# Pub. L. 104-188: changes to the Internal Revenue Code 1996-08-20, 110 Stat. 1882. Source: . ## Legislative history - Bill: [H.R. 3448](https://www.congress.gov/bill/104th-congress/house-bill/3448) - House report: [H. Rept. 104-586](https://www.govinfo.gov/content/pkg/CRPT-104hrpt586/html/CRPT-104hrpt586.htm) - Senate report: [S. Rept. 104-281](https://www.govinfo.gov/content/pkg/CRPT-104srpt281/html/CRPT-104srpt281.htm) - Conference report: [H. Rept. 104-737](https://www.govinfo.gov/content/pkg/CRPT-104hrpt737/html/CRPT-104hrpt737.htm) ## § 1: Tax imposed - § 1(g)(7)(A)(ii): Pub. L. 104–188, § 1704(m)(1), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “such gross income is more than $500 and less than $5,000,”. - § 1(g)(7)(B)(i): Pub. L. 104–188, § 1704(m)(2)(A), substituted “twice the amount described in paragraph (4)(A)(ii)(I)” for “$1,000”. - § 1(g)(7)(B)(ii)(II): Pub. L. 104–188, § 1704(m)(2)(B), amended subcl. (II) generally. Prior to amendment, subcl. (II) read as follows: “for each such child, the lesser of $75 or 15 percent of the excess of the gross income of such child over $500, and”. ## § 21: Expenses for household and dependent care services necessary for gainful employment - § 21(e)(10): Pub. L. 104–188 added par. (10). ## § 23: Adoption expenses - Enacted 26 U.S.C. § 23. ## § 25: Interest on certain home mortgages - § 25(e)(1)(C): Pub. L. 104–188 inserted “and section 23” after “other than this section”. ## § 26: Limitation based on tax liability; definition of tax liability - § 26(b)(2)(O): Pub. L. 104–188 added subpar. (O). ## § 34: Certain uses of gasoline and special fuels - § 34(a)(3): Pub. L. 104–188 amended par. (3) generally. Prior to amendment, par. (3) read as follows: “under section 6427— ## § 38: General business credit - § 38(b)(2): Pub. L. 104–188, § 1201(e)(1), substituted “work opportunity credit” for “targeted jobs credit”. - § 38(b)(12): Pub. L. 104–188, § 1205(a)(2), added par. (12). - § 38(c)(2): Pub. L. 104–188, § 1702(e)(4), amended subpar. (C), as in effect on day before date of enactment of the Revenue Reconciliation Act of 1990 (title XI of Pub. L. 101–508, approved Nov. 5, 1990), by inserting before period at end of first sentence “and without regard to the deduction under section 56(h)”. ## § 39: Carryback and carryforward of unused credits - § 39(d): Pub. L. 104–188, § 1703(n)(1)(A), substituted “45A” for “45” in heading. - § 39(d): Pub. L. 104–188, § 1703(n)(1)(B), substituted “45B” for “45” in heading. - § 39(d): Pub. L. 104–188, § 1205(c), added par. (7). ## § 40: Alcohol, etc., used as fuel - § 40(e)(1)(B): Pub. L. 104–188 amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “for any period before January 1, 2001, during which the Highway Trust Fund financing rate under section 4081(a)(2) is not in effect.” ## § 41: Credit for increasing research activities - § 41(b)(2)(D)(iii): Pub. L. 104–188, § 1201(e)(1), (4), substituted “work opportunity credit” for “targeted jobs credit” in heading and text. - § 41(b)(3)(C): Pub. L. 104–188, § 1204(d), added subpar. (C). - § 41(c)(3)(B)(i): Pub. L. 104–188, § 1204(b), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The fixed-base percentage shall be determined under this subparagraph if there are fewer than 3 taxable years beginning after December 31, 1983, and before January 1, 1989, in which the taxpayer had both gross receipts and qualified research expenses.” - § 41(c)(4), § 41(c)(5), § 41(c)(6): Pub. L. 104–188, § 1204(c), added par. (4) and redesignated former pars. (4) and (5) as (5) and (6), respectively. - § 41(h): Pub. L. 104–188, § 1204(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: ## § 42: Low-income housing credit - § 42(c)(2): Pub. L. 104–188, § 1704(t)(64), struck out “of 1988” after “Homeless Assistance Act”. - § 42(d)(5)(B): Pub. L. 104–188, § 1704(t)(53), provided that section 11812(b)(3) of Pub. L. 101–508 shall be applied by not executing the amendment therein to the heading of subsec. (d)(5)(B) of this section. See 1990 Amendment note below. ## § 45A: Indian employment credit - § 45A(b)(1)(B): Pub. L. 104–188, which directed that subsec. (b)(1)(B) of this section be amended in the text by substituting “work opportunity credit” for “targeted jobs credit”, could not be executed because the words “targeted jobs credit” did not appear in the text. ## § 45B: Credit for portion of employer social security taxes paid with respect to employee cash tips - § 45B(b)(1)(A): Pub. L. 104–188, § 1112(a)(1), inserted “(without regard to whether such tips are reported under section 6053)” after “section 3121(q)”. - § 45B(b)(2): Pub. L. 104–188, § 1112(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Only tips received at food and beverage establishments taken into account.—In applying paragraph (1), there shall be taken into account only tips received from customers in connection with the provision of food or beverages for consumption on the premises of an establishment with respect to which the tipping of employees serving food or beverages by customers is customary.” ## § 45C: Clinical testing expenses for certain drugs for rare diseases or conditions - § 45C: Pub. L. 104–188, § 1205(a)(1), renumbered section 28 of this title as this section. - § 45C(a): Pub. L. 104–188, § 1205(d)(1), substituted “For purposes of section 38, the credit determined under this section for the taxable year is” for “There shall be allowed as a credit against the tax imposed by this chapter for the taxable year”. - § 45C(b)(1): Pub. L. 104–188, § 1204(e), inserted “, and before July 1, 1996, and periods after May 31, 1997” after “June 30, 1995”. - § 45C(d)(2), § 45C(d)(3), § 45C(d)(4), § 45C(d): Pub. L. 104–188, § 1205(d)(2), redesignated pars. (3) to (5) as (2) to (4), respectively, and struck out former par. (2) which read as follows: “Limitation based on amount of tax.—The credit allowed by this section for any taxable year shall not exceed the excess (if any) of— - § 45C: Pub. L. 104–188, § 1205(b), amended subsec. (e) generally. Prior to amendment, subsec. (e) read as follows: “Termination.—This section shall not apply to any amount paid or incurred after December 31, 1994.” ## § 45K: Credit for producing fuel from a nonconventional source - § 45K(b): Pub. L. 104–188, § 1205(d)(3), substituted “section 27” for “sections 27 and 28”. - § 45K(g)(1)(A): Pub. L. 104–188, § 1207(a), substituted “July 1, 1998” for “January 1, 1997” and “January 1, 1997” for “January 1, 1996”. ## § 50: Other special rules - § 50(a)(2)(C): Pub. L. 104–188, § 1704(t)(29), substituted “subsection (d)(5)” for “subsection (c)(4)”. - § 50(a)(2)(E): Pub. L. 104–188, § 1702(h)(11), substituted “48(a)(5)” for “48(a)(5)(A)”. - § 50(d): Pub. L. 104–188, § 1616(b)(1), inserted closing provisions. ## § 51: Amount of credit - § 51(a): Pub. L. 104–188, § 1201(a), (e)(1), substituted “work opportunity credit” for “targeted jobs credit” and “35 percent” for “40 percent”. - § 51(c)(1): Pub. L. 104–188, § 1201(f), struck out “, subsection (d)(8)(D),” after “this subsection”. - § 51(c)(4): Pub. L. 104–188, § 1201(d), amended par. (4) generally. Prior to amendment, par. (4) read as follows: “Termination.—The term ‘wages’ shall not include any amount paid or incurred to an individual who begins work for the employer after December 31, 1994.” - § 51(d): Pub. L. 104–188, § 1201(b), reenacted heading without change and amended text generally, revising and restating as pars. (1) to (11) provisions formerly contained in pars. (1) to (16). - § 51(g): Pub. L. 104–188, § 1201(e)(1), substituted “work opportunity credit” for “targeted jobs credit”. - § 51(i)(3): Pub. L. 104–188, § 1201(c), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “Individuals not meeting minimum employment period.—No wages shall be taken into account under subsection (a) with respect to any individual unless such individual either— - § 51(j): Pub. L. 104–188, § 1201(e)(5), substituted “Work opportunity credit” for “Targeted jobs credit” in heading. ## § 52: Special rules - § 52(e)(1), § 52(e)(2), § 52(e): Pub. L. 104–188 redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out former par. (1) which read as follows: “an organization to which section 593 (relating to reserves for losses on loans) applies,”. ## § 53: Credit for prior year minimum tax liability - § 53(d)(1)(B)(iii): Pub. L. 104–188, § 1205(d)(5)(A), which directed that cl. (iii) be amended by striking out “or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B),” was executed by striking out “not allowed under section 28 solely by reason of the application of section 28(d)(2)(B),” after “29(b)(6)(B),”, to reflect the probable intent of Congress. - § 53(d)(1)(B): Pub. L. 104–188, § 1704(j)(1), amended subcl. (II) generally. Prior to amendment, subcl. (II) read as follows: “the adjusted net minimum tax for any taxable year is the amount of the net minimum tax for such year increased by the amount of any credit not allowed under section 29 solely by reason of the application of section 29(b)(5)(B) or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B).” - § 53(d)(1)(B): Pub. L. 104–188, § 1205(d)(5)(B), which directed that subcl. (II) be amended by striking out “or not allowed under section 28 solely by reason of the application of section 28(d)(2)(B)”, could not be executed because the phrase sought to be struck out did not appear in text subsequent to the general amendment of subcl. (II) by Pub. L. 104–188, § 1704(j)(1), see above, which, pursuant to section 1701 of Pub. L. 104–188, set out as a note under section 1 of this title, is treated as having been enacted before section 1205(d)(5)(B) of Pub. L. 104–188. ## § 55: Alternative minimum tax imposed - § 55(c)(1): Pub. L. 104–188, § 1601(b)(2)(A), substituted “, the section 936 credit allowable under section 27(b), and the Puerto Rican economic activity credit under section 30A” for “and the section 936 credit allowable under section 27(b)”. - § 55(c)(1): Pub. L. 104–188, § 1401(b)(3), struck out “shall not include any tax imposed by section 402(d) and” before “shall not include any increase in tax under section 49(b)”. - § 55(c)(2): Pub. L. 104–188, § 1205(d)(6), struck out “28(d)(2),” after “26(a),”. ## § 56: Adjustments in computing alternative minimum taxable income - § 56(b)(3): Pub. L. 104–188, § 1702(h)(12), provided that the amendment made by section 11801(c)(9)(G)(ii) of Pub. L. 101–508 shall be applied as if it struck “Section 422A(c)(2)” and inserted “Section 422(c)(2)”. See 1990 Amendment note below. - § 56: Pub. L. 104–188, § 1704(t)(48), provided that section 11801(c)(2)(B) of Pub. L. 101–508 shall be applied as if “section 56(g)” appeared instead of “section 59(g)”. See 1990 Amendment note below. - § 56: Pub. L. 104–188, § 1601(b)(2)(B), inserted “30A,” before “936” and substituted “, (i), and (j)” for “and (i)”. - § 56: Pub. L. 104–188, § 1704(t)(1), substituted “of subclause” for “of the subclause”. - § 56: Pub. L. 104–188, § 1601(b)(2)(C), added subcl. (VI). - § 56: Pub. L. 104–188, § 1702(g)(4), inserted “, but only with respect to taxable years beginning after December 31, 1989” before period at end. - § 56: Pub. L. 104–188, § 1702(c)(1), redesignated subpars. (I) and (J) as (H) and (I), respectively. - § 56: Pub. L. 104–188, § 1621(b)(2), substituted “REMIC, or FASIT” for “or REMIC”. ## § 57: Items of tax preference - § 57(a)(4): Pub. L. 104–188 struck out par. (4) which read as follows: “Reserves for losses on bad debts of financial institutions.—In the case of a financial institution to which section 593 applies, the amount by which the deduction allowable for the taxable year for a reasonable addition to a reserve for bad debts exceeds the amount that would have been allowable had the institution maintained its bad debt reserve for all taxable years on the basis of actual experience.” ## § 59: Other definitions and special rules - § 59(a)(1)(A): Pub. L. 104–188, § 1703(e)(1), substituted “the pre-credit tentative minimum tax” for “the amount determined under section 55(b)(1)(A)”. - § 59(a)(1)(C): Pub. L. 104–188, § 1703(e)(2), substituted “specified in subparagraph (A)(i) or (B)(i) of section 55(b)(1) (whichever applies)” for “specified in section 55(b)(1)(A)”. - § 59(a)(2): Pub. L. 104–188, § 1703(e)(1), substituted “the pre-credit tentative minimum tax” for “the amount determined under section 55(b)(1)(A)”. - § 59(a)(2): Pub. L. 104–188, § 1703(e)(3), substituted “which would be the pre-credit tentative minimum tax” for “which would be determined under section 55(b)(1)(A)”. - § 59(a)(3): Pub. L. 104–188, § 1703(e)(4), added par. (3). - § 59(b): Pub. L. 104–188, § 1601(b)(2)(D), substituted “section 30A or 936, alternative minimum taxable income shall not include any income with respect to which a credit is determined under section 30A or 936.” for “section 936, alternative minimum taxable income shall not include any amount with respect to which the requirements of subparagraph (A) or (B) of section 936(a)(1) are met.” - § 59(j)(1)(B): Pub. L. 104–188, § 1704(m)(3), substituted “twice the amount in effect for the taxable year under section 63(c)(5)(A)” for “$1,000”. - § 59(j): Pub. L. 104–188, § 1702(a)(1), substituted “section 1(g)(3)(B)” for “section 1(i)(3)(B)”. ## § 62: Adjusted gross income defined - § 62(a)(8): Pub. L. 104–188 struck out par. (8) which read as follows: “Certain portion of lump-sum distributions from pension plans taxed under section 402(d).—The deduction allowed by section 402(d)(3).” ## § 72: Annuities; certain proceeds of endowment and life insurance contracts - § 72(b)(4)(A): Pub. L. 104–188, § 1704(l)(1), inserted “(determined without regard to subsection (c)(2))” after “contract”. - § 72(d): Pub. L. 104–188, § 1403(a), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “Treatment of Employee Contributions Under Defined Contribution Plans as Separate Contracts.—For purposes of this section, employee contributions (and any income allocable thereto) under a defined contribution plan may be treated as a separate contract.” - § 72(f): Pub. L. 104–188, § 1463(a), in closing provisions, inserted before period at end “, or to the extent such credits are attributable to services performed as a foreign missionary (within the meaning of section 403(b)(2)(D)(iii))”. - § 72(m)(2)(A), § 72(m)(2)(B), § 72(m)(2): Pub. L. 104–188, § 1704(t)(2), inserted “and” at end of subpar. (A), redesignated subpar. (C) as (B), and struck out former subpar. (B) which read as follows: “the consideration for the contract contributed by the employee for purposes of subsection (d)(1) (relating to employee’s contributions recoverable in 3 years) and subsection (e)(7) (relating to plans where substantially all contributions are employee contributions), and”. - § 72(p)(4)(A)(ii): Pub. L. 104–188, § 1704(t)(77), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “Special rules.