[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 4026 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 4026

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 29, 2006

  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 2006''.
    (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; amendment of 1986 Code; table of contents.
Sec. 2. Amendments related to the Tax Increase Prevention and 
                            Reconciliation Act of 2005.
Sec. 3. Amendment related to the Gulf Opportunity Zone Act of 2005.
Sec. 4. Amendments related to the Safe, Accountable, Flexible, 
                            Efficient Transportation Equity Act: A 
                            Legacy for Users.
Sec. 5. Amendments related to the Energy Policy Act of 2005.
Sec. 6. Amendments related to the American Jobs Creation Act of 2004.
Sec. 7. Amendment related to the Jobs and Growth Tax Relief 
                            Reconciliation Act of 2003.
Sec. 8. Amendments related to the Economic Growth and Tax Relief 
                            Reconciliation Act of 2001.
Sec. 9. Amendment related to the Tax Relief Extension Act of 1999.
Sec. 10. Amendment related to the Internal Revenue Service 
                            Restructuring and Reform Act of 1998.
Sec. 11. Clerical corrections.

SEC. 2. AMENDMENTS RELATED TO THE TAX INCREASE PREVENTION AND 
              RECONCILIATION ACT OF 2005.

    (a) Amendments Related to Section 103 of the Act.--
            (1) Subparagraph (A) of section 954(c)(6) is amended--
                    (A) in the first sentence, by striking ``which is 
                not subpart F income'' and inserting ``which is neither 
                subpart F income nor income treated as effectively 
                connected with the conduct of a trade or business in 
                the United States'', and
                    (B) by striking the last sentence and inserting the 
                following: ``The Secretary shall prescribe such 
                regulations as may be necessary or appropriate to carry 
                out this paragraph, including such regulations as may 
                be necessary or appropriate to prevent the abuse of the 
                purposes of this paragraph.''.
            (2) Paragraph (6) of section 954(c) is amended by 
        redesignating subparagraph (B) as subparagraph (C) and 
        inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                in the case of any interest, rent, or royalty to the 
                extent such interest, rent, or royalty creates (or 
                increases) a deficit which under section 952(c) may 
                reduce the subpart F income of the payor or another 
                controlled foreign corporation.''.
    (b) Amendments Related to Section 202 of the Act.--
            (1) Subparagraph (B) of section 355(b)(3) is amended to 
        read as follows:
                    ``(B) Affiliated group rule.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), all members of such 
                        corporation's separate affiliated group shall 
                        be treated as one corporation.
                            ``(ii) Separate affiliated group.--For 
                        purposes of clause (i), the term `separate 
                        affiliated group' means, with respect to any 
                        corporation, the affiliated group which would 
                        be determined under section 1504(a) if such 
                        corporation were the common parent and section 
                        1504(b) did not apply. Such term shall not 
                        include any corporation which became a member 
                        of--
                                    ``(I) such separate affiliated 
                                group (determined without regard to 
                                this sentence), or
                                    ``(II) any other separate 
                                affiliated group (determined without 
                                regard to this sentence) which includes 
                                any other corporation to which 
                                subparagraph (A) applies with respect 
                                to the same distribution,
                        during the 5-year period described in paragraph 
                        (2)(B) by reason of one or more transactions in 
                        which gain or loss was recognized in whole or 
                        in part (and shall not include any trade or 
                        business conducted by such corporation at the 
                        time it became such a member).''.
            (2) Paragraph (3) of section 355(b) is amended by adding at 
        the end the following new subparagraph:
                    ``(E) Regulations.--The Secretary shall prescribe 
                regulations which provide for the proper application of 
                subparagraphs (B), (C), and (D) of paragraph (2) with 
                respect to distributions to which this paragraph 
                applies.''.
    (c) Amendments Related to Section 515 of the Act.--Paragraph (2) of 
section 911(f) is amended--
            (1) by striking ``the tentative minimum tax under section 
        55'' in the matter preceding subparagraph (A) and inserting 
        ``the amount determined under the first sentence of section 
        55(b)(1)(A)(i)'', and
            (2) by striking ``the amount which would be such tentative 
        minimum tax'' each place it appears in subparagraphs (A) and 
        (B) and inserting ``the amount which would be determined under 
        such sentence''.
    (d) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the Tax Increase Prevention 
and Reconciliation Act of 2005 to which they relate.

