AMENDMENTS RELATED TO TITLE IV OF THE 1988 ACT.

SEC. 7814. AMENDMENTS RELATED TO TITLE IV OF THE 1988 ACT. (a) Amendment Related to Section 4001 of the 1988 Act.—Subsection (c) of section 127 is amended by striking paragraph (8). (b) Amendment Related to Section 4002 of the 1988 Act.—Subparagraph (A) of section 125(e)(2) is amended by striking “includable” and inserting “includible”. (c) Amendments Related to Section 4005 of the 1988 Act.— (1) The paragraph (3) of section 6045(e) added by section 4005 of the 1988 Act is redesignated as paragraph (4). (2) Clause (ii) of section 148(d)(3)(E) is amended by striking “a qualified mortgage bond or”. (d) Amendment Related to Section 4006 of the 1988 Act.—Section 4006 of the 1988 Act is amended— (1) by striking “December 31, 1988” and inserting “Dec. 31, 1988”, and (2) by striking “December 31, 1989” and inserting “Dec. 31, 1989”. (e) Amendments Related to Section 4008 of the 1988 Act.— (1) Subsection (d) of section 196 is amended by striking “substituting” and all that follows through “in the case of—” and inserting “substituting ‘an amount equal to 50 percent of’ for ‘an amount equal to’ in the case of—”. (2)(A) Subsection (c) of section 280C is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: “(3) Election of reduced credit.— “(A) In general.—In the case of any taxable year for which an election is made under this paragraph— “(i) paragraphs (1) and (2) shall not apply, and “(ii) the amount of the credit under section 41(a) shall be the amount determined under subparagraph (B). “(B) Amount of reduced credit.—The amount or credit determined under this subparagraph for any taxable year shall be the amount equal to the excess of— “(i) the amount of credit determined under section 41(a) without regard to this paragraph, over “(ii) the product of— “(I) 50 percent of the amount described in clause (i), and “(II) the maximum rate of tax under section 11(b)(1). “(C) Election.—An election under this paragraph for any taxable year shall be made not later than the time for filing the return of tax for such year (including extensions), shall be made on such return, and shall be made in such manner as the Secretary may prescribe. Such an election, once made, shall be irrevocable.” (B) In the case of a taxable year for which the last date for making the election under section 280C(c)(3) of the Internal 103 STAT. 2414Revenue Code of 1986 (as added by subparagraph (A)) is on or before the date which is 75 days after the date of the enactment of this Act, such an election for such year may be made— (i) at any time before the date which is 75 days after such date of enactment, and (ii) in such form and manner as the Secretary of the Treasury or his delegate may prescribe. (C) Section 41 is amended by striking subsection (h) and by redesignating subsection (i) as subsection (h). (D) Paragraph (4) of section 196(c) is amended by inserting “(other than such credit determined under section 280C(c)(3))” after “section 41(a)”. (E) Subsection (n) of section 6501 is amended by striking “, 41(h),”. (f) Amendment Related to Section 4011 of the 1988 Act.—Subsection (c) of section 67 is amended by striking paragraph (4).