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S 350 PCS1SCommentsClose CommentsPermalink

(Star Print)CommentsClose CommentsPermalink

Calendar No. 20CommentsClose CommentsPermalink

111th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 350CommentsClose CommentsPermalink

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

IN THE SENATE OF THE UNITED STATESCommentsClose 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

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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

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 CommentsPermalink





‘(D) satellite carrier,CommentsClose CommentsPermalink





‘(E) telecommunications carrier, orCommentsClose CommentsPermalink





‘(F) other wireless carrier,CommentsClose CommentsPermalink





providing current generation broadband services or next generation broadband services to subscribers through such qualified equipment.CommentsClose CommentsPermalink





‘(12) PROVISION OF SERVICES- A provider shall be treated as providing services to 1 or more subscribers if--CommentsClose CommentsPermalink





‘(A) such a subscriber has been passed by the provider’s equipment and can be connected to such equipment for a standard connection fee,CommentsClose CommentsPermalink





‘(B) the provider is physically able to deliver current generation broadband services or next generation broadband services, as applicable, to such a subscriber without making more than an insignificant investment with respect to such subscriber,CommentsClose CommentsPermalink





‘(C) the provider has made reasonable efforts to make such subscribers aware of the availability of such services,CommentsClose CommentsPermalink





‘(D) such services have been purchased by 1 or more such subscribers, andCommentsClose CommentsPermalink





‘(E) such services are made available to such subscribers at average prices comparable to those at which the provider makes available similar services in any areas in which the provider makes available such services.CommentsClose CommentsPermalink





‘(13) QUALIFIED EQUIPMENT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified equipment’ means property with respect to which depreciation (or amortization in lieu of depreciation) is allowable and which provides current generation broadband services or next generation broadband services--CommentsClose CommentsPermalink





‘(i) at least a majority of the time during periods of maximum demand to each subscriber who is utilizing such services, andCommentsClose CommentsPermalink





‘(ii) in a manner substantially the same as such services are provided by the provider to subscribers through equipment with respect to which no credit is allowed under subsection (a)(1).CommentsClose CommentsPermalink





‘(B) ONLY CERTAIN INVESTMENT TAKEN INTO ACCOUNT- Except as provided in subparagraph (C) or (D), equipment shall be taken into account under subparagraph (A) only to the extent it--CommentsClose CommentsPermalink





‘(i) extends from the last point of switching to the outside of the unit, building, dwelling, or office owned or leased by a subscriber in the case of a telecommunications carrier or broadband-over-powerline operator,CommentsClose CommentsPermalink





‘(ii) extends from the customer side of the mobile telephone switching office to a transmission/receive antenna (including such antenna) owned or leased by a subscriber in the case of a commercial mobile service carrier,CommentsClose CommentsPermalink





‘(iii) extends from the customer side of the headend to the outside of the unit, building, dwelling, or office owned or leased by a subscriber in the case of a cable operator or open video system operator, orCommentsClose CommentsPermalink





‘(iv) extends from a transmission/receive antenna (including such antenna) which transmits and receives signals to or from multiple subscribers, to a transmission/receive antenna (including such antenna) on the outside of the unit, building, dwelling, or office owned or leased by a subscriber in the case of a satellite carrier or other wireless carrier, unless such other wireless carrier is also a telecommunications carrier.CommentsClose CommentsPermalink





‘(C) PACKET SWITCHING EQUIPMENT- Packet switching equipment, regardless of location, shall be taken into account under subparagraph (A) only if it is deployed in connection with equipment described in subparagraph (B) and is uniquely designed to perform the function of packet switching for current generation broadband services or next generation broadband services, but only if such packet switching is the last in a series of such functions performed in the transmission of a signal to a subscriber or the first in a series of such functions performed in the transmission of a signal from a subscriber.CommentsClose CommentsPermalink





‘(D) MULTIPLEXING AND DEMULTIPLEXING EQUIPMENT- Multiplexing and demultiplexing equipment shall be taken into account under subparagraph (A) only to the extent it is deployed in connection with equipment described in subparagraph (B) and is uniquely designed to perform the function of multiplexing and demultiplexing packets or cells of data and making associated application adaptions, but only if such multiplexing or demultiplexing equipment is located between packet switching equipment described in subparagraph (C) and the subscriber’s premises.CommentsClose CommentsPermalink





‘(14) QUALIFIED BROADBAND EXPENDITURE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified broadband expenditure’ means any amount--CommentsClose CommentsPermalink





‘(i) chargeable to capital account with respect to the purchase and installation of qualified equipment (including any upgrades thereto) for which depreciation is allowable under section 168, andCommentsClose CommentsPermalink





‘(ii) incurred after December 31, 2008, and before January 1, 2011.CommentsClose CommentsPermalink





‘(B) CERTAIN SATELLITE EXPENDITURES EXCLUDED- Such term shall not include any expenditure with respect to the launching of any satellite equipment.CommentsClose CommentsPermalink





‘(C) LEASED EQUIPMENT- Such term shall include so much of the purchase price paid by the lessor of equipment subject to a lease described in subsection (c)(2)(B) as is attributable to expenditures incurred by the lessee which would otherwise be described in subparagraph (A).CommentsClose CommentsPermalink





‘(15) QUALIFIED SUBSCRIBER- The term ‘qualified subscriber’ means--CommentsClose CommentsPermalink





‘(A) with respect to the provision of current generation broadband services--CommentsClose CommentsPermalink





‘(i) any nonresidential subscriber maintaining a permanent place of business in a rural area, an underserved area, or an unserved area, orCommentsClose CommentsPermalink





‘(ii) any residential subscriber residing in a dwelling located in a rural area, an underserved area, or an unserved area which is not a saturated market, andCommentsClose CommentsPermalink