SEC. 3. AMENDMENT RELATED TO THE GULF OPPORTUNITY ZONE ACT OF 2005.

    (a) Amendment Related to Section 303 of the Act.--Clause (iii) of 
section 903(d)(2)(B) of the American Jobs Creation Act of 2004, as 
amended by section 303 of the Gulf Opportunity Zone Act of 2005, is 
amended by inserting ``or the Secretary's delegate'' after ``The 
Secretary of the Treasury''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 303 of the Gulf Opportunity Zone Act 
of 2005.

SEC. 4. AMENDMENTS RELATED TO THE SAFE, ACCOUNTABLE, FLEXIBLE, 
              EFFICIENT TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS.

    (a) Amendments Related to Section 11113 of the Act.--Paragraph (3) 
of section 6427(i) is amended--
            (1) by inserting ``or under subsection (e)(2) by any person 
        with respect to an alternative fuel (as defined in section 
        6426(d)(2))'' after ``section 6426'' in subparagraph (A),
            (2) by inserting ``or (e)(2)'' after ``subsection (e)(1)'' 
        in subparagraphs (A)(i) and (B), and
            (3) by inserting ``and alternative fuel credit'' after 
        ``mixture credit'' in the heading thereof.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the provisions of the SAFETEA-LU to which they 
relate.

SEC. 5. AMENDMENTS RELATED TO THE ENERGY POLICY ACT OF 2005.

