110 STAT. 1878 PUBLIC LAW 104-188—AUG. 20, 1996 (14) Subparagraph (B) of section 117(d)(2) is amended by striking "section 132(f)" and inserting "section 132(h)". 26 USC 39 note. (o) EFFECTIVE DATE.—Any amendment made by this section shall take effect as if included in the provision of the Revenue Reconciliation Act of 1993 to which such amendment relates. SEC. 1704. MISCELLANEOUS PROVISIONS. 26 USC 401, 420, (a) APPLICATION OF AMENDMENTS MADE BY TITLE XII OF OMNI- 4980. BUS BUDGET RECONCILIATION ACT OF 1990.— Except as otherwise expressly provided, whenever in title XII of the Omnibus Budget Reconciliation Act of 1990 an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (b) TREATMENT OF CERTAIN AMOUNTS UNDER HEDGE BOND RULES. — (1) IN GENERAL.— Clause (iii) of section 149(g)(3)(B) is amended to read as follows: "(iii) AMOUNTS HELD PENDING REINVESTMENT OR REDEMPTION. —Amounts held for not more than 30 days pending reinvestment or bond redemption shall be treated as invested in bonds described in clause (i).". 26 USC 149 note. (2) EFFECTIVE DATE. —The amendment made by paragraph (1) shall take effect as if included in the amendments made by section 7651 of the Omnibus Budget Reconciliation Act of 1989. (c) TREATMENT OF CERTAIN DISTRIBUTIONS UNDER SECTION 1445.— (1) IN GENERAL.— Paragraph (3) of section 1445(e) is amended by adding at the end thereof the following new sentence: "Rules similar to the rules of the preceding provisions of this paragraph shall apply in the case of any distribution to which section 301 applies and which is not made out of the earnings and profits of such a domestic corporation.". 26 USC 1445 (2) EFFECTIVE DATE. —The amendment made by paragraph note. (1) shall apply to distributions after the date of the enactment of this Act. (d) TREATMENT OF CERTAIN CREDITS UNDER SECTION 469.— (1) IN GENERAL. — Subparagraph (B) of section 469(c)(3) is amended by adding at the end thereof the following new sentence: "If the preceding sentence applies to the net income from any property for any taxable year, any credits allowable under subpart B (other than section 27(a)) or D of part IV of subchapter A for such taxable year which are attributable to such property shall be treated as credits not from a passive activity to the extent the amount of such credits does not exceed the regular tax liability of the taxpayer for the taxable year which is allocable to such net income.". 26 USC 469 note. (2) EFFECTIVE DATE.— The amendment made by paragraph (1) shall apply to taxable years beginning after December 31, 1986. (e) TREATMENT OF DISPOSITIONS UNDER PASSIVE LOSS RULES.— (1) IN GENERAL. — Subparagraph (A) of section 469(g)(1) is amended to read as follows: "(A) IN GENERAL. — If all gain or loss realized on such disposition is recognized, the excess of—
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