REPEAL OF EXPIRED OR OBSOLETE PROVISIONS.

SEC. 11801. REPEAL OF EXPIRED OR OBSOLETE PROVISIONS. (a) Repeals.— The following provisions are hereby repealed: (1) Section 23 (relating to residential energy credit). (2) Paragraph 8282 So in original. Probably should be “Paragraphs”. (1), (2), (3), and (4) of section 39(d) (relating to transitional rules). (3) Subsection (f) of section 56 (relating to adjustments for book income of corporations). (4) Subsection (h) of section 63 (relating to transitional rule for taxable years beginning in 1987). (5) Subsection (i) of section 83 (relating to transitional rules). (6) Section 110 (relating to income tax paid by lessee corporation). (7) Section 113 (relating to mustering-out payments for members of the Armed Forces). (8) Section 114 (relating to sports programs conducted for the American National Red Cross). (9) Section 124 (relating to qualified transportation provided by employers). (10) Section 128 (relating to interest on certain savings certificates). (11) Subsection (i) of section 170 (relating to rule for nonitemization of deductions). (12) Section 184 (relating to amortization of certain railroad rolling stock). (13) Section 188 (relating to amortization of certain expenditures for child care facilities). (14) Subsection (d) of section 190 (relating to application of section). (15) Section 250 (relating to certain payments to the National Railroad Passenger Corporation). (16) Subsection (b) of section 263 (relating to expenditures for advertising and good will). 104 STAT. 1388–521 (17) Subsection (e) of section 305 (relating to dividend reinvestment in stock of public utilities). (18) Subsection (h) of section 306 (relating to stock received in transactions to which 1939 Code applies). (19) Part IV of subchapter C of chapter 1 (relating to insolvency reorganizations). (20) Section 422 (relating to qualified stock options). (21) Section 424 (relating to restricted stock options). (22) Subsection (d) of section 503 (relating to special rule for loans). (23) Paragraph (14) of section 512(b) (relating to modifications applicable in computing unrelated business taxable income). (24) Subsection (c) of section 545 (relating to special adjustment to taxable income). (25) Paragraphs (2), (3), and (4) of section 582(c) (relating to bond, etc., losses and gains of financial institutions). (26) Paragraph (2) of section 585(b) (relating to percentage method). (27) Subsection (i) of section 617 (relating to certain pre–1970 exploration expenditures). (28) Part II of subchapter I of chapter 1 (relating to payments to encourage exploration, etc., for defense purposes! (29) Subparagraphs (C) and (D) of section 861(a)(1) (relating to source rule for interest). (30) Subsection (k) of section 897 (relating to foreign corporations acquired before enactment). (31) Subsection (e) of section 904 (relating to transitional rules for carrybacks and carryovers on the per-country limitation). (32) Subsections (e) and (f)(S)(C) of section 907 (relating to transitional rules). (33) Section 1039 (relating to certain sales of low-income housing projects). (34) Part V of subchapter O of chapter 1 (relating to distributions pursuant to Bank Holding Company Act). (35) Section 1238 (relating to amortization in excess of depreciation). (36) Subsection (c) of section 1401 (relating to credit against self-employment taxes). (37) Chapter 4 (relating to rules applicable to recovery of excessive profits on Government contracts). (38) Section 1564 (relating to transitional rules in the case of certain controlled corporations). (39) Subsection (b) of section 2010 (relating to phase-in of credit). (40) Subsection (b) of section 2505 (relating to phase-in of credit), (41) Paragraph (3) of section 3402(a) (relating to changes made by section 101 of the Economic Recovery Tax Act of 1981). (42) Section 3510 (relating to credit for increased social security employee taxes and railroad retirement tier 1 employee taxes imposed during 1984). (43) Paragraph (3) of section 6018(a) (relating to phase-in of filing requirement amount). (44) Section 6158 (relating to installment payment of tax attributable to divestitures pursuant to Bank Holding Company Act Amendments of 1970). 104 STAT. 1388–522 (45) Subchapter E of chapter 64 (relating to collection of State individual income taxes). (46) Subsection (e) of section 6427 (relating to use in certain taxicabs). (47) Section 6428 (relating to 1981 rate reduction tax credit). (48) Chapter 37 (relating to excise tax on sugar). (b) Clerical Amendments.