# Pub. L. 101-508: changes to the Internal Revenue Code 1990-11-05, 104 Stat. 1388. Source: . ## Legislative history - Bill: [H.R. 5835](https://www.congress.gov/bill/101st-congress/house-bill/5835) ## § 1: Tax imposed - § 1(a), § 1(b), § 1(c), § 1(d), § 1(e): Pub. L. 101–508, § 11101(a), amended subsecs. (a) to (e) generally, substituting three-tiered tax tables for all categories applicable to tax years after Dec. 31, 1990, for prior two-tiered tax tables. - § 1(f)(1): Pub. L. 101–508, § 11101(d)(1)(A)(i), substituted “1990” for “1988”. - § 1(f)(3)(B): Pub. L. 101–508, § 11101(d)(1)(A)(ii), substituted “1989” for “1987”. - § 1(f)(6)(A): Pub. L. 101–508, § 11104(b)(1), substituted “section 151(d)(4)” for “section 151(d)(3)”. - § 1(f)(6)(A): Pub. L. 101–508, § 11103(c), inserted reference to section 68(b)(2). - § 1(f)(6)(A): Pub. L. 101–508, § 11101(b)(2), struck out “subsection (g)(4),” after “paragraph (2)(A),”. - § 1(f)(6)(B): Pub. L. 101–508, § 11104(b)(2), substituted “section 151(d)(4)(A)” for “section 151(d)(3)”. - § 1(g): Pub. L. 101–508, § 11101(d)(2), redesignated subsec. (i) as (g). - § 1(g): Pub. L. 101–508, § 11101(b)(1), struck out subsec. (g) which provided for phaseout of 15-percent rate and personal exemptions. - § 1(h): Pub. L. 101–508, § 11101(d)(2), redesignated subsec. (j) as (h) and struck out former subsec. (h) which provided tax schedules for taxable years beginning in 1987. - § 1(i): Pub. L. 101–508, § 11101(d)(2), redesignated subsec. (i) as (g). - § 1(j): Pub. L. 101–508, § 11101(d)(2), redesignated subsec. (j) as (h). - § 1(j): Pub. L. 101–508, § 11101(c), amended subsec. (j) generally. Prior to amendment, subsec. (j) read as follows: ## § 25: Interest on certain home mortgages - § 25(h): Pub. L. 101–508 substituted “December 31, 1991” for “September 30, 1990”. ## § 32: Earned income - § 32(a): Pub. L. 101–508, § 11111(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: “In the case of an eligible individual, there is allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to 14 percent of so much of the earned income for the taxable year as does not exceed $5,714.” - § 32(b): Pub. L. 101–508, § 11111(a), substituted heading for one which read “Limitation” and amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The amount of the credit allowable to a taxpayer under subsection (a) for any taxable year shall not exceed the excess (if any) of— - § 32(c): Pub. L. 101–508, § 11111(a), amended subsec. (c) generally, inserting “and special rules” in heading and substituting present provisions for provisions defining “eligible individual” and “earned income”. - § 32(i)(1): Pub. L. 101–508, § 11101(d)(1)(B), substituted “1989” for “1987”. - § 32(i)(2)(A): Pub. L. 101–508, § 11111(e)(1), (2), substituted “clause (i) of subparagraph (B)” for “clause (i) or (ii) of subparagraph (B)” in cl. (i) and “clause (ii)” for “clause (iii)” in cl. (ii). - § 32(i)(2)(B): Pub. L. 101–508, § 11111(e)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “The dollar amounts referred to in this subparagraph are— - § 32(j): Pub. L. 101–508, § 11111(b), added subsec. (j). ## § 38: General business credit - § 38(b)(1): Pub. L. 101–508, § 11813(b)(2)(A), substituted “section 46” for “section 46(a)”. - § 38(b)(4): Pub. L. 101–508, § 11511(b)(1), struck out “plus” at end. - § 38(b)(5): Pub. L. 101–508, § 11611(b)(1), struck out “plus” at end. - § 38(b)(5): Pub. L. 101–508, § 11511(b)(1), substituted “, plus” for period at end. - § 38(b)(6): Pub. L. 101–508, § 11611(b)(1), substituted “, plus” for period at end. - § 38(b)(6): Pub. L. 101–508, § 11511(b)(1), added par. (6). - § 38(b)(7): Pub. L. 101–508, § 11611(b)(1), added par. (7). - § 38(c)(2): Pub. L. 101–508, § 11813(b)(2)(B), redesignated par. (3) as (2) and struck out former par. (2) which permitted an offset of regular investment tax credit against 25 percent of minimum tax. - § 38(c)(2): Pub. L. 101–508, § 11813(b)(2)(C), inserted “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “46(e)(1)” and “(as so in effect)” after “46(e)(2)”. - § 38(c)(3): Pub. L. 101–508, § 11813(b)(2)(B), redesignated par. (3) as (2). - § 38(d): Pub. L. 101–508, § 11813(b)(2)(D)(i), substituted “any provision” for “sections 46(f), 47(a), 196(a), and any other provision” in introductory provisions. - § 38(d)(2): Pub. L. 101–508, § 11813(b)(2)(D)(ii), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The order in which credits attributable to a percentage referred to in section 46(a) are used shall be determined on the basis of the order in which such percentages are listed in section 46(a) as of the close of the taxable year in which the credit is used.” - § 38(d): Pub. L. 101–508, § 11813(b)(2)(D)(iii), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the employee plan percentage (as defined in section 46(a)(2)(E), as in effect on the day before the date of the enactment of the Tax Reform Act of 1984) shall be treated as referred to after section 46(a)(2).” ## § 39: Carryback and carryforward of unused credits - § 39(d): Pub. L. 101–508, § 11801(a)(2), struck out par. (1) which related to carryforwards from an unused credit year which did not expire before first taxable year beginning after Dec. 31, 1983, par. (2) which related to carrybacks in determining amount allowable as credit including net tax liability, par. (3) which related to similar rules for research credit under section 30, and par. (4) which provided for no carryback of low-income housing credit before 1987. - § 39(d): Pub. L. 101–508, § 11611(b)(2), added par. (5) relating to carryback of section 44 credit. - § 39(d): Pub. L. 101–508, § 11511(b)(2), added par. (5) relating to carryback of enhanced oil recovery credit. ## § 40: Alcohol, etc., used as fuel - § 40(a)(2): Pub. L. 101–508, § 11502(a)(1), substituted “, plus” for period at end. - § 40(a)(3): Pub. L. 101–508, § 11502(a)(2), added par. (3). - § 40(b): Pub. L. 101–508, § 11502(e)(2), which directed the insertion of “, and except as provided in subsection (h)” in introductory provisions without specifying the location of such insertion, was executed after “section” to reflect the probable intent of Congress. - § 40(b): Pub. L. 101–508, § 11502(b)(3), substituted “, alcohol credit, and small ethanol producer credit” for “and alcohol credit” in heading. - § 40(b)(4), § 40(b)(5): Pub. L. 101–508, § 11502(b)(1), (2), added par. (4) and redesignated former par. (4) as (5). - § 40(d)(3)(C), § 40(d)(3)(D): Pub. L. 101–508, § 11502(d)(1), (2), added subpar. (C), redesignated former subpar. (C) as (D), and substituted “subparagraph (A), (B), or (C)” for “subparagraph (A) or (B)”. - § 40(e): Pub. L. 101–508, § 11502(f), amended subsec. (e) generally, substituting present provisions for provisions prohibiting the applicability of this section to any sale or use after Dec. 31, 1992, and prohibiting carryovers to any taxable year beginning after Dec. 31, 1994. - § 40(g): Pub. L. 101–508, § 11502(c), added subsec. (g). - § 40(h): Pub. L. 101–508, § 11502(e)(1), added subsec. (h). ## § 41: Credit for increasing research activities - § 41(e)(5)(C)(i): Pub. L. 101–508, § 11101(d)(1)(C)(i), inserted before period at end “, by substituting ‘calendar year 1987’ for ‘calendar year 1989’ in subparagraph (B) thereof”. - § 41(e)(5)(C)(ii): Pub. L. 101–508, § 11101(d)(1)(C)(ii), (iii), substituted “1989” for “1987” and inserted at end “Such substitution shall be in lieu of the substitution under clause (i).” - § 41(h): Pub. L. 101–508, § 11402(a), substituted “December 31, 1991” for “December 31, 1990” wherever appearing and “January 1, 1992” for “January 1, 1991” wherever appearing. ## § 42: Low-income housing credit - § 42(b)(1): Pub. L. 101–508, § 11701(a)(1)(B), struck out at end “A building shall not be treated as described in subparagraph (B) if, at any time during the credit period, moderate rehabilitation assistance is provided with respect to such building under section 8(e)(2) of the United States Housing Act of 1937.” - § 42(c)(2): Pub. L. 101–508, § 11701(a)(1)(A), inserted at end “Such term does not include any building with respect to which moderate rehabilitation assistance is provided, at any time during the compliance period, under section 8(e)(2) of the United States Housing Act of 1937.” - § 42(c)(2): Pub. L. 101–508, § 11407(b)(5)(A), inserted before period at end of last sentence “(other than assistance under the Stewart B. McKinney Homeless Assistance Act of 1988 (as in effect on the date of the enactment of this sentence))”. - § 42(d)(2)(D)(i)(I): Pub. L. 101–508, § 11812(b)(3), inserted “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “section 167(k).” - § 42(d)(2)(D)(ii): Pub. L. 101–508, § 11407(b)(8), added subcl. (V). - § 42(d)(5)(B): Pub. L. 101–508, § 11812(b)(3), which directed the insertion of “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “section 167(k)”, was executed to the text, and not the heading, of subpar. (B). See 1996 Amendment note above. - § 42(d)(5): Pub. L. 101–508, § 11407(b)(4), inserted at end “If the Secretary of Housing and Urban Development determines that sufficient data for any period are not available to apply this clause on the basis of census tracts, such Secretary shall apply this clause for such period on the basis of enumeration districts.” - § 42(d)(5): Pub. L. 101–508, § 11701(a)(2)(B), inserted before period at end “for such year”. - § 42(d)(5): Pub. L. 101–508, § 11701(a)(2)(A), which directed the insertion of “which is designated by the Secretary of Housing and Urban Development and, for the most recent year for which census data are available on household income in such tract,” after “census tract”, was executed by making the insertion after “any census tract” to reflect the probable intent of Congress. - § 42(g)(2)(B)(iv): Pub. L. 101–508, § 11407(b)(3), added cl. (iv). - § 42(g)(2)(D)(i): Pub. L. 101–508, § 11701(a)(3)(A), inserted before period at end “and such unit continues to be rent-restricted”. - § 42(g)(2)(D)(ii): Pub. L. 101–508, § 11701(a)(4), inserted at end “In the case of a project described in section 142(d)(4)(B), the preceding sentence shall be applied by substituting ‘170 percent’ for ‘140 percent’ and by substituting ‘any low-income unit in the building is occupied by a new resident whose income exceeds 40 percent of area median gross income’ for ‘any residential unit in the building (of a size comparable to, or smaller than, such unit) is occupied by a new resident whose income exceeds such income limitation’.” - § 42(g)(3)(A): Pub. L. 101–508, § 11701(a)(5)(A), substituted “the 1st year of the credit period for such building” for “the 12-month period beginning on the date the building is placed in service”. - § 42(h)(3)(C): Pub. L. 101–508, § 11701(a)(6)(A), substituted “the sum of the amounts described in clauses (i) and (iii)” for “the amount described in clause (i)” in second sentence. - § 42(h)(3)(D)(ii)(II): Pub. L. 101–508, § 11701(a)(6)(B), substituted “the sum of the amounts described in clauses (i) and (iii)” for “the amount described in clause (i)”. - § 42(h)(5)(B): Pub. L. 101–508, § 11407(b)(9)(A), inserted “own an interest in the project (directly or through a partnership) and” after “nonprofit organization is to”. - § 42(h)(5)(C)(i), § 42(h)(5)(C)(ii), § 42(h)(5)(C)(iii): Pub. L. 101–508, § 11407(b)(9)(B), added cl. (ii) and redesignated former cl. (ii) as (iii). - § 42(h)(5)(D)(i): Pub. L. 101–508, § 11407(b)(9)(C), inserted “ownership and” before “material participation”. - § 42(h)(6)(B)(i): Pub. L. 101–508, § 11701(a)(7)(A), inserted before comma at end “and which prohibits the actions described in subclauses (I) and (II) of subparagraph (E)(ii)”. - § 42(h)(6)(B)(ii): Pub. L. 101–508, § 11701(a)(7)(B), substituted “requirement and prohibitions” for “requirement”. - § 42(h)(6)(B)(iii), § 42(h)(6)(B)(iv), § 42(h)(6)(B)(v): Pub. L. 101–508, § 11701(a)(8)(A), added cl. (iii) and redesignated former cls. (iii) and (iv) as (iv) and (v), respectively. - § 42(h)(6)(E)(i)(I): Pub. L. 101–508, § 11701(a)(9), inserted before comma “unless the Secretary determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such period”. - § 42(h)(6)(E)(ii)(II): Pub. L. 101–508, § 11701(a)(8)(C), inserted before period at end “not otherwise permitted under this section”. - § 42(h)(6)(F): Pub. L. 101–508, § 11701(a)(8)(D), inserted “the nonlow-income portion of the building for fair market value and” before “the low-income portion” in introductory provisions. - § 42(h)(6)(J), § 42(h)(6)(K), § 42(h)(6): Pub. L. 101–508, § 11701(a)(8)(B), redesignated subpars. (K) and (L) as (J) and (K), respectively, and struck out former subpar. (J) which related to sales of less than the low-income portions of a building. - § 42(i)(3)(D): Pub. L. 101–508, § 11407(b)(6), substituted “Certain students” for “Students in government-supported job training programs” in heading and amended text generally. Prior to amendment, text read as follows: “A unit shall not fail to be treated as a low-income unit merely because it is occupied by an individual who is enrolled in a job training program receiving assistance under the Job Training Partnership Act or under other similar Federal, State, or local laws.” - § 42(i)(7): Pub. L. 101–508, § 11701(a)(10), redesignated par. (8) as (7). - § 42(i)(7)(A): Pub. L. 101–508, § 11407(b)(1), substituted “the tenants (in cooperative form or otherwise) or resident management corporation of such building or by a qualified nonprofit organization (as defined in subsection (h)(5)(C)) or government agency” for “the tenants of such building”. - § 42(i)(8): Pub. L. 101–508, § 11701(a)(10), redesignated par. (8) as (7). - § 42(k)(1): Pub. L. 101–508, § 11813(b)(3)(A), substituted “49(a)(1)” for “46(c)(8)”, “49(a)(2)” for “46(c)(9)”, and “49(b)(1)” for “47(d)(1)”. - § 42(k)(2)(A)(ii): Pub. L. 101–508, § 11813(b)(3)(B), substituted “49(a)(1)(D)(iv)(II)” for “46(c)(8)(D)(iv)(II)”. - § 42(m)(1)(B)(ii), § 42(m)(1)(B)(iii), § 42(m)(1)(B): Pub. L. 101–508, § 11407(b)(7)(B), redesignated cls. (iii) and (iv) as (ii) and (iii), respectively, and struck out former cl. (ii) which read as follows: “which gives the highest priority to those projects as to which the highest percentage of the housing credit dollar amount is to be used for project costs other than the cost of intermediaries unless granting such priority would impede the development of projects in hard-to-develop areas,”. - § 42(m)(1)(B)(ii), § 42(m)(1)(B)(iii), § 42(m)(1)(B): Pub. L. 101–508, § 11407(b)(2), amended cl. (iv) generally. Prior to amendment, cl. (iv) read as follows: “which provides a procedure that the agency will follow in notifying the Internal Revenue Service of noncompliance with the provisions of this section which such agency becomes aware of.” - § 42(m)(2)(B): Pub. L. 101–508, § 11407(b)(7)(A), added cl. (iii) and inserted provision that cl. (iii) not be applied so as to impede the development of projects in hard-to-develop areas. - § 42: Pub. L. 101–508, § 11407(a)(1)(A), substituted “1991” for “1990” wherever appearing. - § 42: Pub. L. 101–508, § 11407(a)(1)(B), added par. (2) and struck out former par. (2) which read as follows: “For purposes of paragraph (1)(B), a building shall be treated as placed in service before 1990 if— ## § 43: Enhanced oil recovery credit - Enacted 26 U.S.C. § 43. ## § 44: Expenditures to provide access to disabled individuals - Enacted 26 U.S.C. § 44. ## § 45C: Clinical testing expenses for certain drugs for rare diseases or conditions - § 45C(b)(1): Pub. L. 101–508, § 11402(b)(2), substituted “December 31, 1991” for “December 31, 1990”. - § 45C: Pub. L. 101–508, § 11411, substituted “December 31, 1991” for “December 31, 1990”. ## § 45K: Credit for producing fuel from a nonconventional source - § 45K(b)(3)(A)(i)(III): Pub. L. 101–508, § 11813(b)(1)(A), substituted “section 48(a)(4)(C)” for “section 48(l)(11)(C)”. - § 45K(b)(4): Pub. L. 101–508, § 11813(b)(1)(B), substituted “section 49(b) or 50(a)” for “section 47” in two places. - § 45K(b)(5), § 45K(b): Pub. L. 101–508, § 11501(c)(1), added par. (5) and redesignated former par. (5) as (6). - § 45K(c)(1)(B), § 45K(c)(1)(C), § 45K(c)(1): Pub. L. 101–508, § 11816(a), inserted “and” at end of subpar. (B), substituted a period for a comma at end of subpar. (C), and struck out subpar. (D) which related to qualifying processed wood fuels, and subpar. (E) which related to steam produced from solid agricultural byproducts (not including timber byproducts). - § 45K(c)(2)(B): Pub. L. 101–508, § 11501(b)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “The term ‘gas produced from a tight formation’ shall only include— - § 45K(c)(3): Pub. L. 101–508, § 11813(b)(1)(C), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “The term ‘biomass’ means any organic material which is an alternate substance (as defined in section 48(l)(3)(B)) other than coal (including lignite) or any product of such coal.” - § 45K(c): Pub. L. 101–508, § 11816(b)(1), struck out par. (4) “Qualifying processed wood fuel” which read as follows: - § 45K(c): Pub. L. 101–508, § 11816(b)(1), struck out par. (5) “Agricultural