Text: H.R.1308 — 108th Congress (2003-2004)All Bill Information (Except Text)

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Public Law No: 108-311 (10/04/2004)

 
[108th Congress Public Law 311]
[From the U.S. Government Printing Office]


[DOCID: f:publ311.108]

[[Page 1165]]

                 WORKING FAMILIES TAX RELIEF ACT OF 2004

[[Page 118 STAT. 1166]]

Public Law 108-311
108th Congress

                                 An Act


 
  To amend the Internal Revenue Code of 1986 to provide tax relief for 
working families, and for other purposes. <<NOTE: Oct. 4, 2004 -  [H.R. 
                                1308]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Working Families 
Tax Relief Act of 2004.>> 

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) <<NOTE: 26 USC 1 note.>>  Short Title.--This Act may be cited as 
the ``Working Families Tax Relief Act of 2004''.

    (b) Amendment of 1986 Code.--Except as otherwise expressly provided, 
whenever in this Act 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.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

               TITLE I--EXTENSION OF FAMILY TAX PROVISIONS

Sec. 101. Repeal of scheduled reductions in child tax credit, marriage 
           penalty relief, and 10-percent rate bracket.
Sec. 102. Acceleration of increase in refundability of the child tax 
           credit.
Sec. 103. 1-year extension of minimum tax relief to individuals.
Sec. 104. Earned income includes combat pay.
Sec. 105. Application of EGTRRA sunset to this title.

                  TITLE II--UNIFORM DEFINITION OF CHILD

Sec. 201. Uniform definition of child, etc.
Sec. 202. Modifications of definition of head of household.
Sec. 203. Modifications of dependent care credit.
Sec. 204. Modifications of child tax credit.
Sec. 205. Modifications of earned income credit.
Sec. 206. Modifications of deduction for personal exemption for 
           dependents.
Sec. 207. Technical and conforming amendments.
Sec. 208. Effective date.

          TITLE III--EXTENSIONS OF CERTAIN EXPIRING PROVISIONS

Sec. 301. Research credit.
Sec. 302. Parity in the application of certain limits to mental health 
           benefits.
Sec. 303. Work opportunity credit and welfare-to-work credit.
Sec. 304. Qualified zone academy bonds.
Sec. 305. Cover over of tax on distilled spirits.
Sec. 306. Deduction for corporate donations of scientific property and 
           computer technology.
Sec. 307. Deduction for certain expenses of school teachers.
Sec. 308. Expensing of environmental remediation costs.
Sec. 309. Certain New York Liberty Zone benefits.
Sec. 310. Tax incentives for investment in the District of Columbia.
Sec. 311. Disclosure of tax information to facilitate combined 
           employment tax reporting.

[[Page 118 STAT. 1167]]

Sec. 312. Allowance of nonrefundable personal credits against regular 
           and minimum tax liability.
Sec. 313. Credit for electricity produced from certain renewable 
           resources.
Sec. 314. Taxable income limit on percentage depletion for oil and 
           natural gas produced from marginal properties.
Sec. 315. Indian employment tax credit.
Sec. 316. Accelerated depreciation for business property on Indian 
           reservation.
Sec. 317. Disclosure of return information relating to student loans.
Sec. 318. Elimination of phaseout of credit for qualified electric 
           vehicles for 2004 and 2005.
Sec. 319. Elimination of phaseout for deduction for clean-fuel vehicle 
           property for 2004 and 2005.
Sec. 320. Disclosures relating to terrorist activities.
Sec. 321. Joint review of strategic plans and budget for the Internal 
           Revenue Service.
Sec. 322. Availability of medical savings accounts.

                   TITLE IV--TAX TECHNICAL CORRECTIONS

Sec. 401. Amendments related to Medicare Prescription Drug, Improvement, 
           and Modernization Act of 2003.
Sec. 402. Amendments related to Jobs and Growth Tax Relief 
           Reconciliation Act of 2003.
Sec. 403. Amendments related to Job Creation and Worker Assistance Act 
           of 2002.
Sec. 404. Amendments related to Economic Growth and Tax Relief 
           Reconciliation Act of 2001.
Sec. 405. Amendments related to Community Renewal Tax Relief Act of 
           2000.
Sec. 406. Amendments related to Taxpayer Relief Act of 1997.
Sec. 407. Amendments related to Small Business Job Protection Act of 
           1996.
Sec. 408. Clerical amendments.

               TITLE I--EXTENSION OF FAMILY TAX PROVISIONS

SEC. 101. REPEAL OF SCHEDULED REDUCTIONS IN CHILD TAX CREDIT, MARRIAGE 
            PENALTY RELIEF, AND 10-PERCENT RATE BRACKET.

    (a) Child Tax Credit.--Subsection (a) of section 24 (relating to 
child tax credit) is amended to read as follows:
    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year with 
respect to each qualifying child of the taxpayer an amount equal to 
$1,000.''.
    (b) Marriage Penalty Relief in Standard Deduction.--
            (1) In general.--Paragraph (2) of section 63(c) (relating to 
        basic standard deduction) is amended to read as follows:
            ``(2) Basic standard deduction.--For purposes of paragraph 
        (1), the basic standard deduction is--
                    ``(A) 200 percent of the dollar amount in effect 
                under subparagraph (C) for the taxable year in the case 
                of--
                          ``(i) a joint return, or
                          ``(ii) a surviving spouse (as defined in 
                      section 2(a)),
                    ``(B) $4,400 in the case of a head of household (as 
                defined in section 2(b)), or
                    ``(C) $3,000 in any other case.''.
            (2) Conforming amendments.--
                    (A) Section 63(c)(4) is amended by striking 
                ``(2)(D)'' each place it occurs and inserting 
                ``(2)(C)''.
                    (B) Section 63(c) is amended by striking paragraph 
                (7).

    (c) Marriage Penalty Relief in 15-percent Income Tax Bracket.--
Paragraph (8) of section 1(f) <<NOTE: 26 USC 1.>> is amended to read as 
follows:

[[Page 118 STAT. 1168]]

            ``(8) Elimination of marriage penalty in 15-percent 
        bracket.--With respect to taxable years beginning after December 
        31, 2003, in prescribing the tables under paragraph (1)--
                    ``(A) the maximum taxable income in the 15-percent 
                rate bracket in the table contained in subsection (a) 
                (and the minimum taxable income in the next higher 
                taxable income bracket in such table) shall be 200 
                percent of the maximum taxable income in the 15-percent 
                rate bracket in the table contained in subsection (c) 
                (after any other adjustment under this subsection), and
                    ``(B) the comparable taxable income amounts in the 
                table contained in subsection (d) shall be \1/2\ of the 
                amounts determined under subparagraph (A).''.

    (d) 10-Percent Rate Bracket.--
            (1) In general.--Clause (i) of section 1(i)(1)(B) is amended 
        by striking ``($12,000 in the case of taxable years beginning 
        after December 31, 2004, and before January 1, 2008)''.
            (2) Inflation adjustment.--Subparagraph (C) of section 
        1(i)(1) is amended to read as follows:
                    ``(C) Inflation adjustment.--In prescribing the 
                tables under subsection (f) which apply with respect to 
                taxable years beginning in calendar years after 2003--
                          ``(i) the cost-of-living adjustment shall be 
                      determined under subsection (f)(3) by substituting 
                      `2002' for `1992' in subparagraph (B) thereof, and
                          ``(ii) the adjustments under clause (i) shall 
                      not apply to the amount referred to in 
                      subparagraph (B)(iii).
                If any amount after adjustment under the preceding 
                sentence is not a multiple of $50, such amount shall be 
                rounded to the next lowest multiple of $50.''.

    (e) <<NOTE: 26 USC 1 note.>> Effective Date.--The amendments made by 
this section shall apply to taxable years beginning after December 31, 
2003.

SEC. 102. ACCELERATION OF INCREASE IN REFUNDABILITY OF THE CHILD TAX 
            CREDIT.

    (a) Acceleration of Refundability.--Section 24(d)(1)(B)(i) (relating 
to portion of credit refundable) is amended by striking ``(10 percent in 
the case of taxable years beginning before January 1, 2005)''.
    (b) <<NOTE: 26 USC 24 note.>> Effective Date.--The amendment made by 
this section shall apply to taxable years beginning after December 31, 
2003.

SEC. 103. EXTENSION OF MINIMUM TAX RELIEF TO INDIVIDUALS.

    (a) In General.--Subparagraphs (A) and (B) of section 55(d)(1) of 
the Internal Revenue Code of 1986 (relating to exemption amount for 
taxpayers other than corporations) are each amended by striking ``2003 
and 2004'' and inserting ``2003, 2004, and 2005''.
    (b) <<NOTE: 26 USC 55 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2004.

SEC. 104. EARNED INCOME INCLUDES COMBAT PAY.

    (a) Child Tax Credit.--Section 24(d)(1) (relating to portion of 
credit refundable) is amended by adding at the end the following new 
sentence: ``For purposes of subparagraph (B), any amount excluded from 
gross income by reason of section 112 shall be treated

[[Page 118 STAT. 1169]]

as earned income which is taken into account in computing taxable income 
for the taxable year.''.
    (b) Earned Income Credit.--Subparagraph (B) of section 32(c)(2) 
(relating to earned income) is amended--
            (1) by striking ``and'' at the end of clause (iv),
            (2) by striking the period at the end of clause (v) and 
        inserting ``, and'', and
            (3) by adding at the end the following:
                          ``(vi) in the case of any taxable year 
                      ending--
                                    ``(I) after the date of the 
                                enactment of this clause, and
                                    ``(II) before January 1, 2006,
                      a taxpayer may elect to treat amounts excluded 
                      from gross income by reason of section 112 as 
                      earned income.''.

    (c) Effective Date.--
            (1) <<NOTE: 26 USC 24 note.>> Child tax credit.--The 
        amendment made by subsection (a) shall apply to taxable years 
        beginning after December 31, 2003.
            (2) <<NOTE: 26 USC 32 note.>> Earned income credit.--The 
        amendments made by subsection (b) shall apply to taxable years 
        ending after the date of the enactment of this Act.

