,,ii #aadth ,,congress #ast ,session ,s4 #afca ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ah1 #bjae ,mr4 ,sanders 7for himself1 ,mr4 ,brown1 and ,ms4 ,baldwin7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,employee ,retirement ,income ,security ,act of #aigd and the ,internal ,revenue ,code of #aihf to modify certain provisions relating to multiemployer pensions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,keep ,our ,pension ,promises ,act4 #b4 ,restoring anti-cutback provisions ,section #bja of the ,multiemployer ,pension ,reform ,act of #bjad 7division ,o of ,public ,law #aac-bce7 and the amendments made by such section are repealed1 and the ,employee ,retirement ,income ,security ,act of #aigd and the ,internal ,revenue ,code of #aihf shall be applied as if such section and amendments had never been enacted4 #c4 ,partitions of eligible multiemployer plans 7a7 ,in general ,section #dbcc of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adac71 as amended by section #abb of the ,multiemployer ,pension ,reform ,act of #bjad 7division ,o of ,public ,law #aac-bce71 is amended to read as follows3 #dbcc4 ,partitions of eligible multiemployer plans 7a7 7#a7 ,upon the application by the plan sponsor of an eligible multiemployer plan for a partition of the plan1 the corporation may order a partition of the plan in accordance with this section4 ,the corporation shall make a determination regarding the application1 in accordance with regulations promulgated by the corporation1 not later than #bgj days after-- 7,a7 the date such application was filed2 or 7,b7 if later1 the date such application was completed4 7#b7 ,at least #ad days before submitting an application for partition of a plan under paragraph 7#a71 the plan sponsor of the plan shall notify all participants and beneficiaries of such application1 in the form and manner prescribed by regulations issued by the corporation4 7b7 ,for purposes of this section1 a multiemployer plan is an eligible multiemployer plan if-- 7#a7 the plan is in critical status and is projected to become insolvent within the meaning of section #dbde-- 7,a7 during the current plan year or any of the #ad succeeding plan years2 or 7,b7 during the current plan year or any of the #ai succeeding plan years1 if the plan has a ratio of inactive participants to active participants that exceeds #b to #a and the funded percentage of the plan is less than #hj percent2 7#b7 the corporation determines1 after consultation with the ,participant and ,plan ,sponsor ,advocate selected under section #djjd1 that the plan sponsor has taken 7or is taking concurrently with an application for partition7 all reasonable measures described in section #dcb7;e77#c77;,a7 of the ,internal ,revenue ,code of #aihf1 and has made 7or is making7 benefit adjustments under section #dcb7;e77#h7 of such ,code to reduce the risk of insolvency2 7#c7 #bj percent or more of the amount by which the liabilities of the plan exceed the value of plan assets is attributable to the service of participants whose employers-- 7,a7 withdrew from the plan prior to the date of enactment of the ,keep ,our ,pension ,promises ,act2 and 7,b7 failed to pay 7or are delinquent with respect to paying7 the full amount of the employer's withdrawal liability under section #dbja7;b77#a7 or as otherwise determined under an agreement with the plan2 7#d7 the corporation reasonably expects that-- 7,a7 a partition of the plan will reduce the corporation's expected long-term loss with respect to the plan2 and 7,b7 a partition of the plan is necessary for the plan to remain or become solvent2 and 7#e7 the corporation certifies to ,congress that after partition the corporation will continue to have the ability to meet existing financial assistance obligations to other plans 7including any liabilities associated with multiemployer plans that are insolvent or that are projected to become insolvent within #aj years74 7c7 7#a7 ,a partition under this section shall consist of a transfer to the plan created by the partition order of benefits to which eligible participants and beneficiaries were entitled under the plan that was partitioned1 in an amount not to exceed the amount that would be guaranteed under section #djbb;,a if the plan were insolvent as of the date of the partition order4 7#b7 ,the corporation's partition order shall provide for an annual transfer by the corporation to the plan created by the partition order of an amount equal to the yearly benefits that would be guaranteed under section #djbb;,a to the eligible participants and beneficiaries if the plan were insolvent as of the date of the partition order4 7#c7 7,a7 ,where practicable1 the initial transfer in accordance with paragraph 7#b7 shall