byproduct steam” which read as follows: “Steam produced from solid agricultural byproducts which is used by the taxpayer in his trade or business shall be treated as having been sold by the taxpayer to an unrelated person on the date on which it is used.” - § 45K(d)(4): Pub. L. 101–508, § 11816(b)(2), amended par. (4) generally, striking out “Special rules applicable to” before “Gas” in heading, redesignating former subpar. (A) as par. (4), striking out subpar. (B) which related to the reference price and application of phaseout for Devonian shale, and making minor changes in phraseology. - § 45K(d)(5), § 45K(d)(6): Pub. L. 101–508, § 11816(b)(3), (4), redesignated par. (6) as (5), substituted “subparagraph (C)” for “subparagraph (C), (D), or (E)”, and struck out former par. (5) which read as follows: “In the case of a facility for the production of— - § 45K(d)(7), § 45K(d)(8), § 45K(d): Pub. L. 101–508, § 11816(b)(3), redesignated pars. (7) to (9) as (6) to (8), respectively. - § 45K(f): Pub. L. 101–508, § 11816(b)(5), amended subsec. (f) generally, redesignating former par. (1) as subsec. (f), making minor changes in phraseology, substituting par. (2) for former par. (1)(B) which read as follows: “which are sold after December 31, 1979, and before January 1, 2003.”, and striking out former par. (2) which related to special rules applicable to qualified processed wood and solid agricultural byproduct steam. - § 45K(f)(1)(A): Pub. L. 101–508, § 11501(a)(1), substituted “1993” for “1991”. - § 45K(f)(1)(B): Pub. L. 101–508, § 11501(a)(2), substituted “2003” for “2001”. ## § 46: Amount of credit - § 46: Pub. L. 101–508, § 11813(a), amended section generally, substituting present provisions for provisions relating to amount of investment credit, determination of percentages, qualified investments and qualified progress expenditures, limitations with respect to certain persons, a limitation in the case of certain regulated companies, a 50 percent credit in the case of certain vessels, and special rule for cooperatives. - § 46: Pub. L. 101–508, § 11406, substituted “Dec. 31, 1991” for “Sept. 30, 1990” in table items (viii) C. and (ix) B. ## § 47: Rehabilitation credit - § 47: Pub. L. 101–508, § 11813(a), amended section generally, substituting section catchline for one which read: “Certain dispositions, etc., of section 38 property” and in text substituting present provisions for provisions relating to general rules regarding disposition of section 38 property, nonapplicability of section in certain cases, the treatment of any increase in tax under the section, increases in nonqualified nonrecourse financing, and transfers between spouses or incident to divorce. - § 47(b)(1), § 47(b)(2), § 47(b): Pub. L. 101–508, § 11801(c)(8)(A), inserted “or” at end of par. (1), substituted a period for “, or” at end of par. (2), and struck out par. (3) which related to nonapplicability of subsec. (a) in the case of a transfer of section 38 property related to exchanges under final system plan for ConRail. ## § 48: Energy credit - § 48: Pub. L. 101–508, § 11813(a), amended section generally, substituting section catchline for one which read: “Definitions; special rules” and in text substituting present provisions for provisions defining section 38 property, new section 38 property, used section 38 property, provisions relating to certain leased property, estates and trusts, special rules for qualified rehabilitated buildings, credit for movie and television films, treatment of energy property, application of certain transitional rules, definitions of certain credits, definition of single purpose agricultural or horticultural structure, basis adjustment to section 38 property, certain section 501(d) organizations, special rules relating to sound recordings, and a cross reference to section 381 of this title. - § 48(a)(8): Pub. L. 101–508, § 11801(c)(6)(A), struck out par. (8) “Amortized property” which read as follows: “Any property with respect to which an election under section 167(k), 184, or 188 applies shall not be treated as section 38 property.” ## § 49: At-risk rules - § 49: Pub. L. 101–508, § 11813(a), amended section generally, substituting section catchline for one which read: “Termination of regular percentage” and in text substituting present provisions for provisions relating to the nonapplicability of the regular percentage to any property placed in service after Dec. 31, 1985, for purposes of determining the investment tax credit, exceptions to such rule, the 35 percent reduction in credit for taxable years after 1986, the full basis adjustment in determining investment tax credit, and the definition of transition property and treatment of progress expenditures. ## § 50: Other special rules - Enacted 26 U.S.C. § 50. ## § 51: Amount of credit - § 51(c)(4): Pub. L. 101–508 substituted “December 31, 1991” for “September 30, 1990”. ## § 52: Special rules - § 52(e): Pub. L. 101–508 substituted “section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” for “section 46” in concluding provisions. ## § 55: Alternative minimum tax imposed - § 55(b)(1)(A): Pub. L. 101–508, § 11102(a), substituted “24 percent” for “21 percent”. - § 55(c)(1): Pub. L. 101–508, § 11813(b)(5), substituted “section 49(b) or 50(a)” for “section 47”. ## § 56: Adjustments in computing alternative minimum taxable income - § 56(d)(1)(B)(ii): Pub. L. 101–508, § 1702(e)(1)(A), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “in the case of taxable years beginning after December 31, 1986, section 172(b)(2) shall be applied by substituting ‘90 percent of alternative minimum taxable income determined without regard to the alternative tax net operating loss deduction’ for ‘taxable income’ each place it appears.” - § 56(a)(1)(D): Pub. L. 101–508, § 11812(b)(4), substituted “section 168(i)(10)” for “section 167(l)(3)(A)”. - § 56(b)(1): Pub. L. 101–508, § 11103(b), added subpar. (F). - § 56(b)(3): Pub. L. 101–508, § 11801(c)(9)(G)(i), substituted “section 422” for “section 422A”. - § 56(b)(3): Pub. L. 101–508, § 11801(c)(9)(G)(ii), which directed the substitution of “section 422(c)(2)” for “section 422A(c)(2)”, was executed by substituting “Section 422(c)(2)” for “Section 422A(c)(2)”. See 1996 Amendment note above. - § 56(c): Pub. L. 101–508, § 11801(c)(2)(A), substituted heading for one which read: “Adjustment for book income or adjusted current earnings” and amended text generally. Prior to amendment, text read as follows: - § 56(d)(1)(A): Pub. L. 101–508, § 11531(b)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the amount of such deduction shall not exceed 90 percent of alternative minimum taxable income determined without regard to such deduction, and”. - § 56: Pub. L. 101–508, § 11801(a)(3), struck out subsec. (f) which related to adjustments for book income of corporations with respect to minimum taxable income, adjusted net book income, adjustments for certain taxes, special rules for related corporations for consolidated returns, treatment of dividends, statements covering different periods, special rule for cooperatives, treatment and limitation of taxes on dividends from 936 corporations, rules for Alaska native corporations, special rules for life insurance companies, exclusion of certain income from transfer of stock for debt, secretarial authority to adjust items, applicable financial statements, earnings and profits used, special rules for more than one statement and exception for certain corporations. - § 56: Pub. L. 101–508, § 11801(c)(2)(B), which directed that pars. (1) and (2) “of section 59(g) are each amended by striking ‘beginning after 1989’ ”, was executed to pars. (1) and (2)(A) of subsec. (g) of this section after “any taxable year”. See 1996 Amendment note above. - § 56: Pub. L. 101–508, § 11801(c)(2)(C), substituted heading for one which read: “Special rule for dividends from section 936 companies” and amended text generally. Prior to amendment, text read as follows: “In the case of any dividend received from a corporation eligible for the credit provided by section 936, rules similar to the rules of subparagraph (F) of subsection (f)(1) shall apply, except that ‘75 percent’ shall be substituted for ‘50 percent’ in clause (i) thereof.” - § 56: Pub. L. 101–508, § 11704(a)(1), substituted “years” for “year”. - § 56: Pub. L. 101–508, § 11301(b), redesignated subpars. (G) and (H) as (F) and (G), respectively, and struck out former subpar. (F) which provided that acquisition expenses for life insurance companies be capitalized and amortized in accordance with the treatment generally required under generally accepted accounting principles as if this subparagraph applied to all taxable years. - § 56: Pub. L. 101–508, § 11531(a), added subsec. (h). ## § 57: Items of tax preference - § 57(a)(2)(D)(ii): Pub. L. 101–508, § 11815(b)(3), substituted “section 613(e)(2)” for “section 613(e)(3)”. - § 57(a)(4): Pub. L. 101–508, § 11801(c)(12)(A), struck out “585 or” after “section”. - § 57(a)(6): Pub. L. 101–508, § 11344, inserted at end “In the case of any taxable year beginning in 1991, such term shall not include any tangible personal property.” ## § 59: Other definitions and special rules - § 59(a)(1)(B), § 59(a)(1)(C), § 59(a)(1): Pub. L. 101–508, § 11801(c)(2)(D), inserted “and” at end of subpar. (B), redesignated subpar. (D) as (C), and struck out former subpar. (C) which read as follows: “for purposes of section 904, any increase in alternative minimum taxable income by reason of section 56(c)(1)(A) (relating to adjustment for book income) shall have the same proportionate source (and character) as alternative minimum taxable income determined without regard to such increase, and”. - § 59(a)(2): Pub. L. 101–508, § 11531(b)(2), inserted before period at end “and the alternative tax energy preference deduction under section 56(h)”. - § 59(j): Pub. L. 101–508, § 11101(d)(3)(A), substituted “section 1(g)” for “section 1(i)” in pars. (1), (2)(A), (B)(i)(I), (II), (D), and (3). - § 59(j)(1)(B): Pub. L. 101–508, § 11702(d)(1), inserted “(or, if greater, the child’s share of the unused parental minimum tax exemption)” before period at end. - § 59(j)(2): Pub. L. 101–508, § 11101(d)(3)(B), substituted “section 1(g)(3)(B)” for “section 1(i)(3)(B)”. - § 59(j)(2): Pub. L. 101–508, § 11702(d)(3), substituted “paragraphs (3)(D), (5), and (6)” for “paragraphs (5) and (6)”. - § 59(j): Pub. L. 101–508, § 11702(d)(2), added par. (3). ## § 62: Adjusted gross income defined - § 62(a)(13): Pub. L. 101–508, § 11802(e)(1), amended par. (13) generally. Prior to amendment, par. (13) read as follows: “The deduction allowed by section 220.” ## § 63: Taxable income defined - § 63(c)(4)(B): Pub. L. 101–508, § 11101(d)(1)(D), inserted before period at end “, by substituting ‘calendar year 1987’ for ‘calendar year 1989’ in subparagraph (B) thereof”. - § 63: Pub. L. 101–508, § 11801(a)(4), struck out subsec. (h) “Transitional rule for taxable years beginning in 1987” which read as follows: “In the case of any taxable year beginning in 1987, paragraph (2) of subsection (c) shall be applied— ## § 68: Overall limitation on itemized deductions - Enacted 26 U.S.C. § 68. ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(t)(2)(C), § 72(t)(2)(D): Pub. L. 101–508, § 11802(a)(1), (2), redesignated subpar. (D) as (C) and struck out former subpar. (C) “Exceptions for distributions from employee stock ownership plans” which read as follows: “Any distribution made before January 1, 1990, to an employee from an employee stock ownership plan (as defined in section 4975(e)(7)) or a tax credit employee stock ownership plan (as defined in section 409) if— - § 72(t)(3)(A): Pub. L. 101–508, § 11802(a)(3), substituted “and (C)” for “(C), and (D)”. ## § 79: Group-term life insurance purchased for employees - § 79(d)(6): Pub. L. 101–508 substituted “any former employee” for “any retired employee”. ## § 83: Property transferred in connection with performance of services - § 83(i): Pub. L. 101–508 struck out subsec. (i) “Transition rules” which read as follows: “This section shall apply to property transferred after June 30, 1969, except that this section shall not apply to property transferred— ## § 108: Income from discharge of indebtedness - § 108(e)(8): Pub. L. 101–508, § 11325(b)(2), inserted provision at end that any stock which is a disqualified stock, as so defined, not be treated as stock for purposes of this paragraph. - § 108(e)(10)(B): Pub. L. 101–508, § 11325(b)(1), substituted heading for one which read: “Exception for title 11 cases and insolvent debtors” and amended text generally. Prior to amendment, text read as follows: “Subparagraph (A) shall not apply in the case of a debtor in a title 11 case or to the extent the debtor is insolvent.” - § 108(e): Pub. L. 101–508, § 11325(a)(1), added par. (11). - § 108(g)(1)(B): Pub. L. 101–508, § 11813(b)(6), substituted “section 49(a)(1)(D)(iv)” for “section 46(c)(8)(D)(iv)”. ## § 125: Cafeteria plans - § 125(f): Pub. L. 101–508 substituted “section 117,” for “section 117, 124,”. ## § 127: Educational assistance programs - § 127(c)(1): Pub. L. 101–508, § 11403(b), struck out at end “The term ‘educational assistance’ also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree.” - § 127(d): Pub. L. 101–508, § 11403(a), substituted “December 31, 1991” for “September 30, 1990”. ## § 135: Income from United States savings bonds used to pay higher education tuition and fees - § 135(b)(2)(B): Pub. L. 101–508, § 11702(h)(1), substituted “the $40,000 and $60,000 amounts” for “each dollar amount” in introductory provisions. - § 135(b)(2)(B)(ii): Pub. L. 101–508, § 11101(d)(1)(E), struck out before period at end “, determined by substituting ‘calendar year 1989’ for ‘calendar year 1987’ in subparagraph (B) thereof”. - § 135(b)(2)(C): Pub. L. 101–508, § 11702(h)(2), struck out “(A) or” after “subparagraph”. ## § 143: Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond - § 143(a)(1): Pub. L. 101–508, § 11408(a), substituted “December 31, 1991” for “September 30, 1990” in heading and text. - § 143(m)(1): Pub. L. 101–508, § 11408(c)(3)(A), substituted “increased by the lesser of—” and subpars. (A) and (B) for “increased by the recapture amount with respect to such indebtedness.” - § 143(m)(2)(B): Pub. L. 101–508, § 11408(c)(1)(C), substituted “9 years” for “10 years”. - § 143(m)(4)(A)(iii): Pub. L. 101–508, § 11408(c)(2)(A), added cl. (iii). - § 143(m)(4)(C)(i): Pub. L. 101–508, § 11408(c)(1)(A), substituted heading for one which read: “Dispositions during 1st 5 years” and amended text generally. Prior to amendment, text read as follows: “If the disposition of the taxpayer’s interest in the residence occurs during the 5-year period beginning on the testing date, the holding period percentage is the percentage determined by dividing the number of full months during which the requirements of subparagraph (D) were met by 60.” - § 143(m)(4)(C)(ii), § 143(m)(4)(C): Pub. L. 101–508, § 11408(c)(1)(B), redesignated cl. (iii) as (ii) and struck out former cl. (ii) “Dispositions during 2d 5 years” which read as follows: “If the disposition of the taxpayer’s interest in the residence occurs during the 5-year period following the 5-year period described in clause (i), the holding period percentage is the percentage determined by dividing— - § 143(m)(4)(E): Pub. L. 101–508, § 11408(c)(2)(B), added subpar. (E). - § 143(m)(5): Pub. L. 101–508, § 11408(c)(2)(C)(i), added heading and struck out former heading which read: “Reduction of recapture amount if taxpayer meets certain income limitations”. - § 143(m)(5)(A): Pub. L. 101–508, § 11408(c)(2)(C)(i), added subpar. (A) and struck out former subpar. (A) “In general” which read as follows: “The recapture amount which would (but for this paragraph) apply with respect to any disposition during a taxable year shall be reduced (but not below zero) by 2 percent of such amount for each $100 by which adjusted qualifying income exceeds the modified adjusted gross income of the taxpayer for such year.” - § 143(m)(5)(B), § 143(m)(5): Pub. L. 101–508, § 11408(c)(2)(C), redesignated subpar. (C) as (B), substituted “paragraph (4)” for “this paragraph” in introductory provisions, and struck out former subpar. (B) “Adjusted qualifying income” which read as follows: “For purposes of this paragraph, the term ‘adjusted qualifying income’ means the amount equal to the sum of— - § 143(m)(6): Pub. L. 101–508, § 11408(c)(3)(B)(i), substituted “Special rules relating to limitation” for “Limitation” in heading. - § 143(m)(6)(A): Pub. L. 101–508, § 11408(c)(3)(B)(ii), (iii), struck out at beginning “In no event shall the recapture amount of the taxpayer with respect to any indebtedness exceed 50 percent of the gain (if any) on the disposition of the taxpayer’s interest in the residence.” and substituted “paragraph (1)” for “the preceding sentence”. - § 143(m)(7)(B)(ii): Pub. L. 101–508, § 11408(c)(3)(C), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the amounts described in paragraph (5)(B)(ii) for each category of family size for each year of the 10-year