[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4839 Enrolled Bill (ENR)]
H.R.4839
One Hundred Tenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Thursday,
the fourth day of January, two thousand and seven
An Act
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 2007''.
(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. Amendment related to the Tax Relief and Health Care Act of 2006.
Sec. 3. Amendments related to title XII of the Pension Protection Act of
2006.
Sec. 4. Amendments related to the Tax Increase Prevention and
Reconciliation Act of 2005.
Sec. 5. Amendments related to the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users.
Sec. 6. Amendments related to the Energy Policy Act of 2005.
Sec. 7. Amendments related to the American Jobs Creation Act of 2004.
Sec. 8. Amendments related to the Economic Growth and Tax Relief
Reconciliation Act of 2001.
Sec. 9. Amendments 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. AMENDMENT RELATED TO THE TAX RELIEF AND HEALTH CARE ACT OF
2006.
(a) Amendment Related to Section 402 of Division A of the Act.--
Subparagraph (A) of section 53(e)(2) is amended to read as follows:
``(A) In general.--The term `AMT refundable credit amount'
means, with respect to any taxable year, the amount (not in
excess of the long-term unused minimum tax credit for such
taxable year) equal to the greater of--
``(i) $5,000,
``(ii) 20 percent of the long-term unused minimum tax
credit for such taxable year, or
``(iii) the amount (if any) of the AMT refundable
credit amount determined under this paragraph for the
taxpayer's preceding taxable year (as determined before any
reduction under subparagraph (B)).''.
(b) Effective Date.--The amendment made by this section shall take
effect as if included in the provision of the Tax Relief and Health
Care Act of 2006 to which it relates.
SEC. 3. AMENDMENTS RELATED TO TITLE XII OF THE PENSION PROTECTION ACT
OF 2006.
(a) Amendment Related to Section 1201 of the Act.--Subparagraph (D)
of section 408(d)(8) is amended by striking ``all amounts distributed
from all individual retirement plans were treated as 1 contract under
paragraph (2)(A) for purposes of determining the inclusion of such
distribution under section 72'' and inserting ``all amounts in all
individual retirement plans of the individual were distributed during
such taxable year and all such plans were treated as 1 contract for
purposes of determining under section 72 the aggregate amount which
would have been so includible''.
(b) Amendment Related to Section 1203 of the Act.--Subsection (d)
of section 1366 is amended by adding at the end the following new
paragraph:
``(4) Application of limitation on charitable contributions.--
In the case of any charitable contribution of property to which the
second sentence of section 1367(a)(2) applies, paragraph (1) shall
not apply to the extent of the excess (if any) of--
``(A) the shareholder's pro rata share of such
contribution, over
``(B) the shareholder's pro rata share of the adjusted
basis of such property.''.
(c) Amendment Related to Section 1215 of the Act.--Subclause (I) of
section 170(e)(7)(D)(i) is amended by striking ``related'' and
inserting ``substantial and related''.
(d) Amendments Related to Section 1218 of the Act.--
(1) Section 2055 is amended by striking subsection (g) and by
redesignating subsection (h) as subsection (g).
(2) Subsection (e) of section 2522 is amended--
(A) by striking paragraphs (2) and (4),
(B) by redesignating paragraph (3) as paragraph (2), and
(C) by adding at the end of paragraph (2), as so
redesignated, the following new subparagraph:
``(C) Initial fractional contribution.--For purposes of
this paragraph, the term `initial fractional contribution'
means, with respect to any donor, the first gift of an
undivided portion of the donor's entire interest in any
tangible personal property for which a deduction is allowed
under subsection (a) or (b).''.
(e) Amendments Related to Section 1219 of the Act.--
(1) Paragraph (2) of section 6695A(a) is amended by inserting
``a substantial estate or gift tax valuation understatement (within
the meaning of section 6662(g)),'' before ``or a gross valuation
misstatement''.
(2) Paragraph (1) of section 6696(d) is amended by striking
``or under section 6695'' and inserting ``, section 6695, or
6695A''.
(f) Amendment Related to Section 1221 of the Act.--Subparagraph (A)
of section 4940(c)(4) is amended to read as follows:
``(A) There shall not be taken into account any gain or
loss from the sale or other disposition of property to the
extent that such gain or loss is taken into account for
purposes of computing the tax imposed by section 511.''.