—The term ‘qualified employer plan’— - § 72(t)(6): Pub. L. 104–188, § 1421(b)(4)(A), added par. (6). ## § 86: Social security and tier 1 railroad retirement benefits - § 86(b)(2): Pub. L. 104–188, § 1704(t)(3), substituted “means adjusted” for “means adusted” in introductory provisions. - § 86(b)(2)(A): Pub. L. 104–188, § 1807(c)(2), inserted “137,” before “911”. ## § 101: Certain death benefits - § 101(b): Pub. L. 104–188, § 1402(a), struck out subsec. (b) which related to employees’ death benefits. - § 101(c): Pub. L. 104–188, § 1402(b)(1), substituted “subsection (a)” for “subsection (a) or (b)”. ## § 104: Compensation for injuries or sickness - § 104(a): Pub. L. 104–188, § 1605(b), in closing provisions, substituted “For purposes of paragraph (2), emotional distress shall not be treated as a physical injury or physical sickness. The preceding sentence shall not apply to an amount of damages not in excess of the amount paid for medical care (described in subparagraph (A) or (B) of section 213(d)(1)) attributable to emotional distress.” for “Paragraph (2) shall not apply to any punitive damages in connection with a case not involving physical injury or physical sickness.” - § 104(a)(2): Pub. L. 104–188, § 1605(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “the amount of any damages received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal injuries or sickness;”. - § 104(c), § 104(d): Pub. L. 104–188, § 1605(c), added subsec. (c) and redesignated former subsec. (c) as (d). ## § 108: Income from discharge of indebtedness - § 108(d)(9)(A): Pub. L. 104–188 substituted “paragraph (3)(C)” for “paragraph (3)(B)”. ## § 112: Certain combat zone compensation of members of the Armed Forces - § 112: Pub. L. 104–188 substituted “combat zone compensation” for “combat pay” in section catchline. ## § 117: Qualified scholarships - § 117(d)(2)(B): Pub. L. 104–188 substituted “section 132(h)” for “section 132(f)”. ## § 118: Contributions to the capital of a corporation - § 118(b): Pub. L. 104–188, § 1613(a)(2), inserted “except as provided in subsection (c),” before “the term”. - § 118(c), § 118(d), § 118(e): Pub. L. 104–188, § 1613(a)(1), added subsecs. (c) and (d) and redesignated former subsec. (c) as (e). ## § 119: Meals or lodging furnished for the convenience of the employer - § 119(d)(4): Pub. L. 104–188 amended par. (4) generally. Prior to amendment, par. (4) read as follows: “Educational institution.—For purposes of this paragraph, the term ‘educational institution’ means an institution described in section 170(b)(1)(A)(ii).” ## § 127: Educational assistance programs - § 127(c)(1): Pub. L. 104–188, § 1202(b), in closing provisions, inserted before period at end “, and such term 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. 104–188, § 1202(a), substituted “May 31, 1997. In the case of any taxable year beginning in 1997, only expenses paid with respect to courses beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.” for “December 31, 1994.” ## § 129: Dependent care assistance programs - § 129(d)(8)(B): Pub. L. 104–188 substituted “section 414(q)(4)” for “section 414(q)(7)”. ## § 135: Income from United States savings bonds used to pay higher education tuition and fees - § 135(b)(2)(B)(ii): Pub. L. 104–188, § 1703(d), inserted “, determined by substituting ‘calendar year 1989’ for ‘calendar year 1992’ in subparagraph (B) thereof” before period at end. - § 135(c)(4)(A): Pub. L. 104–188, § 1807(c)(2), inserted “137,” before “911”. - § 135(d)(1)(D): Pub. L. 104–188, § 1806(b)(1), added subpar. (D). ## § 136: Energy conservation subsidies provided by public utilities - § 136(a): Pub. L. 104–188, § 1617(b)(1), reenacted heading without change and amended text generally, substituting present provisions for former provisions which consisted of general exclusion in par. (1) and limitation for exclusion on nonresidential property in par. (2). - § 136(c)(1): Pub. L. 104–188, § 1617(a), substituted “energy demand with respect to a dwelling unit.” for “energy demand— - § 136(c)(2): Pub. L. 104–188, § 1617(b)(2), struck out “and special rules” after “definitions” in heading, redesignated subpars. (B) and (C) as (A) and (B), respectively, and struck out former subpar. (A) which related to “specially defined energy property”. ## § 137: Adoption assistance programs - Enacted 26 U.S.C. § 137. ## § 140: Cross references to other Acts - § 140: Pub. L. 104–188 renumbered section 137 of this title as this section. ## § 142: Exempt facility bond - § 142(b)(1)(A): Pub. L. 104–188, § 1704(j)(7), provided that section 1921(b)(2) of Pub. L. 102–486 shall be applied as if a comma appeared after “(2)” in the material proposed to be stricken. See 1992 Amendment note below. - § 142(f)(3), § 142(f)(4): Pub. L. 104–188, § 1608(a), added pars. (3) and (4). ## § 143: Mortgage revenue bonds: qualified mortgage bond and qualified veterans’ mortgage bond - § 143(d)(2)(C): Pub. L. 104–188, § 1703(n)(3), substituted “thereon,” for “thereon.” - § 143(m)(4)(C)(ii): Pub. L. 104–188, § 1702(d)(2), substituted “any year of the 4-year period” for “any month of the 10-year period”, “succeeding years” for “succeeding months”, and “to zero over the succeeding 5 years” for “over the remainder of such period (or, if lesser, over 5 years)”. ## § 147: Other requirements applicable to certain private activity bonds - § 147(c)(2)(E): Pub. L. 104–188, § 1117(b), substituted “30 percent” for “15 percent”. - § 147(c)(2)(G): Pub. L. 104–188, § 1117(a), added subpar. (G). ## § 149: Bonds must be registered to be tax exempt; other requirements - § 149(g)(3)(B)(iii): Pub. L. 104–188 amended cl. (iii) generally. Prior to amendment, cl. (iii) read as follows: “Investment earnings held pending reinvestment.—Investment earnings held for not more than 30 days pending reinvestment shall be treated as invested in bonds described in clause (i).” ## § 150: Definitions and special rules - § 150(d)(3): Pub. L. 104–188 added par. (3). ## § 151: Allowance of deductions for personal exemptions - § 151(d)(3)(C): Pub. L. 104–188, § 1702(a)(2), substituted “joint return” for “joint of a return”. - § 151(e): Pub. L. 104–188, § 1615(a)(1), added subsec. (e). ## § 162: Trade or business expenses - § 162(k): Pub. L. 104–188, § 1704(p)(3), substituted “reaquisition” for “redemption” in heading. - § 162(k)(1): Pub. L. 104–188, § 1704(p)(1), substituted “the reacquisition of its stock or of the stock of any related person (as defined in section 465(b)(3)(C))” for “the redemption of its stock”. - § 162(k)(2)(A): Pub. L. 104–188, § 1704(p)(2), struck out “or” at end of cl. (i), added cl. (ii), and redesignated former cl. (ii) as (iii). ## § 163: Interest - § 163(j)(1)(B): Pub. L. 104–188, § 1704(f)(2)(A), inserted before period at end “(and clause (ii) of paragraph (2)(A) shall not apply for purposes of applying this subsection to the amount so treated)”. - § 163(j)(6): Pub. L. 104–188, § 1703(n)(4), which directed that cl. (ii) be amended by substituting “which is” for “which is a”, could not be executed, because “which is a” does not appear. - § 163(j)(7), § 163(j)(8): Pub. L. 104–188, § 1704(f)(2)(B), added par. (7) and redesignated former par. (7) as (8). ## § 164: Taxes - § 164(a)(4), § 164(a): Pub. L. 104–188 added pars. (4) and (5) and struck out former pars. (4) and (5) which read as follows: ## § 167: Depreciation - § 167(g), § 167(h): Pub. L. 104–188 added subsec. (g) and redesignated former subsec. (g) as (h). ## § 168: Accelerated cost recovery system - § 168(b)(3)(F): Pub. L. 104–188, § 1613(b)(1), added subpar. (F). - § 168(c): Pub. L. 104–188, § 1613(b)(2), inserted table item relating to water utility property. - § 168(e)(3)(B): Pub. L. 104–188, § 1702(h)(1)(B), inserted closing provisions. - § 168(e)(3)(B)(vi)(I): Pub. L. 104–188, § 1704(t)(54), provided that section 11813(b)(9)(A)(i) of Pub. L. 101–508 shall be applied as if a comma appeared after “(3)(A)(ix)” in the material proposed to be stricken. See 1990 Amendment note below. - § 168(e)(3)(B)(vi): Pub. L. 104–188, § 1702(h)(1)(A), added subcl. (III). - § 168(e)(3)(E)(iii): Pub. L. 104–188, § 1120(a), added cl. (iii). - § 168(e)(3)(F): Pub. L. 104–188, § 1613(b)(3)(B)(i), struck out subpar. (F) which read as follows: “20-year property.—The term ‘20-year property’ includes any municipal sewers.” - § 168(e)(5): Pub. L. 104–188, § 1613(b)(3)(A), added par. (5). - § 168(g)(2)(C): Pub. L. 104–188, § 1613(b)(4), inserted “or water utility property” after “tunnel bore”. - § 168(g)(3)(B): Pub. L. 104–188, § 1120(b), inserted table item relating to subpar. (E)(iii). - § 168(g)(3)(B): Pub. L. 104–188, § 1613(b)(3)(B)(ii), struck out table item relating to subpar. (F) for which the class life was 50. - § 168(g)(4)(K): Pub. L. 104–188, § 1702(h)(1)(C), substituted “section 48(l)(3)(A)(ix) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” for “section 48(a)(3)(A)(iii)”. - § 168(i)(8): Pub. L. 104–188, § 1121(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “In the case of any building erected (or improvements made) on leased property, if such building or improvement is property to which this section applies, the depreciation deduction shall be determined under the provisions of this section.” ## § 170: Charitable, etc., contributions and gifts - § 170(e)(1): Pub. L. 104–188, § 1316(b), inserted at end “For purposes of applying this paragraph in the case of a charitable contribution of stock in an S corporation, rules similar to the rules of section 751 shall apply in determining whether gain on such stock would have been long-term capital gain if such stock were sold by the taxpayer.” - § 170(e)(5): Pub. L. 104–188, § 1206(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “This paragraph shall not apply to contributions made after December 31, 1994.” ## § 172: Net operating loss deduction - § 172(b)(1): Pub. L. 104–188, § 1702(h)(2), substituted “subsection (h)” for “subsection (m)”. - § 172: Pub. L. 104–188, § 1704(t)(5), substituted “corporation.” for “corporation,” at end. - § 172: Pub. L. 104–188, § 1704(t)(30), substituted “For purposes of subsection (b)(2)—” for “For purposes of subsection (b)(2)” in introductory provisions. - § 172: Pub. L. 104–188, § 1702(h)(16), substituted “(b)(1)(E)” for “(b)(1)(M)”. ## § 179: Election to expense certain depreciable business assets - § 179(b)(1): Pub. L. 104–188, § 1111(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $17,500.” - § 179(d)(1): Pub. L. 104–188, § 1702(h)(10), struck out “in” before “a trade or business”. - § 179(d)(1): Pub. L. 104–188, § 1702(h)(19), inserted at end “Such term shall not include any property described in section 50(b) and shall not include air conditioning or heating units.” ## § 196: Deduction for certain unused business credits - § 196(c)(2): Pub. L. 104–188 substituted “work opportunity credit” for “targeted jobs credit”. ## § 219: Retirement savings - § 219(b)(4): Pub. L. 104–188, § 1421(b)(1)(A), added par. (4). - § 219(c): Pub. L. 104–188, § 1427(a), amended subsec. (c) generally, substituting present provisions for former provisions relating to special rules for certain married individuals which set out general provisions in par. (1) and a limitation in par. (2). - § 219(f)(2): Pub. L. 104–188, § 1427(b)(1), substituted “subsection (b)” for “subsections (b) and (c)”. - § 219(g)(1): Pub. L. 104–188, § 1427(b)(2), substituted “(c)(1)(A)” for “(c)(2)”. - § 219(g)(3)(A)(ii): Pub. L. 104–188, § 1807(c)(3), as amended by Pub. L. 105–206, § 6018(f)(2), inserted “, 137,” before “and 911”. - § 219(g)(5)(A)(vi): Pub. L. 104–188, § 1421(b)(1)(B), added cl. (vi). ## § 243: Dividends received by corporations - § 243(b)(2): Pub. L. 104–188, § 1702(h)(8), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘affiliated group’ has the meaning given such term by section 1504(a), except that for such purposes sections 1504(b)(2), 1504(b)(4), and 1504(c) shall not apply.” - § 243(b)(3)(A): Pub. L. 104–188, § 1702(h)(4), inserted “of” after “In the case”. ## § 246: Rules applying to deductions for dividends received - § 246: Pub. L. 104–188 struck out subsec. (f) which provided a cross reference to section 596 of this title for special rule relating to mutual savings banks, etc., to which section 593 applies. ## § 280A: Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc. - § 280A(c)(1)(A): Pub. L. 104–188, § 1704(t)(39), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the principal place of business for any trade or business of the taxpayer.” - § 280A(c)(2): Pub. L. 104–188, § 1113(a), substituted “inventory or product samples” for “inventory”. ## § 280C: Certain expenses for which credits are allowable - § 280C(b)(1): Pub. L. 104–188, § 1205(d)(7), substituted “section 45C(b)” for “section 28(b)”, “section 45C” for “section 28”, and “section 38(c)” for “subsection (d)(2) thereof”. - § 280C(b)(2)(A): Pub. L. 104–188, § 1205(d)(7)(B), (C), substituted “section 45C” for “section 28” and “section 38(c)” for “subsection (d)(2) thereof”. ## § 280F: Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes - § 280F(a): Pub. L. 104–188 struck out “investment tax credit and” after “amount of” in heading. ## § 280G: Golden parachute payments - § 280G(b)(6)(D): Pub. L. 104–188 added subpar. (D). ## § 291: Special rules relating to corporate preference items - § 291(e)(1)(B)(i): Pub. L. 104–188, § 1616(b)(5), struck out “or to which section 593 applies” after “585(a)(2))”. - § 291(e)(1)(B)(iv), § 291(e)(1)(B): Pub. L. 104–188, § 1602(b)(1), redesignated cl. (v) as (iv) and struck out former cl. (iv) which read as follows: “Special rules for obligations to which section 133 applies.—In the case of an obligation to which section 133 applies, interest on such obligation shall not be treated as exempt from taxes for purposes of this subparagraph.” ## § 355: Distribution of stock and securities of a controlled corporation - § 355(d)(7)(A): Pub. L. 104–188 inserted “section” before “267(b)”. ## § 381: Carryovers in certain corporate acquisitions - § 381(c)(26), § 381(c): Pub. L. 104–188 amended directory language of Pub. L. 101–239. See 1989 Amendment note below. ## § 382: Limitation on net operating loss carryforwards and certain built-in losses following ownership change - § 382(l)(4)(B)(ii): Pub. L. 104–188 substituted “a REMIC to which part IV of subchapter M applies, or a FASIT to which part V of subchapter M applies” for “or a REMIC to which part IV of subchapter M applies”. ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(a)(5)(D)(ii): Pub. L. 104–188, § 1431(c)(1)(B), substituted “section 414(q)(4)” for “section 414(q)(7)” in introductory provisions. - § 401(a)(5)(F): Pub. L. 104–188, § 1445(a), added subpar. (F). - § 401(a)(9)(C): Pub. L. 104–188, § 1404(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this paragraph, the term ‘required beginning date’ means April 1 of the calendar year following the calendar year in which the employee attains age 70½. In the case of a governmental plan or church plan, the required beginning date shall be the later of the date determined under the preceding sentence or April 1 of the calendar year following the calendar year in which the employee retires. For purposes of this subparagraph, the term ‘church plan’ means a plan maintained by a church for church employees, and the term ‘church’ means any church (as defined in section 3121(w)(3)(A)) or qualified church-controlled organization (as defined in section 3121(w)(3)(B)).” - § 401(a)(17)(A): Pub. L. 104–188, § 1431(b)(2), struck out at end “In determining the compensation of an employee, the rules of section 414(q)(6) shall apply, except that in applying such rules, the term ‘family’ shall include only the spouse of the employee and any lineal descendants of the employee who have not attained age 19 before the close of the year.” - § 401(a)(20): Pub. L. 104–188, § 1704(t)(67), substituted “section 521” for “section 211” in last sentence. - § 401(a)(26)(A): Pub. L. 104–188, § 1432(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “A trust shall not constitute a qualified trust under this subsection unless such trust is part of a plan which on each day of the plan year benefits the lesser of— - § 401(a)(26)(G): Pub. L. 104–188, § 1432(b), substituted “paragraph (2)(A) or (7)” for “paragraph (7)”. - § 401(a)(28)(B)(v): Pub. L. 104–188, § 1401(b)(5), struck out cl. (v) which read as follows: - § 401(d): Pub. L. 104–188, § 1441(a), amended subsec. (d) generally, substituting provisions relating to contribution limit on owner-employees for former provisions relating to additional requirements for qualification of trusts and plans benefiting owner-employees. - § 401(h): Pub. L. 104–188, § 1704(a), provided that, except as otherwise expressly provided, whenever in title XII of Pub. L. 101–508 an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. Section 12011(b) of title XII of Pub. L. 101–508 directed the amendment of this section without specifying that the amendment was to the Internal Revenue Code of 1986. See 1990 Amendment note below. - § 401(k)(3)(A): Pub. L. 104–188, § 1433(c)(1), in introductory provisions of cl. (ii) substituted “the plan year” for “such year” and “for the preceding plan year” for “for such plan year” and inserted at end of closing provisions of subpar. (A) “An arrangement may apply clause (ii) by using the plan year rather than the preceding plan year if the employer so elects, except that if such an election is made, it may not be changed except as provided by the Secretary.” - § 401(k)(3)(E): Pub. L. 104–188, § 1433(d)(1), added subpar. (E). - § 401(k)(3)(F): Pub. L. 104–188, § 1459(a), added subpar. (F). - § 401(k)(4)(B): Pub. L. 104–188, § 1426(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: - § 401(k)(7)(B)(i): Pub. L. 104–188, § 1443(b), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “any organization which— - § 401(k)(7)(C): Pub. L. 104–188, § 1443(a), added subpar. (C). - § 401(k)(8)(C): Pub. L. 104–188, § 1433(e)(1), substituted “on the basis of the amount of contributions by, or on behalf of, each of such employees” for “on the basis of the respective portions of the excess contributions attributable to each of such employees”. - § 401(k)(10)(B)(ii): Pub. L. 104–188, § 1401(b)(6), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: - § 401(k)(11): Pub. L. 104–188, § 1422(a), added par. (11). - § 401(k)(12): Pub. L. 104–188, § 1433(a), added par. (12). - § 401(m)(2)(A): Pub. L. 104–188, § 1433(c)(2), inserted “for such plan year” after “highly compensated employees” in introductory provisions, inserted “for the preceding plan year” after “eligible employees” wherever appearing in cls. (i) and (ii), and inserted at end “This subparagraph may be applied by using the plan year rather than the preceding plan year if the employer so elects, except that if such an election is made, it may not be changed except as provided by the Secretary.” - § 401(m)(3): Pub. L. 104–188, § 1433(d)(2), inserted at end of closing provisions “Rules similar to the rules of subsection (k)(3)(E) shall apply for purposes of this subsection.” - § 401(m)(5)(C): Pub. L. 104–188, § 1459(b), added subpar. (C). - § 401(m)(6)(C): Pub. L. 104–188, § 1433(e)(2), substituted “on the basis of the amount of contributions on behalf of, or by, each such employee” for “on the basis of the respective portions of such amounts attributable to each of such employees”. - § 401(m)(10): Pub. L. 104–188, § 1422(b), added par. (10). Former par. (10) redesignated (11). - § 401(m)(11): Pub. L. 104–188, § 1433(b), added par. (11). Former par. (11) redesignated (12). - § 401(m)(11): Pub. L. 104–188, § 1422(b), redesignated par. (10) as (11). - § 401(m)(12): Pub. L. 104–188, § 1433(b), redesignated par. (11) as (12). ## § 402: Taxability of beneficiary of employees’ trust - § 402(c)(10): Pub. L. 104–188, § 1401(b)(2), struck out par. (10) which read as follows: - § 402(d): Pub. L. 104–188, § 1401(a), amended subsec. (d) generally, substituting provisions relating to taxability of beneficiary of certain foreign situs trusts for former provisions relating to tax on lump sum distributions. - § 402(e)(3): Pub. L. 104–188, § 1450(a)(2), inserted “or which is part of a salary reduction agreement under section 403(b)” after “section 401(k)(2))”. - § 402(e)(4)(D): Pub. L. 104–188, § 1401(b)(1), amended subpar. (D) generally. Prior to amendment, subpar. (D) read as follows: - § 402(e)(5): Pub. L. 104–188, § 1401(b)(13), struck out par. (5) which read as follows: - § 402(g)(3)(A): Pub. L. 104–188, § 1704(t)(68), substituted “subsection (e)(3)” for “subsection (a)(8)”. - § 402(g)(3)(D): Pub. L. 104–188, § 1421(b)(9)(B), added subpar. (D). - § 402(k): Pub. L. 104–188, § 1421(b)(3)(A), added subsec. (k). ## § 403: Taxation of employee annuities - § 403(b)(1)(E): Pub. L. 104–188, § 1450(c)(1), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “in the case of a contract purchased under a plan which provides a salary reduction agreement, the plan meets the requirements of section 401(a)(30),”. - § 403(b)(10): Pub. L. 104–188, § 1704(t)(69), substituted “a direct” for “an direct” in last sentence. ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(a)(2): Pub. L. 104–188, § 1704(t)(76), struck out “(18),” after “(17),”. - § 404(a)(9)(C): Pub. L. 104–188, § 1316(d)(1), added subpar. (C) relating to S corporations. - § 404(a)(10): Pub. L. 104–188, § 1461(b), added par. (10). - § 404(j)(1): Pub. L. 104–188, § 1704(q)(1), substituted “(9)” for “(10)” in introductory provisions. - § 404(k)(1): Pub. L. 104–188, § 1316(d)(2), substituted “a C corporation” for “a corporation”. - § 404(l): Pub. L. 104–188, § 1431(b)(3), struck out at end “In determining the compensation of an employee, the rules of section 414(q)(6) shall apply, except that in applying such rules, the term ‘family’ shall include only the spouse of the employee and any lineal descendants of the employee who have not attained age 19 before the close of the year.” - § 404(m): Pub. L. 104–188, § 1421(b)(2), added subsec. (m). ## § 406: Employees of foreign affiliates covered by section 3121(l) agreements - § 406(c): Pub. L. 104–188, § 1401(b)(7), struck out subsec. (c) which related to treatment of termination of status as deemed employee. - § 406(e)(2), § 406(e): Pub. L. 104–188, § 1402(b)(2), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “Section 101(b) (relating to employees’ death benefits).” ## § 407: Certain employees of domestic subsidiaries engaged in business outside the United States - § 407(c): Pub. L. 104–188, § 1401(b)(8), struck out subsec. (c) which related to treatment of termination of status as deemed employee. - § 407(e)(2), § 407(e): Pub. L. 104–188, § 1402(b)(2), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “Section 101(b) (relating to employees’ death benefits).” ## § 408: Individual retirement accounts - § 408(d)(3)(G): Pub. L. 104–188, § 1421(b)(3)(B), added subpar. (G). - § 408(d)(5)(A): Pub. L. 104–188, § 1427(b)(3), substituted “the dollar amount in effect under section 219(b)(1)(A)” for “$2,250” in introductory provisions. - § 408(i): Pub. L. 104–188, § 1455(b)(1), inserted “aggregating $10 or more in any calendar year” after “distributions” in introductory provisions. - § 408(i): Pub. L. 104–188, § 1421(b)(6), inserted at end “In the case of a simple retirement account under subsection (p), only one report under this subsection shall be required to be submitted each calendar year to the Secretary (at the time provided under paragraph (2)) but, in addition to the report under this subsection, there shall be furnished, within 30 days after each calendar year, to the individual on whose behalf the account is maintained a statement with respect to the account balance as of the close of, and the account activity during, such calendar year.” - § 408(k)(2)(C): Pub. L. 104–188, § 1431(c)(1)(B), substituted “section 414(q)(4)” for “section 414(q)(7)”. - § 408(k)(6)(H): Pub. L. 104–188, § 1421(c), added subpar. (H). - § 408(l): Pub. L. 104–188, § 1421(b)(5), designated existing provisions as par. (1), inserted heading, and added par. (2). - § 408(p), § 408(q): Pub. L. 104–188, § 1421(a), added subsec. (p) and redesignated former subsec. (p) as (q). ## § 411: Minimum vesting standards - § 411(a)(2): Pub. L. 104–188 substituted “subparagraph (A) or (B)” for “subparagraph (A), (B), or (C)” in introductory provisions and struck out subpar. (C) which read as follows: “Multiemployer plans.—A plan satisfies the requirements of this subparagraph if— ## § 414: Definitions and special rules - § 414(b), § 414(c): Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”. - § 414(e)(5): Pub. L. 104–188, § 1461(a), added par. (5). - § 414(m)(4)(B): Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”. - § 414(n)(2)(C): Pub. L. 104–188, § 1454(a), amended subpar. (C) generally. Prior to amendment, subpar. (C) read as follows: “such services are of a type historically performed, in the business field of the recipient, by employees.” - § 414(n)(3)(B): Pub. L. 104–188, § 1421(b)(9)(C), inserted “408(p),” after “408(k),”. - § 414(q)(1): Pub. L. 104–188, § 1431(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “In general.—The term ‘highly compensated employee’ means any employee who, during the year or the preceding year— - § 414(q)(2), § 414(q)(3): Pub. L. 104–188, § 1431(c)(1)(A), redesignated pars. (3) and (4) as (2) and (3), respectively, and struck out former par. (2) which read as follows: “Special rule for current year.—In the case of the year for which the relevant determination is being made, an employee not described in subparagraph (B), (C), or (D) of paragraph (1) for the preceding year (without regard to this paragraph) shall not be treated as described in subparagraph (B), (C), or (D) of paragraph (1) unless such employee is a member of the group consisting of the 100 employees paid the greatest compensation during the year for which such determination is being made.” - § 414(q)(4): Pub. L. 104–188, § 1434(b)(1), amended heading and text of par. (4) generally. Prior to amendment, text read as follows: “For purposes of this subsection— - § 414(q)(4): Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (7) as (4). - § 414(q)(5): Pub. L. 104–188, § 1434(c)(1)(E), as amended by Pub. L. 105–206, § 6018(c), struck out “under paragraph (4) or the number of officers taken into account under paragraph (5)” after “top-paid group” in introductory provisions. - § 414(q)(5): Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (8) as (5) and struck out former par. (5) which read as follows: “Special rules for treatment of officers.