1.Short title; reference; table
of contents
(a)This Act may be cited
as the Tax Relief and Minimum Wage Act
of 2006
.
(b)Except as otherwise
expressly provided, whenever in this Act 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.
(c)The table of
contents for this Act is as follows:
Sec. 1. Short title; reference; table of contents.
TITLE I—Extension and Expansion of Certain Tax Relief
Provisions
Subtitle A—Extension and Modification of Certain
Provisions
Sec. 101. Deduction for qualified tuition and related
expenses.
Sec. 102. Extension and modification of new markets tax
credit.
Sec. 103. Election to deduct State and local general sales
taxes.
Sec. 104. Extension and modification of research
credit.
Sec. 105. Work opportunity tax credit and welfare-to-work
credit.
Sec. 106. Election to include combat pay as earned income for
purposes of earned income credit.
Sec. 107. Extension and modification of qualified zone academy
bonds.
Sec. 108. Above-the-line deduction for certain expenses of
elementary and secondary school teachers.
Sec. 109. Extension and expansion of expensing of brownfields
remediation costs.
Sec. 110. Tax incentives for investment in the District of
Columbia.
Sec. 111. Indian employment tax credit.
Sec. 112. Accelerated depreciation for business property on
Indian reservations.
Sec. 113. Fifteen-year straight-line cost recovery for
qualified leasehold improvements and qualified restaurant property.
Sec. 114. Cover over of tax on distilled spirits.
Sec. 115. Parity in application of certain limits to mental
health benefits.
Sec. 116. Corporate donations of scientific property used for
research and of computer technology and equipment.
Sec. 117. Availability of medical savings accounts.
Sec. 118. Taxable income limit on percentage depletion for oil
and natural gas produced from marginal properties.
Sec. 119. American Samoa economic development
credit.
Sec. 120. Restructuring of New York Liberty Zone tax
credits.
Sec. 121. Extension of bonus depreciation for certain qualified
Gulf Opportunity Zone property.
Sec. 122. Authority for undercover operations.
Sec. 123. Disclosures of certain tax return
information.
Subtitle B—Other Provisions
Sec. 131. Deduction allowable with respect to income
attributable to domestic production activities in Puerto Rico.
Sec. 132. Credit for prior year minimum tax liability made
refundable after period of years.
Sec. 133. Returns required in connection with certain
options.
Sec. 134. Partial expensing for advanced mine safety
equipment.
Sec. 135. Mine rescue team training tax credit.
Sec. 136. Whistleblower reforms.
Sec. 137. Frivolous tax submissions.
Sec. 138. Addition of meningococcal and human papillomavirus
vaccines to list of taxable vaccines.
Sec. 139. Clarification of taxation of certain settlement funds
made permanent.
Sec. 140. Modification of active business definition under
section 355 made permanent.
Sec. 141. Revision of State veterans limit made
permanent.
Sec. 142. Capital gains treatment for certain self-created
musical works made permanent.
Sec. 143. Reduction in minimum vessel tonnage which qualifies
for tonnage tax made permanent.
Sec. 144. Modification of special arbitrage rule for certain
funds made permanent.
Sec. 145. Great Lakes domestic shipping to not disqualify
vessel from tonnage tax.
Sec. 146. Use of qualified mortgage bonds to finance residences
for veterans without regard to first-time homebuyer requirement.
Sec. 147. Exclusion of gain from sale of a principal residence
by certain employees of the intelligence community.
Sec. 148. Treatment of coke and coke gas.
Sec. 149. Sale of property by judicial officers.
Sec. 150. Premiums for mortgage insurance.
Sec. 151. Modification of refunds for kerosene used in
aviation.
Sec. 152. Deduction for qualified timber gain.
Sec. 153. Credit to holders of rural renaissance
bonds.
Sec. 154. Restoration of deduction for travel expenses of
spouse, etc. accompanying taxpayer on business travel.
Sec. 155. Technical corrections.
TITLE II—Increase in Federal minimum wage
Sec. 201. Minimum wage.
Sec. 202. Applicability of minimum wage to the Commonwealth of
the Northern Mariana Islands.
TITLE III—Surface Mining Control and Reclamation Act Amendments
of 2006
Sec. 301. Short title.
Subtitle A—Mining Control and Reclamation
Sec. 311. Abandoned Mine Reclamation Fund and
purposes.
Sec. 312. Reclamation fee.
Sec. 313. Objectives of Fund.
Sec. 314. Reclamation of rural land.
Sec. 315. Liens.
Sec. 316. Certification.
Sec. 317. Remining incentives.
Sec. 318. Extension of limitation on application of prohibition
on issuance of permit.
Sec. 319. Tribal regulation of surface coal mining and
reclamation operations.
Subtitle B—Coal Industry Retiree Health Benefit Act
Sec. 321. Certain related persons and successors in interest
relieved of liability if premiums prepaid.
Sec. 322. Transfers to funds; premium relief.
Sec. 323. Other provisions.
<enum>I</enum><header>Extension and
Expansion of Certain Tax Relief Provisions</header>
<subtitle id="H92ECEC1D02344465893227656208274D"><enum>A</enum><header>Extension and
Modification of Certain Provisions</header>
<section id="H47633E499EB442DDA3CE5BA1302991FF"><enum>101.</enum><header>Deduction for
qualified tuition and related expenses</header>
<subsection id="H103DA7789084493D004615D2CBC55243"><enum>(a)</enum><header>In
general</header><text>Section 222(e) is amended by striking
<quote>2005</quote>and inserting <quote>2007</quote>.</text>
</subsection><subsection id="H2EA7B05015464742A2019425FC8F04C7"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 222(b)(2)(B) is amended—</text>
<paragraph id="HF77131C028E94DDAB8D5791666EF891"><enum>(1)</enum><text>by
striking <quote>a taxable year beginning in 2004 or 2005</quote> and inserting
<quote>any taxable year beginning after 2003</quote>, and</text>
</paragraph><paragraph id="H5947A2DB68F946CA8F8C2EA04C25F49F"><enum>(2)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC">2004 and
2005</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="subparagraph" style="OLC">After
2003</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBD85DE8145FE45039F34E6E5CEEAD58F"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><section id="HDB1D1E170C6A496195D5D3A71E4456EA"><enum>102.</enum><header>Extension and
modification of new markets tax credit</header>
<subsection id="H405408F49FB04670BBF3E3CE4DAE7D66"><enum>(a)</enum><header>Extension</header><text>Section
45D(f)(1)(D) is amended by striking <quote>and 2007</quote> and inserting
<quote>, 2007, and 2008</quote>.</text>
</subsection><subsection id="HD98B1C63249F4EA69DAB3F46264D00B3"><enum>(b)</enum><header>Regulations
regarding non-metropolitan counties</header><text>Section 45D(i) is amended by
striking <quote>and</quote> at the end of paragraph (4), by striking the period
at the end of paragraph (5) and inserting <quote>, and</quote>, and by adding
at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H59AD66E27B3C43BC803672CD8D005500" style="OLC">
<paragraph id="HDF94BEB9E7B5407B9C456201F0F20084"><enum>(6)</enum><text>which ensure that
non-metropolitan counties receive a proportional allocation of qualified equity
investments.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5B74F2A5C08C40DEA2EFEA5B60B1F8D2"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section id="H8394EEDE013145CDB152FC841100E1B8"><enum>103.</enum><header>Election to
deduct State and local general sales taxes</header>
<subsection id="H32BA07E13D9B49599195B2EA5D83DF75"><enum>(a)</enum><header>In
general</header><text>Section 164(b)(5)(I) is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD17881F6FE7047A9BB4D9959AE60F37B"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><section id="H680A8EA3C04C4B93AA8858AF822C5527"><enum>104.</enum><header>Extension and
modification of research credit</header>
<subsection id="H2167F8ACFAD1452E89892895B321A7F5"><enum>(a)</enum><header>Extension</header>
<paragraph id="H005DFC9181D04690BC06C1F7D4A1151B"><enum>(1)</enum><header>In
general</header><text>Section 41(h)(1)(B) is amended by striking
<quote>2005</quote> and inserting <quote>2007</quote>.</text>
</paragraph><paragraph id="H39F111E2E0B44383BEDF10FD00274C21"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 45C(b)(1)(D) is amended by striking
<quote>2005</quote> and inserting <quote>2007</quote>.</text>
</paragraph><paragraph id="HB767654E7314421A92F0C9047F4B6939"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
amounts paid or incurred after December 31, 2005.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H69F581C118354B669BFC52CD5BB43584"><enum>(b)</enum><header>Increase in
rates of alternative incremental credit</header>
<paragraph id="HD4F5183E2CDF42DB87395DFD00E03817"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 41(c)(4) (relating to
election of alternative incremental credit) is amended—</text>
<subparagraph id="H7C906366303342BF964DE51B7D00BE00"><enum>(A)</enum><text>by striking
<quote>2.65 percent</quote> and inserting <quote>3 percent</quote>,</text>
</subparagraph><subparagraph id="HA9BBAC83DCFF4BBB8891CD7DE8DBCBB2"><enum>(B)</enum><text>by striking
<quote>3.2 percent</quote> and inserting <quote>4 percent</quote>, and</text>
</subparagraph><subparagraph id="H4672C33494954121A2F2B1CC52D30018"><enum>(C)</enum><text>by striking
<quote>3.75 percent</quote> and inserting <quote>5 percent</quote>.</text>
</subparagraph></paragraph><paragraph id="H478AEBA9EF43410DBCF5B5CE669BB6E0"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
amounts paid or incurred after December 31, 2006.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HC2647144E713480D9200007FBCF84CBA"><enum>(c)</enum><header>Alternative
simplified credit for qualified research expenses</header>
<paragraph id="HA8E96213346A4EE6B392807209BABD41"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 41 (relating to base amount) is
amended by redesignating paragraphs (5) and (6) as paragraphs (6) and (7),
respectively, and by inserting after paragraph (4) the following new
paragraph:</text>
<quoted-block id="H0C980F7B7EE848FC96A0A016BDF52801">
<paragraph id="H31B359CD99354888AEEB2B2226E895DB"><enum>(5)</enum><header>Election of
alternative simplified credit</header>
<subparagraph id="HF35D9842F48D452DB36BC45DAE8EA75B"><enum>(A)</enum><header>In
general</header><text>At the election of the taxpayer, the credit determined
under subsection (a)(1) shall be equal to 12 percent of so much of the
qualified research expenses for the taxable year as exceeds 50 percent of the
average qualified research expenses for the 3 taxable years preceding the
taxable year for which the credit is being determined.</text>
</subparagraph><subparagraph id="HFC728AAE082A4AAA99602117C8F56649"><enum>(B)</enum><header>Special rule in
case of no qualified research expenses in any of 3 preceding taxable
years</header>
<clause id="H64AF29BE769D446C982BCE24F559FE92"><enum>(i)</enum><header>Taxpayers to
which subparagraph applies</header><text>The credit under this paragraph shall
be determined under this subparagraph if the taxpayer has no qualified research
expenses in any one of the 3 taxable years preceding the taxable year for which
the credit is being determined.</text>
</clause><clause id="HACB8C58C3BB041C4B4A738F1139004B7"><enum>(ii)</enum><header>Credit
rate</header><text>The credit determined under this subparagraph shall be equal
to 6 percent of the qualified research expenses for the taxable year.</text>
</clause></subparagraph><subparagraph id="HF319C5B7F0E448A89DE04E5E2D8D85FE"><enum>(C)</enum><header>Election</header><text>An
election under this paragraph shall apply to the taxable year for which made
and all succeeding taxable years unless revoked with the consent of the
Secretary. An election under this paragraph may not be made for any taxable
year to which an election under paragraph (4)
applies.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H050C2EEFFDD84163B674AB45AF304F34"><enum>(2)</enum><header>Coordination
with election of alternative incremental credit</header>
<subparagraph id="H5FCA55D754724FC9A59D5E753486C717"><enum>(A)</enum><header>In
general</header><text>Section 41(c)(4)(B) (relating to election) is amended by
adding at the end the following: <quote>An election under this paragraph may
not be made for any taxable year to which an election under paragraph (5)
applies.</quote>.</text>
</subparagraph><subparagraph id="H591FC0FDFEBE42939300C4D10045B4D5"><enum>(B)</enum><header>Transition
rule</header><text>In the case of an election under section 41(c)(4) of the
Internal Revenue Code of 1986 which applies to the taxable year which includes
the date of the enactment of this Act, such election shall be treated as
revoked with the consent of the Secretary of the Treasury if the taxpayer makes
an election under section 41(c)(5) of such Code (as added by subsection (c))
for such year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H99E17375C57447B0AAD4984D5DED4589"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
amounts paid or incurred after December 31, 2006.</text>
</paragraph></subsection></section><section id="H967B15A9DD08475EB2EA4503AB23BD3"><enum>105.</enum><header>Work opportunity
tax credit and welfare-to-work credit</header>
<subsection id="HE516ECC9E6F646E7B53268EA5104B711"><enum>(a)</enum><header>In
general</header><text>Sections 51(c)(4)(B) and 51A(f) are each amended by
striking <quote>2005</quote> and inserting <quote>2007</quote>.</text>
</subsection><subsection id="HDFF9999A584849DA8B5146741FB63D00"><enum>(b)</enum><header>Eligibility of
ex-felons determined without regard to family income</header><text>Paragraph
(4) of section 51(d) is amended by adding <quote>and</quote> at the end of
subparagraph (A), by striking <quote>, and</quote> at the end of subparagraph
(B) and inserting a period, and by striking all that follows subparagraph
(B).</text>
</subsection><subsection id="H1F4602681B7148158D8028AEE9B4898D"><enum>(c)</enum><header>Increase in
maximum age for eligibility of food stamp recipients</header><text>Clause (i)
of section 51(d)(8)(A) is amended by striking <quote>25</quote> and inserting
<quote>40</quote>.</text>
</subsection><subsection id="H993A20B2E7624644BD6E7ED7D38EBAA2"><enum>(d)</enum><header>Extension of
paperwork filing deadline</header><text>Section 51(d)(12)(A)(ii)(II) is amended
by striking <quote>21st day</quote> and inserting <quote>28th
day</quote>.</text>
</subsection><subsection id="H5C8A375F3A33482F80C800CE8662B376"><enum>(e)</enum><header>Consolidation of
work opportunity credit with welfare-to-work credit</header>
<paragraph id="H85F950542FBC42E48669646C40DB9DF0"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 51(d) is amended by striking
<quote>or</quote> at the end of subparagraph (G), by striking the period at the
end of subparagraph (H) and inserting <quote>, or</quote>, and by adding at the
end the following new subparagraph:</text>
<quoted-block id="H35D4EDAB25424B2CB4F53CE0547D64">
<subparagraph id="H69F572A968FA419986341F56E9526815"><enum>(I)</enum><text>a long-term family
assistance
recipient.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6A29A877D6814403A2664FE1228663CE"><enum>(2)</enum><header>Long-term family
assistance recipient</header><text>Subsection (d) of section 51 is amended by
redesignating paragraphs (10) through (12) as paragraphs (11) through (13),
respectively, and by inserting after paragraph (9) the following new
paragraph:</text>
<quoted-block id="H81BD8F1C90864CFC88324FFA47834BF9">
<paragraph id="H965F0B0507964E4486AA8BD483DD0907"><enum>(10)</enum><header>Long-term
family assistance recipient</header><text>The term <term>long-term family
assistance recipient</term> means any individual who is certified by the
designated local agency—</text>
<subparagraph id="HC2EDF23F08B54D52000054EAECC654D7"><enum>(A)</enum><text>as being a member
of a family receiving assistance under a IV–A program (as defined in paragraph
(2)(B)) for at least the 18-month period ending on the hiring date,</text>
</subparagraph><subparagraph id="HF8579EC40586422D9C25AB7C140701B"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HE1DB099CB9094501B14795DA00398930"><enum>(i)</enum><text>as being a member of a
family receiving such assistance for 18 months beginning after August 5, 1997,
and</text>
</clause><clause id="HCFBE067E2FD84040B87466067863766F" indent="up1"><enum>(ii)</enum><text>as having a hiring date which is
not more than 2 years after the end of the earliest such 18-month period,
or</text>
</clause></subparagraph><subparagraph id="H552E7123BDC84F2BBF330700EEABDD33"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H15F5960665204379A732DA83729D4E77"><enum>(i)</enum><text>as being a member of a
family which ceased to be eligible for such assistance by reason of any
limitation imposed by Federal or State law on the maximum period such
assistance is payable to a family, and</text>
</clause><clause id="H228AD77309EB435100EE180931C9D3ED" indent="up1"><enum>(ii)</enum><text>as having a hiring date which is
not more than 2 years after the date of such
cessation.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H89DCD437B5E3452690B83974BFAAF348"><enum>(3)</enum><header>Increased credit
for employment of long-term family assistance recipients</header><text>Section
51 is amended by inserting after subsection (d) the following new
subsection:</text>
<quoted-block id="H8BA7B6F4DE5242CC820051F8C0F325B9">
<subsection id="HABDB833A7285450F83CEC97619FD7662"><enum>(e)</enum><header>Credit for
second-year wages for employment of long-term family assistance
recipients</header>
<paragraph id="HCB67191564E7400383CC22ADFD7F768F"><enum>(1)</enum><header>In
general</header><text>With respect to the employment of a long-term family
assistance recipient—</text>
<subparagraph id="HA8436419FE63487D822C34A76DBB2832"><enum>(A)</enum><text>the amount of the
work opportunity credit determined under this section for the taxable year
shall include 50 percent of the qualified second-year wages for such year,
and</text>
</subparagraph><subparagraph id="HC62459551C7C47F393EF787D9FB71E1E"><enum>(B)</enum><text>in lieu of
applying subsection (b)(3), the amount of the qualified first-year wages, and
the amount of qualified second-year wages, which may be taken into account with
respect to such a recipient shall not exceed $10,000 per year.</text>
</subparagraph></paragraph><paragraph id="H3F3756D87AF645789E9DAC1C4CB9D800"><enum>(2)</enum><header>Qualified
second-year wages</header><text>For purposes of this subsection, the term
<term>qualified second-year wages</term> means qualified wages—</text>
<subparagraph id="H262C910D867849ACAF694DD670271B3B"><enum>(A)</enum><text>which are paid to
a long-term family assistance recipient, and</text>
</subparagraph><subparagraph id="HC22084BF14914A7590AF403F49520064"><enum>(B)</enum><text>which are
attributable to service rendered during the 1-year period beginning on the day
after the last day of the 1-year period with respect to such recipient
determined under subsection (b)(2).</text>
</subparagraph></paragraph><paragraph id="H4269B78C31904B7C9008C4DE4F8BBBA6"><enum>(3)</enum><header>Special rules
for agricultural and railway labor</header><text>If such recipient is an
employee to whom subparagraph (A) or (B) of subsection (h)(1) applies, rules
similar to the rules of such subparagraphs shall apply except that—</text>
<subparagraph id="H602009F85177423CA290EEE4447971D9"><enum>(A)</enum><text>such subparagraph
(A) shall be applied by substituting <quote>$10,000</quote> for
<quote>$6,000</quote>, and</text>
</subparagraph><subparagraph id="HC0549C0C83CC4D968300F479EF967BE0"><enum>(B)</enum><text>such subparagraph
(B) shall be applied by substituting <quote>$833.33</quote> for
<quote>$500</quote>.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H76A7AC90EF1F4B9588E1AA850000A902"><enum>(4)</enum><header>Repeal of
separate welfare-to-work credit</header>
<subparagraph id="H71D87244680E46F09131880058003D45"><enum>(A)</enum><header>In
general</header><text>Section 51A is hereby repealed.</text>
</subparagraph><subparagraph id="HDD4D20135FAA4493A1B71885F2B4FFCE"><enum>(B)</enum><header>Clerical
amendment</header><text>The table of sections for subpart F of part IV of
subchapter A of chapter 1 is amended by striking the item relating to section
51A.</text>
</subparagraph></paragraph></subsection><subsection id="H9B4CAFCF73CF43528F1EBDE25195AF4"><enum>(f)</enum><header>Effective
dates</header>
<paragraph id="HD7C25439A90A45FA9675CBE46B35C3C2"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to individuals who begin work for the employer
after December 31, 2005.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H99DDACC8494E4E449F76144D38CA0B7"><enum>(2)</enum><header>Consolidation</header><text>The
amendments made by subsections (b), (c), (d), and (e) shall apply to
individuals who begin work for the employer after December 31, 2006.</text>
</paragraph></subsection></section><section id="HF2D8171E3D2D4DD3BFABE4B7823CAFB"><enum>106.</enum><header>Election to
include combat pay as earned income for purposes of earned income
credit</header>
<subsection id="HDF6E289716184229ACB20037FAD44EF7"><enum>(a)</enum><header>In
general</header><text>Section 32(c)(2)(B)(vi)(II) is amended by striking
<quote>2007</quote> and inserting <quote>2008</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H64F31F264A44482CBD18CA99F8B32CBE"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to taxable years beginning after December 31,
2006.</text>
</subsection></section><section id="H0CC663AF529C486AA4A329FBAB431B4D"><enum>107.</enum><header>Extension and
modification of qualified zone academy bonds</header>
<subsection id="HA96B1CB25DE44F1F8100B5E0610C5CE"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 1397E(e) is amended by striking
<quote>and 2005</quote> and inserting <quote>2005, 2006, and
2007</quote>.</text>
</subsection><subsection id="H7EAD1580519946FCABC7BB657967296E"><enum>(b)</enum><header>Special rules
relating to expenditures, arbitrage, and reporting</header>
<paragraph id="HDD7C5804DA324E199FA6E15EDD2548C4"><enum>(1)</enum><header>In
general</header><text>Section 1397E is amended—</text>
<subparagraph id="HB96A856E7968444191A7D2049EF3C3EC"><enum>(A)</enum><text>in subsection
(d)(1), by striking <quote>and</quote> at the end of subparagraph (C)(iii), by
striking the period at the end of subparagraph (D) and inserting <quote>,
and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block id="HE9784A85DC934A1EBD82AFC0274FC842">
<subparagraph id="H77E00AD8168A4B9A9EE5C092CB5670A5"><enum>(E)</enum><text>the issue meets
the requirements of subsections (f), (g), and
(h).</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H3BE210825738486A99F0005B36D25E5B"><enum>(B)</enum><text>by redesignating
subsections (f), (g), (h), and (i) as subsection (i), (j), (k), and (l),
respectively, and by inserting after subsection (e) the following new
subsections:</text>
<quoted-block id="HB06E7DEC64764064AF002742885FFBB8">
<subsection id="H1BD3F194F3D4431AB0448C008771A017"><enum>(f)</enum><header>Special rules
relating to expenditures</header>
<paragraph id="H989AFD9AA9184EBD9777BD78647615CE"><enum>(1)</enum><header>In
general</header><text>An issue shall be treated as meeting the requirements of
this subsection if, as of the date of issuance, the issuer reasonably
expects—</text>
<subparagraph id="HB206E8B9C97B44D79CCCA026CB75E0B9"><enum>(A)</enum><text>at least 95
percent of the proceeds from the sale of the issue are to be spent for 1 or
more qualified purposes with respect to qualified zone academies within the
5-year period beginning on the date of issuance of the qualified zone academy
bond,</text>
</subparagraph><subparagraph id="HFF1E10AD7E9545938D4CFC71DF1251CA"><enum>(B)</enum><text>a binding
commitment with a third party to spend at least 10 percent of the proceeds from
the sale of the issue will be incurred within the 6-month period beginning on
the date of issuance of the qualified zone academy bond, and</text>
</subparagraph><subparagraph id="H283E6B3C285F4BD58BC6FE90E3C41E10"><enum>(C)</enum><text>such purposes will
be completed with due diligence and the proceeds from the sale of the issue
will be spent with due diligence.</text>
</subparagraph></paragraph><paragraph id="H3E5031020C5D451BA8D48D0086333D4B"><enum>(2)</enum><header>Extension of
period</header><text>Upon submission of a request prior to the expiration of
the period described in paragraph (1)(A), the Secretary may extend such period
if the issuer establishes that the failure to satisfy the 5-year requirement is
due to reasonable cause and the related purposes will continue to proceed with
due diligence.</text>
</paragraph><paragraph id="H2AF9A509878744A09D4B56FB3EA3DF4D"><enum>(3)</enum><header>Failure to spend
required amount of bond proceeds within 5 years</header><text>To the extent
that less than 95 percent of the proceeds of such issue are expended by the
close of the 5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close of the extended
period), the issuer shall redeem all of the nonqualified bonds within 90 days
after the end of such period. For purposes of this paragraph, the amount of the
nonqualified bonds required to be redeemed shall be determined in the same
manner as under section 142.</text>
</paragraph></subsection><subsection id="HCDE80B36FF324DC1A6FB1794AB8C0049"><enum>(g)</enum><header>Special rules
relating to arbitrage</header><text>An issue shall be treated as meeting the
requirements of this subsection if the issuer satisfies the arbitrage
requirements of section 148 with respect to proceeds of the issue.</text>
</subsection><subsection id="H2FCD3A35858648799ED69EF47713044"><enum>(h)</enum><header>Reporting</header><text>Issuers
of qualified academy zone bonds shall submit reports similar to the reports
required under section
149(e).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H4B6F56583122428FBD83F70D788EE0"><enum>(2)</enum><header>Conforming
amendments</header><text>Sections 54(l)(3)(B) and 1400N(l)(7)(B)(ii) are each
amended by striking <quote>section 1397E(i)</quote> and inserting
<quote>section 1397E(l)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H88A54DE3CBCB4003B66EEE1635BBEA60"><enum>(c)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA80BDBF5FB424AD0B8CD4FF6AD586055"><enum>(1)</enum><header>Extension</header><text>The
amendment made by subsection (a) shall apply to obligations issued after
December 31, 2005.</text>
</paragraph><paragraph id="H736E7BBAEC994EBF89EC4449952897C"><enum>(2)</enum><header>Special
rules</header><text>The amendments made by subsection (b) shall apply to
obligations issued after the date of the enactment of this Act pursuant to
allocations of the national zone academy bond limitation for calendar years
after 2005.</text>
</paragraph></subsection></section><section id="HF5BFDF124D294D619F3FC2837BC58737"><enum>108.</enum><header>Above-the-line
deduction for certain expenses of elementary and secondary school
teachers</header>
<subsection id="HF87039CC74444743008700DA82B85F7D"><enum>(a)</enum><header>In
general</header><text>Subparagraph (D) of section 62(a)(2) is amended by
striking <quote>or 2005</quote> and inserting <quote>2005, 2006, or
2007</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE8296FC1B36E4846B9739300E6894071"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><section id="HEC55C6AF0D164112839E43EE82703493"><enum>109.</enum><header>Extension and
expansion of expensing of brownfields remediation costs</header>
<subsection id="H1BE98735C8EE4CF2B2E8C34E28E49F89"><enum>(a)</enum><header>Extension</header><text>Subsection
(h) of section 198 is amended by striking <quote>2005</quote> and inserting
<quote>2007</quote>.</text>
</subsection><subsection id="H092347EF98FB4FAC9F03A02641D27E1D"><enum>(b)</enum><header>Expansion</header><text>Section
198(d)(1) (defining hazardous substance) is amended by striking
<quote>and</quote> at the end of subparagraph (A), by striking the period at
the end of subparagraph (B) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block id="HC44E1B02E9E3486C93D8FC002AD592D">
<subparagraph id="HB7EBB51151764F7300FEDAFDC2B4C44"><enum>(C)</enum><text>any petroleum
product (as defined in section
4612(a)(3)).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H22D59B2F021A425598A1715941A9AEB0"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
expenditures paid or incurred after December 31, 2005.</text>
</subsection></section><section id="HDE63010633E74660BE82EDDEC5107820"><enum>110.</enum><header>Tax incentives
for investment in the District of Columbia</header>
<subsection id="H7A91384EA35E484CB6B3E14C3F19A2BD"><enum>(a)</enum><header>Designation of
zone</header>
<paragraph id="H8DC7F4FC00B44A0D8C41D36227AAE51"><enum>(1)</enum><header>In
general</header><text>Subsection (f) of section 1400 is amended by striking
<quote>2005</quote> both places it appears and inserting
<quote>2007</quote>.</text>
</paragraph><paragraph id="H9F0BDB82A7F74C8C008DEBACD51817B"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
periods beginning after December 31, 2005.</text>
</paragraph></subsection><subsection id="HA2F7A375E0474159A169BB17A86800A5"><enum>(b)</enum><header>Tax-exempt
economic development bonds</header>
<paragraph id="HD65728C4C7E8439D851E9B637803A2DD"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 1400A is amended by striking
<quote>2005</quote> and inserting <quote>2007</quote>.</text>
</paragraph><paragraph id="HBD693F18B4E842B88D9F085E82EFE808"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to bonds
issued after December 31, 2005.</text>
</paragraph></subsection><subsection id="H37116AD3F9F347FBB5F3B3CD12AC049B"><enum>(c)</enum><header>Zero percent
capital gains rate</header>
<paragraph id="H3F460459EF4B455EAD35266BF0700DE"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 1400B is amended by striking
<quote>2006</quote> each place it appears and inserting
<quote>2008</quote>.</text>
</paragraph><paragraph id="H1096D0F4F5814793953098E5C05D4827"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H6F12F4958BAA438BA7AC00BB35A848E9"><enum>(A)</enum><text>Section
1400B(e)(2) is amended—</text>
<clause id="HC1A0C462833844458500D57189227D00"><enum>(i)</enum><text>by
striking <quote>2010</quote> and inserting <quote>2012</quote>, and</text>
</clause><clause id="H32F9B6977A484E77910036D312216800"><enum>(ii)</enum><text>by
striking <quote><header-in-text level="paragraph" style="OLC">2010</header-in-text></quote> in the heading thereof and inserting
<quote><header-in-text level="paragraph" style="OLC">2012</header-in-text></quote>.</text>
</clause></subparagraph><subparagraph id="H79FF9A36CAA0499B94DC451ED78BB736"><enum>(B)</enum><text>Section
1400B(g)(2) is amended by striking <quote>2010</quote> and inserting
<quote>2012</quote>.</text>
</subparagraph><subparagraph id="H33A7CFB23F6940328020BA6F26922D5F"><enum>(C)</enum><text>Section 1400F(d)
is amended by striking <quote>2010</quote> and inserting
<quote>2012</quote>.</text>
</subparagraph></paragraph><paragraph id="H264AEB99B8B1474682C9A686C6B1315"><enum>(3)</enum><header>Effective
dates</header>
<subparagraph id="H75C68369014C4139A82DB92C866C6441"><enum>(A)</enum><header>Extension</header><text>The
amendments made by paragraph (1) shall apply to acquisitions after December 31,
2005.</text>
</subparagraph><subparagraph id="H9FF6760FD921400DB5691930CCF2BAB8"><enum>(B)</enum><header>Conforming
amendments</header><text>The amendments made by paragraph (2) shall take effect
on the date of the enactment of this Act.</text>
</subparagraph></paragraph></subsection><subsection id="H13879E2F89CD47B594EA1DA6D46CF4A0"><enum>(d)</enum><header>First-time
homebuyer credit</header>
<paragraph id="HD087CC89CF77435A97027889AB14FD9"><enum>(1)</enum><header>In
general</header><text>Subsection (i) of section 1400C is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H56ADBE25EFCD444D9955F01129410508"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
property purchased after December 31, 2005.</text>
</paragraph></subsection></section><section id="H341B0EA9EDBB457F9B70D6077BF012F2"><enum>111.</enum><header>Indian
employment tax credit</header>
<subsection id="H05B7F8A0FB4B47688CA20083B000272C"><enum>(a)</enum><header>In
general</header><text>Section 45A(f) is amended by striking <quote>2005</quote>
and inserting <quote>2007</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAF529D36E8BF4A128552D548170086CC"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to taxable years beginning after December 31,
2005.</text>
</subsection></section><section id="H64D1C405CBD444C2B47549FF7254E719"><enum>112.</enum><header>Accelerated
depreciation for business property on Indian reservations</header>
<subsection id="HB21F31C929684D9DA0CB980017A3EBDB"><enum>(a)</enum><header>In
general</header><text>Section 168(j)(8) is amended by striking
<quote>2005</quote> and inserting <quote>2007</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H30CE92E72C5549C4A3FFB3763900A6D2"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to property placed in service after December 31,
2005.</text>
</subsection></section><section id="HEAB7FC464FCF440D869B245EC95ED162"><enum>113.</enum><header>Fifteen-year
straight-line cost recovery for qualified leasehold improvements and qualified
restaurant property</header>
<subsection id="HD612F1986DF2472D00ADD01B943F1C00"><enum>(a)</enum><header>In
general</header><text>Clauses (iv) and (v) of section 168(e)(3)(E) are each
amended by striking <quote>2006</quote> and inserting
<quote>2008</quote>.</text>
</subsection><subsection display-inline="no-display-inline" id="H7EA382BBD24D489391F4A402EAC045B2"><enum>(b)</enum><header>Treatment of
restaurant property to include new construction</header><text>Paragraph (7) of
section 168(e) (relating to classification of property) is amended to read as
follows:</text>
<quoted-block id="H128EABD0993344FBAF81F2F13957854" style="OLC">
<paragraph id="H996134309D9946DD8224ECE7ED261C99"><enum>(7)</enum><header>Qualified
restaurant property</header><text>The term <term>qualified restaurant
property</term> means any section 1250 property which is a building or an
improvement to a building if more than 50 percent of the building’s square
footage is devoted to preparation of, and seating for on-premises consumption
of, prepared
meals.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="HA30A6DED76DC44ED87BDE8CD76E129AB"><enum>(c)</enum><header>Effective
dates</header>
<paragraph id="H0D55588248214AE482DBC2677F321BC6"><enum>(1)</enum><header>Subsection
<enum-in-header>(a)</enum-in-header></header><text>The amendments made by
subsection (a) shall apply to property placed in service after December 31,
2005.</text>
</paragraph><paragraph id="HB5E63C2C982544AA998B01A0112C1B4"><enum>(2)</enum><header>Subsection
<enum-in-header>(b)</enum-in-header></header><text>The amendment made by
subsection (b) shall apply to property placed in service after the date of the
