Pub. L. 108-311 Oct. 4, 2004

118 Stat. 1167 · Changed 74 sections of the Code

Bill H.R. 1308 · Conference report H. Rept. 108-696 · Bluebook JCT general explanation (2005)

§ 1 Tax imposed

  • (f)(8) Pub. L. 108–311, § 101(c), amended par. (8) generally, substituting provisions relating to elimination of marriage…
  • (g)(7)(B)(ii)(II) Pub. L. 108–311, § 408(a)(1), substituted “10 percent” for “10 percent.”
  • (h)(1)(D) Pub. L. 108–311, § 402(a)(1), inserted “(determined without regard to paragraph (11))” after “net capital gain”.
  • (h)(6)(A)(ii)(I) Pub. L. 108–311, § 408(a)(2)(A), substituted “(4)(B)” for “(5)(B)”.
  • (h)(6)(A)(ii)(II) Pub. L. 108–311, § 408(a)(2)(B), substituted “(4)(A)” for “(5)(A)”.
  • (h)(11)(B)(iii)(I) Pub. L. 108–311, § 402(a)(2), substituted “substituting in section 246(c)” for “substituting in section 246(c)(1)”…
  • (h)(11)(D)(ii) Pub. L. 108–311, § 402(a)(3), substituted “a taxpayer to whom this section applies” for “an individual”.
  • (i)(1)(B)(i) Pub. L. 108–311, § 101(d)(1), struck out “($12,000 in the case of taxable years beginning after December 31, 2004, and…
  • (i)(1)(C) Pub. L. 108–311, § 101(d)(2), reenacted heading without change and amended text generally, substituting provisions…

§ 2 Definitions and special rules

  • (a)(1)(B) Pub. L. 108–311, § 207(1), inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof”…
  • (b)(1)(A)(i) Pub. L. 108–311, § 202(a), amended cl. (i) generally. Prior to amendment, cl. (i) read as follows: “a son, stepson…
  • (b)(2) Pub. L. 108–311, § 202(b)(1), redesignated subpars. (B) to (D) as (A) to (C), respectively, and struck out former…
  • (b)(3)(B)(i) (b)(3)(B)(ii) Pub. L. 108–311, § 202(b)(2), amended cls. (i) and (ii) generally. Prior to amendment, cls. (i) and (ii) read as…

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

  • (a)(1) Pub. L. 108–311, § 203(a), substituted “In the case of an individual for which there are 1 or more qualifying…
  • (b)(1) Pub. L. 108–311, § 203(b), reenacted heading without change and amended text generally. Prior to amendment, text read…
  • (e)(1) Pub. L. 108–311, § 203(c), amended heading and text of par. (1) generally. Prior to amendment, text read as follows…
  • (e)(5) Pub. L. 108–311, § 207(2), struck out “paragraph (2) or (4) of” before “section 152(e)” in subpar. (A) and substituted…
  • (e)(6)(B) Pub. L. 108–311, § 207(3), substituted “section 152(f)(1)” for “section 151(c)(3)”.

§ 24 Child tax credit

  • (a) Pub. L. 108–311, § 101(a), reenacted heading without change and amended text generally, substituting provisions…
  • (c)(1) Pub. L. 108–311, § 204(a), reenacted heading without change and amended text generally. Prior to amendment, text read…
  • (c)(2) Pub. L. 108–311, § 204(b), substituted “subparagraph (A) of section 152(b)(3)” for “the first sentence of section…
  • (d)(1) Pub. L. 108–311, § 104(a), inserted at end of concluding provisions “For purposes of subparagraph (B), any amount…
  • (d)(1)(B)(i) Pub. L. 108–311, § 102(a), struck out “(10 percent in the case of taxable years beginning before January 1, 2005)”…
  • (d)(2)(A)(iii) Pub. L. 108–311, § 408(b)(4), amended directory language of Pub. L. 107–90. See 2001 Amendment note below.

§ 25B Elective deferrals and IRA contributions by certain individuals

  • (c)(2)(B) Pub. L. 108–311 substituted “152(f)(2)” for “151(c)(4)”.

