[Congressional Record Volume 153, Number 177 (Thursday, November 15, 2007)]
[Senate]
[Pages S14490-S14499]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. BROWNBACK (for himself, Ms. Landrieu, Mr. Burr, Mr.
Coburn, Mr. Coleman, Mr. Corker, Mr. Craig, Mr. DeMint, Mrs.
Dole, Mr. Ensign, Mr. Inhofe, Mr. Kyl, Mr. Martinez, Mr. Thune,
Mr. Vitter, Mr. Voinovich, and Mr. McCain):
S. 2358. A bill to amend title 18, United States Code, to prohibit
human-animal hybrids; to the Committee on the Judiciary.
Mr. BROWNBACK. Mr. President, I rise today to introduce the Human-
Animal Hybrid Prohibition Act, joined by Senator Landrieu and 15 other
cosponsors.
A healthy imagination is a good thing in a young child. Children may
dream of becoming a firefighter or an astronaut. In the case of really
young children--especially when they love animals--they may even
imagine being a horse or a dog. I don't see any harm in this . . . as
long as there is a general attachment to reality as the child matures.
However, today, we are starting to see such wildly imaginative dreams
being transformed into reality in a few rogue science labs in this
country and abroad. Efforts are being marshaled to push us in the
direction of experiments to create human-animal hybrids. Amazingly,
here at the dawn of the 21st century, the Island of Dr. Moreau is
becoming more than a fiction.
The legislation that we introduce today is very modest in scope.
Though a few researchers may argue that it goes too far, there are many
more who argue that it does not go far enough. I believe that the
legislation that we offer today, hits just the right chord to be in
tune with our society's needs. We do not want to stifle legitimate
science. We only want to stop the efforts of mad scientists. In short,
this bill only bans the creation of organisms that truly blur the line
between humans and animals.
For instance, the legislation is so modest that it does not view all
human-animal mixes as ``hybrids.'' This is because we recognize that
some procedures--which currently use such techniques--do not blur the
line between species. For example, a human with a replacement pig heart
valve--such as our former colleague, Senator Jesse Helms is not
considered a hybrid under this bill. Additionally, mixes that do not
blur the line between human and animal--such as a mouse created with a
human immune system, on which drugs could be tested for AIDS patients
would not be banned. Again, this is because there is no blurring of the
identity of the creatures involved.
What is banned is the creation of hybrid creatures that blur the line
between species. For instance, creating an animal with human
reproductive organs or a primarily human brain would be prohibited
because such a creature blurs the lines between the species.
Additionally banned are the creation of hybrids through experimental
cloning techniques and/or the fusion of human and animal gametes. With
this common sense bipartisan legislation, we are basically going with
the most modest of bans in order to ensure that we do not infringe upon
legitimate scientific research.
This ban would only hinder the efforts of mad scientists and rogue
researchers. Legitimate scientists should have nothing to fear from the
enactment of this legislative proposal.
There are many different reasons to support this legislation. This is
reflected in the diverse groups that support this bill. On the right
are groups such as the Family Research Council and Concerned Women for
America; on the left are groups like Friends of the Earth and the
International Center for Technology Assessment. Both sides have
different but equally valid reasons for supporting the Human-Animal
Hybrid Prohibition Act.
For now though, I would like to focus my attention on what I believe
is the central ethical question: Why should we be opposed to human-
animal hybrids?
I would submit that it is much more than what some have termed, ``the
Yuck Factor.'' Rather, the reason to oppose human-animal hybrids is
embedded in our very fabric as human beings. The reason to oppose the
creation of human-animal hybrids is that the creation of such entities
is a grave violation of human dignity and a defilement of the human
person.
Human beings have a fundamental right to be born fully human. To
create a human-animal hybrid whose identity as a member of the species
Homo sapiens is in doubt is a violation of that human dignity and a
grave injustice.
Think about this for a minute. What if--beyond your control--some mad
scientist were to have created you as only 80-percent or 50-percent
human. That would not be fair to you, but it would be something that
you could not change and it would be something that you would have to
live with for the whole of your existence on earth.
The fundamental issue is the dignity of the human person, but it does
quickly move into other issues, such as the creation of a sub-human
servant class, or maybe even a super-human class that comes to dominate
humanity.
In the year 2000, one of the first attempts at human-animal hybrids
was made. It was a vanguard attempt, which was shamed back into the
silence of the mad scientist laboratory from which it came; but now as
some scientists are trying to bring human-animal hybrids more into the
mainstream, an essay on the year 2000 attempt is worth considering
again. The essay, entitled, ``The Pig-Man Cometh'' appeared in the
October 23, 2000, Weekly Standard, and from this piece I will quote
extensively. In the piece, J. Bottum wrote:
On Thursday, October 5, it was revealed that biotechnology
researchers had successfully created a hybrid of a human
being and a pig. A man-pig. A pig-man. The reality is so
unspeakable, the words themselves don't want to go together.
