# Pub. L. 107-147: changes to the Internal Revenue Code 2002-03-09, 116 Stat. 57. Source: . ## Legislative history - Bill: [H.R. 3090](https://www.congress.gov/bill/107th-congress/house-bill/3090) - House report: [H. Rept. 107-251](https://www.govinfo.gov/content/pkg/CRPT-107hrpt251/html/CRPT-107hrpt251.htm) - Bluebook: [JCT general explanation (2003)](https://www.govinfo.gov/app/details/CPRT-108JPRT83912) ## § 21: Expenses for household and dependent care services necessary for gainful employment - § 21(d)(2)(A): Pub. L. 107–147, § 418(b)(1), substituted “$250” for “$200”. - § 21(d)(2)(B): Pub. L. 107–147, § 418(b)(2), substituted “$500” for “$400”. ## § 23: Adoption expenses - § 23(a)(1): Pub. L. 107–147, § 411(c)(1)(A), reenacted heading without change and amended text of par. (1) generally. Prior to amendment, text read as follows: “In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter— - § 23(a)(2): Pub. L. 107–147, § 411(c)(1)(C), struck out concluding provisions which read as follows: “In the case of the adoption of a child with special needs, the credit allowed under paragraph (1) shall be allowed for the taxable year in which the adoption becomes final.” - § 23(a)(3): Pub. L. 107–147, § 411(c)(1)(B), added par. (3). - § 23(b)(1): Pub. L. 107–147, § 411(c)(1)(D), substituted “subsection (a)” for “subsection (a)(1)(A)”. - § 23(h): Pub. L. 107–147, § 418(a)(1), substituted “subsection (a)(3)” for “subsection (a)(1)(B)” in introductory provisions and inserted concluding provisions. - § 23(i): Pub. L. 107–147, § 411(c)(1)(E), substituted “the dollar amounts in subsections (a)(3) and (b)(1)” for “the dollar limitation in subsection (b)(1)”. ## § 24: Child tax credit - § 24(b): Pub. L. 107–147, § 417(23)(A), amended directory language of Pub. L. 107–16, § 618(b)(2)(A). See 2001 Amendment note below. - § 24(d)(1)(B): Pub. L. 107–147, § 411(b), substituted “aggregate amount of credits allowed by this subpart” for “amount of credit allowed by this section” in introductory provisions. ## § 25B: Elective deferrals and IRA contributions by certain individuals - § 25B(d)(2)(A): Pub. L. 107–147, § 411(m), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The qualified retirement savings contributions determined under paragraph (1) shall be reduced (but not below zero) by the sum of— - § 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 - § 26(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 below. - § 26(a)(2): Pub. L. 107–147, § 601(a), substituted “rule for 2000, 2001, 2002, and 2003” for “rule for 2000 and 2001” in heading and “during 2000, 2001, 2002, or 2003,” for “during 2000 or 2001,” in introductory provisions. - § 26(b)(2)(P), § 26(b)(2)(Q): Pub. L. 107–147, § 415(a), which directed striking “and” at end of subpar. (P) and substituting “, and” for the period at the end of subpar. (Q), was executed to subpars. (P) and (Q) as redesignated by Pub. L. 105–34, § 213(e)(1), to reflect the probable intent of Congress. See 1997 Amendment notes below. - § 26(b)(2)(R): Pub. L. 107–147, § 415(a), added subpar. (R). ## § 32: Earned income - § 32(g): Pub. L. 107–147 substituted “part” for “subpart”. ## § 38: General business credit - § 38(b)(15): Pub. L. 107–147, § 411(d)(2), substituted “45F(a)” for “45F”. - § 38(c)(2)(A)(ii)(II): Pub. L. 107–147, § 301(b)(2), inserted “or the New York Liberty Zone business employee credit” after “employment credit”. - § 38(c)(3), § 38(c)(4): Pub. L. 107–147, § 301(b)(1), added par. (3) and redesignated former par. (3) as (4). ## § 42: Low-income housing credit - § 42(h)(3)(C): Pub. L. 107–147, § 417(2), substituted “the amounts described in clauses (ii) through (iv) over the aggregate housing credit dollar amount allocated for such year” for “the amounts described in clauses (ii) and (iii) over the aggregate housing credit dollar amount allocated for such year” in concluding provisions. - § 42(m)(1)(B)(ii)(II), § 42(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. - § 45(c)(3): Pub. L. 107–147 substituted “2004” for “2002” in subpars. (A) to (C). ## § 45A: Indian employment credit - § 45A(f): Pub. L. 107–147 substituted “December 31, 2004” for “December 31, 2003”. ## § 45E: Small employer pension plan startup costs - § 45E(e)(1): Pub. L. 107–147 substituted “subsection (m)” for “subsection (n)”. ## § 45F: Employer-provided child care credit - § 45F(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 - § 51(c)(4): Pub. L. 107–147 substituted “2003” for “2001”. ## § 56: Adjustments in computing alternative minimum taxable income - § 56(a)(1)(A)(ii): Pub. L. 107–147, § 417(5), substituted “such section 1250” for “such 1250” in concluding provisions. - § 56(d)(1)(A): Pub. L. 107–147, § 102(c)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “the amount of such deduction shall not exceed 90 percent of alternate minimum taxable income determined without regard to such deduction, and”. ## § 62: Adjusted gross income defined - § 62(a)(2)(D): Pub. L. 107–147, § 406(a), added subpar. (D). - § 62(d): Pub. L. 107–147, § 406(b), added subsec. (d). ## § 63: Taxable income defined - § 63(c)(2): Pub. L. 107–147, § 411(e)(1)(E), inserted “If any amount determined under subparagraph (A) is not a multiple of $50, such amount shall be rounded to the next lowest multiple of $50.” at end. - § 63(c)(2)(A): Pub. L. 107–147, § 411(e)(1)(A), substituted “subparagraph (D)” for “subparagraph (C)”. - § 63(c)(2)(B): Pub. L. 107–147, § 411(e)(1)(B), struck out “or” at end. - § 63(c)(2)(C), § 63(c)(2): Pub. L. 107–147, § 411(e)(1)(C), (D), added subpar. (C) and redesignated former subpar. (C) as (D). - § 63(c)(4): Pub. L. 107–147, § 411(e)(2)(C), which directed amendment by striking out the flush sentence at the end added by section 301(c)(2) of Public Law 107–17, was executed by striking out “The preceding sentence shall not apply to the amount referred to in paragraph (2)(A).”, which was inserted by section 301(c)(2) of Pub. L. 107–16, to reflect the probable intent of Congress. See 2001 Amendment note below. - § 63(c)(4): Pub. L. 107–147, § 411(e)(2)(A), substituted “paragraph (2)(B), (2)(D), or (5)” for “paragraph (2) or (5)” in introductory provisions. - § 63(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 - § 108(d)(7)(A): Pub. L. 107–147 inserted “, including by not taking into account under section 1366(a) any amount excluded under subsection (a) of this section” before period at end. ## § 131: Certain foster care payments - § 131(b)(1): Pub. L. 107–147, § 404(a), amended provisions preceding subpar. (B) generally. Prior to amendment, text of such provisions read as follows: “The term ‘qualified foster care payment’ means any amount— - § 131(b)(2)(B): Pub. L. 107–147, § 404(b), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “in the case of an individual who has not attained age 19, an organization which is licensed by a State (or political subdivision thereof) as a placement agency and which is described in section 501(c)(3) and exempt from tax under section 501(a).” - § 131(b)(3), § 131(b)(4): Pub. L. 107–147, § 404(c), added par. (3) and redesignated former par. (3) as (4). ## § 137: Adoption assistance programs - § 137(a): Pub. L. 107–147, § 411(c)(2)(A), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “Gross income of an employee does not include amounts paid or expenses incurred by the employer for adoption expenses in connection with the adoption of a child by an employee if such amounts are furnished pursuant to an adoption assistance program. The amount of the exclusion shall be— - § 137(b)(1): Pub. L. 107–147, § 411(c)(2)(B), as amended by Pub. L. 108–311, substituted “subsection (a)” for “subsection (a)(1)”. - § 137(f): Pub. L. 107–147, § 418(a)(2), inserted at end “If any amount as increased under the preceding sentence is not a multiple of $10, such amount shall be rounded to the nearest multiple of $10.” ## § 151: Allowance of deductions for personal exemptions - § 151(c): Pub. L. 107–147, § 417(6), inserted “as” before “such terms”. - § 151(c): Pub. L. 107–147, § 412(b), substituted “for principal place of abode