(g) Amendment Related to Section 1225 of the Act.--
(1) Subsection (b) of section 6104 is amended--
(A) by striking ``Information'' in the heading, and
(B) by adding at the end the following: ``Any annual return
which is filed under section 6011 by an organization described
in section 501(c)(3) and which relates to any tax imposed by
section 511 (relating to imposition of tax on unrelated
business income of charitable, etc., organizations) shall be
treated for purposes of this subsection in the same manner as
if furnished under section 6033.''.
(2) Clause (ii) of section 6104(d)(1)(A) is amended to read as
follows:
``(ii) any annual return which is filed under section
6011 by an organization described in section 501(c)(3) and
which relates to any tax imposed by section 511 (relating
to imposition of tax on unrelated business income of
charitable, etc., organizations),''.
(3) Paragraph (2) of section 6104(d) is amended by striking
``section 6033'' and inserting ``section 6011 or 6033''.
(h) Amendment Related to Section 1231 of the Act.--Subsection (b)
of section 4962 is amended by striking ``or D'' and inserting ``D, or
G''.
(i) Amendment Related to Section 1242 of the Act.--
(1) Subclause (II) of section 4958(c)(3)(A)(i) is amended by
striking ``paragraph (1), (2), or (4) of section 509(a)'' and
inserting ``subparagraph (C)(ii)''.
(2) Clause (ii) of section 4958(c)(3)(C) is amended to read as
follows:
``(ii) Exception.--Such term shall not include--
``(I) any organization described in paragraph (1),
(2), or (4) of section 509(a), and
``(II) any organization which is treated as
described in such paragraph (2) by reason of the last
sentence of section 509(a) and which is a supported
organization (as defined in section 509(f)(3)) of the
organization to which subparagraph (A) applies.''.
(j) Effective Date.--The amendments made by this section shall take
effect as if included in the provisions of the Pension Protection Act
of 2006 to which they relate.
SEC. 4. AMENDMENTS RELATED TO THE TAX INCREASE PREVENTION AND
RECONCILIATION ACT OF 2005.
(a) Amendments Related to Section 103 of the Act.--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 (A) of section 355(b)(2) is amended to read as
follows:
``(A) it is engaged in the active conduct of a trade or
business,''.
(2) Paragraph (3) of section 355(b) is amended to read as
follows:
``(3) Special rules for determining active conduct in the case
of affiliated groups.--
``(A) In general.--For purposes of determining whether a
corporation meets the requirements of paragraph (2)(A), all
members of such corporation's separate affiliated group shall
be treated as one corporation.
``(B) Separate affiliated group.--For purposes of this
paragraph, 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.
``(C) Treatment of trade or business conducted by acquired
member.--If a corporation became a member of a separate
affiliated group as a result of one or more transactions in
which gain or loss was recognized in whole or in part, any
trade or business conducted by such corporation (at the time
that such corporation became such a member) shall be treated
for purposes of paragraph (2) as acquired in a transaction in
which gain or loss was recognized in whole or in part.
``(D) Regulations.--The Secretary shall prescribe such
regulations as are necessary or appropriate to carry out the
purposes of this paragraph, including regulations which provide
for the proper application of subparagraphs (B), (C), and (D)
of paragraph (2), and modify the application of subsection
(a)(3)(B), in connection with the application of this
paragraph.''.
(3) The Internal Revenue Code of 1986 shall be applied and
administered as if the amendments made by section 202 of the Tax
Increase Prevention and Reconciliation Act of 2005 and by section
410 of division A of the Tax Relief and Health Care Act of 2006 had
never been enacted.
