Page:United States Statutes at Large Volume 102 Part 4.djvu/458

 102 STAT. 3428 Real property.

PUBLIC LAW 100-647—NOV. 10, 1988

SEC. 1007. AMENDMENTS RELATED TO TITLE VII OF THE REFORM ACT. (a) AMENDMENTS TO SECTION 55 OF THE 1986 CODE.—

(1) Paragraph (1) of section 55(c) of the 1986 Code is amended by inserting before the period at the end of the first sentence the following: "and the section 936 credit allowable under section 27(b)". (2) Paragraph (2) of section 55(b) of the 1986 Code is amended by adding at the end thereof the following new sentence: "If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence)." (3) Effective with respect to taxable years ending after the date of the enactment of this Act, paragraph (3) of section 55(d) of the 1986 Code is amended by adding at the end thereof the following new sentence: "In the case of a taxpayer described in paragraph (l)(C)(i), alternative minimum taxable income shall be increased by the lesser of (i) 25 percent of the excess of alternative minimum taxable income (determined without regard to this sentence) over $155,000, or (ii) $20,000.". (b) AMENDMENTS TO SECTION 56 OF THE 1986 CODE.—

(1) Paragraph (3) of section 56(a) of the 1986 Code is amended by adding at the end thereof the following new sentence: "For purposes of the preceding sentence, in the case of a contract described in section 460(e)(l), the percentage of the contract completed shall be determined under section 4600t))(2) by using the simplified procedures for allocation of costs prescribed under section 460(b)(4)." (2) Subparagraph (E) of section 56(b)(l) of the 1986 Code is amended to read as follows: "(E) STANDARD DEDUCTION AND DEDUCTION FOR PERSONAL EXEMPTIONS NOT ALLOWED.—The standard deduction under

section 63(c), the deduction for personal exemptions under section 151, and the deduction under section 6420t)) shall not be allowed." (3) Subparagraph (C) of section 560^X1) of the 1986 Code is amended by striking out "and" at the end of clause (ii), by striking out the period at the end of clause (iii) and inserting in lieu thereof a comma, and by adding at the end thereof the following new clauses: "(iv) in lieu of the exception under section 163(d)(3)(B)(i), the term 'investment interest' shall not include any qualified housing interest (as defined in subsection (e)), and "(v) the adjustments of this section and sections 57 and 58 shall apply in determining net investment income under section 163(d)." (4) Clause (iii) of section 56(b)(l)(C) of the 1986 Code is amended— (A) by striking out "specified activity bond" and inserting in lieu thereof "specified private activity bond", and (B) by striking out "section 56(a)(5)(B)" and inserting m lieu thereof "section 57(a)(5)(B)". (5) Subparagraph (A) of section 56(d)(2) of the 1986 Code is amended—

