Page:United States Statutes at Large Volume 102 Part 4.djvu/462

 102 STAT. 3432

PUBLIC LAW 100-647—NOV. 10, 1988 (19) Subsection (a) of section 56 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(8) SECTION 87 NOT APPLICABLE.—Section 87 (relating to alcohol fuel credit) shall not apply." (c) AMENDMENTS TO SECTION 57 OF THE 1986 CODE.—

(1) Clause (iii) of section 57(a)(5)(C) of the 1986 Code is amended by inserting "(whether a current or advance refunding)" after "any refunding bond". (2) Clause (i) of section 57(a)(5)(C) of the 1986 Code is amended to read as follows: "(i) IN GENERAL.—For purposes of this part, the term 'specified private activity bond' means any private activity bond (as defined in section 141) which is issued after August 7, 1986, and the interest on which is not includible in gross income under section 103." (3) Subparagraph (A) of section 57(a)(6) of the 1986 Code is amended by inserting "or 642(c)" after "section 170". (d) AMENDMENTS TO SECTION 58 OF THE 1986 CODE.—

Agriculture and agricultural T^S°^'^'^^'

Taxes.

(1) Paragraph (2) of section 58(a) of the 1986 Code is amended— (A) by striking out "(as modified by section 461(i)(4)(A))", and (B) by striking out "section 469(d), without regard to paragraph (1)(B) thereof and inserting in lieu thereof "section 469(c)". (2) Paragraph (3) of section 58(a) of the 1986 Code is amended by striking out "section 469(g)(l)(C)" and inserting in lieu thereof "section 469(j)(2)". (3) Subsection (a) of section 58 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(4) DETERMINATION OF LOSS.—In determining the amount of the loss from any tax shelter farm activity, the adjustments of sections 56 and 57 shall apply." (4) Subsection (b) of section 58 of the 1986 Code is amended by striking out paragraphs (1), (2), and (3), and inserting in lieu thereof the following: "(1) the adjustments of sections 56 and 57 shall apply, "(2) the provisions of section 469(m) (relating to phase-in of disallowance) shall not apply, and "(3) in lieu of applying section 469(j)(7), the passive activity loss of a taxpayer shall be computed without regard to qualified housing interest (as defined in section 56(e))." (e) AMENDMENTS TO SECTION 59 OF THE 1986 CODE.—

(1) Paragraph (2) of section 59(e) of the 1986 Code is amended by striking out "would have been allowable as a deduction" and inserting in lieu thereof "would have been allowable as a deduction (determined without regard to section 291)". (2) Subsection (h) of section 59 of the 1986 (IJode is amended by striking out "taxable year—" and all that follows and inserting in lieu thereof "taxable year with the adjustments of sections 56, 57, and 58." (3) Paragraph (1) of section 59(a) of the 1986 Code is amended by striking out "and" at the end of subparagraph (B), by striking out the period at the end of subparagraph (C) and inserting in lieu thereof ", and", and by adding at the end thereof the following new subparagraph:

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