enactment of this Act.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HA32B475424C5455CBB4280A8952DD553" section-type="subsequent-section"><enum>114.</enum><header>Cover over of tax on
distilled spirits</header>
<subsection id="H1B4C638E5C754FA28F1BE4A9723C3C9F"><enum>(a)</enum><header>In
general</header><text>Section 7652(f)(1) is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H694B6697C6AD40F1A707104E9B42F432"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to articles
brought into the United States after December 31, 2005.</text>
</subsection></section><section display-inline="no-display-inline" id="H1137E58C5F1D47FB91E024C79BAB69AA" section-type="subsequent-section"><enum>115.</enum><header>Parity in
application of certain limits to mental health benefits</header>
<subsection id="H11C36B7AEBB2478691F4381CA3F7C06B"><enum>(a)</enum><header>Amendment to the
Internal Revenue Code of 1986</header><text display-inline="yes-display-inline">Section 9812(f)(3) is amended by striking
‘‘2006’’ and inserting ‘‘2007’’.</text>
</subsection><subsection id="H7B5B03865ACC4D4FA3E0358DC387B1F1"><enum>(b)</enum><header>Amendment to the
Employee Retirement Income Security Act of 1974</header><text display-inline="yes-display-inline">Section 712(f) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1185a(f)) is amended by striking
‘‘2006’’ and inserting ‘‘2007’’.</text>
</subsection><subsection id="HB01583D36AE84CC298213DDEE5994FD"><enum>(c)</enum><header>Amendment to the
Public Health Service Act</header><text display-inline="yes-display-inline">Section 2705(f) of the Public Health
Service Act (42 U.S.C. 300gg–5(f)) is amended by striking ‘‘2006’’and inserting
‘‘2007’’.</text>
</subsection></section><section display-inline="no-display-inline" id="H81508FE7B02140C7BADF7CF03451A199" section-type="subsequent-section"><enum>116.</enum><header>Corporate donations
of scientific property used for research and of computer technology and
equipment</header>
<subsection id="HFD87D043B5574830BC9E55A168353478"><enum>(a)</enum><header>Extension of
computer technology and equipment donation</header>
<paragraph id="HA96995330D5D4E84B3239172998B4C7B"><enum>(1)</enum><header>In
general</header><text>Section 170(e)(6)(G) is amended by striking
<quote>2005</quote> and inserting <quote>2007</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H22AABC10290549ABB80004CC21FD8582"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by paragraph (1) shall apply to
contributions made in taxable years beginning after December 31, 2005.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H029C98322D4D4EC19200F1D9FC41A604"><enum>(b)</enum><header>Expansion of
charitable contribution allowed for scientific property used for research and
for computer technology and equipment used for educational purposes</header>
<paragraph id="H81F0DD731CC14655859C5DFBA09526CA"><enum>(1)</enum><header>Scientific
property used for research</header>
<subparagraph id="HD0D797813776453FB0E67B227FD408FE"><enum>(A)</enum><header>In
general</header><text>Clause (ii) of section 170(e)(4)(B) (defining qualified
research contributions) is amended by inserting <quote>or assembled</quote>
after <quote>constructed</quote>.</text>
</subparagraph><subparagraph id="H4B4B76157E444BC885462F82E55B0010"><enum>(B)</enum><header>Conforming
amendment</header><text>Clause (iii) of section 170(e)(4)(B) is amended by
inserting <quote>or assembly</quote> after <quote>construction</quote>.</text>
</subparagraph></paragraph><paragraph id="H00117AEAB3E54C40B6876B7CABD06681"><enum>(2)</enum><header>Computer
technology and equipment for educational purposes</header>
<subparagraph id="H3C5DADF9C1524647A012CEBC5479B6"><enum>(A)</enum><header>In
general</header><text>Clause (ii) of section 170(e)(6)(B) is amended by
inserting <quote>or assembled</quote> after <quote>constructed</quote> and
<quote>or assembling</quote> after <quote>construction</quote>.</text>
</subparagraph><subparagraph id="H586C27E1B7C8400BA4E234282183434D"><enum>(B)</enum><header>Conforming
amendment</header><text>Subparagraph (D) of section 170(e)(6) is amended by
inserting <quote>or assembled</quote> after <quote>constructed</quote> and
<quote>or assembly</quote> after <quote>construction</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC579A54B84924351A625FADE57B23BE7"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
taxable years beginning after December 31, 2005.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HFA12233766814131A4CDA8717CEEA548" section-type="subsequent-section"><enum>117.</enum><header>Availability of
medical savings accounts</header>
<subsection id="HD76118E9064D492DA6D8702216D33B93"><enum>(a)</enum><header>In
general</header><text>Paragraphs (2) and (3)(B) of section 220(i) are each
amended by striking <quote>2005</quote> each place it appears in the text and
headings and inserting <quote>2007</quote>.</text>
</subsection><subsection id="H70056F631E1A468AA687F28F379DE86B"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HC360856C2B3740C2B6AC3B51F43C9F27"><enum>(1)</enum><text>Paragraph (2) of
section 220(j) is amended—</text>
<subparagraph id="HF13DB0464C7D4F2EAEBA0033BFF09BA3"><enum>(A)</enum><text>in the text by
striking <quote>or 2004</quote> each place it appears and inserting
<quote>2004, 2005, or 2006</quote>, and</text>
</subparagraph><subparagraph id="HBDE3A028B9A3422BB91B28A343F07129"><enum>(B)</enum><text>in the heading by
striking <quote><header-in-text level="paragraph" style="OLC">or
<enum-in-header>2004</enum-in-header></header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC"><enum-in-header>2004</enum-in-header>,
<enum-in-header>2005</enum-in-header>, or
<enum-in-header>2006</enum-in-header></header-in-text></quote> .</text>
</subparagraph></paragraph><paragraph id="H387049075B444D888FA3386B10A6899F"><enum>(2)</enum><text>Subparagraph (A)
of section 220(j)(4) is amended by striking <quote>and 2004</quote> and
inserting <quote>2004, 2005, and 2006</quote>.</text>
</paragraph></subsection><subsection id="HDB6078C50AC24702921910520003DCFE"><enum>(c)</enum><header>Time for filing
reports, etc</header>
<paragraph id="H7920BA4EEEFC41D9A67F3B8E778091BD"><enum>(1)</enum><text>The report
required by section 220(j)(4) of the Internal Revenue Code of 1986 to be made
on August 1, 2005, shall be treated as timely if made before the close of the
90-day period beginning on the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H808A6704189B4A0CA2FEED985F00D237"><enum>(2)</enum><text>The determination
and publication required by section 220(j)(5) of such Code with respect to
calendar year 2005 shall be treated as timely if made before the close of the
120-day period beginning on the date of the enactment of this Act. If the
determination under the preceding sentence is that 2005 is a cut-off year under
section 220(i) of such Code, the cut-off date under such section 220(i) shall
be the last day of such 120-day period.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HF5D0A45005D4453199982D17E65FE6C1" section-type="subsequent-section"><enum>118.</enum><header>Taxable income limit
on percentage depletion for oil and natural gas produced from marginal
properties</header>
<subsection id="H9C1FF5728499404A8F88AD13AF206A8"><enum>(a)</enum><header>In
general</header><text>Section 613A(c)(6)(H) is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAA806E755F8B4C909880249647CFAED7"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><section display-inline="no-display-inline" id="H25B259587E4E4A69A40531694967CE3B" section-type="subsequent-section"><enum>119.</enum><header>American Samoa
economic development credit</header>
<subsection id="HE83D141BDC554FE289BE375F61008B95"><enum>(a)</enum><header>In
general</header><text>For purposes of section 30A of the Internal Revenue Code
of 1986, a domestic corporation shall be treated as a qualified domestic
corporation to which such section applies if such corporation—</text>
<paragraph id="HC87BBAFBF5A1497A00D886CCE7E332F6"><enum>(1)</enum><text>is an existing
credit claimant with respect to American Samoa, and</text>
</paragraph><paragraph id="HB1262A4E5E424038A8F6D7BCBCC86F"><enum>(2)</enum><text>elected the
application of section 936 of the Internal Revenue Code of 1986 for its last
taxable year beginning before January 1, 2006.</text>
</paragraph></subsection><subsection id="HFBE722654B4F408186E627E0CE2AFEF"><enum>(b)</enum><header>Special rules for
application of section</header><text>The following rules shall apply in
applying section 30A of the Internal Revenue Code of 1986 for purposes of this
section:</text>
<paragraph id="HCE5DCBB6D1E14DEDA066B992CCEAB01"><enum>(1)</enum><header>Amount of
credit</header><text>Notwithstanding section 30A(a)(1) of such Code, the amount
of the credit determined under section 30A(a)(1) of such Code for any taxable
year shall be the amount determined under section 30A(d) of such Code, except
that section 30A(d) shall be applied without regard to paragraph (3)
thereof.</text>
</paragraph><paragraph id="H69DC08764D384791BFE6839E7BF89B31"><enum>(2)</enum><header>Separate
application</header><text>In applying section 30A(a)(3) of such Code in the
case of a corporation treated as a qualified domestic corporation by reason of
this section, section 30A of such Code (and so much of section 936 of such Code
as relates to such section 30A) shall be applied separately with respect to
American Samoa.</text>
</paragraph><paragraph id="HDDEBF2DEA23B46F8ADAA4EE0BE1699BC"><enum>(3)</enum><header>Foreign tax
credit allowed</header><text>Notwithstanding section 30A(e) of such Code, the
provisions of section 936(c) of such Code shall not apply with respect to the
credit allowed by reason of this section.</text>
</paragraph></subsection><subsection id="H78CA4E981BC14C6EAD75BFF65227EBA8"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section, any term which is used in this section which is also
used in section 30A or 936 of such Code shall have the same meaning given such
term by such section 30A or 936.</text>
</subsection><subsection id="H109EA9D42129417CAF1965999740EFE5"><enum>(d)</enum><header>Application of
section</header><text>Notwithstanding section 30A(h) or section 936(j) of such
Code, this section (and so much of section 30A and section 936 of such Code as
relates to this section) shall apply to the first two taxable years of a
corporation to which subsection (a) applies which begin after December 31,
2005, and before January 1, 2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD7CCB7EA8EDE439299FA955F97479B2" section-type="subsequent-section"><enum>120.</enum><header>Restructuring of New
York Liberty Zone tax credits</header>
<subsection commented="no" id="H6C10B7B93B004BEAA1B3C0AE692E9FDE"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter Y of chapter 1 is amended by
redesignating section 1400L as 1400K and by adding at the end the following new
section:</text>
<quoted-block id="HA48F1BB00F9B4325BB545223C7534FB1">
<section commented="no" id="H9E4AB2A38B7A4E4693DCBE795D0051EF"><enum>1400L.</enum><header>New York
Liberty Zone tax credits</header>
<subsection commented="no" id="H1F05B64CBEBD46569827E9BC2632FB9E"><enum>(a)</enum><header>In
general</header><text>In the case of a New York Liberty Zone governmental unit,
there shall be allowed as a credit against any taxes imposed for any payroll
period by section 3402 for which such governmental unit is liable under section
3403 an amount equal to so much of the portion of the qualifying project
expenditure amount allocated under subsection (b)(3) to such governmental unit
for the calendar year as is allocated by such governmental unit to such period
under subsection (b)(4).</text>
</subsection><subsection commented="no" id="H6903D9F5B24648A68EBB34C005DF6AB"><enum>(b)</enum><header>Qualifying
project expenditure amount</header><text>For purposes of this section—</text>
<paragraph commented="no" id="H7CDCEA8E23214BCB92BCE885E217A5B2"><enum>(1)</enum><header>In
general</header><text>The term <term>qualifying project expenditure
amount</term> means, with respect to any calendar year, the sum of—</text>
<subparagraph commented="no" id="H500A12B3E1994540BD2FB56D78076F1F"><enum>(A)</enum><text>the total
expenditures paid or incurred during such calendar year by all New York Liberty
Zone governmental units and the Port Authority of New York and New Jersey for
any portion of qualifying projects located wholly within the City of New York,
New York, and</text>
</subparagraph><subparagraph commented="no" id="H2149FC5C7C084195A9D8FE6FB28DFCDC"><enum>(B)</enum><text>any such
expenditures—</text>
<clause commented="no" id="HD052A5731BC54EB9B199C1D261E69154"><enum>(i)</enum><text>paid or incurred
in any preceding calendar year which begins after the date of enactment of this
section, and</text>
</clause><clause commented="no" id="H7425951DAC91432D84FF1CC70341A934"><enum>(ii)</enum><text>not previously
allocated under paragraph (3).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HD6A36F9F00D54E00A6C6E59D71CC64F3"><enum>(2)</enum><header>Qualifying
project</header><text>The term <term>qualifying project</term> means any
transportation infrastructure project, including highways, mass transit
systems, railroads, airports, ports, and waterways, in or connecting with the
New York Liberty Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the Governor of the State of
New York and the Mayor of the City of New York, New York.</text>
</paragraph><paragraph commented="no" id="HE74BBDED123C47DF8BC5F0ABB7689CBC"><enum>(3)</enum><header>General
allocation</header>
<subparagraph commented="no" id="HAA5712C553D74BC89262F718242E469D"><enum>(A)</enum><header>In
general</header><text>The Governor of the State of New York and the Mayor of
the City of New York, New York, shall jointly allocate to each New York Liberty
Zone governmental unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit under subsection (a)
for any calendar year in the credit period.</text>
</subparagraph><subparagraph commented="no" id="H2F5A8EBEF8524CD2986DF83B724F85FB"><enum>(B)</enum><header>Aggregate
limit</header><text>The aggregate amount which may be allocated under
subparagraph (A) for all calendar years in the credit period shall not exceed
$1,750,000,000.</text>
</subparagraph><subparagraph commented="no" id="H3E1F00C7FEFE474B8B003288B59EA5B3"><enum>(C)</enum><header>Annual
limit</header>
<clause id="HBC97486A266A4E3CB5552E167DFA24F2"><enum>(i)</enum><header>In
general</header><text>The aggregate amount which may be allocated under
subparagraph (A) for any calendar year in the credit period shall not exceed
the sum of—</text>
<subclause commented="no" id="H92D6DC5EA43B442EB200DEC9F63C5451"><enum>(I)</enum><text>the applicable
limit, plus</text>
</subclause><subclause commented="no" id="H4F4F5584E1DD400F92EBC2D73F21BD36"><enum>(II)</enum><text>the aggregate
amount authorized to be allocated under this paragraph for all preceding
calendar years in the credit period which was not so allocated.</text>
</subclause></clause><clause id="H32F08D137809451ABA54AD7E26335FF6"><enum>(ii)</enum><header>Applicable
limit</header><text>For purposes of clause (i), the applicable limit for any
calendar year is—</text>
<subclause id="H8DAE2DE231E247AC9CBAF7C8265D6375"><enum>(I)</enum><text>in the case of
calendar years 2007 through 2016, $100,000,000,</text>
</subclause><subclause id="H8E19A0FBA6AC46DB861E6FD02700C4E4"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of calendar year 2017 or 2018,
$200,000,000,</text>
</subclause><subclause id="H7C5C3C5899C1411BB2038F8FA5303500"><enum>(III)</enum><text display-inline="yes-display-inline">in the case of calendar year 2019,
$150,000,000,</text>
</subclause><subclause id="H516666E1F2CE4966B6FA97BCE5763B8"><enum>(IV)</enum><text display-inline="yes-display-inline">in the case of calendar year 2020 or 2021,
$100,000,000, and</text>
</subclause><subclause id="HFA224A6FF4724C86B2170219238D5B34"><enum>(V)</enum><text display-inline="yes-display-inline">in the case of any calendar year after
2021, zero.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="HE56C74F26CE04A29AB3BD15DE879654"><enum>(D)</enum><header>Unallocated
amounts at end of credit period</header><text display-inline="yes-display-inline">If, as of the close of the credit period,
the amount under subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period, the Governor of
the State of New York and the Mayor of the City of New York, New York, may
jointly allocate to New York Liberty Zone governmental units for any calendar
year in the 5-year period following the credit period an amount equal
to—</text>
<clause commented="no" id="H6D40604E4C5F4A7EAA3696ACB804A1F3"><enum>(i)</enum><text display-inline="yes-display-inline">the lesser of—</text>
<subclause commented="no" id="HDB49EF3A266847620046D5D335EBCBAE"><enum>(I)</enum><text display-inline="yes-display-inline">such excess, or</text>
</subclause><subclause commented="no" id="H11ED6009C65342ADAEF59BF3645DBB64"><enum>(II)</enum><text display-inline="yes-display-inline">the qualifying project expenditure amount
for such calendar year, reduced by</text>
</subclause></clause><clause commented="no" id="H9621C2FF903A4A98976019CB4C214072"><enum>(ii)</enum><text display-inline="yes-display-inline">the aggregate amount allocated under this
subparagraph for all preceding calendar years.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H1210502105FE42038190A5712763FDC1"><enum>(4)</enum><header>Allocation to
payroll periods</header><text>Each New York Liberty Zone governmental unit
which has been allocated a portion of the qualifying project expenditure amount
under paragraph (3) for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental unit determines
appropriate.</text>
</paragraph></subsection><subsection id="H645E0B35E76A4B419D53D72619A3D204"><enum>(c)</enum><header>Carryover of
unused allocations</header>
<paragraph id="HA80E6D679A0F4B5100FC933B0014E8EF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
paragraph (2), if the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds the aggregate
taxes imposed by section 3402 for which such governmental unit is liable under
section 3403 for periods beginning in such year, such excess shall be carried
to the succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year. No amount may be carried
under the preceding sentence to a calendar year after 2026.</text>
</paragraph><paragraph commented="no" id="H664CED9F53C84073B15E9846EE469FF6"><enum>(2)</enum><header>Reallocation</header><text>If
a New York Liberty Zone governmental unit does not use an amount allocated to
it under subsection (b)(3) within the time prescribed by the Governor of the
State of New York and the Mayor of the City of New York, New York, then such
amount shall after such time be treated for purposes of subsection (b)(3) in
the same manner as if it had never been allocated.</text>
</paragraph></subsection><subsection commented="no" id="H93A9C471E7D94A7600A34591BC35EAF"><enum>(d)</enum><header>Definitions and
special rules</header><text>For purposes of this section—</text>
<paragraph commented="no" id="HD1F6E64AE0114E01B3A42B77BAABB7AB"><enum>(1)</enum><header>Credit
period</header><text>The term <term>credit period</term> means the 15-year
period beginning on January 1, 2007.</text>
</paragraph><paragraph commented="no" id="HBA47196E264E46C39675C949811583A2"><enum>(2)</enum><header>New York Liberty
Zone governmental unit</header><text>The term <term>New York Liberty Zone
governmental unit</term> means—</text>
<subparagraph commented="no" id="HEED6C9FAFD144D0BB200C71600DE52C8"><enum>(A)</enum><text>the State of New
York,</text>
</subparagraph><subparagraph commented="no" id="HF7896AF351EA4FC4B676A6DB94860226"><enum>(B)</enum><text>the City of New
York, New York, and</text>
</subparagraph><subparagraph commented="no" id="H341C5E106E00470AA7458496F38F26BD"><enum>(C)</enum><text>any agency or
instrumentality of such State or City.</text>
</subparagraph></paragraph><paragraph commented="no" id="H9CC92FAB6A0A4529869706E8953865F4"><enum>(3)</enum><header>Treatment of
funds</header><text>Any expenditure for a qualifying project taken into account
for purposes of the credit under this section shall be considered State and
local funds for the purpose of any Federal program.</text>
</paragraph><paragraph id="HD7E6031B5476477BAAE676758B9F2E66"><enum>(4)</enum><header>Treatment of
credit amounts for purposes of withholding taxes</header><text display-inline="yes-display-inline">For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having paid to the
Secretary, on the day on which wages are paid to employees, an amount equal to
the amount of the credit allowed to such entity under subsection (a) with
respect to such wages, but only if such governmental unit deducts and withholds
wages for such payroll period under section 3401 (relating to wage
withholding).</text>
</paragraph></subsection><subsection id="H3C470171784848BE0084D6004B4999A3"><enum>(e)</enum><header>Reporting</header><text display-inline="yes-display-inline">The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly submit to the
Secretary an annual report—</text>
<paragraph id="H9E8CF580E64348EEAF66B6B25ED3F38E"><enum>(1)</enum><text>which
certifies—</text>
<subparagraph id="H38388B6E5A65435E90B3AA438E3C5011"><enum>(A)</enum><text display-inline="yes-display-inline">the qualifying project expenditure amount
for the calendar year, and</text>
</subparagraph><subparagraph id="HCF307CD0F690469B890957F420CA2299"><enum>(B)</enum><text display-inline="yes-display-inline">the amount allocated to each New York
Liberty Zone governmental unit under subsection (b)(3) for the calendar year,
and</text>
</subparagraph></paragraph><paragraph id="HECACA71E1BAD4C009DB4D7641F612DF4"><enum>(2)</enum><text>includes such
other information as the Secretary may require to carry out this
section.</text>
</paragraph></subsection><subsection commented="no" id="H41BD160FDD3448DFB0CAAC6C50A28C90"><enum>(f)</enum><header>Guidance</header><text>The
Secretary may prescribe such guidance as may be necessary or appropriate to
ensure compliance with the purposes of this section.</text>
</subsection><subsection id="H6170CDBE492B4BFB907470EEEA028C84"><enum>(g)</enum><header>Termination</header><text>No
credit shall be allowed under subsection (a) for any calender year after
2026.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H27AFF421C5DF4466BE9ED964821DA800"><enum>(b)</enum><header>Termination of
certain New York Liberty Zone benefits</header>
<paragraph id="H00020FB4316A41EDA127E9565326C067"><enum>(1)</enum><header>Special
allowance and expensing</header><text>Section 1400K(b)(2)(A)(v), as
redesignated by subsection (a), is amended by striking <quote>the termination
date</quote> and inserting <quote>the date of the enactment of the
<short-title>Tax Relief and Minimum Wage Act of
2006</short-title> or the termination date if pursuant to a binding contract in
effect on such enactment date</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6322937711184FDA8E715CF60034BCB9"><enum>(2)</enum><header>Leasehold</header><text display-inline="yes-display-inline">Section 1400K(c)(2)(B), as so redesignated,
is amended by striking <quote>before January 1, 2007</quote> and inserting
<quote>on or before the date of the enactment of the
<short-title>Tax Relief and Minimum Wage Act of
2006</short-title> or before January 1, 2007, if pursuant to a binding contract
in effect on such enactment date</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H30E0375666014D2C9BB233B2BFA0CC4C"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="HA24CA0CAA0204961B952C38D6E1B1CE6"><enum>(1)</enum><text>Section
38(c)(3)(B) is amended by striking <quote>section 1400L(a)</quote> and
inserting <quote>section 1400K(a)</quote>.</text>
</paragraph><paragraph commented="no" id="H2A66E6D538034C70A9908B953BEEF4A4"><enum>(2)</enum><text>Section
168(k)(2)(D)(ii) is amended by striking <quote>section 1400L(c)(2)</quote> and
inserting <quote>1400K(c)(2)</quote>.</text>
</paragraph><paragraph commented="no" id="HDD2BC89D51184E149D5ED800E22929A5"><enum>(3)</enum><text>The table of
sections for part I of subchapter Y of chapter 1 is amended by striking
<quote>1400L</quote> and inserting <quote>1400K</quote>.</text>
</paragraph></subsection><subsection id="H8A740551020B427F8273DE38A5AE131B"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="H9AEB171046F744EAAC59CBFBCF657077"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to periods beginning after December 31,
2006.</text>
</paragraph><paragraph id="HC8815C15BA034FB996AC101816BFD4BE"><enum>(2)</enum><header>Subsection
<enum-in-header>(b)</enum-in-header></header><text>The amendments made by
subsection (b) shall take effect as if included in section 301 of the Job
Creation and Worker Assistance Act of 2002.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H08999BCF0FBF449CA7A733BA9A8CEDB" section-type="subsequent-section"><enum>121.</enum><header>Extension of bonus
depreciation for certain qualified Gulf Opportunity Zone property</header>
<subsection id="HBA94DD7636594628A12F1BB31A575C3"><enum>(a)</enum><header>In
general</header><text>Subsection (d) of section 1400N is amended by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4F7AD23C6D6A4D30ABD96023DD88D816" style="OLC">
<paragraph id="H8CD207FD5D76411AB3FA005EF136FA2D"><enum>(6)</enum><header>Extension for
certain property</header>
<subparagraph id="H9DA8813CC8414D8092BFF440EB93BC64"><enum>(A)</enum><header>In
general</header><text>In the case of any specified Gulf Opportunity Zone
extension property, paragraph (2)(A) shall be applied without regard to clause
(v) thereof.</text>
</subparagraph><subparagraph id="H3BE45BF1F26F463E00BA55B998F98CFC"><enum>(B)</enum><header>Specified gulf
opportunity zone extension property</header><text>For purposes of this
paragraph, the term <term>specified Gulf Opportunity Zone extension
property</term> means property—</text>
<clause id="HB6E3063619B444F38D1C7C6E51D6AC7C"><enum>(i)</enum><text>substantially all
of the use of which is in one or more specified portions of the GO Zone,
and</text>
</clause><clause id="H58CCBB0A3AE640639E1504C161080011"><enum>(ii)</enum><text>which is—</text>
<subclause id="H321E551988F0495AAADC9E80BAD5EEE"><enum>(I)</enum><text>nonresidential real
property or residential rental property which is placed in service by the
taxpayer on or before December 31, 2009, or</text>
</subclause><subclause id="H89361072968841778456A84244008C16"><enum>(II)</enum><text>in the case of a
taxpayer who places a building described in subclause (I) in service on or
before December 31, 2009, property described in section 168(k)(2)(A)(i) if
substantially all of the use of such property is in such building and such
property is placed in service by the taxpayer not later than 90 days after such
building is placed in service.</text>
</subclause></clause></subparagraph><subparagraph id="HF7D99FED1B204091A037F17E016800D3"><enum>(C)</enum><header>Specified
portions of the go zone</header><text>For purposes of this paragraph, the term
<term>specified portions of the GO Zone</term> means those portions of the GO
Zone which are in any county or parish which is identified by the Secretary as
being a county or parish in which hurricanes occurring during 2005 damaged (in
the aggregate) more than 40 percent of the housing units in such county or
parish which were occupied (determined according to the 2000
Census).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8E7BD0C452DD4594B805C6045CFA7382"><enum>(b)</enum><header>Extension not
applicable to increased section 179 expensing</header><text>Paragraph (2) of
section 1400N(e) is amended by inserting <quote>without regard to subsection
(d)(6)</quote> after <quote>subsection (d)(2)</quote>.</text>
</subsection><subsection id="H59B705AD999042F3A076FCB48C10B26C"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect as if
included in section 101 of the Gulf Opportunity Zone Act of 2005.</text>
</subsection></section><section commented="no" id="HD8AA2CDE5BDF4DA5B94635B915B26790"><enum>122.</enum><header>Authority for
undercover operations</header><text display-inline="no-display-inline">Paragraph (6) of section 7608(c) (relating
to application of section) is amended by striking <quote>2007</quote> both
places it appears and inserting <quote>2008</quote>.</text>
</section><section commented="no" id="H02D6C119BC2F48D7ABBAE9B800972381"><enum>123.</enum><header>Disclosures of
certain tax return information</header>
<subsection commented="no" id="HF54DF2AB737049829050BB79E97CBF13"><enum>(a)</enum><header>Disclosures To
Facilitate Combined Employment Tax Reporting</header>
<paragraph commented="no" id="H128B10CF451341739C0093E68BE2477E"><enum>(1)</enum><header>In
general</header><text>Subparagraph (B) of section 6103(d)(5) (relating to
termination) is amended by striking <quote>2006</quote> and inserting
<quote>2007</quote>.</text>
</paragraph><paragraph commented="no" id="H665C54A54D2F4285B135FB9116BC8630"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by paragraph (1) shall apply to
disclosures after December 31, 2006.</text>
</paragraph></subsection><subsection commented="no" id="HEEFCE5A171EC49879C9E16A54BE18C11"><enum>(b)</enum><header>Disclosures
Relating to Terrorist Activities</header>
<paragraph commented="no" id="H28607D02F40142FE8B133E3E2BED4519"><enum>(1)</enum><header>In
general</header><text>Clause (iv) of section 6103(i)(3)(C) and subparagraph (E)
of section 6103(i)(7) are each amended by striking <quote>2006</quote> and
inserting <quote>2007</quote>.</text>
</paragraph><paragraph commented="no" id="H960F9F4997194122BCD185EC4D62C669"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by paragraph (1) shall apply to
disclosures after December 31, 2006.</text>
</paragraph></subsection><subsection commented="no" id="H9DDF7BE5191244FBAA351E17CD294DD3"><enum>(c)</enum><header>Disclosures
Relating to Student Loans</header>
<paragraph commented="no" id="HB21D4ADA8B854E06A6CF07ABD33C09CE"><enum>(1)</enum><header>In
general</header><text>Subparagraph (D) of section 6103(l)(13) (relating to
termination) is amended by striking <quote>2006</quote> and inserting
<quote>2007</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCE78B57FFB6D495DA6E84004A877FAD6"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by paragraph (1) shall apply to requests
made after December 31, 2006.</text>
</paragraph></subsection></section></subtitle><subtitle id="H020C7CB17DA84F0DB364D3F38EB96900"><enum>B</enum><header>Other
Provisions</header>
<section display-inline="no-display-inline" id="H65315C1088CF466BA100FAFF8CBCF34E"><enum>131.</enum><header>Deduction
allowable with respect to income attributable to domestic production activities
in Puerto Rico</header>
<subsection id="H33B4C75CCBC84C889B2B38E4D0C5FF57"><enum>(a)</enum><header>In
general</header><text>Subsection (d) of section 199 (relating to definitions
and special rules) is amended by redesignating paragraph (8) as paragraph (9)
and by inserting after paragraph (7) the following new paragraph:</text>
<quoted-block id="H36F01FA70A684657BB971D8918A90099">
<paragraph id="HD2467B131F0C49CC9930AD82DC505D9"><enum>(8)</enum><header>Treatment of
activities in Puerto Rico</header>
<subparagraph id="HF6216E65655F4434A1A98D469E00354E"><enum>(A)</enum><header>In
general</header><text>In the case of any taxpayer with gross receipts for any
taxable year from sources within the Commonwealth of Puerto Rico, if all of
such receipts are taxable under section 1 or 11 for such taxable year, then for
purposes of determining the domestic production gross receipts of such taxpayer
for such taxable year under subsection (c)(4), the term <term>United
States</term> shall include the Commonwealth of Puerto Rico.</text>
</subparagraph><subparagraph id="H16CB10C45314493287005776394C3900"><enum>(B)</enum><header>Special rule for
applying wage limitation</header><text display-inline="yes-display-inline">In
the case of any taxpayer described in subparagraph (A), for purposes of
applying the limitation under subsection (b) for any taxable year, the
determination of W–2 wages of such taxpayer shall be made without regard to any
exclusion under section 3401(a)(8) for remuneration paid for services performed
in Puerto Rico.</text>
</subparagraph><subparagraph id="H2DB75F8714604A2298082499A4DCB14"><enum>(C)</enum><header>Termination</header><text>This
paragraph shall apply only with respect to the first 2 taxable years of the
taxpayer beginning after December 31, 2005, and before January 1,
2008.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA6937B0A1F064E68B500BAF5280CB00"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><section id="HC41442771DE0453CA983F0002998461C"><enum>132.</enum><header>Credit for
prior year minimum tax liability made refundable after period of years</header>
<subsection id="H276FA15B00B94C26AD007B0027B9D6E6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 53 (relating
to credit for prior year minimum tax liability) is amended by adding at the end
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H04B8FEAD96974411AFCEB0CC40FE145B" style="OLC">
<subsection id="H361C6B23E44345CA8880325B6CB9DA41"><enum>(e)</enum><header>Special rule for
individuals with long-term unused credits</header>
<paragraph id="H4CBC6E283BE747939C59DEEF35E0752C"><enum>(1)</enum><header>In
general</header><text>If an individual has a long-term unused minimum tax
credit for any taxable year beginning before January 1, 2013, the amount
determined under subsection (c) for such taxable year shall not be less than
the AMT refundable credit amount for such taxable year.</text>
</paragraph><paragraph id="H59C447F2867E43FBBE75906D59081EE5"><enum>(2)</enum><header>Amt refundable
credit amount</header><text>For purposes of paragraph (1)—</text>
<subparagraph id="HE544CBD8EC6749F8BE12881ECF4EE665"><enum>(A)</enum><header>In
general</header><text>The term <term>AMT refundable credit amount</term> means,
with respect to any taxable year, the amount equal to the greater of—</text>
<clause id="HCAFD9B707F95483786BFAE00F90404C5"><enum>(i)</enum><text>the lesser
of—</text>
<subclause id="HDDC92D9FBE8744C0B6BA6FE6AFDFF0B"><enum>(I)</enum><text>$5,000, or</text>
</subclause><subclause id="H8A7060087B074ED7B32EBC754015A2A5"><enum>(II)</enum><text>the amount of
long-term unused minimum tax credit for such taxable year, or</text>
</subclause></clause><clause id="H575304B82BF54C01B544A913E55FDCA"><enum>(ii)</enum><text>20
percent of the amount of such credit.</text>
</clause></subparagraph><subparagraph id="HF2CA83C36D9E42668E4D002C67BB01B"><enum>(B)</enum><header>Phaseout of amt
refundable credit amount</header>
<clause id="HABDC743E528C4E5FA9DFAAA7A6B8786E"><enum>(i)</enum><header>In
general</header><text>In the case of an individual whose adjusted gross income
for any taxable year exceeds the threshold amount (within the meaning of