period beginning on the date the financing was provided.” ## § 144: Qualified small issue bond; qualified student loan bond; qualified redevelopment bond - § 144(a)(12)(B): Pub. L. 101–508 substituted “December 31, 1991” for “September 30, 1990”. ## § 145: Qualified 501(c)(3) bond - § 145(d)(4): Pub. L. 101–508 substituted “section 47(c)(1)(C)” for “section 48(g)(1)(C)” wherever appearing and “section 47(c)(1)(C)(i)” for “section 48(g)(1)(C)(i)”. ## § 147: Other requirements applicable to certain private activity bonds - § 147(d)(3)(B): Pub. L. 101–508 substituted “section 47(c)(2)(B)” for “section 48(g)(2)(B)”. ## § 148: Arbitrage - § 148(c)(2)(D): Pub. L. 101–508, § 11701(j)(5), substituted “subsection (f)(4)(C)(iv)” for “subsection (f)(4)(B)(iv)(IV)” in introductory provisions and “subsection (f)(4)(C)(v)” for “subsection (f)(4)(B)(iv)(VIII)” in cl. (i). - § 148(c)(2)(D), § 148(c)(2): Pub. L. 101–508, § 11701(j)(6), made technical amendment to Pub. L. 101–239, § 7652(c). See 1989 Amendment note below. - § 148(f)(4)(B)(i): Pub. L. 101–508, § 11701(j)(2), substituted in last sentence “replacement fund, and gross proceeds which arise after such 6 months and which were not reasonably anticipated as of the date of issuance, shall not be considered gross proceeds for purposes of subclause (I) only” for “replacement fund shall not be considered gross proceeds for purposes of this subparagraph only” in concluding provisions. - § 148(f)(4)(B)(i)(II): Pub. L. 101–508, § 11701(j)(1), amended subcl. (II) generally. Prior to amendment, subcl. (II) read as follows: “the requirements of paragraph (2) are met after such 6 months with respect to earnings on amounts in any reasonably required reserve or replacement fund.” - § 148(f)(4)(B)(iv): Pub. L. 101–508, § 11701(j)(4), amended cl. (iv) generally, substituting present provisions for provisions which provided for a special rule to be applied during a 2-year period for certain construction bonds from issues in which at least 75 percent of the net proceeds of the issue were to be used for construction expenditures with respect to property which was owned by a governmental unit or a 501(c)(3) organization. - § 148(f)(4)(C), § 148(f)(4)(D), § 148(f)(4): Pub. L. 101–508, § 11701(j)(3)(A), (B), added subpar. (C) and redesignated former subpars. (C) and (D) as (D) and (E), respectively. ## § 151: Allowance of deductions for personal exemptions - § 151(d): Pub. L. 101–508, § 11104(a), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “For purposes of this section— - § 151(d)(3)(B): Pub. L. 101–508, § 11101(d)(1)(F), substituted “1989” for “1987”. ## § 162: Trade or business expenses - § 162(l)(3): Pub. L. 101–508, § 11111(d)(2), substituted heading for one which read: “Coordination with medical deduction” and amended text generally. Prior to amendment, text read as follows: “Any amount paid by a taxpayer for insurance to which paragraph (1) applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under section 213(a).” - § 162(l): Pub. L. 101–508, § 11410(a), substituted “December 31, 1991” for “September 30, 1990”. ## § 163: Interest - § 163(e)(5)(A): Pub. L. 101–508, § 11701(b)(1), amended last sentence generally. Prior to amendment, last sentence read as follows: “For purposes of clause (ii), rules similar to the rules of subsection (i)(3)(B) shall apply in determining the time when the original issue discount is paid.” - § 163(i)(3): Pub. L. 101–508, § 11701(b)(2)(B), inserted sentence at end. - § 163(i)(3)(B): Pub. L. 101–508, § 11701(b)(2)(A), struck out “(or stock)” after “obligation” wherever appearing. - § 163(j)(2): Pub. L. 101–508, § 11701(c)(2), substituted “or on any other day” for “and on such other days”. - § 163(j)(2): Pub. L. 101–508, § 11701(c)(1), substituted “reduced (but not below zero) by such” for “less such” in introductory provisions. ## § 167: Depreciation - § 167(b): Pub. L. 101–508, § 11812(a), added subsec. (b) and struck out former subsec. (b) “Use of certain methods and rates” which read as follows: “For taxable years ending after December 31, 1953, the term ‘reasonable allowance’ as used in subsection (a) shall include (but shall not be limited to) an allowance computed in accordance with regulations prescribed by the Secretary, under any of the following methods: - § 167(c): Pub. L. 101–508, § 11812(a)(1), redesignated subsec. (g) as (c) and struck out former subsec. (c) “Limitations on use of certain methods and rates” which read as follows: “Paragraphs (2), (3), and (4) of subsection (b) shall apply only in the case of property (other than intangible property) described in subsection (a) with a useful life of 3 years or more— - § 167(d): Pub. L. 101–508, § 11812(a)(1), redesignated subsec. (h) as (d) and struck out former subsec. (d) “Agreement as to useful life on which depreciation rate is based” which read as follows: “Where, under regulations prescribed by the Secretary, the taxpayer and the Secretary have, after August 16, 1954, entered into an agreement in writing specifically dealing with the useful life and rate of depreciation of any property, the rate so agreed upon shall be binding on both the taxpayer and the Secretary in the absence of facts or circumstances not taken into consideration in the adoption of such agreement. The responsibility of establishing the existence of such facts and circumstances shall rest with the party initiating the modification. Any change in the agreed rate and useful life specified in the agreement shall not be effective for taxable years before the taxable year in which notice in writing by certified mail or registered mail is served by the party to the agreement initiating such change. This subsection shall not apply with respect to property to which section 168 applies.” - § 167(e): Pub. L. 101–508, § 11812(a)(1), redesignated subsec. (r) as (e) and struck out former subsec. (e) which related to changes in method of depreciation from declining balance method and changes with respect to sections 1245 and 1250 property. - § 167(e)(3)(B): Pub. L. 101–508, § 11812(b)(1) substituted “(d)” for “(h)”. - § 167(e)(4)(B): Pub. L. 101–508, § 11812(b)(1), substituted “(d)” for “(h)” in heading and text. - § 167(f): Pub. L. 101–508, § 11812(a)(1), redesignated subsec. (s) as (f) and struck out former subsec. (f) “Salvage value” which read as follows: - § 167(g), § 167(h): Pub. L. 101–508, § 11812(a)(1), redesignated subsecs. (g) and (h) as (c) and (d), respectively. - § 167: Pub. L. 101–508, § 11812(a)(1), struck out subsec. (j) which related to special rules for section 1250 property including residential rental property and change in method of depreciation. - § 167: Pub. L. 101–508, § 11812(a)(1), struck out subsec. (k) which related to depreciation of expenditures to rehabilitate low-income rental housing. - § 167: Pub. L. 101–508, § 11812(a)(1), struck out subsec. (l) which related to reasonable allowance in case of property of certain utilities, pre-1970 public utility property and post-1969 public utility property. - § 167: Pub. L. 101–508, § 11812(a)(1), struck out subsec. (m) which related to class lives. - § 167: Pub. L. 101–508, § 11812(a)(1), struck out subsec. (p) which related to straight line method for boilers fueled by oil or gas. - § 167: Pub. L. 101–508, § 11812(a)(1), struck out subsec. (q) which related to retirement or replacement of certain boilers, etc., fueled by oil or gas. - § 167: Pub. L. 101–508, § 11812(a)(1), redesignated subsecs. (r) and (s) as (e) and (f), respectively. ## § 168: Accelerated cost recovery system - § 168(e)(2)(A): Pub. L. 101–508, § 11812(b)(2)(A), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “The term ‘residential rental property’ has the meaning given such term by section 167(j)(2)(B).” - § 168(e)(3)(B)(vi)(I): Pub. L. 101–508, § 11813(b)(9)(A)(i), which directed the substitution of “subparagraph (A) of section 48(a)(3) (or would be so described if ‘solar and wind’ were substituted for ‘solar’ in clause (i) thereof)” for “paragraph (3)(A)(viii), (3)(A)(ix) or (4) of section 48(l)” was executed by making the substitution for “paragraph (3)(A)(viii), (3)(A)(ix), or (4) of section 48(l)”. See 1996 Amendment note above. - § 168(e)(3)(B)(vi)(II): Pub. L. 101–508, § 11813(b)(9)(A)(ii), inserted “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “48(l)”. - § 168(e)(3)(D)(i): Pub. L. 101–508, § 11813(b)(9)(B)(i), substituted “subsection (i)(13)” for “section 48(p)”. - § 168(f)(2): Pub. L. 101–508, § 11812(b)(2)(C), substituted “subsection (i)(10)” for “section 167(l)(3)(A).” - § 168(g)(4): Pub. L. 101–508, § 11813(b)(9)(C), substituted heading for one which read: “Property used predominantly outside the United States” and amended text generally. Prior to amendment, text read as follows: “For purposes of this subsection, rules similar to the rules under section 48(a)(2) (including the exceptions contained in subparagraph (B) thereof) shall apply in determining whether property is used predominantly outside the United States. In addition to the exceptions contained in such subparagraph (B), there shall be excepted any satellite or other spacecraft (or any interest therein) held by a United States person if such satellite or spacecraft was launched from within the United States.” - § 168(i)(1): Pub. L. 101–508, § 11812(b)(2)(D), inserted at end “The reference in this paragraph to subsection (m) of section 167 shall be treated as a reference to such subsection as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990.” - § 168(i)(7)(B)(i): Pub. L. 101–508, § 11801(c)(8)(B), struck out, “371(a), 374(a),” after “361,”. - § 168(i)(9)(A)(ii): Pub. L. 101–508, § 11812(b)(2)(E), struck out “(determined without regard to section 167(l))” after “section 167”. - § 168(i)(10): Pub. L. 101–508, § 11812(b)(2)(B), amended par. (10) generally. Prior to amendment, par. (10) read as follows: “The term ‘public utility property’ has the meaning given such term by section 167(l)(3)(A).” - § 168(i)(13): Pub. L. 101–508, § 11813(b)(9)(B)(ii), added par. (13). ## § 170: Charitable, etc., contributions and gifts - § 170(h)(4)(B)(ii): Pub. L. 101–508, § 11813(b)(10), substituted “section 47(c)(3)(B)” for “section 48(g)(3)(B)”. - § 170(i): Pub. L. 101–508, § 11801(a)(11), (c)(5), redesignated subsec. (j) as (i) and struck out former subsec. (i) which related to rule for nonitemization of deductions, applicable percentage for individuals, limitation for taxable years beginning before 1985, and termination. - § 170(j), § 170(k), § 170(l), § 170(m), § 170(n): Pub. L. 101–508, § 11801(c)(5), redesignated subsecs. (j) to (n) as (i) to (m), respectively. ## § 172: Net operating loss deduction - § 172(b): Pub. L. 101–508, § 11811(a), amended subsec. (b) generally, substituting present provisions for provisions delineating years to which loss may be carried, relating to amount of carrybacks and carryovers, and providing for special rules for foreign expropriation losses. - § 172(b)(1): Pub. L. 101–508, § 11701(d), struck out “a C corporation” after “means” in introductory provisions, substituted “a C corporation which acquires” for “which acquires” in subcl. (I), “a C corporation” for “a corporation” in subcl. (II), and “any C corporation which is a successor” for “any successor corporation” in subcl. (III). - § 172(f): Pub. L. 101–508, § 11811(b)(1), (2)(A), redesignated subsec. (j) as (f), substituted heading for one which read: “Rules relating to product liability losses”, and amended text generally, substituting present provisions for provisions defining terms “product liability loss” and “product liability”, and providing for an election with respect to carrybacks of such losses. - § 172(g): Pub. L. 101–508, § 11811(b)(1), redesignated subsec. (l) as (g) and struck out former subsec. (g) which related to carryover of net operating losses for certain regulated transportation corporations. - § 172(g)(2): Pub. L. 101–508, § 11811(b)(3), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “In applying paragraph (2) of subsection (b), the portion of the net operating loss for any taxable year which is attributable to the deduction allowed under section 166(a) shall be treated in a manner similar to the manner in which a foreign expropriation loss is treated.” - § 172: Pub. L. 101–508, § 11811(b)(1), redesignated subsec. (m) as (h) and struck out former subsec. (h) which defined “foreign expropriation loss”. - § 172: Pub. L. 101–508, § 11324(a), in par. (3)(B)(ii), formerly subsec. (m)(3)(B)(ii), substituted heading for one which read: “Exceptions” and amended text generally. Prior to amendment, text read as follows: “The term ‘major stock acquisition’ shall not include— - § 172: Pub. L. 101–508, § 11811(b)(4), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “In applying paragraph (2) of subsection (b), the corporate equity reduction interest loss shall be treated in a manner similar to the manner in which a foreign expropriation loss is treated.” - § 172: Pub. L. 101–508, § 11704(a)(2), substituted “subsection (b)(2)” for “subsection (B)(2)” in heading. - § 172: Pub. L. 101–508, § 11811(b)(1), redesignated subsec. (n) as (i) and struck out former subsec. (i) which provided for rules relating to mortgage disposition losses of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. - § 172: Pub. L. 101–508, § 11811(b)(1), redesignated subsec. (j) as (f). - § 172: Pub. L. 101–508, § 11811(b)(1), struck out subsec. (k) which related to definitions and special rules relating to deferred statutory or tort liability losses. - § 172: Pub. L. 101–508, § 11811(b)(1), redesignated subsecs. (l) to (n) as (g) to (i), respectively. ## § 179: Election to expense certain depreciable business assets - § 179(d)(1): Pub. L. 101–508, § 11813(b)(11)(A), substituted “section 1245 property (as defined in section 1245(a)(3))” for “section 38 property”. - § 179(d)(5): Pub. L. 101–508, § 11813(b)(11)(B), amended par. (5) generally. Prior to amendment, par. (5) read as follows: “This section shall not apply to any section 179 property purchased by any person described in section 46(e)(3) unless the credit under section 38 is allowable with respect to such person for such property (determined without regard to this section).” ## § 190: Expenditures to remove architectural and transportation barriers to the handicapped and elderly - § 190(c): Pub. L. 101–508, § 11611(c), substituted “$15,000” for “$35,000”. - § 190: Pub. L. 101–508, § 11801(a)(14), struck out subsec. (d) which related to application of section to taxable years beginning after Dec. 31, 1976, and before Jan. 1, 1983, and to taxable years beginning after Dec. 31, 1983. ## § 196: Deduction for certain unused business credits - § 196(c)(1): Pub. L. 101–508, § 11813(b)(12)(A), substituted “section 46” for “section 46(a)” and “section 50(c)” for “section 48(q)”. - § 196(c)(5): Pub. L. 101–508, § 11511(b)(3), added par. (5). - § 196(d): Pub. L. 101–508, § 11813(b)(12)(B), substituted “section 46” for “section 46(a)” and “other than the rehabilitation credit” for “other than a credit to which section 48(q)(3) applies”. ## § 213: Medical, dental, etc., expenses - § 213(d)(9): Pub. L. 101–508, § 11342(a), added par. (9). - § 213: Pub. L. 101–508, § 11111(d)(1), added subsec. (f). ## § 216: Deduction of taxes, interest, and business depreciation by cooperative housing corporation tenant-stockholder - § 216(e): Pub. L. 101–508 substituted “corporations” for “associations” in heading and “corporation” for “association” after “housing” in text. ## § 226: Cross reference - § 226: Pub. L. 101–508 renumbered section 221 of this title as this section. ## § 243: Dividends received by corporations - § 243(b): Pub. L. 101–508 amended subsec. (b) generally, substituting present provisions for provisions defining “qualifying dividends”, providing for an election by or for an affiliated group, the effect of an election, and the termination of an election, defining an “affiliated group”, and providing special rules for insurance companies. ## § 263: Capital expenditures - § 263(b): Pub. L. 101–508, § 11801(a)(16), struck out subsec. (b) “Expenditures for advertising and good will” which read as follows: “If a corporation has, for the purpose of computing its excess profits tax credit under chapter 2E or subchapter D of chapter 1 of the Internal Revenue Code of 1939 claimed the benefits of the election provided in section 733 or section 451 of such code, as the case may be, no deduction shall be allowable under section 162 to such corporation for expenditures for advertising or the promotion of good will which, under the rules and regulations prescribed under section 733 or section 451 of such code, as the case may be, may be regarded as capital investments.” - § 263(c): Pub. L. 101–508, § 11815(b)(3), substituted “section 613(e)(2)” for “section 613(e)(3)”. ## § 265: Expenses and interest relating to tax-exempt income - § 265(a)(2): Pub. L. 101–508, § 11801(c)(4), struck out before period at end “, or to purchase or carry any certificate to the extent the interest on such certificate is excludable under section 128”. ## § 274: Disallowance of certain entertainment, etc., expenses - § 274(l): Pub. L. 101–508, § 11802(b)(1), in amending par. (2) generally, struck out “(A) In general” and subpar. (B) which provided for phasein deductions of skybox tickets in the 1987 and 1988 taxable years. - § 274(n)(2): Pub. L. 101–508, § 11802(b)(2)(A)(ii), (iii), substituted “described in subparagraph (D)” for “described in subparagraph (E)” and “of subparagraph (E)” for “of subparagraph (F)” in concluding provisions. - § 274(n)(2)(D), § 274(n)(2): Pub. L. 101–508, § 11802(b)(2)(A)(i), redesignated subpars. (E) and (F) as (D) and (E), respectively, and struck out former subpar. (D) which read as follows: “in the case of an expense for food or beverages before January 1, 1989, such expense is an integral part of a qualified meeting,”. - § 274(n)(3): Pub. L. 101–508, § 11802(b)(2)(B), struck out par. (3) “Qualified meeting” which read as follows: “For purposes of paragraph (2)(D), the term ‘qualified meeting’ means any convention, seminar, annual meeting, or similar business program with respect to which— ## § 280F: Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes - § 280F: Pub. L. 101–508, § 11813(b)(13)(E), struck out “investment tax credit and” after “Limitation on” in section catchline. - § 280F(a)(1): Pub. L. 101–508, § 11813(b)(13)(A)(i), redesignated par. (2) as (1) and struck out former par. (1) “Investment tax credit” which read as follows: “The amount of the credit determined under section 46(a) for any passenger automobile shall not exceed $675.” - § 280F(a)(2): Pub. L. 101–508, § 11813(b)(13)(A)(i), redesignated par. (3) as (2). Former par. (2) redesignated (1). - § 280F(a)(2)(B): Pub. L. 101–508, § 11813(b)(13)(A)(ii), struck out “the credit determined under section 46(a) or” after “the amount of”. - § 280F(a): Pub. L. 101–508, § 11813(b)(13)(A)(i), redesignated par. (3) as (2). - § 280F(a): Pub. L. 101–508, § 11813(b)(13)(A)(i), struck out par. (4) “Special rule where election of reduced credit in lieu of the basis adjustment” which read as follows: “In the case of any election under section 48(q)(4) with respect to any passenger automobile, the limitation of paragraph (1) applicable to such passenger automobile shall be ⅔ of the amount which would be so applicable but for this paragraph.” - § 280F(b): Pub. L. 101–508, § 11813(b)(13)(B), redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) “Investment tax credit” which read as follows: “For purposes of this subtitle, any listed property shall not be treated as section 38 property for any taxable year unless such property is predominantly used in a qualified business use for such taxable year.” - § 280F(c)(1): Pub. L. 101–508, § 11813(b)(13)(C), struck out “credits and” after “Lessor’s” in heading. - § 280F(d)(3)(A): Pub. L. 101–508, § 11813(b)(13)(D), struck out “the amount of any credit allowable under section 38 to the employee or” after “of determining”. ## § 291: Special rules relating to corporate preference items - § 291(e)(1)(A): Pub. L. 101–508 struck out subpar. (A) “Excess reserves for losses on bad debts of financial institutions” which read as follows: “In the case of a financial institution to which section 585 applies, the excess of— ## § 305: Distributions of stock and stock rights - § 305(c): Pub. L. 101–508, § 11322(a), inserted sentence at end specifying the contents of regulations. - § 305(d)(1): Pub. L. 101–508, § 11801(c)(7)(A), struck out “(other than subsection (e))” after “this section”. - § 305(e), § 305(f): Pub. L. 101–508, § 11801(a)(17), (c)(7)(B), redesignated subsec. (f) as (e) and struck out former subsec. (e) relating to dividend reinvestment in stock of public utilities. ## § 306: Dispositions of certain stock - § 306: Pub. L. 101–508 struck out subsec. (h) which related to stock received in distributions and reorganizations to which 1939 Code applied. ## § 312: Effect on earnings and profits - § 312(k)(2): Pub. L. 101–508, § 11812(b)(5), substituted heading for one which read: “Exceptions” and amended text generally. Prior to amendment, text read as follows: “If for any taxable year beginning after June 30, 1972, a method of depreciation was used by the taxpayer which the Secretary has determined results in a reasonable allowance under section 167(a), and which is not— - § 312(k)(5): Pub. L. 101–508, § 11813(b)(14), substituted “section 50(c)” for “section 48(q)”. ## § 338: Certain stock purchases treated as asset acquisitions - § 338(h)(10)(C): Pub. L. 101–508 added subpar. (C). ## § 351: Transfer to corporation controlled by transferor - § 351(e)(2): Pub. L. 101–508 substituted “is used” for “are used”. ## § 354: Exchanges of stock and securities in certain reorganizations - § 354: Pub. L. 101–508 struck out subsec. (d) “Exchanges under the final system plan for ConRail” which read as follows: “No gain or loss shall be recognized if stock or securities in a corporation are, in pursuance of an exchange to which paragraph (1) or (2) of section 374(c) applies, exchanged solely for stock of the Consolidated Rail Corporation, securities of such Corporation, certificates of value of the United States Railway Association, or any combination thereof.” ## § 355: Distribution of stock and securities of a controlled corporation - § 355(c): Pub. L. 101–508, § 11321(a), added subsec. (c) and struck out former subsec. (c) which read as follows: - § 355(c): Pub. L. 101–508, § 11702(e)(2), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “Section 311 shall apply to any distribution— - § 355(d): Pub. L. 101–508, § 11321(a), added subsec. (d). ## § 356: Receipt of additional consideration - § 356(d)(2)(B)(i): Pub. L. 101–508 struck out “or (d)” after “subsection (c)”. ## § 357: Assumption of liability - § 357(a), § 357(b)(1): Pub. L. 101–508, § 11801(c)(8)(F)(i), substituted “351 or 361” for “351, 361, 371, or 374” wherever appearing. - § 357(c)(2): Pub. L. 101–508, § 11801(c)(8)(F)(ii), inserted “or” at end of subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: “to which section 371 or 374 applies, or”. ## § 358: Basis to distributees - § 358(a): Pub. L. 101–508, § 11801(c)(8)(G)(i), substituted “or 361” for “361, 371(b), or 374”. - § 358(b): Pub. L. 101–508, § 11801(c)(8)(G)(ii), struck out par. (3) “Certain exchanges involving ConRail” which read as follows: “To the extent provided in regulations prescribed by the Secretary in the case of an exchange to which section 354(d) (or so much of section 356 as relates to section 354(d)) or section 374(c) applies, for purposes of allocating basis under paragraph (1), stock of the Consolidated Rail Corporation and the certificate of value of the United States Railway Association which relates to such stock shall, so long as they are held by the same person, be treated as one property.” ## § 361: Nonrecognition of gain or loss to corporations; treatment of distributions - § 361(c)(5): Pub. L. 101–508 added par. (5). ## § 367: Foreign corporations - § 367(a)(5): Pub. L. 101–508 substituted “subsection (a) or (b) of section 361” for “section 361”. ## § 381: Carryovers in certain corporate acquisitions - § 381(c)(6): Pub. L. 101–508, § 11812(b)(6)(A), substituted “sections 167 and 168” for “subsections (b), (j), and (k) of section 167”. - § 381(c)(15): Pub. L. 101–508, § 11801(c)(10)(A), struck out par. (15) “Indebtedness of certain personal holding companies” which read as follows: “The acquiring corporation shall be considered to be the distributor or transferor corporation for the purpose of determining the applicability of subsection (c) of section 545, relating to deduction with respect to payment of certain indebtedness.” - § 381(c)(24), § 381(c)(25), § 381(c)(26): Pub. L. 101–508, § 11812(b)(6)(B), redesignated pars. (25) and (26) as (24) and (25), respectively, and struck out former par. (24) “Method of computing depreciation deduction” which read as follows: “The acquiring corporation shall be treated as the distributor or transferor corporation for purposes of computing the deduction allowable under section 168(a) on property acquired in a distribution or transfer with respect to so much of the basis in the hands of the acquiring corporation as does not exceed the adjusted basis in the hands of the distributor or transferor corporation.” ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(h): Pub. L. 101–508, which directed that “section 401(h) is amended by inserting ‘, and subject to the provisions of section 420’ ” without specifying that amendment was to the Internal Revenue Code of 1986, was executed by making the insertion in subsec. (h) of this section. See 1996 Amendment note above. ## § 402: Taxability of beneficiary of employees’ trust - § 402(a): Pub. L. 101–508, § 11801(c)(9)(I)(i), substituted “section 424” for “section 425”. - § 402(a): Pub. L. 101–508, § 11801(c)(9)(I)(ii), substituted “section 424(f)” for “section 425(f)”. ## § 403: Taxation of employee annuities - § 403(b)(12)(A): Pub. L. 101–508 inserted “involving a one-time irrevocable election” after “similar arrangement” in second sentence. ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(a)(1)(C): Pub. L. 101–508 substituted “section 168(i)(10)(C)” for “section 167(l)(3)(A)(iii)”. ## § 413: Collectively bargained plans, etc. - § 413(c)(7)(B): Pub. L. 101–508 substituted “Assets” for “Asset” in heading. ## § 414: Definitions and special rules - § 414(n)(2)(B): Pub. L. 101–508 struck out “(6 months in the case of core health benefits)” after “1 year”. ## § 420: Transfers of excess pension assets to retiree health accounts - Enacted 26 U.S.C. § 420. ## § 421: General rules - § 421(a): Pub. L. 101–508, § 11801(c)(9)(B)(i)(I), substituted “422(a) or 423(a)” for “422(a), 422A(a), 423(a), or 424(a)” in introductory provisions. - § 421(a)(1): Pub. L. 101–508, § 11801(c)(9)(B)(i)(II), struck out “except as provided in section 422(c)(1),” before “no income”. - § 421(a)(2): Pub. L. 101–508, § 11801(c)(9)(B)(i)(III), substituted “424(a)” for “425(a)”. - § 421(b): Pub. L. 101–508, § 11801(c)(9)(B)(ii), substituted “422(a) or 423(a)” for “422(a), 422A(a), 423(a), or 424(a)” and “422(a)(1) or 423(a)(1),” for “422(a)(1), 422A(a)(1), 423(a)(1), or 424(a)(1),”. - § 421(c)(1)(A): Pub. L. 101–508, § 11801(c)(9)(B)(iii)(I), substituted “422(a) and 423(a)” for “422(a), 422A(a), 423(a), and 424(a)”. - § 421(c)(1)(B): Pub. L. 101–508, § 11801(c)(9)(B)(iii)(II), substituted “section 423(c)” for “sections 423(c) and 424(c)(1)”. - § 421(c)(2), § 421(c)(3)(A): Pub. L. 101–508, § 11801(c)(9)(B)(iii)(III), substituted “423(c)” for “422(c)(1), 423(c), or 424(c)(1)” wherever appearing. - § 421(c)(3)(B): Pub. L. 101–508, § 11801(c)(9)(B)(iii)(IV), (V), substituted “section 423(c)” for “sections 422(c)(1), 423(c), and 424(c)(1)” and “such section” for “such sections”. ## § 422: Incentive stock options - § 422: Pub. L. 101–508, § 11801(c)(9)(A)(i), renumbered section 422A of this title as this section. - § 422(a)(2): Pub. L. 101–508, § 11801(c)(9)(C)(i), substituted “424(a)” for “425(a)”. - § 422(c)(5), § 422(c)(6), § 422(c)(7), § 422(c): Pub. L. 101–508, § 11801(c)(9)(C)(ii), redesignated pars. (6) to (8) as (5) to (7), respectively, and struck out former par. (5) “Coordination with sections 422 and 424” which read as follows: “Sections 422 and 424 shall not apply to an incentive stock option.” ## § 423: Employee stock purchase plans - § 423(a): Pub. L. 101–508, § 11801(c)(9)(D)(i), struck out “(other than a restricted stock option granted pursuant to a plan described in section 424(c)(3)(B))” after “December 31, 1963”. - § 423(a)(2): Pub. L. 101–508, § 11801(c)(9)(D)(ii), substituted “424(a)” for “425(a)”. - § 423(b)(3): Pub. L. 101–508, § 11801(c)(9)(E), substituted “424(d)” for “425(d)”. ## § 424: Definitions and special rules - § 424: Pub. L. 101–508, § 11801(c)(9)(A)(i), renumbered section 425 of this title as this section. - § 424(a): Pub. L. 101–508, § 11801(c)(9)(F)(i), substituted “424(a)” for “425(a)”. - § 424(c)(3)(A)(ii): Pub. L. 101–508, § 11801(c)(9)(F)(ii), substituted “422(a)(1) or 423(a)(1)” for “422(a)(1), 422A(a)(1), 423(a)(1), or 424(a)(1)”. - § 424(d): Pub. L. 101–508, § 11801(c)(9)(F)(iii), substituted “422(b)(6) and 423(b)(3)” for “422(b)(7), 422A(b)(6), 423(b)(3), and 424(b)(3)”. - § 424(g): Pub. L. 101–508, § 11801(c)(9)(F)(iv), substituted “422(a)(2) and 423(a)(2)” for “422(a)(2), 422A(a)(2), 423(a)(2), and 424(a)(2)” and “424(a)” for “425(a)”. - § 424(h)(2): Pub. L. 101–508, § 11801(c)(9)(F)(v)(I), added par. (2) and struck out former par. (2) which related to special rules for sections 423 and 424 options and to an exception that such rules would not apply with respect to a modification, extension or renewal of a restricted stock option before Jan. 1, 1964, if the aggregate of the monthly fair market value for 12 consecutive months before date of modification, etc., divided by 12 is an amount less than 80% of the fair market value of such stock on the date of original granting or the date of modification, etc., whichever is higher. - § 424(h)(3): Pub. L. 101–508, § 11801(c)(9)(F)(v)(III), struck out at end “If a restricted stock option is exercisable after the expiration of 10 years from the date such option is granted, subparagraph (B) shall not apply unless the terms of the option are also changed to make it not exercisable after the expiration of such period.” - § 424(h)(3)(B): Pub. L. 101–508, § 11801(c)(9)(F)(v)(II), substituted “section 423(b)(9)” for “sections 422(b)(6), 423(b)(9), and 424(b)(2)”. ## § 447: Method of accounting for corporations engaged in farming - § 447: Pub. L. 101–508, § 11702(b)(2), substituted “trade or business of farming” for “qualified farming trade or business”. - § 447: Pub. L. 101–508, § 11702(b)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “The term ‘qualified farming trade or business’ means the trade or business of farming sugar cane.” ## § 453B: Gain or loss on disposition of installment obligations - § 453B(d): Pub. L. 101–508 substituted heading for one which read: “Effect of distribution in liquidations to which section 332 applies” and amended text generally. Prior to amendment, text read as follows: “If— ## § 460: Special rules for long-term contracts - § 460(e): Pub. L. 101–508 substituted “section 168(e)(2)(A)(ii)” for “section 167(k)”. ## § 461: General rule for taxable year of deduction - § 461(i)(3)(C): Pub. L. 101–508 amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “any tax shelter (within the meaning of section 6662(d)(2)(C)(ii)).” ## § 465: Deductions limited to amount at risk - § 465(b)(6)(D): Pub. L. 101–508, § 11813(b)(15), substituted “49(a)(1)(D)(iv)” for “46(c)(8)(D)(iv)” wherever appearing. - § 465(c)(1)(E): Pub. L. 101–508, § 11815(b)(3), substituted “section 613(e)(2)” for “section 613(e)(3)”. ## § 468: Special rules for mining and solid waste reclamation and closing costs - § 468(a)(2)(B): Pub. L. 101–508 amended subpar. (B) generally, substituting present provisions for provisions providing for increase for interest and a phase-in of interest rates for taxable years ending before 1987. ## § 468B: Special rules for designated settlement funds - § 468B(e): Pub. L. 101–508 substituted “This section (other than subsection (g))” for “This section”. ## § 469: Passive activity losses and credits limited - § 469(i)(3)(B), § 469(i)(6)(B)(ii): Pub. L. 101–508, § 11813(b)(16)(A), substituted “rehabilitation credit determined under section 47” for “rehabilitation investment credit (within the meaning of section 48(o))”. - § 469(k)(1): Pub. L. 101–508, § 11813(b)(16)(B), substituted “rehabilitation credit determined under section 47” for “rehabilitation investment credit (within the meaning of section 48(o))”. - § 469: Pub. L. 101–508, § 11704(a)(6), substituted “pre-enactment” for “preenactment”. ## § 503: Requirements for exemption - § 503(d): Pub. L. 101–508 struck out subsec. (d) “Special rule for loans” which read as follows: “For purposes of the application of subsection (b)(1), in the case of a loan by a trust described in section 401(a), the following rules shall apply with respect to a loan made before March 1, 1954, which would constitute a prohibited transaction if made on or after March 1, 1954: ## § 512: Unrelated business taxable income - § 512(b)(14): Pub. L. 101–508 struck out par. (14) which read as follows: “Except as provided in paragraph (4), in the case of a church, or convention or association of churches, for taxable years beginning before January 1, 1976, there shall be excluded all gross income derived from a trade or business and all deductions directly connected with the carrying on of such trade or business if such trade or business was carried on by such organization or its predecessor before May 27, 1969.” ## § 513: Unrelated trade or business - § 513(h)(2)(C)(ii): Pub. L. 101–508 inserted before period at end “, by substituting ‘calendar year 1987’ for ‘calendar year 1989’ in subparagraph (B) thereof”. ## § 535: Accumulated taxable income - § 535(c)(5): Pub. L. 101–508 substituted “section 1561” for “sections 1561 and 1564”. ## § 541: Imposition of personal holding company