Page:United States Statutes at Large Volume 100 Part 3.djvu/565

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2373

(b) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendments made by this section shall apply to taxable years beginning after December 31, 1986. (2) CHANGE IN METHOD OF ACCOUNTING.—If a taxpayer is

required by the amendments made by this section to change its method of accounting for any taxable year— (A) such change shall be treated as initiated by the taxpayer, (B) such change shall be treated as having been made with the consent of the Secretary, and (C) the adjustments under section 481 of the Internal Revenue Code of 1954 by reason of such change shall be taken into account ratably over a period no longer than the first 4 taxable years beginning after December 31, 1986. (3) SPECIAL RULE FOR CERTAIN CYCLE BILLING.—If a taxpayer

for any taxable year beginning before August 16, 1986, for purposes of chapter 1 of the Internal Revenue Code of 1986 took into account income from services described in section 451(f) of such Code (as added by subsection (a)) on the bsisis of the period in which the customers' meters were read, then such treatment for such year shall be deemed to be proper. SEC. 822. REPEAL OF APPLICATION OF DISCHARGE OF INDEBTEDNESS RULES TO QUALIFIED BUSINESS INDEBTEDNESS.

(a) GENERAL RULE.—Paragraph (1) of section 108(a) (relating to exclusion from gross income of income from discharge of indebtedness) is amended by striking out subparagraph (C), by inserting "or" at the end of subparagraph (A), and by striking out ", or" at the end of subparagraph (B) and inserting in lieu thereof a period. (b) CONFORMING AMENDMENTS.—

(1) Paragraph (2) of section 108(a) is amended to read as follows: "(2) COORDINATION OF EXCLUSIONS.—Subparagraph (B) of paragraph (1) shall not apply to a discharge which occurs in a title 11 case." (2) Section 108 is amended by striking out subsection (c). (3) Section 108(d) is amended— (A) by striking out paragraph (4), (B) by striking out "subsections (a), (b), and (c)" each place it appears in the heading thereof and in the text and heading of paragraphs (6) and (7) and inserting in lieu thereof "subsections (a) and (b)", (C) by striking out the last sentence of paragraph (7)(B), and (D) by striking out "under paragraph (4) of this subsection or" in paragraph (9) thereof. (4) Section 1017(a)(2) is amended by striking out ", 03)(5), or (c)(1)(A)" and inserting in lieu thereof "or G))(5)". (5) Section 10170t))(3)(A) is amended by striking out "or (c)(1)(A)". (c) EFFECTIVE DATE.—The amendments made by this section shall apply to discharges after December 31, 1986. SEC. 823. REPEAL OF DEDUCTION FOR QUALIFIED DISCOUNT COUPONS.

(a) GENERAL RULE.—Section 466 (relating to qualified discount coupons redeemed after close of taxable year) is repealed. Ob) CONFORMING AMENDMENTS.—

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