[Congressional Record Volume 152, Number 125 (Friday, September 29, 2006)]
[Senate]
[Pages S10713-S10716]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY (for himself and Mr. Baucus):
  S. 4026. A bill to amend the Internal Revenue Code of 1986 to make 
technical corrections, and for other purposes; to the Committee on 
Finance.
  Mr. GRASSLEY. Mr. President, today Senator Baucus and I are pleased 
to introduce the Tax Technical Corrections Act of 2006.
  Technical Corrections measures are routine for major tax acts, and 
are necessary to ensure that the provisions of the acts are working 
consistently with Congressional intent, or to provide clerical 
corrections. Because these measures carry out Congressional intent, no 
revenue gain or loss is scored from them.
  Technical corrections are derived from a deliberative and 
consultative process among the Congressional and Administration tax 
staffs. That means the Republican and Democratic staffs of the House 
Ways and Means and Senate Finance Committees are involved, as is the 
staff of the Treasury Department. All of this work is performed with 
the participation and guidance of the non-partisan staff of the Joint 
Committee on Taxation. A technical enters the list only if all staffs 
agree it is appropriate.
  By filing this bill, we hope interested parties and practitioners 
will comment and provide direction on further edits, additions, or 
deletions. These comments should be submitted in a timely manner, by 
the end of October. It is our hope that we may move this package of 
technicals in November if possible.
  We ask unanimous consent that the text of the bill print in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 4026

       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.

[[Page S10714]]

     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)--

[[Page S10715]]

       ``(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.

[[Page S10716]]

       (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.
                                 ______