S 350 PCS1SCommentsClose CommentsPermalink

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

January 29, 2009CommentsClose CommentsPermalink

Mr. BAUCUS, from the Committee on Finance, reported the following original bill; which was read twice and placed on the calendarCommentsClose 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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘American Recovery and Reinvestment Act of 2009’.CommentsClose CommentsPermalink

TITLE I--TAX PROVISIONSCommentsClose CommentsPermalink

SEC. 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

TITLE I--TAX PROVISIONS

Sec. 1000. Short title, etc.CommentsClose CommentsPermalink

Subtitle A--Tax Relief for Individuals and Families

PART I--General Tax Relief

Sec. 1001. Making work pay credit.CommentsClose CommentsPermalink





Sec. 1002. Temporary increase in earned income tax credit.CommentsClose CommentsPermalink





Sec. 1003. Temporary increase of refundable portion of child credit.CommentsClose CommentsPermalink





Sec. 1004. American opportunity tax credit.CommentsClose CommentsPermalink





Sec. 1005. Computer technology and equipment allowed as a qualified higher education expense for section 529 accounts in 2009 and 2010.CommentsClose CommentsPermalink





Sec. 1006. Extension of first-time homebuyer credit; waiver of requirement to repay.CommentsClose CommentsPermalink





Sec. 1007. Suspension of tax on portion of unemployment compensation.CommentsClose CommentsPermalink

PART II--Alternative Minimum Tax Relief

Sec. 1011. Extension of alternative minimum tax relief for nonrefundable personal credits.CommentsClose CommentsPermalink





Sec. 1012. Extension of increased alternative minimum tax exemption amount.CommentsClose CommentsPermalink

Subtitle B--Energy Incentives

PART I--Renewable Energy Incentives

Sec. 1101. Extension of credit for electricity produced from certain renewable resources.CommentsClose CommentsPermalink





Sec. 1102. Election of investment credit in lieu of production credit.CommentsClose CommentsPermalink





Sec. 1103. Repeal of certain limitations on credit for renewable energy property.CommentsClose CommentsPermalink

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

Sec. 1111. Increased limitation on issuance of new clean renewable energy bonds.CommentsClose CommentsPermalink





Sec. 1112. Increased limitation on issuance of qualified energy conservation bonds.CommentsClose CommentsPermalink

PART III--Energy Conservation Incentives

Sec. 1121. Extension and modification of credit for nonbusiness energy property.CommentsClose CommentsPermalink





Sec. 1122. Modification of credit for residential energy efficient property.CommentsClose CommentsPermalink





Sec. 1123. Temporary increase in credit for alternative fuel vehicle refueling property.CommentsClose CommentsPermalink

PART IV--Energy Research Incentives

Sec. 1131. Increased research credit for energy research.CommentsClose CommentsPermalink

PART V--General Business Credit

Sec. 1141. 5-year carryback of general business credits.CommentsClose CommentsPermalink





Sec. 1142. Temporary provision allowing general business credits to offset 100 percent of Federal income tax liability.CommentsClose CommentsPermalink

PART VI--Modification of Credit for Carbon Dioxide Sequestration

Sec. 1151. Application of monitoring requirements to carbon dioxide used as a tertiary injectant.CommentsClose CommentsPermalink

PART VII--Plug-In Electric Drive Motor Vehicles

Sec. 1161. Modification of credit for qualified plug-in electric motor vehicles.CommentsClose CommentsPermalink

Subtitle C--Tax Incentives for Business

PART I--Temporary Investment Incentives

Sec. 1201. Special allowance for certain property acquired during 2009.CommentsClose CommentsPermalink





Sec. 1202. Temporary increase in limitations on expensing of certain depreciable business assets.CommentsClose CommentsPermalink

PART II--5-Year Carryback of Operating Losses

Sec. 1211. 5-year carryback of operating losses.CommentsClose CommentsPermalink





Sec. 1212. Exception for TARP recipients.CommentsClose CommentsPermalink

PART III--Incentives for New Jobs

Sec. 1221. Incentives to hire unemployed veterans and disconnected youth.CommentsClose CommentsPermalink

PART IV--Cancellation of Indebtedness

Sec. 1231. Deferral and ratable inclusion of income arising from indebtedness discharged by the repurchase of a debt instrument.CommentsClose CommentsPermalink

PART V--Qualified Small Business Stock

Sec. 1241. Special rules applicable to qualified small business stock for 2009 and 2010.CommentsClose CommentsPermalink

PART VI--Parity for Transportation Fringe Benefits

Sec. 1251. Increased exclusion amount for commuter transit benefits and transit passes.CommentsClose CommentsPermalink

