Pub. L. 107-147 Mar. 9, 2002

116 Stat. 57 · Changed 72 sections of the Code

Bill H.R. 3090 · House report H. Rept. 107-251 · Bluebook JCT general explanation (2003)

§ 21 Expenses for household and dependent care services necessary for gainful employment

  • (d)(2)(A) Pub. L. 107–147, § 418(b)(1), substituted “$250” for “$200”.
  • (d)(2)(B) Pub. L. 107–147, § 418(b)(2), substituted “$500” for “$400”.

§ 23 Adoption expenses

  • (a)(1) Pub. L. 107–147, § 411(c)(1)(A), reenacted heading without change and amended text of par. (1) generally. Prior to…
  • (a)(2) Pub. L. 107–147, § 411(c)(1)(C), struck out concluding provisions which read as follows: “In the case of the adoption…
  • (a)(3) Pub. L. 107–147, § 411(c)(1)(B), added par. (3).
  • (b)(1) Pub. L. 107–147, § 411(c)(1)(D), substituted “subsection (a)” for “subsection (a)(1)(A)”.
  • (h) Pub. L. 107–147, § 418(a)(1), substituted “subsection (a)(3)” for “subsection (a)(1)(B)” in introductory provisions and…
  • (i) Pub. L. 107–147, § 411(c)(1)(E), substituted “the dollar amounts in subsections (a)(3) and (b)(1)” for “the dollar…

§ 24 Child tax credit

  • (b) Pub. L. 107–147, § 417(23)(A), amended directory language of Pub. L. 107–16, § 618(b)(2)(A). See 2001 Amendment note…
  • (d)(1)(B) Pub. L. 107–147, § 411(b), substituted “aggregate amount of credits allowed by this subpart” for “amount of credit…

§ 25B Elective deferrals and IRA contributions by certain individuals

  • (d)(2)(A) Pub. L. 107–147, § 411(m), reenacted heading without change and amended text of subpar. (A) generally. Prior to…
  • § 25B Pub. L. 107–147, § 417(1), redesignated subsec. (g), relating to termination, as (h).

§ 26 Limitation based on tax liability; definition of tax liability

  • (a)(1) Pub. L. 107–147, § 417(23)(B), amended directory language of Pub. L. 107–16, § 618(b)(2)(C). See 2001 Amendment note…
  • (a)(2) Pub. L. 107–147, § 601(a), substituted “rule for 2000, 2001, 2002, and 2003” for “rule for 2000 and 2001” in heading…
  • (b)(2)(P) (b)(2)(Q) Pub. L. 107–147, § 415(a), which directed striking “and” at end of subpar. (P) and substituting “, and” for the period…
  • (b)(2)(R) Pub. L. 107–147, § 415(a), added subpar. (R).

§ 32 Earned income

  • (g) Pub. L. 107–147 substituted “part” for “subpart”.

§ 38 General business credit

  • (b)(15) Pub. L. 107–147, § 411(d)(2), substituted “45F(a)” for “45F”.
  • (c)(2)(A)(ii)(II) Pub. L. 107–147, § 301(b)(2), inserted “or the New York Liberty Zone business employee credit” after “employment…
  • (c)(3) (c)(4) Pub. L. 107–147, § 301(b)(1), added par. (3) and redesignated former par. (3) as (4).

§ 42 Low-income housing credit

  • (h)(3)(C) Pub. L. 107–147, § 417(2), substituted “the amounts described in clauses (ii) through (iv) over the aggregate housing…
  • (m)(1)(B)(ii)(II) (m)(1)(B)(ii)(III) Pub. L. 107–147, § 417(3), struck out second “and” at end of subcl. (II) and inserted “and” at end of subcl. (III).

§ 45 Electricity produced from certain renewable resources, etc.

  • (c)(3) Pub. L. 107–147 substituted “2004” for “2002” in subpars. (A) to (C).

§ 45A Indian employment credit

  • (f) Pub. L. 107–147 substituted “December 31, 2004” for “December 31, 2003”.

§ 45E Small employer pension plan startup costs

  • (e)(1) Pub. L. 107–147 substituted “subsection (m)” for “subsection (n)”.

§ 45F Employer-provided child care credit

  • (d)(4)(B) Pub. L. 107–147 substituted “this chapter or for purposes of section 55” for “subpart A, B, or D of this part”.

§ 51 Amount of credit

  • (c)(4) Pub. L. 107–147 substituted “2003” for “2001”.

