Earned Income Credit. Legislation to make it clear that gains and losses “from the sale of livestock described in section 1231(b)(3)” were not included in “disqualified income” for purposes of calculating the earned income credit failed to be included in the final bill. IRS had taken the position in late 1996 and early 1997 that Section 1231 gains were to be treated the same as Section 1221 gains for this purpose and both were counted as disqualified income.