(c) Amendment Related to Section 515 of the Act.--Subsection (f) of
section 911 is amended to read as follows:
``(f) Determination of Tax Liability.--
``(1) In general.--If, for any taxable year, any amount is
excluded from gross income of a taxpayer under subsection (a),
then, notwithstanding sections 1 and 55--
``(A) if such taxpayer has taxable income for such taxable
year, the tax imposed by section 1 for such taxable year shall
be equal to the excess (if any) of--
``(i) the tax which would be imposed by section 1 for
such taxable year if the taxpayer's taxable income were
increased by the amount excluded under subsection (a) for
such taxable year, over
``(ii) the tax which would be imposed by section 1 for
such taxable year if the taxpayer's taxable income were
equal to the amount excluded under subsection (a) for such
taxable year, and
``(B) if such taxpayer has a taxable excess (as defined in
section 55(b)(1)(A)(ii)) for such taxable year, the amount
determined under the first sentence of section 55(b)(1)(A)(i)
for such taxable year shall be equal to the excess (if any)
of--
``(i) the amount which would be determined under such
sentence for such taxable year (subject to the limitation
of section 55(b)(3)) if the taxpayer's taxable excess (as
so defined) were increased by the amount excluded under
subsection (a) for such taxable year, over
``(ii) the amount which would be determined under such
sentence for such taxable year if the taxpayer's taxable
excess (as so defined) were equal to the amount excluded
under subsection (a) for such taxable year.
``(2) Special rules.--
``(A) Regular tax.--In applying section 1(h) for purposes
of determining the tax under paragraph (1)(A)(i) for any
taxable year in which, without regard to this subsection, the
taxpayer's net capital gain exceeds taxable income (hereafter
in this subparagraph referred to as the capital gain excess)--
``(i) the taxpayer's net capital gain (determined
without regard to section 1(h)(11)) shall be reduced (but
not below zero) by such capital gain excess,
``(ii) the taxpayer's qualified dividend income shall
be reduced by so much of such capital gain excess as
exceeds the taxpayer's net capital gain (determined without
regard to section 1(h)(11) and the reduction under clause
(i)), and
``(iii) adjusted net capital gain, unrecaptured section
1250 gain, and 28-percent rate gain shall each be
determined after increasing the amount described in section
1(h)(4)(B) by such capital gain excess.
``(B) Alternative minimum tax.--In applying section
55(b)(3) for purposes of determining the tax under paragraph
(1)(B)(i) for any taxable year in which, without regard to this
subsection, the taxpayer's net capital gain exceeds the taxable
excess (as defined in section 55(b)(1)(A)(ii))--
``(i) the rules of subparagraph (A) shall apply, except
that such subparagraph shall be applied by substituting
`the taxable excess (as defined in section
55(b)(1)(A)(ii))' for `taxable income', and
``(ii) the reference in section 55(b)(3)(B) to the
excess described in section 1(h)(1)(B) shall be treated as
a reference to such excess as determined under the rules of
subparagraph (A) for purposes of determining the tax under
paragraph (1)(A)(i).
``(C) Definitions.--Terms used in this paragraph which are
also used in section 1(h) shall have the respective meanings
given such terms by section 1(h), except that in applying
subparagraph (B) the adjustments under part VI of subchapter A
shall be taken into account.''.
(d) 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 Tax Increase Prevention and
Reconciliation Act of 2005 to which they relate.
(2) Modification of active business definition under section
355.--
(A) In general.--Except as otherwise provided in this
paragraph, the amendments made by subsection (b) shall apply to
distributions made after May 17, 2006.
(B) Transition rule.--The amendments made by subsection (b)
shall not apply to any distribution pursuant to a transaction
which is--
(i) made pursuant to an agreement which was binding on
May 17, 2006, and at all times thereafter,
(ii) described in a ruling request submitted to the
Internal Revenue Service on or before such date, or
(iii) described on or before such date in a public
announcement or in a filing with the Securities and
Exchange Commission.
(C) Election out of transition rule.--Subparagraph (B)
shall not apply if the distributing corporation elects not to
have such subparagraph apply to distributions of such
corporation. Any such election, once made, shall be
irrevocable.
(D) Special rule for certain pre-enactment distributions.--
For purposes of determining the continued qualification under
section 355(b)(2)(A) of the Internal Revenue Code of 1986 of
distributions made on or before May 17, 2006, as a result of an
acquisition, disposition, or other restructuring after such
date, such distribution shall be treated as made on the date of
such acquisition, disposition, or restructuring for purposes of
applying subparagraphs (A) through (C) of this paragraph. The
preceding sentence shall only apply with respect to the
corporation that undertakes such acquisition, disposition, or
other restructuring, and only if such application results in
continued qualification under section 355(b)(2)(A) of such
Code.
