REPEAL OF 30-PERCENT GROSS INCOME LIMITATION.

SEC. 1271. REPEAL OF 30-PERCENT GROSS INCOME LIMITATION. (a) General Rule.—Subsection (b) of section 851 (relating to limitations) is amended by striking paragraph (3), by adding “and” at the end of paragraph (2), and by redesignating paragraph (4) as paragraph (3). (b) Technical Amendments.— (1) The material following paragraph (3) of section 851(b) (as redesignated by subsection (a)) is amended— (A) by striking out “paragraphs (2) and (3)” and inserting “paragraph (2)”, and (B) by striking out the last sentence thereof. (2) Subsection (c) of section 851 is amended by striking “subsection (b)(4)” each place it appears (including the heading) and inserting “subsection (b)(3)”. (3) Subsection (d) of section 851 is amended by striking “subsections (b)(4)” and inserting “subsections (b)(3)”. (4) Paragraph (1) of section 851(e) is amended by striking “subsection (b)(4)” and inserting “subsection (b)(3)”. (5) Paragraph (4) of section 851(e) is amended by striking “subsections (b)(4)” and inserting “subsections (b)(3)”.111 STAT. 1037 (6) Section 851 is amended by striking subsection (g) and redesignating subsection (h) as subsection (g). (7) Subsection (g) of section 851 (as redesignated by paragraph (6)) is amended by striking paragraph (3). (8) Section 817(h)(2) is amended— (A) by striking “851(b)(4)” in subparagraph (A) and inserting “851(b)(3)”, and (B) by striking “851(b)(4)(A)(i)” in subparagraph (B) and inserting “851(b)(3)(A)(i)”. (9) Section 1092(f)(2) is amended by striking “Except for purposes of section 851(b)(3), the” and inserting “The”. (c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.