‘(B) with respect to the provision of next generation broadband services--CommentsClose CommentsPermalink





‘(i) any nonresidential subscriber maintaining a permanent place of business in a rural area, an underserved area, or an unserved area , orCommentsClose CommentsPermalink





‘(ii) any residential subscriber.CommentsClose CommentsPermalink





‘(16) RESIDENTIAL SUBSCRIBER- The term ‘residential subscriber’ means any individual who purchases broadband services which are delivered to such individual’s dwelling.CommentsClose CommentsPermalink





‘(17) RURAL AREA- The term ‘rural area’ means any census tract which--CommentsClose CommentsPermalink





‘(A) is not within 10 miles of any incorporated or census designated place containing more than 25,000 people, andCommentsClose CommentsPermalink





‘(B) is not within a county or county equivalent which has an overall population density of more than 500 people per square mile of land.CommentsClose CommentsPermalink





‘(18) RURAL SUBSCRIBER- The term ‘rural subscriber’ means any residential subscriber residing in a dwelling located in a rural area or nonresidential subscriber maintaining a permanent place of business located in a rural area.CommentsClose CommentsPermalink





‘(19) SATELLITE CARRIER- The term ‘satellite carrier’ means any person using the facilities of a satellite or satellite service licensed by the Federal Communications Commission and operating in the Fixed-Satellite Service under part 25 of title 47 of the Code of Federal Regulations or the Direct Broadcast Satellite Service under part 100 of title 47 of such Code to establish and operate a channel of communications for distribution of signals, and owning or leasing a capacity or service on a satellite in order to provide such point-to-multipoint distribution.CommentsClose CommentsPermalink





‘(20) SATURATED MARKET- The term ‘saturated market’ means any census tract in which, as of the date of the enactment of this section--CommentsClose CommentsPermalink





‘(A) current generation broadband services have been provided by a single provider to 85 percent or more of the total number of potential residential subscribers residing in dwellings located within such census tract, andCommentsClose CommentsPermalink





‘(B) such services can be utilized--CommentsClose CommentsPermalink





‘(i) at least a majority of the time during periods of maximum demand by each such subscriber who is utilizing such services, andCommentsClose CommentsPermalink





‘(ii) in a manner substantially the same as such services are provided by the provider to subscribers through equipment with respect to which no credit is allowed under subsection (a)(1).CommentsClose CommentsPermalink





‘(21) SUBSCRIBER- The term ‘subscriber’ means any person who purchases current generation broadband services or next generation broadband services.CommentsClose CommentsPermalink





‘(22) TELECOMMUNICATIONS CARRIER- The term ‘telecommunications carrier’ has the meaning given such term by section 3(44) of the Communications Act of 1934 (47 U.S.C. 153(44)), but--CommentsClose CommentsPermalink





‘(A) includes all members of an affiliated group of which a telecommunications carrier is a member, andCommentsClose CommentsPermalink





‘(B) does not include any commercial mobile service carrier.CommentsClose CommentsPermalink





‘(23) TOTAL POTENTIAL SUBSCRIBER POPULATION- The term ‘total potential subscriber population’ means, with respect to any area and based on the most recent census data, the total number of potential residential subscribers residing in dwellings located in such area and potential nonresidential subscribers maintaining permanent places of business located in such area.CommentsClose CommentsPermalink





‘(24) UNDERSERVED AREA- The term ‘underserved area’ means any census tract which is located in--CommentsClose CommentsPermalink





‘(A) an empowerment zone or enterprise community designated under section 1391,CommentsClose CommentsPermalink





‘(B) the District of Columbia Enterprise Zone established under section 1400,CommentsClose CommentsPermalink





‘(C) a renewal community designated under section 1400E, orCommentsClose CommentsPermalink





‘(D) a low-income community designated under section 45D.CommentsClose CommentsPermalink





‘(25) UNDERSERVED SUBSCRIBER- The term ‘underserved subscriber’ means any residential subscriber residing in a dwelling located in an underserved area or nonresidential subscriber maintaining a permanent place of business located in an underserved area.CommentsClose CommentsPermalink





‘(26) UNSERVED AREA- The term ‘unserved area’ means any census tract in which no current generation broadband services are provided, as certified by the State in which such tract is located not later than September 30, 2009.CommentsClose CommentsPermalink





‘(27) UNSERVED SUBSCRIBER- The term ‘unserved subscriber’ means any residential subscriber residing in a dwelling located in an unserved area or nonresidential subscriber maintaining a permanent place of business located in an unserved area.’.CommentsClose CommentsPermalink





(b) Credit To Be Part of Investment Credit- Section 46 (relating to the amount of investment credit), as amended by this Act, is amended by striking ‘and’ at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting ‘, and’, and by adding at the end the following:CommentsClose CommentsPermalink





‘(6) the broadband Internet access credit.’CommentsClose CommentsPermalink





(c) Special Rule for Mutual or Cooperative Telephone Companies- Section 501(c)(12)(B) (relating to list of exempt organizations) is amended by striking ‘or’ at the end of clause (iii), by striking the period at the end of clause (iv) and inserting ‘, or’, and by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(v) from the sale of property subject to a lease described in section 48D(c)(2)(B), but only to the extent such income does not in any year exceed an amount equal to the credit for qualified broadband expenditures which would be determined under section 48D for such year if the mutual or cooperative telephone company was not exempt from taxation and was treated as the owner of the property subject to such lease.’.CommentsClose CommentsPermalink





(d) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 49(a)(1)(C), as amended by this Act, is amended by striking ‘and’ at the end of clause (iv), by striking the period at the end of clause (v) and inserting ‘, and’, and by adding after clause (v) the following new clause:CommentsClose CommentsPermalink





