110th CONGRESS
2d Session
H. R. 1424
In the Senate of the United
States,
October 1 (legislative
day, September 17), 2008.
Amendments:
That the bill from the House of Representatives
(H.R. 1424) entitled An Act to amend section 712 of the Employee
Retirement Income Security Act of 1974, section 2705 of the Public Health
Service Act, section 9812 of the Internal Revenue Code of 1986 to require
equity in the provision of mental health and substance-related disorder
benefits under group health plans, to prohibit discrimination on the basis of
genetic information with respect to health insurance and employment, and for
other purposes.
, do pass with the following
Strike all after
the enacting clause and insert the
following:
AEmergency Economic
Stabilization
1.Short title and table of
contents
(a)This division may be
cited as the Emergency Economic
Stabilization Act of 2008
.
(b)The table of contents for this division is as
follows:
Sec. 1. Short title and table
of contents.
Sec. 2. Purposes.
Sec. 3.
Definitions.
TITLE I—Troubled Assets Relief
Program
Sec. 101. Purchases of troubled
assets.
Sec. 102. Insurance of troubled
assets.
Sec. 103.
Considerations.
Sec. 104. Financial Stability
Oversight Board.
Sec. 105. Reports.
Sec. 106. Rights; management;
sale of troubled assets; revenues and sale proceeds.
Sec. 107. Contracting
procedures.
Sec. 108. Conflicts of
interest.
Sec. 109. Foreclosure
mitigation efforts.
Sec. 110. Assistance to
homeowners.
Sec. 111. Executive
compensation and corporate governance.
Sec. 112. Coordination with
foreign authorities and central banks.
Sec. 113. Minimization of
long-term costs and maximization of benefits for taxpayers.
Sec. 114. Market
transparency.
Sec. 115. Graduated authorization to
purchase.
Sec. 116. Oversight and
audits.
Sec. 117. Study and report on
margin authority.
Sec. 118. Funding.
Sec. 119. Judicial review and
related matters.
Sec. 120. Termination of
authority.
Sec. 121. Special Inspector
General for the Troubled Asset Relief Program.
Sec. 122. Increase in statutory
limit on the public debt.
Sec. 123. Credit
reform.
Sec. 124. HOPE for Homeowners
amendments.
Sec. 125. Congressional
Oversight Panel.
Sec. 126. FDIC
authority.
Sec. 127. Cooperation with the
FBI.
Sec. 128. Acceleration of
effective date.
Sec. 129. Disclosures on
exercise of loan authority.
Sec. 130. Technical
corrections.
Sec. 131. Exchange
Stabilization Fund reimbursement.
Sec. 132. Authority to suspend
mark-to-market accounting.
Sec. 133. Study on
mark-to-market accounting.
Sec. 134.
Recoupment.
Sec. 135. Preservation of
authority.
Sec. 136. Temporary increase in
deposit and share insurance coverage.
TITLE II—Budget-related
provisions
Sec. 201. Information for
congressional support agencies.
Sec. 202. Reports by the Office
of Management and Budget and the Congressional Budget Office.
Sec. 203. Analysis in
President’s Budget.
Sec. 204. Emergency
treatment.
TITLE III—Tax
Provisions
Sec. 301. Gain or loss from
sale or exchange of certain preferred stock.
Sec. 302. Special rules for tax
treatment of executive compensation of employers participating in the troubled
assets relief program.
Sec. 303. Extension of
exclusion of income from discharge of qualified principal residence
indebtedness.
2.The purposes of this Act are—
(1)to immediately provide authority and
facilities that the Secretary of the Treasury can use to restore liquidity and
stability to the financial system of the United States; and
(2)to ensure that such
authority and such facilities are used in a manner that—
(A)protects home values,
college funds, retirement accounts, and life savings;
(B)preserves homeownership
and promotes jobs and economic growth;
(C)maximizes overall returns
to the taxpayers of the United States; and
(D)provides public
accountability for the exercise of such authority.
3.For purposes of this Act, the following
definitions shall apply:
(1)Appropriate committees
of CongressThe term appropriate committees of
Congress
means—
(A)the Committee on Banking,
Housing, and Urban Affairs, the Committee on Finance, the Committee on the
Budget, and the Committee on Appropriations of the Senate; and
(B)the Committee on
Financial Services, the Committee on Ways and Means, the Committee on the
Budget, and the Committee on Appropriations of the House of
Representatives.
(2)The
term Board means the Board of Governors of the Federal Reserve
System.
(3)Congressional support
agenciesThe term
congressional support agencies means the Congressional Budget
Office and the Joint Committee on Taxation.
(4)The
term Corporation
means the Federal Deposit Insurance
Corporation.
(5)The term financial institution means any
institution, including, but not limited to, any bank, savings association,
credit union, security broker or dealer, or insurance company, established and
regulated under the laws of the United States or any State, territory, or
possession of the United States, the District of Columbia, Commonwealth of
Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or
the United States Virgin Islands, and having significant operations in the
United States, but excluding any central bank of, or institution owned by, a
foreign government.
(6)The
term Fund
means the Troubled Assets Insurance Financing Fund
established under section 102.
(7)The
term Secretary means the Secretary of the Treasury.
(8)The
term TARP means the Troubled Asset Relief Program established
under section 101.
(9)The term troubled assets
means—
(A)residential or commercial
mortgages and any securities, obligations, or other instruments that are based
on or related to such mortgages, that in each case was originated or issued on
or before March 14, 2008, the purchase of which the Secretary determines
promotes financial market stability; and
(B)any other financial
instrument that the Secretary, after consultation with the Chairman of the
Board of Governors of the Federal Reserve System, determines the purchase of
which is necessary to promote financial market stability, but only upon
transmittal of such determination, in writing, to the appropriate committees of
Congress.
<enum>I</enum><header>Troubled Assets Relief
Program</header>
<section id="H2D170E062DD1496CB656DF7E8B977208"><enum>101.</enum><header>Purchases of troubled
assets</header>
<subsection display-inline="no-display-inline" id="HF6C96D4609234F69A325004EE9A82E6F"><enum>(a)</enum><header>Offices;
Authority</header>
<paragraph commented="no" id="H3CD735DA7E1C4454BBDD9ED866F14300"><enum>(1)</enum><header>Authority</header><text>The
Secretary is authorized to establish the Troubled Asset Relief Program (or
<quote>TARP</quote>) to purchase, and to make and fund commitments to purchase,
troubled assets from any financial institution, on such terms and conditions as
are determined by the Secretary, and in accordance with this Act and the
policies and procedures developed and published by the Secretary.</text>
</paragraph><paragraph commented="no" id="id501F55AF2AC64298B9571EF9CC76B174"><enum>(2)</enum><header>Commencement of
program</header><text>Establishment of the policies and procedures and other
similar administrative requirements imposed on the Secretary by this Act are
not intended to delay the commencement of the TARP.</text>
</paragraph><paragraph id="HC3EE127260184074B4834FF9B98BA19"><enum>(3)</enum><header>Establishment of
Treasury office</header>
<subparagraph id="HE6E7403BE29F4F91879DC0EC9CF075A3"><enum>(A)</enum><header>In
general</header><text>The Secretary shall implement any program under paragraph
(1) through an Office of Financial Stability, established for such purpose
within the Office of Domestic Finance of the Department of the Treasury, which
office shall be headed by an Assistant Secretary of the Treasury, appointed by
the President, by and with the advice and consent of the Senate, except that an
interim Assistant Secretary may be appointed by the Secretary.</text>
</subparagraph><subparagraph id="H5F9CDF46624541BB9368EF415D26ED70"><enum>(B)</enum><header>Clerical
amendments</header>
<clause id="id058C7AB124F94A2DB98100B439A7D96F"><enum>(i)</enum><header>Title
5</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended in the
item relating to Assistant Secretaries of the Treasury, by striking
<quote>(9)</quote> and inserting <quote>(10)</quote>.</text>
</clause><clause id="id3578DC6BF3A1467096E59F0B667C9866"><enum>(ii)</enum><header>Title
31</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/301">Section 301(e)</external-xref> of title 31, United States Code, is amended by
striking <quote>9</quote> and inserting <quote>10</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HDC6DFD53D81445678C386F52E4EF5656"><enum>(b)</enum><header>Consultation</header><text display-inline="yes-display-inline">In exercising the authority under this
section, the Secretary shall consult with the Board, the Corporation, the
Comptroller of the Currency, the Director of the Office of Thrift Supervision,
the Chairman of the National Credit Union Administration Board, and the
Secretary of Housing and Urban Development.</text>
</subsection><subsection id="H9682647AA5CB4961A3DF5678F29E17C7"><enum>(c)</enum><header>Necessary
Actions</header><text>The Secretary is authorized to take such actions as the
Secretary deems necessary to carry out the authorities in this Act, including,
without limitation, the following:</text>
<paragraph id="HF50029FC9D784910B62D61B03BDBCB55"><enum>(1)</enum><text>The Secretary shall have
direct hiring authority with respect to the appointment of employees to
administer this Act.</text>
</paragraph><paragraph id="HCE59B3CC601F4C75A30201A759B8A0EA"><enum>(2)</enum><text>Entering into contracts,
including contracts for services authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United
States Code.</text>
</paragraph><paragraph id="H8FBAE98B5BA546DE916C1EB4E001B4ED"><enum>(3)</enum><text>Designating financial
institutions as financial agents of the Federal Government, and such
institutions shall perform all such reasonable duties related to this Act as
financial agents of the Federal Government as may be required.</text>
</paragraph><paragraph id="H986FA5C9A34A4E6BB33200F0837B4F30"><enum>(4)</enum><text>In order to provide the
Secretary with the flexibility to manage troubled assets in a manner designed
to minimize cost to the taxpayers, establishing vehicles that are authorized,
subject to supervision by the Secretary, to purchase, hold, and sell troubled
assets and issue obligations.</text>
</paragraph><paragraph id="HE05ACB2D90D2429EB1912F6BFCDE4647"><enum>(5)</enum><text>Issuing such regulations
and other guidance as may be necessary or appropriate to define terms or carry
out the authorities or purposes of this Act.</text>
</paragraph></subsection><subsection commented="no" id="HFC4C96B4D3F549DEA7FCCD9DDBF62F26"><enum>(d)</enum><header>Program
guidelines</header><text>Before the earlier of the end of the 2-business-day
period beginning on the date of the first purchase of troubled assets pursuant
to the authority under this section or the end of the 45-day period beginning
on the date of enactment of this Act, the Secretary shall publish program
guidelines, including the following:</text>
<paragraph commented="no" id="H15E98A50500B43C28B85BDB0C22C6F29"><enum>(1)</enum><text>Mechanisms for purchasing
troubled assets.</text>
</paragraph><paragraph commented="no" id="HE1E155B2A3DF462EBB4613F7DC002BB5"><enum>(2)</enum><text>Methods for pricing and
valuing troubled assets.</text>
</paragraph><paragraph commented="no" id="HBB96AF9B0CC14B26A8B450A05F8C120"><enum>(3)</enum><text>Procedures for selecting
asset managers.</text>
</paragraph><paragraph commented="no" id="HAF33C796C48D47449F265630B005382"><enum>(4)</enum><text>Criteria for identifying
troubled assets for purchase.</text>
</paragraph></subsection><subsection commented="no" id="H9C47836AF5FA4BA789003E2935A15D48"><enum>(e)</enum><header>Preventing unjust
enrichment</header><text>In making purchases under the authority of this Act,
the Secretary shall take such steps as may be necessary to prevent unjust
enrichment of financial institutions participating in a program established
under this section, including by preventing the sale of a troubled asset to the
Secretary at a higher price than what the seller paid to purchase the asset.
This subsection does not apply to troubled assets acquired in a merger or
acquisition, or a purchase of assets from a financial institution in
conservatorship or receivership, or that has initiated bankruptcy proceedings
under title 11, United States Code.</text>
</subsection></section><section id="id1CC85E3BDD2F4195986EF8E973C740EF"><enum>102.</enum><header>Insurance of troubled
assets</header>
<subsection id="idDE25A2D0B12447148C54DA48C8A3B73C"><enum>(a)</enum><header>Authority</header>
<paragraph id="id00543E44B4F94B6A855E1E2AC2A6DED1"><enum>(1)</enum><header>In
general</header><text>If the Secretary establishes the program authorized under
section 101, then the Secretary shall establish a program to guarantee troubled
assets originated or issued prior to March 14, 2008, including mortgage-backed
securities.</text>
</paragraph><paragraph id="idA85B6238A32A4300B419B9ED508273FE"><enum>(2)</enum><header>Guarantees</header><text>In
establishing any program under this subsection, the Secretary may develop
guarantees of troubled assets and the associated premiums for such guarantees.
Such guarantees and premiums may be determined by category or class of the
troubled assets to be guaranteed.</text>
</paragraph><paragraph id="id049474F6BA444AF09642EBFD9B5AFDC6"><enum>(3)</enum><header>Extent of
guarantee</header><text>Upon request of a financial institution, the Secretary
may guarantee the timely payment of principal of, and interest on, troubled
assets in amounts not to exceed 100 percent of such payments. Such guarantee
may be on such terms and conditions as are determined by the Secretary,
provided that such terms and conditions are consistent with the purposes of
this Act.</text>
</paragraph></subsection><subsection id="id23E288BE15504A398EDAF507026C14F1"><enum>(b)</enum><header>Reports</header><text>Not
later than 90 days after the date of enactment of this Act, the Secretary shall
report to the appropriate committees of Congress on the program established
under subsection (a).</text>
</subsection><subsection id="id882E499670504C7099F798B93EB2EF86"><enum>(c)</enum><header>Premiums</header>
<paragraph id="id31188489A0BE48838AB1DB13EA2964CE"><enum>(1)</enum><header>In
general</header><text>The Secretary shall collect premiums from any financial
institution participating in the program established under subsection (a). Such
premiums shall be in an amount that the Secretary determines necessary to meet
the purposes of this Act and to provide sufficient reserves pursuant to
paragraph (3).</text>
</paragraph><paragraph id="id50507E1BCF7B41218ADF01A57990B000"><enum>(2)</enum><header>Authority to base
premiums on product risk</header><text>In establishing any premium under
paragraph (1), the Secretary may provide for variations in such rates according
to the credit risk associated with the particular troubled asset that is being
guaranteed. The Secretary shall publish the methodology for setting the premium
for a class of troubled assets together with an explanation of the
appropriateness of the class of assets for participation in the program
established under this section. The methodology shall ensure that the premium
is consistent with paragraph (3).</text>
</paragraph><paragraph id="idD3E372B8606B42D4989CA6FDE9CC66DA"><enum>(3)</enum><header>Minimum
level</header><text>The premiums referred to in paragraph (1) shall be set by
the Secretary at a level necessary to create reserves sufficient to meet
anticipated claims, based on an actuarial analysis, and to ensure that
taxpayers are fully protected.</text>
</paragraph><paragraph id="idA4B03399E4414F9994EA77518D22AEFA"><enum>(4)</enum><header>Adjustment to purchase
authority</header><text>The purchase authority limit in section 115 shall be
reduced by an amount equal to the difference between the total of the
outstanding guaranteed obligations and the balance in the Troubled Assets
Insurance Financing Fund.</text>
</paragraph></subsection><subsection id="idDEF5226FD80C4E4EA60053EC0A6A2DC5"><enum>(d)</enum><header>Troubled assets
insurance financing fund</header>
<paragraph id="idCD319EA2D0934AC1802AE86B55ECDF23"><enum>(1)</enum><header>Deposits</header><text>The
Secretary shall deposit fees collected under this section into the Fund
established under paragraph (2).</text>
</paragraph><paragraph id="id4571444AD9BD49ED8288EF474D4C14A1"><enum>(2)</enum><header>Establishment</header><text>There
is established a Troubled Assets Insurance Financing Fund that shall consist of
the amounts collected pursuant to paragraph (1), and any balance in such fund
shall be invested by the Secretary in United States Treasury securities, or
kept in cash on hand or on deposit, as necessary.</text>
</paragraph><paragraph id="idDAA73FEE07E34CDFA91A171851A867CA"><enum>(3)</enum><header>Payments from
fund</header><text>The Secretary shall make payments from amounts deposited in
the Fund to fulfill obligations of the guarantees provided to financial
institutions under subsection (a).</text>
</paragraph></subsection></section><section commented="no" id="H0176C5A3767D44E0B9459D62F5021167"><enum>103.</enum><header>Considerations</header><text display-inline="no-display-inline">In exercising the authorities granted in
this Act, the Secretary shall take into consideration—</text>
<paragraph commented="no" id="H60D4E812CDB84019B2C3C0F4A296079D"><enum>(1)</enum><text>protecting the interests
of taxpayers by maximizing overall returns and minimizing the impact on the
national debt;</text>
</paragraph><paragraph commented="no" id="idF712AE587FD04278A7211735DEF5D3D6"><enum>(2)</enum><text>providing stability and
preventing disruption to financial markets in order to limit the impact on the
economy and protect American jobs, savings, and retirement security;</text>
</paragraph><paragraph commented="no" id="id31D9DDDD2C2D45F2BB3B89B52A77D489"><enum>(3)</enum><text>the need to help families
keep their homes and to stabilize communities;</text>
</paragraph><paragraph commented="no" id="H64E84525B2C04F48B043D35E085B9604"><enum>(4)</enum><text>in determining whether to
engage in a direct purchase from an individual financial institution, the
long-term viability of the financial institution in determining whether the
purchase represents the most efficient use of funds under this Act;</text>
</paragraph><paragraph commented="no" id="H3182012325FF45999B4127C842626C86"><enum>(5)</enum><text display-inline="yes-display-inline">ensuring that all financial institutions
are eligible to participate in the program, without discrimination based on
size, geography, form of organization, or the size, type, and number of assets
eligible for purchase under this Act;</text>
</paragraph><paragraph commented="no" id="H4022FDBF9692452DB000AB9B882D2416"><enum>(6)</enum><text display-inline="yes-display-inline">providing financial assistance to financial
institutions, including those serving low- and moderate-income populations and
other underserved communities, and that have assets less than $1,000,000,000,
that were well or adequately capitalized as of June 30, 2008, and that as a
result of the devaluation of the preferred government-sponsored enterprises
stock will drop one or more capital levels, in a manner sufficient to restore
the financial institutions to at least an adequately capitalized level;</text>
</paragraph><paragraph commented="no" id="H03942D4F142945A8A21E9EB0A15063A2"><enum>(7)</enum><text display-inline="yes-display-inline">the need to ensure stability for United
States public instrumentalities, such as counties and cities, that may have
suffered significant increased costs or losses in the current market
turmoil;</text>
</paragraph><paragraph commented="no" id="id730AEEC5F4E94776990E6D42D0FF635C"><enum>(8)</enum><text display-inline="yes-display-inline">protecting the retirement security of
Americans by purchasing troubled assets held by or on behalf of an eligible
retirement plan described in clause (iii), (iv), (v), or (vi) of section
402(c)(8)(B) of the Internal Revenue Code of 1986, except that such authority
shall not extend to any compensation arrangements subject to section 409A of
such Code; and</text>
</paragraph><paragraph commented="no" id="HC16E05AB4BB646C299ED0067E8A269FE"><enum>(9)</enum><text>the utility of purchasing
other real estate owned and instruments backed by mortgages on multifamily
properties.</text>
</paragraph></section><section id="HA9208E8E68444864A9FB07D7F1C0DD33"><enum>104.</enum><header>Financial Stability
Oversight Board</header>
<subsection id="HDAC3A3F9B0604ED981E368C48EF632F2"><enum>(a)</enum><header>Establishment</header><text>There
is established the Financial Stability Oversight Board, which shall be
responsible for—</text>
<paragraph id="H48018E3D7732485480D1212B87A76748"><enum>(1)</enum><text>reviewing the exercise of
authority under a program developed in accordance with this Act,
including—</text>
<subparagraph id="HDD6F0E7DF8364A1496CB4654EA01246F"><enum>(A)</enum><text>policies implemented by
the Secretary and the Office of Financial Stability created under sections 101
and 102, including the appointment of financial agents, the designation of
asset classes to be purchased, and plans for the structure of vehicles used to
purchase troubled assets; and</text>
</subparagraph><subparagraph id="H450842E8149C4A49A784F806AA7E00DF"><enum>(B)</enum><text>the effect of such
actions in assisting American families in preserving home ownership,
stabilizing financial markets, and protecting taxpayers;</text>
</subparagraph></paragraph><paragraph id="HA3AB6C3A756A4055ABE6E81DA935B5F7"><enum>(2)</enum><text>making recommendations,
as appropriate, to the Secretary regarding use of the authority under this Act;
and</text>
</paragraph><paragraph id="H6396BB39C67149909E30D23103256393"><enum>(3)</enum><text>reporting any suspected
fraud, misrepresentation, or malfeasance to the Special Inspector General for
the Troubled Assets Relief Program or the Attorney General of the United
States, consistent with <external-xref legal-doc="usc" parsable-cite="usc/28/535">section 535(b)</external-xref> of title 28, United States Code.</text>
</paragraph></subsection><subsection commented="no" id="HA5A162DC54954511937368F1AF49FB3B"><enum>(b)</enum><header>Membership</header><text display-inline="yes-display-inline">The Financial Stability Oversight Board
shall be comprised of—</text>
<paragraph commented="no" id="H9777EDA6D9F14343AE411764B9D01691"><enum>(1)</enum><text>the Chairman of the Board
of Governors of the Federal Reserve System;</text>
</paragraph><paragraph commented="no" id="HBA1A0736C8EE4974922998DD7DD0594F"><enum>(2)</enum><text>the Secretary;</text>
</paragraph><paragraph commented="no" id="id5A26C0464007496AB6E546A9AD19CBD2"><enum>(3)</enum><text>the Director of the
Federal Housing Finance Agency;</text>
</paragraph><paragraph commented="no" id="HF988C7F2C5BE4EDEAFACD576E85D5D82"><enum>(4)</enum><text>the Chairman of the
Securities Exchange Commission; and</text>
</paragraph><paragraph commented="no" id="id99D6023082624378B02BBBF2BF250AB3"><enum>(5)</enum><text>the Secretary of Housing
and Urban Development.</text>
</paragraph></subsection><subsection id="H21FCE61D403242FC85FE4941689250AA"><enum>(c)</enum><header>Chairperson</header><text display-inline="yes-display-inline">The chairperson of the Financial Stability
Oversight Board shall be elected by the members of the Board from among the
members other than the Secretary.</text>
</subsection><subsection id="HD0530A31508B4D72B91EC52D70CB0203"><enum>(d)</enum><header>Meetings</header><text display-inline="yes-display-inline">The Financial Stability Oversight Board
shall meet 2 weeks after the first exercise of the purchase authority of the
Secretary under this Act, and monthly thereafter.</text>
</subsection><subsection commented="no" id="id066E1B9D46CF4C5893DA01F3BB23A95D"><enum>(e)</enum><header>Additional
authorities</header><text display-inline="yes-display-inline">In addition to
the responsibilities described in subsection (a), the Financial Stability
Oversight Board shall have the authority to ensure that the policies
implemented by the Secretary are—</text>
<paragraph commented="no" id="id4CE6E243525741D293BE25ED5C236716"><enum>(1)</enum><text display-inline="yes-display-inline">in accordance with the purposes of this
Act;</text>
</paragraph><paragraph commented="no" id="id89771F03511E4D17B28719D8DB2BA056"><enum>(2)</enum><text display-inline="yes-display-inline">in the economic interests of the United
States; and</text>
</paragraph><paragraph commented="no" id="id4512FE0E8E824AA3B5F810D1FE63B7B1"><enum>(3)</enum><text display-inline="yes-display-inline">consistent with protecting taxpayers, in
accordance with section 113(a).</text>
</paragraph></subsection><subsection commented="no" id="id737BC04190AD406E972C166FF280ABDD"><enum>(f)</enum><header>Credit review
committee</header><text display-inline="yes-display-inline">The Financial
Stability Oversight Board may appoint a credit review committee for the purpose
of evaluating the exercise of the purchase authority provided under this Act
and the assets acquired through the exercise of such authority, as the
Financial Stability Oversight Board determines appropriate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id0A05123BBFDF4C5D8F8BD6B83732BF15"><enum>(g)</enum><header>Reports</header><text>The
Financial Stability Oversight Board shall report to the appropriate committees
of Congress and the Congressional Oversight Panel established under section
125, not less frequently than quarterly, on the matters described under
subsection (a)(1).</text>
</subsection><subsection id="idD58030EBC31B4956B09AC8D97DAF48DE"><enum>(h)</enum><header>Termination</header><text>The
Financial Stability Oversight Board, and its authority under this section,
shall terminate on the expiration of the 15-day period beginning upon the later
of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id306B5280376841D6BFAE7871116FDD91"><enum>(1)</enum><text>the date that the last
troubled asset acquired by the Secretary under section 101 has been sold or
transferred out of the ownership or control of the Federal Government;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id97349C6572FA4184B9F94943A1154500"><enum>(2)</enum><text>the date of expiration of
the last insurance contract issued under section 102.</text>
</paragraph></subsection></section><section commented="no" id="H14669E3C61EF44E08D53E1A73EF439C1" section-type="subsequent-section"><enum>105.</enum><header>Reports</header>
<subsection commented="no" id="H91EFB7C615414FFDAA9C60127BBB5B55"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Before the expiration
of the 60-day period beginning on the date of the first exercise of the
authority granted in section 101(a), or of the first exercise of the authority
granted in section 102, whichever occurs first, and every 30-day period
thereafter, the Secretary shall report to the appropriate committees of
Congress, with respect to each such period—</text>
<paragraph commented="no" id="H0AF9F4BD5C4D4205AB8B34727CAE3876"><enum>(1)</enum><text display-inline="yes-display-inline">an overview of actions taken by the
Secretary, including the considerations required by section 103 and the efforts
under section 109;</text>
</paragraph><paragraph commented="no" id="H55D0C3F531594CBDB87E8514582063D3"><enum>(2)</enum><text>the actual obligation and
expenditure of the funds provided for administrative expenses by section 118
during such period and the expected expenditure of such funds in the subsequent
period; and</text>
</paragraph><paragraph commented="no" id="H00DFECCBD60546ACB7616B5900296BE4"><enum>(3)</enum><text>a detailed financial
statement with respect to the exercise of authority under this Act,
including—</text>
<subparagraph commented="no" id="HAC3FB8B950E14F24B65DB0BD3BCDD427"><enum>(A)</enum><text>all agreements made or
renewed;</text>
</subparagraph><subparagraph commented="no" id="id38596F79F8864DA4A18ED35FD6BF8A25"><enum>(B)</enum><text>all insurance contracts
entered into pursuant to section 102;</text>
</subparagraph><subparagraph commented="no" id="H48A4227FB195427A9CDCA1DAE3F22DFA"><enum>(C)</enum><text>all transactions
occurring during such period, including the types of parties involved;</text>
</subparagraph><subparagraph commented="no" id="H283FDB4F1B7A493E8322226FA87A6E3"><enum>(D)</enum><text>the nature of the assets
purchased;</text>
</subparagraph><subparagraph commented="no" id="H0B17AE2D59254370ABD00F511A942C9"><enum>(E)</enum><text>all projected costs and
liabilities;</text>
</subparagraph><subparagraph commented="no" id="H12B67FA503F04D9589416B8DE17C2D48"><enum>(F)</enum><text>operating expenses,
including compensation for financial agents;</text>
</subparagraph><subparagraph commented="no" id="H51AD722AD987410D97B6FCE97C5CCBA"><enum>(G)</enum><text>the valuation or pricing
method used for each transaction; and</text>
</subparagraph><subparagraph commented="no" id="HB75BB084A9D94A83A88D3B3E7BE100E"><enum>(H)</enum><text>a description of the
vehicles established to exercise such authority.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H26EE996D888E4EF785C891EBE1260985"><enum>(b)</enum><header>Tranche reports to
Congress</header>
<paragraph commented="no" id="H7733AC2CE27A4031857FEB90F8EAB0D2"><enum>(1)</enum><header>Reports</header><text>The
Secretary shall provide to the appropriate committees of Congress, at the times
specified in paragraph (2), a written report, including—</text>
<subparagraph commented="no" id="HE112C816768241EFA6E9CF4CC4B12ED8"><enum>(A)</enum><text>a description of all of
the transactions made during the reporting period;</text>
</subparagraph><subparagraph commented="no" id="HBED67926731540D38B88B8FD10E94B41"><enum>(B)</enum><text>a description of the
pricing mechanism for the transactions;</text>
</subparagraph><subparagraph commented="no" id="HDD713915A13E46B5B785E3D2339C8306"><enum>(C)</enum><text>a justification of the
price paid for and other financial terms associated with the
transactions;</text>
</subparagraph><subparagraph commented="no" id="HB9CA35BF01B54DF5AA5C52000051C7D"><enum>(D)</enum><text>a description of the
impact of the exercise of such authority on the financial system, supported, to
the extent possible, by specific data;</text>
</subparagraph><subparagraph commented="no" id="HB7683A858FD9440CA03DDF105400B6B7"><enum>(E)</enum><text>a description of
challenges that remain in the financial system, including any benchmarks yet to
be achieved; and</text>
</subparagraph><subparagraph commented="no" id="H64F70C75FEA248C6A8B6CB90F881A8C3"><enum>(F)</enum><text>an estimate of additional
actions under the authority provided under this Act that may be necessary to
address such challenges.</text>
</subparagraph></paragraph><paragraph commented="no" id="H487A17C4F43F40BE85A531D41E08039D"><enum>(2)</enum><header>Timing</header><text>The
report required by this subsection shall be submitted not later than 7 days
after the date on which commitments to purchase troubled assets under the
authorities provided in this Act first reach an aggregate of $50,000,000,000
and not later than 7 days after each $50,000,000,000 interval of such
commitments is reached thereafter.</text>
</paragraph></subsection><subsection commented="no" id="H64651DEF4D3342ABA51C420012534325"><enum>(c)</enum><header>Regulatory
modernization report</header><text display-inline="yes-display-inline">The
Secretary shall review the current state of the financial markets and the
regulatory system and submit a written report to the appropriate committees of
Congress not later than April 30, 2009, analyzing the current state of the
regulatory system and its effectiveness at overseeing the participants in the
financial markets, including the over-the-counter swaps market and
government-sponsored enterprises, and providing recommendations for
improvement, including—</text>
<paragraph commented="no" id="idCC922642A9A64DF4B792CDEDE442026F"><enum>(1)</enum><text display-inline="yes-display-inline">recommendations regarding—</text>
<subparagraph commented="no" id="idD60375AF60EC4E0EAA85BE1B4ECDA72A"><enum>(A)</enum><text display-inline="yes-display-inline">whether any participants in the financial
markets that are currently outside the regulatory system should become subject
to the regulatory system; and</text>
</subparagraph><subparagraph commented="no" id="idEF73B5176B1440F39A523C01B14B403E"><enum>(B)</enum><text display-inline="yes-display-inline">enhancement of the clearing and settlement
of over-the-counter swaps; and</text>
</subparagraph></paragraph><paragraph commented="no" id="id5094E897CCA24182AB9966F26DEB369C"><enum>(2)</enum><text display-inline="yes-display-inline">the rationale underlying such
recommendations.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA7A5C25D4E3B45279CB0AC66A1D6B321"><enum>(d)</enum><header>Sharing of
information</header><text>Any report required under this section shall also be
submitted to the Congressional Oversight Panel established under section
125.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id930D3B7BB3A04B62B81E0CC310E4095A"><enum>(e)</enum><header>Sunset</header><text>The
reporting requirements under this section shall terminate on the later
of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF1D9D655CF2145EC8C7BED10B25311B0"><enum>(1)</enum><text>the date that the last
troubled asset acquired by the Secretary under section 101 has been sold or
transferred out of the ownership or control of the Federal Government;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4BDD59F87F594B0BBAC35B22B29A6423"><enum>(2)</enum><text>the date of expiration of
the last insurance contract issued under section 102.</text>
</paragraph></subsection></section><section id="H6B02B05ECF0743C7913F191519C312B5"><enum>106.</enum><header>Rights; management;
sale of troubled assets; revenues and sale proceeds</header>
<subsection id="H1F9CC54EEC0146AAA6B9BF1C44CACFA"><enum>(a)</enum><header>Exercise of
rights</header><text>The Secretary may, at any time, exercise any rights
received in connection with troubled assets purchased under this Act.</text>
</subsection><subsection commented="no" id="H2C71E0A0E3804D68BB12C097A77BCD9F"><enum>(b)</enum><header>Management of troubled
assets</header><text>The Secretary shall have authority to manage troubled
assets purchased under this Act, including revenues and portfolio risks
therefrom.</text>
</subsection><subsection id="H568C6FF022934246BE94F848D9008365"><enum>(c)</enum><header>Sale of troubled
assets</header><text>The Secretary may, at any time, upon terms and conditions
and at a price determined by the Secretary, sell, or enter into securities
loans, repurchase transactions, or other financial transactions in regard to,
any troubled asset purchased under this Act.</text>
</subsection><subsection commented="no" id="id8BD06A7A9CC843CE84A86EB8B74FC090"><enum>(d)</enum><header>Transfer to
treasury</header><text>Revenues of, and proceeds from the sale of troubled
assets purchased under this Act, or from the sale, exercise, or surrender of
warrants or senior debt instruments acquired under section 113 shall be paid
into the general fund of the Treasury for reduction of the public debt.</text>
</subsection><subsection id="HC48F6300C1A54C06A8EEDC819F4941CC"><enum>(e)</enum><header>Application of sunset
to troubled assets</header><text>The authority of the Secretary to hold any
troubled asset purchased under this Act before the termination date in section
120, or to purchase or fund the purchase of a troubled asset under a commitment
entered into before the termination date in section 120, is not subject to the
provisions of section 120.</text>
</subsection></section><section id="HEE23F37E2D554AFE9F24F75E9DBF1076"><enum>107.</enum><header>Contracting
procedures</header>
<subsection id="id0E1840F056924D7AB2F41C1F47565EB2"><enum>(a)</enum><header>Streamlined
process</header><text>For purposes of this Act, the Secretary may waive
specific provisions of the Federal Acquisition Regulation upon a determination
that urgent and compelling circumstances make compliance with such provisions
contrary to the public interest. Any such determination, and the justification
for such determination, shall be submitted to the Committees on Oversight and
Government Reform and Financial Services of the House of Representatives and
the Committees on Homeland Security and Governmental Affairs and Banking,
Housing, and Urban Affairs of the Senate within 7 days.</text>
</subsection><subsection commented="no" id="H2FCBC79E224B41538E3301E04CBCDF5E"><enum>(b)</enum><header>Additional contracting
requirements</header><text display-inline="yes-display-inline">In any
solicitation or contract where the Secretary has, pursuant to subsection (a),
waived any provision of the Federal Acquisition Regulation pertaining to
minority contracting, the Secretary shall develop and implement standards and
procedures to ensure, to the maximum extent practicable, the inclusion and
utilization of minorities (as such term is defined in section 1204(c) of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
1811 note)) and women, and minority- and women-owned businesses (as such terms
are defined in section 21A(r)(4) of the Federal Home Loan Bank Act (12 U.S.C.
1441a(r)(4)), in that solicitation or contract, including contracts to asset
managers, servicers, property managers, and other service providers or expert
consultants.</text>
</subsection><subsection id="H444EBBBD5436444CAFFE6999D021C983"><enum>(c)</enum><header>Eligibility of
FDIC</header><text>Notwithstanding subsections (a) and (b), the
Corporation—</text>
<paragraph id="idB178FABCA43046E1BADAB8E905A05A2E"><enum>(1)</enum><text>shall be eligible for,
and shall be considered in, the selection of asset managers for residential
mortgage loans and residential mortgage-backed securities; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA65EE50E86534555989EE5996C5244B4"><enum>(2)</enum><text>shall be reimbursed by
the Secretary for any services provided.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HC71E77DB2E6E4B14B07BF2118EBA9936"><enum>108.</enum><header>Conflicts of
interest</header>
<subsection id="H6681D7B2D9FA472BB6A1002732CCCE1C"><enum>(a)</enum><header>Standards
required</header><text display-inline="yes-display-inline">The Secretary shall
issue regulations or guidelines necessary to address and manage or to prohibit
conflicts of interest that may arise in connection with the administration and
execution of the authorities provided under this Act, including—</text>
<paragraph id="HF541D1335C62402DB83E1504A2AB45D4"><enum>(1)</enum><text display-inline="yes-display-inline">conflicts arising in the selection or
hiring of contractors or advisors, including asset managers;</text>
</paragraph><paragraph id="HC878E0588FDA4F0390694445612DA351"><enum>(2)</enum><text>the purchase of troubled
assets;</text>
</paragraph><paragraph id="H6D5DAA6E6FE743DCA1D7D92F17FFC249"><enum>(3)</enum><text display-inline="yes-display-inline">the management of the troubled assets
held;</text>
</paragraph><paragraph id="HCB8D56FB652D4D90A13E0605C0562344"><enum>(4)</enum><text display-inline="yes-display-inline">post-employment restrictions on employees;
and</text>
</paragraph><paragraph id="H55E8D590A7434E56B9D09E73FF44267E"><enum>(5)</enum><text display-inline="yes-display-inline">any other potential conflict of interest,
as the Secretary deems necessary or appropriate in the public interest.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H45FFDFE2919D4C66BD2D7CB2EA41A511"><enum>(b)</enum><header>Timing</header><text>Regulations
or guidelines required by this section shall be issued as soon as practicable
after the date of enactment of this Act.</text>
</subsection></section><section id="idCAB3CD580442450D919F0B58A911D8A1"><enum>109.</enum><header>Foreclosure mitigation
efforts</header>
<subsection id="idCE39B3D026C24912827C8F22FFD44BED"><enum>(a)</enum><header>Residential mortgage
loan servicing standards</header><text>To the extent that the Secretary
acquires mortgages, mortgage backed securities, and other assets secured by
residential real estate, including multifamily housing, the Secretary shall
implement a plan that seeks to maximize assistance for homeowners and use the
authority of the Secretary to encourage the servicers of the underlying
mortgages, considering net present value to the taxpayer, to take advantage of
the HOPE for Homeowners Program under section 257 of the National Housing Act
or other available programs to minimize foreclosures. In addition, the
Secretary may use loan guarantees and credit enhancements to facilitate loan
modifications to prevent avoidable foreclosures.</text>
</subsection><subsection commented="no" id="H2861173A789F40A88B5E4CB3D624E594"><enum>(b)</enum><header>Coordination</header><text>The
Secretary shall coordinate with the Corporation, the Board (with respect to any
mortgage or mortgage-backed securities or pool of securities held, owned, or
controlled by or on behalf of a Federal reserve bank, as provided in section
110(a)(1)(C)), the Federal Housing Finance Agency, the Secretary of Housing and
Urban Development, and other Federal Government entities that hold troubled
assets to attempt to identify opportunities for the acquisition of classes of
troubled assets that will improve the ability of the Secretary to improve the
loan modification and restructuring process and, where permissible, to permit
bona fide tenants who are current on their rent to remain in their homes under
the terms of the lease. In the case of a mortgage on a residential rental
property, the plan required under this section shall include protecting
Federal, State, and local rental subsidies and protections, and ensuring any
modification takes into account the need for operating funds to maintain decent
and safe conditions at the property.</text>
</subsection><subsection id="idBB52EDEAA3F3413FA64A070ACA422A9E"><enum>(c)</enum><header>Consent to reasonable
loan modification requests</header><text>Upon any request arising under
existing investment contracts, the Secretary shall consent, where appropriate,
and considering net present value to the taxpayer, to reasonable requests for
loss mitigation measures, including term extensions, rate reductions, principal
write downs, increases in the proportion of loans within a trust or other
structure allowed to be modified, or removal of other limitation on
modifications.</text>
</subsection></section><section display-inline="no-display-inline" id="H34F923B3C38D4D5C98B8E1EE72F300E2" section-type="subsequent-section"><enum>110.</enum><header>Assistance to
homeowners</header>
<subsection id="HE379230BF45D4F33A9E9180011F58600"><enum>(a)</enum><header>Definitions</header><text>As
used in this section—</text>
<paragraph id="HAC5A241D36D04E990045E63255A78693"><enum>(1)</enum><text>the term <term>Federal
property manager</term> means—</text>
<subparagraph id="H089C77D40FFC44BC8CE13F15701963DE"><enum>(A)</enum><text>the Federal Housing
Finance Agency, in its capacity as conservator of the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation;</text>
</subparagraph><subparagraph commented="no" id="HD3CDDB63FDEA4293B122DCE60F3A761"><enum>(B)</enum><text>the Corporation, with
respect to residential mortgage loans and mortgage-backed securities held by
any bridge depository institution pursuant to section 11(n) of the Federal
Deposit Insurance Act; and</text>
</subparagraph><subparagraph id="HE19C52AEA0A048BE85D4BB2C78BD4FA4"><enum>(C)</enum><text>the Board, with respect
to any mortgage or mortgage-backed securities or pool of securities held,
owned, or controlled by or on behalf of a Federal reserve bank, other than
mortgages or securities held, owned, or controlled in connection with open
market operations under section 14 of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/353">12 U.S.C. 353</external-xref>),
or as collateral for an advance or discount that is not in default;</text>
</subparagraph></paragraph><paragraph id="H9C105D4107CE4C8BAC740084D2685500"><enum>(2)</enum><text>the term
<term>consumer</term> has the same meaning as in section 103 of the Truth in
Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1602">15 U.S.C. 1602</external-xref>);</text>
</paragraph><paragraph id="H004BFBEF6C4A48F8871F194C2D00F3EB"><enum>(3)</enum><text>the term <term>insured
depository institution</term> has the same meaning as in section 3 of the
Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>); and</text>
</paragraph><paragraph id="H71B09EC19F8B4ABCBF936E9DA4807CF2"><enum>(4)</enum><text>the term
<term>servicer</term> has the same meaning as in section 6(i)(2) of the Real
Estate Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2605">12 U.S.C. 2605(i)(2)</external-xref>).</text>
</paragraph></subsection><subsection id="H693C0D528A044078ADC185005FE93842"><enum>(b)</enum><header>Homeowner assistance by
agencies</header>
<paragraph id="idC6D99905C6DE495E828513F627BA440C"><enum>(1)</enum><header>In
general</header><text>To the extent that the Federal property manager holds,
owns, or controls mortgages, mortgage backed securities, and other assets
secured by residential real estate, including multifamily housing, the Federal
property manager shall implement a plan that seeks to maximize assistance for
homeowners and use its authority to encourage the servicers of the underlying
mortgages, and considering net present value to the taxpayer, to take advantage
of the HOPE for Homeowners Program under section 257 of the National Housing
Act or other available programs to minimize foreclosures.</text>
</paragraph><paragraph id="HDDE145FD53DF4E86AB4900BB08299500"><enum>(2)</enum><header>Modifications</header><text>In
the case of a residential mortgage loan, modifications made under paragraph (1)
may include—</text>
<subparagraph id="HAE486C0539214CFE9F38D834AF00C522"><enum>(A)</enum><text>reduction in interest
rates;</text>
</subparagraph><subparagraph id="H5255376A680140F300A1B600C7CA6CF4"><enum>(B)</enum><text>reduction of loan
principal; and</text>
</subparagraph><subparagraph id="H7345CFDF951C44D9B0263BD59ED5A206"><enum>(C)</enum><text>other similar
modifications.</text>
</subparagraph></paragraph><paragraph id="H1C154B289350454C92D71115F96661CB"><enum>(3)</enum><header>Tenant
protections</header><text display-inline="yes-display-inline">In the case of
mortgages on residential rental properties, modifications made under paragraph
(1) shall ensure—</text>
<subparagraph id="H57001CCD00C841229B8E486434801700"><enum>(A)</enum><text>the continuation of any
existing Federal, State, and local rental subsidies and protections; and</text>
</subparagraph><subparagraph id="H2C7BA1ACF8AE4A03B8B4C35D5FDA1692"><enum>(B)</enum><text>that modifications take
into account the need for operating funds to maintain decent and safe
conditions at the property.</text>
</subparagraph></paragraph><paragraph id="H077F0CFB11D647389FB04C197EF5568"><enum>(4)</enum><header>Timing</header><text>Each
Federal property manager shall develop and begin implementation of the plan
required by this subsection not later than 60 days after the date of enactment
of this Act.</text>
</paragraph><paragraph id="H39866FB6F7F44FC9A888AAD538560733"><enum>(5)</enum><header>Reports to
congress</header><text>Each Federal property manager shall, 60 days after the
date of enactment of this Act and every 30 days thereafter, report to Congress
specific information on the number and types of loan modifications made and the
number of actual foreclosures occurring during the reporting period in
accordance with this section.</text>
</paragraph><paragraph id="H560F59EC0C1C476EBDC190F9D2279FB"><enum>(6)</enum><header>Consultation</header><text>In
developing the plan required by this subsection, the Federal property managers
shall consult with one another and, to the extent possible, utilize consistent
approaches to implement the requirements of this subsection.</text>
</paragraph></subsection><subsection id="HD8759276D5824B91B6A0F63DC39F0D8"><enum>(c)</enum><header>Actions with respect to
servicers</header><text>In any case in which a Federal property manager is not
the owner of a residential mortgage loan, but holds an interest in obligations
or pools of obligations secured by residential mortgage loans, the Federal
property manager shall—</text>
<paragraph id="HFAC0B6F5AAD1478392931D16CBCCE507"><enum>(1)</enum><text>encourage implementation
by the loan servicers of loan modifications developed under subsection (b);
and</text>
</paragraph><paragraph id="H001D9B1BBDD046349BD093BC8FEEDD6"><enum>(2)</enum><text>assist in facilitating
any such modifications, to the extent possible.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H092E4CDC465948F08F2E63DAE07B2F28"><enum>(d)</enum><header>Limitation</header><text>The
requirements of this section shall not supersede any other duty or requirement
imposed on the Federal property managers under otherwise applicable law.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id3837E53086144667AB08B35D3215782C"><enum>111.</enum><header>Executive compensation
and corporate governance</header>
<subsection commented="no" display-inline="no-display-inline" id="idA4B2BCB23B354344809F9C443253E62B"><enum>(a)</enum><header>Applicability</header><text>Any
financial institution that sells troubled assets to the Secretary under this
Act shall be subject to the executive compensation requirements of subsections
(b) and (c) and the provisions under the Internal Revenue Code of 1986, as
provided under the amendment by section 302, as applicable.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id4119BA663FDD4C09BAE4D7A2F302BF01"><enum>(b)</enum><header>Direct
purchases</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7EBA8C56FDAE4D529AE86DEB0FF31FF0"><enum>(1)</enum><header>In
general</header><text>Where the Secretary determines that the purposes of this
Act are best met through direct purchases of troubled assets from an individual
financial institution where no bidding process or market prices are available,
and the Secretary receives a meaningful equity or debt position in the
financial institution as a result of the transaction, the Secretary shall
require that the financial institution meet appropriate standards for executive
compensation and corporate governance. The standards required under this
subsection shall be effective for the duration of the period that the Secretary
holds an equity or debt position in the financial institution.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2D68FD335F1144FB918F4B54C2411670"><enum>(2)</enum><header>Criteria</header><text>The
standards required under this subsection shall include—</text>
<subparagraph id="IDda93fba7ce8d4fe0b08b59b5ead32744"><enum>(A)</enum><text>limits on compensation
that exclude incentives for senior executive officers of a financial
institution to take unnecessary and excessive risks that threaten the value of
the financial institution during the period that the Secretary holds an equity
or debt position in the financial institution;</text>
</subparagraph><subparagraph id="ID19a0f36e5b324314847e7ebe61045959"><enum>(B)</enum><text>a provision for the
recovery by the financial institution of any bonus or incentive compensation
paid to a senior executive officer based on statements of earnings, gains, or
other criteria that are later proven to be materially inaccurate; and</text>
</subparagraph><subparagraph id="ID3c333442909e482cb607d9f4cb756024"><enum>(C)</enum><text>a prohibition on the
financial institution making any golden parachute payment to its senior
executive officer during the period that the Secretary holds an equity or debt
position in the financial institution.</text>
</subparagraph></paragraph><paragraph id="id101AE2F1F0C64480B64602A2EF4C2164"><enum>(3)</enum><header>Definition</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>senior executive officer</term> means an individual who is one of the top
5 highly paid executives of a public company, whose compensation is required to
be disclosed pursuant to the Securities Exchange Act of 1934, and any
regulations issued thereunder, and non-public company counterparts.</text>
</paragraph></subsection><subsection commented="no" id="idF9F11470114A477DA05C976C11439178"><enum>(c)</enum><header>Auction
purchases</header><text>Where the Secretary determines that the purposes of
this Act are best met through auction purchases of troubled assets, and only
where such purchases per financial institution in the aggregate exceed
$300,000,000 (including direct purchases), the Secretary shall prohibit, for
such financial institution, any new employment contract with a senior executive
officer that provides a golden parachute in the event of an involuntary
termination, bankruptcy filing, insolvency, or receivership. The Secretary
shall issue guidance to carry out this paragraph not later than 2 months after
the date of enactment of this Act, and such guidance shall be effective upon
issuance.</text>
</subsection><subsection commented="no" id="idD909C248652347A6B3EAB7073D29A097"><enum>(d)</enum><header>Sunset</header><text>The
provisions of subsection (c) shall apply only to arrangements entered into
during the period during which the authorities under section 101(a) are in
effect, as determined under section 120.</text>
</subsection></section><section id="H7B968D187E2C4F72959DF1215E2CFD9C"><enum>112.</enum><header>Coordination with
foreign authorities and central banks</header><text display-inline="no-display-inline">The Secretary shall coordinate, as
appropriate, with foreign financial authorities and central banks to work
toward the establishment of similar programs by such authorities and central
banks. To the extent that such foreign financial authorities or banks hold
troubled assets as a result of extending financing to financial institutions
that have failed or defaulted on such financing, such troubled assets qualify
for purchase under section 101.</text>
</section><section commented="no" id="H1397E18565EE48D8ABC7D4217098F289"><enum>113.</enum><header>Minimization of
long-term costs and maximization of benefits for taxpayers</header>
<subsection commented="no" id="HA21E74D3B4F74750B73F5060D050B62C"><enum>(a)</enum><header>Long-term costs and
benefits</header>
<paragraph commented="no" id="id2234E5967F9449A784FB81AA83BC6AD5"><enum>(1)</enum><header>Minimizing negative
impact</header><text>The Secretary shall use the authority under this Act in a
manner that will minimize any potential long-term negative impact on the
taxpayer, taking into account the direct outlays, potential long-term returns
on assets purchased, and the overall economic benefits of the program,
including economic benefits due to improvements in economic activity and the
availability of credit, the impact on the savings and pensions of individuals,
and reductions in losses to the Federal Government.</text>
</paragraph><paragraph commented="no" id="id5AAC236F6A61498FB426660E4D4CA68F"><enum>(2)</enum><header>Authority</header><text>In
carrying out paragraph (1), the Secretary shall—</text>
<subparagraph commented="no" id="idB62712C220064EE5999AADD54B69E821"><enum>(A)</enum><text>hold the assets to
maturity or for resale for and until such time as the Secretary determines that
the market is optimal for selling such assets, in order to maximize the value
for taxpayers; and</text>
</subparagraph><subparagraph commented="no" id="id3D2F46BCC2F44AC5871A285CFBB923A4"><enum>(B)</enum><text>sell such assets at a
price that the Secretary determines, based on available financial analysis,
will maximize return on investment for the Federal Government.</text>
</subparagraph></paragraph><paragraph commented="no" id="id4808F06E39094896A7B3CAF27D2A4EDB"><enum>(3)</enum><header>Private sector
participation</header><text>The Secretary shall encourage the private sector to
participate in purchases of troubled assets, and to invest in financial
institutions, consistent with the provisions of this section.</text>
</paragraph></subsection><subsection commented="no" id="H467000B1F2B2492A86846CD5FD4BE42C"><enum>(b)</enum><header>Use of market
mechanisms</header><text>In making purchases under this Act, the Secretary
shall—</text>
<paragraph commented="no" id="id999ACA8A600543198C81413F7B10CCD1"><enum>(1)</enum><text>make such purchases at
the lowest price that the Secretary determines to be consistent with the
purposes of this Act; and</text>
</paragraph><paragraph commented="no" id="idABF352447EBD491DB23AE7EB45E1DB84"><enum>(2)</enum><text>maximize the efficiency
of the use of taxpayer resources by using market mechanisms, including auctions
or reverse auctions, where appropriate.</text>
</paragraph></subsection><subsection commented="no" id="H01068E20BD864D55AC8B95264D67E8B3"><enum>(c)</enum><header>Direct
purchases</header><text>If the Secretary determines that use of a market
mechanism under subsection (b) is not feasible or appropriate, and the purposes
of the Act are best met through direct purchases from an individual financial
institution, the Secretary shall pursue additional measures to ensure that
prices paid for assets are reasonable and reflect the underlying value of the
asset.</text>
</subsection><subsection commented="no" id="H643B8D791E0E454CB2915FB846DF802F"><enum>(d)</enum><header>Conditions on purchase
authority for warrants and debt instruments</header>
<paragraph commented="no" id="HA754EF64D7B94303AA003CCB7058CA6B"><enum>(1)</enum><header>In
general</header><text>The Secretary may not purchase, or make any commitment to
purchase, any troubled asset under the authority of this Act, unless the
Secretary receives from the financial institution from which such assets are to
be purchased—</text>
<subparagraph commented="no" id="HC08E6D1F2E9B4BA39661879D63A289EC"><enum>(A)</enum><text>in the case of a
financial institution, the securities of which are traded on a national
securities exchange, a warrant giving the right to the Secretary to receive
nonvoting common stock or preferred stock in such financial institution, or
voting stock with respect to which, the Secretary agrees not to exercise voting
power, as the Secretary determines appropriate; or</text>
</subparagraph><subparagraph commented="no" id="H21A5D8D3A7D04C46BD4FCBC6C597BCD5"><enum>(B)</enum><text>in the case of any
financial institution other than one described in subparagraph (A), a warrant
for common or preferred stock, or a senior debt instrument from such financial
institution, as described in paragraph (2)(C).</text>
</subparagraph></paragraph><paragraph commented="no" id="H1772ECE054194FF0972C4F011CAE375E"><enum>(2)</enum><header>Terms and
conditions</header><text>The terms and conditions of any warrant or senior debt
instrument required under paragraph (1) shall meet the following
requirements:</text>
<subparagraph commented="no" id="H1DD39DCD21C14AEA80C1BF87E88BD089"><enum>(A)</enum><header>Purposes</header><text>Such
terms and conditions shall, at a minimum, be designed—</text>
<clause commented="no" id="H2EE0B5D37F5B4149AB331985B7B2C153"><enum>(i)</enum><text>to provide for reasonable
participation by the Secretary, for the benefit of taxpayers, in equity
appreciation in the case of a warrant or other equity security, or a reasonable
interest rate premium, in the case of a debt instrument; and</text>
</clause><clause id="IDeb44d54519d34690930b399224757f0d"><enum>(ii)</enum><text>to provide additional
protection for the taxpayer against losses from sale of assets by the Secretary
under this Act and the administrative expenses of the TARP.</text>
</clause></subparagraph><subparagraph commented="no" id="H7F57551D0C7141F289BE52C07B11BC32"><enum>(B)</enum><header>Authority to sell,
exercise, or surrender</header><text>The Secretary may sell, exercise, or
surrender a warrant or any senior debt instrument received under this
subsection, based on the conditions established under subparagraph (A).</text>
</subparagraph><subparagraph commented="no" id="H558B94B87F4F480FB4A3FCEF64563654"><enum>(C)</enum><header>Conversion</header><text>The
warrant shall provide that if, after the warrant is received by the Secretary
under this subsection, the financial institution that issued the warrant is no
longer listed or traded on a national securities exchange or securities
association, as described in paragraph (1)(A), such warrants shall convert to
senior debt, or contain appropriate protections for the Secretary to ensure
that the Treasury is appropriately compensated for the value of the warrant, in
an amount determined by the Secretary.</text>
</subparagraph><subparagraph commented="no" id="H7C8861BEB17B4FD88BAB6505A83BCDA7"><enum>(D)</enum><header>Protections</header><text>Any
warrant representing securities to be received by the Secretary under this
subsection shall contain anti-dilution provisions of the type employed in
capital market transactions, as determined by the Secretary. Such provisions
shall protect the value of the securities from market transactions such as
stock splits, stock distributions, dividends, and other distributions, mergers,
and other forms of reorganization or recapitalization.</text>
</subparagraph><subparagraph commented="no" id="HC8911F4477AF4998A6DFCB1E4976A605"><enum>(E)</enum><header>Exercise
price</header><text>The exercise price for any warrant issued pursuant to this
subsection shall be set by the Secretary, in the interest of the
taxpayers.</text>
</subparagraph><subparagraph commented="no" id="H1101D789E17E4A1CA792BA1EF919B38C"><enum>(F)</enum><header>Sufficiency</header><text>The
financial institution shall guarantee to the Secretary that it has authorized
shares of nonvoting stock available to fulfill its obligations under this
subsection. Should the financial institution not have sufficient authorized
shares, including preferred shares that may carry dividend rights equal to a
multiple number of common shares, the Secretary may, to the extent necessary,
accept a senior debt note in an amount, and on such terms as will compensate
the Secretary with equivalent value, in the event that a sufficient shareholder
vote to authorize the necessary additional shares cannot be obtained.</text>
</subparagraph></paragraph><paragraph commented="no" id="id869358B6A24141AEA0B3C696A551CFA8"><enum>(3)</enum><header>Exceptions</header>
<subparagraph commented="no" id="id7E3610C9266A4FE4894DBE8FA83A35A8"><enum>(A)</enum><header>De
minimis</header><text>The Secretary shall establish de minimis exceptions to
the requirements of this subsection, based on the size of the cumulative
transactions of troubled assets purchased from any one financial institution
for the duration of the program, at not more than $100,000,000.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDfdeaa39d329b42689409d706ebd72e35"><enum>(B)</enum><header>Other
exceptions</header><text>The Secretary shall establish an exception to the
requirements of this subsection and appropriate alternative requirements for
any participating financial institution that is legally prohibited from issuing
securities and debt instruments, so as not to allow circumvention of the
requirements of this section.</text>
</subparagraph></paragraph></subsection></section><section id="H8C94784D2C60438C847233BD0056A088"><enum>114.</enum><header>Market
transparency</header>
<subsection id="H379DEE31B2EC40ACA6A962B2CF37F15C"><enum>(a)</enum><header>Pricing</header><text display-inline="yes-display-inline">To facilitate market transparency, the
Secretary shall make available to the public, in electronic form, a
description, amounts, and pricing of assets acquired under this Act, within 2
business days of purchase, trade, or other disposition.</text>
</subsection><subsection commented="no" id="H0268974F49264B2FB5CD3EA7EF24D8B4"><enum>(b)</enum><header>Disclosure</header><text display-inline="yes-display-inline">For each type of financial institutions
that sells troubled assets to the Secretary under this Act, the Secretary shall
determine whether the public disclosure required for such financial
institutions with respect to off-balance sheet transactions, derivatives
instruments, contingent liabilities, and similar sources of potential exposure
is adequate to provide to the public sufficient information as to the true
financial position of the institutions. If such disclosure is not adequate for
that purpose, the Secretary shall make recommendations for additional
disclosure requirements to the relevant regulators.</text>
</subsection></section><section commented="no" id="idD37B5FD9832745079887E5EFDBEB8148"><enum>115.</enum><header>Graduated
authorization to purchase</header>
<subsection commented="no" id="idA4F160EBD5494A07B848A43CDD1D5250"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">The authority of the Secretary to purchase
troubled assets under this Act shall be limited as follows:</text>
<paragraph commented="no" id="idFA7B2F914F774B6B86CEC90F3E4A8531"><enum>(1)</enum><text>Effective upon the date
of enactment of this Act, such authority shall be limited to $250,000,000,000
outstanding at any one time.</text>
</paragraph><paragraph commented="no" id="id7C093303C101475FBB75D16B2312E09F"><enum>(2)</enum><text display-inline="yes-display-inline">If at any time, the President submits to
the Congress a written certification that the Secretary needs to exercise the
authority under this paragraph, effective upon such submission, such authority
shall be limited to $350,000,000,000 outstanding at any one time.</text>
</paragraph><paragraph commented="no" id="id40056A9F2FA34DE796123197E6BA74C4"><enum>(3)</enum><text display-inline="yes-display-inline">If, at any time after the certification in
paragraph (2) has been made, the President transmits to the Congress a written
report detailing the plan of the Secretary to exercise the authority under this
paragraph, unless there is enacted, within 15 calendar days of such
transmission, a joint resolution described in subsection (c), effective upon
the expiration of such 15-day period, such authority shall be limited to
$700,000,000,000 outstanding at any one time.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id940100C70B7A49A1BB36D089FF9B7C27"><enum>(b)</enum><header>Aggregation of purchase
prices</header><text display-inline="yes-display-inline">The amount of troubled
assets purchased by the Secretary outstanding at any one time shall be
determined for purposes of the dollar amount limitations under subsection (a)
by aggregating the purchase prices of all troubled assets held.</text>
</subsection><subsection commented="no" id="id5D9612D3126347DB9B1A2BD8CB4C2D42"><enum>(c)</enum><header>Joint resolution of
disapproval</header>
<paragraph commented="no" id="ID482303EEB3E34D328EC542B335C783D2"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of this section, the
Secretary may not exercise any authority to make purchases under this Act with
regard to any amount in excess of $350,000,000,000 previously obligated, as
described in this section if, within 15 calendar days after the date on which
Congress receives a report of the plan of the Secretary described in subsection
(a)(3), there is enacted into law a joint resolution disapproving the plan of
the Secretary with respect to such additional amount.</text>
</paragraph><paragraph commented="no" id="ID6D3232A9937040D2A2454946BE35D3D6"><enum>(2)</enum><header>Contents of joint
resolution</header><text>For the purpose of this section, the term <term>joint
resolution</term> means only a joint resolution—</text>
<subparagraph commented="no" id="idA6F3343B96AA4C9AB75DF860327D39EA"><enum>(A)</enum><text>that is introduced not
later than 3 calendar days after the date on which the report of the plan of
the Secretary referred to in subsection (a)(3) is received by Congress;</text>
</subparagraph><subparagraph id="id95DD94EEFDC747DF92059DAE20D25441"><enum>(B)</enum><text>which does not have a
preamble;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id45A3562885854D1D9C1DC7884497E0B4"><enum>(C)</enum><text>the title of which is as
follows: <quote>Joint resolution relating to the disapproval of obligations
under the <short-title>Emergency Economic Stabilization
Act of 2008</short-title></quote>; and</text>
</subparagraph><subparagraph commented="no" id="id56F629F2D8364DB9B7AC47F06487B437"><enum>(D)</enum><text>the matter after the
resolving clause of which is as follows: <quote>That Congress disapproves the
obligation of any amount exceeding the amounts obligated as described in
paragraphs (1) and (2) of section 115(a) of the
<short-title>Emergency Economic Stabilization Act of
2008</short-title>.</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idA859DB67CF624E66B368465A82CFC994"><enum>(d)</enum><header>Fast track
consideration in House of Representatives</header>
<paragraph id="id79A912745E794105B9F1508389AAEAB5"><enum>(1)</enum><header>Reconvening</header><text>Upon
receipt of a report under subsection (a)(3), the Speaker, if the House would
otherwise be adjourned, shall notify the Members of the House that, pursuant to
this section, the House shall convene not later than the second calendar day
after receipt of such report;</text>
</paragraph><paragraph id="idBC2B5E2C589947C186DC3AD08C53D1E5"><enum>(2)</enum><header>Reporting and
discharge</header><text>Any committee of the House of Representatives to which
a joint resolution is referred shall report it to the House not later than 5
calendar days after the date of receipt of the report described in subsection
(a)(3). If a committee fails to report the joint resolution within that period,
the committee shall be discharged from further consideration of the joint
resolution and the joint resolution shall be referred to the appropriate
calendar.</text>
</paragraph><paragraph id="idDE056D2DC832454582CB33324DA0DB4C"><enum>(3)</enum><header>Proceeding to
consideration</header><text>After each committee authorized to consider a joint
resolution reports it to the House or has been discharged from its
consideration, it shall be in order, not later than the sixth day after
Congress receives the report described in subsection (a)(3), to move to proceed
to consider the joint resolution in the House. All points of order against the
motion are waived. Such a motion shall not be in order after the House has
disposed of a motion to proceed on the joint resolution. The previous question
shall be considered as ordered on the motion to its adoption without
intervening motion. The motion shall not be debatable. A motion to reconsider
the vote by which the motion is disposed of shall not be in order.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE30EF39978094F288FEB2C93E9EF6F9D"><enum>(4)</enum><header>Consideration</header><text>The
joint resolution shall be considered as read. All points of order against the
joint resolution and against its consideration are waived. The previous
question shall be considered as ordered on the joint resolution to its passage
without intervening motion except two hours of debate equally divided and
controlled by the proponent and an opponent. A motion to reconsider the vote on
passage of the joint resolution shall not be in order.</text>
</paragraph></subsection><subsection commented="no" id="id96204C07D317456BB0C6165B60C96E3A"><enum>(e)</enum><header>Fast track
consideration in Senate</header>
<paragraph id="id8D32E52DA9594ED1B4C32F83B01C94BE"><enum>(1)</enum><header>Reconvening</header><text>Upon
receipt of a report under subsection (a)(3), if the Senate has adjourned or
recessed for more than 2 days, the majority leader of the Senate, after
consultation with the minority leader of the Senate, shall notify the Members
of the Senate that, pursuant to this section, the Senate shall convene not
later than the second calendar day after receipt of such message.</text>
</paragraph><paragraph commented="no" id="id142666AB949B4AC892184AB592BE9C60"><enum>(2)</enum><header>Placement on
calendar</header><text>Upon introduction in the Senate, the joint resolution
shall be placed immediately on the calendar.</text>
</paragraph><paragraph commented="no" id="ID05749AE46BE2458A9D09AEB8341032F8"><enum>(3)</enum><header>Floor
consideration</header>
<subparagraph commented="no" id="ID2D873B5ADA6E496B89D6EC9C49CFC011"><enum>(A)</enum><header>In
general</header><text>Notwithstanding Rule XXII of the Standing Rules of the
Senate, it is in order at any time during the period beginning on the 4th day
after the date on which Congress receives a report of the plan of the Secretary
described in subsection (a)(3) and ending on the 6th day after the date on
which Congress receives a report of the plan of the Secretary described in
subsection (a)(3) (even though a previous motion to the same effect has been
disagreed to) to move to proceed to the consideration of the joint resolution,
and all points of order against the joint resolution (and against consideration
of the joint resolution) are waived. The motion to proceed is not debatable.