— (1) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 23. (2) The table of sections for part III of subchapter B of chapter 1 is amended by striking the items relating to sections 110, 113, 114,124, and 128. (3) The table of sections for part VI of subchapter B of chapter 1 is amended by striking the items relating to sections 184 and 188. (4) The table of sections for part Vin of subchapter B of chapter 1 is amended by striking the item relating to section 250. (5) The table of parts for subchapter C of chapter 1 is amended by striking the item relating to part IV. (6) The table of sections for part II of subchapter D of chapter 1 is amended by striking the items relating to sections 422 and 424. (7) The table of parts for subchapter I of chapter 1 is amended by striking the item relating to part II. (8) The table of sections for part DO of subchapter O of chapter 1 is amended by striking the item relating to section 1039. (9) The table of parts for subchapter O of chapter 1 is amended by striking the item relating to part VIII. (10) The table of sections for part IV of subchapter P of chapter 1 is amended by striking the item relating to section 1238. (11) The table of chapters for subtitle A is amended by striking the item relating to chapter 4. (12) The table of sections for part II of subchapter B of chapter 6 is amended by striking the item relating to section 1564. (13) The table of sections for subchapter A of chapter 62 is amended by striking the item relating to section 6158. (14) The table of subchapters for chapter 64 is amended by striking the item relating to subchapter E. (15) The table of sections for subchapter B of chapter 65 is amended by striking the item relating to section 6428. (16) The table of sections for chapter 25 is amended by striking the item relating to section 3510. (17) The table of chapters for subtitle D is amended by striking the item relating to chapter 37. (c) Conforming Amendments.— (1) Amendment relating to repeal of section 23.— subsection (a) of section 1016 is amended by striking paragraph (20) and by redesignating the following paragraphs accordingly. (2) Amendments relating to repeal of section 56(f).— (A) Paragraph (1) of section 56(c) is amended to read as follows: “(1) Adjustment for adjusted current earnings.— Alter-native minimum taxable income shall be adjusted as provided in subsection (g).” 104 STAT. 1388–523 (B) Paragraphs (1) and (2) of section 59(g) are each amended by striking “beginning after 1989”, (C) Clause (iii) of section 56(g)(4)(C) is amended to read as follows: “(iii) Treatment of taxes on dividends from 936 corporations.— “(I) In general.— For purposes of determining the alternative minimum foreign tax credit, 75 percent of any withholding or income tax paid to a possession of the United States with respect to dividends received from a corporation eligible for the credit provided by section 936 shall be treated as a tax paid to a foreign country by the corporation receiving the dividend. “(II) Limitation.— If the aggregate amount of the dividends referred to in subclause (I) for any taxable year exceeds the excess referred to in paragraph (1), the amount treated as tax paid to a foreign country under subclause (1) shall not exceed the amount which would be so treated without regard to this subclause multiplied by a fraction the numerator of which is the excess referred to in paragraph (1) and the denominator of which is the aggregate amount of such dividends. “(III) Treatment of taxes imposed on 936 corporation.— For purposes of this clause, taxes paid by any corporation eligible for the credit provided by section 936 to a possession of the United States shall be treated as a withholding tax paid with respect to any dividend paid by such corporation to the extent such taxes would be treated as paid by the corporation receiving the dividend under rules similar to the rules of section 902 (and the amount of any such dividend shall be increased by the amount so treated).” (D) Paragraph (1) of section 59(a) is amended by inserting “and” at the end of subparagraph (B), by striking subparagraph (C), and by redesignating subparagraph (D) as subparagraph (C). (E) Paragraph (2) of section 59A(b) is amended by striking “(and the last sentence of section 56(f)(2)(B))”. (3) Amendment relating to repeal of section 124.— subsection (f) of section 125 is amended by striking “section 117, 124,” and inserting “section 117,”. (4) Amendment relating to repeal of section 128.