Extracting the nuclei of cells from a human fetus and
inserting them into a pig's egg cells, scientists from an
Australian company called Stem Cell Sciences and an American
company called Biotransplant grew two of the pig-men to 32-
cell embryos before destroying them. The embryos would have
grown further, the scientists admitted, if they had been
implanted in the womb of either a sow or a woman. Either a
sow or a woman. A woman or a sow.
There has been some suggestion from the creators that their
purpose in designing this human pig is to build a new race of
subhuman creatures for scientific and medical use. . . .
But what difference does it make whether the researchers'
intention is to create subhumans or superhumans? Either they
want to make a race of slaves, or they want to make a race of
masters. And either way, it means the end of our humanity.
You can't say we weren't warned. This is the island of Dr.
Moreau. This is the brave new world. This is Dr.
Frankenstein's chamber. This is Dr. Jekyll's room. This is
Satan's Pandemonium, the city of self-destruction the rebel
angels wrought in their all-consuming pride.
But now that it has actually come--manifest, inescapable,
real--there don't seem to be words that can describe its
horror sufficiently to halt it. May God have mercy on us, for
our modern Dr. Moreaus--our proud biotechnicians, our most
advanced genetic scientists--have already announced that they
will have no mercy.
It's true that Stem Cell Sciences and Biotransplant have
now, under the weight of adverse publicity, decided to
withdraw their European patent application and modify their
American application. But they made no promise to stop their
investigations into the procedure. We simply have to rely
upon their sense of what is, as Mountford put it, ``ethically
immoral''--a sense sufficiently attenuated that they could
undertake the design of the pig-man in the first place. The
elimination of the human race has loomed into clear sight at
last.
[[Page S14491]]
It used to be that even the imagination of this sort of
thing existed only to underscore a moral in a story. . . .
But we live at a moment in which British newspapers can
report on 19 families who have created test-tube babies
solely for the purpose of serving as tissue donors for their
relatives--some brought to birth, some merely harvested as
embryos and fetuses. A moment in which Harper's Bazaar can
advise women to keep their faces unwrinkled by having
themselves injected with fat culled from human cadavers. A
moment in which the Australian philosopher Peter Singer can
receive a chair at Princeton University for advocating the
destruction of infants after birth if their lives are likely
to be a burden. A moment in which the brains of late-term
aborted babies can be vacuumed out and gleaned for stem
cells.
In the midst of all this, the creation of a human-pig
arrives like a thing expected. We have reached the logical
end, at last. We have become the people that, once upon a
time, our ancestors used fairy tales to warn their children
against--and we will reap exactly the consequences those
tales foretold.
This was a grim philosophical essay, but the questions that it poses
are worth reflecting upon--even if those questions make us cringe.
Will society exercise some responsibility, or will it be led,
mindlessly going wherever the mad scientists want to go? Every week, it
seems that there are new developments. Yesterday, the science journal
Nature published an article on advances in cloning technology using
monkeys. This is a slightly different issue than human-animal hybrids,
but it further illustrates the rapid changes, developments, and
surprises occurring in science. Such developments must be harnessed by
society and directed toward good and ethical ends; and if the
developments cannot be directed to good ends, then they should be
abandoned to the scrap heap of morally bankrupt ideas. If we neglect to
direct our course, we will be led to the brink of destruction.
I am more optimistic than the tone embodied in the Weekly Standard
essay. I believe in the goodness of the American people and their
elected representatives. I think that we can rise to the challenge to
ensure that the marvels of science are properly channeled to serve
humanity and human dignity.
Consideration and passage of the ``Human-Animal Hybrid Prohibition
Act,'' which we introduce today, would be a wonderful step in the right
direction.
Ms. LANDRIEU. Mr. President, I rise today to join with my colleague
Senator Brownback of Kansas as a co-sponsor of S. 2358, the Human-
Animal Hybrid Prohibition Act. As stem cell research has progressed in
recent years, Federal law has remained troublingly silent over its
proliferation. This bill would place a ban on the creation, transfer,
or transportation of a human-animal hybrid. Human-animal hybrids are
defined as: a human embryo into which animal cells or genes are
introduced, making its humanity uncertain; a hybrid embryo created by
fertilizing a human egg with non-human sperm; a hybrid embryo created
by fertilizing a non-human egg with human sperm; a hybrid embryo
created by introducing a non-human nucleus into a human egg; a hybrid
embryo created by introducing a non-human egg with human sperm; an
embryo containing mixed sets of chromosomes from both a human and
animal; an animal with human reproductive organs; an animal with a
whole or predominantly human brain.