(3) Amendment related to section 515 of the act.--The amendment
made by subsection (c) shall apply to taxable years beginning after
December 31, 2006.
SEC. 5. AMENDMENTS RELATED TO THE SAFE, ACCOUNTABLE, FLEXIBLE,
EFFICIENT TRANSPORTATION EQUITY ACT: A LEGACY FOR USERS.
(a) Amendments Related to Section 11113 of the Act.--
(1) Paragraph (3) of section 6427(i) is amended--
(A) 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),
(B) by inserting ``or (e)(2)'' after ``subsection (e)(1)''
in subparagraphs (A)(i) and (B), and
(C) by striking ``alcohol fuel and biodiesel mixture
credit'' and inserting ``mixture credits and the alternative
fuel credit'' in the heading thereof.
(2) Subparagraph (F) of section 6426(d)(2) is amended by
striking ``hydrocarbons'' and inserting ``fuel''.
(3) Section 6426 is amended by adding at the end the following
new subsection:
``(h) Denial of Double Benefit.--No credit shall be determined
under subsection (d) or (e) with respect to any fuel with respect to
which credit may be determined under subsection (b) or (c) or under
section 40 or 40A.''.
(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. 6. 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) Amendments Related to Section 1342 of the Act.--
(1) 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 qualified alternative fuel vehicle refueling property
placed in service by the taxpayer during the taxable year at a location
shall not exceed--''.
(2) Subsection (c) of section 30C is amended to read as
follows:
``(c) Qualified Alternative Fuel Vehicle Refueling Property.--For
purposes of this section, the term `qualified alternative fuel vehicle
refueling property' has the same meaning as the term `qualified clean-
fuel vehicle refueling property' would have under section 179A if--
``(1) paragraph (1) of section 179A(d) did not apply to
property installed on property which is used as the principal
residence (within the meaning of section 121) of the taxpayer, and
``(2) only the following were treated as clean-burning fuels
for purposes of section 179A(d):
``(A) Any fuel at least 85 percent of the volume of which
consists of one or more of the following: ethanol, natural gas,
compressed natural gas, liquified natural gas, liquefied
petroleum gas, or hydrogen.
``(B) Any mixture--
``(i) which consists of two or more of the following:
biodiesel (as defined in section 40A(d)(1)), diesel fuel
(as defined in section 4083(a)(3)), or kerosene, and
``(ii) at least 20 percent of the volume of which
consists of biodiesel (as so defined) determined without
regard to any kerosene in such mixture.''.
(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), respectively, 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 4082(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. 7. AMENDMENTS RELATED TO THE AMERICAN JOBS CREATION ACT OF 2004.
(a) Amendments Related to Section 339 of the Act.--
(1)(A) Section 45H is amended by striking subsection (d) and by
redesignating subsections (e), (f), and (g) as subsections (d),
(e), and (f), respectively.
(B) Subsection (d) of section 280C is amended to read as
follows:
``(d) Credit for Low Sulfur Diesel Fuel Production.--The deductions
otherwise allowed under this chapter for the taxable year shall be
reduced by the amount of the credit determined for the taxable year
under section 45H(a).''.
(C) Subsection (a) of section 1016 is amended by striking
paragraph (31) and by redesignating paragraphs (32) through (37) as
paragraphs (31) through (36), respectively.
(2)(A) Section 45H, as amended by paragraph (1), is amended by
adding at the end the following new subsection:
``(g) Election to Not Take Credit.--No credit shall be determined
under subsection (a) for the taxable year if the taxpayer elects not to
have subsection (a) apply to such taxable year.''.
(B) Subsection (m) of section 6501 is amended by inserting
``45H(g),'' after ``45C(d)(4),''.
(3)(A) Subsections (b)(1)(A), (c)(2), (e)(1), and (e)(2) of
section 45H (as amended by paragraph (1)) and section 179B(a) are
each amended by striking ``qualified capital costs'' and inserting
``qualified costs''.
(B) The heading of paragraph (2) of section 45H(c) is amended
by striking ``capital''.
(C) Subsection (a) of section 179B is amended by inserting
``and which are properly chargeable to capital account'' before the
period at the end.