‘(vi) the portion of the basis of any qualified equipment attributable to qualified broadband expenditures under section 48D.’.CommentsClose CommentsPermalink





(2) The table of sections for subpart E of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 48C the following:CommentsClose CommentsPermalink





‘Sec. 48D. Broadband internet access credit.’.CommentsClose CommentsPermalink





(e) Designation of Census Tracts-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary of the Treasury shall, not later than 90 days after the date of the enactment of this Act, designate and publish those census tracts meeting the criteria described in paragraphs (17), (23), (24), and (26) of section 48D(e) of the Internal Revenue Code of 1986 (as added by this section). In making such designations, the Secretary of the Treasury shall consult with such other departments and agencies as the Secretary determines appropriate.CommentsClose CommentsPermalink





(2) SATURATED MARKET-CommentsClose CommentsPermalink





(A) IN GENERAL- For purposes of designating and publishing those census tracts meeting the criteria described in subsection (e)(20) of such section 48D--CommentsClose CommentsPermalink





(i) the Secretary of the Treasury shall prescribe not later than 30 days after the date of the enactment of this Act the form upon which any provider which takes the position that it meets such criteria with respect to any census tract shall submit a list of such census tracts (and any other information required by the Secretary) not later than 60 days after the date of the publication of such form, andCommentsClose CommentsPermalink





(ii) the Secretary of the Treasury shall publish an aggregate list of such census tracts submitted and the applicable providers not later than 30 days after the last date such submissions are allowed under clause (i).CommentsClose CommentsPermalink





(B) NO SUBSEQUENT LISTS REQUIRED- The Secretary of the Treasury shall not be required to publish any list of census tracts meeting such criteria subsequent to the list described in subparagraph (A)(ii).CommentsClose CommentsPermalink





(C) AUTHORITY TO DISREGARD FALSE SUBMISSIONS- In addition to imposing any other applicable penalties, the Secretary of the Treasury shall have the discretion to disregard any form described in subparagraph (A)(i) on which a provider knowingly submitted false information.CommentsClose CommentsPermalink





(f) Other Regulatory Matters-CommentsClose CommentsPermalink





(1) PROHIBITION- No Federal or State agency or instrumentality shall adopt regulations or ratemaking procedures that would have the effect of eliminating or reducing any credit or portion thereof allowed under section 48D of the Internal Revenue Code of 1986 (as added by this section) or otherwise subverting the purpose of this section.CommentsClose CommentsPermalink





(2) TREASURY REGULATORY AUTHORITY- It is the intent of Congress in providing the broadband Internet access credit under section 48D of the Internal Revenue Code of 1986 (as added by this section) to provide incentives for the purchase, installation, and connection of equipment and facilities offering expanded broadband access to the Internet for users in certain low income and rural areas of the United States, as well as to residential users nationwide, in a manner that maintains competitive neutrality among the various classes of providers of broadband services. Accordingly, the Secretary of the Treasury shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of section 48D of such Code, including--CommentsClose CommentsPermalink





(A) regulations to determine how and when a taxpayer that incurs qualified broadband expenditures satisfies the requirements of section 48D of such Code to provide broadband services, andCommentsClose CommentsPermalink





(B) regulations describing the information, records, and data taxpayers are required to provide the Secretary to substantiate compliance with the requirements of section 48D of such Code.CommentsClose CommentsPermalink





(g) Effective Date- The amendments made by this section shall apply to expenditures incurred after December 31, 2008.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.

(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, andCommentsClose 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, orCommentsClose CommentsPermalink





(B) is 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 D--Manufacturing Recovery ProvisionsCommentsClose CommentsPermalink

SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE PROPERTY.

(a) In General- Subparagraph (C) of section 144(a)(12) is amended--CommentsClose CommentsPermalink





(1) by striking ‘For purposes of this paragraph, the term’ and inserting ‘For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The term’, andCommentsClose CommentsPermalink





(2) by striking the last sentence and inserting the following new clauses:CommentsClose CommentsPermalink





‘(ii) CERTAIN FACILITIES INCLUDED- Such term includes facilities which are directly related and ancillary to a manufacturing facility (determined without regard to this clause) if--CommentsClose CommentsPermalink





‘(I) such facilities are located on the same site as the manufacturing facility, andCommentsClose CommentsPermalink





‘(II) not more than 25 percent of the net proceeds of the issue are used to provide such facilities.CommentsClose CommentsPermalink





‘(iii) SPECIAL RULES FOR BONDS ISSUED IN 2009 AND 2010- In the case of any issue made after the date of enactment of this clause and before January 1, 2011, clause (ii) shall not apply and the net proceeds from a bond shall be considered to be used to provide a manufacturing facility if such proceeds are used to provide--CommentsClose CommentsPermalink





‘(I) a facility which is used in the creation or production of intangible property which is described in section 197(d)(1)(C)(iii), orCommentsClose CommentsPermalink





‘(II) a facility which is functionally related and subordinate to a manufacturing facility (determined without regard to this subclause) if such facility is located on the same site as the manufacturing facility.’.CommentsClose CommentsPermalink





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

SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES.