In August of 2001, President Bush issued an executive order, allowing
for Federal funding for stem cell research on the then-existing stem
cell lines. In November of that same year, he appointed a council to
monitor stem cell research, to recommend appropriate guidelines and
regulations, and to consider all of the medical and ethical
ramifications of biomedical innovation. To date, this council has
issued numerous reports on the bioethics issues involved in stem cell
research.
Meanwhile, the scientific community has moved forward in its
research. Just this morning, researchers from Oregon announced that
they successfully used cloning to produce monkey embryos and then
extract stem cells from the embryos. The National Academies of Science
released guidelines for human embryonic stem cell research in 2005 and
again in 2007. Everyday we, as Members of Congress, are faced with a
fundamental question: How far we should go in the name of science?
There is no doubt that embryonic stem cell research holds the promise
of curing diseases such as Parkinson's, diabetes, Alzheimer's and
cancer. Even President Bush stressed the importance of federally-funded
research in approving the original stem cell lines in 2001--he
explicitly stated that Federal dollars help attract the best and
brightest scientists and help ensure that new discoveries are widely
shared at the largest number of research facilities.
Federal funding not only allows us to encourage and financially
support this research, it allows us to use the power of the purse to be
sure it is done in the most safe and ethical way possible. I support
Federal funding for embryonic stem cell research provided that the
embryos used in these studies are those that are in excess from the
fertility process and are knowingly donated for this purpose. I have
met with many constituents suffering from life altering and fatal
diseases and they have told me the impact that this research may have
on their lives.
But what Senator Brownback and I come forward with today is not about
stem cell research with existing embryos. This is about a practice that
has far-reaching ethical implications and brings into question our
notion of humanity. Scientists have begun experimenting with injecting
human neural stem cells into the brain of an animal. They are looking
to insert a human nucleus into the egg of an animal and vice versa.
They are looking to fertilize human eggs with non-human sperm and vice
versa. They are on the verge of creating human-animal hybrids that
truly blur the line between species. While the stated purpose may be a
noble one--to advance medical research--the outcome is deplorable. At
what point is scientific research going too far?
We believe we have reached that point. Creating human-animal hybrids
opens the door to a host of concerns. It is a violation of basic human
dignity. It also has the potential to threaten human health by
introducing infections from animal populations.
The human body is not a product to be mass produced and stripped for
parts, even in the earliest stages of its development. Assembly lines,
patents, and warehouses are appropriate terms when talking about cars
or computers, but not people. If we allow the creation of human-animal
hybrids for research purposes, the end result will be a system of
``hatcheries'' where such ambiguous embryos are grown in mass. We hold
a certain value for the uniqueness of humans. To challenge that in the
name of science will have consequences we cannot begin to predict or
understand.
A ban on this procedure helps to redirect science to equally
promising areas. In addition, such a ban does not ban cloning and
nuclear transfer techniques for the production of DNA, molecules, cells
other than human embryos, tissues, organs, plants and animals. The type
of ban that I support does nothing to restrict the vast majority of
medical advancements that have and will continue to pave the way for
potential cures for diseases such as Parkinson's, diabetes, spinal cord
injuries, and cancer.
But as elected officials, we must take action on matters of such
grave importance. Our legislative leadership is badly needed in this
area. For this reason, I ask for your support for the Human-Animal
Hybrid Prohibition Act.
______
By Mr. BAUCUS (for himself, Mr. Grassley, Mr. Levin, Mr. Wyden,
Mr. Obama, and Mr. Bingaman):
S. 2369. A bill to amend title 35, United States Code, to provide
that certain tax planning inventions are not patentable, and for other
purposes; to the Committee on the Judiciary.
Mr. BAUCUS. Mr. President, I am pleased to join with my Colleague
Senator Grassley in introducing legislation to provide that certain tax
planning inventions cannot be patented.
America's patent system promotes innovation and competitiveness in
all industries.
Article 1, section 8 of the Constitution authorized Congress to
establish a patent system. That system is meant to protect inventors
and promote the progress of science and ``useful arts.'' Today, we
refer to this as technological innovation.
[[Page S14492]]
In the Patent Act of 1793, Congress enacted a broad definition for
inventions that can be patented. But conditions were included. The
definition for what could be patented in 1793 is remarkably similar to
the definition in the United States Code today. And not every process
or discovery is patentable.
In 17th century England, the Crown would grant a monopoly over a
particular business line. Peter Meinhardt, in his book, ``Inventions,
Patents and Monopoly,'' described these ``letters-patent'' that
provided exclusive manufacturing rights as enriching ``the grantee at
the expense of the community.'' This is what our Founders and Congress
sought to avoid.
