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HR 598 IHRHCommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 598CommentsClose CommentsPermalink

To provide for a portion of the economic recovery package relating to revenue measures, unemployment, and health.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

January 16, 2009CommentsClose CommentsPermalink

Mr. RANGEL (for himself, Mr. STARK, and Mr. MCDERMOTT) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, Science and Technology, Education and Labor, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To provide for a portion of the economic recovery package relating to revenue measures, unemployment, and health.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

TITLE I--TAX PROVISIONS CommentsClose CommentsPermalink

SECTION 1000. SHORT TITLE, ETC.

(a) Short Title- This title may be cited as the ‘American Recovery and Reinvestment Tax Act of 2009’. CommentsClose CommentsPermalink





(b) Reference- Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. CommentsClose CommentsPermalink





(c) Table of Contents- The table of contents for this title is as follows: CommentsClose CommentsPermalink





Sec. 1000. Short title, etc. CommentsClose CommentsPermalink

Subtitle A--Making Work Pay

Sec. 1001. Making work pay credit. CommentsClose CommentsPermalink

Subtitle B--Additional Tax Relief for Families With Children

Sec. 1101. Temporary iIncrease in earned income tax credit. CommentsClose CommentsPermalink





Sec. 1102. Temporary iIncrease of refundable portion of child credit. CommentsClose CommentsPermalink

Subtitle C--American Opportunity Tax Credit

Sec. 1201. American opportunity tax credit. CommentsClose CommentsPermalink

Subtitle D--Housing Incentives

Sec. 1301. Waiver of requirement to repay first-time homebuyer credit. CommentsClose CommentsPermalink





Sec. 1302. Coordination of low-income housing credit and low-income housing grants. CommentsClose CommentsPermalink

Subtitle E--Tax Incentives for Business

Part I--Temporary Investment Incentives

Sec. 1401. Special allowance for certain property acquired during 2009. CommentsClose CommentsPermalink





Sec. 1402. Temporary increase in limitations on expensing of certain depreciable business assets. CommentsClose CommentsPermalink

Part II--5-Year Carryback of Operating Losses

Sec. 1411. 5-year carryback of operating losses. CommentsClose CommentsPermalink





Sec. 1412. Exception for TARP recipients. CommentsClose CommentsPermalink

Part III--Incentives for New Jobs

Sec. 1421. Incentives to hire unemployed veterans and disconnected youth. CommentsClose CommentsPermalink

Part IV--Clarification of Regulations Related to Limitations on Certain Built-In Losses Following an Ownership Change

Sec. 1431. Clarification of regulations related to limitations on certain built-in losses following an ownership change. CommentsClose CommentsPermalink

Subtitle F--Fiscal Relief for State and Local Governments

Part I--Improved Marketability for Tax-Exempt Bonds

Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of financial institutions. CommentsClose CommentsPermalink





Sec. 1502. Modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions. CommentsClose CommentsPermalink





Sec. 1503. Temporary modification of alternative minimum tax limitations on tax-exempt bonds. CommentsClose CommentsPermalink

Part II--Tax Credit Bonds for Schools

Sec. 1511. Qualified school construction bonds. CommentsClose CommentsPermalink





Sec. 1512. Extension and expansion of qualified zone academy bonds. CommentsClose CommentsPermalink

Part III--Taxable Bond Option for Governmental Bonds

Sec. 1521. Taxable bond option for governmental bonds. CommentsClose CommentsPermalink

Part IV--Recovery Zone Bonds

Sec. 1531. Recovery zone bonds. CommentsClose CommentsPermalink





Sec. 1532. Tribal economic development bonds. CommentsClose CommentsPermalink

Part V--Repeal of Withholding Tax on Government Contractors

Sec. 1541. Repeal of withholding tax on government contractors. CommentsClose CommentsPermalink

Subtitle G--Energy Incentives

Part I--Renewable Energy Incentives

Sec. 1601. Extension of credit for electricity produced from certain renewable resources. CommentsClose CommentsPermalink





Sec. 1602. Election of investment credit in lieu of production credit. CommentsClose CommentsPermalink





Sec. 1603. Repeal of certain limitations on credit for renewable energy property. CommentsClose CommentsPermalink





Sec. 1604. Coordination with renewable energy grants. CommentsClose CommentsPermalink

Part II--Increased Allocations of New Clean Renewable Energy Bonds and Qualified Energy Conservation Bonds

Sec. 1611. Increased limitation on issuance of new clean renewable energy bonds. CommentsClose CommentsPermalink





Sec. 1612. Increased limitation on issuanceand expansion of qualified energy conservation bonds. CommentsClose CommentsPermalink

Part III--Energy Conservation Incentives

Sec. 1621. Extension and modification of credit for nonbusiness energy property. CommentsClose CommentsPermalink





Sec. 1622. Modification of credit for residential energy efficient property. CommentsClose CommentsPermalink





Sec. 1623. Temporary increase in credit for alternative fuel vehicle refueling property. CommentsClose CommentsPermalink

Part IV--Energy Research Incentives

Sec. 1631. Increased research credit for energy research. CommentsClose CommentsPermalink

Subtitle H--Other Provisions

Part I--Application of Certain Labor Standards to Projects Financed With Certain Tax-Favored Bonds

Sec. 1701. Application of certain labor standards to projects financed with certain tax-favored bonds. CommentsClose CommentsPermalink

Part II--Grants To Provide Financing for Low-Income Housing

Sec. 1711. Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009. CommentsClose CommentsPermalink

Part III--Grants for Specified Energy Property in Lieu of Tax Credits

Sec. 1721. Grants for specified energy property in lieu of tax credits. CommentsClose CommentsPermalink

Subtitle A--Making Work Pay CommentsClose CommentsPermalink

SEC. 1001. MAKING WORK PAY CREDIT.

(a) In General- Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36 the following new section: CommentsClose CommentsPermalink

‘SEC. 36A. MAKING WORK PAY CREDIT.

‘(a) Allowance of Credit- In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of-- CommentsClose CommentsPermalink





‘(1) 6.2 percent of earned income of the taxpayer, or CommentsClose CommentsPermalink





‘(2) $500 ($1,000 in the case of a joint return). CommentsClose CommentsPermalink





‘(b) Limitation Based on Modified Adjusted Gross Income- CommentsClose CommentsPermalink





‘(1) IN GENERAL- The amount allowable as a credit under subsection (a) (determined without regard to this paragraph) for the taxable year shall be reduced (but not below zero) by 2 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return). CommentsClose CommentsPermalink





‘(2) MODIFIED ADJUSTED GROSS INCOME- For purposes of subparagraph (A), the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. CommentsClose CommentsPermalink





‘(c) Definitions- For purposes of this section-- CommentsClose CommentsPermalink





‘(1) ELIGIBLE INDIVIDUAL- The term ‘eligible individual’ means any individual other than-- CommentsClose CommentsPermalink





‘(A) any nonresident alien individual, CommentsClose CommentsPermalink





‘(B) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and CommentsClose CommentsPermalink





‘(C) an estate or trust. CommentsClose CommentsPermalink





Such term shall not include any individual unless the requirements of section 32(c)(1)(E) are met with respect to such individual. CommentsClose CommentsPermalink





‘(2) EARNED INCOME- The term ‘earned income’ has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. For purposes of the preceding sentence, any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year. CommentsClose CommentsPermalink





‘(d) Termination- This section shall not apply to taxable years beginning after December 31, 2010.’. CommentsClose CommentsPermalink





(b) Treatment of Possessions- CommentsClose CommentsPermalink





(1) PAYMENTS TO POSSESSIONS- CommentsClose CommentsPermalink





(A) MIRROR CODE POSSESSION- The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this section with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. CommentsClose CommentsPermalink





(B) OTHER POSSESSIONS- The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the amendments made by this section for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession. CommentsClose CommentsPermalink





(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED STATES INCOME TAXES- No credit shall be allowed against United States income taxes for any taxable year under section 36A of the Internal Revenue Code of 1986 (as added by this section) to any person-- CommentsClose CommentsPermalink





(A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section for such taxable year, or CommentsClose CommentsPermalink





(B) who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year. CommentsClose CommentsPermalink





(3) DEFINITIONS AND SPECIAL RULES- CommentsClose CommentsPermalink





(A) POSSESSION OF THE UNITED STATES- For purposes of this subsection, the term ‘possession of the United States’ includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. CommentsClose CommentsPermalink





(B) MIRROR CODE TAX SYSTEM- For purposes of this subsection, the term ‘mirror code tax system’ means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. CommentsClose CommentsPermalink





(C) TREATMENT OF PAYMENTS- For purposes ofsection 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 36A of the Internal Revenue Code of 1986 (as added by this section). CommentsClose CommentsPermalink





(c) Refunds Disregarded in the Administration of Federal Programs and Federally Assisted Programs- Any credit or refund allowed or made to any individual by reason of section 36A of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (b) of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. CommentsClose CommentsPermalink





(d) Conforming Amendments- CommentsClose CommentsPermalink





(1) Section 6211(b)(4)(A) is amended by inserting ‘36A,’ after ‘36,’. CommentsClose CommentsPermalink





(2)Section 1324(b)(2) of title 31, United States Code, is amended by inserting ‘36A,’ after ‘36,’. CommentsClose CommentsPermalink





(3) The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36 the following new item: CommentsClose CommentsPermalink





‘Sec. 36A. Making work pay credit.’. CommentsClose CommentsPermalink





(e) Effective Date- This section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

Subtitle B--Additional Tax Relief for Families With Children CommentsClose CommentsPermalink

SEC. 1101. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT.

(a) In General- Subsection (b) of section 32 is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(3) TEMPORARY INCREASESPECIAL RULES FOR 2009 AND 2010- In the case of any taxable year beginning in 2009 or 2010-- CommentsClose CommentsPermalink





‘(A) INCREASED CREDIT PERCENTAGE FOR 3 OR MORE QUALIFYING CHILDREN- In the case of a taxpayer with 3 or more qualifying children, the credit percentage is 45 percent. CommentsClose CommentsPermalink





‘(B) REDUCTION OF MARRIAGE PENALTY- CommentsClose CommentsPermalink





‘(i) IN GENERAL- The dollar amount in effect under paragraph (2)(B) shall be $5,000. CommentsClose CommentsPermalink





‘(ii) INFLATION ADJUSTMENT- In the case of any taxable year beginning in 2010, the $5,000 amount in clause (i) shall be increased by an amount equal to-- CommentsClose CommentsPermalink





‘(I) such dollar amount, multiplied by CommentsClose CommentsPermalink





‘(II) the cost of living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting ‘calendar year 2008’ for ‘calendar year 1992’ in subparagraph (B) thereof. CommentsClose CommentsPermalink





‘(iii) ROUNDING- Subparagraph (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).’. CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1102. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT.

(a) In General- Paragraph (4) of section 24(d) is amended to read as follows: CommentsClose CommentsPermalink





‘(4) SPECIAL RULE FOR 2009 AND 2010- Notwithstanding paragraph (3), in the case of any taxable year beginning in 2009 or 2010, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be zero.’. CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

Subtitle C--American Opportunity Tax Credit CommentsClose CommentsPermalink

SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT.

(a) In General- Section 25A (relating to Hope scholarship credit) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection: CommentsClose CommentsPermalink





‘(i) American Opportunity Tax Credit- In the case of any taxable year beginning in 2009 or 2010-- CommentsClose CommentsPermalink





‘(1) INCREASE IN CREDIT- The Hope Scholarship Credit shall be an amount equal to the sum of-- CommentsClose CommentsPermalink





‘(A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus CommentsClose CommentsPermalink





‘(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000. CommentsClose CommentsPermalink





‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF POST-SECONDARY EDUCATION- Subparagraphs (A) and (C) of subsection (b)(2) shall be applied by substituting ‘4’ for ‘2’. CommentsClose CommentsPermalink





‘(3) QUALIFIED TUITION AND RELATED EXPENSES TO INCLUDE REQUIRED COURSE MATERIALS- Subsection (f)(1)(A) shall be applied by substituting ‘tuition, fees, and course materials’ for ‘tuition and fees’. CommentsClose CommentsPermalink





‘(4) INCREASE IN AGI LIMITS FOR HOPE SCHOLARSHIP CREDIT- In lieu of applying subsection (d) with respect to the Hope Scholarship Credit, such credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as-- CommentsClose CommentsPermalink





‘(A) the excess of-- CommentsClose CommentsPermalink





‘(i) the taxpayer’s modified adjusted gross income (as defined in subsection (d)(3)) for such taxable year, over CommentsClose CommentsPermalink





‘(ii) $80,000 ($160,000 in the case of a joint return), bears to CommentsClose CommentsPermalink





‘(B) $10,000 ($20,000 in the case of a joint return). CommentsClose CommentsPermalink





‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX- In the case of a taxable year to which section 26(a)(2) does not apply, so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit shall not exceed the excess of-- CommentsClose CommentsPermalink





‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over CommentsClose CommentsPermalink





‘(B) the sum of the credits allowable under this subpart (other than this section ubsection and sections 23, 25D, and 30D) and section 27 for the taxable year. CommentsClose CommentsPermalink





Any reference in this section or section 24, 25, 26, 25B, 904, or 1400C to a credit allowedable under this subsection shall be treated as a reference to so much of the credit allowedable under subsection (a) as is attributable to the Hope Scholarship Credit. CommentsClose CommentsPermalink





‘(6) PORTION OF CREDIT MADE REFUNDABLE- 40 percent of so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit (determined after application of paragraph (4) and without regard to this paragraph and section 26(a)(2) or paragraph (5), as the case may be) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year. CommentsClose CommentsPermalink





‘(7) COORDINATION WITH MIDWESTERN DISASTER AREA BENEFITS- In the case of a taxpayer with respect to whom section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008 applies for any taxable year, such taxpayer may elect to waive the application of this subsection to such taxpayer for such taxable year.’. CommentsClose CommentsPermalink





(b) Conforming Amendments- CommentsClose CommentsPermalink





(1) Section 24(b)(3)(B) is amended by inserting ‘25A(i),’ after ‘23,’. CommentsClose CommentsPermalink





(2) Section 25(e)(1)(C)(ii) is amended by inserting ‘25A(i),’ after ‘24,’. CommentsClose CommentsPermalink





(3) Section 26(a)(1) is amended by inserting ‘25A(i),’ after ‘24,’. CommentsClose CommentsPermalink





(4) Section 25B(g)(2) is amended by inserting ‘25A(i),’ after ‘23,’. CommentsClose CommentsPermalink





(5) Section 904(i) is amended by inserting ‘25A(i),’ after ‘24,’. CommentsClose CommentsPermalink





(6) Section 1400C(d)(2) is amended by inserting ‘25A(i),’ after ‘24,’. CommentsClose CommentsPermalink





(7)Section 1324(b)(2) of title 31, United States Code, is amended by inserting ‘25A,’ before ‘35’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink





(d) Application of EGTRRA Sunset- The amendment made by subsection (b)(1) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates. CommentsClose CommentsPermalink





(e) Treasury Studies Regarding Education Incentives- CommentsClose CommentsPermalink





(1) STUDY REGARDING COORDINATION WITH NON-TAX EDUCATIONAL INCENTIVES- The Secretary of the Treasury, or the Secretary’s delegate, shall study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the Higher Education Act of 1965. CommentsClose CommentsPermalink





(2) STUDY REGARDING IMPOSITION OF COMMUNITY SERVICE REQUIREMENTS- The Secretary of the Treasury, or the Secretary’s delegate, shall study the feasibility of requiring students to perform community service as a condition of taking their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986. CommentsClose CommentsPermalink





(3) REPORT- Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph. CommentsClose CommentsPermalink

Subtitle D--Housing Incentives CommentsClose CommentsPermalink

SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST-TIME HOMEBUYER CREDIT.

(a) In General- Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph: CommentsClose CommentsPermalink





‘(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009- In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before July 1, 2009-- CommentsClose CommentsPermalink





‘(i) paragraph (1) shall not apply, and CommentsClose CommentsPermalink





‘(ii) paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.’. CommentsClose CommentsPermalink





(b) Conforming Amendment- Subsection (g) of section 36 is amended by striking ‘subsection (c)’ and inserting ‘subsections (c) and (f)(4)(D)’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to residences purchased after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1302. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME HOUSING GRANTS.

Subsection (i) of section 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(9) COORDINATION WITH LOW-INCOME HOUSING GRANTS- CommentsClose CommentsPermalink





‘(A) REDUCTION IN STATE HOUSING CREDIT CEILING FOR LOW-INCOME HOUSING GRANTS RECEIVED IN 2009- For purposes of this section, the amounts described in clauses (i) through (iv) of subsection (h)(3)(C) with respect to any State for 2009 shall each be reduced by so much of such amount as is taken into account in determining the amount of any grant to such State under section 1711 of the American Recovery and Reinvestment Tax Act of 2009. CommentsClose CommentsPermalink





‘(B) SPECIAL RULE FOR BASIS- Basis of a qualified low-income building shall not be reduced by the amount of any grant described in subparagraph (A).’. CommentsClose CommentsPermalink

Subtitle E--Tax Incentives for Business CommentsClose CommentsPermalink

PART I--TEMPORARY INVESTMENT INCENTIVES

SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.

