124 STAT. 2567 PUBLIC LAW 111–240—SEPT. 27, 2010 ‘‘(1) INCOME INCLUSION.—Except as otherwise provided in this chapter, gross income includes any amount received as an annuity (whether for a period certain or during one or more lives) under an annuity, endowment, or life insurance contract. ‘‘(2) PARTIAL ANNUITIZATION.—If any amount is received as an annuity for a period of 10 years or more or during one or more lives under any portion of an annuity, endowment, or life insurance contract— ‘‘(A) such portion shall be treated as a separate contract for purposes of this section, ‘‘(B) for purposes of applying subsections (b), (c), and (e), the investment in the contract shall be allocated pro rata between each portion of the contract from which amounts are received as an annuity and the portion of the contract from which amounts are not received as an annuity, and ‘‘(C) a separate annuity starting date under subsection (c)(4) shall be determined with respect to each portion of the contract from which amounts are received as an annuity.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to amounts received in taxable years beginning after December 31, 2010. PART III—CLOSING UNINTENDED LOOPHOLES SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL PRODUCER CREDIT. (a) IN GENERAL.—Clause (iii) of section 40(b)(6)(E) of the Internal Revenue Code of 1986, as added by the Health Care and Education Reconciliation Act of 2010, is amended— (1) by striking ‘‘or’’ at the end of subclause (I), (2) by striking the period at the end of subclause (II) and inserting ‘‘, or’’, (3) by adding at the end the following new subclause: ‘‘(III) such fuel has an acid number greater than 25.’’, and (4) by striking ‘‘UNPROCESSED’’ in the heading and inserting ‘‘CERTAIN’’. (b) EFFECTIVE DATE.—The amendments made by this section shall apply to fuels sold or used on or after January 1, 2010. SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES. (a) AMOUNTS SOURCED WITHIN THE UNITED STATES.—Sub- section (a) of section 861 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: ‘‘(9) GUARANTEES.—Amounts received, directly or indirectly, from— ‘‘(A) a noncorporate resident or domestic corporation for the provision of a guarantee of any indebtedness of such resident or corporation, or ‘‘(B) any foreign person for the provision of a guarantee of any indebtedness of such person, if such amount is connected with income which is effectively connected (or treated as effectively connected) with the conduct of a trade or business in the United States.’’. 26 USC 861. 26 USC 40 note. Ante, p. 1067. 26 USC 72 note.