(b) 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).
(c) Amendments Related to Section 848 of the Act.--
(1) Paragraph (2) of section 470(c) is amended to read as
follows:
``(2) Tax-exempt use property.--
``(A) In general.--The term `tax-exempt use property' has
the meaning given to such term by section 168(h), except that
such section shall be applied--
``(i) without regard to paragraphs (1)(C) and (3)
thereof, and
``(ii) as if section 197 intangible property (as
defined in section 197), and property described in
paragraph (1)(B) or (2) of section 167(f), were tangible
property.
``(B) Exception for partnerships.--Such term shall not
include any property which would (but for this subparagraph) be
tax-exempt use property solely by reason of section 168(h)(6).
``(C) Cross reference.--For treatment of partnerships as
leases to which section 168(h) applies, see section 7701(e).''.
(2) 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)''.
(d) 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''.
(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 American Jobs Creation Act
of 2004 to which they relate.
(2) Identification requirement of amendment related to section
888 of the american jobs creation act of 2004.--The amendment made
by subsection (d)(2)(A) shall apply to straddles acquired after the
date of the enactment of this Act.
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. AMENDMENTS 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) Amendment Related to Section 542 of the Act.--Clause (ii) of
section 856(d)(9)(D) is amended to read as follows:
``(ii) Lodging facility.--The term `lodging facility'
means a--
``(I) hotel,
``(II) motel, or
``(III) other establishment more than one-half of
the dwelling units in which are used on a transient
basis.''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the provisions of the Tax Relief Extension Act
of 1999 to which they relate.
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) Paragraph (2) of section 26(b) is amended by redesignating
subparagraphs (S) and (T) as subparagraphs (U) and (V),
respectively, and by inserting after subparagraph (R) the following
new subparagraphs:
``(S) sections 106(e)(3)(A)(ii), 223(b)(8)(B)(i)(II), and
408(d)(9)(D)(i)(II) (relating to certain failures to maintain
high deductible health plan coverage),
``(T) section 170(o)(3)(B) (relating to recapture of
certain deductions for fractional gifts),''.
(4) 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''.
(5) 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))''.
(6) Subsection (b) of section 38 is amended--
(A) by striking ``and'' each place it appears at the end of
any paragraph,
(B) by striking ``plus'' each place it appears at the end
of any paragraph, and
(C) by inserting ``plus'' at the end of paragraph (30).
(7) Paragraphs (2) and (3) of section 45L(c) are each amended
by striking ``section 3280'' and inserting ``part 3280''.
(8) Subsection (c) of section 48 is amended by striking
``subsection'' in the text preceding paragraph (1) and inserting
``section''.
(9) Paragraphs (1)(B) and (2)(B) of section 48(c) are each
amended by striking ``paragraph (1)'' and inserting ``subsection
(a)''.
(10) Clause (ii) of section 48A(d)(4)(B) is amended by striking
``subsection'' both places it appears.
(11)(A) Paragraph (9) of section 121(d) is amended by adding at
the end the following new subparagraph:
``(E) Termination with respect to employees of intelligence
community.--Clause (iii) of subparagraph (A) shall not apply
with respect to any sale or exchange after December 31,
2010.''.
(B) Subsection (e) of section 417 of division A of the Tax
Relief and Health Care Act of 2006 is amended by striking ``and
before January 1, 2011''.
(12) The last sentence of section 125(b)(2) is amended by
striking ``last sentence'' and inserting ``second sentence''.
(13) Subclause (II) of section 167(g)(8)(C)(ii) is amended by
striking ``section 263A(j)(2)'' and inserting ``section
263A(i)(2)''.
(14)(A) Clause (vii) of section 170(b)(1)(A) is amended by
striking ``subparagraph (E)'' and inserting ``subparagraph (F)''.
(B) Clause (ii) of section 170(e)(1)(B) is amended by striking
``subsection (b)(1)(E)'' and inserting ``subsection (b)(1)(F)''.
(C) Clause (i) of section 1400S(a)(2)(A) is amended by striking
``subparagraph (F)'' and inserting ``subparagraph (G)''.