requirements” for “for earned income credit” in heading, “An” for “For purposes of section 32, an” in introductory provisions, and “principal place of abode requirements of section 2(a)(1)(B), section 2(b)(1)(A), and section 32(c)(3)(A)(ii)” for “requirement of section 32(c)(3)(A)(ii)” in concluding provisions. ## § 168: Accelerated cost recovery system - § 168(j)(8): Pub. L. 107–147, § 613(b), substituted “December 31, 2004” for “December 31, 2003”. - § 168(k): Pub. L. 107–147, § 101(a), added subsec. (k). ## § 170: Charitable, etc., contributions and gifts - § 170(e)(6): Pub. L. 107–147, § 417(7), substituted “2000),” for “ 2000,”. - § 170(e)(6): Pub. L. 107–147, § 417(22), provided that the amendment made by section 165(b)(1) of the Community Renewal Tax Relief Act of 2000 [Pub. L. 106–554, § 1(a)(7)[title I, § 165(b)(1)]] shall be applied as if it struck “in any of the grades K–12”. See 2000 Amendment note below. ## § 172: Net operating loss deduction - § 172(b)(1): Pub. L. 107–147, § 417(8), substituted “3 taxable years” for “3 years” and “2 taxable years” for ‘2 years”. - § 172(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 - § 220(i)(2): Pub. L. 107–147, § 612(a), substituted “2003” for “2002” in subpars. (A) and (B). - § 220(i)(3)(B): Pub. L. 107–147, § 612(a), substituted “2003” for “2002” in heading and introductory provisions. - § 220(j)(2): Pub. L. 107–147, § 612(b)(1), substituted “1998, 1999, 2001, or 2002” for “1998, 1999, or 2001” wherever appearing in heading and text. - § 220(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 - § 280F(a)(1): Pub. L. 107–147 added cl. (iii). ## § 351: Transfer to corporation controlled by transferor - § 351(h)(1): Pub. L. 107–147 inserted comma after “liability”. ## § 358: Basis to distributees - § 358(h)(1)(A): Pub. L. 107–147 amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “which is assumed in exchange for such property, and”. ## § 401: Qualified pension, profit-sharing, and stock bonus plans - § 401(a)(30): Pub. L. 107–147, § 411(o)(2), substituted “402(g)(1)(A)” for “402(g)(1)”. - § 401(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 plan and” before “agrees”. ## § 402: Taxability of beneficiary of employees’ trust - § 402(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 amount transferred shall be treated as consisting first of the portion of such distribution that is includible in gross income (determined without regard to paragraph (1)).” - § 402(g)(1): Pub. L. 107–147, § 411(o)(1), added subpar. (C). - § 402(g)(7)(B): Pub. L. 107–147, § 411(p)(6), substituted “2001).” for “2001.” - § 402(h)(2)(A): Pub. L. 107–147, § 411(l)(3), substituted “25 percent” for “15 percent”. ## § 403: Taxation of employee annuities - § 403(b)(1): Pub. L. 107–147, § 411(p)(1), inserted concluding provisions and struck out former concluding provisions which read as follows: “then amounts contributed by such employer for such annuity contract on or after such rights become nonforfeitable shall be excluded from the gross income of the employee for the taxable year to the extent that the aggregate of such amounts does not exceed the applicable limit under section 415. The amount actually distributed to any distributee under such contract shall be taxable to the distributee (in the year in which so distributed) under section 72 (relating to annuities). For purposes of applying the rules of this subsection to amounts contributed by an employer for a taxable year, amounts transferred to a contract described in this paragraph by reason of a rollover contribution described in paragraph (8) of this subsection or section 408(d)(3)(A)(ii) shall not be considered contributed by such employer.” - § 403(b)(3): Pub. L. 107–147, § 411(p)(3), in first sentence, inserted “, and which precedes the taxable year by no more than five years” before period at end and, in second sentence, struck out “or any amount received by a former employee after the fifth taxable year following the taxable year in which such employee was terminated” after “this