118 STAT. 1544 PUBLIC LAW 108–357—OCT. 22, 2004 For purposes of subclause (III), the Secretary may issue guidance regarding the treatment of government pro vided funds for purposes of determining eligible remediation expenditures. ‘‘(F) DETERMINATION OF GAIN OR LOSS.—For purposes of this paragraph, the determination of gain or loss shall not include an amount treated as gain which is ordinary income with respect to section 1245 or section 1250 prop erty, including amounts deducted as section 198 expenses which are subject to the recapture rules of section 198(e), if the taxpayer had deducted such amounts in the computa tion of its unrelated business taxable income. ‘‘(G) SPECIAL RULES FOR PARTNERSHIPS.— ‘‘(i) IN GENERAL.—In the case of an eligible tax payer which is a partner of a qualifying partnership which acquires, remediates, and sells, exchanges, or otherwise disposes of a qualifying brownfield property, this paragraph shall apply to the eligible taxpayer’s distributive share of the qualifying partnership’s gain or loss from the sale, exchange, or other disposition of such property. ‘‘(ii) QUALIFYING PARTNERSHIP.—The term ‘quali fying partnership’ means a partnership which— ‘‘(I) has a partnership agreement which satis fies the requirements of section 514(c)(9)(B)(vi) at all times beginning on the date of the first certifi cation received by the partnership under subpara graph (C)(i), ‘‘(II) satisfies the requirements of subpara graphs (B)(i), (C), (D), and (E), if ‘qualified partner ship’ is substituted for ‘eligible taxpayer’ each place it appears therein (except subparagraph (D)(iii)), and ‘‘(III) is not an organization which would be prevented from constituting an eligible taxpayer by reason of subparagraph (B)(ii). ‘‘(iii) REQUIREMENT THAT TAX EXEMPT PARTNER BE A PARTNER SINCE FIRST CERTIFICATION.—This para graph shall apply with respect to any eligible taxpayer which is a partner of a partnership which acquires, remediates, and sells, exchanges, or otherwise disposes of a qualifying brownfield property only if such eligible taxpayer was a partner of the qualifying partnership at all times beginning on the date of the first certifi cation received by the partnership under subparagraph (C)(i) and ending on the date of the sale, exchange, or other disposition of the property by the partnership. ‘‘(iv) REGULATIONS.—The Secretary shall prescribe such regulations as are necessary to prevent abuse of the requirements of this subparagraph, including abuse through— ‘‘(I) the use of special allocations of gains or losses, or ‘‘(II) changes in ownership of partnership interests held by eligible taxpayers. ‘‘(H) SPECIAL RULES FOR MULTIPLE PROPERTIES.— Applicability.
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