(D) Subparagraph (A) of section 4942(i)(1) is amended by
striking ``section 170(b)(1)(E)(ii)'' and inserting ``section
170(b)(1)(F)(ii)''.
(15) Subclause (II) of section 170(e)(1)(B)(i) is amended by
inserting ``, but without regard to clause (ii) thereof'' after
``paragraph (7)(C)''.
(16)(A) Subparagraph (A) of section 170(o)(1) and subparagraph
(A) of section 2522(e)(1) are each amended by striking ``all
interest in the property is'' and inserting ``all interests in the
property are''.
(B) Section 170(o)(3)(A)(i), and section 2522(e)(2)(A)(i) (as
redesignated by section 3(d)(2)), are each amended--
(i) by striking ``interest'' and inserting ``interests'',
and
(ii) by striking ``before'' and inserting ``on or before''.
(17)(A) Subparagraph (C) of section 852(b)(4) is amended to
read as follows:
``(C) Determination of holding periods.--For purposes of
this paragraph, in determining the period for which the
taxpayer has held any share of stock--
``(i) the rules of paragraphs (3) and (4) of section
246(c) shall apply, and
``(ii) there shall not be taken into account any day
which is more than 6 months after the date on which such
share becomes ex-dividend.''.
(B) Subparagraph (B) of section 857(b)(8) is amended to read as
follows:
``(B) Determination of holding periods.--For purposes of
this paragraph, in determining the period for which the
taxpayer has held any share of stock or beneficial interest--
``(i) the rules of paragraphs (3) and (4) of section
246(c) shall apply, and
``(ii) there shall not be taken into account any day
which is more than 6 months after the date on which such
share or interest becomes ex-dividend.''.
(18) Paragraph (2) of section 856(l) is amended by striking the
last sentence and inserting the following: ``For purposes of
subparagraph (B), securities described in subsection (m)(2)(A)
shall not be taken into account.''.
(19) Subparagraph (F) of section 954(c)(1) is amended to read
as follows:
``(F) Income from notional principal contracts.--
``(i) In general.--Net income from notional principal
contracts.
``(ii) Coordination with other categories of foreign
personal holding company income.--Any item of income, gain,
deduction, or loss from a notional principal contract
entered into for purposes of hedging any item described in
any preceding subparagraph shall not be taken into account
for purposes of this subparagraph but shall be taken into
account under such other subparagraph.''.
(20) Paragraph (1) of section 954(c) is amended by
redesignating subparagraph (I) as subparagraph (H).
(21) Paragraph (33) of section 1016(a), as redesignated by
section 7(a)(1)(C), is amended by striking ``section 25C(e)'' and
inserting ``section 25C(f)''.
(22) Paragraph (36) of section 1016(a), as redesignated by
section 7(a)(1)(C), is amended by striking ``section 30C(f)'' and
inserting ``section 30C(e)(1)''.
(23) Subparagraph (G) of section 1260(c)(2) is amended by
adding ``and'' at the end.
(24)(A) Section 1297 is amended by striking subsection (d) and
by redesignating subsections (e) and (f) as subsections (d) and
(e), respectively.
(B) Subparagraph (G) of section 1260(c)(2) is amended by
striking ``subsection (e)'' and inserting ``subsection (d)''.
(C) Subparagraph (B) of section 1298(a)(2) is amended by
striking ``Section 1297(e)'' and inserting ``Section 1297(d)''.
(25) Paragraph (1) of section 1362(f) is amended--
(A) by striking ``, section 1361(b)(3)(B)(ii), or section
1361(c)(1)(A)(ii)'' and inserting ``or section
1361(b)(3)(B)(ii)'', and
(B) by striking ``, section 1361(b)(3)(C), or section
1361(c)(1)(D)(iii)'' in subparagraph (B) and inserting ``or
section 1361(b)(3)(C)''.
(26) Paragraph (2) of section 1400O is amended by striking
``under of'' and inserting ``under''.
(27) 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.''.
(28) 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).''.
(29) Paragraph (4) of section 4101(a) (relating to registration
in event of change of ownership) is redesignated as paragraph (5).
(30) Paragraph (6) of section 4965(c) is amended by striking
``section 4457(e)(1)(A)'' and inserting ``section 457(e)(1)(A)''.
(31) 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.