(a) In General- Section 46 (relating to amount of credit) is amended by striking ‘and’ at the end of paragraph (3), by striking the period at the end of paragraph (4), and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(5) the qualifying advanced energy project credit.’.CommentsClose CommentsPermalink





(b) Amount of Credit- Subpart E of part IV of subchapter A of chapter 1 (relating to rules for computing investment credit) is amended by inserting after section 48B the following new section:CommentsClose CommentsPermalink

‘SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

‘(a) In General- For purposes of section 46, the qualifying advanced energy project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying advanced energy project of the taxpayer.CommentsClose CommentsPermalink





‘(b) Qualified Investment-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying advanced energy project--CommentsClose CommentsPermalink





‘(A)(i) the construction, reconstruction, or erection of which is completed by the taxpayer after October 31, 2008, orCommentsClose CommentsPermalink





‘(ii) which is acquired by the taxpayer if the original use of such eligible property commences with the taxpayer after October 31, 2008, andCommentsClose CommentsPermalink





‘(B) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.CommentsClose CommentsPermalink





‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED PROPERTY- Rules similar to section 48(a)(4) (without regard to subparagraph (D) thereof) shall apply for purposes of this section.CommentsClose CommentsPermalink





‘(3) CERTAIN QUALIFIED PROGRESS EXPENDITURES RULES MADE APPLICABLE- Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.CommentsClose CommentsPermalink





‘(4) LIMITATION- The amount which is treated for all taxable years with respect to any qualifying advanced energy project shall not exceed the amount designated by the Secretary as eligible for the credit under this section.CommentsClose CommentsPermalink





‘(c) Definitions-CommentsClose CommentsPermalink





‘(1) QUALIFYING ADVANCED ENERGY PROJECT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualifying advanced energy project’ means a project--CommentsClose CommentsPermalink





‘(i) which re-equips, expands, or establishes a manufacturing facility for the production of property which is--CommentsClose CommentsPermalink





‘(I) designed to be used to produce energy from the sun, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources,CommentsClose CommentsPermalink





‘(II) designed to manufacture fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles,CommentsClose CommentsPermalink





‘(III) designed to manufacture electric grids to support the transmission of intermittent sources of renewable energy,CommentsClose CommentsPermalink





‘(IV) designed to capture and sequester carbon dioxide emissions, orCommentsClose CommentsPermalink





‘(V) designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies), andCommentsClose CommentsPermalink





‘(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section.CommentsClose CommentsPermalink





‘(B) EXCEPTION- Such term shall not include any portion of a project for the production of any property which is used in the refining or blending of any transportation fuel (other than renewable fuels).CommentsClose CommentsPermalink





‘(2) ELIGIBLE PROPERTY- The term ‘eligible property’ means any property which is part of a qualifying advanced energy project and is necessary for the production of property described in paragraph (1)(A)(i).CommentsClose CommentsPermalink





‘(d) Qualifying Advanced Energy Project Program-CommentsClose CommentsPermalink





‘(1) ESTABLISHMENT-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors.CommentsClose CommentsPermalink





‘(B) LIMITATION- The total amount of credits that may be allocated under the program shall not exceed $2,000,000,000.CommentsClose CommentsPermalink





‘(2) CERTIFICATION-CommentsClose CommentsPermalink





‘(A) APPLICATION PERIOD- Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 3-year period beginning on the date the Secretary establishes the program under paragraph (1).CommentsClose CommentsPermalink





‘(B) TIME TO MEET CRITERIA FOR CERTIFICATION- Each applicant for certification shall have 2 years from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met.CommentsClose CommentsPermalink





‘(C) PERIOD OF ISSUANCE- An applicant which receives a certification shall have 5 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period then the certification shall no longer be valid.CommentsClose CommentsPermalink





‘(3) SELECTION CRITERIA- In determining which qualifying advanced energy projects to certify under this section, the Secretary shall take into consideration only those projects where there is a reasonable expectation of commercial viability.CommentsClose CommentsPermalink





‘(4) REVIEW AND REDISTRIBUTION-CommentsClose CommentsPermalink





‘(A) REVIEW- Not later than 6 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of the date which is 6 years after the date of enactment of this section.CommentsClose CommentsPermalink





‘(B) REDISTRIBUTION- The Secretary may reallocate credits awarded under this section if the Secretary determines that--CommentsClose CommentsPermalink





‘(i) there is an insufficient quantity of qualifying applications for certification pending at the time of the review, orCommentsClose CommentsPermalink





‘(ii) any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project.CommentsClose CommentsPermalink





‘(C) REALLOCATION- If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification.CommentsClose CommentsPermalink





‘(5) DISCLOSURE OF ALLOCATIONS- The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.CommentsClose CommentsPermalink





‘(e) Denial of Double Benefit- A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48, 48A, or 48B.’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 49(a)(1)(C) 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 after clause (iv) the following new clause:CommentsClose CommentsPermalink





‘(v) the basis of any property which is part of a qualifying advanced energy project under section 48C.’.CommentsClose CommentsPermalink





(2) The table of sections for subpart E of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 48B the following new item:CommentsClose CommentsPermalink





‘48C. Qualifying advanced energy project credit.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to periods after the date of the enactment of this Act, 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

Subtitle E--Economic Recovery ToolsCommentsClose CommentsPermalink

SEC. 1401. 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--CommentsClose CommentsPermalink





‘(A) by allocating 1 percent of each such limitation to each State, andCommentsClose CommentsPermalink





‘(B) by allocating the remainder of each such limitation among the States in the proportion that each 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, overCommentsClose 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, rate of home foreclosures, or general distress, andCommentsClose 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 6431, andCommentsClose CommentsPermalink





‘(2) subsection (b) of such section shall be applied by substituting ‘40 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 build America 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, andCommentsClose 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, andCommentsClose 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, andCommentsClose 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, andCommentsClose 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)), andCommentsClose 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. 1402. 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,CommentsClose CommentsPermalink





‘(B) the Indian tribal government issuing such bond and any instrumentality of such Indian tribal government shall be treated as a State for purposes of section 141, andCommentsClose CommentsPermalink





‘(C) 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 would be exempt from tax under section 103 if issued by a State or local government, andCommentsClose 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, orCommentsClose 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 study 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

SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT.