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

  • (a)(2) Pub. L. 108–311, § 312(a), substituted “rule for taxable years 2000 through 2005” for “rule for 2000, 2001, 2002, and…
  • (b)(2)(R) Pub. L. 108–311, § 408(a)(5)(A), substituted “Medicare Advantage MSA” for “Medicare+Choice MSA”.
  • (b)(2)(S) Pub. L. 108–311, § 401(a)(1), added subpar. (S).

§ 32 Earned income

  • (c)(1)(C) (c)(1)(D) (c)(1)(E) (c)(1) Pub. L. 108–311, § 205(b)(1), redesignated subpars. (D) to (G) as (C) to (F), respectively, and struck out former…
  • (c)(2)(B)(vi) Pub. L. 108–311, § 104(b), added cl. (vi).
  • (c)(3) Pub. L. 108–311, § 205(a), amended par. (3) generally, substituting subpars. (A) to (D) for former subpars. (A) to (E)…
  • (c)(4) Pub. L. 108–311, § 205(b)(2), substituted “(3)(C)” for “(3)(E)”.
  • (m) Pub. L. 108–311, § 205(b)(3), substituted “(c)(1)(E)” for “(c)(1)(F)”.

§ 35 Health insurance costs of eligible individuals

  • (g)(3) Pub. L. 108–311 amended heading and text of par. (3) generally. Prior to amendment, text read as follows: “Amounts…

§ 41 Credit for increasing research activities

  • (h)(1) Pub. L. 108–311 substituted “December 31, 2005” for “June 30, 2004”.

§ 42 Low-income housing credit

  • (d)(2)(D) Pub. L. 108–311, § 408(a)(3), substituted “section 179(d)(7)” for “section 179(b)(7)”.
  • (i)(3)(D)(ii)(I) Pub. L. 108–311, § 207(8), inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof”…

§ 45 Electricity produced from certain renewable resources, etc.

  • (c)(3) Pub. L. 108–311 substituted “January 1, 2006” for “January 1, 2004” in subpars. (A) to (C).

§ 45A Indian employment credit

  • (c)(3) Pub. L. 108–311, § 404(b)(1), inserted “, except that the base period taken into account for purposes of such…
  • (f) Pub. L. 108–311, § 315, substituted “December 31, 2005” for “December 31, 2004”.

§ 45C Clinical testing expenses for certain drugs for rare diseases or conditions

  • (b)(1) Pub. L. 108–311 substituted “December 31, 2005” for “June 30, 2004”.

§ 51 Amount of credit

  • (c)(4) Pub. L. 108–311, § 303(a)(1), substituted “2005” for “2003”.
  • (i)(1)(A) (i)(1)(B) Pub. L. 108–311, § 207(5)(A), substituted “subparagraphs (A) through (G) of section 152(d)(2)” for “paragraphs (1)…
  • (i)(1)(C) Pub. L. 108–311, § 207(5)(B), substituted “152(d)(2)(H)” for “152(a)(9)”.

§ 55 Alternative minimum tax imposed

  • (b)(3)(B) Pub. L. 108–311, § 406(d), substituted “an amount equal to the excess described in” for “the amount on which a tax is…
  • (d)(1)(A) (d)(1)(B) Pub. L. 108–311, § 103(a), substituted “2003, 2004, and 2005” for “2003 and 2004”.

§ 56 Adjustments in computing alternative minimum taxable income

  • (d)(1)(A)(i)(I) Pub. L. 108–311, § 403(b)(4)(A), struck out “attributable to carryovers” after “other than the deduction”.
  • (d)(1)(A)(ii)(I) Pub. L. 108–311, § 403(b)(4)(B), substituted “from taxable years” for “for taxable years” and “carryovers” for…

§ 62 Adjusted gross income defined

  • (a)(2)(D) Pub. L. 108–311 substituted “, 2003, 2004, or 2005” for “or 2003”.

