; and (B) all other relevant Federal, State, local, and other statutory and regulatory requirements applicable to the lender are satisfied with respect to the covered loan. (h) Tax treatment For purposes of the Internal Revenue Code of 1986— (1) no amount shall be included in the gross income of the eligible recipient by reason of forgiveness of indebtedness or waivers described in subsection (b), (2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and (3) in the case of an eligible recipient that is a partnership or S corporation— (A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code of 1986, and (B) except as provided by the Secretary of the Treasury (or the Secretary’s delegate), any increase in the adjusted basis of a partner’s interest in a partnership under section 705 of the Internal Revenue Code of 1986 with respect to any amount described in subparagraph (A) shall equal the partner’s distributive share of deductions resulting from costs giving rise to forgiveness described in subsection (b) or from charges waived as described in such subsection. (i) Rule of Construction The cancellation of indebtedness on a covered loan under this section shall not otherwise modify the terms and conditions of the covered loan. (j) Regulations Not later than 30 days after the date of enactment of this Act, the Administrator shall issue guidance and regulations implementing this section. 5. Maui wildfire paycheck protection program loan facility The Board of Governors of the Federal Reserve System shall, under section 13(3) of the Federal Reserve Act ( 12 U.S.C. 343(3) ), establish a Maui Wildfire Paycheck Protection Program Liquidity Facility to provide loans to entities making loans guaranteed under the Maui Wildfire Paycheck Protection Program. In establishing the requirements for