To provide an amendment.

1. 1

   Change 1: Rewrites page 82, line 25 through page 83, line 13

   ReplacesPrinted page

   Removes page 82, line 25 through page 83, line 13 of the printed bill. See that page

   Inserted: (2) Exception for existing fasits.--The amendments made by this section shall not apply to any FASIT in existence on the date of the enactment of this Act to the extent that regular interests issued by the FASIT before such date continue to remain outstanding in accordance with the original terms of issuance of such interests.

   Original wording

   Beginning on page 82, line 25, strike all through page 83, line 13, and insert:

2. 2

   Change 2: Rewrites page 165, line 21 through page 166, line 8

   ReplacesPrinted page

   Removes page 165, line 21 through page 166, line 8 of the printed bill. See that page

   Inserted: (a) General Rule.--If--

   Inserted: (1) a taxpayer eligible to participate in--

   Inserted: (A) the Department of the Treasury's Offshore Voluntary Compliance Initiative, or

   Inserted: (B) the Department of the Treasury's voluntary disclosure initiative which applies to the taxpayer by reason of the taxpayer's underreporting of United States income tax liability through financial arrangements which rely on the use of offshore arrangements which were the subject of the initiative described in subparagraph (A), and

   Inserted: (2) any interest or applicable penalty is imposed with respect to any arrangement to which any initiative described in paragraph (1) applied or to any underpayment of Federal income tax attributable to items arising in connection with any arrangement described in paragraph (1), then, notwithstanding any other provision of law, the amount of such interest or penalty shall be equal to twice that determined without regard to this section.

   Original wording

   On page 165, beginning with line 21, strike all through page 166, line 8, and insert:

3. 3

   Change 3: Adds SEC. ____. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED INCOME IS TAXED AS IF PARENT'S INCOME on page 206, between lines 19 and 20

   Adds a sectionPrinted page

   Inserted: SEC. ____. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED INCOME IS TAXED AS IF PARENT'S INCOME.

   Inserted: (a) In General.--Section 1(g)(2)(A) (relating to child to whom subsection applies) is amended by striking "age 14" and inserting "age 18".

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to taxable years beginning after December 31, 2003.

   Inserted: SEC. ____. CONSISTENT AMORTIZATION OF PERIODS FOR INTANGIBLES.

   Inserted: (a) Start-Up Expenditures.--

   Inserted: (1) Allowance of deduction.--Paragraph (1) of section 195(b) (relating to start-up expenditures) is amended to read as follows:

   Inserted: "(1) Allowance of deduction.--If a taxpayer elects the application of this subsection with respect to any start-up expenditures--

   Inserted: "(A) the taxpayer shall be allowed a deduction for the taxable year in which the active trade or business begins in an amount equal to the lesser of--

   Inserted: "(i) the amount of start-up expenditures with respect to the active trade or business, or

   Inserted: "(ii) $5,000, reduced (but not below zero) by the amount by which such start-up expenditures exceed $50,000, and

   Inserted: "(B) the remainder of such start-up expenditures shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the active trade or business begins.".

   Inserted: (2) Conforming amendment.--Subsection (b) of section 195 is amended by striking "Amortize" and inserting "Deduct" in the heading.

   Show 61 more inserted paragraphsShow less

   Inserted: (b) Organizational Expenditures.--Subsection (a) of section 248 (relating to organizational expenditures) is amended to read as follows:

   Inserted: "(a) Election to Deduct.--If a corporation elects the application of this subsection (in accordance with regulations prescribed by the Secretary) with respect to any organizational expenditures--

   Inserted: "(1) the corporation shall be allowed a deduction for the taxable year in which the corporation begins business in an amount equal to the lesser of--

   Inserted: "(A) the amount of organizational expenditures with respect to the taxpayer, or

   Inserted: "(B) $5,000, reduced (but not below zero) by the amount by which such organizational expenditures exceed $50,000, and

   Inserted: "(2) the remainder of such organizational expenditures shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the corporation begins business.".

   Inserted: (c) Treatment of Organizational and Syndication Fees or Partnerships.--

   Inserted: (1) In general.--Section 709(b) (relating to amortization of organization fees) is amended by redesignating paragraph (2) as paragraph (3) and by amending paragraph (1) to read as follows:

   Inserted: "(1) Allowance of deduction.--If a taxpayer elects the application of this subsection (in accordance with regulations prescribed by the Secretary) with respect to any organizational expenses--

   Inserted: "(A) the taxpayer shall be allowed a deduction for the taxable year in which the partnership begins business in an amount equal to the lesser of--

   Inserted: "(i) the amount of organizational expenses with respect to the partnership, or

   Inserted: "(ii) $5,000, reduced (but not below zero) by the amount by which such organizational expenses exceed $50,000, and

   Inserted: "(B) the remainder of such organizational expenses shall be allowed as a deduction ratably over the 180-month period beginning with the month in which the partnership begins business.