§ 63 Taxable income defined

  • (c)(2) Pub. L. 108–311, § 101(b)(1), reenacted heading without change and amended text generally, substituting provisions…
  • (c)(4) Pub. L. 108–311, § 101(b)(2)(A), substituted “(2)(C)” for “(2)(D)” in introductory provisions and in subpar. (B)(i).
  • (c)(7) Pub. L. 108–311, § 101(b)(2)(B), struck out par. (7) which related to applicable percentage for purposes of par. (2).

§ 72 Annuities; certain proceeds of endowment and life insurance contracts

  • (e)(9) Pub. L. 108–311, § 408(b)(3), amended Pub. L. 107–22, § 1(b)(3)(A). See 2001 Amendment note below.
  • (f) Pub. L. 108–311, § 408(a)(4), substituted “Economic Growth and Tax Relief Reconciliation Act of 2001)” for “Economic…
  • (t)(2)(D)(i)(III) Pub. L. 108–311, § 207(6), inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof”…
  • (t)(7)(A)(iii) Pub. L. 108–311, § 207(7), substituted “152(f)(1)” for “151(c)(3)”.

§ 105 Amounts received under accident and health plans

  • (b) (c)(1) Pub. L. 108–311 inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof” after…

§ 125 Cafeteria plans

  • (e)(1)(D) Pub. L. 108–311 inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof” after…

§ 129 Dependent care assistance programs

  • (c)(2) Pub. L. 108–311 substituted “152(f)(1)” for “151(c)(3)”.

§ 132 Certain fringe benefits

  • (h)(2)(B) Pub. L. 108–311 substituted “152(f)(1)” for “151(c)(3)” in introductory provisions.

§ 137 Adoption assistance programs

  • (b)(1) Pub. L. 108–311 amended directory language of Pub. L. 107–147, § 411(c)(2)(B). See 2002 Amendment note below.

§ 138 Medicare Advantage MSA

  • § 138 Pub. L. 108–311, § 408(a)(5)(A)–(D), substituted “Medicare Advantage” for “Medicare+Choice” wherever appearing in…
  • (c)(2)(C)(i) Pub. L. 108–311, § 408(a)(5)(E), substituted “Medicare Advantage MSAs” for “Medicare+Choice MSAs”.
  • (f) Pub. L. 108–311, § 408(a)(5)(F), substituted “Medicare Advantage MSAs” for “Medicare+Choice MSA’s”.

§ 151 Allowance of deductions for personal exemptions

  • (c) Pub. L. 108–311 reenacted heading without change and amended text generally. Prior to amendment, text consisted of…

§ 152 Dependent defined

  • § 152 Pub. L. 108–311 reenacted section catchline without change and amended text generally. Prior to amendment, section…

§ 153 Cross references

  • (1) (2) (3) § 153 Pub. L. 108–311 redesignated pars. (2) to (4) as (1) to (3), respectively, and struck out former par. (1) which read as…

§ 165 Losses

  • (i)(1) (k) Pub. L. 108–311 inserted “Robert T. Stafford” before “Disaster Relief and Emergency Assistance Act”.

§ 168 Accelerated cost recovery system

  • (j)(8) Pub. L. 108–311, § 316, substituted “2005” for “2004”.
  • (k)(2)(B)(i) Pub. L. 108–311, § 403(a)(1), reenacted heading without change and amended text generally. Prior to amendment, text…
  • (k)(2)(D)(ii) Pub. L. 108–311, § 408(a)(6)(A), inserted “is” after “if property” in introductory provisions.
  • (k)(2)(D)(ii) Pub. L. 108–311, § 403(a)(2)(B), inserted “clause (iii) and” before “subparagraph (A)(ii)” in introductory provisions.
  • (k)(2)(D)(ii) Pub. L. 108–311, § 408(a)(6)(B), struck out “is” before “originally”.
  • (k)(2)(D) Pub. L. 108–311, § 403(a)(2)(A), added cls. (iii) and (iv).
  • (k)(2)(F) Pub. L. 108–311, § 408(a)(8), substituted “minimum” for “miniumum” in heading.