— - § 414(q)(6): Pub. L. 104–188, § 1431(b)(1), (c)(1)(A), redesignated par. (9) as (6) and struck out former par. (6) which related to treatment of families of 5-percent owners or of highly compensated employees. - § 414(q)(7): Pub. L. 104–188, § 1462(a), added par. (7) relating to certain employees not considered highly compensated and excluded employees under pre-ERISA rules for church plans. - § 414(q)(7): Pub. L. 104–188, § 1431(c)(1)(A), redesignated par. (10), relating to coordination with other provisions, as (7). Former par. (7) redesignated (4). - § 414(q)(8), § 414(q)(9), § 414(q): Pub. L. 104–188, § 1431(c)(1)(A), redesignated pars. (8) to (11) as (5) to (8), respectively, and struck out par. (12) which related to simplified method for determining highly compensated employees. - § 414(r)(2)(A): Pub. L. 104–188, § 1431(c)(1)(D), substituted “subsection (q)(5)” for “subsection (q)(8)”. - § 414(s)(2): Pub. L. 104–188, § 1434(b)(2), inserted “not” after “elect” in heading and in text. - § 414(u): Pub. L. 104–188, § 1704(n)(1), added subsec. (u). ## § 415: Limitations on benefits and contribution under qualified plans - § 415(a)(1): Pub. L. 104–188, § 1452(c)(1), inserted “or” at end of subpar. (A), struck out “, or” at end of subpar. (B), and struck out subpar. (C) which read as follows: “in any case in which an individual is a participant in both a defined benefit plan and a defined contribution plan maintained by the employer, the trust has been disqualified under subsection (g).” - § 415(b)(2)(E)(i): Pub. L. 104–188, § 1449(b)(1), substituted “For purposes of adjusting any limitation under subparagraph (C) and, except as provided in clause (ii), for purposes of adjusting any benefit under subparagraph (B),” for “Except as provided in clause (ii), for purposes of adjusting any benefit or limitation under subparagraph (B) or (C),”. - § 415(b)(2)(E)(ii): Pub. L. 104–188, § 1449(b)(2), substituted “For purposes of adjusting any benefit under subparagraph (B) for any form of benefit subject to section 417(e)(3),” for “For purposes of adjusting the benefit or limitation of any form of benefit subject to section 417(e)(3),”. - § 415(b)(2)(I): Pub. L. 104–188, § 1444(c), added subpar. (I). - § 415(b)(5)(B): Pub. L. 104–188, § 1452(c)(2), struck out “and subsection (e)” after “and (4)”. - § 415(b)(10)(C): Pub. L. 104–188, § 1444(d), designated existing provisions as cl. (i), inserted heading, and added cl. (ii). - § 415(b)(11): Pub. L. 104–188, § 1444(a), added par. (11). - § 415(c)(3)(C): Pub. L. 104–188, § 1446(a), inserted at end “If a defined contribution plan provides for the continuation of contributions on behalf of all participants described in clause (i) for a fixed or determinable period, this subparagraph shall be applied without regard to clauses (ii) and (iii).” - § 415(c)(3)(D): Pub. L. 104–188, § 1434(a), added subpar. (D). - § 415(e): Pub. L. 104–188, § 1452(a), struck out subsec. (e) which related to limitation in case of a defined benefit plan and a defined contribution plan for same employee. - § 415(f)(1): Pub. L. 104–188, § 1452(c)(3), in introductory provisions, substituted “subsections (b) and (c)” for “subsections (b), (c), and (e)”. - § 415(g): Pub. L. 104–188, § 1452(c)(4), in last sentence, substituted “subsection (f)” for “subsections (e) and (f)”. - § 415(k)(1)(C), § 415(k)(1)(D), § 415(k)(1): Pub. L. 104–188, § 1704(t)(75), inserted “or” at end of subpar. (C), redesignated subpar. (F) as (D), and struck out former subpars. (D) and (E) which read as follows: - § 415(k)(2)(A)(i): Pub. L. 104–188, § 1452(c)(5), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “any contribution made directly by an employee under such arrangement— - § 415(k)(2)(A)(ii): Pub. L. 104–188, § 1452(c)(6), substituted “subsection (c)” for “subsections (c) and (e)” before “shall not again”. - § 415(m): Pub. L. 104–188, § 1444(b)(1), added subsec. (m). ## § 416: Special rules for top-heavy plans - § 416(g)(4)(G): Pub. L. 104–188, § 1421(b)(7), added subpar. (G). - § 416(h): Pub. L. 104–188, § 1452(c)(7), struck out subsec. (h) which related to adjustments in section 415 limits for top-heavy plans. - § 416(i)(1)(A): Pub. L. 104–188, § 1431(c)(1)(C), substituted “section 414(q)(5)” for “section 414(q)(8)” in closing provisions. - § 416(i)(1)(D): Pub. L. 104–188, § 1431(c)(1)(B), substituted “section 414(q)(4)” for “section 414(q)(7)”. ## § 417: Definitions and special rules for purposes of minimum survivor annuity requirements - § 417(a)(7): Pub. L. 104–188 added par. (7). ## § 419A: Qualified asset account; limitation on additions to account - § 419A(c)(3): Pub. L. 104–188 substituted “severance” for “severence” in heading. ## § 420: Transfers of excess pension assets to retiree health accounts - § 420: Pub. L. 104–188, § 1704(a), provided that, except as otherwise expressly provided, whenever in title XII of Pub. L. 101–508 an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. Section 12011(a) of title XII of Pub. L. 101–508 directed the amendment of part I of subchapter D of chapter 1 by adding this subpart, including this section, without specifying that amendment was to the Internal Revenue Code of 1986. - § 420(e)(1)(C): Pub. L. 104–188, § 1704(t)(32), substituted “means” for “mean”. ## § 424: Definitions and special rules - § 424(c)(3)(B): Pub. L. 104–188 substituted “an incentive stock option or an option granted under an employee stock purchase plan” for “a qualified stock option, an incentive stock option, an option granted under an employee stock purchase plan, or a restricted stock option”. ## § 457: Deferred compensation plans of State and local governments and tax-exempt organizations - § 457(b)(6): Pub. L. 104–188, § 1448(b), inserted “except as provided in subsection (g),” before “which provides that” in introductory provisions. - § 457(c): Pub. L. 104–188, § 1421(b)(3)(C), substituted “section 402(h)(1)(B) or (k)” for “section 402(h)(1)(B)”. - § 457(e)(9): Pub. L. 104–188, § 1447(a), amended par. (9) generally. Prior to amendment, par. (9) read as follows: “Benefits not treated as made available by reason of certain elections.—If— - § 457(e)(11): Pub. L. 104–188, § 1458(a), amended par. (11) generally. Prior to amendment, par. (11) read as follows: “Certain plans excepted.—Any bona fide vacation leave, sick leave, compensatory time, severance pay, disability pay, or death benefit plan shall be treated as a plan not providing for the deferral of compensation.” - § 457(e)(14): Pub. L. 104–188, § 1444(b)(2), added par. (14). - § 457(e)(15): Pub. L. 104–188, § 1447(b), added par. (15). - § 457(f)(2)(E): Pub. L. 104–188, § 1444(b)(3), added subpar. (E). - § 457(g): Pub. L. 104–188, § 1448(a), added subsec. (g). ## § 460: Special rules for long-term contracts - § 460(b)(1): Pub. L. 104–188, § 1704(t)(28), which directed that par. (1) be amended by substituting “the look-back method of paragraph (2)” for “the look-back method of paragraph (3)”, could not be executed, because that phrase does not appear in text. See 1989 Amendment note below. - § 460(e): Pub. L. 104–188, § 1702(h)(15), 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. 104–188, § 1704(t)(78), substituted “section 6662(d)(2)(C)(iii)” for “section 6662(d)(2)(C)(ii)”. - § 461(i)(3)(C): Pub. L. 104–188, § 1704(t)(24), amended directory language of Pub. L. 101–239. See 1989 Amendment note below. ## § 468A: Special rules for nuclear decommissioning costs - § 468A(e)(2)(A): Pub. L. 104–188 provided that the amendment made by section 1917(b)(1) of Pub. L. 102–486 shall be applied as if “at a rate” appeared instead of “at the rate” in the material proposed to be stricken. See 1992 Amendment note below. ## § 469: Passive activity losses and credits limited - § 469(c)(3)(B): Pub. L. 104–188, § 1704(d)(1), inserted at end “If the preceding sentence applies to the net income from any property for any taxable year, any credits allowable under subpart B (other than section 27(a)) or D of part IV of subchapter A for such taxable year which are attributable to such property shall be treated as credits not from a passive activity to the extent the amount of such credits does not exceed the regular tax liability of the taxpayer for the taxable year which is allocable to such net income.” - § 469(g)(1)(A): Pub. L. 104–188, § 1704(e)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “If all gain or loss realized on such disposition is recognized, the excess of— - § 469(i)(3)(E)(ii): Pub. L. 104–188, § 1807(c)(4), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the amount excludable from gross income under section 135,”. ## § 501: Exemption from tax on corporations, certain trusts, etc. - § 501(c)(21)(D)(ii)(III): Pub. L. 104–188, § 1704(j)(5), substituted “section 101(7)” for “section 101(6)” and “1752(7)” for “1752(6)”. - § 501(n), § 501(o): Pub. L. 104–188, § 1114(a), added subsec. (n) and redesignated former subsec. (n) as (o). ## § 512: Unrelated business taxable income - § 512(b)(17): Pub. L. 104–188, § 1603(a), added par. (17). - § 512(d): Pub. L. 104–188, § 1115(a), added subsec. (d). - § 512(e): Pub. L. 104–188, § 1316(c), added subsec. (e). ## § 529: Qualified tuition programs - Enacted 26 U.S.C. § 529. ## § 537: Reasonable needs of the business - § 537(b)(4): Pub. L. 104–188 substituted “section 172(f)” for “section 172(i)”. ## § 543: Personal holding company income - § 543(a)(2)(B)(ii): Pub. L. 104–188 substituted “563(d)” for “563(c)”. ## § 582: Bad debts, losses, and gains with respect to securities held by financial institutions - § 582(c)(1): Pub. L. 104–188 inserted “, and any regular interest in a FASIT,” after “REMIC”. ## § 584: Common trust funds - § 584(h), § 584(i): Pub. L. 104–188 added subsec. (h) and redesignated former subsec. (h) as (i). ## § 585: Reserves for losses on loans of banks - § 585(a)(2)(A): Pub. L. 104–188 struck out “other than an organization to which section 593 applies” after “section 581)”. ## § 593: Reserves for losses on loans - § 593(b)(1)(A), § 593(b)(3): Pub. L. 104–188, § 1704(t)(51), provided that the amendment made by section 11801(c)(12)(F) of Pub. L. 101–508 shall be applied as if “and (3)” appeared instead of “and (E)”. See 1990 Amendment note below. - § 593(e)(1): Pub. L. 104–188, § 1616(b)(7)(A), substituted “by a taxpayer having a balance described in subsection (g)(2)(A)(ii)” for “by a domestic building and loan association or an institution that is treated as a mutual savings bank under section 591(b)” in introductory provisions. - § 593(e)(1): Pub. L. 104–188, § 1616(b)(7)(C)–(E), in closing provisions, substituted “a taxpayer having a balance described in subsection (g)(2)(A)(ii)” for “the association or an institution that is treated as a mutual savings bank under section 591(b)” after “complete liquidation of” and for “an association” after “an interest in” and inserted at end “This paragraph shall not apply to any distribution of all of the stock of a bank (as defined in section 581) to another corporation if, immediately after the distribution, such bank and such other corporation are members of the same affiliated group (as defined in section 1504) and the provisions of section 5(e) of the Federal Deposit Insurance Act (as in effect on December 31, 1995) or similar provisions are in effect.” - § 593(e)(1)(B): Pub. L. 104–188, § 1616(b)(7)(B), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “then out of the reserve for losses on qualifying real property loans, to the extent additions to such reserve exceed the additions which would have been allowed under subsection (b)(3),”. - § 593(f), § 593(g): Pub. L. 104–188, § 1616(a), added subsecs. (f) and (g). ## § 613: Percentage depletion - § 613(e)(1)(B): Pub. L. 104–188 substituted “subsection (b).” for “subsection (b),”. ## § 613A: Limitations on percentage depletion in case of oil and gas wells - § 613A(c)(3)(A)(i): Pub. L. 104–188 struck out “the table contained in” before “subparagraph (B)”. ## § 641: Imposition of tax - § 641: Pub. L. 104–188 added subsec. (d). ## § 642: Special rules for credits and deductions - § 642(g): Pub. L. 104–188 substituted “under section 2621(a)(2)” for “under 2621(a)(2)”. ## § 643: Definitions applicable to subparts A, B, C, and D - § 643(a)(7): Pub. L. 104–188, § 1906(b), added par. (7). - § 643(h): Pub. L. 104–188, § 1904(c)(1), added subsec. (h). - § 643(i): Pub. L. 104–188, § 1906(c)(1), added subsec. (i). ## § 665: Definitions applicable to subpart D - § 665(c): Pub. L. 104–188, § 1904(c)(2), struck out subsec. (c) which read as follows: “Special Rule Applicable to Distributions by Certain Foreign Trusts.—For purposes of this subpart, any amount paid to a United States person which is from a payor who is not a United States person and which is derived directly or indirectly from a foreign trust created by a United States person shall be deemed in the year of payment to have been directly paid by the foreign trust.” - § 665(d)(2): Pub. L. 104–188, § 1904(b)(1), inserted at end “Under rules or regulations prescribed by the Secretary, in the case of any foreign trust of which the settlor or another person would be treated as owner of any portion of the trust under subpart E but for section 672(f), the term ‘taxes imposed on the trust’ includes the allocable amount of any income, war profits, and excess profits taxes imposed by any foreign country or possession of the United States on the settlor or such other person in respect of trust income.” ## § 668: Interest charge on accumulation distributions from foreign trusts - § 668(a): Pub. L. 104–188 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of the tax determined under section 667(a), the interest charge is an amount equal to 6 percent of the partial tax computed under section 667(b) multiplied by a fraction— ## § 672: Definitions and rules - § 672(c): Pub. L. 104–188, § 1904(a)(2), inserted “subsection (f) and” before “sections 674” in closing provisions. - § 672(f): Pub. L. 104–188, § 1904(a)(1), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “Special Rule Where Grantor is Foreign Person.— ## § 679: Foreign trusts having one or more United States beneficiaries - § 679(a)(1): Pub. L. 104–188, § 1903(b), which directed that subsec. (a) of this section be amended by substituting “section 6048(a)(3)(B)(ii)” for “section 404(a)(4) or 404A”, was executed to par. (1) by making the substitution for “section 404(a)(4) Or section 404A” to reflect the probable intent of Congress. See 1998 Amendment note above. - § 679(a)(2)(B): Pub. L. 104–188, § 1903(a)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “Transfers where gain is recognized to transferor.—To any sale or exchange of the property at its fair market value in a transaction in which all of the gain to the transferor is realized at the time of the transfer and is recognized either at such time or is returned as provided in section 453.” - § 679(a)(3): Pub. L. 104–188, § 1903(a)(2), added par. (3). - § 679(a)(4), § 679(a)(5): Pub. L. 104–188, § 1903(c), added pars. (4) and (5). - § 679(c)(2)(A): Pub. L. 104–188, § 1903(e), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “in the case of a foreign corporation, more than 50 percent of the total combined voting power of all classes of stock entitled to vote of such corporation is owned (within the meaning of section 958(a)) or is considered to be owned (within the meaning of section 958(b)) by United States shareholders (as defined in section 951(b)),”. - § 679(c)(3): Pub. L. 104–188, § 1903(d), added par. (3). - § 679(d): Pub. L. 104–188, § 1903(f), added subsec. (d). ## § 691: Recipients of income in respect of decedents - § 691(c): Pub. L. 104–188, § 1704(t)(73), provided that section 521(b)(27) of Pub. L. 102–318 shall be applied as if “Section 691(c)(5)” appeared instead of “Section 691(c)”. See 1992 Amendment note below. - § 691(c): Pub. L. 104–188, § 1401(b)(9), struck out par. (5) which read as follows: ## § 724: Character of gain or loss on contributed unrealized receivables, inventory items, and capital loss property - § 724(d)(3)(B): Pub. L. 104–188 substituted “Subparagraph” for “Subparagaph”. ## § 737: Recognition of precontribution gain in case of certain distributions to contributing partner - § 737: Pub. L. 104–188 provided that section 1937(a) of Pub. L. 102–486, shall be applied as if “Subpart B” appeared instead of “Subpart C”. Section 1937(a) of Pub. L. 102–486 directed amendment of subpart C of this part by adding this section at the end thereof. ## § 805: General deductions - § 805(a)(4)(E): Pub. L. 104–188 substituted “243(b)(2)” for “243(b)(5)”. ## § 807: Rules for certain reserves - § 807(d)(3)(B)(ii): Pub. L. 104–188 substituted “Commissioners’ Annuities” for “Commissoners’ Annuities”. ## § 812: Definition of company’s share and policyholder’s share - § 812: Pub. L. 104–188 struck out subsec. (g) which read as follows: “Treatment of Interest Partially Tax-Exempt Under Section 133.