be completed at least #fj days prior to the plan year that immediately follows the partition start date4 ,the partition order shall require that the initial transfer be sufficient to satisfy the guaranteed benefits in the first plan year of the partitioned plan4 7,b7 ,subsequent transfers in accordance with paragraph 7#b7 shall be completed at least #fj days prior to the first day of each succeeding plan year4 7d7 7#a7 7,a7 ,the plan created by the partition order is a successor plan to which section #djbb;,a applies4 7,b7 ,at the discretion of the plan sponsor1 the plan created by the partition order may remain a part of the plan that was partitioned or be maintained as a separate plan4 7#b7 7,a7 ,the plan sponsor and the administrator of an eligible multiemployer plan prior to the partition shall be the plan sponsor and the administrator1 respectively1 of the plan created by the partition order1 and shall adopt reasonable procedures to reduce administrative expenses and to coordinate benefit payments and communications with the participants and beneficiaries in the plan created by the partition order4 7,b7 ,benefit payments equal to the amount of an eligible participant or beneficiary's guaranteed benefits shall be paid to such participant or beneficiary and may be-- 7i7 paid separately by the plan created by the partition order2 or 7ii7 paid in a single1 monthly payment by the plan that was partitioned4 7#c7 ,in the event an employer withdraws from the plan that was partitioned1 withdrawal liability shall be computed under section #dbja with respect to both the plan that was partitioned and the plan created by the partition order4 7e7 ,in addition to the payment of guaranteed benefits under subsection 7d77#b77;,b71 each eligible participant or beneficiary of the plan created by the partition order shall receive a monthly benefit for each month the benefit is in pay status in an amount that-- 7#a7 the corporation1 in consultation with the ,participant and ,plan ,sponsor ,advocate1 determines to be fair to the plan1 the participant or beneficiary1 the employers1 and the corporation2 and 7#b7 is at least equal to the lesser of-- 7,a7 the monthly nonforfeitable benefit for such participant or beneficiary payable under the plan that was partitioned2 or 7,b7 #hj percent of the maximum benefit commencing at age #fe guaranteed under section #djbb7;a7 for participants and beneficiaries in terminated single employer plans1 unreduced for early retirement4 ,such monthly benefit may be combined with the monthly payment under subsection 7d77#b77;,b77ii74 7f7 7#a7 ,the corporation shall establish a legacy fund for the purposes of funding the administrative and benefit costs to the corporation arising from partitions under this section1 as described in paragraph 7#b74 7#b7 ,any administrative and benefit costs to the corporation arising from a partition ordered under this section in excess of amounts available in such legacy fund shall be paid from the fund for basic benefits guaranteed for multiemployer plans4 7g7 ,only one partition order shall be issued with respect to each eligible multiemployer plan4 7h7 ,for purposes of this subsection1 the term eligible participant or beneficiary means a participant or beneficiary of an eligible multiemployer plan that is partitioned in accordance with a petition order under this section1 and who is an employee or beneficiary of an employee of an employer that is described in subsection 7b77#c74 7i7 ,not later than #ad days after the issuance of a partition order under this section1 the corporation shall provide notice of such order to the ,committee on ,finance of the ,senate1 the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate1 the ,committee on ,education and the ,workforce of the ,house of ,representatives1 the ,committee on ,ways and ,means of the ,house of ,representatives1 and to all eligible participants or beneficiaries whose guaranteed benefits will be paid directly or indirectly by the plan created by the partition order4 4 7b7 ,effective date ,the amendments made by subsection 7a7 shall apply with respect to plan years beginning after the date of enactment of this ,act4 7c7 ,transfers to legacy fund ,the ,secretary of the ,treasury shall from time to time transfer from the general fund of the ,treasury to the legacy fund established under section #dbcc7;f77#a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adac7;f77#a77 7as amended by subsection 7a77 amounts equal to the increase in revenues to the ,treasury by reason of the amendments made by sections #f and #g of this ,act4 7d7 ,transfers between funds of the ,,pbgc ,section #djje of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acje7 is amended by adding at the end the