— paragraph (2) of section 265(a) is amended by striking “subtitle” and all that follows down through the period at the end thereof and inserting “subtitle.” (5) Amendment relating to repeal of section i70(i).— Section 170 is amended by redesignating subsections (j), (k), (1), (m), and (n) as subsections (i), (j), (k), (1), and (m), respectively. (6) Amendments relating to repeal of amortization provisions.— (A) Subsection (a) of section 48 is amended by striking paragraph (8). 104 STAT. 1388–524 (B) Subsection (f) of section 642 is amended by striking “sections 169, 184, 187, and 188” and inserting “section 169”. (C) Paragraph (2) of section 861(e) is amended by striking “referred to in subparagraph (B) of section I84(d)(D” and inserting “all of whose stock is owned by one or more domestic common carriers by railroad”. (D) Subparagraph (B) of section 1082(a)(2) is amended by striking “169,184, or 188” and inserting “169”. (E) Subparagraph (C) of section 1245(a)(3) is amended by striking “188, and inserting “188 (as in effect before its repeal by the Revenue Reconciliation Act of 1990),”. (F) Paragraph (3) of section 1250(b) is amended by striking “188,” and inserting “188 (as in effect before its repeal by the Revenue Reconciliation Act of 1990),”. (7) Amendments relating to repeal of section 305(e).— (A) Paragraph (1) of section 305(d) is amended by striking “(other than subsection (e))”. (B) Subsection (f) of section 305 is redesignated as subsection (e). (8) Amendments related to repeal of special treatment of insolvency reorganizations.— (A) Subsection (b) of section 47 is amended by inserting “or” at the end of paragraph (1), by striking out “, or” at the end of paragraph (2), and inserting a period, and by striking paragraph (3). (B) Subparagraph (B) of section 168(i)(7) is amended by striking “371(a), 374(a),”. (C) Subparagraph (D) of section 247(b)(2) is amended by striking *, a transaction to which section 371 (relating to insolvency reorganization) applies,”. (D) Subsection (d) of section 354 is hereby repealed. (E) Clause (i) of section 356(d)(2)(B) is amended by striking “or (d)”. (F) (i) Section 357 is amended by striking “351, 361, 371, or 374” each place it appears and inserting “351 or 361”. (ii) Paragraph (2) of section 357(c) is amended by inserting “or” at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B). (G) Section 358 is amended— (i) in subsection (a), by striking “361, 371(b), or 374” and inserting “or 361”, and (ii) by striking subsection (b)(3). (H) Paragraph (3) of section 1245(b) is amended by striking “371(a), 374(a),”. (I) Paragraph (3) of section 1250(d) is amended by striking “371(a), 374(a),”. (9) Amendments relating to repeal of sections 422 and 424.— (A) (i) Section 422A is redesignated as section 422 and section 425 is redesignated as section 424. (ii) The table of sections for part II of subchapter D of chapter 1 is amended by redesignating the items relating to sections 422A and 425 as items relating to sections 422 and 424, respectively. (B) Section 421 is amended— 104 STAT. 1388–525 (i) in subsection (a)— (I) by Striking “422(a), 422A(a), 423(a), or 424(a)” and inserting “422(a) or 423(a)”, (II) by striking “except as provided in section 422(c)(l),” in paragraph (1), and (III) by striking “425(a)” in paragraph (2) and inserting “424(a)”; (ii) in subsection (b)— (I) by striking “422(a), 422A(a), 423(a), or 424(a)” and inserting “422(a) or 423(a)”, and (II) by striking “422(a)(D) 422A(a)(D, 423(a)(D, or 424(a)(D,” and inserting “422(a)(1) or 423(a)(D,”; (iii) in subsection (c)— (I) by striking “422(a), 422A(a), 423(a), and 424(a)” in paragraph (I)(A) and inserting “422(a) and 423(a)”, (II) by striking “sections 423(c) and 424(c)(D” in paragraph (1)(B) and inserting “section 423(c)”, (III) by striking “422(c)(D, 423(c), or 424(c)(1)” each place it appears in paragraphs (2) and (3)(A) and inserting “423(c)”, (IV) by striking “sections 422(c)(D, 423(c), and 424(c)(D” in paragraph (3)(B) and inserting “section 423(c)”, and (V) by striking “such sections” in paragraph (3)(B) and inserting “such section”. (C) Section 422 (as redesignated by subparagraph (A)) is amended— (i) by striking “425(a)” in subsection (a)(2) and inserting “424(a)”, and (ii) by striking paragraph (5) of subsection (c) and by redesignating paragraphs (6), (7), and (8), of subsection (c) as paragraphs (5), (6), and (7), respectively. (D) Subsection (a) of section 423 is amended— (i) by striking “(other than a restricted stock option granted pursuant to a plan described in section 