section 151(d)(3)(C)), the AMT refundable credit amount determined under
subparagraph (A) for such taxable year shall be reduced by the applicable
percentage (within the meaning of section 151(d)(3)(B)).</text>
</clause><clause id="HF0D650B6213C494B98D5918294FCE805"><enum>(ii)</enum><header>Adjusted gross
income</header><text>For purposes of clause (i), adjusted gross income shall be
determined without regard to sections 911, 931, and 933.</text>
</clause></subparagraph></paragraph><paragraph id="H8CE00021E6E5456C00E5E547EDAAFCE1"><enum>(3)</enum><header>Long-term unused
minimum tax credit</header>
<subparagraph id="H34430A255E254262BA71807F5235976E"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the term <term>long-term
unused minimum tax credit</term> means, with respect to any taxable year, the
portion of the minimum tax credit determined under subsection (b) attributable
to the adjusted net minimum tax for taxable years before the 3rd taxable year
immediately preceding such taxable year.</text>
</subparagraph><subparagraph id="HCF73C60B8C314C32B4416BC3F5EC0741"><enum>(B)</enum><header>First-in,
first-out ordering rule</header><text>For purposes of subparagraph (A), credits
shall be treated as allowed under subsection (a) on a first-in, first-out
basis.</text>
</subparagraph></paragraph><paragraph id="HBB5DF9A1ADFE4ACA9ED63D5435DAA67"><enum>(4)</enum><header>Credit
refundable</header><text>For purposes of this title (other than this section),
the credit allowed by reason of this subsection shall be treated as if it were
allowed under subpart
C.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H47C7911383384A54802FF8D41E3C63E"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H3CEF908F3C874D4582E2441FECB6E36D"><enum>(1)</enum><text>Section
6211(b)(4)(A) is amended by striking <quote>and 34</quote> and inserting
<quote>34, and 53(e)</quote>.</text>
</paragraph><paragraph id="H45D007C82A1D496EB7DF30ADE705DCBD"><enum>(2)</enum><text>Paragraph (2) of
section 1324(b) of title 31, United States Code, is amended by inserting
<quote>or 53(e)</quote> after <quote>section 35</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2E149736EFE44F158B331B64424302F1"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="HF083187504B445489E0882507053D5B9"><enum>133.</enum><header>Returns
required in connection with certain options</header>
<subsection id="H7EDF8D6FEEA6474D86B61B31377FF7F7"><enum>(a)</enum><header>In
general</header><text>So much of section 6039(a) as follows paragraph (2) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H415B74F5F79E4A178C6E0948ED45DFE" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">shall,
for such calendar year, make a return at such time and in such manner, and
setting forth such information, as the Secretary may by regulations
prescribe.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H46EC49D3C8724DC78888EE00873F78EC"><enum>(b)</enum><header>Statements to
persons with respect to whom information is furnished</header><text>Section
6039 is amended by redesignating subsections (b) and (c) as subsection (c) and
(d), respectively, and by inserting after subsection (a) the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HDA05D87690EF4E68B08B724D00605B2F" style="OLC">
<subsection id="HEA321863386242F9BB9F71145DA5482F"><enum>(b)</enum><header>Statements to be
furnished to persons with respect to whom information is
reported</header><text>Every corporation making a return under subsection (a)
shall furnish to each person whose name is set forth in such return a written
statement setting forth such information as the Secretary may by regulations
prescribe. The written statement required under the preceding sentence shall be
furnished to such person on or before January 31 of the year following the
calendar year for which the return under subsection (a) was
made.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H74AB0D3A4CF64A29BBAD6F1E9C59573"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="HC7D185F04010417EA2212232548C23B2"><enum>(1)</enum><text>Section
6724(d)(1)(B) is amended by striking <quote>or</quote> at the end of clause
(xvii), by striking <quote>and</quote> at the end of clause (xviii) and
inserting <quote>or</quote>, and by adding at the end the following new
clause:</text>
<quoted-block display-inline="no-display-inline" id="H89F906ED8D2A4A84BE046073C6106C6" style="OLC">
<clause id="H5077090F93644585855CC80645AA591C"><enum>(xix)</enum><text>section 6039(a)
(relating to returns required with respect to certain options),
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD66BF746E19E470ABDBDBBC858232B07"><enum>(2)</enum><text>Section
6724(d)(2)(B) is amended by striking <quote>section 6039(a)</quote> and
inserting <quote>section 6039(b)</quote>.</text>
</paragraph><paragraph id="H9A9620DDE9F8458FAE7967078555B319"><enum>(3)</enum><text>The heading of
section 6039 and the item relating to such section in the table of sections of
subpart A of part III of subchapter A of chapter 61 of such Code are each
amended by striking <quote>Information</quote> and inserting
<quote>Returns</quote>.</text>
</paragraph><paragraph id="HAA21671069224F12936059598DB8933E"><enum>(4)</enum><text>The heading of
subsection (a) of section 6039 is amended by striking <quote><header-in-text level="subsection" style="OLC">Furnishing of
information</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Requirement of reporting</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC1878E5FBAEB43239463E5DC4DBF7BD4"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to calendar
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HEE82AD9F41364CD3A21BAC36846B7007" section-type="subsequent-section"><enum>134.</enum><header>Partial expensing
for advanced mine safety equipment</header>
<subsection id="HA3E2A0C471B14B4C81B7ACF9F21EB0D3"><enum>(a)</enum><header>In
general</header><text>Part VI of subchapter B of chapter 1 is amended by
inserting after section 179D the following new section:</text>
<quoted-block id="H494EF45E09FC4940BCAEF086517E7600">
<section id="H4D5341E6BA664CEAA487B4B4E45F8D4"><enum>179E.</enum><header>Election to
expense advanced mine safety equipment</header>
<subsection id="H045CC9084FDA4E3B96F032598ADEF03"><enum>(a)</enum><header>Treatment as
expenses</header><text>A taxpayer may elect to treat 50 percent of the cost of
any qualified advanced mine safety equipment property as an expense which is
not chargeable to capital account. Any cost so treated shall be allowed as a
deduction for the taxable year in which the qualified advanced mine safety
equipment property is placed in service.</text>
</subsection><subsection id="H959FB001214546DCB9678DE355DE4000"><enum>(b)</enum><header>Election</header>
<paragraph id="HC63722C66C57464588C63D4993D45100"><enum>(1)</enum><header>In
General</header><text>An election under this section for any taxable year shall
be made on the taxpayer’s return of the tax imposed by this chapter for the
taxable year. Such election shall specify the advanced mine safety equipment
property to which the election applies and shall be made in such manner as the
Secretary may by regulations prescribe.</text>
</paragraph><paragraph id="H4372D7B25657463A90958C2D2199F120"><enum>(2)</enum><header>Election
irrevocable</header><text>Any election made under this section may not be
revoked except with the consent of the Secretary.</text>
</paragraph></subsection><subsection id="HFF51FCD591944959AD69FE21BE3E232C"><enum>(c)</enum><header>Qualified
advanced mine safety equipment property</header><text>For purposes of this
section, the term <term>qualified advanced mine safety equipment
property</term> means any advanced mine safety equipment property for use in
any underground mine located in the United States—</text>
<paragraph id="H2B95CC7C46D342A3A5E0C82FA6DCB94"><enum>(1)</enum><text>the original use of
which commences with the taxpayer, and</text>
</paragraph><paragraph id="H71A1C571C84F4D63AEC316064489A022"><enum>(2)</enum><text>which is placed in
service by the taxpayer after the date of the enactment of this section.</text>
</paragraph></subsection><subsection id="H861EFF619BF04AE6A4F760380304E529"><enum>(d)</enum><header>Advanced mine
safety equipment property</header><text>For purposes of this section, the term
<term>advanced mine safety equipment property</term> means any of the
following:</text>
<paragraph id="HEE00BA3E6F6746E795ACA28283EC1700"><enum>(1)</enum><text>Emergency
communication technology or device which is used to allow a miner to maintain
constant communication with an individual who is not in the mine.</text>
</paragraph><paragraph id="HC20B1C60BEE34D1C96074C32733535B1"><enum>(2)</enum><text>Electronic
identification and location device which allows an individual who is not in the
mine to track at all times the movements and location of miners working in or
at the mine.</text>
</paragraph><paragraph id="H76D5E934722E4A5F9B8EF5F440D248C7"><enum>(3)</enum><text>Emergency
oxygen-generating, self-rescue device which provides oxygen for at least 90
minutes.</text>
</paragraph><paragraph id="HC78529AE8602458ABCBFB79794A6BC4E"><enum>(4)</enum><text>Pre-positioned
supplies of oxygen which (in combination with self-rescue devices) can be used
to provide each miner on a shift, in the event of an accident or other event
which traps the miner in the mine or otherwise necessitates the use of such a
self-rescue device, the ability to survive for at least 48 hours.</text>
</paragraph><paragraph id="H256E903633264974934B085CCC93CF14"><enum>(5)</enum><text>Comprehensive
atmospheric monitoring system which monitors the levels of carbon monoxide,
methane, and oxygen that are present in all areas of the mine and which can
detect smoke in the case of a fire in a mine.</text>
</paragraph></subsection><subsection id="H34D9E2B4E4B4404F82615241CB465EDD"><enum>(e)</enum><header>Coordination
with section <enum-in-header>179</enum-in-header></header><text>No expenditures
shall be taken into account under subsection (a) with respect to the portion of
the cost of any property specified in an election under section 179.</text>
</subsection><subsection id="HA1F5E252EE7D4BD587551CB724A852E0"><enum>(f)</enum><header>Reporting</header><text>No
deduction shall be allowed under subsection (a) to any taxpayer for any taxable
year unless such taxpayer files with the Secretary a report containing such
information with respect to the operation of the mines of the taxpayer as the
Secretary shall require.</text>
</subsection><subsection id="H5744BA08873C4C1F8F36A6B71FAE32E9"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply to property placed in service after December 31,
2008.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H982FA6F7F8A24DF5BDCC7F05E05384A3"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HF2FA672285EC41C5AB79E0FCE958C193"><enum>(1)</enum><text>Section 263(a)(1)
is amended by striking <quote>or</quote> at the end of subparagraph (J), by
striking the period at the end of subparagraph (K) and inserting <quote>,
or</quote>, and by inserting after subparagraph (K) the following new
subparagraph:</text>
<quoted-block id="HA2F6A858E8684FC09BEEE16F39B5B928">
<subparagraph id="H113869BEB5B64AF1A978A019C707DAC0"><enum>(L)</enum><text>expenditures for
which a deduction is allowed under section
179E.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HCDC2706EBF8B4E34A370F415247265F0"><enum>(2)</enum><text>Section
312(k)(3)(B) is amended by striking <quote>or 179D</quote> each place it
appears in the heading and text thereof and inserting <quote>179D, or
179E</quote>.</text>
</paragraph><paragraph id="H9D314394A16B488393E5AB0F9FD8F68"><enum>(3)</enum><text>Paragraphs (2)(C)
and (3)(C) of section 1245(a) are each amended by inserting
<quote>179E,</quote> after <quote>179D,</quote>.</text>
</paragraph><paragraph id="H60F4FEBF59D14D3E00E2F70206438F16"><enum>(4)</enum><text>The table of
sections for part VI of subchapter B of chapter 1 is amended by inserting after
the item relating to section 179D the following new item:</text>
<quoted-block id="HEF5A7D5A4D2B43A100027ECCDF89AE04" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 179E. Election to expense advanced
mine safety
equipment.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HB53BE8CA109B4D29A975C561A6DA78B8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to costs
paid or incurred after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H33B42AC6EB3B4AFE82BA16F546D80990" section-type="subsequent-section"><enum>135.</enum><header>Mine rescue team
training tax credit</header>
<subsection id="HDAA9ACCBE3C74A8E8692005BEA2C8019"><enum>(a)</enum><header>In
General</header><text>Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) is amended by adding at the end the
following new section:</text>
<quoted-block id="H95D05C01A52242C9B9BBC716B749441E">
<section id="HAC5947F8974C4A2383E8C987D31E3335"><enum>45N.</enum><header>Mine rescue
team training credit</header>
<subsection id="H9969F5EFA03246D3BF05B508CB30800"><enum>(a)</enum><header>Amount of
credit</header><text>For purposes of section 38, the mine rescue team training
credit determined under this section with respect to each qualified mine rescue
team employee of an eligible employer for any taxable year is an amount equal
to the lesser of—</text>
<paragraph id="H0AD78592AC014427BB0218B32E9CDB9"><enum>(1)</enum><text>20 percent of the
amount paid or incurred by the taxpayer during the taxable year with respect to
the training program costs of such qualified mine rescue team employee
(including wages of such employee while attending such program), or</text>
</paragraph><paragraph id="HF59D71ABF0EE4B15A7E1CDC2044E253E"><enum>(2)</enum><text>$10,000.</text>
</paragraph></subsection><subsection id="H964D2E6588FD48FAA9E700E0AB5C9889"><enum>(b)</enum><header>Qualified mine
rescue team employee</header><text>For purposes of this section, the term
<term>qualified mine rescue team employee</term> means with respect to any
taxable year any full-time employee of the taxpayer who is—</text>
<paragraph id="H0E6C50E6D78C4CEC92076C5DD8AC6926"><enum>(1)</enum><text>a miner eligible
for more than 6 months of such taxable year to serve as a mine rescue team
member as a result of completing, at a minimum, an initial 20-hour course of
instruction as prescribed by the Mine Safety and Health Administration’s Office
of Educational Policy and Development, or</text>
</paragraph><paragraph id="H54984352C2E148AF8FBF9751DEB69B93"><enum>(2)</enum><text>a miner eligible
for more than 6 months of such taxable year to serve as a mine rescue team
member by virtue of receiving at least 40 hours of refresher training in such
instruction.</text>
</paragraph></subsection><subsection id="HF30C04DBE1BF45E39F74827C16910027"><enum>(c)</enum><header>Eligible
employer</header><text>For purposes of this section, the term <term>eligible
employer</term> means any taxpayer which employs individuals as miners in
underground mines in the United States.</text>
</subsection><subsection id="H93E95C3C33CB4E3BA534B305FE13A0AD"><enum>(d)</enum><header>Wages</header><text>For
purposes of this section, the term <term>wages</term> has the meaning given to
such term by subsection (b) of section 3306 (determined without regard to any
dollar limitation contained in such section).</text>
</subsection><subsection id="H4A0CE7384A7F4DA78F64AF06A660DD00"><enum>(e)</enum><header>Termination</header><text>This
section shall not apply to taxable years beginning after December 31,
2008.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H829C2273F35F4970BC43ABAB38D83972"><enum>(b)</enum><header>Credit made part
of general business credit</header><text>Section 38(b) is amended by striking
<quote>and</quote> at the end of paragraph (29), by striking the period at the
end of paragraph (30) and inserting <quote>, plus</quote>, and by adding at the
end the following new paragraph:</text>
<quoted-block id="H25175A22245A4093ADF10179D6954F8E">
<paragraph id="H4D4AF2597DE646F4BB06900038092261"><enum>(31)</enum><text>the mine rescue
team training credit determined under section
45N(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBAD89959379B4C3CA7C49ED27B20B516"><enum>(c)</enum><header>No double
benefit</header><text>Section 280C is amended by adding at the end the
following new subsection:</text>
<quoted-block id="HC3DA127635B34259933472250178789F">
<subsection id="H75737F5ADFD64A1300B24F305CB38550"><enum>(e)</enum><header>Mine rescue team
training credit</header><text>No deduction shall be allowed for that portion of
the expenses otherwise allowable as a deduction for the taxable year which is
equal to the amount of the credit determined for the taxable year under section
45N(a).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0A080D2521D34C23B5F5066F31D0702C"><enum>(d)</enum><header>Clerical
amendment</header><text>The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the following new
item:</text>
<quoted-block id="HAC5F7E63156E43688819DEF351E6A2A4" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45N. Mine rescue team training
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H24270118F3A54993A580626FE0EB4854"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><section display-inline="no-display-inline" id="HC34D97E0013043E3A2BCF223DD00A4BA" section-type="subsequent-section"><enum>136.</enum><header>Whistleblower
reforms</header>
<subsection id="H3BD41828116242E1A544811D9CC674F6"><enum>(a)</enum><header>Awards to
whistleblowers</header>
<paragraph id="H3C7FECC5451B43E3A2DD386DB47FD2F"><enum>(1)</enum><header>In
general</header><text>Section 7623 (relating to expenses of detection of
underpayments and fraud, etc.) is amended—</text>
<subparagraph id="H90987E0FBB794920B73C26E8256F00CB"><enum>(A)</enum><text>by striking
<quote>The Secretary</quote> and inserting <quote>(a)
<header-in-text level="subsection" style="OLC">In general</header-in-text>.—The
Secretary</quote>,</text>
</subparagraph><subparagraph id="HE6DE32BA886445B5A124C360872CC417"><enum>(B)</enum><text>by striking
<quote>and</quote> at the end of paragraph (1) and inserting
<quote>or</quote>,</text>
</subparagraph><subparagraph id="H72ACA76BE094487BB37EB101D384DD94"><enum>(C)</enum><text>by striking
<quote>(other than interest)</quote>, and</text>
</subparagraph><subparagraph id="H4F51B4A587B1498F93E9E8682FA58CA6"><enum>(D)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HE3E4EA81CD5441E49416CB2FAAC04F1E" style="OLC">
<subsection id="H64AB0A81A0DF4E298DDE87A7877E9807"><enum>(b)</enum><header>Awards to
whistleblowers</header>
<paragraph id="HAC6176B5849B4AC3A71D33DA4D48E8CD"><enum>(1)</enum><header>In
general</header><text>If the Secretary proceeds with any administrative or
judicial action described in subsection (a) based on information brought to the
Secretary’s attention by an individual, such individual shall, subject to
paragraph (2), receive as an award at least 15 percent but not more than 30
percent of the collected proceeds (including penalties, interest, additions to
tax, and additional amounts) resulting from the action (including any related
actions) or from any settlement in response to such action. The determination
of the amount of such award by the Whistleblower Office shall depend upon the
extent to which the individual substantially contributed to such action.</text>
</paragraph><paragraph id="HEB24B6C4658B4F8DA1172600ECEFF544"><enum>(2)</enum><header>Award in case of
less substantial contribution</header>
<subparagraph id="H44639B2A27CA48C1B5132D12EB845CC6"><enum>(A)</enum><header>In
general</header><text>In the event the action described in paragraph (1) is one
which the Whistleblower Office determines to be based principally on
disclosures of specific allegations (other than information provided by the
individual described in paragraph (1)) resulting from a judicial or
administrative hearing, from a governmental report, hearing, audit, or
investigation, or from the news media, the Whistleblower Office may award such
sums as it considers appropriate, but in no case more than 10 percent of the
collected proceeds (including penalties, interest, additions to tax, and
additional amounts) resulting from the action (including any related actions)
or from any settlement in response to such action, taking into account the
significance of the individual’s information and the role of such individual
and any legal representative of such individual in contributing to such
action.</text>
</subparagraph><subparagraph id="HEAE460457AF140E480AD417DD8A21EA"><enum>(B)</enum><header>Nonapplication of
paragraph where individual is original source of
information</header><text>Subparagraph (A) shall not apply if the information
resulting in the initiation of the action described in paragraph (1) was
originally provided by the individual described in paragraph (1).</text>
</subparagraph></paragraph><paragraph id="H7FEE96CD001F456F8149285900D6BE21"><enum>(3)</enum><header>Reduction in or
denial of award</header><text>If the Whistleblower Office determines that the
claim for an award under paragraph (1) or (2) is brought by an individual who
planned and initiated the actions that led to the underpayment of tax or
actions described in subsection (a)(2), then the Whistleblower Office may
appropriately reduce such award. If such individual is convicted of criminal
conduct arising from the role described in the preceding sentence, the
Whistleblower Office shall deny any award.</text>
</paragraph><paragraph id="H04971602AE9944BD8C51626503E62805"><enum>(4)</enum><header>Appeal of award
determination</header><text display-inline="yes-display-inline">Any
determination regarding an award under paragraph (1), (2), or (3) may, within
30 days of such determination, be appealed to the Tax Court (and the Tax Court
shall have jurisdiction with respect to such matter).</text>
</paragraph><paragraph id="H1155F006720948C78BF4EDF6A800E729"><enum>(5)</enum><header>Application of
this subsection</header><text>This subsection shall apply with respect to any
action—</text>
<subparagraph id="HC55520F65A344A10B7C1D9507DC66494"><enum>(A)</enum><text>against any
taxpayer, but in the case of any individual, only if such individual’s gross
income exceeds $200,000 for any taxable year subject to such action, and</text>
</subparagraph><subparagraph id="HCA6B917EF6FF467DBE44690044A54B1E"><enum>(B)</enum><text>if the tax,
penalties, interest, additions to tax, and additional amounts in dispute exceed
$2,000,000.</text>
</subparagraph></paragraph><paragraph id="H0EC48899416D44AA85B0FE81D8C5D010"><enum>(6)</enum><header>Additional
rules</header>
<subparagraph id="H6ECCB82010FA4AB1AB90B4FB6F79D843"><enum>(A)</enum><header>No contract
necessary</header><text>No contract with the Internal Revenue Service is
necessary for any individual to receive an award under this subsection.</text>
</subparagraph><subparagraph id="HA584521C5DD74E02B0C80993EC16416"><enum>(B)</enum><header>Representation</header><text>Any
individual described in paragraph (1) or (2) may be represented by
counsel.</text>
</subparagraph><subparagraph id="H9AC662DC1E894414852D855222B502E8"><enum>(C)</enum><header>Submission of
information</header><text>No award may be made under this subsection based on
information submitted to the Secretary unless such information is submitted
under penalty of
perjury.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC4094FFCD86E4AE5A50934FBED10E3BB"><enum>(2)</enum><header>Assignment to
special trial judges</header>
<subparagraph id="HB11915B369364B83B53FA55CCFBB4513"><enum>(A)</enum><header>In
general</header><text>Section 7443A(b) (relating to proceedings which may be
assigned to special trial judges) is amended by striking <quote>and</quote> at
the end of paragraph (4), by redesignating paragraph (5) as paragraph (6), and
by inserting after paragraph (4) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD4F5220F577F43B58B82CD7EBBCCE5BF" style="OLC">
<paragraph id="H67C6808FBD944232885D98F7E530C24F"><enum>(5)</enum><text>any proceeding
under section 7623(b)(4),
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph display-inline="no-display-inline" id="HEC7E761A5EF346B2A735009F3D5BFB09"><enum>(B)</enum><header>Conforming
amendment</header><text>Section 7443A(c) is amended by striking <quote>or
(4)</quote> and inserting <quote>(4), or (5)</quote>.</text>
</subparagraph></paragraph><paragraph id="H313E405815BD4E0395A449F9A8B345D0"><enum>(3)</enum><header>Deduction
allowed whether or not taxpayer itemizes</header><text>Subsection (a) of
section 62 (relating to general rule defining adjusted gross income) is amended
by inserting after paragraph (20) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H42E52B4CB7824DC0B94F00AF734E02C4" style="OLC">
<paragraph id="H0A2094B88F55422891021C008EA5302C"><enum>(21)</enum><header>Attorneys fees
relating to awards to whistleblowers</header><text display-inline="yes-display-inline">Any deduction allowable under this chapter
for attorney fees and court costs paid by, or on behalf of, the taxpayer in
connection with any award under section 7623(b) (relating to awards to
whistleblowers). The preceding sentence shall not apply to any deduction in
excess of the amount includible in the taxpayer’s gross income for the taxable
year on account of such
award.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H57018DA71B794BE79B92000012061000"><enum>(b)</enum><header>Whistleblower
Office</header>
<paragraph id="H973C2654B9144B8DB681955BD55000C4"><enum>(1)</enum><header>In
general</header><text>Not later than the date which is 12 months after the date
of the enactment of this Act, the Secretary of the Treasury shall issue
guidance for the operation of a whistleblower program to be administered in the
Internal Revenue Service by an office to be known as the <quote>Whistleblower
Office</quote> which—</text>
<subparagraph id="H341C2D4AA29C40F0BAD5DF19F774FB38"><enum>(A)</enum><text>shall at all times
operate at the direction of the Commissioner of Internal Revenue and coordinate
and consult with other divisions in the Internal Revenue Service as directed by
the Commissioner of Internal Revenue,</text>
</subparagraph><subparagraph id="HAB50D78193854E698601B5FFB76F338C"><enum>(B)</enum><text>shall analyze
information received from any individual described in section 7623(b) of the
Internal Revenue Code of 1986 and either investigate the matter itself or
assign it to the appropriate Internal Revenue Service office, and</text>
</subparagraph><subparagraph id="H82F74147104A49E9B6AEE271431826D1"><enum>(C)</enum><text>in its sole
discretion, may ask for additional assistance from such individual or any legal
representative of such individual.</text>
</subparagraph></paragraph><paragraph id="H921C78295796473AA221964E265DA760"><enum>(2)</enum><header>Request for
assistance</header><text>The guidance issued under paragraph (1) shall specify
that any assistance requested under paragraph (1)(C) shall be under the
direction and control of the Whistleblower Office or the office assigned to
investigate the matter under paragraph (1)(A). No individual or legal
representative whose assistance is so requested may by reason of such request
represent himself or herself as an employee of the Federal Government.</text>
</paragraph></subsection><subsection id="H4D4D309961F44E30B0D233866E10554B"><enum>(c)</enum><header>Report by
Secretary</header><text>The Secretary of the Treasury shall each year conduct a
study and report to Congress on the use of section 7623 of the Internal Revenue
Code of 1986, including—</text>
<paragraph id="HA0E6E035C6164A62971D00BABA7CAAA1"><enum>(1)</enum><text>an analysis of the
use of such section during the preceding year and the results of such use,
and</text>
</paragraph><paragraph id="HF85069480F1844A2BB729DB54900002B"><enum>(2)</enum><text>any legislative or
administrative recommendations regarding the provisions of such section and its
application.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA005E4F12730410BA68536EEB7DB5BC4"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall apply to
information provided on or after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H70F5612B736C44C09F00A0D359A570A2" section-type="subsequent-section"><enum>137.</enum><header>Frivolous tax
submissions</header>
<subsection id="H250BD09493B44B668F1530D549DB5CF7"><enum>(a)</enum><header>Civil
Penalties</header><text>Section 6702 is amended to read as follows:</text>
<quoted-block id="H1F90CB2B26374B83B3A2F3C5A247D5BB" style="OLC">
<section id="H852AA7214ACD4C1A827539164C8E00C1"><enum>6702.</enum><header>Frivolous tax
submissions</header>
<subsection id="HCCA6F8B5F5AD4FDA9EC5D11544D7936"><enum>(a)</enum><header>Civil Penalty for
Frivolous Tax Returns</header><text>A person shall pay a penalty of $5,000
if—</text>
<paragraph id="H259001E461964652B2E3131BCD7CC659"><enum>(1)</enum><text>such person files
what purports to be a return of a tax imposed by this title but which—</text>
<subparagraph id="H33D2BC2C10E34EC79C5C44DDA2FB93B"><enum>(A)</enum><text>does not contain
information on which the substantial correctness of the self-assessment may be
judged, or</text>
</subparagraph><subparagraph id="HAB83EBF7D84E425EB2FED32892A48E57"><enum>(B)</enum><text>contains
information that on its face indicates that the self-assessment is
substantially incorrect, and</text>
</subparagraph></paragraph><paragraph id="H4BA4D7A646DE486F82EA9453A610C16D"><enum>(2)</enum><text>the conduct
referred to in paragraph (1)—</text>
<subparagraph id="HBC4706DAC0CC4B4D9B005D55920062A7"><enum>(A)</enum><text>is based on a
position which the Secretary has identified as frivolous under subsection (c),
or</text>
</subparagraph><subparagraph id="H1A4D76C3C70F482E8800546C67C4EB3E"><enum>(B)</enum><text>reflects a desire
to delay or impede the administration of Federal tax laws.</text>
</subparagraph></paragraph></subsection><subsection id="HD1986D02A81249C38DA512FE965FB7B0"><enum>(b)</enum><header>Civil Penalty
for Specified Frivolous Submissions</header>
<paragraph id="HD810FB8ADEB74EAE833FBC4E879F4F49"><enum>(1)</enum><header>Imposition of
penalty</header><text>Except as provided in paragraph (3), any person who
submits a specified frivolous submission shall pay a penalty of $5,000.</text>
</paragraph><paragraph id="H1E2DED65EBD94F3887BEEF457B3A9B2"><enum>(2)</enum><header>Specified
frivolous submission</header><text>For purposes of this section—</text>
<subparagraph id="HEE30D340EE3343088FA4421680F18666"><enum>(A)</enum><header>Specified
frivolous submission</header><text>The term <term>specified frivolous
submission</term> means a specified submission if any portion of such
submission—</text>
<clause id="H084945F7D4B840FAB4646B519DAB7007"><enum>(i)</enum><text>is
based on a position which the Secretary has identified as frivolous under
subsection (c), or</text>
</clause><clause id="H2DFE391E50164032BE78BF212D6BB310"><enum>(ii)</enum><text>reflects a desire
to delay or impede the administration of Federal tax laws.</text>
</clause></subparagraph><subparagraph id="H8538D6D6AAB04F699814C3B03F4B69DB"><enum>(B)</enum><header>Specified
submission</header><text>The term <term>specified submission</term>
means—</text>
<clause id="H84654CCFDFC8476787080561B61C4C8C"><enum>(i)</enum><text>a
request for a hearing under—</text>
<subclause id="H83AE9D6CA95B4DA9930443EE34A07E34"><enum>(I)</enum><text>section 6320
(relating to notice and opportunity for hearing upon filing of notice of lien),
or</text>
</subclause><subclause id="H281D161EF60346E798E56B061BC8DDBD"><enum>(II)</enum><text>section 6330
(relating to notice and opportunity for hearing before levy), and</text>
</subclause></clause><clause id="H9BEE2DD9293D471189C9F3FE854FF838"><enum>(ii)</enum><text>an application
under—</text>
<subclause id="HAE7F8983CE904C078332DD007800DDB"><enum>(I)</enum><text>section 6159
(relating to agreements for payment of tax liability in installments),</text>
</subclause><subclause id="H94481D1A64EF4F79A6A45214B414F2ED"><enum>(II)</enum><text>section 7122
(relating to compromises), or</text>
</subclause><subclause id="H038844F2773E41B1005525ECA816DCD7"><enum>(III)</enum><text>section 7811
(relating to taxpayer assistance orders).</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H93A410CF87934BBB99235868A2A92E92"><enum>(3)</enum><header>Opportunity to
withdraw submission</header><text>If the Secretary provides a person with
notice that a submission is a specified frivolous submission and such person
withdraws such submission within 30 days after such notice, the penalty imposed
under paragraph (1) shall not apply with respect to such submission.</text>
</paragraph></subsection><subsection id="H7D5498E540934F70BA92CB8EDB2D02CE"><enum>(c)</enum><header>Listing of
Frivolous Positions</header><text>The Secretary shall prescribe (and
periodically revise) a list of positions which the Secretary has identified as
being frivolous for purposes of this subsection. The Secretary shall not
include in such list any position that the Secretary determines meets the
requirement of section 6662(d)(2)(B)(ii)(II).</text>
</subsection><subsection id="H592C08EBC0704555B16157E32B944912"><enum>(d)</enum><header>Reduction of
Penalty</header><text>The Secretary may reduce the amount of any penalty
imposed under this section if the Secretary determines that such reduction
would promote compliance with and administration of the Federal tax
laws.</text>
</subsection><subsection id="HA98CAF05BAC043E7AB57A86144ED095"><enum>(e)</enum><header>Penalties in
Addition to Other Penalties</header><text>The penalties imposed by this section
shall be in addition to any other penalty provided by
law.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0258AB5919AD4966AEEEECB049ADA8DA"><enum>(b)</enum><header>Treatment of
Frivolous Requests for Hearings Before Levy</header>
<paragraph id="H9416FBFE651141A9AE003CD5AB01E493"><enum>(1)</enum><header>Frivolous
requests disregarded</header><text>Section 6330 (relating to notice and
opportunity for hearing before levy) is amended by adding at the end the
following new subsection:</text>
<quoted-block id="HF3112B116A4447688F5BEB90600198E" style="OLC">
<subsection id="HA31FEDBB6FF6452EB9FCC32FDB6832BF"><enum>(g)</enum><header>Frivolous
Requests for Hearing, Etc</header><text>Notwithstanding any other provision of
this section, if the Secretary determines that any portion of a request for a
hearing under this section or section 6320 meets the requirement of clause (i)
or (ii) of section 6702(b)(2)(A), then the Secretary may treat such portion as
if it were never submitted and such portion shall not be subject to any further
administrative or judicial
review.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB7EAF4298ECC445DBDC449982464A23D"><enum>(2)</enum><header>Preclusion from
raising frivolous issues at hearing</header><text>Section 6330(c)(4) is
amended—</text>
<subparagraph id="H1C0A21847F0B4451940588776D4DF8B6"><enum>(A)</enum><text>by striking
<quote>(A)</quote> and inserting <quote>(A)(i)</quote>;</text>