    (a) Amendment Related to Section 1306 of the Act.--Paragraph (2) of 
section 45J(b) is amended to read as follows:
            ``(2) Amount of national limitation.--The aggregate amount 
        of national megawatt capacity limitation allocated by the 
        Secretary under paragraph (3) shall not exceed 6,000 
        megawatts.''.
    (b) Amendment Related to Section 1342 of the Act.--So much of 
subsection (b) of section 30C as precedes paragraph (1) thereof is 
amended to read as follows:
    ``(b) Limitation.--The credit allowed under subsection (a) with 
respect to all alternative fuel vehicle refueling property placed in 
service by the taxpayer during the taxable year at a location shall not 
exceed--''.
    (c) Amendments Related to Section 1351 of the Act.--
            (1) Paragraph (3) of section 41(a) is amended by inserting 
        ``for energy research'' before the period at the end.
            (2) Paragraph (6) of section 41(f) is amended by adding at 
        the end the following new subparagraph:
                    ``(E) Energy research.--The term `energy research' 
                does not include any research which is not qualified 
                research.''.
    (d) Amendments Related to Section 1362 of the Act.--
            (1)(A) Paragraph (1) of section 4041(d) is amended by 
        adding at the end the following new sentence: ``No tax shall be 
        imposed under the preceding sentence on the sale or use of any 
        liquid if tax was imposed with respect to such liquid under 
        section 4081 at the Leaking Underground Storage Tank Trust Fund 
        financing rate.''.
            (B) Paragraph (3) of section 4042(b) is amended to read as 
        follows:
            ``(3) Exception for fuel on which leaking underground 
        storage tank trust fund financing rate separately imposed.--The 
        Leaking Underground Storage Tank Trust Fund financing rate 
        under paragraph (2)(B) shall not apply to the use of any fuel 
        if tax was imposed with respect to such fuel under section 
        4041(d) or 4081 at the Leaking Underground Storage Tank Trust 
        Fund financing rate.''.
            (C) Notwithstanding section 6430 of the Internal Revenue 
        Code of 1986, a refund, credit, or payment may be made under 
        subchapter B of chapter 65 of such Code for taxes imposed with 
        respect to any liquid after September 30, 2005, and before the 
        date of the enactment of this Act under section 4041(d)(1) or 
        4042 of such Code at the Leaking Underground Storage Tank Trust 
        Fund financing rate to the extent that tax was imposed with 
        respect to such liquid under section 4081 at the Leaking 
        Underground Storage Tank Trust Fund financing rate.
            (2)(A) Paragraph (5) of section 4041(d) is amended--
                    (i) by striking ``(other than with respect to any 
                sale for export under paragraph (3) thereof)'', and
                    (ii) by adding at the end the following new 
                sentence: ``The preceding sentence shall not apply with 
                respect to subsection (g)(3) and so much of subsection 
                (g)(1) as relates to vessels (within the meaning of 
                section 4221(d)(3)) employed in foreign trade or trade 
                between the United States and any of its possessions.''
            (B) Section 4082 is amended--
                    (i) by striking ``(other than such tax at the 
                Leaking Underground Storage Tank Trust Fund financing 
                rate imposed in all cases other than for export)'' in 
                subsection (a), and
                    (ii) by redesignating subsections (f) and (g) as 
                subsections (g) and (h) and by inserting after 
                subsection (e) the following new subsection:
    ``(f) Exception for Leaking Underground Storage Tank Trust Fund 
Financing Rate.--
            ``(1) In general.--Subsection (a) shall not apply to the 
        tax imposed under section 4081 at the Leaking Underground 
        Storage Tank Trust Fund financing rate.
            ``(2) Exception for export, etc.--Paragraph (1) shall not 
        apply with respect to any fuel if the Secretary determines that 
        such fuel is destined for export or for use by the purchaser as 
        supplies for vessels (within the meaning of section 4221(d)(3)) 
        employed in foreign trade or trade between the United States 
        and any of its possessions.''.
            (C) Subsection (e) of section 4082 is amended--
                    (i) by striking ``an aircraft, the rate of tax 
                under section 4081(a)(2)(A)(iii) shall be zero.'' and 
                inserting ``an aircraft--
            ``(1) the rate of tax under section 4081(a)(2)(A)(iii) 
        shall be zero, and
            ``(2) if such aircraft is employed in foreign trade or 
        trade between the United States and any of its possessions, the 
        increase in such rate under section 4081(a)(2)(B) shall be 
        zero.''; and
                    (ii) by moving the last sentence flush with the 
                margin of such subsection (following the paragraph (2) 
                added by clause (i)).
            (D) Section 6430 is amended to read as follows:

``SEC. 6430. TREATMENT OF TAX IMPOSED AT LEAKING UNDERGROUND STORAGE 
              TANK TRUST FUND FINANCING RATE.

    ``No refunds, credits, or payments shall be made under this 
subchapter for any tax imposed at the Leaking Underground Storage Tank 
Trust Fund financing rate, except in the case of fuels--
            ``(1) which are exempt from tax under section 4081(a) by 
        reason of section 4081(f)(2),
            ``(2) which are exempt from tax under section 4041(d) by 
        reason of the last sentence of paragraph (5) thereof, or
            ``(3) with respect to which the rate increase under section 
        4081(a)(2)(B) is zero by reason of section 4082(e)(2).''.
            (3) Paragraph (5) of section 4041(d) is amended by 
        inserting ``(b)(1)(A)'' after ``subsections''.
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, 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) Nonapplication of exemption for off-highway business 
        use.--The amendment made by subsection (d)(3) shall apply to 
        fuel sold for use or used after the date of the enactment of 
        this Act.
            (3) Amendment made by the safetea-lu.--The amendment made 
        by subsection (d)(2)(C)(ii) shall take effect as if included in 
        section 11161 of the SAFETEA-LU.

SEC. 6. AMENDMENTS RELATED TO THE AMERICAN JOBS CREATION ACT OF 2004.