subsection applies”. - § 403(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 subsection and section 72(f) (relating to special rules for computing employees’ contributions to annuity contracts), if rights of the employee under an annuity contract described in subparagraphs (A) and (B) of paragraph (1) change from forfeitable to nonforfeitable rights, then the amount (determined without regard to this subsection) includible in gross income by reason of such change shall be treated as an amount contributed by the employer for such annuity contract as of the time such rights become nonforfeitable.” ## § 404: Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan - § 404(a)(1)(D): Pub. L. 107–147, § 411(s), substituted “Special rule for terminating plans” for “Plans maintained by professional service employers” in heading. - § 404(a)(7)(C): Pub. L. 107–147, § 411(l)(4), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “This paragraph shall not have the effect of reducing the amount otherwise deductible under paragraphs (1), (2), and (3), if no employee is a beneficiary under more than 1 trust or under a trust and an annuity plan.” - § 404(a)(12): Pub. L. 107–147, § 411(l)(1), substituted “(9) and subsection (h)(1)(C),” for “(9),”. - § 404(k)(1): Pub. L. 107–147, § 411(w)(1)(A), struck out “during the taxable year” after “such corporation”. - § 404(k)(2)(B): Pub. L. 107–147, § 411(w)(1)(B), substituted “(A)(iv)” for “(A)(iii)”. - § 404(k)(4)(B), § 404(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. (B), and redesignated former subpar. (B) as (C). - § 404(k)(7): Pub. L. 107–147, § 411(w)(2), added par. (7). - § 404(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 - § 408(k)(2)(C): Pub. L. 107–147, § 411(j)(1)(A), substituted “$450” for “$300”. - § 408(k)(8): Pub. L. 107–147, § 411(j)(1)(B), substituted “$450” for “$300” in two places. - § 408(q)(3)(A): Pub. L. 107–147, § 411(i)(1), reenacted heading without change and amended text of subpar. (A) generally. Prior to amendment, text read as follows: “The term ‘qualified employer plan’ has the meaning given such term by section 72(p)(4); except such term shall not include a government plan which is not a qualified plan unless the plan is an eligible deferred compensation plan (as defined in section 457(b)).” ## § 409: Qualifications for tax credit employee stock ownership plans - § 409(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 - § 412(c): Pub. L. 107–147, § 411(v)(1)(A), substituted “100 percent” for “125 percent”. - § 412(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 - § 414(v)(2)(D): Pub. L. 107–147, § 411(o)(3), added subpar. (D). - § 414(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 without regard to section 457(b)(3))” for “section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k), 408(p), 415, or 457”. - § 414(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 416” for “section 401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 403(b)(12), 408(k), 408(p), 408B, 410(b), or 416”. - § 414(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 410(b)(6)(C) shall not be treated as a plan of the employer until the expiration of the transition period with respect to such plan (as determined under clause (ii) of such section)”. - § 414(v)(5): Pub. L. 107–147, § 411(o)(7)(A), struck out “, with respect to any plan year,” before “a participant” in introductory provisions. - § 414(v)(5)(A): Pub. L. 107–147, § 411(o)(7)(B), amended subpar. (A) generally. Prior to amendment, subpar (A) read as follows: “who has attained the age of 50 before the close of the plan year, and”. - § 414(v)(5)(B): Pub. L. 107–147, § 411(o)(7)(C), substituted “plan (or other applicable) year” for “plan year”. - § 414(v)(6)(C): Pub. L. 107–147, § 411(o)(8), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “This subsection shall not apply to an applicable employer plan described in subparagraph (A)(iii) for any year to which section 457(b)(3) applies.” ## § 415: Limitations on benefits and contribution under qualified