</subparagraph><subparagraph id="H5AC84D2096B5430AA14F8CF13119A4F6"><enum>(B)</enum><text>by striking
<quote>(B)</quote> and inserting <quote>(ii)</quote>;</text>
</subparagraph><subparagraph id="H93DF58C731914531A4BC1875B251B981"><enum>(C)</enum><text>by striking the
period at the end of the first sentence and inserting <quote>; or</quote>;
and</text>
</subparagraph><subparagraph id="H49E95E9C6BD54987A8BA1C684943DE29"><enum>(D)</enum><text>by inserting after
subparagraph (A)(ii) (as so redesignated) the following:</text>
<quoted-block id="H6D20E9581A644C2CB6C500350740DAA" style="OLC">
<subparagraph id="H3F7603F4F2D2479998A5682D042CF1B"><enum>(B)</enum><text>the issue meets the
requirement of clause (i) or (ii) of section
6702(b)(2)(A).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HEB25C76973D04E618FD6B481007CA911"><enum>(3)</enum><header>Statement of
grounds</header><text>Section 6330(b)(1) is amended by striking <quote>under
subsection (a)(3)(B)</quote> and inserting <quote>in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing</quote>.</text>
</paragraph></subsection><subsection id="H1C16030B4F844A498E605B045499F3D2"><enum>(c)</enum><header>Treatment of
Frivolous Requests for Hearings Upon Filing of Notice of
Lien</header><text>Section 6320 is amended—</text>
<paragraph id="HCB1600F6975341A883A1E163874EBE84"><enum>(1)</enum><text>in subsection
(b)(1), by striking <quote>under subsection (a)(3)(B)</quote> and inserting
<quote>in writing under subsection (a)(3)(B) and states the grounds for the
requested hearing</quote>, and</text>
</paragraph><paragraph id="HEED8C9904E154003A852E83F6235AA7B"><enum>(2)</enum><text>in subsection (c),
by striking <quote>and (e)</quote> and inserting <quote>(e), and
(g)</quote>.</text>
</paragraph></subsection><subsection id="HADEBE0B621114C2FA5F01BD4E79DFCF3"><enum>(d)</enum><header>Treatment of
Frivolous Applications for Offers-in-Compromise and Installment
Agreements</header><text>Section 7122 is amended by adding at the end the
following new subsection:</text>
<quoted-block id="H5CCC5D3C5DB94189A0FF2D5FF7011620" style="OLC">
<subsection id="H0EA842178FA44AA6B1E3743FB06DEA6D"><enum>(f)</enum><header>Frivolous
Submissions, Etc</header><text>Notwithstanding any other provision of this
section, if the Secretary determines that any portion of an application for an
offer-in-compromise or installment agreement submitted under this section or
section 6159 meets the requirement of clause (i) or (ii) of section
6702(b)(2)(A), then the Secretary may treat such portion as if it were never
submitted and such portion shall not be subject to any further administrative
or judicial
review.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H76A5E271E8A94C8BA2913F08A100B3A1"><enum>(e)</enum><header>Clerical
Amendment</header><text>The table of sections for part I of subchapter B of
chapter 68 is amended by striking the item relating to section 6702 and
inserting the following new item:</text>
<quoted-block id="HDA3E01436AAE4C11AE832BE62D8C249E" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 6702. Frivolous tax
submissions.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAC8145ED01654D1B9CEC84CC48E48B00"><enum>(f)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to
submissions made and issues raised after the date on which the Secretary first
prescribes a list under section 6702(c) of the Internal Revenue Code of 1986,
as amended by subsection (a).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H58849FFC88694A67A147DA68522C9D00" section-type="subsequent-section"><enum>138.</enum><header>Addition of
meningococcal and human papillomavirus vaccines to list of taxable
vaccines</header>
<subsection commented="no" id="HC48B0447C9B34C93A8DB6847CBDF02D0"><enum>(a)</enum><header>Meningococcal
vaccine</header><text>Section 4132(a)(1) (defining taxable vaccine) is amended
by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HC9C10D3507BD41CBB8A703992BA03A3" style="OLC">
<subparagraph commented="no" id="H8DE6F4AB18E84C1991E05E635760B052"><enum>(O)</enum><text>Any meningococcal
vaccine.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="HE7771CFED355408690E87FA02D60A0C3"><enum>(b)</enum><header>Human
papillomavirus vaccine</header><text>Section 4132(a)(1), as amended by
subsection (a), is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HE97ECF4368904304A4DBC45571E320EA" style="OLC">
<subparagraph id="H8E1C1AF560B8458997117E848D9162C0"><enum>(P)</enum><text display-inline="yes-display-inline">Any vaccine against the human
papillomavirus.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HADC93C9C35134935ADDC00F5653B9CBD"><enum>(c)</enum><header>Effective
date</header>
<paragraph commented="no" id="HC7DFF78587C1499CA5732711D3D74984"><enum>(1)</enum><header>Sales,
etc</header><text>The amendments made by this section shall apply to sales and
uses on or after the first day of the first month which begins more than 4
weeks after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9DAA2755294E446FBC006C174DE7442F"><enum>(2)</enum><header>Deliveries</header><text>For
purposes of paragraph (1) and section 4131 of the Internal Revenue Code of
1986, in the case of sales on or before the effective date described in such
paragraph for which delivery is made after such date, the delivery date shall
be considered the sale date.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H33C6270E66EF4B45B358068798658DF0" section-type="subsequent-section"><enum>139.</enum><header>Clarification of
taxation of certain settlement funds made permanent</header>
<subsection id="H7632DA41A98A4AC0B1C2E41CE0A25F00"><enum>(a)</enum><header>In
general</header><text>Subsection (g) of section 468B, as amended by section 201
of the Tax Increase Prevention and Reconciliation Act of 2005, is amended by
striking paragraph (3).</text>
</subsection><subsection id="H523BFDC752CD4FDFA52F69FCF6A4D3DD"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall take effect as if included in section 201 of the Tax
Increase Prevention and Reconciliation Act of 2005.</text>
</subsection></section><section id="H0FF7301E24FE417A93AC3E00F578804B"><enum>140.</enum><header>Modification of
active business definition under section 355 made permanent</header>
<subsection id="H983FD3D84AC6413888B3875496174EA4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraphs (A) and
(D) of section 355(b)(3), as amended by section 202 of the Tax Increase
Prevention and Reconciliation Act of 2005, are each amended by striking
<quote>and on or before December 31, 2010</quote>.</text>
</subsection><subsection id="HC7F83550195F415480F25689FAF11C85"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall take effect as if included in section 202 of the Tax
Increase Prevention and Reconciliation Act of 2005.</text>
</subsection></section><section id="HC07C87807DF042A281910000A2A948AA"><enum>141.</enum><header>Revision of
State veterans limit made permanent</header>
<subsection id="H46DE1499A55747718E36634D8DFA43EE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 143(l)(3), as amended by section 203 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking clause (iv).</text>
</subsection><subsection id="H6F3C8FE44D80443BAD72A09768E062B3"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall take effect as if included in section 203 of the Tax
Increase Prevention and Reconciliation Act of 2005.</text>
</subsection></section><section id="HDDE7F054E865430BA9E1F1DAB635B23"><enum>142.</enum><header>Capital gains
treatment for certain self-created musical works made permanent</header>
<subsection id="H0DF8AA74D41E409EBB018F0895084029"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (3) of
section 1221(b), as amended by section 204 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking <quote>before January 1,
2011,</quote>.</text>
</subsection><subsection id="HB3677F472BBE46E598B782435924E52E"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall take effect as if included in section 204 of the Tax
Increase Prevention and Reconciliation Act of 2005.</text>
</subsection></section><section display-inline="no-display-inline" id="H50CD0EE0E76F4E14B4123C492B201E00" section-type="subsequent-section"><enum>143.</enum><header>Reduction in minimum
vessel tonnage which qualifies for tonnage tax made permanent</header>
<subsection id="H71D123D8B75044A3AAD8D8F2909F3B57"><enum>(a)</enum><header>In
general</header><text>Paragraph (4) of section 1355(a), as amended by section
205 of the Tax Increase Prevention and Reconciliation Act of 2005, is amended
by striking <quote>10,000 (6,000, in the case of taxable years beginning after
December 31, 2005, and ending before January 1, 2011)</quote> and inserting
<quote>6,000</quote>.</text>
</subsection><subsection display-inline="no-display-inline" id="H0432F12F49F340FB84E3688431BE00EF"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall take effect as if included in section 205 of the Tax
Increase Prevention and Reconciliation Act of 2005.</text>
</subsection></section><section id="HDAFDE4CB02254331A6E9966BC4A3D8C2"><enum>144.</enum><header>Modification of
special arbitrage rule for certain funds made permanent</header>
<subsection id="H61CABC35892A454AA151DE6EE84838B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 206 of the
Tax Increase Prevention and Reconciliation Act of 2005 is amended by striking
<quote>and before August 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE7EB647C194A4C86B4BDD56E641F78D4"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall take effect as if included in section 206 of the Tax
Increase Prevention and Reconciliation Act of 2005.</text>
</subsection></section><section display-inline="no-display-inline" id="HB5B89E107B664F348411EE39B12FAEF1" section-type="subsequent-section"><enum>145.</enum><header>Great Lakes domestic
shipping to not disqualify vessel from tonnage tax</header>
<subsection id="H60C791A578FB4D57909E5C017FCCA552"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1355
(relating to definitions and special rules) is amended by redesignating
subsection (g) as subsection (h) and by inserting after subsection (f) the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H058EC5CEB182423882D8372D37C7F42D" style="OLC">
<subsection id="H31DA9793C1C8451EBC9DA1811991D9E8"><enum>(g)</enum><header>Great Lakes
domestic shipping to not disqualify vessel</header>
<paragraph id="H126AA47BC4514AB7A24FEE9E34DDFDD9"><enum>(1)</enum><header>In
general</header><text>If the electing corporation elects (at such time and in
such manner as the Secretary may require) to apply this subsection for any
taxable year to any qualifying vessel which is used in qualified zone domestic
trade during the taxable year—</text>
<subparagraph id="H92988BC7F1414B5F915BBD16004FB00"><enum>(A)</enum><text>solely for purposes
of subsection (a)(4), such use shall be treated as use in United States foreign
trade (and not as use in United States domestic trade), and</text>
</subparagraph><subparagraph id="H4CFC0B04F5134F8E85C288DE006CEED2"><enum>(B)</enum><text>subsection (f)
shall not apply with respect to such vessel for such taxable year.</text>
</subparagraph></paragraph><paragraph id="H67994BD82199455EB9AE425DD9E28D05"><enum>(2)</enum><header>Effect of
temporarily operating vessel in United States domestic trade</header><text display-inline="yes-display-inline">In the case of a qualifying vessel to which
this subsection applies—</text>
<subparagraph id="H9A09021C745A479194FAEA7F0F0392F"><enum>(A)</enum><header>In
general</header><text>An electing corporation shall be treated as using such
vessel in qualified zone domestic trade during any period of temporary use in
the United States domestic trade (other than qualified zone domestic trade) if
the electing corporation gives timely notice to the Secretary stating—</text>
<clause id="H427BC76FA29046FCB6AA64927B0933C9"><enum>(i)</enum><text>that it
temporarily operates or has operated in the United States domestic trade (other
than qualified zone domestic trade) a qualifying vessel which had been used in
the United States foreign trade or qualified zone domestic trade, and</text>
</clause><clause id="HEE3323A4113D47CE8248FF82209E6CE0"><enum>(ii)</enum><text>its intention to
resume operation of the vessel in the United States foreign trade or qualified
zone domestic trade.</text>
</clause></subparagraph><subparagraph id="H24868698E25145F7ACE9C1846450643"><enum>(B)</enum><header>Notice</header><text display-inline="yes-display-inline">Notice shall be deemed timely if given not
later than the due date (including extensions) for the corporation’s tax return
for the taxable year in which the temporary cessation begins.</text>
</subparagraph><subparagraph id="H5414B9CE4D9A44E095B866528D3C3532"><enum>(C)</enum><header>Period disregard
in effect</header><text>The period of temporary use under subparagraph (A)
continues until the earlier of the date of which—</text>
<clause id="H57776AA97CED41DABF35002E44329B2C"><enum>(i)</enum><text>the electing
corporation abandons its intention to resume operations of the vessel in the
United States foreign trade or qualified zone domestic trade, or</text>
</clause><clause id="HD43948CFD8434E40007E6ED64E23FD00"><enum>(ii)</enum><text>the electing
corporation resumes operation of the vessel in the United States foreign trade
or qualified zone domestic trade.</text>
</clause></subparagraph><subparagraph id="H75032EEADF2B48CF85985941EA30F3BE"><enum>(D)</enum><header>No disregard if
domestic trade use exceeds 30 days</header><text>Subparagraph (A) shall not
apply to any qualifying vessel which is operated in the United States domestic
trade (other than qualified zone domestic trade) for more than 30 days during
the taxable year.</text>
</subparagraph></paragraph><paragraph id="HB39DCA27FA53485892CE40E66DFDEAC6"><enum>(3)</enum><header>Allocation of
income and deductions to qualifying shipping activities</header><text>In the
case of a qualifying vessel to which this subsection applies, the Secretary
shall prescribe rules for the proper allocation of income, expenses, losses,
and deductions between the qualified shipping activities and the other
activities of such vessel.</text>
</paragraph><paragraph id="HCFACAEDDF8C741BA9043A16E6B149871"><enum>(4)</enum><header>Qualified zone
domestic trade</header><text>For purposes of this subsection—</text>
<subparagraph id="H279A3C9CD9F44684B53B9870F679E562"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified zone domestic trade</term> means
the transportation of goods or passengers between places in the qualified zone
if such transportation is in the United States domestic trade.</text>
</subparagraph><subparagraph id="HC34FB96616C947F3AFD3FF7D00009702"><enum>(B)</enum><header>Qualified
zone</header><text display-inline="yes-display-inline">The term <term>qualified
zone</term> means the Great Lakes Waterway and the St. Lawrence
Seaway.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H80C2E1AFDDCB466695D9A8702DD876DF"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" id="HF98436EECE5847609679AAFE99398EE3" section-type="subsequent-section"><enum>146.</enum><header>Use of qualified
mortgage bonds to finance residences for veterans without regard to first-time
homebuyer requirement</header>
<subsection commented="no" id="H2B803BB626BD4E8E85519EE842682DE8"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 143(d)(2)
(relating to exceptions to 3-year requirement) is amended by striking
<quote>and</quote> at the end of subparagraph (B), by adding <quote>and</quote>
at the end of subparagraph (C), and by inserting after subparagraph (C) the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HC4390D0CB2BD4E2FADDB14CFA9A9C88D" style="OLC">
<subparagraph commented="no" id="HB80F5FD40230443FA5FED3174CD21188"><enum>(D)</enum><text display-inline="yes-display-inline">in the case of bonds issued after the date
of the enactment of this subparagraph and before January 1, 2008, financing of
any residence for a veteran (as defined in section 101 of title 38, United
States Code), if such veteran has not previously qualified for and received
such financing by reason of this
subparagraph,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA5DB8A05651F4713A3C09141AD7CC232"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section id="H0AA966CA4EA04FBC81FA25D73B46C1CA"><enum>147.</enum><header>Exclusion of
gain from sale of a principal residence by certain employees of the
intelligence community</header>
<subsection id="H931C0A07ED50468D007861112BEE2D6"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 121(d)(9) (relating to
exclusion of gain from sale of principal residence) is amended by striking
“duty” and all that follows and inserting “duty—</text>
<quoted-block id="H5E3D4BADA4CB482BB2D9B1E3675173E1">
<clause id="HC10714E3923F4C03976500FBBE40CC3"><enum>(i)</enum><text>as
a member of the uniformed services,</text>
</clause><clause id="HF0B1ACC10ABF4D169B41539576775193"><enum>(ii)</enum><text>as a member of
the Foreign Service of the United States, or</text>
</clause><clause id="H2CDCFA48DA5C49BB9500135D7C9847D9"><enum>(iii)</enum><text>as an employee
of the intelligence
community.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H614A82C314C84879BA62EA2B9B8E3736"><enum>(b)</enum><header>Employee of
intelligence community defined</header><text>Subparagraph (C) of section
121(d)(9) is amended by redesignating clause (iv) as clause (v) and by
inserting after clause (iii) the following new clause:</text>
<quoted-block id="H056B567582234FC2BA6169DBEDAF6289">
<clause id="HB5365B1E5F8240C7A3898548C8FC3EA1"><enum>(iv)</enum><header>Employee of
intelligence community</header><text>The term <term>employee of the
intelligence community</term> means an employee (as defined by section 2105 of
title 5, United States Code) of—</text>
<subclause id="HC80D42ACEBBF44F6A8A2AA2BE8F0C000"><enum>(I)</enum><text>the Office of the
Director of National Intelligence,</text>
</subclause><subclause id="H6C68EDB4FFFD4E6600C7ED6200719FDA"><enum>(II)</enum><text>the Central
Intelligence Agency,</text>
</subclause><subclause id="HB8028311B5614105B8B1B00A489712D"><enum>(III)</enum><text>the National
Security Agency,</text>
</subclause><subclause id="HDE6512656CF44E42ABB759B0FB431B1F"><enum>(IV)</enum><text>the Defense
Intelligence Agency,</text>
</subclause><subclause id="H77A02EB532474E33A0FDE7D2F860E83D"><enum>(V)</enum><text>the National
Geospatial-Intelligence Agency,</text>
</subclause><subclause id="H9D9B4F5B0989453B96DD7F252FBFA49B"><enum>(VI)</enum><text>the National
Reconnaissance Office,</text>
</subclause><subclause id="HD5AA1F054B944FEB0097C3973F5946F"><enum>(VII)</enum><text>any other office
within the Department of Defense for the collection of specialized national
intelligence through reconnaissance programs,</text>
</subclause><subclause id="H3A8AE2DD177C4B4BBACD985439652B92"><enum>(VIII)</enum><text>any of the
intelligence elements of the Army, the Navy, the Air Force, the Marine Corps,
the Federal Bureau of Investigation, the Department of Treasury, the Department
of Energy, and the Coast Guard,</text>
</subclause><subclause id="HD2F47BCABB23481A8D7B28C41E161DF2"><enum>(IX)</enum><text>the Bureau of
Intelligence and Research of the Department of State, or</text>
</subclause><subclause id="H8B09ABC384704403A8F100BA1E734C36"><enum>(X)</enum><text>any of the
elements of the Department of Homeland Security concerned with the analyses of
foreign intelligence
information.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBF19ABAE7DF74EC9BA2DF3DBB48D8D5D"><enum>(c)</enum><header>Special
rule</header><text>Subparagraph (C) of section 121(d)(9), as amended by
subsection (b), is amended by adding at the end the following new
clause:</text>
<quoted-block id="H065A79DC7E7C4EE1B8150063B63E5B14">
<clause id="HBEF751C1A3584643AB3BE21CAFAFC6D"><enum>(vi)</enum><header>Special rule
relating to intelligence community</header><text>An employee of the
intelligence community shall not be treated as serving on qualified extended
duty unless such duty is at a duty station located outside the United
States.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H76EB459D413440A7A9ADA230671516EB"><enum>(d)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">The heading for
section 121(d)(9) is amended to read as follows: <quote><header-in-text level="paragraph" style="OLC">Uniformed services, foreign service, and
intelligence community</header-in-text></quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB6835173BB704130AF454232CF41D577"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to sales or
exchanges after the date of the enactment of this Act and before January 1,
2011.</text>
</subsection></section><section id="H20E9D5FB188946B19502FE282BA6827B"><enum>148.</enum><header>Treatment of
coke and coke gas</header>
<subsection id="HBE9861CE190E4CC38E7F8F7C4329E36D"><enum>(a)</enum><header>Nonapplication
of phaseout</header><text>Section 45K(g)(2) is amended by adding at the end the
following new subparagraph:</text>
<quoted-block id="H705559B632B8480D9F00DDB8BD6525F5" style="OLC">
<subparagraph id="H6ACF14FDF6EF4188898B4E0071F0ED30"><enum>(D)</enum><header>Nonapplication
of phaseout</header><text>Subsection (b)(1) shall not
apply.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H33B0A6CCF09A4B03BD13FFF62482B600"><enum>(b)</enum><header>Clarification of
qualifying facility</header><text>Section 45K(g)(1) is amended by inserting
<quote>(other than from petroleum based products)</quote> after <quote>coke or
coke gas</quote>.</text>
</subsection><subsection id="H28D4C46E7B614EEAB47C8461B68C77D8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect as if
included in section 1321 of the Energy Policy Act of 2005.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H069BB785F34E406DB8934919DCA2D14" section-type="subsequent-section"><enum>149.</enum><header>Sale of property by
judicial officers</header>
<subsection commented="no" id="HD3A3C7491AF34564BAC7B1F93D894F98"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1043(b)
(relating to the sale of property to comply with conflict-of-interest
requirements) is amended—</text>
<paragraph commented="no" id="HB6D124F1D0CF4DA3B504616BEB49A311"><enum>(1)</enum><text>in paragraph
(1)—</text>
<subparagraph commented="no" id="H230625210ABF41B1BFBB2854CE8E6877"><enum>(A)</enum><text>in subparagraph
(A), by inserting <quote>, or a judicial officer,</quote> after <quote>an
officer or employee of the executive branch</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H7C8E676E93504E78BDDDFBB8F3DA179B"><enum>(B)</enum><text>in subparagraph
(B), by inserting <quote>judicial canon,</quote> after <quote>any statute,
regulation, rule,</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="H7D03FD2002D34A0281D6D9AEE76F8B8C"><enum>(2)</enum><text>in paragraph
(2)—</text>
<subparagraph commented="no" id="H6513B9871A424E85826811BC0073B131"><enum>(A)</enum><text>in subparagraph
(A), by inserting <quote>judicial canon,</quote> after <quote>any Federal
conflict of interest statute, regulation, rule,</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H06C0469F77224A7FA2CF6D00647D1D81"><enum>(B)</enum><text>in subparagraph
(B), by inserting after <quote>the Director of the Office of Government
Ethics,</quote> the following: <quote>in the case of executive branch officers
or employees, or by the Judicial Conference of the United States (or its
designee), in the case of judicial officers,</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="HB5A2782BFD7849B5BE81CB488F20526D"><enum>(3)</enum><text>in paragraph
(5)(B), by inserting <quote>judicial canon,</quote> after <quote>any statute,
regulation, rule,</quote>.</text>
</paragraph></subsection><subsection id="HE7709990A3C740B0A800EA12B0A8C880"><enum>(b)</enum><header>Judicial officer
defined</header><text>Section 1043(b) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H6CF8E85E3B8D4117BE37A0AEAF618637" style="OLC">
<paragraph id="H0EDA04DD8A164CBA94458F798EB2EBA3"><enum>(6)</enum><header>Judicial
officer</header><text display-inline="yes-display-inline">The term
<term>judicial officer</term> means the Chief Justice of the United States, the
Associate Justices of the Supreme Court, and the judges of the United States
courts of appeals, United States district courts, including the district courts
in Guam, the Northern Mariana Islands, and the Virgin Islands, Court of Appeals
for the Federal Circuit, Court of International Trade, Tax Court, Court of
Federal Claims, Court of Appeals for Veterans Claims, United States Court of
Appeals for the Armed Forces, and any court created by Act of Congress, the
judges of which are entitled to hold office during good
behavior.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HBA175678454B4F47BED4F7E72DF69B77"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to sales
after the date of enactment of this Act.</text>
</subsection></section><section commented="no" id="H828E08572B12432CB91BAFDBCDB5358"><enum>150.</enum><header>Premiums for
mortgage insurance</header>
<subsection commented="no" id="H44D9AD8064124A7985A233DE3CF800EF"><enum>(a)</enum><header>In
General</header><text>Section 163(h)(3) (relating to qualified residence
interest) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block id="HC67E0337A4C646F19272F1D7F5D21E44" style="OLC">
<subparagraph commented="no" id="HBA5753C0AE054D96A3C96300F33640DD"><enum>(E)</enum><header>Mortgage
insurance premiums treated as interest</header>
<clause commented="no" id="HD223183BB8A14D7ABDA0AD8971CD007C"><enum>(i)</enum><header>In
general</header><text>Premiums paid or accrued for qualified mortgage insurance
by a taxpayer during the taxable year in connection with acquisition
indebtedness with respect to a qualified residence of the taxpayer shall be
treated for purposes of this section as interest which is qualified residence
interest.</text>
</clause><clause commented="no" id="HB6423FDEC9E1446A92B7B312FEAF149"><enum>(ii)</enum><header>Phaseout</header><text>The
amount otherwise treated as interest under clause (i) shall be reduced (but not
below zero) by 10 percent of such amount for each $1,000 ($500 in the case of a
married individual filing a separate return) (or fraction thereof) that the
taxpayer’s adjusted gross income for the taxable year exceeds $100,000 ($50,000
in the case of a married individual filing a separate return).</text>
</clause><clause id="H21CC2BCA0A1F48D8B8434F314C044500"><enum>(iii)</enum><header>Limitation</header><text display-inline="yes-display-inline">Clause (i) shall not apply with respect to
any mortgage insurance contracts issued before January 1, 2007.</text>
</clause><clause id="HE5D2226D65DF4B0280E0F6CB4832426E"><enum>(iv)</enum><header>Termination</header><text>Clause
(i) shall not apply to amounts—</text>
<subclause id="HBFE807FB82DE421DA90053762C10C0D2"><enum>(I)</enum><text>paid or accrued
after December 31, 2007, or</text>
</subclause><subclause id="H803D5D787F784F7F8ED29C03DF713BD8"><enum>(II)</enum><text>properly
allocable to any period after such
date.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HEB0F1518B9984EB6B310C34B72106938"><enum>(b)</enum><header>Definition and
Special Rules</header><text>Section 163(h)(4) (relating to other definitions
and special rules) is amended by adding at the end the following new
subparagraphs:</text>
<quoted-block id="HC8816D05A5DB4E19BA104286F58EA282" style="OLC">
<subparagraph commented="no" id="HBC06B6C3551641EBACD31805A755A366"><enum>(E)</enum><header>Qualified
mortgage insurance</header><text>The term <term>qualified mortgage
insurance</term> means—</text>
<clause commented="no" id="H6A85F036FCA5472883D13F33AFD4BA45"><enum>(i)</enum><text>mortgage insurance
provided by the Veterans Administration, the Federal Housing Administration, or
the Rural Housing Administration, and</text>
</clause><clause commented="no" id="H00D76028C0F74EA7B2B580006D4F6965"><enum>(ii)</enum><text>private mortgage
insurance (as defined by section 2 of the Homeowners Protection Act of 1998 (12
U.S.C. 4901), as in effect on the date of the enactment of this
subparagraph).</text>
</clause></subparagraph><subparagraph commented="no" id="H6F2FB199268242C6A28CA8A01013B8D"><enum>(F)</enum><header>Special rules for
prepaid qualified mortgage insurance</header><text>Any amount paid by the
taxpayer for qualified mortgage insurance that is properly allocable to any
mortgage the payment of which extends to periods that are after the close of
the taxable year in which such amount is paid shall be chargeable to capital
account and shall be treated as paid in such periods to which so allocated. No
deduction shall be allowed for the unamortized balance of such account if such
mortgage is satisfied before the end of its term. The preceding sentences shall
not apply to amounts paid for qualified mortgage insurance provided by the
Veterans Administration or the Rural Housing
Administration.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H7FB8946DEAB640D58E4EB9B000E3F4F8"><enum>(c)</enum><header>Information
Returns Relating to Mortgage Insurance</header><text>Section 6050H (relating to
returns relating to mortgage interest received in trade or business from
individuals) is amended by adding at the end the following new
subsection:</text>
<quoted-block id="HF5065D5557BA43D382347F8F98E18FC5" style="OLC">
<subsection commented="no" id="H63D78D8BD01E46EFB7CCE5023C9FEE7C"><enum>(h)</enum><header>Returns Relating
to Mortgage Insurance Premiums</header>
<paragraph commented="no" id="H64F51796F81B4BF28F407F1950884B2E"><enum>(1)</enum><header>In
general</header><text>The Secretary may prescribe, by regulations, that any
person who, in the course of a trade or business, receives from any individual
premiums for mortgage insurance aggregating $600 or more for any calendar year,
shall make a return with respect to each such individual. Such return shall be
in such form, shall be made at such time, and shall contain such information as
the Secretary may prescribe.</text>
</paragraph><paragraph commented="no" id="H797A86E284B4496BBBFC127487E2BBE"><enum>(2)</enum><header>Statement to be
furnished to individuals with respect to whom information is
required</header><text>Every person required to make a return under paragraph
(1) shall furnish to each individual with respect to whom a return is made a
written statement showing such information as the Secretary may prescribe. Such
written statement shall be furnished on or before January 31 of the year
following the calendar year for which the return under paragraph (1) was
required to be made.</text>
</paragraph><paragraph commented="no" id="HCF01335C73FA46199FDF4B2B89ECCABD"><enum>(3)</enum><header>Special
rules</header><text>For purposes of this subsection—</text>
<subparagraph commented="no" id="HBBA0EC5F30014F49B344283212BADBA7"><enum>(A)</enum><text>rules similar to
the rules of subsection (c) shall apply, and</text>
</subparagraph><subparagraph commented="no" id="H0ABB903406714529AA98FDEAA6E2F122"><enum>(B)</enum><text>the term
<term>mortgage insurance</term> means—</text>
<clause commented="no" id="HBAEA50D8FD014658B03184CEF489F1C5"><enum>(i)</enum><text>mortgage insurance
provided by the Veterans Administration, the Federal Housing Administration, or
the Rural Housing Administration, and</text>
</clause><clause commented="no" id="H1CC638C11E99474BAD5B5893CF0000F5"><enum>(ii)</enum><text>private mortgage
insurance (as defined by section 2 of the Homeowners Protection Act of 1998 (12
U.S.C. 4901), as in effect on the date of the enactment of this
subsection).</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HDE8CE73220094E638FE1769CB590D698"><enum>(d)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to amounts
paid or accrued after December 31, 2006.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H0910269769F44A6488C88128B3AAA7A1" section-type="subsequent-section"><enum>151.</enum><header>Modification of
refunds for kerosene used in aviation</header>
<subsection commented="no" id="HF984FD6A0ADF48A19F91F085E160401"><enum>(a)</enum><header>In
general</header><text>Paragraph (4) of section 6427(l) (relating to nontaxable
uses of diesel fuel and kerosene) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9D77321196634563A23F66477BD74D1" style="OLC">
<paragraph commented="no" id="H0E4E80D26D1E402C88BC7034358589A9"><enum>(4)</enum><header>Refunds for
kerosene used in aviation</header>
<subparagraph commented="no" id="H4FF627EBB7DA44C1B0C5D28096517B90"><enum>(A)</enum><header>Kerosene used in
commercial aviation</header><text>In the case of kerosene used in commercial
aviation (as defined in section 4083(b)) (other than supplies for vessels or
aircraft within the meaning of section 4221(d)(3)), paragraph (1) shall not
apply to so much of the tax imposed by section 4041 or 4081, as the case may
be, as is attributable to—</text>
<clause commented="no" id="HCE218312A13B4615B346D82B7E5305A1"><enum>(i)</enum><text>the Leaking
Underground Storage Tank Trust Fund financing rate imposed by such section,
and</text>
</clause><clause commented="no" id="H9D13CA931DEB46B7AFDAC4CC9EA061A5"><enum>(ii)</enum><text>so much of the
rate of tax specified in section 4041(c) or 4081(a)(2)(A)(iii), as the case may
be, as does not exceed 4.3 cents per gallon.</text>
</clause></subparagraph><subparagraph commented="no" id="H44FC72F24F434E5FA8B2BC5DE2CC96FA"><enum>(B)</enum><header>Kerosene used in
noncommercial aviation</header><text>In the case of kerosene used in aviation
that is not commercial aviation (as so defined) (other than any use which is
exempt from the tax imposed by section 4041(c) other than by reason of a prior
imposition of tax), paragraph (1) shall not apply to—</text>
<clause commented="no" id="HC83913313AE5421B82966E33B632939C"><enum>(i)</enum><text>any tax imposed by
section 4041(c), and</text>
</clause><clause commented="no" id="H49B33EC285AE4B8C9F807BC0D7DED3E3"><enum>(ii)</enum><text>so much of the
tax imposed by section 4081 as is attributable to—</text>
<subclause commented="no" id="H2CFF901AFA1C4A6A0064FAE7B8BFFCB2"><enum>(I)</enum><text>the Leaking
Underground Storage Tank Trust Fund financing rate imposed by such section,
and</text>
</subclause><subclause commented="no" id="H5B3855F6E8EC4AC8BCEBE19159BDFF5"><enum>(II)</enum><text>so much of the
rate of tax specified in section 4081(a)(2)(A)(iii) as does not exceed the rate
specified in section 4081(a)(2)(C)(ii).</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="HE1DF36BF32CF4C65BA8B3ECAD575205B"><enum>(C)</enum><header>Payments to
ultimate, registered vendor</header>
<clause commented="no" id="H144009AF658C4E139D004C282219F4C"><enum>(i)</enum><header>In
general</header><text>With respect to any kerosene used in aviation (other than
kerosene described in clause (ii) or kerosene to which paragraph (5) applies),
if the ultimate purchaser of such kerosene waives (at such time and in such
form and manner as the Secretary shall prescribe) the right to payment under