§ 170 Charitable, etc., contributions and gifts

  • (e)(6) Pub. L. 108–311, § 306(a), substituted “2005” for “2003”.
  • (g)(1) Pub. L. 108–311, § 207(15), inserted “(determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof)”…
  • (g)(3) Pub. L. 108–311, § 207(16), substituted “subparagraphs (A) through (G) of section 152(d)(2)” for “paragraphs (1)…

§ 172 Net operating loss deduction

  • (b)(1) Pub. L. 108–311 struck out “a taxpayer which has” after “In the case of”.

§ 198 Expensing of environmental remediation costs

  • (h) Pub. L. 108–311 substituted “2005” for “2003”.

§ 213 Medical, dental, etc., expenses

  • (a) Pub. L. 108–311, § 207(17), inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof”…
  • (d)(11) Pub. L. 108–311, § 207(18), substituted “subparagraphs (A) through (G) of section 152(d)(2)” for “paragraphs (1)…

§ 220 Archer MSAs

  • (d)(2)(A) Pub. L. 108–311, § 207(19), inserted “, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof”…
  • (i)(2) (i)(3)(B) Pub. L. 108–311, § 322(a), substituted “2005” for “2003” wherever appearing in headings and text.
  • (j)(2) Pub. L. 108–311, § 322(b)(1)(B), substituted “2002, or 2004” for “or 2002” in heading.
  • (j)(2)(A) (j)(2)(B) Pub. L. 108–311, § 322(b)(1)(A), substituted “2002, or 2004” for “or 2002” in introductory provisions.
  • (j)(2)(C) Pub. L. 108–311, § 322(b)(3), amended heading and text of subpar. (C) generally. Prior to amendment text read as…
  • (j)(4)(A) Pub. L. 108–311, § 322(b)(2), substituted “2002, and 2004” for “and 2002” in introductory provisions.

§ 221 Interest on education loans

  • (d)(4) Pub. L. 108–311, § 207(20), inserted “(determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof)”…
  • (f)(1) Pub. L. 108–311, § 408(b)(5), amended directory language of Pub. L. 107–16, § 412(b)(2). See 2001 Amendment note below.

§ 246 Rules applying to deductions for dividends received

  • (c)(1)(A) Pub. L. 108–311, § 406(f)(1), substituted “91-day period” for “90-day period”.
  • (c)(2)(B) Pub. L. 108–311, § 406(f)(2), substituted “181-day period” for “180-day period” and “91-day period” for “90-day period”.

§ 246A Dividends received deduction reduced where portfolio stock is debt financed

  • (b)(1) Pub. L. 108–311 substituted “section 243(d)(4)” for “section 243(c)(4)”.

§ 263 Capital expenditures

  • (g)(2)(B)(ii) Pub. L. 108–311 substituted “1276” for “1278”.

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

§ 403 Taxation of employee annuities

  • (a)(4)(B) Pub. L. 108–311, § 404(e), reenacted heading without change and amended text generally. Prior to amendment, text read…
  • (b)(7)(A)(ii) Pub. L. 108–311, § 408(a)(11), substituted “3121(a)(5)(D)” for “3121(a)(1)(D)”.

§ 408 Individual retirement accounts

  • (a)(1) Pub. L. 108–311, § 408(a)(12), substituted “457(e)(16),” for “457(e)(16)”.
  • (n)(2) Pub. L. 108–311, § 408(a)(13), substituted “paragraph (6) or (7) of section 101” for “section 101(6)”.
  • (p)(6)(A)(i) Pub. L. 108–311, § 404(d), inserted at end “For purposes of the preceding sentence, amounts described in section…

§ 411 Minimum vesting standards

  • (a)(12) Pub. L. 108–311 substituted “6 or more” for “6” in table.

§ 414 Definitions and special rules

  • (q)(7) Pub. L. 108–311 substituted “subsection” for “section”.

