Page:United States Statutes at Large Volume 120.djvu/1097

 120 STAT. 1066

PUBLIC LAW 109–280—AUG. 17, 2006 (3) CONFIDENTIALITY OF NONCHARITABLE BENEFICIARIES.— Subsection (b) of section 6104 (relating to inspection of annual information returns) is amended by adding at the end the following new sentence: ‘‘In the case of a trust which is required to file a return under section 6034(a), this subsection shall not apply to information regarding beneficiaries which are not organizations described in section 170(c).’’. (4) CLERICAL AMENDMENT.—The item in the table of sections for subpart A of part III of subchapter A of chapter 61 relating to section 6034 is amended to read as follows:

26 USC 6104.

‘‘Sec. 6034. Returns by certain trusts.’’.

(c) EFFECTIVE DATES.— (1) SUBSECTION (a).—The amendment made by subsection (a) shall apply to distributions made in taxable years beginning after December 31, 2005. (2) SUBSECTION (b).—The amendments made by subsection (b) shall apply to returns for taxable years beginning after December 31, 2006.

26 USC 408 note.

26 USC 6034 note.

SEC. 1202. EXTENSION OF MODIFICATION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY.

26 USC 170 note.

(a) IN GENERAL.—Section 170(e)(3)(C)(iv) (relating to termination) is amended by striking ‘‘2005’’ and inserting ‘‘2007’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to contributions made after December 31, 2005. SEC. 1203. BASIS ADJUSTMENT TO STOCK OF S CORPORATION CONTRIBUTING PROPERTY.

(a) IN GENERAL.—Paragraph (2) of section 1367(a) (relating to adjustments to basis of stock of shareholders, etc.) is amended by adding at the end the following new flush sentence: ‘‘The decrease under subparagraph (B) by reason of a charitable contribution (as defined in section 170(c)) of property shall be the amount equal to the shareholder’s pro rata share of the adjusted basis of such property. The preceding sentence shall not apply to contributions made in taxable years beginning after December 31, 2007.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to contributions made in taxable years beginning after December 31, 2005.

26 USC 1367 note.

SEC. 1204. EXTENSION OF MODIFICATION OF CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK INVENTORY.

26 USC 170 note.

(a) IN GENERAL.—Section 170(e)(3)(D)(iv) (relating to termination) is amended by striking ‘‘2005’’ and inserting ‘‘2007’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to contributions made after December 31, 2005. SEC. 1205. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO CONTROLLING EXEMPT ORGANIZATIONS.

(a) IN GENERAL.—Paragraph (13) of section 512(b) (relating to special rules for certain amounts received from controlled entities) is amended by redesignating subparagraph (E) as subparagraph (F) and by inserting after subparagraph (D) the following new subparagraph: ‘‘(E) PARAGRAPH TO APPLY ONLY TO CERTAIN EXCESS PAYMENTS.—

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