    (a) Amendments Related to Section 710 of the Act.--
            (1) Clause (ii) of section 45(c)(3)(A) is amended by 
        striking ``which is segregated from other waste materials 
        and''.
            (2) Subparagraph (B) of section 45(d)(2) is amended by 
        inserting ``and'' at the end of clause (i), by striking clause 
        (ii), and by redesignating clause (iii) as clause (ii).
    (b) Amendments Related to Section 848 of the Act.--
            (1) Section 470 is amended by redesignating subsections 
        (e), (f), and (g) as subsections (f), (g), and (h) and by 
        inserting after subsection (d) the following new subsection:
    ``(e) Exception for Certain Partnerships.--
            ``(1) In general.--In the case of any property which would 
        (but for this subsection) be tax-exempt use property solely by 
        reason of section 168(h)(6), such property shall not be treated 
        as tax-exempt use property for purposes of this section for any 
        taxable year of the partnership if--
                    ``(A) such property is not property of a character 
                subject to the allowance for depreciation,
                    ``(B) any credit is allowable under section 42 or 
                47 with respect to such property, or
                    ``(C) except as provided in regulations prescribed 
                by the Secretary under subsection (h)(4), the 
                requirements of paragraphs (2) and (3) are met with 
                respect to such property for such taxable year.
            ``(2) Availability of funds.--
                    ``(A) In general.--The requirement of this 
                paragraph is met for any taxable year with respect to 
                any property owned by the partnership if (at all times 
                during the taxable year) not more than the allowable 
                partnership amount of funds are--
                            ``(i) subject to any arrangement referred 
                        to in subparagraph (C), or
                            ``(ii) set aside or expected to be set 
                        aside,
                to or for the benefit of any taxable partner of the 
                partnership or any lender, or to or for the benefit of 
                any tax-exempt partner of the partnership to satisfy 
                any obligation of such tax-exempt partners to the 
                partnership, any taxable partner of the partnership, or 
                any lender.
                    ``(B) Allowable partnership amount.--For purposes 
                of this subsection, the term `allowable partnership 
                amount' means, as of any date, the greater of--
                            ``(i) the sum of--
                                    ``(I) 20 percent of the sum of the 
                                taxable partners' capital accounts 
                                determined as of such date under the 
                                rules of section 704(b), plus
                                    ``(II) 20 percent of the sum of the 
                                taxable partners' share of the recourse 
                                liabilities of the partnership as 
                                determined under section 752, or
                            ``(ii) 20 percent of the aggregate debt of 
                        the partnership as of such date.
                            ``(iii) No allowable partnership amount for 
                        arrangements outside the partnership.--The 
                        allowable partnership amount shall be zero with 
                        respect to any set aside or arrangement under 
                        which any of the funds referred to in 
                        subparagraph (A) are not partnership property.
                    ``(C) Arrangements.--The arrangements referred to 
                in this subparagraph include a loan by a tax-exempt 
                partner or the partnership to any taxable partner, the 
                partnership, or any lender and any arrangement referred 
                to in subsection (d)(1)(B).
                    ``(D) Special rules.--
                            ``(i) Exception for short-term funds.--
                        Funds which are set aside, or subject to any 
                        arrangement, for a period of less than 12 
                        months shall not be taken into account under 
                        subparagraph (A). Except as provided by the 
                        Secretary, all related set asides and 
                        arrangements shall be treated as 1 arrangement 
                        for purposes of this clause.
                            ``(ii) Economic relationship test.--Funds 
                        shall not be taken into account under 
                        subparagraph (A) if such funds--
                                    ``(I) bear no connection to the 
                                economic relationships among the 
                                partners, and
                                    ``(II) bear no connection to the 
                                economic relationships among the 
                                partners and the partnership.
                            ``(iii) Reasonable person standard.--For 
                        purpose of subparagraph (A)(ii), funds shall be 
                        treated as set aside or expected to be set 
                        aside only if a reasonable person would 
                        conclude, based on the facts and circumstances, 
                        that such funds are set aside or expected to be 
                        set aside.
            ``(3) Option to purchase.--
                    ``(A) In general.--The requirement of this 
                paragraph is met for any taxable year with respect to 
                any property owned by the partnership if (at all times 
                during such taxable year)--
                            ``(i) each tax-exempt partner does not have 
                        an option to purchase (or compel distribution 
                        of) such property or any direct or indirect 
                        interest in the partnership at any time other 
                        than at the fair market value of such property 
                        or interest at the time of such purchase or 
                        distribution, and
                            ``(ii) the partnership and each taxable 
                        partner does not have an option to sell (or 
                        compel distribution of) such property or any 
                        direct or indirect interest in the partnership 
                        to a tax-exempt partner at any time other than 
                        at the fair market value of such property or 
                        interest at the time of such sale or 
                        distribution.
                    ``(B) Option for determination of fair market 
