related to sexual harassment or sexual abuse if such settlement or payment is subject to a nondisclosure agreement, or (2) attorney's fees related to such a settlement or payment. . (b) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act. 13308. Uniform treatment of expenses in contingency fee cases (a) In general Section 162 , as amended by section 13307, is amended by redesignating subsection (r) as subsection (s) and by inserting after subsection (q) the following new subsection: (r) Expenses in contingency fee cases No deduction shall be allowed under subsection (a) to a taxpayer for any expense— (1) paid or incurred in the course of the trade or business of practicing law, and (2) resulting from a case for which the taxpayer is compensated primarily on a contingent basis, until such time as such contingency is resolved. . (b) Effective date The amendment made by this section shall apply to expenses and costs paid or incurred in taxable years beginning after the date of the enactment of this Act. 13309. Repeal of deduction for local lobbying expenses (a) In general Section 162(e) is amended by striking paragraphs (2) and (7) and by redesignating paragraphs (3), (4), (5), (6), and (8) as paragraphs (2), (3), (4), (5), and (6), respectively. (b) Conforming amendment Section 6033(e)(1)(B)(ii) is amended by striking section 162(e)(5)(B)(ii) and inserting section 162(e)(4)(B)(ii) . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred on or after the date of the enactment of this Act. 13310. Recharacterization of certain gains in the case of partnership profits interests held in connection with performance of investment services (a) In general Part IV of subchapter O of chapter 1 is amended— (1) by redesignating section 1061 as section 1062, and (2) by inserting after section 1060 the following new section: 1061. Partnership interests held in connection with performance of services (a) In