[Congressional Record (Bound Edition), Volume 153 (2007), Part 23]
[Senate]
[Pages 31593-31603]
[From the U.S. 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

[[Page 31594]]

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.
       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

[[Page 31595]]

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.
  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

[[Page 31596]]

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 Patents


                              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 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.

[[Page 31597]]


                                 ______
                                 
      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 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

[[Page 31598]]

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
       ``(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

[[Page 31599]]

     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
       (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

[[Page 31600]]

     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.--
       (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''.

[[Page 31601]]

       (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
       (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

[[Page 31602]]

     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)''.
       (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''.

[[Page 31603]]

       (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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