                value.--Under regulations prescribed by the Secretary, 
                a value of property determined on the basis of a 
                formula shall be treated for purposes of subparagraph 
                (A) as the fair market value of such property if such 
                value is determined on the basis of objective criteria 
                that are reasonably designed to approximate the fair 
                market value of such property at the time of the 
                purchase, sale, or distribution, as the case may be.''.
            (2) Subsection (g) of section 470, as redesignated by 
        paragraph (1), is amended by adding at the end the following 
        new paragraphs:
            ``(5) Tax-exempt partner.--The term `tax-exempt partner' 
        means, with respect to any partnership, any partner of such 
        partnership which is a tax-exempt entity within the meaning of 
        section 168(h)(6).
            ``(6) Taxable partner.--The term `taxable partner' means, 
        with respect to any partnership, any partner of such 
        partnership which is not a tax-exempt partner.''.
            (3) Subsection (h) of section 470, as redesignated by 
        paragraph (1), is amended--
                    (A) by striking ``, and'' at the end of paragraph 
                (1) and inserting ``or owned by the same 
                partnership,'',
                    (B) by striking the period at the end of paragraph 
                (2) and inserting a comma, and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) provide for the application of this section to tiered 
        and other related partnerships, and
            ``(4) provide for the treatment of partnership property 
        (other than property described in subsection (e)(1)(A)) as tax-
        exempt use property if such property is used in an arrangement 
        which is inconsistent with the purposes of this section 
        determined by taking into account one or more of the following 
        factors:
                    ``(A) A tax-exempt partner maintains physical 
                possession or control or holds the benefits and burdens 
                of ownership with respect to such property.
                    ``(B) There is insignificant equity investment in 
                such property by any taxable partner.
                    ``(C) The transfer of such property to the 
                partnership does not result in a change in use of such 
                property.
                    ``(D) Such property is necessary for the provision 
                of government services.
                    ``(E) The deductions for depreciation with respect 
                to such property are allocated disproportionately to 
                one or more taxable partners relative to such partner's 
                risk of loss with respect to such property or to such 
                partner's allocation of other partnership items.
                    ``(F) Such other factors as the Secretary may 
                determine.''.
            (4) Paragraph (2) of section 470(c) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (A), by redesignating subparagraph (B) as subparagraph 
                (C), and by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) by treating the entire property as tax-exempt 
                use property if any portion of such property is treated 
                as tax-exempt use property by reason of paragraph (6) 
                thereof.'', and
                    (B) by striking the flush sentence at the end.
            (5) Subparagraph (A) of section 470(d)(1) is amended by 
        striking ``(at any time during the lease term)'' and inserting 
        ``(at all times during the lease term)''.
    (c) Amendments Related to Section 888 of the Act.--
            (1) Subparagraph (A) of section 1092(a)(2) is amended by 
        striking ``and'' at the end of clause (ii), by redesignating 
        clause (iii) as clause (iv), and by inserting after clause (ii) 
        the following new clause:
                            ``(iii) if the application of clause (ii) 
                        does not result in an increase in the basis of 
                        any offsetting position in the identified 
                        straddle, the basis of each of the offsetting 
                        positions in the identified straddle shall be 
                        increased in a manner which--
                                    ``(I) is reasonable, consistent 
                                with the purposes of this paragraph, 
                                and consistently applied by the 
                                taxpayer, and
                                    ``(II) results in an aggregate 
                                increase in the basis of such 
                                offsetting positions which is equal to 
                                the loss described in clause (ii), 
                                and''.
            (2)(A) Subparagraph (B) of section 1092(a)(2) is amended by 
        adding at the end the following flush sentence:
                ``A straddle shall be treated as clearly identified for 
                purposes of clause (i) only if such identification 
                includes an identification of the positions in the 
                straddle which are offsetting with respect other 
                positions in the straddle.''.
            (B) Subparagraph (A) of section 1092(a)(2) is amended--
                    (i) by striking ``identified positions'' in clause 
                (i) and inserting ``positions'',
                    (ii) by striking ``identified position'' in clause 
                (ii) and inserting ``position'', and
                    (iii) by striking ``identified offsetting 
                positions'' in clause (ii) and inserting ``offsetting 
                positions''.
            (C) Subparagraph (B) of section 1092(a)(3) is amended by 
        striking ``identified offsetting position'' and inserting 
        ``offsetting position''.
            (3) Paragraph (2) of section 1092(a) is amended by 
        redesignating subparagraph (C) as subparagraph (D) and 
        inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) Application to liabilities and obligations.--
                Except as otherwise provided by the Secretary, rules 
                similar to the rules of clauses (ii) and (iii) of 
                subparagraph (A) shall apply for purposes of this 
                paragraph with respect to any position which is, or has 
                been, a liability or obligation.''.
            (4) Subparagraph (D) of section 1092(a)(2), as redesignated 
        by paragraph (3), is amended by inserting ``the rules for the 
        application of this section to a position which is or has been 
        a liability or obligation, methods of loss allocation which 
        satisfy the requirements of subparagraph (A)(iii),'' before 
        ``and the ordering rules''.
    (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.

