Page:United States Statutes at Large Volume 119.djvu/2626

 119 STAT. 2608

PUBLIC LAW 109–135—DEC. 21, 2005 (4) The following provisions of the Katrina Emergency Tax Relief Act of 2005 are hereby repealed: (A) Title I. (B) Sections 202, 301, 402, 403(b), 406, and 407.

Repeal. Ante, p. 2017. Ante, pp. 2021, 2022, 2027–2029.

TITLE III—OTHER PROVISIONS SEC. 301. GULF COAST RECOVERY BONDS.

It is the sense of the Congress that the Secretary of the Treasury, or the Secretary’s delegate, should designate one or more series of bonds or certificates (or any portion thereof) issued under section 3105 of title 31, United States Code, as ‘‘Gulf Coast Recovery Bonds’’ in response to Hurricanes Katrina, Rita, and Wilma. SEC. 302. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES OF EARNED INCOME CREDIT.

26 USC 32 note.

(a) IN GENERAL.—Subclause (II) of section 32(c)(2)(B)(vi) is amended by striking ‘‘January 1, 2006’’ and inserting ‘‘January 1, 2007’’. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2005. SEC. 303. MODIFICATION OF EFFECTIVE DATE OF EXCEPTION FROM SUSPENSION RULES FOR CERTAIN LISTED AND REPORTABLE TRANSACTIONS.

(a) EFFECTIVE DATE MODIFICATION.— (1) IN GENERAL.—Paragraph (2) of section 903(d) of the American Jobs Creation Act of 2004 is amended to read as follows: ‘‘(2) EXCEPTION FOR REPORTABLE OR LISTED TRANSACTIONS.— ‘‘(A) IN GENERAL.—The amendments made by subsection (c) shall apply with respect to interest accruing after October 3, 2004. ‘‘(B) SPECIAL RULE FOR CERTAIN LISTED AND REPORTABLE TRANSACTIONS.— ‘‘(i) IN GENERAL.—Except as provided in clauses (ii), (iii), and (iv), the amendments made by subsection (c) shall also apply with respect to interest accruing on or before October 3, 2004. ‘‘(ii) PARTICIPANTS IN SETTLEMENT INITIATIVES.— Clause (i) shall not apply to any transaction if, as of January 23, 2006— ‘‘(I) the taxpayer is participating in a settlement initiative described in Internal Revenue Service Announcement 2005–80 with respect to such transaction, or ‘‘(II) the taxpayer has entered into a settlement agreement pursuant to such an initiative. Subclause (I) shall not apply to any taxpayer if, after January 23, 2006, the taxpayer withdraws from, or terminates, participation in the initiative or the Secretary of the Treasury or the Secretary’s delegate determines that a settlement agreement will not be reached pursuant to the initiative within a reasonable period of time.

26 USC 6404 note.

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