   Inserted: "(2) Dispositions before close of amortization period.--In any case in which a partnership is liquidated before the end of the period to which paragraph (1)(B) applies, any deferred expenses attributable to the partnership which were not allowed as a deduction by reason of this section may be deducted to the extent allowable under section 165.".

   Inserted: (2) Conforming amendment.--Subsection (b) of section 709 is amended by striking "Amortization" and inserting "Deduction" in the heading.

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

   Inserted: SEC. ____. CLARIFICATION OF DEFINITION OF NONQUALIFIED PREFERRED STOCK.

   Inserted: (a) In General.--Section 351(g)(3)(A) is amended by adding at the end the following: "Stock shall not be treated as participating in corporate growth to any significant extent unless there is a real and meaningful likelihood of the shareholder actually participating in the earnings and growth of the corporation."

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to transactions after May 14, 2003.

   Inserted: SEC. ____. CLASS LIVES FOR UTILITY GRADING COSTS.

   Inserted: (a) Gas Utility Property.--Section 168(e)(3)(E) (defining 15-year property) is amended by striking "and" at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ", and", and by adding at the end the following new clause:

   Inserted: "(iv) initial clearing and grading land improvements with respect to gas utility property."

   Inserted: (b) Electric Utility Property.--Section 168(e)(3) is amended by adding at the end the following new subparagraph:

   Inserted: "(F) 20-year property.--The term '20-year property' means initial clearing and grading land improvements with respect to any electric utility transmission and distribution plant."

   Inserted: (c) Conforming Amendments.--The table contained in section 168(g)(3)(B) is amended--

   Inserted: (1) by inserting "or (E)(iv)" after "(E)(iii)", and

   Inserted: (2) by adding at the end the following new item:

   Inserted: "(F).......................................................25".....

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

   Inserted: SEC. ____. PROHIBITION ON NONRECOGNITION OF GAIN THROUGH COMPLETE LIQUIDATION OF HOLDING COMPANY.

   Inserted: (a) In General.--Section 332 is amended by adding at the end the following new subsection:

   Inserted: "(d) Recognition of Gain on Liquidation of Certain Holding Companies.--

   Inserted: "(1) In general.--Subsection (a) and section 331 shall not apply to any distribution in complete liquidation of an applicable holding company to the extent of the earnings and profits of such company.

   Inserted: "(2) Applicable holding company.--For purposes of this subsection--

   Inserted: "(A) In general.--The term 'applicable holding company' means any corporation--

   Inserted: "(i) which is a member of a chain of includible corporations with a common parent which is a foreign corporation,

   Inserted: "(ii) the stock of which is directly owned by such common parent or another foreign corporation,

   Inserted: "(iii) substantially all of the assets of which consist of stock in other members of such chain of corporations, and

   Inserted: "(iv) which has not been in existence at least 5 years as of the date of the liquidation.

   Inserted: "(B) Includible corporation.--The term 'includible corporation' has the meaning given such term under section 1504(b) (without regard to paragraph (3) thereof)."

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to distributions in complete liquidation occurring after the date of the enactment of this Act.

   Inserted: SEC. ____. LEASE TERM TO INCLUDE CERTAIN SERVICE CONTRACTS.

   Inserted: (a) In General.--Section 168(i)(3) (relating to lease term) is amended by adding at the end the following new subparagraph:

   Inserted: "(C) Special rule for service contracts.--In determining a lease term, there shall be taken into account any optional service contract or other similar arrangement."

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to leases entered into after the date of the enactment of this Act.

   Inserted: SEC. ____. RECOGNITION OF GAIN FROM THE SALE OF A PRINCIPAL RESIDENCE ACQUIRED IN A LIKE-KIND EXCHANGE WITHIN 5 YEARS OF SALE.

   Inserted: (a) In General.--Section 121(d) (relating to special rules for exclusion of gain from sale of principal residence) is amended by adding at the end the following new paragraph:

   Inserted: "(10) Property acquired in like-kind exchange.--If a taxpayer acquired property in an exchange to which section 1031 applied, subsection (a) shall not apply to the sale or exchange of such property if it occurs during the 5-year period beginning with the exchange to which section 1031 applied."

   Inserted: (b) Effective Date.--The amendment made by this section shall apply to sales or exchanges after the date of the enactment of this Act.

   Inserted: SEC. ____. REPEAL OF CAPITAL GAINS TREATMENT FOR CERTAIN TRANSACTIONS INVOLVING OPTIONS AND COMMODITIES DEALERS.

   Inserted: (a) In General.--Subsection (a) of section 1256 (relating to section 1256 contracts marked to market) is amended--

   Inserted: (1) by striking paragraph (3),

   Inserted: (2) by redesignating paragraph (4) as paragraph (3), and

   Inserted: (3) by inserting "and" at the end of paragraph (2).