(a) In General- Paragraph (2) of section 168(k) is amended-- CommentsClose CommentsPermalink





(1) by striking ‘January 1, 2010’ and inserting ‘January 1, 2011’, and CommentsClose CommentsPermalink





(2) by striking ‘January 1, 2009’ each place it appears and inserting ‘January 1, 2010’. CommentsClose CommentsPermalink





(b) Conforming Amendments- CommentsClose CommentsPermalink





(1) The heading for subsection (k) of section 168 is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’. CommentsClose CommentsPermalink





(2) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking ‘PRE-JANUARY 1, 2009’ and inserting ‘PRE-JANUARY 1, 2010’. CommentsClose CommentsPermalink





(3) Subparagraph (D) of section 168(k)(4) is amended-- CommentsClose CommentsPermalink





(A) by striking ‘and’ at the end of clause (i), CommentsClose CommentsPermalink





(B) by redesignating clause (ii) as clause (v), and CommentsClose CommentsPermalink





(C) by inserting after clause (i) the following new clauses: CommentsClose CommentsPermalink





‘(ii) ‘April 1, 2008’ shall be substituted for ‘January 1, 2008’ in subparagraph (A)(iii)(I) thereof, CommentsClose CommentsPermalink





‘(iii) ‘January 1, 2009’ shall be substituted for ‘January 1, 2010’ each place it appears, CommentsClose CommentsPermalink





‘(iv) ‘January 1, 2010’ shall be substituted for ‘January 1, 2011’ in subparagraph (A)(iv) thereof, and’. CommentsClose CommentsPermalink





(4) Subparagraph (B) of section 168(l)(5) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’. CommentsClose CommentsPermalink





(5) Clause (ii) of section 168(n)(2)(C) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’. CommentsClose CommentsPermalink





(6) Subparagraph (B) of section 1400N(d)(3) is amended by striking ‘January 1, 2009’ and inserting ‘January 1, 2010’. CommentsClose CommentsPermalink





(c) Effective Dates- CommentsClose CommentsPermalink





(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date. CommentsClose CommentsPermalink





(2) TECHNICAL AMENDMENT- Section 168(k)(4)(D)(ii) of the Internal Revenue Code of 1986, as added by subsection (b)(3)(C), shall apply to taxable years ending after March 31, 2008. CommentsClose CommentsPermalink

SEC. 1402. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS.

(a) In General- Paragraph (7) of section 179(b) is amended-- CommentsClose CommentsPermalink





(1) by striking ‘2008’ and inserting ‘2008, or 2009’, and CommentsClose CommentsPermalink





(2) by striking ‘2008’ in the heading thereof and inserting ‘2008, AND 2009’. CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

PART II--5-YEAR CARRYBACK OF OPERATING LOSSES

SEC. 1411. 5-YEAR CARRYBACK OF OPERATING LOSSES.

(a) In General- Subparagraph (H) of section 172(b)(1) is amended to read as follows: CommentsClose CommentsPermalink





‘(H) CARRYBACK FOR 2008 AND 2009 NET OPERATING LOSSES- CommentsClose CommentsPermalink





In the case of a‘(i) IN GENERAL- In the case of an applicable 2008 or 2009 net operating loss for any taxable year ending during 2008 or 2009--‘(iwith respect to which the taxpayer has elected the application of this subparagraph-- CommentsClose CommentsPermalink





‘(I) such net operating loss shall be reduced by 10 percent of such loss (determined without regard to this subparagraph), CommentsClose CommentsPermalink





‘(II) subparagraph (A)(i) shall be applied by substituting ‘5’ for ‘2’,‘(iiany whole number elected by the taxpayer which is more than 2 and less than 6 for ‘2’, CommentsClose CommentsPermalink





‘(III) subparagraph (E)(ii) shall be applied by substituting ‘4’the whole number which is one less than the whole number substituted under subclause (II) for ‘2’, and CommentsClose CommentsPermalink





‘(iiiIV) subparagraph (F) shall not apply. CommentsClose CommentsPermalink





‘(ii) APPLICABLE 2008 OR 2009 NET OPERATING LOSS- For purposes of this subparagraph, the term ‘applicable 2008 or 2009 net operating loss’ means-- CommentsClose CommentsPermalink





‘(I) the taxpayer’s net operating loss for any taxable year ending in 2008 or 2009, or CommentsClose CommentsPermalink





‘(II) if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer’s net operating loss for any taxable year beginning in 2008 or 2009. CommentsClose CommentsPermalink





‘(iii) ELECTION- Any election under this subparagraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extension of time) for filing the taxpayer’s return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable. CommentsClose CommentsPermalink





‘(iv) COORDINATION WITH ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION- In the case of a taxpayer who elects to have clause (ii)(II) apply, section 56(d)(1)(A)(ii) shall be applied by substituting ‘ending during 2001 or 2002 or beginning during 2008 or 2009’ for ‘ending during 2001, 2002, 2008, or 2009’.’. CommentsClose CommentsPermalink





(b) Alternative Tax Net Operating Loss Deduction- Subclause (I) of section 56(d)(1)(A)(ii) is amended to read as follows: CommentsClose CommentsPermalink





‘(I) the amount of such deduction attributable to the sum of carrybacks of net operating losses from taxable years ending during 2001, 2002, 2008, or 2009 and carryovers of net operating losses to taxable years ending during such calendarsuch taxable years, or’. CommentsClose CommentsPermalink





(c) Election To Carry Back a Fewer Number of Years- Subsection (k) of section 172 is amended by inserting ‘or may elect to apply such subsection by substituting a whole number less than 5 for ‘5’ in such subsection’ before the period at the end of the first sentence.(d) Loss From Operations of Life Insurance Companies- Subsection (b) of section 810 is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES- CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of an applicable 2008 or 2009 loss from operations with respect to which the taxpayer has elected the application of this paragraph-- CommentsClose CommentsPermalink





‘(i) such loss from operations shall be reduced by 10 percent of such loss (determined without regard to this paragraph), and CommentsClose CommentsPermalink





‘(ii) paragraph (1)(A) shall be applied, at the election of the taxpayer, by substituting ‘5’ or ‘4’ for ‘3’. CommentsClose CommentsPermalink





‘(B) APPLICABLE 2008 OR 2009 LOSS YEARS- In the case of aFROM OPERATIONS- For purposes of this paragraph, the term ‘applicable 2008 or 2009 loss from operations’ means-- CommentsClose CommentsPermalink





‘(i) the taxpayer’s loss from operations for any taxable year ending during 2008 or 2009, the taxpayer may elect to apply paragraph (1)(A) by substituting any whole number less than 6 for ‘3’. Such election shall be made in such manner as may be prescribed by the Secretaryin 2008 or 2009, or CommentsClose CommentsPermalink





‘(ii) if the taxpayer elects to have this clause apply in lieu of clause (i), the taxpayer’s loss from operations for any taxable year beginning in 2008 or 2009. CommentsClose CommentsPermalink





‘(C) ELECTION- Any election under this paragraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extensions of time) for filing the taxpayer’s return for the taxable year of the loss from operations. SAny such election, once made for any taxable year, shall be irrevocable for such taxable year, shall be irrevocable. CommentsClose CommentsPermalink





‘(D) COORDINATION WITH ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION- In the case of a taxpayer who elects to have subparagraph (B)(ii) apply, section 56(d)(1)(A)(ii) shall be applied by substituting ‘ending during 2001 or 2002 or beginning during 2008 or 2009’ for ‘ending during 2001, 2002, 2008, or 2009’.’. CommentsClose CommentsPermalink





(d) Conforming Amendment- Section 172 is amended by striking subsection (k). CommentsClose CommentsPermalink





(e) Effective Date- CommentsClose CommentsPermalink





(1) IN GENERAL- Except as otherwise provided in this subsection, the amendments made by this section shall apply to net operating losses arising in taxable years ending after December 31, 2007. CommentsClose CommentsPermalink





(2) ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION- The amendment made by subsection (b) shall apply to taxable years ending after 1997. CommentsClose CommentsPermalink





(3) LOSS FROM OPERATIONS OF LIFE INSURANCE COMPANIES- The amendment made by subsection (d) shall apply to losses from operations arising in taxable years ending after December 31, 2007. CommentsClose CommentsPermalink





(4) TRANSITIONAL RULE- In the case of a net operating loss (or, in the case of a life insurance company, a loss from operations) for a taxable year ending during 2008before the date of the enactment of this Act-- CommentsClose CommentsPermalink





(A) any election made under section 172(b)(3) or 810(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date, CommentsClose CommentsPermalink





(B) any election made under section 172(kb)(1)(H) or 810(b)(4) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if made before the applicable date, and CommentsClose CommentsPermalink





(C) any application under section 6411(a) of such Code with respect to such loss shall be treated as timely filed if filed before the applicable date. CommentsClose CommentsPermalink





For purposes of this paragraph, the term ‘applicable date’ means the date which is 60 days after the date of the enactment of this Act. CommentsClose CommentsPermalink

SEC. 1412. EXCEPTION FOR TARP RECIPIENTS.

The amendments made by this part shall not apply to-- CommentsClose CommentsPermalink





(1) any taxpayer if-- CommentsClose CommentsPermalink





(A) the Federal Government acquires, at any time, an equity interest in the taxpayer pursuant to the Emergency Economic Stabilization Act of 2008, or CommentsClose CommentsPermalink





(B) the Federal Government acquires, at any time, any warrant (or other right) to acquire any equity interest with respect to the taxpayer pursuant to such Act, CommentsClose CommentsPermalink





(2) the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and CommentsClose CommentsPermalink





(3) any taxpayer which at any time in 2008 or 2009 is a member of the same affiliated group (as defined in section 1504 of the Internal Revenue Code of 1986, determined without regard to subsection (b) thereof) as a taxpayer described in paragraph (1) or (2). CommentsClose CommentsPermalink

PART III--INCENTIVES FOR NEW JOBS

SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED YOUTH.

(a) In General- Subsection (d) of section 51 is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(14) CREDIT ALLOWED FOR UNEMPLOYED VETERANS AND DISCONNECTED YOUTH HIRED IN 2009 OR 2010- CommentsClose CommentsPermalink





‘(A) IN GENERAL- Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group for purposes of this subpart. CommentsClose CommentsPermalink





‘(B) DEFINITIONS- For purposes of this paragraph-- CommentsClose CommentsPermalink





‘(i) UNEMPLOYED VETERAN- The term ‘unemployed veteran’ means any veteran (as defined in paragraph (3)(B), determined without regard to clause (ii) thereof) who is certified by the designated local agency as-- CommentsClose CommentsPermalink





‘(I) having been discharged or released from active duty in the Armed Forces during 2008, 2009, or 2010, and CommentsClose CommentsPermalink





‘(II) being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date. CommentsClose CommentsPermalink





‘(ii) DISCONNECTED YOUTH- The term ‘disconnected youth’ means any individual who is certified by the designated local agency-- CommentsClose CommentsPermalink





‘(I) as having attained age 16 but not age 25 on the hiring date, CommentsClose CommentsPermalink





‘(II) as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, CommentsClose CommentsPermalink





‘(III) as not regularly employed during such 6-month period, and CommentsClose CommentsPermalink





‘(IV) as not readily employable by reason of lacking a sufficient number of basic skills.’. CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2008. CommentsClose CommentsPermalink

PART IV--CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE

SEC. 1431. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE.

(a) Findings- Congress finds as follows: CommentsClose CommentsPermalink





(1) The delegation of authority to the Secretary of the Treasury under section 382(m) of the Internal Revenue Code of 1986 does not authorize the Secretary to provide exemptions or special rules that are restricted to particular industries or classes of taxpayers. CommentsClose CommentsPermalink





(2) Internal Revenue Service Notice 2008-83 is inconsistent with the congressional intent in enacting such section 382(m). CommentsClose CommentsPermalink





(3) The legal authority to prescribe Internal Revenue Service Notice 2008-83 is doubtful. CommentsClose CommentsPermalink





(4) However, as taxpayers should generally be able to rely on guidance issued by the Secretary of the Treasury legislation is necessary to clarify the force and effect of Internal Revenue Service Notice 2008-83 and restore the proper application under the Internal Revenue Code of 1986 of the limitation on built-in losses following an ownership change of a bank. CommentsClose CommentsPermalink





(b) Determination of Force and Effect of Internal Revenue Service Notice 2008-83 Exempting Banks From Limitation on Certain Built-In Losses Following Ownership Change- CommentsClose CommentsPermalink





(1) IN GENERAL- Internal Revenue Service Notice 2008-83-- CommentsClose CommentsPermalink





(A) shall be deemed to have the force and effect of law with respect to any ownership change (as defined in section 382(g) of the Internal Revenue Code of 1986) occurring on or before January 16, 2009, and CommentsClose CommentsPermalink





(B) shall have no force or effect with respect to any ownership change after such date. CommentsClose CommentsPermalink





(2) BINDING CONTRACTS- Notwithstanding paragraph (1), Internal Revenue Service Notice 2008-83 shall have the force and effect of law with respect to any ownership change (as so defined) which occurs after January 16, 2009 if such change-- CommentsClose CommentsPermalink





(A) is pursuant to a written binding contract entered into on or before such date, or CommentsClose CommentsPermalink





(B) was described on or before such date in a publicis pursuant to a written agreement entered into on or before such date and such agreement was described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required by reason of such ownership change. CommentsClose CommentsPermalink

Subtitle F--Fiscal Relief for State and Local Governments CommentsClose CommentsPermalink

PART I--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS

SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST EXPENSE OF FINANCIAL INSTITUTIONS.

(a) In General- Subsection (b) of section 265 is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(7) DE MINIMIS EXCEPTION FOR BONDS ISSUED DURING 2009 OR 2010- CommentsClose CommentsPermalink





‘(A) IN GENERAL- In applying paragraph (2)(A), there shall not be taken into account tax-exempt obligations issued during 2009 or 2010. CommentsClose CommentsPermalink





‘(B) LIMITATION- The amount of tax-exempt obligations not taken into account by reason of subparagraph (A) shall not exceed 2 percent of the amount determined under paragraph (2)(B). CommentsClose CommentsPermalink





‘(C) REFUNDINGS- For purposes of this paragraph, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).’. CommentsClose CommentsPermalink





(b) Treatment as Financial Institution Preference Item- Clause (iv) of section 291(e)(1)(B) is amended by adding at the end the following: ‘That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986.’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to obligations issued after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS.

(a) In General- Paragraph (3) of section 265(b) (relating to exception for certain tax-exempt obligations) is amended by adding at the end the following new subparagraph: CommentsClose CommentsPermalink





‘(G) SPECIAL RULES FOR OBLIGATIONS ISSUED DURING 2009 AND 2010- CommentsClose CommentsPermalink





‘(i) INCREASE IN LIMITATION- In the case of obligations issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be applied by substituting ‘$30,000,000’ for ‘$10,000,000’. CommentsClose CommentsPermalink





‘(ii) QUALIFIED 501(C)(3) BONDS TREATED AS ISSUED BY EXEMPT ORGANIZATION- In the case of a qualified 501(c)(3) bond (as defined in section 145) issued during 2009 or 2010, this paragraph shall be applied by treating the 501(c)(3) organization for whose benefit such bond was issued as the issuer. CommentsClose CommentsPermalink





‘(iii) SPECIAL RULE FOR POOLQUALIFIED FINANCINGS- In the case of a poolqualified financing issue issued during 2009 or 2010-- CommentsClose CommentsPermalink





‘(I) subparagraph (F) shall not apply, and CommentsClose CommentsPermalink





‘(II) any obligation issued as a part of such issue shall be treated as a qualified tax-exempt obligation if the requirements of this paragraph are met with respect to each qualified portion of the issue (determined by treating each qualified portion as a separate issue).‘(iii) POOL issued by the qualified borrower with respect to which such portion relates). CommentsClose CommentsPermalink





‘(iv) QUALIFIED FINANCING ISSUE- For purposes of this subparagraph, the term ‘poolqualified financing issue’ means any composite, pooled, or other conduit financing issue the proceeds of which are used directly or indirectly to make or finance loans to 2one or more ultimate borrowers all of whom are qualified borrowers.‘(ieach of whom is a qualified borrower. CommentsClose CommentsPermalink





‘(v) QUALIFIED PORTION- For purposes of this subparagraph, the term ‘qualified portion’ means that portion of the proceeds which are used with respect to each qualified borrower under the issue. CommentsClose CommentsPermalink





‘(v) i) QUALIFIED BORROWER- For purposes of this subparagraph, the term ‘qualified borrower’ means a borrower which is a State or political subdivision thereof or an organization described in section 501(c)(3) and exempt from taxation under section 501(a).’. CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to obligations issued after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX LIMITATIONS ON TAX-EXEMPT BONDS.

