102 STAT. 3438
26 USC 263A note. 26 USC 263A note.
Contracts.
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PUBLIC LAW 100-647—NOV. 10, 1988 section 59(e) for qualified expenditures described in subparagraphs (B), (C), (D), and (E) of paragraph (2) thereof." (3) Subparagraph (B) of section 263A(d)(2) of the 1986 Code (relating to special rule for person with minority interest who materially participates) is amended— (A) by striking out "such grove, orchard, or vineyard" in clause (i) and inserting in lieu thereof "the plants described in subparagraph (A) at all times during the taxable year in which such amounts were paid or incurred", and (B) by striking out "such grove, orchard, or vineyard during the 4-taxable year period beginning with the taxable year in which the grove, orchard, or vineyard was lost or damaged" and inserting in lieu thereof "the plants described in subparagraph (A) during the taxable year in which such amounts were paid or incurred". (4) Paragraph (3) of section 263A(f) of the 1986 Code (relating to interest relating to property used to produce property) is amended— (A) by striking out "incurred or continued in connection with" and inserting in lieu thereof "allocable (as determined under paragraph (2)) to", and (B) by inserting "(as so determined)" after "allocable". (5) Section 447(b) of the 1986 Code is amended— (A) by striking out " o f before "expenses", and (B) by striking out "OF" before "EXPENSES" in the heading thereof. (6) Section 447(g)(l) of the 1986 Code is amended by striking out "trade or business of farming" each place it appears and inserting in lieu thereof "qualified farming trade or business". (7) Paragraph (4)(A)(i) of section 803(d) of the Reform Act is amended by striking out "203" each place it appears and inserting in lieu thereof "204". (8) The allocation used in the regulations prescribed under section 263A(h)(2) of the Internal Revenue Code of 1986 for apportioning storage costs and related handling costs shall be determined by dividing the amount of such costs by the beginning inventory balances and the purchases during the year and by multiplying the resulting allocation ratio by inventory amounts determined in accordance with the provisions of the joint explanatory statement of the committee of conference of the conference report accompanying H.R. 3838 (H.R. Rept. No. 99-841, Vol. II., 99th Cong., 2d Sess. 11-306-307 (1986)). (c) AMENDMENTS RELATED TO SECTION 8 0 4 OF THE REFORM ACT.—
(1) Paragraph (3) of section 460(b) of the 1986 Code is amended— ~. (A) by striking out "subparagraph" and inserting in lieu thereof "paragraph", (B) by striking out "paragraph (1)" each place it appears in subparagraph (B) and inserting in lieu thereof "subparagraph (A)", and (C) by striking out "paragraph (1)" in subparagraph (C) and inserting in lieu thereof "subparagraph (B)". (2)(A) Section 4600)) of the 1986 Code (relating to percentage of completion method) is amended by adding at the end thereof the following new paragraph: "(4) SPECIAL RULES.—
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