PART VII--S Corporations

Sec. 1261. Temporary reduction in recognition period for built-in gains tax.CommentsClose CommentsPermalink

PART VIII--Broadband Incentives

Sec. 1271. Broadband Internet access tax credit.CommentsClose CommentsPermalink

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

Sec. 1281. Clarification of regulations related to limitations on certain built-in losses following an ownership change.CommentsClose CommentsPermalink

Subtitle D--Manufacturing Recovery Provisions

Sec. 1301. Temporary expansion of availability of industrial development bonds to facilities manufacturing intangible property.CommentsClose CommentsPermalink





Sec. 1302. Credit for investment in advanced energy facilities.CommentsClose CommentsPermalink

Subtitle E--Economic Recovery Tools

Sec. 1401. Recovery zone bonds.CommentsClose CommentsPermalink





Sec. 1402. Tribal economic development bonds.CommentsClose CommentsPermalink





Sec. 1403. Modifications to new markets tax credit.CommentsClose CommentsPermalink

Subtitle F--Infrastructure Financing Tools

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





Sec. 1504. Modification to high speed intercity rail facility bonds.CommentsClose CommentsPermalink

PART II--Delay in Application of Withholding Tax on Government Contractors

Sec. 1511. Delay in application of withholding tax on government contractors.CommentsClose CommentsPermalink

PART III--Tax Credit Bonds for Schools

Sec. 1521. Qualified school construction bonds.CommentsClose CommentsPermalink





Sec. 1522. Extension and expansion of qualified zone academy bonds.CommentsClose CommentsPermalink

PART IV--Build America Bonds

Sec. 1531. Build America bonds.CommentsClose CommentsPermalink

Subtitle G--Economic Recovery Payments to Certain Individuals

Sec. 1601. Economic recovery payment to recipients of Social Security, supplemental security income, railroad retirement benefits, and veterans disability compensation or pension benefits.CommentsClose CommentsPermalink

Subtitle H--Trade Adjustment Assistance

Sec. 1701. Temporary extension of Trade Adjustment Assistance program.CommentsClose CommentsPermalink

Subtitle I--Prohibition on Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000

Sec. 1801. Prohibition on collection of certain payments made under the Continued Dumping and Subsidy Offset Act of 2000.CommentsClose CommentsPermalink

Subtitle J--Other Provisions

Sec. 1901. Application of certain labor standards to projects financed with certain tax-favored bonds.CommentsClose CommentsPermalink





Sec. 1902. Increase in public debt limit.CommentsClose CommentsPermalink

Subtitle A--Tax Relief for Individuals and FamiliesCommentsClose CommentsPermalink

PART I--GENERAL TAX RELIEF

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, orCommentsClose 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 and subsection (c)) for the taxable year shall be reduced (but not below zero) by 4 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) Reduction for Certain Other Payments- The credit allowed under subsection (a) for any taxable year shall be reduced by the amount of any payments received by the taxpayer during such taxable year under section 1601 of the American Recovery and Reinvestment Tax Act of 2009.CommentsClose CommentsPermalink





‘(d) 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, andCommentsClose 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





‘(e) 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, orCommentsClose 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 of section 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) Authority Relating to Clerical Errors- Section 6213(g)(2) is amended by striking ‘and’ at the end of subparagraph (L)(ii), by striking the period at the end of subparagraph (M) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(N) an omission of the reduction required under section 36A(c) with respect to the credit allowed under section 36A or an omission of the correct TIN required under section 36A(d)(1).’.CommentsClose CommentsPermalink





(e) 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





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

SEC. 1002. 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) SPECIAL 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 byCommentsClose 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. 1003. 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 $6,000.’.CommentsClose CommentsPermalink





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

SEC. 1004. 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, plusCommentsClose 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, overCommentsClose CommentsPermalink





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





‘(B) the sum of the credits allowable under this subpart (other than this subsection 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 allowable under this subsection shall be treated as a reference to so much of the credit allowable under subsection (a) as is attributable to the Hope Scholarship Credit.CommentsClose CommentsPermalink





‘(6) PORTION OF CREDIT MADE REFUNDABLE- 30 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

SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009 AND 2010.

(a) In General- Section 529(e)(3)(A) is amended by striking ‘and’ at the end of clause (i), by striking the period at the end of clause (ii), and by adding at the end the following:CommentsClose CommentsPermalink





‘(iii) expenses paid or incurred in 2009 or 2010 for the purchase of any computer technology or equipment (as defined in section 170(e)(6)(F)(i)) or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is enrolled at an eligible educational institution.CommentsClose CommentsPermalink





Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to expenses paid or incurred after December 31, 2008.CommentsClose CommentsPermalink

SEC. 1006. EXTENSION OF FIRST-TIME HOMEBUYER CREDIT; WAIVER OF REQUIREMENT TO REPAY.