§ 56 Adjustments in computing alternative minimum taxable income

  • (a)(1)(A)(ii) Pub. L. 107–147, § 417(5), substituted “such section 1250” for “such 1250” in concluding provisions.
  • (d)(1)(A) Pub. L. 107–147, § 102(c)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the…

§ 62 Adjusted gross income defined

  • (a)(2)(D) Pub. L. 107–147, § 406(a), added subpar. (D).
  • (d) Pub. L. 107–147, § 406(b), added subsec. (d).

§ 63 Taxable income defined

  • (c)(2) Pub. L. 107–147, § 411(e)(1)(E), inserted “If any amount determined under subparagraph (A) is not a multiple of $50…
  • (c)(2)(A) Pub. L. 107–147, § 411(e)(1)(A), substituted “subparagraph (D)” for “subparagraph (C)”.
  • (c)(2)(B) Pub. L. 107–147, § 411(e)(1)(B), struck out “or” at end.
  • (c)(2)(C) (c)(2) Pub. L. 107–147, § 411(e)(1)(C), (D), added subpar. (C) and redesignated former subpar. (C) as (D).
  • (c)(4) Pub. L. 107–147, § 411(e)(2)(C), which directed amendment by striking out the flush sentence at the end added by…
  • (c)(4) Pub. L. 107–147, § 411(e)(2)(A), substituted “paragraph (2)(B), (2)(D), or (5)” for “paragraph (2) or (5)” in…
  • (c)(4)(B)(i) Pub. L. 107–147, § 411(e)(2)(B), substituted “paragraph (2)(B), (2)(D),” for “paragraph (2)”.

§ 108 Income from discharge of indebtedness

  • (d)(7)(A) Pub. L. 107–147 inserted “, including by not taking into account under section 1366(a) any amount excluded under…

§ 131 Certain foster care payments

  • (b)(1) Pub. L. 107–147, § 404(a), amended provisions preceding subpar. (B) generally. Prior to amendment, text of such…
  • (b)(2)(B) Pub. L. 107–147, § 404(b), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “in the case…
  • (b)(3) (b)(4) Pub. L. 107–147, § 404(c), added par. (3) and redesignated former par. (3) as (4).

§ 137 Adoption assistance programs

  • (a) Pub. L. 107–147, § 411(c)(2)(A), amended heading and text of subsec. (a) generally. Prior to amendment, text read as…
  • (b)(1) Pub. L. 107–147, § 411(c)(2)(B), as amended by Pub. L. 108–311, substituted “subsection (a)” for “subsection (a)(1)”.
  • (f) Pub. L. 107–147, § 418(a)(2), inserted at end “If any amount as increased under the preceding sentence is not a…

§ 151 Allowance of deductions for personal exemptions

  • (c) Pub. L. 107–147, § 417(6), inserted “as” before “such terms”.
  • (c) Pub. L. 107–147, § 412(b), substituted “for principal place of abode requirements” for “for earned income credit” in…

§ 168 Accelerated cost recovery system

  • (j)(8) Pub. L. 107–147, § 613(b), substituted “December 31, 2004” for “December 31, 2003”.
  • (k) Pub. L. 107–147, § 101(a), added subsec. (k).

§ 170 Charitable, etc., contributions and gifts

  • (e)(6) Pub. L. 107–147, § 417(7), substituted “2000),” for “ 2000,”.
  • (e)(6) Pub. L. 107–147, § 417(22), provided that the amendment made by section 165(b)(1) of the Community Renewal Tax Relief…

§ 172 Net operating loss deduction

  • (b)(1) Pub. L. 107–147, § 417(8), substituted “3 taxable years” for “3 years” and “2 taxable years” for ‘2 years”.
  • (b)(1) Pub. L. 107–147, § 102(a), added subpar. (H).
  • § 172 Pub. L. 107–147, § 102(b), added subsec. (j) and redesignated former subsec. (j) as (k).

§ 220 Archer MSAs

  • (i)(2) Pub. L. 107–147, § 612(a), substituted “2003” for “2002” in subpars. (A) and (B).
  • (i)(3)(B) Pub. L. 107–147, § 612(a), substituted “2003” for “2002” in heading and introductory provisions.
  • (j)(2) Pub. L. 107–147, § 612(b)(1), substituted “1998, 1999, 2001, or 2002” for “1998, 1999, or 2001” wherever appearing in…
  • (j)(4)(A) Pub. L. 107–147, § 612(b)(2), substituted “2001, and 2002” for “and 2001”.