(a) Increase in National Limitation-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 45D(f)(1) is amended--CommentsClose CommentsPermalink





(A) by striking ‘and’ at the end of subparagraph (C),CommentsClose CommentsPermalink





(B) by striking ‘, 2007, 2008, and 2009.’ in subparagraph (D), and inserting ‘and 2007,’, andCommentsClose CommentsPermalink





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





‘(E) $5,000,000,000 for 2008, andCommentsClose CommentsPermalink





‘(F) $5,000,000,000 for 2009.’.CommentsClose CommentsPermalink





(2) SPECIAL RULE FOR ALLOCATION OF INCREASED 2008 LIMITATION- The amount of the increase in the new markets tax credit limitation for calendar year 2008 by reason of the amendments made by subsection (a) shall be allocated in accordance with section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified community development entities (as defined in section 45D(c) of such Code) which--CommentsClose CommentsPermalink





(A) submitted an allocation application with respect to calendar year 2008, andCommentsClose CommentsPermalink





(B)(i) did not receive an allocation for such calendar year, orCommentsClose CommentsPermalink





(ii) received an allocation for such calendar year in an amount less than the amount requested in the allocation application.CommentsClose CommentsPermalink





(b) Alternative Minimum Tax Relief-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 38(c)(4)(B) is amended by redesignating clauses (v) through (viii) as clauses (vi) through (ix), respectively, and by inserting after clause (iv) the following new clause:CommentsClose CommentsPermalink





‘(v) the credit determined under section 45D to the extent that such credit is attributable to a qualified equity investment which is designated as such under section 45D(b)(1)(C) pursuant to an allocation of the new markets tax credit limitation for calendar year 2009,’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendments made by this subsection shall apply to credits determined under section 45D of the Internal Revenue Code of 1986 in taxable years ending after the date of the enactment of this Act, and to carrybacks of such credits.CommentsClose CommentsPermalink

Subtitle F--Infrastructure Financing ToolsCommentsClose 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 QUALIFIED FINANCINGS- In the case of a qualified financing issue issued during 2009 or 2010--CommentsClose CommentsPermalink





‘(I) subparagraph (F) shall not apply, andCommentsClose 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 which is 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 ‘qualified 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 1 or more ultimate borrowers each 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





‘(vi) 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 amendment 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 During 2009 and 2010- 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

SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS.

(a) In General- Paragraph (1) of section 142(i) is amended by striking ‘operate at speeds in excess of’ and inserting ‘be capable of attaining a maximum speed in excess of’.CommentsClose CommentsPermalink





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

PART II--DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.

Subsection (b) of section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 is amended by striking ‘December 31, 2010’ and inserting ‘December 31, 2011’.CommentsClose CommentsPermalink

PART III--TAX CREDIT BONDS FOR SCHOOLS

SEC. 1521. 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, andCommentsClose 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 limitation amount allocated under subsection (d) for such calendar year to such issuer.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) $5,000,000,000 for 2009,CommentsClose CommentsPermalink





‘(2) $5,000,000,000 for 2010, andCommentsClose CommentsPermalink





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





‘(d) Limitation Allocated Among States-CommentsClose CommentsPermalink





‘(1) IN GENERAL- 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 amount allocated to such State under this subsection for such year 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) MINIMUM PERCENTAGE- A State’s minimum percentage for any calendar year is equal to the product of--CommentsClose CommentsPermalink





‘(i) the quotient of--CommentsClose CommentsPermalink





‘(I) the amount the State is eligible to receive under section 1124(d) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333(d)) for the most recent fiscal year ending before such calendar year, divided byCommentsClose CommentsPermalink





‘(II) the amount all States are eligible to receive under section 1124 of such Act (20 U.S.C. 6333) for such fiscal year, multiplied byCommentsClose CommentsPermalink





‘(ii) 100.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) Carryover of Unused Limitation- If for any calendar year--CommentsClose CommentsPermalink





‘(1) the amount allocated under subsection (d) to any State, exceedsCommentsClose 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).’.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 the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 1522. 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 IV--BUILD AMERICA BONDS

SEC. 1531. BUILD AMERICA 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--Build America Bonds

‘Sec. 54AA. Build America bonds.CommentsClose CommentsPermalink

‘SEC. 54AA. BUILD AMERICA BONDS.

‘(a) In General- If a taxpayer holds a build America 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 build America 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, overCommentsClose 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) Build America Bond-CommentsClose CommentsPermalink





‘(1) IN GENERAL- For purposes of this section, the term ‘build America 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,CommentsClose CommentsPermalink





‘(B) such obligation is issued before January 1, 2012, andCommentsClose CommentsPermalink





‘(C) 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 build America bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection (a) or section 6431,CommentsClose CommentsPermalink





‘(B) the yield on a build America bond shall be determined without regard to the credit allowed under subsection (a), andCommentsClose CommentsPermalink





‘(C) a bond shall not be treated as a build America 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 build America bond is entitled to a payment of interest under such bond.CommentsClose CommentsPermalink





‘(f) Special Rules-CommentsClose CommentsPermalink





‘(1) INTEREST ON BUILD AMERICA BONDS INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES- For purposes of this title, interest on any build America 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 6431.CommentsClose CommentsPermalink





‘(2) QUALIFIED BOND- For purposes of this subsection, the term ‘qualified bond’ means any build America 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, andCommentsClose 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 6431.’.CommentsClose CommentsPermalink





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

‘SEC. 6431. 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(g).’.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 6431,’.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. Build America bonds.’.CommentsClose CommentsPermalink





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





‘Sec. 6431. Credit for qualified bonds allowed to issuer.’.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 build America 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

Subtitle G--Economic Recovery Payments to Certain IndividualsCommentsClose CommentsPermalink

SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL SECURITY, SUPPLEMENTAL SECURITY INCOME, RAILROAD RETIREMENT BENEFITS, AND VETERANS DISABILITY COMPENSATION OR PENSION BENEFITS.

