provision . (3) Section 1274(c)(3) is amended by striking subparagraph (E) and redesignating subparagraph (F) as subparagraph (E). (c) Effective date The amendments made by this section shall apply to dispositions after December 31, 2017. 3313. Repeal of technical termination of partnerships (a) In general Paragraph (1) of section 708(b) is amended— (1) by striking , or at the end of subparagraph (A) and all that follows and inserting a period, and (2) by striking only if— and all that follows through no part of any business and inserting the following: only if no part of any business . (b) Effective date The amendments made by this section shall apply to partnership taxable years beginning after December 31, 2017. 3314. 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 general If one or more applicable partnership interests are held by a taxpayer at any time during the taxable year, the excess (if any) of— (1) the taxpayer’s net long-term capital gain with respect to such interests for such taxable year, over (2) the taxpayer’s net long-term capital gain with respect to such interests for such taxable year computed by applying paragraphs (3) and (4) of sections 1222 by substituting 3 years for 1 year , shall be treated as short-term capital gain. (b) Special rule To the extent provided by the Secretary, subsection (a) shall not apply to income or gain attributable to any asset not held for portfolio investment on behalf of third party investors. (c) Applicable partnership interest For purposes of this section— (1) In general Except as provided in this paragraph or paragraph (4), the term applicable partnership interest means any interest in a partnership which,