§ 280F Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes

  • (a)(1) Pub. L. 107–147 added cl. (iii).

§ 351 Transfer to corporation controlled by transferor

  • (h)(1) Pub. L. 107–147 inserted comma after “liability”.

§ 358 Basis to distributees

  • (h)(1)(A) Pub. L. 107–147 amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “which is assumed in…

§ 401 Qualified pension, profit-sharing, and stock bonus plans

  • (a)(30) Pub. L. 107–147, § 411(o)(2), substituted “402(g)(1)(A)” for “402(g)(1)”.
  • (a)(31)(C)(i) Pub. L. 107–147, § 411(q)(1), inserted “is a qualified trust which is part of a plan which is a defined contribution…

§ 402 Taxability of beneficiary of employees’ trust

  • (c)(2) Pub. L. 107–147, § 411(q)(2), inserted at end: “In the case of a transfer described in subparagraph (A) or (B), the…
  • (g)(1) Pub. L. 107–147, § 411(o)(1), added subpar. (C).
  • (g)(7)(B) Pub. L. 107–147, § 411(p)(6), substituted “2001).” for “2001.”
  • (h)(2)(A) Pub. L. 107–147, § 411(l)(3), substituted “25 percent” for “15 percent”.

§ 403 Taxation of employee annuities

  • (b)(1) Pub. L. 107–147, § 411(p)(1), inserted concluding provisions and struck out former concluding provisions which read as…
  • (b)(3) Pub. L. 107–147, § 411(p)(3), in first sentence, inserted “, and which precedes the taxable year by no more than five…
  • (b)(6) Pub. L. 107–147, § 411(p)(2), struck out heading and text of par. (6). Text read as follows: “For purposes of this…

§ 404 Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan

  • (a)(1)(D) Pub. L. 107–147, § 411(s), substituted “Special rule for terminating plans” for “Plans maintained by professional…
  • (a)(7)(C) Pub. L. 107–147, § 411(l)(4), reenacted heading without change and amended text generally. Prior to amendment, text…
  • (a)(12) Pub. L. 107–147, § 411(l)(1), substituted “(9) and subsection (h)(1)(C),” for “(9),”.
  • (k)(1) Pub. L. 107–147, § 411(w)(1)(A), struck out “during the taxable year” after “such corporation”.
  • (k)(2)(B) Pub. L. 107–147, § 411(w)(1)(B), substituted “(A)(iv)” for “(A)(iii)”.
  • (k)(4)(B) (k)(4)(C) Pub. L. 107–147, § 411(w)(1)(C), (D), substituted “clause (iv)” for “clause (iii)” in subpar. (B), added a new subpar.…
  • (k)(7) Pub. L. 107–147, § 411(w)(2), added par. (7).
  • (n) Pub. L. 107–147, § 411(l)(2), substituted “subsection (a) or paragraph (1)(C) of subsection (h)” for “subsection (a),”.

§ 408 Individual retirement accounts

  • (k)(2)(C) Pub. L. 107–147, § 411(j)(1)(A), substituted “$450” for “$300”.
  • (k)(8) Pub. L. 107–147, § 411(j)(1)(B), substituted “$450” for “$300” in two places.
  • (q)(3)(A) Pub. L. 107–147, § 411(i)(1), reenacted heading without change and amended text of subpar. (A) generally. Prior to…

§ 409 Qualifications for tax credit employee stock ownership plans

  • (o)(1)(C)(ii) Pub. L. 107–147 substituted “$800,000” for “$500,000” in two places and “$160,000” for “$100,000”.

§ 412 Minimum funding standards

  • (c) Pub. L. 107–147, § 411(v)(1)(A), substituted “100 percent” for “125 percent”.
  • (c) Pub. L. 107–147, § 411(v)(1)(B), added cl. (iv).
  • § 412 Pub. L. 107–147, § 405(a)(1), added subcl. (III).
  • § 412 Pub. L. 107–147, § 405(a)(2), added par. (7).