(32) 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''.
(33) Subsection (b) of section 6046 is amended--
(A) by striking ``subsection (a)(1)'' and inserting
``subsection (a)(1)(A)'', and
(B) by striking ``paragraph (2) or (3) of subsection (a)''
and inserting ``subparagraph (B) or (C) of subsection (a)(1)''.
(34)(A) Subparagraph (A) of section 6103(b)(5) is amended by
striking ``the Canal Zone,''.
(B) Section 7651 is amended by striking paragraph (4) and by
redesignating paragraph (5) as paragraph (4).
(35) Subparagraph (A) of section 6211(b)(4) is amended by
striking ``and 34'' and inserting ``34, and 35''.
(36) Subparagraphs (A) and (B) of section 6230(a)(3) are each
amended by striking ``section 6013(e)'' and inserting ``section
6015''.
(37) 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).
(38) 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)''.
(39)(A) Section 6427, as amended by section 1343(b)(1) of the
Energy Policy Act of 2005, is amended by striking subsection (p)
(relating to gasohol used in noncommercial aviation) 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.
(40) Subsection (a) of section 6695A is amended by striking
``then such person'' in paragraph (2) and inserting the following:
``then such person''.
(41) Subparagraph (C) of section 6707A(e)(2) is amended by
striking ``section 6662A(e)(2)(C)'' and inserting ``section
6662A(e)(2)(B)''.
(42)(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)''.
(43) Section 9006 is amended by striking ``Comptroller
General'' each place it appears and inserting ``Commission''.
(44) 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).
(45) 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''.
(46) The Internal Revenue Code of 1986 shall be applied and
administered as if the amendments made by section 1(a) of Public
Law 109-433 had never been enacted.
(b) Clerical Amendments Related to the Tax Relief and Health Care
Act of 2006.--
(1) Amendment related to section 209 of division a of the
act.--Paragraph (3) of section 168(l) is amended by striking
``enzymatic''.
(2) Amendments related to section 419 of division a of the
act.--
(A) Clause (iv) of section 6724(d)(1)(B) is amended by
inserting ``or (h)(1)'' after ``section 6050H(a)''.
(B) Subparagraph (K) of section 6724(d)(2) is amended by
inserting ``or (h)(2)'' after ``section 6050H(d)''.
(3) Effective date.--The amendments made by this subsection
shall take effect as if included in the provision of the Tax Relief
and Health Care Act of 2006 to which they relate.
(c) 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.
(d) 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.
(e) 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)(37),
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.
(f) Clerical Amendments Related to the American Jobs Creation Act
of 2004.--
(1) Amendment related to section 301 of the act.--Section 9502
is amended by striking subsection (e) and redesignating subsection
(f) as subsection (e).
(2) Amendment related to section 413 of the act.--Subsection
(b) of section 1298 is amended by striking paragraph (7) and by
redesignating paragraphs (8) and (9) as paragraphs (7) and (8),
respectively.
(3) Amendment related to section 895 of the act.--Clause (iv)
of section 904(f)(3)(D) is amended by striking ``a controlled
group'' and inserting ``an affiliated group''.
(4) Effective date.--The amendments made by this subsection
shall take effect as if included in the provisions of the American
Jobs Creation Act of 2004 to which they relate.
(g) Clerical Amendments Related to the FSC Repeal and
Extraterritorial Income Exclusion Act of 2000.--
(1) Subclause (I) of section 56(g)(4)(C)(ii) is amended by
striking ``921'' and inserting ``921 (as in effect before its
repeal by the FSC Repeal and Extraterritorial Income Exclusion Act
of 2000)''.
(2) Clause (iv) of section 54(g)(4)(C) is amended by striking
``a cooperative described in section 927(a)(4)'' and inserting ``an
organization to which part I of subchapter T (relating to tax
treatment of cooperatives) applies which is engaged in the
marketing of agricultural or horticultural products''.
(3) Paragraph (4) of section 245(c) is amended by adding at the
end the following new subparagraph:
``(C) FSC.--The term `FSC' has the meaning given such term
by section 922.''.
