S.Amdt. 1448

1. Adds SEC. ____. MODIFICATIONS TO NEW QUALIFIED HYBRID MOTOR VEHICLE CREDIT wherever appropriate

   Adds a section

   Inserted: SEC. ____. MODIFICATIONS TO NEW QUALIFIED HYBRID MOTOR VEHICLE CREDIT.

   Inserted: (a) Modifications to Light Duty Hybrids.--

   Inserted: (1) Increase in credit amounts after 2004.--

   Inserted: (A) In general.--Section 30B(c)(2), as added by section 201(a), is amended--

   Inserted: (i) by striking clause (i) of subparagraph (A) and inserting the following new clause:

   Inserted: "(i) In the case of a new qualified hybrid motor vehicle which is a passenger automobile, medium duty passenger vehicle, or light truck and which provides the following percentage of the maximum available power:

   Inserted: "(I) If such vehicle is placed in service after the date of the enactment of this section and before January 1, 2005:

   Inserted: "If percentage of the maximum available power is: The credit amount is:

   Inserted: At least 4 percent but less than 10 percent.......................$250 At least 10 percent but less than 20 percent......................$500 At least 20 percent but less than 30 percent......................$750 At least 30 percent.............................................$1,000.

   Inserted: "(II) If such vehicle is placed in service after December 31, 2004:

   Inserted: "If percentage of the maximum available power is: The credit amount is:

   Inserted: At least 4 percent but less than 10 percent.......................$350 At least 10 percent but less than 20 percent......................$600 At least 20 percent but less than 30 percent......................$850 At least 30 percent..........................................$1,100.",

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   Inserted: (ii) by striking "$500" in subparagraph (B)(i)(I) and inserting "$500 ($600 in the case of any vehicle placed in service after December 31, 2004)",

   Inserted: (iii) by striking "$1,000" in subparagraph (B)(i)(II) and inserting "$1,000 ($1,100 in the case of any vehicle placed in service after December 31, 2004)",

   Inserted: (iv) by striking "$1,500" in subparagraph (B)(i)(III) and inserting "$1,500 ($1,600 in the case of any vehicle placed in service after December 31, 2004)",

   Inserted: (v) by striking "$2,000" in subparagraph (B)(i)(IV) and inserting "$2,000 ($2,100 in the case of any vehicle placed in service after December 31, 2004)",

   Inserted: (vi) by striking "$2,500" in subparagraph (B)(i)(V) and inserting "$2,500 ($2,600 in the case of any vehicle placed in service after December 31, 2004)", and

   Inserted: (vii) by striking "$3,000" in subparagraph (B)(i)(VI) and inserting "$3,000 ($3,100 in the case of any vehicle placed in service after December 31, 2004)".

   Inserted: (B) Effective date.--The amendments made by this paragraph shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.

   Inserted: (2) Option to use like vehicle.--

   Inserted: (A) In general.--Section 30B(c)(2), as added by section 201(a), is amended--

   Inserted: (i) by adding at the end of subparagraph (B) the following new clause:

   Inserted: "(iii) Option to use like vehicle.--For purposes of clause (i), at the option of the vehicle manufacturer, the increase for fuel efficiency may be calculated by comparing the new qualified hybrid motor vehicle to a 'like vehicle'.", and

   Inserted: (ii) by adding at the end of subparagraph (D) the following new clause:

   Inserted: "(iii) Like vehicle.--For purposes of subparagraph (B)(iii), the term 'like vehicle' for a new qualified hybrid motor vehicle derived from a conventional production vehicle produced in the same model year means a model that is equivalent in the following areas:

   Inserted: "(I) Body style (2-door or 4-door).

   Inserted: "(II) Transmission (automatic or manual).

   Inserted: "(III) Acceleration performance (<plus-minus> 0.05 seconds).

   Inserted: "(IV) Drivetrain (2-wheel drive or 4-wheel drive).

   Inserted: "(V) Certification by the Administrator of the Environmental Protection Agency.".

   Inserted: (B) Effective date.--The amendments made by this paragraph shall apply to property placed in service after December 31, 2004, in taxable years ending after such date.

