Page:United States Statutes at Large Volume 118.djvu/1581

 118 STAT. 1551 PUBLIC LAW 108–357—OCT. 22, 2004 described in subsection (a) shall be increased by the excess (if any) of— (1) the amount of tax which would have been imposed during such period if this section had not been enacted, over (2) the amount of tax so imposed during such period. (c) QUALIFIED NAVAL SHIP CONTRACT.—For purposes of this section: (1) IN GENERAL.—The term ‘‘qualified naval ship contract’’ means any contract or portion thereof that is for the construc tion in the United States of 1 ship or submarine for the Federal Government if the taxpayer reasonably expects the acceptance date will occur no later than 9 years after the construction commencement date. (2) ACCEPTANCE DATE.—The term ‘‘acceptance date’’ means the date 1 year after the date on which the Federal Government issues a letter of acceptance or other similar document for the ship or submarine. (3) CONSTRUCTION COMMENCEMENT DATE.—The term ‘‘construction commencement date’’ means the date on which the physical fabrication of any section or component of the ship or submarine begins in the taxpayer’s shipyard. (d) EFFECTIVE DATE.—This section shall apply to contracts for ships or submarines with respect to which the construction commencement date occurs after the date of the enactment of this Act. SEC. 709. MODIFICATION OF MINIMUM COST REQUIREMENT FOR TRANSFER OF EXCESS PENSION ASSETS. (a) AMENDMENTS OF ERISA.— (1) Section 101(e)(3) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1021(e)(3)) is amended by striking ‘‘Pension Funding Equity Act of 2004’’ and inserting ‘‘American Jobs Creation Act of 2004’’. (2) Section 403(c)(1) of such Act (29 U.S.C. 1103(c)(1)) is amended by striking ‘‘Pension Funding Equity Act of 2004’’ and inserting ‘‘American Jobs Creation Act of 2004’’. (3) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 1108(b)(3)) is amended by striking ‘‘Pension Funding Equity Act of 2004’’ and inserting ‘‘American Jobs Creation Act of 2004’’. (b) MINIMUM COST REQUIREMENTS.— (1) IN GENERAL.—Section 420(c)(3)(E) is amended by adding at the end the following new clause: ‘‘(ii) INSIGNIFICANT COST REDUCTIONS PERMITTED.— ‘‘(I) IN GENERAL.—An eligible employer shall not be treated as failing to meet the requirements of this paragraph for any taxable year if, in lieu of any reduction of retiree health coverage per mitted under the regulations prescribed under clause (i), the employer reduces applicable employer cost by an amount not in excess of the reduction in costs which would have occurred if the employer had made the maximum permissible reduction in retiree health coverage under such regulations. In applying such regulations to any subsequent taxable year, any reduction in applicable employer cost under this clause shall

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