118 STAT. 1650 PUBLIC LAW 108–357—OCT. 22, 2004 SEC. 900. MODIFICATION OF DEFINITION OF CONTROLLED GROUP OF CORPORATIONS. (a) IN GENERAL.—Section 1563(a)(2) (relating to brother sister controlled group) is amended by striking ‘‘possessing—’’ and all that follows through ‘‘(B)’’ and inserting ‘‘possessing’’. (b) APPLICATION OF EXISTING RULES TO OTHER CODE PROVI SIONS.—Section 1563(f) (relating to other definitions and rules) is amended by adding at the end the following new paragraph: ‘‘(5) BROTHER SISTER CONTROLLED GROUP DEFINITION FOR PROVISIONS OTHER THAN THIS PART.— ‘‘(A) IN GENERAL.—Except as specifically provided in an applicable provision, subsection (a)(2) shall be applied to an applicable provision as if it read as follows: ‘‘(2) BROTHER SISTER CONTROLLED GROUP.—Two or more corporations if 5 or fewer persons who are individuals, estates, or trusts own (within the meaning of subsection (d)(2) stock possessing— ‘‘(A) at least 80 percent of the total combined voting power of all classes of stock entitled to vote, or at least 80 percent of the total value of shares of all classes of stock, of each corporation, and ‘‘(B) more than 50 percent of the total combined voting power of all classes of stock entitled to vote or more than 50 percent of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each such person only to the extent such stock ownership is identical with respect to each such cor poration.’ ‘‘(B) APPLICABLE PROVISION.—For purposes of this para graph, an applicable provision is any provision of law (other than this part) which incorporates the definition of con trolled group of corporations under subsection (a).’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after the date of the enact ment of this Act. SEC. 901. CLASS LIVES FOR UTILITY GRADING COSTS. (a) GAS UTILITY PROPERTY.—Section 168(e)(3)(E) (defining 15 year property), as amended by this Act, is amended by striking ‘‘and’’ at the end of clause (iv), by striking the period at the end of clause (v) and inserting ‘‘, and’’, and by adding at the end the following new clause: ‘‘(vi) initial clearing and grading land improve ments with respect to gas utility property.’’. (b) ELECTRIC UTILITY PROPERTY.—Section 168(e)(3) is amended by adding at the end the following new subparagraph: ‘‘(F) 20 YEAR PROPERTY.—The term ‘20 year property’ means initial clearing and grading land improvements with respect to any electric utility transmission and distribution plant.’’. (c) CONFORMING AMENDMENT.—The table contained in section 168(g)(3)(B), as amended by this Act, is amended by inserting after the item relating to subparagraph (E)(v) the following new items: ‘‘(E)(vi) ............................................................................................... 20’’. ‘‘(F) ..................................................................................................... 25’’. 26 USC 1563 note.
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