TREATMENT OF PUBLICLY TRADED PARTNERSHIPS UNDER SECTION 469.

SEC. 10212. TREATMENT OF PUBLICLY TRADED PARTNERSHIPS UNDER SECTION 469. (a) General Rule.— Section 469 (relating to passive activity losses and credits limited) is amended by redesignating subsections (k) and (1) as subsections (1) and (m), respectively, and by inserting after subsection (j) the following new subsection: 101 STAT. 1330–406 “(k) Separate Application of Section in Case of Publicly Traded Partnerships — “(1) In general.— This section shall be applied separately with respect to items attributable to each publicly traded partnership (and subsection (i) shall not apply with respect to items attributable to any such partnership). The preceding sentence shall not apply to any credit determined under section 42, or any rehabilitation investment credit (within the meaning of section 48(o)), attributable to a publicly traded partnership to the extent the amount of any such credits exceeds the regular tax liability attributable to income from such partnership. “(2) Publicly traded partnership.— For purposes of this section, the term ‘publicly traded partnership’ means any partnership if— “(A) interests in such partnership are traded on an established securities market, or “(B) interests in such partnership are readily tradable on a secondary market (or the substantial equivalent thereof).” (b) Conforming Amendments.— Paragraph (3) of section 58(b) and subparagraph (E) of section 163(d)(4) are each amended by striking out “469(l)” and inserting in lieu thereof “469(m)”. (c) Effective Date.— The amendments made by this section shall take effect as if included in the amendments made by section 501 of the Tax Reform Act of 1986.