tax - § 541: Pub. L. 101–508 struck out “(38.5 percent in the case of taxable years beginning in 1987)” after “28 percent”. ## § 545: Undistributed personal holding company income - § 545(c), § 545: Pub. L. 101–508 redesignated subsec. (d) as (c) and struck out former subsec. (c) which related to a special adjustment to taxable income for amounts used or set aside to pay or retire qualified indebtedness. ## § 582: Bad debts, losses, and gains with respect to securities held by financial institutions - § 582(c)(1): Pub. L. 101–508, § 11801(c)(11)(A), substituted “paragraph (2)” for “paragraph (5)”. - § 582(c)(2): Pub. L. 101–508, § 11801(a)(25), (c)(11)(B), redesignated par. (5) as (2) and struck out former par. (2) “Transitional rule for banks” which read as follows: “In the case of a bank, if the net long-term capital gains of the taxable year from sales or exchanges of qualifying securities exceed the net short-term capital losses of the taxable year from such sales or exchanges, such excess shall be considered as gain from the sale of a capital asset held for more than 6 months to the extent it does not exceed the net gain on sales and exchanges described in paragraph (1).” - § 582(c): Pub. L. 101–508, § 11801(a)(25), struck out par. (3) “Special rules” which read as follows: “For purposes of this subsection— - § 582(c): Pub. L. 101–508, § 11801(a)(25), struck out par. (4) “Transitional rule for banks” which read as follows: “In the case of a corporation which would be a bank except for the fact that it is a foreign corporation, the net gain, if any, for the taxable year on sales and exchanges described in paragraph (1) shall be considered as gain from the sale or exchange of a capital asset to the extent such net gain does not exceed the portion of any capital loss carryover to such taxable year which is attributable to capital losses on sales or exchanges described in paragraph (1) for a taxable year beginning before July 12, 1969. For purposes of the preceding sentence, the portion of a net capital loss for a taxable year which is attributable to capital losses on sales or exchanges described in paragraph (1) is the amount of the net capital loss on such sales or exchanges for such taxable year (but not in excess of the net capital loss for such taxable year).” - § 582(c): Pub. L. 101–508, § 11801(c)(11)(B), redesignated par. (5) as (2). ## § 585: Reserves for losses on loans of banks - § 585(b)(1): Pub. L. 101–508, § 11801(c)(12)(C), substituted “shall not exceed the addition to the reserve for losses on loans determined under the experience method as provided in paragraph (2).” for “shall not exceed the greater of— - § 585(b)(2): Pub. L. 101–508, § 11801(a)(26), (c)(12)(D), redesignated par. (3) as (2) and struck out former par. (2) which related to use of percentage method for determining amount to add to reserve for bad debts. - § 585(b)(3): Pub. L. 101–508, § 11801(c)(12)(D), (E), redesignated par. (4) as (3), substituted heading for one which read: “Regulations; definition of eligible loan, etc.”, and amended text generally. Prior to amendment, text read as follows: “The Secretary shall define the terms ‘loan’ and ‘eligible loan’ and prescribe such regulations as may be necessary to carry out the purposes of this section; except that the term ‘eligible loan’ shall not include— - § 585(b): Pub. L. 101–508, § 11801(c)(12)(D), redesignated par. (4) as (3). ## § 593: Reserves for losses on loans - § 593(b): Pub. L. 101–508, § 11801(c)(12)(F), which directed the amendment of pars. (1)(A) and (E) by substituting “section 585(b)(2)” for “section 585(b)(3)”, was executed to pars. (1)(A) and (3). See 1996 Amendment note above. ## § 597: Treatment of transactions in which Federal financial assistance provided - § 597(c): Pub. L. 101–508 substituted “For purposes of” for “The purposes of”. ## § 613: Percentage depletion - § 613(a): Pub. L. 101–508, § 11522(a), inserted “(100 percent in the case of oil and gas properties)” after “50 percent”. - § 613(e)(1)(B): Pub. L. 101–508, § 11815(b)(2), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “the applicable percentage (determined under the table contained in paragraph (2)) shall be deemed to be the percentage specified in subsection (b).” - § 613(e)(2), § 613(e)(3), § 613(e): Pub. L. 101–508, § 11815(b)(1), redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which related to the applicable percentage depletion for geothermal deposits. ## § 613A: Limitations on percentage depletion in case of oil and gas wells - § 613A(c)(1): Pub. L. 101–508, § 11815(a)(1)(A), substituted “15 percent” for “the applicable percentage (determined in accordance with the table contained in paragraph (5))” in concluding provisions. - § 613A(c)(3)(A): Pub. L. 101–508, § 11523(b)(2), struck out at end “Clause (ii) shall not apply after December 31, 1983.” - § 613A(c)(3)(A)(ii): Pub. L. 101–508, § 11523(b)(1), added cl. (ii) and struck out former cl. (ii) which read as follows: “the taxpayer’s average daily secondary or tertiary production for the taxable year.” - § 613A(c)(3)(B): Pub. L. 101–508, § 11815(a)(1)(B), amended subpar. (B) generally, substituting present provisions for provisions which set out a phase-out table for determining tentative quantity in barrels. - § 613A(c)(5): Pub. L. 101–508, § 11815(a)(1)(C), struck out par. (5) which provided table of applicable percentages for purposes of par. (1). - § 613A(c)(6): Pub. L. 101–508, § 11523(a), amended par. (6) generally, providing for an increase in percentage depletion allowance for marginal production, and substituting provisions relating to oil and gas produced from marginal properties for former provisions which related to oil and gas resulting from secondary or tertiary processes. - § 613A(c)(7)(A), § 613A(c)(7)(B): Pub. L. 101–508, § 11815(a)(2)(A), substituted “specified in paragraph (1)” for “specified in paragraph (5)”. - § 613A(c)(7)(C): Pub. L. 101–508, § 11522(b)(1), substituted “taxable income” for “50-percent” before “limitation”. - § 613A(c)(7): Pub. L. 101–508, § 11815(a)(1)(C), struck out subpar. (E) which provided special rules relating to production from secondary or tertiary recovery processes. - § 613A(c)(8)(B), § 613A(c)(8)(C): Pub. L. 101–508, § 11815(a)(2)(B), which directed amendment of subpars. (B) and (C) by substituting “determined under paragraph (3)(B)” for “determined under the table contained in paragraph (3)(B)”, was executed by making the substitution for “determined under the table in paragraph (3)(B)” as the probable intent of Congress. - § 613A(c)(9): Pub. L. 101–508, § 11815(a)(2)(B), which directed amendment of par. (9) by substituting “determined under paragraph (3)(B)” for “determined under the table contained in paragraph (3)(B)”, could not be executed because that phrase did not appear after execution of amendment by Pub. L. 101–508, § 11521(a). See below. - § 613A(c)(9): Pub. L. 101–508, § 11521(a), redesignated par. (11) as (9) and struck out former par. (9) which related to transfer of oil or gas property. - § 613A(c)(10): Pub. L. 101–508, § 11521(a), redesignated par. (12) as (10) and struck out former par. (10) which related to transfers by individuals to corporations. - § 613A(c)(11): Pub. L. 101–508, § 11521(a), redesignated par. (13) as (11). Former par. (11) redesignated (9). - § 613A(c)(11): Pub. L. 101–508, § 11521(b), struck out subpars. (C) and (D) which related to coordination with the transfer rules of former pars. (9) and (10). - § 613A(c): Pub. L. 101–508, § 11521(a), redesignated pars. (12) and (13) as (10) and (11), respectively. ## § 614: Definition of property - § 614(d): Pub. L. 101–508 substituted “taxable income” for “50 percent”. ## § 617: Deduction and recapture of certain mining exploration expenditures - § 617(i), § 617: Pub. L. 101–508 redesignated subsec. (j) as (i) and struck out former subsec. (i) which related to deduction of certain pre-1970 exploration expenditures. ## § 642: Special rules for credits and deductions - § 642(e): Pub. L. 101–508, § 11812(b)(9), substituted “167(d)” for “167(h)”. - § 642(f): Pub. L. 101–508, § 11801(c)(6)(B), substituted “section 169” for “sections 169, 184, 187, and 188”. ## § 665: Definitions applicable to subpart D - § 665(e): Pub. L. 101–508 amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “For purposes of this subpart— ## § 668: Interest charge on accumulation distributions from foreign trusts - § 668(c): Pub. L. 101–508 substituted heading for one which read “Special rules” and amended text generally, restating provisions of former par. (1) as entire subsection and striking out former par. (2) which provided that for purposes of this section, undistributed net income existing in a trust as of January 1, 1977, would be treated as allocated under section 666(a) to the first taxable year beginning after December 31, 1976. ## § 672: Definitions and rules - § 672(f): Pub. L. 101–508 added subsec. (f). ## § 691: Recipients of income in respect of decedents - § 691(c)(4): Pub. L. 101–508 substituted “1(h)” for “1(j)”. ## § 807: Rules for certain reserves - § 807(e): Pub. L. 101–508 added par. (7). ## § 832: Insurance company taxable income - § 832(b)(4): Pub. L. 101–508, § 11303(a), substituted “section 807.” for “section 807, pertaining to the life, burial, or funeral insurance, or annuity business of an insurance company subject to the tax imposed by section 831 and not qualifying as a life insurance company under section 816.” in first sentence after subpar. (C). - § 832(b)(5)(A): Pub. L. 101–508, § 11305(a), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “The term ‘losses incurred’ means losses incurred during the taxable year on insurance contracts, computed as follows: - § 832(b)(7)(A): Pub. L. 101–508, § 11303(b)(2), substituted “such contracts into account” for “such amounts into account”. - § 832(b)(7)(A): Pub. L. 101–508, § 11303(b)(1), which directed the substitution of “insurance contracts described in section 816(b)(1)(B)” for “amounts included in unearned premiums under the 2nd sentence of such subparagraph”, was executed by making the substitution for “amounts included in unearned premiums under the 2nd sentence of such paragraph”. See 1996 Amendment note above. ## § 846: Discounted unpaid losses defined - § 846: Pub. L. 101–508 inserted “and” at end of par. (1), redesignated par. (3) as (2), and struck out former par. (2) which required regulations providing proper treatment of salvage and reinsurance recoverable attributable to unpaid losses. ## § 848: Capitalization of certain policy acquisition expenses - Enacted 26 U.S.C. § 848. ## § 857: Taxation of real estate investment trusts and their beneficiaries - § 857(b)(3)(C): Pub. L. 101–508 amended Pub. L. 100–647, § 1018(u)(28). See 1988 Amendment note below. ## § 860D: REMIC defined - § 860D(a): Pub. L. 101–508 inserted closing parenthesis before period at end. ## § 860G: Other definitions and special rules - § 860G(a)(3)(A): Pub. L. 101–508 struck out comma after “secured” in introductory provisions. ## § 861: Income from sources within the United States - § 861(a)(1)(A), § 861(a)(1)(B): Pub. L. 101–508, § 11801(a)(29), (c)(14), inserted “and” at end of subpar. (A), substituted a period for a comma at end of subpar. (B), and struck out subpars. (C) and (D) which read as follows: - § 861(e): Pub. L. 101–508, § 11813(b)(17), which directed the substitution of “which is section 1245 property (as defined in section 1245(a)(3))” for “which is section 38 property (or would be section 38 property but for section 48(a)(5)”, was executed by making the substitution for “which is section 38 property (or would be section 38 property but for section 48(a)(5))”. See 1996 Amendment note above. - § 861(e): Pub. L. 101–508, § 11801(c)(6)(C), substituted “all of whose stock is owned by one or more domestic common carriers by railroad” for “referred to in subparagraph (B) of section 184(d)(1)”. ## § 864: Definitions and special rules - § 864(f): Pub. L. 101–508 substituted “Years” for “Year” in heading and amended text generally. Prior to amendment, text read as follows: ## § 865: Source rules for personal property sales - § 865(c)(3)(B): Pub. L. 101–508 substituted “section 168(g)(4)” for “section 48(a)(2)(B)”. ## § 892: Income of foreign governments and of international organizations - § 892(a)(2)(A): Pub. L. 101–508 made clarifying amendment to Pub. L. 100–647, § 1012(t)(1). See 1988 Amendment note below. ## § 897: Disposition of investment in United States real property - § 897(k): Pub. L. 101–508 struck out subsec. (k) which read as follows: “If— ## § 904: Limitation on credit - § 904(b)(3)(D): Pub. L. 101–508, § 11101(d)(5)(A), substituted “subsection (h)” for “subsection (j)”. - § 904(b)(3)(E): Pub. L. 101–508, § 11101(d)(5)(B), substituted “section 1(h)” for “section 1(j)”. - § 904(e): Pub. L. 101–508, § 11801(a)(31), struck out subsec. (e) which related to transitional rules for carrybacks and carryovers for taxpayers on the per-country limitation. ## § 907: Special rules in case of foreign oil and gas income - § 907(e): Pub. L. 101–508, § 11801(a)(32), struck out subsec. (e) which read as follows: - § 907(f)(3): Pub. L. 101–508, § 11801(a)(32), struck out subpar. (C) which read as follows: “For purposes of determining the amount of the unused oil and gas extraction taxes which under paragraph (1) may be deemed paid or accrued in any taxable year ending before January 1, 1977, subparagraph (A) of paragraph (2) shall be applied as if the amendment made by section 1035(a) of the Tax Reform Act of 1976 applied to such taxable year.” ## § 1016: Adjustments to basis - § 1016(a)(2): Pub. L. 101–508, § 11812(b)(10), substituted “under the straight line method” for “under section 167(b)(1)” in concluding provisions. - § 1016(a)(20): Pub. L. 101–508, § 11813(b)(19), which directed the amendment of subsec. (a)(21) by striking “section 48(q)” and inserting “section 50(c)”, was executed to subsec. (a)(20). See 1996 Amendment note above. - § 1016(a)(20): Pub. L. 101–508, § 11801(c)(1), redesignated par. (21) as (20) and struck out former par. (20) which read as follows: “to the extent provided in section 23(e), in the case of property with respect to which a credit has been allowed under section 23;”. - § 1016(a)(21), § 1016(a)(22), § 1016(a)(23), § 1016(a)(24), § 1016(a)(25): Pub. L. 101–508, § 11801(c)(1), redesignated pars. (21) to (25) as (20) to (24), respectively. ## § 1017: Discharge of indebtedness - § 1017(b)(4)(C): Pub. L. 101–508 substituted “subparagraphs” for “subparagraph”. ## § 1031: Exchange of real property held for productive use or investment - § 1031(a)(2): Pub. L. 101–508, § 11703(d)(1), inserted at end “For purposes of this section, an interest in a partnership which has in effect a valid election under section 761(a) to be excluded from the application of all of subchapter K shall be treated as an interest in each of the assets of such partnership and not as an interest in a partnership.” - § 1031(f)(3): Pub. L. 101–508, § 11701(h), substituted “section 267(b) or 707(b)(1)” for “section 267(b)”. ## § 1033: Involuntary conversions - § 1033(g)(3)(A): Pub. L. 101–508 struck out “with respect to which the investment credit determined under section 46(a) is or has been claimed or” after “to any property”. ## § 1042: Sales of stock to employee stock ownership plans or certain cooperatives - § 1042(c)(1)(B)(ii): Pub. L. 101–508, which directed the amendment of subsec. (c)(2)(B)(ii) by substituting “section 83, 422, or 423 applied (or to which section 422 or 424 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) applied)” for “section 83, 422, 422A, 423, or 424 applies”, was executed to subsec. (c)(1)(B)(ii). See 1996 Amendment note above. ## § 1043: Sale of property to comply with conflict-of-interest requirements - § 1043(a): Pub. L. 101–508 substituted “to the extent not previously taken into account under this subsection” for “reduced by any basis adjustment under subsection (c) attributable to a prior sale”. ## § 1060: Special allocation rules for certain asset acquisitions - § 1060(a): Pub. L. 101–508, § 11323(a), inserted at end “If in connection with an applicable asset acquisition, the transferee and transferor agree in writing as to the allocation of any consideration, or as to the fair market value of any of the assets, such agreement shall be binding on both the transferee and transferor unless the Secretary determines that such allocation (or fair market value) is not appropriate.” - § 1060(e), § 1060(f): Pub. L. 101–508, § 11323(b)(1), added subsec. (e) and redesignated former subsec. (e) as (f). ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a)(3): Pub. L. 101–508, § 11704(a)(13), substituted “or (3))” for “or (3)” in introductory provisions. - § 1245(a)(3)(C): Pub. L. 101–508, § 11801(c)(6)(E), substituted “188 (as in effect before its repeal by the Revenue Reconciliation Act of 1990),” for “188,”. - § 1245(a)(3)(D): Pub. L. 101–508, § 11813(b)(21), substituted “section 168(i)(13)” for “section 48(p)”. - § 1245(b)(3): Pub. L. 101–508, § 11801(c)(8)(H), struck out “371(a), 374(a),” after “332, 351, 361,”. ## § 1250: Gain from dispositions of certain depreciable realty - § 1250(a)(1)(B)(i), § 1250(a)(2)(B)(ii): Pub. L. 101–508, § 11801(c)(15)(A), which directed the insertion of “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “section 1039(b)(1)(B)” in pars. (1)(A)(i) and (2)(B)(ii) of subsec. (a), was executed to pars. (1)(B)(i) and (2)(B)(ii) to reflect the probable intent of Congress. - § 1250(a)(4), § 1250(a)(5): Pub. L. 101–508, § 11812(b)(11), added par. (4) and redesignated former par. (4) as (5). - § 1250(b)(3): Pub. L. 101–508, § 11801(c)(6)(F), substituted “188 (as in effect before its repeal by the Revenue Reconciliation Act of 1990),” for “188,”. - § 1250(b)(4): Pub. L. 101–508, § 11812(b)(12), substituted “section 167(k) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” for “section 167(k)” in two places. - § 1250(d)(3): Pub. L. 101–508, § 11801(c)(8)(I), struck out “371(a), 374(a),” after “332, 351, 361,”. - § 1250(d): Pub. L. 101–508, § 11801(c)(15)(B), struck out par. (8) which related to the treatment of gain from the disposition of qualified low-income housing. - § 1250(g), § 1250(h), § 1250: Pub. L. 101–508, § 11801(c)(15)(C), redesignated subsecs. (h) and (i) as (g) and (h), respectively, and struck out former subsec. (g) which provided special rules for qualified low-income housing. ## § 1253: Transfers of franchises, trademarks, and trade names - § 1253(d): Pub. L. 101–508, § 11701(i), which directed the substitution of “under this section or any period of amortization under this subtitle for any payment described in this section” for “or any period of amortization under this section”, was executed by making the substitution for “or any period of amortization under this subsection”. See 1996 Amendment note above. ## § 1274A: Special rules for certain transactions where stated principal amount does not exceed $2,800,000 - § 1274A(b): Pub. L. 101–508 inserted “, as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990” after “section 48(b)”. ## § 1275: Other definitions and special rules - § 1275(a)(4), § 1275(a): Pub. L. 101–508 redesignated par. (5) as (4) and struck out former par. (4) which related to a special rule for determination of issue price in case of exchange of debt instruments in re­organization. ## § 1371: Coordination with subchapter C - § 1371(d)(1): Pub. L. 101–508, § 11813(b)(23)(A), substituted “section 50(a)(4)” for “section 47(b)”. - § 1371(d)(2), § 1371(d)(3): Pub. L. 101–508, § 11813(b)(23)(B), substituted “section 49(b) or 50(a)” for “section 47”. ## § 1388: Definitions; special rules - § 1388(k): Pub. L. 101–508 struck out subsec. (k) which cross-referenced section 46(h) for provisions relating to apportionment of investment credit between cooperative organizations and their patrons. ## § 1401: Rate of tax - § 1401(c), § 1401: Pub. L. 101–508 redesignated subsec. (d) as (c) and struck out former subsec. (c) which provided a credit against self-employment taxes imposed by this section. ## § 1402: Definitions - § 1402(a): Pub. L. 101–508, § 5123(a)(3), struck out last undesignated par. which read as follows: “Any income of an individual which results from or is attributable to the performance of services by such individual as a director of a corporation during any taxable year shall be deemed to have been derived (and received) by such individual in that year, at the time the services were performed, regardless of when the income is actually paid to or received by such individual (unless it was actually paid and received prior to that year).” - § 1402(b): Pub. L. 101–508, § 5130(a)(2), amended directory language of Pub. L. 98–21, § 322(b)(2). See 1983 Amendment note below. - § 1402(b)(1): Pub. L. 101–508, § 11331(b)(1), substituted “the applicable contribution base (as determined under subsection (k))” for “the contribution and benefit base (as determined under section 230 of the Social Security Act)”. - § 1402(k): Pub. L. 101–508, § 11331(b)(2), added subsec. (k). ## § 1441: Withholding of tax on nonresident aliens - § 1441(b)(2): Pub. L. 101–508 inserted “section” before “170(b)(1)(A)(ii)”. ## § 1503: Computation and payment of tax - § 1503(c)(1): Pub. L. 101–508, § 11802(f)(4), struck out at end “For taxable years ending with or within calendar year 1981, ‘25 percent’ shall be substituted for ‘35 percent’ each place it appears in the first sentence of this subsection. For taxable years ending with or within calendar year 1982, ‘30 percent’ shall be substituted for ‘35 percent’ each place it appears in that sentence.” - § 1503(e)(3)(B): Pub. L. 101–508, § 11813(b)(25), substituted “section 50(c)” for “section 48(q)”. ## § 1504: Definitions - § 1504(c)(2)(B)(i): Pub. L. 101–508, § 11814(b), substituted “section 243(b)(3)” for “section 243(b)(6)” and “243(b)(2)” for “section 243(b)(5)”. ## § 2010: Unified credit against estate tax - § 2010(b), § 2010(c), § 2010(d): Pub. L. 101–508 redesignated subsecs. (c) and (d) as (b) and (c), respectively, and struck out former subsec. (b) which provided for a phase-in of the unified credit against estate tax. ## § 2032A: Valuation of certain farm, etc., real property - § 2032A(a)(2): Pub. L. 101–508 amended par. (2) generally, substituting present provisions for provisions which established graduated increase in applicable limit on aggregate reduction in fair market value from $600,000 in the case of decedents dying in 1981 to $750,000 in the case of decedents dying in 1983 or thereafter. ## § 2036: Transfers with retained life estate - § 2036(c), § 2036: Pub. L. 101–508 redesignated subsec. (d) as (c) and struck out former subsec. (c) which enunciated a rule that retention of retained interest would be considered to be a retention of enjoyment of transferred property if a person held a substantial interest in an enterprise, and such person in effect transferred after Dec. 17, 1987, property having a disproportionately large share of the potential appreciation in such person’s interest in the enterprise while retaining an interest in the income of, or rights in, the enterprise. ## § 2056: Bequests, etc., to surviving spouse - § 2056(d)(3): Pub. L. 101–508, § 11702(g)(5), substituted “section 2056A(b)(7)” for “section 2056A(b)(6)”. - § 2056(d)(4), § 2056(d)(5): Pub. L. 101–508, § 11701(l)(1), redesignated par. (4) relating to reformations permitted as par. (5). ## § 2056A: Qualified domestic trust - § 2056A(a)(1): Pub. L. 101–508, § 11702(g)(2)(A), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “the trust instrument requires that at least 1 trustee of the trust be an individual citizen of the United States or a domestic corporation and that no distribution from the trust may be made without the approval of such a trustee,”. - § 2056A(b)(2)(B)(ii): Pub. L. 101–508, § 11704(a)(15), substituted “therefor” for “therefore” in concluding provisions. - § 2056A(b)(10)(A): Pub. L. 101–508, § 11702(g)(4), substituted “section 2011, 2014, 2032” for “section 2032”. - § 2056A(b)(14), § 2056A(b)(15): Pub. L. 101–508, § 11702(g)(2)(B), added pars. (14) and (15). - § 2056A(d): Pub. L. 101–508, § 11702(g)(3)(A), inserted at end “No election may be made under this section on any return if such return is filed more than one year after the time prescribed by law (including extensions) for filing such return.” ## § 2207B: Right of recovery where decedent retained interest - § 2207B(b): Pub. L. 101–508, § 11601(b)(1)(A), redesignated former subsec. (c) as (b) and struck out former subsec. (b) which read as follows: “If for any calendar year tax is paid under chapter 12 with respect to any person by reason of property treated as transferred by such person under section 2036(c)(4), such person shall be entitled to recover from the original transferee (as defined in section 2036(c)(4)(C)(ii)) the amount which bears the same ratio to the total tax for such year under chapter 12 as— - § 2207B(c): Pub. L. 101–508, § 11601(b)(1), redesignated subsec. (d) as (c) and substituted “subsection (a)” for “subsections (a) and (b)” and “subsections (a) and (b)” for “subsections (a), (b), and (c)”. Former subsec. (c) redesignated (b). - § 2207B(d), § 2207B: Pub. L. 101–508, § 11601(b)(1)(A), redesignated subsecs. (d) and (e) as (c) and (d), respectively. Former subsec. (d) redesignated (c). ## § 2501: Imposition of tax - § 2501(d): Pub. L. 101–508 struck out par. (3) which read as follows: “For treatment of certain transfers related to estate tax valuation freezes as gifts to which this chapter applies, see section 2036(c)(4).” ## § 2505: Unified credit against gift tax - § 2505(b), § 2505(c), § 2505: Pub. L. 101–508 redesignated subsecs. (c) and (d) as subsecs. (b) and (c), respectively, and struck out former subsec. (b) which provided for a phase-in of the unified credit against gift tax. ## § 2523: Gift to spouse - § 2523(i): Pub. L. 101–508 inserted at end “This subsection shall not apply to any transfer resulting from the acquisition of rights under a joint and survivor annuity described in subsection (f)(6).” ## § 2642: Inclusion ratio - § 2642(b)(3): Pub. L. 101–508, § 11704(a)(36), amended Pub. L. 100–647, § 1014(g)(4)(F)(ii). See 1988 Amendment note below. - § 2642(c)(2): Pub. L. 101–508, § 11703(c)(2), inserted at end: “Rules similar to the rules of section 2652(c)(3) shall apply for purposes of subparagraph (A).” - § 2642(c)(2)(B): Pub. L. 101–508, § 11703(c)(1), substituted “the trust does not terminate before the individual dies” for “such individual dies before the trust is terminated”. - § 2642(d)(2)(B)(i)(I): Pub. L. 101–508, § 11704(a)(17), substituted “State” for “state”. ## § 2701: Special valuation rules in case of transfers of certain interests in corporations or partnerships - Enacted 26 U.S.C. § 2701. ## § 2702: Special valuation rules in case of transfers of interests in trusts - Enacted 26 U.S.C. § 2702. ## § 2703: Certain rights and restrictions disregarded - Enacted 26 U.S.C. § 2703. ## § 2704: Treatment of certain lapsing rights and restrictions - Enacted 26 U.S.C. § 2704. ## § 3102: Deduction of tax from wages - § 3102(d): Pub. L. 101–508 added subsec. (d). ## § 3121: Definitions - § 3121(a)(1): Pub. L. 101–508, § 11331(a)(1), substituted “applicable contribution base (as determined under subsection (x))” for “contribution and benefit base (as determined under section 230 of the Social Security Act)” wherever appearing and “such applicable contribution base” for “such contribution and benefit base”. - § 3121(b)(7)(F): Pub. L. 101–508, § 11332(b), added subpar. (F). - § 3121(x): Pub. L. 101–508, § 11331(a)(2), added subsec. (x). ## § 3122: Federal service - § 3122: Pub. L. 101–508 substituted “applicable contribution base limitation” for “contribution and benefit base limitation”. ## § 3125: Returns in the case of governmental employees in States, Guam, American Samoa, and the District of Columbia - § 3125: Pub. L. 101–508 substituted “applicable contribution base limitation” for “contribution and benefit base limitation” in subsecs. (a) to (d). ## § 3201: Rate of tax - § 3201(a): Pub. L. 101–508 substituted “applicable” for “following” before “percentage of the” and provision defining the term “applicable percentage” for provision specifying that in the case of compensation received during 1985 the rate of tax was 7.05 percent, for 1986 or 1987 the rate was 7.15 percent, for 1988 or 1989 the rate was 7.51 percent, and 1990 or thereafter the rate was 7.65 percent. ## § 3202: Deduction of tax from compensation - § 3202(d): Pub. L. 101–508 added subsec. (d). ## § 3211: Rate of tax - § 3211(a): Pub. L. 101–508 substituted “applicable” for “following” before “percentage of the” and provision defining the term “applicable percentage” for provision specifying that in the case of compensation received during 1985 the rate of tax was 14.10 percent, for 1986 or 1987 the rate was 14.30 percent, for 1988 or 1989 the rate was 15.02 percent, and for 1990 or thereafter the rate was 15.30 percent. ## § 3221: Rate of tax - § 3221(a): Pub. L. 101–508 substituted “applicable” for “following” before “percentage of” and provision defining “applicable percentage” for provision specifying the tax rate to be 7.05 percent, 7.15 percent, 7.51 percent, and 7.65 percent in the case of compensation paid during 1985, 1986 or 1987, 1988 or 1989, or 1990 or thereafter, respectively. ## § 3231: Definitions - § 3231(e)(2)(B)(i): Pub. L. 101–508, § 11331(c), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “Except as provided in clause (ii), the term ‘applicable base’ means for any calendar year the contribution and benefit base determined under section 230 of the Social Security Act for such calendar year.” - § 3231(e)(8), § 3231(e)(9), § 3231(e)(10): Pub. L. 101–508, § 11704(a)(19), redesignated pars. (9) and (10) as (8) and (9), respectively. ## § 3301: Rate of tax - § 3301: Pub. L. 101–508, § 11333(a)(1), substituted “1988 through 1995” for “1988, 1989, and 1990”. - § 3301: Pub. L. 101–508, § 11333(a)(2), substituted “1996” for “1991”. ## § 3401: Definitions - § 3401(a)(20): Pub. L. 101–508 added par. (20). ## § 3402: Income tax collected at source - § 3402(a): Pub. L. 101–508 struck out par. (3) which read as follows: “Notwithstanding the provisions of this subsection, the Secretary shall modify the tables and procedures under paragraph (1) to reflect— ## § 3509: Determination of employer’s liability for certain employment taxes - § 3509(d)(3): Pub. L. 101–508 substituted “subsection (d)(3)” for “subsection (d)(4)”. ## § 4041: Imposition of tax - § 4041(a)(1): Pub. L. 101–508, § 11211(b)(6)(C)(i), struck out “of 15 cents a gallon” after “imposed a tax” in introductory provisions and inserted before last sentence “The rate of the tax imposed by this paragraph shall be the sum of the Highway Trust Fund financing rate and the diesel fuel deficit reduction rate in effect under section 4091 at the time of such sale or use.” - § 4041(a)(2): Pub. L. 101–508, § 11211(b)(3), substituted “imposed a tax” for “imposed a tax of 9 cents a gallon” in introductory provisions and inserted at end “The rate of the tax imposed by this paragraph shall be the sum of the Highway Trust Fund financing rate and the deficit reduction rate in effect under section 4081 at the time of such sale or use.” - § 4041(a)(3): Pub. L. 101–508, § 11211(b)(6)(C)(ii), struck out par. (3) which provided that on and after Oct. 1, 1993, the taxes imposed by subsec. (a) shall not apply. - § 4041(b)(2)(A)(i): Pub. L. 101–508, § 11211(b)(6)(D), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “subsection (a)(2) shall be applied by substituting ‘3 cents’ for ‘9 cents’, and”. - § 4041(b)(2)(C): Pub. L. 101–508, § 11211(e)(1), substituted “2000” for “1993”. - § 4041(c)(1): Pub. L. 101–508, § 11213(b)(2)(A), substituted “17.5 cents” for “14 cents”. - § 4041(c)(3): Pub. L. 101–508, § 11211(a)(4), substituted “15 cents” for “12 cents” and “the sum of the Highway Trust Fund financing rate plus the deficit reduction rate” for “the Highway Trust Fund financing rate”. - § 4041(c): Pub. L. 101–508, § 11213(d)(2)(B), substituted “1995” for “1990”. - § 4041(c): Pub. L. 101–508, § 11213(e)(3), struck out par. (6) which provided cross reference to section 4283 for reduction of rates of taxes imposed by subsec. (c)(1) and (2) in certain circumstances. - § 4041(f), § 4041(g): Pub. L. 101–508, § 11211(d)(1), (2), substituted “1995” for “1993”. - § 4041(k): Pub. L. 101–508, § 11211(b)(6)(E)(i), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “subsection (a)(1) shall be applied by substituting ‘9 cents’ for ‘15 cents’, and”. - § 4041(k): Pub. L. 101–508, § 11213(b)(2)(B)(i), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “no tax shall be imposed by subsection (c)(1), and”. - § 4041(k): Pub. L. 101–508, § 11211(b)(6)(E)(i), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “subsection (a)(2) shall be applied by substituting ‘3 cents’ for ‘9 cents’, and”. - § 4041(k): Pub. L. 101–508, § 11211(b)(6)(E)(i), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “no tax shall be imposed by subsection (c).” - § 4041(k): Pub. L. 101–508, § 11211(e)(2), substituted “2000” for “1993”. - § 4041(m)(1)(A): Pub. L. 101–508, § 11211(b)(6)(F), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “subsection (a)(2) shall be applied by substituting ‘4½ cents’ for ‘9 cents’, and”. - § 4041(m)(1)(B): Pub. L. 101–508, § 11213(b)(2)(B)(ii), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “no tax shall be imposed by subsection (c).” ## § 4051: Imposition of tax on heavy trucks and trailers sold at retail - § 4051(c): Pub. L. 101–508 substituted “1995” for “1993”. ## § 4064: Gas guzzler tax - § 4064(a): Pub. L. 101–508, § 11216(a), amended subsec. (a) generally, substituting present provisions for provisions which set forth gas guzzler tax tables in the case of automobiles built in each of the model years 1980 through 1986 and later. - § 4064(b)(1)(A): Pub. L. 101–508, § 11216(b), inserted at end “In the case of a limousine, the preceding sentence shall be applied without regard to clause (ii).” - § 4064(b)(5)(B): Pub. L. 