The motion is not subject to a motion to postpone. A motion to reconsider the
vote by which the motion is agreed to or disagreed to shall not be in order. If
a motion to proceed to the consideration of the resolution is agreed to, the
joint resolution shall remain the unfinished business until disposed of.</text>
</subparagraph><subparagraph commented="no" id="ID1C1DC9BB930B4B36BF782994D80EB557"><enum>(B)</enum><header>Debate</header><text>Debate
on the joint resolution, and on all debatable motions and appeals in connection
therewith, shall be limited to not more than 10 hours, which shall be divided
equally between the majority and minority leaders or their designees. A motion
further to limit debate is in order and not debatable. An amendment to, or a
motion to postpone, or a motion to proceed to the consideration of other
business, or a motion to recommit the joint resolution is not in order.</text>
</subparagraph><subparagraph commented="no" id="ID62AC32EF7D3B40A6B0B727E915C69DF0"><enum>(C)</enum><header>Vote on
passage</header><text>The vote on passage shall occur immediately following the
conclusion of the debate on a joint resolution, and a single quorum call at the
conclusion of the debate if requested in accordance with the rules of the
Senate.</text>
</subparagraph><subparagraph commented="no" id="ID6ADB593D428240C8AE2899C00F821C22"><enum>(D)</enum><header>Rulings of the chair on
procedure</header><text>Appeals from the decisions of the Chair relating to the
application of the rules of the Senate, as the case may be, to the procedure
relating to a joint resolution shall be decided without debate.</text>
</subparagraph></paragraph></subsection><subsection id="id6EC3B0584AFB4BD581A4B5956C3B873C"><enum>(f)</enum><header>Rules relating to
Senate and House of Representatives</header>
<paragraph commented="no" id="IDA3DFA7772CD448B3BD84EF7C44EDA778"><enum>(1)</enum><header>Coordination with
action by other house</header><text>If, before the passage by one House of a
joint resolution of that House, that House receives from the other House a
joint resolution, then the following procedures shall apply:</text>
<subparagraph commented="no" id="ID66A9FA2864BC4D358A166B0BDDA2CA15"><enum>(A)</enum><text>The joint resolution of
the other House shall not be referred to a committee.</text>
</subparagraph><subparagraph commented="no" id="IDC1FD56C0EAF14721B9FB246A916976C1"><enum>(B)</enum><text>With respect to a joint
resolution of the House receiving the resolution—</text>
<clause commented="no" id="ID8A6C0611762643088B82591FEFA98E56"><enum>(i)</enum><text>the procedure in that
House shall be the same as if no joint resolution had been received from the
other House; but</text>
</clause><clause commented="no" id="ID25C0FC1DC51D4DBEBDE75C730A54C2E1"><enum>(ii)</enum><text>the vote on passage
shall be on the joint resolution of the other House.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="id4CDE81960BAA4F4A8DA3C295A329BB7F"><enum>(2)</enum><header>Treatment of joint
resolution of other House</header><text>If one House fails to introduce or
consider a joint resolution under this section, the joint resolution of the
other House shall be entitled to expedited floor procedures under this
section.</text>
</paragraph><paragraph commented="no" id="id793FF90BFA7B4DB9AAF9F5E5F3BB9CBE"><enum>(3)</enum><header>Treatment of companion
measures</header><text>If, following passage of the joint resolution in the
Senate, the Senate then receives the companion measure from the House of
Representatives, the companion measure shall not be debatable.</text>
</paragraph><paragraph id="id9996C9C9C707477FB124B10A1C6E7D56"><enum>(4)</enum><header>Consideration after
passage</header>
<subparagraph id="id38C3E0DE2EAB4255958289C5B4D02BCD"><enum>(A)</enum><header>In
general</header><text>If Congress passes a joint resolution, the period
beginning on the date the President is presented with the joint resolution and
ending on the date the President takes action with respect to the joint
resolution shall be disregarded in computing the 15-calendar day period
described in subsection (a)(3).</text>
</subparagraph><subparagraph id="id3124DBDEA33743C0B05211DF4E010527"><enum>(B)</enum><header>Vetoes</header><text>If
the President vetoes the joint resolution—</text>
<clause id="idE66AEEB3C8CB45D3B1157733F08C80CC"><enum>(i)</enum><text>the period beginning on
the date the President vetoes the joint resolution and ending on the date the
Congress receives the veto message with respect to the joint resolution shall
be disregarded in computing the 15-calendar day period described in subsection
(a)(3), and</text>
</clause><clause id="idB138CDEB37E0418BAB1D27EEEF57E03C"><enum>(ii)</enum><text>debate on a veto message
in the Senate under this section shall be 1 hour equally divided between the
majority and minority leaders or their designees.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="ID0E886CE5DC3C44FCB8474D8C5CC91C42"><enum>(5)</enum><header>Rules of house of
representatives and senate</header><text>This subsection and subsections (c),
(d), and (e) are enacted by Congress—</text>
<subparagraph commented="no" id="IDEA098FC265CC4D49B42A4C054A3DABFF"><enum>(A)</enum><text>as an exercise of the
rulemaking power of the Senate and House of Representatives, respectively, and
as such it is deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in that House in
the case of a joint resolution, and it supersedes other rules only to the
extent that it is inconsistent with such rules; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDED819FD050DE4839BDF2821B011EFE46"><enum>(B)</enum><text>with full recognition of
the constitutional right of either House to change the rules (so far as
relating to the procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that House.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H7E50F4FCD8F34CE38C04BE9888501040"><enum>116.</enum><header>Oversight and
audits</header>
<subsection commented="no" id="HFC540D17E5C64ECBA8F066FC85E1B1FC"><enum>(a)</enum><header>Comptroller General
Oversight</header>
<paragraph commented="no" id="HFDE944F270794367BEA9B28DD1D3C00"><enum>(1)</enum><header>Scope of
Oversight</header><text display-inline="yes-display-inline">The Comptroller
General of the United States shall, upon establishment of the troubled assets
relief program under this Act (in this section referred to as the
<quote>TARP</quote>), commence ongoing oversight of the activities and
performance of the TARP and of any agents and representatives of the TARP (as
related to the agent or representative’s activities on behalf of or under the
authority of the TARP), including vehicles established by the Secretary under
this Act. The subjects of such oversight shall include the following:</text>
<subparagraph commented="no" id="H80D1B06718EE49619F1FEE3601413D51"><enum>(A)</enum><text>The performance of the
TARP in meeting the purposes of this Act, particularly those involving—</text>
<clause commented="no" id="id0B4709FB26C24FE794045E40804C203C"><enum>(i)</enum><text>foreclosure
mitigation;</text>
</clause><clause commented="no" id="id31B24724B81944168375D52183DF6F9E"><enum>(ii)</enum><text>cost reduction;</text>
</clause><clause commented="no" id="idF122810157624332B32B60C749D834CF"><enum>(iii)</enum><text>whether it has provided
stability or prevented disruption to the financial markets or the banking
system; and</text>
</clause><clause commented="no" id="id696013D878354F538A60DB83ADC51B6A"><enum>(iv)</enum><text>whether it has protected
taxpayers.</text>
</clause></subparagraph><subparagraph commented="no" id="H6BA31A44E65248C693D1F9A3DE542211"><enum>(B)</enum><text>The financial condition
and internal controls of the TARP, its representatives and agents.</text>
</subparagraph><subparagraph commented="no" id="H1E3F8DA8A01B40759354E4D9C3E4588"><enum>(C)</enum><text>Characteristics of
transactions and commitments entered into, including transaction type,
frequency, size, prices paid, and all other relevant terms and conditions, and
the timing, duration and terms of any future commitments to purchase
assets.</text>
</subparagraph><subparagraph commented="no" id="HB9BE37035A4C46719CC710251CF998E"><enum>(D)</enum><text>Characteristics and
disposition of acquired assets, including type, acquisition price, current
market value, sale prices and terms, and use of proceeds from sales.</text>
</subparagraph><subparagraph commented="no" id="H7B0A34911AAB4E27AFCBA81911B12338"><enum>(E)</enum><text>Efficiency of the
operations of the TARP in the use of appropriated funds.</text>
</subparagraph><subparagraph commented="no" id="H1ED6340777804786AD1164F0BF50A070"><enum>(F)</enum><text>Compliance with all
applicable laws and regulations by the TARP, its agents and
representatives.</text>
</subparagraph><subparagraph commented="no" id="HC7212FB8F0754F1FA3A129C5E1846D32"><enum>(G)</enum><text>The efforts of the TARP
to prevent, identify, and minimize conflicts of interest involving any agent or
representative performing activities on behalf of or under the authority of the
TARP.</text>
</subparagraph><subparagraph commented="no" id="H98FCB305607B416CB208ACD5F6004768"><enum>(H)</enum><text display-inline="yes-display-inline">The efficacy of contracting procedures
pursuant to section 107(b), including, as applicable, the efforts of the TARP
in evaluating proposals for inclusion and contracting to the maximum extent
possible of minorities (as such term is defined in 1204(c) of the Financial
Institutions Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C. 1811
note), women, and minority- and women-owned businesses, including ascertaining
and reporting the total amount of fees paid and other value delivered by the
TARP to all of its agents and representatives, and such amounts paid or
delivered to such firms that are minority- and women-owned businesses (as such
terms are defined in section 21A of the Federal Home Loan Bank Act (12 U.S.C.
1441a)).</text>
</subparagraph></paragraph><paragraph commented="no" id="HA6202E8B05774646BA4CA780E10496C"><enum>(2)</enum><header>Conduct and
Administration of oversight</header>
<subparagraph commented="no" id="H75A27BBA4F9A4587B754D61CD0AF1B82"><enum>(A)</enum><header>GAO
presence</header><text display-inline="yes-display-inline">The Secretary shall
provide the Comptroller General with appropriate space and facilities in the
Department of the Treasury as necessary to facilitate oversight of the TARP
until the termination date established in section 120.</text>
</subparagraph><subparagraph commented="no" id="H76706027AFFC45EB998EDB425EFACE3B"><enum>(B)</enum><header>Access to
records</header><text>To the extent otherwise consistent with law, the
Comptroller General shall have access, upon request, to any information, data,
schedules, books, accounts, financial records, reports, files, electronic
communications, or other papers, things, or property belonging to or in use by
the TARP, or any vehicles established by the Secretary under this Act, and to
the officers, directors, employees, independent public accountants, financial
advisors, and other agents and representatives of the TARP (as related to the
agent or representative’s activities on behalf of or under the authority of the
TARP) or any such vehicle at such reasonable time as the Comptroller General
may request. The Comptroller General shall be afforded full facilities for
verifying transactions with the balances or securities held by depositaries,
fiscal agents, and custodians. The Comptroller General may make and retain
copies of such books, accounts, and other records as the Comptroller General
deems appropriate.</text>
</subparagraph><subparagraph commented="no" id="H2517E843267D472F82920891968D00D"><enum>(C)</enum><header>Reimbursement of
costs</header><text>The Treasury shall reimburse the Government Accountability
Office for the full cost of any such oversight activities as billed therefor by
the Comptroller General of the United States. Such reimbursements shall be
credited to the appropriation account “Salaries and Expenses, Government
Accountability Office” current when the payment is received and remain
available until expended.</text>
</subparagraph></paragraph><paragraph commented="no" id="H84E619D1D0A0481296D759D4C2917100"><enum>(3)</enum><header>Reporting</header><text display-inline="yes-display-inline">The Comptroller General shall submit
reports of findings under this section, regularly and no less frequently than
once every 60 days, to the appropriate committees of Congress, and the Special
Inspector General for the Troubled Asset Relief Program established under this
Act on the activities and performance of the TARP. The Comptroller may also
submit special reports under this subsection as warranted by the findings of
its oversight activities.</text>
</paragraph></subsection><subsection commented="no" id="HD2FFBD1F42C04AD584BF0199DD8D00D6"><enum>(b)</enum><header>Comptroller General
audits</header>
<paragraph commented="no" id="H25A0B37A549B4243A07D1668B19B42"><enum>(1)</enum><header>Annual
audit</header><text display-inline="yes-display-inline">The TARP shall annually
prepare and issue to the appropriate committees of Congress and the public
audited financial statements prepared in accordance with generally accepted
accounting principles, and the Comptroller General shall annually audit such
statements in accordance with generally accepted auditing standards. The
Treasury shall reimburse the Government Accountability Office for the full cost
of any such audit as billed therefor by the Comptroller General. Such
reimbursements shall be credited to the appropriation account “Salaries and
Expenses, Government Accountability Office” current when the payment is
received and remain available until expended. The financial statements prepared
under this paragraph shall be on the fiscal year basis prescribed under section
1102 of title 31, United States Code.</text>
</paragraph><paragraph commented="no" id="H3A8D5FC977CF4C96BE009795050020D"><enum>(2)</enum><header>Authority</header><text>The
Comptroller General may audit the programs, activities, receipts, expenditures,
and financial transactions of the TARP and any agents and representatives of
the TARP (as related to the agent or representative’s activities on behalf of
or under the authority of the TARP), including vehicles established by the
Secretary under this Act.</text>
</paragraph><paragraph commented="no" id="HD95B4B38F5864D24912CB5ACD8B13EC6"><enum>(3)</enum><header>Corrective responses to
audit problems</header><text>The TARP shall—</text>
<subparagraph commented="no" id="H763D3C02526A42B5A4259165D850DFDB"><enum>(A)</enum><text>take action to address
deficiencies identified by the Comptroller General or other auditor engaged by
the TARP; or</text>
</subparagraph><subparagraph commented="no" id="HBBFA3E5512364360B4611C887ECD160"><enum>(B)</enum><text>certify to appropriate
committees of Congress that no action is necessary or appropriate.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="HEC8097B04DF04416A516C30580FF8D6B"><enum>(c)</enum><header>Internal
Control</header>
<paragraph commented="no" id="HC851427AD87B4B93A821B489806A37D"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The TARP shall establish and maintain an
effective system of internal control, consistent with the standards prescribed
under <external-xref legal-doc="usc" parsable-cite="usc/31/3512">section 3512(c)</external-xref> of title 31, United States Code, that provides reasonable
assurance of—</text>
<subparagraph commented="no" id="H48BE34C33C1C4ED8A5CEF0BEEF74F05E"><enum>(A)</enum><text>the effectiveness and
efficiency of operations, including the use of the resources of the
TARP;</text>
</subparagraph><subparagraph commented="no" id="H386EC37259214BADB0A500163EA4B45"><enum>(B)</enum><text>the reliability of
financial reporting, including financial statements and other reports for
internal and external use; and</text>
</subparagraph><subparagraph commented="no" id="HBC27B8585A964653A64400B007045EB"><enum>(C)</enum><text>compliance with
applicable laws and regulations.</text>
</subparagraph></paragraph><paragraph commented="no" id="H8EBD6ABD48E04B7D861B34E5B31BC5BE"><enum>(2)</enum><header>Reporting</header><text>In
conjunction with each annual financial statement issued under this section, the
TARP shall—</text>
<subparagraph commented="no" id="H2227A0F154E145068B539FD8AFA9A2E2"><enum>(A)</enum><text>state the responsibility
of management for establishing and maintaining adequate internal control over
financial reporting; and</text>
</subparagraph><subparagraph commented="no" id="H43F906B0105B44FEA4F3701F88003BCD"><enum>(B)</enum><text>state its assessment, as
of the end of the most recent year covered by such financial statement of the
TARP, of the effectiveness of the internal control over financial
reporting.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id72C6F70F53944BDC9A5D5EFB15C79254"><enum>(d)</enum><header>Sharing of
information</header><text>Any report or audit required under this section shall
also be submitted to the Congressional Oversight Panel established under
section 125.</text>
</subsection><subsection id="id1F84EEE20C2249658BB17D4BBE86D45F"><enum>(e)</enum><header>Termination</header><text>Any
oversight, reporting, or audit requirement under this section shall terminate
on the later of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idD5E3F9348AEB4B779669805FC1672A09"><enum>(1)</enum><text>the date that the last
troubled asset acquired by the Secretary under section 101 has been sold or
transferred out of the ownership or control of the Federal Government;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE824107166274AD295F55ABBFFA20A71"><enum>(2)</enum><text>the date of expiration of
the last insurance contract issued under section 102.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HEEC44684D74B4A779213D178A91FBFD8" section-type="subsequent-section"><enum>117.</enum><header>Study and report on
margin authority</header>
<subsection commented="no" id="H0AFF47B9952245B286F1AC50B8148DA9"><enum>(a)</enum><header>Study</header><text>The
Comptroller General shall undertake a study to determine the extent to which
leverage and sudden deleveraging of financial institutions was a factor behind
the current financial crisis.</text>
</subsection><subsection commented="no" id="H15FBDF0F3F4A4991B5C06CF6F9C48499"><enum>(b)</enum><header>Content</header><text>The
study required by this section shall include—</text>
<paragraph commented="no" id="H6C534FC338BB4F8CBA53960057797504"><enum>(1)</enum><text>an analysis of the roles
and responsibilities of the Board, the Securities and Exchange Commission, the
Secretary, and other Federal banking agencies with respect to monitoring
leverage and acting to curtail excessive leveraging;</text>
</paragraph><paragraph commented="no" id="H6F378EE411B14471B3B200E316D1E7A0"><enum>(2)</enum><text>an analysis of the
authority of the Board to regulate leverage, including by setting margin
requirements, and what process the Board used to decide whether or not to use
its authority;</text>
</paragraph><paragraph commented="no" id="HEA72AF40357D4055B2C31FA131EE41AF"><enum>(3)</enum><text>an analysis of any usage
of the margin authority by the Board; and</text>
</paragraph><paragraph commented="no" id="HF39388B36520444B824600B720E2EF52"><enum>(4)</enum><text>recommendations for the
Board and appropriate committees of Congress with respect to the existing
authority of the Board.</text>
</paragraph></subsection><subsection commented="no" id="H3F818295E5AA4344A449E7D1FEB0477"><enum>(c)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than June 1, 2009, the
Comptroller General shall complete and submit a report on the study required by
this section to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of
Representatives.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idEB388D33F64C40F7B3115611D1778F9A"><enum>(d)</enum><header>Sharing of
information</header><text>Any reports required under this section shall also be
submitted to the Congressional Oversight Panel established under section
125.</text>
</subsection></section><section id="HA5B4B2703CFF4A36864145459BD34EE5"><enum>118.</enum><header>Funding</header><text display-inline="no-display-inline">For the purpose of the authorities granted
in this Act, and for the costs of administering those authorities, the
Secretary may use the proceeds of the sale of any securities issued under
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> of title 31, United States Code, and the purposes for which
securities may be issued under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> of title 31, United States Code, are
extended to include actions authorized by this Act, including the payment of
administrative expenses. Any funds expended or obligated by the Secretary for
actions authorized by this Act, including the payment of administrative
expenses, shall be deemed appropriated at the time of such expenditure or
obligation.</text>
</section><section id="idA3A89637E3D349E4AFD1C880C9D7AF48"><enum>119.</enum><header>Judicial review and
related matters</header>
<subsection id="IDfd85a85be8464729973d71d75f0f4239"><enum>(a)</enum><header>Judicial
review</header>
<paragraph id="ID737ed94bf68348b5a9ee01fda00de120"><enum>(1)</enum><header>Standard</header><text>Actions
by the Secretary pursuant to the authority of this Act shall be subject to
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/7">chapter 7</external-xref> of title 5, United States Code, including that such final actions
shall be held unlawful and set aside if found to be arbitrary, capricious, an
abuse of discretion, or not in accordance with law.</text>
</paragraph><paragraph id="ID535ff72df5984ed992bb7d8171182385"><enum>(2)</enum><header>Limitations on
equitable relief</header>
<subparagraph id="ID2f165cf3a789458ca676681c7735a77e"><enum>(A)</enum><header>Injunction</header><text>No
injunction or other form of equitable relief shall be issued against the
Secretary for actions pursuant to section 101, 102, 106, and 109, other than to
remedy a violation of the Constitution.</text>
</subparagraph><subparagraph id="ID711be2a1c981420ca3f3ce7f9417d255"><enum>(B)</enum><header>Temporary restraining
order</header><text>Any request for a temporary restraining order against the
Secretary for actions pursuant to this Act shall be considered and granted or
denied by the court within 3 days of the date of the request.</text>
</subparagraph><subparagraph id="IDe58c31c6314c4d339a9fbe4eedaa7d15"><enum>(C)</enum><header>Preliminary
injunction</header><text>Any request for a preliminary injunction against the
Secretary for actions pursuant to this Act shall be considered and granted or
denied by the court on an expedited basis consistent with the provisions of
rule 65(b)(3) of the Federal Rules of Civil Procedure, or any successor
thereto.</text>
</subparagraph><subparagraph id="ID393898196fa9480a8abad71c5da05250"><enum>(D)</enum><header>Permanent
injunction</header><text>Any request for a permanent injunction against the
Secretary for actions pursuant to this Act shall be considered and granted or
denied by the court on an expedited basis. Whenever possible, the court shall
consolidate trial on the merits with any hearing on a request for a preliminary
injunction, consistent with the provisions of rule 65(a)(2) of the Federal
Rules of Civil Procedure, or any successor thereto.</text>
</subparagraph></paragraph><paragraph id="ID85cd1e6f23e2446f824770a31f772aba"><enum>(3)</enum><header>Limitation on actions
by participating companies</header><text>No action or claims may be brought
against the Secretary by any person that divests its assets with respect to its
participation in a program under this Act, except as provided in paragraph (1),
other than as expressly provided in a written contract with the
Secretary.</text>
</paragraph><paragraph id="IDa7bad5b1964246508ed50902720918f4"><enum>(4)</enum><header>Stays</header><text>Any
injunction or other form of equitable relief issued against the Secretary for
actions pursuant to section 101, 102, 106, and 109, shall be automatically
stayed. The stay shall be lifted unless the Secretary seeks a stay from a
higher court within 3 calendar days after the date on which the relief is
issued.</text>
</paragraph></subsection><subsection id="IDbd16a1fb29184a9f99c1502762423866"><enum>(b)</enum><header>Related
matters</header>
<paragraph commented="no" id="ID82bb797544d34326ac01f31a31d35593"><enum>(1)</enum><header>Treatment of
homeowners' rights</header><text>The terms of any residential mortgage loan
that is part of any purchase by the Secretary under this Act shall remain
subject to all claims and defenses that would otherwise apply, notwithstanding
the exercise of authority by the Secretary under this Act.</text>
</paragraph><paragraph id="ID7c7bd03d381c4e2ea6b91ad2db16f9ab"><enum>(2)</enum><header>Savings
clause</header><text>Any exercise of the authority of the Secretary pursuant to
this Act shall not impair the claims or defenses that would otherwise apply
with respect to persons other than the Secretary. Except as established in any
contract, a servicer of pooled residential mortgages owes any duty to determine
whether the net present value of the payments on the loan, as modified, is
likely to be greater than the anticipated net recovery that would result from
foreclosure to all investors and holders of beneficial interests in such
investment, but not to any individual or groups of investors or beneficial
interest holders, and shall be deemed to act in the best interests of all such
investors or holders of beneficial interests if the servicer agrees to or
implements a modification or workout plan when the servicer takes reasonable
loss mitigation actions, including partial payments.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HEFC14F3DB8104D74B039C7CD89B4CB6" section-type="subsequent-section"><enum>120.</enum><header>Termination of
authority</header>
<subsection id="H4F21B1FF505C4057A159D6E345E8DBB"><enum>(a)</enum><header>Termination</header><text display-inline="yes-display-inline">The authorities provided under sections
101(a), excluding section 101(a)(3), and 102 shall terminate on December 31,
2009.</text>
</subsection><subsection id="H5CC9121102244F6DB73BCD5876447EE2"><enum>(b)</enum><header>Extension upon
certification</header><text display-inline="yes-display-inline">The Secretary,
upon submission of a written certification to Congress, may extend the
authority provided under this Act to expire not later than 2 years from the
date of enactment of this Act. Such certification shall include a justification
of why the extension is necessary to assist American families and stabilize
financial markets, as well as the expected cost to the taxpayers for such an
extension.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HF6B9710DB26542A796B3A951D9B4A96C" section-type="subsequent-section"><enum>121.</enum><header>Special Inspector
General for the Troubled Asset Relief Program</header>
<subsection commented="no" id="H6F6552EAC0BB4C018775D7FEAD03B765"><enum>(a)</enum><header>Office of Inspector
General</header><text>There is hereby established the Office of the Special
Inspector General for the Troubled Asset Relief Program.</text>
</subsection><subsection commented="no" id="H37842AF32B92405381DFB3CC77628C66"><enum>(b)</enum><header>Appointment of
Inspector General; removal</header><paragraph commented="no" display-inline="yes-display-inline" id="HD5696747B6D44E3DAAEE00CA1E39EBBB"><enum>(1)</enum><text>The head of the Office
of the Special Inspector General for the Troubled Asset Relief Program is the
Special Inspector General for the Troubled Asset Relief Program (in this
section referred to as the <quote>Special Inspector General</quote>), who shall
be appointed by the President, by and with the advice and consent of the
Senate.</text>
</paragraph><paragraph changed="added" commented="no" id="H35CB50655FD140A2A0CC402D18774C04" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The appointment of the
Special Inspector General shall be made on the basis of integrity and
demonstrated ability in accounting, auditing, financial analysis, law,
management analysis, public administration, or investigations.</text>
</paragraph><paragraph changed="added" commented="no" id="H8F93ACD3540D49A7B34EC0DB178221D8" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The nomination of an
individual as Special Inspector General shall be made as soon as practicable
after the establishment of any program under sections 101 and 102.</text>
</paragraph><paragraph changed="added" commented="no" id="HFF71BAFF7E2544D6AD004745A83C5C00" indent="up1" reported-display-style="italic"><enum>(4)</enum><text>The Special Inspector
General shall be removable from office in accordance with the provisions of
<external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3(b)</external-xref> of the Inspector General Act of 1978 (5 U.S.C. App.).</text>
</paragraph><paragraph changed="added" commented="no" id="HA2B1ABBA322C4889AF6CBBD625168E5B" indent="up1" reported-display-style="italic"><enum>(5)</enum><text>For purposes of section
7324 of title 5, United States Code, the Special Inspector General shall not be
considered an employee who determines policies to be pursued by the United
States in the nationwide administration of Federal law.</text>
</paragraph><paragraph changed="added" commented="no" id="HFC70C47E8FAD4CD0A5106B179456D485" indent="up1" reported-display-style="italic"><enum>(6)</enum><text>The annual rate of basic
pay of the Special Inspector General shall be the annual rate of basic pay for
an Inspector General under <external-xref legal-doc="usc-act" parsable-cite="usc-act/Inspector General Act of 1978 /3">section 3(e)</external-xref> of the Inspector General Act of 1978 (5
U.S.C. App.).</text>
</paragraph></subsection><subsection commented="no" id="H13CFD12E2D6045929277E8854BE60800"><enum>(c)</enum><header>Duties</header><paragraph commented="no" display-inline="yes-display-inline" id="H066AB0AB859A4C4F8CB1D2FCE41BB214"><enum>(1)</enum><text>It shall be the duty of
the Special Inspector General to conduct, supervise, and coordinate audits and
investigations of the purchase, management, and sale of assets by the Secretary
of the Treasury under any program established by the Secretary under section
101, and the management by the Secretary of any program established under
section 102, including by collecting and summarizing the following
information:</text>
<subparagraph changed="added" commented="no" id="HD57E442555464BA8BA050800F1C7654D" indent="up1" reported-display-style="italic"><enum>(A)</enum><text>A description of the
categories of troubled assets purchased or otherwise procured by the
Secretary.</text>
</subparagraph><subparagraph changed="added" commented="no" id="HBE344C4B69A940C281D09B6F584F08D9" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>A listing of the troubled
assets purchased in each such category described under subparagraph (A).</text>
</subparagraph><subparagraph changed="added" commented="no" id="HA8EB6062F4EA43BD81AEB0752E68C5E" indent="up1" reported-display-style="italic"><enum>(C)</enum><text>An
explanation of the reasons the Secretary deemed it necessary to purchase each
such troubled asset.</text>
</subparagraph><subparagraph changed="added" commented="no" id="H5742D83AA94F4E23975917D3E2A17DF2" indent="up1" reported-display-style="italic"><enum>(D)</enum><text>A listing of each
financial institution that such troubled assets were purchased from.</text>
</subparagraph><subparagraph changed="added" commented="no" id="HADC934C194E64D31BF5978AE24CEEEF" indent="up1" reported-display-style="italic"><enum>(E)</enum><text>A
listing of and detailed biographical information on each person or entity hired
to manage such troubled assets.</text>
</subparagraph><subparagraph changed="added" commented="no" id="HB67F39AB9BC74975B94FAEE6BCDA3CFE" indent="up1" reported-display-style="italic"><enum>(F)</enum><text>A current estimate of the
total amount of troubled assets purchased pursuant to any program established
under section 101, the amount of troubled assets on the books of the Treasury,
the amount of troubled assets sold, and the profit and loss incurred on each
sale or disposition of each such troubled asset.</text>
</subparagraph><subparagraph changed="added" commented="no" id="idEEFBF6ED70F94074B60964CCF16C0FBD" indent="up1" reported-display-style="italic"><enum>(G)</enum><text>A listing of the
insurance contracts issued under section 102.</text>
</subparagraph></paragraph><paragraph changed="added" commented="no" id="HE0773E1176F44752B142CAAD9156B1AB" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector
General shall establish, maintain, and oversee such systems, procedures, and
controls as the Special Inspector General considers appropriate to discharge
the duty under paragraph (1).</text>
</paragraph><paragraph changed="added" commented="no" id="H545E0A5618C44513B94DFC5398EF25EB" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>In addition to the duties
specified in paragraphs (1) and (2), the Inspector General shall also have the
duties and responsibilities of inspectors general under the Inspector General
Act of 1978.</text>
</paragraph></subsection><subsection commented="no" id="H9288419FCEF54E6096FA197DAE36E413"><enum>(d)</enum><header>Powers and
authorities</header><paragraph commented="no" display-inline="yes-display-inline" id="H7D16601DD83B4249960484CE00A74F96"><enum>(1)</enum><text>In carrying out the
duties specified in subsection (c), the Special Inspector General shall have
the authorities provided in section 6 of the Inspector General Act of
1978.</text>
</paragraph><paragraph changed="added" commented="no" id="H62D24C238E994CEA921FB87839FF00F6" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector
General shall carry out the duties specified in subsection (c)(1) in accordance
with section 4(b)(1) of the Inspector General Act of 1978.</text>
</paragraph></subsection><subsection commented="no" id="HAE7ACF34BBA14737B366DCE124397F36"><enum>(e)</enum><header>Personnel, facilities,
and other resources</header><paragraph commented="no" display-inline="yes-display-inline" id="H6C1EB49C7FDB4E08926B379B25F915CF"><enum>(1)</enum><text>The Special Inspector
General may select, appoint, and employ such officers and employees as may be
necessary for carrying out the duties of the Special Inspector General, subject
to the provisions of title 5, United States Code, governing appointments in the
competitive service, and the provisions of chapter 51 and subchapter III of
chapter 53 of such title, relating to classification and General Schedule pay
rates.</text>
</paragraph><paragraph changed="added" commented="no" id="HF646E4B8B0D44A2E8FF3431BB65242D" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The Special Inspector
General may obtain services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109</external-xref> of title 5, United
States Code, at daily rates not to exceed the equivalent rate prescribed for
grade GS–15 of the General Schedule by section 5332 of such title.</text>
</paragraph><paragraph changed="added" commented="no" id="H9030DBEE3A7641CE88C1BDC37BC6D49" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The Special Inspector
General may enter into contracts and other arrangements for audits, studies,
analyses, and other services with public agencies and with private persons, and
make such payments as may be necessary to carry out the duties of the Inspector
General.</text>
</paragraph><paragraph changed="added" commented="no" id="H68FCB1341AA34AF78B421FF2F98727E3" indent="up1" reported-display-style="italic"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HEB6D1521946F4F1DB6B480F7A8EFA197"><enum>(A)</enum><text>Upon request of the
Special Inspector General for information or assistance from any department,
agency, or other entity of the Federal Government, the head of such entity
shall, insofar as is practicable and not in contravention of any existing law,
furnish such information or assistance to the Special Inspector General, or an
authorized designee.</text>
</subparagraph><subparagraph changed="added" commented="no" id="H3D27224BEF6B45FAB3BE62A58CF4A7D9" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>Whenever information or
assistance requested by the Special Inspector General is, in the judgment of
the Special Inspector General, unreasonably refused or not provided, the
Special Inspector General shall report the circumstances to the appropriate
committees of Congress without delay.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H5A58A18FB3A944DEB4E0957C2F6244"><enum>(f)</enum><header>Reports</header><paragraph commented="no" display-inline="yes-display-inline" id="H8612D479217741F1A3A6FAC998ED004F"><enum>(1)</enum><text>Not later than 60 days
after the confirmation of the Special Inspector General, and every calendar
quarter thereafter, the Special Inspector General shall submit to the
appropriate committees of Congress a report summarizing the activities of the
Special Inspector General during the 120-day period ending on the date of such
report. Each report shall include, for the period covered by such report, a
detailed statement of all purchases, obligations, expenditures, and revenues
associated with any program established by the Secretary of the Treasury under
sections 101 and 102, as well as the information collected under subsection
(c)(1).</text>
</paragraph><paragraph changed="added" commented="no" id="HFC58BAAFC17041DD8FC76B6FB4A4FA96" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>Nothing in this
subsection shall be construed to authorize the public disclosure of information
that is—</text>
<subparagraph commented="no" id="H6056CCCE3A5B490B88682E766344B6BF"><enum>(A)</enum><text>specifically prohibited
from disclosure by any other provision of law;</text>
</subparagraph><subparagraph commented="no" id="HC59B381515374CA885AB2207477C1B3E"><enum>(B)</enum><text>specifically required by
Executive order to be protected from disclosure in the interest of national
defense or national security or in the conduct of foreign affairs; or</text>
</subparagraph><subparagraph commented="no" id="HC1476DF1D5284F649BF4F1EF374E14D3"><enum>(C)</enum><text>a part of an ongoing
criminal investigation.</text>
</subparagraph></paragraph><paragraph changed="added" commented="no" id="id2CFEC063F4394919AE6B3C6F670A1F48" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>Any reports required
under this section shall also be submitted to the Congressional Oversight Panel
established under section 125.</text>
</paragraph></subsection><subsection commented="no" id="H5EF2689BD1BF41279EE1D9BB5600A54E"><enum>(g)</enum><header>Funding</header><paragraph commented="no" display-inline="yes-display-inline" id="H63D1840806D545949EE400F91FB3C5BB"><enum>(1)</enum><text>Of the amounts made
available to the Secretary of the Treasury under section 118, $50,000,000 shall
be available to the Special Inspector General to carry out this section.</text>
</paragraph><paragraph changed="added" commented="no" id="H192AE5504C474646AD3423748D9C6B36" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The amount available
under paragraph (1) shall remain available until expended.</text>
</paragraph></subsection><subsection id="id8FB78ACF2FF04342888EC7DA6303FE02"><enum>(h)</enum><header>Termination</header><text>The
Office of the Special Inspector General shall terminate on the later of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8B76BE5850914689AD5A96A29D3A5AEE"><enum>(1)</enum><text>the date that the last
troubled asset acquired by the Secretary under section 101 has been sold or
transferred out of the ownership or control of the Federal Government;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC01502DAB38E48CE8CAA231B812B897D"><enum>(2)</enum><text>the date of expiration of
the last insurance contract issued under section 102.</text>
</paragraph></subsection></section><section id="H75584626FCB3489CA6A50022952EDEEE"><enum>122.</enum><header>Increase in statutory
limit on the public debt</header><text display-inline="no-display-inline">Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/31/3101">section 3101</external-xref> of title 31,
United States Code, is amended by striking out the dollar limitation contained
in such subsection and inserting <quote>$11,315,000,000,000</quote>.</text>
</section><section id="HFCBFC12D1FC845D79F7F83CBD51DE137"><enum>123.</enum><header>Credit reform</header>
<subsection id="HC0851EDDA7444206B82F3FAA8817E7D1"><enum>(a)</enum><header>In
General</header><text display-inline="yes-display-inline">Subject to subsection
(b), the costs of purchases of troubled assets made under section 101(a) and
guarantees of troubled assets under section 102, and any cash flows associated
with the activities authorized in section 102 and subsections (a), (b), and (c)
of section 106 shall be determined as provided under the Federal Credit Reform
Act of 1990 (2 U.S.C. 661 et. seq.).</text>
</subsection><subsection id="H5F19FA5D681E48D0AA50FABA505E53FB"><enum>(b)</enum><header>Costs</header><text>For
the purposes of section 502(5) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a(5))—</text>
<paragraph id="HA6EFC3AD1A494E9400B3D5FF04385718"><enum>(1)</enum><text>the cost of troubled
assets and guarantees of troubled assets shall be calculated by adjusting the
discount rate in section 502(5)(E) (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)(E)</external-xref>) for market risks;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H255A02BFA6A74F5097891E38B2988938"><enum>(2)</enum><text>the cost of a
modification of a troubled asset or guarantee of a troubled asset shall be the
difference between the current estimate consistent with paragraph (1) under the
terms of the troubled asset or guarantee of the troubled asset and the current
estimate consistent with paragraph (1) under the terms of the troubled asset or
guarantee of the troubled asset, as modified.</text>
</paragraph></subsection></section><section commented="no" id="H24D2182264CA45BC8D20F8CD913E29"><enum>124.</enum><header>HOPE for Homeowners
amendments</header><text display-inline="no-display-inline">Section 257 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-23">12 U.S.C. 1715z–23</external-xref>) is amended—</text>
<paragraph commented="no" id="id463BAED828C940598965F5FF04E296B1"><enum>(1)</enum><text>in subsection (e)—</text>
<subparagraph commented="no" id="H64CEFB69877149059536A72634002F30"><enum>(A)</enum><text>in paragraph (1)(B), by
inserting before <quote>a ratio</quote> the following: <quote>, or thereafter
is likely to have, due to the terms of the mortgage being
reset,</quote>;</text>
</subparagraph><subparagraph commented="no" id="H09C281FD20CB4E5C89C0F8DE9EEED56C"><enum>(B)</enum><text>in paragraph (2)(B), by
inserting before the period at the end <quote>(or such higher percentage as the
Board determines, in the discretion of the Board)</quote>;</text>
</subparagraph><subparagraph commented="no" id="idB3E08D95EC10486DAD37A11DA94623ED"><enum>(C)</enum><text>in paragraph
(4)(A)—</text>
<clause commented="no" id="id6D4903A871B040108F508EFDFD3EAEE8"><enum>(i)</enum><text>in the first sentence, by
inserting after <quote>insured loan</quote> the following: <quote>and any
payments made under this paragraph,</quote>; and</text>
</clause><clause commented="no" id="id413301A7100D4383A9C4419FE0673DC9"><enum>(ii)</enum><text>by adding at the end the
following: <quote>Such actions may include making payments, which shall be
accepted as payment in full of all indebtedness under the eligible mortgage, to
any holder of an existing subordinate mortgage, in lieu of any future
appreciation payments authorized under subparagraph (B).</quote>; and</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id09FD0A5A10884FC7813A6F2319985CE5"><enum>(2)</enum><text>in subsection (w), by
inserting after <quote>administrative costs</quote> the following: <quote>and
payments pursuant to subsection (e)(4)(A)</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HE85DCF2855824418B3DA887B390203D8" section-type="subsequent-section"><enum>125.</enum><header>Congressional
Oversight Panel</header>
<subsection commented="no" id="H6577E08326B249B689D8031F54514B6C"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is hereby established the
Congressional Oversight Panel (hereafter in this section referred to as the
<quote>Oversight Panel</quote>) as an establishment in the legislative
branch.</text>
</subsection><subsection commented="no" id="H24F69401D2CB4AD2991F2BD4895FE5C4"><enum>(b)</enum><header>Duties</header><text>The
Oversight Panel shall review the current state of the financial markets and the
regulatory system and submit the following reports to Congress:</text>
<paragraph commented="no" id="id3C088EF871C84837AB9ACECEBD01DE89"><enum>(1)</enum><header>Regular
reports</header>
<subparagraph commented="no" id="idF7A424EA05344C41B05B7E6590CD8E0E"><enum>(A)</enum><header>In
general</header><text>Regular reports of the Oversight Panel shall include the
following:</text>
<clause commented="no" id="id31CE15E2CC014FB78600568FB9F27B94"><enum>(i)</enum><text>The use by the Secretary
of authority under this Act, including with respect to the use of contracting
authority and administration of the program.</text>
</clause><clause commented="no" id="idEB34643F540D4DD480FD2391C1677E00"><enum>(ii)</enum><text>The impact of purchases
made under the Act on the financial markets and financial institutions.</text>
</clause><clause commented="no" id="id802FABA397364868A7211661952415EF"><enum>(iii)</enum><text>The extent to which the
information made available on transactions under the program has contributed to
market transparency.</text>
</clause><clause commented="no" id="idACD07B10DFD64411948CDE6571F00BB0"><enum>(iv)</enum><text>The effectiveness of
foreclosure mitigation efforts, and the effectiveness of the program from the
standpoint of minimizing long-term costs to the taxpayers and maximizing the
benefits for taxpayers.</text>
</clause></subparagraph><subparagraph commented="no" id="idC1EF0570913D49B392468D428817B50D"><enum>(B)</enum><header>Timing</header><text>The
reports required under this paragraph shall be submitted not later than 30 days
after the first exercise by the Secretary of the authority under section 101(a)
or 102, and every 30 days thereafter.</text>
</subparagraph></paragraph><paragraph commented="no" id="id6ECF9F49E9404B7980E2BDF6E547CC2F"><enum>(2)</enum><header>Special report on
regulatory reform</header><text>The Oversight Panel shall submit a special
report on regulatory reform not later than January 20, 2009, analyzing the
current state of the regulatory system and its effectiveness at overseeing the
participants in the financial system and protecting consumers, and providing
recommendations for improvement, including recommendations regarding whether
any participants in the financial markets that are currently outside the
regulatory system should become subject to the regulatory system, the rationale
underlying such recommendation, and whether there are any gaps in existing
consumer protections.</text>
</paragraph></subsection><subsection commented="no" id="H24F09555062C45A3AA970079C85B3326"><enum>(c)</enum><header>Membership</header>
<paragraph id="id55839F8053C94670AC529356A483C56F"><enum>(1)</enum><header>In
general</header><text>The Oversight Panel shall consist of 5 members, as
follows:</text>
<subparagraph id="id164FD86BB8384B018A06A5D5EB63F728"><enum>(A)</enum><text>1 member appointed by the
Speaker of the House of Representatives.</text>
</subparagraph><subparagraph id="idA34F21B6928C4DF18618E019F9A2C9E1"><enum>(B)</enum><text>1 member appointed by the
minority leader of the House of Representatives.</text>
</subparagraph><subparagraph id="idA535125FEB9C43E9A1E6775478E2D597"><enum>(C)</enum><text>1 member appointed by the
majority leader of the Senate.</text>
</subparagraph><subparagraph id="idB56093B1E68342999F8EF5BB9CAF8D8D"><enum>(D)</enum><text>1 member appointed by the
minority leader of the Senate.</text>
</subparagraph><subparagraph id="id07B6A1C6AE2C444D8FC58116197B780F"><enum>(E)</enum><text>1 member appointed by the
Speaker of the House of Representatives and the majority leader of the Senate,
after consultation with the minority leader of the Senate and the minority
leader of the House of Representatives.</text>
</subparagraph></paragraph><paragraph commented="no" id="HA385A565F399408B934D546851C3CA4C"><enum>(2)</enum><header>Pay</header><text>Each
member of the Oversight Panel shall each be paid at a rate equal to the daily
equivalent of the annual rate of basic pay for level I of the Executive
Schedule for each day (including travel time) during which such member is
engaged in the actual performance of duties vested in the Commission.</text>
</paragraph><paragraph id="idA2AB1B7BD1C64806BE80F30B88C1795F"><enum>(3)</enum><header>Prohibition of
compensation of federal employees</header><text>Members of the Oversight Panel
who are full-time officers or employees of the United States or Members of
Congress may not receive additional pay, allowances, or benefits by reason of
their service on the Oversight Panel.</text>
</paragraph><paragraph commented="no" id="id72CC433F664447909A3D5B77B21FA187"><enum>(4)</enum><header>Travel
expenses</header><text>Each member shall receive travel expenses, including per
diem in lieu of subsistence, in accordance with applicable provisions under
subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code.</text>
</paragraph><paragraph commented="no" id="id372A1103F38442358F248EC5E7946466"><enum>(5)</enum><header>Quorum</header><text>Four
members of the Oversight Panel shall constitute a quorum but a lesser number
may hold hearings.</text>
</paragraph><paragraph commented="no" id="id132EC4EA966F4599AB9E3AAABCC6E7F2"><enum>(6)</enum><header>Vacancies</header><text>A
vacancy on the Oversight Panel shall be filled in the manner in which the
original appointment was made.</text>
</paragraph><paragraph commented="no" id="H8E5245BB64064B7FA0A6FA1ED1507C8E"><enum>(7)</enum><header>Meetings</header><text>The
Oversight Panel shall meet at the call of the Chairperson or a majority of its
members.</text>
</paragraph></subsection><subsection commented="no" id="HD27A904D0D48424493CCC3871893D94F"><enum>(d)</enum><header>Staff</header>
<paragraph commented="no" id="H035D6843993B42A4AE5F65A2D6B10073"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Oversight Panel
may appoint and fix the pay of any personnel as the Commission considers
appropriate.</text>
</paragraph><paragraph commented="no" id="HF088059385564FF9B63366C450FF176F"><enum>(2)</enum><header>Experts and
consultants</header><text>The Oversight Panel may procure temporary and
intermittent services under <external-xref legal-doc="usc" parsable-cite="usc/5/3109">section 3109(b)</external-xref> of title 5, United States
Code.</text>
</paragraph><paragraph commented="no" id="H663367B48DFF473B82482E33C59C691C"><enum>(3)</enum><header>Staff of
agencies</header><text>Upon request of the Oversight Panel, the head of any
Federal department or agency may detail, on a reimbursable basis, any of the
personnel of that department or agency to the Oversight Panel to assist it in
carrying out its duties under this Act.</text>
</paragraph></subsection><subsection commented="no" id="id5CC4BAD858574AD3A19CA3DCD90EED2E"><enum>(e)</enum><header>Powers</header>
<paragraph commented="no" id="IDd004d0bdd2b544c3a7f468d2266fdc98"><enum>(1)</enum><header>Hearings and
sessions</header><text>The Oversight Panel may, for the purpose of carrying out
this section, hold hearings, sit and act at times and places, take testimony,
and receive evidence as the Panel considers appropriate and may administer
oaths or affirmations to witnesses appearing before it.</text>
</paragraph><paragraph commented="no" id="IDec335c654dfd48758e078784849e1370"><enum>(2)</enum><header>Powers of members and
agents</header><text>Any member or agent of the Oversight Panel may, if
authorized by the Oversight Panel, take any action which the Oversight Panel is
authorized to take by this section.</text>
</paragraph><paragraph commented="no" id="ID2a7e8d1835ff48559c448d66c9d212a1"><enum>(3)</enum><header>Obtaining Official
Data</header><text>The Oversight Panel may secure directly from any department
or agency of the United States information necessary to enable it to carry out
this section. Upon request of the Chairperson of the Oversight Panel, the head
of that department or agency shall furnish that information to the Oversight
Panel.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDa7c8951f7d0d4c4caf2ba1b695cd9e5c"><enum>(4)</enum><header>Reports</header><text>The
Oversight Panel shall receive and consider all reports required to be submitted
to the Oversight Panel under this Act.</text>
</paragraph></subsection><subsection commented="no" id="H4101F5A1C9204EE3B833D6DD803AEFD"><enum>(f)</enum><header>Termination</header><text>The
Oversight Panel shall terminate 6 months after the termination date specified
in section 120.</text>
</subsection><subsection commented="no" id="H9D361DC476674B978602C71DFBCE2023"><enum>(g)</enum><header>Funding for
expenses</header>
<paragraph commented="no" id="H5E20266F09CB4FE2B4933696EFCCCAE6"><enum>(1)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated to the Oversight Panel such sums as may be
necessary for any fiscal year, half of which shall be derived from the
applicable account of the House of Representatives, and half of which shall be
derived from the contingent fund of the Senate.</text>
</paragraph><paragraph commented="no" id="HB3338025D0584DBB0034DAEAEBE1C00"><enum>(2)</enum><header>Reimbursement of
amounts</header><text>An amount equal to the expenses of the Oversight Panel
shall be promptly transferred by the Secretary, from time to time upon the
presentment of a statement of such expenses by the Chairperson of the Oversight
Panel, from funds made available to the Secretary under this Act to the
applicable fund of the House of Representatives and the contingent fund of the
Senate, as appropriate, as reimbursement for amounts expended from such account
and fund under paragraph (1).</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HB43D615581D84458B94CBAB400B50024" section-type="subsequent-section"><enum>126.</enum><header>FDIC
authority</header>
<subsection id="HA9428FDA6B8D4014A2D5402629622B3E"><enum>(a)</enum><header>In
General</header><text>Section 18(a) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C.