(a) Extension-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 36(h) is amended by striking ‘July 1, 2009’ and inserting ‘September 1, 2009’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENT- Section 36(g) is amended by striking ‘July 1, 2009’ and inserting ‘September 1, 2009’.CommentsClose CommentsPermalink





(b) Waiver of Recapture-CommentsClose CommentsPermalink





(1) 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 September 1, 2009--CommentsClose CommentsPermalink





‘(i) paragraph (1) shall not apply, andCommentsClose 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





(2) 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. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION.

(a) In General- Section 85 of the Internal Revenue Code of 1986 (relating to unemployment compensation) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(c) Special Rule for 2009- In the case of any taxable year beginning in 2009, gross income shall not include so much of the unemployment compensation received by an individual as does not exceed $2,400.’.CommentsClose CommentsPermalink





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

PART II--ALTERNATIVE MINIMUM TAX RELIEF

SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE PERSONAL CREDITS.

(a) In General- Paragraph (2) of section 26(a) (relating to special rule for taxable years 2000 through 2008) is amended--CommentsClose CommentsPermalink





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





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





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

SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNT.

(a) In General- Paragraph (1) of section 55(d) (relating to exemption amount) is amended--CommentsClose CommentsPermalink





(1) by striking ‘($69,950 in the case of taxable years beginning in 2008)’ in subparagraph (A) and inserting ‘($70,950 in the case of taxable years beginning in 2009)’, andCommentsClose CommentsPermalink





(2) by striking ‘($46,200 in the case of taxable years beginning in 2008)’ in subparagraph (B) and inserting ‘($46,700 in the case of taxable years beginning in 2009)’.CommentsClose CommentsPermalink





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

Subtitle B--Energy IncentivesCommentsClose CommentsPermalink

PART I--RENEWABLE ENERGY INCENTIVES

SEC. 1101. 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’, andCommentsClose 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. 1102. 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--CommentsClose CommentsPermalink





‘(i) such facility shall be treated as energy property for purposes of this section, andCommentsClose 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 of the following facilities 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





‘(i) WIND FACILITIES- Any facility described in paragraph (1) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, or 2012.CommentsClose CommentsPermalink





‘(ii) OTHER FACILITIES- Any facility described in paragraph (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if such facility is placed in service in 2009, 2010, 2011, 2012, or 2013.’.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. 1103. 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- Section 48(a)(4) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(D) TERMINATION- This paragraph shall not apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).’.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) Section 48A(b)(2) is amended by inserting ‘(without regard to subparagraph (D) thereof)’ after ‘section 48(a)(4)’.CommentsClose CommentsPermalink





(D) Section 48B(b)(2) is amended by inserting ‘(without regard to subparagraph (D) thereof)’ after ‘section 48(a)(4)’.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

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

SEC. 1111. 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. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY CONSERVATION BONDS.

Section 54D(d) is amended by striking ‘800,000,000’ and inserting ‘$3,200,000,000’.CommentsClose CommentsPermalink

PART III--ENERGY CONSERVATION INCENTIVES

SEC. 1121. 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, andCommentsClose 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. 1122. 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.’, andCommentsClose 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. 1123. 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’, andCommentsClose CommentsPermalink





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





‘(B) in the case of any such property which relates to hydrogen, subsection (b)(1) 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. 1131. 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--CommentsClose CommentsPermalink





‘(A) IN GENERAL- 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 and renewable fuels, energy conservation technology, efficient transmission and distribution of electricity, and carbon capture and sequestration.CommentsClose CommentsPermalink





‘(B) COORDINATION WITH QUALIFYING ADVANCED ENERGY PROJECT CREDIT- Such term shall not include expenditures taken into account in determining the amount of the credit under section 48 or 48C.CommentsClose CommentsPermalink





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





‘(A) IN GENERAL- 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, andCommentsClose 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

PART V--GENERAL BUSINESS CREDIT

SEC. 1141. 5-YEAR CARRYBACK OF GENERAL BUSINESS CREDITS.

