103 STAT. 2414 PUBLIC LAW 101-239—DEC. 19, 1989 Revenue Code of 1986 (as added by subparagraph (A)) is on or before the date which is 75 days after the date of the enactment of this Act, such an election for such year may be made— (i) at any time before the date which is 75 days after such date of enactment, and (ii) in such form and manner as the Secretary of the Treasury or his delegate may prescribe. (C) Section 41 is amended by striMng subsection (h) and by redesignating subsection (i) as subsection (h). (D) Paragraph (4) of section 196(c) is amended by inserting "(other than such credit determined under section 280C(c)(3)) after "section 41(a)". (£) Subsection (n) of section 6501 is amended by striking ", 41(h),". (f) AMENDMENT RELATED TO SECTION 4011 OF THE 1988 ACT. — Subsection (c) of section 67 is amended by striking paragraph (4). SEC. 7815. AMENDMENTS RELATED TO TITLE V OF THE 1988 ACT. (a) AMENDliflENTS RELATED TO SECTION 5012 OF THE 1988 ACT. — (1) Subparagraph (B) of section 7702A(c)(3) is amended to read as follows: "(B) TREATMENT OF CERTAIN BENEFIT INCREASES. —For pur- poses of subparagraph (A), the term 'material change in- cludes any increase m the death benefit under the contract or any increase in, or addition of, a qualified additional benefit under the contract. Such term shall not include— "(i) any increase which is attributable to the pay- ment of premiums necessary to fund the lowest level of the death benefit and qualified additional benefits pay- able in the 1st 7 contract years (determined after taking into account death benefit increases described in subparagraph (A) or (B) of section 7702(e)(2)) or to crediting of interest or other earnings (including policy- holder dividends) in respect of such premiums, and - "(ii) to the extent provided in regulations, any cost-of- living increase based on an established broad-based index if such increase is funded ratably over the remaining period during which premiums are required to be paid under the contract." 26 USC 7702A (2) Paragraph (2) of section 5012(e) of the 1988 Act is amended note. by striking "continues to make level annual premium payments over the life of the contract" and inserting "makes at least 7 level annual premium payments". (3) Subparagraph (A) of section 72(e)(ll) is amended by adding at the end the following new sentence: "The preceding sentence sh^ not apply to any contract de- scribed in paragraph (5)(D)." (4) Paragraph (4) of section 7702A(c) is amended— (A) by striking "UNDER $10,000" in the paragraph heading and inserting "OF $IO,OOO OR LESS", and (B) by striking "the same insurer" and inserting "the same policyholder". (5) Section 72(e)(llXA) is amended by striking "12-month period" and inserting "calendar year". 26 USC 1504 Qy) AMENDMENT RELATED TO SECTION 5021 OF THE 1988 ACT. — note. Subsection (e) of section 5021 of the 1988 Act is amended by striking "no provision in any law (whether enacted before, on, or after the
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