(a) Interest on Private Activity Bonds Issued During 2009 and 2010 Not Treated as Tax Preference Item- Subparagraph (C) of section 57(a)(5) is amended by adding at the end a new clause: CommentsClose CommentsPermalink





‘(vi) EXCEPTION FOR BONDS ISSUED IN 2009 AND 2010- For purposes of clause (i), the term ‘private activity bond’ shall not include any bond issued after December 31, 2008, and before January 1, 2011. For purposes of the preceding sentence, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).’. CommentsClose CommentsPermalink





(b) No Adjustment to Adjusted Current Earnings for Interest on Tax-Exempt Bonds Issued After 2008- Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause: CommentsClose CommentsPermalink





‘(iv) TAX EXEMPT INTEREST ON BONDS ISSUED IN 2009 AND 2010- Clause (i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011. For purposes of the preceding sentence, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to obligations issued after December 31, 2008. CommentsClose CommentsPermalink

PART II--TAX CREDIT BONDS FOR SCHOOLS

SEC. 1511. QUALIFIED SCHOOL CONSTRUCTION BONDS.

(a) In General- Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: CommentsClose CommentsPermalink

‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.

‘(a) Qualified School Construction Bond- For purposes of this subchapter, the term ‘qualified school construction bond’ means any bond issued as part of an issue if-- CommentsClose CommentsPermalink





‘(1) 100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue, CommentsClose CommentsPermalink





‘(2) the bond is issued by a State or local government within the jurisdiction of which such school is located, and CommentsClose CommentsPermalink





‘(3) the issuer designates such bond for purposes of this section. CommentsClose CommentsPermalink





‘(b) Limitation on Amount of Bonds Designated- The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) by any issuer shall not exceed the sum of-- CommentsClose CommentsPermalink





‘(1) the limitation amount allocated under subsection (d) for such calendar year to such issuer, and CommentsClose CommentsPermalink





‘(2) if such issuer is a large local educational agency (as defined in subsection (e)(4)) or is issuing on behalf of such an agency, the limitation amount allocated under subsection (e) for such calendar year to such agency. CommentsClose CommentsPermalink





‘(c) National Limitation on Amount of Bonds Designated- There is a national qualified school construction bond limitation for each calendar year. Such limitation is-- CommentsClose CommentsPermalink





‘(1) $101,000,000,000 for 2009, CommentsClose CommentsPermalink





‘(2) $101,000,000,000 for 2010, and CommentsClose CommentsPermalink





‘(3) except as provided in subsection (f), zero after 2010. CommentsClose CommentsPermalink





‘(d) 60 Percent of Limitation Allocated Among States- CommentsClose CommentsPermalink





‘(1) IN GENERAL- 60 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective numbers of children in each State who have attained age 5 but not age 18 for the most recent fiscal year ending before such calendar year. The limitation amount allocated to a State under the preceding sentence shall be allocated by the State to issuers within such State. CommentsClose CommentsPermalink





‘(2) MINIMUM ALLOCATIONS TO STATES- CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall adjust the allocations under this subsection for any calendar year for each State to the extent necessary to ensure that the sum of-- CommentsClose CommentsPermalink





‘(i) the amount allocated to such State under this subsection for such year, and CommentsClose CommentsPermalink





‘(ii) the aggregate amounts allocated under subsection (e) to large local educational agencies in such State for such year, CommentsClose CommentsPermalink





is not less than an amount equal to such State’s adjusted minimum percentage of the amount to be allocated under paragraph (1) for the calendar year. CommentsClose CommentsPermalink





‘(B) ADJUSTED MINIMUM PERCENTAGE- A State’s adjusted minimum percentage for any calendar year is the product of-- CommentsClose CommentsPermalink





‘(i) the minimum percentage described in section 1124(d) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6334(d)) for such State for the most recent fiscal year ending before such calendar year, multiplied by CommentsClose CommentsPermalink





‘(ii) 1.68. CommentsClose CommentsPermalink





‘(3) ALLOCATIONS TO CERTAIN POSSESSIONS- The amount to be allocated under paragraph (1) to any possession of the United States other than Puerto Rico shall be the amount which would have been allocated if all allocations under paragraph (1) were made on the basis of respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). In making other allocations, the amount to be allocated under paragraph (1) shall be reduced by the aggregate amount allocated under this paragraph to possessions of the United States. CommentsClose CommentsPermalink





‘(4) ALLOCATIONS FOR INDIAN SCHOOLS- In addition to the amounts otherwise allocated under this subsection, $200,000,000 for calendar year 2009, and $200,000,000 for calendar year 2010, shall be allocated by the Secretary of the Interior for purposes of the construction, rehabilitation, and repair of schools funded by the Bureau of Indian Affairs. In the case of amounts allocated under the preceding sentence, Indian tribal governments (as defined in section 7701(a)(40)) shall be treated as qualified issuers for purposes of this subchapter. CommentsClose CommentsPermalink





‘(e) 40 Percent of Limitation Allocated Among Largest School Districts- CommentsClose CommentsPermalink





‘(1) IN GENERAL- 40 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated under paragraph (2) by the Secretary among local educational agencies which are large local educational agencies for such year. CommentsClose CommentsPermalink





‘(2) ALLOCATION FORMULA- The amount to be allocated under paragraph (1) for any calendar year shall be allocated among large local educational agencies in proportion to the respective amounts each such agency received for Basic Grants under subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for the most recent fiscal year ending before such calendar year. CommentsClose CommentsPermalink





‘(3) ALLOCATION OF UNUSED LIMITATION TO STATE- The amount allocated under this subsection to a large local educational agency for any calendar year may be reallocated by such agency to the State in which such agency is located for such calendar year. Any amount reallocated to a State under the preceding sentence may be allocated as provided in subsection (d)(1). CommentsClose CommentsPermalink





‘(4) LARGE LOCAL EDUCATIONAL AGENCY- For purposes of this section, the term ‘large local educational agency’ means, with respect to a calendar year, any local educational agency if such agency is-- CommentsClose CommentsPermalink





‘(A) among the 100 local educational agencies with the largest numbers of children aged 5 through 17 from families living below the poverty level, as determined by the Secretary using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, or CommentsClose CommentsPermalink





‘(B) 1 of not more than 25 local educational agencies (other than those described in subparagraph (A)) that the Secretary of Education determines (based on the most recent data available satisfactory to the Secretary) are in particular need of assistance, based on a low level of resources for school construction, a high level of enrollment growth, or such other factors as the Secretary deems appropriate. CommentsClose CommentsPermalink





‘(f) Carryover of Unused Limitation- If for any calendar year-- CommentsClose CommentsPermalink





‘(1) the amount allocated under subsection (d) to any State, exceeds CommentsClose CommentsPermalink





‘(2) the amount of bonds issued during such year which are designated under subsection (a) pursuant to such allocation, CommentsClose CommentsPermalink





the limitation amount under such subsection for such State for the following calendar year shall be increased by the amount of such excess. A similar rule shall apply to the amounts allocated under subsection (d)(4) or (e).’. CommentsClose CommentsPermalink





(b) Conforming Amendments- CommentsClose CommentsPermalink





(1) Paragraph (1) of section 54A(d) is amended by striking ‘or’ at the end of subparagraph (C), by inserting ‘or’ at the end of subparagraph (D), and by inserting after subparagraph (D) the following new subparagraph: CommentsClose CommentsPermalink





‘(E) a qualified school construction bond,’. CommentsClose CommentsPermalink





(2) Subparagraph (C) of section 54A(d)(2) is amended by striking ‘and’ at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ‘, and’, and by adding at the end the following new clause: CommentsClose CommentsPermalink





‘(v) in the case of a qualified school construction bond, a purpose specified in section 54F(a)(1).’. CommentsClose CommentsPermalink





(3) The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: CommentsClose CommentsPermalink





‘Sec. 54F. Qualified school construction bonds.’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to obligations issued after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.

(a) In General- Section 54E(c)(1) is amended by striking ‘and 2009’ and inserting ‘and $1,400,000,000 for 2009 and 2010’. CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to obligations issued after December 31, 2008. CommentsClose CommentsPermalink

PART III--TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS

SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS.

(a) In General- Part IV of subchapter A of chapter 1 is amended by adding at the end the following new subpart: CommentsClose CommentsPermalink

‘Subpart J--Taxable Bond Option for Governmental Bonds

‘Sec. 54AA. Taxable bond option for governmental bonds. CommentsClose CommentsPermalink

‘SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS.

‘(a) In General- If a taxpayer holds a taxable governmental bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates. CommentsClose CommentsPermalink





‘(b) Amount of Credit- The amount of the credit determined under this subsection with respect to any interest payment date for a taxable governmental bond is 35 percent of the amount of interest payable by the issuer with respect to such date. CommentsClose CommentsPermalink





‘(c) Limitation Based on Amount of Tax- CommentsClose CommentsPermalink





‘(1) IN GENERAL- The credit allowed under subsection (a) for any taxable year shall not exceed the excess of-- CommentsClose CommentsPermalink





‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over CommentsClose CommentsPermalink





‘(B) the sum of the credits allowable under this part (other than subpart C and this subpart). CommentsClose CommentsPermalink





‘(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year). CommentsClose CommentsPermalink





‘(d) Taxable Governmental Bond- CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of this section, the term ‘taxable governmental bond’ means any obligation (other than a private activity bond) if-- CommentsClose CommentsPermalink





‘(A) the interest on such obligation would (but for this section) be excludable from gross income under section 103, and CommentsClose CommentsPermalink





‘(B) the issuer makes an irrevocable election to have this section apply. CommentsClose CommentsPermalink





‘(2) APPLICABLE RULES- For purposes of applying paragraph (1)-- CommentsClose CommentsPermalink





‘(A) a taxable governmental bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection (a) or section 64312, CommentsClose CommentsPermalink





‘(B) the yield on a taxable governmental bond shall be determined without regard to the credit allowed under subsection (a), and CommentsClose CommentsPermalink





‘(C) a bond shall not be treated as a taxable governmental bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond. CommentsClose CommentsPermalink





‘(e) Interest Payment Date- For purposes of this section, the term ‘interest payment date’ means any date on which the holder of record of the taxable governmental bond is entitled to a payment of interest under such bond. CommentsClose CommentsPermalink





‘(f) Special Rules- CommentsClose CommentsPermalink





‘(1) INTEREST ON TAXABLE GOVERNMENTAL BONDS INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES- For purposes of this title, interest on any taxable governmental bond shall be includible in gross income. CommentsClose CommentsPermalink





‘(2) APPLICATION OF CERTAIN RULES- Rules similar to the rules of subsections (f), (g), (h), and (i) of section 54A shall apply for purposes of the credit allowed under subsection (a). CommentsClose CommentsPermalink





‘(g) Special Rule for Qualified Bonds Issued Before 2011- In the case of a qualified bond issued before January 1, 2011-- CommentsClose CommentsPermalink





‘(1) ISSUER ALLOWED REFUNDABLE CREDIT- In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 64312. CommentsClose CommentsPermalink





‘(2) QUALIFIED BOND- For purposes of this subsection, the term ‘qualified bond’ means any taxable governmental bond issued as part of an issue if-- CommentsClose CommentsPermalink





‘(A) 100 percent of the available project proceeds (as defined in section 54A) of such issue are to be used for capital expenditures, and CommentsClose CommentsPermalink





‘(B) the issuer makes an irrevocable election to have this subsection apply. CommentsClose CommentsPermalink





‘(h) Regulations- The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6432.’. CommentsClose CommentsPermalink





(b) Credit for Qualified Bonds Issued Before 2011- Subchapter B of chapter 65 is amended by adding at, as amended by this Act, is amended by adding at the end the following new section: CommentsClose CommentsPermalink

‘SEC. 64312. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.

‘(a) In General- In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b). CommentsClose CommentsPermalink





‘(b) Payment of Credit- The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date. CommentsClose CommentsPermalink





‘(c) Application of Arbitrage Rules- For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section. CommentsClose CommentsPermalink





‘(d) Interest Payment Date- For purposes of this subsection, the term ‘interest payment date’ means each date on which interest is payable by the issuer under the terms of the bond. CommentsClose CommentsPermalink





‘(e) Qualified Bond- For purposes of this subsection, the term ‘qualified bond’ has the meaning given such term in section 54AA(hg).’. CommentsClose CommentsPermalink





(c) Conforming Amendments- CommentsClose CommentsPermalink





(1)Section 1324(b)(2) of title 31, United States Code, is amended by striking ‘or 6428’ and inserting ‘6428, or 64312,’. CommentsClose CommentsPermalink





(2) Section 54A(c)(1)(B) is amended by striking ‘subpart C’ and inserting ‘subparts C and J’. CommentsClose CommentsPermalink





(3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each amended by striking ‘and I’ and inserting ‘, I, and J’. CommentsClose CommentsPermalink





(4) Section 6401(b)(1) is amended by striking ‘and I’ and inserting ‘I, and J’. CommentsClose CommentsPermalink





(5) The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: CommentsClose CommentsPermalink





‘Subpart J. Taxable bond option for governmental bonds.’. CommentsClose CommentsPermalink





(6) The table of sections for subchapter B of chapter 65 is amended by adding at, as amended by this Act, is amended by adding at the end the following new item: CommentsClose CommentsPermalink





‘Sec. 64312. Credit for qualified bonds allowed to issuer on advance basis.’. CommentsClose CommentsPermalink





(d) Transitional Coordination With State Law- Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any taxable governmental bond (as defined in section 54AA of the Internal Revenue Code of 1986, as added by this section) and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such State as being exempt from Federal income tax. CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. CommentsClose CommentsPermalink

PART IV--RECOVERY ZONE BONDS

SEC. 1531. RECOVERY ZONE BONDS.

(a) In General- Subchapter Y of chapter 1 is amended by adding at the end the following new part: CommentsClose CommentsPermalink

‘PART III--RECOVERY ZONE BONDS

‘Sec. 1400U-1. Allocation of recovery zone bonds. CommentsClose CommentsPermalink





‘Sec. 1400U-2. Recovery zone economic development bonds. CommentsClose CommentsPermalink





‘Sec. 1400U-3. Recovery zone facility bonds. CommentsClose CommentsPermalink

‘SEC. 1400U-1. ALLOCATION OF RECOVERY ZONE BONDS.

‘(a) Allocations- CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary shall allocate the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation among the States in the proportion that each such State’s 2008 State employment decline bears to the aggregate of the 2008 State employment declines for all of the States. CommentsClose CommentsPermalink





‘(2) 2008 STATE EMPLOYMENT DECLINE- For purposes of this subsection, the term ‘2008 State employment decline’ means, with respect to any State, the excess (if any) of-- CommentsClose CommentsPermalink





‘(A) the number of individuals employed in such State determined for December 2007, over CommentsClose CommentsPermalink





‘(B) the number of individuals employed in such State determined for December 2008. CommentsClose CommentsPermalink





‘(3) ALLOCATIONS BY STATES- CommentsClose CommentsPermalink





‘(A) IN GENERAL- Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion the each such county’s or municipality’s 2008 employment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such State. CommentsClose CommentsPermalink





‘(B) LARGE MUNICIPALITIES- For purposes of subparagraph (A), the term ‘large municipality’ means a municipality with a population of more than 100,000. CommentsClose CommentsPermalink





‘(C) DETERMINATION OF LOCAL EMPLOYMENT DECLINES- For purposes of this paragraph, the employment decline of any municipality or county shall be determined in the same manner as determining the State employment decline under paragraph (2), except that in the case of a municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county. CommentsClose CommentsPermalink





‘(4) NATIONAL LIMITATIONS- CommentsClose CommentsPermalink





‘(A) RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS- There is a national recovery zone economic development bond limitation of $10,000,000,000. CommentsClose CommentsPermalink





‘(B) RECOVERY ZONE FACILITY BONDS- There is a national recovery zone facility bond limitation of $15,000,000,000. CommentsClose CommentsPermalink





‘(b) Recovery Zone- For purposes of this part, the term ‘recovery zone’ means-- CommentsClose CommentsPermalink





‘(1) any area designated by the issuer as having significant poverty, unemployment, or rate of home foreclosures, or general distress, and CommentsClose CommentsPermalink





‘(2) any area for which a designation as an empowerment zone or renewal community is in effect. CommentsClose CommentsPermalink

‘SEC. 1400U-2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.