Today, a number of attorneys and accountants have begun applying for
and obtaining tax patents. These involve financial products, banking,
estate and gift, and tax preparation software.
The U.S. Patent and Trademark Office has granted at least 60 of these
tax patents. About 90 applications are pending.
I have heard from tax practitioners, including those in Montana, who
fear that tax patents will impede their ability to provide advice to
their clients. They are concerned that even obvious applications of the
tax law may become protected by tax patents. They also tell me that
some tax strategy patent applications appear to be for tax shelters and
other tax-motivated transactions.
The Treasury is also concerned about patent protection for tax
planning methods. In September, Treasury issued proposed regulations
requiring the disclosure of transactions that use a patented tax
strategy.
While this is a step in the right direction, these rules do not go
far enough to fix the real problem.
A taxpayer shouldn't be in the position of choosing to file a return
and pay a patent holder a fee for using a tax strategy in the return.
No one should have to pay a toll charge to comply with the tax laws.
They also should not have to conduct a due diligence check every time
that they comply with the tax laws to see if they are infringing a tax
patent.
As I understand it, a taxpayer might use a tax strategy based on
advice from a tax practitioner. The practitioner would prepare and file
a tax return using the patented strategy. The tax practitioner's
advice, the taxpayer's use of the transaction, and the preparation and
filing of the tax return could all be considered patent infringement.
These tax patents can also create traps for the unwary. If taxpayers
used a patented strategy, not knowing that it is not permitted under
the Internal Revenue Code, they could be subject to additional taxes,
penalties and interest.
Congress has previously enacted laws to limit what can be patented.
Limiting patentability for tax patents is another situation where
Congress must act.
I introduce our bill today with Senator Grassley. There are a number
of cosponsors from both sides of the aisle.
It would provide that the Patent Trademark Office could not issue
patents for tax planning inventions.
Tax planning inventions are generally tax plans, strategies,
techniques, schemes, processes, or systems that are designed to reduce,
minimize, avoid, or defer a taxpayer's Federal or State tax liability.
There is an important exception. This change would not affect the use
of tax preparation software to help practitioners and taxpayers prepare
tax or information returns.
Title 26 of the U.S. Code contains the Internal Revenue Code, a
public law that is available to everyone. No one should have the
capability to monopolize the tax law through the patenting of tax
strategies. This is why I believe that these tax planning inventions
should not be granted patent protection.
I urge my colleagues to join us in support of this legislation.
Mr. President, I ask unanimous consent that the text of the bill and
an analysis of the bill be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 2369
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. TAX PLANNING INVENTIONS NOT PATENTABLE.
(a) In General.--Section 101 of title 35, United States
Code, is amended--
(1) by striking ``Whoever'' and inserting ``(a) Patentable
Inventions.--Whoever'', and
(2) by adding at the end the following:
``(b) Tax Planning Inventions.--
``(1) Unpatentable subject matter.--A patent may not be
obtained for a tax planning invention.
``(2) Definitions.--For purposes of paragraph (1)--
``(A) the term `tax planning invention' means a plan,
strategy, technique, scheme, process, or system that is
designed to reduce, minimize, avoid, or defer, or has, when
implemented, the effect of reducing, minimizing, avoiding, or
deferring, a taxpayer's tax liability or is designed to
facilitate compliance with tax laws, but does not include tax
preparation software and other tools or systems used solely
to prepare tax or information returns,
``(B) the term `taxpayer' means an individual, entity, or
other person (as defined in section 7701 of the Internal
Revenue Code of 1986),
``(C) the terms `tax', `tax laws', `tax liability', and
`taxation' refer to any Federal, State, county, city,
municipality, foreign, or other governmental levy,
assessment, or imposition, whether measured by income, value,
or otherwise, and
``(D) the term `State' means each of the several States,
the District of Columbia, and any commonwealth, territory, or
possession of the United States.''.
(b) Applicability.--The amendments made by this section--
(1) shall take effect on the date of the enactment of this
Act,
(2) shall apply to any application for patent or
application for a reissue patent that is--
(A) filed on or after the date of the enactment of this
Act, or
(B) filed before that date if a patent or reissue patent
has not been issued pursuant to the application as of that
date, and
(3) shall not be construed as validating any patent issued
before the date of the enactment of this Act for an invention
described in section 101(b) of title 35, United States Code,
as added by this section.
____
Tax Patients
Present Law
Patents have increasingly been sought and issued for
various tax-related inventions, including strategies for
reducing a taxpayer's taxes.
In a 1998 case, State Street Bank, the U.S. Court of
Appeals for the Federal Circuit (''Federal Circuit Court'')
held that a method of doing business could be patented. The
case involved a data processing system for a partnership
structure of mutual funds that had advantageous tax
consequences. The case has been considered a key decision
allowing the patenting of business methods of all types.
