Page:United States Statutes at Large Volume 118.djvu/1500

 118 STAT. 1470 PUBLIC LAW 108–357—OCT. 22, 2004 SEC. 317. EXTENSION OF DECLARATORY JUDGMENT PROCEDURES TO FARMERS’ COOPERATIVE ORGANIZATIONS. (a) IN GENERAL.—Section 7428(a)(1) (relating to declaratory judgments of tax exempt organizations) is amended by striking ‘‘or’’ at the end of subparagraph (B) and by adding at the end the following new subparagraph: ‘‘(D) with respect to the initial classification or con tinuing classification of a cooperative as an organization described in section 521(b) which is exempt from tax under section 521(a), or’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to pleadings filed after the date of the enactment of this Act. SEC. 318. CERTAIN EXPENSES OF RURAL LETTER CARRIERS. (a) IN GENERAL.—Section 162(o) (relating to treatment of cer tain reimbursed expenses of rural mail carriers) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following: ‘‘(2) SPECIAL RULE WHERE EXPENSES EXCEED REIMBURSE MENTS.—Notwithstanding paragraph (1)(A), if the expenses incurred by an employee for the use of a vehicle in performing services described in paragraph (1) exceed the qualified reimbursements for such expenses, such excess shall be taken into account in computing the miscellaneous itemized deduc tions of the employee under section 67.’’. (b) CONFORMING AMENDMENT.—The heading for section 162(o) is amended by striking ‘‘REIMBURSED’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2003. SEC. 319. TREATMENT OF CERTAIN INCOME OF COOPERATIVES. (a) INCOME FROM OPEN ACCESS AND NUCLEAR DECOMMIS SIONING TRANSACTIONS.— (1) IN GENERAL.—Subparagraph (C) of section 501(c)(12) is amended by striking clause (ii) and adding at the end the following: ‘‘(ii) from any provision or sale of electric energy transmission services or ancillary services if such serv ices are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by FERC or under an inde pendent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member), ‘‘(iii) from the provision or sale of electric energy distribution services or ancillary services if such serv ices are provided on a nondiscriminatory open access basis to distribute electric energy not owned by the mutual or electric cooperative company— ‘‘(I) to end users who are served by distribution facilities not owned by such company or any of its members (other than income received or accrued directly or indirectly from a member), or ‘‘(II) generated by a generation facility not owned or leased by such company or any of its 26 USC 162 note. 26 USC 7428 note.

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