—For purposes of this section and subsections (a) and (b) of section 807, the terms ‘gross investment income’ and ‘tax-exempt interest’ shall not include any interest received with respect to a securities acquisition loan (as defined in section 133(b)). Such interest shall not be included in life insurance gross income for purposes of subsection (b)(3).” ## § 817: Treatment of variable contracts - § 817(d)(2)(C): Pub. L. 104–188, § 1611(a)(1), added subpar. (C). - § 817(d)(3)(C): Pub. L. 104–188, § 1611(a)(2), added subpar. (C). ## § 817A: Special rules for modified guaranteed contracts - Enacted 26 U.S.C. § 817A. ## § 832: Insurance company taxable income - § 832(b)(5)(C)(ii)(II), § 832(b)(5)(C)(ii): Pub. L. 104–188, § 1702(h)(3), substituted “243(b)(2)” for “243(b)(5)”. - § 832(b)(7)(A): Pub. L. 104–188, § 1704(t)(45), provided that section 11303(b)(1) of Pub. L. 101–508 shall be applied as if “paragraph” appeared instead of “subparagraph” in the material proposed to be stricken. See 1990 Amendment note below. ## § 852: Taxation of regulated investment companies and their shareholders - § 852(b)(5): Pub. L. 104–188 struck out subpar. (C). Prior to amendment, subpar. (C) read as follows: ## § 856: Definition of real estate investment trust - § 856(a)(4): Pub. L. 104–188, § 1704(t)(35), substituted “section 582(c)(2)” for “section 582(c)(5)”. - § 856(c)(6): Pub. L. 104–188, § 1621(b)(5), inserted at end “The principles of the preceding provisions of this subparagraph shall apply to regular interests in a FASIT.” ## § 860E: Treatment of income in excess of daily accruals on residual interests - § 860E(a)(1): Pub. L. 104–188, § 1616(b)(10)(A), substituted “The” for “Except as provided in paragraph (2), the”. - § 860E(a)(2): Pub. L. 104–188, § 1616(b)(10)(B), (C), redesignated par. (3) as (2), struck out “, except that paragraph (2) shall be applied separately with respect to each corporation which is a member of such group and to which section 593 applies” after “of this subsection”, and struck out former par. (2) which read as follows: “Exception for certain financial institutions.—Paragraph (1) shall not apply to any organization to which section 593 applies. The Secretary may by regulations provide that the preceding sentence shall not apply where necessary or appropriate to prevent avoidance of tax imposed by this chapter.” - § 860E(a)(3): Pub. L. 104–188, § 1616(b)(10)(B), redesignated par. (5) as (3). Former par. (3) redesignated (2). - § 860E(a)(4): Pub. L. 104–188, § 1616(b)(10)(B), (D), redesignated par. (6) as (4), struck out at end “The preceding sentence shall not apply to any organization to which section 593 applies, except to the extent provided in regulations prescribed by the Secretary under paragraph (2).”, and struck out former par. (4) which related to certain subsidiaries being treated as single corporations to which section 593 applied. - § 860E(a): Pub. L. 104–188, § 1616(b)(10)(B), redesignated par. (5) as (3). - § 860E(a): Pub. L. 104–188, § 1616(b)(10)(B), redesignated par. (6) as (4). - § 860E(a): Pub. L. 104–188, § 1704(h)(1), added par. (6). ## § 860F: Other rules - § 860F(a)(5): Pub. L. 104–188 substituted “paragraph (2)” for “paragraph (1)” in introductory provisions. ## § 860G: Other definitions and special rules - § 860G(a)(3): Pub. L. 104–188 added subpar. (D). ## § 861: Income from sources within the United States - § 861(e): Pub. L. 104–188 provided that the amendment made by section 11813(b)(17) of Pub. L. 101–508 shall be applied as if the material stricken by such amendment included the closing parenthesis after “section 48(a)(5)”. See 1990 Amendment note below. ## § 865: Source rules for personal property sales - § 865(b)(2): Pub. L. 104–188 substituted “863” for “863(b)”. ## § 871: Tax on nonresident alien individuals - § 871(b)(1): Pub. L. 104–188, § 1401(b)(10), substituted “section 1 or 55” for “section 1, 55, or 402(d)(1)”. - § 871(f)(2)(B): Pub. L. 104–188, § 1954(b)(1), substituted “under title V” for “within the meaning of section 502”. ## § 877: Expatriation to avoid tax - § 877(b): Pub. L. 104–188 substituted “section 1 or 55” for “section 1, 55, or 402(d)(1)”. ## § 884: Branch profits tax - § 884(f)(1): Pub. L. 104–188, § 1704(f)(3)(A)(ii), substituted “reasonably expected to be allocable interest” for “reasonably expected to be deductible under section 882 in computing the effectively connected taxable income of such foreign corporation” in closing provisions. - § 884(f)(1)(B): Pub. L. 104–188, § 1704(f)(3)(A)(i), substituted “to the extent that the allocable interest exceeds the interest described in subparagraph (A)” for “to the extent the amount of interest allowable as a deduction under section 882 in computing the effectively connected taxable income of such foreign corporation exceeds the interest described in subparagraph (A)”. - § 884(f)(2): Pub. L. 104–188, § 1704(f)(3)(A)(iii), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Effectively connected taxable income.—For purposes of this subsection, the term ‘effectively connected taxable income’ means taxable income which is effectively connected (or treated as effectively connected) with the conduct of a trade or business within the United States.” ## § 897: Disposition of investment in United States real property - § 897(f): Pub. L. 104–188 struck out subsec. (f) which read as follows: ## § 901: Taxes of foreign countries and of possessions of United States - § 901(b)(5): Pub. L. 104–188 inserted at end “Under rules or regulations prescribed by the Secretary, in the case of any foreign trust of which the settlor or another person would be treated as owner of any portion of the trust under subpart E but for section 672(f), the allocable amount of any income, war profits, and excess profits taxes imposed by any foreign country or possession of the United States on the settlor or such other person in respect of trust income.” ## § 904: Limitation on credit - § 904(d)(3)(G): Pub. L. 104–188, § 1501(b)(1), (12), amended subpar. (G) identically, substituting “section 951(a)(1)(B)” for “subparagraph (B) or (C) of section 951(a)(1)”. - § 904(d)(3)(G): Pub. L. 104–188, § 1703(i)(1), substituted “subparagraph (B) or (C) of section 951(a)(1)” for “section 951(a)(1)(B)”. - § 904(f)(2)(B)(i): Pub. L. 104–188, § 1704(t)(36), inserted “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “section 172(h)”. ## § 907: Special rules in case of foreign oil and gas income - § 907(c)(4)(B): Pub. L. 104–188 inserted “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “section 172(h)”. ## § 951: Amounts included in gross income of United States shareholders - § 951(a)(1)(A), § 951(a)(1)(B), § 951(a)(1): Pub. L. 104–188 inserted “and” at end of subpar. (A), substituted period for “; and” at end of subpar. (B), and struck out subpar. (C) which read as follows: “the amount determined under section 956A with respect to such shareholder for such year (but only to the extent not excluded from gross income under section 959(a)(3)).” ## § 954: Foreign base company income - § 954(c)(3)(A)(i): Pub. L. 104–188 amended directory language of Pub. L. 101–239, § 7811(i)(3)(A). See 1989 Amendment note below. ## § 956: Investment of earnings in United States property - § 956(b)(1): Pub. L. 104–188, § 1501(b)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘applicable earnings’ has the meaning given to such term by section 956A(b), except that the provisions of such section excluding earnings and profits accumulated in taxable years beginning before October 1, 1993, shall be disregarded.” - § 956(b)(3): Pub. L. 104–188, § 1501(b)(3), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of section 956A(e) shall apply for purposes of this section.” ## § 958: Rules for determining stock ownership - § 958(a)(1): Pub. L. 104–188, § 1704(t)(7), substituted “section 960(a)(1)” for “sections 955(b)(1)(A) and (B), 955(c)(2)(A)(ii), and 960(a)(1)” in introductory provisions. - § 958(b): Pub. L. 104–188, § 1703(i)(4), substituted “956(c)(2)” for “956(b)(2)” wherever appearing in introductory and closing provisions. ## § 959: Exclusion from gross income of previously taxed earnings and profits - § 959(a): Pub. L. 104–188, § 1501(b)(4), (5), substituted “paragraph (2)” for “paragraphs (2) and (3)” in closing provisions, inserted “or” at end of par. (1), struck out “or” at end of par. (2), and struck out par. (3) which read as follows: “such amounts would, but for this subsection, be included under section 951(a)(1)(C) in the gross income of,”. - § 959(c): Pub. L. 104–188, § 1501(b)(6), inserted at end “References in this subsection to section 951(a)(1)(C) and subsection (a)(3) shall be treated as references to such provisions as in effect on the day before the date of the enactment of the Small Business Job Protection Act of 1996.” - § 959(f)(1): Pub. L. 104–188, § 1501(b)(7), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “For purposes of this section— - § 959(f)(2): Pub. L. 104–188, § 1501(b)(8), substituted “section 951(a)(1)(B)” for “subparagraphs (B) and (C) of section 951(a)(1)”. ## § 989: Other definitions and special rules - § 989(b): Pub. L. 104–188 substituted “section 951(a)(1)(B)” for “subparagraph (B) or (C) of section 951(a)(1)” in closing provisions. ## § 992: Requirements of a domestic international sales corporation - § 992(d)(3): Pub. L. 104–188 struck out “or 593” after “section 581”. ## § 1016: Adjustments to basis - § 1016(a)(20): Pub. L. 104–188, § 1704(t)(56), provided that section 11813(b)(19) of Pub. L. 101–508 shall be applied as if “Paragraph (20) of section 1016(a), as redesignated by section 11801,” appeared instead of “paragraph (21) of section 1016(a)”. See 1990 Amendment note below. - § 1016(a)(26): Pub. L. 104–188, § 1807(c)(5), added par. (26). ## § 1017: Discharge of indebtedness - § 1017(b)(4)(A): Pub. L. 104–188 substituted “subsection (b)(2)(E)” for “subsection (b)(2)(D)”. ## § 1033: Involuntary conversions - § 1033(b): Pub. L. 104–188, § 1610(a), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “If the property was acquired, after February 28, 1913, as the result of a compulsory or involuntary conversion described in subsection (a)(1) or section 112(f)(2) of the Internal Revenue Code of 1939, the basis shall be the same as in the case of the property so converted, decreased in the amount of any money received by the taxpayer which was not expended in accordance with the provisions of law (applicable to the year in which such conversion was made) determining the taxable status of the gain or loss upon such conversion, and increased in the amount of gain or decreased in the amount of loss to the taxpayer recognized upon such conversion under the law applicable to the year in which such conversion was made. This subsection shall not apply in respect of property acquired as a result of a compulsory or involuntary conversion of property used by the taxpayer as his principal residence if the destruction, theft, seizure, requisition, or condemnation of such residence, or the sale or exchange of such residence under threat or imminence thereof, occurred after December 31, 1950, and before January 1, 1954. In the case of property purchased by the taxpayer in a transaction described in subsection (a)(3) which resulted in the nonrecognition of any part of the gain realized as the result of a compulsory or involuntary conversion, the basis shall be the cost of such property decreased in the amount of the gain not so recognized; and if the property purchased consists of more than one piece of property, the basis determined under this sentence shall be allocated to the purchased properties in proportion to their respective costs.” - § 1033(h): Pub. L. 104–188, § 1119(b)(2), substituted “property” for “principal residences” in heading. - § 1033(h)(1): Pub. L. 104–188, § 1119(b)(3), substituted “Principal residences” for “In general” in heading. - § 1033(h)(2): Pub. L. 104–188, § 1119(a), added par. (2). Former par. (2) redesignated (3). - § 1033(h)(3): Pub. L. 104–188, § 1119(a), (b)(1), redesignated par. (2) as (3) and substituted “property” for “residence” before “is located”. Former par. (3) redesignated (4). - § 1033(h)(4): Pub. L. 104–188, § 1119(a), redesignated par. (3) as (4). ## § 1038: Certain reacquisitions of real property - § 1038(f): Pub. L. 104–188 struck out subsec. (f) which read as follows: ## § 1042: Sales of stock to employee stock ownership plans or certain cooperatives - § 1042(c)(1)(A): Pub. L. 104–188, § 1316(d)(3), substituted “domestic C corporation” for “domestic corporation”. - § 1042(c)(1)(B)(ii): Pub. L. 104–188, § 1704(t)(50), provided that section 11801(c)(9)(H) of Pub. L. 101–508 shall be applied as if “section 1042(c)(1)(B)” appeared instead of “section 1042(c)(2)(B)”. See 1990 Amendment note below. - § 1042(c)(4)(A)(i): Pub. L. 104–188, § 1311(b)(3), substituted “section 1362(d)(3)(C)” for “section 1362(d)(3)(D)”. - § 1042(c)(4)(B)(ii)(I): Pub. L. 104–188, § 1616(b)(13), struck out “or 593” after “section 581”. ## § 1202: Partial exclusion for gain from certain small business stock - § 1202(e)(4)(C): Pub. L. 104–188 substituted “REMIC, or FASIT” for “or REMIC”. ## § 1237: Real property subdivided for sale - § 1237(a): Pub. L. 104–188, § 1314(a), substituted “other than a C corporation” for “other than a corporation” in introductory provisions. - § 1237(a)(2)(A): Pub. L. 104–188, § 1314(b), inserted “an S corporation which included the taxpayer as a shareholder,” after “controlled by the taxpayer,”. ## § 1245: Gain from dispositions of certain depreciable property - § 1245(a)(3): Pub. L. 104–188 reenacted heading without change and amended introductory provisions generally. Prior to amendment, introductory provisions read as follows: “For purposes of this section, the term ‘section 1245 property’ means any property which is or has been property of a character subject to the allowance for depreciation provided in section 167 (or subject to the allowance of amortization provided in)) and is either—”. ## § 