Sec. 3. Use of sinking fund by State or local government not to prevent installment sales treatment
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(3)of section 453(f) of the Internal Revenue Code of 1986 (relating to payment) is amended to read as follows: Except as provided in paragraph (4), the term payment does not include the receipt of evidences of indebtedness of the person acquiring the property (whether or not payment of such indebtedness is guaranteed by another person). Nothing in this section or the regulations thereunder shall be construed as treating a seller of property to a qualified organization (as defined in section 170(h)(3)) as receiving a payment by reason of the fact that some or all of the funds for such purchase are made (as required by State law) to a sinking or similar fund if the property is being acquired by such organization exclusively for conservation purposes (as defined in section 170(h)(4)). . The amendment made by this section shall take effect on the date of the enactment of this Act.