Ill STAT. 820 PUBLIC LAW 105-34—AUG. 5, 1997 168(i)(2)(B)), and fiber optic cable related to computer use. "(ii) CORPORATION. —The term 'corporation' has the meaning given to such term by paragraph (4)(D). "(F) TERMINATION.— Th is paragraph shall not apply to any contribution made during any taxable year beginning after December 31, 1999.". 26 USC 170 note. (b) EFFECTIVE DATE. —The amendment made by this section shall apply to taxable years beginning after December 31, 1997. SEC. 225. TREATMENT OF CANCELLATION OF CERTAIN STUDENT LOANS. (a) CERTAIN LOANS BY EXEMPT ORGANIZATIONS. — (1) IN GENERAL. —Paragraph (2) of section 108(f) (defining student loan) is amended by striking "or" at the end of subparagraph (B) and by striking subparagraph (D) and inserting the following: "(D) any educational organization described in section 170(b)(l)(A)(ii) if such loan is made— "(i) pursuant to an agreement with any entity described in subparagraph (A), (B), or (C) under which the funds from which the loan was made were provided to such educational organization, or "(ii) pursuant to a program of such educational organization which is designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or an organization described in section 501(c)(3) and exempt from tax under section 501(a). The term 'student loan' includes any loan made by an educational organization so described or by an organization exempt from tax under section 501(a) to refinance a loan meeting the requirements of the preceding sentence.". (2) EXCEPTION FOR DISCHARGES ON ACCOUNT OF SERVICES PERFORMED FOR CERTAIN LENDERS. —Subsection (f) of section 108 is amended by adding at the end the following new paragraph: "(3) EXCEPTION FOR DISCHARGES ON ACCOUNT OF SERVICES PERFORMED FOR CERTAIN LENDERS.— Paragraph (1) shall not apply to the discharge of a loan made by an organization described in paragraph (2)(D) (or by an organization described in paragraph (2)(E) from funds provided by an organization described in paragraph (2)(D)) if the discharge is on account of services performed for either such organization.". 26 USC 108 note. (b) EFFECTIVE DATE. —The amendments made by this section shall apply to discharges of indebtedness after the date of the enactment of this Act. SEC. 226. INCENTIVES FOR EDUCATION ZONES. (a) IN GENERAL. — Subchapter U of chapter 1 (relating to additional incentives for empowerment zones) is amended by redesignating part IV as part V, by redesignating section 1397E as section 26 USC 1397D, 1397F, and by inserting after part III the following new part: 1397F.
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