§ 414 Definitions and special rules

  • (v)(2)(D) Pub. L. 107–147, § 411(o)(3), added subpar. (D).
  • (v)(3)(A)(i) Pub. L. 107–147, § 411(o)(4), substituted “sections 401(a)(30), 402(h), 403(b), 408, 415(c), and 457(b)(2) (determined…
  • (v)(3)(B) Pub. L. 107–147, § 411(o)(5), substituted “section 401(a)(4), 401(k)(3), 401(k)(11), 403(b)(12), 408(k), 410(b), or…
  • (v)(4)(B) Pub. L. 107–147, § 411(o)(6), inserted before period at end “, except that a plan described in clause (i) of section…
  • (v)(5) Pub. L. 107–147, § 411(o)(7)(A), struck out “, with respect to any plan year,” before “a participant” in introductory…
  • (v)(5)(A) Pub. L. 107–147, § 411(o)(7)(B), amended subpar. (A) generally. Prior to amendment, subpar (A) read as follows: “who…
  • (v)(5)(B) Pub. L. 107–147, § 411(o)(7)(C), substituted “plan (or other applicable) year” for “plan year”.
  • (v)(6)(C) Pub. L. 107–147, § 411(o)(8), reenacted heading without change and amended text generally. Prior to amendment, text…

§ 415 Limitations on benefits and contribution under qualified plans

  • (c)(7) Pub. L. 107–147 amended heading and text of par. (7) generally, substituting provisions relating to special rules…

§ 416 Special rules for top-heavy plans

  • (c)(1)(C)(iii) Pub. L. 107–147, § 411(k)(1), substituted “Exception for plan under which no key employee (or former key employee)…
  • (g)(3)(B) Pub. L. 107–147, § 411(k)(2), substituted “severance from employment” for “separation from service”.

§ 417 Definitions and special rules for purposes of minimum survivor annuity requirements

  • (e)(1) Pub. L. 107–147, § 411(r)(1)(A), substituted “exceed the amount that can be distributed without the participant’s…
  • (e)(2)(A) Pub. L. 107–147, § 411(r)(1)(B), substituted “exceeds the amount that can be distributed without the participant’s…

§ 448 Limitation on use of cash method of accounting

  • (d)(5) Pub. L. 107–147 amended heading and text of par. (5) generally. Prior to amendment, text read as follows: “In the case…

§ 457 Deferred compensation plans of State and local governments and tax-exempt organizations

  • (e)(5) Pub. L. 107–147, § 411(p)(5), reenacted heading without change and amended text generally. Prior to amendment, text…
  • (e)(18) Pub. L. 107–147, § 411(o)(9), added par. (18).

§ 469 Passive activity losses and credits limited

§ 475 Mark to market accounting method for dealers in securities

  • (g)(3) Pub. L. 107–147 substituted “described in section” for “described in sections”.

§ 529 Qualified tuition programs

  • (e)(3)(B)(i) Pub. L. 107–147 substituted “subsection (b)(6)” for “subsection (b)(7)”.

§ 530 Coverdell education savings accounts

  • (d)(4)(B)(iv) Pub. L. 107–147 substituted “by application of paragraph (2)(C)(i)(II)” for “because the taxpayer elected under…

§ 613A Limitations on percentage depletion in case of oil and gas wells

  • (c)(6) Pub. L. 107–147 substituted “2004” for “2002”.

§ 741 Recognition and character of gain or loss on sale or exchange

  • § 741 Pub. L. 107–147 struck out “which have appreciated substantially in value” after “inventory items”.

§ 857 Taxation of real estate investment trusts and their beneficiaries

  • (b)(7)(B)(i) Pub. L. 107–147, § 417(13), substituted “section 856(d)” for “subsection 856(d)”.
  • (b)(7)(B)(i) Pub. L. 107–147, § 413(a)(1), substituted “to the extent the amount of the rents” for “the amount of which”.
  • (b)(7)(C) Pub. L. 107–147, § 413(a)(2), substituted “to the extent the amount” for “if the amount”.

§ 904 Limitation on credit

  • (h) Pub. L. 107–147, § 601(b)(1), substituted “during 2000, 2001, 2002, or 2003” for “during 2000 or 2001”.
  • (h) Pub. L. 107–147, § 417(23)(B), amended directory language of Pub. L. 107–16, § 618(b)(2)(D). See 2001 Amendment note…

§ 953 Insurance income

  • (e)(10) Pub. L. 107–147 substituted “January 1, 2007” for “January 1, 2002” and “December 31, 2006” for “December 31, 2001”.