‘(a) In General- In the case of a recovery zone economic development bond-- CommentsClose CommentsPermalink





‘(1) such bond shall be treated as a qualified bond for purposes of section 64312, and CommentsClose CommentsPermalink





‘(2) subsection (b) of such section shall be applied by substituting ‘4055 percent’ for ‘35 percent’. CommentsClose CommentsPermalink





‘(b) Recovery Zone Economic Development Bond- CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of this section, the term ‘recovery zone economic development bond’ means any taxable governmental bond (as defined in section 54AA(d)) issued before January 1, 2011, as part of issue if-- CommentsClose CommentsPermalink





‘(A) 100 percent of the available project proceeds (as defined in section 54A) of such issue are to be used for one or more qualified economic development purposes, and CommentsClose CommentsPermalink





‘(B) the issuer designates such bond for purposes of this section. CommentsClose CommentsPermalink





‘(2) LIMITATION ON AMOUNT OF BONDS DESIGNATED- The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of the recovery zone economic development bond limitation allocated to such issuer under section 1400U-1. CommentsClose CommentsPermalink





‘(c) Qualified Economic Development Purpose- For purposes of this section, the term ‘qualified economic development purpose’ means expenditures for purposes of promoting development or other economic activity in a recovery zone, including-- CommentsClose CommentsPermalink





‘(1) capital expenditures paid or incurred with respect to property located in such zone, CommentsClose CommentsPermalink





‘(2) expenditures for public infrastructure and construction of public facilities, and CommentsClose CommentsPermalink





‘(3) expenditures for job training and educational programs. CommentsClose CommentsPermalink

‘SEC. 1400U-3. RECOVERY ZONE FACILITY BONDS.

‘(a) In General- For purposes of part IV of subchapter B (relating to tax exemption requirements for State and local bonds), the term ‘exempt facility bond’ includes any recovery zone facility bond. CommentsClose CommentsPermalink





‘(b) Recovery Zone Facility Bond- CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of this section, the term ‘recovery zone facility bond’ means any bond issued as part of an issue if-- CommentsClose CommentsPermalink





‘(A) 95 percent or more of the net proceeds (as defined in section 150(a)(3)) of such issue are to be used for recovery zone property, CommentsClose CommentsPermalink





‘(B) such bond is issued before January 1, 2011, and CommentsClose CommentsPermalink





‘(C) the issuer designates such bond for purposes of this section. CommentsClose CommentsPermalink





‘(2) LIMITATION ON AMOUNT OF BONDS DESIGNATED- The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of recovery zone facility bond limitation allocated to such issuer under section 1400U-1. CommentsClose CommentsPermalink





‘(c) Recovery Zone Property- For purposes of this section-- CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘recovery zone property’ means any property to which section 168 applies (or would apply but for section 179) if-- CommentsClose CommentsPermalink





‘(A) such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after the date on which the designation of the recovery zone took effect, CommentsClose CommentsPermalink





‘(B) the original use of which in the recovery zone commences with the taxpayer, and CommentsClose CommentsPermalink





‘(C) substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone. CommentsClose CommentsPermalink





‘(2) QUALIFIED BUSINESS- The term ‘qualified business’ means any trade or business except that-- CommentsClose CommentsPermalink





‘(A) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not residential rental property (as defined in section 168(e)(2)), and CommentsClose CommentsPermalink





‘(B) such term shall not include any trade or business consisting of the operation of any facility described in section 144(c)(6)(B). CommentsClose CommentsPermalink





‘(3) SPECIAL RULES FOR SUBSTANTIAL RENOVATIONS AND SALE-LEASEBACK- Rules similar to the rules of subsections (a)(2) and (b) of section 1397D shall apply for purposes of this subsection. CommentsClose CommentsPermalink





‘(d) Nonapplication of Certain Rules- Sections 146 (relating to volume cap) and 147(d) (relating to acquisition of existing property not permitted) shall not apply to any recovery zone facility bond.’. CommentsClose CommentsPermalink





(b) Clerical Amendment- The table of parts for subchapter Y of chapter 1 of such Code is amended by adding at the end the following new item: CommentsClose CommentsPermalink

‘Part III. Recovery Zone Bonds.’.

(c) Effective Date- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. CommentsClose CommentsPermalink

SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS.

(a) In General- Section 7871 is amended by adding at the end the following new subsection: CommentsClose CommentsPermalink





‘(f) Tribal Economic Development Bonds- CommentsClose CommentsPermalink





‘(1) ALLOCATION OF LIMITATION- CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall allocate the national tribal economic development bond limitation among the Indian tribal governments in such manner as the Secretary, in consultation with the Secretary of the Interior, determines appropriate. CommentsClose CommentsPermalink





‘(B) NATIONAL LIMITATION- There is a national tribal economic development bond limitation of $2,000,000,000. CommentsClose CommentsPermalink





‘(2) BONDS TREATED AS EXEMPT FROM TAX- In the case of a tribal economic development bond-- CommentsClose CommentsPermalink





‘(A) notwithstanding subsection (c), such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State, and CommentsClose CommentsPermalink





‘(B) section 146 shall not apply. CommentsClose CommentsPermalink





‘(3) TRIBAL ECONOMIC DEVELOPMENT BOND- CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of this section, the term ‘tribal economic development bond’ means any bond issued by an Indian tribal government-- CommentsClose CommentsPermalink





‘(i) the interest on which is not exempt from tax under section 103 by reason of subsection (c) (determined without regard to this subsection) but would be so exempt if issued by a State or local government, and CommentsClose CommentsPermalink





‘(ii) which is designated by the Indian tribal government as a tribal economic development bond for purposes of this subsection. CommentsClose CommentsPermalink





‘(B) EXCEPTIONS- The term tribal economic development bond shall not include any bond issued as part of an issue if any portion of the proceeds of such issue are used to finance-- CommentsClose CommentsPermalink





‘(i) any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or CommentsClose CommentsPermalink





‘(ii) any facility located outside the Indian reservation (as defined in section 168(j)(6)). CommentsClose CommentsPermalink





‘(C) LIMITATION ON AMOUNT OF BONDS DESIGNATED- The maximum aggregate face amount of bonds which may be designated by any Indian tribal government under subparagraph (A) shall not exceed the amount of national tribal economic development bond limitation allocated to such government under paragraph (1).’. CommentsClose CommentsPermalink





(b) Study- The Secretary of the Treasury, or the Secretary’s delegate, shall conduct a study of the effects of the amendment made by subsection (a). Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph, including the Secretary’s recommendations regarding such amendment. CommentsClose CommentsPermalink





(c) Effective Date- The amendment made by subsection (a) shall apply to obligations issued after the date of the enactment of this Act. CommentsClose CommentsPermalink

PART V--REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.

Section 3402 is amended by striking subsection (t). CommentsClose CommentsPermalink

Subtitle G--Energy Incentives CommentsClose CommentsPermalink

PART I--RENEWABLE ENERGY INCENTIVES

SEC. 1601. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES.

(a) In General- Subsection (d) of section 45 is amended-- CommentsClose CommentsPermalink





(1) by striking ‘2010’ in paragraph (1) and inserting ‘2013’, CommentsClose CommentsPermalink





(2) by striking ‘2011’ each place it appears in paragraphs (2), (3), (4), (6), (7), and (9) and inserting ‘2014’, and CommentsClose CommentsPermalink





(3) by striking ‘2012’ in paragraph (11)(B) and inserting ‘2014’. CommentsClose CommentsPermalink





(b) Technical Amendment- Paragraph (5) of section 45(d) is amended by striking ‘and before’ and all that follows and inserting ‘and before October 3, 2008.’. CommentsClose CommentsPermalink





(c) Effective Date- CommentsClose CommentsPermalink





(1) IN GENERAL- The amendments made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act. CommentsClose CommentsPermalink





(2) TECHNICAL AMENDMENT- The amendment made by subsection (b) shall take effect as if included in section 102 of the Energy Improvement and Extension Act of 2008. CommentsClose CommentsPermalink

SEC. 1602. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.

(a) In General- Subsection (a) of section 48 is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(5) ELECTION TO TREAT QUALIFIED FACILITIES AS ENERGY PROPERTY- CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of any qualified investment credit facility placed in service in 2009 or 2010-- CommentsClose CommentsPermalink





‘(i) such facility shall be treated as energy property for purposes of this section, and CommentsClose CommentsPermalink





‘(ii) the energy percentage with respect to such property shall be 30 percent. CommentsClose CommentsPermalink





‘(B) DENIAL OF PRODUCTION CREDIT- No credit shall be allowed under section 45 for any taxable year with respect to any qualified investment credit facility. CommentsClose CommentsPermalink





‘(C) QUALIFIED INVESTMENT CREDIT FACILITY- For purposes of this paragraph, the term ‘qualified investment credit facility’ means any facility described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if no credit has been allowed under section 45 with respect to such facility and the taxpayer makes an irrevocable election to have this paragraph apply to such facility.’. CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to facilities placed in service after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1603. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY PROPERTY.

(a) Repeal of Limitation on Credit for Qualified Small Wind Energy Property- Paragraph (4) of section 48(c) is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C). CommentsClose CommentsPermalink





(b) Repeal of Limitation on Property Financed by Subsidized Energy Financing- CommentsClose CommentsPermalink





(1) IN GENERAL- Subsection (a) of section 48, as amended by section 1602, is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4). CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS- CommentsClose CommentsPermalink





(A) Section 25C(e)(1) is amended by striking ‘(8), and (9)’ and inserting ‘and (8)’. CommentsClose CommentsPermalink





(B) Section 25D(e) is amended by striking paragraph (9). CommentsClose CommentsPermalink





(c) Effective Date- CommentsClose CommentsPermalink





(1) IN GENERAL- Except as provided in paragraph (2),the amendment made by this section shall apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS- The amendments made by subsection (b)(2) shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1604. COORDINATION WITH RENEWABLE ENERGY GRANTS.

Section 48 is amended by adding at the end the following new subsection: CommentsClose CommentsPermalink





‘(d) Coordination With Department of Energy Grants- In the case of any property with respect to which the Secretary of Energy makes a grant under section 1721 of the American Recovery and Reinvestment Tax Act of 2009-- CommentsClose CommentsPermalink





‘(1) DENIAL OF PRODUCTION AND INVESTMENT CREDITS- No credit shall be determined under this section or section 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year. CommentsClose CommentsPermalink





‘(2) RECAPTURE OF CREDITS FOR PROGRESS EXPENDITURES MADE BEFORE GRANT- If a credit was determined under this section with respect to such property for any taxable year ending before such grant is made-- CommentsClose CommentsPermalink





‘(A) the tax imposed under subtitle A on the taxpayer for the taxable year in which such grant is made shall be increased by so much of such credit as was allowed under section 38, CommentsClose CommentsPermalink





‘(B) the general business carryforwards under section 39 shall be adjusted so as to recapture the portion of such credit which was not so allowed, and CommentsClose CommentsPermalink





‘(C) the amount of such grant shall be determined without regard to any reduction in the basis of such property by reason of such credit. CommentsClose CommentsPermalink





‘(3) TREATMENT OF GRANTS- Any such grant shall-- CommentsClose CommentsPermalink





‘(A) not be includible in the gross income of the taxpayer, but CommentsClose CommentsPermalink





‘(B) shall be taken into account in determining the basis of the property to which such grant relates, except that the basis of such property shall be reduced under section 50(c) in the same manner as a credit allowed under subsection (a).’. CommentsClose CommentsPermalink

PART II--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND QUALIFIED ENERGY CONSERVATION BONDS

SEC. 1611. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE ENERGY BONDS.

Subsection (c) of section 54C is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(4) ADDITIONAL LIMITATION- The national new clean renewable energy bond limitation shall be increased by $1,600,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3).’. CommentsClose CommentsPermalink

SEC. 1612. INCREASED LIMITATION ON ISSUANCEAND EXPANSION OF QUALIFIED ENERGY CONSERVATION BONDS.

(a) Increased Limitation- Subsection (e) of section 54D is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(4) ADDITIONAL LIMITATION- The national qualified energy conservation bond limitation shall be increased by $2,400,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (1), (2), and (3).’. CommentsClose CommentsPermalink





(b) Loans and Grants To Implement Green Community Programs- CommentsClose CommentsPermalink





(1) IN GENERAL- Subparagraph (A) of section 54D(f)(1) is amended by inserting ‘(or loans or grants for capital expenditures to implement any green community program)’ after ‘Capital expenditures’. CommentsClose CommentsPermalink





(2) BONDS TO IMPLEMENT GREEN COMMUNITY PROGRAMS NOT TREATED AS PRIVATE ACTIVITY BONDS FOR PURPOSES OF LIMITATIONS ON QUALIFIED ENERGY CONSERVATION BONDS- Subsection (e) of section 54D, as amended by subsection (a), is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(5) BONDS TO IMPLEMENT GREEN COMMUNITY PROGRAMS NOT TREATED AS PRIVATE ACTIVITY BONDS- For purposes of paragraph (3) and subsection (f)(2), a bond shall not be treated as a private activity bond solely because proceeds of the issue of which such bond is a part are to be used for loans or grants for capital expenditures to implement any green community program.’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act. CommentsClose CommentsPermalink

PART III--ENERGY CONSERVATION INCENTIVES

SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

(a) In General- Section 25C is amended by striking subsections (a) and (b) and inserting the following new subsections: CommentsClose CommentsPermalink





‘(a) Allowance of Credit- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of-- CommentsClose CommentsPermalink





‘(1) the amount paid or incurred by the taxpayer during such taxable year for qualified energy efficiency improvements, and CommentsClose CommentsPermalink





‘(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. CommentsClose CommentsPermalink





‘(b) Limitation- The aggregate amount of the credits allowed under this section for taxable years beginning in 2009 and 2010 with respect to any taxpayer shall not exceed $1,500.’. CommentsClose CommentsPermalink





(b) Extension- Section 25C(g)(2) is amended by striking ‘December 31, 2009’ and inserting ‘December 31, 2010’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1622. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.

(a) Removal of Credit Limitation for Property Placed in Service- CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 25D(b) is amended to read as follows: CommentsClose CommentsPermalink





‘(1) MAXIMUM CREDIT FOR FUEL CELLS- In the case of any qualified fuel cell property expenditure, the credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property (as defined in section 48(c)(1)) to which such expenditure relates.’. CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Paragraph (4) of section 25D(e) is amended-- CommentsClose CommentsPermalink





(A) by striking all that precedes subparagraph (B) and inserting the following: CommentsClose CommentsPermalink





‘(4) FUEL CELL EXPENDITURE LIMITATIONS IN CASE OF JOINT OCCUPANCY- In the case of any dwelling unit with respect to which qualified fuel cell property expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals the following rules shall apply: CommentsClose CommentsPermalink





‘(A) MAXIMUM EXPENDITURES FOR FUEL CELLS- The maximum amount of such expenditures which may be taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) with respect to which such expenditures relate.’, and CommentsClose CommentsPermalink





(B) by striking subparagraph (C). CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

SEC. 1623. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

(a) In General- Section 30C(e) is amended by adding at the end the following new paragraph: CommentsClose CommentsPermalink





‘(6) SPECIAL RULE FOR PROPERTY PLACED IN SERVICE DURING 2009 AND 2010- In the case of property placed in service in taxable years beginning after December 31, 2008, and before January 1, 2011-- CommentsClose CommentsPermalink





‘(A) in the case of any such property which does not relate to hydrogen-- CommentsClose CommentsPermalink





‘(i) subsection (a) shall be applied by substituting ‘50 percent’ for ‘30 percent’, CommentsClose CommentsPermalink





‘(ii) subsection (b)(1) shall be applied by substituting ‘$50,000’ for ‘$30,000’, and CommentsClose CommentsPermalink





‘(iii) subsection (b)(2) shall be applied by substituting ‘$2,000’ for ‘$1,000’, and CommentsClose CommentsPermalink





‘(B) in the case of any such property which relates to hydrogen, subsection (b) shall be applied by substituting ‘$200,000’ for ‘$30,000’.’. CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

PART IV--ENERGY RESEARCH INCENTIVES

SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RESEARCH.

(a) In General- Section 41 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: CommentsClose CommentsPermalink





‘(h) Energy Research Credit- In the case of any taxable year beginning in 2009 or 2010-- CommentsClose CommentsPermalink





‘(1) IN GENERAL- The credit determined under subsection (a)(1) shall be increased by 20 percent of the qualified energy research expenses for the taxable year. CommentsClose CommentsPermalink





‘(2) QUALIFIED ENERGY RESEARCH EXPENSES- For purposes of this subsection, the term ‘qualified energy research expenses’ means so much of the taxpayer’s qualified research expenses as are related to the fields of fuel cells and battery technology, renewable energy, energy conservation technology, efficient transmission and distribution of electricity, and carbon capture and sequestration. CommentsClose CommentsPermalink





‘(3) COORDINATION WITH OTHER RESEARCH CREDITS- CommentsClose CommentsPermalink





‘(A) INCREMENTAL CREDIT- The amount of qualified energy research expenses taken into account under subsection (a)(1)(A) shall not exceed the base amount. CommentsClose CommentsPermalink





‘(B) ALTERNATIVE SIMPLIFIED CREDIT- For purposes of subsection (c)(5), the amount of qualified energy research expenses taken into account for the taxable year for which the credit is being determined shall not exceed-- CommentsClose CommentsPermalink





‘(i) in the case of subsection (c)(5)(A), 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined, and CommentsClose CommentsPermalink





‘(ii) in the case of subsection (c)(5)(B)(ii), zero. CommentsClose CommentsPermalink





‘(C) BASIC RESEARCH AND ENERGY RESEARCH CONSORTIUM PAYMENTS- Any amount taken into account under paragraph (1) shall not be taken into account under paragraph (2) or (3) of subsection (a).’. CommentsClose CommentsPermalink





(b) Conforming Amendment- Subparagraph (B) of section 41(i)(1)(B), as redesignated by subsection (a), is amended by inserting ‘(in the case of the increase in the credit determined under subsection (h), December 31, 2010)’ after ‘December 31, 2009’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008. CommentsClose CommentsPermalink

Subtitle H--Other Provisions CommentsClose CommentsPermalink

PART I--APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS

SEC. 1701. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS.

Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of-- CommentsClose CommentsPermalink





(1) any qualified clean renewable energy bond (as defined in section 54C of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, CommentsClose CommentsPermalink





(2) any qualified energy conservation bond (as defined in section 54D of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, CommentsClose CommentsPermalink





(3) any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act, CommentsClose CommentsPermalink





(4) any qualified school construction bond (as defined in section 54F of the Internal Revenue Code of 1986), and CommentsClose CommentsPermalink





(5) any recovery zone economic development bond (as defined in section 1400U-2 of the Internal Revenue Code of 1986). CommentsClose CommentsPermalink

PART II--GRANTS TO PROVIDE FINANCING FOR LOW-INCOME HOUSING

SEC. 1711. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009.

(a) In General- The Secretary of the Treasury shall make a grant to the housing credit agency of each State in an amount equal to such State’s low-income housing grant election amount. CommentsClose CommentsPermalink





(b) Low-Income Housing Grant Election Amount- For purposes of this section, the term ‘low-income housing grant election amount’ means, with respect to any State, such amount as the State may elect which does not exceed 85 percent of the product of-- CommentsClose CommentsPermalink





(1) the sum of-- CommentsClose CommentsPermalink





(A) 100 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (i) and (iii) of section 42(h)(3)(C) of the Internal Revenue Code of 1986, and CommentsClose CommentsPermalink





(B) 40 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (ii) and (iv) of such section, multiplied by CommentsClose CommentsPermalink





(2) 10. CommentsClose CommentsPermalink





(c) Subawards for Low-Income Buildings- CommentsClose CommentsPermalink





(1) IN GENERAL- A State housing credit agency receiving a grant under this section shall use such grant to make subawards to finance the construction or acquisition and rehabilitation of qualified low-income buildings. A subaward under this section may be made to finance a qualified low-income building with or without an allocation under section 42 of the Internal Revenue Code of 1986, except that a State housing credit agency may make subawards to finance qualified low-income buildings without an allocation only if it makes a determination that such use will increase the total funds available to the State to build and rehabilitate affordable housing. In complying with such determination requirement, a State housing credit agency shall establish a process in which applicants that are allocated credits are required to demonstrate good faith efforts to obtain investment commitments for such credits before the agency makes such subawards. CommentsClose CommentsPermalink





(2) SUBAWARDS SUBJECT TO SAME REQUIREMENTS AS LOW-INCOME HOUSING CREDIT ALLOCATIONS- Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be subject to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)(J) of such section), the State housing credit ceiling applicable to such agency. CommentsClose CommentsPermalink





(3) COMPLIANCE AND ASSET MANAGEMENT- The State housing credit agency shall perform asset management functions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any subaward under this section. The State housing credit agency may collect reasonable fees from a subaward recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph. CommentsClose CommentsPermalink





(4) RECAPTURE- The State housing credit agency shall impose conditions or restrictions, including a requirement providing for recapture, on any subaward under this section so as to assure that the building with respect to which such subaward is made remains a qualified low-income building during the compliance period. Any such recapture shall be payable to the Secretary of the Treasury for deposit in the general fund of the Treasury and may be enforced by means of liens or such other methods as the Secretary of the Treasury determines appropriate. CommentsClose CommentsPermalink





(d) Return of Unused Grant Funds- Any grant funds not used to make subawards under this section before January 1, 2011, shall be returned to the Secretary of the Treasury on such date. Any subawards returned to the State housing credit agency on or after such date shall be promptly returned to the Secretary of the Treasury. Any amounts returned to the Secretary of the Treasury under this subsection shall be deposited in the general fund of the Treasury. CommentsClose CommentsPermalink





(e) Definitions- Any term used in this section which is also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 42. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. CommentsClose CommentsPermalink





(f) Appropriations- There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. CommentsClose CommentsPermalink

PART III--GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS

SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

(a) In General- Upon application, the Secretary of Energy shall, within 60 days of the application and subject to the requirements of this section, provide a grant to each person who places in service specified energy property during 2009 or 2010 to reimburse such person for a portion of the expense of such facility as provided in subsection (b). CommentsClose CommentsPermalink





(b) Grant Amount- CommentsClose CommentsPermalink





(1) IN GENERAL- The amount of the grant under subsection (a) with respect to any specified energy property shall be the applicable percentage of the basis of such facility. CommentsClose CommentsPermalink





(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the term ‘applicable percentage’ means-- CommentsClose CommentsPermalink





(A) 30 percent in the case of any property described in paragraphs (1) through (4) of subsection (c), and CommentsClose CommentsPermalink





(B) 10 percent in the case of any other property. CommentsClose CommentsPermalink





(3) DOLLAR LIMITATIONS- In the case of property described in paragraph (2), (6), or (7) of subsection (c), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property. CommentsClose CommentsPermalink





(c) Specified Energy Property- For purposes of this section, the term ‘specified energy property’ means any of the following: CommentsClose CommentsPermalink





(1) QUALIFIED FACILITIES- Any facility described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of the Internal Revenue Code of 1986. CommentsClose CommentsPermalink





(2) QUALIFIED FUEL CELL PROPERTY- Any qualified fuel cell property (as defined in section 48(c)(1) of such Code). CommentsClose CommentsPermalink





(3) SOLAR PROPERTY- Any property described in clause (i) or (ii) of section 48(a)(3)(A) of such Code. CommentsClose CommentsPermalink





(4) QUALIFIED SMALL WIND ENERGY PROPERTY- Any qualified small wind energy property (as defined in section 48(c)(4) of such Code). CommentsClose CommentsPermalink





(5) GEOTHERMAL PROPERTY- Any property described in clause (iii) of section 48(a)(3)(A) of such Code. CommentsClose CommentsPermalink





(6) QUALIFIED MICROTURBINE PROPERTY- Any qualified microturbine property (as defined in section 48(c)(2) of such Code). CommentsClose CommentsPermalink





(7) COMBINED HEAT AND POWER SYSTEM PROPERTY- Any combined heat and power system property (as defined in section 48(c)(3) of such Code). CommentsClose CommentsPermalink





(8) GEOTHERMAL HEATPUMP PROPERTY- Any property described in clause (vii) of section 48(a)(3)(A) of such Code. CommentsClose CommentsPermalink





(d) Application of Certain Rules- In making grants under this section, the Secretary of Energy shall apply rules similar to the rules of section 50 of the Internal Revenue Code of 1986. In applying such rules, if the facility is disposed of, or otherwise ceases to be a qualified renewable energy facility, the Secretary of Energy shall provide for the recapture of the appropriate percentage of the grant amount in such manner as the Secretary of Energy determines appropriate. CommentsClose CommentsPermalink





(e) Exception for Certain Non-Taxpayers- The Secretary of Energy shall not make any grant under this section to any Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof) or any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code. CommentsClose CommentsPermalink





(f) Definitions- Terms used in this section which are also used in section 45 or 48 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 45 or 48. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate. CommentsClose CommentsPermalink





(g) Coordination Between Departments of Treasury and Energy- The Secretary of the Treasury shall provide the Secretary of Energy with such technical assistance as the Secretary of Energy may require in carrying out this section. The Secretary of Energy shall provide the Secretary of the Treasury with such information as the Secretary of the Treasury may require in carrying out the amendment made by section 1604. CommentsClose CommentsPermalink





(h) Appropriations- There is hereby appropriated to the Secretary of Energy such sums as may be necessary to carry out this section. CommentsClose CommentsPermalink





(i) Termination- The Secretary of Energy shall not make any grant to any person under this section unless the application of such person for such grant is received before October 1, 2011. CommentsClose CommentsPermalink

TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES CommentsClose CommentsPermalink

SEC. 2000. SHORT TITLE, ETC.

(a) Short Title- This title may be cited as the ‘Assistance for Unemployed Workers and Struggling Families Act’. CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this title is as follows: CommentsClose CommentsPermalink





Sec. 2000. Short title, etc. CommentsClose CommentsPermalink

Subtitle A--Unemployment Insurance

Sec. 2001. Extension of emergency unemployment compensation program. CommentsClose CommentsPermalink





Sec. 2002. Increase in unemployment compensation benefits. CommentsClose CommentsPermalink





Sec. 2003. Special transfers for unemployment compensation modernization. CommentsClose CommentsPermalink

Subtitle B--Assistance for Vulnerable Individuals

Sec. 2101. Emergency fund for TANF program. CommentsClose CommentsPermalink





Sec. 2102. One-time emergency SSI paymentpayment to SSI recipients. CommentsClose CommentsPermalink





Sec. 2103. Temporary resumption of prior child support law. CommentsClose CommentsPermalink

Subtitle A--Unemployment Insurance CommentsClose CommentsPermalink

SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

(a) In General- Section 4007 of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by section 4 of the Unemployment Compensation Extension Act of 2008 (Public Law 110-449; 122 Stat. 5015), is amended-- CommentsClose CommentsPermalink





(1) by striking ‘March 31, 2009’ each place it appears and inserting ‘December 31, 2009’; CommentsClose CommentsPermalink





(2) in the heading for subsection (b)(2), by striking ‘MARCH 31, 2009’ and inserting ‘DECEMBER 31, 2009’; and CommentsClose CommentsPermalink





(3) in subsection (b)(3), by striking ‘August 27, 2009’ and inserting ‘May 31, 2010’. CommentsClose CommentsPermalink





(b) Financing Provisions- Section 4004 of such Act is amended by adding at the end the following: CommentsClose CommentsPermalink





‘(e) Transfer of Funds- Notwithstanding any other provision of law, the Secretary of the Treasury shall transfer from the general fund of the Treasury (from funds not otherwise appropriated)-- CommentsClose CommentsPermalink





‘(1) to the extended unemployment compensation account (as established by section 905 of the Social Security Act) such sums as the Secretary of Labor estimates to be necessary to make payments to States under this title by reason of the amendments made by section 2001(a) of the Assistance for Unemployed Workers and Struggling Families Act; and CommentsClose CommentsPermalink





‘(2) to the employment security administration account (as established by section 901 of the Social Security Act) such sums as the Secretary of Labor estimates to be necessary for purposes of assisting States in meeting administrative costs by reason of the amendments referred to in paragraph (1). CommentsClose CommentsPermalink





There are appropriated from the general fund of the Treasury, without fiscal year limitation, the sums referred to in the preceding sentence and such sums shall not be required to be repaid.’. CommentsClose CommentsPermalink

SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.

(a) Federal-State Agreements- Any State which desires to do so may enter into and participate in an agreement under this section with the Secretary of Labor (hereinafter in this section referred to as the ‘Secretary’). Any State which is a party to an agreement under this section may, upon providing 30 days’ written notice to the Secretary, terminate such agreement. CommentsClose CommentsPermalink





(b) Provisions of Agreement- CommentsClose CommentsPermalink





(1) ADDITIONAL COMPENSATION- Any agreement under this section shall provide that the State agency of the State will make payments of regular compensation to individuals in amounts and to the extent that they would be determined if the State law of the State were applied, with respect to any week for which the individual is (disregarding this section) otherwise entitled under the State law to receive regular compensation, as if such State law had been modified in a manner such that the amount of regular compensation (including dependents’ allowances) payable for any week shall be equal to the amount determined under the State law (before the application of this paragraph) plus an additional $25. CommentsClose CommentsPermalink





(2) ALLOWABLE METHODS OF PAYMENT- Any additional compensation provided for in accordance with paragraph (1) shall be payable either-- CommentsClose CommentsPermalink





(A) as an amount which is paid at the same time and in the same manner as any regular compensation otherwise payable for the week involved; or CommentsClose CommentsPermalink





(B) at the option of the State, by payments which are made separately from, but on the same weekly basis as, any regular compensation otherwise payable. CommentsClose CommentsPermalink





(c) Nonreduction Rule- An agreement under this section shall not apply (or shall cease to apply) with respect to a State upon a determination by the Secretary that the method governing the computation of regular compensation under the State law of that State has been modified in a manner such that-- CommentsClose CommentsPermalink





(1) the average weekly benefit amount of regular compensation which will be payable during the period of the agreement (determined disregarding any additional amounts attributable to the modification described in subsection (b)(1)) will be less than CommentsClose CommentsPermalink





(2) the average weekly benefit amount of regular compensation which would otherwise have been payable during such period under the State law, as in effect on December 31, 2008. CommentsClose CommentsPermalink





(d) Payments to States- CommentsClose CommentsPermalink





(1) IN GENERAL- CommentsClose CommentsPermalink





(A) FULL REIMBURSEMENT- There shall be paid to each State which has entered into an agreement under this section an amount equal to 100 percent of-- CommentsClose CommentsPermalink





(i) the total amount of additional compensation (as described in subsection (b)(1)) paid to individuals by the State pursuant to such agreement; and CommentsClose CommentsPermalink





(ii) any additional administrative expenses incurred by the State by reason of such agreement (as determined by the Secretary). CommentsClose CommentsPermalink





(B) TERMS OF PAYMENTS- Sums payable to any State by reason of such State’s having an agreement under this section shall be payable, either in advance or by way of reimbursement (as determined by the Secretary), in such amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved. CommentsClose CommentsPermalink





(2) CERTIFICATIONS- The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section. CommentsClose CommentsPermalink





(3) APPROPRIATION- There are appropriated from the general fund of the Treasury, without fiscal year limitation, such sums as may be necessary for purposes of this subsection. CommentsClose CommentsPermalink





(e) Applicability- CommentsClose CommentsPermalink





(1) IN GENERAL- An agreement entered into under this section shall apply to weeks of unemployment-- CommentsClose CommentsPermalink





(A) beginning after the date on which such agreement is entered into; and CommentsClose CommentsPermalink





(B) ending before January 1, 2010. CommentsClose CommentsPermalink





(2) TRANSITION RULE FOR INDIVIDUALS REMAINING ENTITLED TO REGULAR COMPENSATION AS OF JANUARY 1, 2010- In the case of any individual who, as of the date specified in paragraph (1)(B), has not yet exhausted all rights to regular compensation under the State law of a State with respect to a benefit year that began before such date, additional compensation (as described in subsection (b)(1)) shall continue to be payable to such individual for any week beginning on or after such date for which the individual is otherwise eligible for regular compensation with respect to such benefit year. CommentsClose CommentsPermalink





(3) TERMINATION- Notwithstanding any other provision of this subsection, no additional compensation (as described in subsection (b)(1)) shall be payable for any week beginning after June 30, 2010. CommentsClose CommentsPermalink





(f) Fraud and Overpayments- The provisions of section 4005 of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 122 Stat. 2356) shall apply with respect to additional compensation (as described in subsection (b)(1)) to the same extent and in the same manner as in the case of emergency unemployment compensation. CommentsClose CommentsPermalink





(g) Application to Other Unemployment Benefits- CommentsClose CommentsPermalink





(1) IN GENERAL- Each agreement under this section shall include provisions to provide that the purposes of the preceding provisions of this section shall be applied with respect to unemployment benefits described in subsection (h)(3) to the same extent and in the same manner as if those benefits were regular compensation. CommentsClose CommentsPermalink





(2) ELIGIBILITY AND TERMINATION RULES- Additional compensation (as described in subsection (b)(1))-- CommentsClose CommentsPermalink





(A) shall not be payable, pursuant to this subsection, with respect to any unemployment benefits described in subsection (h)(3) for any week beginning on or after the date specified in subsection (e)(1)(B), except in the case of an individual who was eligible to receive additional compensation (as so described) in connection with any regular compensation or any unemployment benefits described in subsection (h)(3) for any period of unemployment ending before such date; and CommentsClose CommentsPermalink





(B) shall in no event be payable for any week beginning after the date specified in subsection (e)(3). CommentsClose CommentsPermalink





(h) Definitions- For purposes of this section-- CommentsClose CommentsPermalink





(1) the terms ‘compensation’, ‘regular compensation’, ‘benefit year’, ‘State’, ‘State agency’, ‘State law’, and ‘week’ have the respective meanings given such terms under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note); CommentsClose CommentsPermalink





(2) the term ‘emergency unemployment compensation’ means emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 122 Stat. 2353); and CommentsClose CommentsPermalink





(3) any reference to unemployment benefits described in this paragraph shall be considered to refer to-- CommentsClose CommentsPermalink





(A) extended compensation (as defined by section 205 of the Federal-State Extended Unemployment Compensation Act of 1970); and CommentsClose CommentsPermalink





(B) unemployment compensation (as defined by section 85(b) of the Internal Revenue Code of 1986) provided under any program administered by a State under an agreement with the Secretary. CommentsClose CommentsPermalink

SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION MODERNIZATION.