SEC. 105. APPLICATION OF EGTRRA SUNSET TO THIS TITLE. <<NOTE: 26 USC 1 
            note.>> 

    Each amendment made by this title shall be subject to title IX of 
the Economic Growth and Tax Relief Reconciliation Act of 2001 to the 
same extent and in the same manner as the provision of such Act to which 
such amendment relates.

                  TITLE II--UNIFORM DEFINITION OF CHILD

SEC. 201. UNIFORM DEFINITION OF CHILD, ETC.

    Section 152 is amended to read as follows:

``SEC. 152. DEPENDENT DEFINED.

    ``(a) In General.--For purposes of this subtitle, the term 
`dependent' means--
            ``(1) a qualifying child, or
            ``(2) a qualifying relative.

    ``(b) Exceptions.--For purposes of this section--
            ``(1) Dependents ineligible.--If an individual is a 
        dependent of a taxpayer for any taxable year of such taxpayer 
        beginning in a calendar year, such individual shall be treated 
        as having no dependents for any taxable year of such individual 
        beginning in such calendar year.
            ``(2) Married dependents.--An individual shall not be 
        treated as a dependent of a taxpayer under subsection (a) if 
        such individual has made a joint return with the individual's 
        spouse under section 6013 for the taxable year beginning in the 
        calendar year in which the taxable year of the taxpayer begins.
            ``(3) Citizens or nationals of other countries.--
                    ``(A) In general.--The term `dependent' does not 
                include an individual who is not a citizen or national 
                of the United States unless such individual is a 
                resident

[[Page 118 STAT. 1170]]

                of the United States or a country contiguous to the 
                United States.
                    ``(B) Exception for adopted child.--Subparagraph (A) 
                shall not exclude any child of a taxpayer (within the 
                meaning of subsection (f)(1)(B)) from the definition of 
                `dependent' if--
                          ``(i) for the taxable year of the taxpayer, 
                      the child has the same principal place of abode as 
                      the taxpayer and is a member of the taxpayer's 
                      household, and
                          ``(ii) the taxpayer is a citizen or national 
                      of the United States.

    ``(c) Qualifying Child.--For purposes of this section--
            ``(1) In general.--The term `qualifying child' means, with 
        respect to any taxpayer for any taxable year, an individual--
                    ``(A) who bears a relationship to the taxpayer 
                described in paragraph (2),
                    ``(B) who has the same principal place of abode as 
                the taxpayer for more than one-half of such taxable 
                year,
                    ``(C) who meets the age requirements of paragraph 
                (3), and
                    ``(D) who has not provided over one-half of such 
                individual's own support for the calendar year in which 
                the taxable year of the taxpayer begins.
            ``(2) Relationship.--For purposes of paragraph (1)(A), an 
        individual bears a relationship to the taxpayer described in 
        this paragraph if such individual is--
                    ``(A) a child of the taxpayer or a descendant of 
                such a child, or
                    ``(B) a brother, sister, stepbrother, or stepsister 
                of the taxpayer or a descendant of any such relative.
            ``(3) Age requirements.--
                    ``(A) In general.--For purposes of paragraph (1)(C), 
                an individual meets the requirements of this paragraph 
                if such individual--
                          ``(i) has not attained the age of 19 as of the 
                      close of the calendar year in which the taxable 
                      year of the taxpayer begins, or
                          ``(ii) is a student who has not attained the 
                      age of 24 as of the close of such calendar year.
                    ``(B) Special rule for disabled.--In the case of an 
                individual who is permanently and totally disabled (as 
                defined in section 22(e)(3)) at any time during such 
                calendar year, the requirements of subparagraph (A) 
                shall be treated as met with respect to such individual.
            ``(4) Special rule relating to 2 or more claiming qualifying 
        child.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), if (but for this paragraph) an 
                individual may be and is claimed as a qualifying child 
                by 2 or more taxpayers for a taxable year beginning in 
                the same calendar year, such individual shall be treated 
                as the qualifying child of the taxpayer who is--
                          ``(i) a parent of the individual, or
                          ``(ii) if clause (i) does not apply, the 
                      taxpayer with the highest adjusted gross income 
                      for such taxable year.

[[Page 118 STAT. 1171]]

                    ``(B) More than 1 parent claiming qualifying 
                child.--If the parents claiming any qualifying child do 
                not file a joint return together, such child shall be 
                treated as the qualifying child of--
                          ``(i) the parent with whom the child resided 
                      for the longest period of time during the taxable 
                      year, or
                          ``(ii) if the child resides with both parents 
                      for the same amount of time during such taxable 
                      year, the parent with the highest adjusted gross 
                      income.

    ``(d) Qualifying Relative.--For purposes of this section--
            ``(1) In general.--The term `qualifying relative' means, 
        with respect to any taxpayer for any taxable year, an 
        individual--
                    ``(A) who bears a relationship to the taxpayer 
                described in paragraph (2),
                    ``(B) whose gross income for the calendar year in 
                which such taxable year begins is less than the 
                exemption amount (as defined in section 151(d)),
                    ``(C) with respect to whom the taxpayer provides 
                over one-half of the individual's support for the 
                calendar year in which such taxable year begins, and
                    ``(D) who is not a qualifying child of such taxpayer 
                or of any other taxpayer for any taxable year beginning 
                in the calendar year in which such taxable year begins.
            ``(2) Relationship.--For purposes of paragraph (1)(A), an 
        individual bears a relationship to the taxpayer described in 
        this paragraph if the individual is any of the following with 
        respect to the taxpayer:
                    ``(A) A child or a descendant of a child.
                    ``(B) A brother, sister, stepbrother, or stepsister.
                    ``(C) The father or mother, or an ancestor of 
                either.
                    ``(D) A stepfather or stepmother.
                    ``(E) A son or daughter of a brother or sister of 
                the taxpayer.
                    ``(F) A brother or sister of the father or mother of 
                the taxpayer.
                    ``(G) A son-in-law, daughter-in-law, father-in-law, 
                mother-in-law, brother-in-law, or sister-in-law.
                    ``(H) An individual (other than an individual who at 
                any time during the taxable year was the spouse, 
                determined without regard to section 7703, of the 
                taxpayer) who, for the taxable year of the taxpayer, has 
                the same principal place of abode as the taxpayer and is 
                a member of the taxpayer's household.
            ``(3) Special rule relating to multiple support 
        agreements.--For purposes of paragraph (1)(C), over one-half of 
        the support of an individual for a calendar year shall be 
        treated as received from the taxpayer if--
                    ``(A) no one person contributed over one-half of 
                such support,
                    ``(B) over one-half of such support was received 
                from 2 or more persons each of whom, but for the fact 
                that any such person alone did not contribute over one-
                half of such support, would have been entitled to claim 
                such individual as a dependent for a taxable year 
                beginning in such calendar year,

[[Page 118 STAT. 1172]]

                    ``(C) the taxpayer contributed over 10 percent of 
                such support, and
                    ``(D) each person described in subparagraph (B) 
                (other than the taxpayer) who contributed over 10 
                percent of such support files a written declaration (in 
                such manner and form as the Secretary may by regulations 
                prescribe) that such person will not claim such 
                individual as a dependent for any taxable year beginning 
                in such calendar year.
            ``(4) Special rule relating to income of handicapped 
        dependents.--
                    ``(A) In general.--For purposes of paragraph (1)(B), 
                the gross income of an individual who is permanently and 
                totally disabled (as defined in section 22(e)(3)) at any 
                time during the taxable year shall not include income 
                attributable to services performed by the individual at 
                a sheltered workshop if--
                          ``(i) the availability of medical care at such 
                      workshop is the principal reason for the 
                      individual's presence there, and
                          ``(ii) the income arises solely from 
                      activities at such workshop which are incident to 
                      such medical care.
                    ``(B) Sheltered workshop defined.--For purposes of 
                subparagraph (A), the term `sheltered workshop' means a 
                school--
                          ``(i) which provides special instruction or 
                      training designed to alleviate the disability of 
                      the individual, and
                          ``(ii) which is operated by an organization 
                      described in section 501(c)(3) and exempt from tax 
                      under section 501(a), or by a State, a possession 
                      of the United States, any political subdivision of 
                      any of the foregoing, the United States, or the 
                      District of Columbia.
            ``(5) Special rules for support.--For purposes of this 
        subsection--
                    ``(A) payments to a spouse which are includible in 
                the gross income of such spouse under section 71 or 682 
                shall not be treated as a payment by the payor spouse 
                for the support of any dependent, and
                    ``(B) in the case of the remarriage of a parent, 
                support of a child received from the parent's spouse 
                shall be treated as received from the parent.

    ``(e) Special Rule for Divorced Parents.--
            ``(1) In general.--Notwithstanding subsection (c)(1)(B), 
        (c)(4), or (d)(1)(C), if--
                    ``(A) a child receives over one-half of the child's 
                support during the calendar year from the child's 
                parents--
                          ``(i) who are divorced or legally separated 
                      under a decree of divorce or separate maintenance,
                          ``(ii) who are separated under a written 
                      separation agreement, or
                          ``(iii) who live apart at all times during the 
                      last 6 months of the calendar year, and
                    ``(B) such child is in the custody of 1 or both of 
                the child's parents for more than one-half of the 
                calendar year,

[[Page 118 STAT. 1173]]

        such child shall be treated as being the qualifying child or 
        qualifying relative of the noncustodial parent for a calendar 
        year if the requirements described in paragraph (2) are met.
            ``(2) Requirements.--For purposes of paragraph (1), the 
        requirements described in this paragraph are met if--
                    ``(A) a decree of divorce or separate maintenance or 
                written separation agreement between the parents 
                applicable to the taxable year beginning in such 
                calendar year provides that--
                          ``(i) the noncustodial parent shall be 
                      entitled to any deduction allowable under section 
                      151 for such child, or
                          ``(ii) the custodial parent will sign a 
                      written declaration (in such manner and form as 
                      the Secretary may prescribe) that such parent will 
                      not claim such child as a dependent for such 
                      taxable year, or
                    ``(B) in the case of such an agreement executed 
                before January 1, 1985, the noncustodial parent provides 
                at least $600 for the support of such child during such 
                calendar year.
        For purposes of subparagraph (B), amounts expended for the 
        support of a child or children shall be treated as received from 
        the noncustodial parent to the extent that such parent provided 
        amounts for such support.
            ``(3) Custodial parent and noncustodial parent.--For 
        purposes of this subsection--
                    ``(A) Custodial parent.--The term `custodial parent' 
                means the parent with whom a child shared the same 
                principal place of abode for the greater portion of the 
                calendar year.
                    ``(B) Noncustodial parent.--The term `noncustodial 
                parent' means the parent who is not the custodial 
                parent.
            ``(4) Exception for multiple-support agreements.--This 
        subsection shall not apply in any case where over one-half of 
        the support of the child is treated as having been received from 
        a taxpayer under the provision of subsection (d)(3).

    ``(f) Other Definitions and Rules.--For purposes of this section--
            ``(1) Child defined.--
                    ``(A) In general.--The term `child' means an 
                individual who is--
                          ``(i) a son, daughter, stepson, or 
                      stepdaughter of the taxpayer, or
                          ``(ii) an eligible foster child of the 
                      taxpayer.
                    ``(B) Adopted child.--In determining whether any of 
                the relationships specified in subparagraph (A)(i) or 
                paragraph (4) exists, a legally adopted individual of 
                the taxpayer, or an individual who is lawfully placed 
                with the taxpayer for legal adoption by the taxpayer, 
                shall be treated as a child of such individual by blood.
                    ``(C) Eligible foster child.--For purposes of 
                subparagraph (A)(ii), the term `eligible foster child' 
                means an individual who is placed with the taxpayer by 
                an authorized placement agency or by judgment, decree, 
                or other order of any court of competent jurisdiction.

[[Page 118 STAT. 1174]]

            ``(2) Student defined.--The term `student' means an 
        individual who during each of 5 calendar months during the 
        calendar year in which the taxable year of the taxpayer begins--
                    ``(A) is a full-time student at an educational 
                organization described in section 170(b)(1)(A)(ii), or
                    ``(B) is pursuing a full-time course of 
                institutional on-farm training under the supervision of 
                an accredited agent of an educational organization 
                described in section 170(b)(1)(A)(ii) or of a State or 
                political subdivision of a State.
            ``(3) Determination of household status.--An individual 
        shall not be treated as a member of the taxpayer's household if 
        at any time during the taxable year of the taxpayer the 
        relationship between such individual and the taxpayer is in 
        violation of local law.
            ``(4) Brother and sister.--The terms `brother' and `sister' 
        include a brother or sister by the half blood.
            ``(5) Special support test in case of students.--For 
        purposes of subsections (c)(1)(D) and (d)(1)(C), in the case of 
        an individual who is--
                    ``(A) a child of the taxpayer, and
                    ``(B) a student,
        amounts received as scholarships for study at an educational 
        organization described in section 170(b)(1)(A)(ii) shall not be 
        taken into account.
            ``(6) Treatment of missing children.--
                    ``(A) In general.--Solely for the purposes referred 
                to in subparagraph (B), a child of the taxpayer--
                          ``(i) who is presumed by law enforcement 
                      authorities to have been kidnapped by someone who 
                      is not a member of the family of such child or the 
                      taxpayer, and
                          ``(ii) who had, for the taxable year in which 
                      the kidnapping occurred, the same principal place 
                      of abode as the taxpayer for more than one-half of 
                      the portion of such year before the date of the 
                      kidnapping,
                shall be treated as meeting the requirement of 
                subsection (c)(1)(B) with respect to a taxpayer for all 
                taxable years ending during the period that the child is 
                kidnapped.
                    ``(B) <<NOTE: Applicability.>> Purposes.--
                Subparagraph (A) shall apply solely for purposes of 
                determining--
                          ``(i) the deduction under section 151(c),
                          ``(ii) the credit under section 24 (relating 
                      to child tax credit),
                          ``(iii) whether an individual is a surviving 
                      spouse or a head of a household (as such terms are 
                      defined in section 2), and
                          ``(iv) the earned income credit under section 
                      32.
                    ``(C) Comparable treatment of certain qualifying 
                relatives.--For purposes of this section, a child of the 
                taxpayer--
                          ``(i) who is presumed by law enforcement 
                      authorities to have been kidnapped by someone who 
                      is not a member of the family of such child or the 
                      taxpayer, and

[[Page 118 STAT. 1175]]

                          ``(ii) who was (without regard to this 
                      paragraph) a qualifying relative of the taxpayer 
                      for the portion of the taxable year before the 
                      date of the kidnapping,
                shall be treated as a qualifying relative of the 
                taxpayer for all taxable years ending during the period 
                that the child is kidnapped.
                    ``(D) Termination of treatment.--Subparagraphs (A) 
                and (C) shall cease to apply as of the first taxable 
                year of the taxpayer beginning after the calendar year 
                in which there is a determination that the child is dead 
                (or, if earlier, in which the child would have attained 
                age 18).
            ``(7) Cross references.--

                ``For provision treating child as dependent of both 
                parents for purposes of certain provisions, see sections 
                105(b), 132(h)(2)(B), and 213(d)(5).''.

SEC. 202. MODIFICATIONS OF DEFINITION OF HEAD OF HOUSEHOLD.

    (a) Head of Household.--Clause (i) of section 2(b)(1)(A) is amended 
to read as follows:
                          ``(i) a qualifying child of the individual (as 
                      defined in section 152(c), determined without 
                      regard to section 152(e)), but not if such child--
                                    ``(I) is married at the close of the 
                                taxpayer's taxable year, and
                                    ``(II) is not a dependent of such 
                                individual by reason of section 
                                152(b)(2) or 152(b)(3), or both, or''.

    (b) Conforming Amendments.--
            (1) Section 2(b)(2) is amended by striking subparagraph (A) 
        and by redesignating subparagraphs (B), (C), and (D) as 
        subparagraphs (A), (B), and (C), respectively.
            (2) Clauses (i) and (ii) of section 2(b)(3)(B) are amended 
        to read as follows:
                          ``(i) subparagraph (H) of section 152(d)(2), 
                      or
                          ``(ii) paragraph (3) of section 152(d).''.

SEC. 203. MODIFICATIONS OF DEPENDENT CARE CREDIT.

    (a) In General.--Section 21(a)(1) is amended by striking ``In the 
case of an individual who maintains a household which includes as a 
member one or more qualifying individuals (as defined in subsection 
(b)(1))'' and inserting ``In the case of an individual for which there 
are 1 or more qualifying individuals (as defined in subsection (b)(1)) 
with respect to such individual''.
    (b) Qualifying Individual.--Paragraph (1) of section 21(b) is 
amended to read as follows:
            ``(1) Qualifying individual.--The term `qualifying 
        individual' means--
                    ``(A) a dependent of the taxpayer (as defined in 
                section 152(a)(1)) who has not attained age 13,
                    ``(B) a dependent of the taxpayer who is physically 
                or mentally incapable of caring for himself or herself 
                and who has the same principal place of abode as the 
                taxpayer for more than one-half of such taxable year, or
                    ``(C) the spouse of the taxpayer, if the spouse is 
                physically or mentally incapable of caring for himself 
                or herself and who has the same principal place of abode 
                as the taxpayer for more than one-half of such taxable 
                year.''.

[[Page 118 STAT. 1176]]

    (c) Conforming Amendment.--Paragraph (1) of section 21(e) is amended 
to read as follows:
            ``(1) Place of abode.--An individual shall not be treated as 
        having the same principal place of abode of the taxpayer if at 
        any time during the taxable year of the taxpayer the 
        relationship between the individual and the taxpayer is in 
        violation of local law.''.

SEC. 204. MODIFICATIONS OF CHILD TAX CREDIT.

    (a) In General.--Paragraph (1) of section 24(c) is amended to read 
as follows:
            ``(1) In general.--The term `qualifying child' means a 
        qualifying child of the taxpayer (as defined in section 152(c)) 
        who has not attained age 17.''.

    (b) Conforming Amendment.--Section 24(c)(2) is amended by striking 
``the first sentence of section 152(b)(3)'' and inserting ``subparagraph 
(A) of section 152(b)(3)''.

SEC. 205. MODIFICATIONS OF EARNED INCOME CREDIT.

    (a) Qualifying Child.--Paragraph (3) of section 32(c) is amended to 
read as follows:
            ``(3) Qualifying child.--
                    ``(A) In general.--The term `qualifying child' means 
                a qualifying child of the taxpayer (as defined in 
                section 152(c), determined without regard to paragraph 
                (1)(D) thereof and section 152(e)).
                    ``(B) Married individual.--The term `qualifying 
                child' shall not include an individual who is married as 
                of the close of the taxpayer's taxable year unless the 
                taxpayer is entitled to a deduction under section 151 
                for such taxable year with respect to such individual 
                (or would be so entitled but for section 152(e)).
                    ``(C) Place of abode.--For purposes of subparagraph 
                (A), the requirements of section 152(c)(1)(B) shall be 
                met only if the principal place of abode is in the 
                United States.
                    ``(D) Identification requirements.--
                          ``(i) In general.--A qualifying child shall 
                      not be taken into account under subsection (b) 
                      unless the taxpayer includes the name, age, and 
                      TIN of the qualifying child on the return of tax 
                      for the taxable year.
                          ``(ii) Other methods.--The Secretary may 
                      prescribe other methods for providing the 
                      information described in clause (i).''.

    (b) Conforming Amendments.--
            (1) Section 32(c)(1) is amended by striking subparagraph (C) 
        and by redesignating subparagraphs (D), (E), (F), and (G) as 
        subparagraphs (C), (D), (E), and (F), respectively.
            (2) Section 32(c)(4) is amended by striking ``(3)(E)'' and 
        inserting ``(3)(C)''.
            (3) Section 32(m) is amended by striking ``subsections 
        (c)(1)(F)'' and inserting ``subsections (c)(1)(E)''.

SEC. 206. MODIFICATIONS OF DEDUCTION FOR PERSONAL EXEMPTION FOR 
            DEPENDENTS.

    Subsection (c) of section 151 is amended to read as follows:
    ``(c) Additional Exemption for Dependents.--An exemption of the 
exemption amount for each individual who is a dependent (as defined in 
section 152) of the taxpayer for the taxable year.''.