§ 415 Limitations on benefits and contribution under qualified plans

  • (c)(7)(C) Pub. L. 108–311, § 408(a)(17), substituted “subparagraph (B)” for “subparagraph (D)”.
  • (d)(4)(A) Pub. L. 108–311, § 404(b)(2), inserted at end “This subparagraph shall also apply for purposes of any provision of this…

§ 416 Special rules for top-heavy plans

  • (i)(1)(A) Pub. L. 108–311 substituted “In the case of plan years” for “in the case of plan years” in concluding provisions.

§ 529 Qualified tuition programs

  • (c)(5)(B) Pub. L. 108–311, § 406(a), reenacted heading without change and amended text generally. Prior to amendment, text read…
  • (e)(2)(B) Pub. L. 108–311, § 207(21), substituted “subparagraphs (A) through (G) of section 152(d)(2)” for “paragraphs (1)…

§ 530 Coverdell education savings accounts

  • (d)(2)(C)(i) Pub. L. 108–311, § 404(a), struck out “higher” after “qualified” in introductory provisions.
  • (d)(4)(B)(iii) Pub. L. 108–311, § 406(b), substituted “designated beneficiary” for “account holder”.

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

  • (c)(6) Pub. L. 108–311 substituted “2006” for “2004”.

§ 691 Recipients of income in respect of decedents

  • (c)(4) Pub. L. 108–311 struck out “of any gain” before “taken into account”.

§ 854 Limitations applicable to dividends received from regulated investment company

  • (b)(1)(B)(i) Pub. L. 108–311, § 402(a)(5)(A)(ii), reenacted heading without change and amended text generally. Prior to amendment…
  • (b)(1)(B) Pub. L. 108–311, § 402(a)(5)(A)(i), struck out cls. (iii) and (iv) which related to dividends from real estate…
  • (b)(1)(C) Pub. L. 108–311, § 402(a)(5)(B), amended heading and text of subpar. (C) generally. Prior to amendment, text read as…
  • (b)(2) Pub. L. 108–311, § 402(a)(5)(C), substituted “as qualified dividend income for purposes of section 1(h)(11) and as…
  • (b) Pub. L. 108–311, § 402(a)(5)(D), amended heading and text of par. (5) generally. Prior to amendment, text read as…

§ 857 Taxation of real estate investment trusts and their beneficiaries

  • (c)(2) Pub. L. 108–311, § 402(a)(5)(E), reenacted heading without change and amended text generally. Prior to amendment, text…

§ 901 Taxes of foreign countries and of possessions of United States

  • (k)(1)(A)(i) Pub. L. 108–311, § 406(g)(1), substituted “31-day period” for “30-day period”.
  • (k)(3)(B) Pub. L. 108–311, § 406(g)(2), substituted “91-day period” for “90-day period” and “31-day period” for “30-day period”.

§ 904 Limitation on credit

  • (h) Pub. L. 108–311 substituted “2003, 2004, or 2005” for “or 2003”.

§ 1033 Involuntary conversions

  • (h)(3) Pub. L. 108–311 inserted “Robert T. Stafford” before “Disaster Relief and Emergency Assistance Act”.

§ 1234B Gains or losses from securities futures contracts

  • (c) Pub. L. 108–311 inserted at end “The Secretary may prescribe regulations regarding the status of contracts the values…

§ 1256 Section 1256 contracts marked to market

  • (g)(6) Pub. L. 108–311 added at end of concluding provisions “The Secretary may prescribe regulations regarding the status of…

§ 1259 Constructive sales treatment for appreciated financial positions

  • (c)(2) Pub. L. 108–311, § 406(e)(1), substituted “A taxpayer shall not be treated as having made a constructive sale solely…
  • (c)(3)(A) Pub. L. 108–311, § 406(e)(2), substituted “cause a constructive sale” for “be treated as a constructive sale” in…
  • (c)(3)(A)(i) Pub. L. 108–311, § 406(e)(3), substituted “on or before” for “before the end of”.
  • (c)(3)(B) Pub. L. 108–311, § 406(e)(7), substituted “certain closed transactions where risk of loss on appreciated financial…
  • (c)(3)(B)(i) Pub. L. 108–311, § 406(e)(2), substituted “cause a constructive sale” for “be treated as a constructive sale”.
  • (c)(3)(B)(ii) Pub. L. 108–311, § 406(e)(4), struck out “substantially similar” after “another” in introductory provisions.
  • (c)(3)(B)(ii)(I) Pub. L. 108–311, § 406(e)(5), amended subcl. (I) generally. Prior to amendment, subcl. (I) read as follows: “which also…
  • (c)(3)(B)(ii)(II) Pub. L. 108–311, § 406(e)(6), inserted “on or” before “before the 30th day”.