(a) In General- Subsection (a) of section 39 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) SPECIAL RULE FOR 2008 AND 2009 BUSINESS CREDITS- In the case of any current year business credit for a taxable year ending in 2008 or 2009--CommentsClose CommentsPermalink





‘(A) paragraph (1)(A) shall be applied by substituting ‘each of the 5 taxable years’ for ‘the taxable year’ in subparagraph (A) thereof, andCommentsClose CommentsPermalink





‘(B) paragraph (2) shall be applied--CommentsClose CommentsPermalink





‘(i) by substituting ‘25 taxable years’ for ‘21 taxable years’, andCommentsClose CommentsPermalink





‘(ii) by substituting ‘24 taxable years’ for ‘20 taxable years’.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this subsection shall apply to taxable years ending after December 31, 2007, and to carrybacks of business credits from such taxable years.CommentsClose CommentsPermalink

SEC. 1142. TEMPORARY PROVISION ALLOWING GENERAL BUSINESS CREDITS TO OFFSET 100 PERCENT OF FEDERAL INCOME TAX LIABILITY.

(a) In General- Subsection (c) of section 38 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(6) TEMPORARY PROVISION ALLOWING GENERAL BUSINESS CREDITS TO OFFSET 100 PERCENT OF FEDERAL INCOME TAX LIABILITY-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of a taxable year ending in 2008 or 2009--CommentsClose CommentsPermalink





‘(i) the limitation under paragraph (1) shall be the net income tax (as defined in paragraph (1)) for purposes of determining the amount of the credit allowed under subsection (a) for such taxable year, andCommentsClose CommentsPermalink





‘(ii) the excess credit for such taxable year shall, solely for purposes of determining the amount of such excess credit which may be carried back to a preceding taxable year, be increased by the amount of business credit carryforwards which are carried to such taxable year and which are not allowed for such taxable year by reason of the limitation under paragraph (1) (as modified by clause (i)).CommentsClose CommentsPermalink





‘(B) INCREASE IN LIMITATION FOR TAXABLE YEARS TO WHICH EXCESS CREDITS FOR 2008 AND 2009 ARE CARRIED BACK-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Solely for purposes of determining the portion of any excess credit described in subparagraph (A)(ii) for which credit will be allowed under subsection (a)(3) for any preceding taxable year, the limitation under paragraph (1) for such preceding taxable year shall be the net income tax (as defined in paragraph (1)).CommentsClose CommentsPermalink





‘(ii) ORDERING RULE- If the excess credit described in subparagraph (A)(ii) includes business credit carryforwards from preceding taxable years, such excess credit shall be treated as allowed for any preceding taxable year on a first-in first-out basis.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years ending after December 31, 2007, and to carrybacks of credits from such taxable years.CommentsClose CommentsPermalink

PART VI--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

SEC. 1151. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE USED AS A TERTIARY INJECTANT.

(a) In General- Section 45Q(a)(2) is amended by striking ‘and’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘, and’, and by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(C) disposed of by the taxpayer in secure geological storage.’.CommentsClose CommentsPermalink





(b) Conforming Amendment- Section 45Q(d)(2) is amended by striking ‘subsection (a)(1)(B)’ and inserting ‘paragraph (1)(B) or (2)(C) of subsection (a)’.CommentsClose CommentsPermalink





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

PART VII--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

SEC. 1161. MODIFICATION OF CREDIT FOR QUALIFIED PLUG-IN ELECTRIC MOTOR VEHICLES.

(a) Increase in Vehicles Eligible for Credit- Section 30D(b)(2)(B) is amended by striking ‘250,000’ and inserting ‘500,000’.CommentsClose CommentsPermalink





(b) Exclusion of Neighborhood Electric Vehicles From Existing Credit- Section 30D(e)(1) is amended to read as follows:CommentsClose CommentsPermalink





‘(1) MOTOR VEHICLE- The term ‘motor vehicle’ means a motor vehicle (as defined in section 30(c)(2)), which is treated as a motor vehicle for purposes of title II of the Clean Air Act.’.CommentsClose CommentsPermalink





(c) Credit for Certain Other Vehicles- Section 30D is amended--CommentsClose CommentsPermalink





(1) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, andCommentsClose CommentsPermalink





(2) by inserting after subsection (e) the following new subsection:CommentsClose CommentsPermalink





‘(f) Credit for Certain Other Vehicles- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of a specified vehicle, this section shall be applied with the following modifications:CommentsClose CommentsPermalink





‘(A) For purposes of subsection (a)(1), in lieu of the applicable amount determined under subsection (a)(2), the applicable amount shall be 10 percent of so much of the cost of the specified vehicle as does not exceed $40,000.CommentsClose CommentsPermalink





‘(B) Subsection (b) shall not apply and no specified vehicle shall be taken into account under subsection (b)(2).CommentsClose CommentsPermalink





