To amend the Internal Revenue Code of 1986 to clarify the rules relating to lessee construction allowances and to contributions to the capital of retailers.

Amends the Internal Revenue Code, with respect to the exclusion from a lessee's gross income of qualified construction allowances for short-term leases, to require that in order to qualify for the exclusion the construction expenditure must occur before the end of the second taxable year after the allowance was received.

Revises the exclusion from gross income (safe harbor) for certain contributions to the capital of a corporation to extend such exclusion to money or other property received by a retailer under specified conditions concerning length of business operation at a particular location and land and structure ownership at such location.

Declares that a taxpayer shall be treated as owning the land if the taxpayer is the lessee of such land under a lease having a term of at least 30 years, and on which only nominal rent is required.

Disallows any deduction or credit for, or by reason of, any amount received by the taxpayer which constitutes a contribution to capital.