1248: Gain from certain sales or exchanges of stock in certain foreign corporations - § 1248(a): Pub. L. 104–188, § 1702(g)(1)(A)(ii), in closing provisions inserted at end “For purposes of this section, a United States person shall be treated as having sold or exchanged any stock if, under any provision of this subtitle, such person is treated as realizing gain from the sale or exchange of such stock.” - § 1248(a)(1): Pub. L. 104–188, § 1702(g)(1)(A)(i), struck out “, or if a United States person receives a distribution from a foreign corporation which, under section 302 or 331, is treated as an exchange of stock” after “in a foreign corporation”. - § 1248(e)(1): Pub. L. 104–188, § 1702(g)(1)(B), struck out “, or receives a distribution from a domestic corporation which, under section 302 or 331, is treated as an exchange of stock” after “of a domestic corporation”. - § 1248(f)(1)(B): Pub. L. 104–188, § 1702(g)(1)(C), substituted “355(c)(1), or 361(c)(1)” for “or 361(c)(1)”. - § 1248(i)(1): Pub. L. 104–188, § 1702(g)(1)(D), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “If any shareholder of a 10-percent corporate shareholder of a foreign corporation exchanges stock of the 10-percent corporate shareholder for stock of the foreign corporation, for purposes of this section, the stock of the foreign corporation received in such exchange shall be treated as if it had been— ## § 1250: Gain from dispositions of certain depreciable realty - § 1250(e): Pub. L. 104–188 struck out par. (4) which read as follows: ## § 1253: Transfers of franchises, trademarks, and trade names - § 1253(d): Pub. L. 104–188 provided that section 11701(i) of Pub. L. 101–508 shall be applied as if “subsection” appeared instead of “section” in the material proposed to be stricken. See 1990 Amendment note below. ## § 1274: Determination of issue price in the case of certain debt instruments issued for property - § 1274(b)(3)(B)(i): Pub. L. 104–188 substituted “section 6662(d)(2)(C)(iii)” for “section 6662(d)(2)(C)(ii)”. ## § 1274A: Special rules for certain transactions where stated principal amount does not exceed $2,800,000 - § 1274A(c)(1)(B): Pub. L. 104–188 substituted “instrument” for “instument”. ## § 1277: Deferral of interest deduction allocable to accrued market discount - § 1277(c): Pub. L. 104–188 struck out “or to which section 593 applies” after “585(a)(2))” in closing provisions. ## § 1297: Passive foreign investment company - § 1297(b)(2)(D): Pub. L. 104–188 added subpar. (D). ## § 1298: Special rules - § 1298(b): Pub. L. 104–188, § 1501(b)(10), substituted “section 951(a)(1)(B)” for “subparagraph (B) or (C) of section 951(a)(1)”. - § 1298(d)(2): Pub. L. 104–188, § 1703(i)(5)(B), in heading substituted “Amount taken into account” for “Determination of adjusted basis”. - § 1298(d)(2)(A): Pub. L. 104–188, § 1703(i)(5)(A), substituted “The amount taken into account under section 1296(a)(2) with respect to any asset” for “The adjusted basis of any asset”. - § 1298(d)(3)(B): Pub. L. 104–188, § 1501(b)(11), struck out “or section 956A” after “this part”. - § 1298(e): Pub. L. 104–188, § 1703(i)(6), inserted “For purposes of this part—” after heading. - § 1298(e)(2)(B)(ii): Pub. L. 104–188, § 1501(b)(11), struck out “or section 956A” after “this part”. ## § 1361: S corporation defined - § 1361(b)(1)(A): Pub. L. 104–188, § 1301, substituted “75” for “35”. - § 1361(b)(1)(B): Pub. L. 104–188, § 1316(a)(1), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “have as a shareholder a person (other than an estate and other than a trust described in subsection (c)(2)) who is not an individual,”. - § 1361(b)(2)(A): Pub. L. 104–188, § 1315, amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “a financial institution to which section 585 applies (or would apply but for subsection (c) thereof),”. - § 1361(b)(2)(A): Pub. L. 104–188, § 1308(a), redesignated subpar. (B) as (A) and struck out former subpar. (A) which read as follows: “a member of an affiliated group (determined under section 1504 without regard to the exceptions contained in subsection (b) thereof),”. - § 1361(b)(2)(B): Pub. L. 104–188, § 1308(a), redesignated subpar. (C) as (B). Former subpar. (B) redesignated (A). - § 1361(b)(2)(B): Pub. L. 104–188, § 1616(b)(15), struck out “or to which section 593 applies” after “subsection (c) thereof)”. - § 1361(b)(2)(C), § 1361(b)(2): Pub. L. 104–188, § 1308(a), redesignated subpars. (D) and (E) as (C) and (D), respectively. Former subpar. (C) redesignated (B). - § 1361(b)(3): Pub. L. 104–188, § 1308(b), added par. (3). - § 1361(c)(2)(A)(ii): Pub. L. 104–188, § 1303, substituted “2-year period” for “60-day period” in first sentence and struck out at end “If a trust is described in the preceding sentence and if the entire corpus of the trust is includible in the gross estate of the deemed owner, the preceding sentence shall be applied by substituting ‘2-year period’ for ‘60-day period’.” - § 1361(c)(2)(A)(iii): Pub. L. 104–188, § 1303(1), substituted “2-year period” for “60-day period”. - § 1361(c)(2)(A)(v): Pub. L. 104–188, § 1302(a), added cl. (v). - § 1361(c)(2)(B)(v): Pub. L. 104–188, § 1302(b), added cl. (v). - § 1361(c)(5)(B)(iii): Pub. L. 104–188, § 1304, substituted “a trust described in paragraph (2), or a person which is actively and regularly engaged in the business of lending money” for “or a trust described in paragraph (2)”. - § 1361(c)(6): Pub. L. 104–188, § 1308(d)(1), struck out par. (6) which read as follows: - § 1361(c): Pub. L. 104–188, § 1316(a)(2), added par. (7). - § 1361(e): Pub. L. 104–188, § 1302(c), added subsec. (e). - § 1361(e)(1)(A)(i): Pub. L. 104–188, § 1316(e), struck out “which holds a contingent interest and is not a potential current beneficiary” after “170(c)”. ## § 1362: Election; revocation; termination - § 1362(b)(5): Pub. L. 104–188, § 1305(b), added par. (5). - § 1362(d)(3): Pub. L. 104–188, § 1311(b)(1)(A), in heading substituted “accumulated” for “subchapter C”. - § 1362(d)(3)(A)(i)(I): Pub. L. 104–188, § 1311(b)(1)(B), substituted “accumulated” for “subchapter C”. - § 1362(d)(3)(B), § 1362(d)(3)(C), § 1362(d)(3): Pub. L. 104–188, § 1311(b)(1)(C), redesignated subpars. (C) to (F) as (B) to (E), respectively, and struck out former subpar. (B) which read as follows: - § 1362(d)(3): Pub. L. 104–188, § 1311(b)(1)(C), redesignated subpar. (F) as (E). - § 1362(d)(3): Pub. L. 104–188, § 1308(c), added subpar. (F). - § 1362(f): Pub. L. 104–188, § 1305(a), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: ## § 1366: Pass-thru of items to shareholders - § 1366(a)(1): Pub. L. 104–188, § 1302(e), inserted “, or of a trust or estate which terminates,” after “who dies” in introductory provisions. - § 1366(d)(1)(A): Pub. L. 104–188, § 1309(a)(1), substituted “paragraphs (1) and (2)(A)” for “paragraph (1)”. - § 1366(d)(3)(D): Pub. L. 104–188, § 1312, added subpar. (D). - § 1366: Pub. L. 104–188, § 1307(c)(3)(A), struck out subsec. (g) which provided a cross reference to subchapter D of chapter 63 of this title. ## § 1367: Adjustments to basis of stock of shareholders, etc. - § 1367(a)(2)(E): Pub. L. 104–188, § 1702(h)(14), substituted “section 613A(c)(11)(B)” for “section 613A(c)(13)(B)”. - § 1367(b)(4): Pub. L. 104–188, § 1313(a), added par. (4). ## § 1368: Distributions - § 1368(d): Pub. L. 104–188, § 1309(a)(2), inserted at end “In the case of any distribution made during any taxable year, the adjusted basis of the stock shall be determined with regard to the adjustments provided in paragraph (1) of section 1367(a) for the taxable year.” - § 1368(e)(1)(A): Pub. L. 104–188, § 1309(c), substituted “as otherwise provided in this paragraph” for “as provided in subparagraph (B)” and “section 1367(a)(2)” for “section 1367(b)(2)(A)”. - § 1368(e)(1)(C): Pub. L. 104–188, § 1309(b), added subpar. (C). ## § 1371: Coordination with subchapter C - § 1371(a): Pub. L. 104–188 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: ## § 1375: Tax imposed when passive investment income of corporation having accumulated earnings and profits exceeds 25 percent of gross receipts - § 1375: Pub. L. 104–188, § 1311(b)(2)(C), substituted “accumulated” for “subchapter C” in section catchline. - § 1375(a)(1): Pub. L. 104–188, § 1311(b)(2)(A), substituted “accumulated” for “subchapter C”. - § 1375(b)(3): Pub. L. 104–188, § 1311(b)(2)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: ## § 1377: Definitions and special rule - § 1377(a)(2): Pub. L. 104–188, § 1306, reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Under regulations prescribed by the Secretary, if any shareholder terminates his interest in the corporation during the taxable year and all persons who are shareholders during the taxable year agree to the application of this paragraph, paragraph (1) shall be applied as if the taxable year consisted of 2 taxable years the first of which ends on the date of the termination.” - § 1377(b)(1)(A), § 1377(b)(1)(B), § 1377(b)(1)(C): Pub. L. 104–188, § 1307(a), struck out “and” at end of subpar. (A)(ii), added subpar. (B), and redesignated former subpar. (B) as (C). - § 1377(b)(2)(A), § 1377(b)(2)(B), § 1377(b)(2): Pub. L. 104–188, § 1307(b), added subpar. (A), redesignated subpar. (C) as (B), and struck out former subpars. (A) and (B) which read as follows: ## § 1394: Tax-exempt enterprise zone facility bonds - § 1394(e)(2): Pub. L. 104–188, which directed that par. (2) be amended by striking “(i)” and inserting “(A)” and by striking “(ii)” and inserting “(B)”, could not be executed, because par. (2) contained neither “(i)” nor “(ii)”. ## § 1396: Empowerment zone employment credit - § 1396(c)(3): Pub. L. 104–188 substituted “work opportunity credit” for “targeted jobs credit” in heading. ## § 1397C: Enterprise zone business defined - § 1397C(d)(5)(B): Pub. L. 104–188 struck out “preceding” before “taxable year” in introductory provisions. ## § 1402: Definitions - § 1402(a)(8): Pub. L. 104–188 inserted before semicolon at end “, but shall not include in such net earnings from self-employment the rental value of any parsonage or any parsonage allowance (whether or not excludable under section 107) provided after the individual retires, or any other retirement benefit received by such individual from a church plan (as defined in section 414(e)) after the individual retires”. ## § 1445: Withholding of tax on dispositions of United States real property interests - § 1445(e)(3): Pub. L. 104–188 inserted at end “Rules similar to the rules of the preceding provisions of this paragraph shall apply in the case of any distribution to which section 301 applies and which is not made out of the earnings and profits of such a domestic corporation.” ## § 1463: Tax paid by recipient of income - § 1463: Pub. L. 104–188 substituted “this section” for “this subsection”. ## § 1504: Definitions - § 1504(b): Pub. L. 104–188, § 1308(d)(2), added par. (8). - § 1504(c)(2)(B)(i): Pub. L. 104–188, § 1702(h)(6), inserted “section” before “243(b)(2)”. ## § 1561: Limitation on accumulated earnings credit in the case of certain controlled corporations - § 1561(a): Pub. L. 104–188 in closing provisions substituted “last 2 sentences” for “last sentence” in two places. ## § 2102: Credits against tax - § 2102: Pub. L. 104–188 inserted at end “For purposes of the preceding sentence, property shall not be treated as situated in the United States if such property is exempt from the tax imposed by this subchapter under any treaty obligation of the United States.” ## § 2104: Property within the United States - § 2104(c): Pub. L. 104–188 substituted “section 861(a)(1)(A)” for “subparagraph (A), (C), or (D) of section 861(a)(1)” in concluding provisions. ## § 2701: Special valuation rules in case of transfers of certain interests in corporations or partnerships - § 2701(a)(3)(B): Pub. L. 104–188, § 1702(f)(1)(B), inserted “certain” before “qualified” in heading. - § 2701(a)(3)(C): Pub. L. 104–188, § 1702(f)(1)(A), added subpar. (C). - § 2701(a)(4)(B)(i): Pub. L. 104–188, § 1702(f)(2), inserted “(or, to the extent provided in regulations, the rights as to either income or capital)” after “income and capital”. - § 2701(b)(2)(C): Pub. L. 104–188, § 1702(f)(3)(A), added subpar. (C). - § 2701(c)(1)(B)(i): Pub. L. 104–188, § 1702(f)(4), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “a right to distributions with respect to any junior equity interest (as defined in subsection (a)(4)(B)(i)),”. - § 2701(c)(3)(C)(i): Pub. L. 104–188, § 1702(f)(5)(A), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: - § 2701(c)(3)(C)(ii): Pub. L. 104–188, § 1702(f)(5)(B), amended first sentence generally. Prior to amendment, first sentence read as follows: “A transferor or any applicable family member may elect to treat any distribution right as a qualified payment, to be paid in the amounts and at the times specified in such election.” - § 2701(d)(1): Pub. L. 104–188, § 1702(f)(1)(C), substituted “subsection (a)(3)(B) or (C)” for “subsection (a)(3)(B)”. - § 2701(d)(3)(A)(iii): Pub. L. 104–188, § 1702(f)(6), struck out “the period ending on the date of” after “with respect to”. - § 2701(d)(3)(B)(ii)(I): Pub. L. 104–188, § 1702(f)(7), inserted “or the exclusion under section 2503(b),” after “section 2523,”. - § 2701(d)(4)(A): Pub. L. 104–188, § 1702(f)(1)(C), substituted “subsection (a)(3)(B) or (C)” for “subsection (a)(3)(B)”. - § 2701(d)(4)(C): Pub. L. 104–188, § 1702(f)(9), added subpar. (C). - § 2701(e)(3): Pub. L. 104–188, § 1702(f)(3)(B), substituted “Attribution of indirect holdings and transfers” for “Attribution rules” in par. heading, struck out subpar. (A) designation and heading which read “Indirect holdings and transfers”, and struck out subpar. (B) which read as follows: - § 2701(e)(5)(A): Pub. L. 104–188, § 1702(f)(8)(A), substituted “such transaction” for “such contribution to capital or such redemption, recapitalization, or other change”. - § 2701(e)(5)(B): Pub. L. 104–188, § 1702(f)(8)(B), substituted “such transaction” for “the transfer”. - § 2701(e)(6): Pub. L. 104–188, § 1702(f)(10), inserted “or to reflect the application of subsection (d)” before period at end. ## § 2702: Special valuation rules in case of transfers of interests in trusts - § 2702(a)(3)(A)(i): Pub. L. 104–188, § 1702(f)(11)(A)(i), (ii), (B)(i), substituted “if” for “to the extent” and “incomplete gift” for “incomplete transfer”, and struck out “or” at end. - § 2702(a)(3)(A)(ii): Pub. L. 104–188, § 1702(f)(11)(A)(iii), substituted “, or” for period at end. - § 