[[Page 118 STAT. 1177]]

SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.

            (1) Section 2(a)(1)(B)(i) is amended by inserting ``, 
        determined without regard to subsections (b)(1), (b)(2), and 
        (d)(1)(B) thereof'' after ``section 152''.
            (2) Section 21(e)(5) is amended--
                    (A) by striking ``paragraph (2) or (4) of'' in 
                subparagraph (A), and
                    (B) by striking ``within the meaning of section 
                152(e)(1)'' and inserting ``as defined in section 
                152(e)(3)(A)''.
            (3) Section 21(e)(6)(B) is amended by striking ``section 
        151(c)(3)'' and inserting ``section 152(f)(1)''.
            (4) Section 25B(c)(2)(B) is amended by striking 
        ``151(c)(4)'' and inserting ``152(f)(2)''.
            (5)(A) Subparagraphs (A) and (B) of section 51(i)(1) are 
        each amended by striking ``paragraphs (1) through (8) of section 
        152(a)'' both places it appears and inserting ``subparagraphs 
        (A) through (G) of section 152(d)(2)''.
            (B) Section 51(i)(1)(C) is amended by striking ``152(a)(9)'' 
        and inserting ``152(d)(2)(H)''.
            (6) Section 72(t)(2)(D)(i)(III) is amended by inserting ``, 
        determined without regard to subsections (b)(1), (b)(2), and 
        (d)(1)(B) thereof'' after ``section 152''.
            (7) Section 72(t)(7)(A)(iii) is amended by striking 
        ``151(c)(3)'' and inserting ``152(f)(1)''.
            (8) Section 42(i)(3)(D)(ii)(I) is amended by inserting ``, 
        determined without regard to subsections (b)(1), (b)(2), and 
        (d)(1)(B) thereof'' after ``section 152''.
            (9) Subsections (b) and (c)(1) of section 105 are amended by 
        inserting ``, determined without regard to subsections (b)(1), 
        (b)(2), and (d)(1)(B) thereof'' after ``section 152''.
            (10) Section 120(d)(4) is amended by inserting ``(determined 
        without regard to subsections (b)(1), (b)(2), and (d)(1)(B) 
        thereof)'' after ``section 152''.
            (11) Section 125(e)(1)(D) is amended by inserting ``, 
        determined without regard to subsections (b)(1), (b)(2), and 
        (d)(1)(B) thereof'' after ``section 152''.
            (12) Section 129(c)(2) is amended by striking ``151(c)(3)'' 
        and inserting ``152(f)(1)''.
            (13) The first sentence of section 132(h)(2)(B) is amended 
        by striking ``151(c)(3)'' and inserting ``152(f)(1)''.
            (14) Section 153 is amended by striking paragraph (1) and by 
        redesignating paragraphs (2), (3), and (4) as paragraphs (1), 
        (2), and (3), respectively.
            (15) Section 170(g)(1) is amended by inserting ``(determined 
        without regard to subsections (b)(1), (b)(2), and (d)(1)(B) 
        thereof)'' after ``section 152''.
            (16) Section 170(g)(3) is amended by striking ``paragraphs 
        (1) through (8) of section 152(a)'' and inserting 
        ``subparagraphs (A) through (G) of section 152(d)(2)''.
            (17) Section 213(a) is amended by inserting ``, determined 
        without regard to subsections (b)(1), (b)(2), and (d)(1)(B) 
        thereof'' after ``section 152''.
            (18) The second sentence of section 213(d)(11) is amended by 
        striking ``paragraphs (1) through (8) of section 152(a)'' and 
        inserting ``subparagraphs (A) through (G) of section 
        152(d)(2)''.

[[Page 118 STAT. 1178]]

            (19) Section 220(d)(2)(A) is amended by inserting ``, 
        determined without regard to subsections (b)(1), (b)(2), and 
        (d)(1)(B) thereof'' after ``section 152''.
            (20) Section 221(d)(4) is amended by inserting ``(determined 
        without regard to subsections (b)(1), (b)(2), and (d)(1)(B) 
        thereof)'' after ``section 152''.
            (21) Section 529(e)(2)(B) is amended by striking 
        ``paragraphs (1) through (8) of section 152(a)'' and inserting 
        ``subparagraphs (A) through (G) of section 152(d)(2)''.
            (22) Section 2032A(c)(7)(D) is amended by striking ``section 
        151(c)(4)'' and inserting ``section 152(f)(2)''.
            (23) Section 2057(d)(2)(B) is amended by inserting ``, 
        determined without regard to subsections (b)(1), (b)(2), and 
        (d)(1)(B) thereof'' after ``section 152''.
            (24) Section 7701(a)(17) is amended by striking ``152(b)(4), 
        682,'' and inserting ``682''.
            (25) Section 7702B(f)(2)(C)(iii) <<NOTE: 26 USC 7702.>> is 
        amended by striking ``paragraphs (1) through (8) of section 
        152(a)'' and inserting ``subparagraphs (A) through (G) of 
        section 152(d)(2)''.
            (26) Section 7703(b)(1) is amended--
                    (A) by striking ``151(c)(3)'' and inserting 
                ``152(f)(1)'', and
                    (B) by striking ``paragraph (2) or (4) of''.

SEC. 208. EFFECTIVE DATE. <<NOTE: 26 USC 2 note.>> 

    The amendments made by this title shall apply to taxable years 
beginning after December 31, 2004.

          TITLE III--EXTENSIONS OF CERTAIN EXPIRING PROVISIONS

SEC. 301. RESEARCH CREDIT.

    (a) Extension.--
            (1) In general.--Section 41(h)(1)(B) (relating to 
        termination) is amended by striking ``June 30, 2004'' and 
        inserting ``December 31, 2005''.
            (2) Conforming amendment.--Section 45C(b)(1)(D) is amended 
        by striking ``June 30, 2004'' and inserting ``December 31, 
        2005''.

    (b) <<NOTE: 26 USC 41 note.>> Effective Date.--The amendments made 
by this section shall apply to amounts paid or incurred after June 30, 
2004.

SEC. 302. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH 
            BENEFITS.

    (a) In General.--Section 9812(f) is amended--
            (1) by striking ``and'' at the end of paragraph (1), and
            (2) by striking paragraph (2) and inserting the following 
        new paragraphs:
            ``(2) on or after January 1, 2004, and before the date of 
        the enactment of the Working Families Tax Relief Act of 2004, 
        and
            ``(3) after December 31, 2005.''.

    (b) ERISA.--Section 712(f) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1185a(f)) is amended by striking ``on or 
after December 31, 2004'' and inserting ``after December 31, 2005''.

[[Page 118 STAT. 1179]]

    (c) PHSA.--Section 2705(f) of the Public Health Service Act (42 
U.S.C. 300gg-5(f)) is amended by striking ``on or after December 31, 
2004'' and inserting ``after December 31, 2005''.
    (d) <<NOTE: 26 USC 9812 note.>> Effective Dates.--The amendments 
made by this section shall take effect on the date of the enactment of 
this Act.

SEC. 303. WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK CREDIT.

    (a) Extension of Credit.--
            (1) In general.--Section 51(c)(4) is amended by striking 
        ``December 31, 2003'' and inserting ``December 31, 2005''.
            (2) Long-term family assistance recipients.--Section 51A(f) 
        is amended by striking ``December 31, 2003'' and inserting 
        ``December 31, 2005''.

    (b) <<NOTE: 26 USC 51 note.>> Effective Date.--The amendments made 
by this section shall apply to individuals who begin work for the 
employer after December 31, 2003.

SEC. 304. QUALIFIED ZONE ACADEMY BONDS.

    (a) In General.--Paragraph (1) of section 1397E(e) <<NOTE: 26 USC 
1397.>> is amended by striking ``and 2003'' and inserting ``2003, 2004, 
and 2005''.

    (b) <<NOTE: 26 USC 1397E note.>> Effective Date.--The amendment made 
by this section shall apply to obligations issued after December 31, 
2003.

SEC. 305. COVER OVER OF TAX ON DISTILLED SPIRITS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2004'' and inserting ``January 1, 2006''.
    (b) <<NOTE: 26 USC 7652 note.>> Effective Date.--The amendment made 
by this section shall apply to articles brought into the United States 
after December 31, 2003.

SEC. 306. DEDUCTION FOR CORPORATE DONATIONS OF SCIENTIFIC PROPERTY AND 
            COMPUTER TECHNOLOGY.

    (a) In General.--Section 170(e)(6)(G) is amended by striking 
``2003'' and inserting ``2005''.
    (b) <<NOTE: 26 USC 170 note.>> Effective Date.--The amendment made 
by this section shall apply to contributions made in taxable years 
beginning after December 31, 2003.

SEC. 307. DEDUCTION FOR CERTAIN EXPENSES OF SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) is amended by 
striking ``or 2003'' and inserting ``, 2003, 2004, or 2005''.
    (b) <<NOTE: 26 USC 62 note.>> Effective Date.--The amendment made by 
subsection (a) shall apply to expenses paid or incurred in taxable years 
beginning after December 31, 2003.

SEC. 308. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) Extension of Termination Date.--Subsection (h) of section 198 is 
amended by striking ``December 31, 2003'' and inserting ``December 31, 
2005''.
    (b) <<NOTE: 26 USC 198 note.>> Effective Date.--The amendment made 
by subsection (a) shall apply to expenditures paid or incurred after 
December 31, 2003.

SEC. 309. CERTAIN NEW YORK LIBERTY ZONE BENEFITS.

    (a) Extension of Tax-Exempt Bond Financing.--Subparagraph (D) of 
section 1400L(d)(2) is amended by striking ``2005'' and inserting 
``2010''.

[[Page 118 STAT. 1180]]

    (b) Extension of Advance Refundings.--Section 1400L(e)(1) is amended 
by striking ``2005'' and inserting ``2006''.
    (c) Clarification of Bonds Eligible for Advance Refunding.--Section 
1400L(e)(2)(B) (relating to bonds described) is amended by striking ``, 
or'' and inserting ``or the Municipal Assistance Corporation, or''.
    (d) <<NOTE: 26 USC 1400L note.>> Effective date.--The amendment made 
by subsection (c) shall take effect as if included in the amendments 
made by section 301 of the Job Creation and Worker Assistance Act of 
2002.

