Page:United States Statutes at Large Volume 100 Part 3.djvu/1086

 100 STAT. 2894

PUBLIC LAW 99-514—OCT. 22, 1986

(2) an inducement resolution for such project was adopted in March 1985, and (3) substantially all of the electrical power generated by such facility is to be sold to a nongovernmental person pursuant to a long-term power sales agreement in accordance with the Public Utilities Regulatory Policies Act of 1978, then the person referred to in paragraph (3) shall not be treated as the principal user of such facilities by reason of such sales for purposes of subparagraphs (D) and (E) of section 103(b)(6) of the Internal Revenue Code of 1954. CHAPTER 7—MISCELLANEOUS PROVISIONS SEC. 1875. AMENDMENTS RELATED TO TITLE VII OF THE ACT.

(a) AMENDMENT RELATED TO SECTION 711(a).—Subsection (c) of section 58 (relating to estates and trusts) is amended by striking out "of tax preference" and inserting in lieu thereof "of tax preference (and any itemized deductions)". (b) AMENDMENT RELATED TO SECTION 712(1).—Paragraph (1) of section 304(a) (relating to treatment of certain stock purchases) is amended by striking out "In any such case" and inserting in lieu thereof "To the extent that such distribution is treated as a distribution to which section 301 applies". (c) AMENDMENTS RELATED TO SECTION 713.—

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dXA) Section 402(a)(5)(F)(ii) (relating to special rules for key employees) is amended to read as follows: "(ii) 5-PERCENT OWNERS.—An eligible retirement plan described in subclause (III) or (IV) of subparagraph (E)(iv) shall not be treated as an eligible retirement plan for the transfer of a distribution if the employee is a 5-percent owner at the time such distribution is ^ made. For purposes of the preceding sentence, the term ' =''"'*'>' '-^ time during the 5 plan years preceding the plan year in which the distribution is made." (B) The amendments made by subparagraph (A) shall apply to distributions after the date of the enactment of this Act. Such amendments shall apply also to distributions after 1983 and on or before the date of the enactment of this Act to individuals who are not 5-percent owners (as defined in section 402(a)(5)(F)(ii) of the Internal Revenue Code of 1954 (as amended by this paragraph)). (2) Section 713(c) of the Tax Reform Act of 1984 is amended by adding at the end thereof the following new paragraph: "(4) EFFECTIVE DATE FOR PARAGRAPH (3).—The amendment made by paragraph (3) shall apply to distributions after July 18, 1984." (3) Section 62(7) (relating to pension, profit-sharing, and annuity plans of self-employed individuals) is amended by striking out "to the extent attributable to contributions made on behalf of such individual". (4) Section 219(f)(l) (defining compensation) is amended by striking out "reduced by any amount allowable as a deduction to the individual in computing adjusted gross income under paragraph (7) of section 62 '.
 * '5-percent owner' means any individual who is a 5percent owner (as defined in section 416(i)(l)(B)) at any

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