SEC. 7. AMENDMENT RELATED TO THE JOBS AND GROWTH TAX RELIEF 
              RECONCILIATION ACT OF 2003.

    (a) Amendment Related to Section 302 of the Act.--Clause (ii) of 
section 1(h)(11)(B) is amended by striking ``and'' at the end of 
subclause (II), by striking the period at the end of subclause (III) 
and inserting ``, and'', and by adding at the end the following new 
subclause:
                                    ``(IV) any dividend received from a 
                                corporation which is a DISC or former 
                                DISC (as defined in section 992(a)) to 
                                the extent such dividend is paid out of 
                                the corporation's accumulated DISC 
                                income or is a deemed distribution 
                                pursuant to section 995(b)(1).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dividends received on or after September 29, 2006, in taxable years 
ending after such date.

SEC. 8. AMENDMENTS RELATED TO THE ECONOMIC GROWTH AND TAX RELIEF 
              RECONCILIATION ACT OF 2001.

    (a) Amendments Related to Section 617 of the Act.--
            (1) Subclause (II) of section 402(g)(7)(A)(ii) is amended 
        by striking ``for prior taxable years'' and inserting 
        ``permitted for prior taxable years by reason of this 
        paragraph''.
            (2) Subparagraph (A) of section 3121(v)(1) is amended by 
        inserting ``or consisting of designated Roth contributions (as 
        defined in section 402A(c))'' before the comma at the end.
    (b) 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. 9. AMENDMENT RELATED TO THE TAX RELIEF EXTENSION ACT OF 1999.

    (a) Amendment Related to Section 507 of the Act.--Clause (i) of 
section 45(e)(7)(A) is amended by striking ``placed in service by the 
taxpayer'' and inserting ``originally placed in service''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 507 of the Tax Relief Extension Act of 
1999.

SEC. 10. AMENDMENT RELATED TO THE INTERNAL REVENUE SERVICE 
              RESTRUCTURING AND REFORM ACT OF 1998.

