AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF 1996.

SEC. 407. AMENDMENTS RELATED TO SMALL BUSINESS JOB PROTECTION ACT OF 1996.(a) Amendment Related to Section 1307 of the Act.—Subsection (b) of section 1377 (relating to post-termination transition period) is amended by adding at the end the following new paragraph:“(3) Special rules for audit related post-termination transition periods.—“(A) No application to carryovers.—Paragraph (1)(B) shall not apply for purposes of section 1366(d)(3).“(B) Limitation on application to distributions.—Paragraph (1)(B) shall apply to a distribution described in section 1371(e) only to the extent that the amount of such distribution does not exceed the aggregate increase (if any) in the accumulated adjustments account (within the meaning of section 1368(e)) by reason of the adjustments referred to in such paragraph.”.(b) Amendments Related to Section 1432 of the Act.—Paragraph (26) of section 401(a) is amended by striking subparagraph (C) and by redesignating subparagraphs (D) through (I) as subparagraphs (C) through (H), respectively.(c) Effective Date.—The amendments made by this section shall take effect as if included in the provisions of the Small Business Job Protection Act of 1996 to which they relate.