‘(C) Subsection (c)(3) shall not apply.CommentsClose CommentsPermalink





‘(2) SPECIFIED VEHICLE- For purposes of this subsection--CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘specified vehicle’ means--CommentsClose CommentsPermalink





‘(i) any 2- or 3-wheeled motor vehicle, orCommentsClose CommentsPermalink





‘(ii) any low-speed motor vehicle,CommentsClose CommentsPermalink





which is placed in service after December 31, 2009, and before January 1, 2012.CommentsClose CommentsPermalink





‘(B) 2- OR 3-WHEELED MOTOR VEHICLE- The term ‘2- or 3-wheeled motor vehicle’ means any vehicle--CommentsClose CommentsPermalink





‘(i) which would be described in section 30(c)(2) except that it has 2 or 3 wheels,CommentsClose CommentsPermalink





‘(ii) with motive power having a seat or saddle for the use of the rider and designed to travel on not more than 3 wheels in contact with the ground,CommentsClose CommentsPermalink





‘(iii) which has an electric motor that produces in excess of 5-brake horsepower,CommentsClose CommentsPermalink





‘(iv) which draws propulsion from 1 or more traction batteries, andCommentsClose CommentsPermalink





‘(v) which has been certified to the Department of Transportation pursuant to section 567 of title 49, Code of Federal Regulations, as conforming to all applicable Federal motor vehicle safety standards in effect on the date of the manufacture of the vehicle.CommentsClose CommentsPermalink





‘(C) LOW-SPEED MOTOR VEHICLE- The term ‘low-speed motor vehicle’ means a motor vehicle (as defined in section 30(c)(2)) which meets the requirements of section 571.500 of title 49, Code of Federal Regulations.’.CommentsClose CommentsPermalink





(d) Effective Dates-CommentsClose CommentsPermalink





(1) INCREASE IN VEHICLES ELIGIBLE FOR CREDIT- The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(2) OTHER MODIFICATIONS- The amendments made by subsections (b) and (c) shall apply to property placed in service after December 31, 2009, in taxable years beginning after such date.CommentsClose CommentsPermalink

Subtitle C--Tax Incentives for BusinessCommentsClose CommentsPermalink

PART I--TEMPORARY INVESTMENT INCENTIVES

SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.

(a) Extension of Special Allowance-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (2) of section 168(k) is amended--CommentsClose CommentsPermalink





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





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





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





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





(B) 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





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





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





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





(3) TECHNICAL AMENDMENT- 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 (iii), andCommentsClose CommentsPermalink





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





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





(b) Extension of Election To Accelerate the AMT and Research Credits in Lieu of Bonus Depreciation- Section 168(k)(4) (relating to election to accelerate the AMT and research credits in lieu of bonus depreciation) is amended--CommentsClose CommentsPermalink





(1) by striking ‘2009’ and inserting ‘2010’in subparagraph (D)(iii) (as redesignated by subsection (a)(3)), andCommentsClose CommentsPermalink





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





‘(H) SPECIAL RULES FOR EXTENSION PROPERTY-CommentsClose CommentsPermalink





‘(i) TAXPAYERS PREVIOUSLY ELECTING ACCELERATION- In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008--CommentsClose CommentsPermalink





‘(I) the taxpayer may elect not to have this paragraph apply to extension property, butCommentsClose CommentsPermalink





‘(II) if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer a separate bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is extension property and to eligible qualified property which is not extension property.CommentsClose CommentsPermalink





‘(ii) TAXPAYERS NOT PREVIOUSLY ELECTING ACCELERATION- In the case of a taxpayer who did not make the election under subparagraph (A) for its first taxable year ending after March 31, 2008--CommentsClose CommentsPermalink





‘(I) the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2008, and each subsequent taxable year, andCommentsClose CommentsPermalink





‘(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is extension property.CommentsClose CommentsPermalink





‘(iii) EXTENSION PROPERTY- For purposes of this subparagraph, the term ‘extension property’ means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 1201(a) of the American Recovery and Reinvestment Tax Act of 2009 (and the application of such extension to this paragraph pursuant to the amendment made by section 1201(b)(1) of such Act).’.CommentsClose CommentsPermalink





(c) Inclusion of Films or Videotape as Qualified Property-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 168(k)(2) is amended by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(H) CERTAIN FILMS- The term ‘qualified property’ includes property--CommentsClose CommentsPermalink





‘(i) which is a motion picture film or video tape (within the meaning of subsection (f)(3)) for which a deduction is allowable under section 167(a) without regard to this section,CommentsClose CommentsPermalink