2702(a)(3)(A)(iii): Pub. L. 104–188, § 1702(f)(11)(A)(iv), added cl. (iii). - § 2702(a)(3)(B): Pub. L. 104–188, § 1702(f)(11)(B), substituted “incomplete gift” for “incomplete transfer” in heading and text. ## § 2704: Treatment of certain lapsing rights and restrictions - § 2704(c)(3): Pub. L. 104–188 substituted “section 2701(e)(3)” for “section 2701(e)(3)(A)”. ## § 3121: Definitions - § 3121(a)(5)(F): Pub. L. 104–188, § 1421(b)(8)(A), struck out “or” at end. - § 3121(a)(5)(G): Pub. L. 104–188, § 1458(b)(1), which directed that subpar. (G) be amended by striking “(or)” at the end, could not be executed because “(or)” did not appear. - § 3121(a)(5)(G): Pub. L. 104–188, § 1421(b)(8)(A), inserted “or” at end. - § 3121(a)(5)(H): Pub. L. 104–188, § 1458(b)(1), inserted “or” at end. - § 3121(a)(5)(H): Pub. L. 104–188, § 1421(b)(8)(A), added subpar. (H). - § 3121(a)(5)(I): Pub. L. 104–188, § 1458(b)(1), added subpar. (I). - § 3121(b): Pub. L. 104–188, § 1116(a)(1)(A), inserted closing provisions “For purposes of paragraph (20), the operating crew of a boat shall be treated as normally made up of fewer than 10 individuals if the average size of the operating crew on trips made during the preceding 4 calendar quarters consisted of fewer than 10 individuals.” - § 3121(b)(20)(A): Pub. L. 104–188, § 1116(a)(1)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “such individual does not receive any cash remuneration (other than as provided in subparagraph (B)),”. ## § 3306: Definitions - § 3306(b)(5)(H): Pub. L. 104–188, § 1421(b)(8)(C), added subpar. (H). - § 3306(c)(1)(B): Pub. L. 104–188, § 1203(a), struck out “before January 1, 1995,” after “labor performed”. - § 3306(k): Pub. L. 104–188, § 1704(t)(10), inserted a period at end. ## § 3401: Definitions - § 3401(a)(1): Pub. L. 104–188, § 1704(t)(4)(C), substituted “combat zone compensation” for “combat pay”. - § 3401(a)(12)(D): Pub. L. 104–188, § 1421(b)(8)(D), added subpar. (D). ## § 3405: Special rules for pensions, annuities, and certain other deferred income - § 3405(e)(12): Pub. L. 104–188 substituted “(b)(2)” for “(b)(3)” in closing provisions. ## § 3508: Treatment of real estate agents and direct­ sellers - § 3508(b)(2)(A): Pub. L. 104–188 added cl. (iii). ## § 4041: Imposition of tax - § 4041(a)(1): Pub. L. 104–188, § 1208, added cl. (i) and redesignated former cls. (i) and (ii) as (ii) and (iii), respectively. - § 4041(c)(2): Pub. L. 104–188, § 1609(g)(3)(A), redesignated par. (4) as (2) and struck out former par. (2) which read as follows: - § 4041(c)(3): Pub. L. 104–188, § 1609(g)(3), redesignated par. (5) as (3) and substituted “paragraph (1)” for “paragraphs (1) and (2)”, and struck out former par. (3) which read as follows: - § 4041(c): Pub. L. 104–188, § 1609(g)(3)(A), redesignated par. (4) as (2). - § 4041(c): Pub. L. 104–188, § 1609(g)(3)(A), redesignated par. (5) as (3). - § 4041(c): Pub. L. 104–188, § 1609(a)(3), inserted “, and during the period beginning on the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and ending on December 31, 1996” after “December 31, 1995”. - § 4041(k): Pub. L. 104–188, § 1609(g)(4)(A), inserted “and” at end of subpar. (A), substituted period for “, and” at end of subpar. (B), and struck out subpar. (C) which read as follows: “no tax shall be imposed by subsection (c)(2).” ## § 4081: Imposition of tax - § 4081(a)(2)(A): Pub. L. 104–188, § 1609(g)(1), added cls. (i) and (ii), redesignated former cl. (ii) as (iii), and struck out former cl. (i) which read as follows: “in the case of gasoline, 18.3 cents per gallon, and”. - § 4081(d)(1): Pub. L. 104–188, § 1609(a)(2)(B), (g)(4)(B), substituted “the rates of tax specified in clauses (i) and (iii) of subsection (a)(2)(A) (other than the tax on aviation gasoline)” for “each rate of tax specified in subsection (a)(2)(A)”. - § 4081(d)(2), § 4081(d)(3): Pub. L. 104–188, § 1609(a)(2)(A), (g)(2), added par. (3) relating to aviation gasoline, redesignated former par. (2), relating to leaking underground storage tank trust fund financing rate, as another par. (3), and added new par. (2) relating to aviation gasoline. ## § 4082: Exemptions for diesel fuel and kerosene - § 4082(c), § 4082(d), § 4082(e): Pub. L. 104–188 added subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and (e), respectively. ## § 4261: Imposition of tax - § 4261(e): Pub. L. 104–188, § 1609(e), inserted at end “In the case of helicopter transportation described in paragraph (1), this subsection shall be applied by treating each flight segment as a distinct flight.” - § 4261(f): Pub. L. 104–188, § 1609(d), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: - § 4261(g): Pub. L. 104–188, § 1609(b), substituted “January 1, 1996, and to transportation beginning on or after the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and before January 1, 1997” for “January 1, 1996”. ## § 4271: Imposition of tax - § 4271(d): Pub. L. 104–188 substituted “January 1, 1996, and to transportation beginning on or after the date which is 7 calendar days after the date of the enactment of the Small Business Job Protection Act of 1996 and before January 1, 1997” for “January 1, 1996”. ## § 4282: Transportation by air for other members of affiliated group - § 4282(b), § 4282(c): Pub. L. 104–188 added subsec. (b) and redesignated former subsec. (b) as (c). ## § 4462: Definitions and special rules - § 4462(b)(1)(D): Pub. L. 104–188 inserted before period at end “, or passengers transported on United States flag vessels operating solely within the State waters of Alaska or Hawaii and adjacent international waters”. ## § 4481: Imposition of tax - § 4481(e): Pub. L. 104–188 provided that section 8002(a)(5) of Pub. L. 102–240 shall be applied as if “4481(e)” appeared instead of “4481(c)”. See 1991 Amendment note below. ## § 4682: Definitions and special rules - § 4682(d)(1): Pub. L. 104–188, § 1803(a)(1), inserted before period at end “, or on any recycled halon imported from any country which is a signatory to the Montreal Protocol on Substances that Deplete the Ozone Layer”. - § 4682(g): Pub. L. 104–188, § 1803(b), amended par. (4) generally, substituting provisions relating to chemicals used as propellants in metered-dose inhalers for provisions relating to chemicals used for sterilizing medical instruments and as propellants in metered-dose inhalers, including provisions relating to rate of tax, overpayments, and applicable period. ## § 4971: Taxes on failure to meet minimum funding standards - § 4971(f)(4): Pub. L. 104–188 added par. (4). ## § 4972: Tax on nondeductible contributions to qualified employer plans - § 4972(d)(1)(A)(iv): Pub. L. 104–188 added cl. (iv). ## § 4973: Tax on excess contributions to certain tax-favored accounts and annuities - § 4973(b)(1)(A): Pub. L. 104–188, § 1704(t)(72), provided that section 521(b)(41) of Pub. L. 102–318 shall be applied as if “section” appeared instead of “sections” in the material proposed to be stricken. See 1992 Amendment note below. - § 4973(b)(1)(A): Pub. L. 104–188, § 1704(t)(70), substituted “section” for “sections”. ## § 4975: Tax on prohibited transactions - § 4975(a): Pub. L. 104–188, § 1453(a), substituted “10 percent” for “5 percent”. - § 4975(d)(13): Pub. L. 104–188, § 1702(g)(3), substituted “408(b)(12)” for “408(b)”. ## § 4977: Tax on certain fringe benefits provided by an employer - § 4977(c): Pub. L. 104–188 substituted “section 132(h)” for “section 132(i)(2)” in closing provisions. ## § 4978: Tax on certain dispositions by employee stock ownership plans and certain cooperatives - § 4978(b)(2): Pub. L. 104–188 added subpars. (A) and (B) and closing provisions and struck out former subpars. (A) to (D) and closing provisions which read as follows: ## § 4979A: Tax on certain prohibited allocations of qualified securities - § 4979A(c): Pub. L. 104–188 amended directory language of Pub. L. 101–239, § 7304(a)(2)(D)(ii). See 1989 Amendment note below. ## § 4980: Tax on reversion of qualified plan assets to employer - § 4980(a), § 4980(d): Pub. L. 104–188 provided that, except as otherwise expressly provided, whenever in title XII of Pub. L. 101–508 an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. Sections 12001 and 12002(a) of title XII of Pub. L. 101–508 directed the amendment of this section without specifying that the amendment was to the Internal Revenue Code of 1986. See 1990 Amendment note below. ## § 4980B: Failure to satisfy continuation coverage requirements of group health plans - § 4980B(f)(2)(B)(i): Pub. L. 104–188, § 1704(t)(21), made technical amendment to directory language of Pub. L. 101–239, § 6701(a)(1). See 1989 Amendment note below. - § 4980B(f)(2)(B)(i)(V): Pub. L. 104–188, § 1704(g)(1)(A), substituted “Medicare entitlement followed by qualifying event” for “Qualifying event involving medicare entitlement” in heading and amended text generally. Prior to amendment, text read as follows: “In the case of an event described in paragraph (3)(D) (without regard to whether such event is a qualifying event), the period of coverage for qualified beneficiaries other than the covered employee for such event or any subsequent qualifying event shall not terminate before the close of the 36-month period beginning on the date the covered employee becomes entitled to benefits under title XVIII of the Social Security Act.” ## § 5041: Imposition and rate of tax - § 5041(c)(6), § 5041(c)(7): Pub. L. 104–188 added pars. (6) and (7) and struck out former par. (6) which read as follows: ## § 5061: Method of collecting tax - § 5061(b)(3): Pub. L. 104–188 substituted “section 5041(f),” for “section 5041(e),”. ## § 5114: Drawback - § 5114(c)(3): Pub. L. 104–188 substituted “section 6665(a)” for “section 6662(a)”. ## § 5206: Containers - § 5206(f)(2): Pub. L. 104–188 substituted “section 105(e)” for “section 5(e)”. ## § 5354: Bond - § 5354: Pub. L. 104–188 inserted “(taking into account the appropriate amount of credit with respect to such wine under section 5041(c))” after “any one time”. ## § 6033: Returns by exempt organizations - § 6033(e)(1)(B)(i): Pub. L. 104–188, § 1703(g)(2), substituted “section 501” for “this subtitle”. - § 6033(e)(1)(B)(iii): Pub. L. 104–188, § 1703(g)(1), added subcl. (iii). ## § 6037: Return of S corporation - § 6037(c): Pub. L. 104–188 added subsec. (c). ## § 6038: Information reporting with respect to certain foreign corporations and partnerships - § 6038(a)(1)(E), § 6038(a)(1): Pub. L. 104–188, § 1704(f)(5)(A), substituted period for “, and” at end of subpar. (E) and struck out subpar. (F) which read as follows: “such information as the Secretary may require for purposes of carrying out the provisions of section 453C.” - § 6038(e): Pub. L. 104–188, § 1704(t)(40), redesignated subsec. (e), relating to cross references, as (f). - § 6038(e)(2): Pub. L. 104–188, § 1704(t)(46), made technical amendment to directory language of Pub. L. 101–508. See 1990 Amendment note below. - § 6038(f): Pub. L. 104–188, § 1704(t)(40), redesignated subsec. (e), relating to cross references, as (f). ## § 6038A: Information with respect to certain foreign-owned corporations - § 6038A(b)(2), § 6038A(b): Pub. L. 104–188, § 1704(f)(5)(B), inserted “and” at end of par. (2), substituted a period for “, and” at end of par. (3), and struck out par. (4) which read as follows: “such information as the Secretary may require for purposes of carrying out the provisions of section 453C.” - § 6038A(e)(4)(D): Pub. L. 104–188, § 1702(c)(5), substituted “any affected taxable year” for “any transaction to which the summons relates” and inserted at end “For purposes of this subparagraph, the term ‘affected taxable year’ means any taxable year if the determination of the amount of tax imposed for such taxable year is affected by the treatment of the transaction to which the summons relates.” ## § 6039F: Notice of large gifts received from foreign persons - Enacted 26 U.S.C. § 6039F. ## § 6043: Liquidating, etc., transactions - § 6043: Pub. L. 104–188 substituted “Liquidating, etc., transactions” for “Liquidating; etc., transactions” in section catchline. ## § 6045: Returns of brokers - § 6045(e)(3): Pub. L. 104–188 inserted at end “Nothing in this paragraph shall be construed to prohibit the real estate reporting person from taking into account its cost of complying with such requirement in establishing its charge (other than a separate charge for complying with such requirement) to any customer for performing services in the case of a real estate transaction.” ## § 6047: Information relating to certain trusts and annuity plans - § 6047(d)(1): Pub. L. 104–188, § 1455(b)(2), inserted at end “No return or report may be required under the preceding sentence with respect to distributions to any person during any year unless such distributions aggregate $10 or more.” - § 6047(e)(1), § 6047(e)(2), § 6047(e): Pub. L. 104–188, § 1602(b)(6), added pars. (1) and (2) and struck out former pars. (1) to (3) which read as follows: - § 6047(f): Pub. L. 104–188, § 1455(d)(1), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “For provisions relating to penalties for failure to file a return required by this section, see section 6652(e).” ## § 6048: Information with respect to certain foreign trusts - § 6048: Pub. L. 104–188 amended section generally, substituting provisions calling for improved information reporting on foreign trusts for provisions calling for the filing of returns as to foreign trusts, prescribing the form and contents of such returns, and requiring annual returns for foreign trusts with one or more United States beneficiaries. ## § 6050A: Reporting requirements of certain fishing boat operators - § 6050A(a)(5): Pub. L. 104–188 added par. (5). ## § 6050B: Returns relating to unemployment compensation - § 6050B(c)(1): Pub. L. 104–188 substituted “section 85(b)” for “section 85(c)”. ## § 6050H: Returns relating to mortgage interest received in trade or business from individuals - § 6050H(b)(2)(B): Pub. L. 104–188 made technical amendment to directory language of Pub. L. 101–239, § 7646(b)(1). See 1989 Amendment note below. ## § 6050R: Returns relating to certain purchases of fish - Enacted 26 U.S.C. § 6050R. ## § 6103: Confidentiality and disclosure of returns and return information - § 6103(e)(1)(A): Pub. L. 104–188, § 1704(t)(41), substituted “section 1(g) or 59(j)” for “section 1(i) or 59(j)”. ## § 6109: Identifying numbers - § 6109(e): Pub. L. 104–188, § 1615(a)(2)(A), struck out subsec. (e) which read as follows: - § 6109(f), § 6109(g): Pub. L. 