(a) In General- Section 903 of the Social Security Act (42 U.S.C. 1103) is amended by adding at the end the following: CommentsClose CommentsPermalink

‘Special Transfers in Fiscal Years 2009, 2010, and 2011 for Modernization

‘(f)(1)(A) In addition to any other amounts, the Secretary of Labor shall provide for the making of unemployment compensation modernization incentive payments (hereinafter ‘incentive payments’) to the accounts of the States in the Unemployment Trust Fund, by transfer from amounts reserved for that purpose in the Federal unemployment account, in accordance with succeeding provisions of this subsection. CommentsClose CommentsPermalink





‘(B) The maximum incentive payment allowable under this subsection with respect to any State shall, as determined by the Secretary of Labor, be equal to the amount obtained by multiplying $7,000,000,000 by the same ratio as would apply under subsection (a)(2)(B) for purposes of determining such State’s share of any excess amount (as described in subsection (a)(1)) that would have been subject to transfer to State accounts, as of October 1, 2008, under the provisions of subsection (a). CommentsClose CommentsPermalink





‘(C) Of the maximum incentive payment determined under subparagraph (B) with respect to a State-- CommentsClose CommentsPermalink





‘(i) one-third shall be transferred to the account of such State upon a certification under paragraph (4)(B) that the State law of such State meets the requirements of paragraph (2); and CommentsClose CommentsPermalink





‘(ii) the remainder shall be transferred to the account of such State upon a certification under paragraph (4)(B) that the State law of such State meets the requirements of paragraph (3). CommentsClose CommentsPermalink





‘(2) The State law of a State meets the requirements of this paragraph if such State law-- CommentsClose CommentsPermalink





‘(A) uses a base period that includes the most recently completed calendar quarter before the start of the benefit year for purposes of determining eligibility for unemployment compensation; or CommentsClose CommentsPermalink





‘(B) provides that, in the case of an individual who would not otherwise be eligible for unemployment compensation under the State law because of the use of a base period that does not include the most recently completed calendar quarter before the start of the benefit year, eligibility shall be determined using a base period that includes such calendar quarter. CommentsClose CommentsPermalink





‘(3) The State law of a State meets the requirements of this paragraph if such State law includes provisions to carry out at least 2 of the following subparagraphs: CommentsClose CommentsPermalink





‘(A) An individual shall not be denied regular unemployment compensation under any State law provisions relating to availability for work, active search for work, or refusal to accept work, solely because such individual is seeking only part-time (and not full-time) workwork (as defined by the Secretary of Labor), except that the State law provisions carrying out this subparagraph may exclude an individual if a majority of the weeks of work in such individual’s base period do not include part-time work (as so defined). CommentsClose CommentsPermalink





‘(B) An individual shall not be disqualified from regular unemployment compensation for separating from employment if that separation is for any compelling family reason. For purposes of this subparagraph, the term ‘compelling family reason’ means the following: CommentsClose CommentsPermalink





‘(i) Domestic violence, verified by such reasonable and confidential documentation as the State law may require, which causes the individual reasonably to believe that such individual’s continued employment would jeopardize the safety of the individual or of any member of the individual’s immediate family (as defined by the Secretary of Labor). CommentsClose CommentsPermalink





‘(ii) The illness or disability of a member of the individual’s immediate family (as defined by thethose terms are defined by the Secretary of Labor). CommentsClose CommentsPermalink





‘(iii) The need for the individual to accompany such individual’s spouse-- CommentsClose CommentsPermalink





‘(I) to a place from which it is impractical for such individual to commute; and CommentsClose CommentsPermalink





‘(II) due to a change in location of the spouse’s employment. CommentsClose CommentsPermalink





‘(C) Weekly unemployment compensation is payable under this subparagraph to any individual who is unemployed (as determined under the State unemployment compensation law), has exhausted all rights to regular unemployment compensation under the State law, and is enrolled and making satisfactory progress in a State-approved training program or in a job training program authorized under the Workforce Investment Act of 1998. Such programs shall prepare individuals who have been separated from a declining occupation, or who have been involuntarily and indefinitely separated from employment as a result of a permanent reduction of operations at the individual’s place of employment, for entry into a high-demand occupation. The amount of unemployment compensation payable under this subparagraph to an individual for a week of unemployment shall be equal to the individual’s average weekly benefit amount (including dependents’ allowances) for the most recent benefit year, and the total amount of unemployment compensation payable under this subparagraph to any individual shall be equal to at least 26 times the individual’s average weekly benefit amount (including dependents’ allowances) for the most recent benefit year. CommentsClose CommentsPermalink





‘(D) Dependents’ allowances are provided, in the case of any individual who is entitled to receive regular unemployment compensation and who has any dependents (as defined by State law), in an amount equal to at least $15 per dependent per week, subject to any aggregate limitation on such allowances which the State law may establish (but which aggregate limitation on the total allowance for dependents paid to an individual may not be less than $50 for each week of unemployment or 50 percent of the individual’s weekly benefit amount for the benefit year, whichever is less). CommentsClose CommentsPermalink





‘(4)(A) Any State seeking an incentive payment under this subsection shall submit an application therefor at such time, in such manner, and complete with such information as the Secretary of Labor may within 60 days after the date of the enactment of this subsection prescribe (whether by regulation or otherwise), including information relating to compliance with the requirements of paragraph (2) or (3), as well as how the State intends to use the incentive payment to improve or strengthen the State’s unemployment compensation program. The Secretary of Labor shall, within 30 days after receiving a complete application, notify the State agency of the State of the Secretary’s findings with respect to the requirements of paragraph (2) or (3) (or both). CommentsClose CommentsPermalink





‘(B)(i) If the Secretary of Labor finds that the State law provisions (disregarding any State law provisions which are not then currently in effect as permanent law or which are subject to discontinuation) meet the requirements of paragraph (2) or (3), as the case may be, the Secretary of Labor shall thereupon make a certification to that effect to the Secretary of the Treasury, together with a certification as to the amount of the incentive payment to be transferred to the State account pursuant to that finding. The Secretary of the Treasury shall make the appropriate transfer within 7 days after receiving such certification. CommentsClose CommentsPermalink





‘(ii) For purposes of clause (i), State law provisions which are to take effect within 12 months after the date of their certification under this subparagraph shall be considered to be in effect as of the date of such certification. CommentsClose CommentsPermalink





‘(C)(i) No certification of compliance with the requirements of paragraph (2) or (3) may be made with respect to any State whose State law is not otherwise eligible for certification under section 303 or approvable under section 3304 of the Federal Unemployment Tax Act. CommentsClose CommentsPermalink





‘(ii) No certification of compliance with the requirements of paragraph (3) may be made with respect to any State whose State law is not in compliance with the requirements of paragraph (2). CommentsClose CommentsPermalink





‘(iii) No application under subparagraph (A) may be considered if submitted before the date of the enactment of this subsection or after the latest date necessary (as specified by the Secretary of Labor) to ensure that all incentive payments under this subsection are made before October 1, 2011. CommentsClose CommentsPermalink





‘(5)(A) Except as provided in subparagraph (B), any amount transferred to the account of a State under this subsection may be used by such State only in the payment of cash benefits to individuals with respect to their unemployment (including for dependents’ allowances and for unemployment compensation under paragraph (3)(C)), exclusive of expenses of administration. CommentsClose CommentsPermalink





‘(B) A State may, subject to the same conditions as set forth in subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the reference to ‘subsections (a) and (b)’ in subparagraph (D) thereof to include this subsection), use any amount transferred to the account of such State under this subsection for the administration of its unemployment compensation law and public employment offices. CommentsClose CommentsPermalink





‘(6) Out of any money in the Federal unemployment account not otherwise appropriated, the Secretary of the Treasury shall reserve $7,000,000,000 for incentive payments under this subsection. Any amount so reserved shall not be taken into account for purposes of any determination under section 902, 910, or 1203 of the amount in the Federal unemployment account as of any given time. Any amount so reserved for which the Secretary of the Treasury has not received a certification under paragraph (4)(B) by the deadline described in paragraph (4)(C)(iii) shall, upon the close of fiscal year 2011, become unrestricted as to use as part of the Federal unemployment account. CommentsClose CommentsPermalink





‘(7) For purposes of this subsection, the terms ‘benefit year’, ‘base period’, and ‘week’ have the respective meanings given such terms under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note). CommentsClose CommentsPermalink

‘Special Transfer in Fiscal Year 2009 for Administration

‘(g)(1) In addition to any other amounts, the Secretary of the Treasury shall transfer from the employment security administration account to the account of each State in the Unemployment Trust Fund, within 30 days after the date of the enactment of this subsection, the amount determined with respect to such State under paragraph (2). CommentsClose CommentsPermalink





‘(2) The amount to be transferred under this subsection to a State account shall (as determined by the Secretary of Labor and certified by such Secretary to the Secretary of the Treasury) be equal to the amount obtained by multiplying $500,000,000 by the same ratio as determined under subsection (f)(1)(B) with respect to such State. CommentsClose CommentsPermalink





‘(3) Any amount transferred to the account of a State as a result of the enactment of this subsection may be used by the State agency of such State only in the payment of expenses incurred by it for-- CommentsClose CommentsPermalink





‘(A) the administration of the provisions of its State law carrying out the purposes of subsection (f)(2) or any subparagraph of subsection (f)(3); CommentsClose CommentsPermalink





‘(B) improved outreach to individuals who might be eligible for regular unemployment compensation by virtue of any provisions of the State law which are described in subparagraph (A); CommentsClose CommentsPermalink





‘(C) the improvement of unemployment benefit and unemployment tax operations, including responding to increased demand for unemployment compensation; and CommentsClose CommentsPermalink





‘(D) staff-assisted reemployment services for unemployment compensation claimants.’. CommentsClose CommentsPermalink





(b) Regulations- The Secretary of Labor may prescribe any regulations, operating instructions, or other guidance necessary to carry out the amendment made by subsection (a). CommentsClose CommentsPermalink

Subtitle B--Assistance for Vulnerable Individuals CommentsClose CommentsPermalink

SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

(a) In General- Section 403 of the Social Security Act (42 U.S.C. 603) is amended by adding at the end the following: CommentsClose CommentsPermalink





‘(c) Emergency Fund- CommentsClose CommentsPermalink





‘(1) ESTABLISHMENT- There is established in the Treasury of the United States a fund which shall be known as the ‘Emergency Contingency Fund for State Temporary Assistance for Needy Families Programs’ (in this subsection referred to as the ‘Emergency Fund’). CommentsClose CommentsPermalink





‘(2) DEPOSITS INTO FUND- Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as are necessary for payment to the Emergency Fund. CommentsClose CommentsPermalink





‘(3) GRANTS- CommentsClose CommentsPermalink





‘(A) GRANT RELATED TO CASELOAD INCREASES- CommentsClose CommentsPermalink





‘(i) IN GENERAL- For each calendar quarter in fiscal year 2009 or 2010, the Secretary shall make a grant from the Emergency Fund to each State that-- CommentsClose CommentsPermalink





‘(I) requests a grant under this subparagraph for the quarter; and CommentsClose CommentsPermalink





‘(II) meets the requirement of clause (ii) for the quarter. CommentsClose CommentsPermalink





‘(ii) CASELOAD INCREASE REQUIREMENT- A State meets the requirement of this clause for a quarter if the average monthly assistance caseload of the State for the quarter exceeds the average monthly assistance caseload of the State for the corresponding quarter in the emergency fund base year of the State. CommentsClose CommentsPermalink





‘(iii) AMOUNT OF GRANT- Subject to paragraph (5), the amount of the grant to be made to a State under this subparagraph for a quarter shall be 80 percent of the amount (if any) by which the total expenditures of the State for basic assistance (as defined by the Secretary) in the quarter, whether under the State program funded under this part or as qualified State expenditures, exceeds the total expenditures of the State for such assistance for the corresponding quarter in the emergency fund base year of the State. CommentsClose CommentsPermalink





‘(B) GRANT RELATED TO INCREASED EXPENDITURES FOR NON-RECURRENT SHORT-TERM BENEFITS- CommentsClose CommentsPermalink





‘(i) IN GENERAL- For each calendar quarter in fiscal year 2009 or 2010, the Secretary shall make a grant from the Emergency Fund to each State that-- CommentsClose CommentsPermalink





‘(I) requests a grant under this subparagraph for the quarter; and CommentsClose CommentsPermalink





‘(II) meets the requirement of clause (ii) for the quarter. CommentsClose CommentsPermalink





‘(ii) NON-RECURRENT SHORT-TERM EXPENDITURE REQUIREMENT- A State meets the requirement of this clause for a quarter if the total expenditures of the State for non-recurrent short-term benefits in the quarter, whether under the State program funded under this part or as qualified State expenditures, exceeds the total such expenditures of the State for non-recurrent short-term benefits in the corresponding quarter in the emergency fund base year of the State. CommentsClose CommentsPermalink





‘(iii) AMOUNT OF GRANT- Subject to paragraph (5), the amount of the grant to be made to a State under this subparagraph for a quarter shall be an amount equal to 80 percent of the excess described in clause (ii). CommentsClose CommentsPermalink





‘(C) GRANT RELATED TO INCREASED EXPENDITURES FOR SUBSIDIZED EMPLOYMENT- CommentsClose CommentsPermalink





‘(i) IN GENERAL- For each calendar quarter in fiscal year 2009 or 2010, the Secretary shall make a grant from the Emergency Fund to each State that-- CommentsClose CommentsPermalink





‘(I) requests a grant under this subparagraph for the quarter; and CommentsClose CommentsPermalink





‘(II) meets the requirement of clause (ii) for the quarter. CommentsClose CommentsPermalink





‘(ii) SUBSIDIZED EMPLOYMENT EXPENDITURE REQUIREMENT- A State meets the requirement of this clause for a quarter if the total expenditures of the State for subsidized employment in the quarter, whether under the State program funded under this part or as qualified State expenditures, exceeds the total of such expenditures of the State in the corresponding quarter in the emergency fund base year of the State. CommentsClose CommentsPermalink





‘(iii) AMOUNT OF GRANT- Subject to paragraph (5), the amount of the grant to be made to a State under this subparagraph for a quarter shall be an amount equal to 80 percent of the excess described in clause (ii). CommentsClose CommentsPermalink





‘(4) AUTHORITY TO MAKE NECESSARY ADJUSTMENTS TO DATA AND COLLECT NEEDED DATA- In determining the size of the caseload of a State and the expenditures of a State for basic assistance, non-recurrent short-term benefits, and subsidized employment, during any period for which the State requests funds under this subsection, and during the emergency fund base year of the State, the Secretary may make appropriate adjustments to the data to ensure that the data reflect expenditures under the State program funded under this part and qualified State expenditures. The Secretary may develop a mechanism for collecting expenditure data, including procedures which allow States to make reasonable estimates, and may set deadlines for making revisions to the data. CommentsClose CommentsPermalink





‘(5) LIMITATION- The total amount payable to a single State under subsection (b) and this subsection for a fiscal year shall not exceed 25 percent of the State family assistance grant. CommentsClose CommentsPermalink





‘(6) LIMITATIONS ON USE OF FUNDS- A State to which an amount is paid under this subsection may use the amount only as authorized by section 404. CommentsClose CommentsPermalink





‘(7) TIMING OF IMPLEMENTATION- The Secretary shall implement this subsection as quickly as reasonably possible, pursuant to appropriate guidance to States. CommentsClose CommentsPermalink





‘(8) DEFINITIONS- In this subsection: CommentsClose CommentsPermalink





‘(A) AVERAGE MONTHLY ASSISTANCE CASELOAD- The term ‘average monthly assistance caseload’ means, with respect to a State and a quarter, the number of families receiving assistance during the quarter under the State program funded under this part or as qualified State expenditures, subject to adjustment under paragraph (4). CommentsClose CommentsPermalink





‘(B) EMERGENCY FUND BASE YEAR- CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term ‘emergency fund base year’ means, with respect to a State and a category described in clause (ii), whichever of fiscal year 2007 or 2008 is the fiscal year in which the amount described by the category with respect to the State is the lesser. CommentsClose CommentsPermalink





‘(ii) CATEGORIES DESCRIBED- The categories described in this clause are the following: CommentsClose CommentsPermalink





‘(I) The average monthly assistance caseload of the State. CommentsClose CommentsPermalink





‘(II) The total expenditures of the State for non-recurrent short-term benefits, whether under the State program funded under this part or as qualified State expenditures. CommentsClose CommentsPermalink





‘(III) The total expenditures of the State for subsidized employment, whether under the State program funded under this part or as qualified State expenditures. CommentsClose CommentsPermalink





‘(C) QUALIFIED STATE EXPENDITURES- The term ‘qualified State expenditures’ has the meaning given the term in section 409(a)(7).’. CommentsClose CommentsPermalink





(b) Temporary Modification of Caseload Reduction Credit- Section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘(or if the immediately preceding fiscal year is fiscal year 2009 or 2010, then, at State option, during the emergency fund base year of the State with respect to the average monthly assistance caseload of the State (within the meaning of section 403(c)(8)(B)))’ before ‘under the State’. CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act. CommentsClose CommentsPermalink

SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI PAYMENTRECIPIENTS.

