118 STAT. 1540 PUBLIC LAW 108–357—OCT. 22, 2004 complied with such terms and conditions, amounts in the reserve account, including all interest, shall be paid to the United States Treasury. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to bonds issued after December 31, 2004. SEC. 702. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF CERTAIN BROWNFIELD SITES FROM UNRELATED BUSI NESS TAXABLE INCOME. (a) IN GENERAL.—Subsection (b) of section 512 (relating to unrelated business taxable income) is amended by adding at the end the following new paragraph: ‘‘(18) TREATMENT OF GAIN OR LOSS ON SALE OR EXCHANGE OF CERTAIN BROWNFIELD SITES.— ‘‘(A) IN GENERAL.—Notwithstanding paragraph (5)(B), there shall be excluded any gain or loss from the qualified sale, exchange, or other disposition of any qualifying brownfield property by an eligible taxpayer. ‘‘(B) ELIGIBLE TAXPAYER.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The term ‘eligible taxpayer’ means, with respect to a property, any organization exempt from tax under section 501(a) which— ‘‘(I) acquires from an unrelated person a quali fying brownfield property, and ‘‘(II) pays or incurs eligible remediation expenditures with respect to such property in an amount which exceeds the greater of $550,000 or 12 percent of the fair market value of the property at the time such property was acquired by the eligible taxpayer, determined as if there was not a presence of a hazardous substance, pollutant, or contaminant on the property which is compli cating the expansion, redevelopment, or reuse of the property. ‘‘(ii) EXCEPTION.—Such term shall not include any organization which is— ‘‘(I) potentially liable under section 107 of the Comprehensive Environmental Response, Com pensation, and Liability Act of 1980 with respect to the qualifying brownfield property, ‘‘(II) affiliated with any other person which is so potentially liable through any direct or indirect familial relationship or any contractual, corporate, or financial relationship (other than a contractual, corporate, or financial relationship which is created by the instruments by which title to any qualifying brownfield property is conveyed or financed or by a contract of sale of goods or services), or ‘‘(III) the result of a reorganization of a busi ness entity which was so potentially liable. ‘‘(C) QUALIFYING BROWNFIELD PROPERTY.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The term ‘qualifying brownfield property’ means any real property which is certified, before the taxpayer incurs any eligible remediation 26 USC 142 note.
�
