PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3445
before January 1, 1987, if the taxpayer treated such income in the same manner for the taxable year preceding such taxable year." (i) AMENDMENT RELATED TO SECTION 822 OF THE REFORM ACT.—
Paragraph (1) of section 703(b) of the 1986 Code is amended by striking out "or (d)(4)". (j) AMENDMENTS RELATED TO SECTION 824 OF THE REFORM ACT.—
(1) Section 6501(o) of the 1986 Code which relates to cross references is amended by striking out paragraph (3). (2) Paragraph (4) of section 824(c) of the Reform Act is amend- 26 USC 118 note. ed by striking out "an indemnity agreement" and inserting in lieu thereof "an underwriting agreement". SEC. 1009. AMENDMENTS RELATED TO TITLE IX OF THE REFORM ACT. (a) AMENDMENTS RELATED TO SECTION 901 OF THE REFORM ACT.—
(1) Subparagraph (C) of section 46(e)(4) of the 1986 Code is amended by adding at the end thereof the following new sentences: "Notwithstanding the preceding provisions of this subparagraph, any such election shall terminate effective with respect to the 1st taxable year of the organization making such election which begins aiter 1986 and during which such organization (or any successor organization) was not at any time the lessee under any lease of regular investment tax credit property. For purposes of the preceding sentence, the term ' r ^ u l a r investment tax credit property' means any section 38 property if the regular percentage applied to such property and the amount of qualified investment with respect to such property would have been reduced under paragraph (1) but for an election under this subparagraph." (2)(A) Paragraph (5) of section 585(c) of the 1986 Code is amended by adding at the end thereof the following new subparagraph: "(C) ELECTION MADE BY EACH MEMBER.—In the case of a parent-subsidiary controlled group, any election under this section shall be made separately by each member of such group." (B) Subclause (1) of section 585(c)(3)(A)(iii) of the 1986 Code is amended by striking out "or such greater amount as the taxpayer may designate" and inserting in lieu thereof "or such higher percentage of such net amount as the taxpayer may elect". (C) a a u s e (ii) of section 585(c)(3)(B) of the 1986 Code is amended by striking out "designate an amount" and inserting in lieu thereof "elects a higher percentage". (3) Paragraph (4) of section 585(c) of the 1986 Code is amended by adding at the end thereof the following new sentence: "If the amount of the reserve referred to in subparagraph (B) as of the close of any taxable year exceeds the outstanding badance (as of such time) of the loans referred to in subpsu'agraph (B), such excess shall be included in gross income for such taxable year." (b) AMENDMENTS RELATED TO SECTION 902 OF THE REFORM ACT.—
(1) Paragraph (3) of section 902(f) of the Reform Act is State listing. amended— 26 USC 265 note. (A) in subparagraph (F), by striking out "distribution company" and inserting in lieu thereof "distribution facility', (B) in subparagraph (L), by striking out "waterfront project" and inserting in lieu thereof "2 Festival Market
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