Page:United States Statutes at Large Volume 110 Part 3.djvu/128

This page needs to be proofread.


110 STAT. 1858 PUBLIC LAW 104-188—AUG. 20, 1996 (2) SUBSECTION (b)(7)(B).— The amendments made by subsection (b)(7)(B) shall not apply to any distribution with respect to preferred stock if— (A) such stock is outstanding at all times after October 31, 1995, and before the distribution, and (B) such distribution is made before the date which is 1 year after the date of the enactment of this Act (or, in the case of stock which may be redeemed, if later, the date which is 30 days after the earliest date that such stock may be redeemed). (3) SUBSECTION (b)(8).— The amendment made by subsection (b)(8) shall apply to property acquired in taxable years beginning after December 31, 1995. (4) SUBSECTION (b)(10).— The amendments made by subsection (b)(10) shall not apply to any residual interest held by a taxpayer if such interest has been held by such taxpayer at all times after October 31, 1995. SEC. 1617. EXCLUSION FOR ENERGY CONSERVATION SUBSIDIES LIM- ITED TO SUBSIDIES WITH RESPECT TO DWELLING UNITS. (a) IN GENERAL.— Paragraph (1) of section 136(c) (defining energy conservation measure) is amended by striking "energy demand—" and all that follows and inserting "energy demand with respect to a dwelling unit.". (b) CONFORMING AMENDMENTS.— (1) Subsection (a) of section 136 is amended to read as follows: "(a) EXCLUSION.— Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.". (2) Paragraph (2) of section 136(c) is amended— (A) by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively, and (B) by striking "AND SPECIAL RULES" in the paragraph heading. 26 USC 136 note. (c) EFFECTIVE DATE. —The amendments made by this section shall apply to amounts received after December 31, 1996, unless received pursuant to a written binding contract in effect on September 13, 1995, and at all times thereafter. PART II—FINANCIAL ASSET SECURITIZATION INVESTMENTS SEC, 1621. FINANCIAL ASSET SECURITIZATION INVESTMENT TRUSTS. (a) IN GENERAL.— Subchapter M of chapter 1 is amended by adding at the end the following new part: " PART V—FINANCIAL ASSET SECURITIZATION INVESTMENT TRUSTS "Sec. 860H. Taxation of a FASIT; other general rules. "Sec. 8601. Gain recognition on contributions to a FASIT and in other cases. "Sec. 860J. Non-FASIT losses not to offset certain FASIT inclusions. "Sec. 860K. Treatment of transfers of high-yield interests to disqualified holders.