plans - § 415(c)(7): Pub. L. 107–147 amended heading and text of par. (7) generally, substituting provisions relating to special rules relating to church plans for provisions relating to certain contributions by church plans not treated as exceeding limit and adding provisions relating to foreign missionaries and definitions of “church” and “convention or association of churches”. ## § 416: Special rules for top-heavy plans - § 416(c)(1)(C)(iii): Pub. L. 107–147, § 411(k)(1), substituted “Exception for plan under which no key employee (or former key employee) benefits for plan year” for “Exception for frozen plan” in heading. - § 416(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 - § 417(e)(1): Pub. L. 107–147, § 411(r)(1)(A), substituted “exceed the amount that can be distributed without the participant’s consent under section 411(a)(11)” for “exceed the dollar limit under section 411(a)(11)(A)”. - § 417(e)(2)(A): Pub. L. 107–147, § 411(r)(1)(B), substituted “exceeds the amount that can be distributed without the participant’s consent under section 411(a)(11)” for “exceeds the dollar limit under section 411(a)(11)(A)”. ## § 448: Limitation on use of cash method of accounting - § 448(d)(5): Pub. L. 107–147 amended heading and text of par. (5) generally. Prior to amendment, text read as follows: “In the case of any person using an accrual method of accounting with respect to amounts to be received for the performance of services by such person, such person shall not be required to accrue any portion of such amounts which (on the basis of experience) will not be collected. This paragraph shall not apply to any amount if interest is required to be paid on such amount or there is any penalty for failure to timely pay such amount.” ## § 457: Deferred compensation plans of State and local governments and tax-exempt organizations - § 457(e)(5): Pub. L. 107–147, § 411(p)(5), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The term ‘includible compensation’ means compensation for service performed for the employer which (taking into account the provisions of this section and other provisions of this chapter) is currently includible in gross income.” - § 457(e)(18): Pub. L. 107–147, § 411(o)(9), added par. (18). ## § 469: Passive activity losses and credits limited - § 469(i)(3)(E)(ii), § 469(i)(3)(E)(iii), § 469(i)(3)(E)(iv): Pub. L. 107–147 added cls. (ii) to (iv) and struck out former cls. (ii) to (iv) which read as follows: ## § 475: Mark to market accounting method for dealers in securities - § 475(g)(3): Pub. L. 107–147 substituted “described in section” for “described in sections”. ## § 529: Qualified tuition programs - § 529(e)(3)(B)(i): Pub. L. 107–147 substituted “subsection (b)(6)” for “subsection (b)(7)”. ## § 530: Coverdell education savings accounts - § 530(d)(4)(B)(iv): Pub. L. 107–147 substituted “by application of paragraph (2)(C)(i)(II)” for “because the taxpayer elected under paragraph (2)(C) to waive the application of paragraph (2)”. ## § 613A: Limitations on percentage depletion in case of oil and gas wells - § 613A(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 - § 857(b)(7)(B)(i): Pub. L. 107–147, § 417(13), substituted “section 856(d)” for “subsection 856(d)”. - § 857(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”. - § 857(b)(7)(C): Pub. L. 107–147, § 413(a)(2), substituted “to the extent the amount” for “if the amount”. ## § 904: Limitation on credit - § 904(h): Pub. L. 107–147, § 601(b)(1), substituted “during 2000, 2001, 2002, or 2003” for “during 2000 or 2001”. - § 904(h): Pub. L. 107–147, § 417(23)(B), amended directory language of Pub. L. 107–16, § 618(b)(2)(D). See 2001 Amendment note below. ## § 953: Insurance income - § 953(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 - § 954(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 that section as if the amendment were retroactive to the effective date of the amendment by Pub. L. 106–170 to reflect the probable intent of Congress. See 1999 Amendment note below. - § 954(h): Pub. L. 