paragraph (1) and assigns such right to the ultimate vendor, then the Secretary
shall pay the amount which would be paid under paragraph (1) to such ultimate
vendor, but only if such ultimate vendor—</text>
<subclause commented="no" id="H61A31782480F49AD8D9730F5EE5057E"><enum>(I)</enum><text>is registered under
section 4101, and</text>
</subclause><subclause commented="no" id="HF8845356B6864BA7AC00F9AB94E6B28F"><enum>(II)</enum><text>meets the
requirements of subparagraph (A), (B), or (D) of section 6416(a)(1).</text>
</subclause></clause><clause commented="no" id="H69024B5E98A649728C815F50297D47A6"><enum>(ii)</enum><header>Payments for
kerosene used in noncommercial aviation</header><text>The amount which would be
paid under paragraph (1) with respect to any kerosene to which subparagraph (B)
applies shall be paid only to the ultimate vendor of such kerosene. A payment
shall be made to such vendor if such vendor—</text>
<subclause commented="no" id="H5B776F4D6EFF4BDF00C65BB38349CFCE"><enum>(I)</enum><text>is registered
under section 4101, and</text>
</subclause><subclause commented="no" id="HD275E214AEC04ED7997C80EA99BBF147"><enum>(II)</enum><text>meets the
requirements of subparagraph (A), (B), or (D) of section
6416(a)(1).</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HC95A43D545064037BF1935DA5DE92E59"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="H0C7DFAFECFCD4A4A89B7C7A8BB1E2633"><enum>(1)</enum><text>Section 6427(l) is
amended by striking paragraph (5) and by redesignating paragraph (6) as
paragraph (5).</text>
</paragraph><paragraph commented="no" id="H87A7533F7EA1406994D374557072A598"><enum>(2)</enum><text>Section
4082(d)(2)(B) is amended by striking <quote>section 6427(l)(6)(B)</quote> and
inserting <quote>section 6427(l)(5)(B)</quote>.</text>
</paragraph><paragraph commented="no" id="H0712A7C5E3764D6C80554D29789770C5"><enum>(3)</enum><text>Section
6427(i)(4)(A) is amended—</text>
<subparagraph commented="no" id="H77FE6804BE7F460187B1333FF92CC200"><enum>(A)</enum><text>by striking
<quote>paragraph (4)(B), (5), or (6)</quote> each place it appears and
inserting <quote>paragraph (4)(C) or (5)</quote>, and</text>
</subparagraph><subparagraph commented="no" id="H85C420208EBA4ED8A289E4A74935C13D"><enum>(B)</enum><text>by striking
<quote>(l)(5), and (l)(6)</quote> and inserting <quote>(l)(4)(C)(ii), and
(l)(5)</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" id="H856890E11C2E4360941F5768164098B"><enum>(4)</enum><text>Section 6427(l)(1)
is amended by striking <quote>paragraph (4)(B)</quote> and inserting
<quote>paragraph (4)(C)(i)</quote>.</text>
</paragraph><paragraph commented="no" id="H403D34A416554346B1E1C8C3769C5525"><enum>(5)</enum><text>Section 9502(d) is
amended—</text>
<subparagraph commented="no" id="H450E08DF6BAE4C8CAE19CE6CE5E4735F"><enum>(A)</enum><text>in paragraph (2),
by striking <quote>and (l)(5)</quote>, and</text>
</subparagraph><subparagraph commented="no" id="H10E9F5F64FAF49CFAA4F900017002F00"><enum>(B)</enum><text>in paragraph (3),
by striking <quote>or (5)</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" id="H4F7616BE441F46DDB9229FA13200E100"><enum>(6)</enum><text>Section 9503(c)(7)
is amended—</text>
<subparagraph id="H21DAC553D42B4D66BD006CA771C325FB"><enum>(A)</enum><text>by amending
subparagraphs (A) and (B) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HD7CA47E821AB427F8D70D501D6F212F3" style="OLC">
<subparagraph id="H5E175CF6D54C49F589CF7072D701D2AA"><enum>(A)</enum><text display-inline="yes-display-inline">4.3 cents per gallon of kerosene subject to
section 6427(l)(4)(A) with respect to which a payment has been made by the
Secretary under section 6427(l), and</text>
</subparagraph><subparagraph id="H2B15E0CF686F4BA0AC11EB27D9B0EA74"><enum>(B)</enum><text display-inline="yes-display-inline">21.8 cents per gallon of kerosene subject
to section 6427(l)(4)(B) with respect to which a payment has been made by the
Secretary under section 6427(l).</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H7CDAE3C2FAC346DCA6BF159CA566F98"><enum>(B)</enum><text>in the matter
following subparagraph (B), by striking <quote>or (5)</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HE59B15808E8D49AB8FB0EA4DEA003FE5"><enum>(c)</enum><header>Effective
date</header>
<paragraph commented="no" id="H49D95F5AC53E47228279F0BB1CC3CBD1"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
kerosene sold after September 30, 2005.</text>
</paragraph><paragraph commented="no" id="HC775BB9F480A4FC2BE67CC2B60346151"><enum>(2)</enum><header>Special rule for
pending claims</header><text>In the case of kerosene sold for use in aviation
(other than kerosene to which section 6427(l)(4)(C)(ii) of the Internal Revenue
Code of 1986 (as added by subsection (a)) applies or kerosene to which section
6427(l)(5) of such Code (as redesignated by subsection (b)) applies) after
September 30, 2005, and before the date of the enactment of this Act, the
ultimate purchaser shall be treated as having waived the right to payment under
section 6427(l)(1) of such Code and as having assigned such right to the
ultimate vendor if such ultimate vendor has met the requirements of
subparagraph (A), (B), or (D) of section 6416(a)(1) of such Code.</text>
</paragraph></subsection><subsection commented="no" id="H83A0EB9FD3B44274B61E46E6C2795592"><enum>(d)</enum><header>Special rule for
kerosene used in aviation on a farm for farming purposes</header>
<paragraph commented="no" id="H7903CBC2743B46759400821900411200"><enum>(1)</enum><header>Refunds for
purchases after December <enum-in-header>31, 2004</enum-in-header>, and before
October <enum-in-header>1, 2005</enum-in-header></header><text>The Secretary of
the Treasury shall pay to the ultimate purchaser of any kerosene which is used
in aviation on a farm for farming purposes and which was purchased after
December 31, 2004, and before October 1, 2005, an amount equal to the aggregate
amount of tax imposed on such fuel under section 4041 or 4081 of the Internal
Revenue Code of 1986, as the case may be, reduced by any payment to the
ultimate vendor under section 6427(l)(5)(C) of such Code (as in effect on the
day before the date of the enactment of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: a Legacy for Users).</text>
</paragraph><paragraph commented="no" id="HB20B1458007A48F1B6C00074FBC4AC11"><enum>(2)</enum><header>Use on a farm
for farming purposes</header><text>For purposes of paragraph (1), kerosene
shall be treated as used on a farm for farming purposes if such kerosene is
used for farming purposes (within the meaning of section 6420(c)(3) of the
Internal Revenue Code of 1986) in carrying on a trade or business on a farm
situated in the United States. For purposes of the preceding sentence, rules
similar to the rules of section 6420(c)(4) of such Code shall apply.</text>
</paragraph><paragraph commented="no" id="H39D0DD32B4AC4E2DB6E3C182049EBE6"><enum>(3)</enum><header>Time for filing
claims</header><text>No claim shall be allowed under paragraph (1) unless the
ultimate purchaser files such claim before the date that is 3 months after the
date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" id="H7A25721ED712491E861B9675579FD00"><enum>(4)</enum><header>No double
benefit</header><text>No amount shall be paid under paragraph (1) or section
6427(l) of the Internal Revenue Code of 1986 with respect to any kerosene
described in paragraph (1) to the extent that such amount is in excess of the
tax imposed on such kerosene under section 4041 or 4081 of such Code, as the
case may be.</text>
</paragraph><paragraph commented="no" id="H9800CFE68FEC4184A66DC9E434AEA7EF"><enum>(5)</enum><header>Applicable
laws</header><text>For purposes of this subsection, rules similar to the rules
of section 6427(j) of the Internal Revenue Code of 1986 shall apply.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H0328D4FC32424E03B81187513287CD43" section-type="subsequent-section"><enum>152.</enum><header>Deduction for
qualified timber gain</header>
<subsection id="H08AAD395DBFF4696903B6D15E2005568"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter P of chapter 1 is amended by adding
at the end the following new section:</text>
<quoted-block id="H137977FE689644BCAD56437B7736B59">
<section id="H8E6EB5AAB85443CAA0F500A423FF5269"><enum>1203.</enum><header>Deduction for
qualified timber gain</header>
<subsection id="HE9BF08E2A2C3422CB7CD163E4CDC6D78"><enum>(a)</enum><header>In
general</header><text>In the case of a taxpayer which elects the application of
this section for a taxable year, there shall be allowed a deduction against
gross income equal to 60 percent of the lesser of—</text>
<paragraph id="HA8F2D4E52F6B4F839B08B01600284817"><enum>(1)</enum><text>the taxpayer’s
qualified timber gain for such year, or</text>
</paragraph><paragraph id="H599A938A8038491FA5006164785327F7"><enum>(2)</enum><text>the taxpayer’s net
capital gain for such year.</text>
</paragraph></subsection><subsection id="H20E3C3AF77E14B2D9E8B742F58684CD7"><enum>(b)</enum><header>Qualified timber
gain</header><text>For purposes of this section, the term <term>qualified
timber gain</term> means, with respect to any taxpayer for any taxable year,
the excess (if any) of—</text>
<paragraph id="HF9E6F5DA143F4373B2CAE454557DD20"><enum>(1)</enum><text>the sum of the
taxpayer’s gains described in subsections (a) and (b) of section 631 for such
year, over</text>
</paragraph><paragraph id="HE51EF646F9AC4A7096E1D1E7BF946CBF"><enum>(2)</enum><text>the sum of the
taxpayer’s losses described in such subsections for such year.</text>
</paragraph></subsection><subsection id="HBCB3A2FF17D64E4583A3D3D361DE307B"><enum>(c)</enum><header>Special rules
for pass-thru entities</header><text>In the case of any qualified timber gain
of a pass-thru entity (as defined in section 1(h)(10))—</text>
<paragraph id="HADFEB2E7D1B942B1BC863E9126298D5B"><enum>(1)</enum><text>the election under
this section shall be made separately by each taxpayer subject to tax on such
gain, and</text>
</paragraph><paragraph id="H534D854C0A5F41158B25FC646132F237"><enum>(2)</enum><text>the Secretary may
prescribe such regulations as are appropriate to apply this section to such
gain.</text>
</paragraph></subsection><subsection id="H2DFABC95CFF64CFAACFA7E8D4E757D5B"><enum>(d)</enum><header>Termination</header><text>No
disposition of timber after December 31, 2007, shall be taken into account
under subsection
(b).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H58E2FB7BF28D4992B7007E00AB1F400"><enum>(b)</enum><header>Coordination With
Maximum Capital Gains Rates</header>
<paragraph id="H7460EA3CC7344078A14778D1E600A6C"><enum>(1)</enum><header>Taxpayers other
than corporations</header><text>Paragraph (2) of section 1(h) is amended to
read as follows:</text>
<quoted-block id="H346AE4D8D1E14FB4B31ED12BBF56AD47">
<paragraph id="H963D2E0862F145F6A377A466D1CC2EBF"><enum>(2)</enum><header>Reduction of net
capital gain</header><text>For purposes of this subsection, the net capital
gain for any taxable year shall be reduced (but not below zero) by the sum
of—</text>
<subparagraph id="HDE6933FE74B546B2ABCA437959D27CA6"><enum>(A)</enum><text>the amount which
the taxpayer takes into account as investment income under section
163(d)(4)(B)(iii), and</text>
</subparagraph><subparagraph id="HE04719DE179D49EE8EF2175077968427"><enum>(B)</enum><text>in the case of a
taxable year with respect to which an election is in effect under section 1203,
the lesser of—</text>
<clause id="H3141AA29D1B544E88C4527F9DA604C9E"><enum>(i)</enum><text>the amount
described in paragraph (1) of section 1203(a), or</text>
</clause><clause id="H521D63ECDAD04A16B48CBC12B77D9412"><enum>(ii)</enum><text>the amount
described in paragraph (2) of such
section.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H2E7EB4F0B9794A969DE03F5FFAA0003D"><enum>(2)</enum><header>Corporations</header><text>Section
1201 is amended by redesignating subsection (b) as subsection (c) and inserting
after subsection (a) the following new subsection:</text>
<quoted-block id="HAB7A1D6A093845ACA0EAA047E5D89D02">
<subsection id="HE391C06C7757466D9BD4A084E155ACDE"><enum>(b)</enum><header>Qualified timber
gain not taken into account</header><text>For purposes of this section, in the
case of a corporation with respect to which an election is in effect under
section 1203, the net capital gain for any taxable year shall be reduced (but
not below zero) by the corporation’s qualified timber gain (as defined in
section
1203(b)).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H26259B183A6141179FB87E5C82934E70"><enum>(c)</enum><header>Deduction
allowed whether or not individual itemizes other
deductions</header><text>Subsection (a) of section 62, as amended by this Act,
is amended by inserting before the last sentence the following new
paragraph:</text>
<quoted-block id="H704DE5F63B594703A6ADC780D5CE73C1">
<paragraph id="HDEAF3AFDD29843F19B54B00059CBF713"><enum>(22)</enum><header>Qualified
timber gains</header><text>The deduction allowed by section
1203.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD95FE0E00AC84D9BB431BD0318004226"><enum>(d)</enum><header>Deduction
allowed in computing adjusted current earnings</header><text>Subparagraph (C)
of section 56(g)(4) is amended by adding at the end the following new
clause:</text>
<quoted-block id="HCE5DF027341648A99315CED338E8984D">
<clause id="H0EE4ED1CDC0E4078BC91CA13446E5F5E"><enum>(vii)</enum><header>Deduction for
qualified timber gain</header><text>Clause (i) shall not apply to any deduction
allowed under section
1203.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H842F38C7B6A042AD99B49DEDF41B739C"><enum>(e)</enum><header>Deduction
allowed in computing taxable income of electing small business
trusts</header><text>Subparagraph (C) of section 641(c)(2) is amended by
inserting after clause (iii) the following new clause:</text>
<quoted-block id="H4D6ABB1DB5E34678B8BB1C5DC0988D4E">
<clause id="H8A424B8CB2164FF6B900B02FDC5317E6"><enum>(iv)</enum><text>The deduction
allowed under section
1203.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H297CAE954BCC440F9779A8E005CDFF4"><enum>(f)</enum><header>Conforming
amendments</header>
<paragraph id="H4F302654D3EC4E93A54B0047A1135522"><enum>(1)</enum><text>Subparagraph (B)
of section 172(d)(2) is amended to read as follows:</text>
<quoted-block id="HFA8F0F1D578847B29900EC75FD82725C">
<subparagraph id="H5997B31B34234A10B0DA795E204C2823"><enum>(B)</enum><text>the exclusion
under section 1202 and the deduction under section 1203 shall not be
allowed.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6ABE88BFCB1F4C7B860063256348ED70"><enum>(2)</enum><text>Paragraph (4) of
section 642(c) is amended by striking the first sentence and inserting the
following: <quote>To the extent that the amount otherwise allowable as a
deduction under this subsection consists of gain described in section 1202(a)
or qualified timber gain (as defined in section 1203(b)), proper adjustment
shall be made for any exclusion allowable to the estate or trust under section
1202 and for any deduction allowable to the estate or trust under section
1203.</quote>.</text>
</paragraph><paragraph id="H4630C235F98D4DC5B6FAFDADBC889059"><enum>(3)</enum><text>Paragraph (3) of
section 643(a) is amended by striking the last sentence and inserting the
following: <quote>The exclusion under section 1202 and the deduction under
section 1203 shall not be taken into account.</quote>.</text>
</paragraph><paragraph id="HC9CC6274A1A2462DA3B47661E3259E5D"><enum>(4)</enum><text>Subparagraph (C)
of section 643(a)(6) is amended to read as follows:</text>
<quoted-block id="HE4F129F8E83B4A1A8F7627901813FB7">
<subparagraph id="HA27BE5A9ABAE49CFBD33D4C867B7E8C3"><enum>(C)</enum><text>Paragraph (3)
shall not apply to a foreign trust. In the case of such a trust—</text>
<clause id="H0F22C856683742D1B4F57DA8174FA777"><enum>(i)</enum><text>there shall be
included gains from the sale or exchange of capital assets, reduced by losses
from such sales or exchanges to the extent such losses do not exceed gains from
such sales or exchanges, and</text>
</clause><clause id="H720E6CC5803E4C6184DCE434597B381E"><enum>(ii)</enum><text>the deduction
under section 1203 shall not be taken into
account.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6EDB89C14B784B34BBA042F6153E24B4"><enum>(5)</enum><text>Paragraph (4) of
section 691(c) is amended by inserting <quote>1203,</quote> after
<quote>1202,</quote>.</text>
</paragraph><paragraph id="HC9DAABE29C1D4EF88B6010DF4073CB01"><enum>(6)</enum><text>Paragraph (2) of
section 871(a) is amended by striking <quote>section 1202</quote> and inserting
<quote>sections 1202 and 1203</quote>.</text>
</paragraph><paragraph id="H44D539E11419472B95F0BC3859A6AD41"><enum>(7)</enum><text>The table of
sections for part I of subchapter P of chapter 1 is amended by adding at the
end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HD7DFD9424B594B2E9055ABDD6D014F1D" style="OLC">
<toc container-level="quoted-block-container" idref="H137977FE689644BCAD56437B7736B59" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H8E6EB5AAB85443CAA0F500A423FF5269" level="section">Sec. 1203. Deduction for qualified timber
gain.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HA5CE3954048C4C20A372A11E35580563"><enum>(g)</enum><header>Effective
date</header>
<paragraph id="H61DC5FEBDA1242D58349610733F4ED8B"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years ending after the date of the enactment of this Act.</text>
</paragraph><paragraph id="HA88333E470154D5AAD811BFC35DCB043"><enum>(2)</enum><header>Taxable years
which include date of enactment</header><text>In the case of any taxable year
which includes the date of the enactment of this Act, for purposes of the
Internal Revenue Code of 1986, the taxpayer’s qualified timber gain shall not
exceed the excess that would be described in section 1203(b) of such Code, as
added by this section, if only dispositions of timber after such date were
taken into account.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H7F8AB1E6E3774CC0AAA5C979D577DA21" section-type="subsequent-section"><enum>153.</enum><header>Credit to holders of
rural renaissance bonds</header>
<subsection id="HB9DD5AFA95124949003C194E67198C49"><enum>(a)</enum><header>In
General</header><text>Subpart H of part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the end the following
new section:</text>
<quoted-block id="HC6555F2879CC4721A1626C2E947F2807">
<section id="HAF2F713307F0464595E415EABC01B3F"><enum>54A.</enum><header>Credit to
holders of rural renaissance bonds</header>
<subsection id="H45D25A52F57E45F5A89499AD44CEA19D"><enum>(a)</enum><header>Allowance of
credit</header><text>In the case of a taxpayer who holds a rural renaissance
bond on a credit allowance date of such bond, which occurs during the taxable
year, there shall be allowed as a credit against the tax imposed by this
chapter for such taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to credit allowance dates during
such year on which the taxpayer holds such bond.</text>
</subsection><subsection id="H6DDD927FC43841B5977313CA837C2CC2"><enum>(b)</enum><header>Amount of
credit</header>
<paragraph id="H8751F6D687764F30A2E16E8ED8FD44B0"><enum>(1)</enum><header>In
General</header><text>The amount of the credit determined under this subsection
with respect to any credit allowance date for a rural renaissance bond is 25
percent of the annual credit determined with respect to such bond.</text>
</paragraph><paragraph id="H0C5A1C3141DF483CBA661D41005C272B"><enum>(2)</enum><header>Annual
credit</header><text>The annual credit determined with respect to any rural
renaissance bond is the product of—</text>
<subparagraph id="H189E1929EB5640ABAB1F3226FD7EC006"><enum>(A)</enum><text>the credit rate
determined by the Secretary under paragraph (3) for the day on which such bond
was sold, multiplied by</text>
</subparagraph><subparagraph id="HC5E3EE276F684835B006F22B213CD0C8"><enum>(B)</enum><text>the outstanding
face amount of the bond.</text>
</subparagraph></paragraph><paragraph id="HDBDD09BEC0C240C4AB6953653E7FEBD3"><enum>(3)</enum><header>Determination</header><text>For
purposes of paragraph (2), with respect to any rural renaissance bond, the
Secretary shall determine daily or caused to be determined daily a credit rate
which shall apply to the first day on which there is a binding, written
contract for the sale or exchange of the bond. The credit rate for any day is
the credit rate which the Secretary or the Secretary’s designee estimates will
permit the issuance of rural renaissance bonds with a specified maturity or
redemption date without discount and without interest cost to the qualified
issuer.</text>
</paragraph><paragraph id="H6809193051EE4054BD9712B56DDE00EF"><enum>(4)</enum><header>Credit allowance
date</header><text>For purposes of this section, the term <term>credit
allowance date</term> means—</text>
<subparagraph id="H5EA10D4384304DBEA656A44DB8BB664E"><enum>(A)</enum><text>March 15,</text>
</subparagraph><subparagraph id="H4082DD003C1D4A600083DB3F09D4E64B"><enum>(B)</enum><text>June 15,</text>
</subparagraph><subparagraph id="HD766E1FFAED442FC8EB427A9D99DBB5E"><enum>(C)</enum><text>September 15,
and</text>
</subparagraph><subparagraph id="HBEF931B7D35D49C78209E85335BC8E01"><enum>(D)</enum><text>December
15.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Such term
also includes the last day on which the bond is outstanding.</continuation-text></paragraph><paragraph id="HCEF6D22B1A0C4126B38FAD7D62D31297"><enum>(5)</enum><header>Special rule for
issuance and redemption</header><text>In the case of a bond which is issued
during the 3-month period ending on a credit allowance date, the amount of the
credit determined under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise determined based on the
portion of the 3-month period during which the bond is outstanding. A similar
rule shall apply when the bond is redeemed or matures.</text>
</paragraph></subsection><subsection id="HEAA3BFF26C9B4F7E993D214263CBFE1D"><enum>(c)</enum><header>Limitation based
on amount of tax</header><text>The credit allowed under subsection (a) for any
taxable year shall not exceed the excess of—</text>
<paragraph id="HEB2C7EFF52574E058356F88F1FD83727"><enum>(1)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</paragraph><paragraph id="H0C13A2E1B4E948B2BBCCF680E460B452"><enum>(2)</enum><text>the sum of the
credits allowable under this part (other than subpart C and this
section).</text>
</paragraph></subsection><subsection id="H08D543230A1547358F192082461BC372"><enum>(d)</enum><header>Rural
renaissance bond</header><text>For purposes of this section—</text>
<paragraph id="HC254AB7B50024D6B92D6245576A89D7B"><enum>(1)</enum><header>In
General</header><text>The term <term>rural renaissance bond</term> means any
bond issued as part of an issue if—</text>
<subparagraph id="H52236F3E7D594A3299986E10F9B44E65"><enum>(A)</enum><text>the bond is issued
by a qualified issuer,</text>
</subparagraph><subparagraph id="H845E59777CC34BE7A4F9AEE0ABBAE4DF"><enum>(B)</enum><text>95 percent or more
of the proceeds from the sale of such issue are to be used for capital
expenditures incurred for 1 or more qualified projects,</text>
</subparagraph><subparagraph id="HAD35D638CFEC46BB97005180E8679159"><enum>(C)</enum><text>the qualified
issuer designates such bond for purposes of this section and the bond is in
registered form, and</text>
</subparagraph><subparagraph id="H817C12C2A7894AE882699FB7018FF834"><enum>(D)</enum><text>the issue meets
the requirements of subsections (e) and (h).</text>
</subparagraph></paragraph><paragraph id="HA664124BFA824646AA41D44C37AAA06C"><enum>(2)</enum><header>Qualified
project; special use rules</header>
<subparagraph id="H15B4D31D021447149CC14B2214EB4FC5"><enum>(A)</enum><header>In
General</header><text>The term <term>qualified project</term> means 1 or more
projects described in subparagraph (B) located in a rural area.</text>
</subparagraph><subparagraph id="H0975EA7A99F14DC1863C33132FA00065"><enum>(B)</enum><header>Projects
described</header><text>A project described in this subparagraph is—</text>
<clause id="HE494B60DA0DD4360AB2B9C72816F4447"><enum>(i)</enum><text>a
water or waste treatment project,</text>
</clause><clause id="H9A5D0C77DAE2468CB5FED1ADDEB73CA5"><enum>(ii)</enum><text>an affordable
housing project,</text>
</clause><clause id="HAE5F6A2C2F0E438AB63CE99DEF6FDB7"><enum>(iii)</enum><text>a
community facility project, including hospitals, fire and police stations, and
nursing and assisted-living facilities,</text>
</clause><clause id="HF151CA473ADD4E1D9E191E7632134542"><enum>(iv)</enum><text>a
value-added agriculture or renewable energy facility project for agricultural
producers or farmer-owned entities, including any project to promote the
production, processing, or retail sale of ethanol (including fuel at least 85
percent of the volume of which consists of ethanol), biodiesel, animal waste,
biomass, raw commodities, or wind as a fuel,</text>
</clause><clause id="H08C5EFEF382D4C26AD4D54A46CBCE566"><enum>(v)</enum><text>a
distance learning or telemedicine project,</text>
</clause><clause id="HE32BCE1F85DA4498B0A23BA88D4C3331"><enum>(vi)</enum><text>a
rural utility infrastructure project, including any electric or telephone
system,</text>
</clause><clause id="H585765CC9A6B400D9FD256B47FD86F1D"><enum>(vii)</enum><text>a project to
expand broadband technology,</text>
</clause><clause id="H55DB47354E194DF6B28FB4569458BC00"><enum>(viii)</enum><text>a rural
teleworks project, and</text>
</clause><clause id="H9AB2BB9BB5AB4E338838086FF0C52FF0"><enum>(ix)</enum><text>any project
described in any preceding clause carried out by the Delta Regional
Authority.</text>
</clause></subparagraph><subparagraph id="HF34EF76A895E401EB08FEEE7C931DDB"><enum>(C)</enum><header>Special
rules</header><text>For purposes of this paragraph—</text>
<clause id="H3B34A53059544030BA3CB8361827C700"><enum>(i)</enum><text>any project
described in subparagraph (B)(iv) for a farmer-owned entity may be considered a
qualified project if such entity is located in a rural area, or in the case of
a farmer-owned entity the headquarters of which are located in a nonrural area,
if the project is located in a rural area, and</text>
</clause><clause id="H21206FD1262D424A86744D442769EFF2"><enum>(ii)</enum><text>any project for a
farmer-owned entity which is a facility described in subparagraph (B)(iv) for
agricultural producers may be considered a qualified project regardless of
whether the facility is located in a rural or nonrural area.</text>
</clause></subparagraph></paragraph><paragraph id="H89D9C89E2B5E4E9CBF1CBD6C63D09300"><enum>(3)</enum><header>Special use
rules</header>
<subparagraph id="HA2486DF3479B4FCBA4A3D16614D8080"><enum>(A)</enum><header>Refinancing
rules</header><text>For purposes of paragraph (1)(B), a qualified project may
be refinanced with proceeds of a rural renaissance bond only if the
indebtedness being refinanced (including any obligation directly or indirectly
refinanced by such indebtedness) was originally incurred after the date of the
enactment of this section.</text>
</subparagraph><subparagraph id="H3A21F3638B484A5B96E925132816AFBD"><enum>(B)</enum><header>Reimbursement</header><text>For
purposes of paragraph (1)(B), a rural renaissance bond may be issued to
reimburse a borrower for amounts paid after the date of the enactment of this
section with respect to a qualified project, but only if—</text>
<clause id="H842EB5BCFB07475B90DDBCA4CAF91444"><enum>(i)</enum><text>prior to the
payment of the original expenditure, the borrower declared its intent to
reimburse such expenditure with the proceeds of a rural renaissance
bond,</text>
</clause><clause id="H64343BF1284F463EA653D35E1672361C"><enum>(ii)</enum><text>not later than 60
days after payment of the original expenditure, the qualified issuer adopts an
official intent to reimburse the original expenditure with such proceeds,
and</text>
</clause><clause id="H17C9FB98A1454A188C2FBA89D4B10F9"><enum>(iii)</enum><text>the reimbursement
is made not later than 18 months after the date the original expenditure is
paid.</text>
</clause></subparagraph><subparagraph id="H0C4F7367949E431083D156002F60551C"><enum>(C)</enum><header>Treatment of
changes in use</header><text>For purposes of paragraph (1)(B), the proceeds of
an issue shall not be treated as used for a qualified project to the extent
that a borrower takes any action within its control which causes such proceeds
not to be used for a qualified project. The Secretary shall prescribe
regulations specifying remedial actions that may be taken (including conditions
to taking such remedial actions) to prevent an action described in the
preceding sentence from causing a bond to fail to be a rural renaissance
bond.</text>
</subparagraph></paragraph></subsection><subsection id="H37388A6DC598458FB301004524D7BCB7"><enum>(e)</enum><header>Maturity
limitations</header>
<paragraph id="HE0F0A66CD042401C99B57C30F222974D"><enum>(1)</enum><header>Duration of
term</header><text>A bond shall not be treated as a rural renaissance bond if
the maturity of such bond exceeds the maximum term determined by the Secretary
under paragraph (2) with respect to such bond.</text>
</paragraph><paragraph id="H2EEE8DDF3C98442687DC428E3D3B6433"><enum>(2)</enum><header>Maximum
term</header><text>During each calendar month, the Secretary shall determine
the maximum term permitted under this paragraph for bonds issued during the
following calendar month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the obligation to repay
the principal on the bond being equal to 50 percent of the face amount of such
bond. Such present value shall be determined without regard to the requirements
of paragraph (3) and using as a discount rate the average annual interest rate
of tax-exempt obligations having a term of 10 years or more which are issued
during the month. If the term as so determined is not a multiple of a whole
year, such term shall be rounded to the next highest whole year.</text>
</paragraph><paragraph id="H4F25C3A4C64140F9B7C1DD168900B779"><enum>(3)</enum><header>Ratable
principal amortization required</header><text>A bond shall not be treated as a
rural renaissance bond unless it is part of an issue which provides for an
equal amount of principal to be paid by the qualified issuer during each
calendar year that the issue is outstanding.</text>
</paragraph></subsection><subsection id="H7FE6DD8822C1414CAB8F37EA1400C571"><enum>(f)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="H9398FDB0E8DA4CA3B46EF27E64FA6EB8"><enum>(1)</enum><header>National
limitation</header><text>There is a rural renaissance bond limitation of
$200,000,000.</text>
</paragraph><paragraph id="H01D4844EA37F4AF68E4F597F00592131"><enum>(2)</enum><header>Allocation by
Secretary</header><text>The Secretary shall allocate the amount described in
paragraph (1) among qualified projects in such manner as the Secretary
determines appropriate.</text>
</paragraph></subsection><subsection id="H2994E723A1A14A18A51500047157DB00"><enum>(g)</enum><header>Credit included
in gross income</header><text>Gross income includes the amount of the credit
allowed to the taxpayer under this section (determined without regard to
subsection (c)) and the amount so included shall be treated as interest
income.</text>
</subsection><subsection id="H219390E86F344579AE294D93B8ED0371"><enum>(h)</enum><header>Special rules
relating to expenditures</header>
<paragraph id="HCCD7C69F58C845A9B634C7B44F006700"><enum>(1)</enum><header>In
general</header><text>An issue shall be treated as meeting the requirements of
this subsection if, as of the date of issuance, the qualified issuer reasonably
expects—</text>
<subparagraph id="H4FB38681B10B4035BAC32348AD85582B"><enum>(A)</enum><text>at least 95
percent of the proceeds from the sale of the issue are to be spent for 1 or
more qualified projects within the 5-year period beginning on the date of
issuance of the rural renaissance bond,</text>
</subparagraph><subparagraph id="H71C6BC870E3D4BCC83104B54AE4C332D"><enum>(B)</enum><text>a binding
commitment with a third party to spend at least 10 percent of the proceeds from
the sale of the issue will be incurred within the 6-month period beginning on
the date of issuance of the rural renaissance bond or, in the case of a rural
renaissance bond, the proceeds of which are to be loaned to 2 or more
borrowers, such binding commitment will be incurred within the 6-month period
beginning on the date of the loan of such proceeds to a borrower, and</text>
</subparagraph><subparagraph id="H112186576F104A16AD009FE8008DD7E1"><enum>(C)</enum><text>such projects will
be completed with due diligence and the proceeds from the sale of the issue
will be spent with due diligence.</text>
</subparagraph></paragraph><paragraph id="H83D3BB9ED3FD4CC3A990407227BFCFD9"><enum>(2)</enum><header>Extension of
period</header><text>Upon submission of a request prior to the expiration of
the period described in paragraph (1)(A), the Secretary may extend such period
if the qualified issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related projects will continue
to proceed with due diligence.</text>
</paragraph><paragraph id="H7E84AE3C8FFF4C69BD237700EDF67321"><enum>(3)</enum><header>Failure to spend
required amount of bond proceeds within 5 years</header><text>To the extent
that less than 95 percent of the proceeds of such issue are expended by the
close of the 5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close of the extended
period), the qualified issuer shall redeem all of the nonqualified bonds within
90 days after the end of such period. For purposes of this paragraph, the
amount of the nonqualified bonds required to be redeemed shall be determined in
the same manner as under section 142.</text>
</paragraph></subsection><subsection id="HB1A3DF502B6F493687ABB6239F8487AF"><enum>(i)</enum><header>Special rules
relating to arbitrage</header><text>A bond which is part of an issue shall not
be treated as a rural renaissance bond unless, with respect to the issue of
which the bond is a part, the qualified issuer satisfies the arbitrage
requirements of section 148 with respect to proceeds of the issue.</text>
</subsection><subsection id="H4AEF34DA16F44C04BF02E16CAF7C0060"><enum>(j)</enum><header>Qualified
issuer</header><text>For purposes of this section—</text>
<paragraph id="HC60BF935F33746EDBBD1BBA31F95CC"><enum>(1)</enum><header>In
General</header><text>The term <term>qualified issuer</term> means any
not-for-profit cooperative lender which has as of the date of the enactment of
this section received a guarantee under section 306 of the Rural
Electrification Act and which meets the requirement of paragraph (2).</text>
</paragraph><paragraph id="H8595B43B55EF4AAC883901DD548645D1"><enum>(2)</enum><header>User fee
requirement</header><text>The requirement of this paragraph is met if the