424(c)(3)(B))”, and (ii) by striking “425(a)” and inserting “424(a)”. (E) Subsection (b) of section 423 is amended by striking “425(d)” in paragraph (3) and inserting “424(d)”. ‘ (F) Section 424 (as redesignated by subparagraph (A)) is amended— (i) by striking “425(a)” in subsection (a) and inserting “424(a)” (ii) by striking “422(a)(D, 422A(a)(D, 423(a)(D, or 424(a)(l)” in subsection (c)(3)(A)(ii) and inserting “422(a)(1) or 423(a)(D”, (iii) by striking “422(b)(7), 422A(b)(6), 423(b)(3), and 424(b)(3)” in subsection (d) and inserting “422(b)(6) and 423(b)(3)”, (iv) in subsection (g)— (I) by striking “422(a)(2)( 422A(a)(2), 423(a)(2), and 424(a)(2)” and inserting “422(a)(2) and 423(a)(2)”, and (II) by striking “425(a)” and inserting “424(a)”, and (v) in subsection (h)— 104 STAT. 1388–526 (I) by striking paragraph (2) and inserting the following: “(2) Special rule for section 423 options.— In the case of the transfer of stock pursuant to the exercise of an option to which section 423 applies and which has been so modified, extended, or renewed, the fair market value of such stock at the time of the granting of the option shall be considered as whichever of the following is the highest— “(A) the fair market value of such stock on the date of the original granting of the option, “(B) the fair market value of such stock on the date of the making of such modification, extension, or renewal, or “(C) the fair market value of such stock at the time of the making of any intervening modification, extension, or renewal. (II) by striking “sections 422(b)(6), 423(b)(9), and 424(b)(2)” in paragraph (3)(B) and inserting “section 423(b)(9)”, and (III) by striking the sentence following paragraph (3)(C). (G) Paragraph (3) of section 56(b) is amended— (i) by striking “section 422A” and inserting “section 422”, and (ii) by striking “section 422A(c)(2)” and inserting “section 422(c)(2)”, (H) Clause (ii) of section 1042(c)(2)(B) is amended by striking “section 83, 422, 422A, 423, or 424 applies” and inserting “section 83, 422, or 423 applied (or to which section 422 or 424 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) applied)”. (I) (i) Subparagraph (B) of section 402(a)(3) is amended by striking “section 425” and inserting “section 424”. (ii) Clause (i) of section 402(a)(6)(B) is amended by striking “section 425(f)” and inserting “section 424(f)”. (J) Section 6039 is amended— (i) by striking paragraphs (1) and (2) of subsection (a) and inserting the following: “(1) which in any calendar year transfers a share of stock pursuant to such person’s exercise of an incentive stock option, or “(2) which in any calendar year records (or has by its agent recorded) a transfer of the legal title of a share of stock acquired by the transferor pursuant to his exercise of an option described in section 423(c) (relating to special rule where option price is between 85 percent and 100 percent of value of stock),”, (ii) by striking “a qualified stock option, incentive stock option, a restricted stock option, or an” in subsection (b)(1) and inserting “an incentive stock option or an”, and (iii) by amending subsection (c) to read as follows: “(c) Cross References.— “For definition of— “(1) the term ‘incentive stock option’, sec section 422(b), end “(2) the term ‘employee stock purchase plan* see section 423(b).” (10) Amendments relating to repeal of section 545(c).— (A) Paragraph (15) of section 381(c) is hereby repealed. 104 STAT. 1388–527 (B) Section 545 is amended by redesignating subsection (d) as subsection (c). (11) Amendments relating to repeal of paragraphs (2), (3), and (4) of section 582(c).— Subsection (c) of section 582 is amended— (A) by striking “paragraph (5)” in paragraph (1) and inserting “paragraph (2)”, and (B) by redesignating paragraph (5) as paragraph (2). (12) Amendments relating to repeal of section 585 (b) (2).— (A) Paragraph (4) of section 57(a) is amended by striking “585 or”. (B) Subparagraph (A) of section 291(e)(l) is hereby repealed. (C) Paragraph (1) of section 585(b) is amended by striking “shall not exceed” and all that follows down through the period at the end thereof and inserting “shall not exceed the addition to the reserve for losses on loans determined under the experience method as provided in paragraph (2).” (D) Subsection (b) of section 585 is amended by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (E) Paragraph (3) of section 585(b) (as redesignated by subparagraph (A)) is amended to read as follows: “(3) Regulations; definition of loan.