§ 1296 Election of mark to market for marketable stock

  • (h) Pub. L. 108–311 substituted “section 851(b)(2)” for “paragraphs (2) and (3) of section 851(b)”.

§ 1377 Definitions and special rule

  • (b)(3) Pub. L. 108–311 added par. (3).

§ 2032A Valuation of certain farm, etc., real property

  • (c)(7)(D) Pub. L. 108–311 substituted “section 152(f)(2)” for “section 151(c)(4)”.

§ 4972 Tax on nondeductible contributions to qualified employer plans

  • (c)(6) Pub. L. 108–311, § 408(b)(9), amended directory language of Pub. L. 107–16, § 652(b)(3). See 2001 Amendment note below.
  • (c)(6)(A) Pub. L. 108–311, § 404(c), amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “the sum of—

§ 4973 Tax on excess contributions to certain tax-favored accounts and annuities

  • (c) Pub. L. 108–311 substituted “subsection (a)(3)” for “subsection (a)(2)” in introductory provisions.

§ 4978 Tax on certain dispositions by employee stock ownership plans and certain cooperatives

  • (a)(2) Pub. L. 108–311 substituted “(60 percent” for “60 percent”.

§ 5064 Losses resulting from disaster, vandalism, or malicious mischief

  • (b)(3) Pub. L. 108–311 inserted “Robert T. Stafford” before “Disaster Relief and Emergency Assistance Act” in introductory…

§ 5708 Losses caused by disaster

  • (a) Pub. L. 108–311 inserted “Robert T. Stafford” before “Disaster Relief and Emergency Assistance Act”.

§ 6103 Confidentiality and disclosure of returns and return information

  • (d)(5) Pub. L. 108–311, § 311(a), amended heading and text generally. Prior to amendment, text read as follows: “The Secretary…
  • (i)(3)(C) Pub. L. 108–311, § 320(a), substituted “December 31, 2005” for “December 31, 2003”.
  • (i)(7)(A)(v) Pub. L. 108–311, § 320(b), added cl. (v).
  • (i)(7) Pub. L. 108–311, § 320(a), substituted “December 31, 2005” for “December 31, 2003”.
  • (l)(13)(D) Pub. L. 108–311, § 317, substituted “December 31, 2005” for “December 31, 2004”.
  • (p)(4) Pub. L. 108–311, § 408(a)(24), which directed substitution of “subsection (l)(16) or (18)” for “subsection (l)(16) or…

§ 7652 Shipments to the United States

  • (f)(1) Pub. L. 108–311 substituted “January 1, 2006” for “January 1, 2004”.

§ 7701 Definitions

  • (a)(17) Pub. L. 108–311 substituted “682” for “152(b)(4), 682,”.

§ 7702B Treatment of qualified long-term care insurance

  • (f)(2)(C)(iii) Pub. L. 108–311 substituted “subparagraphs (A) through (G) of section 152(d)(2)” for “paragraphs (1) through (8) of…

§ 7703 Determination of marital status

  • (b)(1) Pub. L. 108–311 substituted “152(f)(1)” for “151(c)(3)” and struck out “paragraph (2) or (4) of” before “section…

§ 8021 Powers

  • § 8021 Pub. L. 108–311 substituted “2005” for “2004”.

§ 8022 Duties

  • (3) Pub. L. 108–311 substituted “2005” for “2004” and “with respect to the matters addressed in the joint review referred…

§ 9812 Parity in mental health and substance use disorder benefits

  • § 9812 Pub. L. 108–311 added pars. (2) and (3) and struck out former par. (2) which read as follows: “after December 31, 2003.”