issuer of any rural renaissance bond makes grants for qualified projects as
defined under subsection (d)(2) on a semi-annual basis every year that such
bond is outstanding in an annual amount equal to one-half of the rate on United
States Treasury Bills of the same maturity multiplied by the outstanding
principal balance of rural renaissance bonds issued by such issuer.</text>
</paragraph></subsection><subsection id="HA287DF5B6DA54261B7776662FA10A000"><enum>(k)</enum><header>Special rules
relating to pool bonds</header><text>No portion of a pooled financing bond may
be allocable to a loan unless the borrower has entered into a written loan
commitment for such portion prior to the issue date of such issue.</text>
</subsection><subsection id="H1602153C28D84CA6BCACBD8C2915BB15"><enum>(l)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph id="H58384DDDFBBD45C2007F2C6033C6FEBA"><enum>(1)</enum><header>Bond</header><text>The
term <term>bond</term> includes any obligation.</text>
</paragraph><paragraph id="HF034AD3FAB894246BF053292F93F529"><enum>(2)</enum><header>Pooled financing
bond</header><text>The term <term>pooled financing bond</term> shall have the
meaning given such term by section 149(f)(4)(A).</text>
</paragraph><paragraph id="HD133EB71E4BB4F869E6CCFFBDFB35271"><enum>(3)</enum><header>Rural
area</header><text>The term <term>rural area</term> means any area other
than—</text>
<subparagraph id="H82FC4759CC2345D78308E403C140EE6E"><enum>(A)</enum><text>a city or town
which has a population of greater than 50,000 inhabitants, or</text>
</subparagraph><subparagraph id="H04F1876D18C84593B4AF8CE354EAD59"><enum>(B)</enum><text>the urbanized area
contiguous and adjacent to such a city or town.</text>
</subparagraph></paragraph><paragraph id="H55D18C24508E4187BBF96E3B292FE416"><enum>(4)</enum><header>Partnership; S
corporation; and other pass-thru entities</header>
<subparagraph id="HFD73F7D3ACD643BF9F7DA5BA66F9B523"><enum>(A)</enum><header>In
General</header><text>Under regulations prescribed by the Secretary, in the
case of a partnership, trust, S corporation, or other pass-thru entity, rules
similar to the rules of section 41(g) shall apply with respect to the credit
allowable under subsection (a).</text>
</subparagraph><subparagraph id="HE2DF138858DE4AB4AF6C569FDE330075"><enum>(B)</enum><header>No basis
adjustment</header><text>In the case of a bond held by a partnership or an S
corporation, rules similar to the rules under section 1397E(l) shall
apply.</text>
</subparagraph></paragraph><paragraph id="H5338869C15144F79A7004476A9B000D7"><enum>(5)</enum><header>Bonds held by
regulated investment companies</header><text>If any rural renaissance bond is
held by a regulated investment company, the credit determined under subsection
(a) shall be allowed to shareholders of such company under procedures
prescribed by the Secretary.</text>
</paragraph><paragraph id="HBD1F7FB8DF6F4DF683C42773B7EBFF14"><enum>(6)</enum><header>Reporting</header><text>Issuers
of rural renaissance bonds shall submit reports similar to the reports required
under section
149(e).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0525CEA7C37941D6B97020012B4615A0"><enum>(b)</enum><header>Reporting</header><text>Subsection
(d) of section 6049 (relating to returns regarding payments of interest) is
amended by adding at the end the following new paragraph:</text>
<quoted-block id="HECDA023602BB44E486B7D3EC3962E4C6">
<paragraph id="H5EFBE0FE715244BC9DEAA6D452CADC48"><enum>(9)</enum><header>Reporting of
credit on rural renaissance bonds</header>
<subparagraph id="H4BBD554DEB6547998EA9D1AEF7D09DAA"><enum>(A)</enum><header>In
general</header><text>For purposes of subsection (a), the term
<term>interest</term> includes amounts includible in gross income under section
54A(f) and such amounts shall be treated as paid on the credit allowance date
(as defined in section 54A(b)(4)).</text>
</subparagraph><subparagraph id="H9C2278000253479B91F48DCE1954D4B4"><enum>(B)</enum><header>Reporting to
corporations, etc</header><text>Except as otherwise provided in regulations, in
the case of any interest described in subparagraph (A), subsection (b)(4) shall
be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i)
of such subsection.</text>
</subparagraph><subparagraph id="H9AAEE3EB16AF4033B3958C524C63A810"><enum>(C)</enum><header>Regulatory
authority</header><text>The Secretary may prescribe such regulations as are
necessary or appropriate to carry out the purposes of this paragraph, including
regulations which require more frequent or more detailed
reporting.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEA0F7AA1E9AE4343A303C1AC13E1F71F"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H0E8725B4525B4F5FA2785F225B9BAC2D"><enum>(1)</enum><text>The table of
sections for subpart H of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:</text>
<quoted-block id="H50A515AADA2F49C2BB4B1EF4B32587C1" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="subaccount">Sec. 54A. Credit to holders of rural
renaissance
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8F927F2531904E29BEECB4C9509BC807"><enum>(2)</enum><text>Section 54(c)(2)
is amended by inserting <quote>, section 54A,</quote> after <quote>subpart
C</quote>.</text>
</paragraph><paragraph id="H0F891061CC4B4BF2B008C69CA00009D0"><enum>(3)</enum><text display-inline="yes-display-inline">Section 1400N(l)(3)(B) is amended by
inserting <quote>, section 54A,</quote> after <quote>subpart C</quote>.</text>
</paragraph></subsection><subsection id="H891228B5519345D39C09CBDF83709BA7"><enum>(d)</enum><header>Issuance of
regulations</header><text>The Secretary of Treasury shall issue regulations
required under section 54A of the Internal Revenue Code of 1986 (as added by
this section) not later than 120 days after the date of the enactment of this
Act.</text>
</subsection><subsection id="HDD3565A209964E97923731DF9D4DA2E1"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act and before January 1,
2010.</text>
</subsection></section><section display-inline="no-display-inline" id="H8B9025F7226E4532B9599D00EE9700F9" section-type="subsequent-section"><enum>154.</enum><header>Restoration of
deduction for travel expenses of spouse, etc. accompanying taxpayer on business
travel</header>
<subsection id="H3F737C320A6A4FB0A3C2EC043668B688"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (m) of
section 274 (relating to additional limitations on travel expenses) is amended
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H203FD5E8DD104501B3CA99FAC6CE00CC" style="OLC">
<paragraph id="H1FBD4974BB6749FC98A95384B6001599"><enum>(4)</enum><header>Termination</header><text>Paragraph
(3) shall not apply to any expense paid or incurred after the date of the
enactment of this paragraph and before January 1,
2008.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF95DBA388B34425BA46F0126E1BA8F27"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to amounts paid or incurred after the date of the
enactment of this Act.</text>
</subsection></section><section id="H94363166F51749C6A4B765DDAEBAE6E"><enum>155.</enum><header>Technical
corrections</header>
<subsection display-inline="no-display-inline" id="HDF5720EF2C1645CABCAAF9D6A1003900"><enum>(a)</enum><header>Technical
correction relating to look-through treatment of payments between related
controlled foreign corporations under the foreign personal holding company
rules</header>
<paragraph id="H83D2CC9732ED4D6AA32E35E67B7535A1"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H15C0CC89277449369DEBB88816CE17DA"><enum>(A)</enum><text>The first sentence
of section 954(c)(6)(A), as amended by section 103(b) of the Tax Increase
Prevention and Reconciliation Act of 2005, is amended by striking <quote>which
is not subpart F income</quote> and inserting <quote>which is neither subpart F
income nor income treated as effectively connected with the conduct of a trade
or business in the United States</quote>.</text>
</subparagraph><subparagraph id="HA564E22D69F749FCA870C3CBBD3FDF79"><enum>(B)</enum><text>Section
954(c)(6)(A), as so amended, is amended by striking the last sentence and
inserting the following: <quote>The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out this paragraph, including such
regulations as may be necessary or appropriate to prevent the abuse of the
purposes of this paragraph.</quote></text>
</subparagraph></paragraph><paragraph id="H45583A5B5DE749BC8E36574F1B81C754"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall take effect as if included in section 103(b) of the Tax
Increase Prevention and Reconciliation Act of 2005.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H79D7FCC4039B47F099925004549B9ECF"><enum>(b)</enum><header>Technical
correction regarding authority to exercise reasonable cause and good faith
exception</header>
<paragraph commented="no" display-inline="no-display-inline" id="H369970C17DE346C88DB6287D85CEB00"><enum>(1)</enum><header>In
general</header><text>Section 903(d)(2)(B)(iii) of the American Jobs Creation
Act of 2004, as amended by section 303(a) of the Gulf Opportunity Zone Act of
2005, is amended by inserting <quote>or the Secretary’s delegate</quote> after
<quote>the Secretary of the Treasury</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD0822648F838406089F43D792400E82B"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect as
if included in the provisions of the American Jobs Creation Act of 2004 to
which it relates.</text>
</paragraph></subsection></section></subtitle><enum>II</enum><header>Increase in
Federal minimum wage</header>
<section id="idD2AA089FD64847039EEE5298D24E24E9"><enum>201.</enum><header>Minimum
wage</header>
<subsection id="id17D9B7C4B1644A0DA4A23C1AF3FAA37D"><enum>(a)</enum><header>In
general</header><text>Section 6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id78539ECB14964FEB96EDE43B50D7357B" style="OLC">
<paragraph id="id64AB703E267E447184E77CC13E94372F"><enum>(1)</enum><text>except as
otherwise provided in this section, not less than—</text>
<subparagraph id="id51E993EACD894B0688EAFEAF8DB8E4EB"><enum>(A)</enum><text>$5.85 an hour,
beginning on the 60th day after the date of enactment of the Fair Minimum Wage
Act of 2005;</text>
</subparagraph><subparagraph id="idA6891FFD2E1744EA82892652811262EB"><enum>(B)</enum><text>$6.55 an hour,
beginning 12 months after that 60th day; and</text>
</subparagraph><subparagraph id="idADC562484992422BBC58F1A8AB73912E"><enum>(C)</enum><text>$7.25 an hour,
beginning 24 months after that 60th
day;</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id8F59D1E6FB90440CA620301824723E2E"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall take effect 60
days after the date of enactment of this Act.</text>
</subsection></section><section id="id54F53983533940E7A3B799E0964D5979"><enum>202.</enum><header>Applicability
of minimum wage to the Commonwealth of the Northern Mariana Islands</header>
<subsection id="id8A9C4CA0A6C9477AB922B0502A1D80F7"><enum>(a)</enum><header>In
general</header><text>Section 6 of the Fair Labor Standards Act of 1938 (29
U.S.C. 206) shall apply to the Commonwealth of the Northern Mariana
Islands.</text>
</subsection><subsection id="id3FF99258C7014BD3B82CE632C338A632"><enum>(b)</enum><header>Transition</header><text>Notwithstanding
subsection (a), the minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under section 6(a)(1) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(1)) shall be—</text>
<paragraph id="id312143B9712C40FDBDEE069B4B8A0E62"><enum>(1)</enum><text>$3.55 an hour,
beginning on the 60th day after the date of enactment of this Act; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAB2E90922C4A4098B517D7637E3352D5"><enum>(2)</enum><text>increased by
$0.50 an hour (or such lesser amount as may be necessary to equal the minimum
wage under section 6(a)(1) of such Act), beginning 6 months after the date of
enactment of this Act and every 6 months thereafter until the minimum wage
applicable to the Commonwealth of the Northern Mariana Islands under this
subsection is equal to the minimum wage set forth in such section.</text>
</paragraph></subsection></section><enum>III</enum><header>Surface Mining
Control and Reclamation Act Amendments of 2006</header>
<section id="H18A2D24B09864D7F8C889E17E5C466FF"><enum>301.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Surface Mining Control and
Reclamation Act Amendments of 2006</short-title></quote>.</text>
</section><subtitle id="HF40CC62F14F74A179EC7FA1D9B80A6F2"><enum>A</enum><header>Mining Control and
Reclamation</header>
<section id="HD0F65381E55C439CB9DCDF78E9C9662"><enum>311.</enum><header>Abandoned Mine
Reclamation Fund and purposes</header>
<subsection id="H6826F9072F30474AB38C6E2F1BA85890"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 401 of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1231) is
amended—</text>
<paragraph id="H1BDD3E9DCC9B4CE4B3AD91CDE845351D"><enum>(1)</enum><text>in subsection
(c)—</text>
<subparagraph id="HA2FF419F139A4EF4863BE31012D4F8F"><enum>(A)</enum><text>by striking
paragraphs (2) and (6); and</text>
</subparagraph><subparagraph id="H2AC3E12963104C2C940552EE23EC954D"><enum>(B)</enum><text>by redesignating
paragraphs (3), (4), and (5) and paragraphs (7) through (13) as paragraphs (2)
through (11), respectively;</text>
</subparagraph></paragraph><paragraph id="H16A63803A1C84D1B9DF55753A8129FB4"><enum>(2)</enum><text>by striking
subsection (d) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H107233F220BD4E279905B2B4824900E6" style="OLC">
<subsection id="H7AF92827B91A4EEA8EF36E460904C8E9"><enum>(d)</enum><header>Availability of
moneys; no fiscal year limitation</header>
<paragraph id="HD5C78803ECFF41B1AC541417583EB097"><enum>(1)</enum><header>In
general</header><text>Moneys from the fund for expenditures under subparagraphs
(A) through (D) of section 402(g)(3) shall be available only when appropriated
for those subparagraphs.</text>
</paragraph><paragraph id="HD2B6731304B842CCBDAB4004911C9660"><enum>(2)</enum><header>No fiscal year
limitation</header><text>Appropriations described in paragraph (1) shall be
made without fiscal year limitation.</text>
</paragraph><paragraph id="H6D9427DC20E44078AD379F054625E2BF"><enum>(3)</enum><header>Other
purposes</header><text>Moneys from the fund shall be available for all other
purposes of this title without prior appropriation as provided in subsection
(f).</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H59DAA9BDCF624597B400885F93B3007D"><enum>(3)</enum><text>in subsection
(e)—</text>
<subparagraph id="HB4673AA0D6984AD7B0F917903C027282"><enum>(A)</enum><text>in the second
sentence, by striking <quote>the needs of such fund</quote> and inserting
<quote>achieving the purposes of the transfers under section 402(h)</quote>;
and</text>
</subparagraph><subparagraph id="H7936D8B7FD804409A447B247B3A49E97"><enum>(B)</enum><text>in the third
sentence, by inserting before the period the following: <quote>for the purpose
of the transfers under section 402(h)</quote>; and</text>
</subparagraph></paragraph><paragraph id="H20E15F0DDDB844E0BE009E5D83D97B4"><enum>(4)</enum><text>by
adding at the end the following:</text>
<quoted-block id="HEFB4A00025A946E096E7873E663E1D33" style="OLC">
<subsection id="H9E313FF3C23044ACA034E9ABEFD66BF4"><enum>(f)</enum><header>General
Limitation on Obligation Authority</header>
<paragraph id="H3274C5229F7345E2AD2FE427C448EA8F"><enum>(1)</enum><header>In
general</header><text>From amounts deposited into the fund under subsection
(b), the Secretary shall distribute during each fiscal year beginning after
September 30, 2007, an amount determined under paragraph (2).</text>
</paragraph><paragraph id="H431117A96176481684582C18ED7205DB"><enum>(2)</enum><header>Amounts</header>
<subparagraph id="HE31E7B88C4874501A86C7C4CB32F9D26"><enum>(A)</enum><header>For fiscal years
2008 through 2022</header><text>For each of fiscal years 2008 through 2022, the
amount distributed by the Secretary under this subsection shall be equal
to—</text>
<clause id="HA75725F2DFF24652B8EBC7003E56F68D"><enum>(i)</enum><text>the amounts
deposited into the fund under paragraphs (1), (2), and (4) of subsection (b)
for the preceding fiscal year that were allocated under paragraphs (1) and (5)
of section 402(g); plus</text>
</clause><clause id="H9C2199B380F741E895874C6C8C5946FB"><enum>(ii)</enum><text>the amount needed
for the adjustment under section 402(g)(8) for the current fiscal year.</text>
</clause></subparagraph><subparagraph id="HF97E39D1EE104E92B36891CFF6A2FDC3"><enum>(B)</enum><header>Fiscal years
2023 and thereafter</header><text>For fiscal year 2023 and each fiscal year
thereafter, to the extent that funds are available, the Secretary shall
distribute an amount equal to the amount distributed under subparagraph (A)
during fiscal year 2022.</text>
</subparagraph></paragraph><paragraph id="HCBAB3CB20FFF49848F40D75C169975D6"><enum>(3)</enum><header>Distribution</header>
<subparagraph id="H555E6F96AE1649D199CDC283D5CDB04"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), for each fiscal
year, of the amount to be distributed to States and Indian tribes pursuant to
paragraph (2), the Secretary shall distribute—</text>
<clause commented="no" id="HED5164134CC34666AECB90BAEA2B5B38"><enum>(i)</enum><text>the amounts
allocated under paragraph (1) of section 402(g), the amounts allocated under
paragraph (5) of section 402(g), and any amount reallocated under section
411(h)(3) in accordance with section 411(h)(2), for grants to States and Indian
tribes under section 402(g)(5); and</text>
</clause><clause commented="no" id="H7F760A59A2A340DA9F4C25BEF2AC6D8E"><enum>(ii)</enum><text>the amounts
allocated under section 402(g)(8).</text>
</clause></subparagraph><subparagraph commented="no" id="H18CFAA4BD0AC4C34BACA79B4B90D9C4"><enum>(B)</enum><header>Exclusion</header><text>Beginning
on October 1, 2007, certified States shall be ineligible to receive amounts
under section 402(g)(1).</text>
</subparagraph></paragraph><paragraph id="HF5130D645AF7489E00EFAFFFFB97257B"><enum>(4)</enum><header>Availability</header><text>Amounts
in the fund available to the Secretary for obligation under this subsection
shall be available until expended.</text>
</paragraph><paragraph commented="no" id="HF6B054949EF04D659235F9CCFBB16BC"><enum>(5)</enum><header>Addition</header>
<subparagraph commented="no" id="H4D8D2A15FD934E2A003361B783259039"><enum>(A)</enum><header>In
general</header><text>Subject to subparagraph (B), the amount distributed under
this subsection for each fiscal year shall be in addition to the amount
appropriated from the fund during the fiscal year.</text>
</subparagraph><subparagraph commented="no" id="HA98DEC2D3D3C496E9F4B19007DC4591D"><enum>(B)</enum><header>Exceptions</header><text>Notwithstanding
paragraph (3), the amount distributed under this subsection for the first 4
fiscal years beginning on and after October 1, 2007, shall be equal to the
following percentage of the amount otherwise required to be distributed:</text>
<clause commented="no" id="H7D2F6A4F3DFC4D88858DC56C68EA8999"><enum>(i)</enum><text>50 percent in
fiscal year 2008.</text>
</clause><clause commented="no" id="H8E58E0FC2EDC4958B615D2F1C7A40AD"><enum>(ii)</enum><text>50 percent in
fiscal year 2009.</text>
</clause><clause commented="no" id="H2205D171691D49F49512FC794DB20643"><enum>(iii)</enum><text>75 percent in
fiscal year 2010.</text>
</clause><clause commented="no" id="HE677159A7198499086EF212F9970196D"><enum>(iv)</enum><text>75 percent in
fiscal year
2011.</text>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H22C96EA94F7B4A17B31FA9A8A2CF9BF6"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 712(b) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1302(b)) is amended by striking
<quote>section 401(c)(11)</quote> and inserting <quote>section
401(c)(9)</quote>.</text>
</subsection></section><section id="H250D2A16845C4E88A13BA4C4294D0472"><enum>312.</enum><header>Reclamation
fee</header>
<subsection id="H92DF777EB1B94410977C95FFE81061E4"><enum>(a)</enum><header>Amounts</header>
<paragraph id="HA233A48AD51A45529F3F30B45B02F4A"><enum>(1)</enum><header>Fiscal years
2008–2012</header><text display-inline="yes-display-inline">Effective October
1, 2007, section 402(a) of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1232(a)) is amended—</text>
<subparagraph commented="no" id="H45E829D1F90B403DA690FEBDD194F1EC"><enum>(A)</enum><text>by striking
<quote>35</quote> and inserting <quote>31.5</quote>;</text>
</subparagraph><subparagraph commented="no" id="HC23F390A91BE4E6F8CDBE3CCFC00D34E"><enum>(B)</enum><text>by striking
<quote>15</quote> and inserting <quote>13.5</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H962AE97324894867A4FD257EFE67DAA"><enum>(C)</enum><text>by striking
<quote>10 cents</quote> and inserting <quote>9 cents</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" id="H1FC18C32B62646C4ACAE683314B59797"><enum>(2)</enum><header>Fiscal years
2013–2021</header><text>Effective October 1, 2012, section 402(a) of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(a)) (as
amended by paragraph (1)) is amended—</text>
<subparagraph commented="no" id="H84654232360C44F98CD909668B16CC2"><enum>(A)</enum><text>by striking
<quote>31.5</quote> and inserting <quote>28</quote>;</text>
</subparagraph><subparagraph commented="no" id="H7EEAE4D6FB3744DA8FAAD839E300581B"><enum>(B)</enum><text>by striking
<quote>13.5</quote> and inserting <quote>12</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF735FD7002324545B8C46E899F16FCFD"><enum>(C)</enum><text>by striking
<quote>9 cents</quote> and inserting <quote>8 cents</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HFC8D8C44EF6A419C87B3164B03134CCA"><enum>(b)</enum><header>Duration</header><text>Effective
September 30, 2007, section 402(b) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232(b)) (as amended by section 7007 of the
Emergency Supplemental Appropriations Act for Defense, the Global War on
Terror, and Hurricane Recovery, 2006 (Public Law 109–234; 120 Stat. 484)) is
amended by striking <quote>September 30, 2007</quote> and all that follows
through the end of the sentence and inserting <quote>September 30,
2021.</quote>.</text>
</subsection><subsection id="H4DA3613A5F4D4EC79CBB1EAB7885A1FE"><enum>(c)</enum><header>Allocation of
funds</header><text>Section 402(g) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232(g)) is amended—</text>
<paragraph id="H2958AC1E94664C89A872B1D882431500"><enum>(1)</enum><text>in paragraph
(1)(D)—</text>
<subparagraph id="HE6811E364B1640149C91BDC01E15EFA9"><enum>(A)</enum><text>by inserting
<quote>(except for grants awarded during fiscal years 2008, 2009, and 2010 to
the extent not expended within 5 years)</quote> after <quote>this
paragraph</quote>; and</text>
</subparagraph><subparagraph id="H929C9CB8A9EF4AC4ADD73C497471787F"><enum>(B)</enum><text>by striking
<quote>in any area under paragraph (2), (3), (4), or (5)</quote> and inserting
<quote>under paragraph (5)</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="H4D4B8E358CCF43D08977E761AAC359FB"><enum>(2)</enum><text>by striking
paragraph (2) and inserting:</text>
<quoted-block id="H12AB4908136F48E69D2FA5219B728CE0" style="OLC">
<paragraph commented="no" id="H9EA1BD07FF1E4B529C4866AF7EAA51DC" indent="up1"><enum>(2)</enum><text>In making the grants referred to in
paragraph (1)(C) and the grants referred to in paragraph (5), the Secretary
shall ensure strict compliance by the States and Indian tribes with the
priorities described in section 403(a) until a certification is made under
section
411(a).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HEF600495B0C441F59FA978FC45674C01"><enum>(3)</enum><text>in paragraph
(3)—</text>
<subparagraph id="H45FCDEAFD9EE419F873C4FF92E7E2915"><enum>(A)</enum><text>in the matter
preceding subparagraph (A), by striking <quote>paragraphs (2) and</quote> and
inserting <quote>paragraph</quote>;</text>
</subparagraph><subparagraph id="H947F08096CBC4C8DB46D593CD4D9261B"><enum>(B)</enum><text>in subparagraph
(A), by striking <quote>401(c)(11)</quote> and inserting
<quote>401(c)(9)</quote>; and</text>
</subparagraph><subparagraph id="HF468B1E897CC4FDF91D2518812DEB400"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H5B3E1C2C90B74342BD9C8991B96B5600" style="OLC">
<subparagraph id="H9B4F3FE9831E497C83FD823EF84FD4CC" indent="up1"><enum>(E)</enum><text>For the purpose of paragraph
(8).</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HCFBF891BAFFD4F6C00324E9E35C2D56B"><enum>(4)</enum><text>in paragraph
(5)—</text>
<subparagraph id="HD38293216F074CC389F3ED6E25EE564F"><enum>(A)</enum><text>by inserting
<quote>(A)</quote> after <quote>(5)</quote>;</text>
</subparagraph><subparagraph id="HD1C6E20FA1AC4E5DB891A81D84D7FC97"><enum>(B)</enum><text>in the first
sentence, by striking <quote>40</quote> and inserting <quote>60</quote>;</text>
</subparagraph><subparagraph id="H7739C68A35B446CEAE9494D29562BDD0"><enum>(C)</enum><text>in the last
sentence, by striking <quote>Funds allocated or expended by the Secretary under
paragraphs (2), (3), or (4)</quote> and inserting <quote>Funds made available
under paragraph (3) or (4)</quote>; and</text>
</subparagraph><subparagraph id="H3745263E53F24F9BAF7F5B98CBF6BCF"><enum>(D)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HB068EF4025364F398F1590BE1EA68ED6" style="OLC">
<subparagraph id="HC825FC1E760F49B69415EF72A73DB42C" indent="up2"><enum>(B)</enum><text>Any amount that is reallocated and
available under section 411(h)(3) shall be in addition to amounts that are
allocated under subparagraph (A).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H96D949FBB65D487FA920E1D4A23C837F"><enum>(5)</enum><text>by striking
paragraphs (6) through (8) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H42AC3AC6C60144758BC9C54BCEC960BD" style="OLC">
<paragraph id="HB0B9D51EC5A2411DAB8225CA0868042" indent="up1"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H758C5738071A44F9BA46E4055DCE0049"><enum>(A)</enum><text>Any State with an
approved abandoned mine reclamation program pursuant to section 405 may receive
and retain, without regard to the 3-year limitation referred to in paragraph
(1)(D), up to 30 percent of the total of the grants made annually to the State
under paragraphs (1) and (5) if those amounts are deposited into an acid mine
drainage abatement and treatment fund established under State law, from which
amounts (together with all interest earned on the amounts) are expended by the
State for the abatement of the causes and the treatment of the effects of acid
mine drainage in a comprehensive manner within qualified hydrologic units
affected by coal mining practices.</text>
</subparagraph><subparagraph id="HB270D16DA7C3485888E3155DFA9FD81F" indent="up1"><enum>(B)</enum><text>In this paragraph, the term
<term>qualified hydrologic unit</term> means a hydrologic unit—</text>
<clause id="HE6183AB67B1846F2BB534BFA4BCF1106"><enum>(i)</enum><text>in which the water quality has been
significantly affected by acid mine drainage from coal mining practices in a
manner that adversely impacts biological resources; and</text>
</clause><clause id="H1E3E5671FBB74857B9BE4444BE2DCB9E"><enum>(ii)</enum><text>that contains land and water that
are—</text>
<subclause id="HA0B595F972974FA4B400ECE9E7AA8300"><enum>(I)</enum><text>eligible pursuant to section 404
and include any of the priorities described in section 403(a); and</text>
</subclause><subclause id="H3E4AD6C790F344F39EC5680091A23475"><enum>(II)</enum><text>the subject of expenditures by the
State from the forfeiture of bonds required under section 509 or from other
States sources to abate and treat acid mine drainage.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H2BA210A572C54B91BC9524963B79E2DB" indent="up1"><enum>(7)</enum><text>In complying with the priorities
described in section 403(a), any State or Indian tribe may use amounts
available in grants made annually to the State or tribe under paragraphs (1)
and (5) for the reclamation of eligible land and water described in section
403(a)(3) before the completion of reclamation projects under paragraphs (1)
and (2) of section 403(a) only if the expenditure of funds for the reclamation
is done in conjunction with the expenditure before, on, or after the date of
enactment of the <short-title>Surface Mining Control and
Reclamation Act Amendments of 2006</short-title> of funds for reclamation
projects under paragraphs (1) and (2) of section 403(a).</text>
</paragraph><paragraph id="HB91A7506943B4CCE97F24F5BB9AC45AC" indent="up1"><enum>(8)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HAC0DD4BE157F44F4ABBD76B0A30225C8"><enum>(A)</enum><text>In making funds
available under this title, the Secretary shall ensure that the grant awards
total not less than $3,000,000 annually to each State and each Indian tribe
having an approved abandoned mine reclamation program pursuant to section 405
and eligible land and water pursuant to section 404, so long as an allocation
of funds to the State or tribe is necessary to achieve the priorities stated in
paragraphs (1) and (2) of section 403(a).</text>
</subparagraph><subparagraph id="H3D70066811BC4EE6B7B727C5C21CC5CF" indent="up1"><enum>(B)</enum><text>Notwithstanding any other provision
of law, this paragraph applies to the States of Tennessee and
Missouri.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9A041C44BDA34B618992A8CCA3DDDF22"><enum>(d)</enum><header>Transfers of
interest earned by abandoned mine reclamation fund</header><text display-inline="yes-display-inline">Section
402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232)
is amended by striking subsection (h) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H3DC1D7040FBD467FA760EB0709D56E7B" style="OLC">
<subsection id="H119336BE908F4B27AEBB9C9D2CCDCEDB"><enum>(h)</enum><header>Transfers of
interest earned by fund</header>
<paragraph id="HBF72532C81264296A0DB58565D56325"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H6857129F63DE4690A50778DFFBC2F988"><enum>(A)</enum><header>Transfers to
combined benefit fund</header><text>As soon as practicable after the beginning
of fiscal year 2007 and each fiscal year thereafter, and before making any
allocation with respect to the fiscal year under subsection (g), the Secretary
shall use an amount not to exceed the amount of interest that the Secretary
estimates will be earned and paid to the fund during the fiscal year to make
the transfer described in paragraph (2)(A).</text>
</subparagraph><subparagraph id="H19546633CF9A4671AC79075F31AC618D"><enum>(B)</enum><header>Transfers to
1992 and 1993 plans</header><text>As soon as practicable after the beginning of
fiscal year 2008 and each fiscal year thereafter, and before making any
allocation with respect to the fiscal year under subsection (g), the Secretary
shall use an amount not to exceed the amount of interest that the Secretary
estimates will be earned and paid to the fund during the fiscal year (reduced
by the amount used under subparagraph (A)) to make the transfers described in
paragraphs (2)(B) and (2)(C).</text>
</subparagraph></paragraph><paragraph id="H1821F6ACD8D54E4BB857005053E717BB"><enum>(2)</enum><header>Transfers
described</header><text>The transfers referred to in paragraph (1) are the
following:</text>
<subparagraph id="H41A9E33EBBE54C18B43556656EEEBEC"><enum>(A)</enum><header>United mine
workers of america combined benefit fund</header><text>A transfer to the United
Mine Workers of America Combined Benefit Fund equal to the amount that the
trustees of the Combined Benefit Fund estimate will be expended from the fund
for the fiscal year in which the transfer is made, reduced by—</text>
<clause id="H3A9D600646804E3089B90006DFB69FAC"><enum>(i)</enum><text>the amount the
trustees of the Combined Benefit Fund estimate the Combined Benefit Fund will
receive during the fiscal year in—</text>
<subclause id="H6277E3D43B8C4D74AE00BF55F5EFDC25"><enum>(I)</enum><text>required premiums;
and</text>
</subclause><subclause id="H916F62CF591749FAB74C3E33205E1BBB"><enum>(II)</enum><text>payments paid by
Federal agencies in connection with benefits provided by the Combined Benefit
Fund; and</text>
</subclause></clause><clause id="HAE5DE9FA4387484B8DDC9D85B5C8D61"><enum>(ii)</enum><text>the amount the
trustees of the Combined Benefit Fund estimate will be expended during the
fiscal year to provide health benefits to beneficiaries who are unassigned
beneficiaries solely as a result of the application of section 9706(h)(1) of
the Internal Revenue Code of 1986, but only to the extent that such amount does
not exceed the amounts described in subsection (i)(1)(A) that the Secretary
estimates will be available to pay such estimated expenditures.</text>
</clause></subparagraph><subparagraph id="H07BB827C1AEB4041A8ABF0F68336407F"><enum>(B)</enum><header>United mine
workers of America 1992 benefit plan</header><text>A transfer to the United
Mine Workers of America 1992 Benefit Plan, in an amount equal to the difference
between—</text>
<clause id="H7CC915AC0E2C42A3AACEE72C00F8572D"><enum>(i)</enum><text>the amount that
the trustees of the 1992 UMWA Benefit Plan estimate will be expended from the
1992 UMWA Benefit Plan during the next calendar year to provide the benefits
required by the 1992 UMWA Benefit Plan on the date of enactment of this
subparagraph; minus</text>
</clause><clause id="HAC7233E3AA234AA6BDDDED70E0EA2900"><enum>(ii)</enum><text>the amount that
the trustees of the 1992 UMWA Benefit Plan estimate the 1992 UMWA Benefit Plan
will receive during the next calendar year in—</text>
<subclause id="H2927AB42208546819B85FB00A7D8786"><enum>(I)</enum><text>required monthly
per beneficiary premiums, including the amount of any security provided to the
1992 UMWA Benefit Plan that is available for use in the provision of benefits;
and</text>
</subclause><subclause id="H7E10444C805B4096B096152C57DB061B"><enum>(II)</enum><text>payments paid by
Federal agencies in connection with benefits provided by the 1992 UMWA benefit
plan.</text>
</subclause></clause></subparagraph><subparagraph id="HC60F607FC08641EC00F0A644CBD7C9BA"><enum>(C)</enum><header>Multiemployer
health benefit plan</header><text>A transfer to the Multiemployer Health
Benefit Plan established after July 20, 1992, by the parties that are the
settlors of the 1992 UMWA Benefit Plan referred to in subparagraph (B)
(referred to in this subparagraph and subparagraph (D) as <quote>the
Plan</quote>), in an amount equal to the excess (if any) of—</text>
<clause id="H44F01336B23D428383E97713347DDC26"><enum>(i)</enum><text>the amount that
the trustees of the Plan estimate will be expended from the Plan during the
next calendar year, to provide benefits no greater than those provided by the
Plan as of December 31, 2006; over</text>
</clause><clause id="H18DF507FC6E1413DB781D9F571FEE7EC"><enum>(ii)</enum><text>the amount that
the trustees estimated the Plan will receive during the next calendar year in