(a) Authority To Make Payments-CommentsClose CommentsPermalink





(1) ELIGIBILITY-CommentsClose CommentsPermalink





(A) IN GENERAL- Subject to paragraph (5)(B), the Secretary of the Treasury shall make a $300 payment to each individual who, for any month during the 3-month period ending with the month which ends prior to the month that includes the date of the enactment of this Act, is entitled to a benefit payment described in clause (i), (ii), or (iii) of subparagraph (B) or is eligible for a SSI cash benefit described in subparagraph (C).CommentsClose CommentsPermalink





(B) BENEFIT PAYMENT DESCRIBED- For purposes of subparagraph (A):CommentsClose CommentsPermalink





(i) TITLE II BENEFIT- A benefit payment described in this clause is a monthly insurance benefit payable (without regard to sections 202(j)(1) and 223(b) of the Social Security Act (42 U.S.C. 402(j)(1), 423(b)) under--CommentsClose CommentsPermalink





(I) section 202(a) of such Act (42 U.S.C. 402(a));CommentsClose CommentsPermalink





(II) section 202(b) of such Act (42 U.S.C. 402(b));CommentsClose CommentsPermalink





(III) section 202(c) of such Act (42 U.S.C. 402(c));CommentsClose CommentsPermalink





(IV) section 202(d)(1)(B)(ii) of such Act (42 U.S.C. 402(d)(1)(B)(ii));CommentsClose CommentsPermalink





(V) section 202(e) of such Act (42 U.S.C. 402(e));CommentsClose CommentsPermalink





(VI) section 202(f) of such Act (42 U.S.C. 402(f));CommentsClose CommentsPermalink





(VII) section 202(g) of such Act (42 U.S.C. 402(g));CommentsClose CommentsPermalink





(VIII) section 202(h) of such Act (42 U.S.C. 402(h));CommentsClose CommentsPermalink





(IX) section 223(a) of such Act (42 U.S.C. 423(a));CommentsClose CommentsPermalink





(X) section 227 of such Act (42 U.S.C. 427); orCommentsClose CommentsPermalink





(XI) section 228 of such Act (42 U.S.C. 428).CommentsClose CommentsPermalink





(ii) RAILROAD RETIREMENT BENEFIT- A benefit payment described in this clause is a monthly annuity or pension payment payable (without regard to section 5(a)(ii) of the Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii)) under--CommentsClose CommentsPermalink





(I) section 2(a)(1) of such Act (45 U.S.C. 231a(a)(1));CommentsClose CommentsPermalink





(II) section 2(c) of such Act (45 U.S.C. 231a(c));CommentsClose CommentsPermalink





(III) section 2(d)(1)(i) of such Act (45 U.S.C. 231a(d)(1)(i));CommentsClose CommentsPermalink





(IV) section 2(d)(1)(ii) of such Act (45 U.S.C. 231a(d)(1)(ii));CommentsClose CommentsPermalink





(V) section 2(d)(1)(iii)(C) of such Act to an adult disabled child (45 U.S.C. 231a(d)(1)(iii)(C));CommentsClose CommentsPermalink





(VI) section 2(d)(1)(iv) of such Act (45 U.S.C. 231a(d)(1)(iv));CommentsClose CommentsPermalink





(VII) section 2(d)(1)(v) of such Act (45 U.S.C. 231a(d)(1)(v)); orCommentsClose CommentsPermalink





(VIII) section 7(b)(2) of such Act (45 U.S.C. 231f(b)(2)) with respect to any of the benefit payments described in clause (i) of this subparagraph.CommentsClose CommentsPermalink





(iii) VETERANS BENEFIT- A benefit payment described in this clause is a compensation or pension payment payable under--CommentsClose CommentsPermalink





(I) section 1110, 1117, 1121, 1131, 1141, or 1151 of title 38, United States Code;CommentsClose CommentsPermalink





(II) section 1310, 1312, 1313, 1315, 1316, or 1318 of title 38, United States Code;CommentsClose CommentsPermalink





(III) section 1513, 1521, 1533, 1536, 1537, 1541, 1542, or 1562 of title 38, United States Code; orCommentsClose CommentsPermalink





(IV) section 1805, 1815, or 1821 of title 38, United States Code,CommentsClose CommentsPermalink





to a veteran, surviving spouse, child, or parent as described in paragraph (2), (3), (4)(A)(ii), or (5) of section 101, title 38, United States Code, who received that benefit during any month within the 3 month period ending with the month which ends prior to the month that includes the date of the enactment of this Act.CommentsClose CommentsPermalink





(C) SSI CASH BENEFIT DESCRIBED- A SSI cash benefit described in this subparagraph is a cash benefit payable under section 1611 (other than under subsection (e)(1)(B) of such section) or 1619(a) of the Social Security Act (42 U.S.C. 1382, 1382h).CommentsClose CommentsPermalink





(2) REQUIREMENT- A payment shall be made under paragraph (1) only to individuals who reside in 1 of the 50 States, the District of Columbia, Puerto Rico, Guam, the United States Virgin Islands, American Samoa, or the Northern Mariana Islands. For purposes of the preceding sentence, the determination of the individual’s residence shall be based on the current address of record under a program specified in paragraph (1).CommentsClose CommentsPermalink