1828(a)) is amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="Federal" changed="added" id="H3A8080EC927546B5A87318A649A9CAC2" reported-display-style="italic" style="OLC">
<paragraph id="H802BC9205638415E981E6D7FAA00BAD"><enum>(4)</enum><header>False advertising,
misuse of fdic names, and misrepresentation to indicate insured status</header>
<subparagraph id="H109786F8E1004565B1F900C6674358C9"><enum>(A)</enum><header>Prohibition on false
advertising and misuse of fdic names</header><text>No person may represent or
imply that any deposit liability, obligation, certificate, or share is insured
or guaranteed by the Corporation, if such deposit liability, obligation,
certificate, or share is not insured or guaranteed by the Corporation—</text>
<clause id="HEF6F2FCF2C2A479F97ECF9B1E9E96F00"><enum>(i)</enum><text>by using the terms
<term>Federal Deposit</term>, <term>Federal Deposit Insurance</term>,
<term>Federal Deposit Insurance Corporation</term>, any combination of such
terms, or the abbreviation <quote>FDIC</quote> as part of the business name or
firm name of any person, including any corporation, partnership, business
trust, association, or other business entity; or</text>
</clause><clause id="HE3E9AA2B2D9F4436A141EE8ED276757"><enum>(ii)</enum><text>by using such terms or
any other terms, sign, or symbol as part of an advertisement, solicitation, or
other document.</text>
</clause></subparagraph><subparagraph id="HAE1DF56F07E14A9F8F00FBF01C952256"><enum>(B)</enum><header>Prohibition on
misrepresentations of insured status</header><text>No person may knowingly
misrepresent—</text>
<clause id="HE5F0783ECB76463C80C767D9C1BD7AF"><enum>(i)</enum><text>that any deposit
liability, obligation, certificate, or share is insured, under this Act, if
such deposit liability, obligation, certificate, or share is not so insured;
or</text>
</clause><clause id="HD827FAA6A8D04D02B2E5002D31D47E6D"><enum>(ii)</enum><text>the extent to which or
the manner in which any deposit liability, obligation, certificate, or share is
insured under this Act, if such deposit liability, obligation, certificate, or
share is not so insured, to the extent or in the manner represented.</text>
</clause></subparagraph><subparagraph id="H487AED67B98E473593FE0082A195934C"><enum>(C)</enum><header>Authority of the
appropriate federal banking agency</header><text>The appropriate Federal
banking agency shall have enforcement authority in the case of a violation of
this paragraph by any person for which the agency is the appropriate Federal
banking agency, or any institution-affiliated party thereof.</text>
</subparagraph><subparagraph id="H39E65998F26C49FC991EAC5D60246C34"><enum>(D)</enum><header>Corporation authority
if the appropriate federal banking agency fails to follow
recommendation</header>
<clause id="HC88B0A5E267D44AB92BF8CF6A471EBD0"><enum>(i)</enum><header>Recommendation</header><text display-inline="yes-display-inline">The Corporation may recommend in writing to
the appropriate Federal banking agency that the agency take any enforcement
action authorized under section 8 for purposes of enforcement of this paragraph
with respect to any person for which the agency is the appropriate Federal
banking agency or any institution-affiliated party thereof.</text>
</clause><clause id="H645100DAD9AA429C83B768771F00F692"><enum>(ii)</enum><header>Agency
response</header><text>If the appropriate Federal banking agency does not,
within 30 days of the date of receipt of a recommendation under clause (i),
take the enforcement action with respect to this paragraph recommended by the
Corporation or provide a plan acceptable to the Corporation for responding to
the situation presented, the Corporation may take the recommended enforcement
action against such person or institution-affiliated party.</text>
</clause></subparagraph><subparagraph id="HE367441424B44B9DA9F015FE6DF2CD0"><enum>(E)</enum><header>Additional
authority</header><text>In addition to its authority under subparagraphs (C)
and (D), for purposes of this paragraph, the Corporation shall have, in the
same manner and to the same extent as with respect to a State nonmember insured
bank—</text>
<clause id="H8A5FCF766C444AA4944F4F2310BD9120"><enum>(i)</enum><text>jurisdiction over—</text>
<subclause id="HA5DFFB46A24847D59BDF496DF0AF7859"><enum>(I)</enum><text display-inline="yes-display-inline">any person other than a person for which
another agency is the appropriate Federal banking agency or any
institution-affiliated party thereof; and</text>
</subclause><subclause id="HDC5DAC8F4D37425B8C26E5DEE1C98388"><enum>(II)</enum><text>any person that aids or
abets a violation of this paragraph by a person described in subclause (I);
and</text>
</subclause></clause><clause id="H53DB1BBABC734E1DB898ACA99613F360"><enum>(ii)</enum><text display-inline="yes-display-inline">for purposes of enforcing the requirements
of this paragraph, the authority of the Corporation under—</text>
<subclause id="H63C93EAA0D264F14912F7882E2B9F87"><enum>(I)</enum><text>section 10(c) to conduct
investigations; and</text>
</subclause><subclause id="H23FF3FF3A6C04CF8B1F88C39D9FC795F"><enum>(II)</enum><text>subsections (b), (c),
(d) and (i) of section 8 to conduct enforcement actions.</text>
</subclause></clause></subparagraph><subparagraph id="HE539AF929B054C92BF2BD2F2EA9CD29F"><enum>(F)</enum><header>Other actions
preserved</header><text>No provision of this paragraph shall be construed as
barring any action otherwise available, under the laws of the United States or
any State, to any Federal or State agency or
individual.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA530B03534164D249C01BDAD594CA665"><enum>(b)</enum><header>Enforcement
Orders</header><text>Section 8(c) of the <act-name parsable-cite="FDIA">Federal
Deposit Insurance Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818(c)</external-xref>) is amended by adding at
the end the following new paragraph:</text>
<quoted-block act-name="Federal" changed="added" id="H75AD564987824C30A8DEA800C9082250" reported-display-style="italic" style="OLC">
<paragraph id="HF6DEF1A661AF460C92C365B4C678B486"><enum>(4)</enum><header>False advertising or
misuse of names to indicate insured status</header>
<subparagraph id="H30B1F803025C4426AE8BB0FC6EE76355"><enum>(A)</enum><header>Temporary
order</header>
<clause id="HBFD0651A4938415AA53D99735E9995EC"><enum>(i)</enum><header>In
general</header><text>If a notice of charges served under subsection (b)(1)
specifies on the basis of particular facts that any person engaged or is
engaging in conduct described in section 18(a)(4), the Corporation or other
appropriate Federal banking agency may issue a temporary order
requiring—</text>
<subclause id="H29426389A1974C82A294CE5321D0E192"><enum>(I)</enum><text>the immediate cessation
of any activity or practice described, which gave rise to the notice of
charges; and</text>
</subclause><subclause id="H36711E548DDF4DA58725007F8DD9D851"><enum>(II)</enum><text>affirmative action to
prevent any further, or to remedy any existing, violation.</text>
</subclause></clause><clause id="H0C1AFA6178FC4DC092FBE7842BB300"><enum>(ii)</enum><header>Effect of
order</header><text>Any temporary order issued under this subparagraph shall
take effect upon service.</text>
</clause></subparagraph><subparagraph id="HA70ECCFA78BE4653A7549516BA72E963"><enum>(B)</enum><header>Effective period of
temporary order</header><text>A temporary order issued under subparagraph (A)
shall remain effective and enforceable, pending the completion of an
administrative proceeding pursuant to subsection (b)(1) in connection with the
notice of charges—</text>
<clause id="HDFDCB8976511479DBCBBA4DF4D3C3781"><enum>(i)</enum><text display-inline="yes-display-inline">until such time as the Corporation or other
appropriate Federal banking agency dismisses the charges specified in such
notice; or</text>
</clause><clause id="H75A92B74DBAC48669166A6708B65726C"><enum>(ii)</enum><text>if a cease-and-desist
order is issued against such person, until the effective date of such
order.</text>
</clause></subparagraph><subparagraph id="H913B7CAE951F4294B7D083F85DBDF6"><enum>(C)</enum><header>Civil money
penalties</header><text display-inline="yes-display-inline">Any violation of
section 18(a)(4) shall be subject to civil money penalties, as set forth in
subsection (i), except that for any person other than an insured depository
institution or an institution-affiliated party that is found to have violated
this paragraph, the Corporation or other appropriate Federal banking agency
shall not be required to demonstrate any loss to an insured depository
institution.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idE4EB408F426841B398BCC40883763484"><enum>(c)</enum><header>Unenforceability of
certain agreements</header><text>Section 13(c) of the Federal Deposit Insurance
Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1823">12 U.S.C. 1823(c)</external-xref>) is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7A8D4787326642018AADA5B5E0DAC0CD" reported-display-style="italic" style="OLC">
<paragraph id="IDbcea943e74fe4f11a209c3752b692bda"><enum>(11)</enum><header>Unenforceability of
certain agreements</header><text>No provision contained in any existing or
future standstill, confidentiality, or other agreement that, directly or
indirectly—</text>
<subparagraph id="ID5e103f236a2e47508c74c3735275e3f9"><enum>(A)</enum><text>affects, restricts, or
limits the ability of any person to offer to acquire or acquire,</text>
</subparagraph><subparagraph id="ID570097bd57184e7eaf6a129fd27ef1f9"><enum>(B)</enum><text>prohibits any person from
offering to acquire or acquiring, or</text>
</subparagraph><subparagraph id="ID6b0d4522eb714e7a90a5ef4f2f5f8e44"><enum>(C)</enum><text>prohibits any person from
using any previously disclosed information in connection with any such offer to
acquire or acquisition of,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">all or part of any insured depository
institution, including any liabilities, assets, or interest therein, in
connection with any transaction in which the Corporation exercises its
authority under section 11 or 13, shall be enforceable against or impose any
liability on such person, as such enforcement or liability shall be contrary to
public
policy.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8A49C0AE995143DAB746E43D8F64553E"><enum>(d)</enum><header>Technical and
Conforming Amendments</header><text display-inline="yes-display-inline">Section
18 of the <act-name parsable-cite="FDIA">Federal Deposit Insurance
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828</external-xref>) is amended—</text>
<paragraph id="HE8CD94EEBD8A4276B29B55D9533C0069"><enum>(1)</enum><text>in subsection
(a)(3)—</text>
<subparagraph id="HBB2E1E0450DC4467B38D67ADB9C35F64"><enum>(A)</enum><text>by striking <quote>this
subsection</quote> the first place that term appears and inserting
<quote>paragraph (1)</quote>; and</text>
</subparagraph><subparagraph id="H8117489F4EBF479A93F5881F10061BE4"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>this subsection</quote>
the second place that term appears and inserting <quote>paragraph (2)</quote>;
and</text>
</subparagraph></paragraph><paragraph id="H0B1FACB0B3C54E138F974F4DA45C10FC"><enum>(2)</enum><text>in the heading for
subsection (a), by striking <quote><header-in-text level="subsection">Insurance
Logo</header-in-text>.—</quote> and inserting <quote><header-in-text level="subsection">Representations of Deposit
Insurance</header-in-text>.—</quote>.</text>
</paragraph></subsection></section><section id="H7E229A2F3B91442B9D72D2F415B81800"><enum>127.</enum><header>Cooperation with the
FBI</header><text display-inline="no-display-inline">Any Federal financial
regulatory agency shall cooperate with the Federal Bureau of Investigation and
other law enforcement agencies investigating fraud, misrepresentation, and
malfeasance with respect to development, advertising, and sale of financial
products.</text>
</section><section id="HA3D14A6B28EE42E8B5CD50AE07953111"><enum>128.</enum><header>Acceleration of
effective date</header><text display-inline="no-display-inline">Section 203 of
the Financial Services Regulatory Relief Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/12/461">12 U.S.C. 461</external-xref> note) is
amended by striking <quote>October 1, 2011</quote> and inserting <quote>October
1, 2008</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HB2DCF97748C34EA9B0EAC9F0D90842B"><enum>129.</enum><header>Disclosures on
exercise of loan authority</header>
<subsection commented="no" id="H45D19F84AF3844C1B73D8748CF3700CA"><enum>(a)</enum><header>In
general</header><text>Not later than 7 days after the date on which the Board
exercises its authority under the third paragraph of section 13 of the Federal
Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/343">12 U.S.C. 343</external-xref>; relating to discounts for individuals,
partnerships, and corporations) the Board shall provide to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report which
includes—</text>
<paragraph commented="no" id="HE8AE86C7647D46F2AB3862DC2F842E9"><enum>(1)</enum><text>the justification for
exercising the authority; and</text>
</paragraph><paragraph commented="no" id="HEA3951C5391C44219C2D8317F3F646B0"><enum>(2)</enum><text>the specific terms of the
actions of the Board, including the size and duration of the lending, available
information concerning the value of any collateral held with respect to such a
loan, the recipient of warrants or any other potential equity in exchange for
the loan, and any expected cost to the taxpayers for such exercise.</text>
</paragraph></subsection><subsection commented="no" id="H472EAB6B8AD947BAB2CCE008189E05E2"><enum>(b)</enum><header>Periodic
updates</header><text>The Board shall provide updates to the Committees
specified in subsection (a) not less frequently than once every 60 days while
the subject loan is outstanding, including—</text>
<paragraph commented="no" id="H7F54D9463BDA43FFB0931381E94412A8"><enum>(1)</enum><text>the status of the
loan;</text>
</paragraph><paragraph commented="no" id="HE1EDCAE75EFF4535ACDDE0D466C5800"><enum>(2)</enum><text>the value of the
collateral held by the Federal reserve bank which initiated the loan;
and</text>
</paragraph><paragraph commented="no" id="HE09EA30F74B84320895FB0D97807A500"><enum>(3)</enum><text>the projected cost to the
taxpayers of the loan.</text>
</paragraph></subsection><subsection commented="no" id="H5BA7D7E49307492382DBD754272CEE83"><enum>(c)</enum><header>Confidentiality</header><text>The
information submitted to the Congress under this section shall be kept
confidential, upon the written request of the Chairman of the Board, in which
case it shall be made available only to the Chairpersons and Ranking Members of
the Committees described in subsection (a).</text>
</subsection><subsection commented="no" id="H789EC9441A5748E394CAF4C2F31B7FD8"><enum>(d)</enum><header>Applicability</header><text>The
provisions of this section shall be in force for all uses of the authority
provided under section 13 of the Federal Reserve Act occurring during the
period beginning on March 1, 2008 and ending on the after the date of enactment
of this Act, and reports described in subsection (a) shall be required
beginning not later than 30 days after that date of enactment, with respect to
any such exercise of authority.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id60EA0B4F780B45BD8C8A65D976B47779"><enum>(e)</enum><header>Sharing of
information</header><text>Any reports required under this section shall also be
submitted to the Congressional Oversight Panel established under section
125.</text>
</subsection></section><section id="HF56D8C147C8341FD93526C46BBE71D15"><enum>130.</enum><header>Technical
corrections</header>
<subsection id="H99E2A5F8B8794E2AB7AE7B99244549E6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 128(b)(2) of
the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(b)(2)</external-xref>), as amended by section 2502 of
the Mortgage Disclosure Improvement Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/289">Public Law 110–289</external-xref>), is
amended—</text>
<paragraph id="H8482CEF590C44F7FA8CD9E0036245067"><enum>(1)</enum><text>in subparagraph (A), by
striking <quote>In the case</quote> and inserting <quote>Except as provided in
subparagraph (G), in the case</quote>; and</text>
</paragraph><paragraph id="H4E87267BF3CB48C6A2C37C7F8556872E"><enum>(2)</enum><text>by amending subparagraph
(G) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H625551BF61F24F45BD3EF05943C600B" reported-display-style="italic" style="OLC">
<subparagraph id="H9EAC38ADD2FB41E1BECE007E186EE088"><enum>(G)</enum><clause commented="no" display-inline="yes-display-inline" id="H1537DD38B4124FB18CAE29009C0099F6"><enum>(i)</enum><text>In the case of an
extension of credit relating to a plan described in section 101(53D) of title
11, United States Code—</text>
<subclause changed="added" id="H7A6441B898BE4840AAFF6CE67FF46EF2" indent="up1" reported-display-style="italic"><enum>(I)</enum><text>the
requirements of subparagraphs (A) through (E) shall not apply; and</text>
</subclause><subclause changed="added" id="H97310EEE5C4542FD967DE55360508515" indent="up1" reported-display-style="italic"><enum>(II)</enum><text>a good
faith estimate of the disclosures required under subsection (a) shall be made
in accordance with regulations of the Board under section 121(c) before such
credit is extended, or shall be delivered or placed in the mail not later than
3 business days after the date on which the creditor receives the written
application of the consumer for such credit, whichever is earlier.</text>
</subclause></clause><clause changed="added" id="H3D2038F36DEE480DB3E459BE4EAEBF49" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>If
a disclosure statement furnished within 3 business days of the written
application (as provided under clause (i)(II)) contains an annual percentage
rate which is subsequently rendered inaccurate, within the meaning of section
107(c), the creditor shall furnish another disclosure statement at the time of
settlement or consummation of the
transaction.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H19A90052CE254B16B6C8FFD321DDA215"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
subsection (a) shall take effect as if included in the amendments made by
section 2502 of the Mortgage Disclosure Improvement Act of 2008 (Public Law
110–289).</text>
</subsection></section><section display-inline="no-display-inline" id="HFEF834B724B049E0B0D908A7316CD830" section-type="subsequent-section"><enum>131.</enum><header>Exchange
Stabilization Fund reimbursement</header>
<subsection id="H4298BED61F164366BC1D98022B0082D7"><enum>(a)</enum><header>Reimbursement</header><text display-inline="yes-display-inline">The Secretary shall reimburse the Exchange
Stabilization Fund established under <external-xref legal-doc="usc" parsable-cite="usc/31/5302">section 5302</external-xref> of title 31, United States
Code, for any funds that are used for the Treasury Money Market Funds Guaranty
Program for the United States money market mutual fund industry, from funds
under this Act.</text>
</subsection><subsection id="H7BA53AE3E7D142FB98C3C9269FCE72A4"><enum>(b)</enum><header>Limits on use of
Exchange Stabilization Fund</header><text display-inline="yes-display-inline">The Secretary is prohibited from using the
Exchange Stabilization Fund for the establishment of any future guaranty
programs for the United States money market mutual fund industry.</text>
</subsection></section><section id="id9FC060D8FC9B49A896C6E2DE66528DE2"><enum>132.</enum><header>Authority to suspend
mark-to-market accounting</header>
<subsection id="id8CEC88261BC24F9E8453455DE21C9CF5"><enum>(a)</enum><header>Authority</header><text>The
Securities and Exchange Commission shall have the authority under the
securities laws (as such term is defined in section 3(a)(47) of the Securities
Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78c">15 U.S.C. 78c(a)(47)</external-xref>) to suspend, by rule, regulation, or
order, the application of Statement Number 157 of the Financial Accounting
Standards Board for any issuer (as such term is defined in section 3(a)(8) of
such Act) or with respect to any class or category of transaction if the
Commission determines that is necessary or appropriate in the public interest
and is consistent with the protection of investors.</text>
</subsection><subsection id="id57758DE31B064AB580DBE6CB7312EC8E"><enum>(b)</enum><header>Savings
provision</header><text>Nothing in subsection (a) shall be construed to
restrict or limit any authority of the Securities and Exchange Commission under
securities laws as in effect on the date of enactment of this Act.</text>
</subsection></section><section id="id5FCE36A8E3DD4CC9BBC329BC703E7B35"><enum>133.</enum><header>Study on
mark-to-market accounting</header>
<subsection id="id1658F8FCFDAA4925B5E36583544DD069"><enum>(a)</enum><header>Study</header><text>The
Securities and Exchange Commission, in consultation with the Board and the
Secretary, shall conduct a study on mark-to-market accounting standards as
provided in Statement Number 157 of the Financial Accounting Standards Board,
as such standards are applicable to financial institutions, including
depository institutions. Such a study shall consider at a minimum—</text>
<paragraph id="idD907FE74E0B84DF29A6A80C8BEAE77DD"><enum>(1)</enum><text>the effects of such
accounting standards on a financial institution's balance sheet;</text>
</paragraph><paragraph id="idB78292C784AF41FC895BBA172F38F28A"><enum>(2)</enum><text>the impacts of such
accounting on bank failures in 2008;</text>
</paragraph><paragraph id="id4460BCAAF74847D19B582D5208C8ADBF"><enum>(3)</enum><text>the impact of such
standards on the quality of financial information available to
investors;</text>
</paragraph><paragraph id="idA30E6AEF3D79449D9EAE25AC5C2BAF3E"><enum>(4)</enum><text>the process used by the
Financial Accounting Standards Board in developing accounting standards;</text>
</paragraph><paragraph id="idD935D6CF034A4A0A8B6191E45FFEDF1C"><enum>(5)</enum><text>the advisability and
feasibility of modifications to such standards; and</text>
</paragraph><paragraph id="id43D19464B65F4B37876994BDEB770609"><enum>(6)</enum><text>alternative accounting
standards to those provided in such Statement Number 157.</text>
</paragraph></subsection><subsection id="id9ADEF8A9BA2A44618B2AE91CF5C6B23B"><enum>(b)</enum><header>Report</header><text>The
Securities and Exchange Commission shall submit to Congress a report of such
study before the end of the 90-day period beginning on the date of the
enactment of this Act containing the findings and determinations of the
Commission, including such administrative and legislative recommendations as
the Commission determines appropriate.</text>
</subsection></section><section id="id3167994130384F0687861F80D25725EB"><enum>134.</enum><header>Recoupment</header><text display-inline="no-display-inline">Upon the expiration of the 5-year period
beginning upon the date of the enactment of this Act, the Director of the
Office of Management and Budget, in consultation with the Director of the
Congressional Budget Office, shall submit a report to the Congress on the net
amount within the Troubled Asset Relief Program under this Act. In any case
where there is a shortfall, the President shall submit a legislative proposal
that recoups from the financial industry an amount equal to the shortfall in
order to ensure that the Troubled Asset Relief Program does not add to the
deficit or national debt.</text>
</section><section id="idAAFDB400C3ED45FDA5ACE69ECCB607D7"><enum>135.</enum><header>Preservation of
authority</header><text display-inline="no-display-inline">With the exception
of section 131, nothing in this Act may be construed to limit the authority of
the Secretary or the Board under any other provision of law.</text>
</section><section id="IDc0e624b805f14381b0f6f53aef0948ca"><enum>136.</enum><header>Temporary increase in
deposit and share insurance coverage</header>
<subsection id="ID856af6ba280d4be89bf3efd93038343c"><enum>(a)</enum><header>Federal Deposit
Insurance Act; temporary increase in deposit insurance</header>
<paragraph id="idC6AC50E07366476E8378A1F1BA4D5C1E"><enum>(1)</enum><header>Increased
amount</header><text>Effective only during the period beginning on the date of
enactment of this Act and ending on December 31, 2009, section 11(a)(1)(E) of
the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(a)(1)(E)</external-xref>) shall apply with
<quote>$250,000</quote> substituted for <quote>$100,000</quote>.</text>
</paragraph><paragraph id="id96A03CA3571C4479A6D27CA0A8AA61E9"><enum>(2)</enum><header>Temporary increase not
to be considered for setting assessments</header><text>The temporary increase
in the standard maximum deposit insurance amount made under paragraph (1) shall
not be taken into account by the Board of Directors of the Corporation for
purposes of setting assessments under section 7(b)(2) of the Federal Deposit
Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1817">12 U.S.C. 1817(b)(2)</external-xref>).</text>
</paragraph><paragraph id="idA552CCB335364B83A35039B8017CE40A"><enum>(3)</enum><header>Borrowing limits
temporarily lifted</header><text display-inline="yes-display-inline">During the
period beginning on the date of enactment of this Act and ending on December
31, 2009, the Board of Directors of the Corporation may request from the
Secretary, and the Secretary shall approve, a loan or loans in an amount or
amounts necessary to carry out this subsection, without regard to the
limitations on such borrowing under section 14(a) and 15(c) of the Federal
Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1824">12 U.S.C. 1824(a)</external-xref>, 1825(c)).</text>
</paragraph></subsection><subsection id="id1322AB5C82574548A24052C14EF07A72"><enum>(b)</enum><header>Federal Credit Union
Act; temporary increase in share insurance</header>
<paragraph id="IDc908ed07dc924284a9f2cea215e9f509"><enum>(1)</enum><header>Increased
amount</header><text>Effective only during the period beginning on the date of
enactment of this Act and ending on December 31, 2009, section 207(k)(5) of the
Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1787">12 U.S.C. 1787(k)(5)</external-xref>) shall apply with
<quote>$250,000</quote> substituted for <quote>$100,000</quote>.</text>
</paragraph><paragraph id="IDc762cbe321da48ef9e8e5a13e7f1c0f5"><enum>(2)</enum><header>Temporary increase not
to be considered for setting insurance premium charges and insurance deposit
adjustments</header><text>The temporary increase in the standard maximum share
insurance amount made under paragraph (1) shall not be taken into account by
the National Credit Union Administration Board for purposes of setting
insurance premium charges and share insurance deposit adjustments under section
202(c)(2) of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1782">12 U.S.C. 1782(c)(2)</external-xref>).</text>
</paragraph><paragraph id="id1E50BCA95F7941AB870C5D6C6073AAD8"><enum>(3)</enum><header>Borrowing limits
temporarily lifted</header><text display-inline="yes-display-inline">During the
period beginning on the date of enactment of this Act and ending on December
31, 2009, the National Credit Union Administration Board may request from the
Secretary, and the Secretary shall approve, a loan or loans in an amount or
amounts necessary to carry out this subsection, without regard to the
limitations on such borrowing under section 203(d)(1) of the Federal Credit
Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1783">12 U.S.C. 1783(d)(1)</external-xref>).</text>
</paragraph></subsection><subsection id="id89203ACA1B1A409D9D65F4C013D43870"><enum>(c)</enum><header>Not for use in
inflation adjustments</header><text>The temporary increase in the standard
maximum deposit insurance amount made under this section shall not be used to
make any inflation adjustment under section 11(a)(1)(F) of the Federal Deposit
Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(a)(1)(F)</external-xref>) for purposes of that Act or the Federal
Credit Union Act.</text>
</subsection></section><enum>II</enum><header>Budget-related
provisions</header>
<section display-inline="no-display-inline" id="H45CCC86E9D6C4813926DAD44696CDDFF" section-type="subsequent-section"><enum>201.</enum><header>Information for
congressional support agencies</header><text display-inline="no-display-inline">Upon request, and to the extent otherwise
consistent with law, all information used by the Secretary in connection with
activities authorized under this Act (including the records to which the
Comptroller General is entitled under this Act) shall be made available to
congressional support agencies (in accordance with their obligations to support
the Congress as set out in their authorizing statutes) for the purposes of
assisting the committees of Congress with conducting oversight, monitoring, and
analysis of the activities authorized under this Act.</text>
</section><section display-inline="no-display-inline" id="HAB830C49FCB841F487D37B9EB8374FA9" section-type="subsequent-section"><enum>202.</enum><header>Reports by the
Office of Management and Budget and the Congressional Budget Office</header>
<subsection id="H5A2E13F7E43B46D0812ED39549BC6D85"><enum>(a)</enum><header>Reports by the Office
of Management and Budget</header><text>Within 60 days of the first exercise of
the authority granted in section 101(a), but in no case later than December 31,
2008, and semiannually thereafter, the Office of Management and Budget shall
report to the President and the Congress—</text>
<paragraph id="HF32C01D192664CD482EB0023A3BA33A3"><enum>(1)</enum><text>the estimate,
notwithstanding section 502(5)(F) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a(5)(F)), as of the first business day that is at least 30 days prior
to the issuance of the report, of the cost of the troubled assets, and
guarantees of the troubled assets, determined in accordance with section
123;</text>
</paragraph><paragraph id="HB7E5881D50C740E0942B63D7A33200ED"><enum>(2)</enum><text>the information used to
derive the estimate, including assets purchased or guaranteed, prices paid,
revenues received, the impact on the deficit and debt, and a description of any
outstanding commitments to purchase troubled assets; and</text>
</paragraph><paragraph id="H0EE6C5924D6E4318AF1B1C0000C74613"><enum>(3)</enum><text>a detailed analysis of
how the estimate has changed from the previous report.</text>
</paragraph><continuation-text continuation-text-level="subsection">Beginning with the second report under
subsection (a), the Office of Management and Budget shall explain the
differences between the Congressional Budget Office estimates delivered in
accordance with subsection (b) and prior Office of Management and Budget
estimates.</continuation-text></subsection><subsection id="H42357FD8E50540E0A42D6993441B0978"><enum>(b)</enum><header>Reports by the
Congressional Budget Office</header><text>Within 45 days of receipt by the
Congress of each report from the Office of Management and Budget under
subsection (a), the Congressional Budget Office shall report to the Congress
the Congressional Budget Office’s assessment of the report submitted by the
Office of Management and Budget, including—</text>
<paragraph id="H7F4E3EFF07894A85001B9B85D300202C"><enum>(1)</enum><text>the cost of the troubled
assets and guarantees of the troubled assets,</text>
</paragraph><paragraph id="H9670E2E1ACAC4BEF8B8FC2E1707DB985"><enum>(2)</enum><text>the information and
valuation methods used to calculate such cost, and</text>
</paragraph><paragraph id="H17E2C3D5B85449959F28F54CC8F18FAC"><enum>(3)</enum><text>the impact on the deficit
and the debt.</text>
</paragraph></subsection><subsection id="HC1DDE9A46759478BA18CB4C6008461F6"><enum>(c)</enum><header>Financial
expertise</header><text>In carrying out the duties in this subsection or
performing analyses of activities under this Act, the Director of the
Congressional Budget Office may employ personnel and procure the services of
experts and consultants.</text>
</subsection><subsection id="HD4386DFB3C5645B3959FFE49B7000C9"><enum>(d)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated such sums
as may be necessary to produce reports required by this section.</text>
</subsection></section><section id="H9DC9906772D742498E9113ED3C82E7D3"><enum>203.</enum><header>Analysis in
President’s Budget</header>
<subsection id="HE14647BD8F7A44B8BBCCF7B1D3465764"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/1105">Section 1105(a)</external-xref> of title 31, United States Code, is
amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" id="HB635E415201F410CB5C3B97FF9A1CCB5" reported-display-style="italic" style="OLC">
<paragraph id="H1CB21F9B65B74109918B637FC3CAD861"><enum>(35)</enum><text>as supplementary
materials, a separate analysis of the budgetary effects for all prior fiscal
years, the current fiscal year, the fiscal year for which the budget is
submitted, and ensuing fiscal years of the actions the Secretary of the
Treasury has taken or plans to take using any authority provided in the
<short-title>Emergency Economic Stabilization Act of
2008</short-title>, including—</text>
<subparagraph id="HBF3E7F607E6E4A1A81C08EF8C3F47B5"><enum>(A)</enum><text display-inline="yes-display-inline">an estimate of the current value of all
assets purchased, sold, and guaranteed under the authority provided in the
<short-title>Emergency Economic Stabilization Act of
2008</short-title> using methodology required by the Federal Credit Reform Act
of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661">2 U.S.C. 661 et seq.</external-xref>) and section 123 of the
<short-title>Emergency Economic Stabilization Act of
2008</short-title>;</text>
</subparagraph><subparagraph id="H9FD9C5D94EE64433B3B22E00AAB79EC5"><enum>(B)</enum><text display-inline="yes-display-inline">an estimate of the deficit, the debt held
by the public, and the gross Federal debt using methodology required by the
Federal Credit Reform Act of 1990 and section 123 of the
<short-title>Emergency Economic Stabilization Act of
2008</short-title>;</text>
</subparagraph><subparagraph id="H6DBC1799887B4176B719654CF1EFB543"><enum>(C)</enum><text display-inline="yes-display-inline">an estimate of the current value of all
assets purchased, sold, and guaranteed under the authority provided in the
<short-title>Emergency Economic Stabilization Act of
2008</short-title> calculated on a cash basis;</text>
</subparagraph><subparagraph commented="no" id="HB5A0C73EB01D43529C8250322533AB8B"><enum>(D)</enum><text display-inline="yes-display-inline">a revised estimate of the deficit, the debt
held by the public, and the gross Federal debt, substituting the cash-based
estimates in subparagraph (C) for the estimates calculated under subparagraph
(A) pursuant to the Federal Credit Reform Act of 1990 and section 123 of the
<short-title>Emergency Economic Stabilization Act of
2008</short-title>; and</text>
</subparagraph><subparagraph id="H286A9F99D2DA4BFA80DEB2C19F2F009D"><enum>(E)</enum><text display-inline="yes-display-inline">the portion of the deficit which can be
attributed to any action taken by the Secretary using authority provided by the
<short-title>Emergency Economic Stabilization Act of
2008</short-title> and the extent to which the change in the deficit since the
most recent estimate is due to a reestimate using the methodology required by
the Federal Credit Reform Act of 1990 and section 123 of the
<short-title>Emergency Economic Stabilization Act of
2008</short-title>.</text>
</subparagraph></paragraph><after-quoted-block></after-quoted-block></quoted-block>
</subsection><subsection id="H468F92BAC78842E2BC6EDDB0C8CAF808"><enum>(b)</enum><header>Consultation</header><text display-inline="yes-display-inline">In implementing this section, the Director
of Office of Management and Budget shall consult periodically, but at least
annually, with the Committee on the Budget of the House of Representatives, the
Committee on the Budget of the Senate, and the Director of the Congressional
Budget Office.</text>
</subsection><subsection id="HD9F27387986F43BEA34F68294BFEE300"><enum>(c)</enum><header>Effective
date</header><text>This section and the amendment made by this section shall
apply beginning with respect to the fiscal year 2010 budget submission of the
President.</text>
</subsection></section><section id="idD635D4DA17744D5F85A4C16076F62F06"><enum>204.</enum><header>Emergency
treatment</header><text display-inline="no-display-inline">All provisions of
this Act are designated as an emergency requirement and necessary to meet
emergency needs pursuant to section 204(a) of S. Con. Res 21 (110th Congress),
the concurrent resolution on the budget for fiscal year 2008 and rescissions of
any amounts provided in this Act shall not be counted for purposes of budget
enforcement.</text>
</section><enum>III</enum><header>Tax Provisions</header>
<section display-inline="no-display-inline" id="HFA7AB676D3334FA400E02B84F52CFA04" section-type="subsequent-section"><enum>301.</enum><header>Gain or loss from
sale or exchange of certain preferred stock</header>
<subsection id="H459C53A798EB4C17854B6286BF3EBD21"><enum>(a)</enum><header>In
general</header><text>For purposes of the Internal Revenue Code of 1986, gain
or loss from the sale or exchange of any applicable preferred stock by any
applicable financial institution shall be treated as ordinary income or
loss.</text>
</subsection><subsection id="H628D599973EB4BC59BAD4E649308F53F"><enum>(b)</enum><header>Applicable preferred
stock</header><text>For purposes of this section, the term <term>applicable
preferred stock</term> means any stock—</text>
<paragraph id="H1E0B64A4F499469D915B77AC4452F544"><enum>(1)</enum><text>which is preferred stock
in—</text>
<subparagraph id="H7164E81748374227834CC67B1D630377"><enum>(A)</enum><text>the Federal National
Mortgage Association, established pursuant to the Federal National Mortgage
Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>), or</text>
</subparagraph><subparagraph id="H520B96B965394F92AB2482B9A96EA64"><enum>(B)</enum><text>the Federal Home Loan
Mortgage Corporation, established pursuant to the Federal Home Loan Mortgage
Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451 et seq.</external-xref>), and</text>
</subparagraph></paragraph><paragraph id="HB05C6ADD891D40ADA6E4D3FA99B3937D"><enum>(2)</enum><text>which—</text>
<subparagraph id="HD93C805AD0D742419B43215F748B7FF2"><enum>(A)</enum><text>was held by the
applicable financial institution on September 6, 2008, or</text>
</subparagraph><subparagraph id="HB123490A4E9949C8965F37145923956F"><enum>(B)</enum><text>was sold or exchanged by
the applicable financial institution on or after January 1, 2008, and before
September 7, 2008.</text>
</subparagraph></paragraph></subsection><subsection id="H4D6886314D18436FACCBE0C257E9D083"><enum>(c)</enum><header>Applicable financial
institution</header><text>For purposes of this section:</text>
<paragraph id="H98FD484749D14E2B8E76F6B87B690D8"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the term
<term>applicable financial institution</term> means—</text>
<subparagraph id="H0AB2BDA2237B4419B275D3CB5EFFFB5"><enum>(A)</enum><text>a financial institution
referred to in <external-xref legal-doc="usc" parsable-cite="usc/26/582">section 582(c)(2)</external-xref> of the Internal Revenue Code of 1986,
or</text>
</subparagraph><subparagraph id="H041FCDFF28214B3BB9EA816D1F8F841"><enum>(B)</enum><text>a depository institution
holding company (as defined in section 3(w)(1) of the Federal Deposit Insurance
Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813(w)(1)</external-xref>)).</text>
</subparagraph></paragraph><paragraph id="H6527CA63B2224D53B253D97E1B675248"><enum>(2)</enum><header>Special rules for
certain sales</header><text>In the case of—</text>
<subparagraph id="H40A6802685B84D598692AC95009327B7"><enum>(A)</enum><text>a sale or exchange
described in subsection (b)(2)(B), an entity shall be treated as an applicable
financial institution only if it was an entity described in subparagraph (A) or
(B) of paragraph (1) at the time of the sale or exchange, and</text>
</subparagraph><subparagraph id="H200E85EBD0E543B5A578540661DD02D"><enum>(B)</enum><text>a sale or exchange after
September 6, 2008, of preferred stock described in subsection (b)(2)(A), an
entity shall be treated as an applicable financial institution only if it was
an entity described in subparagraph (A) or (B) of paragraph (1) at all times
during the period beginning on September 6, 2008, and ending on the date of the
sale or exchange of the preferred stock.</text>
</subparagraph></paragraph></subsection><subsection id="H5B2CD6972D3B40B8BCE3D7882001BAF0"><enum>(d)</enum><header>Special rule for
certain property not held on September 6, 2008</header><text>The Secretary of
the Treasury or the Secretary's delegate may extend the application of this
section to all or a portion of the gain or loss from a sale or exchange in any
case where—</text>
<paragraph id="HFC3D042DAE6A4F51A01ED15B999B2986"><enum>(1)</enum><text>an applicable financial
institution sells or exchanges applicable preferred stock after September 6,
2008, which the applicable financial institution did not hold on such date, but
the basis of which in the hands of the applicable financial institution at the
time of the sale or exchange is the same as the basis in the hands of the
person which held such stock on such date, or</text>
</paragraph><paragraph id="HB85B9DC1B9C445FABB129D8DEB7F0029"><enum>(2)</enum><text>the applicable financial
institution is a partner in a partnership which—</text>
<subparagraph id="H28C7A8CE42394E7E87F6ADC0F442FC54"><enum>(A)</enum><text>held such stock on
September 6, 2008, and later sold or exchanged such stock, or</text>
</subparagraph><subparagraph id="H36EEB78E1F5F41C4BCADCB5DF8E63D98"><enum>(B)</enum><text>sold or exchanged such
stock during the period described in subsection (b)(2)(B).</text>
</subparagraph></paragraph></subsection><subsection id="HB5B8406EC01D408E8C2DD400FC8E9B66"><enum>(e)</enum><header>Regulatory
authority</header><text>The Secretary of the Treasury or the Secretary's
delegate may prescribe such guidance, rules, or regulations as are necessary to
carry out the purposes of this section.</text>
</subsection><subsection id="H09F362AB2D7942A59D80CFC05821E911"><enum>(f)</enum><header>Effective
date</header><text>This section shall apply to sales or exchanges occurring
after December 31, 2007, in taxable years ending after such date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HCD8B5B3FE1014900B76E4CF500F6ABC0"><enum>302.</enum><header>Special rules for tax
treatment of executive compensation of employers participating in the troubled
assets relief program</header>
<subsection commented="no" id="H9139E27AA12340C69207E27984B68D48"><enum>(a)</enum><header>Denial of
deduction</header><text>Subsection (m) of section 162 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block act-name="" changed="added" id="H45C9252001A14091A654EDB8A5DB90A3" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="H5B4CA23634CF426ABFE2DFD6C4FDE351"><enum>(5)</enum><header>Special rule for
application to employers participating in the Troubled Assets Relief
Program</header>
<subparagraph commented="no" id="HF05AA1B4E05D4BAAA777D3D00AE05C3"><enum>(A)</enum><header>In
general</header><text>In the case of an applicable employer, no deduction shall
be allowed under this chapter—</text>
<clause commented="no" id="HC8A169136A7C4CFC927DF92EAEACC5"><enum>(i)</enum><text>in the case of executive
remuneration for any applicable taxable year which is attributable to services
performed by a covered executive during such applicable taxable year, to the
extent that the amount of such remuneration exceeds $500,000, or</text>
</clause><clause commented="no" id="H62D7B10AF4BF4B88A7E981D04C183900"><enum>(ii)</enum><text>in the case of deferred
deduction executive remuneration for any taxable year for services performed
during any applicable taxable year by a covered executive, to the extent that
the amount of such remuneration exceeds $500,000 reduced (but not below zero)
by the sum of—</text>
<subclause commented="no" id="H9BC0248138CF47108157B355EC95FA8C"><enum>(I)</enum><text>the executive
remuneration for such applicable taxable year, plus</text>
</subclause><subclause commented="no" id="HF7173C38B560415C881EFED7AA2E5D3D"><enum>(II)</enum><text>the portion of the
deferred deduction executive remuneration for such services which was taken
into account under this clause in a preceding taxable year.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="H7E3660F3361E4984871EEF80A9C4EA15"><enum>(B)</enum><header>Applicable
employer</header><text>For purposes of this paragraph—</text>
<clause commented="no" id="HA45768D483C8466DB85C5500F0C9ADF"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (ii), the term
<term>applicable employer</term> means any employer from whom 1 or more
troubled assets are acquired under a program established by the Secretary under
section 101(a) of the <short-title>Emergency Economic
Stabilization Act of 2008</short-title> if the aggregate amount of the assets
so acquired for all taxable years exceeds $300,000,000.</text>
</clause><clause commented="no" id="id9D523A30C36A4484814B0E4DC8D17672"><enum>(ii)</enum><header>Disregard of certain
assets sold through direct purchase</header><text>If the only sales of troubled
assets by an employer under the program described in clause (i) are through 1
or more direct purchases (within the meaning of section 113(c) of the
<short-title>Emergency Economic Stabilization Act of
2008</short-title>), such assets shall not be taken into account under clause
(i) in determining whether the employer is an applicable employer for purposes
of this paragraph.</text>
</clause><clause commented="no" id="HD7DC85A0CA624BB8ACF8A4E1FBC4446"><enum>(iii)</enum><header>Aggregation
rules</header><text>Two or more persons who are treated as a single employer
under subsection (b) or (c) of section 414 shall be treated as a single
employer, except that in applying section 1563(a) for purposes of either such
subsection, paragraphs (2) and (3) thereof shall be disregarded.</text>
</clause></subparagraph><subparagraph commented="no" id="H8ABBA19659D9450A93E6B85898000064"><enum>(C)</enum><header>Applicable taxable
year</header><text>For purposes of this paragraph, the term <term>applicable
taxable year</term> means, with respect to any employer—</text>
<clause commented="no" id="idB561E325420F418D8EBE22BFE59F204C"><enum>(i)</enum><text>the first taxable year of
the employer—</text>
<subclause commented="no" id="id5C6C223F9F3E4B84A4644FD8E7F64C87"><enum>(I)</enum><text>which includes any
portion of the period during which the authorities under section 101(a) of the
<short-title>Emergency Economic Stabilization Act of
2008</short-title> are in effect (determined under section 120 thereof),
and</text>
</subclause><subclause commented="no" id="idDE1F659E90DD4CBD85D6D4A1CF8CBBA5"><enum>(II)</enum><text>in which the aggregate
amount of troubled assets acquired from the employer during the taxable year
pursuant to such authorities (other than assets to which subparagraph (B)(ii)
applies), when added to the aggregate amount so acquired for all preceding
taxable years, exceeds $300,000,000, and</text>
</subclause></clause><clause commented="no" id="idB5C0C1DBEB5F409BB350EB5A2E24913B"><enum>(ii)</enum><text>any subsequent taxable
year which includes any portion of such period.</text>
</clause></subparagraph><subparagraph commented="no" id="HAEFCBFF8CB4C4AF789913258D7CD4D7F"><enum>(D)</enum><header>Covered
executive</header><text>For purposes of this paragraph—</text>
<clause commented="no" id="HA6852C01482A40BDB3D198AA52560750"><enum>(i)</enum><header>In
general</header><text>The term <term>covered executive</term> means, with
respect to any applicable taxable year, any employee—</text>
<subclause commented="no" id="H9C02435348C5489C93F2A2891F4E773D"><enum>(I)</enum><text>who, at any time during
the portion of the taxable year during which the authorities under section
101(a) of the <short-title>Emergency Economic
Stabilization Act of 2008</short-title> are in effect (determined under section
120 thereof), is the chief executive officer of the applicable employer or the
chief financial officer of the applicable employer, or an individual acting in
either such capacity, or</text>
</subclause><subclause commented="no" id="H4F1C81D8687E4146A98EFEEBAE48FB09"><enum>(II)</enum><text>who is described in
clause (ii).</text>
</subclause></clause><clause commented="no" id="H9A8A647DC0E744C4A2FE48A0026CAE92"><enum>(ii)</enum><header>Highest compensated
employees</header><text>An employee is described in this clause if the employee
is 1 of the 3 highest compensated officers of the applicable employer for the
taxable year (other than an individual described in clause (i)(I)),
determined—</text>
<subclause commented="no" id="HBFCAA871A17C4329A17F7212D90970C9"><enum>(I)</enum><text>on the basis of the
shareholder disclosure rules for compensation under the Securities Exchange Act
of 1934 (without regard to whether those rules apply to the employer),
and</text>
</subclause><subclause commented="no" id="H5217C3A4D9004B1C978DDBE9CAE4EC05"><enum>(II)</enum><text>by only taking into
account employees employed during the portion of the taxable year described in
clause (i)(I).</text>
</subclause></clause><clause commented="no" id="H98AB1FC2A6A345DC9BFC9CCA48A6551F"><enum>(iii)</enum><header>Employee remains
covered executive</header><text>If an employee is a covered executive with
respect to an applicable employer for any applicable taxable year, such
employee shall be treated as a covered executive with respect to such employer
for all subsequent applicable taxable years and for all subsequent taxable
years in which deferred deduction executive remuneration with respect to
services performed in all such applicable taxable years would (but for this
paragraph) be deductible.</text>
</clause></subparagraph><subparagraph commented="no" id="H1F1E6F9C4B52488490978E47EE1889A9"><enum>(E)</enum><header>Executive
remuneration</header><text>For purposes of this paragraph, the term
<term>executive remuneration</term> means the applicable employee remuneration
of the covered executive, as determined under paragraph (4) without regard to
subparagraphs (B), (C), and (D) thereof. Such term shall not include any
deferred deduction executive remuneration with respect to services performed in
a prior applicable taxable year.</text>
</subparagraph><subparagraph commented="no" id="H077F7955A91340A700CA1DED474B2107"><enum>(F)</enum><header>Deferred deduction
executive remuneration</header><text>For purposes of this paragraph, the term
<term>deferred deduction executive remuneration</term> means remuneration which
would be executive remuneration for services performed in an applicable taxable
year but for the fact that the deduction under this chapter (determined without
regard to this paragraph) for such remuneration is allowable in a subsequent
taxable year.</text>
</subparagraph><subparagraph commented="no" id="H5261C0FA72194294BC7D8BD3372200EE"><enum>(G)</enum><header>Coordination</header><text>Rules
similar to the rules of subparagraphs (F) and (G) of paragraph (4) shall apply
for purposes of this paragraph.</text>
</subparagraph><subparagraph commented="no" id="id0411ADE2D5904E578CF370F84EA12D3E"><enum>(H)</enum><header>Regulatory
authority</header><text>The Secretary may prescribe such guidance, rules, or
regulations as are necessary to carry out the purposes of this paragraph and
the <short-title>Emergency Economic Stabilization Act of
2008</short-title>, including the extent to which this paragraph applies in the
case of any acquisition, merger, or reorganization of an applicable
employer.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H65CA48F91ECD4ECC84FA8779DD4D3EC3"><enum>(b)</enum><header>Golden parachute
rule</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/280G">Section 280G</external-xref> of the Internal Revenue Code of 1986 is
amended—</text>
<paragraph commented="no" id="HD847839C80D3497F8661B3599FDEB375"><enum>(1)</enum><text>by redesignating
subsection (e) as subsection (f), and</text>
</paragraph><paragraph commented="no" id="H3BF8C1DAD90049C8BCAF786730F9C5C"><enum>(2)</enum><text>by inserting after
subsection (d) the following new subsection:</text>
<quoted-block act-name="" changed="added" id="HE6EA9DEC18314AB7BC7D8BD97B95CC22" reported-display-style="italic" style="OLC">
<subsection commented="no" id="H8ECDAD7B96774F87AFB6385D200582B"><enum>(e)</enum><header>Special rule for
application to employers participating in the Troubled Assets Relief
Program</header>
<paragraph commented="no" id="HABFBE08F2CC64807BFCACCF8363EB75B"><enum>(1)</enum><header>In
general</header><text>In the case of the severance from employment of a covered
executive of an applicable employer during the period during which the
authorities under section 101(a) of the <short-title>Emergency Economic Stabilization Act of 2008</short-title>
are in effect (determined under section 120 of such Act), this section shall be
applied to payments to such executive with the following modifications:</text>
<subparagraph commented="no" id="HD61594D33E094C91A3D1EB9700006DDE"><enum>(A)</enum><text>Any reference to a
disqualified individual (other than in subsection (c)) shall be treated as a
reference to a covered executive.</text>
</subparagraph><subparagraph commented="no" id="H58519AA8CFE043A9AE69F8C1000991E9"><enum>(B)</enum><text>Any reference to a change
described in subsection (b)(2)(A)(i) shall be treated as a reference to an
applicable severance from employment of a covered executive, and any reference
to a payment contingent on such a change shall be treated as a reference to any
payment made during an applicable taxable year of the employer on account of
such applicable severance from employment.</text>
</subparagraph><subparagraph commented="no" id="H3BF7870CDD9849DEA5FA03513DE90001"><enum>(C)</enum><text>Any reference to a
corporation shall be treated as a reference to an applicable employer.</text>
</subparagraph><subparagraph commented="no" id="H8892C916D7E4427B823DCCCAC63CED52"><enum>(D)</enum><text>The provisions of
subsections (b)(2)(C), (b)(4), (b)(5), and (d)(5) shall not apply.</text>
</subparagraph></paragraph><paragraph commented="no" id="HD11CCDEF761348D194A1B400805C1F1D"><enum>(2)</enum><header>Definitions and special
rules</header><text>For purposes of this subsection:</text>
<subparagraph commented="no" id="H3E4E879333AB4DE08500B2328BD47B9B"><enum>(A)</enum><header>Definitions</header><text>Any
term used in this subsection which is also used in section 162(m)(5) shall have
the meaning given such term by such section.</text>
</subparagraph><subparagraph commented="no" id="idF2A615881D9E42F78D8493F427FC3AB2"><enum>(B)</enum><header>Applicable severance
from employment</header><text>The term <term>applicable severance from
employment</term> means any severance from employment of a covered
executive—</text>
<clause commented="no" id="idC28C03E727AA4B789A5990D710A7C237"><enum>(i)</enum><text>by reason of an
involuntary termination of the executive by the employer, or</text>
</clause><clause commented="no" id="id51E9232732784F1BA2D9FFA9374C3CD4"><enum>(ii)</enum><text>in connection with any
bankruptcy, liquidation, or receivership of the employer.</text>
</clause></subparagraph><subparagraph commented="no" id="H964D5D896D6E4588A42E71A0027A7B"><enum>(C)</enum><header>Coordination and other
rules</header>
<clause commented="no" id="HC302133698054A8A9F6B392703BBED9"><enum>(i)</enum><header>In
general</header><text>If a payment which is treated as a parachute payment by
reason of this subsection is also a parachute payment determined without regard
to this subsection, this subsection shall not apply to such payment.</text>
</clause><clause commented="no" id="HA1EB4B867C6549C28E89D67E008FDCAC"><enum>(ii)</enum><header>Regulatory
authority</header><text>The Secretary may prescribe such guidance, rules, or
regulations as are necessary—</text>
<subclause commented="no" id="idC4FA45BBE94F48E2A47F90FA97AE3A90"><enum>(I)</enum><text>to carry out the purposes
of this subsection and the <short-title>Emergency Economic
Stabilization Act of 2008</short-title>, including the extent to which this
subsection applies in the case of any acquisition, merger, or reorganization of
an applicable employer,</text>
</subclause><subclause commented="no" id="id09719E91F15A4D4CAE017C4C2029BEEA"><enum>(II)</enum><text>to apply this section
and section 4999 in cases where one or more payments with respect to any
individual are treated as parachute payments by reason of this subsection, and
other payments with respect to such individual are treated as parachute
payments under this section without regard to this subsection, and</text>
</subclause><subclause commented="no" id="idDF4214F598E54DF6A01AD3980414DEB1"><enum>(III)</enum><text>to prevent the
avoidance of the application of this section through the mischaracterization of
a severance from employment as other than an applicable severance from
employment.</text>
</subclause></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H343E24BCC0AB46FA8904A1C88B9D2500"><enum>(c)</enum><header>Effective
dates</header>
<paragraph commented="no" id="H1753FE3C92C248E5A9C1FD7010FA14A3"><enum>(1)</enum><header>In
general</header><text>The amendment made by subsection (a) shall apply to
taxable years ending on or after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" id="H29FAB7F27CBC4A9C80BD3FDEA7CF6669"><enum>(2)</enum><header>Golden parachute
rule</header><text>The amendments made by subsection (b) shall apply to
payments with respect to severances occurring during the period during which
the authorities under section 101(a) of this Act are in effect (determined
under section 120 of this Act).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id30B9F46733FF4C228D0680CA6CCD9D0B" section-type="subsequent-section"><enum>303.</enum><header>Extension of
exclusion of income from discharge of qualified principal residence
indebtedness</header>
<subsection commented="no" display-inline="no-display-inline" id="idC017BCA5D6924E939C4E616393C96932"><enum>(a)</enum><header>Extension</header><text display-inline="yes-display-inline">Subparagraph (E) of section 108(a)(1) of
the Internal Revenue Code of 1986 is amended by striking <quote>January 1,
2010</quote> and inserting <quote>January 1, 2013</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCFA7247290D44A1694D12F14C567BEC5"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to discharges
of indebtedness occurring on or after January 1, 2010.</text>
</subsection></section>BEnergy Improvement and
Extension Act of 2008
1.
(a)This division may be cited as the
Energy Improvement and Extension Act
of 2008
.
(b)Except as otherwise expressly provided,
whenever in this division 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 division is
as follows:
Sec. 1. Short title,
etc.
TITLE I—Energy production
incentives
Subtitle A—Renewable energy
incentives
Sec. 101. Renewable energy
credit.
Sec. 102. Production credit for
electricity produced from marine renewables.
Sec. 103. Energy
credit.
Sec. 104. Energy credit for
small wind property.
Sec. 105. Energy credit for
geothermal heat pump systems.
Sec. 106. Credit for
residential energy efficient property.
Sec. 107. New clean renewable
energy bonds.
Sec. 108. Credit for steel
industry fuel.
Sec. 109. Special rule to
implement FERC and State electric restructuring policy.
Subtitle B—Carbon mitigation
and coal provisions
Sec. 111. Expansion and
modification of advanced coal project investment credit.
Sec. 112. Expansion and
modification of coal gasification investment credit.
Sec. 113. Temporary increase in
coal excise tax; funding of Black Lung Disability Trust Fund.
Sec. 114. Special rules for
refund of the coal excise tax to certain coal producers and
exporters.
Sec. 115. Tax credit for carbon
dioxide sequestration.
Sec. 116. Certain income and
gains relating to industrial source carbon dioxide treated as qualifying income
for publicly traded partnerships.
Sec. 117. Carbon audit of the
tax code.
TITLE II—Transportation and
domestic fuel security provisions
Sec. 201. Inclusion of
cellulosic biofuel in bonus depreciation for biomass ethanol plant
property.
Sec. 202. Credits for biodiesel
and renewable diesel.
Sec. 203. Clarification that
credits for fuel are designed to provide an incentive for United States
production.
Sec. 204. Extension and
modification of alternative fuel credit.
Sec. 205. Credit for new
qualified plug-in electric drive motor vehicles.
Sec. 206. Exclusion from heavy
truck tax for idling reduction units and advanced insulation.
Sec. 207. Alternative fuel
vehicle refueling property credit.
Sec. 208. Certain income and
gains relating to alcohol fuels and mixtures, biodiesel fuels and mixtures, and
alternative fuels and mixtures treated as qualifying income for publicly traded
partnerships.
Sec. 209. Extension and
modification of election to expense certain refineries.
Sec. 210. Extension of
suspension of taxable income limit on percentage depletion for oil and natural
gas produced from marginal properties.
Sec. 211. Transportation fringe
benefit to bicycle commuters.
TITLE III—Energy conservation and
efficiency provisions
Sec. 301. Qualified energy
conservation bonds.
Sec. 302. Credit for
nonbusiness energy property.
Sec. 303. Energy efficient
commercial buildings deduction.
Sec. 304. New energy efficient
home credit.