§ 954 Foreign base company income

  • (c)(1)(B) Pub. L. 107–147, § 417(24)(B)(ii), which directed the amendment of Pub. L. 106–170, § 532(c)(2)(Q), was executed to…
  • (h) Pub. L. 107–147, § 614(a)(2), substituted “January 1, 2007” for “January 1, 2002”.
  • (i)(4)(B) Pub. L. 107–147, § 614(b)(1), reenacted heading without change and amended text generally. Prior to amendment, text…

§ 995 Taxation of DISC income to shareholders

  • (b)(3)(B) Pub. L. 107–147 substituted “Arms Export Control Act” for “International Security Assistance and Arms Export Control…

§ 1091 Loss from wash sales of stock or securities

  • (e) Pub. L. 107–147 substituted “securities and securities futures contracts to sell” for “securities” in heading, inserted…

§ 1221 Capital asset defined

  • (b)(1)(B)(i) Pub. L. 107–147 substituted “1256(b)))” for “1256(b))”.

§ 1233 Gains and losses from short sales

  • (e)(2)(E) Pub. L. 107–147 added subpar. (E).

§ 1234A Gains or losses from certain terminations

  • (1) (2) § 1234A Pub. L. 107–147 inserted “or” at end of par. (1), struck out “or” at end of par. (2), and struck out par. (3) which…

§ 1234B Gains or losses from securities futures contracts

  • (a)(1) Pub. L. 107–147, § 412(d)(1)(B)(i), substituted “sale, exchange, or termination of a securities futures contract” for…
  • (b) Pub. L. 107–147, § 412(d)(1)(B)(i), (3)(B), inserted “or in section 1233,” after “or this section,” and substituted…
  • (f) Pub. L. 107–147, § 412(d)(1)(B)(ii), added subsec. (f).

§ 1256 Section 1256 contracts marked to market

  • (f)(5) Pub. L. 107–147 added par. (5).

§ 1394 Tax-exempt enterprise zone facility bonds

  • (c)(2) Pub. L. 107–147 substituted “paragraph (1)” for “subparagraph (A)”.

§ 2016 Recovery of taxes claimed as credit

  • § 2016 Pub. L. 107–147 struck out “any State, any possession of the United States, or the District of Columbia,” after “any…

§ 2101 Tax imposed

  • (b) Pub. L. 107–147 struck out concluding provisions which read as follows: “For purposes of the preceding sentence, there…

§ 2511 Transfers in general

  • § 2511 Pub. L. 107–147 substituted “transfer of property by gift,” for “taxable gift under section 2503,”.

§ 3304 Approval of State laws

  • (a)(4)(B) Pub. L. 107–147 inserted “or 903(d)(4)” before “of the Social Security Act”.

§ 3306 Definitions

  • (f)(2) Pub. L. 107–147 inserted “or 903(d)(4)” before “of the Social Security Act”.

§ 4101 Registration and bond

  • § 4101 Pub. L. 107–147 struck out heading and text of subsec. (e). Text read as follows:

§ 4980E Failure of employer to make comparable Archer MSA contributions

  • § 4980E Pub. L. 107–147 substituted “Archer MSA contributions” for “medical savings account contributions” in section catchline.

§ 4980F Failure of applicable plans reducing benefit accruals to satisfy notice requirements

  • (e)(1) Pub. L. 107–147, § 411(u)(1)(A), substituted “the notice described in paragraph (2)” for “written notice”.
  • (f)(2)(A) Pub. L. 107–147, § 411(u)(1)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “any…
  • (f)(3) Pub. L. 107–147, § 411(u)(1)(C), struck out “significantly” before “reduces” and before “reducing”.

§ 6103 Confidentiality and disclosure of returns and return information

  • (l)(8) Pub. L. 107–147, § 416(c)(1)(A), substituted “Federal, State, and local” for “State and local” in heading.
  • (l)(8)(A) Pub. L. 107–147, § 416(c)(1)(B), inserted “Federal or” before “State or local”.

§ 6105 Confidentiality of information arising under treaty obligations

§ 6331 Levy and distraint

  • (k)(3) Pub. L. 107–147 reenacted heading without change and amended text generally. Prior to amendment, text read as follows…

§ 7652 Shipments to the United States

  • (f)(1) Pub. L. 107–147 substituted “January 1, 2004” for “January 1, 2002”.

§ 7702A Modified endowment contract defined

  • (c)(3)(A)(ii) Pub. L. 107–147 repealed Pub. L. 106–554, § 1(a)(7) [title III, § 318(a)(2)]. See 2000 Amendment note below.

§ 9812 Parity in mental health and substance use disorder benefits

  • § 9812 Pub. L. 107–147 amended heading and text of subsec. (f) generally. Prior to amendment, text read as follows: “This…