104–188, § 1704(t)(42), redesignated subsec. (f) relating to access to employer identification numbers for purposes of Federal Crop Insurance Act as subsec. (g). ## § 6166: Extension of time for payment of estate tax where estate consists largely of interest in closely held business - § 6166(k): Pub. L. 104–188 struck out par. (6) which provided cross reference to former section 2210(c) of this title authorizing payment of certain portion of estate tax in installments under provisions of this section. ## § 6213: Restrictions applicable to deficiencies; petition to Tax Court - § 6213(g)(2)(H): Pub. L. 104–188 added subpar. (H). ## § 6214: Determinations by Tax Court - § 6214(e): Pub. L. 104–188 amended subsec. (e) generally, striking par. (2) designation and par. (1) which provided cross reference to section 6621(c)(4) of this title for provision giving Tax Court jurisdiction to determine whether any portion of deficiency is a substantial underpayment attributable to tax motivated transactions. ## § 6302: Mode or time of collection - § 6302(b): Pub. L. 104–188, § 1704(t)(52), provided that section 11801(c)(22)(A) of Pub. L. 101–508 shall be applied as if “chapters 21” appeared instead of “chapter 21” in the material to be stricken. See 1990 Amendment note below. - § 6302(g): Pub. L. 104–188, § 1702(c)(3), inserted “, 22,” after “chapters 21”. ## § 6416: Certain taxes on sales and services - § 6416(b)(1)(A): Pub. L. 104–188 substituted “chapter 31 or 32” for “chapter 32 or by section 4051”. ## § 6421: Gasoline used for certain nonhighway purposes, used by local transit systems, or sold for certain exempt purposes - § 6421(f)(2)(A): Pub. L. 104–188 substituted “4041(c)(2)” for “4041(c)(4)”. ## § 6427: Fuels not used for taxable purposes - § 6427(f): Pub. L. 104–188, § 1703(k), substituted “1999” for “1995”. - § 6427(g): Pub. L. 104–188, § 1606(a), struck out subsec. (g) which related to advance repayment of increased diesel fuel tax to original purchasers of diesel-powered automobiles and light trucks. - § 6427(i)(1), § 6427(i)(2)(A): Pub. L. 104–188, § 1606(b)(2), struck out “(g),” after “(d),” and “(or a qualified diesel powered highway vehicle purchased)” after “with respect to fuel used” wherever appearing. - § 6427(l)(4): Pub. L. 104–188, § 1702(b)(2)(B), amended par. (4), as in effect before the amendments made by the Revenue Reconciliation Act of 1993 [ch. I, §§ 13001–13444, of title XIII of Pub. L. 103–66], by inserting before the period “unless such fuel was used by a State or any political subdivision thereof”. See 1993 Amendment note below for subsec. (l). ## § 6501: Limitations on assessment and collection - § 6501(m): Pub. L. 104–188, § 1704(j)(4)(B), substituted “sections 30(d)(4), 40(f)” for “section 40(f)”. See 1997 Amendment note above. - § 6501(m): Pub. L. 104–188, § 1703(n)(8), substituted “45B, or 51(j)” for “or 51(j)”. See 1997 Amendment note above. - § 6501(m): Pub. L. 104–188, § 1702(e)(3), redesignated subsec. (n) as (m) and substituted “section 40(f), 43, or 51(j)” for “section 40(f) or 51(j)”. - § 6501(m): Pub. L. 104–188, § 1702(e)(3)(A), which directed in part that subsec. (m) relating to deficiency attributable to election under section 44B, be struck out, could not be executed because subsec. (m) was previously repealed. See 1990 and 1988 Amendment notes for subsec. (m) and 1984 Amendment note for subsec. (p), below. - § 6501(n), § 6501(o): Pub. L. 104–188, § 1702(e)(3)(A), redesignated subsec. (o) as (n). Former subsec. (n) redesignated (m). ## § 6503: Suspension of running of period of limitation - § 6503(j): Pub. L. 104–188, § 1702(h)(17)(A), which directed that the subsection relating to extension in case of certain summonses be redesignated as (j), could not be executed, because that subsection (formerly subsec. (k)) was previously redesignated (j) by Pub. L. 101–508, § 11801(c)(20)(A). See 1990 Amendment note below. - § 6503(k): Pub. L. 104–188, § 1702(h)(17)(B), redesignated the subsection relating to cross references (subsec. (l)) as (k). - § 6503(k): Pub. L. 104–188, § 1702(h)(17)(A), which directed that the subsection relating to extension in case of certain summonses be redesignated as (j), could not be executed, because that subsection (formerly subsec. (k)) was previously redesignated (j) by Pub. L. 101–508, § 11801(c)(20)(A). See 1990 Amendment note below. - § 6503: Pub. L. 104–188, § 1702(h)(17)(B), redesignated the subsection relating to cross references (subsec. (l)) as (k). ## § 6621: Determination of rate of interest - § 6621(c)(2)(A): Pub. L. 104–188, § 1702(c)(6), inserted closing provisions “The preceding sentence shall be applied without regard to any such letter or notice which is withdrawn by the Secretary.” - § 6621(c)(2)(B)(i): Pub. L. 104–188, § 1702(c)(7), substituted “this title” for “this subtitle”. ## § 6652: Failure to file certain information returns, registration statements, etc. - § 6652(c)(1)(C): Pub. L. 104–188, § 1704(s)(1), substituted “$20” for “$10” and “$10,000” for “$5,000”. - § 6652(c)(1)(D): Pub. L. 104–188, § 1704(s)(2), substituted “$20” for “$10”. - § 6652(e): Pub. L. 104–188, § 1455(d)(2), inserted at end “This subsection shall not apply to any return or statement which is an information return described in section 6724(d)(1)(C)(ii) or a payee statement described in section 6724(d)(2)(X).” - § 6652(i): Pub. L. 104–188, § 1455(c), substituted “$100” and “$50,000” for “the $10” and “$5,000”, respectively. ## § 6655: Failure by corporation to pay estimated income tax - § 6655(g)(3): Pub. L. 104–188, § 1703(h), in closing provisions, substituted “, subsection (e)(2)(A) shall be applied by substituting ‘2 months’ for ‘3 months’ in clause (i)(I), the election under clause (i) of subsection (e)(2)(C) may be made separately for each installment, and clause (ii) of subsection (e)(2)(C) shall not apply.” for “, and, except in the case of an election under subsection (e)(2)(C), subsection (e)(2)(A) shall be applied by substituting ‘2 months’ for ‘3 months’ and in clause (i)(I), by substituting ‘4 months’ for ‘5 months’ in clause (i)(II), by substituting ‘7 months’ for ‘8 months’ in clause (i)(III), and by substituting ‘10 months’ for ‘11 months’ in clause (i)(IV).” ## § 6677: Failure to file information with respect to certain foreign trusts - § 6677: Pub. L. 104–188, § 1901(b), substituted “information” for “information returns” in section catchline and amended text generally, substituting present provisions for former provisions which related to civil penalty in subsec. (a) and nonapplicability of deficiency procedures in subsec. (b). ## § 6693: Failure to provide reports on certain tax-favored accounts or annuities; penalties relating to designated nondeductible contributions - § 6693(a): Pub. L. 104–188, § 1455(d)(3), inserted at end “This subsection shall not apply to any report which is an information return described in section 6724(d)(1)(C)(i) or a payee statement described in section 6724(d)(2)(W).” - § 6693(c), § 6693(d): Pub. L. 104–188, § 1421(b)(4)(B), added subsec. (c) and redesignated former subsec. (c) as (d). ## § 6715: Dyed fuel sold for use or used in taxable use, etc. - § 6715: Pub. L. 104–188 renumbered section 6714 of this title as this section. ## § 6724: Waiver; definitions and special rules - § 6724(d)(1)(A)(viii): Pub. L. 104–188, § 1116(b)(2)(A), added cl. (viii). - § 6724(d)(1)(B)(xi): Pub. L. 104–188, § 1702(b)(1), made technical amendment to directory language of Pub. L. 101–508, § 11212(e)(1). See 1990 Amendment note below. - § 6724(d)(1)(B)(xii): Pub. L. 104–188, § 1702(c)(2)(A), struck out “or” at end. - § 6724(d)(1)(B)(xii): Pub. L. 104–188, § 1702(b)(1), made technical amendment to directory language of Pub. L. 101–508, § 11212(e)(1). See 1990 Amendment note below. - § 6724(d)(1)(B)(xiii): Pub. L. 104–188, § 1702(c)(2)(B), substituted “, or” for period at end. - § 6724(d)(1)(C): Pub. L. 104–188, § 1455(a)(1), which directed the amendment of par. (1) by inserting a new subpar. (C) after subpar. (B), was executed by making the insertion after subpar. (B)(xv), to reflect the probable intent of Congress. - § 6724(d)(2)(R): Pub. L. 104–188, § 1116(b)(2)(B), added subpar. (R). Former subpar. (R) redesignated (S). - § 6724(d)(2)(S): Pub. L. 104–188, § 1116(b)(2)(B), redesignated subpar. (R) as (S). Former subpar. (S) redesignated (T). See Codification note above. - § 6724(d)(2)(S): Pub. L. 104–188, § 1901(c)(1), struck out “or” at end. See Codification note above. - § 6724(d)(2)(T): Pub. L. 104–188, § 1116(b)(2)(B), redesignated subpar. (S) as (T). Former subpar. (T) redesignated (U). See Codification note above. - § 6724(d)(2)(T): Pub. L. 104–188, § 1901(c)(1), substituted “, or” for period at end. See Codification note above. - § 6724(d)(2)(U): Pub. L. 104–188, § 1455(a)(2), struck out “or” at end. See Codification note above. - § 6724(d)(2)(U): Pub. L. 104–188, § 1116(b)(2)(B), redesignated subpar. (T) as (U). Former subpar. (U) redesignated (V). See Codification note above. - § 6724(d)(2)(U): Pub. L. 104–188, § 1901(c)(1), added subpar. (U). See Codification note above. - § 6724(d)(2)(V): Pub. L. 104–188, § 1455(a)(2), substituted a comma for period at end. - § 6724(d)(2)(V): Pub. L. 104–188, § 1116(b)(2)(B), redesignated subpar. (U) as (V). - § 6724(d)(2)(W), § 6724(d)(2)(X): Pub. L. 104–188, § 1455(a)(2), added subpars. (W) and (X). - § 6724(d)(3)(C): Pub. L. 104–188, § 1615(a)(2)(B), inserted “and” at end. - § 6724(d)(3): Pub. L. 104–188, § 1615(a)(2)(B), redesignated subpar. (E) as (D) and struck out former subpar. (D) which read as follows: “the requirement of section 6109(e) that a person include the TIN of any dependent on his return, and”. - § 6724(d)(3): Pub. L. 104–188, § 1615(a)(2)(B), redesignated subpar. (E) as (D). - § 6724(d)(3): Pub. L. 104–188, § 1704(j)(3), substituted “section 6109(h)” for “section 6109(f)” in introductory provisions. ## § 7012: Cross references - § 7012(3): Pub. L. 104–188, § 1702(b)(4)(A), substituted “taxes on gasoline and diesel fuel” for “production or importation of gasoline”. - § 7012(4), § 7012(5), § 7012(6): Pub. L. 104–188, § 1702(b)(4)(B), redesignated pars. (5) and (6) as (4) and (5), respectively, and struck out former par. (4) which read as follows: “For provisions relating to registration in relation to the manufacture or production of lubricating oils, see section 4101.” ## § 7232: Failure to register or reregister under section 4101, false representations of registration status, etc. - § 7232: Pub. L. 104–188 struck out “lubricating oil,” after “gasoline,” in section catchline and text. ## § 7454: Burden of proof in fraud, foundation man­ager, and transferee cases - § 7454(b): Pub. L. 104–188 substituted “section 4955(f)(2)” for “section 4955(e)(2)”. ## § 7611: Restrictions on church tax inquiries and examinations - § 7611(h)(7): Pub. L. 104–188 substituted “appropriate” for “approporiate” in text. ## § 7701: Definitions - § 7701(a)(19)(C)(xi): Pub. L. 104–188, § 1621(b)(8), amended cl. (xi) generally. Prior to amendment, cl. (xi) read as follows: “any regular or residual interest in a REMIC, but only in the proportion which the assets of such REMIC consist of property described in any of the preceding clauses of this subparagraph; except that if 95 percent or more of the assets of such REMIC are assets described in clauses (i) through (x), the entire interest in the REMIC shall qualify.” - § 7701(a)(20): Pub. L. 104–188, § 1402(b)(3), struck out “, for the purpose of applying the provisions of section 101(b) with respect to employees’ death benefits” after “health plans”. - § 7701(a)(30)(C), § 7701(a)(30)(D), § 7701(a)(30)(E): Pub. L. 104–188, § 1907(a)(1), struck out “and” at end of subpar. (C), added subpars. (D) and (E), and struck out former subpar. (D) which read as follows: “any estate or trust (other than a foreign estate or foreign trust, within the meaning of section 7701(a)(31)).” - § 7701(a)(31): Pub. L. 104–188, § 1907(a)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The terms ‘foreign estate’ and ‘foreign trust’ mean an estate or trust, as the case may be, the income of which, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States, is not includible in gross income under subtitle A.” - § 7701(i)(2)(A): Pub. L. 104–188, § 1621(b)(9), inserted “or a FASIT” after “a REMIC” in introductory provisions. ## § 7872: Treatment of loans with below-market interest rates - § 7872(a)(1), § 7872(a)(2): Pub. L. 104–188, § 1704(t)(58)(A), substituted “forgone” for “foregone”. - § 7872(e): Pub. L. 104–188, § 1704(t)(58)(B), substituted “forgone” for “foregone” in heading. - § 7872(e)(2): Pub. L. 104–188, § 1704(t)(58), substituted “Forgone” for “Foregone” in heading and “forgone” for “foregone” in introductory provisions of text. - § 7872(f)(8): Pub. L. 104–188, § 1906(c)(2), inserted “, 643(i),” before “or 1274” in heading and text. - § 7872(f): Pub. L. 104–188, § 1602(b)(7), struck out par. (12) which read as follows: “Special rule for certain employer security loans.—This section shall not apply to any loan between a corporation (or any member of the controlled group of corporations which includes such corporation) and an employee stock ownership plan described in section 4975(e)(7) to the extent that the interest rate on such loan is equal to the interest rate paid on a related securities acquisition loan (as described in section 133(b)) to such corporation.” ## § 9502: Airport and Airway Trust Fund - § 9502(b)(1): Pub. L. 104–188, § 1609(c)(1), substituted “January 1, 1997” for “January 1, 1996”. - § 9502(b)(2): Pub. L. 104–188, § 1703(n)(10), inserted “and before” after “1982,”. - § 9502(b)(2): Pub. L. 104–188, § 1609(c)(1), (g)(4)(D), substituted “January 1, 1997” for “January 1, 1996” and “15 cents” for “14 cents”. - § 9502(b): Pub. L. 104–188, § 1609(c)(1), substituted “January 1, 1997” for “January 1, 1996”. - § 9502(d)(5): Pub. L. 104–188, § 1609(c)(3), added par. (5) relating to transfers on account of refunds of taxes on transportation by air. - § 9502(f): Pub. L. 104–188, § 1609(g)(4)(C), substituted “section 4041(c)(2)” for “section 4041(c)(4)”. - § 9502(f): Pub. L. 104–188, § 1609(c)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Notwithstanding the preceding provisions of this subsection, the Airport and Airway Trust Fund financing rate is zero with respect to tax received after December 31, 1995.” ## § 9707: Failure to pay premium - § 9707(d)(1): Pub. L. 104–188 struck out comma after “diligence”.