118 STAT. 1468 PUBLIC LAW 108–357—OCT. 22, 2004 ‘‘(i) IN GENERAL.—In the case of a cooperative organization described in section 1381(a), any portion of the credit determined under subsection (a)(3) for the taxable year may, at the election of the organiza tion, be apportioned pro rata among patrons of the organization on the basis of the quantity or value of business done with or for such patrons for the tax able year. ‘‘(ii) FORM AND EFFECT OF ELECTION.—An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. ‘‘(B) TREATMENT OF ORGANIZATIONS AND PATRONS.— ‘‘(i) ORGANIZATIONS.—The amount of the credit not apportioned to patrons pursuant to subparagraph (A) shall be included in the amount determined under subsection (a)(3) for the taxable year of the organiza tion. ‘‘(ii) PATRONS.—The amount of the credit appor tioned to patrons pursuant to subparagraph (A) shall be included in the amount determined under such sub section for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportion ment. ‘‘(iii) SPECIAL RULES FOR DECREASE IN CREDITS FOR TAXABLE YEAR.—If the amount of the credit of the organization determined under such subsection for a taxable year is less than the amount of such credit shown on the return of the organization for such year, an amount equal to the excess of— ‘‘(I) such reduction, over ‘‘(II) the amount not apportioned to such patrons under subparagraph (A) for the taxable year, shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act. SEC. 314. COORDINATE FARMERS AND FISHERMEN INCOME AVER AGING AND THE ALTERNATIVE MINIMUM TAX. (a) IN GENERAL.—Section 55(c) (defining regular tax) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: ‘‘(2) COORDINATION WITH INCOME AVERAGING FOR FARMERS AND FISHERMEN.—Solely for purposes of this section, section 1301 (relating to averaging of farm and fishing income) shall not apply in computing the regular tax.’’. (b) ALLOWING INCOME AVERAGING FOR FISHERMEN.— 26 USC 40 note.
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