(3) NO DOUBLE PAYMENTS- An individual shall be paid only 1 payment under this section, regardless of whether the individual is entitled to, or eligible for, more than 1 benefit or cash payment described in paragraph (1).CommentsClose CommentsPermalink





(4) LIMITATION- A payment under this section shall not be made--CommentsClose CommentsPermalink





(A) in the case of an individual entitled to a benefit specified in paragraph (1)(B)(i) or paragraph (1)(B)(ii)(VIII) if, for the most recent month of such individual’s entitlement in the 3-month period described in paragraph (1), such individual’s benefit under such paragraph was not payable by reason of subsection (x) or (y) of section 202 the Social Security Act (42 U.S.C. 402) or section 1129A of such Act (42 U.S.C. 1320a-8a);CommentsClose CommentsPermalink





(B) in the case of an individual entitled to a benefit specified in paragraph (1)(B)(iii) if, for the most recent month of such individual’s entitlement in the 3-month period described in paragraph (1), such individual’s benefit under such paragraph was not payable, or was reduced, by reason of section 1505, 5313, or 5313B of title 38, United States Code;CommentsClose CommentsPermalink





(C) in the case of an individual entitled to a benefit specified in paragraph (1)(C) if, for such most recent month, such individual’s benefit under such paragraph was not payable by reason of subsection (e)(1)(A) or (e)(4) of section 1611 (42 U.S.C. 1382) or section 1129A of such Act (42 U.S.C. 1320a-8a); orCommentsClose CommentsPermalink





(D) in the case of any individual whose date of death occurs before the date on which the individual is certified under subsection (b) to receive a payment under this section.CommentsClose CommentsPermalink





(5) TIMING AND MANNER OF PAYMENTS-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary of the Treasury shall commence making payments under this section at the earliest practicable date but in no event later than 120 days after the date of enactment of this Act. The Secretary of the Treasury may make any payment electronically to an individual in such manner as if such payment was a benefit payment or cash benefit to such individual under the applicable program described in subparagraph (B) or (C) of paragraph (1).CommentsClose CommentsPermalink





(B) DEADLINE- No payments shall be made under this section after December 31, 2010, regardless of any determinations of entitlement to, or eligibility for, such payments made after such date.CommentsClose CommentsPermalink





(b) Identification of Recipients- The Commissioner of Social Security, the Railroad Retirement Board, and the Secretary of Veterans Affairs shall certify the individuals entitled to receive payments under this section and provide the Secretary of the Treasury with the information needed to disburse such payments. A certification of an individual shall be unaffected by any subsequent determination or redetermination of the individual’s entitlement to, or eligibility for, a benefit specified in subparagraph (B) or (C) of subsection (a)(1).CommentsClose CommentsPermalink





(c) Treatment of Payments-CommentsClose CommentsPermalink





(1) PAYMENT TO BE DISREGARDED FOR PURPOSES OF ALL FEDERAL AND FEDERALLY ASSISTED PROGRAMS- A payment under subsection (a) shall not be regarded as income and shall not be regarded as a resource for the month of receipt and the following 9 months, for purposes of determining the eligibility of the recipient (or the recipient’s spouse or family) 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





(2) PAYMENT NOT CONSIDERED INCOME FOR PURPOSES OF TAXATION- A payment under subsection (a) shall not be considered as gross income for purposes of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(3) PAYMENTS PROTECTED FROM ASSIGNMENT- The provisions of sections 207 and 1631(d)(1) of the Social Security Act (42 U.S.C. 407, 1383(d)(1)), section 14(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 5301 of title 38, United States Code, shall apply to any payment made under subsection (a) as if such payment was a benefit payment or cash benefit to such individual under the applicable program described in subparagraph (B) or (C) of subsection (a)(1).CommentsClose CommentsPermalink





(4) PAYMENTS SUBJECT TO OFFSET- Notwithstanding paragraph (3), for purposes of section 3716 of title 31, United States Code, any payment made under this section shall not be considered a benefit payment or cash benefit made under the applicable program described in subparagraph (B) or (C) of subsection (a)(1) and all amounts paid shall be subject to offset to collect delinquent debts.CommentsClose CommentsPermalink





(d) Payment to Representative Payees and Fiduciaries-CommentsClose CommentsPermalink





(1) IN GENERAL- In any case in which an individual who is entitled to a payment under subsection (a) and whose benefit payment or cash benefit described in paragraph (1) of that subsection is paid to a representative payee or fiduciary, the payment under subsection (a) shall be made to the individual’s representative payee or fiduciary and the entire payment shall be used only for the benefit of the individual who is entitled to the payment.CommentsClose CommentsPermalink





(2) APPLICABILITY-CommentsClose CommentsPermalink





(A) PAYMENT ON THE BASIS OF A TITLE II OR SSI BENEFIT- Section 1129(a)(3) of the Social Security Act (42 U.S.C. 1320a-8(a)(3)) shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(i) or (1)(C) of subsection (a) in the same manner as such section applies to a payment under title II or XVI of such Act.CommentsClose CommentsPermalink





(B) PAYMENT ON THE BASIS OF A RAILROAD RETIREMENT BENEFIT- Section 13 of the Railroad Retirement Act (45 U.S.C. 231l) shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(ii) of subsection (a) in the same manner as such section applies to a payment under such Act.CommentsClose CommentsPermalink





(C) PAYMENT ON THE BASIS OF A VETERANS BENEFIT- Sections 5502, 6106, and 6108 of title 38, United States Code, shall apply to any payment made on the basis of an entitlement to a benefit specified in paragraph (1)(B)(iii) of subsection (a) in the same manner as those sections apply to a payment under that title.CommentsClose CommentsPermalink





(e) Appropriation- Out of any sums in the Treasury of the United States not otherwise appropriated, the following sums are appropriated for the period of fiscal years 2009 and 2010 to carry out this section:CommentsClose CommentsPermalink