   Inserted: (b) Hybrid Vehicle Credit for Lifetime Fuel Savings.--

   Inserted: (1) In general.--Section 30B(c)(2), as added by section 201(a) and amended by this section, is amended--

   Inserted: (A) by redesignating subparagraph (D) as subparagraph (E),

   Inserted: (B) by inserting after subparagraph (C) the following new subparagraph:

   Inserted: "(D) Conservation credit.--

   Inserted: "(i) Amount.--The amount determined under subparagraph (A)(i) with respect to a passenger automobile, medium duty passenger vehicle, or light truck shall be increased by--

   Inserted: "(I) $350, if such vehicle achieves a lifetime fuel savings of at least 1,200 but less than 1,800 gallons of gasoline,

   Inserted: "(II) $600, if such vehicle achieves a lifetime fuel savings of at least 1,800 but less than 2,400 gallons of gasoline,

   Inserted: "(III) $850, if such vehicle achieves a lifetime fuel savings of at least 2,400 but less than 3,000 gallons of gasoline, and

   Inserted: "(IV) $1,100, if such vehicle achieves a lifetime fuel savings of at least 3,000 gallons of gasoline.

   Inserted: "(ii) Lifetime fuel savings for like vehicle.--For purposes of clause (i), at the option of the vehicle manufacturer, the lifetime fuel savings fuel may be calculated by comparing the new qualified hybrid motor vehicle to a 'like vehicle'.", and

   Inserted: (C) by adding at the end of subparagraph (E) (as redesignated by subparagraph (A)) the following new clause:

   Inserted: "(iv) Lifetime fuel savings.--For purposes of subparagraph (D), the term 'lifetime fuel savings' shall be calculated by dividing 120,000 by the difference between the 2002 model year city fuel economy for the vehicle inertia weight class (as defined in subsection (b)(2)(C)) and the city fuel economy for the new qualified hybrid motor vehicle.".

   Inserted: (2) Effective date.--The amendments made by this subsection shall apply to property placed in service after December 31, 2004, in taxable years ending after such date.

   Inserted: (c) Change in Effective Dates.--

   Inserted: (1) In general.--Subsection (h) of section 30B, as added by section 201(a), is amended to read as follows:

   Inserted: "(h) Application of Section.--This section shall apply to----

   Inserted: "(1) any new qualified fuel cell motor vehicle (as described in subsection (b)) placed in service after December 31, 2004, and purchased before January 1, 2014,

   Inserted: "(2) any new qualified hybrid motor vehicle (as described in subsection (c)) placed in service after the date of the enactment of this section, and purchased before January 1, 2010, and

   Inserted: "(3) any other property placed in service after such date of enactment, and purchased before January 1, 2007.".

   Inserted: (2) Conforming amendment.--Subparagraph (B) of section 30B(b)(3), as added by section 201(a), is amended to read as follows:

   Inserted: "(B) which, in the case of a passenger automobile or light truck for 2004 and later model vehicles, has received a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle,".

   Inserted: (3) Effective date.--The amendments made by this subsection shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.

   Inserted: (d) Credit for Advanced Lean Burn Diesel Technology.--

   Inserted: (1) In general.--Section 30B, as added by section 201(a) and amended by this section, is amended--

   Inserted: (A) by striking "and" at the end of subsection (a)(2),

   Inserted: (B) by striking the period at the end of subsection (a)(3) and inserting ", and",

   Inserted: (C) by adding at the end of subsection (a) the following new paragraph:

   Inserted: "(4) the advanced lean burn technology motor vehicle credit determined under subsection (g).", and

   Inserted: (D) by redesignating subsections (g) and (h) as subsections (h) and (i), respectively, and by inserting after subsection (f) the following new subsection:

   Inserted: "(g) Advanced Lean Burn Technology Motor Vehicle Credit.--

   Inserted: "(1) In general.--For purposes of subsection (a), the advanced lean burn technology motor vehicle credit determined under this subsection with respect to a new qualified advanced lean burn technology motor vehicle placed in service by the taxpayer during the taxable year is the credit amount determined under paragraph (2).