Sec. 305. Modifications of
energy efficient appliance credit for appliances produced after
2007.
Sec. 306. Accelerated recovery period for
depreciation of smart meters and smart grid systems.
Sec. 307. Qualified green
building and sustainable design projects.
Sec. 308. Special depreciation
allowance for certain reuse and recycling property.
TITLE IV—Revenue
provisions
Sec. 401. Limitation of
deduction for income attributable to domestic production of oil, gas, or
primary products thereof.
Sec. 402. Elimination of the
different treatment of foreign oil and gas extraction income and foreign oil
related income for purposes of the foreign tax credit.
Sec. 403. Broker reporting of
customer’s basis in securities transactions.
Sec. 404. 0.2 percent FUTA
surtax.
Sec. 405. Increase and
extension of Oil Spill Liability Trust Fund tax.
<enum>I</enum><header display-inline="yes-display-inline">Energy production incentives</header>
<subtitle commented="no" id="H227B3F5A082B4A329FF074AD4C8C9FA7" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Renewable energy incentives</header>
<section commented="no" display-inline="no-display-inline" id="H9FAC906BFDA94EACA54956642D001D00" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Renewable energy credit</header>
<subsection id="H60199794A5ED44AC90BFC8959D6B7C46"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="H072CB6DEB58F4FD5B59C9CBAF4ACF586"><enum>(1)</enum><header>1-year extension for
wind and refined coal facilities</header><text>Paragraphs (1) and (8) of
section 45(d) are each amended by striking <quote>January 1, 2009</quote> and
inserting <quote>January 1, 2010</quote>.</text>
</paragraph><paragraph id="id277EE1196CD64967AE814085995A9C28"><enum>(2)</enum><header>2-year extension for
certain other facilities</header><text>Each of the following provisions of
section 45(d) is amended by striking <quote>January 1, 2009</quote> and
inserting <quote>January 1, 2011</quote>:</text>
<subparagraph id="idDE8F9AB6677F410DA071477AEB737C43"><enum>(A)</enum><text>Clauses (i) and (ii) of
paragraph (2)(A).</text>
</subparagraph><subparagraph id="id737AD1CA14554D5B877CABAF7E049BC7"><enum>(B)</enum><text>Clauses (i)(I) and (ii)
of paragraph (3)(A).</text>
</subparagraph><subparagraph id="id84BFBCA0A2D644FEAB1291D9F781FF90"><enum>(C)</enum><text>Paragraph (4).</text>
</subparagraph><subparagraph id="idBC2190371EB44430A9F2AAC9309FCE24"><enum>(D)</enum><text>Paragraph (5).</text>
</subparagraph><subparagraph id="id3342320390754B5D94153FEED6628052"><enum>(E)</enum><text>Paragraph (6).</text>
</subparagraph><subparagraph id="id7BD8757657544828859FFA89C9AD2C56"><enum>(F)</enum><text>Paragraph (7).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id642E3E04B0CA4814B2AD9402AD8D70C0"><enum>(G)</enum><text>Subparagraphs (A) and (B)
of paragraph (9).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idD1F334F7E11849A6B2ACDF0BD71A54B3"><enum>(b)</enum><header>Modification of refined
coal as a qualified energy resource</header>
<paragraph commented="no" id="id10FD0195267D42F0B9317DD4C2669387"><enum>(1)</enum><header>Elimination of
increased market value test</header><text>Section 45(c)(7)(A)(i) (defining
refined coal), as amended by section 108, is amended—</text>
<subparagraph commented="no" id="id221F572CC4FD437C8C93224FA4205A53"><enum>(A)</enum><text>by striking subclause
(IV),</text>
</subparagraph><subparagraph commented="no" id="id82A7F5641F874B11ADD202852C9A57E2"><enum>(B)</enum><text>by adding
<quote>and</quote> at the end of subclause (II), and</text>
</subparagraph><subparagraph commented="no" id="id050372CD4D8B4659A74BA23F93152A53"><enum>(C)</enum><text>by striking <quote>,
and</quote> at the end of subclause (III) and inserting a period.</text>
</subparagraph></paragraph><paragraph commented="no" id="id3493B4DDB1CC4B399A3EFB141916897F"><enum>(2)</enum><header>Increase in required
emission reduction</header><text>Section 45(c)(7)(B) (defining qualified
emission reduction) is amended by inserting <quote>at least 40 percent of the
emissions of</quote> after <quote>nitrogen oxide and</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H34794F7B56E5418B94CCB6B49FB7DBD"><enum>(c)</enum><header display-inline="yes-display-inline">Trash facility clarification</header><text display-inline="yes-display-inline">Paragraph (7) of section 45(d) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4E7E893B1D7B4FFAA41063D12245F9BD"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>facility which
burns</quote> and inserting <quote>facility (other than a facility described in
paragraph (6)) which uses</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8B7084AD30684BF4B7F5FD874987EB00"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H70E162CC85BC4ED3B840904EBCD05257"><enum>(d)</enum><header display-inline="yes-display-inline">Expansion of biomass facilities</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDCF05C5740D94BB9B83E38ED8F8DD2E8"><enum>(1)</enum><header display-inline="yes-display-inline">Open-loop biomass facilities</header><text display-inline="yes-display-inline">Paragraph (3) of section 45(d) is amended
by redesignating subparagraph (B) as subparagraph (C) and by inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H1D29EEDE4A57449400D0CCE3F850AF00" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H184DCA100941430DA9D57D8EEC5D0236"><enum>(B)</enum><header display-inline="yes-display-inline">Expansion of facility</header><text display-inline="yes-display-inline">Such term shall include a new unit placed
in service after the date of the enactment of this subparagraph in connection
with a facility described in subparagraph (A), but only to the extent of the
increased amount of electricity produced at the facility by reason of such new
unit.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFBB344FE28F044609C29644BCF00EF09"><enum>(2)</enum><header display-inline="yes-display-inline">Closed-loop biomass
facilities</header><text display-inline="yes-display-inline">Paragraph (2) of
section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C)
and inserting after subparagraph (A) the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA814328FA1D5454281144BDEC008173" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HAA5F88E8962D4AA6AB83913E11F4513B"><enum>(B)</enum><header display-inline="yes-display-inline">Expansion of facility</header><text display-inline="yes-display-inline">Such term shall include a new unit placed
in service after the date of the enactment of this subparagraph in connection
with a facility described in subparagraph (A)(i), but only to the extent of the
increased amount of electricity produced at the facility by reason of such new
unit.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H873FD2DB1D094A0F9FA0D428001FDBA"><enum>(e)</enum><header display-inline="yes-display-inline">Modification of rules for hydropower
production</header><text display-inline="yes-display-inline">Subparagraph (C)
of section 45(c)(8) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H913573B4D5F341D1BEEFD768481297C" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H56B9A2B460A54FB294D52BAEE76991C0"><enum>(C)</enum><header display-inline="yes-display-inline">Nonhydroelectric dam</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), a
facility is described in this subparagraph if—</text>
<clause commented="no" display-inline="no-display-inline" id="H1E69A39A40A3496D98CBA43463991EF1"><enum>(i)</enum><text display-inline="yes-display-inline">the hydroelectric project installed on the
nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission
and meets all other applicable environmental, licensing, and regulatory
requirements,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H91022BFFE404442282F88537FF4CFA2E"><enum>(ii)</enum><text display-inline="yes-display-inline">the nonhydroelectric dam was placed in
service before the date of the enactment of this paragraph and operated for
flood control, navigation, or water supply purposes and did not produce
hydroelectric power on the date of the enactment of this paragraph, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7CA1DB9FE3E94BC39661118F6BA9C8A7"><enum>(iii)</enum><text display-inline="yes-display-inline">the hydroelectric project is operated so
that the water surface elevation at any given location and time that would have
occurred in the absence of the hydroelectric project is maintained, subject to
any license requirements imposed under applicable law that change the water
surface elevation for the purpose of improving environmental quality of the
affected waterway.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">The Secretary, in consultation with the
Federal Energy Regulatory Commission, shall certify if a hydroelectric project
licensed at a nonhydroelectric dam meets the criteria in clause (iii). Nothing
in this section shall affect the standards under which the Federal Energy
Regulatory Commission issues licenses for and regulates hydropower projects
under part I of the Federal Power
Act.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H18231907CB4C4A0681EC200028F2EFB6"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB1E48F15F42C43E5B3267FF5625494FD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this
subsection, the amendments made by this section shall apply to property
originally placed in service after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id335A93B775E74C94956498F6C677C4F5"><enum>(2)</enum><header>Refined
coal</header><text display-inline="yes-display-inline">The amendments made by
subsection (b) shall apply to coal produced and sold from facilities placed in
service after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1D4DD5FC3F684C779D39011EF7F2B11"><enum>(3)</enum><header display-inline="yes-display-inline">Trash facility clarification</header><text display-inline="yes-display-inline">The amendments made by subsection (c) shall
apply to electricity produced and sold after the date of the enactment of this
Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H97450CA9071640E0936D5B44903E8B7C"><enum>(4)</enum><header display-inline="yes-display-inline">Expansion of biomass
facilities</header><text display-inline="yes-display-inline">The amendments
made by subsection (d) shall apply to property placed in service after the date
of the enactment of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H0114C8F49D044243BCE46F84970087E2" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Production credit for electricity produced
from marine renewables</header>
<subsection commented="no" display-inline="no-display-inline" id="HABA000F32B1B45C0BC0745FB2476FD45"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 45(c) is amended
by striking <quote>and</quote> at the end of subparagraph (G), by striking the
period at the end of subparagraph (H) and inserting <quote>, and</quote>, and
by adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H620BA7E517CA45429485ADA3BF7B7C73" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H1D58B25270B24DF58B5D7E7D5785DF23"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable
energy.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8A3BEC43333E4FE39203F13649DACAB"><enum>(b)</enum><header display-inline="yes-display-inline">Marine renewables</header><text display-inline="yes-display-inline">Subsection (c) of section 45 is amended by
adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA4A1CE9A49964D80A9002E869F5C4C00" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H26AB21C9405F4E41A9827F68C5AC3300"><enum>(10)</enum><header display-inline="yes-display-inline">Marine and hydrokinetic renewable
energy</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H14C78BF9E1B7413A9C6E49CE1421B74B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>marine and hydrokinetic
renewable energy</term> means energy derived from—</text>
<clause commented="no" display-inline="no-display-inline" id="H42D58B2A5A3C4744A837779710706235"><enum>(i)</enum><text display-inline="yes-display-inline">waves, tides, and currents in oceans,
estuaries, and tidal areas,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEC0AC1679A4A4962A92D5D689ED8A324"><enum>(ii)</enum><text display-inline="yes-display-inline">free flowing water in rivers, lakes, and
streams,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAB470988A6CA4AD382C49DAF47140048"><enum>(iii)</enum><text display-inline="yes-display-inline">free flowing water in an irrigation system,
canal, or other man-made channel, including projects that utilize nonmechanical
structures to accelerate the flow of water for electric power production
purposes, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8A407083626346B7B79CBD951116D951"><enum>(iv)</enum><text display-inline="yes-display-inline">differentials in ocean temperature (ocean
thermal energy conversion).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5F9C0733EE994283953CABD2F220026"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Such term shall not include any energy
which is derived from any source which utilizes a dam, diversionary structure
(except as provided in subparagraph (A)(iii)), or impoundment for electric
power production
purposes.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HDC080883D1D14822920069CC53F1F28"><enum>(c)</enum><header display-inline="yes-display-inline">Definition of facility</header><text display-inline="yes-display-inline">Subsection (d) of section 45 is amended by
adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H2C2EF36BC5184D2090EC881E3D24E5D8" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HBE29E086212F4EFBB36D01C6DF48239"><enum>(11)</enum><header display-inline="yes-display-inline">Marine and hydrokinetic renewable energy
facilities</header><text display-inline="yes-display-inline">In the case of a
facility producing electricity from marine and hydrokinetic renewable energy,
the term <term>qualified facility</term> means any facility owned by the
taxpayer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC1C9E7523E1B458BB6FC9F3270A173FD"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at
least 150 kilowatts, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCA736F1CABEE48FAA0FC3C25875DBA0"><enum>(B)</enum><text display-inline="yes-display-inline">which is originally placed in service on or
after the date of the enactment of this paragraph and before January 1,
2012.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H39CCE961D5394E739B94BF3D6EB31FF6"><enum>(d)</enum><header display-inline="yes-display-inline">Credit rate</header><text display-inline="yes-display-inline">Subparagraph (A) of section 45(b)(4) is
amended by striking <quote>or (9)</quote> and inserting <quote>(9), or
(11)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5ED11E6395AB45798F709C43B69B01BB"><enum>(e)</enum><header display-inline="yes-display-inline">Coordination with small irrigation
power</header><text display-inline="yes-display-inline">Paragraph (5) of
section 45(d), as amended by section 101, is amended by striking <quote>January
1, 2012</quote> and inserting <quote>the date of the enactment of paragraph
(11)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4D4194274BC84897B678311F49188FA8"><enum>(f)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to electricity produced and sold after the date of the
enactment of this Act, in taxable years ending after such date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9BC4ADD318884240A300FD5793521337" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">Energy credit</header>
<subsection commented="no" display-inline="no-display-inline" id="HEC77645A5EE64335A3BCA47B84AA5E"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4B93E781DDFA47E8A4AE855FAA1946AD"><enum>(1)</enum><header display-inline="yes-display-inline">Solar energy property</header><text display-inline="yes-display-inline">Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of
section 48(a) are each amended by striking <quote>January 1, 2009</quote> and
inserting <quote>January 1, 2017</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H634D66048FC946338FE146E6712F177D"><enum>(2)</enum><header display-inline="yes-display-inline">Fuel cell property</header><text display-inline="yes-display-inline">Subparagraph (E) of section 48(c)(1) is
amended by striking <quote>December 31, 2008</quote> and inserting
<quote>December 31, 2016</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3D52BBD60B04D9B98E501287979B900"><enum>(3)</enum><header display-inline="yes-display-inline">Microturbine property</header><text display-inline="yes-display-inline">Subparagraph (E) of section 48(c)(2) is
amended by striking <quote>December 31, 2008</quote> and inserting
<quote>December 31, 2016</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB45D0813B48046D68D60F40900406526"><enum>(b)</enum><header display-inline="yes-display-inline">Allowance of energy credit against
alternative minimum tax</header>
<paragraph commented="no" display-inline="no-display-inline" id="id53BF1C754499413DA53CC06EC2DA9D4B"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 38(c)(4), as amended by the Housing Assistance Tax Act of 2008, is
amended by redesignating clause (vi) as clause (vi) and (vii), respectively,
and by inserting after clause (iv) the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H585167CE44ED4E86946978777609A6BA" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H03D89A0F567B4E9CB870AB04F8BC67A6"><enum>(v)</enum><text display-inline="yes-display-inline">the credit determined under section 46 to
the extent that such credit is attributable to the energy credit determined
under section
48,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id93065CF56F094E16822533D39CDFAE6F"><enum>(2)</enum><header>Technical
amendment</header><text>Clause (vi) of section 38(c)(4)(B), as redesignated by
paragraph (1), is amended by striking <quote>section 47 to the extent
attributable to</quote> and inserting <quote>section 46 to the extent that such
credit is attributable to the rehabilitation credit under section 47, but only
with respect to</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF54C860AC7FC4CFE9DE644F4D2DDB8BB"><enum>(c)</enum><header display-inline="yes-display-inline">Energy credit for combined heat and power
system property</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4767C6A7C2804C13B74C9CBDFD751ED1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 48(a)(3)(A) is amended by striking
<quote>or</quote> at the end of clause (iii), by inserting <quote>or</quote> at
the end of clause (iv), and by adding at the end the following new
clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HCFFE7F3748714BD097DA3C0941FFDFB5" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HBC7D3A49B3DB4F87838D51F7B300BFF4"><enum>(v)</enum><text display-inline="yes-display-inline">combined heat and power system
property,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H154CDAE852A84F61B105D6E969326D00"><enum>(2)</enum><header display-inline="yes-display-inline">Combined Heat and Power System
Property</header><text display-inline="yes-display-inline">Subsection (c) of
section 48 is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id2E300A5099D34BFE89FEE6BE000DB731"><enum>(A)</enum><text>by striking
<quote><header-in-text level="subsection" style="OLC">Qualified fuel cell
property; qualified microturbine property</header-in-text></quote> in the
heading and inserting <quote><header-in-text level="subsection" style="OLC">Definitions</header-in-text></quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDAA313EE8ADC4F3795288B59EA6E3E8B"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA44773243F6D459B8F9D188E1C7F5561" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H27D105E9C19B4DB79BFEB5BFD5543392"><enum>(3)</enum><header display-inline="yes-display-inline">Combined Heat and Power System
Property</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H78BBAD672BB44851BBCD337377E6DF05"><enum>(A)</enum><header display-inline="yes-display-inline">Combined heat and power system
property</header><text display-inline="yes-display-inline">The term
<term>combined heat and power system property</term> means property comprising
a system—</text>
<clause commented="no" display-inline="no-display-inline" id="H44ACB20F78024F32A760B22887F84147"><enum>(i)</enum><text display-inline="yes-display-inline">which uses the same energy source for the
simultaneous or sequential generation of electrical power, mechanical shaft
power, or both, in combination with the generation of steam or other forms of
useful thermal energy (including heating and cooling applications),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7D5BDEE69E334BE5AEE6D7FCDB291B67"><enum>(ii)</enum><text display-inline="yes-display-inline">which produces—</text>
<subclause commented="no" display-inline="no-display-inline" id="H7C726E84194E4130A133CFDF52774C1"><enum>(I)</enum><text display-inline="yes-display-inline">at least 20 percent of its total useful
energy in the form of thermal energy which is not used to produce electrical or
mechanical power (or combination thereof), and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H507B84FEA91743BCB5E213FFAC009D46"><enum>(II)</enum><text display-inline="yes-display-inline">at least 20 percent of its total useful
energy in the form of electrical or mechanical power (or combination
thereof),</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HA0997655823B40A59CE116ADAED2397F"><enum>(iii)</enum><text display-inline="yes-display-inline">the energy efficiency percentage of which
exceeds 60 percent, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H47501F139B354873B19ECCC17681BCC7"><enum>(iv)</enum><text display-inline="yes-display-inline">which is placed in service before January
1, 2017.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3B64F244DEB3424D8BDC4496DEEBD4CA"><enum>(B)</enum><header display-inline="yes-display-inline">Limitation</header>
<clause commented="no" display-inline="no-display-inline" id="HAC52D6A6EE9A4959AD9C6B9BE5F20610"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of combined heat and power
system property with an electrical capacity in excess of the applicable
capacity placed in service during the taxable year, the credit under subsection
(a)(1) (determined without regard to this paragraph) for such year shall be
equal to the amount which bears the same ratio to such credit as the applicable
capacity bears to the capacity of such property.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC5AC95D1BCAB4726885CCE5DEA560192"><enum>(ii)</enum><header display-inline="yes-display-inline">Applicable capacity</header><text display-inline="yes-display-inline">For purposes of clause (i), the term
<term>applicable capacity</term> means 15 megawatts or a mechanical energy
capacity of more than 20,000 horsepower or an equivalent combination of
electrical and mechanical energy capacities.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8D94049E0FD449BFBEDE65D9B355E508"><enum>(iii)</enum><header display-inline="yes-display-inline">Maximum capacity</header><text display-inline="yes-display-inline">The term <term>combined heat and power
system property</term> shall not include any property comprising a system if
such system has a capacity in excess of 50 megawatts or a mechanical energy
capacity in excess of 67,000 horsepower or an equivalent combination of
electrical and mechanical energy capacities.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4A729B6A14814A9200CC06762FB48E72"><enum>(C)</enum><header display-inline="yes-display-inline">Special rules</header>
<clause commented="no" display-inline="no-display-inline" id="H001066A9D611439B915DD19B739073EB"><enum>(i)</enum><header display-inline="yes-display-inline">Energy efficiency percentage</header><text display-inline="yes-display-inline">For purposes of this paragraph, the energy
efficiency percentage of a system is the fraction—</text>
<subclause commented="no" display-inline="no-display-inline" id="HF0D18DF1AB7F45D685B1F9B4B2B4BE3"><enum>(I)</enum><text display-inline="yes-display-inline">the numerator of which is the total useful
electrical, thermal, and mechanical power produced by the system at normal
operating rates, and expected to be consumed in its normal application,
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H34FFFF5C317448DDB3A11D7BF9179418"><enum>(II)</enum><text display-inline="yes-display-inline">the denominator of which is the lower
heating value of the fuel sources for the system.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H598A19FCE5BA4FF2BF37A908FB115D7"><enum>(ii)</enum><header display-inline="yes-display-inline">Determinations made on btu
basis</header><text display-inline="yes-display-inline">The energy efficiency
percentage and the percentages under subparagraph (A)(ii) shall be determined
on a Btu basis.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H30B320081B944BD6B292B8A800DD9238"><enum>(iii)</enum><header display-inline="yes-display-inline">Input and output property not
included</header><text display-inline="yes-display-inline">The term
<term>combined heat and power system property</term> does not include property
used to transport the energy source to the facility or to distribute energy
produced by the facility.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H990D1761EB2A4C5DA671618425095BE8"><enum>(D)</enum><header display-inline="yes-display-inline">Systems using biomass</header><text display-inline="yes-display-inline">If a system is designed to use biomass
(within the meaning of paragraphs (2) and (3) of section 45(c) without regard
to the last sentence of paragraph (3)(A)) for at least 90 percent of the energy
source—</text>
<clause commented="no" display-inline="no-display-inline" id="H4B33024AB00F4330AFAA2C081391B240"><enum>(i)</enum><text display-inline="yes-display-inline">subparagraph (A)(iii) shall not apply,
but</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF085757680ED48288595A4BFE05B5BE9"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of credit determined under
subsection (a) with respect to such system shall not exceed the amount which
bears the same ratio to such amount of credit (determined without regard to
this subparagraph) as the energy efficiency percentage of such system bears to
60
percent.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8B37ECB30DAE43F78FB5F0FA026CBC8B"><enum>(3)</enum><header>Conforming
amendment</header><text>Section 48(a)(1) is amended by striking
<quote>paragraphs (1)(B) and (2)(B)</quote> and inserting <quote>paragraphs
(1)(B), (2)(B), and (3)(B)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1C7CEFA059A24F16A6282E9B6CA700C8"><enum>(d)</enum><header display-inline="yes-display-inline">Increase of credit limitation for fuel cell
property</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 48(c)(1) is amended by striking <quote>$500</quote> and inserting
<quote>$1,500</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H44EF655636604B35AC76037CA2FF5154"><enum>(e)</enum><header display-inline="yes-display-inline">Public utility property taken into
account</header>
<paragraph commented="no" display-inline="no-display-inline" id="H340478ED5C504ABFB762AC226EEB08A7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9F9A7A9928CD471D98D7931001566BEF"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HCA5E5463BF2B4307A4E730959B6FEC32"><enum>(A)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 48(c) is amended
by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph
(D).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4B5692FDE17B4EC083A376EC73D85E7C"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c) is amended
by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph
(D).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9A685C8E85FF470ABC2E82FA4BEE95B"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9F63004F6F4B4D259DFE200E1669C45"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this
subsection, the amendments made by this section shall take effect on the date
of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBA20D7B098E8471DB42EF21FDEC9AAEF"><enum>(2)</enum><header display-inline="yes-display-inline">Allowance against alternative minimum
tax</header><text display-inline="yes-display-inline">The amendments made by
subsection (b) shall apply to credits determined under section 46 of the
Internal Revenue Code of 1986 in taxable years beginning after the date of the
enactment of this Act and to carrybacks of such credits.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB6F77140FC3C430D9478C44988CFDEC4"><enum>(3)</enum><header display-inline="yes-display-inline">Combined heat and power and fuel cell
property</header><text display-inline="yes-display-inline">The amendments made
by subsections (c) and (d) shall apply to periods after the date of the
enactment of this Act, in taxable years ending after such date, under rules
similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as
in effect on the day before the date of the enactment of the Revenue
Reconciliation Act of 1990).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HADB27085C1714D27B0EE675D85C5D1E8"><enum>(4)</enum><header display-inline="yes-display-inline"> Public utility property</header><text display-inline="yes-display-inline">The amendments made by subsection (e) shall
apply to periods after February 13, 2008, in taxable years ending after such
date, under rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).</text>
</paragraph></subsection></section><section commented="no" id="idEFC710EF691B4C469F5ECFADA226D294"><enum>104.</enum><header>Energy credit for
small wind property</header>
<subsection commented="no" id="idC44694E536AE458F898D7B499A3FB8C4"><enum>(a)</enum><header>In
general</header><text>Section 48(a)(3)(A), as amended by section 103, is
amended by striking <quote>or</quote> at the end of clause (iv), by adding
<quote>or</quote> at the end of clause (v), and by inserting after clause (v)
the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE52E1EFACB414EC89DC92B45390C56FC" reported-display-style="italic" style="OLC">
<clause commented="no" id="id9E68BC35102540FAB79D24194F9CBED0"><enum>(vi)</enum><text>qualified small wind
energy
property,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="idC7123C81BB8E4C6A87186BDEE91D0336"><enum>(b)</enum><header>30 percent
credit</header><text>Section 48(a)(2)(A)(i) is amended by striking
<quote>and</quote> at the end of subclause (II) and by inserting after
subclause (III) the following new subclause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id2874F8BDFA7645DCA84651E8220C8123" reported-display-style="italic" style="OLC">
<subclause commented="no" id="id13236264CDEE4ED2BA4BB2AF24C66F31"><enum>(IV)</enum><text>qualified small wind
energy property,
and</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="idA2A9402E6FF84AD28F0127C867D917C8"><enum>(c)</enum><header>Qualified small wind
energy property</header><text>Section 48(c), as amended by section 103, is
amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="" changed="added" id="id7A647D39043345B997B0BA49B219BC69" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="idACD448F899A64D23941860F76C212047"><enum>(4)</enum><header>Qualified small wind
energy property</header>
<subparagraph commented="no" id="id6E49C72FD36F41E7A54CA1A9BD0AC626"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified small wind energy
property</term> means property which uses a qualifying small wind turbine to
generate electricity.</text>
</subparagraph><subparagraph commented="no" id="idD00CBF83246C4EAA991BC4F813044505"><enum>(B)</enum><header>Limitation</header><text>In
the case of qualified small wind energy property placed in service during the
taxable year, the credit otherwise determined under subsection (a)(1) for such
year with respect to all such property of the taxpayer shall not exceed
$4,000.</text>
</subparagraph><subparagraph commented="no" id="idFCD731690B9C45AE9088034F039282C6"><enum>(C)</enum><header>Qualifying small wind
turbine</header><text>The term <term>qualifying small wind turbine</term> means
a wind turbine which has a nameplate capacity of not more than 100
kilowatts.</text>
</subparagraph><subparagraph commented="no" id="id80564AA506C24F44818CFB1B25959F9D"><enum>(D)</enum><header>Termination</header><text>The
term <term>qualified small wind energy property</term> shall not include any
property for any period after December 31,
2016.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCF016CD95327498188548B00AA2C04A8"><enum>(d)</enum><header>Conforming
amendment</header><text>Section 48(a)(1), as amended by section 103, is amended
by striking <quote>paragraphs (1)(B), (2)(B), and (3)(B)</quote> and inserting
<quote>paragraphs (1)(B), (2)(B), (3)(B), and (4)(B)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idADB41F94F0934221BDE96AED97AB00A3"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after the date of the enactment of this Act, in taxable years ending after such
date, under rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).</text>
</subsection></section><section display-inline="no-display-inline" id="HE0B63540210248F7A6553F14B7E4C56" section-type="subsequent-section"><enum>105.</enum><header>Energy credit for
geothermal heat pump systems</header>
<subsection id="HFDFC73E5EBCA4DDBB8D64C00C32D0591"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of
section 48(a)(3),
as amended by this Act, is amended by striking
<quote>or</quote> at the end of clause (v), by inserting <quote>or</quote> at
the end of clause (vi), and by adding at the end the following new
clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H157A746DEAD648F9BF2DC3688D7B67A4" reported-display-style="italic" style="OLC">
<clause id="H45C7252E06DA4733BE38B045ECE2CFA0"><enum>(vii)</enum><text>equipment which uses
the ground or ground water as a thermal energy source to heat a structure or as
a thermal energy sink to cool a structure, but only with respect to periods
ending before January 1,
2017,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3C18C74A5F234E89917F0053E0426297"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after the date of the enactment of this Act, in taxable years ending after such
date, under rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H5ED789E7E8984A7B98387E05F95EF1FB" section-type="subsequent-section"><enum>106.</enum><header display-inline="yes-display-inline">Credit for residential energy efficient
property</header>
<subsection commented="no" display-inline="no-display-inline" id="H0AE8EBEDC3BA472EBB419F76F6251599"><enum>(a)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline">Section 25D(g) is amended by striking
<quote>December 31, 2008</quote> and inserting <quote>December 31,
2016</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB3844B98040B4DF6BF8855F000F700A6"><enum>(b)</enum><header display-inline="yes-display-inline">Removal of limitation for solar electric
property</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAC9CDC73A45246538FECA973584E00FC"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25D(b)(1), as amended by
subsections (c) and (d), is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id0D4B3336100942AFA2E50EF5E1DB9F0C"><enum>(A)</enum><text display-inline="yes-display-inline">by striking subparagraph (A), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6A65226FB6D44FE197EC0AA49F0E02DD"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (B) through
(E) as subparagraphs (A) through and (D), respectively.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H983C1D96F07E41B5A38188A0080082B5"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 25D(e)(4)(A), as amended by
subsections (c) and (d), is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id7A576063255E4F94B5036251465E8F69"><enum>(A)</enum><text display-inline="yes-display-inline">by striking clause (i), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98607EC3CED24D86A48E747AE69812C2"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating clauses (ii) through (v)
as clauses (i) and (iv), respectively.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H11E916D254AA4139BB7E7C47EC1EE261"><enum>(c)</enum><header display-inline="yes-display-inline">Credit for residential wind
property</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAD4B1A14BB8D44CE9C43EC37377F6CA9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25D(a) is amended by striking
<quote>and</quote> at the end of paragraph (2), by striking the period at the
end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H1C63D35F3DE14421002577EA4BE5FC59" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE47A7AA58C0343D59B6F633F86CE8C74"><enum>(4)</enum><text display-inline="yes-display-inline">30 percent of the qualified small wind
energy property expenditures made by the taxpayer during such
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE78EF330A0F9466699F5BD6F54B3DFD7"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">Section 25D(b)(1) is amended by striking
<quote>and</quote> at the end of subparagraph (B), by striking the period at
the end of subparagraph (C) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HCD446BBFB5C84960B7C9CBDE5E083DA3" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HB5C81CF3ABE444D3A076573B00F8E890"><enum>(D)</enum><text display-inline="yes-display-inline">$500 with respect to each half kilowatt of
capacity (not to exceed $4,000) of wind turbines for which qualified small wind
energy property expenditures are
made.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB815A3F98DE94DD9970072705F705FDE"><enum>(3)</enum><header display-inline="yes-display-inline">Qualified small wind energy property
expenditures</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD24C6FA01FA34D1CA640F9741434ECB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25D(d) is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H7886019951BF42469D2F49FEE6E4DFB8" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H10ECE916613841E49E756326BA267F95"><enum>(4)</enum><header display-inline="yes-display-inline">Qualified small wind energy property
expenditure</header><text display-inline="yes-display-inline">The term
<term>qualified small wind energy property expenditure</term> means an
expenditure for property which uses a wind turbine to generate electricity for
use in connection with a dwelling unit located in the United States and used as
a residence by the
taxpayer.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8ADA5F095229490EA4447FCF6C1F0051"><enum>(B)</enum><header display-inline="yes-display-inline">No double benefit</header><text display-inline="yes-display-inline">Section 45(d)(1) is amended by adding at
the end the following new sentence: <quote>Such term shall not include any
facility with respect to which any qualified small wind energy property
expenditure (as defined in subsection (d)(4) of section 25D) is taken into
account in determining the credit under such section.</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H620566E0C5DA43B290D73D5233C38C92"><enum>(4)</enum><header display-inline="yes-display-inline">Maximum expenditures in case of joint
occupancy</header><text display-inline="yes-display-inline">Section
25D(e)(4)(A) is amended by striking <quote>and</quote> at the end of clause
(ii), by striking the period at the end of clause (iii) and inserting <quote>,
and</quote>, and by adding at the end the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5A0CF040496241CA000000DBF404502F" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H706DF7D37CF048DFA9B6A1EDFABC21E"><enum>(iv)</enum><text display-inline="yes-display-inline">$1,667 in the case of each half kilowatt of
capacity (not to exceed $13,333) of wind turbines for which qualified small
wind energy property expenditures are
made.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H11ED1E8DEE464E20B615536094D8BE2B"><enum>(d)</enum><header display-inline="yes-display-inline">Credit for geothermal heat pump
systems</header>
<paragraph commented="no" display-inline="no-display-inline" id="H75450415236441238F99DF0049AA0086"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25D(a), as amended by subsection
(c), is amended by striking <quote>and</quote> at the end of paragraph (3), by
striking the period at the end of paragraph (4) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HDB01C5B6FDBA41C500904C656431B339" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H955CCC033A9C4BE4B14B98F3B286257"><enum>(5)</enum><text display-inline="yes-display-inline">30 percent of the qualified geothermal heat
pump property expenditures made by the taxpayer during such
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HED3CEFFA513549F2B245F1B66F5B6344"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">Section 25D(b)(1), as amended by subsection
(c), is amended by striking <quote>and</quote> at the end of subparagraph (C),
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 changed="added" display-inline="no-display-inline" id="H96C04EFC50274504AFBAC597C30E3D8" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H217A406B52BF4CC4BC09B3DD37005368"><enum>(E)</enum><text display-inline="yes-display-inline">$2,000 with respect to any qualified
geothermal heat pump property
expenditures.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H74637E4AECBD4B7D9919B967008EF184"><enum>(3)</enum><header display-inline="yes-display-inline">Qualified geothermal heat pump property
expenditure</header><text display-inline="yes-display-inline">Section 25D(d),
as amended by subsection (c), is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H1711CFBB11954553B054A627D28BFDEF" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HEAC45F0A9C924046A7B6ECB5C5F424C5"><enum>(5)</enum><header display-inline="yes-display-inline">Qualified geothermal heat pump property
expenditure</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H437F8089C4344C0D90E4B0F554001549"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified geothermal heat
pump property expenditure</term> means an expenditure for qualified geothermal
heat pump property installed on or in connection with a dwelling unit located
in the United States and used as a residence by the taxpayer.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H82072B2A872F4A0A9C49587760E229CF"><enum>(B)</enum><header display-inline="yes-display-inline">Qualified geothermal heat pump
property</header><text display-inline="yes-display-inline">The term
<quote>qualified geothermal heat pump property</quote> means any equipment
which—</text>
<clause commented="no" display-inline="no-display-inline" id="HAE175F3C5F9B48C7BDD1D8B64DA5D0E5"><enum>(i)</enum><text display-inline="yes-display-inline">uses the ground or ground water as a
thermal energy source to heat the dwelling unit referred to in subparagraph (A)
or as a thermal energy sink to cool such dwelling unit, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC7585C35CCE3426DB5D3382883A1D252"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the requirements of the Energy Star
program which are in effect at the time that the expenditure for such equipment
is
made.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDC358ACA3F284D5AA8F0840057CBE75F"><enum>(4)</enum><header display-inline="yes-display-inline">Maximum expenditures in case of joint
occupancy</header><text display-inline="yes-display-inline">Section
25D(e)(4)(A), as amended by subsection (c), is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end
the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H991F3639274049B1BE10E0DE55C2A96F" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HC15C6711DC4447F2B8BE69A509BA531"><enum>(v)</enum><text display-inline="yes-display-inline">$6,667 in the case of any qualified
geothermal heat pump property
expenditures.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6F0C93D127294A5F8E5721FF1860BEB"><enum>(e)</enum><header display-inline="yes-display-inline">Credit allowed against alternative minimum
tax</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA52E6E6054C14F38BF004961DB00382B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (c) of section 25D is amended to
read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H7BFD2B831E3049F0820092734CB3DC5E" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H96E96289F0494769A0E7BEABA74B2FCC"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation based on amount of tax;
carryforward of unused credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="H81FB8EDBCFDE4052B8A7F5A17DE7CAC9"><enum>(1)</enum><header display-inline="yes-display-inline">Limitation based on amount of
tax</header><text display-inline="yes-display-inline">In the case of a taxable
year to which section 26(a)(2) does not apply, the credit allowed under
subsection (a) for the taxable year shall not exceed the excess of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA89AD31D54554314987D545114462E10"><enum>(A)</enum><text display-inline="yes-display-inline">the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by section 55, over</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFA6A51F2F3044058A5B3DD2165EAFCB"><enum>(B)</enum><text display-inline="yes-display-inline">the sum of the credits allowable under this
subpart (other than this section) and section 27 for the taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9E51C063F9B947FF8D675827FC701F1F"><enum>(2)</enum><header display-inline="yes-display-inline">Carryforward of unused credit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1523402CCFDB4195BCD82956004969B5"><enum>(A)</enum><header display-inline="yes-display-inline">Rule for years in which all personal
credits allowed against regular and alternative minimum tax</header><text display-inline="yes-display-inline">In the case of a taxable year to which
section 26(a)(2) applies, if the credit allowable under subsection (a) exceeds
the limitation imposed by section 26(a)(2) for such taxable year reduced by the
sum of the credits allowable under this subpart (other than this section), such
excess shall be carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such succeeding taxable year.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H87DFD4FDC83642FCAE8488765100A600"><enum>(B)</enum><header display-inline="yes-display-inline">Rule for other years</header><text display-inline="yes-display-inline">In the case of a taxable year to which
section 26(a)(2) does not apply, if the credit allowable under subsection (a)
exceeds the limitation imposed by paragraph (1) for such taxable year, such
excess shall be carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such succeeding taxable
year.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB6D7F536D7BB47F09F356EFEC36BC781"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H68C6B1EF142A410EA25488545D8DD450"><enum>(A)</enum><text display-inline="yes-display-inline">Section 23(b)(4)(B) is amended by inserting
<quote>and section 25D</quote> after <quote>this section</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H445530E45FBE4CCCA829C633FC7C7FF7"><enum>(B)</enum><text display-inline="yes-display-inline">Section 24(b)(3)(B) is amended by striking
<quote>and 25B</quote> and inserting <quote>, 25B, and 25D</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEA68E0A870024DC0A1DF85AA4108058D"><enum>(C)</enum><text display-inline="yes-display-inline">Section 25B(g)(2) is amended by striking
<quote>section 23</quote> and inserting <quote>sections 23 and
25D</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H73787507E38B458181C400B0FD000955"><enum>(D)</enum><text display-inline="yes-display-inline">Section 26(a)(1) is amended by striking
<quote>and 25B</quote> and inserting <quote>25B, and 25D</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H82D4C8F6524445AE8DDBDF29D21B98F9"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H84BF98CB13F44E65A8F7AE901E83036D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years beginning after
December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2EE4CCFC5A304AFBB1129F57C80D6680"><enum>(2)</enum><header>Solar electric property
limitation</header><text>The amendments made by subsection (b) shall apply to
taxable years beginning after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D6A7EFE19F34AFC81A43ED276246C26"><enum>(3)</enum><header display-inline="yes-display-inline">Application of EGTRRA sunset</header><text display-inline="yes-display-inline">The amendments made by subparagraphs (A)
and (B) of subsection (e)(2) shall be subject to title IX of the Economic
Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the
provisions of such Act to which such amendments relate.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HD437A3962F7B4E4F97437CB1384F81BB" section-type="subsequent-section"><enum>107.</enum><header display-inline="yes-display-inline">New clean renewable energy bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="idFB706A68F0164ED999AD6E2D47C763DB"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart I of part IV of subchapter A of
chapter 1 is amended by adding at the end the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HB6ACEB08E4EC474E91D06FEF08684232" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H54E7B0137002482281878B1EB2BE8BCB" section-type="subsequent-section"><enum>54C.</enum><header display-inline="yes-display-inline">New clean renewable energy bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="H00E8DB8CF1944A2EB3F486C5BCC3D00"><enum>(a)</enum><header display-inline="yes-display-inline">New clean renewable energy
bond</header><text display-inline="yes-display-inline">For purposes of this
subpart, the term <term>new clean renewable energy bond</term> means any bond
issued as part of an issue if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0F1C11D71D724FE8849E59501B56008C"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of the available project
proceeds of such issue are to be used for capital expenditures incurred by
governmental bodies, public power providers, or cooperative electric companies
for one or more qualified renewable energy facilities,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCBEF74B59AFB47B89600047BF1EB4726"><enum>(2)</enum><text display-inline="yes-display-inline">the bond is issued by a qualified issuer,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4E05DCD75508412D8965D4AEC0CF0401"><enum>(3)</enum><text display-inline="yes-display-inline">the issuer designates such bond for
purposes of this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H344D93647ADB44C2BF2D9E79447C28C3"><enum>(b)</enum><header display-inline="yes-display-inline">Reduced credit amount</header><text display-inline="yes-display-inline">The annual credit determined under section
54A(b) with respect to any new clean renewable energy bond shall be 70 percent
of the amount so determined without regard to this subsection.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEFCA34AD06A940B89BCBFABF325E74AB"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation on amount of bonds
designated</header>
<paragraph commented="no" display-inline="no-display-inline" id="H71CF34FDF2784CA3A7F62352FAFFB257"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The maximum aggregate face amount of bonds
which may be designated under subsection (a) by any issuer shall not exceed the
limitation amount allocated under this subsection to such issuer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3B51764359334749A13C5B20733635C0"><enum>(2)</enum><header display-inline="yes-display-inline">National limitation on amount of bonds
designated</header><text display-inline="yes-display-inline">There is a
national new clean renewable energy bond limitation of $800,000,000 which shall
be allocated by the Secretary as provided in paragraph (3), except that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H47063384E64043B2A82346376DA9D24B"><enum>(A)</enum><text display-inline="yes-display-inline">not more than 33<fraction>1/3</fraction>
percent thereof may be allocated to qualified projects of public power
providers,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9827F68FDE3A4911A469E599318894B5"><enum>(B)</enum><text display-inline="yes-display-inline">not more than 33<fraction>1/3</fraction>
percent thereof may be allocated to qualified projects of governmental bodies,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDA3CA9D68EE34A5391E67C4D53D7BA9F"><enum>(C)</enum><text display-inline="yes-display-inline">not more than 33<fraction>1/3</fraction>
percent thereof may be allocated to qualified projects of cooperative electric
companies.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3F030860A72146F28042622E46DD884E"><enum>(3)</enum><header display-inline="yes-display-inline">Method of allocation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HBC9D76A87629459FAED0BD1D6CDE892F"><enum>(A)</enum><header display-inline="yes-display-inline">Allocation among public power
providers</header><text display-inline="yes-display-inline">After the Secretary
determines the qualified projects of public power providers which are
appropriate for receiving an allocation of the national new clean renewable
energy bond limitation, the Secretary shall, to the maximum extent practicable,
make allocations among such projects in such manner that the amount allocated
to each such project bears the same ratio to the cost of such project as the
limitation under paragraph (2)(A) bears to the cost of all such
projects.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H59F9AF5D8D06444893ECCE47D046003E"><enum>(B)</enum><header display-inline="yes-display-inline">Allocation among governmental bodies and
cooperative electric companies</header><text display-inline="yes-display-inline">The Secretary shall make allocations of the
amount of the national new clean renewable energy bond limitation described in
paragraphs (2)(B) and (2)(C) among qualified projects of governmental bodies
and cooperative electric companies, respectively, in such manner as the
Secretary determines appropriate.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8A211A7D3476406A8EC4581623090001"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA6EEF51A5EFC4D4D95F5A4188808D514"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified renewable energy
facility</header><text display-inline="yes-display-inline">The term
<term>qualified renewable energy facility</term> means a qualified facility (as
determined under section 45(d) without regard to paragraphs (8) and (10)
thereof and to any placed in service date) owned by a public power provider, a
governmental body, or a cooperative electric company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H025CA72BE53D4B48B40008791FED08C9"><enum>(2)</enum><header display-inline="yes-display-inline">Public power provider</header><text display-inline="yes-display-inline">The term <term>public power provider</term>
means a State utility with a service obligation, as such terms are defined in
section 217 of the Federal Power Act (as in effect on the date of the enactment
of this paragraph).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3D63DE9257948E09EF9BC19E5805178"><enum>(3)</enum><header display-inline="yes-display-inline">Governmental body</header><text display-inline="yes-display-inline">The term <term>governmental body</term>
means any State or Indian tribal government, or any political subdivision
thereof.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A4CBB25B5214FEDACE5E5BF40135BC5"><enum>(4)</enum><header display-inline="yes-display-inline">Cooperative electric company</header><text display-inline="yes-display-inline">The term <term>cooperative electric
company</term> means a mutual or cooperative electric company described in
section 501(c)(12) or section 1381(a)(2)(C).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7A310B2C23BA4CF597877DE0D940BEE"><enum>(5)</enum><header display-inline="yes-display-inline">Clean renewable energy bond
lender</header><text display-inline="yes-display-inline">The term <term>clean
renewable energy bond lender</term> means a lender which is a cooperative which
is owned by, or has outstanding loans to, 100 or more cooperative electric
companies and is in existence on February 1, 2002, and shall include any
affiliated entity which is controlled by such lender.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3BE978420EB042B88EA5010432522B7B"><enum>(6)</enum><header display-inline="yes-display-inline">Qualified issuer</header><text display-inline="yes-display-inline">The term <term>qualified issuer</term>
means a public power provider, a cooperative electric company, a governmental
body, a clean renewable energy bond lender, or a not-for-profit electric
utility which has received a loan or loan guarantee under the Rural
Electrification
Act.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id17FB8377F5954359B42A38701F0007E2"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="idE1A6CD62BBFF409D9311C4A72E77FAB6"><enum>(1)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 54A(d) is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD2D720FE15B94A4B8F16A0F5F683D311" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idEDE7811282654E7FAF6FA997506AA46E"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified tax credit bond</header><text display-inline="yes-display-inline">The term <term>qualified tax credit
bond</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id244809C00643463BB2B9F56775F2D6A3"><enum>(A)</enum><text display-inline="yes-display-inline">a qualified forestry conservation bond,
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id13659CD4668149DC81CB0622F2CB928E"><enum>(B)</enum><text display-inline="yes-display-inline">a new clean renewable energy bond,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">which
is part of an issue that meets requirements of paragraphs (2), (3), (4), (5),
and
(6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF31431149C43493D865FADDBFFCC93C5"><enum>(2)</enum><text display-inline="yes-display-inline">Subparagraph (C) of section 54A(d)(2) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB75A6C184BB24562B73EFC891B2F8E86" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id98FE2B5E7346446AB185F2BF8A08C051"><enum>(C)</enum><header display-inline="yes-display-inline">Qualified purpose</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<term>qualified purpose</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="id37B8C27346474CE5BB0AC475D5D9A8E0"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a qualified forestry
conservation bond, a purpose specified in section 54B(e), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idB83D778568504CDAA39628BA495B92E0"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a new clean renewable energy
bond, a purpose specified in section
54C(a)(1).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id42A6F39D1127406B80A25BFC877C3A50"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part
IV of subchapter A of chapter 1 is amended by adding at the end the following
new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id94A6B39C945B44D79BBC63C3ABAE6FFF" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H84E4FF4893D849EB890056C916790067" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry bold="off" idref="H85287BA9F6C54044A49405E9007B70A4" level="section">Sec. 54C. Qualified clean renewable energy
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id31424B36D4A24751A17EDAF017CAB210"><enum>(c)</enum><header>Extension for clean
renewable energy bonds</header><text>Subsection (m) of section 54 is amended by
striking <quote>December 31, 2008</quote> and inserting <quote>December 31,
2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id596CBF7C764048ED91A3F04F11067638"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to obligations issued after the date of the enactment
of this Act.</text>
</subsection></section><section id="idDE70223936464509862C746B66527156"><enum>108.</enum><header>Credit for steel
industry fuel</header>
<subsection id="H1A77004B062C4B69A03C898700B55571"><enum>(a)</enum><header>Treatment as refined
coal</header>
<paragraph id="id10B38BCD7AC74F50A83458C3D842FC27"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 45(c)(7) of the Internal
Revenue Code of 1986 (relating to refined coal), as amended by this Act, is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idFA8CF80971434538AE42807ECE847E66" reported-display-style="italic" style="OLC">
<subparagraph id="id9560F32FB0D04C16BD6DD2BD28B2781C"><enum>(A)</enum><header>In
general</header><text>The term <term>refined coal</term> means a fuel—</text>
<clause id="id00A22C7EF5334F01AAEB9A1C0CAD25A0"><enum>(i)</enum><text>which—</text>
<subclause id="ID7814ebf5142143feb9198ac3a55599fd"><enum>(I)</enum><text>is a liquid, gaseous, or
solid fuel produced from coal (including lignite) or high carbon fly ash,
including such fuel used as a feedstock,</text>
</subclause><subclause id="ID551db6ad92d741528823379ca9b12861"><enum>(II)</enum><text>is sold by the taxpayer
with the reasonable expectation that it will be used for purpose of producing
steam,</text>
</subclause><subclause id="ID8d0f9dad030d45b49fc88e6741167e59"><enum>(III)</enum><text>is certified by the
taxpayer as resulting (when used in the production of steam) in a qualified
emission reduction, and</text>
</subclause><subclause id="ID26495ca5c1c94a53800e9ea74c46fe14"><enum>(IV)</enum><text>is produced in such a
manner as to result in an increase of at least 50 percent in the market value
of the refined coal (excluding any increase caused by materials combined or
added during the production process), as compared to the value of the feedstock
coal, or</text>
</subclause></clause><clause id="id8625F6D6440A42CCBF99F6013E806196"><enum>(ii)</enum><text>which is steel industry
fuel.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id37DBACB528D744B385E66E9755B54C28"><enum>(2)</enum><header>Steel industry fuel
defined</header><text>Paragraph (7) of section 45(c) of such Code is amended by
adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB2BEC086748948A4B9118357C2678052" reported-display-style="italic" style="OLC">
<subparagraph id="id71E6E34EB5A1433ABC00FEB8E904B56B"><enum>(C)</enum><header>Steel industry
fuel</header>
<clause id="id84AF639D882D48DCABE92564005BC0A9"><enum>(i)</enum><header>In
general</header><text>The term <term>steel industry fuel</term> means a fuel
which—</text>
<subclause id="idBC38BB5A78CC43E2B664290388AACFF0"><enum>(I)</enum><text>is produced through a
process of liquifying coal waste sludge and distributing it on coal, and</text>
</subclause><subclause id="id3315973B9EFD4391BFF31D42AD6F1A64"><enum>(II)</enum><text>is used as a feedstock
for the manufacture of coke.</text>
</subclause></clause><clause id="idA7EBA0DA173542B19FBA8FF50493BEDE"><enum>(ii)</enum><header>Coal waste
sludge</header><text>The term <term>coal waste sludge</term> means the tar
decanter sludge and related byproducts of the coking process, including such
materials that have been stored in ground, in tanks and in lagoons, that have
been treated as hazardous wastes under applicable Federal environmental rules
absent liquefaction and processing with coal into a feedstock for the
manufacture of
coke.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idFDE582370B164DCBA679D39ADB74A4B7"><enum>(b)</enum><header>Credit amount</header>
<paragraph id="id2E8EB9B024984AB9989D297FCC05B6A7"><enum>(1)</enum><header>In
general</header><text>Paragraph (8) of section 45(e) of the Internal Revenue
Code of 1986 (relating to refined coal production facilities) is amended by
adding at the end the following new subparagraph</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idEE7479DFF502441F98148E44547B9424" reported-display-style="italic" style="OLC">
<subparagraph id="id589FD0F4DEDA44BCA06E4F79213DB39F"><enum>(D)</enum><header>Special rule for steel
industry fuel</header>
<clause id="id54D19E4AFDEC444BAD364B0E9A9C5DD6"><enum>(i)</enum><header>In
general</header><text>In the case of a taxpayer who produces steel industry
fuel—</text>
<subclause id="idE37C64DF681F46E7A4650AB724256547"><enum>(I)</enum><text>this paragraph shall be
applied separately with respect to steel industry fuel and other refined coal,
and</text>
</subclause><subclause id="idAC11FDF9F53841AC972F56946E04D5D8"><enum>(II)</enum><text>in applying this
paragraph to steel industry fuel, the modifications in clause (ii) shall
apply.</text>
</subclause></clause><clause id="idE3C753F3C59E446083F481B67EF0B0A7"><enum>(ii)</enum><header>Modifications</header>
<subclause id="id05F85FBC011242F08A8020EF3E05F3A6"><enum>(I)</enum><header>Credit
amount</header><text>Subparagraph (A) shall be applied by substituting
<quote>$2 per barrel-of-oil equivalent</quote> for <quote>$4.375 per
ton</quote>.</text>
</subclause><subclause id="idCDFF21C1B1B74C23B01EADCBCC699F9C"><enum>(II)</enum><header>Credit
period</header><text>In lieu of the 10-year period referred to in clauses (i)
and (ii)(II) of subparagraph (A), the credit period shall be the period
beginning on the later of the date such facility was originally placed in
service, the date the modifications described in clause (iii) were placed in
service, or October 1, 2008, and ending on the later of December 31, 2009, or
the date which is 1 year after the date such facility or the modifications
described in clause (iii) were placed in service.</text>
</subclause><subclause id="idF4F64205D18841ACA4D48F16AD0ECD1A"><enum>(III)</enum><header>No
phaseout</header><text>Subparagraph (B) shall not apply.</text>
</subclause></clause><clause id="idF4AE9631754647DBA8A53E78CE83026D"><enum>(iii)</enum><header>Modifications</header><text>The
modifications described in this clause are modifications to an existing
facility which allow such facility to produce steel industry fuel.</text>
</clause><clause id="idC1615003ADA3463B9458FBBFFE7DAB48"><enum>(iv)</enum><header>Barrel-of-oil
equivalent</header><text>For purposes of this subparagraph, a barrel-of-oil
equivalent is the amount of steel industry fuel that has a Btu content of
5,800,000
Btus.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id0E9BF974175F47ABA0DB694AF9A94FBE"><enum>(2)</enum><header>Inflation
adjustment</header><text>Paragraph (2) of section 45(b) of such Code is amended
by inserting <quote>the $3 amount in subsection (e)(8)(D)(ii)(I),</quote> after
<quote>subsection (e)(8)(A),</quote>.</text>
</paragraph></subsection><subsection commented="no" id="id0687EA1251A54305803AD68DA5AECFEF"><enum>(c)</enum><header>Termination</header><text>Paragraph
(8) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(d)</external-xref> of the Internal Revenue Code of 1986 (relating to refined
coal production facility), as amended by this Act, is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id57E157207CF94E59BB25F0AEAB6F76FB" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="id0B21322D09B148678D7F6CD821458AB3"><enum>(8)</enum><header>Refined coal production
facility</header><text>In the case of a facility that produces refined coal,
the term <term>refined coal production facility</term> means—</text>
<subparagraph commented="no" id="id0EEA50A0015D4A72AA1ABC507253EF2E"><enum>(A)</enum><text>with respect to a
facility producing steel industry fuel, any facility (or any modification to a
facility) which is placed in service before January 1, 2010, and</text>
</subparagraph><subparagraph commented="no" id="id489A7243A4404AD388D2412C9D755983"><enum>(B)</enum><text>with respect to any other
facility producing refined coal, any facility placed in service after the date
of the enactment of the American Jobs Creation Act of 2004 and before January
1,
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idC3907F33B0344557858B27947758E24C"><enum>(d)</enum><header>Coordination with
credit for producing fuel from a nonconventional source</header>
<paragraph id="id006AFD2BB58644DFBCA342F7F336AC31"><enum>(1)</enum><header>In
general</header><text>Subparagraph (B) of section 45(e)(9) of the Internal
Revenue Code of 1986 is amended—</text>
<subparagraph id="id9AC83FA0076045649DF292F1733479C7"><enum>(A)</enum><text>by striking <quote>The
term</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id72740100D6EE49A3AFF83A25DC178A83" reported-display-style="italic" style="OLC">
<clause id="id9D520BB958834F41B92E9CCFC50E4344"><enum>(i)</enum><header>In
general</header><text>The term</text>
</clause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id4A3AFFF4152A43E4965B444C4330CEC1"><enum>(B)</enum><text>by adding at the end the
following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id1E04B9DE564948AC957428E9139FCF7B" reported-display-style="italic" style="OLC">
<clause id="id7B2182499B5841F1B749911B787780CF"><enum>(ii)</enum><header>Exception for steel
industry coal</header><text>In the case of a facility producing steel industry
fuel, clause (i) shall not apply to so much of the refined coal produced at
such facility as is steel industry
fuel.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id663BF72F6C1E442DAE5994E8DF0214A8"><enum>(2)</enum><header>No double
benefit</header><text>Section 45K(g)(2) of such Code is amended by adding at
the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idAA5F517387EA426D9FBB56ACFDF6064C" reported-display-style="italic" style="OLC">
<subparagraph id="id67044DE4AB09437B8A8F217BBD3FB11B"><enum>(E)</enum><header>Coordination with
section 45</header><text>No credit shall be allowed with respect to any
qualified fuel which is steel industry fuel (as defined in section 45(c)(7)) if
a credit is allowed to the taxpayer for such fuel under section
45.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id7E01A17D31C9478FB9D8ADBAF9D794E9"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel
produced and sold after September 30, 2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H529C574471784FDE965272612F947954" section-type="subsequent-section"><enum>109.</enum><header display-inline="yes-display-inline">Special rule to implement FERC and State
electric restructuring policy</header>
<subsection commented="no" display-inline="no-display-inline" id="HF77A14139B854B5FACD553AC8B21C101"><enum>(a)</enum><header display-inline="yes-display-inline">Extension for qualified electric
utilities</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC010B59D580E47F3BA00FC9F4100FE47"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 451(i) is amended
by inserting <quote>(before January 1, 2010, in the case of a qualified
electric utility)</quote> after <quote>January 1, 2008</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3F05616DD2F4794ADFCAB09E3624BDB"><enum>(2)</enum><header display-inline="yes-display-inline">Qualified electric utility</header><text display-inline="yes-display-inline">Subsection (i) of section 451 is amended by
redesignating paragraphs (6) through (10) as paragraphs (7) through (11),
respectively, and by inserting after paragraph (5) the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HD1231AF7374D449D9D922C510527CB62" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H5C54C4D074154E4A8577D179DF1F35DB"><enum>(6)</enum><header display-inline="yes-display-inline">Qualified electric utility</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<quote>qualified electric utility</quote> means a person that, as of the date
of the qualifying electric transmission transaction, is vertically integrated,
in that it is both—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDEF9ECAF9CAC4DDFBBAA63A200FBC9C"><enum>(A)</enum><text display-inline="yes-display-inline">a transmitting utility (as defined in
section 3(23) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(23)</external-xref>)) with respect to the
transmission facilities to which the election under this subsection applies,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAA3BE9F526F0430196D200B9547D3755"><enum>(B)</enum><text display-inline="yes-display-inline">an electric utility (as defined in section
3(22) of the Federal Power Act (16 U.S.C.
