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 information returns made by a qualified 
                subchapter S subsidiary under part III of subchapter A 
                of chapter 61.''.
    (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.
                                 <all>