[Congressional Record Volume 153, Number 177 (Thursday, November 15, 2007)]
[Senate]
[Pages S14494-S14499]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      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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