AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.

SEC. 406. AMENDMENTS RELATED TO TAXPAYER RELIEF ACT OF 1997.(a) Amendment Related to Section 211 of the Act.—Subparagraph (B) of section 529(c)(5) is amended to read as follows:“(B) Treatment of designation of new beneficiary.—The taxes imposed by chapters 12 and 13 shall apply to a transfer by reason of a change in the designated beneficiary under the program (or a rollover to the account of a new beneficiary) unless the new beneficiary is—“(i) assigned to the same generation as (or a higher generation than) the old beneficiary (determined in accordance with section 2651), and“(ii) a member of the family of the old beneficiary.”.(b) Amendment Related to Section 213 of the Act.—Clause (iii) of section 530(d)(4)(B) is amended by striking “account holder” and inserting “designated beneficiary”.(c) Amendment Related to Section 226 of the Act.—Section 1397E is amended by adding at the end the following new subsection:“(i) S Corporations.—In the case of a qualified zone academy bond held by an S corporation which is an eligible taxpayer—“(1) each shareholder shall take into account such shareholder’s pro rata share of the credit, and“(2) no basis adjustments to the stock of the corporation shall be made under section 1367 on account of this section.”.(d) Amendment Related to Section 311 of the Act.—Subparagraph (B) of section 55(b)(3) is amended by striking “the amount on which a tax is determined under” and inserting “an amount equal to the excess described in”.(e) Amendments Related to Section 1001 of the Act.—(1) Paragraph (2) of section 1259(c) is amended by striking “The term ‘constructive sale’ shall not include any contract” and inserting “A taxpayer shall not be treated as having made a constructive sale solely because the taxpayer enters into a contract”.(2) Subparagraphs (A) and (B)(i) of section 1259(c)(3) are each amended by striking “be treated as a constructive sale” and inserting “cause a constructive sale”.(3) Clause (i) of section 1259(c)(3)(A) is amended by striking “before the end of” and inserting “on or before”.(4) Clause (ii) of section 1259(c)(3)(B) is amended by striking “substantially similar”.(5) Subclause (I) of section 1259(c)(3)(B)(ii) is amended to read as follows: “(I) which would (but for this subparagraph) cause the requirement of subparagraph (A)(iii) not to be met with respect to the transaction described in clause (i) of this subparagraph,”. (6) Subclause (II) of such section is amended by inserting “on or” before “before the 30th day”.118 STAT. 1190(7) The heading for subparagraph (B) of section 1259(c)(3) is amended by striking “positions which are reestablished” and inserting “certain closed transactions where risk of loss on appreciated financial position diminished”.(f) Amendments Related to Section 1015 of the Act.—(1) Section 246(c)(1)(A) is amended by striking “90-day period” and inserting “91-day period”.(2) Section 246(c)(2)(B) is amended—(A) by striking “180-day period” and inserting “181-day period”, and(B) by striking “90-day period” and inserting “91-day period”.(g) Amendments Related to Section 1053 of the Act.—(1) Section 901(k)(1)(A)(i) is amended by striking “30-day period” and inserting “31-day period”.(2) Section 901(k)(3)(B) is amended—(A) by striking “90-day period” and inserting “91-day period”, and(B) by striking “30-day period” and inserting “31-day period”.(h) Effective Date.—The amendments made by this section shall take effect as if included in the provisions of the Taxpayer Relief Act of 1997 to which they relate.