; and , and by adding at the end the following new paragraph: (9) a corporation with greater than 50 percent stock ownership (as determined in section 542(a)) held by nonresident alien individuals with no effectively connected income under section 871 or 877. . (b) Modifications related to definition of personal holding company income (1) Paragraph (1) of section 543(a) of the Code is amended by striking and at the end of paragraph (D), by striking the period at the end of paragraph (E) and inserting , and , and by adding at the end the following new subparagraph: (F) Royalties and rents derived in the active conduct of a trade or business and which are received from a person other than a related person (within the meaning of section 954(d)(3)). . (2) Paragraph (4) of section 543(a) of such Code is amended by inserting , which do not qualify for the active conduct of a trade or business exception in subsection (a)(1)(F) after Copyright royalties in the matter preceding subparagraph (A). (3) Paragraph (A) of section 543(a)(5) of such Code is amended by inserting , which do not qualify for the active conduct of a trade or business exception in subsection (a)(1)(F) after Produced film rent . (4) Paragraph (3) of section 543(b) of such Code is amended by inserting (but does not include rents derived from the active conduct of a trade or business as provided in subsection (a)(1)(F)) after means the gross income from rents in the matter preceding subparagraph (A). (c) Effective date The amendments made by this section shall apply to taxable years ending on or after the date of the enactment of this Act.