796(22))).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC6CA2CEE97314A2EBDD8D2046C35EAC"><enum>(b)</enum><header display-inline="yes-display-inline">Extension of period for transfer of
operational control authorized by FERC</header><text display-inline="yes-display-inline">Clause (ii) of section 451(i)(4)(B) is
amended by striking <quote>December 31, 2007</quote> and inserting <quote>the
date which is 4 years after the close of the taxable year in which the
transaction occurs</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4D56FAD0DD19458DAB740092CA10CF00"><enum>(c)</enum><header display-inline="yes-display-inline">Property located outside the united states
not treated as exempt utility property</header><text display-inline="yes-display-inline">Paragraph (5) of section 451(i) is amended
by adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HD1C307CDDD274D0A98FEB0207F7800E" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H43179BB6BE284467AF003B7B3EB2D19E"><enum>(C)</enum><header display-inline="yes-display-inline">Exception for property located outside the
united states</header><text display-inline="yes-display-inline">The term
<quote>exempt utility property</quote> shall not include any property which is
located outside the United
States.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H34D6B76ED61D4677BCF91E4FE4F185F"><enum>(d)</enum><header display-inline="yes-display-inline">Effective Dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="H001C3204DEF9475FA706E65C737593BA"><enum>(1)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall
apply to transactions after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H94B2BB3F51E94E868F86DBB14BB16B5E"><enum>(2)</enum><header display-inline="yes-display-inline">Transfers of operational
control</header><text display-inline="yes-display-inline">The amendment made by
subsection (b) shall take effect as if included in section 909 of the American
Jobs Creation Act of 2004.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC3C79F04DADB45FC9DA03D44FC34AA00"><enum>(3)</enum><header display-inline="yes-display-inline">Exception for property located outside the
united states</header><text display-inline="yes-display-inline">The amendment
made by subsection (c) shall apply to transactions after the date of the
enactment of this Act.</text>
</paragraph></subsection></section></subtitle><subtitle commented="no" id="H4920317A7E084E15B07F711FE2CFAD" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Carbon mitigation and coal
provisions</header>
<section commented="no" display-inline="no-display-inline" id="H1515B1E7E6BB45ED8446D978D7A464FA" section-type="subsequent-section"><enum>111.</enum><header display-inline="yes-display-inline">Expansion and modification of advanced coal
project investment credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H565A631A4E924741B442B54C91CBC6C"><enum>(a)</enum><header display-inline="yes-display-inline">Modification of credit amount</header><text display-inline="yes-display-inline">Section 48A(a) is amended by striking
<quote>and</quote> at the end of paragraph (1), by striking the period at the
end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HFEC0BD29C97D49718CC3BEC6C1B44E00" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H50CFDC80CB91482FB61667A3ACB71BBB"><enum>(3)</enum><text display-inline="yes-display-inline">30 percent of the qualified investment for
such taxable year in the case of projects described in clause (iii) of
subsection
(d)(3)(B).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFAF131E2D0254EAFAF07FCC422EFB960"><enum>(b)</enum><header display-inline="yes-display-inline">Expansion of aggregate
credits</header><text display-inline="yes-display-inline">Section 48A(d)(3)(A)
is amended by striking <quote>$1,300,000,000</quote> and inserting
<quote>$2,550,000,000</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB09D7F6840C04C6BA12939364CA7A766"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization of Additional
Projects</header>
<paragraph commented="no" display-inline="no-display-inline" id="H85F3B05D5EEC4B75B567AB43A06E00F1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (B) of section 48A(d)(3) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H52151FCD902C4A1AB92C7FB7BC400DF" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HF6E9A4F72A6D4CC3BD2D4B4B7899967B"><enum>(B)</enum><header display-inline="yes-display-inline">Particular projects</header><text display-inline="yes-display-inline">Of the dollar amount in subparagraph (A),
the Secretary is authorized to certify—</text>
<clause commented="no" display-inline="no-display-inline" id="HF3A06F3185BF468D8018D8E768C1885D"><enum>(i)</enum><text display-inline="yes-display-inline">$800,000,000 for integrated gasification
combined cycle projects the application for which is submitted during the
period described in paragraph (2)(A)(i),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H90B5F5DC4F484C279D0011C6CE3D9640"><enum>(ii)</enum><text display-inline="yes-display-inline">$500,000,000 for projects which use other
advanced coal-based generation technologies the application for which is
submitted during the period described in paragraph (2)(A)(i), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H421E88A85BEA42C8BC9078E8CEED10C"><enum>(iii)</enum><text display-inline="yes-display-inline">$1,250,000,000 for advanced coal-based
generation technology projects the application for which is submitted during
the period described in paragraph
(2)(A)(ii).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1A4221AF8DB94700AC52765900224BBB"><enum>(2)</enum><header display-inline="yes-display-inline">Application period for additional
projects</header><text display-inline="yes-display-inline">Subparagraph (A) of
section 48A(d)(2) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H967F92CDA598450ABBA14EF707EFB344" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HDF038BF954D444948D12F40195E5D2E1"><enum>(A)</enum><header display-inline="yes-display-inline">Application period</header><text display-inline="yes-display-inline">Each applicant for certification under this
paragraph shall submit an application meeting the requirements of subparagraph
(B). An applicant may only submit an application—</text>
<clause commented="no" display-inline="no-display-inline" id="H10A0E1E91C3847D3A761FCDBEBB234CF"><enum>(i)</enum><text display-inline="yes-display-inline">for an allocation from the dollar amount
specified in clause (i) or (ii) of paragraph (3)(B) during the 3-year period
beginning on the date the Secretary establishes the program under paragraph
(1), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H023A101D6BB7475489F18D51D3A1DC20"><enum>(ii)</enum><text display-inline="yes-display-inline">for an allocation from the dollar amount
specified in paragraph (3)(B)(iii) during the 3-year period beginning at the
earlier of the termination of the period described in clause (i) or the date
prescribed by the
Secretary.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30AADA62EAE64BA28412F007C3FCAFF0"><enum>(3)</enum><header display-inline="yes-display-inline">Capture and sequestration of carbon dioxide
emissions requirement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC20BADC3C0174ADFAF09C193EE27ECA2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 48A(e)(1) is amended by striking
<quote>and</quote> at the end of subparagraph (E), by striking the period at
the end of subparagraph (F) and inserting <quote>; and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H476D1A9EAF9042D6910900ED5DE80358" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HE840760D2F7D44FF9CC2049D9727EBE6"><enum>(G)</enum><text display-inline="yes-display-inline">in the case of any project the application
for which is submitted during the period described in subsection (d)(2)(A)(ii),
the project includes equipment which separates and sequesters at least 65
percent (70 percent in the case of an application for reallocated credits under
subsection (d)(4)) of such project's total carbon dioxide
emissions.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE03105E2302A4451BF218E20CA48CA6"><enum>(B)</enum><header display-inline="yes-display-inline">Highest priority for projects which
sequester carbon dioxide emissions</header><text display-inline="yes-display-inline">Section 48A(e)(3) is amended by striking
<quote>and</quote> at the end of subparagraph (A)(iii), by striking the period
at the end of subparagraph (B)(iii) and inserting <quote>, and</quote>, and by
adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HEA8BEAFAD6DD4D67BA3528DEF8B18400" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HD89AF03D295344A08FB4D10502977CF9"><enum>(C)</enum><text display-inline="yes-display-inline">give highest priority to projects with the
greatest separation and sequestration percentage of total carbon dioxide
emissions.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDC6716A729E24DE7B12637D66C00395E"><enum>(C)</enum><header display-inline="yes-display-inline">Recapture of credit for failure to
sequester</header><text display-inline="yes-display-inline">Section 48A is
amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA62754AF8E3941A2B1D1B3E92F2400FE" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H3AF3551B6FE047A4A830B51673BC886"><enum>(i)</enum><header display-inline="yes-display-inline">Recapture of credit for failure To
sequester</header><text display-inline="yes-display-inline">The Secretary shall
provide for recapturing the benefit of any credit allowable under subsection
(a) with respect to any project which fails to attain or maintain the
separation and sequestration requirements of subsection
(e)(1)(G).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H131A71792A624436B1503E667624EE89"><enum>(4)</enum><header display-inline="yes-display-inline">Additional priority for research
partnerships</header><text display-inline="yes-display-inline">Section
48A(e)(3)(B), as amended by paragraph (3)(B), is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7F8DB03478A44673B77F342EC94DB5A"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of clause (ii),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2C6D2E92B7BF4D88872CA0E2C3C9DDCF"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating clause (iii) as clause
(iv), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF0059AEBBF104A1CB053EED97B95C2DB"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after clause (ii) the
following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA2BE93A2FD12420580AF39B386E6EBD3" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H9D5ACE24BEAF40CB9BF41D8E75611B94"><enum>(iii)</enum><text display-inline="yes-display-inline">applicant participants who have a research
partnership with an eligible educational institution (as defined in section
529(e)(5)),
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H68CEF7B37259450E9BE2B02E3CADD7D"><enum>(5)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">Section 48A(e)(3) is amended by striking
<quote><header-in-text level="paragraph" style="OLC">integrated gasification
combined cycle</header-in-text></quote> in the heading and inserting
<quote><header-in-text level="paragraph" style="OLC">certain</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCE4402460C464528AF53DB4D84F0FD4B"><enum>(d)</enum><header display-inline="yes-display-inline">Disclosure of allocations</header><text display-inline="yes-display-inline">Section 48A(d) is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HBD984F5238904D3D00C311B1F5E6A808" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H2F85FFEB7AC7496F92322D7DCCBD6CE6"><enum>(5)</enum><header display-inline="yes-display-inline">Disclosure of allocations</header><text display-inline="yes-display-inline">The Secretary shall, upon making a
certification under this subsection or section 48B(d), publicly disclose the
identity of the applicant and the amount of the credit certified with respect
to such
applicant.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9214C5AB99EB49D8802DEF8CC9CC29B4"><enum>(e)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE0CBA397364A41D39B613B26A9F8AAD1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this
subsection, the amendments made by this section shall apply to credits the
application for which is submitted during the period described in section
48A(d)(2)(A)(ii) of the Internal Revenue Code of 1986 and which are allocated
or reallocated after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H17D595D881E94C45950072F8D4BE4505"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure of allocations</header><text display-inline="yes-display-inline">The amendment made by subsection (d) shall
apply to certifications made after the date of the enactment of this
Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H335048694EB44B05A9314D9188E0010"><enum>(3)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The amendment made by subsection (c)(5)
shall take effect as if included in the amendment made by section 1307(b) of
the Energy Tax Incentives Act of 2005.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HCC1B62BBD4FC49C6A707481006A356BB" section-type="subsequent-section"><enum>112.</enum><header display-inline="yes-display-inline">Expansion and modification of coal
gasification investment credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H29371141236848C08D05B19231CFAFC8"><enum>(a)</enum><header display-inline="yes-display-inline">Modification of credit amount</header><text display-inline="yes-display-inline">Section 48B(a) is amended by inserting
<quote>(30 percent in the case of credits allocated under subsection
(d)(1)(B))</quote> after <quote>20 percent</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7A30C551ACD545F8AE98C600ED370000"><enum>(b)</enum><header display-inline="yes-display-inline">Expansion of aggregate
credits</header><text display-inline="yes-display-inline">Section 48B(d)(1) is
amended by striking <quote>shall not exceed $350,000,000</quote> and all that
follows and inserting</text>
<quoted-block changed="added" display-inline="yes-display-inline" id="HB7B6074A98AE4ABDA3BFDB390000938B" reported-display-style="italic" style="OLC">
<text>shall not
exceed—</text><subparagraph commented="no" display-inline="no-display-inline" id="H6170D7EB02584EFD9DE3D9E5B6D58F0"><enum>(A)</enum><text display-inline="yes-display-inline">$350,000,000, plus</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H455E250A2BF84A07A97F140093E9AEC4"><enum>(B)</enum><text display-inline="yes-display-inline">$250,000,000 for qualifying gasification
projects that include equipment which separates and sequesters at least 75
percent of such project’s total carbon dioxide
emissions.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB15562784CE54D559C1300EBA5C45506"><enum>(c)</enum><header display-inline="yes-display-inline">Recapture of credit for failure to
sequester</header><text display-inline="yes-display-inline">Section 48B is
amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0F643D57773E441ABAFD061F84346EBF" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA91700176F0244979547D76CD0C8CEF4"><enum>(f)</enum><header display-inline="yes-display-inline">Recapture of credit for failure to
sequester</header><text display-inline="yes-display-inline">The Secretary shall
provide for recapturing the benefit of any credit allowable under subsection
(a) with respect to any project which fails to attain or maintain the
separation and sequestration requirements for such project under subsection
(d)(1).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBA8335F141A34127B43EEF89EDD58D41"><enum>(d)</enum><header display-inline="yes-display-inline">Selection priorities</header><text display-inline="yes-display-inline">Section 48B(d) is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HB59EAEB44CB2424288FF4F6DF0B256BD" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H14220C9BD8A444238DD396266936002B"><enum>(4)</enum><header display-inline="yes-display-inline">Selection priorities</header><text display-inline="yes-display-inline">In determining which qualifying
gasification projects to certify under this section, the Secretary
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6DBC7605069E4136AFF0B78478FAD73D"><enum>(A)</enum><text display-inline="yes-display-inline">give highest priority to projects with the
greatest separation and sequestration percentage of total carbon dioxide
emissions, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6E3D3C2282C34FC1836C2DDCEFBC07EF"><enum>(B)</enum><text display-inline="yes-display-inline">give high priority to applicant
participants who have a research partnership with an eligible educational
institution (as defined in section
529(e)(5)).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="idB85BCE3240904B23B31E05C0AB7969C1"><enum>(e)</enum><header>Eligible projects
include transportation grade liquid fuels</header><text>Section 48B(c)(7)
(defining eligible entity) is amended by striking <quote>and</quote> at the end
of subparagraph (F), by striking the period at the end of subparagraph (G) and
inserting <quote>, and</quote>, and by adding at the end the following new
subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id88FA46DFCDBF4B9E942C3BE362A019DC" reported-display-style="italic" style="OLC">
<subparagraph commented="no" id="id914CF1BA5225498FB41C3F6B77C5FF2D"><enum>(H)</enum><text>transportation grade
liquid
fuels.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9445C84A5A5745D98D532D833FE622EA"><enum>(f)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to credits described in section 48B(d)(1)(B) of the
Internal Revenue Code of 1986 which are allocated or reallocated after the date
of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H040CACF996F240D781ADD65E8EEDBD8B" section-type="subsequent-section"><enum>113.</enum><header display-inline="yes-display-inline">Temporary increase in coal excise tax;
funding of Black Lung Disability Trust Fund</header>
<subsection commented="no" display-inline="no-display-inline" id="id2186D93E4CCC422C84DB741CBE1406D2"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of temporary
increase</header><text display-inline="yes-display-inline">Paragraph (2) of
section 4121(e) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H25F8354ECB0E46B6B07CE87D2DDF627C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2014</quote>
in subparagraph (A) and inserting <quote>December 31, 2018</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA565C7C4672C4EAEAB56F9FC6F9499FB"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>January 1 after
1981</quote> in subparagraph (B) and inserting <quote>December 31 after
2007</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4C291A30784F40F3AC2740A149622F4F"><enum>(b)</enum><header>Restructuring of Trust
Fund debt</header>
<paragraph id="id59AADE0A691B4FEBB5116EF377056620"><enum>(1)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="id43635FCF28644364916993F6E874F857"><enum>(A)</enum><header>Market value of the
outstanding repayable advances, plus accrued interest</header><text display-inline="yes-display-inline">The term <term>market value of the
outstanding repayable advances, plus accrued interest</term> means the present
value (determined by the Secretary of the Treasury as of the refinancing date
and using the Treasury rate as the discount rate) of the stream of principal
and interest payments derived assuming that each repayable advance that is
outstanding on the refinancing date is due on the 30th anniversary of the end
of the fiscal year in which the advance was made to the Trust Fund, and that
all such principal and interest payments are made on September 30 of the
applicable fiscal year.</text>
</subparagraph><subparagraph id="id268A43D49E644BD3B4AFBBF33FB8C7C3"><enum>(B)</enum><header>Refinancing
date</header><text display-inline="yes-display-inline">The term
<term>refinancing date</term> means the date occurring 2 days after the
enactment of this Act.</text>
</subparagraph><subparagraph id="id07B40A4D02D94A75A656E03E74C9AD0E"><enum>(C)</enum><header>Repayable
advance</header><text display-inline="yes-display-inline">The term
<term>repayable advance</term> means an amount that has been appropriated to
the Trust Fund in order to make benefit payments and other expenditures that
are authorized under <external-xref legal-doc="usc" parsable-cite="usc/26/9501">section 9501</external-xref> of the Internal Revenue Code of 1986 and are
required to be repaid when the Secretary of the Treasury determines that monies
are available in the Trust Fund for such purpose.</text>
</subparagraph><subparagraph id="idE4371A742ACC48DCBE055CE8A9370325"><enum>(D)</enum><header>Treasury
rate</header><text display-inline="yes-display-inline">The term <term>Treasury
rate</term> means a rate determined by the Secretary of the Treasury, taking
into consideration current market yields on outstanding marketable obligations
of the United States of comparable maturities.</text>
</subparagraph><subparagraph id="id3107E952B3424B0FA3E782140AB95D5C"><enum>(E)</enum><header>Treasury 1-year
rate</header><text display-inline="yes-display-inline">The term <term>Treasury
1-year rate</term> means a rate determined by the Secretary of the Treasury,
taking into consideration current market yields on outstanding marketable
obligations of the United States with remaining periods to maturity of
approximately 1 year, to have been in effect as of the close of business 1
business day prior to the date on which the Trust Fund issues obligations to
the Secretary of the Treasury under paragraph (2)(B).</text>
</subparagraph></paragraph><paragraph id="idC9053E9BC7DB41D89508FD20C2D7BFEB"><enum>(2)</enum><header>Refinancing of
outstanding principal of repayable advances and unpaid interest on such
advances</header>
<subparagraph id="id9DA3E1E2AC8F4438A764E70E4DDFB898"><enum>(A)</enum><header>Transfer to general
fund</header><text>On the refinancing date, the Trust Fund shall repay the
market value of the outstanding repayable advances, plus accrued interest, by
transferring into the general fund of the Treasury the following sums:</text>
<clause id="idA0E89C5E9E9A493D8DBE60A036929FBA"><enum>(i)</enum><text>The proceeds from
obligations that the Trust Fund shall issue to the Secretary of the Treasury in
such amounts as the Secretaries of Labor and the Treasury shall determine and
bearing interest at the Treasury rate, and that shall be in such forms and
denominations and be subject to such other terms and conditions, including
maturity, as the Secretary of the Treasury shall prescribe.</text>
</clause><clause id="idC520A4FCF2914F4093070AA0E5FEE10A"><enum>(ii)</enum><text>All, or that portion, of
the appropriation made to the Trust Fund pursuant to paragraph (3) that is
needed to cover the difference defined in that paragraph.</text>
</clause></subparagraph><subparagraph id="idBE7734D5E6BC4D0D88A25539B76F09AD"><enum>(B)</enum><header>Repayment of
obligations</header><text>In the event that the Trust Fund is unable to repay
the obligations that it has issued to the Secretary of the Treasury under
subparagraph (A)(i) and this subparagraph, or is unable to make benefit
payments and other authorized expenditures, the Trust Fund shall issue
obligations to the Secretary of the Treasury in such amounts as may be
necessary to make such repayments, payments, and expenditures, with a maturity
of 1 year, and bearing interest at the Treasury 1-year rate. These obligations
shall be in such forms and denominations and be subject to such other terms and
conditions as the Secretary of the Treasury shall prescribe.</text>
</subparagraph><subparagraph id="id4C855828027A4E44A7C29A6C4EDB1EF9"><enum>(C)</enum><header>Authority to issue
obligations</header><text>The Trust Fund is authorized to issue obligations to
the Secretary of the Treasury under subparagraphs (A)(i) and (B). The Secretary
of the Treasury is authorized to purchase such obligations of the Trust Fund.
For the purposes of making such purchases, the Secretary of the Treasury may
use as a public debt transaction the proceeds from the sale of any securities
issued under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/31">chapter 31</external-xref> of title 31, United States Code, and the purposes for
which securities may be issued under such chapter are extended to include any
purchase of such Trust Fund obligations under this subparagraph.</text>
</subparagraph></paragraph><paragraph id="id0499B3D326614AAB91E29B949744B02C"><enum>(3)</enum><header>One-time
appropriation</header><text display-inline="yes-display-inline">There is hereby
appropriated to the Trust Fund an amount sufficient to pay to the general fund
of the Treasury the difference between—</text>
<subparagraph id="id3E5758B469C64A558281F56457576950"><enum>(A)</enum><text>the market value of the
outstanding repayable advances, plus accrued interest; and</text>
</subparagraph><subparagraph id="id0A88AAFF7A0D4C03B797B4D40C576C90"><enum>(B)</enum><text>the proceeds from the
obligations issued by the Trust Fund to the Secretary of the Treasury under
paragraph (2)(A)(i).</text>
</subparagraph></paragraph><paragraph id="id9CAF1591E5BD4653BA9A01057CF59486"><enum>(4)</enum><header>Prepayment of Trust
Fund obligations</header><text display-inline="yes-display-inline">The Trust
Fund is authorized to repay any obligation issued to the Secretary of the
Treasury under subparagraphs (A)(i) and (B) of paragraph (2) prior to its
maturity date by paying a prepayment price that would, if the obligation being
prepaid (including all unpaid interest accrued thereon through the date of
prepayment) were purchased by a third party and held to the maturity date of
such obligation, produce a yield to the third-party purchaser for the period
from the date of purchase to the maturity date of such obligation substantially
equal to the Treasury yield on outstanding marketable obligations of the United
States having a comparable maturity to this period.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA38FB90AD9A6426C9B94F28B57FD4787" section-type="subsequent-section"><enum>114.</enum><header display-inline="yes-display-inline">Special rules for refund of the coal excise
tax to certain coal producers and exporters</header>
<subsection commented="no" display-inline="no-display-inline" id="HFC1CFA926CDC4787855E5FA41C3EB1E"><enum>(a)</enum><header display-inline="yes-display-inline">Refund</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7A7ECC11D4F44D9AAC08C5C4F8B75C2E"><enum>(1)</enum><header display-inline="yes-display-inline">Coal producers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HC5BA01F485A64640864584CF7969626B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding subsections (a)(1) and (c)
of section 6416 and <external-xref legal-doc="usc" parsable-cite="usc/26/6511">section 6511</external-xref> of the Internal Revenue Code of 1986,
if—</text>
<clause commented="no" display-inline="no-display-inline" id="H5C850480CDF647F90053C564C5046403"><enum>(i)</enum><text display-inline="yes-display-inline">a coal producer establishes that such coal
producer, or a party related to such coal producer, exported coal produced by
such coal producer to a foreign country or shipped coal produced by such coal
producer to a possession of the United States, or caused such coal to be
exported or shipped, the export or shipment of which was other than through an
exporter who meets the requirements of paragraph (2),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB70DAAF027FE4D658EF0D5231D597A3"><enum>(ii)</enum><text display-inline="yes-display-inline">such coal producer filed an excise tax
return on or after October 1, 1990, and on or before the date of the enactment
of this Act, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H551877FAADFF4E18958CEBA221EE7E34"><enum>(iii)</enum><text display-inline="yes-display-inline">such coal producer files a claim for refund
with the Secretary not later than the close of the 30-day period beginning on
the date of the enactment of this Act,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">then the Secretary shall pay to such coal
producer an amount equal to the tax paid under section 4121 of such Code on
such coal exported or shipped by the coal producer or a party related to such
coal producer, or caused by the coal producer or a party related to such coal
producer to be exported or shipped.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE1C6148322B6484E96AFB9CABB00FB00"><enum>(B)</enum><header display-inline="yes-display-inline">Special rules for certain
taxpayers</header><text display-inline="yes-display-inline">For purposes of
this section—</text>
<clause commented="no" display-inline="no-display-inline" id="HF050E41443E54AE09863BB9B9D983492"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If a coal producer or a party related to a
coal producer has received a judgment described in clause (iii), such coal
producer shall be deemed to have established the export of coal to a foreign
country or shipment of coal to a possession of the United States under
subparagraph (A)(i).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDD080110206F46CC852C1085062B8D8E"><enum>(ii)</enum><header display-inline="yes-display-inline">Amount of payment</header><text display-inline="yes-display-inline">If a taxpayer described in clause (i) is
entitled to a payment under subparagraph (A), the amount of such payment shall
be reduced by any amount paid pursuant to the judgment described in clause
(iii).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6E88597C49F64910BD573CD479BDA047"><enum>(iii)</enum><header display-inline="yes-display-inline">Judgment described</header><text display-inline="yes-display-inline">A judgment is described in this
subparagraph if such judgment—</text>
<subclause commented="no" display-inline="no-display-inline" id="H9A3940B24C7B47A285CCB0A22BB2FC32"><enum>(I)</enum><text display-inline="yes-display-inline">is made by a court of competent
jurisdiction within the United States,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H7B14838B6AFF4359A81418EB2C791EFD"><enum>(II)</enum><text display-inline="yes-display-inline">relates to the constitutionality of any tax
paid on exported coal under <external-xref legal-doc="usc" parsable-cite="usc/26/4121">section 4121</external-xref> of the Internal Revenue Code of 1986,
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H53C91BF4298840CA966FB62E48BFA9B"><enum>(III)</enum><text display-inline="yes-display-inline">is in favor of the coal producer or the
party related to the coal producer.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4972C8D7ED444E75B89BA3A3E79E314C"><enum>(2)</enum><header display-inline="yes-display-inline">Exporters</header><text display-inline="yes-display-inline">Notwithstanding subsections (a)(1) and (c)
of section 6416 and <external-xref legal-doc="usc" parsable-cite="usc/26/6511">section 6511</external-xref> of the Internal Revenue Code of 1986, and a
judgment described in paragraph (1)(B)(iii) of this subsection, if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H380EAB7A47E64AB7A5FD976077ED5357"><enum>(A)</enum><text display-inline="yes-display-inline">an exporter establishes that such exporter
exported coal to a foreign country or shipped coal to a possession of the
United States, or caused such coal to be so exported or shipped,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD2F9EC2E4D774E6F89305E5B6B6B3715"><enum>(B)</enum><text display-inline="yes-display-inline">such exporter filed a tax return on or
after October 1, 1990, and on or before the date of the enactment of this Act,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5AA833CE4ED1426AB13C295C61EEC0F2"><enum>(C)</enum><text display-inline="yes-display-inline">such exporter files a claim for refund with
the Secretary not later than the close of the 30-day period beginning on the
date of the enactment of this Act,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">then
the Secretary shall pay to such exporter an amount equal to $0.825 per ton of
such coal exported by the exporter or caused to be exported or shipped, or
caused to be exported or shipped, by the exporter.</continuation-text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4B0D1D63ECC543A9AF560641D8EF33E1"><enum>(b)</enum><header display-inline="yes-display-inline">Limitations</header><text display-inline="yes-display-inline">Subsection (a) shall not apply with respect
to exported coal if a settlement with the Federal Government has been made with
and accepted by, the coal producer, a party related to such coal producer, or
the exporter, of such coal, as of the date that the claim is filed under this
section with respect to such exported coal. For purposes of this subsection,
the term <term>settlement with the Federal Government</term> shall not include
any settlement or stipulation entered into as of the date of the enactment of
this Act, the terms of which contemplate a judgment concerning which any party
has reserved the right to file an appeal, or has filed an appeal.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H531E42DA9D03430CA53CD05AC5E4EDD"><enum>(c)</enum><header display-inline="yes-display-inline">Subsequent refund prohibited</header><text display-inline="yes-display-inline">No refund shall be made under this section
to the extent that a credit or refund of such tax on such exported or shipped
coal has been paid to any person.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5D9B88DD9BFD41078F8D8CB1D4449E4B"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD4F849EBCBD0495FA58CC799CB1C3825"><enum>(1)</enum><header display-inline="yes-display-inline">Coal producer</header><text display-inline="yes-display-inline">The term <term>coal producer</term> means
the person in whom is vested ownership of the coal immediately after the coal
is severed from the ground, without regard to the existence of any contractual
arrangement for the sale or other disposition of the coal or the payment of any
royalties between the producer and third parties. The term includes any person
who extracts coal from coal waste refuse piles or from the silt waste product
which results from the wet washing (or similar processing) of coal.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9B6BF32489B34AF39BA130C257EA5815"><enum>(2)</enum><header display-inline="yes-display-inline">Exporter</header><text display-inline="yes-display-inline">The term <term>exporter</term> means a
person, other than a coal producer, who does not have a contract, fee
arrangement, or any other agreement with a producer or seller of such coal to
export or ship such coal to a third party on behalf of the producer or seller
of such coal and—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF33A37E33D2A4EECBC0891612C4EDB23"><enum>(A)</enum><text display-inline="yes-display-inline">is indicated in the shipper’s export
declaration or other documentation as the exporter of record, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB35F1E506112477CB8232BC0CD634C64"><enum>(B)</enum><text display-inline="yes-display-inline">actually exported such coal to a foreign
country or shipped such coal to a possession of the United States, or caused
such coal to be so exported or shipped.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD5DBEAD020CA4406BA2B692F3E13605D"><enum>(3)</enum><header display-inline="yes-display-inline">Related party</header><text display-inline="yes-display-inline">The term <term>a party related to such coal
producer</term> means a person who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA31FE8C177A446C78270008CBBF93858"><enum>(A)</enum><text display-inline="yes-display-inline">is related to such coal producer through
any degree of common management, stock ownership, or voting control,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAB1BD746094A46D0A8E0F263FEA0DEF"><enum>(B)</enum><text display-inline="yes-display-inline">is related (within the meaning of section
144(a)(3) of the Internal Revenue Code of 1986) to such coal producer,
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5425C3FA6EA04D17889765CBFA1D6843"><enum>(C)</enum><text display-inline="yes-display-inline">has a contract, fee arrangement, or any
other agreement with such coal producer to sell such coal to a third party on
behalf of such coal producer.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H06F0561DB1634FF096BC2CC60000C5AD"><enum>(4)</enum><header display-inline="yes-display-inline">Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the
Secretary of Treasury or the Secretary's designee.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE401DDD91FC54938AA85CB01B4C13019"><enum>(e)</enum><header display-inline="yes-display-inline">Timing of refund</header><text display-inline="yes-display-inline">With respect to any claim for refund filed
pursuant to this section, the Secretary shall determine whether the
requirements of this section are met not later than 180 days after such claim
is filed. If the Secretary determines that the requirements of this section are
met, the claim for refund shall be paid not later than 180 days after the
Secretary makes such determination.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5B1858712A444344992FD368E89B8E8E"><enum>(f)</enum><header display-inline="yes-display-inline">Interest</header><text display-inline="yes-display-inline">Any refund paid pursuant to this section
shall be paid by the Secretary with interest from the date of overpayment
determined by using the overpayment rate and method under section 6621 of the
Internal Revenue Code of 1986.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA6D92194C7A641B2B3001EE77D732366"><enum>(g)</enum><header display-inline="yes-display-inline">Denial of double benefit</header><text display-inline="yes-display-inline">The payment under subsection (a) with
respect to any coal shall not exceed—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H45559A14F75541679E76F31A11735C9"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a payment to a coal
producer, the amount of tax paid under section 4121 of the Internal Revenue
Code of 1986 with respect to such coal by such coal producer or a party related
to such coal producer, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H51CE20AD35F84476AC4CB73F83028009"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a payment to an exporter, an
amount equal to $0.825 per ton with respect to such coal exported by the
exporter or caused to be exported by the exporter.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDC3DF9B2DD6849AAA73F2CCB249BEB03"><enum>(h)</enum><header display-inline="yes-display-inline">Application of section</header><text display-inline="yes-display-inline">This section applies only to claims on coal
exported or shipped on or after October 1, 1990, through the date of the
enactment of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFC31A8995D9044B684954E86000457B4"><enum>(i)</enum><header display-inline="yes-display-inline">Standing not conferred</header>
<paragraph commented="no" display-inline="no-display-inline" id="HABC56F2E71EE418287EC25BC3029C690"><enum>(1)</enum><header display-inline="yes-display-inline">Exporters</header><text display-inline="yes-display-inline">With respect to exporters, this section
shall not confer standing upon an exporter to commence, or intervene in, any
judicial or administrative proceeding concerning a claim for refund by a coal
producer of any Federal or State tax, fee, or royalty paid by the coal
producer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H480230B633F54DEDBCBDC54FBD7E91E8"><enum>(2)</enum><header display-inline="yes-display-inline">Coal
producers</header><text display-inline="yes-display-inline">With respect to
coal producers, this section shall not confer standing upon a coal producer to
commence, or intervene in, any judicial or administrative proceeding concerning
a claim for refund by an exporter of any Federal or State tax, fee, or royalty
paid by the producer and alleged to have been passed on to an exporter.</text>
</paragraph></subsection></section><section commented="no" id="HCC92B851C923422EB2E944169451F2A7" section-type="subsequent-section"><enum>115.</enum><header>Tax credit for
carbon dioxide sequestration</header>
<subsection commented="no" id="H87D43C561BCA49839FB78DF4ADCA8302"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1
(relating to business credits) is amended by adding at the end the following
new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H3D79B4EFE31B45EC812E3BFD4705B7BF" reported-display-style="italic" style="OLC">
<section commented="no" id="HF5E23CB2FF764CB7AC91433DC9C74041"><enum>45Q.</enum><header>Credit for carbon
dioxide sequestration</header>
<subsection commented="no" id="H25F3AFFFBF8E4B05A46195BC007C8B00"><enum>(a)</enum><header>General
rule</header><text display-inline="yes-display-inline">For purposes of section
38, the carbon dioxide sequestration credit for any taxable year is an amount
equal to the sum of—</text>
<paragraph commented="no" id="H89C81ADC3C7143B38C9CA286619C76D9"><enum>(1)</enum><text>$20 per metric ton of
qualified carbon dioxide which is—</text>
<subparagraph commented="no" id="idDB514CA58837484EA3E673BB953FC5A4"><enum>(A)</enum><text>captured by the taxpayer
at a qualified facility, and</text>
</subparagraph><subparagraph commented="no" id="idABCC8B10A9FC40168284204941DBB6A8"><enum>(B)</enum><text>disposed of by the
taxpayer in secure geological storage, and</text>
</subparagraph></paragraph><paragraph commented="no" id="id263AD663F2594D57A3300270AC74031A"><enum>(2)</enum><text>$10 per metric ton of
qualified carbon dioxide which is—</text>
<subparagraph commented="no" id="idC8E8BD4C8A534351A8F63D3862D12400"><enum>(A)</enum><text>captured by the taxpayer
at a qualified facility, and</text>
</subparagraph><subparagraph commented="no" id="H8016984DDEBC47EE8CE3F2BCB7551243"><enum>(B)</enum><text>used by the taxpayer as a
tertiary injectant in a qualified enhanced oil or natural gas recovery
project.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H0061877E3CF54F818E427E3B64CB355E"><enum>(b)</enum><header>Qualified carbon
dioxide</header><text>For purposes of this section—</text>
<paragraph commented="no" id="HE84CD6BFBFDD4D3C9FFDF9298334451D"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified carbon dioxide</term> means
carbon dioxide captured from an industrial source which—</text>
<subparagraph commented="no" id="H7B84409BC36D43F5AFF785089BF1040"><enum>(A)</enum><text>would otherwise be
released into the atmosphere as industrial emission of greenhouse gas,
and</text>
</subparagraph><subparagraph commented="no" id="HC58A46A9B6F3445384D2EBDEAD37ABF4"><enum>(B)</enum><text>is measured at the source
of capture and verified at the point of disposal or injection.</text>
</subparagraph></paragraph><paragraph commented="no" id="idCBDE052431154D4A930A4F9AEDFF1DA1"><enum>(2)</enum><header>Recycled carbon
dioxide</header><text>The term <term>qualified carbon dioxide</term> includes
the initial deposit of captured carbon dioxide used as a tertiary injectant.
Such term does not include carbon dioxide that is re-captured, recycled, and
re-injected as part of the enhanced oil and natural gas recovery
process.</text>
</paragraph></subsection><subsection commented="no" id="id0553C3DF939A4CBA9F59AD8298BC9A32"><enum>(c)</enum><header>Qualified
facility</header><text>For purposes of this section, the term <term>qualified
facility</term> means any industrial facility—</text>
<paragraph commented="no" id="id2CE9573E671047DA8CF67B3F37263B96"><enum>(1)</enum><text>which is owned by the
taxpayer,</text>
</paragraph><paragraph commented="no" id="id3810173AA4954895A4C47400D0BF4BDF"><enum>(2)</enum><text>at which carbon capture
equipment is placed in service, and</text>
</paragraph><paragraph commented="no" id="id7E77E577A9234D1CAD4F8DD211D7CCE3"><enum>(3)</enum><text>which captures not less
than 500,000 metric tons of carbon dioxide during the taxable year.</text>
</paragraph></subsection><subsection commented="no" id="H7DC1B431575D4F57B3856D56F5F86E03"><enum>(d)</enum><header>Special rules and other
definitions</header><text>For purposes of this section—</text>
<paragraph commented="no" id="H2681E1EB7517454CBE74630050962129"><enum>(1)</enum><header>Only carbon dioxide
captured and disposed of or used within the United States taken into
account</header><text>The credit under this section shall apply only with
respect to qualified carbon dioxide the capture and disposal or use of which is
within—</text>
<subparagraph commented="no" id="HB09BFD384843402C91A5ADA4DF4CFAF"><enum>(A)</enum><text>the United States (within
the meaning of section 638(1)), or</text>
</subparagraph><subparagraph commented="no" id="H9DEEED622C4E4A34955D049B55AFCFFD"><enum>(B)</enum><text>a possession of the
United States (within the meaning of section 638(2)).</text>
</subparagraph></paragraph><paragraph commented="no" id="id48FDEA44EBA54047A961272830007EE2"><enum>(2)</enum><header>Secure geological
storage</header><text>The Secretary, in consultation with the Administrator of
the Environmental Protection Agency, shall establish regulations for
determining adequate security measures for the geological storage of carbon
dioxide under subsection (a)(1)(B) such that the carbon dioxide does not escape
into the atmosphere. Such term shall include storage at deep saline formations
and unminable coal seems under such conditions as the Secretary may determine
under such regulations.</text>
</paragraph><paragraph commented="no" id="HB6B275B73C9846CABA9B55001C2288C1"><enum>(3)</enum><header>Tertiary
injectant</header><text>The term <term>tertiary injectant</term> has the same
meaning as when used within section 193(b)(1).</text>
</paragraph><paragraph commented="no" id="idA3F1534E845144B992680156FF28A07B"><enum>(4)</enum><header>Qualified enhanced oil
or natural gas recovery project</header><text>The term <term>qualified enhanced
oil or natural gas recovery project</term> has the meaning given the term
<term>qualified enhanced oil recovery project</term> by section 43(c)(2), by
substituting <quote>crude oil or natural gas</quote> for <quote>crude
oil</quote> in subparagraph (A)(i) thereof.</text>
</paragraph><paragraph commented="no" id="HBE91DF5EFA4F4A33B29B6DA3515C2DB"><enum>(5)</enum><header>Credit attributable to
taxpayer</header><text>Any credit under this section shall be attributable to
the person that captures and physically or contractually ensures the disposal
of or the use as a tertiary injectant of the qualified carbon dioxide, except
to the extent provided in regulations prescribed by the Secretary.</text>
</paragraph><paragraph commented="no" id="idC7C30075053043DE8A7890BC8BD89A8E"><enum>(6)</enum><header>Recapture</header><text>The
Secretary shall, by regulations, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any qualified carbon
dioxide which ceases to be captured, disposed of, or used as a tertiary
injectant in a manner consistent with the requirements of this section.</text>
</paragraph><paragraph commented="no" id="HD113CEA3ADE04B2287B2CCAED72CDD70"><enum>(7)</enum><header>Inflation
adjustment</header><text display-inline="yes-display-inline">In the case of any
taxable year beginning in a calendar year after 2009, there shall be
substituted for each dollar amount contained in subsection (a) an amount equal
to the product of—</text>
<subparagraph commented="no" id="H382DB68DAE824237B13F2290A42D4B79"><enum>(A)</enum><text display-inline="yes-display-inline">such dollar amount, multiplied by</text>
</subparagraph><subparagraph commented="no" id="H6842CA44F1E44F6E927BEE7E97905F5"><enum>(B)</enum><text>the inflation adjustment
factor for such calendar year determined under section 43(b)(3)(B) for such
calendar year, determined by substituting <quote>2008</quote> for
<quote>1990</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idCA4DEBC90DD243B6A3F0D35E5CB8BFA8"><enum>(e)</enum><header>Application of
section</header><text>The credit under this section shall apply with respect to
qualified carbon dioxide before the end of the calendar year in which the
Secretary, in consultation with the Administrator of the Environmental
Protection Agency, certifies that 75,000,000 metric tons of qualified carbon
dioxide have been captured and disposed of or used as a tertiary
injectant.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H90F013324FAD48A996EF9E00C41C00DB"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 38(b) (relating to general business credit) is
amended by striking <quote>plus</quote> at the end of paragraph (32), by
striking the period at the end of paragraph (33) and inserting <quote>,
plus</quote>, and by adding at the end of following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5FC90DE844174AB48F7371193241F516" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="H0A552DB24A7146259D7686CFB7AEC15"><enum>(34)</enum><text display-inline="yes-display-inline">the carbon dioxide sequestration credit
determined under section
45Q(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HBEAD3BDDF74B42A1A55814C78B32539E"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part IV of
subchapter A of chapter 1 (relating to other credits) is amended by adding at
the end the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF2EE887F0EA9441F9CA9E6BE2277EDF6" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H3D79B4EFE31B45EC812E3BFD4705B7BF" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry idref="HF5E23CB2FF764CB7AC91433DC9C74041" level="section">Sec. 45Q. Credit for carbon
dioxide
sequestration.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB77DC11FC51F483900326C1C077060E2"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to carbon
dioxide captured after the date of the enactment of this Act.</text>
</subsection></section><section id="id3F5D4D4A3F164411BB68199BFBE47144"><enum>116.</enum><header>Certain income and
gains relating to industrial source carbon dioxide treated as qualifying income
for publicly traded partnerships</header>
<subsection id="id6DE7E58A2D18442EA104620A2AF90CBA"><enum>(a)</enum><header>In
general</header><text>Subparagraph (E) of section 7704(d)(1) (defining
qualifying income) is amended by inserting <quote>or industrial source carbon
dioxide</quote> after <quote>timber)</quote>.</text>
</subsection><subsection id="id466C0FC8B41D467882C1BBC3D7A06A76"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect on the
date of the enactment of this Act, in taxable years ending after such
date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H864148CE02874C9287CDA9A1667813FB" section-type="subsequent-section"><enum>117.</enum><header display-inline="yes-display-inline">Carbon audit of the tax code</header>
<subsection commented="no" display-inline="no-display-inline" id="H4A3E9569F65F4801873D791F235EC39B"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall enter
into an agreement with the National Academy of Sciences to undertake a
comprehensive review of the Internal Revenue Code of 1986 to identify the types
of and specific tax provisions that have the largest effects on carbon and
other greenhouse gas emissions and to estimate the magnitude of those
effects.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEE6FD7288C234A6D8D939B96F73C6BD"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall submit to
Congress a report containing the results of study authorized under this
section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4DF1067359204FE8876BC7AD16ED6B70"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated to carry out this section $1,500,000 for the
period of fiscal years 2009 and 2010.</text>
</subsection></section></subtitle><enum>II</enum><header display-inline="yes-display-inline">Transportation and domestic fuel security
provisions</header>
<section commented="no" display-inline="no-display-inline" id="HFA3C95CE3A0C44978C00315E2BCBCA00" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Inclusion of cellulosic biofuel in bonus
depreciation for biomass ethanol plant property</header>
<subsection commented="no" display-inline="no-display-inline" id="H8F7922C514B24C76BA42FE10B701D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 168(l) is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H53A950BA60E94626AFA567C057949516" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H99E491112498442F85AFA8E3008FAE02"><enum>(3)</enum><header display-inline="yes-display-inline">Cellulosic biofuel</header><text display-inline="yes-display-inline">The term <term>cellulosic biofuel</term>
means any liquid fuel which is produced from any lignocellulosic or
hemicellulosic matter that is available on a renewable or recurring
basis.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8E09387715424B80997EAA50114CC5AD"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">Subsection (l) of section 168 is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8A83C9E79CEA459C8D5F5F0416C2F700"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>cellulosic biomass
ethanol</quote> each place it appears and inserting <quote>cellulosic
biofuel</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0E084954534A44F0AAFC1D76556E42ED"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">cellulosic biomass
ethanol</header-in-text></quote> in the heading of such subsection and
inserting <quote><header-in-text level="subsection" style="OLC">cellulosic
biofuel</header-in-text></quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H749F77DFB5694872AF41C120EF47819D"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">cellulosic biomass
ethanol</header-in-text></quote> in the heading of paragraph (2) thereof and
inserting <quote><header-in-text level="paragraph" style="OLC">cellulosic
biofuel</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB420AA76F8364E2C9F5E6878DC8EA039"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to property placed in service after the date of the
enactment of this Act, in taxable years ending after such date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idF9D7E58E0E7D4B08A20842954DA19E52" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Credits for biodiesel and renewable
diesel</header>
<subsection commented="no" display-inline="no-display-inline" id="id11E109712FCA417CB6102063E51DFF11"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Sections 40A(g), 6426(c)(6), and
6427(e)(5)(B) are each amended by striking <quote>December 31, 2008</quote> and
inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDC1DB1E1345D4D4AB7CD0E7A408E173E"><enum>(b)</enum><header display-inline="yes-display-inline">Increase in rate of credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="idD2394655EDC349479668A80BFBBFA222"><enum>(1)</enum><header display-inline="yes-display-inline">Income tax credit</header><text display-inline="yes-display-inline">Paragraphs (1)(A) and (2)(A) of section
40A(b) are each amended by striking <quote>50 cents</quote> and inserting
<quote>$1.00</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEECD7FB8A2B24126AD1CD5F813836FC8"><enum>(2)</enum><header display-inline="yes-display-inline">Excise tax credit</header><text display-inline="yes-display-inline">Paragraph (2) of section 6426(c) is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF390F1A2B9F14A79A3D66C0EBD86E342" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id19E75B8AC7B64D55891FA96CAA7B1272"><enum>(2)</enum><header display-inline="yes-display-inline">Applicable amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the
applicable amount is
$1.00.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA8397E8D13FE4E318A6EFC122FF2BA26"><enum>(3)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id338E2C9D82C34569A3D58E8256CE21D6"><enum>(A)</enum><text display-inline="yes-display-inline">Subsection (b) of section 40A is amended by
striking paragraph (3) and by redesignating paragraphs (4) and (5) as
paragraphs (3) and (4), respectively.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE8013872303445FDBA82D8AED063B327"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 40A(f) is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD23DE1F479D14EE0BD67BB5B141E0C37" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id4321C4BA842C43C5A159404F5D59BEE3"><enum>(2)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Subsection (b)(4) shall not apply with
respect to renewable
diesel.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE6EF15A39DF346D782163AEDCDFCF27A"><enum>(C)</enum><text display-inline="yes-display-inline">Paragraphs (2) and (3) of section 40A(e)
are each amended by striking <quote>subsection (b)(5)(C)</quote> and inserting
<quote>subsection (b)(4)(C)</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2C54E876F0A6466E95C39E24F6E4843E"><enum>(D)</enum><text display-inline="yes-display-inline">Clause (ii) of section 40A(d)(3)(C) is
amended by striking <quote>subsection (b)(5)(B)</quote> and inserting
<quote>subsection (b)(4)(B)</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD6436EC4585341DC83D959BEF90ACCA7"><enum>(c)</enum><header display-inline="yes-display-inline">Uniform treatment of diesel produced from
biomass</header><text display-inline="yes-display-inline">Paragraph (3) of
section 40A(f) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idB0D341230EA94649A775EA605841AF97"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>diesel fuel</quote> and
inserting <quote>liquid fuel</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEE10CF737BF745A28130627792CAB3FE"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>using a thermal
depolymerization process</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5E5DA5B9F87C4BD7B57F775D11D2D65B"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting <quote>, or other equivalent
standard approved by the Secretary</quote> after <quote>D396</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H31F77317824E490C9F18055936EFA913"><enum>(d)</enum><header display-inline="yes-display-inline">Coproduction of renewable diesel with
petroleum feedstock</header>
<paragraph commented="no" display-inline="no-display-inline" id="H654B848834B449E8A500524D1000A52D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 40A(f) is amended
by adding at the end the following new sentences: <quote>Such term does not
include any fuel derived from coprocessing biomass with a feedstock which is
not biomass. For purposes of this paragraph, the term <term>biomass</term> has
the meaning given such term by section 45K(c)(3).</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9721D740726D4ADDA739738B25D22283"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Paragraph (3) of section 40A(f) is amended
by striking <quote>(as defined in section 45K(c)(3))</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD1CEE3994F9D4BBCB307542AAB36EEFA"><enum>(e)</enum><header>Eligibility of certain
aviation fuel</header><text>Subsection (f) of section 40A (relating to
renewable diesel) is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id08C87AFF63214B7D8361B7F4C1C2E56A" reported-display-style="italic" style="OLC">
<paragraph id="ID992bc9d8648349d2a28ab9fd4536730b"><enum>(4)</enum><header>Certain aviation
fuel</header>
<subparagraph id="IDf32df8e0c9114b74b1e335bd471b02cc"><enum>(A)</enum><header>In
general</header><text>Except as provided in the last 3 sentences of paragraph
(3), the term <quote>renewable diesel</quote> shall include fuel derived from
biomass which meets the requirements of a Department of Defense specification
for military jet fuel or an American Society of Testing and Materials
specification for aviation turbine fuel.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID71309c8bf4664e00bc4a87bf81dd204b"><enum>(B)</enum><header>Application of mixture
credits</header><text>In the case of fuel which is treated as renewable diesel
solely by reason of subparagraph (A), subsection (b)(1) and section 6426(c)
shall be applied with respect to such fuel by treating kerosene as though it
were diesel
fuel.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDde7d45a2c239480a94faa9737b2bc08f"><enum>(f)</enum><header>Modification relating
to definition of agri-biodiesel</header><text>Paragraph (2) of section 40A(d)
(relating to agri-biodiesel) is amended by striking <quote>and mustard
seeds</quote> and inserting <quote>mustard seeds, and camelina</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id9A24ABCB512D4E5186006394EB924E69"><enum>(g)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="idA84DBFAF4B0B4719A96EEE4A05779736"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this
subsection, the amendments made by this section shall apply to fuel produced,
and sold or used, after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3D9A304614D642B9B927AA65E31988BE"><enum>(2)</enum><header display-inline="yes-display-inline">Coproduction of renewable diesel with
petroleum feedstock</header><text display-inline="yes-display-inline">The
amendment made by subsection (d) shall apply to fuel produced, and sold or
used, after the date of the enactment of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H16EFCB00D8094FE8935B5D144BE9FAD" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Clarification that credits for fuel are
designed to provide an incentive for United States production</header>
<subsection commented="no" display-inline="no-display-inline" id="id3A7BD231E1D741A7B22A3EBD939C7D04"><enum>(a)</enum><header display-inline="yes-display-inline">Alcohol fuels credit</header><text display-inline="yes-display-inline">Subsection (d) of section 40 is amended by
adding at the end the following new paragraph:</text>
<quoted-block act-name="" changed="added" display-inline="no-display-inline" id="id8F7C123D5A1D4BBF8999D7A765A90FE7" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idF1A5A239360F454999833951165008E5"><enum>(7)</enum><header display-inline="yes-display-inline">Limitation to alcohol with connection to
the United States</header><text display-inline="yes-display-inline">No credit
shall be determined under this section with respect to any alcohol which is
produced outside the United States for use as a fuel outside the United States.
For purposes of this paragraph, the term <term>United States</term> includes
any possession of the United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7EB5E8ACF2DF407E88C6D7C15100B4FA"><enum>(b)</enum><header display-inline="yes-display-inline">Biodiesel fuels credit</header><text display-inline="yes-display-inline">Subsection (d) of section 40A is amended by
adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H77CA12CF33984EFE85580000B01B42DC" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD1D51F2F24A148EFA87B1C6C0089D17D"><enum>(5)</enum><header display-inline="yes-display-inline">Limitation to biodiesel with connection to
the United States</header><text display-inline="yes-display-inline">No credit
shall be determined under this section with respect to any biodiesel which is
produced outside the United States for use as a fuel outside the United States.