SEC. 310. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF COLUMBIA.

    (a) Designation of Zone.--Subsection (f) of section 1400 is amended 
by striking ``December 31, 2003'' both places it appears and inserting 
``December 31, 2005''.
    (b) Tax-Exempt Economic Development Bonds.--Subsection (b) of 
section 1400A is amended by striking ``December 31, 2003'' and inserting 
``December 31, 2005''.
    (c) Zero Percent Capital Gains Rate.--
            (1) In general.--Subsection (b) of section 1400B is amended 
        by striking ``January 1, 2004'' each place it appears and 
        inserting ``January 1, 2006''.
            (2) Conforming amendments.--
                    (A) Section 1400B(e)(2) is amended--
                          (i) by striking ``December 31, 2008'' and 
                      inserting ``December 31, 2010'', and
                          (ii) by striking ``2008'' in the heading and 
                      inserting ``2010''.
                    (B) Section 1400B(g)(2) is amended by striking 
                ``December 31, 2008'' and inserting ``December 31, 
                2010''.
                    (C) Section 1400F(d) is amended by striking 
                ``December 31, 2008'' and inserting ``December 31, 
                2010''.

    (d) First-Time Homebuyer Credit.--Subsection (i) of section 1400C is 
amended by striking ``January 1, 2004'' and inserting ``January 1, 
2006''.
    (e) <<NOTE: 26 USC 1400 note.>> Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on January 1, 
        2004.
            (2) Tax-exempt economic development bonds.--The amendment 
        made by subsection (b) shall apply to obligations issued after 
        the date of the enactment of this Act.

SEC. 311. DISCLOSURE OF TAX INFORMATION TO FACILITATE COMBINED 
            EMPLOYMENT TAX REPORTING.

    (a) In General.--Paragraph (5) of section 6103(d) (relating to 
disclosure to State tax officials and State and local law enforcement 
agencies) is amended to read as follows:
            ``(5) Disclosure for combined employment tax reporting.--
                    ``(A) In general.--The Secretary may disclose 
                taxpayer identity information and signatures to any 
                agency, body, or commission of any State for the purpose 
                of carrying out with such agency, body, or commission a 
                combined Federal and State employment tax reporting 
                program approved by the Secretary. Subsections (a)(2) 
                and (p)(4) and sections 7213 and 7213A shall not apply 
                with respect

[[Page 118 STAT. 1181]]

                to disclosures or inspections made pursuant to this 
                paragraph.
                    ``(B) Termination.--The Secretary may not make any 
                disclosure under this paragraph after December 31, 
                2005.''.

    (b) <<NOTE: 26 USC 6103 note.>> Effective Date.--The amendment made 
by this section shall take effect on the date of the enactment of this 
Act.

SEC. 312. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST REGULAR 
            AND MINIMUM TAX LIABILITY.

    (a) In General.--Paragraph (2) of section 26(a) is amended--
            (1) by striking ``rule for 2000, 2001, 2002, and 2003.--'' 
        and inserting ``rule for taxable years 2000 through 2005.--'', 
        and
            (2) by striking ``or 2003'' and inserting ``2003, 2004, or 
        2005''.

    (b) Conforming Provisions.--
            (1) Section 904(h) is amended by striking ``or 2003'' and 
        inserting ``2003, 2004, or 2005''.
            (2) <<NOTE: 26 USC 23 note.>> The amendments made by 
        sections 201(b), 202(f), and 618(b) of the Economic Growth and 
        Tax Relief Reconciliation Act of 2001 shall not apply to taxable 
        years beginning during 2004 or 2005.

    (c) <<NOTE: 26 USC 26 note.>> Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2003.

SEC. 313. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE 
            RESOURCES.

    (a) In General.--Subparagraphs (A), (B), and (C) of section 45(c)(3) 
are each amended by striking ``January 1, 2004'' and inserting ``January 
1, 2006''.
    (b) <<NOTE: 26 USC 45 note.>> Effective Date.--The amendments made 
by subsection (a) shall apply to facilities placed in service after 
December 31, 2003.

SEC. 314. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR OIL AND 
            NATURAL GAS PRODUCED FROM MARGINAL PROPERTIES.

    (a) In General.--Subparagraph (H) of section 613A(c)(6) is amended 
by striking ``January 1, 2004'' and inserting ``January 1, 2006''.
    (b) <<NOTE: 26 USC 613A note.>> Effective Date.--The amendment made 
by subsection (a) shall apply to taxable years beginning after December 
31, 2003.

SEC. 315. INDIAN EMPLOYMENT TAX CREDIT.

    Section 45A(f) (relating to termination) is amended by striking 
``December 31, 2004'' and inserting ``December 31, 2005''.

SEC. 316. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN 
            RESERVATION.

    Section 168(j)(8) (relating to termination) is amended by striking 
``December 31, 2004'' and inserting ``December 31, 2005''.

SEC. 317. DISCLOSURE OF RETURN INFORMATION RELATING TO STUDENT LOANS.

    Section 6103(l)(13)(D) (relating to termination) is amended by 
striking ``December 31, 2004'' and inserting ``December 31, 2005''.

[[Page 118 STAT. 1182]]

SEC. 318. ELIMINATION OF PHASEOUT OF CREDIT FOR QUALIFIED ELECTRIC 
            VEHICLES FOR 2004 AND 2005.

    (a) In General.--Paragraph (2) of section 30(b) is amended to read 
as follows:
            ``(2) Phaseout.--In the case of any qualified electric 
        vehicle placed in service after December 31, 2005, the credit 
        otherwise allowable under subsection (a) (determined after the 
        application of paragraph (1)) shall be reduced by 75 percent.''.

    (b) <<NOTE: 26 USC 30 note.>> Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2003.

SEC. 319. ELIMINATION OF PHASEOUT FOR DEDUCTION FOR CLEAN-FUEL VEHICLE 
            PROPERTY FOR 2004 AND 2005.

    (a) In General.--Subparagraph (B) of section 179A(b)(1) is amended 
to read as follows:
                    ``(B) Phaseout.--In the case of any qualified clean-
                fuel vehicle property placed in service after December 
                31, 2005, the limit otherwise allowable under 
                subparagraph (A) shall be reduced by 75 percent.''.

    (b) <<NOTE: 26 USC 179A note.>> Effective Date.--The amendment made 
by subsection (a) shall apply to property placed in service after 
December 31, 2003.

SEC. 320. DISCLOSURES RELATING TO TERRORIST ACTIVITIES.

    (a) In General.--Clause (iv) of section 6103(i)(3)(C) and 
subparagraph (E) of section 6103(i)(7) are both amended by striking 
``December 31, 2003'' and inserting ``December 31, 2005''.
    (b) Disclosure of taxpayer identity to law enforcement agencies 
investigating terrorism.--Subparagraph (A) of section 6103(i)(7) is 
amended by adding at the end the following new clause:
                          ``(v) Taxpayer identity.--For purposes of this 
                      subparagraph, a taxpayer's identity shall not be 
                      treated as taxpayer return information.''.

    (c) Effective Dates.-- <<NOTE: 26 USC 6103 note.>> 
            (1) In general.--The amendments made by subsection (a) shall 
        apply to disclosures on or after the date of the enactment of 
        this Act.
            (2) Subsection (b).--The amendment made by subsection (b) 
        shall take effect as if included in section 201 of the Victims 
        of Terrorism Tax Relief Act of 2001.

SEC. 321. JOINT REVIEW OF STRATEGIC PLANS AND BUDGET FOR THE INTERNAL 
            REVENUE SERVICE.

    (a) In General.--Paragraph (2) of section 8021(f) (relating to joint 
reviews) is amended by striking ``2004'' and inserting ``2005''.
    (b) Report.--Subparagraph (C) of section 8022(3) (regarding reports) 
is amended--
            (1) by striking ``2004'' and inserting ``2005'', and
            (2) by striking ``with respect to--'' and all that follows 
        and inserting ``with respect to the matters addressed in the 
        joint review referred to in section 8021(f)(2).''.

    (c) <<NOTE: Deadline. 26 USC 8021 note.>> Time for Joint Review.--
The joint review required by section 8021(f)(2) of the Internal Revenue 
Code of 1986 to be made before June 1, 2004, shall be treated as timely 
if made before June 1, 2005.

[[Page 118 STAT. 1183]]

SEC. 322. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.

    (a) In General.--Paragraphs (2) and (3)(B) of section 220(i) 
(defining cut-off year) are each amended by striking ``2003'' each place 
it appears in the text and headings and inserting ``2005''.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 220(j) is amended--
                    (A) in the text by striking ``or 2002'' each place 
                it appears and inserting ``2002, or 2004'', and
                    (B) in the heading by striking ``or 2002'' and 
                inserting ``2002, or 2004''.
            (2) Subparagraph (A) of section 220(j)(4) is amended by 
        striking ``and 2002'' and inserting ``2002, and 2004''.
            (3) Subparagraph (C) of section 220(j)(2) is amended to read 
        as follows:
                    ``(C) No limitation for 2000 or 2003.--The numerical 
                limitation shall not apply for 2000 or 2003.''.

    (c) <<NOTE: 26 USC 220 note.>> Effective Date.--The amendments made 
by this section shall take effect on January 1, 2004.

    (d) Time for Filing Reports, Etc.-- <<NOTE: Deadlines. 26 USC 220 
note.>> 
            (1) The report required by section 220(j)(4) of the Internal 
        Revenue Code of 1986 to be made on August 1, 2004, shall be 
        treated as timely if made before the close of the 90-day period 
        beginning on the date of the enactment of this Act.
            (2) The determination and publication required by section 
        220(j)(5) of such Code with respect to calendar year 2004 shall 
        be treated as timely if made before the close of the 120-day 
        period beginning on the date of the enactment of this Act. If 
        the determination under the preceding sentence is that 2004 is a 
        cut-off year under section 220(i) of such Code, the cut-off date 
        under such section 220(i) shall be the last day of such 120-day 
        period.

                   TITLE IV--TAX TECHNICAL CORRECTIONS

SEC. 401. AMENDMENTS RELATED TO MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, 
            AND MODERNIZATION ACT OF 2003.