‘(ii) the original use of which commences with the taxpayer after December 31, 2008,CommentsClose CommentsPermalink





‘(iii) which is--CommentsClose CommentsPermalink





‘(I) acquired by the taxpayer after December 31, 2008, and before January 1, 2010, but only if no written binding contract for the acquisition was in effect before January 1, 2009, orCommentsClose CommentsPermalink





‘(II) acquired by the taxpayer pursuant to a written binding contract which was entered into after December 31, 2008, and before January 1, 2010,CommentsClose CommentsPermalink





‘(iv) which is placed in service by the taxpayer before January 1, 2010, or, in the case of property described in subparagraph (B), before January 1, 2011, andCommentsClose CommentsPermalink





‘(v) the production of which is a qualified film or television production (as defined in section 181(d) (determined without regard to paragraph (2)(B)(ii) thereof)) with respect to which an election is not in effect under section 181.’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) Subclause (I) of section 168(k)(2)(B)(i) is amended by inserting ‘subparagraph (H) or’ after ‘requirements of’.CommentsClose CommentsPermalink





(B) Subclause (II) of section 168(k)(2)(B)(i) is amended by striking ‘or is transportation property’ and inserting ‘, is transportation property, or is property described in subparagraph (H)’.CommentsClose CommentsPermalink





(C) Clause (iii) of section 168(k)(2)(D) is amended by adding at the end the following new sentence: ‘For purposes of the preceding sentence, all property described in subparagraph (H) shall be treated as one class of property.’.CommentsClose CommentsPermalink





(D) Subparagraph (E) of section 168(k)(2) is amended by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(v) APPLICATION TO FILM AND VIDEOTAPE PROPERTY- In the case of property described in subparagraph (H), clauses (i), (ii), (iii), and (iv) of this subparagraph shall be applied--CommentsClose CommentsPermalink





‘(I) by substituting ‘December 31, 2008’ for ‘December 31, 2007’ each place it appears, andCommentsClose CommentsPermalink





‘(II) by treating any reference to a clause of subparagraph (A) as a reference to the corresponding clause of subparagraph (H).’.CommentsClose CommentsPermalink





(d) 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- The amendments made by subsection (a)(3) shall apply to taxable years ending after March 31, 2008.CommentsClose CommentsPermalink

SEC. 1202. 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’, andCommentsClose 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. 1211. 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





‘(i) IN GENERAL- In the case of an applicable 2008 or 2009 net operating loss with respect to which the taxpayer has elected the application of this subparagraph--CommentsClose CommentsPermalink





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





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





‘(III) 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, orCommentsClose 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 such taxable years, or’.CommentsClose CommentsPermalink





(c) 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, 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 FROM 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 in 2008 or 2009, orCommentsClose 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 extension of time) for filing the taxpayer’s return for the taxable year of the loss from operations. Any such election, once made, 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) and by redesignating subsection (l) as 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 before 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(k) 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, andCommentsClose 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. 1212. 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, orCommentsClose 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, andCommentsClose 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. 1221. 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, andCommentsClose 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, andCommentsClose 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--CANCELLATION OF INDEBTEDNESS

SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM INDEBTEDNESS DISCHARGED BY THE REPURCHASE OF A DEBT INSTRUMENT.

(a) In General- Section 108 (relating to income from discharge of indebtedness) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(i) Deferral and Ratable Inclusion of Income Arising From Indebtedness Discharged by the Repurchase of a Debt Instrument-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Notwithstanding section 61, income from the discharge of indebtedness in connection with the repurchase of a debt instrument after December 31, 2008, and before January 1, 2011, shall be includible in gross income ratably over the 8-taxable-year period beginning with--CommentsClose CommentsPermalink





‘(A) in the case of a repurchase occurring in 2009, the second taxable year following the taxable year in which the repurchase occurs, andCommentsClose CommentsPermalink





‘(B) in the case of a repurchase occurring in 2010, the taxable year following the taxable year in which the repurchase occurs.CommentsClose CommentsPermalink





‘(2) DEBT INSTRUMENT- For purposes of this subsection, the term ‘debt instrument’ means a bond, debenture, note, certificate, or any other instrument or contractual arrangement constituting indebtedness (within the meaning of section 1275(a)(1)).CommentsClose CommentsPermalink





‘(3) REPURCHASE- For purposes of this subsection, the term ‘repurchase’ means, with respect to any debt instrument, a cash purchase of the debt instrument by--CommentsClose CommentsPermalink





‘(A) the debtor which issued the debt instrument, orCommentsClose CommentsPermalink





‘(B) any person related to such debtor.CommentsClose CommentsPermalink





For purposes of subparagraph (B), the determination of whether a person is related to another person shall be made in the same manner as under subsection (e)(4).CommentsClose CommentsPermalink





‘(4) AUTHORITY TO PRESCRIBE REGULATIONS- The Secretary may prescribe such regulations as may be necessary or appropriate for purposes of applying this subsection.’.CommentsClose CommentsPermalink





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

PART V--QUALIFIED SMALL BUSINESS STOCK

SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK FOR 2009 AND 2010.