Since 1998, numerous tax-related patents have been issued or
applied for, in some cases involving tax strategies less
related to computer or other mechanical data processing
systems. More recently, the Federal Circuit Court has
indicated that some business methods are unpatentable.
The patents that have been granted or applied for have
involved many aspects of the tax law, including financial
products, charitable giving, estate planning, and tax
deferred exchanges.
Reasons for Change
Tax-related patents, if valid, remove from the public
domain particular ways to satisfy a taxpayer's legal
obligations. Tax-related inventions that have been patented
cannot be practiced without the permission of the patent
holder. Thus, a tax-related patent may have the effect of
forcing or encouraging taxpayers to pay more tax than they
would otherwise lawfully owe, either because taxpayers are
not able to engage in a particular transaction or financial
structure without the permission of the patent holder or
because, if permission is granted, such permission requires
payment of an undesirable charge. Taxpayers might seek other,
more questionable alternatives to the patented invention in
an attempt to avoid the scope of the patent. Unauthorized use
of patented inventions may have adverse consequences for
taxpayers or their advisers, who may face patent infringement
suits for using, or suggesting use, of patented tax-related
inventions. This could undermine uniform application of the
tax laws, decrease public confidence in the nation's tax
laws, and increase public dissatisfaction with tax laws if
compliance must be accompanied by patent searches and
licensing.
The availability of patent protection also could encourage,
in a variety of ways, the
[[Page S14493]]
further development of aggressive tax shelter transactions or
of transactions that do not achieve the expected tax results.
For example, tax-related inventions do not necessarily have
to deliver their claimed tax benefits to be eligible for a
patent; yet strategies or methods that do not achieve the
intended tax result might be marketed as ``legitimate'' based
on the existence of a patent.
Finally, the creativity and ingenuity reflected in many tax
planning techniques developed over the years without patent
protection suggests that even without such protection there
are sufficient incentives for tax planning innovation.
Explanation of Provision
Under the provision, a patent may not be obtained for a tax
planning invention.
A tax planning invention means a plan, strategy, technique,
scheme, process, or system that is designed to reduce,
minimize, avoid, or defer, or has, when implemented, the
effect of reducing, minimizing, avoiding, or deferring, a
taxpayer's tax liability, or is designed to facilitate
compliance with tax laws, but does not include tax
preparation software and other tools or systems used solely
to prepare tax or information returns.
The term ``taxpayer'' is defined as an individual, entity,
or other person (as defined in section 7701 of the Internal
Revenue Code of 1986).
The terms ``tax,'' ``tax laws,'' ``tax liability,'' and
``taxation'' refer to any Federal, State, county, city,
municipality, foreign, or other governmental levy,
assessment, or imposition, whether measured by income, value,
or otherwise.
The term ``State'' means each of the several States, the
District of Columbia, and any commonwealth, territory, or
possession of the United States.
No inference is intended as to whether any business method,
including any tax-related invention, is otherwise patentable
under present law, or as to whether any software is entitled
under present law to patent protection as distinct from
copyright protection.
Effective Date
The provision takes effect on the date of enactment.
The provision shall apply to any application for a patent
or application for a reissue patent that is (a) filed on or
after such date of enactment; or (b) filed before such date
if a patent or reissue patent has not been issued pursuant to
the application as of that date.
The provision shall not be construed as validating any
patent issued before the date of enactment for an invention
described in section 101(b) of title 35, United States Code,
as amended by this section.
Mr. GRASSLEY. Mr. President, this legislation that Senator Baucus and
I are introducing changes the current rules governing tax patents.
Recently, the U.S. Patent and Trademark Office, PTO, has allowed the
patenting of tax strategies. Because of the serious policy concerns
about this practice, our legislation would make tax strategies an
unpatentable subject matter.
Tax patents are a relatively recent phenomenon. The rise of these
patents can be traced back to the 1998 opinion of the Federal Circuit
in State Street Bank v. Signature Financial Group that rejected a per
se rule that business methods could not be patented.
As of September 2007, the U.S. Patent and Trademark Office had
identified 60 issued tax related patents, with another 99 published tax
patent applications pending. The recent growth of these patents,
coupled with their deleterious effect on the tax system, necessitates
legislative action in this area.
Tax patents undermine the integrity and fairness of the Federal tax
system. They place taxpayers in the undesirable position of having to
choose between paying more than legally required in taxes or paying a
royalty to a third party for use of a tax planning invention that
reduces those taxes.
A patent holder can preclude others from using their tax strategy.
This may result in taxpayers paying more in taxes than is otherwise
legally required. An exclusive proprietary right should not be granted
for methods of compliance with the tax law, which is obligatory for
all.