    (a) Amendments Related to Section 1201 of the Act.--
            (1) Paragraph (2) of section 26(b) <<NOTE: 26 USC 26.>> is 
        amended by striking ``and'' at the end of subparagraph (Q), by 
        striking the period at the end of subparagraph (R) and inserting 
        ``, and'', and by adding at the end the following new 
        subparagraph:
                    ``(S) section 223(f)(4) (relating to additional tax 
                on health savings account distributions not used for 
                qualified medical expenses).
            (2) Paragraph (3) of section 35(g) is amended to read as 
        follows:
            ``(3) Medical and health savings accounts.--Amounts 
        distributed from an Archer MSA (as defined in section 220(d)) or 
        from a health savings account (as defined in section 223(d)) 
        shall not be taken into account under subsection (a).''.

    (b) <<NOTE: 26 USC 26 note.>> Effective Date.--The amendments made 
by subsection (a) shall take effect as if included in section 1201 of 
the Medicare Prescription Drug, Improvement, and Modernization Act of 
2003.

[[Page 118 STAT. 1184]]

SEC. 402. AMENDMENTS RELATED TO JOBS AND GROWTH TAX RELIEF 
            RECONCILIATION ACT OF 2003.

    (a) Amendments Related to Section 302 of the Act.--
            (1) Clause (i) of section 1(h)(1)(D) <<NOTE: 26 USC 1.>> is 
        amended by inserting ``(determined without regard to paragraph 
        (11))'' after ``net capital gain''.
            (2) Subclause (I) of section 1(h)(11)(B)(iii) is amended--
                    (A) by striking ``section 246(c)(1)'' and inserting 
                ``section 246(c)'',
                    (B) by striking ``120-day period'' and inserting 
                ``121-day period'', and
                    (C) by striking ``90-day period'' and inserting 
                ``91-day period''.
            (3) Clause (ii) of section 1(h)(11)(D) is amended by 
        striking ``an individual'' and inserting ``a taxpayer to whom 
        this section applies''.
            (4) Paragraph (4) of section 691(c) is amended by striking 
        ``of any gain''.
            (5)(A) Subparagraph (B) of section 854(b)(1) is amended--
                    (i) by striking clauses (iii) and (iv), and
                    (ii) by amending clause (i) to read as follows:
                          ``(i) In general.--In any case in which--
                                    ``(I) a dividend is received from a 
                                regulated investment company (other than 
                                a dividend to which subsection (a) 
                                applies),
                                    ``(II) such investment company meets 
                                the requirements of section 852(a) for 
                                the taxable year during which it paid 
                                such dividend, and
                                    ``(III) the qualified dividend 
                                income of such investment company for 
                                such taxable year is less than 95 
                                percent of its gross income,
                      then, in computing qualified dividend income, 
                      there shall be taken into account only that 
                      portion of such dividend designated by the 
                      regulated investment company.''.
            (B) Subparagraph (C) of section 854(b)(1) is amended to read 
        as follows:
                    ``(C) Limitations.--
                          ``(i) Subparagraph (a).--The aggregate amount 
                      which may be designated as dividends under 
                      subparagraph (A) shall not exceed the aggregate 
                      dividends received by the company for the taxable 
                      year.
                          ``(ii) Subparagraph (b).--The aggregate amount 
                      which may be designated as qualified dividend 
                      income under subparagraph (B) shall not exceed the 
                      sum of--
                                    ``(I) the qualified dividend income 
                                of the company for the taxable year, and
                                    ``(II) the amount of any earnings 
                                and profits which were distributed by 
                                the company for such taxable year and 
                                accumulated in a taxable year with 
                                respect to which this part did not 
                                apply.''.
            (C) Paragraph (2) of section 854(b) is amended by striking 
        ``as a dividend for purposes of the maximum rate under section 
        1(h)(11) and'' and inserting ``as qualified dividend income for 
        purposes of section 1(h)(11) and as dividends for purposes of''.
            (D) Paragraph (5) of section 854(b) is amended to read as 
        follows:

[[Page 118 STAT. 1185]]

            ``(5) Qualified dividend income.--For purposes of this 
        subsection, the term `qualified dividend income' has the meaning 
        given such term by section 1(h)(11)(B).''.
            (E) Paragraph (2) of section 857(c) is amended to read as 
        follows:
            ``(2) Section (1)(h)(11).--
                    ``(A) In general.--In any case in which--
                          ``(i) a dividend is received from a real 
                      estate investment trust (other than a capital gain 
                      dividend), and
                          ``(ii) such trust meets the requirements of 
                      section 856(a) for the taxable year during which 
                      it paid such dividend,
                then, in computing qualified dividend income, there 
                shall be taken into account only that portion of such 
                dividend designated by the real estate investment trust.
                    ``(B) Limitation.--The aggregate amount which may be 
                designated as qualified dividend income under 
                subparagraph (A) shall not exceed the sum of--
                          ``(i) the qualified dividend income of the 
                      trust for the taxable year,
                          ``(ii) the excess of--
                                    ``(I) the sum of the real estate 
                                investment trust taxable income computed 
                                under section 857(b)(2) for the 
                                preceding taxable year and the income 
                                subject to tax by reason of the 
                                application of the regulations under 
                                section 337(d) for such preceding 
                                taxable year, over
                                    ``(II) the sum of the taxes imposed 
                                on the trust for such preceding taxable 
                                year under section 857(b)(1) and by 
                                reason of the application of such 
                                regulations, and
                          ``(iii) the amount of any earnings and profits 
                      which were distributed by the trust for such 
                      taxable year and accumulated in a taxable year 
                      with respect to which this part did not apply.
                    ``(C) <<NOTE: Deadline.>> Notice to shareholders.--
                The amount of any distribution by a real estate 
                investment trust which may be taken into account as 
                qualified dividend income shall not exceed the amount so 
                designated by the trust in a written notice to its 
                shareholders mailed not later than 60 days after the 
                close of its taxable year.
                    ``(D) Qualified dividend income.--For purposes of 
                this paragraph, the term `qualified dividend income' has 
                the meaning given such term by section 1(h)(11)(B).''.
            (F) <<NOTE: 26 USC 854 note.>> With respect to any taxable 
        year of a regulated investment company or real estate investment 
        trust ending on or before November 30, 2003, the period for 
        providing notice of the qualified dividend amount to 
        shareholders under sections 854(b)(2) and 857(c)(2)(C) of the 
        Internal Revenue Code of 1986, as amended by this section, shall 
        not expire before the date on which the statement under section 
        6042(c) of such Code is required to be furnished with respect to 
        the last calendar year beginning in such taxable year.
            (6) Paragraph (2) of section 302(f) of the Jobs and Growth 
        Tax Relief Reconciliation Act of 2003 <<NOTE: 26 USC 1 
        note.>> is amended to read as follows:

[[Page 118 STAT. 1186]]

            ``(2) Pass-thru entities.--In the case of a pass-thru entity 
        described in subparagraph (A), (B), (C), (D), (E), or (F) of 
        section 1(h)(10) of the Internal Revenue Code of 1986, as 
        amended by this Act, the amendments made by this section shall 
        apply to taxable years ending after December 31, 2002; except 
        that dividends received by such an entity on or before such date 
        shall not be treated as qualified dividend income (as defined in 
        section 1(h)(11)(B) of such Code, as added by this Act).''.

    (b) <<NOTE: 26 USC 1 note.>> Effective Date.--The amendments made by 
subsection (a) shall take effect as if included in section 302 of the 
Jobs and Growth Tax Relief Reconciliation Act of 2003.

SEC. 403. AMENDMENTS RELATED TO JOB CREATION AND WORKER ASSISTANCE ACT 
            OF 2002.

    (a) Amendments Related to Section 101 of the Act.--
            (1) Clause (i) of section 168(k)(2)(B) <<NOTE: 26 USC 
        168.>> is amended to read as follows:
                          ``(i) In general.--The term `qualified 
                      property' includes any property if such property--
                                    ``(I) meets the requirements of 
                                clauses (i), (ii), and (iii) of 
                                subparagraph (A),
                                    ``(II) has a recovery period of at 
                                least 10 years or is transportation 
                                property,
                                    ``(III) is subject to section 263A, 
                                and
                                    ``(IV) meets the requirements of 
                                clause (ii) or (iii) of section 
                                263A(f)(1)(B) (determined as if such 
                                clauses also apply to property which has 
                                a long useful life (within the meaning 
                                of section 263A(f))).''.
            (2)(A) Subparagraph (D) of section 168(k)(2) is amended by 
        adding at the end the following new clauses:
                          ``(iii) Syndication.--For purposes of 
                      subparagraph (A)(ii), if--
                                    ``(I) property is originally placed 
                                in service after September 10, 2001, by 
                                the lessor of such property,
                                    ``(II) such property is sold by such 
                                lessor or any subsequent purchaser 
                                within 3 months after the date such 
                                property was originally placed in 
                                service, and
                                    ``(III) the user of such property 
                                after the last sale during such 3-month 
                                period remains the same as when such 
                                property was originally placed in 
                                service,
                      such property shall be treated as originally 
                      placed in service not earlier than the date of 
                      such last sale.
                          ``(iv) Limitations related to users and 
                      related parties.--The term `qualified property' 
                      shall not include any property if--
                                    ``(I) the user of such property (as 
                                of the date on which such property is 
                                originally placed in service) or a 
                                person which is related (within the 
                                meaning of section 267(b) or 707(b)) to 
                                such user or to the taxpayer had a 
                                written binding contract in effect for 
                                the acquisition of such property at any 
                                time on or before September 10, 2001, or

[[Page 118 STAT. 1187]]

                                    ``(II) in the case of property 
                                manufactured, constructed, or produced 
                                for such user's or person's own use, the 
                                manufacture, construction, or production 
                                of such property began at any time on or 
                                before September 10, 2001.''.
            (B) Clause (ii) of section 168(k)(2)(D) is amended by 
        inserting ``clause (iii) and'' before ``subparagraph (A)(ii)''.