payments paid by Federal agencies in connection with benefits provided by the
Plan.</text>
</clause><continuation-text continuation-text-level="subparagraph">Such
excess shall be calculated by taking into account only those beneficiaries
actually enrolled in the Plan as of December 31, 2006, who are eligible to
receive benefits under the Plan on the first day of the calendar year for which
the transfer is made.</continuation-text></subparagraph><subparagraph id="HF321DE07A75547A49CEEDDE01011EC7B"><enum>(D)</enum><header>Individuals
considered enrolled</header><text>For purposes of subparagraph (C), any
individual who was eligible to receive benefits from the Plan as of the date of
enactment of this subsection, even though benefits were being provided to the
individual pursuant to a settlement agreement approved by order of a bankruptcy
court entered on or before September 30, 2004, will be considered to be
actually enrolled in the Plan and shall receive benefits from the Plan
beginning on December 31, 2006.</text>
</subparagraph></paragraph><paragraph id="H8858EE4B897C43C28B5ED100E213EE94"><enum>(3)</enum><header>Adjustment</header><text>If,
for any fiscal year, the amount of a transfer under subparagraph (A), (B), or
(C) of paragraph (2) is more or less than the amount required to be transferred
under that subparagraph, the Secretary shall appropriately adjust the amount
transferred under that subparagraph for the next fiscal year.</text>
</paragraph><paragraph id="H0A8B2F8E03BF43578B4C603240A62E67"><enum>(4)</enum><header>Additional
amounts</header>
<subparagraph id="H7BD9C816564F446BB390EBA0D6016F9D"><enum>(A)</enum><header>Previously
credited interest</header><text>Notwithstanding any other provision of law, any
interest credited to the fund that has not previously been transferred to the
Combined Benefit Fund referred to in paragraph (2)(A) under this
section—</text>
<clause id="HFCF9B75F6BBF4E839C4B2F25B0006973"><enum>(i)</enum><text>shall be held in
reserve by the Secretary until such time as necessary to make the payments
under subparagraphs (A) and (B) of subsection (i)(1), as described in clause
(ii); and</text>
</clause><clause id="HB6CDF3F8F8EC4A6A939092C96B8600E3"><enum>(ii)</enum><text>in the event that
the amounts described in subsection (i)(1) are insufficient to make the maximum
payments described in subparagraphs (A) and (B) of subsection (i)(1), shall be
used by the Secretary to supplement the payments so that the maximum amount
permitted under those paragraphs is paid.</text>
</clause></subparagraph><subparagraph id="H8179AFDF70904BEDAE914019EED1ED1C"><enum>(B)</enum><header>Previously
allocated amounts</header><text>All amounts allocated under subsection (g)(2)
before the date of enactment of this subparagraph for the program described in
section 406, but not appropriated before that date, shall be available to the
Secretary to make the transfers described in paragraph (2).</text>
</subparagraph><subparagraph id="H3FE31AF4C08A442300EB1E0FDABB92"><enum>(C)</enum><header>Adequacy of
previously credited interest</header><text>The Secretary shall—</text>
<clause id="H0D0DA484EF3A4392B37CE5ABD1D8FC5D"><enum>(i)</enum><text>consult with the
trustees of the plans described in paragraph (2) at reasonable intervals;
and</text>
</clause><clause id="H697D970A803242B09DEA205D26B006D5"><enum>(ii)</enum><text>notify Congress
if a determination is made that the amounts held in reserve under subparagraph
(A) are insufficient to meet future requirements under subparagraph
(A)(ii).</text>
</clause></subparagraph><subparagraph id="H83B8D1DE9C524B9B98CAFB5EA59DEB32"><enum>(D)</enum><header>Additional
reserve amounts</header><text>In addition to amounts held in reserve under
subparagraph (A), there is authorized to be appropriated such sums as may be
necessary for transfer to the fund to carry out the purposes of subparagraph
(A)(ii).</text>
</subparagraph><subparagraph id="H98566BE6FD834553B88D2D0061846D00"><enum>(E)</enum><header>Inapplicability
of cap</header><text>The limitation described in subsection (i)(3)(A) shall not
apply to payments made from the reserve fund under this paragraph.</text>
</subparagraph></paragraph><paragraph id="H334124252DEA46F3BB2226D0B62754BB"><enum>(5)</enum><header>Limitations</header>
<subparagraph id="H248E86C1A94C4824B76F90083D9B2270"><enum>(A)</enum><header>Availability of
funds for next fiscal year</header><text>The Secretary may make transfers under
subparagraphs (B) and (C) of paragraph (2) for a calendar year only if the
Secretary determines, using actuarial projections provided by the trustees of
the Combined Benefit Fund referred to in paragraph (2)(A), that amounts will be
available under paragraph (1), after the transfer, for the next fiscal year for
making the transfer under paragraph (2)(A).</text>
</subparagraph><subparagraph id="H8286DAE4DFCC4F0582F5BE1211950735"><enum>(B)</enum><header>Rate of
contributions of obligors</header>
<clause id="HFCF2772AC75D477C88913E854E31C9C1"><enum>(i)</enum><header>In
general</header>
<subclause id="H584EE96CCB6844EC9EE06C9228F18B19"><enum>(I)</enum><header>Rate</header><text display-inline="yes-display-inline">A transfer under paragraph (2)(C) shall not
be made for a calendar year unless the persons that are obligated to contribute
to the plan referred to in paragraph (2)(C) on the date of the transfer are
obligated to make the contributions at rates that are no less than those in
effect on the date which is 30 days before the date of enactment of this
subsection.</text>
</subclause><subclause id="H74C74C7A51FF468E9D76F4444727167B"><enum>(II)</enum><header>Application</header><text display-inline="yes-display-inline">The contributions described in subclause
(I) shall be applied first to the provision of benefits to those plan
beneficiaries who are not described in paragraph (2)(C)(ii).</text>
</subclause></clause><clause id="H55FB2C9EFB9D446EB0F0F5CE078C194B"><enum>(ii)</enum><header>Initial
contributions</header>
<subclause id="H4C2BEA437A8D406C94D8934206EE2F6"><enum>(I)</enum><header>In
general</header><text display-inline="yes-display-inline">From the date of
enactment of the Surface Mining Control and Reclamation Act Amendments of 2006
through December 31, 2010, the persons that, on the date of enactment of that
Act, are obligated to contribute to the plan referred to in paragraph (2)(C)
shall be obligated, collectively, to make contributions equal to the amount
described in paragraph (2)(C), less the amount actually transferred due to the
operation of subparagraph (C).</text>
</subclause><subclause id="HCD18104C74304789B145ADF962D4643D"><enum>(II)</enum><header>First calendar
year</header><text>Calendar year 2006 is the first calendar year for which
contributions are required under this clause.</text>
</subclause><subclause id="HDEF9189DFD65450DA36F007C9583B365"><enum>(III)</enum><header>Amount of
contribution for 2006</header><text>Except as provided in subclause (IV), the
amount described in paragraph (2)(C) for calendar year 2006 shall be calculated
as if paragraph (2)(C) had been in effect during 2005.</text>
</subclause><subclause id="H6560848CC6B241E3B7492F00BCD6EBBA"><enum>(IV)</enum><header>Limitation</header><text>The
contributions required under this clause for calendar year 2006 shall not
exceed the amount necessary for solvency of the plan described in paragraph
(2)(C), measured as of December 31, 2006 and taking into account all assets
held by the plan as of that date.</text>
</subclause></clause><clause id="HEF71CCE2DDD54A63A206366955964E09"><enum>(iii)</enum><header>Division</header><text>The
collective annual contribution obligation required under clause (ii) shall be
divided among the persons subject to the obligation, and applied uniformly,
based on the hours worked for which contributions referred to in clause (i)
would be owed.</text>
</clause></subparagraph><subparagraph id="H4B877062AC7A46579658D3F614F6E7A6"><enum>(C)</enum><header>Phase-in of
transfers</header><text>For each of calendar years 2008 through 2010, the
transfers required under subparagraphs (B) and (C) of paragraph (2) shall equal
the following amounts:</text>
<clause id="H40C37B13346E470891CDBF111400ABDA"><enum>(i)</enum><text>For calendar year
2008, the Secretary shall make transfers equal to 25 percent of the amounts
that would otherwise be required under subparagraphs (B) and (C) of paragraph
(2).</text>
</clause><clause id="HBB45920ED1D5449388E700FC495867CF"><enum>(ii)</enum><text>For calendar year
2009, the Secretary shall make transfers equal to 50 percent of the amounts
that would otherwise be required under subparagraphs (B) and (C) of paragraph
(2).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H64E119BACB694C62BF005513AEA09FD0"><enum>(iii)</enum><text>For calendar
year 2010, the Secretary shall make transfers equal to 75 percent of the
amounts that would otherwise be required under subparagraphs (B) and (C) of
paragraph (2).</text>
</clause></subparagraph></paragraph></subsection><subsection id="H63EF47F617B64DDB91A7AFDF096137CE"><enum>(i)</enum><header>Funding</header>
<paragraph id="HA9A9421EC1374756958F44B81C309D34"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (3), out of any funds in the
Treasury not otherwise appropriated, the Secretary of the Treasury shall
transfer to the plans described in subsection (h)(2) such sums as are necessary
to pay the following amounts:</text>
<subparagraph id="H4A66FA93BC5E4241921BBA17C365BFD8"><enum>(A)</enum><text display-inline="yes-display-inline">To the Combined Fund (as defined in section
9701(a)(5) of the Internal Revenue Code of 1986 and referred to in this
paragraph as the <term>Combined Fund</term>), the amount that the trustees of
the Combined Fund estimate will be expended from premium accounts maintained by
the Combined Fund for the fiscal year to provide benefits for beneficiaries who
are unassigned beneficiaries solely as a result of the application of section
9706(h)(1) of the Internal Revenue Code of 1986, subject to the following
limitations:</text>
<clause id="H3A19EE38B41847EE8D51E7159723CB3F"><enum>(i)</enum><text display-inline="yes-display-inline">For fiscal year 2008, the amount paid under
this subparagraph shall equal—</text>
<subclause id="HBB1EAFF1940A4138AA2808CC7405B521"><enum>(I)</enum><text>the amount
described in subparagraph (A); minus</text>
</subclause><subclause id="HE01D0BC8002F431A00932DBEDA11CE45"><enum>(II)</enum><text>the amounts
required under section 9706(h)(3)(A) of the Internal Revenue Code of
1986.</text>
</subclause></clause><clause id="HD1CC880B5BBF4C9A88006C459DBBDE16"><enum>(ii)</enum><text>For fiscal year
2009, the amount paid under this subparagraph shall equal—</text>
<subclause id="H3156FCF1C98744308E30FF89D6D0015"><enum>(I)</enum><text>the amount
described in subparagraph (A); minus</text>
</subclause><subclause id="H9968034188EA4DA9A564AB320961227E"><enum>(II)</enum><text>the amounts
required under section 9706(h)(3)(B) of the Internal Revenue Code of
1986.</text>
</subclause></clause><clause id="H8A1C2AC132DB4DADB98FED1F6400DCC1"><enum>(iii)</enum><text>For fiscal year
2010, the amount paid under this subparagraph shall equal—</text>
<subclause id="H3C9442C1AE7A434393BDC142CB978B7C"><enum>(I)</enum><text>the amount
described in subparagraph (A); minus</text>
</subclause><subclause id="H16B67F697FE74B1986E64F4F5D51BC1"><enum>(II)</enum><text>the amounts
required under section 9706(h)(3)(C) of the Internal Revenue Code of
1986.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="H5EDEADBF0B1C4B098250586BAEAB363D"><enum>(B)</enum><text>On certification
by the trustees of any plan described in subsection (h)(2) that the amount
available for transfer by the Secretary pursuant to this section (determined
after application of any limitation under subsection (h)(5)) is less than the
amount required to be transferred, to the plan the amount necessary to meet the
requirement of subsection (h)(2).</text>
</subparagraph><subparagraph id="HCFAE75F76CF5400AA1D765C32474FCE1"><enum>(C)</enum><text display-inline="yes-display-inline">To the Combined Fund, $9,000,000 on October
1, 2007, $9,000,000 on October 1, 2008, and $9,000,000 on October 1, 2009
(which amounts shall not be exceeded) to provide a refund of any premium (as
described in section 9704(a) of the Internal Revenue Code of 1986) paid on or
before September 7, 2000, to the Combined Fund, plus interest on the premium
calculated at the rate of 7.5 percent per year, on a proportional basis and to
be paid not later than 60 days after the date on which each payment is received
by the Combined Fund, to those signatory operators (to the extent that the
Combined Fund has not previously returned the premium amounts to the
operators), or any related persons to the operators (as defined in section
9701(c) of the Internal Revenue Code of 1986), or their heirs, successors, or
assigns who have been denied the refunds as the result of final judgments or
settlements if—</text>
<clause id="HDC362AB922E642888688B03051E5A480"><enum>(i)</enum><text display-inline="yes-display-inline">prior to the date of enactment of this
paragraph, the signatory operator (or any related person to the
operator)—</text>
<subclause id="H4EE04EA809EB4DE1A36EF5DA439FCFAC"><enum>(I)</enum><text display-inline="yes-display-inline">had all of its beneficiary assignments made
under section 9706 of the Internal Revenue Code of 1986 voided by the
Commissioner of the Social Security Administration; and</text>
</subclause><subclause id="H3FB15C5A6B654EB2BE60DCF3291B296D"><enum>(II)</enum><text>was subject to a
final judgment or final settlement of litigation adverse to a claim by the
operator that the assignment of beneficiaries under section 9706 of the
Internal Revenue Code of 1986 was unconstitutional as applied to the operator;
and</text>
</subclause></clause><clause id="HDDFF3193B99F4999A1E38263F08BF262"><enum>(ii)</enum><text>on or before
September 7, 2000, the signatory operator (or any related person to the
operator) had paid to the Combined Fund any premium amount that had not been
refunded.</text>
</clause></subparagraph></paragraph><paragraph id="HD4FA14A990B04AE18FCEE4436145FF7"><enum>(2)</enum><header>Payments to
States and Indian tribes</header><text>Subject to paragraph (3), out of any
funds in the Treasury not otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary of the Interior for distribution to States and
Indian tribes such sums as are necessary to pay amounts described in paragraphs
(1)(A) and (2)(A) of section 411(h).</text>
</paragraph><paragraph id="HF112C5A416D744219DC19619413E0074"><enum>(3)</enum><header>Limitations</header>
<subparagraph id="H3EACD6A8D9CB4296B168F3C7FC4FD00"><enum>(A)</enum><header>Cap</header><text>The
total amount transferred under this subsection for any fiscal year shall not
exceed $490,000,000.</text>
</subparagraph><subparagraph id="HF348C15E875843538001C95673B40054"><enum>(B)</enum><header>Insufficient
amounts</header><text>In a case in which the amount required to be transferred
without regard to this paragraph exceeds the maximum annual limitation in
subparagraph (A), the Secretary shall adjust the transfers of funds so
that—</text>
<clause id="H60D68AA4755A4D408818FC146A767C2"><enum>(i)</enum><text>each transfer for
the fiscal year is a percentage of the amount described;</text>
</clause><clause id="HBFFDD450CEBA44D8A8FC2DAFC8C5EEEC"><enum>(ii)</enum><text>the amount is
determined without regard to subsection (h)(5)(A); and</text>
</clause><clause id="HFFCA37EF2A484E5F98B7D15D00FB4D9F"><enum>(iii)</enum><text>the percentage
transferred is the same for all transfers made under this subsection for the
fiscal year.</text>
</clause></subparagraph></paragraph><paragraph id="H131162B1086F42D5AAF89C53B16D5EB9"><enum>(4)</enum><header>Availability of
funds</header><text>Funds shall be transferred under paragraph (1) and (2)
beginning in fiscal year 2008 and each fiscal year thereafter, and shall remain
available until
expended.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HAC57BD2E191B4D39B673C47BE65CB300"><enum>313.</enum><header>Objectives of
Fund</header><text display-inline="no-display-inline">Section 403 of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1233) is
amended—</text>
<paragraph id="H8C7AB67DBCCB4930A3AC8C6D6DC7274C"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H3B4A4A8D73C54F7B8664349502E86476"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="H7179FC18AB6F43F5B0E3E3E13C7045E6"><enum>(i)</enum><text>by
striking <quote>(1) the protection</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H85C1E356EAFC46F28BA6DFBA00616D32" style="OLC">
<paragraph id="HCDC199EB1E544075A6A9FA7000008147"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H7D56B85DD86245F084D4BE8CCE25BBD6"><enum>(A)</enum><text>the
protection;</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="H1F42545F3F404CBB890913DDA26492B5"><enum>(ii)</enum><text>in
subparagraph (A) (as designated by clause (i)), by striking <quote>general
welfare,</quote>; and</text>
</clause><clause id="H826F50542E974039ADF376D8754FD46B"><enum>(iii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H63A230D302F74DA984422524FAF25EC" style="OLC">
<subparagraph id="H44E144ACB5B745468635A26572DC6736" indent="up1"><enum>(B)</enum><text>the restoration of land and water
resources and the environment that—</text>
<clause id="H541EF2BE72EB49848CECD801E4821046"><enum>(i)</enum><text>have been degraded by the adverse
effects of coal mining practices; and</text>
</clause><clause id="H2CDC63C6C3044705B0347DD10049C3AD"><enum>(ii)</enum><text>are adjacent to a site that has
been or will be remediated under subparagraph
(A);</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H764EA3AEF1A5498DA44EA424D33E2647"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="H7731FD4F82A04BA7A0FA8CE5AFBCB77"><enum>(i)</enum><text>by
striking <quote>(2) the protection</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H81BCFC2CB7F14462A1703D445BC3E773" style="OLC">
<paragraph id="HF51C00065C7F4E4B82D6BC9D96F67E6E"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HE0E6E8369BA6403A8E949857FEBC8262"><enum>(A)</enum><text>the
protection</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="HAFDF7E950FD043AF8C05CA52B2B74326"><enum>(ii)</enum><text>in
subparagraph (A) (as designated by clause (i), by striking <quote>health,
safety, and general welfare</quote> and inserting <quote>health and
safety</quote>; and</text>
</clause><clause id="H93F6EA1633634C1581D100B1B44F492E"><enum>(iii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H61B31CF28A45438C88000965D9C1D2A4" style="OLC">
<subparagraph id="HD190F343D9D947B29F1C00B4A72FEFB" indent="up1"><enum>(B)</enum><text>the restoration of land and water
resources and the environment that—</text>
<clause id="HBA34168F7CD4460397F557D891ED6769"><enum>(i)</enum><text>have been degraded by the adverse
effects of coal mining practices; and</text>
</clause><clause id="H90B1F01DC91E4154BCE2D5E16E94CDE3"><enum>(ii)</enum><text>are adjacent to a site that has
been or will be remediated under subparagraph (A);
and</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H710B761F42D24182B534A8626662FACE"><enum>(C)</enum><text>in paragraph (3),
by striking the semicolon at the end and inserting a period; and</text>
</subparagraph><subparagraph id="H42E8F7C5D9BC41B4B1BC436E589161A8"><enum>(D)</enum><text>by striking
paragraphs (4) and (5);</text>
</subparagraph></paragraph><paragraph id="HF12AC732668C46AC801809A95D1DB7DC"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="HBE11D75486C8407FA6A4501D76B640A"><enum>(A)</enum><text>by striking the
subsection heading and inserting <quote><header-in-text level="subsection" style="OLC">Water supply restoration</header-in-text>.—</quote>; and</text>
</subparagraph><subparagraph id="HE1B70C94B43E41C28C2DAF17853DB897"><enum>(B)</enum><text>in paragraph (1),
by striking <quote>up to 30 percent of the</quote>; and</text>
</subparagraph></paragraph><paragraph id="H5089A82664D04F4BA4CF7E8B00D2370"><enum>(3)</enum><text>in
the second sentence of subsection (c), by inserting <quote>, subject to the
approval of the Secretary,</quote> after <quote>amendments</quote>.</text>
</paragraph></section><section id="H9437089D47B345C39362E75EA792334C"><enum>314.</enum><header>Reclamation of
rural land</header>
<subsection id="HFB73BF5CBC704007B22631B7AD3FDD04"><enum>(a)</enum><header>Administration</header><text display-inline="yes-display-inline">Section 406(h) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is amended by striking
<quote>Soil Conservation Service</quote> and inserting <quote>Natural Resources
Conservation Service</quote>.</text>
</subsection><subsection id="H5B39909A51CA49BDA1008139A63B5F19"><enum>(b)</enum><header>Authorization of
appropriations for carrying out rural land reclamation</header><text>Section
406 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1236)
is amended by adding at the end the following:</text>
<quoted-block id="H5264CAFDE32A4C60A4E3105969877491" style="OLC">
<subsection id="HB9B6D9DFA3A74DF29026554C282B0118"><enum>(i)</enum><text>There are
authorized to be appropriated to the Secretary of Agriculture, from amounts in
the Treasury other than amounts in the fund, such sums as may be necessary to
carry out this
section.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H4A42070FBA57443AA1AD477DA52772D"><enum>315.</enum><header>Liens</header><text display-inline="no-display-inline">Section 408(a) of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1238) is amended in the last sentence by
striking <quote>who owned the surface prior to May 2, 1977, and</quote>.</text>
</section><section id="H0396BC99E91E420E889F23200044BD6C"><enum>316.</enum><header>Certification</header><text display-inline="no-display-inline">Section 411 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1240a) is amended—</text>
<paragraph id="H3F5D279B505A461D94936CE8E082A6A8"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H5549F604595045BBB2B2C5019B46F102"><enum>(A)</enum><text>by inserting
<quote>(1)</quote> before the first sentence; and</text>
</subparagraph><subparagraph id="H1D04924A8B0F469595F0009DE56CC4B7"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H71FD6226ECE042F6BB337389B2824729" style="OLC">
<paragraph id="H108906F93AE8401AB7F09561C8349943" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H946E1A48FF804EC481B2C9D7FC5C879"><enum>(A)</enum><text>The Secretary may, on the
initiative of the Secretary, make the certification referred to in paragraph
(1) on behalf of any State or Indian tribe referred to in paragraph (1) if on
the basis of the inventory referred to in section 403(c) all reclamation
projects relating to the priorities described in section 403(a) for eligible
land and water pursuant to section 404 in the State or tribe have been
completed.</text>
</subparagraph><subparagraph id="H372EE3BE7B8F4EB3915923007E91B74" indent="up1"><enum>(B)</enum><text>The Secretary shall only make the
certification after notice in the Federal Register and opportunity for public
comment.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H1F10B1CD5B74466C82BE1F840309DE40"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HAFE5A742B3E94531801353DA49C4F3EF" style="OLC">
<subsection id="H7B65C004E00D46BD9EC800F8B47233E9"><enum>(h)</enum><header>Payments to
States and Indian tribes</header>
<paragraph id="HC1AF84C0E2484733AA4FEE006388A166"><enum>(1)</enum><header>In
general</header>
<subparagraph id="H470E2E775F4B450D8488E507D646879D"><enum>(A)</enum><header>Payments</header>
<clause id="HDCC07559D5534073A63C585FC2A14059"><enum>(i)</enum><header>In
general</header><text>Notwithstanding section 401(f)(3)(B), from funds referred
to in section 402(i)(2), the Secretary shall make payments to States or Indian
tribes for the amount due for the aggregate unappropriated amount allocated to
the State or Indian tribe under subparagraph (A) or (B) of section
402(g)(1).</text>
</clause><clause id="H9D086308200246418DC501ACDFA091E"><enum>(ii)</enum><header>Conversion as
equivalent payments</header><text>Amounts allocated under subparagraphs (A) or
(B) of section 402(g)(1) shall be reallocated to the allocation established in
section 402(g)(5) in amounts equivalent to payments made to States or Indian
tribes under this paragraph.</text>
</clause></subparagraph><subparagraph id="HE6848B49AB4E456A97787084F3E6A043"><enum>(B)</enum><header>Amount
due</header><text>In this paragraph, the term <term>amount due</term> means the
unappropriated amount allocated to a State or Indian tribe before October 1,
2007, under subparagraph (A) or (B) of section 402(g)(1).</text>
</subparagraph><subparagraph id="HF102F289E8CF4697A3AF94AF945FCB50"><enum>(C)</enum><header>Schedule</header><text>Payments
under subparagraph (A) shall be made in 7 equal annual installments, beginning
with fiscal year 2008.</text>
</subparagraph><subparagraph id="H0D6D0190DFA644278FBD14DC36F53FB"><enum>(D)</enum><header>Use of
funds</header>
<clause id="H6006C230416140C6A3762E996DCDEE27"><enum>(i)</enum><header>Certified states
and indian tribes</header><text>A State or Indian tribe that makes a
certification under subsection (a) in which the Secretary concurs shall use any
amounts provided under this paragraph for the purposes established by the State
legislature or tribal council of the Indian tribe, with priority given for
addressing the impacts of mineral development.</text>
</clause><clause id="H363EF7CDF316453983B10011E082F0F7"><enum>(ii)</enum><header>Uncertified
States and Indian tribes</header><text>A State or Indian tribe that has not
made a certification under subsection (a) in which the Secretary has concurred
shall use any amounts provided under this paragraph for the purposes described
in section 403.</text>
</clause></subparagraph></paragraph><paragraph id="H90C1E5608B944936A989CA9B3739ECCB"><enum>(2)</enum><header>Subsequent State
and Indian tribe share for certified States and Indian tribes</header>
<subparagraph display-inline="no-display-inline" id="H798C4ED11E104CE6B79BC5D301621305"><enum>(A)</enum><header>In
general</header><text>Notwithstanding section 401(f)(3)(B), from funds referred
to in section 402(i)(2), the Secretary shall pay to each certified State or
Indian tribe an amount equal to the sum of the aggregate unappropriated amount
allocated on or after October 1, 2007, to the certified State or Indian tribe
under subparagraph (A) or (B) of section 402(g)(1).</text>
</subparagraph><subparagraph id="HEB5AD747839F42D29526E9CF4A71CB6"><enum>(B)</enum><header>Certified State
or Indian tribe defined</header><text>In this paragraph the term
<term>certified State or Indian tribe</term> means a State or Indian tribe for
which a certification is made under subsection (a) in which the Secretary
concurs.</text>
</subparagraph></paragraph><paragraph id="HFC9FBEFF335E4339BDB174FD9003E2B"><enum>(3)</enum><header>Manner of
payment</header>
<subparagraph id="H74D4BB2131134CFFA24FF690850097E3"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Subject to
subparagraph (B), payments to States or Indian tribes under this subsection
shall be made without regard to any limitation in section 401(d) and
concurrently with payments to States under that section.</text>
</subparagraph><subparagraph id="H1DD355AC63454D2C8C32397CA3014C27"><enum>(B)</enum><header>Initial
payments</header><text>The first 3 payments made to any State or Indian tribe
shall be reduced to 25 percent, 50 percent, and 75 percent, respectively, of
the amounts otherwise required under paragraph (2)(A).</text>
</subparagraph><subparagraph id="HC2FE391189384FA78585F547807B79D2"><enum>(C)</enum><header>Installments</header><text>Amounts
withheld from the first 3 annual installments as provided under subparagraph
(B) shall be paid in 2 equal annual installments beginning with fiscal year
2018.</text>
</subparagraph></paragraph><paragraph id="HCD97FC0991A34AF5A64CE1CAB0D4BE54"><enum>(4)</enum><header>Reallocation</header>
<subparagraph id="H6A1ACDAD29CE49B7881352E1666DB9E0"><enum>(A)</enum><header>In
general</header><text>The amount allocated to any State or Indian tribe under
subparagraph (A) or (B) of section 402(g)(1) that is paid to the State or
Indian tribe as a result of a payment under paragraph (1) or (2) shall be
reallocated and available for grants under section 402(g)(5).</text>
</subparagraph><subparagraph id="H854F26E8F60F45C9934F19D11D7B00CC"><enum>(B)</enum><header>Allocation</header><text>The
grants shall be allocated based on the amount of coal historically produced
before August 3, 1977, in the same manner as under section
402(g)(5).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H83C97AE18C1E4C5A939C1FEE004C707F"><enum>317.</enum><header>Remining
incentives</header><text display-inline="no-display-inline">Title IV of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1231 et seq.) is
amended by adding at the following:</text>
<quoted-block display-inline="no-display-inline" id="H15D7D7A40A9846AB8DCB580059C829AC" style="OLC">
<section id="HADFD21599F0B497F9D0581B464D3C827"><enum>415.</enum><header>Remining
incentives</header>
<subsection id="HC62CB6081B6042F097FC9800876D1627"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this Act, the Secretary may, after opportunity for public
comment, promulgate regulations that describe conditions under which amounts in
the fund may be used to provide incentives to promote remining of eligible land
under section 404 in a manner that leverages the use of amounts from the fund
to achieve more reclamation with respect to the eligible land than would be
achieved without the incentives.</text>
</subsection><subsection id="H1773967123CD4E9784C0B76548B7CCDB"><enum>(b)</enum><header>Requirements</header><text>Any
regulations promulgated under subsection (a) shall specify that the incentives
shall apply only if the Secretary determines, with the concurrence of the State
regulatory authority referred to in title V, that, without the incentives, the
eligible land would not be likely to be remined and reclaimed.</text>
</subsection><subsection id="H1AD285FE1B444A478589BD0456014F10"><enum>(c)</enum><header>Incentives</header>
<paragraph id="H5F68531B05244A6795CD6300DED8CEFB"><enum>(1)</enum><header>In
general</header><text>Incentives that may be considered for inclusion in the
regulations promulgated under subsection (a) include, but are not limited
to—</text>
<subparagraph id="H767716D284534B288E6CECF7C1CFABAD"><enum>(A)</enum><text>a rebate or waiver
of the reclamation fees required under section 402(a); and</text>
</subparagraph><subparagraph id="HF35ADFC0B9D94451B85C8508E9757640"><enum>(B)</enum><text>the use of amounts
in the fund to provide financial assurance for remining operations in lieu of
all or a portion of the performance bonds required under section 509.</text>
</subparagraph></paragraph><paragraph id="HFAADCB30F5AB448E82D9D46049176D20"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="H622799C45223472D8BB8EFA5CD5E3F19"><enum>(A)</enum><header>Use</header><text>A
rebate or waiver under paragraph (1)(A) shall be used only for operations
that—</text>
<clause id="H4C2450012B454B32B4A596A6F755AB95"><enum>(i)</enum><text>remove or
reprocess abandoned coal mine waste; or</text>
</clause><clause id="HFCC89D7B963F41D18FF66C1B66E8DB9B"><enum>(ii)</enum><text>conduct remining
activities that meet the priorities specified in paragraph (1) or (2) of
section 403(a).</text>
</clause></subparagraph><subparagraph id="H87EC8D5981EC45A8B3BA9825E400E307"><enum>(B)</enum><header>Amount</header><text>The
amount of a rebate or waiver provided as an incentive under paragraph (1)(A) to
remine or reclaim eligible land shall not exceed the estimated cost of
reclaiming the eligible land under this
section.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFB03BF9C3C244558956F9971FCEC714E"><enum>318.</enum><header>Extension of
limitation on application of prohibition on issuance of permit</header><text display-inline="no-display-inline">Section 510(e) of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1260(e)) is amended by striking the last
sentence.</text>
</section><section id="H9707A3A9861F49C200DE521568290000"><enum>319.</enum><header>Tribal
regulation of surface coal mining and reclamation operations</header>
<subsection id="H1731C62F9599460A9345D39913DB6FF3"><enum>(a)</enum><header>In
general</header><text>Section 710 of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1300) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H296A3598D3364E619CB16CC4F17142F6" style="OLC">
<subsection id="H587711A1372D41EA81AE5600A3A67505"><enum>(j)</enum><header>Tribal
regulatory authority</header>
<paragraph id="H2A51D41F46584E54A668EC47EFAFD5DB"><enum>(1)</enum><header>Tribal
regulatory programs</header>
<subparagraph id="HEB7C1BD9FEBC42AB00D324C6B4D36353"><enum>(A)</enum><header>In
general</header><text>Notwithstanding any other provision of law, an Indian
tribe may apply for, and obtain the approval of, a tribal program under section
503 regulating in whole or in part surface coal mining and reclamation
operations on reservation land under the jurisdiction of the Indian tribe using
the procedures of section 504(e).</text>
</subparagraph><subparagraph id="HB4362A68B9B9440DA399642F0054B962"><enum>(B)</enum><header>References to
State</header><text>For purposes of this subsection and the implementation and
administration of a tribal program under title V, any reference to a
<quote>State</quote> in this Act shall be considered to be a reference to a
<quote>tribe</quote>.</text>
</subparagraph></paragraph><paragraph id="H0B81CC4241B44E3CA848ED6DB5D4BCC"><enum>(2)</enum><header>Conflicts of
interest</header>
<subparagraph id="H67A0A3D51A0E4E069E17E5F661A24133"><enum>(A)</enum><header>In
general</header><text>The fact that an individual is a member of an Indian
tribe does not in itself constitute a violation of section 201(f).</text>
</subparagraph><subparagraph id="H41131832E3254A2080BA25446FB5885"><enum>(B)</enum><header>Employees of
tribal regulatory authority</header><text>Any employee of a tribal regulatory
authority shall not be eligible for a per capita distribution of any proceeds
from coal mining operations conducted on Indian reservation lands under this
Act.</text>
</subparagraph></paragraph><paragraph id="HBFA9C1DDA4ED416D903C8BDD1FDDF08D"><enum>(3)</enum><header>Sovereign
immunity</header><text>To receive primary regulatory authority under section
504(e), an Indian tribe shall waive sovereign immunity for purposes of section
520 and paragraph (4).</text>
</paragraph><paragraph id="H77609D879C7D43E4B089B20479604194"><enum>(4)</enum><header>Judicial
review</header>
<subparagraph id="H302BD20AFEEB4356A57FEEFB46157DC"><enum>(A)</enum><header>Civil
actions</header>
<clause id="H7444B63EE6054603B6DD755D14F26900"><enum>(i)</enum><header>In
general</header><text>After exhausting all tribal remedies with respect to a
civil action arising under a tribal program approved under section 504(e), an