107–147, § 614(a)(2), substituted “January 1, 2007” for “January 1, 2002”. - § 954(i)(4)(B): Pub. L. 107–147, § 614(b)(1), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “The amount of the reserve of a qualifying insurance company or qualifying insurance company branch for any life insurance or annuity contract shall be equal to the greater of— ## § 995: Taxation of DISC income to shareholders - § 995(b)(3)(B): Pub. L. 107–147 substituted “Arms Export Control Act” for “International Security Assistance and Arms Export Control Act of 1976”. ## § 1091: Loss from wash sales of stock or securities - § 1091(e): Pub. L. 107–147 substituted “securities and securities futures contracts to sell” for “securities” in heading, inserted “(or the sale, exchange, or termination of a securities futures contract to sell)” after “closing of a short sale of” in introductory provisions and “(or securities futures contracts to sell)” after “short sale of” in par. (2), and inserted concluding provisions. ## § 1221: Capital asset defined - § 1221(b)(1)(B)(i): Pub. L. 107–147 substituted “1256(b)))” for “1256(b))”. ## § 1233: Gains and losses from short sales - § 1233(e)(2)(E): Pub. L. 107–147 added subpar. (E). ## § 1234A: Gains or losses from certain terminations - § 1234A(1), § 1234A(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 read as follows: “a securities futures contract (as so defined) which is a capital asset in the hands of the taxpayer,”. ## § 1234B: Gains or losses from securities futures contracts - § 1234B(a)(1): Pub. L. 107–147, § 412(d)(1)(B)(i), substituted “sale, exchange, or termination of a securities futures contract” for “sale or exchange of a securities futures contract”. - § 1234B(b): Pub. L. 107–147, § 412(d)(1)(B)(i), (3)(B), inserted “or in section 1233,” after “or this section,” and substituted “sale, exchange, or termination of a securities futures contract” for “sale or exchange of a securities futures contract”. - § 1234B(f): Pub. L. 107–147, § 412(d)(1)(B)(ii), added subsec. (f). ## § 1256: Section 1256 contracts marked to market - § 1256(f)(5): Pub. L. 107–147 added par. (5). ## § 1394: Tax-exempt enterprise zone facility bonds - § 1394(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 foreign country,”. ## § 2101: Tax imposed - § 2101(b): Pub. L. 107–147 struck out concluding provisions which read as follows: “For purposes of the preceding sentence, there shall be appropriate adjustments in the application of section 2001(c)(2) to reflect the difference between the amount of the credit provided under section 2102(c) and the amount of the credit provided under section 2010.” ## § 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 - § 3304(a)(4)(B): Pub. L. 107–147 inserted “or 903(d)(4)” before “of the Social Security Act”. ## § 3306: Definitions - § 3306(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 - § 4980F(e)(1): Pub. L. 107–147, § 411(u)(1)(A), substituted “the notice described in paragraph (2)” for “written notice”. - § 4980F(f)(2)(A): Pub. L. 107–147, § 411(u)(1)(B), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “any defined benefit plan, or”. - § 4980F(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 - § 6103(l)(8): Pub. L. 107–147, § 416(c)(1)(A), substituted “Federal, State, and local” for “State and local” in heading. - § 6103(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 - § 6105(c)(1)(C), § 6105(c)(1)(E): Pub. L. 107–147 struck out “any” after subpar. designation. ## § 6331: Levy and distraint - § 6331(k)(3): Pub. L. 107–147 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: “Rules similar to the rules of paragraphs (3) and (4) of subsection (i) shall apply for purposes of this subsection.” ## § 7652: Shipments to the United States - § 7652(f)(1): Pub. L. 107–147 substituted “January 1, 2004” for “January 1, 2002”. ## § 7702A: Modified endowment contract defined - § 7702A(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 section shall not apply to benefits for services furnished on or after December 31, 2002.”