101–508, § 11216(c), substituted heading for one which read: “Exception for certain small manufacturers” and amended text generally. Prior to amendment, text read as follows: “A person shall not be treated as the manufacturer of any automobile if— - § 4064: Pub. L. 101–508, § 11216(d), struck out subsec. (d) which prescribed special rules for small manufacturers. ## § 4071: Imposition of tax - § 4071(d): Pub. L. 101–508 substituted “1995” for “1993”. ## § 4081: Imposition of tax - § 4081(a)(1): Pub. L. 101–508, § 11212(a), substituted heading for one which read: “In general” and amended text generally. Prior to amendment, text read as follows: “There is hereby imposed a tax at the rate specified in paragraph (2) on the earlier of— - § 4081(a)(2)(A)(iii): Pub. L. 101–508, § 11211(a)(1), added cl. (iii). - § 4081(a)(2)(B): Pub. L. 101–508, § 11211(a)(2)(A), substituted “11.5 cents” for “9 cents”. - § 4081(a)(2)(B): Pub. L. 101–508, § 11211(a)(2)(B), (C), added cl. (iii). - § 4081(a)(3): Pub. L. 101–508, § 11212(e)(2), struck out par. (3) which read as follows: “For purposes of paragraph (1), the bulk transfer of gasoline to a terminal operator by a refiner or importer shall not be considered a removal or sale of gasoline by such refiner or importer.” - § 4081(c): Pub. L. 101–508, § 11211(a)(5)(A), substituted “applied by substituting rates which are 10/9th of the otherwise applicable rates” for “applied by substituting ‘3⅓ cents’ for ‘9 cents’ and by substituting ‘⅑ cent’ for ‘0.1 cent’ ” and inserted “For purposes of this subsection, in the case of the Highway Trust Fund financing rate, the otherwise applicable rate is 6.1 cents a gallon.” - § 4081(c): Pub. L. 101–508, § 11211(a)(5)(B), which directed the substitution of “at a Highway Trust Fund financing rate equivalent to 6.1 cents” for “at a rate equivalent to 3 cents”, was executed by making the substitution for “at a Highway Trust Fund financing rate equivalent to 3 cents” to reflect the probable intent of Congress. See 1986 Amendment note below. - § 4081(c): Pub. L. 101–508, § 11211(a)(5)(C), added par. (4). Former par. (4) redesignated (5). - § 4081(c): Pub. L. 101–508, § 11211(e)(3), substituted “2000” for “1993”. - § 4081(c): Pub. L. 101–508, § 11211(a)(5)(C), redesignated par. (4) as (5). - § 4081(d)(1): Pub. L. 101–508, § 11211(c)(3), substituted “1995” for “1993”. - § 4081(d)(2): Pub. L. 101–508, § 11215(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: - § 4081(d)(3): Pub. L. 101–508, § 11211(a)(3), added par. (3). - § 4081(e): Pub. L. 101–508, § 11212(d)(1), added subsec. (e). ## § 4101: Registration and bond - § 4101: Pub. L. 101–508 amended section generally. Prior to amendment, section read as follows: ## § 4103: Certain additional persons liable for tax where willful failure to pay - Enacted 26 U.S.C. § 4103. ## § 4221: Certain tax-free sales - § 4221(a): Pub. L. 101–508, § 11221(b), substituted “subchapter A or C of chapter 31” for “section 4051” in introductory provisions and inserted at end “In the case of taxes imposed by subchapter A of chapter 31, paragraphs (1), (3), (4), and (5) shall not apply.” - § 4221(a): Pub. L. 101–508, § 11211(d)(3), substituted “1995” for “1993” in concluding provisions. - § 4221(c): Pub. L. 101–508, § 11221(d)(1), substituted “section 4001(c), 4002(b), 4003(c), 4004(a), or 4053(a)(6)” for “section 4053(a)(6)”. - § 4221(d)(1): Pub. L. 101–508, § 11221(d)(2), substituted “taxes imposed by subchapter A or C of chapter 31” for “the tax imposed by section 4051”. ## § 4222: Registration - § 4222(c): Pub. L. 101–508, § 11212(b)(2), substituted “Denial, revocation, or suspension” for “Revocation or suspension” in heading, “denied, revoked, or suspended” for “revoked or suspended” in introductory provisions, and “denial, revocation, or suspension” for “revocation or suspension” in par. (2) and concluding provisions. - § 4222(d): Pub. L. 101–508, § 11221(d)(3), substituted “sections 4001(c), 4002(b), 4003(c), 4004(a), 4053(a)(6)” for “sections 4053(a)(6)”. ## § 4251: Imposition of tax - § 4251(b)(2): Pub. L. 101–508 substituted “percent.” for “percent; except that, with respect to amounts paid pursuant to bills first rendered after 1990, the applicable percentage shall be zero.” ## § 4253: Exemptions - § 4253(k): Pub. L. 101–508 added subsec. (k). ## § 4261: Imposition of tax - § 4261(a), § 4261(b): Pub. L. 101–508, § 11213(a)(1), substituted “10 percent” for “8 percent”. - § 4261(g): Pub. L. 101–508, § 11213(d)(1), substituted “January 1, 1996” for “January 1, 1991”. ## § 4271: Imposition of tax - § 4271(a): Pub. L. 101–508, § 11213(a)(2), substituted “6.25 percent” for “5 percent”. - § 4271(d): Pub. L. 101–508, § 11213(d)(1), substituted “January 1, 1996” for “January 1, 1991”. ## § 4293: Exemption for United States and possessions - § 4293: Pub. L. 101–508 inserted “subchapter A of chapter 31,” before “section 4041”. ## § 4461: Imposition of tax - § 4461(b): Pub. L. 101–508 substituted “0.125 percent” for “0.04 percent”. ## § 4481: Imposition of tax - § 4481(e): Pub. L. 101–508 substituted “1995” for “1993”. ## § 4482: Definitions - § 4482(c)(4), § 4482(d): Pub. L. 101–508 substituted “1995” for “1993” wherever appearing. ## § 4483: Exemptions - § 4483(g): Pub. L. 101–508 substituted “1995” for “1993”. ## § 4611: Imposition of tax - § 4611(e): Pub. L. 101–508, § 11231(a)(1)(B), substituted “January 1, 1996” for “January 1, 1992”. - § 4611(e): Pub. L. 101–508, § 11231(a)(2), substituted “1993” for “1989” and “1994” for “1990” in introductory provisions and “1994” for “1990” and “1995” for “1991” in subpar. (B) and concluding provisions. - § 4611(e): Pub. L. 101–508, § 11231(b), substituted “$11,970,000,000” for “$6,650,000,000” in heading. - § 4611(e): Pub. L. 101–508, § 11231(b), substituted “December 31, 1995” for “December 31, 1991”. - § 4611(e): Pub. L. 101–508, § 11231(a)(1)(B), (b), substituted “January 1, 1996” for “January 1, 1992” in heading and text and “$11,970,000,000” for “$6,650,000,000” in heading and twice in text. ## § 4681: Imposition of tax - § 4681(b)(1)(B): Pub. L. 101–508 amended subpar. (B) generally, designating existing provision as cl. (i), inserting “with respect to any ozone-depleting chemical other than a newly listed chemical (as defined in section 4682(d)(3)(C))”, and adding cl. (ii). - § 4681(b)(1): Pub. L. 101–508 amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “The base tax amount for purposes of subparagraph (A) with respect to any sale or use during a calendar year after 1994 shall be the base tax amount for 1994 increased by 45 cents for each year after 1994.” ## § 4682: Definitions and special rules - § 4682(a)(2), § 4682(b): Pub. L. 101–508, § 11203(a), inserted items for “Carbon tetrachloride” through “CFC–217” in tables. - § 4682(c)(2): Pub. L. 101–508, § 11203(d)(1), inserted “(other than methyl chloroform)”. - § 4682(d)(3)(B)(i): Pub. L. 101–508, § 11701(g)(1), substituted “, produced, or imported” for “or produced” in introductory provisions. - § 4682(d)(3)(B)(i)(I): Pub. L. 101–508, § 11701(g)(2), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “the amount equal to the 1986 export percentage of the aggregate tax imposed by this subchapter with respect to ozone-depleting chemicals manufactured or produced by such person during such calendar year (other than chemicals with respect to which subclause (II) applies), and”. - § 4682(d)(3)(B)(i)(II): Pub. L. 101–508, § 11701(g)(3), substituted “tax which would (but for this subsection and subsection (g)) be imposed” for “tax imposed”. - § 4682(d)(3)(B)(i)(III): Pub. L. 101–508, § 11701(g)(4), added subcl. (III). - § 4682(d)(3)(B)(ii): Pub. L. 101–508, § 11701(g)(5), substituted last sentence for former last sentence which read as follows: “The percentage determined under the preceding sentence shall be based on data published by the Environmental Protection Agency.” - § 4682(d)(3)(C): Pub. L. 101–508, § 11203(b), added subpar. (C). - § 4682(h)(3): Pub. L. 101–508, § 11203(d)(2), substituted “June 30” for “April 1”. ## § 4975: Tax on prohibited transactions - § 4975(d)(13): Pub. L. 101–508 inserted before semicolon at end “or which is exempt from section 406 of such Act by reason of section 408(b) of such Act”. ## § 4980: Tax on reversion of qualified plan assets to employer - § 4980(a): Pub. L. 101–508, § 12001, which directed the substitution of “20 percent” for “15 percent” in “section 4980(a)” without specifying the Internal Revenue Code of 1986, was executed to subsec. (a) of this section. See 1996 Amendment note above. - § 4980(d): Pub. L. 101–508, § 12002(a), which directed the addition of subsec. (d) to “section 4980” without specifying the Internal Revenue Code of 1986, was executed to this section. See 1996 Amendment note above. ## § 4980B: Failure to satisfy continuation coverage requirements of group health plans - § 4980B(d)(1): Pub. L. 101–508 amended par. (1) generally. Prior to amendment, par. (1) read as follows: “any failure of a group health plan to meet the requirements of subsection (f) if all employers maintaining such plan normally employed fewer than 20 employees on a typical business day during the preceding calendar year,”. ## § 5001: Imposition, rate, and attachment of tax - § 5001(a)(1), § 5001(a)(3): Pub. L. 101–508 substituted “$13.50” for “$12.50”. ## § 5010: Credit for wine content and for flavors content - § 5010(a)(1), § 5010(a)(2): Pub. L. 101–508 substituted “$13.50” for “$12.50”. ## § 5041: Imposition and rate of tax - § 5041(b)(1): Pub. L. 101–508, § 11201(b)(1)(A), substituted “$1.07” for “17 cents”. - § 5041(b)(2): Pub. L. 101–508, § 11201(b)(1)(B), substituted “$1.57” for “67 cents”. - § 5041(b)(3): Pub. L. 101–508, § 11201(b)(1)(C), substituted “$3.15” for “$2.25”. - § 5041(b)(5): Pub. L. 101–508, § 11201(b)(1)(D), substituted “$3.30” for “$2.40”. - § 5041(c), § 5041(d), § 5041(e), § 5041(f): Pub. L. 101–508, § 11201(b)(2), added subsec. (c) and redesignated former subsecs. (c) to (e) as (d) to (f), respectively. ## § 5051: Imposition and rate of tax - § 5051(a)(1): Pub. L. 101–508, § 11201(c)(1), substituted “$18” for “$9”. - § 5051(a)(2): Pub. L. 101–508, § 11201(c)(2), added subpar. (C). ## § 5061: Method of collecting tax - § 5061(b)(3): Pub. L. 101–508, §§ 11201(b)(3), 11704(a)(21), amended par. (3) identically, substituting “section 5041(e)” for “section 5041(d)”. ## § 5701: Rate of tax - § 5701(a)(1): Pub. L. 101–508, § 11202(a)(1), substituted “$1.125 cents per thousand (93.75 cents per thousand on cigars removed during 1991 or 1992)” for “75 cents per thousand”. - § 5701(a)(2): Pub. L. 101–508, § 11202(a)(2), substituted “equal to—” and subpars. (A) and (B) for “equal to 8½ percent of the wholesale price, but not more than $20 per thousand.” - § 5701(b)(1): Pub. L. 101–508, § 11202(b)(1), substituted “$12 per thousand ($10 per thousand on cigarettes removed during 1991 or 1992)” for “$8 per thousand”. - § 5701(b)(2): Pub. L. 101–508, § 11202(b)(2), substituted “$25.20 per thousand ($21 per thousand on cigarettes removed during 1991 or 1992)” for “$16.80 per thousand”. - § 5701(c): Pub. L. 101–508, § 11202(c), substituted “0.75 cent (0.625 cent on cigarette papers removed during 1991 or 1992)” for “½ cent”. - § 5701(d): Pub. L. 101–508, § 11202(d), substituted “1.5 cents (1.25 cents on cigarette tubes removed during 1991 or 1992)” for “1 cent”. - § 5701(e)(1): Pub. L. 101–508, § 11202(e)(1), substituted “36 cents (30 cents on snuff removed during 1991 or 1992)” for “24 cents”. - § 5701(e)(2): Pub. L. 101–508, § 11202(e)(2), substituted “12 cents (10 cents on chewing tobacco removed during 1991 or 1992)” for “8 cents”. - § 5701(f): Pub. L. 101–508, § 11202(f), substituted “67.5 cents (56.25 cents on pipe tobacco removed during 1991 or 1992)” for “45 cents”. ## § 5702: Definitions - § 5702(m): Pub. L. 101–508 substituted heading for one which read: “Wholesale price” and amended text generally. Prior to amendment, text read as follows: “ ‘Wholesale price’ means the manufacturer’s, or importer’s, suggested delivered price at which the cigars are to be sold to retailers, inclusive of the tax imposed by this chapter or section 7652, but exclusive of any State or local taxes imposed on cigars as a commodity, and before any trade, cash, or other discounts, or any promotion, advertising, display, or similar allowances. Where the manufacturer’s or importer’s suggested delivered price to retailers is not adequately supported by bona fide arm’s length sales, or where the manufacturer or importer has no suggested delivered price to retailers, the wholesale price shall be the price for which cigars of comparable retail price are sold to retailers in the ordinary course of trade as determined by the Secretary.” ## § 6013: Joint returns of income tax by husband and wife - § 6013(e): Pub. L. 101–508 substituted “section 6662(d)(2)(A)” for “section 6661(b)(2)(A)”. ## § 6018: Estate tax returns - § 6018(a)(3), § 6018(a): Pub. L. 101–508 redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) which provided for phase-in of estate tax return filing requirement amount. ## § 6038: Information reporting with respect to certain foreign corporations and partnerships - § 6038(e)(2): Pub. L. 101–508, as amended by Pub. L. 104–188, § 1704(t)(46), in subsec. (e) relating to definitions, inserted at end of par. (2) “In the case of a specified foreign corporation (as defined in section 898), the taxable year of such corporation shall be treated as its annual accounting period.” ## § 6038A: Information with respect to certain foreign-owned corporations - § 6038A(a)(1): Pub. L. 101–508, § 11315(b)(1), struck out “or is a foreign corporation engaged in trade or business within the United States” after “corporation”. - § 6038A(c)(3), § 6038A(c)(4), § 6038A(c)(5), § 6038A(c): Pub. L. 101–508, § 11704(a)(23), redesignated pars. (4) to (6) as (3) to (5), respectively. ## § 6038C: Information with respect to foreign corporations engaged in U.S. business - Enacted 26 U.S.C. § 6038C. ## § 6039: Returns required in connection with certain options - § 6039(a)(1), § 6039(a)(2): Pub. L. 101–508, § 11801(c)(9)(J)(i), added pars. (1) and (2) and struck out former pars. (1) and (2) which read as follows: - § 6039(b): Pub. L. 101–508, § 11801(c)(9)(J)(ii), substituted “an incentive stock option or an” for “a qualified stock option, incentive stock option, a restricted stock option, or an”. - § 6039(c): Pub. L. 101–508, § 11801(c)(9)(J)(iii), amended subsec. (c) generally, striking out references for definitions of “qualified stock option” and “restricted stock option”. ## § 6039D: Returns and records with respect to certain fringe benefit plans - § 6039D(d)(3): Pub. L. 101–508 substituted “the employer).” for “the employer)”. ## § 6045: Returns of brokers - § 6045(e)(4): Pub. L. 101–508 substituted “reporting person” for “broker”. ## § 6050I: Returns relating to cash received in trade or business, etc. - § 6050I(d): Pub. L. 101–508, § 11318(a), substituted heading for one which read: “Cash includes foreign currency” and amended text generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘cash’ includes foreign currency.” - § 6050I(f): Pub. L. 101–508, § 11318(c), substituted heading for one which read: “Actions by payors”. ## § 6103: Confidentiality and disclosure of returns and return information - § 6103(e)(1)(A): Pub. L. 101–508, § 11101(d)(6), which directed the substitution of “section 1(g)” for “section 1(j)”, could not be executed because “section 1(j)” did not appear in text after amendment by Pub. L. 100–647, § 1014(e)(4). See 1988 Amendment note below. - § 6103(k)(7): Pub. L. 101–508, § 11212(b)(3), added par. (7). - § 6103(l)(7): Pub. L. 101–508, § 8051(a), substituted “, the Food Stamp Act of 1977, or title 38, United States Code” for “or the Food Stamp Act of 1977” in heading and added cl. (viii) and concluding provisions at end of subpar. (D). - § 6103(l)(12): Pub. L. 101–508, § 4203(a)(2), substituted “September 30, 1995” for “September 30, 1991” in cl. (i), “1994” for “1990” in cl. (ii)(I), and “1995” for “1991” in cl. (ii)(II). - § 6103(m)(7): Pub. L. 101–508, § 5111(b)(1), added par. (7). - § 6103(n): Pub. L. 101–508, § 11313(a), substituted “the programming” for “and the programming” and inserted “and the providing of other services,”. - § 6103(p)(4): Pub. L. 101–508, § 5111(b)(2), which directed the substitution of “paragraph (2), (4), (6), or (7) of subsection (m)” for “subsection (m)(2), (4), or (6)” in the provisions of par. (4) “following subparagraph (f)(iii)”, was executed by making the substitution in the provisions following subpar. (F)(iii), to reflect the probable intent of Congress. ## § 6109: Identifying numbers - § 6109(e): Pub. L. 101–508 substituted “1 year” for “2 years”. ## § 6114: Treaty-based return positions - § 6114(b): Pub. L. 101–508 struck out “by regulations” before “waive the requirements”. ## § 6302: Mode or time of collection - § 6302(b): Pub. L. 101–508, § 11801(c)(22)(A), which directed the substitution of “chapter 21, 31, 32, or 33, or by section 4481” for “chapter 21” and all that follows down through “chapter 37,”, was executed by making the substitution for “chapters 21, 31, 32, 33, section 4481 of chapter 36, section 4501(a) of chapter 37” to reflect the probable intent of Congress. See 1996 Amendment note above. - § 6302(e): Pub. L. 101–508, § 11217(b)(1), inserted “communications services and” before “airline” in heading and “section 4251 or” after “imposed by” in text. - § 6302(g): Pub. L. 101–508, § 11334(a), amended subsec. (g) generally, striking out par. (1) designation and striking heading, striking out “, for the years specified in paragraph (2),” after “such person shall”, substituting “on the 1st banking day” for “on the applicable banking day”, and striking out par. (2), which provided that for purposes of par. (1) the applicable banking day for 1990 is the 1st, for 1991 the 2nd, for 1992 the 3rd, for 1993 the 1st, and for 1994 the 1st. ## § 6323: Validity and priority against certain persons - § 6323(a): Pub. L. 101–508, § 11704(a)(26), substituted “Purchasers” for “Purchases” in heading. - § 6323(g)(3): Pub. L. 101–508, § 11317(b), substituted “10 years” for “6 years” wherever appearing. ## § 6332: Surrender of property subject to levy - § 6332(a): Pub. L. 101–508 substituted “this section” for “subsections (b) and (c)”. ## § 6402: Authority to make credits or refunds - § 6402(d)(1): Pub. L. 101–508, § 5129(c)(1)(A), struck out “any OASDI overpayment and” after “(other than”. - § 6402(d)(3): Pub. L. 101–508, § 5129(c)(1)(B), added par. (3) and struck out former par. (3) which read as follows: “For purposes of this subsection the term ‘OASDI overpayment’ means any overpayment of benefits made to an individual under title II of the Social Security Act.” - § 6402(e): Pub. L. 101–508, § 5129(c)(2), inserted before period at end “or any such action against the Secretary of Health and Human Services which is otherwise available with respect to recoveries of overpayments of benefits under section 204 of the Social Security Act”. ## § 6405: Reports of refunds and credits - § 6405(a), § 6405(b): Pub. L. 101–508, § 11834(a) substituted “$1,000,000” for “$200,000”. - § 6405: Pub. L. 101–508, § 11801(c)(21)(A), struck out subsec. (d) which read as follows: “For purposes of this section, a refund or credit made under subchapter E of chapter 64 (relating to Federal collection of qualified State individual income taxes) for a taxable year shall be treated as a portion of a refund or credit of the income tax for that taxable year.” ## § 6412: Floor stocks refunds - § 6412(a)(1): Pub. L. 101–508 substituted “1995” for “1993” and “1996” for “1994” wherever appearing. ## § 6413: Special rules applicable to certain employment taxes - § 6413(c): Pub. L. 101–508 substituted heading for one which read: “Applicability with respect to compensation of employees subject to the Railroad Retirement Tax Act” and amended text generally. Prior to amendment, text read as follows: “In the case of any individual who, during any calendar year, receives wages from one or more employers and also receives compensation which is subject to the tax imposed by section 3201 or 3211, such compensation shall, solely for purposes of applying paragraph (1) with respect to the tax imposed by section 3101(b), be treated as wages received from an employer with respect to which the tax imposed by section 3101(b) was deducted.” ## § 6416: Certain taxes on sales and services - § 6416(d): Pub. L. 101–508 inserted at end “The preceding sentence shall not apply to the tax imposed by section 4081 in the case of refunds described in section 4081(e).” ## § 6420: Gasoline used on farms - § 6420(h): Pub. L. 101–508 substituted “1995” for “1993”. ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(i): Pub. L. 101–508 substituted “1995” for “1993”. ## § 6422: Cross references - § 6422: Pub. L. 101–508 struck out par. (6) and redesignated the succeeding pars. accordingly, which was executed with respect to the succeeding pars. (consisting of pars. (7) to (12), (14), and (15)) by redesignating such pars. as (6) to (13), respectively. Prior to amendment, par. (6) provided a cross reference to section 1481 of this title for overpayment in certain renegotiations of war contracts. ## § 6427: Fuels not used for taxable purposes - § 6427(b)(2)(A): Pub. L. 101–508, § 11211(b)(5), substituted “shall be 3.1 cents per gallon less than the aggregate rate at which tax was imposed on such fuel by section 4041(a) or 4091, as the case may be” for “shall not exceed 12 cents”. - § 6427(e): Pub. L. 101–508, § 11801(a)(46), struck out subsec. (e) which required payment of refunds of gasoline or fuel tax to ultimate purchasers where such gasoline or fuel was used in a qualified taxicab engaged exclusively in furnishing qualified taxicab services. - § 6427(f): Pub. L. 101–508, § 11213(b)(3), amended subsec. (f) generally, restructuring and restating pars. (1) to (3) as (1) to (4) and extending the termination date from Sept. 30, 1993, to Sept. 30, 1995. - § 6427(g): Pub. L. 101–508, § 11211(d)(7), substituted “1995” for “1993”. - § 6427(i)(1): Pub. L. 101–508, § 11801(c)(23)(A), struck out “(e),” before “(g),”. - § 6427(i)(2)(A): Pub. L. 101–508, § 11801(c)(23)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “If— - § 6427(i)(2)(B), § 6427(i)(2)(C): Pub. L. 101–508, § 11801(c)(23)(C), redesignated subpar. (C) as (B) and struck out former subpar. (B) “Special rule” which read as follows: “If the requirements of subparagraph (A)(ii) are met by any person for any quarter but the requirements of subparagraph (A)(i) are not met by such person for such quarter, such person may file a claim under subparagraph (A) for such quarter only with respect to amounts referred to in subparagraph (A)(ii).” - § 6427(l)(1): Pub. L. 101–508, § 11211(b)(4)(B)(ii), inserted reference to par. (4). - § 6427(l)(4): Pub. L. 101–508, § 11211(b)(4)(B)(i), added par. (4). - § 6427(o): Pub. L. 101–508, § 11211(d)(8), substituted “1995” for “1993”. - § 6427: Pub. L. 101–508, § 11211(b)(6)(E)(ii), substituted heading for one which read: “Gasoline used in noncommercial aviation during period rate reduction in effect” and amended text generally. Prior to amendment, text read as follows: “Except as provided in subsection (k), if— ## § 6501: Limitations on assessment and collection - § 6501(c)(9): Pub. L. 101–508, § 11602(b), added par. (9). - § 6501(m): Pub. L. 101–508, § 11511(c)(2), which directed the substitution of “43 or 44B” for “44B” wherever appearing in subsec. (m), could not be executed because subsec. (m) was repealed by Pub. L. 100–418, § 1941(b)(2)(H), and did not contain the term “44B”. However, such term was contained in a prior subsec. (p) which was repealed by Pub. L. 98–369, § 474(r)(39). See 1984 Amendment notes below. ## § 6502: Collection after assessment - § 6502(a)(1): Pub. L. 101–508, § 11317(a)(1), substituted “10 years” for “6 years”. - § 6502(a)(2): Pub. L. 101–508, § 11317(a)(2), substituted “10-year period” for “6-year period” wherever appearing. ## § 6503: Suspension of running of period of limitation - § 6503(h), § 6503(i), § 6503(j): Pub. L. 101–508, § 11801(c)(20)(A), redesignated subsecs. (i) and (j) as (h) and (i), respectively, and struck out former subsec. (h) “Extension of time for collecting tax attributable to divestitures pursuant to Bank Holding Company Act Amendments of 1970” which read as follows: “The running of the period of limitations for collection of the tax attributable to a sale with respect to which the taxpayer makes an election under section 6158(a) shall be suspended for the period during which there are any unpaid installments of such tax.” - § 6503(k): Pub. L. 101–508, § 11801(c)(20)(A), redesignated subsec. (k) as (j). - § 6503(k): Pub. L. 101–508, § 11311(a), added subsec. (k). Former subsec. (k) redesignated (l). - § 6503: Pub. L. 101–508, § 11311(a), redesignated subsec. (k) as (l). ## § 6511: Limitations on credit or refund - § 6511(d)(2)(A): Pub. L. 101–508, § 11801(c)(17)(B), struck out before period at end of first sentence “; except that with respect to an overpayment attributable to the creation of, or an increase in a net operating loss carryback as a result of the elimination of excessive profits by a renegotiation (as defined in section 1481(a)(1)(A)), the period shall not expire before the expiration of the 12th month following the month in which the agreement or order for the elimination of such excessive profits becomes final”. - § 6511(e): Pub. L. 101–508, § 11801(c)(22)(C), struck out subsec. (e) which related to special rules in case of manufactured sugar either exported, used as livestock feed, or for distillation or production of alcohol. ## § 6515: Cross references - § 6515: Pub. L. 101–508 struck out par. (2) and redesignated the succeeding pars. accordingly, which was executed with respect to the succeeding pars. (consisting of pars. (3) to (7)) by redesignating such pars. as (2) to (6), respectively. Prior to amendment, par. (2) provided a cross reference to section 1481 for overpayment in certain renegotiations of war contracts. ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(b)(2): Pub. L. 101–508 struck out “or 6158(a)” after “6156(a)” in introductory provisions, struck out “or 6158(a), as the case may be” after “6156(a)” in subpar. (A), and struck out at end “For purposes of subparagraph (A), section 6158(a) shall be treated as providing that the date prescribed for payment of each installment shall not be later than the date prescribed for payment of the 1985 installment.” ## § 6621: Determination of rate of interest - § 6621(c): Pub. L. 101–508 added subsec. (c). ## § 6655: Failure by corporation to pay estimated income tax - § 6655(g)(3): Pub. L. 101–508 inserted a period at end of last sentence. ## § 6662: Imposition of accuracy-related penalty on underpayments - § 6662(b)(3): Pub. L. 101–508, § 11312(b)(1), amended par. (3) generally, substituting “misstatement” for “overstatement”. - § 6662(e): Pub. L. 101–508, § 11312(a), substituted “misstatement” for “overstatement” in heading and amended text generally. Prior to amendment, text read as follows: - § 6662(h)(2)(A): Pub. L. 101–508, § 11312(b)(2), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “any substantial valuation overstatement under chapter 1 as determined under subsection (e) by substituting ‘400 percent’ for ‘200 percent’,”. ## § 6721: Failure to file correct information returns - § 6721(e)(2): Pub. L. 101–508 inserted “6050I,” after “6050H,” and struck out “or” at end of subpar. (A), substituted “or” for “and” at end of subpar. (B), and added subpar. (C). ## § 6724: Waiver; definitions and special rules - § 6724(d)(1)(B)(x): Pub. L. 101–508, § 11323(b)(2), substituted “subsection (b) or (e) of section 1060” for “section 1060(b)”. - § 6724(d)(1)(B)(xi): Pub. L. 101–508, § 11212(e)(1), as amended by Pub. L. 104–188, § 1702(b)(1), struck out “, or subsection (e),” after “(c)(4)”. - § 6724(d)(1)(B)(xii): Pub. L. 101–508, § 11323(c)(2), added cl. (xii) relating to subpar. (C) of section 338(h)(10). - § 6724(d)(1)(B)(xii): Pub. L. 101–508, § 11212(e)(1), as amended by Pub. L. 104–188, § 1702(b)(1), added cl. (xii) relating to section 4101(d). ## § 7213: Unauthorized disclosure of information - § 7213(a)(2): Pub. L. 101–508 substituted “(6), or (7)” for “or (6)”. ## § 7463: Disputes involving $50,000 or less - § 7463(f): Pub. L. 101–508 struck out subsec. (f) “Qualified State individual income taxes” which read as follows: “For purposes of this section, a deficiency placed in dispute or claimed overpayment with regard to a qualified State individual income tax to which subchapter E of chapter 64 applies, for a taxable year, shall be treated as a portion of a deficiency placed in dispute or claimed overpayment of the income tax for that taxable year.” ## § 7518: Tax incentives relating to merchant marine capital construction funds - § 7518(g)(6)(A): Pub. L. 101–508 substituted “section 1(h)” for “section 1(j)” in last sentence. ## § 7519: Required payments for entities electing not to have required taxable year - § 7519(c)(3): Pub. L. 101–508 substituted “payable on the later of” for “payable on later of”. ## § 7522: Content of tax due, deficiency, and other notices ## § 7523: Graphic presentation of major categories of Federal outlays and income - Enacted 26 U.S.C. § 7523. ## § 7608: Authority of internal revenue enforcement officers - § 7608(c)(1)(B): Pub. L. 101–508, § 11704(a)(32), struck out comma after “operations”. - § 7608(c)(5)(C): Pub. L. 101–508, § 11704(a)(33), substituted “interest” for “interested” in cl. (i)(I) and “title 31” for “title 3” in cl. (ii). ## § 7655: Cross references - § 7655(a)(2), § 7655(a): Pub. L. 101–508, § 11801(c)(22)(E)(i), substituted period for semicolon at end of par. (2) and struck out par. (3) which cross-referenced former chapter 37 relating to tax on sugar. - § 7655(b)(2), § 7655(b): Pub. L. 101–508, § 11801(c)(22)(E)(ii), substituted period for semicolon at end of par. (2) and struck out par. (3) which cross-referenced former section 6418(b) relating to the exportation of sugar to Puerto Rico. ## § 7701: Definitions - § 7701(e)(5)(B): Pub. L. 101–508, § 11812(b)(13), inserted before period at end “(as in effect on the day before the date of the enactment of the Revenue Reconcilation [sic] Act of 1990)”. - § 7701(j)(1)(C): Pub. L. 101–508, § 11704(a)(34), substituted “(C) subject to section 401(k)(4)(B) and any dollar limitation on the application of section 402(a)(8),” for “(C) subject to, section 401(k)(4)(B), and any dollar limitation on the application of section 402(a)(8),”. ## § 7805: Rules and regulations - § 7805(f): Pub. L. 101–508 substituted heading for one which read “Impact of regulations on small business reviewed” and amended text generally. Prior to amendment, text read as follows: “After the publication of any proposed regulation by the Secretary and before the promulgation of any final regulation by the Secretary which does not supersede a proposed regulation, the Secretary shall submit such regulation to the Administrator of the Small Business Administration for comment on the impact of such regulation on small business. The Administrator shall have 4 weeks from the date of submission to respond.” ## § 9502: Airport and Airway Trust Fund - § 9502(b): Pub. L. 101–508, § 11213(c)(2), (d)(3), inserted “and the deficit reduction rate” after “financing rate” in par. (2) and substituted “January 1, 1996” for “January 1, 1991” in pars. (1) to (4). - § 9502(d)(1)(A): Pub. L. 101–508, § 11213(d)(4), substituted “or the Federal Aviation Administration Research, Engineering, and Development Authorization Act of 1990 or the Aviation Safety and Capacity Expansion Act of 1990 (as such Acts were in effect on the date of the enactment of the Aviation Safety and Capacity Expansion Act of 1990)” for “(as such Acts were in effect on the date of the enactment of the Airport and Airway Safety and Capacity Expansion Act of 1987)”. - § 9502(d)(4): Pub. L. 101–508, § 11211(b)(6)(G), added par. (4). - § 9502(e): Pub. L. 101–508, § 11213(c)(1), added subsec. (e). ## § 9503: Highway Trust Fund - § 9503(b)(1), § 9503(b)(2): Pub. L. 101–508, § 11211(g)(1), substituted “1995” for “1993” and “1996” for “1994” wherever appearing. - § 9503(b)(4)(B): Pub. L. 101–508, § 11211(a)(5)(D), inserted reference to section 4041. - § 9503(b)(5): Pub. L. 101–508, § 11211(a)(5)(F), added par. (5). - § 9503(c)(2): Pub. L. 101–508, § 11211(g)(1), substituted “1995” for “1993” and “1996” for “1994” wherever appearing. - § 9503(c)(2): Pub. L. 101–508, § 11211(a)(5)(E), inserted at end “The amounts payable from the Highway Trust Fund under this subparagraph or paragraph (3) shall be determined by taking into account only the Highway Trust Fund financing rate applicable to any fuel.” - § 9503(c)(3), § 9503(c)(4)(A): Pub. L. 101–508, § 11211(g)(1), substituted “1995” for “1993” and “1996” for “1994” wherever appearing. - § 9503(c)(4): Pub. L. 101–508, § 11211(b)(6)(H), struck out “(to the extent attributable to the Highway Trust Fund financing rate)” after “section 4081” and inserted before period at end “, but only to the extent such taxes are attributable to the Highway Trust Fund financing rates under such sections”. - § 9503(c)(5): Pub. L. 101–508, § 11211(i)(1), added par. (5). - § 9503(e)(2): Pub. L. 101–508, § 11211(h)(1), substituted “1.5 cents” for “1 cent”. ## § 9504: Sport Fish Restoration and Boating Trust Fund - § 9504(a): Pub. L. 101–508, § 11211(i)(2), inserted reference to section 9503(c)(5) in last sentence. - § 9504(b)(2): Pub. L. 101–508, § 11211(i)(3), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Amounts in the Sport Fish Restoration Account shall be available, as provided by appropriation Acts, to carry out the purposes of the Act entitled ‘An Act to provide that the United States shall aid the States in fish restoration and management projects, and for other purposes’, approved August 9, 1950 (as in effect on October 1, 1988).” ## § 9507: Hazardous Substance Superfund - § 9507(d)(3)(B): Pub. L. 101–508 substituted “December 31, 1995” for “December 31, 1991”.