(a)

(1) Section 447(i)(3) of the Internal Revenue Code, relating to reduction in account if farming business contracts, shall not apply.

(2) Section 447(i)(4) of the Internal Revenue Code, relating to income inclusions, shall not apply. (3) (

A) No suspense account may be established under

Section 447(

i) of the Internal Revenue Code, relating to suspense account for family corporations, by any corporation required by

Section of the Internal Revenue Code, relating to method of accounting for corporations engaged in farming, to change its method of accounting for any income year ending after June 8, 1997. (B) (

i) Each suspense account under

Section 447(

i) of the Internal Revenue Code shall be reduced (but not below zero) for each income year beginning after June 8, 1997, by an amount equal to the lesser of: (

I) The applicable portion of the account. (II) Fifty percent of the net income of the corporation for the income year, or, if the corporation has no net income for that year, the amount of any net operating loss (as defined in

Section of the Internal Revenue Code and as modified for purposes of this part) for that income year. For purposes of the preceding sentence, the amount of net income and net operating loss shall be determined without regard to this paragraph. (ii) The amount of the applicable portion for any income year shall be reduced (but not below zero) by the amount of any reduction required for the income year under any other provision of

Section 447(

i) of the Internal Revenue Code. (iii) Any reduction in a suspense account under this paragraph shall be included in gross income for the income year of the reduction. (

C) For purposes of subparagraph (B), the term “applicable portion” means, for any income year, the amount which would ratably reduce the amount in the account (after taking into account prior reductions) to zero over the period consisting of that income year and the remaining income years in those first income years. (

D) Any amount in the account as of the close of that 20th year referred to in subparagraph (

C) shall be treated as the applicable portion for each succeeding year thereafter to the extent not reduced under this paragraph for any prior income year after the 20th year. (

b) This

section shall apply to income years ending on or after December 31, 1997. (

c) This

section shall not apply to income years beginning on or after January 1, 1998.