(a) In General- Section 1202(a) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(3) SPECIAL RULES FOR 2009 AND 2010- In the case of qualified small business stock acquired after the date of the enactment of this paragraph and before January 1, 2011--CommentsClose CommentsPermalink





‘(A) paragraph (1) shall be applied by substituting ‘75 percent’ for ‘50 percent’, andCommentsClose CommentsPermalink





‘(B) paragraph (2) shall not apply.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to stock acquired after the date of the enactment of this Act.CommentsClose CommentsPermalink

PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS

SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND TRANSIT PASSES.

(a) In General- Paragraph (2) of section 132(f) is amended by adding at the end the following flush sentence:CommentsClose CommentsPermalink





‘In the case of any month beginning on or after the date of the enactment of this sentence and before January 1, 2011, subparagraph (A) shall be applied as if the dollar amount therein were the same as the dollar amount under subparagraph (B) (as in effect for such month).’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to months beginning on or after the date of the enactment of this section.CommentsClose CommentsPermalink

PART VII--S CORPORATIONS

SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX.

(a) In General- Paragraph (7) of section 1374(d) (relating to definitions and special rules) is amended to read as follows:CommentsClose CommentsPermalink





‘(7) RECOGNITION PERIOD-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘recognition period’ means the 10-year period beginning with the 1st day of the 1st taxable year for which the corporation was an S corporation.CommentsClose CommentsPermalink





‘(B) SPECIAL RULE FOR 2009 AND 2010- In the case of any taxable year beginning in 2009 or 2010, no tax shall be imposed on the net unrecognized built-in gain of an S corporation if the 7th taxable year in the recognition period preceded such taxable year. The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies.CommentsClose CommentsPermalink





‘(C) SPECIAL RULE FOR DISTRIBUTIONS TO SHAREHOLDERS- For purposes of applying this section to any amount includible in income by reason of distributions to shareholders pursuant to section 593(e)--CommentsClose CommentsPermalink





‘(i) subparagraph (A) shall be applied without regard to the phrase ‘10-year’, andCommentsClose CommentsPermalink





‘(ii) subparagraph (B) shall not apply.’.CommentsClose CommentsPermalink





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

PART VIII--BROADBAND INCENTIVES

SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT.

(a) In General- Subpart E of part IV of chapter 1 of the Internal Revenue Code of 1986 (relating to rules for computing investment credit), as amended by this Act, is amended by inserting after section 48C the following new section:CommentsClose CommentsPermalink

‘SEC. 48D. BROADBAND INTERNET ACCESS CREDIT.

‘(a) General Rule- For purposes of section 46, the broadband credit for any taxable year is the sum of--CommentsClose CommentsPermalink





‘(1) the current generation broadband credit, plusCommentsClose CommentsPermalink





‘(2) the next generation broadband credit.CommentsClose CommentsPermalink





‘(b) Current Generation Broadband Credit; Next Generation Broadband Credit- For purposes of this section--CommentsClose CommentsPermalink





‘(1) CURRENT GENERATION BROADBAND CREDIT- The current generation broadband credit for any taxable year is equal to 10 percent (20 percent in the case of qualified subscribers which are unserved subscribers) of the qualified broadband expenditures incurred with respect to qualified equipment providing current generation broadband services to qualified subscribers and taken into account with respect to such taxable year.CommentsClose CommentsPermalink





‘(2) NEXT GENERATION BROADBAND CREDIT- The next generation broadband credit for any taxable year is equal to 20 percent of the qualified broadband expenditures incurred with respect to qualified equipment providing next generation broadband services to qualified subscribers and taken into account with respect to such taxable year.CommentsClose CommentsPermalink





‘(c) When Expenditures Taken Into Account- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- Qualified broadband expenditures with respect to qualified equipment shall be taken into account with respect to the first taxable year in which--CommentsClose CommentsPermalink





‘(A) current generation broadband services are provided through such equipment to qualified subscribers, orCommentsClose CommentsPermalink