    (b) Amendments Related to Section 102 of the Act.--
            (1) Subparagraph (H) of section 172(b)(1) <<NOTE: 26 USC 
        172.>> is amended by striking ``a taxpayer which has''.
            (2) <<NOTE: 26 USC 172 note.>> In the case of a net 
        operating loss for a taxable year ending during 2001 or 2002--
                    (A) an application under section 6411(a) of the 
                Internal Revenue Code of 1986 with respect to such loss 
                shall not fail to be treated as timely filed if filed 
                before November 1, 2002,
                    (B) any election made under section 172(b)(3) of 
                such Code may (notwithstanding such section) be revoked 
                before November 1, 2002, and
                    (C) any election made under section 172(j) of such 
                Code shall (notwithstanding such section) be treated as 
                timely made if made before November 1, 2002.
            (3) Section 102(c)(2) of the Job Creation and Worker 
        Assistance Act of 2002 (Public Law 107-147) <<NOTE: 26 USC 56 
        note.>> is amended by striking ``before January 1, 2003'' and 
        inserting ``after December 31, 1990''.
            (4)(A) Subclause (I) of section 56(d)(1)(A)(i) is amended by 
        striking ``attributable to carryovers''.
            (B) Subclause (I) of section 56(d)(1)(A)(ii) is amended--
                    (i) by striking ``for taxable years'' and inserting 
                ``from taxable years'', and
                    (ii) by striking ``carryforwards'' and inserting 
                ``carryovers''.

    (c) Amendments Related to Section 301 of the Act.--
            (1) Subparagraph (D) of section 1400L(a)(2) <<NOTE: 26 USC 
        1400L.>> is amended--
                    (A) by striking ``subchapter B'' and inserting 
                ``subchapter A'', and
                    (B) in clause (ii), by striking ``subparagraph (B)'' 
                and inserting ``this paragraph''.
            (2) Subparagraph (D) of section 1400L(b)(2) is amended by 
        inserting ``, and clause (iv) thereof shall be applied by 
        substituting `qualified New York Liberty Zone property' for 
        `qualified property' '' before the period at the end.
            (3) Subsection (c) of section 1400L is amended by adding at 
        the end the following new paragraph:
            ``(5) <<NOTE: Applicability.>> Election out.--For purposes 
        of this subsection, rules similar to the rules of section 
        168(k)(2)(C)(iii) shall apply.''.
            (4) Paragraph (2) of section 1400L(f) is amended by 
        inserting before the period ``, determined without regard to 
        subparagraph (C)(i) thereof''.

    (d) Amendment Related to Section 405 of the Act.--The last sentence 
of section 4006(a)(3)(E)(iii)(IV) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1306(a)(3)(E)(iii)(IV)) is amended--
            (1) by inserting ``or this subparagraph'' after ``this 
        clause'' both places it appears, and

[[Page 118 STAT. 1188]]

            (2) by inserting ``(other than sections 4005, 4010, 4011, 
        and 4043)'' after ``subsections''.

    (e) Amendment Related to Section 411 of the Act.--Subparagraph (B) 
of section 411(c)(2) of the Job Creation and Worker Assistance Act of 
2002 <<NOTE: 26 USC 137.>> is amended by striking ``Paragraph (2)'' and 
inserting ``Paragraph (1)''.

    (f) <<NOTE: 26 USC 56 note.>> Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Job Creation and Worker Assistance Act of 2002 to which they relate.

SEC. 404. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX RELIEF 
            RECONCILIATION ACT OF 2001.

    (a) Amendment Related to Section 401 of the Act.--Clause (i) of 
section 530(d)(2)(C) <<NOTE: 26 USC 530.>> is amended by striking 
``higher'' after ``qualified''.

    (b) Amendments Related to Section 611 of the Act.--
            (1) Paragraph (3) of section 45A(c) <<NOTE: 26 USC 45A.>> is 
        amended by inserting ``, except that the base period taken into 
        account for purposes of such adjustment shall be the calendar 
        quarter beginning October 1, 1993'' before the period at the 
        end.
            (2) Subparagraph (A) of section 415(d)(4) <<NOTE: 26 USC 
        415.>> is amended by adding at the end the following new 
        sentence: ``This subparagraph shall also apply for purposes of 
        any provision of this title that provides for adjustments in 
        accordance with the method contained in this subsection, except 
        to the extent provided in such provision.''.

    (c) Amendment Related to Section 614 of the Act.--Clause (ii) of 
section 4972(c)(6)(A) <<NOTE: 26 USC 4972.>> is amended to read as 
follows:
                          ``(ii) the amount of contributions described 
                      in section 401(m)(4)(A), or''.

    (d) Amendment Related to Section 637 of the Act.--Clause (i) of 
section 408(p)(6)(A) <<NOTE: 26 USC 408.>> is amended by adding at the 
end the following new sentence: ``For purposes of the preceding 
sentence, amounts described in section 6051(a)(3) shall be determined 
without regard to section 3401(a)(3).''.

    (e) Amendment Related to Section 641 of the Act.--Subparagraph (B) 
of section 403(a)(4) <<NOTE: 26 USC 403.>> is amended to read as 
follows:
                    ``(B) Certain rules made applicable.--The rules of 
                paragraphs (2) through (7) and (9) of section 402(c) and 
                section 402(f) shall apply for purposes of subparagraph 
                (A).''.

    (f) <<NOTE: 26 USC 45A note.>> Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Economic Growth and Tax Relief Reconciliation Act of 2001 to which 
they relate.

SEC. 405. AMENDMENTS RELATED TO COMMUNITY RENEWAL TAX RELIEF ACT OF 
            2000.

    (a) Amendments Related to Section 401 of the Act.--
            (1) Subsection (c) of section 1234B <<NOTE: 26 USC 
        1234B.>> is amended by adding at the end the following new 
        sentence: ``The Secretary may prescribe regulations regarding 
        the status of contracts the values of which are determined 
        directly or indirectly by reference to any index which becomes 
        (or ceases to be) a narrow-based security index (as defined for 
        purposes of section 1256(g)(6)).''.
            (2) Paragraph (6) of section 1256(g) <<NOTE: 26 USC 
        1256.>> is amended by adding at the end the following new 
        sentence: ``The Secretary may

[[Page 118 STAT. 1189]]

        prescribe regulations regarding the status of options the values 
        of which are determined directly or indirectly by reference to 
        any index which becomes (or ceases to be) a narrow-based 
        security index (as so defined).''.

    (b) <<NOTE: 26 USC 1234B note.>> Effective Date.--The amendments 
made by subsection (a) shall take effect as if included in section 401 
of the Community Renewal Tax Relief Act of 2000.

SEC. 406. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

    (a) Amendment Related to Section 211 of the Act.--Subparagraph (B) 
of section 529(c)(5) <<NOTE: 26 USC 529.>> is amended to read as 
follows:
                    ``(B) <<NOTE: Applicability.>> Treatment of 
                designation of new beneficiary.--The taxes imposed by 
                chapters 12 and 13 shall apply to a transfer by reason 
                of a change in the designated beneficiary under the 
                program (or a rollover to the account of a new 
                beneficiary) unless the new beneficiary is--
                          ``(i) assigned to the same generation as (or a 
                      higher generation than) the old beneficiary 
                      (determined in accordance with section 2651), and
                          ``(ii) a member of the family of the old 
                      beneficiary.''.

    (b) Amendment Related to Section 213 of the Act.--Clause (iii) of 
section 530(d)(4)(B) <<NOTE: 26 USC 530.>> is amended by striking 
``account holder'' and inserting ``designated beneficiary''.

    (c) Amendment Related to Section 226 of the Act.--Section 
1397E <<NOTE: 26 USC 1397E.>> is amended by adding at the end the 
following new subsection:

    ``(i) S Corporations.--In the case of a qualified zone academy bond 
held by an S corporation which is an eligible taxpayer--
            ``(1) each shareholder shall take into account such 
        shareholder's pro rata share of the credit, and
            ``(2) no basis adjustments to the stock of the corporation 
        shall be made under section 1367 on account of this section.''.

    (d) Amendment Related to Section 311 of the Act.--Subparagraph (B) 
of section 55(b)(3) <<NOTE: 26 USC 55.>> is amended by striking ``the 
amount on which a tax is determined under'' and inserting ``an amount 
equal to the excess described in''.

    (e) Amendments Related to Section 1001 of the Act.--
            (1) Paragraph (2) of section 1259(c) <<NOTE: 26 USC 
        1259.>> is amended by striking ``The term `constructive sale' 
        shall not include any contract'' and inserting ``A taxpayer 
        shall not be treated as having made a constructive sale solely 
        because the taxpayer enters into a contract''.
            (2) Subparagraphs (A) and (B)(i) of section 1259(c)(3) are 
        each amended by striking ``be treated as a constructive sale'' 
        and inserting ``cause a constructive sale''.
            (3) Clause (i) of section 1259(c)(3)(A) is amended by 
        striking ``before the end of'' and inserting ``on or before''.
            (4) Clause (ii) of section 1259(c)(3)(B) is amended by 
        striking ``substantially similar''.
            (5) Subclause (I) of section 1259(c)(3)(B)(ii) is amended to 
        read as follows:
                                    ``(I) which would (but for this 
                                subparagraph) cause the requirement of 
                                subparagraph (A)(iii) not to be met with 
                                respect to the transaction described in 
                                clause (i) of this subparagraph,''.
            (6) Subclause (II) of such section is amended by inserting 
        ``on or'' before ``before the 30th day''.

[[Page 118 STAT. 1190]]

            (7) The heading for subparagraph (B) of section 1259(c)(3) 
        is amended by striking ``positions which are reestablished'' and 
        inserting ``certain closed transactions where risk of loss on 
        appreciated financial position diminished''.

    (f) Amendments Related to Section 1015 of the Act.--
            (1) Section 246(c)(1)(A) <<NOTE: 26 USC 246.>> is amended by 
        striking ``90-day period'' and inserting ``91-day period''.
            (2) Section 246(c)(2)(B) is amended--
                    (A) by striking ``180-day period'' and inserting 
                ``181-day period'', and
                    (B) by striking ``90-day period'' and inserting 
                ``91-day period''.