The patentability of tax strategies also adds another layer of
complexity to the tax laws by requiring patent searches and potential
exposure to patent infringement suits.
This legislation contains a general prohibition on ``tax planning
inventions,'' with an exception for tax preparation software and other
tools or systems used solely to prepare tax or information returns.
I hope that we can move this legislation quickly. The House has
already included a version of prohibiting tax strategy patents in their
comprehensive patent reform bill. The Senate should act as well.
______
By Mr. BINGAMAN (for himself and Mr. Domenici):
S. 2370. A bill to clear title to certain real property in New Mexico
associated with the Middle Rio Grande Project, and for other purposes;
to the Committee on Energy and Natural Resources.
Mr. BINGAMAN. Mr. President, today I am pleased to introduce the
Albuquerque Biological Park Title Clarification Act with my colleague
Senator Domenici. A slightly different version of this bill passed the
Senate during the 107th, 108th, and 109th Congress. We are introducing
this legislation again in hopes of assisting the City of Albuquerque,
New Mexico clear title to several parcels of land located along the Rio
Grande. If title is cleared, the city will be free to proceed with
plans to improve the properties as part of a biological park project, a
city funded initiative to create a premier environmental educational
center for its citizens and the entire State of New Mexico.
The biological park project has been in the works since 1987 when the
city began to develop an aquarium and botanic garden along the banks of
the Rio Grande. Those facilities constitute just a portion of the
overall project. As part of this effort, in 1997, the city purchased
two properties from the Middle Rio Grande Conservancy District, MRGCD,
for $3,875,000. The first property, Tingley Beach, had been leased by
the city from MRGCD since 1931 and used for public park purposes. The
second property, San Gabriel Park, had been leased by the city since
1963, and also used for public park purposes.
In the year 2000, the city's plans were interrupted when the U.S.
Bureau of Reclamation asserted that in 1953, it had acquired ownership
of all of MRGCD's property associated with the Middle Rio Grande
Project. The United States assertion called into question the validity
of the 1997 transaction between the city and MRGCD. Both MRGCD and the
city dispute the United States' claim of ownership.
This dispute is unnecessarily complicating the city's progress in
developing the biological park project. If the matter is left to
litigation, the delay will be indefinite. Reclamation has already
determined that the two properties are surplus to the needs of the
Middle Rio Grande Project. In fact, the record indicates that
Reclamation once considered releasing its interest in the properties
for $1.00 each. Obviously, the Federal interest in these properties is
low while the local interest is high. This bill is tailored to address
this local interest by disclaiming any Federal interest in the two
properties at issue. To avoid future complications, the bill also
disclaims any Federal interest in several other parcels associated with
the BioPark. The general dispute concerning title to Middle Rio Grande
Project works is left for the courts to decide.
I hope my colleagues will work with me to resolve this issue. This
bill represents a simple solution to a local problem caused by Federal
action. I urge my colleagues to once again support this legislation.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2370
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Albuquerque Biological Park
Title Clarification Act''.
SEC. 2. PURPOSE.
The purpose of this Act is to direct the Secretary of the
Interior to issue a quitclaim deed conveying any right,
title, and interest the United States may have in and to
Tingley Beach, San Gabriel Park, or the BioPark Parcels to
the City, thereby removing a potential cloud on the City's
title to these lands.
SEC. 3. DEFINITIONS.
In this Act:
(1) City.--The term ``City'' means the City of Albuquerque,
New Mexico.
(2) Biopark parcels.--The term ``BioPark Parcels'' means a
certain area of land containing 19.16 acres, more or less,
situated within the Town of Albuquerque Grant, in Projected
Section 13, Township 10 North, Range 2 East, N.M.P.M., City
of Albuquerque, Bernalillo County, New Mexico, comprised of
the following platted tracts and lot, and MRGCD tracts:
(A) Tracts A and B, Albuquerque Biological Park, as the
same are shown and designated
[[Page S14494]]
on the Plat of Tracts A & B, Albuquerque Biological Park,
recorded in the Office of the County Clerk of Bernalillo
County, New Mexico on February 11, 1994 in Book 94C, Page 44;
containing 17.9051 acres, more or less.
(B) Lot B-1, Roger Cox Addition, as the same is shown and
designated on the Plat of Lots B-1 and B-2 Roger Cox
Addition, recorded in the Office of the County Clerk of
Bernalillo County, New Mexico on October 3, 1985 in Book C28,
Page 99; containing 0.6289 acres, more or less.
(C) Tract 361 of MRGCD Map 38, bounded on the north by
Tract A, Albuquerque Biological Park, on the east by the
westerly right-of-way of Central Avenue, on the south by
Tract 332B MRGCD Map 38, and on the west by Tract B,
Albuquerque Biological Park; containing 0.30 acres, more or
less.