    (a) Amendment Related to Section 3509 of the Act.--Paragraph (3) of 
section 6110(i) is amended by inserting ``and related background file 
documents'' after ``Chief Counsel advice'' in the matter preceding 
subparagraph (A).
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the provision of the Internal Revenue Service 
Restructuring and Reform Act of 1998 to which it relates.

SEC. 11. CLERICAL CORRECTIONS.

    (a) In General.--
            (1) Paragraph (5) of section 21(e) is amended by striking 
        ``section 152(e)(3)(A)'' in the flush matter after subparagraph 
        (B) and inserting ``section 152(e)(4)(A)''.
            (2) Paragraph (3) of section 25C(c) is amended by striking 
        ``section 3280'' and inserting ``part 3280''.
            (3) Subsection (a) of section 34 is amended--
                    (A) in paragraph (1), by striking ``with respect to 
                gasoline used during the taxable year on a farm for 
                farming purposes'',
                    (B) in paragraph (2), by striking ``with respect to 
                gasoline used during the taxable year (A) otherwise 
                than as a fuel in a highway vehicle or (B) in vehicles 
                while engaged in furnishing certain public passenger 
                land transportation service'', and
                    (C) in paragraph (3), by striking ``with respect to 
                fuels used for nontaxable purposes or resold during the 
                taxable year''.
            (4) Paragraph (2) of section 35(d) is amended--
                    (A) by striking ``paragraph (2) or (4) of'', and
                    (B) by striking ``(within the meaning of section 
                152(e)(1))'' and inserting ``(as defined in section 
                152(e)(4)(A))''.
            (5) Paragraph (24) of section 38(b) is amended by striking 
        ``and'' at the end.
            (6) Paragraphs (2) and (3) of section 45L(c) are each 
        amended by striking ``section 3280'' and inserting ``part 
        3280''.
            (7) Clause (ii) of section 48A(d)(4)(B) is amended by 
        striking ``subsection'' both places it appears.
            (8) The last sentence of section 125(b)(2) is amended by 
        striking ``last sentence'' and inserting ``second sentence''.
            (9) Subclause (II) of section 167(g)(8)(C)(ii) is amended 
        by striking ``section 263A(j)(2)'' and inserting ``section 
        263A(i)(2)''.
            (10) Subparagraph (G) of section 1260(c)(2) is amended by 
        adding ``and'' at the end.
            (11) Paragraph (2) of section 1297(a) is amended by 
        striking ``subsection (e)'' and inserting ``subsection (f)''.
            (12) Paragraph (2) of section 1400O is amended by striking 
        ``under of'' and inserting ``under''.
            (13) 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. 1400T. Special rules for mortgage revenue bonds.''.
            (14) Subsection (b) of section 4082 is amended to read as 
        follows:
    ``(b) Nontaxable Use.--For purposes of this section, the term 
`nontaxable use' means--
            ``(1) any use which is exempt from the tax imposed by 
        section 4041(a)(1) other than by reason of a prior imposition 
        of tax,
            ``(2) any use in a train, and
            ``(3) any use described in section 4041(a)(1)(C)(iii)(II).
The term `nontaxable use' does not include the use of kerosene in an 
aircraft and such term shall not include any use described in section 
6421(e)(2)(C).''.
            (15) Paragraph (4) of section 4101(a) (relating to 
        registration in event of change of ownership) is redesignated 
        as paragraph (5).
            (16) Paragraph (6) of section 4965(c) is amended by 
        striking ``section 4457(e)(1)(A)'' and inserting ``section 
        457(e)(1)(A)''.
            (17) Subpart C of part II of subchapter A of chapter 51 is 
        amended by redesignating section 5432 (relating to 
        recordkeeping by wholesale dealers) as section 5121.
            (18) Paragraph (2) of section 5732(c), as redesignated by 
        section 11125(b)(20)(A) of the SAFETEA-LU, is amended by 
        striking ``this subpart'' and inserting ``this subchapter''.
            (19) Paragraph (3) of section 6427(e) (relating to 