    (g) Amendments Related to Section 1053 of the Act.--
            (1) Section 901(k)(1)(A)(i) <<NOTE: 26 USC 901.>> is amended 
        by striking ``30-day period'' and inserting ``31-day period''.
            (2) Section 901(k)(3)(B) is amended--
                    (A) by striking ``90-day period'' and inserting 
                ``91-day period'', and
                    (B) by striking ``30-day period'' and inserting 
                ``31-day period''.

    (h) <<NOTE: 26 USC 55 note.>> Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Taxpayer Relief Act of 1997 to which they relate.

SEC. 407. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF 
            1996.

    (a) Amendment Related to Section 1307 of the Act.--Subsection (b) of 
section 1377 <<NOTE: 26 USC 1377.>> (relating to post-termination 
transition period) is amended by adding at the end the following new 
paragraph:
            ``(3) Special rules for audit related post-termination 
        transition periods.--
                    ``(A) No application to carryovers.--Paragraph 
                (1)(B) shall not apply for purposes of section 
                1366(d)(3).
                    ``(B) Limitation on application to distributions.--
                Paragraph (1)(B) shall apply to a distribution described 
                in section 1371(e) only to the extent that the amount of 
                such distribution does not exceed the aggregate increase 
                (if any) in the accumulated adjustments account (within 
                the meaning of section 1368(e)) by reason of the 
                adjustments referred to in such paragraph.''.

    (b) Amendments Related to Section 1432 of the Act.--Paragraph (26) 
of section 401(a) <<NOTE: 26 USC 401.>> is amended by striking 
subparagraph (C) and by redesignating subparagraphs (D) through (I) as 
subparagraphs (C) through (H), respectively.

    (c) <<NOTE: 26 USC 401 note.>> Effective Date.--The amendments made 
by this section shall take effect as if included in the provisions of 
the Small Business Job Protection Act of 1996 to which they relate.

SEC. 408. CLERICAL AMENDMENTS.

    (a) Internal Revenue Code of 1986.--
            (1) Subclause (II) of section 1(g)(7)(B)(ii) <<NOTE: 26 USC 
        1.>> is amended by striking ``10 percent.'' and inserting ``10 
        percent''.
            (2) Clause (ii) of section 1(h)(6)(A) is amended--
                    (A) in subclause (I), by striking ``(5)(B)'' and 
                inserting ``(4)(B)'', and
                    (B) in subclause (II), by striking ``(5)(A)'' and 
                inserting ``(4)(A)''.

[[Page 118 STAT. 1191]]

            (3) Subclause (I) of section 42(d)(2)(D)(iii) is amended by 
        striking ``section 179(b)(7)'' and inserting ``section 
        179(d)(7)''.
            (4) Subsection (f) of section 72 is amended by striking 
        ``Economic Growth and Tax Relief Reconciliation Act of 2001'' 
        and inserting ``Economic Growth and Tax Relief Reconciliation 
        Act of 2001)''.
            (5)(A) Section 138 and paragraph (2) of section 26(b) are 
        each amended by striking ``Medicare+Choice MSA'' each place it 
        appears in the text and inserting ``Medicare Advantage MSA''.
            (B) The heading for section 138 is amended to read as 
        follows:

``SEC. 138. MEDICARE ADVANTAGE MSA.''.

            (C) The heading for subsection (b) of section 138 is amended 
        by striking ``Medicare+Choice MSA'' and inserting ``Medicare 
        Advantage MSA''.
            (D) The heading for paragraph (2) of section 138(c) is 
        amended by striking ``medicare+choice msa'' and inserting 
        ``medicare advantage msa''.
            (E) Clause (i) of section 138(c)(2)(C) is amended by 
        striking ``Medicare+Choice MSAs'' and inserting ``Medicare 
        Advantage MSAs''.
            (F) Subsection (f) of section 138 is amended by striking 
        ``Medicare+Choice MSA's'' and inserting ``Medicare Advantage 
        MSAs''.
            (G) The item relating to section 138 in the table of 
        sections for part III of subchapter B of chapter 1 is amended to 
        read as follows:

        ``Sec. 138. Medicare Advantage MSA.''.

            (6) Clause (ii) of section 168(k)(2)(D) is amended--
                    (A) by inserting ``is'' after ``if property'', and
                    (B) by striking ``is'' in subclause (I).
            (7) Each of the following provisions is amended by inserting 
        ``Robert T. Stafford'' before ``Disaster Relief and Emergency 
        Assistance Act'':
                    (A) Section 165(i)(1).
                    (B) Section 165(k).
                    (C) Section 1033(h)(3).
                    (D) Section 5064(b)(3).
                    (E) Section 5708(a).
            (8) The heading for subparagraph (F) of section 168(k)(2) is 
        amended by striking ``miniumum'' and inserting ``minimum''.
            (9) Paragraph (1) of section 246A(b) is amended by striking 
        ``section 243(c)(4)'' and inserting ``section 243(d)(4)''.
            (10) Clause (ii) of section 263(g)(2)(B) is amended by 
        striking ``1278'' and inserting ``1276''.
            (11) Clause (ii) of section 403(b)(7)(A) is amended by 
        striking ``section 3121(a)(1)(D)'' and inserting ``section 
        3121(a)(5)(D)''.
            (12) Paragraph (1) of section 408(a) is amended by striking 
        ``457(e)(16)'' and inserting ``457(e)(16),''.
            (13) Paragraph (2) of section 408(n) is amended by striking 
        ``section 101(6)'' and inserting ``paragraph (6) or (7) of 
        section 101''.

[[Page 118 STAT. 1192]]

            (14) The table contained in section 411(a)(12)(B) is amended 
        by striking the last line and inserting the following:

                    ``6 or more................................. 100.''.

            (15) Paragraph (7) of section 414(q) is amended by striking 
        ``section'' and inserting ``subsection''.
            (16) Subparagraph (A) of section 416(i)(1) is amended in the 
        matter following clause (iii) by striking ``in the case of plan 
        years'' and inserting ``In the case of plan years''.
            (17) Subparagraph (C) of section 415(c)(7) is amended by 
        striking ``subparagraph (D)'' and inserting ``subparagraph 
        (B)''.
            (18) The item relating to section 1234B in the table of 
        sections for part IV of subchapter P of chapter 1 is amended to 
        read as follows:

        ``Sec. 1234B. Gains or losses from securities futures 
                            contracts.''.

            (19) Subsection (h) of section 1296 is amended by striking 
        ``paragraphs (2) and (3) of section 851(b)'' and inserting 
        ``section 851(b)(2)''.
            (20) The table of sections for part II of subchapter A of 
        chapter 11 is amended by inserting after the item relating to 
        section 2010 the following new item:

        ``Sec. 2011. Credit for State death taxes.''.

            (21) The table of sections for subchapter A of chapter 13 is 
        amended by inserting after the item relating to section 2603 the 
        following new item:

        ``Sec. 2604. Credit for certain State taxes.''.

            (22) Subsection (c) of section 4973 is amended by striking 
        ``subsection (a)(2)'' and inserting ``subsection (a)(3)''.
            (23) Paragraph (2) of section 4978(a) is amended by striking 
        ``60 percent'' and inserting ``(60 percent''.
            (24) Paragraph (4) of section 6103(p) is amended by striking 
        ``subsection (l)(16) or (17)'' each place it appears and 
        inserting ``subsection (l)(16) or (18)''.

    (b) Other Laws.-- <<NOTE: Applicability.>> 
            (1) <<NOTE: 26 USC 1400E note.>> Subsection (c) of section 
        156 of the Community Renewal Tax Relief Act of 2000 (114 Stat. 
        2763A-623) is amended in the first sentence by inserting 
        ``than'' after ``not later''.
            (2) Paragraph (6) of section 1(a) of Public Law 107-22 shall 
        be applied by substituting ``part VIII'' for ``part VII'' in 
        such paragraph.
            (3) Subparagraph (A) of section 1(b)(3) of Public Law 107-22 
        shall <<NOTE: 26 USC 72.>> be applied by substituting 
        ``educational'' for ``education'' in the matter preceding 
        subparagraph (A) in such section.
            (4) Paragraph (1) of section 204(e) of the Railroad 
        Retirement and Survivors' Improvement Act of 2001 <<NOTE: 26 USC 
        24.>> shall be applied by substituting ``Section 
        24(d)(2)(A)(iii)'' for ``Section 24(d)(3)(A)(iii)'' in such 
        paragraph.
            (5) Paragraph (2) of section 412(b) of the Economic Growth 
        and Tax Relief Reconciliation Act of 2001 <<NOTE: 26 USC 
        221.>> shall be applied by substituting ``Section 221(f)(1)'' 
        for ``Section 221(g)(1)'' in such paragraph.
            (6) Subsection (b) of section 531 of the Economic Growth and 
        Tax Relief Reconciliation Act of 2001 <<NOTE: 26 USC 2011 
        note.>> shall be applied by substituting ``section'' for 
        ``subsection'' in such subsection.

[[Page 118 STAT. 1193]]

            (7) Paragraph (3) of section 619(c) of the Economic Growth 
        and Tax Relief Reconciliation Act of 2001 shall be applied by 
        substituting ``after the item relating to section 45D'' for ``at 
        the end'' in such paragraph.
            (8) The table contained in section 203(a)(4)(B) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1053(a)(4)(B)) is amended by striking the last line and 
        inserting the following:

                    ``6 or more................................. 100.''.

            (9) Paragraph (3) of section 652(b) of the Economic Growth 
        and Tax Relief Reconciliation Act of 2001 <<NOTE: 26 USC 
        4972.>> shall be applied by inserting ``each place it appears'' 
        before ``in the next to last sentence'' in such paragraph.

    Approved October 4, 2004.

LEGISLATIVE HISTORY--H.R. 1308:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 108-696 (Comm. of Conference).
CONGRESSIONAL RECORD:
                                                        Vol. 149 (2003):
                                    Mar. 19, considered and passed 
                                        House.
                                    June 5, considered and passed 
                                        Senate, amended.
                                    June 12, House concurred in Senate 
                                        amendments with an amendment 
                                        pursuant to H. Res. 270.
                                                        Vol. 150 (2004):
                                    Sept. 23, House and Senate agreed to 
                                        conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 40 (2004):
            Oct. 4, Presidential remarks.

                                  <all>