For tax years ending after May 22, 2008, and tax years beginning before May 23, 2009, if a corporation has both a net capital gain and a qualified timber gain, a maximum 15% capital gain tax rate may apply to the qualified timber gain. Use new Part IV to figure the corporation's special alternative tax. See the instructions for Part IV.

Gain or loss recognized by any applicable financial institution from the sale or exchange of applicable preferred stock is ordinary income or loss. An applicable financial institution includes a financial institution referred to in section 582(c)(2), or a depository institution holding company defined in section 3(w)(1) of the Federal Deposit Insurance Act. Applicable preferred stock is preferred stock of the Federal National Mortgage Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie Mac) that was (1) held by the applicable financial institution on September 6, 2008, or (2) sold or exchanged by the applicable financial institution after December 31, 2007, and before September 7, 2008.