Page:United States Statutes at Large Volume 110 Part 3.djvu/95

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PUBLIC LAW 104-188—AUG. 20, 1996 110 STAT. 1825 the Secretary may waive all or part of the tax imposed by this subsection.". (b) EFFECTIVE DATE. —The amendment made by this section 26 USC 4971 shall take effect as if included in the amendment made by clause note, (ii) of section 751(a)(9)(B) of the Retirement Protection Act of 1994 (108 Stat. 5020). SEC. 1465. DATE FOR ADOPTION OF PLAN AMENDMENTS. 26 USC 401 note If any amendment made by this subtitle requires an amendment to any plan or annuity contract, such amendment shall not be required to be made before the first day of the first plan year beginning on or after January 1, 1998, if— (1) during the period after such amendment takes effect and before such first plan year, the plan or contract is operated in accordance with the requirements of such amendment, and (2) such amendment applies retroactively to such period. In the case of a governmental plan (as defined in section 414(d) of the Internal Revenue Code of 1986), this section shall be applied by substituting "2000" for "1998". Subtitle E—Foreign Simplification SEC. 1501. REPEAL OF INCLUSION OF CERTAIN EARNINGS INVESTED IN EXCESS PASSIVE ASSETS. (a) IN GENERAL.— (1) REPEAL OF INCLUSION.— Paragraph (1) of section 951(a) (relating to amounts included in gross income of United States shareholders) is amended by striking subparagraph (C), by striking "; and" at the end of subparagraph (B) and inserting a period, and by adding "and" at the end of subparagraph (A). (2) REPEAL OF INCLUSION AMOUNT.— Section 956A (relating to earnings invested in excess passive assets) is repealed. (b) CONFORMING AMENDMENTS.— (1) Subparagraph (G) of section 904(d)(3), as amended by section 1703(i)(l), is amended by striking "subparagraph (B) or (C) of section 951(a)(1)" and inserting "section 951(a)(1)(B)". (2) Paragraph (1) of section 956(b) is amended to read as follows: "(1) APPLICABLE EARNINGS.—For purposes of this section, the term 'applicable earnings' means, with respect to any controlled foreign corporation, the sum of— "(A) the amount (not including a deficit) referred to in section 316(a)(1), and "(B) the amount referred to in section 316(a)(2), but reduced by distributions made during the taxable year and by earnings and profits described in section 959(c)(1).". (3) Paragraph (3) of section 956(b) is amended to read as follows: "(3) SPECIAL RULE WHERE CORPORATION CEASES TO BE CON- TROLLED FOREIGN CORPORATION. —I f any foreign corporation ceases to be a controlled foreign corporation during any taxable year— "(A) the determination of any United States shareholder's pro rata share shall be made on the basis of stock owned (within the meaning of section 958(a)) by such share-