following3 7i7 7#a7 ,an eighth fund is established under section #dbcc7;f7 and credited with the amounts described in section #c7;c7 of the ,keep ,our ,pension ,promises ,act4 7#b7 ,notwithstanding subsection 7g71 the corporation may transfer amounts into the legacy fund established under section #dbcc7;f77#a7 from other funds established under this section1 as the corporation determines appropriate4 4 #d4 ,employer withdrawals relating to multiemployer plans ,the matter preceding paragraph 7#a7 of section #dbbe7;b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #adje7;b77 is amended by inserting 1 including an employer undergoing liquidation under chapter #g of title #aa1 ,united ,states ,code1 or similar provisions of ,state law1 after dissolution14 #e4 ,priorities of claims in bankruptcy 7a7 ,in general ,section #ejg7;a7 of title #aa1 ,united ,states ,code is amended-- 7#a7 by redesignating paragraphs 7#a7 through #aj as paragraphs 7#b7 through 7#aa71 respectively2 7#b7 by inserting before paragraph 7#b7 7as redesignated7 the following3 7#a7 ,first1 withdrawal liability determined under part #a of subtitle ,e of title ,,iv of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #acha et seq474 4 7#c7 in the matter preceding subparagraph 7,a7 of paragraph 7#b7 7as redesignated71 by striking ,first3 and inserting ,second32 7#d7 in paragraph 7#c7 7as redesignated71 by striking ,second1 and inserting ,third12 7#e7 in paragraph 7#d7 7as redesignated71 by striking ,third1 and inserting ,fourth12 7#f7 in the matter preceding subparagraph 7,a7 of paragraph 7#e7 7as redesignated71 by striking ,fourth1 and inserting ,fifth12 7#g7 in the matter preceding subparagraph 7,a7 of paragraph 7#f7 7as redesignated71 by striking ,fifth1 and inserting ,sixth12 7#h7 in the matter preceding subparagraph 7,a7 of paragraph 7#g7 7as redesignated71 by striking ,sixth1 and inserting ,seventh12 7#i7 in paragraph 7#h7 7as redesignated71 by striking ,seventh1 and inserting ,eighth12 7#aj7 in the matter preceding subparagraph 7,a7 of paragraph 7#i7 7as redesignated71 by striking ,eighth1 and inserting ,ninth12 7#aa7 in paragraph 7#aj7 7as redesignated71 by striking ,ninth1 and inserting ,tenth12 and 7#ab7 in paragraph 7#aa7 7as redesignated71 by striking ,tenth1 and inserting ,eleventh14 7b7 ,technical and conforming amendments 7#a7 ,section #ejb7;i7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#b7 ,section #ejc7;b77#a77;,b77i7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#c7 ,section #ejg7;d7 of title #aa1 ,united ,states ,code1 is amended by striking 7a77#a71 7a77#d71 7a77#e71 7a77#f71 7a77#g71 7a77#h71 or 7a77#i7 and inserting 7a77#b71 7a77#e71 7a77#f71 7a77#g71 7a77#h71 7a77#i71 or 7a77#aj74 7#d7 ,section #ebc7;,a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#c7 or #ejg7;a77#h7 and inserting section #ejg7;a77#d7 or #ejg7;a77#i74 7#e7 ,section #gbd of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7b77#b71 by striking section #ejg7;a77#a77;,c7 or #ejg7;a77#b7 and inserting section #ejg7;a77#b77;,c7 or #ejg7;a77#c72 and 7,b7 in subsection 7f7-- 7i7 in paragraph 7#a71 by striking section #ejg7;a77#d7 and inserting section #ejg7;a77#e72 and 7ii7 in paragraph 7#b71 by striking section #ejg7;a77#e7 and inserting section #ejg7;a77#f74 7#f7 ,section #gbf7;b7 of title #aa1 ,united ,states ,code1 is amended by striking paragraph 7#a71 7#b71 7#c71 7#d71 7#e71 7#f71 7#g71 7#h71 7#i71 or 7#aj7 of section #ejg7;a7 and inserting paragraphs 7#b7 through 7#aa7 of section #ejg7;a74 7#g7 ,section #geb7;a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#h7 ,section #gff of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subsection 7h71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c72 and 7,b7 in subsection 7i7-- 7i7 in paragraph 7#a71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c72 and 7ii7 in paragraph 7#b71 by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#i7 ,section #ija of title #aa1 ,united ,states ,code1 is amended by striking #ejg7;a77#b7 and inserting #ejg7;a77#c74 7#aj7 ,section #idc7;b77#e7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#aa7 ,section #aabc7;a77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b71 #ejg7;a77#c71 or #ejg7;a77#h7 and inserting section #ejg7;a77#c71 #ejg7;a77#d71 or #ejg7;a77#i74 7#ab7 ,section #aabi7;a77#i7 of title #aa1 ,united ,states ,code1 is amended-- 7,a7 in subparagraph 7,a71 by striking section #ejg7;a77#c7 or #ejg7;a77#d7 and inserting section #ejg7;a77#d7 or #ejg7;a77#e72 7,b7 in the matter preceding clause 7i7 of subparagraph 7,b71 by striking section #ejg7;a77#a71 #ejg7;a77#d71 #ejg7;a77#e71 #ejg7;a77#f71 or #ejg7;a77#g7 and inserting section #ejg7;a77#b71 #ejg7;a77#e71 #ejg7;a77#f71 #ejg7;a77#g71 or #ejg7;a77#h72 7,c7 in the matter preceding clause 7i7 of subparagraph 7,c71 by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i72 and 7,d7 in subparagraph 7,d71 by striking section #ejg7;a77#h7 and inserting section #ejg7;a77#i74 7#ac7 ,section #abbb7;a77#d7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#a77;,b7 and inserting #ejg7;a77#b77;,b74 7#ad7 ,section #abbf7;b77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#ae7 ,section #acbb7;a77#d7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#a77;,b7 and inserting section #ejg7;a77#b77;,b74 7#af7 ,section #acbf7;b77#a7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#b7 and inserting section #ejg7;a77#c74 7#ag7 ,section #acbh7;a77#b7 of title #aa1 ,united ,states ,code1 is amended by striking section #ejg7;a77#h77;,c7 and inserting section #ejg7;a77#i77;,c74 #f4 ,limitation of nonrecognition of like-kind exchanges 7a7 ,in general ,paragraph 7#b7 of section #ajca7;a7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating subparagraphs 7,a71 7,b71 7,c71 7,d71 7,e71 and 7,f7 as clauses 7i71 7ii71 7iii71 7iv71 7v71 and 7vi71 and by moving such clauses #b ems to the right1 7#b7 by moving the flush language after the first sentence #b ems to the right1 7#c7 by striking 7#b7 ,exception4--,this subsection and inserting 87#b7 ,exceptions4-- 7,a7 ,excluded property ,this subsection 1 and 7#d7 by adding at the end the following new subparagraph3 7,b7 ,dollar limitation for exchanges of real property 7i7 ,in general ,paragraph 7#a7 shall not apply so much of the gain which1 but for such paragraph1 would be recognized by the taxpayer with respect to real property exchanged during the taxable year as exceeds #a1jjj1jjj4 7ii7 ,special rules for partnerships and ,s-corporations ,in the case of a pass-through entity1 clause 7i7 shall be applied at both the entity and at the partner or owner level4 7iii7 ,aggregation rules ,for purposes of this subparagraph-- 7,i7 ,family members ,individuals who are spouses or who bear any of the relationships described in section #aeb7;d77#b7 to each other shall be treated as #a taxpayer 7without regard to whether spouses file a joint return74 7,,ii7 ,corporations and other entities ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb or subsection 7m7 or 7o7 of section #dad shall be treated as #a person4 7iv7 ,adjustment for inflation ,in the case of exchanges completed in a taxable year beginning after ,december #ca1 #bjaf1 the #a1jjj1jjj amount in clause 7i7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjae for calendar year #aiib in subparagraph 7,b7 thereof4 ,if any amount as adjusted under the preceding sentence is not a multiple of #a1jjj1 such amount shall be rounded to the nearest multiple of #a1jjj4 4 7b7 ,exclusion of art and collectibles ,subparagraph 7,a7 of section #ajca7;a77#b7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7a71 is amended-- 7#a7 by striking or at the end of clause 7v71 7#b7 by striking the period at the end of clause 7vi7 and inserting 1 or1 and 7#c7 by inserting after clause 7vi7 the following new clause3 7vii7 any collectible 7within the meaning of section #djh7m71 without regard to paragraph 7#c7 thereof74 4 7c7 ,regulatory authority ,subsection 7f7 of section #ajca of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#e7 ,rules relating to dollar limitation ,the ,secretary shall prescribe such guidance as is necessary for applying subsection 7a77#b77;,b77i7 in the case of the exchange of multiple pieces of real property by related persons4 4 7d7 ,conforming amendments 7#a7 ,subsection 7b7 of section #ajca of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking in kind4--,if an exchange and inserting 8in kind4-- 7#a7 ,in general ,if an exchange 1 and 7,b7 by adding at the end the following new paragraph3 7#b7 ,coordination with subsection 7a77#b77;,b7 ,in the case of an exchange to which paragraph 7#a7 applies-- 7,a7 paragraph 7#a7 shall be applied before the application of subsection 7a77#b77;,b71 and 7,b7 subsection 7a77#b77;,b7 shall be applied-- 7i7 as if such exchange were within the provisions of subsection 7a71 and 7ii7 by increasing the basis of the property disposed of by the taxpayer in such exchange by the amount of any gain determined under paragraph 7#a74 4 7#b7 ,subsection 7d7 of section #ajca of such ,code is amended by striking in the amount of gain and inserting in the amount of gain 7including any gain recognized by reason of subsection 7a77#b77;,b77i774 7#c7 ,subsection 7i7 of section #ajca of such ,code is amended by striking 7a77#b77;,b7 and inserting 7a77#b77;,a77ii74 7e7 ,effective date ,the amendments made by this section shall apply to exchanges completed in taxable years beginning after ,december #ca1 #bjae4 #g4 ,valuation rules for certain transfers of nonbusiness assets2 limitation on minority discounts 7a7 ,in general ,section #bjca of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7d7 as subsection 7f7 and by inserting after subsection 7c7 the following new subsections3 7d7 ,valuation rules for certain transfers of nonbusiness assets ,for purposes of this chapter and chapter #ab-- 7#a7 ,in general ,in the case of the transfer of any interest in an entity other than an interest which is actively traded 7within the meaning of section #ajib7-- 7,a7 the value of any nonbusiness assets held by the entity with respect to such interest shall be determined as if the transferor had transferred such assets directly to the transferee 7and no valuation discount shall be allowed with respect to such nonbusiness assets71 and 7,b7 such nonbusiness assets shall not be taken into account in determining the value of the interest in the entity4 7#b7 ,nonbusiness assets ,for purposes of this subsection-- 7,a7 ,in general ,the term nonbusiness asset means any asset which is not used in the active conduct of #a or more trades or businesses4 7,b7 ,exception for certain passive assets ,except as provided in subparagraph 7,c71 a passive asset shall not be treated for purposes of subparagraph 7,a7 as used in the active conduct of a trade or business unless-- 7i7 the asset is property described in paragraph 7#a7 or 7#d7 of section #abba7;a7 or is a hedge with respect to such property1 or 7ii7 the asset is real property used in the active conduct of #a or more real property trades or businesses 7within the meaning of section #dfi7;c77#g77;,c77 in which the transferor materially participates and with respect to which the transferor meets the requirements of section #dfi7;c77#g77;,b77ii74 ,for purposes of clause 7ii71 material participation shall be determined under the rules of section #dfi7;h71 except that section #dfi7;h77#c7 shall be applied without regard to the limitation to farming activity4 7,c7 ,exception for working capital ,any asset 7including a passive asset7 which is held as a part of the reasonably required working capital needs of a trade or business shall be treated as used in the active conduct of a trade or business4 7#c7 ,passive asset ,for purposes of this subsection1 the term passive asset means any-- 7,a7 cash or cash equivalents1 7,b7 except to the extent provided by the ,secretary1 stock in a corporation or any other equity1 profits1 or capital interest in any entity1 7,c7 evidence of indebtedness1 option1 forward or futures contract1 notional principal contract1 or derivative1 7,d7 asset described in clause 7iii71 7iv71 or 7v7 of section #cea7;e77#a77;,b71 7,e7 annuity1 7,f7 real property used in #a or more real property trades or businesses 7as defined in section #dfi7;c77#g77;,c771 7,g7 asset 7other than a patent1 trademark1 or copyright7 which produces royalty income1 7,h7 commodity1 7,i7 collectible 7within the meaning of section #dja7m771 or 7,j7 any other asset specified in regulations prescribed by the ,secretary4 7#d7 ,look-thru rules 7,a7 ,in general ,if a nonbusiness asset of an entity consists of a #aj-percent interest in any other entity1 this subsection shall be applied by disregarding the #aj-percent interest and by treating the entity as holding directly its ratable share of the assets of the other entity4 ,this subparagraph shall be applied successively to any #aj-percent interest of such other entity in any other entity4 7,b7 #aj-percent interest ,the term #aj-percent interest means-- 7i7 in the case of an interest in a corporation1 ownership of at least #aj percent 7by vote or value7 of the stock in such corporation1 7ii7 in the case of an interest in a partnership1 ownership of at least #aj percent of the capital or profits interest in the partnership1 and 7iii7 in any other case1 ownership of at least #aj percent of the beneficial interests in the entity4 7#e7 ,coordination with subsection 7b7 ,subsection 7b7 shall apply after the application of this subsection4 7e7 ,limitation on minority discounts ,for purposes of this chapter and chapter #ab1 in the case of the transfer of any interest in an entity other than an interest which is actively traded 7within the meaning of section #ajib71 no discount shall be allowed by reason of the fact that the transferee does not have control of such entity if the transferor1 the transferee1 and members of the family 7as defined in section #bjcb;,a7e77#b77 of the transferor and transferee-- 7#a7 have control of such entity1 or 7#b7 own the majority of the ownership interests 7by value7 in such entity4 4 7b7 ,effective date ,the amendments made by this section shall apply to transfers after the date of the enactment of this ,act4