   Inserted: "(2) Credit amount.--

   Inserted: "(A) Increase for fuel efficiency.--The credit amount determined under this paragraph shall be--

   Inserted: "(i) $350, if such vehicle achieves at least 125 percent but less than 150 percent of the 2002 model year city fuel economy,

   Inserted: "(ii) $600, if such vehicle achieves at least 150 percent but less than 175 percent of the 2002 model year city fuel economy,

   Inserted: "(iii) $850, if such vehicle achieves at least 175 percent but less than 200 percent of the 2002 model year city fuel economy, and

   Inserted: "(iv) $1,100, if such vehicle achieves at least 200 percent of the 2002 model year city fuel economy.

   Inserted: For purposes of clause (i), the 2002 model year city fuel economy with respect to a vehicle shall be determined using the tables provided in subsection (b)(2)(B) with respect to such vehicle.

   Inserted: "(B) Conservation credit.--The amount determined under subparagraph (A) with respect to an advanced lean burn technology motor vehicle shall be increased by--

   Inserted: "(i) $350, if such vehicle achieves a lifetime fuel savings of at least 1,200 but less than 1,800 gallons of gasoline,

   Inserted: "(ii) $600, if such vehicle achieves a lifetime fuel savings of at least 1,800 but less than 2,400 gallons of gasoline,

   Inserted: "(iii) $850, if such vehicle achieves a lifetime fuel savings of at least 2,400 but less than 3,000 gallons of gasoline, and

   Inserted: "(iv) $1,100, if such vehicle achieves a lifetime fuel savings of at least 3,000 gallons of gasoline.

   Inserted: "(C) Option to use like vehicle.--At the option of the vehicle manufacturer, the increase for fuel efficiency and conservation credit may be calculated by comparing the new advanced lean-burn technology motor vehicle to a like vehicle.

   Inserted: "(3) Definitions.--For purposes of this subsection--

   Inserted: "(A) New advanced lean burn technology motor vehicle.--The term 'new advanced lean burn technology motor vehicle' means a motor vehicle with an internal combustion engine--

   Inserted: "(i) which is designed to operate primarily using more air than is necessary for complete combustion of the fuel,

   Inserted: "(ii) which incorporates direct injection,

   Inserted: "(iii) which achieves at least 125 percent of the 2002 model year city fuel economy,

   Inserted: "(iv) which, for 2005 and later model vehicles, has received a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission levels for passenger vehicles established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make and model year vehicle, except any manufacturer may provide not to exceed 5,000 passenger vehicles per year which are Tier II compliant,

   Inserted: "(v) the original use of which commences with the taxpayer,

   Inserted: "(vi) which is acquired for use or lease by the taxpayer and not for resale, and

   Inserted: "(vii) which is made by a manufacturer.

   Inserted: "(B) Like vehicle.--The term 'like vehicle' for an advanced lean burn technology motor vehicle derived from a conventional production vehicle produced in the same model year means a model that is equivalent in the following areas:

   Inserted: "(i) Body style (2-door or 4-door),

   Inserted: "(ii) Transmission (automatic or manual),

   Inserted: "(iii) Acceleration performance (<plus-minus> 0.05 seconds).

   Inserted: "(iv) Drivetrain (2-wheel drive or 4-wheel drive).

   Inserted: "(v) Certification by the Administrator of the Environmental Protection Agency.

   Inserted: "(C) Lifetime fuel savings.--The term 'lifetime fuel savings' shall be calculated by dividing 120,000 by the difference between the 2002 model year city fuel economy for the vehicle inertia weight class (as defined in subsection (b)(2)(C)) and the city fuel economy for the new qualified hybrid motor vehicle.".

   Inserted: (2) Effective date.--The amendments made by this subsection shall apply to property placed in service after December 31, 2004, in taxable years ending after such date.

   Inserted: SEC. ____. CREDIT FOR CLEAN HEAVY-DUTY DIESEL VEHICLES.

   Inserted: (a) In General.--Section 30B(a), as added by section 201(a) and amended by this Act, is amended--

   Inserted: (1) by striking "and" at the end of paragraph (3),

   Inserted: (2) by striking the period at the end of paragraph (4) and inserting ", and",

   Inserted: (3) by adding at the end the following new paragraph:

   Inserted: "(5) the clean heavy-duty diesel motor vehicle credit determined under subsection (h).".

   Inserted: (b) Clean Heavy-Duty Diesel Motor Vehicle Credit.--Section 30B, as added by section 201(a) and amended by this Act, is amended by redesignating subsections (h) and (i) as subsections (i) and (j), respectively, and by inserting after subsection (g) the following new subsection:

   Inserted: "(h) Clean Heavy-Duty Diesel Motor Vehicle Credit.--

   Inserted: "(1) In general.--For purposes of subsection (a), the clean heavy-duty diesel motor vehicle credit determined under this subsection with respect to a new clean heavy-duty diesel motor vehicle placed in service by the taxpayer during the taxable year is the credit amount determined under paragraph (2).

   Inserted: "(2) Credit amount.--The credit amount determined under this paragraph shall be the sum of--

   Inserted: "(A) for any 2006 model vehicle, 50 percent of the incremental cost of such vehicle, if such vehicle meets the heavy-duty emission standards of 2007,plus

   Inserted: "(B) for any 2006 or later model vehicle, $2,500, if such vehicle meets the heavy-duty emission standards of 2010.

   Inserted: "(3) Definitions and special rules.--For purposes of this subsection--

   Inserted: "(A) New heavy-duty diesel motor vehicle.--The term 'new heavy-duty diesel motor vehicle' means a motor vehicle with a diesel-fueled internal combustion engine--

   Inserted: "(i) which has a gross vehicle weight rating of at least 8,500 pounds,

   Inserted: "(ii) the original use of which commences with the taxpayer,

   Inserted: "(iii) which is acquired for use or lease by the taxpayer and not for resale, and

   Inserted: "(iv) which is made by a manufacturer.

   Inserted: "(B) Incremental cost.--The incremental cost of any new clean heavy-duty diesel motor vehicle is equal to the amount of the excess of the manufacturer's suggested retail price for such vehicle over such price for a motor vehicle of the same model described in subparagraph (A) without regard to clause (ii) thereof, to the extent such amount does not exceed $5,000.

   Inserted: "(C) Heavy-duty emission standards of 2007.--The term 'heavy-duty emission standards of 2007' means the motor vehicle emission standards promulgated by the Administrator of the Environmental Protection Agency on January 18, 2001, under section 202 of the Clean Air Act to apply to heavy-duty vehicles of model years beginning with the 2007 vehicle model year.

   Inserted: "(D) Heavy-duty emission standards of 2010.--The term 'heavy-duty emission standards of 2010' means the motor vehicle emission standards promulgated by the Administrator of the Environmental Protection Agency under section 202 of the Clean Air Act to apply to heavy-duty vehicles of model years beginning with the 2010 vehicle model year.

   Inserted: (d) Change in Effective Dates.--Subsection (j) of section 30B, as redesignated by subsection (b), is amended to read as follows:

   Inserted: "(j) Application of Section.--This section shall apply to----

   Inserted: "(1) any new qualified fuel cell motor vehicle (as described in subsection (b)) placed in service after December 31, 2004, and purchased before January 1, 2014,

   Inserted: "(2) any new qualified hybrid motor vehicle (as described in subsection (c)) placed in service after the date of the enactment of this section, and purchased before January 1, 2010, and

   Inserted: "(3) any new clean heavy-duty diesel motor vehicle (as described in subsection (h)) placed in service after December 31, 2005, and purchased before January 1, 2010, and

   Inserted: "(4) any other property placed in service after such date of enactment, and purchased before January 1, 2007.".

   Inserted: (e) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2005, in taxable years ending after such date.

   Inserted: SEC. ____. CREDIT FOR PRODUCING LOW SULFUR CONTENT DIESEL FUEL.

   Inserted: (a) In General.--Subpart B of part IV of subchapter A of chapter 1 (relating to other credits), as amended by this Act, is amended by inserting after section 30C the following new section:

   Inserted: "SEC. 30D. CREDIT FOR PRODUCING CLEAN DIESEL FUEL.

   Inserted: "(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to--

   Inserted: "(1) the applicable dollar amount, multiplied by

   Inserted: "(2) the barrel-of-oil equivalent of clean diesel fuel--

   Inserted: "(A) sold by the taxpayer to an unrelated person during the taxable year, and

   Inserted: "(B) the production of which is attributable to the taxpayer.

   Inserted: "(b) Applicable Dollar Amount.--For purposes of subsection (a)(1), the applicable dollar amount for fuel sold during the period--

   Inserted: "(1) beginning on the date which is 90 days after the date of the enactment of this section and ending before June 1, 2006, is $4.20, and

   Inserted: "(2) beginning after May 31, 2006, and ending before January 1, 2007, $2.10.

   Inserted: "(b) Limitations and Adjustments.--

   Inserted: "(1) Credit reduced for grants, tax-exempt bonds, and subsidized energy financing.--

   Inserted: "(A) In general.--The amount of the credit allowable under subsection (a) with respect to any project for any taxable year shall be reduced by the amount which is the product of the amount so determined for such year and a fraction--

   Inserted: "(i) the numerator of which is the sum, for the taxable year and all prior taxable years, of--

   Inserted: "(I) grants provided by the United States, a State, or a political subdivision of a State for use in connection with the project,

   Inserted: "(II) proceeds of any issue of State or local government obligations used to provide financing for the project the interest on which is exempt from tax under section 103, and

   Inserted: "(III) the aggregate amount of subsidized energy financing (within the meaning of section 48(a)(6)(C)) provided in connection with the project, and

   Inserted: "(ii) the denominator of which is the aggregate amount of additions to the capital account for the project for the taxable year and all prior taxable years.

   Inserted: "(B) Amounts determined at close of year.--The amounts under subparagraph (A) for any taxable year shall be determined as of the close of the taxable year.

   Inserted: "(2) Credit reduced for enhanced oil recovery credit and environmental tax credit.--The amount allowable as a credit under subsection (a) with respect to any project for any taxable year (determined after application of paragraphs (1) and (3)) shall be reduced by the excess (if any) of--

   Inserted: "(A) the aggregate amount allowed under section 38 for the taxable year and any prior taxable year by reason of any enhanced oil recovery credit determined under section 43 and any environmental tax credit determined under section 45L with respect to such project, over

   Inserted: "(B) the aggregate amount recaptured with respect to the amount described in subparagraph (A) under this paragraph for any prior taxable year.

   Inserted: "(3) Application with other credits.--The credit allowed by subsection (a) for any taxable year shall not exceed the excess (if any) of--

   Inserted: "(A) the regular tax for the taxable year reduced by the sum of the credits allowable under subpart A and this subpart (other than this section), over

   Inserted: "(B) the tentative minimum tax for the taxable year.

   Inserted: "(c) Definitions and Special Rules.--For purposes of this section--

   Inserted: "(1) Clean diesel fuel.--The term 'clean diesel fuel' means motor vehicle diesel fuel which upon sale has a sulfur content as low as feasible, as determined by the Administrator of the Environmental Protection Agency taking into consideration costs, but not higher than 15 ppm.

   Inserted: "(2) Only production within the united states taken into account.--Sales shall be taken into account under this section only with respect to diesel fuel the production of which is within--

   Inserted: "(A) the United States (within the meaning of section 638(1)), or

   Inserted: "(B) a possession of the United States (within the meaning of section 638(2)).

   Inserted: "(3) Production attributable to the taxpayer.--In the case of a property or facility in which more than 1 person has an interest, except to the extent provided in regulations prescribed by the Secretary, production from the property or facility (as the case may be) shall be allocated among such persons in proportion to their respective interests in the gross sales from such property or facility.

   Inserted: "(4) Barrel-of-oil equivalent.--The term 'barrel-of-oil equivalent' with respect to any fuel means that amount of such fuel which has a Btu content of 5.8 million.

   Inserted: "(5) Barrel defined.--The term 'barrel' means 42 United States gallons.

   Inserted: "(6) Related persons.--Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling clean diesel fuel to an unrelated person if such fuel is sold to such a person by another member of such group.

   Inserted: "(7) Pass-thru in the case of estates and trusts.--Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.

   Inserted: "(e) Termination.--This section shall not apply with respect to clean diesel fuel which is sold at retail after December 31, 2006.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 53(d)(1)(B)(iii), as amended by this Act, is amended by striking "or" and inserting before the period at the end the following: ", or under section 30D solely by reason of the application of section 30D(b)(3)".

   Inserted: (2) Section 55(c)(2), as amended by this Act, is amended by inserting ", 30D(b)(3)," after "30(b)(2)".

   Inserted: (3) Section 772 is amended--

   Inserted: (A) in subsection (a), by striking "and" at the end of paragraph (10), by redesignating paragraph (11) as paragraph (12), and by inserting after paragraph (10) the following new paragraph:

   Inserted: "(11) the credit allowable under section 30D, and", and

   Inserted: (B) in subsection (d)(5), by striking "and", and by inserting before the period the following: ", and the credit allowable under section 30D".

   Inserted: (4) The table of sections for subpart B of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 30C the following new item:

   Inserted: "Sec. 30D. Credit for producing clean diesel fuel.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to sales on and after the date which is 90 days after the date of the enactment of this Act.

   Inserted: SEC. ____. PREVENTING CORPORATE EXPATRIATION TO AVOID UNITED STATES INCOME TAX.

   Inserted: (a) In General.--Paragraph (4) of section 7701(a) (defining domestic) is amended to read as follows:

   Inserted: "(4) Domestic.--

   Inserted: "(A) In general.--Except as provided in subparagraph (B), the term 'domestic' when applied to a corporation or partnership means created or organized in the United States or under the law of the United States or of any State unless, in the case of a partnership, the Secretary provides otherwise by regulations.

   Inserted: "(B) Certain corporations treated as domestic.--

   Inserted: "(i) In general.--The acquiring corporation in a corporate expatriation transaction shall be treated as a domestic corporation.

   Inserted: "(ii) Corporate expatriation transaction.--For purposes of this subparagraph, the term 'corporate expatriation transaction' means any transaction if--

   Inserted: "(I) a nominally foreign corporation (referred to in this subparagraph as the 'acquiring corporation') acquires, as a result of such transaction, directly or indirectly substantially all of the properties held directly or indirectly by a domestic corporation, and

   Inserted: "(II) immediately after the transaction, more than 80 percent of the stock (by vote or value) of the acquiring corporation is held by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation.

   Inserted: "(iii) Lower stock ownership requirement in certain cases.--Subclause (II) of clause (ii) shall be applied by substituting '50 percent' for '80 percent' with respect to any nominally foreign corporation if--

   Inserted: "(I) such corporation does not have substantial business activities (when compared to the total business activities of the expanded affiliated group) in the foreign country in which or under the law of which the corporation is created or organized, and

   Inserted: "(II) the stock of the corporation is publicly traded and the principal market for the public trading of such stock is in the United States.

   Inserted: "(iv) Partnership transactions.--The term 'corporate expatriation transaction' includes any transaction if--

   Inserted: "(I) a nominally foreign corporation (referred to in this subparagraph as the 'acquiring corporation') acquires, as a result of such transaction, directly or indirectly properties constituting a trade or business of a domestic partnership,

   Inserted: "(II) immediately after the transaction, more than 80 percent of the stock (by vote or value) of the acquiring corporation is held by former partners of the domestic partnership or related foreign partnerships (determined without regard to stock of the acquiring corporation which is sold in a public offering related to the transaction), and

   Inserted: "(III) the acquiring corporation meets the requirements of subclauses (I) and (II) of clause (iii).

   Inserted: "(v) Special rules.--For purposes of this subparagraph--

   Inserted: "(I) a series of related transactions shall be treated as 1 transaction, and

   Inserted: "(II) stock held by members of the expanded affiliated group which includes the acquiring corporation shall not be taken into account in determining ownership.

   Inserted: "(vi) Other definitions.--For purposes of this subparagraph--

   Inserted: "(I) Nominally foreign corporation.--The term 'nominally foreign corporation' means any corporation which would (but for this subparagraph) be treated as a foreign corporation.

   Inserted: "(II) Expanded affiliated group.--The term 'expanded affiliated group' means an affiliated group (as defined in section 1504(a) without regard to section 1504(b)).

   Inserted: "(III) Related foreign partnership.--A foreign partnership is related to a domestic partnership if they are under common control (within the meaning of section 482), or they shared the same trademark or tradename."

   Inserted: (b) Effective Dates.--

   Inserted: (1) In general.--The amendment made by this section shall apply to corporate expatriation transactions completed after September 11, 2001.

   Inserted: (2) Special rule.--The amendment made by this section shall also apply to corporate expatriation transactions completed on or before September 11, 2001, but only with respect to taxable years of the acquiring corporation beginning after December 31, 2003.

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As printed