(1) For the Secretary of the Treasury--CommentsClose CommentsPermalink





(A) such sums as may be necessary to make payments under this section; andCommentsClose CommentsPermalink





(B) $57,000,000 for administrative costs incurred in carrying out this section and section 36A of the Internal Revenue Code of 1986 (as added by this Act).CommentsClose CommentsPermalink





(2) For the Commissioner of Social Security, $90,000,000 for the Social Security Administration’s Limitation on Administrative Expenses for costs incurred in carrying out this section.CommentsClose CommentsPermalink





(3) For the Railroad Retirement Board, $1,000,000 for administrative costs incurred in carrying out this section.CommentsClose CommentsPermalink





(4) For the Secretary of Veterans Affairs, $100,000 for the Information Systems Technology account and $7,100,000 for the General Operating Expenses account for administrative costs incurred in carrying out this section.CommentsClose CommentsPermalink

Subtitle H--Trade Adjustment AssistanceCommentsClose CommentsPermalink

SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM.

(a) Assistance for Workers-CommentsClose CommentsPermalink





(1) IN GENERAL- Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is amended by striking ‘December 31, 2007’ and inserting ‘December 31, 2010’.CommentsClose CommentsPermalink





(2) ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE- Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is amended by striking ‘5 years’ and inserting ‘7 years’.CommentsClose CommentsPermalink





(b) Assistance for Firms- Section 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by striking ‘2007, and $4,000,000 for the 3-month period beginning on October 1, 2007,’ and inserting ‘December 31, 2010’.CommentsClose CommentsPermalink





(c) Assistance for Farmers- Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended by striking ‘through 2007’ and all that follows through the end period and inserting ‘through December 31, 2010 to carry out the purposes of this chapter.’.CommentsClose CommentsPermalink





(d) Extension of Termination Dates- Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note) is amended by striking ‘December 31, 2007’ each place it appears and inserting ‘December 31, 2010’.CommentsClose CommentsPermalink





(e) Sense of the Senate Regarding Adjustment Assistance for Communities- It is the sense of the Senate that title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) should be amended to assist any community impacted by trade with economic adjustment through--CommentsClose CommentsPermalink





(1) the coordination of efforts by State and local governments and economic organizations;CommentsClose CommentsPermalink





(2) the coordination of Federal, State, and local resources;CommentsClose CommentsPermalink





(3) the creation of community-based development strategies; andCommentsClose CommentsPermalink





(4) the development and provision of training programs.CommentsClose CommentsPermalink





(f) Effective Date- The amendments made by this section shall be effective as of January 1, 2008.CommentsClose CommentsPermalink

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

SEC. 1801. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000.

(a) In General- Notwithstanding any other provision of law, neither the Secretary of Homeland Security nor any other person may--CommentsClose CommentsPermalink





(1) require repayment of, or attempt in any other way to recoup, any payments described in subsection (b); orCommentsClose CommentsPermalink





(2) offset any past, current, or future distributions of antidumping or countervailing duties assessed with respect to imports from countries that are not parties to the North American Free Trade Agreement in an attempt to recoup any payments described in subsection (b).CommentsClose CommentsPermalink





(b) Payments Described- Payments described in this subsection are payments of antidumping or countervailing duties made pursuant to the Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title VII of the Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 154))) that were--CommentsClose CommentsPermalink





(1) assessed and paid on imports of goods from countries that are parties to the North American Free Trade Agreement; andCommentsClose CommentsPermalink





(2) distributed on or after January 1, 2001, and before January 1, 2006.CommentsClose CommentsPermalink





(c) Payment of Funds Collected or Withheld- Not later than the date that is 60 days after the date of the enactment of this Act, the Secretary of Homeland Security shall--CommentsClose CommentsPermalink





(1) refund any repayments, or any other recoupment, of payments described in subsection (b); andCommentsClose CommentsPermalink





(2) fully distribute any antidumping or countervailing duties that the U.S. Customs and Border Protection is withholding as an offset as described in subsection (a)(2).CommentsClose CommentsPermalink





(d) Limitation- Nothing in this section shall be construed to prevent the Secretary of Homeland Security, or any other person, from requiring repayment of, or attempting to otherwise recoup, any payments described in subsection (b) as a result of--CommentsClose CommentsPermalink





(1) a finding of false statements or other misconduct by a recipient of such a payment; orCommentsClose CommentsPermalink





(2) the reliquidation of an entry with respect to which such a payment was made.CommentsClose CommentsPermalink

Subtitle J--Other ProvisionsCommentsClose CommentsPermalink

SEC. 1901. 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 new 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), andCommentsClose CommentsPermalink





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

SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting ‘$12,140,000,000,000’.CommentsClose CommentsPermalink

TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIESCommentsClose CommentsPermalink

SEC. 2000. SHORT TITLE; TABLE OF CONTENTS.

(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

TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

Sec. 2000. Short title; table of contents.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. Unemployment compensation modernization.CommentsClose CommentsPermalink





Sec. 2004. Temporary assistance for States with advances.CommentsClose CommentsPermalink

Subtitle B--Assistance for Vulnerable Individuals

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





Sec. 2102. Extension of TANF supplemental grants.CommentsClose CommentsPermalink





Sec. 2103. Clarification of authority of States to use TANF funds carried over from prior years to provide TANF benefits and services.CommentsClose CommentsPermalink





Sec. 2104. Temporary reinstatement of authority to provide Federal matching payments for State spending of child support incentive payments.CommentsClose CommentsPermalink

Subtitle A--Unemployment InsuranceCommentsClose 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’; andCommentsClose 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; andCommentsClose 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 th