(D) Tract 332B of MRGCD Map 38; bounded on the north by
Tract 361, MRGCD Map 38, on the west by Tract 32A-1-A, MRGCD
Map 38, and on the south and east by the westerly right-of-
way of Central Avenue; containing 0.25 acres, more or less.
(E) Tract 331A-1A of MRGCD Map 38, bounded on the west by
Tract B, Albuquerque Biological Park, on the east by Tract
332B, MRGCD Map 38, and on the south by the westerly right-
of-way of Central Avenue and Tract A, Albuquerque Biological
Park; containing 0.08 acres, more or less.
(3) Middle rio grande conservancy district.--The terms
``Middle Rio Grande Conservancy District'' and ``MRGCD'' mean
a political subdivision of the State of New Mexico, created
in 1925 to provide and maintain flood protection and
drainage, and maintenance of ditches, canals, and
distribution systems for irrigation and water delivery and
operations in the Middle Rio Grande Valley.
(4) Middle rio grande project.--The term ``Middle Rio
Grande Project'' means the works associated with water
deliveries and operations in the Rio Grande basin as
authorized by the Flood Control Act of 1948 (Public Law 80-
858; 62 Stat. 1175) and the Flood Control Act of 1950 (Public
Law 81-516; 64 Stat. 170).
(5) San gabriel park.--The term ``San Gabriel Park'' means
the tract of land containing 40.2236 acres, more or less,
situated within Section 12 and Section 13, T10N, R2E,
N.M.P.M., City of Albuquerque, Bernalillo County, New Mexico,
and described by New Mexico State Plane Grid Bearings
(Central Zone) and ground distances in a Special Warranty
Deed conveying the property from MRGCD to the City, dated
November 25, 1997.
(6) Tingley beach.--The term ``Tingley Beach'' means the
tract of land containing 25.2005 acres, more or less,
situated within Section 13 and Section 24, T10N, R2E, and
secs. 18 and 19, T10N, R3E, N.M.P.M., City of Albuquerque,
Bernalillo County, New Mexico, and described by New Mexico
State Plane Grid Bearings (Central Zone) and ground distances
in a Special Warranty Deed conveying the property from MRGCD
to the City, dated November 25, 1997.
SEC. 4. CLARIFICATION OF PROPERTY INTEREST.
(a) Required Action.--The Secretary of the Interior shall
issue a quitclaim deed conveying any right, title, and
interest the United States may have in and to Tingley Beach,
San Gabriel Park, and the BioPark Parcels to the City.
(b) Timing.--The Secretary shall carry out the action in
subsection (a) as soon as practicable after the date of
enactment of this title and in accordance with all applicable
law.
(c) No Additional Payment.--The City shall not be required
to pay any additional costs to the United States for the
value of San Gabriel Park, Tingley Beach, and the BioPark
Parcels.
SEC. 5. OTHER RIGHTS, TITLE, AND INTERESTS UNAFFECTED.
(a) In General.--Except as expressly provided in section 4,
nothing in this Act shall be construed to affect any right,
title, or interest in and to any land associated with the
Middle Rio Grande Project.
(b) Ongoing Litigation.--Nothing contained in this Act
shall be construed or utilized to affect or otherwise
interfere with any position set forth by any party in the
lawsuit pending before the United States District Court for
the District of New Mexico, 99-CV-01320-JAP-RHS, entitled Rio
Grande Silvery Minnow v. John W. Keys, III, concerning the
right, title, or interest in and to any property associated
with the Middle Rio Grande Project.
______
By Mr. BAUCUS (for himself and Mr. Grassley):
S. 2374. A bill to amend the Internal Revenue Code of 1986 to make
technical corrections, and for other purposes; to the Committee on
Finance.
Mr. BAUCUS. Mr. President, today we are pleased to introduce the Tax
Technical Corrections Act of 2007. 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.
Mr. GRASSLEY. 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 nonpartisan staff of the Joint
Committee on Taxation. A technical enters the list only if all staffs
agree it is appropriate.
Mr. BAUCUS. 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. It is our hope that we can move this package of technicals in
December if possible.
Mr. President, I ask consent that the text of the bill be printed in
the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2374
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. Amendment related to the Jobs and Growth Tax Relief
Reconciliation Act of 2003.
Sec. 9. Amendments related to the Economic Growth and Tax Relief
Reconciliation Act of 2001.
Sec. 10. Amendments related to the Tax Relief Extension Act of 1999.
Sec. 11. Amendment related to the Internal Revenue Service
Restructuring and Reform Act of 1998.
Sec. 12. 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
[[Page S14495]]
``(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 (subject to the limitation of
section 55(b)(3)) if the taxpayer's taxable excess (as so
defined) were equal to the amount excluded under subsection
(a) for such taxable year.
