MODIFICATION OF CORPORATE ESTIMATED TAX RULES.

SEC. 13225. MODIFICATION OF CORPORATE ESTIMATED TAX RULES. (a) Increase in Required Installment Based on Current Tax.— (1) In general.— Clause (i) of section 6655(d)(1)(B) (relating to amount of required installment) is amended by striking “91 percent” each place it appears and inserting “100 percent”. (2) Conforming amendments.— (A) Subsection (d) of section 6655 is amended— (i) by striking paragraph (3), and (ii) by striking “91 percent” in the paragraph heading of paragraph (2) and inserting “100 percent”. (B) Clause (ii) of section 6655(e)(2)(B) is amended by striking the table contained therein and inserting the following: “In the case of the following required installments: The applicable percentage is: 1st 25 2nd 50 3rd 75 4th 100.” (C) Clause (i) of section 6655(e)(3)(A) is amended by striking “91 percent” and inserting “100 percent”. (b) Modification of Periods for Applying Annualization.— (1) Clause (i) of section 6655(e)(2)(A) is amended— (A) by striking “or for the first 5 months” in subclause (II), (B) by striking “or for the first 8 months” in subclause (III), and (C) by striking “or for the first 11 months” in subclause (IV). (2) Paragraph (2) of section 6655(e) is amended by adding at the end thereof the following new subparagraph: “(C) Election for different annualization periods.— “(i) If the taxpayer makes an election under this clause— “(I) subclause (I) of subparagraph (A)(i) shall be applied by substituting ‘2 months’ for ‘3 months’, 107 STAT. 487 “(II) subclause (II) of subparagraph (A)(i) shall be applied by substituting ‘4 months’ for ‘3 months’, “(III) subclause (III) of subparagraph (A)(i) shall be applied by substituting ‘7 months’ for ‘6 months’, and “(IV) subclause (IV) of subparagraph (A)(i) shall be applied by substituting ‘10 months’ for ‘9 months’. “(ii) If the taxpayer makes an election under this clause— “(I) subclause (II) of subparagraph (A)(i) shall be applied by substituting ‘5 months’ for ‘3 months’, “(II) subclause (III) of subparagraph (A)(i) shall be applied by substituting ‘8 months’ for ‘6 months’, and “(III) subclause (IV) of subparagraph (A)(i) shall be applied by substituting ‘11 months’ for ‘9 months’. “(iii) An election under clause (i) or (ii) shall apply to the taxable year for which made and such an election shall be effective only if made on or before the date required for the payment of the first required installment for such taxable year.” (3) The last sentence of section 6655(g)(3) is amended by striking “and subsection (e)(2)(A)” and inserting “and, except in the case of an election under subsection (e)(2)(C), subsection (e)(2)(A)”. (c) Effective Date.— The amendments made by this section shall apply to taxable years beginning after December 31, 1993.