‘(B) next generation broadband services are provided through such equipment to qualified subscribers.CommentsClose CommentsPermalink





‘(2) LIMITATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Qualified broadband expenditures shall be taken into account under paragraph (1) only with respect to qualified equipment--CommentsClose CommentsPermalink





‘(i) the original use of which commences with the taxpayer, andCommentsClose CommentsPermalink





‘(ii) which is placed in service, after December 31, 2008, and before January 1, 2011.CommentsClose CommentsPermalink





‘(B) SALE-LEASEBACKS- For purposes of subparagraph (A), if property--CommentsClose CommentsPermalink





‘(i) is originally placed in service after December 31, 2008, by any person, andCommentsClose CommentsPermalink





‘(ii) sold and leased back by such person within 3 months after the date such property was originally placed in service,CommentsClose CommentsPermalink





such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback referred to in clause (ii).CommentsClose CommentsPermalink





‘(d) Special Allocation Rules for Current Generation Broadband Services- For purposes of determining the current generation broadband credit under subsection (a)(1) with respect to qualified equipment through which current generation broadband services are provided, if the qualified equipment is capable of serving both qualified subscribers and other subscribers, the qualified broadband expenditures shall be multiplied by a fraction--CommentsClose CommentsPermalink





‘(1) the numerator of which is the sum of the number of potential qualified subscribers within the rural areas and the underserved areas and the unserved areas which the equipment is capable of serving with current generation broadband services, andCommentsClose CommentsPermalink





‘(2) the denominator of which is the total potential subscriber population of the area which the equipment is capable of serving with current generation broadband services.CommentsClose CommentsPermalink





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





‘(1) ANTENNA- The term ‘antenna’ means any device used to transmit or receive signals through the electromagnetic spectrum, including satellite equipment.CommentsClose CommentsPermalink





‘(2) CABLE OPERATOR- The term ‘cable operator’ has the meaning given such term by section 602(5) of the Communications Act of 1934 (47 U.S.C. 522(5)).CommentsClose CommentsPermalink





‘(3) COMMERCIAL MOBILE SERVICE CARRIER- The term ‘commercial mobile service carrier’ means any person authorized to provide commercial mobile radio service as defined in section 20.3 of title 47, Code of Federal Regulations.CommentsClose CommentsPermalink





‘(4) CURRENT GENERATION BROADBAND SERVICE- The term ‘current generation broadband service’ means the transmission of signals at a rate of at least 5,000,000 bits per second to the subscriber and at least 1,000,000 bits per second from the subscriber (at least 3,000,000 bits per second to the subscriber and at least 768,000 bits per second from the subscriber in the case of service through radio transmission of energy).CommentsClose CommentsPermalink





‘(5) MULTIPLEXING OR DEMULTIPLEXING- The term ‘multiplexing’ means the transmission of 2 or more signals over a single channel, and the term ‘demultiplexing’ means the separation of 2 or more signals previously combined by compatible multiplexing equipment.CommentsClose CommentsPermalink





‘(6) NEXT GENERATION BROADBAND SERVICE- The term ‘next generation broadband service’ means the transmission of signals at a rate of at least 100,000,000 bits per second to the subscriber (or its equivalent when the data rate is measured before being compressed for transmission) and at least 20,000,000 bits per second from the subscriber (or its equivalent as so measured).CommentsClose CommentsPermalink





‘(7) NONRESIDENTIAL SUBSCRIBER- The term ‘nonresidential subscriber’ means any person who purchases broadband services which are delivered to the permanent place of business of such person.CommentsClose CommentsPermalink





‘(8) OPEN VIDEO SYSTEM OPERATOR- The term ‘open video system operator’ means any person authorized to provide service under section 653 of the Communications Act of 1934 (47 U.S.C. 573).CommentsClose CommentsPermalink





‘(9) OTHER WIRELESS CARRIER- The term ‘other wireless carrier’ means any person (other than a telecommunications carrier, commercial mobile service carrier, cable operator, open video system operator, or satellite carrier) providing current generation broadband services or next generation broadband service to subscribers through the radio transmission of energy.CommentsClose CommentsPermalink





‘(10) PACKET SWITCHING- The term ‘packet switching’ means controlling or routing the path of a digitized transmission signal which is assembled into packets or cells.CommentsClose CommentsPermalink





‘(11) PROVIDER- The term ‘provider’ means, with respect to any qualified equipment any--CommentsClose CommentsPermalink





‘(A) cable operator,CommentsClose CommentsPermalink





‘(B) commercial mobile service carrier,CommentsClose CommentsPermalink





‘(C) open video system operator,CommentsClose Comments