— The Secretary shall define the term loan and prescribe such regulations as may be necessary to carry out the purposes of this section.” (F) Paragraphs (1) (A) and (E) of section 593(b) are each amended by striking “section 585(b)(3)” and inserting “section 585(b)(2)”. (13) Amendment relating to repeal of section 6i7(i).— Section 617 is amended by redesignating subsection (j) as subsection (i). . (14) Amendments relating to repeal of section 86i (a)(i) (c) and (d).— Paragraph (1) of section 861(a) is amended by inserting “and” at the end of subparagraph (A) and by striking the comma at the end of subparagraph (B) and inserting a period. (15) Amendments relating to repeal of section 1039.— (A) Paragraphs (I)(A)(i) and (2)(B)(ii) of section 1250(a) are each amended by inserting “(as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990)” after “section 1039(b)(l)(B)”. (B) Subsection (d) of section 1250 is amended by striking paragraph (8). (C) Section 1250 is amended by striking subsection (g) and by redesignating subsections (h) and (i) as subsections (g) and (h), respectively. (16) Amendment relating to repeal of section 1401(c).— Section 1401 is amended by redesignating subsection (d) as subsection (c). (17) Amendments relating to renegotiation provisions.— (A) Section 6422 is amended by striking paragraph (6) and redesignating the succeeding paragraphs accordingly. (B) Subparagraph (A) of section 6511(d)(2) is amended by striking “; except that” and all that follows down through 104 STAT. 1388–528the period at the end of the first sentence and inserting a period. (C) Section 6515 is amended by striking paragraph (2) and redesignating the succeeding paragraphs accordingly, (18) Amendment relating to repeal of section 1564.— paragraph (5) of section 535(c) is amended by striking “sections 1561 and 1564” and inserting “section 1561”. (19) Amendments related to repeal of unified credit phase-in provisions.— (A) Section 2010 is amended by redesignating subsections (c) and (d) as subsections (b) and (c), respectively. (B) Section 2505 is amended by redesignating subsections (c) and (d) as subsections (b) and (c), respectively. (C) Subsection (a) of section 6018 is amended by re-designating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (20) Amendments related to repeal of section 6158.— (A) Section 6503 is amended by striking subsection (h) and redesignating subsections (i), (j), and (k) as subsections (h), (i), and (j), respectively. (B) Paragraph (2) of section 6601(b) is amended— (i) by striking “or 6158(a)” in the material preceding subparagraph (A), (ii) by striking “or 6158(a), as the case may be” in subparagraph (A), and (iii) by striking the last sentence. (21) Amendments relating to repeal of subchapter e of chapter 64.— (A) Section 6405 is amended by striking subsection (d). (B) Section 7463 is amended by striking subsection (f). (22) Amendments relating to repeal of chapter 37.— (A) Subsection (b) of section 6302 is amended by striking “chapter 21” and all that follows down through “chapter 37,” and inserting “chapter 21, 31, 32, or 33, or by section 4481”. (B) (i) Section 6418 is hereby repealed. (ii) The table of sections for subchapter B of chapter 65 is amended by striking the item relating to section 6418. (C) Subsection (e) of section 6511 is hereby repealed. (D) (i) Section 7240 is hereby repealed. (ii) The table of sections for part II of subchapter A of chapter 75 is amended by striking the item relating to section 7240. (E) (i) Subsection (a) of section 7655 is amended by striking the semicolon at the end of paragraph (2) and inserting a period and by striking paragraph (3). (ii) Subsection (b) of section 7655 is amended by striking the semicolon at the end of paragraph (2) and inserting a period and by striking paragraph (3). (23) Amendments related to repeal of section 6427(e).— (A) Paragraph (1) of section 6427(i) is amended by striking “(e),”. (B) Subparagraph (A) of section 6427(i)(2) is amended to read as follows: “(A) In general.— If $1,000 or more is payable under subsections (a), (b), (d), (g), (h), and (q) to any person with respect to fuel used (or a qualified diesel powered highway 104 STAT. 1388–529vehicle purchased) during any of the first 3 quarters of his taxable year, a claim may be filed under this section with respect to fuel used (or a qualified diesel powered highway vehicle purchased), during such quarter.” (C) Paragraph (2) of section 6427(i) is amended by striking subparagraph (B) and redesignating subparagraph (O as subparagraph (B).