``(2) Treatment of ordinary loss.--
``(A) Regular tax.--If, for any taxable year, a taxpayer's
net capital gain exceeds taxable income, in determining the
tax under paragraph (1)(A)(ii)--
``(i) there shall be treated as adjusted net capital gain
the lesser of--
``(I) the adjusted net capital gain (determined without
regard to this paragraph), or
``(II) the amount of such excess,
``(ii) there shall be treated as unrecaptured section 1250
gain the lesser of--
``(I) the unrecaptured section 1250 gain (determined
without regard to this paragraph), or
``(II) the amount of such excess reduced by adjusted net
capital gain (as determined under clause (i)), and
``(iii) there shall be treated as 28-percent rate gain the
amount of such excess reduced by the sum of--
``(I) the amount treated as adjusted net capital gain under
clause (i), and
``(II) the amount treated as unrecaptured section 1250 gain
under clause (ii).
``(B) Alternative minimum tax.--The rules of subparagraph
(A) shall apply for purposes of determining the amount under
paragraph (1)(B)(ii), except that such subparagraph shall be
applied by substituting `taxable excess (as defined in
section 55(b)(1)(A)(ii))' for `taxable income'.''.
(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
[[Page S14496]]
(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 ex-
ceed--''.
(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) Amendment Related to Section 248 of the Act.--
Subsection (a) of section 1355 is amended by adding at the
end the following new paragraph:
``(8) Puerto rico treated as part of domestic trade.--For
purposes of paragraphs (6) and (7), Puerto Rico shall be
treated as a place in the United States and not as a foreign
place.''.
(b) Amendments Related to Section 339 of the Act.--
[[Page S14497]]
(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.
(c) 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).
(d) 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)''.
(e) 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''.
(f) 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. 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 after December 31, 2007, in
taxable years ending after such date.
SEC. 9. 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. 10. 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. 11. 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. 12. 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
[[Page S14498]]
(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) Paragraphs (1)(B) and (2)(B) of section 48(c) are each
amended by striking ``paragraph (1)'' and inserting
``subsection (a)''.
(9) Clause (ii) of section 48A(d)(4)(B) is amended by
striking ``subsection'' both places it appears.
(10)(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''.
(11) The last sentence of section 125(b)(2) is amended by
striking ``last sentence'' and inserting ``second sentence''.
(12) Subclause (II) of section 167(g)(8)(C)(ii) is amended
by striking ``section 263A(j)(2)'' and inserting ``section
263A(i)(2)''.
(13)(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)''.
(14) Subclause (II) of section 170(e)(1)(B)(i) is amended
by inserting ``, but without regard to clause (ii) thereof''
after ``paragraph (7)(C)''.
(15)(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''.
(16)(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.''.
(17) 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.''.
(18) 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.''.
(19) Paragraph (1) of section 954(c) is amended by
redesignating subparagraph (I) as subparagraph (H).
(20) Paragraph (33) of section 1016(a), as redesignated by
section 7(b)(1)(C), is amended by striking ``section 25C(e)''
and inserting ``section 25C(f)''.
(21) Paragraph (36) of section 1016(a), as redesignated by
section 7(b)(1)(C), is amended by striking ``section 30C(f)''
and inserting ``section 30C(e)(1)''.
(22) Subparagraph (G) of section 1260(c)(2) is amended by
adding ``and'' at the end.
(23)(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)''.
(24) 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)''.
(25) Paragraph (2) of section 1400O is amended by striking
``under of'' and inserting ``under''.
(26) 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.''.
(27) 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).''.
(28) Paragraph (4) of section 4101(a) (relating to
registration in event of change of ownership) is redesignated
as paragraph (5).
(29) Paragraph (6) of section 4965(c) is amended by
striking ``section 4457(e)(1)(A)'' and inserting ``section
457(e)(1)(A)''.
(30) 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.
(31) 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''.
(32) 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)''.
(33)(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).
(34) Subparagraph (A) of section 6211(b)(4) is amended by
striking ``and 34'' and inserting ``34, and 35''.
(35) Subparagraphs (A) and (B) of section 6230(a)(3) are
each amended by striking ``section 6013(e)'' and inserting
``section 6015''.
(36) 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).
(37) 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)''.
(38)(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.
(39) Subparagraph (C) of section 6707A(e)(2) is amended by
striking ``section 6662A(e)(2)(C)'' and inserting ``section
6662A(e)(2)(B)''.
(40)(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)''.
(41) Section 9006 is amended by striking ``Comptroller
General'' each place it appears and inserting ``Commission''.
(42) 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).
(43) 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''.
(44) 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)''.
[[Page S14499]]
(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)(36), 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 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.
(2) 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''.
(3) 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.
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