SECTION 2. CHANGES

SECTION 3. 2003 ADJUSTED ITEMS

Code Section .01 Tax Rate Tables.................................................................................................................................................. 1(a)–(e) .02 Unearned Income of Minor Children Taxed as if Parent’s Income (“Kiddie Tax”) ....................................... 1(g) .03 Adoption Credit.................................................................................................................................................. 23 .04 Child Tax Credit................................................................................................................................................. 24 .05 Hope and Lifetime Learning Credits................................................................................................................. 25A .06 Earned Income Credit ........................................................................................................................................ 32 .07 Low-Income Housing Credit ............................................................................................................................. 42(h) .08 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax”............................................. 59(j) .09 Standard Deduction............................................................................................................................................ 63 .10 Overall Limitation on Itemized Deductions...................................................................................................... 68 .11 Qualified Transportation Fringe......................................................................................................................... 132(f) .12 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education

Expenses ........................................................................................................................................................... 135 .13 Adoption Assistance Programs........................................................................................................................... 137 .14 Private Activity Bonds Volume Cap.................................................................................................................. 146(d) .15 Personal Exemption............................................................................................................................................ 151 .16 Eligible Long-Term Care Premiums.................................................................................................................. 213(d)(10) .17 Medical Savings Accounts................................................................................................................................. 220 .18 Interest on Education Loans .............................................................................................................................. 221 .19 Treatment of Dues Paid to Agricultural or Horticultural Organizations.......................................................... 512(d) .20 Insubstantial Benefit Limitations for Contributions Associated with Charitable Fund-Raising Campaigns.. 513(h) .21 Funeral Trusts..................................................................................................................................................... 685 .22 Expatriation to Avoid Tax.................................................................................................................................. 877 .23 Valuation of Qualified Real Property in Decedent’s Gross Estate................................................................... 2032A .24 Annual Exclusion for Gifts................................................................................................................................ 2503 & 2523 .25 Generation-Skipping Transfer Tax Exemption.................................................................................................. 2631 .26 Passenger Air Transportation Excise Tax.......................................................................................................... 4261 .27 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying Expenditures ......... 6033(e)(3) .28 Notice of Large Gifts Received from Foreign Persons .................................................................................... 6039F .29 Persons Against Which a Federal Tax Lien Is Not Valid................................................................................. 6323 .30 Property Exempt from Levy.............................................................................................................................. 6334 .31 Interest on a Certain Portion of the Estate Tax Payable in Installments ......................................................... 6601(j) .32 Attorney Fee Awards.......................................................................................................................................... 7430 .33 Periodic Payments Received under Qualified Long-Term Care Insurance Contracts or

under Certain Life Insurance Contracts............................................................................................................. 7702B(d)