beginning on the date of the creation of the estate referred to in subsection (a), such liability shall be extinguished and any such tax paid shall refunded to the issuer immediately upon such event. (f) Definitions For purposes of this section, the terms covered bond program , cover pool , and estate shall each have the same respective meanings as when used for purposes of subtitle D of title III of the Protecting American Taxpayers and Homeowners Act of 2018. . (B) Clerical amendment The table of subchapters for chapter 36 of such Code is amended by inserting after the item relating to subchapter B the following new item: Subchapter C—Tax on certain estates created under covered bond programs . (4) Effective date The amendments made by this subsection shall apply to estates created, and transfers made, after the date of the enactment of this Act. (c) State and local taxes The Secretary may promulgate regulations under this subtitle that are similar to the provisions of section 346 of title 11, United States Code, including regulations to provide that— (1) if an estate created under section 343(b)(1) or 343(c)(2) is not treated as an entity subject to taxation separate from the owner of the residual interest for purposes of the Internal Revenue Code of 1986 ( 26 U.S.C. 1 et seq.), no separate taxable entity shall be created with respect to the estate for purposes of any State or local law imposing a tax on or measured by income