1Amend Bill, page 27, lines 3 and 4, by striking out all of
2said lines and inserting

3 if the transaction giving rise to the interest expenses and 
4costs or intangible expenses and costs has a valid business 
5purpose and economic substance and contains terms and conditions 
6comparable to a similar arms-length transaction between 
7unrelated parties. Tax avoidance may not be a significant 
8motivation of entering into the transaction. The affiliated 
9entity involved in the transaction may not be primarily engaged 
10in the acquisition, use, maintenance or management, ownership, 
11sale, exchange or any other disposition of intangible property. 
12If the development, purchase of or other costs related to the 
13intangible property giving rise to the payment were shared in 
14any way by the party making the payment, the party making the 
15payment must have been compensated at a fair market, arms-length 
16price for the costs. If the party making the payment was not 
17compensated, the interest expenses and costs or intangible 
18expenses and costs shall not be deductible.

19Amend Bill, page 31, lines 23 through 25, by striking out "A 
20transaction" in line 23 and all of lines 24 and 25 and inserting

21 The purpose must be established by the taxpayer using 
22clear and convincing evidence, as further defined by 
23department regulation.