(a) Payment Authority- CommentsClose CommentsPermalink





(1) IN GENERAL- At the earliest practicable date in calendar year 2009 but not later than 9120 days after the date of the enactment of this section, the Commissioner of Social Security shall make a one-time payment, subject to subsection (b)(2) of this section, to each individual who is determined by the to each individual who is determined by the Commissioner in calendar year 2009 to be an individual who-- CommentsClose CommentsPermalink





(A) is entitled to a cash benefit under the supplemental security income program under title XVI of the Social Security Act (other than pursuant to section 1611(e)(1)(B) of such Act) for at least 1 day in the calendar month in which the first payment under this section is to be made; or CommentsClose CommentsPermalink





(B)(i) was entitled to such a cash benefit (other than pursuant to section 1611(e)(1)(B) of such Act) for at least 1 day in the 2-month period preceding that calendar month; and CommentsClose CommentsPermalink





(ii) whose entitlement to that benefit ceased in that 2-month period solely because the income of the individual (and the income of the spouse, if any, of the individual) exceeded the applicable income limit described in paragraph (1)(A) or (2)(A) of section 1611(a) of such Act. CommentsClose CommentsPermalink





(2) AMOUNT OF PAYMENT- Subject to subsection (b)(1) of this section, the amount of the payment shall be-- CommentsClose CommentsPermalink





(A) in the case of an individual eligible for a payment under this section who does not have a spouse eligible for such a payment, an amount equal to the average of the cash benefits payable in the aggregate under section 1611 or 1619(a) of the Social Security Act to eligible individuals who do not have an eligible spouse, for the most recent month for which data on payment of the benefits are available, as determined by the Commissioner of Social Security; or CommentsClose CommentsPermalink





(B) in the case of an individual eligible for a payment under this section who has a spouse eligible for such a payment, an amount equal to the average of the cash benefits payable in the aggregate under section 1611 or 1619(a) of the Social Security Act to eligible individuals who have an eligible spouse, for the most recent month for which data on payment of the benefits are available, as so determined. CommentsClose CommentsPermalink





(b) Administrative Provisions- CommentsClose CommentsPermalink





(1) AUTHORITY TO WITHHOLD PAYMENT TO RECOVER PRIOR OVERPAYMENT OF SSI BENEFITS- The Commissioner of Social Security may withhold part or all of a payment otherwise required to be made under subsection (a) of this section to an individual, in order to recover a prior overpayment of benefits to the individual under the supplemental security income program under title XVI of the Social Security Act, subject to the limitations of section 1631(b) of such Act. CommentsClose CommentsPermalink





(2) AUTHORITY TO MAKE PAYMENTS OVER THE COURSE OF 2 MONTHS- The Commissioner of Social Security may provide for payments under this section to be made over the course of 2 calendar months as may be necessary for the effective and efficient administration of this section.(3)PAYMENT TO BE DISREGARDED IN DETERMINING UNDERPAYMENTS UNDER THE SSI PROGRAM- A payment under subsection (a) shall be disregarded in determining whether there has been an underpayment of benefits under the supplemental security income program under title XVI of the Social Security Act. CommentsClose CommentsPermalink





(43) NONASSIGNMENT- The provisions of section 2071631(d) of the Social Security Act shall apply with respect to payments under this section to the same extent as they apply in the case of title IXVI of such Act. CommentsClose CommentsPermalink





(c) Payments To Be Disregarded for Purposes of All Federal and Federally Assisted Programs- A payment under subsection (a) shall not be regarded as income to the recipient, and shall not be regarded as a resource of the recipient for the month of receipt and the following 6 months, for purposes of determining the eligibility of any individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. CommentsClose CommentsPermalink





(d) Appropriation- Out of any sums in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as may be necessary to carry out this section. CommentsClose CommentsPermalink

SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.

During the period that begins with October 1, 2008, and ends with September 30, 2010, section 455(a)(1) of the Social Security Act shall be applied and administered as if the phrase ‘from amounts paid to the State under section 458 or’ did not appear in such section. CommentsClose CommentsPermalink

TITLE III--HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED CommentsClose CommentsPermalink

SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF TITLE.

(a) Short Title of Title- This title may be cited as the ‘Health Insurance Assistance for the Unemployed Act of 2009’. CommentsClose CommentsPermalink





(b) Table of Contents of Title- The table of contents of this title is as follows: CommentsClose CommentsPermalink





Sec. 3001. Short title and table of contents of title. CommentsClose CommentsPermalink





Sec. 3002. Premium assistance for COBRA benefits and extension of COBRA benefits for older or long-term employees. CommentsClose CommentsPermalink





Sec. 3003. Temporary optional Medicaid coverage for the unemployed. CommentsClose CommentsPermalink

SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS AND EXTENSION OF COBRA BENEFITS FOR OLDER OR LONG-TERM EMPLOYEES.

(a) Premium Assistance for COBRA Continuation Coverage for Individuals and Their Families- CommentsClose CommentsPermalink





(1) PROVISION OF PREMIUM ASSISTANCE- CommentsClose CommentsPermalink





(A) REDUCTION OF PREMIUMS PAYABLE- In the case of any premium for a period of coverage beginning on or after the date of the enactment of this Act for COBRA continuation coverage with respect to any assistance eligible individual, such individual shall be treated for purposes of any COBRA continuation provision as having paid the amount of such premium if such individual pays 35 percent of the amount of such premium (as determined without regard to this subsection). CommentsClose CommentsPermalink





(B) PREMIUM REIMBURSEMENT- For provisions providing the balance of such premium, see section 6431 of the Internal Revenue Code of 1986, as added by paragraph (12). CommentsClose CommentsPermalink





(2) LIMITATION OF PERIOD OF PREMIUM ASSISTANCE- CommentsClose CommentsPermalink





(A) IN GENERAL- Paragraph (1)(A) shall not apply with respect to any assistance eligible individual for months of coverage beginning on or after the earlier of-- CommentsClose CommentsPermalink





(i) the first date that such individual is eligible for coverage under any other group health plan (other than coverage consisting of only dental, vision, counseling, or referral services (or a combination thereof), coverage under a health reimbursement arrangement or a health flexible spending arrangement, or coverage of treatment that is furnished in an on-site medical facility maintained by the employer and that consists primarily of first-aid services, prevention and wellness care, or similar care (or a combination thereof)) or is eligible for benefits under title XVIII of the Social Security Act., or CommentsClose CommentsPermalink





(ii) the earliest of-- CommentsClose CommentsPermalink





(I) the date which is 12 months after the first day of the first month that paragraph (1)(A) applies with respect to such individual, CommentsClose CommentsPermalink





(II) the date following the expiration of the maximum period of continuation coverage required under the applicable COBRA continuation coverage provision, or CommentsClose CommentsPermalink





(III) the date following the expiration of the period of continuation coverage allowed under paragraph (4)(B)(ii). CommentsClose CommentsPermalink





(B) TIMING OF ELIGIBILITY FOR ADDITIONAL COVERAGE- For purposes of subparagraph (A)(i), an individual shall not be treated as eligible for coverage under a group health plan before the first date on which such individual could be covered under such plan. CommentsClose CommentsPermalink





(C) NOTIFICATION REQUIREMENT- An assistance eligible individual shall notify in writing the group health plan with respect to which paragraph (1)(A) applies if such paragraph ceases to apply by reason of subparagraph (A)(i). Such notice shall be provided to the group health plan in such time and manner as may be specified by the Secretary of Labor. CommentsClose CommentsPermalink





(3) ASSISTANCE ELIGIBLE INDIVIDUAL- For purposes of this section, the term ‘assistance eligible individual’ means any qualified beneficiary if-- CommentsClose CommentsPermalink





(A) at any time during the period that begins with September 1, 2008, and ends with December 31, 2009, such qualified beneficiary is eligible for COBRA continuation coverage, CommentsClose CommentsPermalink





(B) such qualified beneficiary elects such coverage, and CommentsClose CommentsPermalink





(C) the qualifying event with respect to the COBRA continuation coverage consists of the involuntary termination of the covered employee’s employment and occurred during such period. CommentsClose CommentsPermalink





(4) EXTENSION OF ELECTION PERIOD AND EFFECT ON COVERAGE- CommentsClose CommentsPermalink





(A) IN GENERAL- Notwithstanding section 605(a) of the Employee Retirement Income Security Act of 1974, section 4980B(f)(5)(A) of the Internal Revenue Code of 1986, section 2205(a) of the Public Health Service Act, andsection 8905a(c)(2) of title 5, United States Code, in the case of an individual who is a qualified beneficiary described in paragraph (3)(A) as of the date of the enactment of this Act and has not made the election referred to in paragraph (3)(B) as of such date, such individual may elect the COBRA continuation coverage under the COBRA continuation coverage provisions containing such sections during the 60-day period commencing with the date on which the notification required under paragraph (7)(C) is provided to such individual. CommentsClose CommentsPermalink





(B) COMMENCEMENT OF COVERAGE; NO REACH-BACK- Any COBRA continuation coverage elected by a qualified beneficiary during an extended election period under subparagraph (A)-- CommentsClose CommentsPermalink





(i) shall commence on the date of the enactment of this Act, and CommentsClose CommentsPermalink





(ii) shall not extend beyond the period of COBRA continuation coverage that would have been required under the applicable COBRA continuation coverage provision if the coverage had been elected as required under such provision. CommentsClose CommentsPermalink





(C) PREEXISTING CONDITIONS- With respect to a qualified beneficiary who elects COBRA continuation coverage pursuant to subparagraph (A), the period-- CommentsClose CommentsPermalink





(i) beginning on the date of the qualifying event, and CommentsClose CommentsPermalink





(ii) ending with the day before the date of the enactment of this Act, CommentsClose CommentsPermalink





shall be disregarded for purposes of determining the 63-day periods referred to in section 701)(2) of the Employee Retirement Income Security Act of 1974, section 9801(c)(2) of the Internal Revenue Code of 1986, and section 2701(c)(2) of the Public Health Service Act. CommentsClose CommentsPermalink





(5) EXPEDITED REVIEW OF DENIALS OF PREMIUM ASSISTANCE- In any case in which an individual requests treatment as an assistance eligible individual and is denied such treatment by the group health plan by reason of such individual’s ineligibility for COBRA continuation coverage, the Secretary of Labor (or the Secretary of Health and Human services in connection with COBRA continuation coverage which is provided other than pursuant to part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974), in consultation with the Secretary of the Treasury, shall provide for expedited review of such denial. An individual shall be entitled to such review upon application to such Secretary in such form and manner as shall be provided by such Secretary. Such Secretary shall make a determination regarding such individual’s eligibility within 10 business days after receipt of such individual’s application for review under this paragraph. CommentsClose CommentsPermalink





(6) DISREGARD OF SUBSIDIES FOR PURPOSES OF FEDERAL AND STATE PROGRAMS- Notwithstanding any other provision of law, any premium reduction with respect to an assistance eligible individual under this subsection shall not be considered income or resources in determining eligibility for, or the amount of assistance or benefits provided under, any other public benefit provided under Federal law or the law of any State or political subdivision thereof. CommentsClose CommentsPermalink





(7) NOTICES TO INDIVIDUALS- CommentsClose CommentsPermalink





(A) GENERAL NOTICE- CommentsClose CommentsPermalink





(i) IN GENERAL- In the case of notices provided under section 606(4) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of the Internal Revenue Code of 1986, section 2206(4) of the Public Health Service Act (42 U.S.C. 300bb-6(4)), or section 8905a(f)(2)(A) of title 5, United States Code, with respect to individuals who, during the period described in paragraph (3)(A), become entitled to elect COBRA continuation coverage, such notices shall include an additional notification to the recipient of the availability of premium reduction with respect to such coverage under this subsection. CommentsClose CommentsPermalink





(ii) ALTERNATIVE NOTICE- In the case of COBRA continuation coverage to which the notice provision under such sections does not apply, the Secretary of Labor, in consultation with the Secretary of the Treasury and the Secretary of Health and Human Services, shall, in coordination with administrators of the group health plans (or other entities) that provide or administer the COBRA continuation coverage involved, provide rules requiring the provision of such notice. CommentsClose CommentsPermalink





(iii) FORM- The requirement of the additional notification under this subparagraph may be met by amendment of existing notice forms or by inclusion of a separate document with the notice otherwise required. CommentsClose CommentsPermalink





(B) SPECIFIC REQUIREMENTS- Each additional notification under subparagraph (A) shall include-- CommentsClose CommentsPermalink





(i) the forms necessary for establishing eligibility for premium reduction under this subsection, CommentsClose CommentsPermalink





(ii) the name, address, and telephone number necessary to contact the plan administrator and any other person maintaining relevant information in connection with such premium reduction, CommentsClose CommentsPermalink





(iii) a description of the extended election period provided for in paragraph (4)(A), CommentsClose CommentsPermalink





(iv) a description of the obligation of the qualified beneficiary under paragraph (2)(C) to notify the plan providing continuation coverage of eligibility for subsequent coverage under another group health plan or eligibility for benefits under title XVIII of the Social Security Act and the penalty provided for failure to so notify the plan, and CommentsClose CommentsPermalink





(v) a description, displayed in a prominent manner, of the qualified beneficiary’s right to a reduced premium and any conditions on entitlement to the reduced premium. CommentsClose CommentsPermalink





(C) NOTICE RELATING TO RETROACTIVE COVERAGE- In the case of an individual described in paragraph (3)(A) who has elected COBRA continuation coverage as of the date of enactment of this Act or an individual described in paragraph (4)(A), the administrator of the group health plan (or other entity) involved shall provide (within 60 days after the date of enactment of this Act) for the additional notification required to be provided under subparagraph (A). CommentsClose CommentsPermalink





(D) MODEL NOTICES- Not later than 30 days after the date of enactment of this Act, the Secretary of the Labor, in consultation with the Secretary of the Treasury and the Secretary of Health and Human Services, shall prescribe models for the additional notification required under this paragraph. CommentsClose CommentsPermalink





(8) SAFEGUARDS- The Secretary of the Treasury shall provide such rules, procedures, regulations, and other guidance as may be necessary and appropriate to prevent fraud and abuse under this subsection. CommentsClose CommentsPermalink





(9) OUTREACH- The Secretary of Labor, in consultation with the Secretary of the Treasury and the Secretary of Health and Human Services, shall provide outreach consisting of public education and enrollment assistance relating to premium reduction provided under this subsection. Such outreach shall target employers, group health plan administrators, public assistance programs, States, insurers, and other entities as determined appropriate by such Secretaries. Such outreach shall include an initial focus on those individuals electing continuation coverage who are referred to in paragraph (7)(C). Information on such premium reduction, including enrollment, shall also be made available on website of the Departments of Labor, Treasury, and Health and Human Services. CommentsClose CommentsPermalink





(10) DEFINITIONS- For purposes of this subsection-- CommentsClose CommentsPermalink





(A) ADMINISTRATOR- The term ‘administrator’ has the meaning given such term in section 3(16) of the Employee Retirement Income Security Act of 1974. CommentsClose CommentsPermalink





(B) COBRA CONTINUATION COVERAGE- The term ‘COBRA continuation coverage’ means continuation coverage provided pursuant to part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (other than under section 609), title XXII of the Public Health Service Act, section 4980B of the Internal Revenue Code of 1986 (other than subsection (f)(1) of such section insofar as it relates to pediatric vaccines), orsection 8905a of title 5, United States Code, or under a State program that provides continuation coverage comparable to such continuation coverage. Such term does not include coverage under a health flexible spending arrangement. CommentsClose CommentsPermalink





(C) COBRA CONTINUATION PROVISION- The term ‘COBRA continuation provision’ means the provisions of law described in subparagraph (B). CommentsClose CommentsPermalink





(D) COVERED EMPLOYEE- The term ‘covered employee’ has the meaning given such term in section 607(2) of the Employee Retirement Income Security Act of 1974. CommentsClose CommentsPermalink





(E) QUALIFIED BENEFICIARY- The term ‘qualified beneficiary’ has the meaning given such term in section 607(3) of the Employee Retirement Income Security Act of 1974. CommentsClose CommentsPermalink





(F) GROUP HEALTH PLAN- The term ‘group health plan’ has the meaning given such term in section 607(1) of the Employee Retirement Income Security Act of 1974. CommentsClose CommentsPermalink





(G) STATE- The term ‘State’ includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. CommentsClose CommentsPermalink





(11) REPORTS- CommentsClose CommentsPermalink





(A) INTERIM REPORT- The Secretary of the Treasury shall submit an interim report to the Committee on Education and Labor, the Committee on Ways and Means, and the Committee on Energy and Commerce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions and the Committee on Finance of the Senate regarding the premium reduction provided under this subsection that includes-- CommentsClose CommentsPermalink





(i) the number of individuals provided such assistance as of the date of the report; and CommentsClose CommentsPermalink





(ii) the total amount of expenditures incurred (with administrative expenditures noted separately) in connection with such assistance as of the date of the report. CommentsClose CommentsPermalink





(B) FINAL REPORT- As soon as practicable after the last period of COBRA continuation coverage for which premium reduction is provided under this section, the Secretary of the Treasury shall submit a final report to each Committee referred to in subparagraph (A) that includes-- CommentsClose CommentsPermalink





(i) the number of individuals provided premium reduction under this section; CommentsClose CommentsPermalink





(ii) the average dollar amount (monthly and annually) of premium reductions provided to such individuals; and CommentsClose CommentsPermalink





(iii) the total amount of expenditures incurred (with administrative expenditures noted separately) in connection with premium reduction under this section. CommentsClose CommentsPermalink





(12) COBRA PREMIUM ASSISTANCE- CommentsClose CommentsPermalink





(A) IN GENERAL- Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: CommentsClose CommentsPermalink

‘SEC. 6431. COBRA PREMIUM ASSISTANCE.