        termination), as added by section 11113 of the SAFETEA-LU, is 
        redesignated as paragraph (5) and moved after paragraph (4).
            (20) Clause (ii) of section 6427(l)(4)(A) is amended by 
        striking ``section 4081(a)(2)(iii)'' and inserting ``section 
        4081(a)(2)(A)(iii)''.
            (21)(A) Section 6427, as amended by section 1343(b)(1) of 
        the Energy Policy Act of 2005, is amended by striking 
        subsection (p) and redesignating subsection (q) as subsection 
        (p).
            (B) The Internal Revenue Code of 1986 shall be applied and 
        administered as if the amendments made by paragraph (2) of 
        section 11151(a) of the SAFETEA-LU had never been enacted.
            (22)(A) Paragraph (3) of section 9002 is amended by 
        striking ``section 309(a)(1)'' and inserting ``section 
        306(a)(1)''.
            (B) Paragraph (1) of section 9004(a) is amended by striking 
        ``section 320(b)(1)(B)'' and inserting ``section 
        315(b)(1)(B)''.
            (C) Paragraph (3) of section 9032 is amended by striking 
        ``section 309(a)(1)'' and inserting ``section 306(a)(1)''.
            (D) Subsection (b) of section 9034 is amended by striking 
        ``section 320(b)(1)(A)'' and inserting ``section 
        315(b)(1)(A)''.
            (23) Section 9006 is amended by striking ``Comptroller 
        General'' each place it appears and inserting ``Commission''.
            (24) Subsection (c) of section 9503 is amended by 
        redesignating paragraph (7) (relating to transfers from the 
        trust fund for certain aviation fuels taxes) as paragraph (6).
            (25) Paragraph (1) of section 1301(g) of the Energy Policy 
        Act of 2005 is amended by striking ``shall take effect of the 
        date of the enactment'' and inserting ``shall take effect on 
        the date of the enactment''.
    (b) Clerical Amendments Related to the Gulf Opportunity Zone Act of 
2005.--
            (1) Amendments related to section 402 of the act.--
        Subparagraph (B) of section 24(d)(1) is amended--
                    (A) by striking ``the excess (if any) of'' in the 
                matter preceding clause (i) and inserting ``the greater 
                of'', and
                    (B) by striking ``section'' in clause (ii)(II) and 
                inserting ``section 32''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the provisions of the Gulf 
        Opportunity Zone Act of 2005 to which they relate.
    (c) Clerical Amendments Related to the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users.--
            (1) Amendments related to section 11163 of the act.--
        Subparagraph (C) of section 6416(a)(4) is amended--
                    (A) by striking ``ultimate vendor'' and all that 
                follows through ``has certified'' and inserting 
                ``ultimate vendor or credit card issuer has 
                certified'', and
                    (B) by striking ``all ultimate purchasers of the 
                vendor'' and all that follows through ``are certified'' 
                and inserting ``all ultimate purchasers of the vendor 
                or credit card issuer are certified''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the provisions of the Safe, 
        Accountable, Flexible, Efficient Transportation Equity Act: A 
        Legacy for Users to which they relate.
    (d) Clerical Amendments Related to the Energy Policy Act of 2005.--
            (1) Amendment related to section 1344 of the act.--
        Subparagraph (B) of section 6427(e)(5), as redesignated by 
        subsection (a)(19), is amended by striking ``2006'' and 
        inserting ``2008''.
            (2) Amendments related to section 1351 of the act.--
        Subparagraphs (A)(ii) and (B)(ii) of section 41(f)(1) are each 
        amended by striking ``qualified research expenses and basic 
        research payments'' and inserting ``qualified research 
        expenses, basic research payments, and amounts paid or incurred 
        to energy research consortiums,''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the provisions of the 
        Energy Policy Act of 2005 to which they relate.
                                 <all>