For purposes of this paragraph, the term <term>United States</term> includes
any possession of the United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF67C2B1E04554713A392CE98BE3E5227"><enum>(c)</enum><header display-inline="yes-display-inline">Excise tax credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBECE8537608441BF91866F76ABB6BF70"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 6426 is amended by adding at the
end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H3779C00AB6BB460E00EA38D17E8B12F8" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H0E0EEC0DACBC4248B0A412543EFC7F01"><enum>(i)</enum><header display-inline="yes-display-inline">Limitation to fuels with connection to the
United States</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE56F17B30D524727005C4D5CF7A58BF"><enum>(1)</enum><header display-inline="yes-display-inline">Alcohol</header><text display-inline="yes-display-inline">No credit shall be determined under this
section with respect to any alcohol which is produced outside the United States
for use as a fuel outside the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC8B9925B701542408BF34CACB46850CE"><enum>(2)</enum><header display-inline="yes-display-inline">Biodiesel and alternative
fuels</header><text display-inline="yes-display-inline">No credit shall be
determined under this section with respect to any biodiesel or alternative fuel
which is produced outside the United States for use as a fuel outside the
United States.</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">For
purposes of this subsection, the term <term>United States</term> includes any
possession of the United
States.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC74B65DC7E9C4807943087CC2452D32"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subsection (e) of section 6427 is amended
by redesignating paragraph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HAEBF7E4F98444F67B9E347FAC6901825" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H464649C0230E4E52826D50F0577070B5"><enum>(5)</enum><header display-inline="yes-display-inline">Limitation to fuels with connection to the
United States</header><text display-inline="yes-display-inline">No amount shall
be payable under paragraph (1) or (2) with respect to any mixture or
alternative fuel if credit is not allowed with respect to such mixture or
alternative fuel by reason of section
6426(i).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H675D9DBD9CA84DBBB15ED04C340009C6"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to claims for credit or payment made on or after May
15, 2008.</text>
</subsection></section><section commented="no" id="id684D8F188BDB44E7A4497DA8E9339F0B"><enum>204.</enum><header>Extension and
modification of alternative fuel credit</header>
<subsection commented="no" id="id86303A6D85694AAE9BC275FCE9DC7663"><enum>(a)</enum><header>Extension</header>
<paragraph commented="no" id="id8A71FA406C114D139714A33CB1F63EFF"><enum>(1)</enum><header>Alternative fuel
credit</header><text>Paragraph (4) of section 6426(d) (relating to alternative
fuel credit) is amended by striking <quote>September 30, 2009</quote> and
inserting <quote>December 31, 2009</quote>.</text>
</paragraph><paragraph commented="no" id="id3CA99BBBECE048CCAA1886E43DD19D71"><enum>(2)</enum><header>Alternative fuel
mixture credit</header><text>Paragraph (3) of section 6426(e) (relating to
alternative fuel mixture credit) is amended by striking <quote>September 30,
2009</quote> and inserting <quote>December 31, 2009</quote>.</text>
</paragraph><paragraph commented="no" id="idE3F6B374A6E24BB79D7E2623B2252FB7"><enum>(3)</enum><header>Payments</header><text>Subparagraph
(C) of section 6427(e)(5) (relating to termination) is amended by striking
<quote>September 30, 2009</quote> and inserting <quote>December 31,
2009</quote>.</text>
</paragraph></subsection><subsection commented="no" id="idA783423AEFF04C089407266DEDAC8006"><enum>(b)</enum><header>Modifications</header>
<paragraph commented="no" id="id57ABC68E00444030AEC3C7105CFDEF77"><enum>(1)</enum><header>Alternative fuel to
include compressed or liquified biomass gas</header><text>Paragraph (2) of
section 6426(d) (relating to alternative fuel credit) is amended by striking
<quote>and</quote> at the end of subparagraph (E), by redesignating
subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E)
the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id1788E2C43D444BD1B8CA34FCF6DEA31C" reported-display-style="italic" style="OLC">
<subparagraph commented="no" id="idB1D4B2759981416FBAF98BDB910C68FE"><enum>(F)</enum><text>compressed or liquefied
gas derived from biomass (as defined in section 45K(c)(3)),
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="idA59F7F6ABC8D47B6B4AB9A0B94780624"><enum>(2)</enum><header>Credit allowed for
aviation use of fuel</header><text>Paragraph (1) of section 6426(d) is amended
by inserting <quote>sold by the taxpayer for use as a fuel in aviation,</quote>
after <quote>motorboat,</quote>.</text>
</paragraph></subsection><subsection id="id00FBE43B9806491299B03A30955B05AE"><enum>(c)</enum><header>Carbon capture
requirement for certain fuels</header>
<paragraph id="idB8BC1138780147E19CD00BEEA90E2AA5"><enum>(1)</enum><header>In
general</header><text>Subsection (d) of section 6426, as amended by subsection
(a), is amended by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id952F7E5EAF33498AA5A6549A5432EF4C" reported-display-style="italic" style="OLC">
<paragraph id="idDCA83DD036434F1999A85FC0B34FFECD"><enum>(4)</enum><header>Carbon capture
requirement</header>
<subparagraph id="id31D2EE89FB6A4BF795DE5F39E79D1D16"><enum>(A)</enum><header>In
general</header><text>The requirements of this paragraph are met if the fuel is
certified, under such procedures as required by the Secretary, as having been
derived from coal produced at a gasification facility which separates and
sequesters not less than the applicable percentage of such facility's total
carbon dioxide emissions.</text>
</subparagraph><subparagraph id="id30D5B7C173FC43DC9278076F479E2238"><enum>(B)</enum><header>Applicable
percentage</header><text>For purposes of subparagraph (A), the applicable
percentage is—</text>
<clause id="id01D0BFD3950C4870AA835E2F3D32D19A"><enum>(i)</enum><text>50 percent in the case of
fuel produced after September 30, 2009, and on or before December 30, 2009,
and</text>
</clause><clause id="idBB7AC74F15E84BA3A53BE3A80614E98E"><enum>(ii)</enum><text>75 percent in the case
of fuel produced after December 30,
2009.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id550659311C4E47DF8A9E504386E40233"><enum>(2)</enum><header>Conforming
amendment</header><text>Subparagraph (E) of section 6426(d)(2) is amended by
inserting <quote>which meets the requirements of paragraph (4) and which
is</quote> after <quote>any liquid fuel</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC367692EEDC84E5587388CEAD1552F7B"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel sold
or used after the date of the enactment of this Act.</text>
</subsection></section><section id="id28E82AC4F03540D4B7192D47AF6C089B"><enum>205.</enum><header>Credit for new
qualified plug-in electric drive motor vehicles</header>
<subsection id="idFF6572DDB9FE41BD943FE79B97ED3142"><enum>(a)</enum><header>Plug-in electric drive
motor vehicle credit</header><text>Subpart B of part IV of subchapter A of
chapter 1 (relating to other credits) is amended by adding at the end the
following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD9F4B5C3C5874F40AC404FE4040AC135" reported-display-style="italic" style="OLC">
<section id="id32D20DF41413482BA82CBF58B351C395"><enum>30D.</enum><header>New qualified plug-in
electric drive motor vehicles</header>
<subsection id="idBF98C8C37B514801BDE831A7A2CE3134"><enum>(a)</enum><header>Allowance of
credit</header>
<paragraph id="id2D498035F0F54F798186EB69AB2B1F4B"><enum>(1)</enum><header>In
general</header><text>There shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the applicable
amount with respect to each new qualified plug-in electric drive motor vehicle
placed in service by the taxpayer during the taxable year.</text>
</paragraph><paragraph id="idF1D83508C65B4DA49845DF9E6149CEE6"><enum>(2)</enum><header>Applicable
amount</header><text>For purposes of paragraph (1), the applicable amount is
sum of—</text>
<subparagraph id="id9CAB2FFEB6154DBD916C49590C79D191"><enum>(A)</enum><text>$2,500, plus</text>
</subparagraph><subparagraph id="id5798561F45AF433C8EAA4642EF93262E"><enum>(B)</enum><text>$417 for each kilowatt
hour of traction battery capacity in excess of 4 kilowatt hours.</text>
</subparagraph></paragraph></subsection><subsection id="id6CAD849BBA8D4B04AA6B33960735FFDC"><enum>(b)</enum><header>Limitations</header>
<paragraph id="idE57627C7609A428FB08086FC63E0A6F4"><enum>(1)</enum><header>Limitation based on
weight</header><text>The amount of the credit allowed under subsection (a) by
reason of subsection (a)(2) shall not exceed—</text>
<subparagraph id="idE9A125710D4746898CDB6951E178C992"><enum>(A)</enum><text>$7,500, in the case of
any new qualified plug-in electric drive motor vehicle with a gross vehicle
weight rating of not more than 10,000 pounds,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF3E254D62EDB4DCBB7B020FE714DDFE9"><enum>(B)</enum><text display-inline="yes-display-inline">$10,000, in the case of any new qualified
plug-in electric drive motor vehicle with a gross vehicle weight rating of more
than 10,000 pounds but not more than 14,000 pounds,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE31886A373254242804217B38956C144"><enum>(C)</enum><text display-inline="yes-display-inline">$12,500, in the case of any new qualified
plug-in electric drive motor vehicle with a gross vehicle weight rating of more
than 14,000 pounds but not more than 26,000 pounds, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id57EDD327897E4582BA6D0C041A016F82"><enum>(D)</enum><text display-inline="yes-display-inline">$15,000, in the case of any new qualified
plug-in electric drive motor vehicle with a gross vehicle weight rating of more
than 26,000 pounds.</text>
</subparagraph></paragraph><paragraph id="idD71343B3E9CB40AD9A1CB26FDF9DB689"><enum>(2)</enum><header>Limitation on number of
passenger vehicles and light trucks eligible for credit</header>
<subparagraph id="id70200E743C1B4C02AB5CD74AF1519A04"><enum>(A)</enum><header>In
general</header><text>In the case of a new qualified plug-in electric drive
motor vehicle sold during the phaseout period, only the applicable percentage
of the credit otherwise allowable under subsection (a) shall be allowed.</text>
</subparagraph><subparagraph id="id25C2E5D11F834BF4877A1C82352F90E7"><enum>(B)</enum><header>Phaseout
period</header><text>For purposes of this subsection, the phaseout period is
the period beginning with the second calendar quarter following the calendar
quarter which includes the first date on which the total number of such new
qualified plug-in electric drive motor vehicles sold for use in the United
States after December 31, 2008, is at least 250,000.</text>
</subparagraph><subparagraph id="idBD5D81AE42E34BABBE320D21B81A571F"><enum>(C)</enum><header>Applicable
percentage</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A), the applicable percentage is—</text>
<clause id="id01D0434CC4004898B3E7FD98CBFB3FFB"><enum>(i)</enum><text>50 percent for the first
2 calendar quarters of the phaseout period,</text>
</clause><clause id="id4C368922C55B4E66A65993230F2DE571"><enum>(ii)</enum><text>25 percent for the 3d
and 4th calendar quarters of the phaseout period, and</text>
</clause><clause id="idE402C9D0F1024DA18725494CF25D4CF4"><enum>(iii)</enum><text>0 percent for each
calendar quarter thereafter.</text>
</clause></subparagraph><subparagraph id="id8DF7E014362C49FAB38327E5BC4F17D3"><enum>(D)</enum><header>Controlled
groups</header><text>Rules similar to the rules of section 30B(f)(4) shall
apply for purposes of this subsection.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD014B4CB584049E7848593151B3CD406"><enum>(c)</enum><header>New qualified plug-in
electric drive motor vehicle</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>new qualified plug-in electric drive motor vehicle</term> means a motor
vehicle—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id934819BCCDA2491891F549AA4062F0BA"><enum>(1)</enum><text display-inline="yes-display-inline">which draws propulsion using a traction
battery with at least 4 kilowatt hours of capacity,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD0E8E2ED193242F48DE19BF91B73DC00"><enum>(2)</enum><text display-inline="yes-display-inline">which uses an offboard source of energy to
recharge such battery,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6F401980FAEC4E709324C032FED838AC"><enum>(3)</enum><text display-inline="yes-display-inline">which, in the case of a passenger vehicle
or light truck which has a gross vehicle weight rating of not more than 8,500
pounds, has received a certificate of conformity under the Clean Air Act and
meets or exceeds the equivalent qualifying California low emission vehicle
standard under section 243(e)(2) of the Clean Air Act for that make and model
year, and</text>
<subparagraph id="ID29a32d0fb8ce44d286946ad13071151d"><enum>(A)</enum><text>in the case of a vehicle
having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II
emission standard established in regulations prescribed by the Administrator of
the Environmental Protection Agency under section 202(i) of the Clean Air Act
for that make and model year vehicle, and</text>
</subparagraph><subparagraph id="IDfeb5bdae62b8419a8b98185356aad1bc"><enum>(B)</enum><text>in the case of a vehicle
having a gross vehicle weight rating of more than 6,000 pounds but not more
than 8,500 pounds, the Bin 8 Tier II emission standard which is so
established,</text>
</subparagraph></paragraph><paragraph id="id4FDE46F77EC54FD1A8436823D0D3B6FB"><enum>(4)</enum><text>the original use of which
commences with the taxpayer,</text>
</paragraph><paragraph id="idB478F1FDB3544EA3B14A07E9D90C5C80"><enum>(5)</enum><text>which is acquired for use
or lease by the taxpayer and not for resale, and</text>
</paragraph><paragraph id="idBBD1E76847964C3BAA686CFF9992B6DE"><enum>(6)</enum><text>which is made by a
manufacturer.</text>
</paragraph></subsection><subsection id="idEA5A2CE2AD574E008F21C15B116DB223"><enum>(d)</enum><header>Application with other
credits</header>
<paragraph id="id620B614F30A04F65B022FC0DE2FBC6DC"><enum>(1)</enum><header>Business credit treated
as part of general business credit</header><text display-inline="yes-display-inline">So much of the credit which would be
allowed under subsection (a) for any taxable year (determined without regard to
this subsection) that is attributable to property of a character subject to an
allowance for depreciation shall be treated as a credit listed in section 38(b)
for such taxable year (and not allowed under subsection (a)).</text>
</paragraph><paragraph id="idB6215C8524BC42F7BD43D4DAD1E33D46"><enum>(2)</enum><header>Personal
credit</header>
<subparagraph id="idC472152B5FC0482D95CF390851BAF752"><enum>(A)</enum><header>In
general</header><text>For purposes of this title, the credit allowed under
subsection (a) for any taxable year (determined after application of paragraph
(1)) shall be treated as a credit allowable under subpart A for such taxable
year.</text>
</subparagraph><subparagraph commented="no" id="id7CFC55B1CC0D4E929C021C45FED34667"><enum>(B)</enum><header>Limitation based on
amount of tax</header><text>In the case of a taxable year to which section
26(a)(2) does not apply, the credit allowed under subsection (a) for any
taxable year (determined after application of paragraph (1)) shall not exceed
the excess of—</text>
<clause commented="no" id="idEA45B63BECEB4BB1A394C13EB588CABD"><enum>(i)</enum><text>the sum of the regular
tax liability (as defined in section 26(b)) plus the tax imposed by section 55,
over</text>
</clause><clause commented="no" id="id3C185487BB1649CDB7FAF9EC0E10D613"><enum>(ii)</enum><text>the sum of the credits
allowable under subpart A (other than this section and sections 23 and 25D) and
section 27 for the taxable year.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id2BB8D4E00ABD41A7A7914DC2BCD33222"><enum>(e)</enum><header>Other definitions and
special rules</header><text>For purposes of this section—</text>
<paragraph id="id9A48CB296BCD47E1A78AF32EC8020929"><enum>(1)</enum><header>Motor
vehicle</header><text>The term <term>motor vehicle</term> has the meaning given
such term by section 30(c)(2).</text>
</paragraph><paragraph id="idE00134AF25FA42B4BF86AE79D90CA800"><enum>(2)</enum><header>Other
terms</header><text>The terms <term>passenger automobile</term>, <term>light
truck</term>, and <term>manufacturer</term> have the meanings given such terms
in regulations prescribed by the Administrator of the Environmental Protection
Agency for purposes of the administration of title II of the Clean Air Act (42
U.S.C. 7521 et seq.).</text>
</paragraph><paragraph id="id4B873C2CF00A40ADA516C7A97A4AC049"><enum>(3)</enum><header>Traction battery
capacity</header><text>Traction battery capacity shall be measured in kilowatt
hours from a 100 percent state of charge to a zero percent state of
charge.</text>
</paragraph><paragraph id="idC4C444B3C4234912A7231F9421EA648D"><enum>(4)</enum><header>Reduction in
basis</header><text>For purposes of this subtitle, the basis of any property
for which a credit is allowable under subsection (a) shall be reduced by the
amount of such credit so allowed.</text>
</paragraph><paragraph id="id1E950DF0B1D84F3AA1CAF7BA51ABBB81"><enum>(5)</enum><header>No double
benefit</header><text>The amount of any deduction or other credit allowable
under this chapter for a new qualified plug-in electric drive motor vehicle
shall be reduced by the amount of credit allowed under subsection (a) for such
vehicle for the taxable year.</text>
</paragraph><paragraph id="idE34FBC2E678C401A8C4716FB1AD69E30"><enum>(6)</enum><header>Property used by
tax-exempt entity</header><text>In the case of a vehicle the use of which is
described in paragraph (3) or (4) of section 50(b) and which is not subject to
a lease, the person who sold such vehicle to the person or entity using such
vehicle shall be treated as the taxpayer that placed such vehicle in service,
but only if such person clearly discloses to such person or entity in a
document the amount of any credit allowable under subsection (a) with respect
to such vehicle (determined without regard to subsection (b)(2)).</text>
</paragraph><paragraph id="id14FF46EE74AD4235AA2D2A20878DDBEA"><enum>(7)</enum><header>Property used outside
United States, etc., not qualified</header><text>No credit shall be allowable
under subsection (a) with respect to any property referred to in section
50(b)(1) or with respect to the portion of the cost of any property taken into
account under section 179.</text>
</paragraph><paragraph id="id98D6CD688C874630866289F90F1646AB"><enum>(8)</enum><header>Recapture</header><text>The
Secretary shall, by regulations, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any property which ceases
to be property eligible for such credit (including recapture in the case of a
lease period of less than the economic life of a vehicle).</text>
</paragraph><paragraph id="idC61608DAF9624C09A474B1C2EF093727"><enum>(9)</enum><header>Election to not take
credit</header><text>No credit shall be allowed under subsection (a) for any
vehicle if the taxpayer elects not to have this section apply to such
vehicle.</text>
</paragraph><paragraph id="id7D754B00412649D0A6ADEAE0EF1141E5"><enum>(10)</enum><header>Interaction with air
quality and motor vehicle safety standards</header><text>Unless otherwise
provided in this section, a motor vehicle shall not be considered eligible for
a credit under this section unless such vehicle is in compliance with—</text>
<subparagraph id="id43E005F394D1413EB42BA0D76E5CFDBC"><enum>(A)</enum><text>the applicable provisions
of the Clean Air Act for the applicable make and model year of the vehicle (or
applicable air quality provisions of State law in the case of a State which has
adopted such provision under a waiver under section 209(b) of the Clean Air
Act), and</text>
</subparagraph><subparagraph id="id7070A278D7244AB79D9202D4FF616872"><enum>(B)</enum><text>the motor vehicle safety
provisions of sections 30101 through 30169 of title 49, United States
Code.</text>
</subparagraph></paragraph></subsection><subsection id="id77079655EDCF493AB44DE5325EE4ECAA"><enum>(f)</enum><header>Regulations</header>
<paragraph id="id6955E0A31D0A486F9E67B8BEC834E64F"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the Secretary shall
promulgate such regulations as necessary to carry out the provisions of this
section.</text>
</paragraph><paragraph id="id90F9CACC709F4B8EB27E7E2CF1080E15"><enum>(2)</enum><header>Coordination in
prescription of certain regulations</header><text>The Secretary of the
Treasury, in coordination with the Secretary of Transportation and the
Administrator of the Environmental Protection Agency, shall prescribe such
regulations as necessary to determine whether a motor vehicle meets the
requirements to be eligible for a credit under this section.</text>
</paragraph></subsection><subsection id="idA88EBC5034A74C24B2238B5640062601"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply to property purchased after December 31,
2014.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="idB113A8144B9A420C9ABB1EAC04CD0AD6"><enum>(b)</enum><header>Coordination with
alternative motor vehicle credit</header><text>Section 30B(d)(3) is amended by
adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0262506E8A044B3B9D7D73BFB200408A" reported-display-style="italic" style="OLC">
<subparagraph id="idBE03E4AD2BF043818D6ED64C55C85081"><enum>(D)</enum><header>Exclusion of plug-in
vehicles</header><text>Any vehicle with respect to which a credit is allowable
under section 30D (determined without regard to subsection (d) thereof) shall
not be taken into account under this
section.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id07EF45C150DB423D968E47AAFC912E3E"><enum>(c)</enum><header>Credit made part of
general business credit</header><text>Section 38(b), as amended by this Act, is
amended by striking <quote>plus</quote> at the end of paragraph (33), by
striking the period at the end of paragraph (34) and inserting
<quote>plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE669F97EF96C458297C1EFB21D6A2217" reported-display-style="italic" style="OLC">
<paragraph id="id6A755454E65A436F9E52164A42F2AF03"><enum>(35)</enum><text>the portion of the new
qualified plug-in electric drive motor vehicle credit to which section
30D(d)(1)
applies.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="idB282A9576079454996D433EF43A9DF51"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="id4F0C114A44A14D7EA50630024F3967CA"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id3DE4F9EFCADC469B8B68B28D24E60ED0"><enum>(A)</enum><text>Section 24(b)(3)(B), as
amended by section 106, is amended by striking <quote>and 25D</quote> and
inserting <quote>25D, and 30D</quote>.</text>
</subparagraph><subparagraph changed="added" commented="no" id="id295504D2C2A349BD876B9BC22BED279E" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>Section 25(e)(1)(C)(ii)
is amended by inserting <quote>30D,</quote> after <quote>25D,</quote>.</text>
</subparagraph><subparagraph changed="added" commented="no" id="idF77B3BAFA41E4526A1DD24A2784C1F09" indent="up1" reported-display-style="italic"><enum>(C)</enum><text>Section 25B(g)(2), as
amended by section 106, is amended by striking <quote>and 25D</quote> and
inserting <quote>, 25D, and 30D</quote>.</text>
</subparagraph><subparagraph changed="added" commented="no" id="id74C7EA6DB6EA430583782F1CDDCCFAAE" indent="up1" reported-display-style="italic"><enum>(D)</enum><text>Section 26(a)(1), as
amended by section 106, is amended by striking <quote>and 25D</quote> and
inserting <quote>25D, and 30D</quote>.</text>
</subparagraph><subparagraph changed="added" commented="no" id="idCF29C8255568442B8E69A97D1DB70B2B" indent="up1" reported-display-style="italic"><enum>(E)</enum><text>Section 1400C(d)(2) is
amended by striking <quote>and 25D</quote> and inserting <quote>25D, and
30D</quote>.</text>
</subparagraph></paragraph><paragraph id="id8C31BC0C909B4C02AAD741A64768F1FB"><enum>(2)</enum><text>Section 1016(a) is
amended by striking <quote>and</quote> at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id21C2B520FAFD4B39AF3A60A730E5FC71" reported-display-style="italic" style="OLC">
<paragraph id="id766C73EE67494274B0ACBC1748449E0D"><enum>(37)</enum><text>to the extent provided
in section
30D(e)(4).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idFD3CBF988FFE4D54B71C632C6BBB7C4F"><enum>(3)</enum><text>Section 6501(m) is
amended by inserting <quote>30D(e)(9),</quote> after
<quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph id="id5627F6E12E4741BB8E6E0BF1A883AD84"><enum>(4)</enum><text>The table of sections for
subpart B of part IV of subchapter A of chapter 1 is amended by adding at the
end the following new item:</text>
<quoted-block changed="added" id="id96CC431C46E247A3BE60CFB139A6295F" reported-display-style="italic" style="OLC">
<toc changed="added" reported-display-style="italic">
<toc-entry level="section">Sec. 30D. New qualified plug-in electric drive
motor
vehicles.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id19AB426F95FB423D90FB0EE27EA47914"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.</text>
</subsection><subsection id="id3B51D36658474FC5AD6B120ADB824252"><enum>(f)</enum><header>Application of EGTRRA
sunset</header><text>The amendment made by subsection (d)(1)(A) shall be
subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of
2001 in the same manner as the provision of such Act to which such amendment
relates.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HFB0E61DCA7E04BF8A124B4B3074333A2" section-type="subsequent-section"><enum>206.</enum><header display-inline="yes-display-inline">Exclusion from heavy truck tax for idling
reduction units and advanced insulation</header>
<subsection commented="no" display-inline="no-display-inline" id="H095C74B572874823820260D3435320B1"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 4053 is amended by adding at the
end the following new paragraphs:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA9E61EB34C7E4471ABB02B10F4300025" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE678079B89B7408C8FD15DD9003FDC00"><enum>(9)</enum><header display-inline="yes-display-inline">Idling reduction device</header><text display-inline="yes-display-inline">Any device or system of devices
which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H57F2676CE3944348AE38E4C83DC34C27"><enum>(A)</enum><text display-inline="yes-display-inline">is designed to provide to a vehicle those
services (such as heat, air conditioning, or electricity) that would otherwise
require the operation of the main drive engine while the vehicle is temporarily
parked or remains stationary using one or more devices affixed to a tractor,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7BA2DAA30FC74E80AB27D76FAD991F9F"><enum>(B)</enum><text display-inline="yes-display-inline">is determined by the Administrator of the
Environmental Protection Agency, in consultation with the Secretary of Energy
and the Secretary of Transportation, to reduce idling of such vehicle at a
motor vehicle rest stop or other location where such vehicles are temporarily
parked or remain stationary.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA685817D1AFB4230A3586D1879C2D65F"><enum>(10)</enum><header display-inline="yes-display-inline">Advanced insulation</header><text display-inline="yes-display-inline">Any insulation that has an R value of not
less than R35 per
inch.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H039BC7343AE247BCAC9B19375499CE89"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to sales or installations after the date of the
enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H4C36D41F64DA43129E0451276C3C50B4" section-type="subsequent-section"><enum>207.</enum><header display-inline="yes-display-inline">Alternative fuel vehicle refueling property
credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H464D81D53DB74B318D24EF90D4CFCA86"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of credit</header><text display-inline="yes-display-inline">Paragraph (2) of section 30C(g) is amended
by striking <quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" id="idA15002ECB7444E0D82EB37D28332FD6B"><enum>(b)</enum><header>Inclusion of
electricity as a clean-burning fuel</header><text>Section 30C(c)(2) is amended
by adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0FAB814D45814847869F922FDEDCE12B" reported-display-style="italic" style="OLC">
<subparagraph commented="no" id="idE79A7FE68D7B428FB4B6ECD2374221B5"><enum>(C)</enum><text>Electricity.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBFA89197334641C5B336DAF4A0776E36"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to property placed in service after the date of the
enactment of this Act, in taxable years ending after such date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id10B7A96C6B064F4398E46B42A3D6D53D" section-type="subsequent-section"><enum>208.</enum><header display-inline="yes-display-inline">Certain income and gains relating to
alcohol fuels and mixtures, biodiesel fuels and mixtures, and alternative fuels
and mixtures treated as qualifying income for publicly traded
partnerships</header>
<subsection commented="no" display-inline="no-display-inline" id="IDcc24d87a73c74ce3bea7e1c854b9f332"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (E) of section 7704(d)(1), as
amended by this Act, is amended by striking <quote>or industrial source carbon
dioxide</quote> and inserting “, industrial source carbon dioxide, or the
transportation or storage of any fuel described in subsection (b), (c), (d), or
(e) of section 6426, or any alcohol fuel defined in section 6426(b)(4)(A) or
any biodiesel fuel as defined in section 40A(d)(1)” after
<quote>timber)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDBE3309B5B73415D80E1C96357BB28A3"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall take effect on the date of the enactment of this Act, in
taxable years ending after such date.</text>
</subsection></section><section id="id4B56FDAA8A8E473194A471E49BC90066"><enum>209.</enum><header>Extension and
modification of election to expense certain refineries</header>
<subsection id="id21FDDE38302141CDAE126EF74C4F8BBF"><enum>(a)</enum><header>Extension</header><text>Paragraph
(1) of section 179C(c) (relating to qualified refinery property) is
amended—</text>
<paragraph id="idCE8407EC5913404E91351EF84EE1C9D4"><enum>(1)</enum><text>by striking
<quote>January 1, 2012</quote> in subparagraph (B) and inserting <quote>January
1, 2014</quote>, and</text>
</paragraph><paragraph id="id933E81D4A1D24F0B8DA2189911248F64"><enum>(2)</enum><text>by striking
<quote>January 1, 2008</quote> each place it appears in subparagraph (F) and
inserting <quote>January 1, 2010</quote>.</text>
</paragraph></subsection><subsection id="idC417BA8652914734BFFB789237B36664"><enum>(b)</enum><header>Inclusion of fuel
derived from shale and tar sands</header>
<paragraph id="id372F388815DB4BD0AF3AA0B087CCBE68"><enum>(1)</enum><header>In
general</header><text>Subsection (d) of section 179C is amended by inserting
<quote>, or directly from shale or tar sands</quote> after <quote>(as defined
in section 45K(c))</quote>.</text>
</paragraph><paragraph id="id92624CE8C45648B9A12DD02402B6257D"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraph (2) of section 179C(e) is amended by
inserting <quote>shale, tar sands, or</quote> before <quote>qualified
fuels</quote>.</text>
</paragraph></subsection><subsection id="id6E38CF3F86E74FF897987F07C7C8F978"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id8EA94D2C1DD745F5BDBAD8AA4555C7F1"><enum>210.</enum><header>Extension of
suspension of taxable income limit on percentage depletion for oil and natural
gas produced from marginal properties</header><text display-inline="no-display-inline">Subparagraph (H) of section 613A(c)(6)
(relating to oil and gas produced from marginal properties) is amended by
striking <quote>for any taxable year</quote> and all that follows and
inserting</text>
<quoted-block changed="added" display-inline="yes-display-inline" id="id405D00F0EA3542B7AA548CFAEBC136E8" reported-display-style="italic" style="OLC">
<text>for any taxable
year—</text><clause commented="no" display-inline="no-display-inline" id="id625590ED5F944EDAB838A873308611D4"><enum>(i)</enum><text display-inline="yes-display-inline">beginning after December 31, 1997, and
before January 1, 2008, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idA3C7DD95D7AE4EE685A04747FFAFA0DB"><enum>(ii)</enum><text display-inline="yes-display-inline">beginning after December 31, 2008, and
before January 1,
2010.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="HC7337FD74ACF48F2B0B61BFAD743106" section-type="subsequent-section"><enum>211.</enum><header display-inline="yes-display-inline">Transportation fringe benefit to bicycle
commuters</header>
<subsection commented="no" display-inline="no-display-inline" id="H71D8AC8C985149F5A9FF463F29859ED"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 132(f) is amended
by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8EA0FC0300BA4B4FB71F7D56B44BF7AE" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H8EFFD45F2A0B4C0EB848EF70B975B6F6"><enum>(D)</enum><text display-inline="yes-display-inline">Any qualified bicycle commuting
reimbursement.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H24A7801D526B4E7F8EA4CE9341FC79B3"><enum>(b)</enum><header display-inline="yes-display-inline">Limitation on exclusion</header><text display-inline="yes-display-inline">Paragraph (2) of section 132(f) 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 changed="added" display-inline="no-display-inline" id="HE9D1C660871A4870A29216F3A9980079" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H995E2AFB998444F7B865E8BFF33D200"><enum>(C)</enum><text display-inline="yes-display-inline">the applicable annual limitation in the
case of any qualified bicycle commuting
reimbursement.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H164E6054677B4CC59FDA62D083E37537"><enum>(c)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Paragraph (5) of section 132(f) is amended
by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4B428A588ADD460D9361FDE310D0D8B6" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HBFA643C380D44D0E9F68601FC938444F"><enum>(F)</enum><header display-inline="yes-display-inline">Definitions related to bicycle commuting
reimbursement</header>
<clause commented="no" display-inline="no-display-inline" id="HAB08DA8301EF470B9DAB9EFF727D04E1"><enum>(i)</enum><header display-inline="yes-display-inline">Qualified bicycle commuting
reimbursement</header><text display-inline="yes-display-inline">The term
<term>qualified bicycle commuting reimbursement</term> means, with respect to
any calendar year, any employer reimbursement during the 15-month period
beginning with the first day of such calendar year for reasonable expenses
incurred by the employee during such calendar year for the purchase of a
bicycle and bicycle improvements, repair, and storage, if such bicycle is
regularly used for travel between the employee’s residence and place of
employment.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF9C8D8F2078841CCA6A9C60351936599"><enum>(ii)</enum><header display-inline="yes-display-inline">Applicable annual limitation</header><text display-inline="yes-display-inline">The term <term>applicable annual
limitation</term> means, with respect to any employee for any calendar year,
the product of $20 multiplied by the number of qualified bicycle commuting
months during such year.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2F7135934DC54658B6BBDE7FC800FBD8"><enum>(iii)</enum><header display-inline="yes-display-inline">Qualified bicycle commuting
month</header><text display-inline="yes-display-inline">The term
<term>qualified bicycle commuting month</term> means, with respect to any
employee, any month during which such employee—</text>
<subclause commented="no" display-inline="no-display-inline" id="HEA19C7DF194947279CF9866D3C729361"><enum>(I)</enum><text display-inline="yes-display-inline">regularly uses the bicycle for a
substantial portion of the travel between the employee’s residence and place of
employment, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H3B4B5ED432464748A5C80800C6D0EF81"><enum>(II)</enum><text display-inline="yes-display-inline">does not receive any benefit described in
subparagraph (A), (B), or (C) of paragraph
(1).</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9A8F9E5660174B47827B622066FE008E"><enum>(d)</enum><header display-inline="yes-display-inline">Constructive receipt of
benefit</header><text display-inline="yes-display-inline">Paragraph (4) of
section 132(f) is amended by inserting <quote>(other than a qualified bicycle
commuting reimbursement)</quote> after <quote>qualified transportation
fringe</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6E7E59A02BDB4DDEA2005BC13CD5963F"><enum>(e)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2008.</text>
</subsection></section><enum>III</enum><header display-inline="yes-display-inline">Energy conservation and efficiency
provisions</header>
<section commented="no" display-inline="no-display-inline" id="H80762FAEA6B0411ABB9330954824B7F" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Qualified energy conservation
bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="H366B4F2CDAC44C2780F395A5DABE3BE3"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart I of part IV of subchapter A of
chapter 1, as amended by section 107, is amended by adding at the end the
following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H84E4FF4893D849EB890056C916790067" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H85287BA9F6C54044A49405E9007B70A4" section-type="subsequent-section"><enum>54D.</enum><header display-inline="yes-display-inline">Qualified energy conservation
bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="H89184009FECE48419F19215216ECD1E"><enum>(a)</enum><header display-inline="yes-display-inline">Qualified energy conservation
bond</header><text display-inline="yes-display-inline">For purposes of this
subchapter, the term <term>qualified energy conservation bond</term> means any
bond issued as part of an issue if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H8494B31DDA894D339CD8D86D93C1C8CF"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of the available project
proceeds of such issue are to be used for one or more qualified conservation
purposes,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H708D321609D24FEC97B66900FA19AF61"><enum>(2)</enum><text display-inline="yes-display-inline">the bond is issued by a State or local
government, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H31CA2F97BCC744C68412F2E331919106"><enum>(3)</enum><text display-inline="yes-display-inline">the issuer designates such bond for
purposes of this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8B7E22A52A8941FF86982D396C23E2FA"><enum>(b)</enum><header display-inline="yes-display-inline">Reduced credit amount</header><text display-inline="yes-display-inline">The annual credit determined under section
54A(b) with respect to any qualified energy conservation bond shall be 70
percent of the amount so determined without regard to this subsection.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEE478747B17E4CEE8F0003B32FAD0685"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation on amount of bonds
designated</header><text display-inline="yes-display-inline">The maximum
aggregate face amount of bonds which may be designated under subsection (a) by
any issuer shall not exceed the limitation amount allocated to such issuer
under subsection (e).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H446046B19D6C40C08DF9B05E21FF7274"><enum>(d)</enum><header display-inline="yes-display-inline">National limitation on amount of bonds
designated</header><text display-inline="yes-display-inline">There is a
national qualified energy conservation bond limitation of $800,000,000.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H694DE299D4AD43DAB8AF563C4E10C7A8"><enum>(e)</enum><header display-inline="yes-display-inline">Allocations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6303F183B8FA432A9D1F00D061113FB7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The limitation applicable under subsection
(d) shall be allocated by the Secretary among the States in proportion to the
population of the States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB61F28231DBC45AC9448487F0065965B"><enum>(2)</enum><header display-inline="yes-display-inline">Allocations to largest local
governments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA171DE4961434D3A83894D4E279D8503"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any State in which there is
a large local government, each such local government shall be allocated a
portion of such State’s allocation which bears the same ratio to the State’s
allocation (determined without regard to this subparagraph) as the population
of such large local government bears to the population of such State.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6D9E1F239D2641579FEC6B91075D9162"><enum>(B)</enum><header display-inline="yes-display-inline">Allocation of unused limitation to
State</header><text display-inline="yes-display-inline">The amount allocated
under this subsection to a large local government may be reallocated by such
local government to the State in which such local government is located.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H256C0E22BB4E4D05B8635EB6241BE00"><enum>(C)</enum><header display-inline="yes-display-inline">Large local government</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>large local government</term> means any municipality or county if such
municipality or county has a population of 100,000 or more.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BEF0B18F35E43C0B6E9361100D726F7"><enum>(3)</enum><header display-inline="yes-display-inline">Allocation to issuers; restriction on
private activity bonds</header><text display-inline="yes-display-inline">Any
allocation under this subsection to a State or large local government shall be
allocated by such State or large local government to issuers within the State
in a manner that results in not less than 70 percent of the allocation to such
State or large local government being used to designate bonds which are not
private activity bonds.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF8DA9102D8ED4C8A86800021D0664F92"><enum>(f)</enum><header display-inline="yes-display-inline">Qualified conservation
purpose</header><text display-inline="yes-display-inline">For purposes of this
section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H04C628095E134DC8B5B8C3205EA00B8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified conservation
purpose</term> means any of the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1E7D707CE7DE48CC8CC41F944533DC77"><enum>(A)</enum><text display-inline="yes-display-inline">Capital expenditures incurred for purposes
of—</text>
<clause commented="no" display-inline="no-display-inline" id="H29F93D7CA5D7477590BCE0D66817FA1C"><enum>(i)</enum><text display-inline="yes-display-inline">reducing energy consumption in
publicly-owned buildings by at least 20 percent,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEE36442EFFE540B58CAC35E6AB2B6D8F"><enum>(ii)</enum><text display-inline="yes-display-inline">implementing green community
programs,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFBAA2C29445C4B34B988AF93D6FEC000"><enum>(iii)</enum><text display-inline="yes-display-inline">rural development involving the production
of electricity from renewable energy resources, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4B2841014A134D618011B2A7F0B7A100"><enum>(iv)</enum><text display-inline="yes-display-inline">any qualified facility (as determined under
section 45(d) without regard to paragraphs (8) and (10) thereof and without
regard to any placed in service date).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCC1A91ED1DF94987AF39EA59B66F7BB"><enum>(B)</enum><text display-inline="yes-display-inline">Expenditures with respect to research
facilities, and research grants, to support research in—</text>
<clause commented="no" display-inline="no-display-inline" id="HCCB16B51EFC840A3B338347682CEAA64"><enum>(i)</enum><text display-inline="yes-display-inline">development of cellulosic ethanol or other
nonfossil fuels,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H24D96FFCB49043019C067C5213BDBF86"><enum>(ii)</enum><text display-inline="yes-display-inline">technologies for the capture and
sequestration of carbon dioxide produced through the use of fossil
fuels,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H584597BECF6047B28B1866FA32A80226"><enum>(iii)</enum><text display-inline="yes-display-inline">increasing the efficiency of existing
technologies for producing nonfossil fuels,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3A3F4A15CBB9499A8006043BBB1899D3"><enum>(iv)</enum><text display-inline="yes-display-inline">automobile battery technologies and other
technologies to reduce fossil fuel consumption in transportation, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1AF35082D1AE4623B3A018D7570009CD"><enum>(v)</enum><text display-inline="yes-display-inline">technologies to reduce energy use in
buildings.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H15039A0AB1FA4D3F83767E725DD550AC"><enum>(C)</enum><text display-inline="yes-display-inline">Mass commuting facilities and related
facilities that reduce the consumption of energy, including expenditures to
reduce pollution from vehicles used for mass commuting.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDF72D343679443F0BAC251F8DC964B1B"><enum>(D)</enum><text display-inline="yes-display-inline">Demonstration projects designed to promote
the commercialization of—</text>
<clause commented="no" display-inline="no-display-inline" id="HB02EBF58984A46E38DCD39F46489ABB9"><enum>(i)</enum><text display-inline="yes-display-inline">green building technology,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0FE7E8F635CD42B9B1506140B4361EFF"><enum>(ii)</enum><text display-inline="yes-display-inline">conversion of agricultural waste for use in
the production of fuel or otherwise,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HFB0347AF0C5249E58847727F37FB43D5"><enum>(iii)</enum><text display-inline="yes-display-inline">advanced battery manufacturing
technologies,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H87D57173C02141F490988C94A180DAA5"><enum>(iv)</enum><text display-inline="yes-display-inline">technologies to reduce peak use of
electricity, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H23FC4B6BF134457BB588B9FCFA2A2D"><enum>(v)</enum><text display-inline="yes-display-inline">technologies for the capture and
sequestration of carbon dioxide emitted from combusting fossil fuels in order
to produce electricity.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H82B3DDA0908747D5A62F845FF9645E63"><enum>(E)</enum><text display-inline="yes-display-inline">Public education campaigns to promote
energy efficiency.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6FBE4571B8D24A3693E788C5A409E1A0"><enum>(2)</enum><header display-inline="yes-display-inline">Special rules for private activity
bonds</header><text display-inline="yes-display-inline">For purposes of this
section, in the case of any private activity bond, the term <term>qualified
conservation purposes</term> shall not include any expenditure which is not a
capital expenditure.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H92A2DC3A29074B00882411C5DF993761"><enum>(g)</enum><header display-inline="yes-display-inline">Population</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2CA13D0C475B45BC8094F618FA409E3E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The population of any State or local
government shall be determined for purposes of this section as provided in
section 146(j) for the calendar year which includes the date of the enactment
of this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H41B7B2B6F97149A3A2A53E57162EDF8B"><enum>(2)</enum><header display-inline="yes-display-inline">Special rule for counties</header><text display-inline="yes-display-inline">In determining the population of any county
for purposes of this section, any population of such county which is taken into
account in determining the population of any municipality which is a large
local government shall not be taken into account in determining the population
of such county.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB6368F76FD8F4BC49F8670A080D35FE9"><enum>(h)</enum><header display-inline="yes-display-inline">Application to Indian tribal
governments</header><text display-inline="yes-display-inline">An Indian tribal
government shall be treated for purposes of this section in the same manner as
a large local government, except that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFA35678B9C3141B389BE5E7452AE346"><enum>(1)</enum><text display-inline="yes-display-inline">an Indian tribal government shall be
treated for purposes of subsection (e) as located within a State to the extent
of so much of the population of such government as resides within such State,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H80063981B4EC4B5498BE9EA73B9530ED"><enum>(2)</enum><text display-inline="yes-display-inline">any bond issued by an Indian tribal
government shall be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of which are used for
purposes for which such Indian tribal government could issue bonds to which
section 103(a)
applies.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8FBDBE71CE3E4736ACC35ECE65BEC5D5"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9C898EAC256A476D96F46841D7E66D8C"><enum>(1)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 54A(d), as amended
by this Act, is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H55DD93BB35824961BA63AB09112FCC9C" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE08BE88BA86046E79FDBB677EDE61350"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified tax credit bond</header><text display-inline="yes-display-inline">The term <term>qualified tax credit
bond</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id79BA94FFA8E24FBA9361E8B0B8615CF9"><enum>(A)</enum><text display-inline="yes-display-inline">a qualified forestry conservation
bond,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H30E9F49A76874024005C00002DB2C582"><enum>(B)</enum><text display-inline="yes-display-inline">a new clean renewable energy bond,
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H11D8708E4AFE42A4BE7775271204DBB1"><enum>(C)</enum><text display-inline="yes-display-inline">a qualified energy conservation
bond,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">which
is part of an issue that meets requirements of paragraphs (2), (3), (4), (5),
and
(6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB064D25FEA114B35B57BEAC0022D900"><enum>(2)</enum><text display-inline="yes-display-inline">Subparagraph (C) of section 54A(d)(2), as
amended by this Act, is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H2A247C96C92D445496F4D9AB661104CC" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HD72F349C246C410B9193B1B9A5B1086B"><enum>(C)</enum><header display-inline="yes-display-inline">Qualified purpose</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<term>qualified purpose</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="id2946387A02FE4A41823C8B26C1AB011C"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a qualified forestry
conservation bond, a purpose specified in section 54B(e),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5D9D44559B244B76A321F69D5118B1C3"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a new clean renewable energy
bond, a purpose specified in section 54C(a)(1), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBF0DF86E47AE4D5392D7582FA300375E"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a qualified energy
conservation bond, a purpose specified in section
54D(a)(1).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0A5B065D13A24F66AC007FA0E6508FA"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part
IV of subchapter A of chapter 1, as amended by this Act, is amended by adding
at the end the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HEE986F1AC7604181BD50AF0791DAE3FD" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H84E4FF4893D849EB890056C916790067" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry bold="off" idref="H85287BA9F6C54044A49405E9007B70A4" level="section">Sec. 54D. Qualified energy conservation
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEF36F5327CE0441A819EAB2FA5BEE7D4"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to obligations issued after the date of the enactment
of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE3FC351DFD65445383E7492946B7A155" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Credit for nonbusiness energy
property</header>
<subsection commented="no" display-inline="no-display-inline" id="H8A11E37B09064EA6A3A9DFBE1FB2D00"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of credit</header><text display-inline="yes-display-inline">Section 25C(g) is amended by striking
<quote>placed in service after December 31, 2007</quote> and inserting “placed
in service—</text>
<quoted-block act-name="" changed="added" id="id822E907D30744AA384A8498377C3F6E1" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="id3128F29A3F39462182CC823A71735ACF"><enum>(1)</enum><text>after December 31, 2007,
and before January 1, 2009, or</text>
</paragraph><paragraph commented="no" id="idAE8C6FD7BF9748529BBA0171D7DC2266"><enum>(2)</enum><text>after December 31,
2009.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA48B7A33C404418981E9DF3E65F032AE"><enum>(b)</enum><header display-inline="yes-display-inline">Qualified biomass fuel property</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6EC5366AA5E342A2B8D612BBBD81E2FB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 25C(d)(3) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAD5734D1B12C4EA19EC3AF00E23B3511"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the end
of subparagraph (D),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6BE1A6A5F86A4A8AB29F00ACFBFDB964"><enum>(B)</enum><text display-inline="yes-display-inline">by striking the period at the end of
subparagraph (E) and inserting <quote>, and</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0D834FE8F4E441618FFA118DC3B44847"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subparagraph:</text>
<quoted-block act-name="" changed="added" display-inline="no-display-inline" id="H1E70A43AA3E44243A63F0094D016C85D" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H70AFF7E5AE8E4B630035795F301D932B"><enum>(F)</enum><text display-inline="yes-display-inline">a stove which uses the burning of biomass
fuel to heat a dwelling unit located in the United States and used as a
residence by the taxpayer, or to heat water for use in such a dwelling unit,
and which has a thermal efficiency rating of at least 75
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7039DBEC3FBB4799B1B55F43151FE75E"><enum>(2)</enum><header display-inline="yes-display-inline">Biomass fuel</header><text display-inline="yes-display-inline">Section 25C(d) is amended by adding at the
end the following new paragraph:</text>
<quoted-block act-name="" changed="added" display-inline="no-display-inline" id="H37AD937145844C570037128DCC227E15" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H6A38CBDFD1C344C1A21D9378BD538D86"><enum>(6)</enum><header display-inline="yes-display-inline">Biomass fuel</header><text display-inline="yes-display-inline">The term <term>biomass fuel</term> means
any plant-derived fuel available on a renewable or recurring basis, including
agricultural crops and trees, wood and wood waste and residues (including wood
pellets), plants (including aquatic plants), grasses, residues, and
fibers.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id505640F41F2247DC9F7E80BE61E1EE63"><enum>(c)</enum><header display-inline="yes-display-inline">Modification of water heater
requirements</header><text display-inline="yes-display-inline">Section
25C(d)(3)(E) is amended by inserting <quote>or a thermal efficiency of at least
90 percent</quote> after <quote>0.80</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H34D7444BA7E84220A2EA9740C1DA72BC"><enum>(d)</enum><header display-inline="yes-display-inline">Coordination with credit for qualified
geothermal heat pump property expenditures</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF873EA2C1AF64F7389A674376C5C1FDB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 25C(d), as amended
by subsections (b) and (c), is amended by striking subparagraph (C) and by
redesignating subparagraphs (D), (E), and (F) as subparagraphs (C), (D), and
(E), respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D43AF099E7F484189C1E4F35300A828"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subparagraph (C) of section 25C(d)(2) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5AC68A0B288248A0A312775464F28CF3" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H6F2B2DB86BDD473697D06DAB06D8436"><enum>(C)</enum><header display-inline="yes-display-inline">Requirements and standards for air
conditioners and heat pumps</header><text display-inline="yes-display-inline">The standards and requirements prescribed
by the Secretary under subparagraph (B) with respect to the energy efficiency
ratio (EER) for central air conditioners and electric heat pumps—</text>
<clause commented="no" display-inline="no-display-inline" id="HF0B9F7A5DD214304A446799D4BC7EAD5"><enum>(i)</enum><text display-inline="yes-display-inline">shall require measurements to be based on
published data which is tested by manufacturers at 95 degrees Fahrenheit,
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5608373826B04D779E48C2FA34FCA6B"><enum>(ii)</enum><text display-inline="yes-display-inline">may be based on the certified data of the
Air Conditioning and Refrigeration Institute that are prepared in partnership
with the Consortium for Energy
Efficiency.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD009D835B76B4483A75E0D7C2E6FA0FA"><enum>(e)</enum><header display-inline="yes-display-inline">Modification of qualified energy efficiency
improvements</header>
<paragraph commented="no" display-inline="no-display-inline" id="id29F7A278CD8044DC81E8F379D9A12145"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 25C(c) is amended
by inserting <quote>, or an asphalt roof with appropriate cooling
granules,</quote> before <quote>which meet the Energy Star program
requirements</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1E8EF059EF9240C69A0A7D45216F5025"><enum>(2)</enum><header display-inline="yes-display-inline">Building envelope component</header><text display-inline="yes-display-inline">Subparagraph (D) of section 25C(c)(2) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id145D76697CBC4C989E9EC1CF16A1A272"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>or asphalt roof</quote>
after <quote>metal roof</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF2E63964448E492885E0E6216A6B6776"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>or cooling
granules</quote> after <quote>pigmented coatings</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB3625A44EF9241FD86D2C6B74EF84DB1"><enum>(f)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="id822A6E5D479E4C01B6E9A0E8CDB570C2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the
amendments made this section shall apply to expenditures made after December
31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC48938BF5DC2434CB58A353F74A8CE3C"><enum>(2)</enum><header display-inline="yes-display-inline">Modification of qualified energy efficiency
improvements</header><text display-inline="yes-display-inline">The amendments
made by subsection (e) shall apply to property placed in service after the date
of the enactment of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA43A73ADCA924CBB8588CDE8E328B48F" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Energy efficient commercial buildings
deduction</header><text display-inline="no-display-inline">Subsection (h) of
section 179D is amended by striking <quote>December 31, 2008</quote> and
inserting <quote>December 31, 2013</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id6C41AE78358345AF860B65CD2E8FE95E" section-type="subsequent-section"><enum>304.</enum><header>New energy efficient
home credit</header><text display-inline="no-display-inline">Subsection (g) of
section 45L (relating to termination) is amended by striking <quote>December
31, 2008</quote> and inserting <quote>December 31, 2009</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="HC8E7F079ECF4414EAC1D586F39A3646C" section-type="subsequent-section"><enum>305.</enum><header display-inline="yes-display-inline">Modifications of energy efficient appliance
credit for appliances produced after 2007</header>
<subsection commented="no" display-inline="no-display-inline" id="H7A8530BA2257493283E8EDB77838BB1B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (b) of section 45M is amended to
read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HE05CD649346843E8BCCEDF8945A0C263" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HAF358754003E41C4B98691AE590F534"><enum>(b)</enum><header display-inline="yes-display-inline">Applicable amount</header><text display-inline="yes-display-inline">For purposes of subsection (a)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0236C851612943AF8CDD530072D8F6F5"><enum>(1)</enum><header display-inline="yes-display-inline">Dishwashers</header><text display-inline="yes-display-inline">The applicable amount is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H04D9C6591D23423D901BCF0074BD8C00"><enum>(A)</enum><text display-inline="yes-display-inline">$45 in the case of a dishwasher which is
manufactured in calendar year 2008 or 2009 and which uses no more than 324
kilowatt hours per year and 5.8 gallons per cycle, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1D92D0F645F9485086DE56511E00F487"><enum>(B)</enum><text display-inline="yes-display-inline">$75 in the case of a dishwasher which is
manufactured in calendar year 2008, 2009, or 2010 and which uses no more than
307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle
for dishwashers designed for greater than 12 place settings).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H397C3360ADCA420D9EDCCB633E212933"><enum>(2)</enum><header display-inline="yes-display-inline">Clothes washers</header><text display-inline="yes-display-inline">The applicable amount is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0AD9890093EA4ADD9B1C243D6DF1B875"><enum>(A)</enum><text display-inline="yes-display-inline">$75 in the case of a residential
top-loading clothes washer manufactured in calendar year 2008 which meets or
exceeds a 1.72 modified energy factor and does not exceed a 8.0 water
consumption factor,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5BE2CF3901B84B8DAF225FBBC8B98B00"><enum>(B)</enum><text display-inline="yes-display-inline">$125 in the case of a residential
top-loading clothes washer manufactured in calendar year 2008 or 2009 which
meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water
consumption factor,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE3FD3B5C50B3480AAE1755F92200EB99"><enum>(C)</enum><text display-inline="yes-display-inline">$150 in the case of a residential or
commercial clothes washer manufactured in calendar year 2008, 2009, or 2010
which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0
water consumption factor, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE10CEB853A6E4C4590185EAF5D31A4D4"><enum>(D)</enum><text display-inline="yes-display-inline">$250 in the case of a residential or
commercial clothes washer manufactured in calendar year 2008, 2009, or 2010
which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5
water consumption factor.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H19A81C7DAF0243DF928567DBC3CA7594"><enum>(3)</enum><header display-inline="yes-display-inline">Refrigerators</header><text display-inline="yes-display-inline">The applicable amount is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1691B27D033A4909AAEFAB90C7EA77A3"><enum>(A)</enum><text display-inline="yes-display-inline">$50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at least 20 percent but not
more than 22.9 percent less kilowatt hours per year than the 2001 energy
conservation standards,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2513A6F0846644BEA0BF96C6F2C4C65C"><enum>(B)</enum><text display-inline="yes-display-inline">$75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and consumes at least 23 percent
but no more than 24.9 percent less kilowatt hours per year than the 2001 energy
conservation standards,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H15525DBA115546C9902BFE097E6B10A8"><enum>(C)</enum><text display-inline="yes-display-inline">$100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25
percent but not more than 29.9 percent less kilowatt hours per year than the
2001 energy conservation standards, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H5B8230A8B759407A8C691D8BADA1C527"><enum>(D)</enum><text display-inline="yes-display-inline">$200 in the case of a refrigerator
manufactured in calendar year 2008, 2009, or 2010 and which consumes at least
30 percent less energy than the 2001 energy conservation
standards.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF4C45125D54741849BF365DDAD85E6D"><enum>(b)</enum><header display-inline="yes-display-inline">Eligible production</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8F461CD0CFDF4363ADF7C94FDC1DBDE5"><enum>(1)</enum><header display-inline="yes-display-inline">Similar treatment for all
appliances</header><text display-inline="yes-display-inline">Subsection (c) of
section 45M is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H74DF31B6FEDD470895D127AF96E2AD2E"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (2),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA6149FE0C5684FE990688BFDD4CE10DF"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>(1)
<header-in-text level="paragraph" style="OLC">In
general</header-in-text></quote> and all that follows through <quote>the
eligible</quote> and inserting <quote>The eligible</quote>,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8924E7024B8C475CBC74D46C2797FDD0"><enum>(C)</enum><text display-inline="yes-display-inline">by moving the text of such subsection in
line with the subsection heading, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H61AE2584659A498BB02EAD003B922BEC"><enum>(D)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A) and (B)
as paragraphs (1) and (2), respectively, and by moving such paragraphs 2 ems to
the left.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA6385C08513848C4AA96C57FAA9FAB89"><enum>(2)</enum><header display-inline="yes-display-inline">Modification of base period</header><text display-inline="yes-display-inline">Paragraph (2) of section 45M(c), as amended
by paragraph (1), is amended by striking <quote>3-calendar year</quote> and
inserting <quote>2-calendar year</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H52748707465248D2B42396A7D6D24B65"><enum>(c)</enum><header display-inline="yes-display-inline">Types of energy efficient
appliances</header><text display-inline="yes-display-inline">Subsection (d) of
section 45M is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HB3B2ED0D48F74FED8000842040B3805D" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFEEC3BE3E33E465C94E25297E6A168A2"><enum>(d)</enum><header display-inline="yes-display-inline">Types of energy efficient
appliance</header><text display-inline="yes-display-inline">For purposes of
this section, the types of energy efficient appliances are—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H284D70819E604EAB92DF58A74E44C296"><enum>(1)</enum><text display-inline="yes-display-inline">dishwashers described in subsection
(b)(1),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD76B62456DC8413A856F2E0020EE5834"><enum>(2)</enum><text display-inline="yes-display-inline">clothes washers described in subsection
(b)(2), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD7DC761C243A43FCBFBE8578A9D31B42"><enum>(3)</enum><text display-inline="yes-display-inline">refrigerators described in subsection
(b)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF006590DBEF648AB847CD8916DECAD29"><enum>(d)</enum><header display-inline="yes-display-inline">Aggregate credit amount allowed</header>
<paragraph commented="no" display-inline="no-display-inline" id="H7E9EFD7128FE4C1EB655A4729DBE78A7"><enum>(1)</enum><header display-inline="yes-display-inline">Increase in limit</header><text display-inline="yes-display-inline">Paragraph (1) of section 45M(e) is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H181A2B4F4237435F98D02100751300D0" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H565933B1EF3648B4B396E57F8F336120"><enum>(1)</enum><header display-inline="yes-display-inline">Aggregate credit amount
allowed</header><text display-inline="yes-display-inline">The aggregate amount
of credit allowed under subsection (a) with respect to a taxpayer for any
taxable year shall not exceed $75,000,000 reduced by the amount of the credit
allowed under subsection (a) to the taxpayer (or any predecessor) for all prior
taxable years beginning after December 31,
2007.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H201C6B2BEC9D443497F11FD203780888"><enum>(2)</enum><header display-inline="yes-display-inline">Exception for certain refrigerator and
clothes washers</header><text display-inline="yes-display-inline">Paragraph (2)
of section 45M(e) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H74052D77A52D4F949C9EFCBB1E9413" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE0E7CAE264954D339F93C8BFE426DF63"><enum>(2)</enum><header display-inline="yes-display-inline">Amount allowed for certain refrigerators
and clothes washers</header><text display-inline="yes-display-inline">Refrigerators described in subsection
(b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be
taken into account under paragraph
(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCB74DB392EB044E28C8B4B006DB4E6F6"><enum>(e)</enum><header display-inline="yes-display-inline">Qualified energy efficient
appliances</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF10AE3EFDA814E379DB44F25F75313D2"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 45M(f) is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H68E5577F09C84FF692002FFE2029FEDF" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H40E71B2B4CAD4D3FB93E3FAEC9CDFE12"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified energy efficient
appliance</header><text display-inline="yes-display-inline">The term