‘(a) In General- The entity to whom premiums are payable under COBRA continuation coverage shall be reimbursed for the amount of premiums not paid by plan beneficiaries by reason of section 3002(a) of the Health Insurance Assistance for the Unemployed Act of 2009. Such amount shall be treated as a credit against the requirement of such entity to make deposits of payroll taxes and the liability of such entity for payroll taxes. To the extent that such amount exceeds the amount of such taxes, the Secretary shall pay to such entity the amount of such excess. No payment may be made under this subsection to an entity with respect to any assistance eligible individual until after such entity has received the reduced premium from such individual required under section 3002(a)(1)(A) of such Act. CommentsClose CommentsPermalink





‘(b) Payroll Taxes- For purposes of this section, the term ‘payroll taxes’ means-- CommentsClose CommentsPermalink





‘(1) amounts required to be deducted and withheld for the payroll period under section 3401 (relating to wage withholding), CommentsClose CommentsPermalink





‘(2) amounts required to be deducted for the payroll period under section 3102 (relating to FICA employee taxes), and CommentsClose CommentsPermalink





‘(3) amounts of the taxes imposed for the payroll period under section 3111 (relating to FICA employer taxes). CommentsClose CommentsPermalink





‘(c) Treatment of Credit- Except as otherwise provided by the Secretary, the credit described in subsection (a) shall be applied as though the employer had paid to the Secretary, on the day that the qualified beneficiary’s premium payment is received, an amount equal to such credit. CommentsClose CommentsPermalink





‘(d) Treatment of Payment- For purposes ofsection 1324(b)(2) of title 31, United States Code, any payment under this subsection shall be treated in the same manner as a refund of the credit under section 35. CommentsClose CommentsPermalink





‘(e) Reporting- CommentsClose CommentsPermalink





‘(1) IN GENERAL- Each entity entitled to reimbursement under subsection (a) for any period shall submit such reports as the Secretary may require, including-- CommentsClose CommentsPermalink





‘(A) an attestation of involuntary termination of employment for each covered employee on the basis of whose termination entitlement to reimbursement is claimed under subsection (a), and CommentsClose CommentsPermalink





‘(B) a report of the amount of payroll taxes offset under subsection (a) for the reporting period and the estimated offsets of such taxes for the subsequent reporting period in connection with reimbursements under subsection (a). CommentsClose CommentsPermalink





‘(2) TIMING OF REPORTS RELATING TO AMOUNT OF PAYROLL TAXES- Reports required under paragraph (1)(B) shall be submitted at the same time as deposits of taxes imposed by chapters 21, 22, and 24 or at such time as is specified by the Secretary. CommentsClose CommentsPermalink





‘(f) Regulations- The Secretary may issue such regulations or other guidance as may be necessary or appropriate to carry out this section, including the requirement to report information or the establishment of other methods for verifying the correct amounts of payments and credits under this section. The Secretary shall issue such regulations or guidance with respect to the application of this section to group health plans that are multiemployer plans.’. CommentsClose CommentsPermalink





(B) SOCIAL SECURITY TRUST FUNDS HELD HARMLESS- In determining any amount transferred or appropriated to any fund under the Social Security Act, section 6431 of the Internal Revenue Code of 1986 shall not be taken into account. CommentsClose CommentsPermalink





(C) CLERICAL AMENDMENT- The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: CommentsClose CommentsPermalink





‘Sec. 6431. COBRA premium assistance.’. CommentsClose CommentsPermalink





(D) EFFECTIVE DATE- The amendments made by this paragraph shall apply to premiums to which subsection (a)(1)(A) applies. CommentsClose CommentsPermalink





(13) PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR PREMIUM ASSISTANCE- CommentsClose CommentsPermalink





(A) IN GENERAL- Part I of subchapter B of chapter 68 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: CommentsClose CommentsPermalink

‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR COBRA PREMIUM ASSISTANCE.

‘(a) In General- Any person required to notify a group health plan under section 3002(a)(2)(C)) of the Health Insurance Assistance for the Unemployed Act of 2009 who fails to make such a notification at such time and in such manner as the Secretary of Labor may require shall pay a penalty of 110 percent of the premium reduction provided under such section after termination of eligibility under such subsection. CommentsClose CommentsPermalink





‘(b) Reasonable Cause Exception- No penalty shall be imposed under subsection (a) with respect to any failure if it is shown that such failure is due to reasonable cause and not to willful neglect.’. CommentsClose CommentsPermalink





(B) CLERICAL AMENDMENT- The table of sections of part I of subchapter B of chapter 68 of such Code is amended by adding at the end the following new item: CommentsClose CommentsPermalink





‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility for COBRA premium assistance.’. CommentsClose CommentsPermalink





(C) EFFECTIVE DATE- The amendments made by this paragraph shall apply to failures occurring after the date of the enactment of this Act. CommentsClose CommentsPermalink





(14) COORDINATION WITH HCTC- CommentsClose CommentsPermalink





(A) IN GENERAL- Subsection (g) of section 35 of the Internal Revenue Code of 1986 is amended by redesignating paragraph (9) as paragraph (10) and inserting after paragraph (8) the following new paragraph: CommentsClose CommentsPermalink





‘(9) COBRA PREMIUM ASSISTANCE- In the case of an assistance eligible individual who receives premium reduction for COBRA continuation coverage under section 3002(a) of the Health Insurance Assistance for the Unemployed Act of 2009 for any month during the taxable year, such individual shall not be treated as an eligible individual, a certified individual, or a qualifying family member for purposes of this section or section 7527 with respect to such month.’. CommentsClose CommentsPermalink





(B) EFFECTIVE DATE- The amendment made by subparagraph (A) shall apply to taxable years ending after the date of the enactment of this Act. CommentsClose CommentsPermalink





(15) EXCLUSION OF COBRA PREMIUM ASSISTANCE FROM GROSS INCOME- CommentsClose CommentsPermalink





(A) IN GENERAL- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139B the following new section: CommentsClose CommentsPermalink

‘SEC. 139C. COBRA PREMIUM ASSISTANCE.

‘In the case of an assistance eligible individual (as defined in section 3002 of the Health Insurance Assistance for the Unemployed Act of 2009), gross income does not include any premium reduction provided under subsection (a) of such section.’. CommentsClose CommentsPermalink





(B) CLERICAL AMENDMENT- The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139B the following new item: CommentsClose CommentsPermalink





‘Sec. 139C. COBRA premium assistance.’. CommentsClose CommentsPermalink





(C) EFFECTIVE DATE- The amendments made by this paragraph shall apply to taxable years ending after the date of the enactment of this Act. CommentsClose CommentsPermalink





(b) Extension of COBRA Benefits for Older or Long-Term Employees- CommentsClose CommentsPermalink





(1) ERISA AMENDMENT- Section 602(2)(A) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new clauses: CommentsClose CommentsPermalink





‘(x) SPECIAL RULE FOR OLDER OR LONG-TERM EMPLOYEES GENERALLY- In the case of a qualifying event described in section 603(2) with respect to a covered employee who (as of such qualifying event) has attained age 55 or has completed 10 or more years of service with the entity that is the employer at the time of the qualifying event, clauses (i) and (ii) shall not apply. CommentsClose CommentsPermalink





‘(xi) YEAR OF SERVICE- For purposes of this subparagraph, the term ‘year of service’ shall have the meaning provided in section 202(a)(3).’. CommentsClose CommentsPermalink





(2) IRC AMENDMENT- Clause (i) of section 4980B(f)(2)(B) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subclauses: CommentsClose CommentsPermalink





‘(X) SPECIAL RULE FOR OLDER OR LONG-TERM EMPLOYEES GENERALLY- In the case of a qualifying event described in paragraph (3)(B) with respect to a covered employee who (as of such qualifying event) has attained age 55 or has completed 10 or more years of service with the entity that is the employer at the time of the qualifying event, subclauses (I) and (II) shall not apply. CommentsClose CommentsPermalink





‘(XI) YEAR OF SERVICE- For purposes of this clause, the term ‘year of service’ shall have the meaning provided in section 202(a)(3) of the Employee Retirement Income Security Act of 1974.’. CommentsClose CommentsPermalink





(3) PHSA AMENDMENT- Section 2202(2)(A) of the Public Health Service Act is amended by adding at the end the following new clauses: CommentsClose CommentsPermalink





‘(viii) SPECIAL RULE FOR OLDER OR LONG-TERM EMPLOYEES GENERALLY- In the case of a qualifying event described in section 2203(2) with respect to a covered employee who (as of such qualifying event) has attained age 55 or has completed 10 or more years of service with the entity that is the employer at the time of the qualifying event, clauses (i) and (ii) shall not apply. CommentsClose CommentsPermalink





‘(ix) YEAR OF SERVICE- For purposes of this subparagraph, the term ‘year of service’ shall have the meaning provided in section 202(a)(3) of the Employee Retirement Income Security Act of 1974.’. CommentsClose CommentsPermalink





(4) EFFECTIVE DATE OF AMENDMENTS- The amendments made by this subsection shall apply to periods of coverage which would (without regard to the amendments made by this section) end on or after the date of the enactment of this Act. CommentsClose CommentsPermalink

SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE FOR THE UNEMPLOYED.

(a) In General- Section 1902 of the Social Security Act (42 U.S.C. 1396b) is amended-- CommentsClose CommentsPermalink





(1) in subsection (a)(10)(A)(ii)-- CommentsClose CommentsPermalink





(A) by striking ‘or’ at the end of subclause (XVIII); CommentsClose CommentsPermalink





(B) by adding ‘or’ at the end of subclause (XIX); and CommentsClose CommentsPermalink





(C) by adding at the end the following new subclause CommentsClose CommentsPermalink





‘(XX) who are described in subsection (dd)(1) (relating to certain unemployed individuals and their families);’; and CommentsClose CommentsPermalink





(2) by adding at the end the following new subsection: CommentsClose CommentsPermalink





‘(dd)(1) Individuals described in this paragraph are-- CommentsClose CommentsPermalink





‘(A) individuals who-- CommentsClose CommentsPermalink





‘(i) are within one or more of the categories described in paragraph (2), as elected under the State plan; and CommentsClose CommentsPermalink





‘(ii) meet the applicable requirements of paragraph (3); and CommentsClose CommentsPermalink





‘(B) individuals who-- CommentsClose CommentsPermalink





‘(i) are the spouse, or dependent child under 19 years of age, of an individual described in subparagraph (A); and CommentsClose CommentsPermalink





‘(ii) meet the requirement of paragraph (3)(B). CommentsClose CommentsPermalink





‘(2) The categories of individuals described in this paragraph are each of the following: CommentsClose CommentsPermalink





‘(A) Individuals who are receiving unemployment compensation benefits. CommentsClose CommentsPermalink





‘(B) Individuals who were receiving, but have exhausted, unemployment compensation benefits on or after July 1, 2008. CommentsClose CommentsPermalink





‘(C) Individuals who are involuntarily unemployed and were involuntarily separated from employment on or after September 1, 2008, and before January 1, 2011, whose family gross income does not exceed a percentage specified by the State (not to exceed 200 percent) of the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) applicable to a family of the size involved, and who, but for subsection (a)(10)(A)(ii)(XX), are not eligible for medical assistance under this title or health assistance under title XXI. CommentsClose CommentsPermalink





‘(D) Individuals who are involuntarily unemployed and were involuntarily separated from employment on or after September 1, 2008, and before January 1, 2011, who are members of households participating in the supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq), and who, but for subsection (a)(10)(A)(ii)(XX), are not eligible for medical assistance under this title or health assistance under title XXI. CommentsClose CommentsPermalink





A State plan may elect one or more of the categories described in this paragraph but may not elect the category described in subparagraph (B) unless the State plan also elects the category described in subparagraph (A). CommentsClose CommentsPermalink





‘(3) The requirements of this paragraph with respect to an individual are the following: CommentsClose CommentsPermalink





‘(A) In the case of individuals within a category described in subparagraph (A) or (B) of paragraph (2), the individual was involuntarily separated from employment on or after September 1, 2008, and before January 1, 2011, or meets such comparable requirement as the Secretary specifies through rule, guidance, or otherwise in the case of an individual who was an independent contractor. CommentsClose CommentsPermalink





‘(B) The individual is not otherwise covered under creditable coverage, as defined in section 2701(c) of the Public Health Service Act (42 U.S.C. 300gg(c)), but applied without regard to paragraph (1)(F) of such section and without regard to coverage provided by reason of the application of subsection (a)(10)(A)(ii)(XX). CommentsClose CommentsPermalink





‘(4)(A) No income or resources test shall be applied with respect to any category of individuals described in subparagraph (A), (B), or (D) of paragraph (2) who are eligible for medical assistance only by reason of the application of subsection (a)(10)(A)(ii)(XX). CommentsClose CommentsPermalink





‘(B) Nothing in this subsection shall be construed to prevent a State from imposing a resource test for the category of individuals described in paragraph (2)(C)). CommentsClose CommentsPermalink





‘(C) In the case of individuals provided medical assistance by reason of the application of subsection (a)(10)(A)(ii)(XX), the requirements of subsections (i)(22) and (x) shall not apply.’. CommentsClose CommentsPermalink





(b) 100 Percent Federal Matching Rate- CommentsClose CommentsPermalink





(1) FMAP FOR TIME-LIMITED PERIOD- The third sentence of section 1905(b) of such Act (42 U.S.C. 1396d(b)) is amended by inserting before the period at the end the following: ‘and for items and services furnished on or after the date of enactment of this Act and before January 1, 2011, to individuals who are eligible for medical assistance only by reason of the application of section 1902(a)(10)(A)(ii)(XX)’. CommentsClose CommentsPermalink





(2) CERTAIN ENROLLMENT-RELATED ADMINISTRATIVE COSTS- Notwithstanding any other provision of law, for purposes of applying section 1903(a) of the Social Security Act (42 U.S.C. 1396b(a)), with respect to expenditures incurred on or after the date of the enactment of this Act and before January 1, 2011, for costs of administration (including outreach and the modification and operation of eligibility information systems) attributable to eligibility determination and enrollment of individuals who are eligible for medical assistance only by reason of the application of section 1902(a)(10)(A)(ii)(XX) of such Act, as added by subsection (a)(1), the Federal matching percentage shall be 100 percent instead of the matching percentage otherwise applicable. CommentsClose CommentsPermalink





(c) Conforming Amendments- (1) Section 1903(f)(4) of such Act (42 U.S.C. 1396c(f)(4)) is amended by inserting ‘1902(a)(10)(A)(ii)(XX), or’ after ‘1902(a)(10)(A)(ii)(XIX),’. CommentsClose CommentsPermalink





(2) Section 1905(a) of such Act (42 U.S.C. 1396d(a)) is amended, in the matter preceding paragraph (1)-- CommentsClose CommentsPermalink





(A) by striking ‘or’ at the end of clause (xii); CommentsClose CommentsPermalink





(B) by adding ‘or’ at the end of clause (xiii); and CommentsClose CommentsPermalink





(C) by inserting after clause (xiii) the following new clause: CommentsClose CommentsPermalink





‘(xiv) individuals described in section 1902(dd)(1),’. CommentsClose CommentsPermalink

TITLE IV--HEALTH INFORMATION TECHNOLOGY CommentsClose Comments