(4) Subsection (c) of section 245 is amended by inserting at
the end the following new paragraph:
``(5) References to prior law.--Any reference in this
subsection to section 922, 923, or 927 shall be treated as a
reference to such section as in effect before its repeal by the FSC
Repeal and Extraterritorial Income Exclusion Act of 2000.''.
(5) Paragraph (4) of section 275(a) is amended by striking
``if'' and all that follows and inserting ``if the taxpayer chooses
to take to any extent the benefits of section 901.''.
(6)(A) Subsection (a) of section 291 is amended by striking
paragraph (4) and by redesignating paragraph (5) as paragraph (4).
(B) Paragraph (1) of section 291(c) is amended by striking
``subsection (a)(5)'' and inserting ``subsection (a)(4)''.
(7)(A) Paragraph (4) of section 441(b) is amended by striking
``FSC or''.
(B) Subsection (h) of section 441 is amended--
(i) by striking ``FSC or'' each place it appears, and
(ii) by striking ``FSC's and'' in the heading thereof.
(8) Subparagraph (B) of section 884(d)(2) is amended by
inserting before the comma ``(as in effect before their repeal by
the FSC Repeal and Extraterritorial Income Exclusion Act of
2000)''.
(9) Section 901 is amended by striking subsection (h).
(10) Clause (v) of section 904(d)(2)(B) is amended--
(A) by inserting ``and'' at the end of subclause (I), by
striking subclause (II), and by redesignating subclause (III)
as subclause (II),
(B) by striking ``a FSC (or a former FSC)'' in subclause
(II) (as so redesignated) and inserting ``a former FSC (as
defined in section 922)'', and
(C) by adding at the end the following:
``Any reference in subclause (II) to section 922, 923, or
927 shall be treated as a reference to such section as in
effect before its repeal by the FSC Repeal and
Extraterritorial Income Exclusion Act of 2000.''.
(11) Subsection (b) of section 906 is amended by striking
paragraph (5) and redesignating paragraphs (6) and (7) as
paragraphs (5) and (6), respectively.
(12) Subparagraph (B) of section 936(f)(2) is amended by
striking ``FSC or''.
(13) Section 951 is amended by striking subsection (c) and by
redesignating subsection (d) as subsection (c).
(14) Subsection (b) of section 952 is amended by striking the
second sentence.
(15)(A) Paragraph (2) of section 956(c) is amended--
(i) by striking subparagraph (I) and by redesignating
subparagraphs (J) through (M) as subparagraphs (I) through (L),
respectively, and
(ii) by striking ``subparagraphs (J), (K), and (L)'' in the
flush sentence at the end and inserting ``subparagraphs (I),
(J), and (K)''.
(B) Clause (ii) of section 954(c)(2)(C) is amended by striking
``section 956(c)(2)(J)'' and inserting ``section 956(c)(2)(I)''.
(16) Paragraph (1) of section 992(a) is amended by striking
subparagraph (E), by inserting ``and'' at the end of subparagraph
(C), and by striking ``, and'' at the end of subparagraph (D) and
inserting a period.
(17) Paragraph (5) of section 1248(d) is amended--
(A) by inserting ``(as defined in section 922)'' after ``a
FSC'', and
(B) by adding at the end the following new sentence: ``Any
reference in this paragraph to section 922, 923, or 927 shall
be treated as a reference to such section as in effect before
its repeal by the FSC Repeal and Extraterritorial Income
Exclusion Act of 2000.''.
(18) Subparagraph (D) of section 1297(b)(2) is amended by
striking ``foreign trade income of a FSC or''.
(19)(A) Paragraph (1) of section 6011(c) is amended by striking
``or former DISC or a FSC or former FSC'' and inserting ``, former
DISC, or former FSC (as defined in section 922 as in effect before
its repeal by the FSC Repeal and Extraterritorial Income Exclusion
Act of 2000)''.
(B) Subsection (c) of section 6011 is amended by striking ``and
FSC's'' in the heading thereof.
(20) Subsection (c) of section 6072 is amended by striking ``a
FSC or former FSC'' and inserting ``a former FSC (as defined in
section 922 as in effect before its repeal by the FSC Repeal and
Extraterritorial Income Exclusion Act of 2000)''.
(21) Section 6686 is amended by inserting ``FORMER'' before
``FSC'' in the heading thereof.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.