<term>qualified energy efficient appliance</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H12C9DF35EC7E42BEB5DAAF26D9370EB"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection
(b)(1),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H68BC2936A87C47999D00BEDA329CC266"><enum>(B)</enum><text display-inline="yes-display-inline">any clothes washer described in subsection
(b)(2), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H46D76803708A4E18BCA63FD4EBDB1D0"><enum>(C)</enum><text display-inline="yes-display-inline">any refrigerator described in subsection
(b)(3).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBB712A837DD044FFA37B4616E3C01910"><enum>(2)</enum><header display-inline="yes-display-inline">Clothes
washer</header><text display-inline="yes-display-inline">Section 45M(f)(3) is
amended by inserting <quote>commercial</quote> before
<quote>residential</quote> the second place it appears.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB775FF3417AC498A8B5D5DB046565F4F"><enum>(3)</enum><header display-inline="yes-display-inline">Top-loading clothes washer</header><text display-inline="yes-display-inline">Subsection (f) of section 45M is amended by
redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7),
and (8), respectively, and by inserting after paragraph (3) the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HBBCA6067CADD4A5A83288825AB879EF1" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H93C952DF05FC43D3A4D0ADB7F18DAA82"><enum>(4)</enum><header display-inline="yes-display-inline">Top-loading clothes washer</header><text display-inline="yes-display-inline">The term <quote>top-loading clothes
washer</quote> means a clothes washer which has the clothes container
compartment access located on the top of the machine and which operates on a
vertical
axis.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5A7E980EBEAD46A196B1EE4B7F77DFB7"><enum>(4)</enum><header display-inline="yes-display-inline">Replacement of energy factor</header><text display-inline="yes-display-inline">Section 45M(f)(6), as redesignated by
paragraph (3), is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA6C493D947414564ADC3F6138442AF87" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC66F71AFCA4747FEAFE907A212FF09A8"><enum>(6)</enum><header display-inline="yes-display-inline">Modified energy factor</header><text display-inline="yes-display-inline">The term <term>modified energy
factor</term> means the modified energy factor established by the Department of
Energy for compliance with the Federal energy conservation
standard.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H42F95F9489D04CE1961E13D4786BFEA5"><enum>(5)</enum><header display-inline="yes-display-inline">Gallons per cycle; water consumption
factor</header><text display-inline="yes-display-inline">Section 45M(f), as
amended by paragraph (3), is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H1290DE2F2ED747EA9D2199E4271C19D5" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H1A337CB4A80140E9A53E689B72EF2474"><enum>(9)</enum><header display-inline="yes-display-inline">Gallons per cycle</header><text display-inline="yes-display-inline">The term <term>gallons per cycle</term>
means, with respect to a dishwasher, the amount of water, expressed in gallons,
required to complete a normal cycle of a dishwasher.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC226D53CE29840E8A6B788E33F6BEA08"><enum>(10)</enum><header display-inline="yes-display-inline">Water consumption factor</header><text display-inline="yes-display-inline">The term <term>water consumption
factor</term> means, with respect to a clothes washer, the quotient of the
total weighted per-cycle water consumption divided by the cubic foot (or liter)
capacity of the clothes
washer.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H28EF5B729B9445A99194C40065BE9E96"><enum>(f)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to appliances produced after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id1ADD3785DAD040E3AF4C8618166E82DE" section-type="subsequent-section"><enum>306.</enum><header display-inline="yes-display-inline">Accelerated recovery period for
depreciation of smart meters and smart grid systems</header>
<subsection commented="no" display-inline="no-display-inline" id="id794C27E55BC844F09B57696CAE25F12A"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 168(e)(3)(D) is amended by striking
<quote>and</quote> at the end of clause (i), by striking the period at the end
of clause (ii) and inserting a comma, and by inserting after clause (ii) the
following new clauses:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC716E2227B9D4B37B50E3201335D6132" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idD43C82C24E3B4FAB9D655FCB36017A80"><enum>(iii)</enum><text display-inline="yes-display-inline">any qualified smart electric meter,
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id0BBFB3A8C0AE461C9FDF0F446CEF41EA"><enum>(iv)</enum><text display-inline="yes-display-inline">any qualified smart electric grid
system.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id62AA95AE49094B6F835C1EFABAF3933C"><enum>(b)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Section 168(i) is amended by inserting at
the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idCBD86FE6FE5446E79E034433A8046338" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idEB298167F1CB4AE799404FC6F0D50D0C"><enum>(18)</enum><header display-inline="yes-display-inline">Qualified smart electric meters</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id9BFD7C1E95004971ACF68476D819A42C"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified smart electric
meter</term> means any smart electric meter which—</text>
<clause commented="no" display-inline="no-display-inline" id="idB78FF866DD844BD498B2E1F45E1E24AB"><enum>(i)</enum><text display-inline="yes-display-inline">is placed in service by a taxpayer who is a
supplier of electric energy or a provider of electric energy services,
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id09A5D07B6B92494B9B0E6EFF6633D3FC"><enum>(ii)</enum><text>does not have a class
life (determined without regard to subsection (e)) of less than 10
years.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4AFF1EB7EA3E4BF8A87E1D31EEC80F5A"><enum>(B)</enum><header display-inline="yes-display-inline">Smart electric meter</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term
<term>smart electric meter</term> means any time-based meter and related
communication equipment which is capable of being used by the taxpayer as part
of a system that—</text>
<clause commented="no" display-inline="no-display-inline" id="id5796306B35084FAD8F4F35262E9DABCE"><enum>(i)</enum><text display-inline="yes-display-inline">measures and records electricity usage data
on a time-differentiated basis in at least 24 separate time segments per
day,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id263BB39ADC5B4E9BA7594E37943B861D"><enum>(ii)</enum><text display-inline="yes-display-inline">provides for the exchange of information
between supplier or provider and the customer’s electric meter in support of
time-based rates or other forms of demand response,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7ACEAD3AEE35484BA9031EC1E150A339"><enum>(iii)</enum><text display-inline="yes-display-inline">provides data to such supplier or provider
so that the supplier or provider can provide energy usage information to
customers electronically, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idE75E87B87CFE41AE9536CB7A2FC97CD4"><enum>(iv)</enum><text display-inline="yes-display-inline">provides net metering.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id69738C9F82234EDD96F468DE278DDCFF"><enum>(19)</enum><header display-inline="yes-display-inline">Qualified smart electric grid
systems</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idE0F2446CC9674F43A059AA585E8AA0EB"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <quote>qualified smart electric
grid system</quote> means any smart grid property which—</text>
<clause commented="no" display-inline="no-display-inline" id="id0C0F2823B4CE47D792B4C95931C2660C"><enum>(i)</enum><text display-inline="yes-display-inline">is used as part of a system for electric
distribution grid communications, monitoring, and management placed in service
by a taxpayer who is a supplier of electric energy or a provider of electric
energy services, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id764188EDD39A493D9693A799CC240F20"><enum>(ii)</enum><text>does not have a class
life (determined without regard to subsection (e)) of less than 10
years.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3BCF24321F8B4574B0B130C2B7F6C87B"><enum>(B)</enum><header display-inline="yes-display-inline">Smart grid property</header><text display-inline="yes-display-inline">For the purposes of subparagraph (A), the
term <quote>smart grid property</quote> means electronics and related equipment
that is capable of—</text>
<clause commented="no" display-inline="no-display-inline" id="id7BB6C5F09E6F4086BCBB3D6FBB8B8338"><enum>(i)</enum><text display-inline="yes-display-inline">sensing, collecting, and monitoring data of
or from all portions of a utility’s electric distribution grid,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id6B7BEFAAE2E747B19658B737B92EFB5F"><enum>(ii)</enum><text display-inline="yes-display-inline">providing real-time, two-way communications
to monitor or manage such grid, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC0CC257A5FBA464098D42EB88503F214"><enum>(iii)</enum><text display-inline="yes-display-inline">providing real time analysis of and event
prediction based upon collected data that can be used to improve electric
distribution system reliability, quality, and
performance.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDCF931ED7D794409AB5A6412D82AB557"><enum>(c)</enum><header display-inline="yes-display-inline">Continued application of 150 percent
declining balance method</header><text display-inline="yes-display-inline">Paragraph (2) of section 168(b) is amended
by striking <quote>or</quote> at the end of subparagraph (B), by redesignating
subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B)
the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id260A6E17E64D4FEF887B0E90D1B93CE4" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id6CC1BC8A55204E598FFB564785BF06C8"><enum>(C)</enum><text display-inline="yes-display-inline">any property (other than property described
in paragraph (3)) which is a qualified smart electric meter or qualified smart
electric grid system,
or</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id803AC2C437984A9F9AF47C1C81CB877D"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to property placed in service after the date of the
enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HC8238A1A7B2446C8A6CF242C9A6BC6" section-type="subsequent-section"><enum>307.</enum><header display-inline="yes-display-inline">Qualified green building and sustainable
design projects</header>
<subsection commented="no" display-inline="no-display-inline" id="H302C3724BA57428785F2432DBEB028B7"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (8) of section 142(l) is amended
by striking <quote>September 30, 2009</quote> and inserting <quote>September
30, 2012</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3E9D484C61AA45CF9754C1AA44622738"><enum>(b)</enum><header display-inline="yes-display-inline">Treatment of current refunding
bonds</header><text display-inline="yes-display-inline">Paragraph (9) of
section 142(l) is amended by striking <quote>October 1, 2009</quote> and
inserting <quote>October 1, 2012</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEEEEA6FA3C794A39B43E72E5655631D0"><enum>(c)</enum><header display-inline="yes-display-inline">Accountability</header><text display-inline="yes-display-inline">The second sentence of section 701(d) of
the American Jobs Creation Act of 2004 is amended by striking
<quote>issuance,</quote> and inserting <quote>issuance of the last issue with
respect to such project,</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idF3479AB6EA3E44BD8E7151EB34A140CC" section-type="subsequent-section"><enum>308.</enum><header display-inline="yes-display-inline">Special depreciation allowance for certain
reuse and recycling property</header>
<subsection commented="no" display-inline="no-display-inline" id="idF7D6D5B951074AE08DB8831B3D742E32"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 168 is amended by adding at the end
the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8C575933D8EB40348946A3CC824F673E" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id7A62B63F438749A2BA895562BF4B49E3"><enum>(m)</enum><header display-inline="yes-display-inline">Special allowance for certain reuse and
recycling property</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6818494AB5B543E5866BFF95400C48B1"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any qualified reuse and
recycling property—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDebfeb1f3013a41c28b2b11cd73da9b5a"><enum>(A)</enum><text display-inline="yes-display-inline">the depreciation deduction provided by
section 167(a) for the taxable year in which such property is placed in service
shall include an allowance equal to 50 percent of the adjusted basis of the
qualified reuse and recycling property, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID56f60bc55b2a4660adc365c2febf7496"><enum>(B)</enum><text display-inline="yes-display-inline">the adjusted basis of the qualified reuse
and recycling property shall be reduced by the amount of such deduction before
computing the amount otherwise allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDF6797A28F6C4FA8A843456EDEC9D211"><enum>(2)</enum><header display-inline="yes-display-inline">Qualified reuse and recycling
property</header><text display-inline="yes-display-inline">For purposes of this
subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4EADE30E83814EE7BA322D20AD69ABB0"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified reuse and
recycling property</term> means any reuse and recycling property—</text>
<clause commented="no" display-inline="no-display-inline" id="idF93E0650370A4BD9BF875C5B58CD247B"><enum>(i)</enum><text display-inline="yes-display-inline">to which this section applies,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID5391779aaae243b4acf2ae687b82fbda"><enum>(ii)</enum><text display-inline="yes-display-inline">which has a useful life of at least 5
years,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDda0eaef30a284765b089190ac458a070"><enum>(iii)</enum><text display-inline="yes-display-inline">the original use of which commences with
the taxpayer after August 31, 2008, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID40ebd392cc814dd08dabdfdc8bc3ed45"><enum>(iv)</enum><text display-inline="yes-display-inline">which is—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID0ef93fa1478c4637b4dcef16dc2634b1"><enum>(I)</enum><text display-inline="yes-display-inline">acquired by purchase (as defined in section
179(d)(2)) by the taxpayer after August 31, 2008, but only if no written
binding contract for the acquisition was in effect before September 1, 2008,
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id7595E89602FA411C802635C02EEDB9AE"><enum>(II)</enum><text display-inline="yes-display-inline">acquired by the taxpayer pursuant to a
written binding contract which was entered into after August 31, 2008.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1173a87bc1ed42b6a66279c68f303b2b"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header>
<clause commented="no" display-inline="no-display-inline" id="id63D1779C60D84A569A69B6097B895D8A"><enum>(i)</enum><header display-inline="yes-display-inline">Bonus depreciation property under
subsection <enum-in-header>(k)</enum-in-header></header><text display-inline="yes-display-inline">The term <term>qualified reuse and
recycling property</term> shall not include any property to which section
168(k) applies.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID0221bdddcd4b455b9a9f7071ff73b68c"><enum>(ii)</enum><header display-inline="yes-display-inline">Alternative depreciation
property</header><text display-inline="yes-display-inline">The term
<term>qualified reuse and recycling property</term> shall not include any
property to which the alternative depreciation system under subsection (g)
applies, determined without regard to paragraph (7) of subsection (g) (relating
to election to have system apply).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDce6463c92f144356866513a8a67cd5f1"><enum>(iii)</enum><header display-inline="yes-display-inline">Election out</header><text display-inline="yes-display-inline">If a taxpayer makes an election under this
clause with respect to any class of property for any taxable year, this
subsection shall not apply to all property in such class placed in service
during such taxable year.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1bcb667b9e8d49a3a19f3528891eaf6e"><enum>(C)</enum><header display-inline="yes-display-inline">Special rule for self-constructed
property</header><text display-inline="yes-display-inline">In the case of a
taxpayer manufacturing, constructing, or producing property for the taxpayer's
own use, the requirements of clause (iv) of subparagraph (A) shall be treated
as met if the taxpayer begins manufacturing, constructing, or producing the
property after August 31, 2008.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1D6EDE6AC4054DEFB691B92B8B1F6BEF"><enum>(D)</enum><header display-inline="yes-display-inline">Deduction allowed in computing minimum
tax</header><text display-inline="yes-display-inline">For purposes of
determining alternative minimum taxable income under section 55, the deduction
under subsection (a) for qualified reuse and recycling property shall be
determined under this section without regard to any adjustment under section
56.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDBF93567CEACA4EAD9DEDE6FC3F249C1A"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDF531F8FC3BA240F58A5FF87130619B3D"><enum>(A)</enum><header display-inline="yes-display-inline">Reuse and recycling property</header>
<clause commented="no" display-inline="no-display-inline" id="IDE89D7D768F7447BEBBA00CFAE5885E68"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>reuse and recycling
property</term> means any machinery and equipment (not including buildings or
real estate), along with all appurtenances thereto, including software
necessary to operate such equipment, which is used exclusively to collect,
distribute, or recycle qualified reuse and recyclable materials.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID4C68A858EA8B4D8DAB9A75AA2432FA9D"><enum>(ii)</enum><header display-inline="yes-display-inline">Exclusion</header><text display-inline="yes-display-inline">Such term does not include rolling stock or
other equipment used to transport reuse and recyclable materials.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0ED524305ECE4C82B0166986836F1E9A"><enum>(B)</enum><header display-inline="yes-display-inline">Qualified reuse and recyclable
materials</header>
<clause commented="no" display-inline="no-display-inline" id="idF597491B2988489C87F700DF72AC48AE"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified reuse and
recyclable materials</term> means scrap plastic, scrap glass, scrap textiles,
scrap rubber, scrap packaging, recovered fiber, scrap ferrous and nonferrous
metals, or electronic scrap generated by an individual or business.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC421DB55E81C409CAF9B61A92E290A7C"><enum>(ii)</enum><header display-inline="yes-display-inline">Electronic scrap</header><text display-inline="yes-display-inline">For purposes of clause (i), the term
<term>electronic scrap</term> means—</text>
<subclause commented="no" display-inline="no-display-inline" id="id33259264CE494543831A1D51AF774FAB"><enum>(I)</enum><text display-inline="yes-display-inline">any cathode ray tube, flat panel screen, or
similar video display device with a screen size greater than 4 inches measured
diagonally, or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id1D22FD9E44ED4DC68818AD9E21E9D0A1"><enum>(II)</enum><text display-inline="yes-display-inline">any central processing unit.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDB6629853E9544648A5FE069E1FCA196E"><enum>(C)</enum><header display-inline="yes-display-inline">Recycling or recycle</header><text display-inline="yes-display-inline">The term <term>recycling</term> or
<term>recycle</term> means that process (including sorting) by which worn or
superfluous materials are manufactured or processed into specification grade
commodities that are suitable for use as a replacement or substitute for virgin
materials in manufacturing tangible consumer and commercial products, including
packaging.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id748A60323C5F446D8BF3F972FE34E35B"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to property placed in service after August 31,
2008.</text>
</subsection></section><enum>IV</enum><header>Revenue
provisions</header>
<section display-inline="no-display-inline" id="id6449AED100EA4FA7A55687D7ED19A6E8" section-type="subsequent-section"><enum>401.</enum><header>Limitation of
deduction for income attributable to domestic production of oil, gas, or
primary products thereof</header>
<subsection id="H4E561CE45B4645C8AEDE47F99134457C"><enum>(a)</enum><header>In
general</header><text>Section 199(d) is amended by
redesignating paragraph (9) as paragraph (10) and by inserting after paragraph
(8) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H050F5C7E6E4647F6A0ECB817A4005BA5" reported-display-style="italic" style="OLC">
<paragraph id="HF68FC4BD063C42B0A348A100221248A6"><enum>(9)</enum><header>Special rule for
taxpayers with oil related qualified production activities income</header>
<subparagraph id="H2BBAA5D9CA334EB38C00BC41A4FB048E"><enum>(A)</enum><header>In
general</header><text>If a taxpayer has oil related qualified production
activities income for any taxable year beginning after 2009, the amount
otherwise allowable as a deduction under subsection (a) shall be reduced by 3
percent of the least of—</text>
<clause id="H97DEEE12EF864D3186D8694CE84CBD05"><enum>(i)</enum><text>the oil related qualified
production activities income of the taxpayer for the taxable year,</text>
</clause><clause id="HDB722F89355E4FCE9094F308568C757E"><enum>(ii)</enum><text>the qualified production
activities income of the taxpayer for the taxable year, or</text>
</clause><clause id="HE4AEA9979EAC4F518FA600EC4EC9F2"><enum>(iii)</enum><text>taxable income
(determined without regard to this section).</text>
</clause></subparagraph><subparagraph id="HD8EBBBCE73DF4E5CBDFD5451C728C217"><enum>(B)</enum><header>Oil related qualified
production activities income</header><text>For purposes of this paragraph, the
term <term>oil related qualified production activities income</term> means for
any taxable year the qualified production activities income which is
attributable to the production, refining, processing, transportation, or
distribution of oil, gas, or any primary product thereof during such taxable
year.</text>
</subparagraph><subparagraph id="id5B1C6C24B57E47E49DFFF66F9D8D4B94"><enum>(C)</enum><header>Primary
product</header><text>For purposes of this paragraph, the term <term>primary
product</term> has the same meaning as when used in section 927(a)(2)(C), as in
effect before its
repeal.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H715A582F0AA64D3088002C9E778ECEAA"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 199(d)(2) (relating to application to
individuals) is amended by striking <quote>subsection (a)(1)(B)</quote> and
inserting <quote>subsections (a)(1)(B) and (d)(9)(A)(iii)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0F263FAC24A64E2EB8B2BA004C8173B9"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.</text>
</subsection></section><section id="id25BC41362D014B7481C1E3682DA10FC6"><enum>402.</enum><header>Elimination of the
different treatment of foreign oil and gas extraction income and foreign oil
related income for purposes of the foreign tax credit</header>
<subsection id="id0BF7EF596035441585F12D08CEDA49F6"><enum>(a)</enum><header>In
general</header><text>Subsections (a) and (b) of section 907 (relating to
special rules in case of foreign oil and gas income) are amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC39B4CD7BF95409A87757178A46CF741" reported-display-style="italic" style="OLC">
<subsection id="id68C6821D68CF4962A68A0A666748A193"><enum>(a)</enum><header>Reduction in amount
allowed as foreign tax under section 901</header><text>In applying section 901,
the amount of any foreign oil and gas taxes paid or accrued (or deemed to have
been paid) during the taxable year which would (but for this subsection) be
taken into account for purposes of section 901 shall be reduced by the amount
(if any) by which the amount of such taxes exceeds the product of—</text>
<paragraph id="id434BA32137B441F3BFCAB4EFBCE162B5"><enum>(1)</enum><text>the amount of the
combined foreign oil and gas income for the taxable year,</text>
</paragraph><paragraph id="id63B6F42311C74E52863697A488B3D68B"><enum>(2)</enum><text>multiplied by—</text>
<subparagraph id="id72E54638872147AC8DCC77F7372F3832"><enum>(A)</enum><text>in the case of a
corporation, the percentage which is equal to the highest rate of tax specified
under section 11(b), or</text>
</subparagraph><subparagraph id="id505DF4D773574DCF955038AFAB0F66A0"><enum>(B)</enum><text>in the case of an
individual, a fraction the numerator of which is the tax against which the
credit under section 901(a) is taken and the denominator of which is the
taxpayer's entire taxable income.</text>
</subparagraph></paragraph></subsection><subsection id="idEB31014446CD40F9AF09FD0E0CAFB244"><enum>(b)</enum><header>Combined foreign oil
and gas income; foreign oil and gas taxes</header><text>For purposes of this
section—</text>
<paragraph id="id3E990C3BECE14833B4E94C81BF380A1F"><enum>(1)</enum><header>Combined foreign oil
and gas income</header><text>The term <term>combined foreign oil and gas
income</term> means, with respect to any taxable year, the sum of—</text>
<subparagraph id="idDCBC163ACC4F4FF592DCFB8729B48E2C"><enum>(A)</enum><text>foreign oil and gas
extraction income, and</text>
</subparagraph><subparagraph id="id728EC917D2434567A758CF7BE3F3B345"><enum>(B)</enum><text>foreign oil related
income.</text>
</subparagraph></paragraph><paragraph id="idC1EADD8E4B944564957938B926AA4864"><enum>(2)</enum><header>Foreign oil and gas
taxes</header><text>The term <term>foreign oil and gas taxes</term> means, with
respect to any taxable year, the sum of—</text>
<subparagraph id="id2A175074B9354CEA8EF99C59D0437FAA"><enum>(A)</enum><text>oil and gas extraction
taxes, and</text>
</subparagraph><subparagraph id="idA0882A0DDA1F4B7FBD800B2EF0D9D8A2"><enum>(B)</enum><text>any income, war profits,
and excess profits taxes paid or accrued (or deemed to have been paid or
accrued under section 902 or 960) during the taxable year with respect to
foreign oil related income (determined without regard to subsection (c)(4)) or
loss which would be taken into account for purposes of section 901 without
regard to this
section.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id634FD5B3CD7A4C98A78C60FF919C05B4"><enum>(b)</enum><header>Recapture of foreign
oil and gas losses</header><text>Paragraph (4) of section 907(c) (relating to
recapture of foreign oil and gas extraction losses by recharacterizing later
extraction income) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id83C411031368404CACC28F18CAB996F3" reported-display-style="italic" style="OLC">
<paragraph id="id938D11B300FF46C6B3B30EFA2AB9D7A4"><enum>(4)</enum><header>Recapture of foreign
oil and gas losses by recharacterizing later combined foreign oil and gas
income</header>
<subparagraph id="id6D579DB32C7A4A8A9B5B9CF38672DF70"><enum>(A)</enum><header>In
general</header><text>The combined foreign oil and gas income of a taxpayer for
a taxable year (determined without regard to this paragraph) shall be
reduced—</text>
<clause id="idF996D7AE001540BB94BE03E96D91F2A1"><enum>(i)</enum><text>first by the amount
determined under subparagraph (B), and</text>
</clause><clause id="idCE82B398F7304D51994A4DF138024BF1"><enum>(ii)</enum><text>then by the amount
determined under subparagraph (C).</text>
</clause><continuation-text continuation-text-level="subparagraph">The aggregate amount of such reductions
shall be treated as income (from sources without the United States) which is
not combined foreign oil and gas income.</continuation-text></subparagraph><subparagraph id="id28E6BA6BD99B4C6BA8B05AA1AEA99490"><enum>(B)</enum><header>Reduction for pre-2009
foreign oil extraction losses</header><text>The reduction under this paragraph
shall be equal to the lesser of—</text>
<clause id="id6BE70B8D51FF486DAD15E03691157271"><enum>(i)</enum><text>the foreign oil and gas
extraction income of the taxpayer for the taxable year (determined without
regard to this paragraph), or</text>
</clause><clause id="id845A3F167E134B9A85D64358DF2FB4E3"><enum>(ii)</enum><text>the excess of—</text>
<subclause id="idC559644EAA064D5780D93A85ECB80186"><enum>(I)</enum><text>the aggregate amount of
foreign oil extraction losses for preceding taxable years beginning after
December 31, 1982, and before January 1, 2009, over</text>
</subclause><subclause id="id26D950ED312442608B5E0C6A0E51462A"><enum>(II)</enum><text>so much of such
aggregate amount as was recharacterized under this paragraph (as in effect
before and after the date of the enactment of the
<short-title>Energy Improvement and Extension Act of
2008</short-title>) for preceding taxable years beginning after December 31,
1982.</text>
</subclause></clause></subparagraph><subparagraph id="idDCE0BF564A26483BBC6C600E0D11EAA2"><enum>(C)</enum><header>Reduction for post-2008
foreign oil and gas losses</header><text>The reduction under this paragraph
shall be equal to the lesser of—</text>
<clause id="idA15EB1905C8941F191A4DF095FE8CC82"><enum>(i)</enum><text>the combined foreign oil
and gas income of the taxpayer for the taxable year (determined without regard
to this paragraph), reduced by an amount equal to the reduction under
subparagraph (A) for the taxable year, or</text>
</clause><clause id="idD56B9FA6E2D84299AABF66C26EA7CDA5"><enum>(ii)</enum><text>the excess of—</text>
<subclause id="idF711D0C54A754642A619FB9DC25F3103"><enum>(I)</enum><text>the aggregate amount of
foreign oil and gas losses for preceding taxable years beginning after December
31, 2008, over</text>
</subclause><subclause id="id99B5D755FAF14DDDABE01E0423277ABE"><enum>(II)</enum><text>so much of such
aggregate amount as was recharacterized under this paragraph for preceding
taxable years beginning after December 31, 2008.</text>
</subclause></clause></subparagraph><subparagraph id="id53F2E7D468B849A396EC89B3C412C003"><enum>(D)</enum><header>Foreign oil and gas
loss defined</header>
<clause id="id89F919E737D440169CE3EB064E66B27C"><enum>(i)</enum><header>In
general</header><text>For purposes of this paragraph, the term <term>foreign
oil and gas loss</term> means the amount by which—</text>
<subclause id="id37F8A986865847D9BA4DFEB19F5D0BF5"><enum>(I)</enum><text>the gross income for the
taxable year from sources without the United States and its possessions
(whether or not the taxpayer chooses the benefits of this subpart for such
taxable year) taken into account in determining the combined foreign oil and
gas income for such year, is exceeded by</text>
</subclause><subclause id="idD89FAA489AB141B9A83EB8A3E967E7C0"><enum>(II)</enum><text>the sum of the
deductions properly apportioned or allocated thereto.</text>
</subclause></clause><clause id="idAD11666329B94DF7B927A100FD50D7C0"><enum>(ii)</enum><header>Net operating loss
deduction not taken into account</header><text>For purposes of clause (i), the
net operating loss deduction allowable for the taxable year under section
172(a) shall not be taken into account.</text>
</clause><clause id="idD239427337DE4E259DEF7B487AD59301"><enum>(iii)</enum><header>Expropriation and
casualty losses not taken into account</header><text>For purposes of clause
(i), there shall not be taken into account—</text>
<subclause id="id0FCD9F9D02F24829820ABB95E8847C7E"><enum>(I)</enum><text>any foreign expropriation
loss (as defined in section 172(h) (as in effect on the day before the date of
the enactment of the Revenue Reconciliation Act of 1990)) for the taxable year,
or</text>
</subclause><subclause id="idE3DF8E8ED09D42A4BB496D4F1479C8E1"><enum>(II)</enum><text>any loss for the taxable
year which arises from fire, storm, shipwreck, or other casualty, or from
theft,</text>
</subclause><continuation-text continuation-text-level="clause">to the extent such loss is not
compensated for by insurance or otherwise.</continuation-text></clause><clause id="id7CF61558086140E1BA2BAC1127C8BCAB"><enum>(iv)</enum><header>Foreign oil extraction
loss</header><text>For purposes of subparagraph (B)(ii)(I), foreign oil
extraction losses shall be determined under this paragraph as in effect on the
day before the date of the enactment of the <short-title>Energy Improvement and Extension Act of
2008</short-title>.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2D00930C641840FDA34D35FAA351AACF"><enum>(c)</enum><header>Carryback and carryover
of disallowed credits</header><text>Section 907(f) (relating to carryback and
carryover of disallowed credits) is amended—</text>
<paragraph id="id1DB1C5A992B64C869BDA0C9D2C715B8B"><enum>(1)</enum><text>by striking <quote>oil
and gas extraction taxes</quote> each place it appears and inserting
<quote>foreign oil and gas taxes</quote>, and</text>
</paragraph><paragraph id="id437B924FE05F419F8B7294DCB5411CC0"><enum>(2)</enum><text>by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7FA23453E20B41D1AB20F1F77C2EE0C5" reported-display-style="italic" style="OLC">
<paragraph id="id6F13ABF13ACE4174A4242E1F4126358E"><enum>(4)</enum><header>Transition rules for
pre-2009 and 2009 disallowed credits</header>
<subparagraph id="idE7116ABA58ED48F4B11D4289812446EB"><enum>(A)</enum><header>Pre-2009
credits</header><text>In the case of any unused credit year beginning before
January 1, 2009, this subsection shall be applied to any unused oil and gas
extraction taxes carried from such unused credit year to a year beginning after
December 31, 2008—</text>
<clause id="idF9D4E285366147AEBE9CDBF2A0CA9D02"><enum>(i)</enum><text>by substituting
<quote>oil and gas extraction taxes</quote> for <quote>foreign oil and gas
taxes</quote> each place it appears in paragraphs (1), (2), and (3), and</text>
</clause><clause id="idDBBE5CB5798F4CD6A1423EDDC0E613BA"><enum>(ii)</enum><text>by computing, for
purposes of paragraph (2)(A), the limitation under subparagraph (A) for the
year to which such taxes are carried by substituting <quote>foreign oil and gas
extraction income</quote> for <quote>foreign oil and gas income</quote> in
subsection (a).</text>
</clause></subparagraph><subparagraph id="id0320F4481F1040E4A40041867FF482A1"><enum>(B)</enum><header>2009
credits</header><text>In the case of any unused credit year beginning in 2009,
the amendments made to this subsection by the <short-title>Energy Improvement and Extension Act of 2008</short-title>
shall be treated as being in effect for any preceding year beginning before
January 1, 2009, solely for purposes of determining how much of the unused
foreign oil and gas taxes for such unused credit year may be deemed paid or
accrued in such preceding
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idDBFD7275C8334471814A80E2F4B68221"><enum>(d)</enum><header>Conforming
amendment</header><text>Section 6501(i) is amended by striking <quote>oil and
gas extraction taxes</quote> and inserting <quote>foreign oil and gas
taxes</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id171A7790DB8E45DD8222C63014338DB1"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header><text>The amendments
made by this section shall apply to taxable years beginning after December 31,
2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id241E4F196F24418AA0CA7B57D4E61DB3" section-type="subsequent-section"><enum>403.</enum><header display-inline="yes-display-inline">Broker reporting of customer’s basis in
securities transactions</header>
<subsection commented="no" display-inline="no-display-inline" id="idD3579F8672094B4A873DED57A1717471"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="idFE64B09EC4AD4996B966326A59DA5E1F"><enum>(1)</enum><header display-inline="yes-display-inline">Broker reporting for securities
transactions</header><text display-inline="yes-display-inline">Section 6045 is
amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id547BD929EEA44E74B42783FB3C2EA606" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id1B477D8936A04E158CB4C732426ECD46"><enum>(g)</enum><header display-inline="yes-display-inline">Additional information required in the case
of securities transactions, etc</header>
<paragraph commented="no" display-inline="no-display-inline" id="idC3B12CE17A6340FABD3B8779EF5B2051"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If a broker is otherwise required to make a
return under subsection (a) with respect to the gross proceeds of the sale of a
covered security, the broker shall include in such return the information
described in paragraph (2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBA762E8BDC4E43C2AC158B77CA6AA1FC"><enum>(2)</enum><header display-inline="yes-display-inline">Additional information required</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id4942DD8D41DF488AACFF0181F0C23EE7"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The information required under paragraph
(1) to be shown on a return with respect to a covered security of a customer
shall include the customer’s adjusted basis in such security and whether any
gain or loss with respect to such security is long-term or short-term (within
the meaning of section 1222).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC674E1F2188A4F2A82B7668E373A3F2B"><enum>(B)</enum><header display-inline="yes-display-inline">Determination of adjusted
basis</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A)—</text>
<clause commented="no" display-inline="no-display-inline" id="id946A65AC36C7458B9153DB7BE3830298"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The customer’s adjusted basis shall be
determined—</text>
<subclause commented="no" display-inline="no-display-inline" id="id4E2236001CEB4583A81A519E2FBC888E"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of any security (other than any
stock for which an average basis method is permissible under section 1012), in
accordance with the first-in first-out method unless the customer notifies the
broker by means of making an adequate identification of the stock sold or
transferred, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idB6B9285D6B3F43F8976E7DB8857F0725"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of any stock for which an
average basis method is permissible under section 1012, in accordance with the
broker’s default method unless the customer notifies the broker that he elects
another acceptable method under section 1012 with respect to the account in
which such stock is held.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id6DE1C7E3722A41D1B80E8D57FFEAF519"><enum>(ii)</enum><header display-inline="yes-display-inline">Exception for wash sales</header><text display-inline="yes-display-inline">Except as otherwise provided by the
Secretary, the customer’s adjusted basis shall be determined without regard to
section 1091 (relating to loss from wash sales of stock or securities) unless
the transactions occur in the same account with respect to identical
securities.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9A0F7C3A01024178985580FAC9BB7B7B"><enum>(3)</enum><header display-inline="yes-display-inline">Covered security</header><text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idA0B6DEB7103A485297F369B888CB5307"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>covered security</term>
means any specified security acquired on or after the applicable date if such
security—</text>
<clause commented="no" display-inline="no-display-inline" id="idBD9653FD42534436886A22C0E62F070F"><enum>(i)</enum><text display-inline="yes-display-inline">was acquired through a transaction in the
account in which such security is held, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id3F59874FC44E40CA83807C9FE9BEDC3D"><enum>(ii)</enum><text display-inline="yes-display-inline">was transferred to such account from an
account in which such security was a covered security, but only if the broker
received a statement under section 6045A with respect to the transfer.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id093F791239404529977034974A7077E1"><enum>(B)</enum><header display-inline="yes-display-inline">Specified security</header><text display-inline="yes-display-inline">The term <term>specified security</term>
means—</text>
<clause commented="no" display-inline="no-display-inline" id="idBB37E7FE3258481FA090CFA83C8A51D6"><enum>(i)</enum><text display-inline="yes-display-inline">any share of stock in a corporation,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id341A6EEB14924F5F95F739C8A7E1EAC1"><enum>(ii)</enum><text display-inline="yes-display-inline">any note, bond, debenture, or other
evidence of indebtedness,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idF657F3B164C8491CB387B1829F14B7A0"><enum>(iii)</enum><text display-inline="yes-display-inline">any commodity, or contract or derivative
with respect to such commodity, if the Secretary determines that adjusted basis
reporting is appropriate for purposes of this subsection, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idEBA3661C86E2423BBDAEEADC1A9AFD92"><enum>(iv)</enum><text display-inline="yes-display-inline">any other financial instrument with respect
to which the Secretary determines that adjusted basis reporting is appropriate
for purposes of this subsection.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98031B5863024D6D9C52862D6ABA6CBB"><enum>(C)</enum><header display-inline="yes-display-inline">Applicable date</header><text display-inline="yes-display-inline">The term <term>applicable date</term>
means—</text>
<clause commented="no" display-inline="no-display-inline" id="id77ED729101134EEBA187BC5F37726387"><enum>(i)</enum><text display-inline="yes-display-inline">January 1, 2011, in the case of any
specified security which is stock in a corporation (other than any stock
described in clause (ii)),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id24C77A3C9A4B4F9280D33AF0106A9473"><enum>(ii)</enum><text display-inline="yes-display-inline">January 1, 2012, in the case of any stock
for which an average basis method is permissible under section 1012, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC9CA80DE30E748D0A7C6FE3542F051D3"><enum>(iii)</enum><text display-inline="yes-display-inline">January 1, 2013, or such later date
determined by the Secretary in the case of any other specified security.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB2D9FB320F984CA597D85F6C604CAFDF"><enum>(4)</enum><header display-inline="yes-display-inline">Treatment of S corporations</header><text display-inline="yes-display-inline">In the case of the sale of a covered
security acquired by an S corporation (other than a financial institution)
after December 31, 2011, such S corporation shall be treated in the same manner
as a partnership for purposes of this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3BE70CC950B347D7B9DAE7821E648EB8"><enum>(5)</enum><header display-inline="yes-display-inline">Special rules for short sales</header><text display-inline="yes-display-inline">In the case of a short sale, reporting
under this section shall be made for the year in which such sale is
closed.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA98D8FBC8C4A4EC1B618F7FB8BD3970D"><enum>(2)</enum><header display-inline="yes-display-inline">Broker information required with respect to
options</header><text display-inline="yes-display-inline">Section 6045, as
amended by subsection (a), is amended by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD7C5BE507D8C4335B426B26966371BD6" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idC633326569E74BA1BA4057DCA8E206A1"><enum>(h)</enum><header display-inline="yes-display-inline">Application to options on
securities</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7EA317DB914B43C6BDB17518F3B5A09E"><enum>(1)</enum><header display-inline="yes-display-inline">Exercise of option</header><text display-inline="yes-display-inline">For purposes of this section, if a covered
security is acquired or disposed of pursuant to the exercise of an option that
was granted or acquired in the same account as the covered security, the amount
received with respect to the grant or paid with respect to the acquisition of
such option shall be treated as an adjustment to gross proceeds or as an
adjustment to basis, as the case may be.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBB539BC8F35C4FC48951EB3B18555580"><enum>(2)</enum><header display-inline="yes-display-inline">Lapse or closing transaction</header><text display-inline="yes-display-inline">In the case of the lapse (or closing
transaction (as defined in section 1234(b)(2)(A))) of an option on a specified
security or the exercise of a cash-settled option on a specified security,
reporting under subsections (a) and (g) with respect to such option shall be
made for the calendar year which includes the date of such lapse, closing
transaction, or exercise.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8E61C37737B540C3921283590BA5278F"><enum>(3)</enum><header display-inline="yes-display-inline">Prospective application</header><text display-inline="yes-display-inline">Paragraphs (1) and (2) shall not apply to
any option which is granted or acquired before January 1, 2013.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2A56B9FD72C3419F8B037012A1646E8F"><enum>(4)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the terms
<term>covered security</term> and <term>specified security</term> shall have
the meanings given such terms in subsection
(g)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4FB54CF6CA5343C191682037B122836A"><enum>(3)</enum><header display-inline="yes-display-inline">Extension of period for statements sent to
customers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id0235B05D15AC435E9A9EA5832220B2E2"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (b) of section 6045 is amended
by striking <quote>January 31</quote> and inserting <quote>February
15</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id90CA5A2377DD468FA75835FCBC904EB9"><enum>(B)</enum><header display-inline="yes-display-inline">Statements related to substitute
payments</header><text display-inline="yes-display-inline">Subsection (d) of
section 6045 is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="id3A58EA23988C4C6A9099F915919C5208"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>at such time
and</quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7511DA95348548FAA8864980073BB245"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting after <quote>other
item.</quote> the following new sentence: <quote>The written statement required
under the preceding sentence shall be furnished on or before February 15 of the
year following the calendar year in which the payment was made.</quote>.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAD7CF991EF3C41228B105E51269A4389"><enum>(C)</enum><header display-inline="yes-display-inline">Other statements</header><text display-inline="yes-display-inline">Subsection (b) of section 6045 is amended
by adding at the end the following: <quote>In the case of a consolidated
reporting statement (as defined in regulations) with respect to any customer,
any statement which would otherwise be required to be furnished on or before
January 31 of a calendar year with respect to any item reportable to the
taxpayer shall instead be required to be furnished on or before February 15 of
such calendar year if furnished with such consolidated reporting
statement.</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id537DB928B49E40F0B59C46F274A8B36B"><enum>(b)</enum><header display-inline="yes-display-inline">Determination of basis of certain
securities on account by account or average basis method</header><text display-inline="yes-display-inline">Section 1012 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id5197949F4EBC4C00953C952C4B651A8D"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>The basis of
property</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC3D39791CC47491792BC97F833C8035F" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id972EE0C88B354BB39DAED64B863D70C8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The basis of
property</text>
</subsection><after-quoted-block>,</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2D3BD447358A4F66BBDBB15DF169F98B"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>The cost of real
property</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id280EDF632CDB46D59496E10FDD61AEF5" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id9D1E6690E9A842BEB9A630169A193F0B"><enum>(b)</enum><header display-inline="yes-display-inline">Special rule for apportioned real estate
taxes</header><text display-inline="yes-display-inline">The cost of real
property</text>
</subsection><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA083B04C7496420B87024265A69A6BC8"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subsections:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id47E4336897644A36AFEF802F075BDF41" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idF6323B4D4C704A388EEC479EA228528B"><enum>(c)</enum><header display-inline="yes-display-inline">Determinations by account</header>
<paragraph commented="no" display-inline="no-display-inline" id="id25FCE87CF250440B8D56C9B080BA8D0C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of the sale, exchange, or other
disposition of a specified security on or after the applicable date, the
conventions prescribed by regulations under this section shall be applied on an
account by account basis.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA657DE83BBB34B759692BA8B3ADCB158"><enum>(2)</enum><header display-inline="yes-display-inline">Application to certain funds</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id9D1792F80A9F4564AECA85D7681DA493"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), any
stock for which an average basis method is permissible under section 1012 which
is acquired before January 1, 2012, shall be treated as a separate account from
any such stock acquired on or after such date.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9860AA42781D4F5AB8CCD6925111A3ED"><enum>(B)</enum><header display-inline="yes-display-inline">Election fund for treatment as single
account</header><text display-inline="yes-display-inline">If a fund described
in subparagraph (A) elects to have this subparagraph apply with respect to one
or more of its stockholders—</text>
<clause commented="no" display-inline="no-display-inline" id="idB530D53812ED42F19DEDF315D16F0B0A"><enum>(i)</enum><text display-inline="yes-display-inline">subparagraph (A) shall not apply with
respect to any stock in such fund held by such stockholders, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id213DFA15F513488E9958D7DBB029D363"><enum>(ii)</enum><text display-inline="yes-display-inline">all stock in such fund which is held by
such stockholders shall be treated as covered securities described in section
6045(g)(3) without regard to the date of the acquisition of such stock.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">A
rule similar to the rule of the preceding sentence shall apply with respect to
a broker holding such stock as a nominee.</continuation-text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id69E15177B1FE459ABC62EE13E192C617"><enum>(3)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the terms
<term>specified security</term> and <term>applicable date</term> shall have the
meaning given such terms in section 6045(g).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4A1DF755307544439A41D3A06D2041DF"><enum>(d)</enum><header display-inline="yes-display-inline">Average basis for stock acquired pursuant
to a dividend reinvestment plan</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6E19A53AE19F4B848F8403392AC6AE22"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any stock acquired after
December 31, 2010, in connection with a dividend reinvestment plan, the basis
of such stock while held as part of such plan shall be determined using one of
the methods which may be used for determining the basis of stock in an open-end
fund.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id267C6CF3D6644E4FA4AB66EB2C0C9C0D"><enum>(2)</enum><header display-inline="yes-display-inline">Treatment after transfer</header><text display-inline="yes-display-inline">In the case of the transfer to another
account of stock to which paragraph (1) applies, such stock shall have a cost
basis in such other account equal to its basis in the dividend reinvestment
plan immediately before such transfer (properly adjusted for any fees or other
charges taken into account in connection with such transfer).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6E5975E7F1D2462494C2D9AA8A425920"><enum>(3)</enum><header display-inline="yes-display-inline">Separate accounts; election for treatment
as single account</header><text display-inline="yes-display-inline">Rules
similar to the rules of subsection (c)(2) shall apply for purposes of this
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA1BB61B3B03B4524B53097BF38648E22"><enum>(4)</enum><header display-inline="yes-display-inline">Dividend reinvestment plan</header><text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD69D44DB1FF4480DBB25693C3CFB60E1"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>dividend reinvestment
plan</term> means any arrangement under which dividends on any stock are
reinvested in stock identical to the stock with respect to which the dividends
are paid.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id73EFA01E8E544DC4ADC3CB3CB4EE5735"><enum>(B)</enum><header display-inline="yes-display-inline">Initial stock acquisition treated as
acquired in connection with plan</header><text display-inline="yes-display-inline">Stock shall be treated as acquired in
connection with a dividend reinvestment plan if such stock is acquired pursuant
to such plan or if the dividends paid on such stock are subject to such
plan.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id34AE3F158754416680186978E8040D57"><enum>(c)</enum><header display-inline="yes-display-inline">Information by transferors To aid
brokers</header>
<paragraph commented="no" display-inline="no-display-inline" id="idC20721FEC998458BA97B0FBACD670E24"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6045 the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB7346BCCCF4745108BAFE9B37D11D796" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id494A4973670D42299D0915FA12C2132E" section-type="subsequent-section"><enum>6045A.</enum><header display-inline="yes-display-inline">Information required in connection with
transfers of covered securities to brokers</header>
<subsection commented="no" display-inline="no-display-inline" id="id3A37972B2EDB4DF9B6EFBB08EEA02246"><enum>(a)</enum><header display-inline="yes-display-inline">Furnishing of information</header><text display-inline="yes-display-inline">Every applicable person which transfers to
a broker (as defined in section 6045(c)(1)) a security which is a covered
security (as defined in section 6045(g)(3)) in the hands of such applicable
person shall furnish to such broker a written statement in such manner and
setting forth such information as the Secretary may by regulations prescribe
for purposes of enabling such broker to meet the requirements of section
6045(g).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idBCAE92716AC941329C43F3229FCE5567"><enum>(b)</enum><header display-inline="yes-display-inline">Applicable person</header><text display-inline="yes-display-inline">For purposes of subsection (a), the term
<term>applicable person</term> means—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id3BA09FFC547C455D9427F1F26F0F97F6"><enum>(1)</enum><text display-inline="yes-display-inline">any broker (as defined in section
6045(c)(1)), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id464063B2FB2147A88BE9DC900CD7D752"><enum>(2)</enum><text display-inline="yes-display-inline">any other person as provided by the
Secretary in regulations.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE99CD05900E544049DA1250B445CFC75"><enum>(c)</enum><header display-inline="yes-display-inline">Time for furnishing statement</header><text display-inline="yes-display-inline">Except as otherwise provided by the
Secretary, any statement required by subsection (a) shall be furnished not
later than 15 days after the date of the transfer described in such
subsection.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9BF0CF7C32A7450B94262FACC2A86DD2"><enum>(2)</enum><header display-inline="yes-display-inline">Assessable penalties</header><text display-inline="yes-display-inline">Paragraph (2) of section 6724(d), as
amended by the Housing Assistance Tax Act of 2008, is amended by redesignating
subparagraphs (I) through (DD) as subparagraphs (J) through (EE), respectively,
and by inserting after subparagraph (H) the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idEFE25F141442415FB2BBBBA29A22A4E7" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idA2299EE0AD254EE4A5317A02DCBE9BD4"><enum>(I)</enum><text display-inline="yes-display-inline">section 6045A (relating to information
required in connection with transfers of covered securities to
brokers),</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6389242E73E64180A76E1772DDE7A42F"><enum>(3)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart B of part
III of subchapter A of chapter 61 is amended by inserting after the item
relating to section 6045 the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9F7D3B0A06414E00B4E934202B355371" reported-display-style="italic" style="OLC">
<toc changed="added" regeneration="no-regeneration" reported-display-style="italic">
<toc-entry bold="off" level="section">Sec. 6045A. Information required in connection
with transfers of covered securities to
brokers.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id74CDCA8664264E4FA105FAF121A9667B"><enum>(d)</enum><header display-inline="yes-display-inline">Additional issuer information To aid
brokers</header>
<paragraph commented="no" display-inline="no-display-inline" id="id9AD5F4736EAA41C88754786ABBF72342"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart B of part III of subchapter A of
chapter 61, as amended by subsection (b), is amended by inserting after section
6045A the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF223B4ABC7CD465085310F5A594E29C2" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id0C2277AF3C514502B9931BBE136ED56D" section-type="subsequent-section"><enum>6045B.</enum><header display-inline="yes-display-inline">Returns relating to actions affecting basis
of specified securities</header>
<subsection commented="no" display-inline="no-display-inline" id="idB7D4EBBF698A405D8A9D257997BB0967"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">According to the forms or regulations
prescribed by the Secretary, any issuer of a specified security shall make a
return setting forth—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id652CD76ABE2B46D19DCA5FA621A244C9"><enum>(1)</enum><text display-inline="yes-display-inline">a description of any organizational action
which affects the basis of such specified security of such issuer,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD1647AA6B6724DF594D9F3B955BD4E17"><enum>(2)</enum><text display-inline="yes-display-inline">the quantitative effect on the basis of
such specified security resulting from such action, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD1D6D782D51848DD8F6C2FED23304628"><enum>(3)</enum><text display-inline="yes-display-inline">such other information as the Secretary may
prescribe.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC4172A1BBBFF4904ADE169C75AB28E00"><enum>(b)</enum><header display-inline="yes-display-inline">Time for filing return</header><text display-inline="yes-display-inline">Any return required by subsection (a) shall
be filed not later than the earlier of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idCC6282CB967146A688CCA9E3064B0E95"><enum>(1)</enum><text display-inline="yes-display-inline">45 days after the date of the action
described in subsection (a), or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id89E1FC11DA4744519E3A633604D7353A"><enum>(2)</enum><text display-inline="yes-display-inline">January 15 of the year following the
calendar year during which such action occurred.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id14C75FCE0A984598A4C21E65E1118C2F"><enum>(c)</enum><header display-inline="yes-display-inline">Statements To be furnished to holders of
specified securities or their nominees</header><text display-inline="yes-display-inline">According to the forms or regulations
prescribed by the Secretary, every person required to make a return under
subsection (a) with respect to a specified security shall furnish to the
nominee with respect to the specified security (or certificate holder if there
is no nominee) a written statement showing—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id098294D1B0544F3FAD943ADA925EB8B5"><enum>(1)</enum><text display-inline="yes-display-inline">the name, address, and phone number of the
information contact of the person required to make such return,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA659EFAE9B3544F8B42487B6D30EFAFD"><enum>(2)</enum><text display-inline="yes-display-inline">the information required to be shown on
such return with respect to such security, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB3088DED75454483B991D7009AE78C13"><enum>(3)</enum><text display-inline="yes-display-inline">such other information as the Secretary may
prescribe.</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">The
written statement required under the preceding sentence shall be furnished to
the holder on or before January 15 of the year following the calendar year
during which the action described in subsection (a) occurred.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="idF31A98169D904CF5B99EFFA170E18868"><enum>(d)</enum><header display-inline="yes-display-inline">Specified security</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>specified security</term> has the meaning given such term by section
6045(g)(3)(B). No return shall be required under this section with respect to
actions described in subsection (a) with respect to a specified security which
occur before the applicable date (as defined in section 6045(g)(3)(C)) with
respect to such security.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id7FDCB440B48E467990A8CC7BEBBDF013"><enum>(e)</enum><header display-inline="yes-display-inline">Public reporting in lieu of
return</header><text display-inline="yes-display-inline">The Secretary may
waive the requirements under subsections (a) and (c) with respect to a
specified security, if the person required to make the return under subsection
(a) makes publicly available, in such form and manner as the Secretary
determines necessary to carry out the purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idDB9E88E51B4348A1A00D64A97D2A6919"><enum>(1)</enum><text display-inline="yes-display-inline">the name, address, phone number, and email
address of the information contact of such person, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3F0572F8A8D6468BB7C13F2ECD1FC807"><enum>(2)</enum><text display-inline="yes-display-inline">the information described in paragraphs
(1), (2), and (3) of subsection
(a).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id07B28C227D3144A78B52B0A800A59FF9"><enum>(2)</enum><header display-inline="yes-display-inline">Assessable penalties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id5C2DF9255B4C41FAB690B9B72668985F"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (B) of section 6724(d)(1), as
amended by the Housing Assistance Tax Act of 2008, is amended by redesignating
clause (iv) and each of the clauses which follow as clauses (v) through
(xxiii), respectively, and by inserting after clause (iii) the following new
clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idFE2B71B994734E249A56386C53ECFCB1" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idDCF11C6360EC4AA497B94D439906BCEB"><enum>(iv)</enum><text display-inline="yes-display-inline">section 6045B(a) (relating to returns
relating to actions affecting basis of specified
securities),</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id656AC575BDD64F2E8836520A41C1C760"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6724(d), as
amended by the Housing Assistance Tax Act of 2008 and by subsection (c)(2), is
amended by redesignating subparagraphs (J) through (EE) as subparagraphs (K)
through (FF), respectively, and by inserting after subparagraph (I) the
following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id98482434F6254660A47B6B5BD40F5821" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id7FF252D1EE1F4E9DAA3F83FAB62365FA"><enum>(J)</enum><text display-inline="yes-display-inline">subsections (c) and (e) of section 6045B
(relating to returns relating to actions affecting basis of specified
securities),</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF383386A0D8846A782AEFAFD9E4A4B1A"><enum>(3)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart B of part
III of subchapter A of chapter 61, as amended by subsection (b)(3), is amended
by inserting after the item relating to section 6045A the following new
item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE80B8FA1162742408286BBEDD5BEDDFF" reported-display-style="italic" style="OLC">
<toc changed="added" regeneration="no-regeneration" reported-display-style="italic">
<toc-entry bold="off" level="section">Sec. 6045B. Returns relating to actions
affecting basis of specified
securities.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCEF97A99C48343A5A9A1D79821744352"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1BEB73B95F414770A1833BC556FA8937"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this
subsection, the amendments made by this section shall take effect on January 1,
2011.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id005095EF4A0247B6A212978509AA34A2"><enum>(2)</enum><header display-inline="yes-display-inline">Extension of period for statements sent to
customers</header><text display-inline="yes-display-inline">The amendments made
by subsection (a)(3) shall apply to statements required to be furnished after
December 31, 2008.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idC1BC2E98F818449F9C9765E25D053DE7"><enum>404.</enum><header>0.2 percent FUTA
surtax</header>
<subsection commented="no" display-inline="no-display-inline" id="id09D3FEC3777C41238EB832A0B24A322B"><enum>(a)</enum><header>In
general</header><text>Section 3301 (relating to rate of tax) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idC149ABFB3BF34D348EC60B31D8ED3B5E"><enum>(1)</enum><text>by striking
<quote>through 2008</quote> in paragraph (1) and inserting <quote>through
2009</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4DB01954DC984A248025F4C972908069"><enum>(2)</enum><text>by striking
<quote>calendar year 2009</quote> in paragraph (2) and inserting
<quote>calendar year 2010</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5AAE16FC3BB74F1C86772D4351478FFF"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to wages
paid after December 31, 2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id17038F2BC56B469EB4B28F2470119A73"><enum>405.</enum><header>Increase and extension
of Oil Spill Liability Trust Fund tax</header>
<subsection commented="no" display-inline="no-display-inline" id="idC66C4EE020134C848AE9CE151754F7CB"><enum>(a)</enum><header>Increase in
rate</header>
<paragraph commented="no" display-inline="no-display-inline" id="idD68EBFFC94B348299AA49A3DDBAE73B1"><enum>(1)</enum><header>In
general</header><text>Section 4611(c)(2)(B) (relating to rates) is amended by
striking <quote>is 5 cents a barrel.</quote> and
inserting</text>
<quoted-block changed="added" display-inline="yes-display-inline" id="idA82F0DB66C874CE3B7A61755B58AF468" reported-display-style="italic" style="OLC">
<text>is—</text><clause commented="no" display-inline="no-display-inline" id="id96F67BE8448346349A493D00B19D7A44"><enum>(i)</enum><text>in the case of crude oil
received or petroleum products entered before January 1, 2017, 8 cents a
barrel, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idFA02A8D84A904E0FB2A92978B6C10E69"><enum>(ii)</enum><text>in the case of crude oil
received or petroleum products entered after December 31, 2016, 9 cents a
barrel.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id82129EEE1408407C946F1805F763C4AF"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply on and
after the first day of the first calendar quarter beginning more than 60 days
after the date of the enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3C7BDC25D6CE44008215960FB39D2DF7"><enum>(b)</enum><header>Extension</header>
<paragraph commented="no" display-inline="no-display-inline" id="idC028B5A6457A4E469643F7DD032ACBD0"><enum>(1)</enum><header>In
general</header><text>Section 4611(f) (relating to application of Oil Spill
Liability Trust Fund financing rate) is amended by striking paragraphs (2) and
(3) and inserting the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6691D90F8CA0436FA49A7C1DD7590479" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idE0E222046207489286D475C5C0765521"><enum>(2)</enum><header>Termination</header><text>The
Oil Spill Liability Trust Fund financing rate shall not apply after December
31,
2017.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBBDE02E418264B1FB8E5BC2E36099680"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 4611(f)(1) is amended by striking
<quote>paragraphs (2) and (3)</quote> and inserting <quote>paragraph
(2)</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF750E6D570754A01A1EC180F1C26D0A3"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect on
the date of the enactment of this Act.</text>
</paragraph></subsection></section>CTax extenders and
alternative minimum tax relief
1.Short title; amendment of
1986 Code; table of contents
(a)This division may be cited as the Tax Extenders and Alternative Minimum Tax Relief Act of
2008
.
(b)Except as otherwise
expressly provided, whenever in this division 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 of this division is as
follows:
Sec. 1. Short title; amendment
of 1986 Code; table of contents.
TITLE I—Alternative minimum tax
relief
Sec. 101. Extension of
alternative minimum tax relief for nonrefundable personal credits.
Sec. 102. Extension of
increased alternative minimum tax exemption amount.