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 988(c)(1)(E)(iv) is amended to read as follows:

   Inserted: "(iv) Treatment of certain currency contracts.--Except as provided in regulations, in the case of a qualified fund, any bank forward contract, any foreign currency futures contract traded on a foreign exchange, or to the extent provided in regulations any similar instrument, which is not otherwise a section 1256 contract shall be treated as a section 1256 contract for purposes of section 1256.".

   Inserted: (2) Section 1092(b)(2)(A)(ii) is amended by striking "and section 1256(a)(3) will only apply to net gain or net loss attributable to section 1256 contracts,".

   Inserted: (3) Section 1092(d)(5)(B) is amended by striking "1256(a)(4)" and inserting "1256(a)(3)".

   Inserted: (4) Section 1256(c)(1) is amended by striking "paragraphs (1), (2), and (3)" and inserting "paragraphs (1) and (2)".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2003.

   Original wording

   On page 206, between lines 19 and 20, insert:

4. 4

   Change 4: Rewrites page 260, line 7 through page 264, line 6

   ReplacesPrinted page

   Removes page 260, line 7 through page 264, line 6 of the printed bill. See that page

   Inserted: SEC. 521. CIVIL RIGHTS TAX RELIEF.

   Inserted: (a) Deduction Allowed Whether or Not Taxpayer Itemizes Other Deductions.--Subsection (a) of section 62 (defining adjusted gross income) is amended by inserting after paragraph (18) the following new item:

   Inserted: "(19) Costs involving discrimination suits, etc.--Any deduction allowable under this chapter for attorney fees and court costs paid by, or on behalf of, the taxpayer in connection with any action involving a claim of unlawful discrimination (as defined in subsection (e)) or a claim of a violation of subchapter III of chapter 37 of title 31, United States Code. The preceding sentence shall not apply to any deduction in excess of the amount includible in the taxpayer's gross income for the taxable year on account of a judgment or settlement (whether by suit or agreement and whether as lump sum or periodic payments) resulting from such claim.".

   Inserted: (b) Unlawful Discrimination Defined.--Section 62 is amended by adding at the end the following new subsection:

   Inserted: "(e) Unlawful discrimination defined.--For purposes of subsection (a)(19), the term 'unlawful discrimination' means an act that is unlawful under any of the following:

   Inserted: "(1) Section 302 of the Civil Rights Act of 1991 (2 U.S.C. 1202).

   Inserted: "(2) Section 201, 202, 203, 204, 205, 206, or 207 of the Congressional Accountability Act of 1995 (2 U.S.C. 1311, 1312, 1313, 1314, 1315, 1316, or 1317).

   Inserted: "(3) The National Labor Relations Act (29 U.S.C. 151 et seq.).

   Inserted: "(4) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.).

   Inserted: "(5) Section 4 or 15 of the Age Discrimination in Employment Act of 1967 (29 U.S.C. 623 or 633a).

   Inserted: "(6) Section 501 or 504 of the Rehabilitation Act of 1973 (29 U.S.C. 791 or 794).

   Inserted: "(7) Section 510 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1140).

   Show 14 more inserted paragraphsShow less

   Inserted: "(8) Title IX of the Education Amendments of 1972 (29 U.S.C. 1681 et seq.).

   Inserted: "(9) The Employee Polygraph Protection Act of 1988 (29 U.S.C. 201 et seq.).

   Inserted: "(10) The Worker Adjustment and Retraining Notification Act (29 U.S.C. 2102 et seq.).

   Inserted: "(11) Section 105 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2615).

   Inserted: "(12) Chapter 43 of title 38, United States Code (relating to employment and reemployment rights of members of the uniformed services).

   Inserted: "(13) Section 1977, 1979, or 1980 of the Revised Statutes (42 U.S.C. 1981, 1983, or 1985).

   Inserted: "(14) Section 703, 704, or 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-2, 2000e-3, or 2000e-16).

   Inserted: "(15) Section 804, 805, 806, 808, or 818 of the Fair Housing Act (42 U.S.C. 3604, 3605, 3606, 3608, or 3617).

   Inserted: "(16) Section 102, 202, 302, or 503 of the Americans with Disabilities Act of 1990 (42 U.S.C. 12112, 12132, 12182, or 12203).

   Inserted: "(17) Any provision of Federal law (popularly known as whistleblower protection provisions) prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted under Federal law.

   Inserted: "(18) Any provision of State or local law, or common law claims permitted under Federal, State, or local law--

   Inserted: "(i) providing for the enforcement of civil rights, or

   Inserted: "(ii) regulating any aspect of the employment relationship, including prohibiting the discharge of an employee, the discrimination against an employee, or any other form of retaliation or reprisal against an employee for asserting rights or taking other actions permitted by law.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to fees and costs paid after the date of the enactment of this Act with respect to any judgment or settlement occurring after such date.

   Original wording

   Beginning on page 260, line 7, strike all through page 264, line 6, and insert:

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

As printed