interested party may file a petition for judicial review of the civil action in
the United States circuit court for the circuit in which the surface coal
mining operation named in the petition is located.</text>
</clause><clause id="H92D908F23F0B40DF8DFBFF4CC5DB54"><enum>(ii)</enum><header>Scope of
review</header>
<subclause id="HB7CCD4086F8C47E0BF1ED906985E4F55"><enum>(I)</enum><header>Questions of
law</header><text>The United States circuit court shall review de novo any
questions of law under clause (i).</text>
</subclause><subclause id="H2F52A1A43C784657BEA327AB3B44B08"><enum>(II)</enum><header>Findings of
fact</header><text>The United States circuit court shall review findings of
fact under clause (i) using a clearly erroneous standard.</text>
</subclause></clause></subparagraph><subparagraph id="H64FA8409A8D94CE1B2A8A63F00CD83A7"><enum>(B)</enum><header>Criminal
actions</header><text>Any criminal action brought under section 518 with
respect to surface coal mining or reclamation operations on Indian reservation
lands shall be brought in—</text>
<clause id="H5CE890DFA8FE47CC98350709E6C13700"><enum>(i)</enum><text>the United States
District Court for the District of Columbia; or</text>
</clause><clause id="HD20FB0CCFD1341EF832DACA5BA2F16E1"><enum>(ii)</enum><text>the United States
district court in which the criminal activity is alleged to have
occurred.</text>
</clause></subparagraph></paragraph><paragraph id="H144C9A6EE951457A9C33A011B71FF789"><enum>(5)</enum><header>Grants</header>
<subparagraph id="HF722B69F7D59436E8640AB9B38BBBFD8"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), grants for
developing, administering, and enforcing tribal programs approved in accordance
with section 504(e) shall be provided to an Indian tribe in accordance with
section 705.</text>
</subparagraph><subparagraph id="H724CD6C9CC194039A754CAAC288E6BC"><enum>(B)</enum><header>Exception</header><text>Notwithstanding
subparagraph (A), the Federal share of the costs of developing, administering,
and enforcing an approved tribal program shall be 100 percent.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H42750C0F48F04644A86539ED7BD8B571"><enum>(6)</enum><header>Report</header><text>Not
later than 18 months after the date on which a tribal program is approved under
subsection (e) of section 504, the Secretary shall submit to the appropriate
committees of Congress a report, developed in cooperation with the applicable
Indian tribe, on the tribal program that includes a recommendation of the
Secretary on whether primary regulatory authority under that subsection should
be expanded to include additional Indian
lands.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2E5F90DA0E384EA18EF2B3C77EDF1055"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 710(i) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1300(i)) is amended in the first sentence by
striking <quote>, except</quote> and all that follows through <quote>section
503</quote>.</text>
</subsection></section></subtitle><subtitle id="HE4BE706BA949459193E25CDED6347DFA"><enum>B</enum><header>Coal Industry
Retiree Health Benefit Act </header>
<section id="H7161ED546B4C4814B9C57BEC6B4101DF"><enum>321.</enum><header>Certain related
persons and successors in interest relieved of liability if premiums
prepaid</header>
<subsection id="H0A069A4A5AC34232BFBB3943131BA262"><enum>(a)</enum><header>Combined Benefit
Fund</header>
<paragraph id="HD86C1D78F5574442A1B4D409BAE9598E"><enum>(1)</enum><header>In
general</header><text>Section 9704 of the Internal Revenue Code of 1986
(relating to liability of assigned operators) is amended by adding at the end
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H7DA04B49672A426B9CEFA832BD708C8F" style="OLC">
<subsection id="H47F7DA232B68487886B3C65BB7DD6F68"><enum>(j)</enum><header>Prepayment of
premium liability</header>
<paragraph id="HA45236F1EF3145DBB28851BCA9A2ABD0"><enum>(1)</enum><header>In
general</header><text>If—</text>
<subparagraph id="H1923DB4811A24209B514CC1806A8FF42"><enum>(A)</enum><text>a payment meeting
the requirements of paragraph (3) is made to the Combined Fund by or on behalf
of—</text>
<clause id="H90924C8051BF4E819500F9966D94BD2D"><enum>(i)</enum><text>any assigned
operator to which this subsection applies, or</text>
</clause><clause id="H18E04FF6528D432B9072F770642368F7"><enum>(ii)</enum><text>any related
person to any assigned operator described in clause (i), and</text>
</clause></subparagraph><subparagraph id="H5657009BAF7C44C3A321D942001E8C27"><enum>(B)</enum><text>the common parent
of the controlled group of corporations described in paragraph (2)(B) is
jointly and severally liable for any premium under this section which (but for
this subsection) would be required to be paid by the assigned operator or
related person,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">then such
common parent (and no other person) shall be liable for such premium.</continuation-text></paragraph><paragraph id="HBB475323FA394DA297FE694E3B32732E"><enum>(2)</enum><header>Assigned
operators to which subsection applies</header>
<subparagraph id="H5388B794BD7745B4BA1E27D1351741F"><enum>(A)</enum><header>In
general</header><text>This subsection shall apply to any assigned operator
if—</text>
<clause id="HFE82231F75544B07B792DAB5724F9F4D"><enum>(i)</enum><text>the assigned
operator (or a related person to the assigned operator)—</text>
<subclause id="H6A8B0A51934A4A6DB0C287B353F8E765"><enum>(I)</enum><text>made contributions
to the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for employment
during the period covered by the 1988 agreement; and</text>
</subclause><subclause id="H721ADFF1129040D1B53970B5007BBCAA"><enum>(II)</enum><text>is not a 1988
agreement operator,</text>
</subclause></clause><clause id="H28ED597FA8CB45BBA8DB1FAF4F1C0387"><enum>(ii)</enum><text>the assigned
operator (and all related persons to the assigned operator) are not actively
engaged in the production of coal as of July 1, 2005, and</text>
</clause><clause id="HE3BD11CA55104DEE94CF81431C40BE82"><enum>(iii)</enum><text>the assigned
operator was, as of July 20, 1992, a member of a controlled group of
corporations described in subparagraph (B).</text>
</clause></subparagraph><subparagraph id="H78E7329715CD4B9FAB77973FC7CA1241"><enum>(B)</enum><header>Controlled group
of corporations</header><text>A controlled group of corporations is described
in this subparagraph if the common parent of such group is a corporation the
shares of which are publicly traded on a United States exchange.</text>
</subparagraph><subparagraph id="H0098C54DE64547518BCFDBF121D6A919"><enum>(C)</enum><header>Coordination
with repeal of assignments</header><text>A person shall not fail to be treated
as an assigned operator to which this subsection applies solely because the
person ceases to be an assigned operator by reason of section 9706(h)(1) if the
person otherwise meets the requirements of this subsection and is liable for
the payment of premiums under section 9706(h)(3).</text>
</subparagraph><subparagraph id="H54433D5C25BE40B781B3BADA4CF72EC"><enum>(D)</enum><header>Controlled
group</header><text>For purposes of this subsection, the term <term>controlled
group of corporations</term> has the meaning given such term by section
52(a).</text>
</subparagraph></paragraph><paragraph id="H0285B80A3F1E4898B571C4A15E58EEC6"><enum>(3)</enum><header>Requirements</header><text>A
payment meets the requirements of this paragraph if—</text>
<subparagraph id="H63C4D174983E47188FFCDF0087BB1F03"><enum>(A)</enum><text>the amount of the
payment is not less than the present value of the total premium liability under
this chapter with respect to the Combined Fund of the assigned operators or
related persons described in paragraph (1) or their assignees, as determined by
the operator's or related person's enrolled actuary (as defined in section
7701(a)(35)) using actuarial methods and assumptions each of which is
reasonable and which are reasonable in the aggregate, as determined by such
enrolled actuary;</text>
</subparagraph><subparagraph id="H89139C73B4524AA39173802322E46A6"><enum>(B)</enum><text>such enrolled
actuary files with the Secretary of Labor a signed actuarial report
containing—</text>
<clause id="HA6693064335B417FB854AD07962E5215"><enum>(i)</enum><text>the date of the
actuarial valuation applicable to the report; and</text>
</clause><clause id="H2FC8548696EC49A68939B9421150C9FC"><enum>(ii)</enum><text>a
statement by the enrolled actuary signing the report that, to the best of the
actuary's knowledge, the report is complete and accurate and that in the
actuary’s opinion the actuarial assumptions used are in the aggregate
reasonably related to the experience of the operator and to reasonable
expectations; and</text>
</clause></subparagraph><subparagraph id="H8D13AAC363614E8EBE4B47E900339659"><enum>(C)</enum><text>90 calendar days
have elapsed after the report required by subparagraph (B) is filed with the
Secretary of Labor, and the Secretary of Labor has not notified the assigned
operator in writing that the requirements of this paragraph have not been
satisfied.</text>
</subparagraph></paragraph><paragraph id="H336B7F8C9FD641219BAC34938922404"><enum>(4)</enum><header>Use of
prepayment</header><text>The Combined Fund shall—</text>
<subparagraph id="HC8378E4AAC374B0B87A76F55F0BA826E"><enum>(A)</enum><text>establish and
maintain an account for each assigned operator or related person by, or on
whose behalf, a payment described in paragraph (3) was made,</text>
</subparagraph><subparagraph id="H66EB535FAF7841E298BE146864E3EF28"><enum>(B)</enum><text>credit such
account with such payment (and any earnings thereon), and</text>
</subparagraph><subparagraph id="H50A5D71E4B5840E19952E8E487674739"><enum>(C)</enum><text>use all amounts in
such account exclusively to pay premiums that would (but for this subsection)
be required to be paid by the assigned operator.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Upon
termination of the obligations for the premium liability of any assigned
operator or related person for which such account is maintained, all funds
remaining in such account (and earnings thereon) shall be refunded to such
person as may be designated by the common parent described in paragraph
(1)(B).</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H16D17A804EF146C08FD39BEE20BC9434"><enum>(b)</enum><header>Individual
employer plans</header><text>Section 9711(c) of the Internal Revenue Code of
1986 (relating to joint and several liability) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H8A55E04DDA334F82B745879FA77CD6B" style="OLC">
<subsection id="H08C871C90F86453CA2CD42BACB2B6179"><enum>(c)</enum><header>Joint and
several liability of related persons</header>
<paragraph id="HCB572C56641C4B14BD14CBBBA832AD73"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), each related person
of a last signatory operator to which subsection (a) or (b) applies shall be
jointly and severally liable with the last signatory operator for the provision
of health care coverage described in subsection (a) or (b).</text>
</paragraph><paragraph id="H077323CFAC8940D6AED400D63C7840C8"><enum>(2)</enum><header>Liability
limited if security provided</header><text>If—</text>
<subparagraph id="HEFE79CAA00FF47F2A200BB9F96929CBB"><enum>(A)</enum><text>security meeting
the requirements of paragraph (3) is provided by or on behalf of—</text>
<clause id="HB671CCC7B12B49A5A07D87BE4502F01F"><enum>(i)</enum><text>any last signatory
operator which is an assigned operator described in section 9704(j)(2),
or</text>
</clause><clause id="HF01A85B1338549A78CA8B300052BCBF"><enum>(ii)</enum><text>any related person
to any last signatory operator described in clause (i), and</text>
</clause></subparagraph><subparagraph id="H701C4D2E04A349F68BE8A3F537C70180"><enum>(B)</enum><text>the common parent
of the controlled group of corporations described in section 9704(j)(2)(B) is
jointly and severally liable for the provision of health care under this
section which, but for this paragraph, would be required to be provided by the
last signatory operator or related person,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">then, as
of the date the security is provided, such common parent (and no other person)
shall be liable for the provision of health care under this section which the
last signatory operator or related person would otherwise be required to
provide. Security may be provided under this paragraph without regard to
whether a payment was made under section 9704(j).</continuation-text></paragraph><paragraph id="H3CF52A818C654AA08600C889C69F0126"><enum>(3)</enum><header>Security</header><text>Security
meets the requirements of this paragraph if—</text>
<subparagraph id="H45DC143091A2434E97D11CDD1FF07852"><enum>(A)</enum><text>the
security—</text>
<clause id="HF8C6665D0FAF45B2913BC3D51F167E8C"><enum>(i)</enum><text>is
in the form of a bond, letter of credit, or cash escrow,</text>
</clause><clause id="HDD63CB0DDA824BF996506BFB95991FDB"><enum>(ii)</enum><text>is provided to
the trustees of the 1992 UMWA Benefit Plan solely for the purpose of paying
premiums for beneficiaries who would be described in section 9712(b)(2)(B) if
the requirements of this section were not met by the last signatory operator,
and</text>
</clause><clause id="HA9F79903F8554E8DA673AA589367C69B"><enum>(iii)</enum><text>is in an amount
equal to 1 year of liability of the last signatory operator under this section,
determined by using the average cost of such operator's liability during the
prior 3 calendar years;</text>
</clause></subparagraph><subparagraph id="H33561CEC6E064A95A9E0A809E702606"><enum>(B)</enum><text>the security is in
addition to any other security required under any other provision of this
title; and</text>
</subparagraph><subparagraph id="H6A930113D6A84A50A4AB06DDAAA3C97F"><enum>(C)</enum><text>the security
remains in place for 5 years.</text>
</subparagraph></paragraph><paragraph id="H3FCB614CF3B04533B984FEC66484A88C"><enum>(4)</enum><header>Refunds of
security</header><text>The remaining amount of any security provided under this
subsection (and earnings thereon) shall be refunded to the last signatory
operator as of the earlier of—</text>
<subparagraph id="HEA6D1CDB969F4D51A1D538019CEE1BD1"><enum>(A)</enum><text>the termination of
the obligations of the last signatory operator under this section, or</text>
</subparagraph><subparagraph id="HA04CFE459C454CADAA28A65145934CDD"><enum>(B)</enum><text>the end of the
5-year period described in paragraph
(4)(C).</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9012A9A868064F69AF07DD911DB8DCF1"><enum>(c)</enum><header>1992 UMWA
Benefit Plan</header><text>Section 9712(d)(4) of the Internal Revenue Code of
1986 (relating to joint and several liability) is amended by adding at the end
the following new sentence: <quote>The provisions of section 9711(c)(2) shall
apply to any last signatory operator described in such section (without regard
to whether security is provided under such section, a payment is made under
section 9704(j), or both) and if security meeting the requirements of section
9711(c)(3) is provided, the common parent described in section 9711(c)(2)(B)
shall be exclusively responsible for any liability for premiums under this
section which, but for this sentence, would be required to be paid by the last
signatory operator or any related person.</quote>.</text>
</subsection><subsection id="H023282F0EB82473EAC00B3B09DA4FC9C"><enum>(d)</enum><header>Successor in
interest</header><text>Section 9701(c) of the Internal Revenue Code of 1986
(relating to terms relating to operators) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HC2EF6D7F15634BF99D80B4D1289F04C4" style="OLC">
<paragraph id="H7153B33EC98E4B4FA1222234BE1E9E70"><enum>(8)</enum><header>Successor in
interest</header>
<subparagraph id="H1FCB1E4FDFC642C792E315758FD31B94"><enum>(A)</enum><header>Safe
harbor</header><text>The term <term>successor in interest</term> shall not
include any person who—</text>
<clause id="HB23DAB1CF555466D816E04A73F6F9020"><enum>(i)</enum><text>is
an unrelated person to an eligible seller described in subparagraph (C);
and</text>
</clause><clause id="HACF9848C9B4A4E33BD43838C2550D9F8"><enum>(ii)</enum><text>purchases for
fair market value assets, or all of the stock, of a related person to such
seller, in a bona fide, arm's-length sale.</text>
</clause></subparagraph><subparagraph id="H8EEDEF9552034864A82EE2D8CE62DB00"><enum>(B)</enum><header>Unrelated
person</header><text>The term <term>unrelated person</term> means a purchaser
who does not bear a relationship to the eligible seller described in section
267(b).</text>
</subparagraph><subparagraph id="HF3C9C3816F5E4F819F9F18652D114EFF"><enum>(C)</enum><header>Eligible
seller</header><text>For purposes of this paragraph, the term <term>eligible
seller</term> means an assigned operator described in section 9704(j)(2) or a
related person to such assigned
operator.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H68D8842631594AA79760581FA4542282"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act, except that the amendment made by subsection
(d) shall apply to transactions after the date of the enactment of this
Act.</text>
</subsection></section><section id="H1C351A09F636423283A3005E4141132B"><enum>322.</enum><header>Transfers to
funds; premium relief</header>
<subsection id="H8CA4E0693ABC4020982DBBF1A4907831"><enum>(a)</enum><header>Combined
Fund</header>
<paragraph id="H2658E79B428745969326FECF3EE000E3"><enum>(1)</enum><header>Federal
transfers</header><text>Section 9705(b) of the Internal Revenue Code of 1986
(relating to transfers from Abandoned Mine Reclamation Fund) is amended—</text>
<subparagraph id="H7872E49A8854412C88892DAB7449EC7"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>section 402(h)</quote> and inserting <quote>subsections (h)
and (i) of section 402</quote>;</text>
</subparagraph><subparagraph id="H51587C9F029D4BC98521382E21FF7D57"><enum>(B)</enum><text>by striking
paragraph (2) and inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H17C0430D563A46EEA7CB9FC0A312C3C9" style="OLC">
<paragraph id="H9B69EC202D7446418E90D44DD1F5C3F3"><enum>(2)</enum><header>Use of
funds</header><text>Any amount transferred under paragraph (1) for any fiscal
year shall be used to pay benefits and administrative costs of beneficiaries of
the Combined Fund or for such other purposes as are specifically provided in
the Acts described in paragraph (1).</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H2F573DFD8DCB4A6FA1463B268342EA47"><enum>(C)</enum><text>by striking
<quote><header-in-text level="subsection" style="OLC">From Abandoned Mine
Reclamation Fund</header-in-text></quote>.</text>
</subparagraph></paragraph><paragraph id="HFED3DD08BC224A96BB14B7D3DA5200C8"><enum>(2)</enum><header>Modifications of
premiums to reflect Federal transfers</header>
<subparagraph id="H853EF1CD60A44BE697059302ACF17D"><enum>(A)</enum><header>Elimination of
unassigned beneficiaries premium</header><text>Section 9704(d) of such Code
(establishing unassigned beneficiaries premium) is amended to read as
follows:</text>
<quoted-block id="H2FBCD1344AB6467CA4005F78C6CB5C4B">
<subsection id="H165A009850114015AAC429AC00B0C4D0"><enum>(d)</enum><header>Unassigned
beneficiaries premium</header>
<paragraph id="HA8B420C2F71F458B870008DEF9CAE001"><enum>(1)</enum><header>Plan years
ending on or before September 30, 2006</header><text>For plan years ending on
or before September 30, 2006, the unassigned beneficiaries premium for any
assigned operator shall be equal to the applicable percentage of the product of
the per beneficiary premium for the plan year multiplied by the number of
eligible beneficiaries who are not assigned under section 9706 to any person
for such plan year.</text>
</paragraph><paragraph id="HA1D3D77EC65943E786DA878763FCE1F9"><enum>(2)</enum><header>Plan years
beginning on or after October 1, 2006</header>
<subparagraph id="HDAA84A540DFD4A5387E6582CF51A0A5"><enum>(A)</enum><header>In
general</header><text>For plan years beginning on or after October 1, 2006,
subject to subparagraph (B), there shall be no unassigned beneficiaries
premium, and benefit costs with respect to eligible beneficiaries who are not
assigned under section 9706 to any person for any such plan year shall be paid
from amounts transferred under section 9705(b).</text>
</subparagraph><subparagraph id="H697FB59B5AB744F7B9C5BFEF9272FC43"><enum>(B)</enum><header>Inadequate
transfers</header><text>If, for any plan year beginning on or after October 1,
2006, the amounts transferred under section 9705(b) are less than the amounts
required to be transferred to the Combined Fund under subsection (h)(2)(A) or
(i) of section 402 of the Surface Mining Control and Reclamation Act of 1977
(30 U.S.C. 1232)), then the unassigned beneficiaries premium for any assigned
operator shall be equal to the operator's applicable percentage of the amount
required to be so transferred which was not so
transferred.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H86CA87B5D76844C280094B80DF38BFFA"><enum>(B)</enum><header>Premium
accounts</header>
<clause id="HCDDA43B89A53427694CF7BA45B72D2B3"><enum>(i)</enum><header>Crediting of
accounts</header><text>Section 9704(e)(1) of such Code (relating to premium
accounts; adjustments) is amended by inserting <quote>and amounts transferred
under section 9705(b)</quote> after <quote>premiums received</quote>.</text>
</clause><clause id="H80E1C0EA8FCE4B2DA6FFC75EA061F229"><enum>(ii)</enum><header>Surpluses
attributable to public funding</header><text>Section 9704(e)(3)(A) of such Code
is amended by adding at the end the following new sentence: <quote>Amounts
credited to an account from amounts transferred under section 9705(b) shall not
be taken into account in determining whether there is a surplus in the account
for purposes of this paragraph.</quote></text>
</clause></subparagraph><subparagraph id="H7CC26B0F0E5048D787C9A366B52E17C1"><enum>(C)</enum><header>Applicable
percentage</header><text>Section 9704(f)(2) of such Code (relating to annual
adjustments) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H44EAB01DBC7C42D680304DA5D2D35174" style="OLC">
<subparagraph id="H16C8DC76B0A54D46B06F37EE916CE9F0"><enum>(C)</enum><text>In the case of
plan years beginning on or after October 1, 2007, the total number of assigned
eligible beneficiaries shall be reduced by the eligible beneficiaries whose
assignments have been revoked under section
9706(h).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H883CB61C96E44AE1A871F778C25F597C"><enum>(3)</enum><header>Assignments and
reassignment</header><text>Section 9706 of the Internal Revenue Code of 1986
(relating to assignment of eligible beneficiaries) is amended by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H57A432E413884DEEBB6D8E57A43F55E1" style="OLC">
<subsection id="H6EE66BEFD1CC4DE68806B763E361DC3E"><enum>(h)</enum><header>Assignments as
of October 1, 2007</header>
<paragraph id="H1344C43BA9334084A0EFCAA338AB7400"><enum>(1)</enum><header>In
general</header><text>Subject to the premium obligation set forth in paragraph
(3), the Commissioner of Social Security shall—</text>
<subparagraph id="HF30769A822CF443E005837B74CD97DCE"><enum>(A)</enum><text>revoke all
assignments to persons other than 1988 agreement operators for purposes of
assessing premiums for plan years beginning on and after October 1, 2007;
and</text>
</subparagraph><subparagraph id="HCC45AC726ADB4F0800F017B7F9213B8E"><enum>(B)</enum><text>make no further
assignments to persons other than 1988 agreement operators, except that no
individual who becomes an unassigned beneficiary by reason of subparagraph (A)
may be assigned to a 1988 agreement operator.</text>
</subparagraph></paragraph><paragraph id="H64896EBEF5914C68A4BBD5146D006811"><enum>(2)</enum><header>Reassignment
upon purchase</header><text>This subsection shall not be construed to prohibit
the reassignment under subsection (b)(2) of an eligible beneficiary.</text>
</paragraph><paragraph id="HC11058C9840C468787898311E973B3E0"><enum>(3)</enum><header>Liability of
persons during three fiscal years beginning on and after October 1,
2007</header><text>In the case of each of the fiscal years beginning on October
1, 2007, 2008, and 2009, each person other than a 1988 agreement operator shall
pay to the Combined Fund the following percentage of the amount of annual
premiums that such person would otherwise be required to pay under section
9704(a), determined on the basis of assignments in effect without regard to the
revocation of assignments under paragraph (1)(A):</text>
<subparagraph id="HF85A444D092447E28327604C2C986BCD"><enum>(A)</enum><text>For the fiscal
year beginning on October 1, 2007, 55 percent.</text>
</subparagraph><subparagraph id="HA33F80CB1CA94FAAA2DE7EEE2B61D400"><enum>(B)</enum><text>For the fiscal
year beginning on October 1, 2008, 40 percent.</text>
</subparagraph><subparagraph id="H5DBCBC6B6F3C4C9FAB3B00714F633139"><enum>(C)</enum><text>For the fiscal
year beginning on October 1, 2009, 15
percent.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HBF8812BFF8054C058C60E65BD9D12071"><enum>(4)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to plan
years of the Combined Fund beginning after September 30, 2006.</text>
</paragraph></subsection><subsection id="H9CC1DB7881A640BA9530680941B5629E"><enum>(b)</enum><header>1992 UMWA
Benefit and other plans</header>
<paragraph id="H2BEDD3B561544818AA7FF17D61BED4F"><enum>(1)</enum><header>Transfers to
plans</header><text>Section 9712(a) of the Internal Revenue Code of 1986
(relating to the establishment and coverage of the 1992 UMWA Benefit Plan) is
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H49FC83A3B37A4CA0004002EF59BC22C0" style="OLC">
<paragraph id="HA698DD20E4414BF389DA7B38B7A64E54"><enum>(3)</enum><header>Transfers under
other Federal statutes</header>
<subparagraph id="H650A8BA509C74C61948CC15BD754E500"><enum>(A)</enum><header>In
general</header><text>The 1992 UMWA Benefit Plan shall include any amount
transferred to the plan under subsections (h) and (i) of section 402 of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232).</text>
</subparagraph><subparagraph id="HAC8DACA50971421EADD9931DE93BDB2"><enum>(B)</enum><header>Use of
funds</header><text>Any amount transferred under subparagraph (A) for any
fiscal year shall be used to provide the health benefits described in
subsection (c) with respect to any beneficiary for whom no monthly per
beneficiary premium is paid pursuant to paragraph (1)(A) or (3) of subsection
(d).</text>
</subparagraph></paragraph><paragraph id="H608F29D99B724B1B995EA412A6B24668"><enum>(4)</enum><header>Special rule for
1993 plan</header>
<subparagraph id="HA7B85D3D28E24FD99703F69007BCBB"><enum>(A)</enum><header>In
general</header><text>The plan described in section 402(h)(2)(C) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(C)) shall
include any amount transferred to the plan under subsections (h) and (i) of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232).</text>
</subparagraph><subparagraph id="HC7D424DF4006445DAE149C0051B0D700"><enum>(B)</enum><header>Use of
funds</header><text>Any amount transferred under subparagraph (A) for any
fiscal year shall be used to provide the health benefits described in section
402(h)(2)(C)(i) of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232(h)(2)(C)(i)) to individuals described in section 402(h)(2)(C) of
such Act (30 U.S.C.
1232(h)(2)(C)).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9685443DAAE64D27BBDC4620FD96794B"><enum>(2)</enum><header>Premium
adjustments</header>
<subparagraph id="H445A4DB555E64C9E83CD71CB3F92971E"><enum>(A)</enum><header>In
general</header><text>Section 9712(d)(1) of such Code (relating to guarantee of
benefits) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HBA4A63490E324754A26201F9BFD4006C" style="OLC">
<paragraph id="H05C4911680764D8FAD2CF87783A88437"><enum>(1)</enum><header>In
general</header><text>All 1988 last signatory operators shall be responsible
for financing the benefits described in subsection (c) by meeting the following
requirements in accordance with the contribution requirements established in
the 1992 UMWA Benefit Plan:</text>
<subparagraph id="H6D2B7B8409B547DB94205DAA959C55E"><enum>(A)</enum><text>The payment of a
monthly per beneficiary premium by each 1988 last signatory operator for each
eligible beneficiary of such operator who is described in subsection (b)(2) and
who is receiving benefits under the 1992 UMWA benefit plan.</text>
</subparagraph><subparagraph id="H4AD1D842C3FD42E8B3F061051914A200"><enum>(B)</enum><text>The provision of a
security (in the form of a bond, letter of credit, or cash escrow) in an amount
equal to a portion of the projected future cost to the 1992 UMWA Benefit Plan
of providing health benefits for eligible and potentially eligible
beneficiaries attributable to the 1988 last signatory operator.</text>
</subparagraph><subparagraph id="HE09AA6702BF64ADD91376D19F19E9CC8"><enum>(C)</enum><text>If the amounts
transferred under subsection (a)(3) are less than the amounts required to be
transferred to the 1992 UMWA Benefit Plan under subsections (h) and (i) of
section 402 of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232), the payment of an additional backstop premium by each 1988 last
signatory operator which is equal to such operator's share of the amounts
required to be so transferred but which were not so transferred, determined on
the basis of the number of eligible and potentially eligible beneficiaries
attributable to the
operator.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H9F21ECD3C3B24858867241D905FA072"><enum>(B)</enum><header>Conforming
amendments</header><text>Section 9712(d) of such Code is amended—</text>
<clause id="HB878D41209854095A802AB82C1834259"><enum>(i)</enum><text>in
paragraph (2)(B), by striking <quote>prefunding</quote> and inserting
<quote>backstop</quote>, and</text>
</clause><clause id="HC3DDB9961EE446C197EE00F72F92B16E"><enum>(ii)</enum><text>in
paragraph (3), by striking <quote>paragraph (1)(B)</quote> and inserting
<quote>paragraph (1) (A)</quote>.</text>
</clause></subparagraph><subparagraph id="HAA4C8A0656474884BD61AE0039636E69"><enum>(C)</enum><header>Effective
date</header><text>The amendments made by this paragraph shall apply to fiscal
years beginning on or after October 1, 2010.</text>
</subparagraph></paragraph></subsection></section><section id="H475D9830EE794AB5B6B098381C1C192B"><enum>323.</enum><header>Other
provisions</header>
<subsection id="H9D842043969F43CEA279590004F6126B"><enum>(a)</enum><header>Board of
trustees</header><text>Section 9702(b) of the Internal Revenue Code of 1986
(relating to board of trustees of the Combined Fund) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H47AE1C7CC10C4C69938F97A4295C22D9" style="OLC">
<subsection id="H44C462FC340941DEBC00AE8457BFF200"><enum>(b)</enum><header>Board of
trustees</header>
<paragraph id="HDA0D84CD5A54434F9C4828D056C548A5"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the board of trustees for
the Combined Fund shall be appointed as follows:</text>
<subparagraph id="HBFB6D977F2FA4E6F8CE424FA74D8FD37"><enum>(A)</enum><text>2 individuals who
represent employers in the coal mining industry shall be designated by the
BCOA;</text>
</subparagraph><subparagraph id="H44D6B9EA2D6746168DF490D3939F2732"><enum>(B)</enum><text>2 individuals
designated by the United Mine Workers of America; and</text>
</subparagraph><subparagraph id="HB7728B5340274E21A958FE632B7C54B5"><enum>(C)</enum><text>3 individuals
selected by the individuals appointed under subparagraphs (A) and (B).</text>
</subparagraph></paragraph><paragraph id="H202BB6F03D3C43BF82C3069E3170B345"><enum>(2)</enum><header>Successor
trustees</header><text>Any successor trustee shall be appointed in the same
manner as the trustee being succeeded. The plan establishing the Combined Fund
shall provide for the removal of trustees.</text>
</paragraph><paragraph id="HE35267E9DE2D497BBC090079161FFB8C"><enum>(3)</enum><header>Special
rule</header><text>If the BCOA ceases to exist, any trustee or successor under
paragraph (1)(A) shall be designated by the 3 employers who were members of the
BCOA on the enactment date and who have been assigned the greatest number of
eligible beneficiaries under section
9706.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5500E213AFB54149A7A01F29BDEC55BE"><enum>(b)</enum><header>Enforcement of
obligations</header>
<paragraph id="H31F1DD13C3954EA284CF8B8DFDF36013"><enum>(1)</enum><header>Failure to pay
premiums</header><text>Section 9707(a) of the Internal Revenue Code of 1986 is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H4BF7ACD4752E449285A115D062F9308" style="OLC">
<subsection id="H7691883BBD464922004116A3A1F8ED99"><enum>(a)</enum><header>Failures to
pay</header>
<paragraph id="H1B0D4E0FA79C4A629B38F6EC9CCE0945"><enum>(1)</enum><header>Premiums for
eligible beneficiaries</header><text>There is hereby imposed a penalty on the
failure of any assigned operator to pay any premium required to be paid under
section 9704 with respect to any eligible beneficiary.</text>
</paragraph><paragraph id="HCA6072DF34B246CBB9B4C3FC9C72B46"><enum>(2)</enum><header>Contributions
required under the mining laws</header><text>There is hereby imposed a penalty
on the failure of any person to make a contribution required under section
402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 to a
plan referred to in section 402(h)(2)(C) of such Act. For purposes of applying
this section, each such required monthly contribution for the hours worked of
any individual shall be treated as if it were a premium required to be paid
under section 9704 with respect to an eligible
beneficiary.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD7659879A0DB41B090FB1B87F600C5FC"><enum>(2)</enum><header>Civil
enforcement</header><text>Section 9721 of such Code is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H2D46ED41C5494062BDA8AB989F9B0466" style="OLC">
<section id="H21DE13FD859C4C4EAEE2B740FA2C4441"><enum>9721.</enum><header>Civil
enforcement</header><text display-inline="no-display-inline">The provisions of
section 4301 of the Employee Retirement Income Security Act of 1974 shall
apply, in the same manner as any claim arising out of an obligation to pay
withdrawal liability under subtitle E of title IV of such Act, to any
claim—</text>
<paragraph id="H3B78A43C5938424CAF74A77C1EC685B2"><enum>(1)</enum><text>arising out of an
obligation to pay any amount required to be paid by this chapter; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0C0F924877D54A519B43DD283CDA5135"><enum>(2)</enum><text>arising out of an
obligation to pay any amount required by section 402(h)(5)(B)(ii) of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C.
1232(h)(5)(B)(ii)).</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle>