To modify the involuntary conversion rules for businesses affected by the September 11, 2001, terrorist attacks.

1. 1

   Change 1: Inserts new text at the end of subtitle C of title V

   Inserts

   In S. 1054 · Placed on Calendar Senate

   (c) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued after the date of enactment of this section in taxable years ending after such date.

   Inserted: SEC. . MODIFICATION OF INVOLUNTARY CONVERSION RULES FOR BUSINESSES AFFECTED BY THE SEPTEMBER 11TH TERRORIST ATTACKS.

   Inserted: (a) In General.--Subsection (g) of section 1400L is amended to read as follows:

   Inserted: "(g) Modification of Rules Applicable to Nonrecognition of Gain.--In the case of property which is compulsorily or involuntarily converted as a result of the terrorist attacks on September 11, 2001, in the New York Liberty Zone--

   Inserted: "(1) which was held by a corporation which is a member of an affiliated group filing a consolidated return, such corporation shall be treated as satisfying the purchase requirement of section 1033(a)(2) with respect to such property to the extent such requirement is satisfied by another member of the group, and

   Inserted: "(2) notwithstanding subsections (g) and (h) of section 1033, clause (i) of section 1033(a)(2)(B) shall be applied by substituting '5 years' for '2 years' but only if substantially all of the use of the replacement property is in the City of New York, New York.".

   Inserted: (b) Effective Date.--The amendments made by this Act shall apply to involuntary conversions occurring on or after September 11, 2001.

   Original wording

   At the end of subtitle C of title V, insert the following:

2. 2

   Change 2: Replaces “2007” with “2008”

   ReplacesPage 19, line 13Printed page

   [struck: 2007][inserted: 2008]

   Original wording

   On page 19, line 13, strike “2007” and insert “2008”.

Read automatically from the Congressional Record. Check the original before relying on it.

As printed