Page:United States Statutes at Large Volume 120.djvu/386

 PUBLIC LAW 109–222—MAY 17, 2006

120 STAT. 355

‘‘(5) SPECIAL RULE FOR MAJOR INTEGRATED OIL COMPANIES.— ‘‘(A) IN GENERAL.—In the case of a major integrated oil company, paragraphs (1) and (4) shall be applied by substituting ‘5-year’ for ‘24 month’. ‘‘(B) MAJOR INTEGRATED OIL COMPANY.—For purposes of this paragraph, the term ‘major integrated oil company’ means, with respect to any taxable year, a producer of crude oil— ‘‘(i) which has an average daily worldwide production of crude oil of at least 500,000 barrels for the taxable year, ‘‘(ii) which had gross receipts in excess of $1,000,000,000 for its last taxable year ending during calendar year 2005, and ‘‘(iii) to which subsection (c) of section 613A does not apply by reason of paragraph (4) of section 613A(d), determined— ‘‘(I) by substituting ‘15 percent’ for ‘5 percent’ each place it occurs in paragraph (3) of section 613A(d), and ‘‘(II) without regard to whether subsection (c) of section 613A does not apply by reason of paragraph (2) of section 613A(d). For purposes of clauses (i) and (ii), all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person and, in case of a short taxable year, the rule under section 448(c)(3)(B) shall apply.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

Applicability.

Applicability.

26 USC 167 note.

SEC. 504. APPLICATION OF FIRPTA TO REGULATED INVESTMENT COMPANIES.

(a) IN GENERAL.—Subclause (II) of section 897(h)(4)(A)(i) (defining qualified investment entity) is amended by inserting ‘‘which is a United States real property holding corporation or which would be a United States real property holding corporation if the exceptions provided in subsections (c)(3) and (h)(2) did not apply to interests in any real estate investment trust or regulated investment company’’ after ‘‘regulated investment company’’. (b) EFFECTIVE DATE.—The amendment made by this section shall take effect as if included in the provisions of section 411 of the American Jobs Creation Act of 2004 to which it relates.

26 USC 897.

26 USC 897 note.

SEC. 505. TREATMENT OF DISTRIBUTIONS ATTRIBUTABLE TO FIRPTA GAINS.

(a) QUALIFIED INVESTMENT ENTITY.— (1) IN GENERAL.—Section 897(h)(1) is amended— (A) by striking ‘‘a nonresident alien individual or a foreign corporation’’ in the first sentence and inserting ‘‘a nonresident alien individual, a foreign corporation, or other qualified investment entity’’, (B) by striking ‘‘such nonresident alien individual or foreign corporation’’ in the first sentence and inserting ‘‘such nonresident alien individual, foreign corporation, or other qualified investment entity’’, and

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