Sec. 103. Increase of AMT
refundable credit amount for individuals with long-term unused credits for
prior year minimum tax liability, etc.
TITLE II—Extension of individual
tax provisions
Sec. 201. Deduction for State
and local sales taxes.
Sec. 202. Deduction of
qualified tuition and related expenses.
Sec. 203. Deduction for certain
expenses of elementary and secondary school teachers.
Sec. 204. Additional standard
deduction for real property taxes for nonitemizers.
Sec. 205. Tax-free
distributions from individual retirement plans for charitable
purposes.
Sec. 206. Treatment of certain
dividends of regulated investment companies.
Sec. 207. Stock in RIC for
purposes of determining estates of nonresidents not citizens.
Sec. 208. Qualified investment
entities.
TITLE III—Extension of business
tax provisions
Sec. 301. Extension and
modification of research credit.
Sec. 302. New markets tax
credit.
Sec. 303. Subpart
F exception for active financing
income.
Sec. 304. Extension of
look-thru rule for related controlled foreign corporations.
Sec. 305. Extension of 15-year
straight-line cost recovery for qualified leasehold improvements and qualified
restaurant improvements; 15-year straight-line cost recovery for certain
improvements to retail space.
Sec. 306. Modification of tax
treatment of certain payments to controlling exempt organizations.
Sec. 307. Basis adjustment to
stock of S corporations making charitable contributions of
property.
Sec. 308. Increase in limit on
cover over of rum excise tax to Puerto Rico and the Virgin Islands.
Sec. 309. Extension of economic
development credit for American Samoa.
Sec. 310. Extension of mine
rescue team training credit.
Sec. 311. Extension of election
to expense advanced mine safety equipment.
Sec. 312. Deduction allowable
with respect to income attributable to domestic production activities in Puerto
Rico.
Sec. 313. Qualified zone
academy bonds.
Sec. 314. Indian employment
credit.
Sec. 315. Accelerated
depreciation for business property on Indian reservations.
Sec. 316. Railroad track
maintenance.
Sec. 317. Seven-year cost
recovery period for motorsports racing track facility.
Sec. 318. Expensing of
environmental remediation costs.
Sec. 319. Extension of work
opportunity tax credit for Hurricane Katrina employees.
Sec. 320. Extension of
increased rehabilitation credit for structures in the Gulf Opportunity
Zone.
Sec. 321. Enhanced deduction
for qualified computer contributions.
Sec. 322. Tax incentives for
investment in the District of Columbia.
Sec. 323. Enhanced charitable
deductions for contributions of food inventory.
Sec. 324. Extension of enhanced
charitable deduction for contributions of book inventory.
Sec. 325. Extension and
modification of duty suspension on wool products; wool research fund; wool duty
refunds.
TITLE IV—Extension of tax
administration provisions
Sec. 401. Permanent authority
for undercover operations.
Sec. 402. Permanent authority
for disclosure of information relating to terrorist activities.
TITLE V—Additional tax relief and
other tax provisions
Subtitle A—General
provisions
Sec. 501. $8,500 income
threshold used to calculate refundable portion of child tax credit.
Sec. 502. Provisions related to
film and television productions.
Sec. 503. Exemption from excise
tax for certain wooden arrows designed for use by children.
Sec. 504. Income averaging for
amounts received in connection with the Exxon Valdez litigation.
Sec. 505. Certain farming
business machinery and equipment treated as 5-year property.
Sec. 506. Modification of
penalty on understatement of taxpayer’s liability by tax return
preparer.
Subtitle B—Paul Wellstone and
Pete Domenici Mental Health Parity and Addiction Equity Act of 2008
Sec. 511. Short
title.
Sec. 512. Mental health
parity.
TITLE VI—Other
provisions
Sec. 601. Secure rural schools
and community self-determination program.
Sec. 602. Transfer to abandoned
mine reclamation fund.
TITLE VII—Disaster
relief
Subtitle A—Heartland and
Hurricane Ike disaster relief
Sec. 701. Short
title.
Sec. 702. Temporary tax relief
for areas damaged by 2008 Midwestern severe storms, tornados, and
flooding.
Sec. 703. Reporting
requirements relating to disaster relief contributions.
Sec. 704. Temporary tax-exempt bond financing
and low-income housing tax relief for areas damaged by Hurricane
Ike.
Subtitle B—National disaster
relief
Sec. 706. Losses attributable
to federally declared disasters.
Sec. 707. Expensing of
Qualified Disaster Expenses.
Sec. 708. Net operating losses
attributable to federally declared disasters.
Sec. 709. Waiver of certain
mortgage revenue bond requirements following federally declared
disasters.
Sec. 710. Special depreciation
allowance for qualified disaster property.
Sec. 711. Increased expensing
for qualified disaster assistance property.
Sec. 712. Coordination with
Heartland disaster relief.
TITLE VIII—Spending reductions
and appropriate revenue raisers for new tax relief policy
Sec. 801. Nonqualified deferred
compensation from certain tax indifferent parties.
<enum>I</enum><header>Alternative minimum tax
relief</header>
<section id="H57DC299C7B1245FEBE481139B8F237A6"><enum>101.</enum><header>Extension of
alternative minimum tax relief for nonrefundable personal credits</header>
<subsection id="HEC363C8528CC4D64ADE77577C7B3F5B3"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 26(a) (relating to special rule
for taxable years 2000 through 2007) is amended—</text>
<paragraph id="HB37EAC7763544FEFBF8EBE5127100076"><enum>(1)</enum><text>by striking <quote>or
2007</quote> and inserting <quote>2007, or 2008</quote>, and</text>
</paragraph><paragraph id="H0753F138348F4CDDA5C28B350027ECAD"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">2007</header-in-text></quote> in the heading thereof and inserting
<quote><header-in-text level="paragraph" style="OLC">2008</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6D371EEC1BE54139949E281F55C00D3"><enum>(b)</enum><header> Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="H31808C50F0D041CCACF2EA2731CBB8" section-type="subsequent-section"><enum>102.</enum><header>Extension of
increased alternative minimum tax exemption amount</header>
<subsection id="HF61F3B9876424A85B5D9ADE858368D6C"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 55(d) (relating to exemption
amount) is amended—</text>
<paragraph id="HAF91B01B4DE6433EBDDE6CD6E82FEBC7"><enum>(1)</enum><text>by striking
<quote>($66,250 in the case of taxable years beginning in 2007)</quote> in
subparagraph (A) and inserting <quote>($69,950 in the case of taxable years
beginning in 2008)</quote>, and</text>
</paragraph><paragraph id="H5C96436946D04E84B9A074D1784DCEC9"><enum>(2)</enum><text>by striking
<quote>($44,350 in the case of taxable years beginning in 2007)</quote> in
subparagraph (B) and inserting <quote>($46,200 in the case of taxable years
beginning in 2008)</quote>.</text>
</paragraph></subsection><subsection id="H0D21C9D2E96A4E2F00E7FD74BFEAD2F6"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H889FD4781B23413AAE6F00B7EF615661" section-type="subsequent-section"><enum>103.</enum><header>Increase of AMT
refundable credit amount for individuals with long-term unused credits for
prior year minimum tax liability, etc</header>
<subsection commented="no" id="HC989D76FA9054A088B00AC4F4784854F"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 53(e) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H13221CEEF5514754A8A8B75F67008951" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="HB599D02DD8054F3BAD57B0CE46DBDE54"><enum>(2)</enum><header>AMT refundable credit
amount</header><text>For purposes of paragraph (1), the term <quote>AMT
refundable credit amount</quote> means, with respect to any taxable year, the
amount (not in excess of the long-term unused minimum tax credit for such
taxable year) equal to the greater of—</text>
<subparagraph commented="no" id="H8ECFB40F7B234A96B37EC1A452A158FA"><enum>(A)</enum><text>50 percent of the
long-term unused minimum tax credit for such taxable year, or</text>
</subparagraph><subparagraph commented="no" id="H6AC0DFF80C52410FB48799E6B5B984C1"><enum>(B)</enum><text display-inline="yes-display-inline">the amount (if any) of the AMT refundable
credit amount determined under this paragraph for the taxpayer’s preceding
taxable year (determined without regard to subsection
(f)(2)).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HA212865326CD4B3881C9BD61CACD4826"><enum>(b)</enum><header>Treatment of certain
underpayments, interest, and penalties attributable to the treatment of
incentive stock options</header><text>Section 53 is amended by adding at the
end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H6E5D2BFD1AB2410F97516469D32169B" reported-display-style="italic" style="OLC">
<subsection commented="no" id="HE647EA1FEA7242E7B1FE8D458BFCD1B"><enum>(f)</enum><header>Treatment of certain
underpayments, interest, and penalties attributable to the treatment of
incentive stock options</header>
<paragraph commented="no" id="H66094AB325C0473BB3322C27A3DB006C"><enum>(1)</enum><header>Abatement</header><text>Any
underpayment of tax outstanding on the date of the enactment of this subsection
which is attributable to the application of section 56(b)(3) for any taxable
year ending before January 1, 2008, and any interest or penalty with respect to
such underpayment which is outstanding on such date of enactment, is hereby
abated. The amount determined under subsection (b)(1) shall not include any tax
abated under the preceding sentence.</text>
</paragraph><paragraph commented="no" id="HBA04668721634063A0EAF03DE7F65049"><enum>(2)</enum><header>Increase in credit for
certain interest and penalties already paid</header><text>The AMT refundable
credit amount, and the minimum tax credit determined under subsection (b), for
the taxpayer’s first 2 taxable years beginning after December 31, 2007, shall
each be increased by 50 percent of the aggregate amount of the interest and
penalties which were paid by the taxpayer before the date of the enactment of
this subsection and which would (but for such payment) have been abated under
paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H4519BA7115C84B1D96AAAA4E009502B1"><enum>(c)</enum><header>Effective date</header>
<paragraph commented="no" id="H36654257FAF34CAB924D482209553635"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H14FE5162C5894AE197835F6E62833B6E"><enum>(2)</enum><header>Abatement</header><text>Section
53(f)(1), as added by subsection (b), shall take effect on the date of the
enactment of this Act.</text>
</paragraph></subsection></section><enum>II</enum><header>Extension of individual
tax provisions</header>
<section commented="no" display-inline="no-display-inline" id="HB2FDAE35D5044852BC6056D5A46AF7B" section-type="subsequent-section"><enum>201.</enum><header>Deduction for State
and local sales taxes</header>
<subsection commented="no" id="H6384FC8E37794408B468F9AB11C56904"><enum>(a)</enum><header>In
general</header><text>Subparagraph (I) of section 164(b)(5) is amended by
striking <quote>January 1, 2008</quote> and inserting <quote>January 1,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6A642AB987A944DB90DBA4F73200002B"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="H0911F6083497447BADAC09E0B98D67E8" section-type="subsequent-section"><enum>202.</enum><header>Deduction of
qualified tuition and related expenses</header>
<subsection id="H368783DD7DA3431393444914D220F212"><enum>(a)</enum><header>In
general</header><text>Subsection (e) of section 222 (relating to termination)
is amended by striking <quote>December 31, 2007</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2C328B0E0ABA43FB811DB19FDF3E023D"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="H406032AA87AC43E6932DE34D0265E7CB"><enum>203.</enum><header>Deduction for certain
expenses of elementary and secondary school teachers</header>
<subsection id="HF5EEB86D797845D9A215450007B3CB46"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (D) of
section 62(a)(2) (relating to certain expenses of elementary and secondary
school teachers) is amended by striking <quote>or 2007</quote> and inserting
<quote>2007, 2008, or 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBC8B0662C20F442982D3CAD00DDB64"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id2B858ECA6C6846C0B68807455BDA5C00"><enum>204.</enum><header>Additional standard
deduction for real property taxes for nonitemizers</header>
<subsection commented="no" display-inline="no-display-inline" id="idA54EE82454C54E76BB2483050EC3B1F1"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 63(c)(1), as added by the
Housing Assistance Tax Act of 2008, is amended by inserting <quote>or
2009</quote> after <quote>2008</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA517B30750E243ABAB76DE21742716B0"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2008.</text>
</subsection></section><section display-inline="no-display-inline" id="HBE1ED2DFA39F4B72B75D702DCC851F82" section-type="subsequent-section"><enum>205.</enum><header>Tax-free
distributions from individual retirement plans for charitable purposes</header>
<subsection id="H043D149B7F98453BBE7D2EC237A200F0"><enum>(a)</enum><header>In
general</header><text>Subparagraph (F) of section 408(d)(8) (relating to
termination) is amended by striking <quote>December 31, 2007</quote> and
inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA3FD08413557463DB818980057E367BD"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
distributions made in taxable years beginning after December 31, 2007.</text>
</subsection></section><section id="HE92E18ACDC924C128B2591CFFBAD3318"><enum>206.</enum><header>Treatment of certain
dividends of regulated investment companies</header>
<subsection id="H6571314F159F40F2AF74F07F9B99553B"><enum>(a)</enum><header>Interest-related
dividends</header><text>Subparagraph (C) of section 871(k)(1) (defining
interest-related dividend) is amended by striking <quote>December 31,
2007</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection display-inline="no-display-inline" id="H37A2A5EE703D42430031C9048FD3EA06"><enum>(b)</enum><header>Short-term capital gain
dividends</header><text display-inline="yes-display-inline">Subparagraph (C) of
section 871(k)(2) (defining short-term capital gain dividend) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE71CC284151A4FF28F36E3AB773626F3"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to dividends
with respect to taxable years of regulated investment companies beginning after
December 31, 2007.</text>
</subsection></section><section id="H6D2636AA9D994D53B0EDA94C39DF49CF"><enum>207.</enum><header>Stock in RIC for
purposes of determining estates of nonresidents not citizens</header>
<subsection id="HAFFAB50AD02340BD911C1300B87E27E4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (3) of
section 2105(d) (relating to stock in a RIC) is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0F50791A1D2A4C9F964C247BB1B6BF16"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to decedents
dying after December 31, 2007.</text>
</subsection></section><section id="H5DF67FCF22544DBEB81983D8E36E778E"><enum>208.</enum><header>Qualified investment
entities</header>
<subsection id="H64506A0A8F7C46F58B814B68D82018A3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Clause (ii) of
section 897(h)(4)(A) (relating to termination) is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H8104FBEAD0BD49C593C2C56C545E515D"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall take effect on
January 1, 2008.</text>
</subsection></section><enum>III</enum><header>Extension of business
tax provisions</header>
<section id="id8C04D6A5F6E9420AADCF63FFB7DB465D"><enum>301.</enum><header>Extension and
modification of research credit</header>
<subsection id="id38E78F1C8EAB480FB0013A4738D39FC8"><enum>(a)</enum><header>Extension</header>
<paragraph id="idEC42B118EA6F4C41BEC26A62E33B7FAE"><enum>(1)</enum><header>In
general</header><text>Section 41(h) (relating to termination) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2009</quote> in paragraph (1)(B).</text>
</paragraph><paragraph id="id2B91CD12DB2547609D734BA065CA2596"><enum>(2)</enum><header>Conforming
amendment</header><text>Subparagraph (D) of section 45C(b)(1) (relating to
special rule) is amended by striking <quote>after December 31, 2007</quote> and
inserting <quote>after December 31, 2009</quote>.</text>
</paragraph></subsection><subsection id="idDBFA1DA5B4FB4BC7B83D32C14514DB7A"><enum>(b)</enum><header>Termination of
alternative incremental credit</header><text>Section 41(h) is amended by
redesignating paragraph (2) as paragraph (3), and by inserting after paragraph
(1) the following new paragraph:</text>
<quoted-block act-name="" changed="added" id="idCF380E917130436694F980323F92B0E4" reported-display-style="italic" style="OLC">
<paragraph id="id1CA0F87C8BD24C91A6CAC70DFBB7E2D3"><enum>(2)</enum><header>Termination of
alternative incremental credit</header><text>No election under subsection
(c)(4) shall apply to taxable years beginning after December 31,
2008.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idDE56EF299B3A4B28A45D27692779FBEB"><enum>(c)</enum><header>Modification of
alternative simplified credit</header><text>Paragraph (5)(A) of section 41(c)
(relating to election of alternative simplified credit) is amended by striking
<quote>12 percent</quote> and inserting <quote>14 percent (12 percent in the
case of taxable years ending before January 1, 2009)</quote>.</text>
</subsection><subsection id="id6337FB5EF4A242D3AEE68D132D570697"><enum>(d)</enum><header>Technical
correction</header><text>Paragraph (3) of section 41(h) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idEBE1917A42154C32AA57E6356DFA4387" reported-display-style="italic" style="OLC">
<paragraph id="idD57C8E4442DB4CAF8341E7681B084D45"><enum>(2)</enum><header>Computation for taxable
year in which credit terminates</header><text>In the case of any taxable year
with respect to which this section applies to a number of days which is less
than the total number of days in such taxable year—</text>
<subparagraph id="idFB379E2E73524D9A979BDFBDA48D8A18"><enum>(A)</enum><text>the amount determined
under subsection (c)(1)(B) with respect to such taxable year shall be the
amount which bears the same ratio to such amount (determined without regard to
this paragraph) as the number of days in such taxable year to which this
section applies bears to the total number of days in such taxable year,
and</text>
</subparagraph><subparagraph id="id359DE81CB98D458A9A7A562BD50127E9"><enum>(B)</enum><text>for purposes of
subsection (c)(5), the average qualified research expenses for the preceding 3
taxable years shall be the amount which bears the same ratio to such average
qualified research expenses (determined without regard to this paragraph) as
the number of days in such taxable year to which this section applies bears to
the total number of days in such taxable
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idE6545E2C2E7A456DBAF53B3F88874DBA"><enum>(e)</enum><header>Effective date</header>
<paragraph id="idF63376D2AE634CEBA718C467948C755C"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2007.</text>
</paragraph><paragraph id="id851FF1CF6B004E3C8AC973BB34D976C9"><enum>(2)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall apply to amounts paid or incurred after
December 31, 2007.</text>
</paragraph></subsection></section><section id="H760774BC72734740A85E010060018121"><enum>302.</enum><header>New markets tax
credit</header><text display-inline="no-display-inline">Subparagraph (D) of
section 45D(f)(1) (relating to national limitation on amount of investments
designated) is amended by striking <quote>and 2008</quote> and inserting
<quote>2008, and 2009</quote>.</text>
</section><section id="ID5679FBC3740C43D5B67BD5EFABE46C8A"><enum>303.</enum><header>Subpart
<enum-in-header>F</enum-in-header> exception for active financing
income</header>
<subsection id="ID84C8D4E15F1B4A209EC5D250BB81FF14"><enum>(a)</enum><header>Exempt insurance
income</header><text>Paragraph (10) of section 953(e) (relating to application)
is amended—</text>
<paragraph id="IDBCE102C0DCB245CDA57C8599F9050A55"><enum>(1)</enum><text>by striking
<quote>January 1, 2009</quote> and inserting <quote>January 1, 2010</quote>,
and</text>
</paragraph><paragraph id="ID8047712002AD4EB5B474421F7ADB2733"><enum>(2)</enum><text>by striking
<quote>December 31, 2008</quote> and inserting <quote>December 31,
2009</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID582B3AF3290E4ED58F303195FF3BF392"><enum>(b)</enum><header>Exception to treatment
as foreign personal holding company income</header><text>Paragraph (9) of
section 954(h) (relating to application) is amended by striking <quote>January
1, 2009</quote> and inserting <quote>January 1, 2010</quote>.</text>
</subsection></section><section id="ID43F6CC22F0FE44AB90CC69470A676BD8"><enum>304.</enum><header>Extension of look-thru
rule for related controlled foreign corporations</header>
<subsection id="IDF2B444DFE31840BFB18813E8020D7A90"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 954(c)(6) (relating to
application) is amended by striking <quote>January 1, 2009</quote> and
inserting <quote>January 1, 2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDDFA43DA0A4CA49578DC3D82067F3D52E"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years of foreign corporations beginning after December 31, 2007, and to taxable
years of United States shareholders with or within which such taxable years of
foreign corporations end.</text>
</subsection></section><section id="IDE7B4D27BF86C4B6593E65E6D422F0496"><enum>305.</enum><header>Extension of 15-year
straight-line cost recovery for qualified leasehold improvements and qualified
restaurant improvements; 15-year straight-line cost recovery for certain
improvements to retail space</header>
<subsection id="idF09CBCF85ADA496C832C3C1C50ABD86B"><enum>(a)</enum><header>Extension of leasehold
and restaurant improvements</header>
<paragraph id="id203DE81E3412465CA61672D694E48D1E"><enum>(1)</enum><header>In
general</header><text>Clauses (iv) and (v) of section 168(e)(3)(E) (relating to
15-year property) are each amended by striking <quote>January 1, 2008</quote>
and inserting <quote>January 1, 2010</quote>.</text>
</paragraph><paragraph id="id3781E7ED96D840D881A3DFA8EF731E13"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
property placed in service after December 31, 2007.</text>
</paragraph></subsection><subsection id="H7A9BFA7F66BE46C0BFA6DF7831EC57E5"><enum>(b)</enum><header>Treatment To include
new construction</header>
<paragraph id="id0E12240072BB4DF1A4583B2DD0000392"><enum>(1)</enum><header>In
general</header><text>Paragraph (7) of section 168(e) (relating to
classification of property) is amended to read as follows:</text>
<quoted-block changed="added" id="H0EB7DF3547F34320B29C44C3EB2FA8D6" reported-display-style="italic" style="OLC">
<paragraph id="H3B367DAC907440E5903C8DE4E604767"><enum>(7)</enum><header>Qualified restaurant
property</header>
<subparagraph id="idBB832DE421664C7B8B528FD52828163A"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified restaurant property</term> means
any section 1250 property which is—</text>
<clause id="idA354E1A6E1F54D23A49C019C433F4AF5"><enum>(i)</enum><text>a building, if such
building is placed in service after December 31, 2008, and before January 1,
2010, or</text>
</clause><clause id="id4358A0F3FE31467391A0E14731C940F3"><enum>(ii)</enum><text>an improvement to a
building,</text>
</clause><continuation-text continuation-text-level="subparagraph">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.</continuation-text></subparagraph><subparagraph id="idF0A90F2B3ACA4DB7B3E2B737B2330540"><enum>(B)</enum><header>Exclusion from bonus
depreciation</header><text>Property described in this paragraph shall not be
considered qualified property for purposes of subsection
(k).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2CC60479E7214FB29F292E4399FAE1E5"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
property placed in service after December 31, 2008.</text>
</paragraph></subsection><subsection id="IDA00156CDC87E41A9A1EAD70CC4FBC155"><enum>(c)</enum><header>Recovery period for
depreciation of certain improvements to retail space</header>
<paragraph id="IDF593D53289A34EED9DA3DA3ED4D25A25"><enum>(1)</enum><header>15-year recovery
period</header><text>Section 168(e)(3)(E) (relating to 15-year property) is
amended by striking <quote>and</quote> at the end of clause (vii), by striking
the period at the end of clause (viii) and inserting <quote>, and</quote>, and
by adding at the end the following new clause:</text>
<quoted-block changed="added" id="ID2DF8E258DD8E46F59CEB80E8772C9274" reported-display-style="italic" style="OLC">
<clause id="ID366DA8636340404B83C33947570F9E37"><enum>(ix)</enum><text>any qualified retail
improvement property placed in service after December 31, 2008, and before
January 1,
2010.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID6224DBA22C404F2395E31D8C94EE1A24"><enum>(2)</enum><header>Qualified retail
improvement property</header><text>Section 168(e) is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" id="ID7CDE7B8A8CD74045AEA538FE11064BAB" reported-display-style="italic" style="OLC">
<paragraph id="ID8E1D4FEE130C4E0CB1382DF58313D628"><enum>(8)</enum><header>Qualified retail
improvement property</header>
<subparagraph id="IDDC5796DFC05E4AC18ABC9898B076C586"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified retail improvement
property</term> means any improvement to an interior portion of a building
which is nonresidential real property if—</text>
<clause id="ID7CA0E4B13FCD40EE8FBB0B8A42B4900D"><enum>(i)</enum><text>such portion is open to
the general public and is used in the retail trade or business of selling
tangible personal property to the general public, and</text>
</clause><clause id="IDA019B954294A4844AAD0257F993DC531"><enum>(ii)</enum><text>such improvement is
placed in service more than 3 years after the date the building was first
placed in service.</text>
</clause></subparagraph><subparagraph id="IDC79715A9429E4BBBB51182E4BC69B116"><enum>(B)</enum><header>Improvements made by
owner</header><text>In the case of an improvement made by the owner of such
improvement, such improvement shall be qualified retail improvement property
(if at all) only so long as such improvement is held by such owner. Rules
similar to the rules under paragraph (6)(B) shall apply for purposes of the
preceding sentence.</text>
</subparagraph><subparagraph id="IDD1E13610B2824CBF9D50F4405F386ABE"><enum>(C)</enum><header>Certain improvements
not included</header><text>Such term shall not include any improvement for
which the expenditure is attributable to—</text>
<clause id="IDC79B1ADB42B64C2F855DB645AD4C04FF"><enum>(i)</enum><text>the enlargement of the
building,</text>
</clause><clause id="IDE5BD05639523426995EBC284461DC95F"><enum>(ii)</enum><text>any elevator or
escalator,</text>
</clause><clause id="ID928616379F52437CB0F9F4826FEB4CB2"><enum>(iii)</enum><text>any structural
component benefitting a common area, or</text>
</clause><clause id="IDE675E730F20147AFAE706D15DB2E9F75"><enum>(iv)</enum><text>the internal structural
framework of the building.</text>
</clause></subparagraph><subparagraph id="id075C6476C7CB4CF9BB54F872DB874746"><enum>(D)</enum><header>Exclusion from bonus
depreciation</header><text>Property described in this paragraph shall not be
considered qualified property for purposes of subsection (k).</text>
</subparagraph><subparagraph id="idBF2E286617D84EE28420A3E2FFCC31DD"><enum>(E)</enum><header>Termination</header><text>Such
term shall not include any improvement placed in service after December 31,
2009.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID1410289634F94B5DAC924AC27DA136C9"><enum>(3)</enum><header>Requirement to use
straight line method</header><text>Section 168(b)(3) is amended by adding at
the end the following new subparagraph:</text>
<quoted-block changed="added" id="ID08154C0D137549828B066D317DC5CF66" reported-display-style="italic" style="OLC">
<subparagraph id="ID2E70AF76A6774C5D92B4C61C3990862D"><enum>(I)</enum><text>Qualified retail
improvement property described in subsection
(e)(8).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDBAA3421AD6AF4D2DBB3C9EDD081B394E"><enum>(4)</enum><header>Alternative
system</header><text>The table contained in section 168(g)(3)(B) is amended by
inserting after the item relating to subparagraph (E)(viii) the following new
item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id939A4865DB0F4E8E9AB6F76DC514F6D8" reported-display-style="italic" style="OLC">
<table line-rules="no-gen" rule-weights="4.4.4.4.0.0">
<ttitle> </ttitle>
<tgroup cols="2" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="200"></colspec><colspec coldef="fig" colname="col2" min-data-value="10"></colspec>
<tbody>
<row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">“(E)(ix)</entry><entry colname="col2">39</entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDDCD24F472F4844FDB2D6F40CEBB484C5"><enum>(5)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
property placed in service after December 31, 2008.</text>
</paragraph></subsection></section><section id="HC327A6861A0B41EF86E595C6F5047808"><enum>306.</enum><header>Modification of tax
treatment of certain payments to controlling exempt organizations</header>
<subsection id="H64C925302C9846479F17DB89EB395E16"><enum>(a)</enum><header>In
general</header><text>Clause (iv) of section 512(b)(13)(E) (relating to
termination) is amended by striking <quote>December 31, 2007</quote> and
inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0F5CA84F487C4A4DBF01AC98A6076140"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to payments
received or accrued after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="H192138D5F89C49E6B630D32E9900037E" section-type="subsequent-section"><enum>307.</enum><header>Basis adjustment to
stock of S corporations making charitable contributions of property</header>
<subsection id="H98037D14367D40DB838FBE8C6F5E6B9C"><enum>(a)</enum><header>In
general</header><text>The last sentence of section 1367(a)(2) (relating to
decreases in basis) is amended by striking <quote>December 31, 2007</quote> and
inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection id="HD726C94443224E01A7E8C4373591AE4C"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made in taxable years beginning after December 31, 2007.</text>
</subsection></section><section id="HD360BDD1E3094BE08E67FBD8EA22E8D7"><enum>308.</enum><header>Increase in limit on
cover over of rum excise tax to Puerto Rico and the Virgin Islands</header>
<subsection id="idA3E42E0B1FC84290A5958065FA9F7E2E"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 7652(f) is amended by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id6353D4C81D4648149EEA766C7C20DA0F"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to distilled
spirits brought into the United States after December 31, 2007.</text>
</subsection></section><section id="H95EED196C3BB40E59CAC7D5E65FA788C"><enum>309.</enum><header>Extension of economic
development credit for American Samoa</header>
<subsection id="HD72B97E896114B98914481F315A69111"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (d) of
section 119 of division A of the Tax Relief and Health Care Act of 2006 is
amended—</text>
<paragraph id="H450099B466294B98A8E0D94F79DEEC8"><enum>(1)</enum><text>by striking <quote>first
two taxable years</quote> and inserting <quote>first 4 taxable years</quote>,
and</text>
</paragraph><paragraph id="HC294B4BACE7C46C6AD6E8C02C869734B"><enum>(2)</enum><text>by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2010</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF3ED8E784D594A4700D9A7021D03D431"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="id8FCAA6C6F7194634A682A4F913A18339"><enum>310.</enum><header>Extension of mine
rescue team training credit</header><text display-inline="no-display-inline">Section 45N(e) (relating to termination) is
amended by striking <quote>December 31, 2008</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</section><section display-inline="no-display-inline" id="id9B46DCE38067457F985335119B46C052"><enum>311.</enum><header>Extension of election
to expense advanced mine safety equipment</header><text display-inline="no-display-inline">Section 179E(g) (relating to termination) is
amended by striking <quote>December 31, 2008</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</section><section id="H196DFA13D86C459AA893216D975B87F4"><enum>312.</enum><header>Deduction allowable
with respect to income attributable to domestic production activities in Puerto
Rico</header>
<subsection id="HE09C9686EF2C442EB14956002F43FCBA"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 199(d)(8) (relating to
termination) is amended—</text>
<paragraph id="H50D41DBFCF594766B519FCA78DA26100"><enum>(1)</enum><text>by striking <quote>first
2 taxable years</quote> and inserting <quote>first 4 taxable years</quote>,
and</text>
</paragraph><paragraph id="H55C685EBB5B1427091F12BDF969800AD"><enum>(2)</enum><text>by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2010</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H077806D4C0F34341A673DB7682B36B82"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HC56BB5398DD449E6A61921AD75ED2546" section-type="subsequent-section"><enum>313.</enum><header>Qualified zone
academy bonds</header>
<subsection commented="no" id="HF2D2A28797CF451780C36FBEC460666"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart I of part IV
of subchapter A of chapter 1 is amended by adding at the end the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HD1A45A41FC9D411DA30875BD469E6000" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H5D8ACDE8CC514D27B738D4298DD32600" section-type="subsequent-section"><enum>54E.</enum><header>Qualified zone
academy bonds</header>
<subsection commented="no" id="H8E2059CAE7E94770A5ADB98BEFFA87C"><enum>(a)</enum><header>Qualified zone academy
bonds</header><text>For purposes of this subchapter, the term <term>qualified
zone academy bond</term> means any bond issued as part of an issue if—</text>
<paragraph commented="no" id="HF7031AC94E464D0E8962B95C4BB2D7AC"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of the available project
proceeds of such issue are to be used for a qualified purpose with respect to a
qualified zone academy established by an eligible local education
agency,</text>
</paragraph><paragraph commented="no" id="H31D65A6EAC8A4EF7899430A26BD6A895"><enum>(2)</enum><text>the bond is issued by a
State or local government within the jurisdiction of which such academy is
located, and</text>
</paragraph><paragraph commented="no" id="HA29C36D081ED4DCFBC00763C3B7000F"><enum>(3)</enum><text>the issuer—</text>
<subparagraph commented="no" id="HDBAF29B142F64308B5FEB8A1B5A53534"><enum>(A)</enum><text>designates such bond for
purposes of this section,</text>
</subparagraph><subparagraph commented="no" id="H9A177B5973A34288B0CACF665025458F"><enum>(B)</enum><text>certifies that it has
written assurances that the private business contribution requirement of
subsection (b) will be met with respect to such academy, and</text>
</subparagraph><subparagraph commented="no" id="H0CA2D49ADA8341A3BE02FE36CBFF817"><enum>(C)</enum><text>certifies that it has the
written approval of the eligible local education agency for such bond
issuance.</text>
</subparagraph></paragraph></subsection><subsection id="H4D951DAEE3A1469CA300E6AC752C88A2"><enum>(b)</enum><header> Private business
contribution requirement</header><text display-inline="yes-display-inline">For
purposes of subsection (a), the private business contribution requirement of
this subsection is met with respect to any issue if the eligible local
education agency that established the qualified zone academy has written
commitments from private entities to make qualified contributions having a
present value (as of the date of issuance of the issue) of not less than 10
percent of the proceeds of the issue.</text>
</subsection><subsection id="H3F1A0E608BAF436B9EB2EDF1DC7887C0"><enum>(c)</enum><header>Limitation on amount of
bonds designated</header>
<paragraph id="H6F5D6677256249788B2D5C4FEA00700"><enum>(1)</enum><header>National
limitation</header><text display-inline="yes-display-inline">There is a
national zone academy bond limitation for each calendar year. Such limitation
is $400,000,000 for 2008 and 2009, and, except as provided in paragraph (4),
zero thereafter.</text>
</paragraph><paragraph id="H79797C2566A5487BB9A41710028BCC3"><enum>(2)</enum><header>Allocation of
limitation</header><text display-inline="yes-display-inline">The national zone
academy bond limitation for a calendar year shall be allocated by the Secretary
among the States on the basis of their respective populations of individuals
below the poverty line (as defined by the Office of Management and Budget). The
limitation amount allocated to a State under the preceding sentence shall be
allocated by the State education agency to qualified zone academies within such
State.</text>
</paragraph><paragraph id="H470671AB107A4D8DADF536DD2607500"><enum>(3)</enum><header>Designation subject to
limitation amount</header><text display-inline="yes-display-inline">The maximum
aggregate face amount of bonds issued during any calendar year which may be
designated under subsection (a) with respect to any qualified zone academy
shall not exceed the limitation amount allocated to such academy under
paragraph (2) for such calendar year.</text>
</paragraph><paragraph id="HEB727532101B493BBD4D26EAC0169541"><enum>(4)</enum><header>Carryover of unused
limitation</header>
<subparagraph id="H0D9F40848EF3483897AE2674D0296592"><enum>(A)</enum><header>In
general</header><text>If for any calendar year—</text>
<clause id="H2B35D9BE44514CB7AB4C77E2C32CDD00"><enum>(i)</enum><text>the limitation amount for
any State, exceeds</text>
</clause><clause id="HD1666DFA2C054EA187723F754554F7F3"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of bonds issued during such year
which are designated under subsection (a) with respect to qualified zone
academies within such State,</text>
</clause><continuation-text continuation-text-level="subparagraph">the limitation amount for such State for
the following calendar year shall be increased by the amount of such
excess.</continuation-text></subparagraph><subparagraph id="HB72C91A1BD28472F8E8202D2EE46DAB"><enum>(B)</enum><header>Limitation on
carryover</header><text display-inline="yes-display-inline">Any carryforward of
a limitation amount may be carried only to the first 2 years following the
unused limitation year. For purposes of the preceding sentence, a limitation
amount shall be treated as used on a first-in first-out basis.</text>
</subparagraph><subparagraph id="HBFDBF4154557418ABF66D9D97512E662"><enum>(C)</enum><header>Coordination with
section 1397E</header><text>Any carryover determined under section 1397E(e)(4)
(relating to carryover of unused limitation) with respect to any State to
calendar year 2008 or 2009 shall be treated for purposes of this section as a
carryover with respect to such State for such calendar year under subparagraph
(A), and the limitation of subparagraph (B) shall apply to such carryover
taking into account the calendar years to which such carryover relates.</text>
</subparagraph></paragraph></subsection><subsection id="HC45C95905A1143C5879453829268C307"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="H2E24D34ED30E4778BA30AB6F2C35002F"><enum>(1)</enum><header>Qualified zone
academy</header><text>The term <quote>qualified zone academy</quote> means any
public school (or academic program within a public school) which is established
by and operated under the supervision of an eligible local education agency to
provide education or training below the postsecondary level if—</text>
<subparagraph id="HADA8E907B4914ACC88A2418C5F2E97A7"><enum>(A)</enum><text>such public school or
program (as the case may be) is designed in cooperation with business to
enhance the academic curriculum, increase graduation and employment rates, and
better prepare students for the rigors of college and the increasingly complex
workforce,</text>
</subparagraph><subparagraph id="HFF3DE7176D174E488BABA66E8DDE8F88"><enum>(B)</enum><text>students in such public
school or program (as the case may be) will be subject to the same academic
standards and assessments as other students educated by the eligible local
education agency,</text>
</subparagraph><subparagraph id="HA721A98B5A1F444D8150D7E35F36015E"><enum>(C)</enum><text>the comprehensive
education plan of such public school or program is approved by the eligible
local education agency, and</text>
</subparagraph><subparagraph id="H21D169317CAD4772BD5BC267AEA9B361"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="H7F8FAAA25DB44E1692B13B37D8975377"><enum>(i)</enum><text>such public school is
located in an empowerment zone or enterprise community (including any such zone
or community designated after the date of the enactment of this section),
or</text>
</clause><clause changed="added" id="H69F7DF63D33940E78CAABD2981D39B6D" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>there is a reasonable
expectation (as of the date of issuance of the bonds) that at least 35 percent
of the students attending such school or participating in such program (as the
case may be) will be eligible for free or reduced-cost lunches under the school
lunch program established under the National School Lunch Act.</text>
</clause></subparagraph></paragraph><paragraph id="HC0AD7C417333473EAC1030282EA98FBA"><enum>(2)</enum><header>Eligible local
education agency</header><text>For purposes of this section, the term
<quote>eligible local education agency</quote> means any local educational
agency as defined in section 9101 of the Elementary and Secondary Education Act
of 1965.</text>
</paragraph><paragraph id="H3B7C4345E7E6410F8E85634E7800B548"><enum>(3)</enum><header>Qualified
purpose</header><text>The term <quote>qualified purpose</quote> means, with
respect to any qualified zone academy—</text>
<subparagraph id="HBFB3D1687A1B468CA203E4E7734EB2E0"><enum>(A)</enum><text>rehabilitating or
repairing the public school facility in which the academy is
established,</text>
</subparagraph><subparagraph id="H0601541C3DA84A1E923E90DC50A3391"><enum>(B)</enum><text>providing equipment for
use at such academy,</text>
</subparagraph><subparagraph id="H69D7A725A5364BF2B98500D1AEB30840"><enum>(C)</enum><text>developing course
materials for education to be provided at such academy, and</text>
</subparagraph><subparagraph id="HF75ECE35FD3F4BA2B7B98400B7B3BA93"><enum>(D)</enum><text>training teachers and
other school personnel in such academy.</text>
</subparagraph></paragraph><paragraph id="HC3F2F93D94E14D9E95C8C9D5E92D817D"><enum>(4)</enum><header>Qualified
contributions</header><text>The term <quote>qualified contribution</quote>
means any contribution (of a type and quality acceptable to the eligible local
education agency) of—</text>
<subparagraph id="H7F322406C2F64DCD9FB5363E52CAF828"><enum>(A)</enum><text>equipment for use in the
qualified zone academy (including state-of-the-art technology and vocational
equipment),</text>
</subparagraph><subparagraph id="H7A54485745204087A92305BF37A32D92"><enum>(B)</enum><text>technical assistance in
developing curriculum or in training teachers in order to promote appropriate
market driven technology in the classroom,</text>
</subparagraph><subparagraph id="H7CD3B4F940B842BF8C8CF201DFF3448"><enum>(C)</enum><text>services of employees as
volunteer mentors,</text>
</subparagraph><subparagraph id="HAFAE13BCF1844C5FB690C3C0F739B6A4"><enum>(D)</enum><text>internships, field trips,
or other educational opportunities outside the academy for students, or</text>
</subparagraph><subparagraph id="HE29399DBAEFF4388970724218C1BAB33"><enum>(E)</enum><text>any other property or
service specified by the eligible local education
agency.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="id4CA4DA6E766F46C5B5FF7AFA40CE957D"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id092D7AB0BF534E21A418057A495089C2"><enum>(1)</enum><text>Paragraph (1) of section
54A(d), as amended by this Act, is amended by striking <quote>or</quote> at the
end of subparagraph (B), by inserting <quote>or</quote> at the end of
subparagraph (C), and by inserting after subparagraph (C) the following new
subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H292337E32C9D4FC192CAD6634349FEB2" reported-display-style="italic" style="OLC">
<subparagraph id="id2007D9B5E476435891A8787083516BD3"><enum>(D)</enum><text display-inline="yes-display-inline">a qualified zone academy
bond,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idD0DD3A7C084A499EB731EC416A512DB3"><enum>(2)</enum><text>Subparagraph (C) of
section 54A(d)(2), as amended by this Act, is amended by striking
<quote>and</quote> at the end of clause (ii), by striking the period at the end
of clause (iii) and inserting <quote>, and</quote>, and by adding at the end
the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8CB37287E52D406CBE3213921DEF7FA1" reported-display-style="italic" style="OLC">
<clause id="HF0FDCE8ADAAF406E9D11FA8EAFE4A84E"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of a qualified zone academy
bond, a purpose specified in section
54E(a)(1).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idA0CC685727944409842A06D56BFA4056"><enum>(3)</enum><text>Section 1397E is amended
by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD68C94D7E5CE4477B0DF69B76A276C87" reported-display-style="italic" style="OLC">
<subsection id="id420F434B7CA14E4E98E03442EF05D801"><enum>(m)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any
obligation issued after the date of the enactment of the
<short-title>Tax Extenders and Alternative Minimum Tax
Relief Act of
2008</short-title>.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idF9718F5801A143988F2770FD11FFE6AD"><enum>(4)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part
IV of subchapter A of chapter 1 is amended by adding at the end the following
new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id37AF8DAE1A1B487A97BCCD7B7E3942B8" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry level="section">Sec. 54E. Qualified zone academy
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4BF7995CD7A248C6B39FC8D0535D73F7"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="H12FD917F96A543E9BB365817C735F7B2" section-type="subsequent-section"><enum>314.</enum><header>Indian employment
credit</header>
<subsection id="H994638FE5C754634BC764CB115865760"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 45A (relating to termination)
is amended by striking <quote>December 31, 2007</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H568E60AD31CE4728B6FDD9342CF1B308"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="HD8C3242227FB4F8B8F6CC20030D526B9"><enum>315.</enum><header>Accelerated
depreciation for business property on Indian reservations</header>
<subsection id="H87875697DC884C50853507FAF2B8317"><enum>(a)</enum><header>In
general</header><text>Paragraph (8) of section 168(j) (relating to termination)
is amended by striking <quote>December 31, 2007</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H98DAA23691AA490EBF97F825963050D3"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2007.</text>
</subsection></section><section id="H6D79774ABDC744C6A9D7EDB1059FB800"><enum>316.</enum><header>Railroad track
maintenance</header>
<subsection id="H3D96A57D6C9C47819DBEA44CE3B56B3F"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 45G (relating to application of
section) is amended by striking <quote>January 1, 2008</quote> and inserting
<quote>January 1, 2010</quote>.</text>
</subsection><subsection id="idEC665BDB1445493FAE0E5CD03B930AB5"><enum>(b)</enum><header>Credit allowed against
alternative minimum tax</header><text>Subparagraph (B) of section 38(c)(4), as
amended by this Act, is amended—</text>
<paragraph id="idE940D7472FEC44FBB35914FCC67C5EF0"><enum>(1)</enum><text>by redesignating clauses
(v), (vi), and (vii) as clauses (vi), (vii), and (viii), respectively,
and</text>
</paragraph><paragraph id="id3F6003082276405FA2620C21B01B2518"><enum>(2)</enum><text>by inserting after clause
(iv) the following new clause:</text>
<quoted-block act-name="" changed="added" id="id994A02C9693845B382AE9CB553E8D1BC" reported-display-style="italic" style="OLC">
<clause id="id0F9C03BD22AC4CF9877E732AF30F6D04"><enum>(v)</enum><text>the credit determined
under section
45G,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id889CE89CD9444B31BBD760AD7B0EB2C6"><enum>(c)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6E299D7E486C4481B9920087DBF5F16D"><enum>(1)</enum><text>The amendment made by
subsection (a) shall apply to expenditures paid or incurred during taxable
years beginning after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDC11B979D0C04548A93FBFD79CA21ADE"><enum>(2)</enum><text>The amendments made by
subsection (b) shall apply to credits determined under section 45G of the
Internal Revenue Code of 1986 in taxable years beginning after December 31,
2007, and to carrybacks of such credits.</text>
</paragraph></subsection></section><section id="H36151EC261674D1384679DC37E19BF42"><enum>317.</enum><header>Seven-year cost
recovery period for motorsports racing track facility</header>
<subsection id="HFEF5F94D2F47497F98191FCC9F4FA56C"><enum>(a)</enum><header>In
general</header><text>Subparagraph (D) of section 168(i)(15) (relating to
termination) is amended by striking <quote>December 31, 2007</quote> and
inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA6113B6DB1824AF4A386C4A6BF4600E6"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2007.</text>
</subsection></section><section id="HEC76B72602774C84A753D2B2776F06F5"><enum>318.</enum><header>Expensing of
environmental remediation costs</header>
<subsection id="H0E9EEEC28B964C67994C473DD10100A9"><enum>(a)</enum><header>In
general</header><text>Subsection (h) of section 198 (relating to termination)
is amended by striking <quote>December 31, 2007</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H99FAC0C4A8A446E087D99F8BCF8BD096"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
expenditures paid or incurred after December 31, 2007.</text>
</subsection></section><section id="H5396173E31EC490BB1215B6096547B98" section-type="subsequent-section"><enum>319.</enum><header>Extension of work
opportunity tax credit for Hurricane Katrina employees</header>
<subsection id="H0E38404C73BF4802BDE5A2C700086511"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 201(b) of the Katrina Emergency Tax Relief Act of 2005 is amended by
striking <quote>2-year</quote> and inserting <quote>4-year</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7357A9D0A4D641A3A2902E00BAA3A6D7"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
subsection (a) shall apply to individuals hired after August 27, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id4FF8F890626347209FC104AF7E9AF973"><enum>320.</enum><header>Extension of increased
rehabilitation credit for structures in the Gulf Opportunity Zone</header>
<subsection commented="no" display-inline="no-display-inline" id="id0DB3E4EA43484AEE9237F6E42919047D"><enum>(a)</enum><header>In
general</header><text>Subsection (h) of section 1400N is amended by striking
<quote>December 31, 2008</quote> and inserting <quote>December 31,
2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDEFEB2D7E08941E3B54E2A0572784B04"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
expenditures paid or incurred after the date of the enactment of this
Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H62DFA24C74D843F18437183F015619B5" section-type="subsequent-section"><enum>321.</enum><header display-inline="yes-display-inline">Enhanced deduction for qualified computer
contributions</header>
<subsection commented="no" display-inline="no-display-inline" id="HD9AC8A123B0A493C94C9E2BBC27BBD6B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (G) of section 170(e)(6) is
amended by striking <quote>December 31, 2007</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H187803FACB264AE8ACDA02D836A14740"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to contributions made during taxable years beginning
after December 31, 2007.</text>
</subsection></section><section commented="no" id="H931D0C136D8043D3833C66D87F9DAFE5"><enum>322.</enum><header>Tax incentives for
investment in the District of Columbia</header>
<subsection commented="no" id="H196F2906250C4B00A222C2D12900BA9D"><enum>(a)</enum><header>Designation of
Zone</header>
<paragraph commented="no" id="H5BEA17C6378B4DA3B7565FE234B8F9B0"><enum>(1)</enum><header>In
general</header><text>Subsection (f) of section 1400 is amended by striking
<quote>2007</quote> both places it appears and inserting
<quote>2009</quote>.</text>
</paragraph><paragraph commented="no" id="H45ADB3F6168041ED8083DF9CF66DC0F6"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
periods beginning after December 31, 2007.</text>
</paragraph></subsection><subsection commented="no" id="HCDAF4DCFA11249F48104FFE5356C1B63"><enum>(b)</enum><header>Tax-Exempt Economic
Development Bonds</header>
<paragraph commented="no" id="H7273B7C28D2F471980BC701CBF9F1117"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 1400A is amended by striking
<quote>2007</quote> and inserting <quote>2009</quote>.</text>
</paragraph><paragraph commented="no" id="HAAF30B606B7D4FECBC4BA2BFCE55D968"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to bonds
issued after December 31, 2007.</text>
</paragraph></subsection><subsection commented="no" id="H011B3CD91FF944948F2501F3AE81F9C9"><enum>(c)</enum><header>Zero Percent Capital
Gains Rate</header>
<paragraph commented="no" id="H2EDA14BD2D2845E68457BDE6AB7F343E"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 1400B is amended by striking
<quote>2008</quote> each place it appears and inserting
<quote>2010</quote>.</text>
</paragraph><paragraph commented="no" id="H4531BC82E5DC4545B424E4D8A4ABA86"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="HE57F566AF1F4434591FBE69E5D750137"><enum>(A)</enum><text>Section 1400B(e)(2) is
amended—</text>
<clause commented="no" id="H1813AAC4AA6047DA9FEE39D3FB18F300"><enum>(i)</enum><text>by striking
<quote>2012</quote> and inserting <quote>2014</quote>, and</text>
</clause><clause commented="no" id="H57FCF646523049EDA0AC4BED61083E73"><enum>(ii)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">2012</header-in-text></quote> in the heading thereof and inserting
<quote><header-in-text level="paragraph" style="OLC">2014</header-in-text></quote>.</text>
</clause></subparagraph><subparagraph commented="no" id="HB380444F95FA48F592869683B200A4A0"><enum>(B)</enum><text>Section 1400B(g)(2) is
amended by striking <quote>2012</quote> and inserting
<quote>2014</quote>.</text>
</subparagraph><subparagraph commented="no" id="H39AC0012232A44079600DD4891C27392"><enum>(C)</enum><text>Section 1400F(d) is
amended by striking <quote>2012</quote> and inserting
<quote>2014</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" id="H768B9AAB166544788D5EABCC072305A5"><enum>(3)</enum><header>Effective
dates</header>
<subparagraph commented="no" id="H2F7DB54884404EC1BBFB0369C1B949F"><enum>(A)</enum><header>Extension</header><text>The
amendments made by paragraph (1) shall apply to acquisitions after December 31,
2007.</text>
</subparagraph><subparagraph commented="no" id="HCE3370C9E99D4B6CB1EE71B3E9D514D2"><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 commented="no" id="H0F51FD921A92428898D64553AD3905DA"><enum>(d)</enum><header>First-Time Homebuyer
Credit</header>
<paragraph commented="no" id="H1EB24B93F95343E7A4D71EFC488F6E14"><enum>(1)</enum><header>In
general</header><text>Subsection (i) of section 1400C is amended by striking
<quote>2008</quote> and inserting <quote>2010</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDE1CB30F230D42CC8F445F96656FA7E"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
property purchased after December 31, 2007.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idF93030F611B642B38D032280D3BF90B6" section-type="subsequent-section"><enum>323.</enum><header display-inline="yes-display-inline">Enhanced charitable deductions for
contributions of food inventory</header>
<subsection commented="no" display-inline="no-display-inline" id="id055259AC933E44CBAE26D17F4F3E9031"><enum>(a)</enum><header display-inline="yes-display-inline">Increased amount of deduction</header>
<paragraph commented="no" display-inline="no-display-inline" id="id3140E993CAC0430F86135EAE13E8215A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (iv) of section 170(e)(3)(C)
(relating to termination) is amended by striking <quote>December 31,
2007</quote> and inserting <quote>December 31, 2009</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id791312C4A42843F8AFF1AE583EA93C22"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this subsection shall apply to contributions made after December 31,
2007.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9398D16C9AD340619774A27743862E07"><enum>(b)</enum><header display-inline="yes-display-inline">Temporary suspension of limitations on
charitable contributions</header>
<paragraph commented="no" display-inline="no-display-inline" id="idE33FC26EE92F4ACCBB88F341972D178F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 170(b) is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id51E416E220114EB4A49A9714351843F5" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idA7F4638988B345BF9494FA44027EFCBC"><enum>(3)</enum><header display-inline="yes-display-inline">Temporary suspension of limitations on
charitable contributions</header><text display-inline="yes-display-inline">In
the case of a qualified farmer or rancher (as defined in paragraph (1)(E)(v)),
any charitable contribution of food—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id2AE2B764E179442AA18DA3B6A8B57FE9"><enum>(A)</enum><text display-inline="yes-display-inline">to which subsection (e)(3)(C) applies
(without regard to clause (ii) thereof), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAF5F02642E694A7797ACADD739FADFB0"><enum>(B)</enum><text display-inline="yes-display-inline">which is made during the period beginning
on the date of the enactment of this paragraph and before January 1,
2009,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">shall
be treated for purposes of paragraph (1)(E) or (2)(B), whichever is applicable,
as if it were a qualified conservation contribution which is made by a
qualified farmer or rancher and which otherwise meets the requirements of such
paragraph.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAFD0F5AE3A4249C7BC30E710E547D131"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this subsection shall apply to taxable years ending after the date of the
enactment of this Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id664C01DA465844B6A5240B24BD744427" section-type="subsequent-section"><enum>324.</enum><header display-inline="yes-display-inline">Extension of enhanced charitable deduction
for contributions of book inventory</header>
<subsection commented="no" display-inline="no-display-inline" id="idC4A2FB5E571A477C9E0ED77EDC21898B"><enum>(a)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline">Clause (iv) of section 170(e)(3)(D)
(relating to termination) is amended by striking <quote>December 31,
2007</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id569DADF9588C4502A2BDEA701344161D"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">Clause (iii) of section 170(e)(3)(D)
(relating to certification by donee) is amended by inserting <quote>of
books</quote> after <quote>to any contribution</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id78B2D39083D54E4F8BDFBB61470439C6"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to contributions made after December 31, 2007.</text>
</subsection></section><section id="id61738961F3B24A6B8D44A4849632B341"><enum>325.</enum><header>Extension and
modification of duty suspension on wool products; wool research fund; wool duty
refunds</header>
<subsection id="ID84c64b9eacc849d0ba202fe2edd55d1d"><enum>(a)</enum><header>Extension of temporary
duty reductions</header><text>Each of the following headings of the Harmonized
Tariff Schedule of the United States is amended by striking the date in the
effective period column and inserting <quote>12/31/2014</quote>:</text>
<paragraph id="ID6d9ae43abfd043ea9299d69337438943"><enum>(1)</enum><text>Heading 9902.51.11
(relating to fabrics of worsted wool).</text>
</paragraph><paragraph id="ID0a1c950131c54144936ed7ce73d3bede"><enum>(2)</enum><text>Heading 9902.51.13
(relating to yarn of combed wool).</text>
</paragraph><paragraph id="ID597a146ddd42465bbd5b19d27d421844"><enum>(3)</enum><text>Heading 9902.51.14
(relating to wool fiber, waste, garnetted stock, combed wool, or wool
top).</text>
</paragraph><paragraph id="ID2f0da68627914a578531bf342a9de30c"><enum>(4)</enum><text>Heading 9902.51.15
(relating to fabrics of combed wool).</text>
</paragraph><paragraph id="ID9636a20ec995439eb23ea192ca92b155"><enum>(5)</enum><text>Heading 9902.51.16
(relating to fabrics of combed wool).</text>
</paragraph></subsection><subsection id="ID0862dfacc2204e91bafb4e0482a60028"><enum>(b)</enum><header>Extension of duty
refunds and wool research trust fund</header>
<paragraph id="IDb43d0bfd066743118d44ece659d4c245"><enum>(1)</enum><header>In
general</header><text>Section 4002(c) of the Wool Suit and Textile Trade
Extension Act of 2004 (<external-xref legal-doc="public-law" parsable-cite="pl/108/429">Public Law 108–429</external-xref>; 118 Stat. 2603) is amended—</text>
<subparagraph id="ID992e332746d8434683964ebd98bb398b"><enum>(A)</enum><text>in paragraph (3)(C), by
striking <quote>2010</quote> and inserting <quote>2015</quote>; and</text>
</subparagraph><subparagraph id="IDd0bccf80dd104bc28e3b3c4214400ed5"><enum>(B)</enum><text>in paragraph (6)(A), by
striking <quote>through 2009</quote> and inserting <quote>through
2014</quote>.</text>
</subparagraph></paragraph><paragraph id="IDd936c05b387d47e0bf2e3c0c383f16db"><enum>(2)</enum><header>Sunset</header><text>Section
506(f) of the Trade and Development Act of 2000 (Public 106–200; 114 Stat. 303
(<external-xref legal-doc="usc" parsable-cite="usc/7/7101">7 U.S.C. 7101</external-xref> note)) is amended by striking <quote>2010</quote> and inserting
<quote>2015</quote>.</text>
</paragraph></subsection></section><enum>IV</enum><header>Extension of tax
administration provisions</header>
<section commented="no" id="HD8AA2CDE5BDF4DA5B94635B915B26790"><enum>401.</enum><header>Permanent authority
for undercover operations</header>
<subsection commented="no" id="id1256488E6E674445A43395F8F5471ED7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 7608(c)
(relating to rules relating to undercover operations) is amended by striking
paragraph (6).</text>
</subsection><subsection commented="no" id="id866CB13866394E5D840EF2D24101DB8C"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to operations
conducted after the date of the enactment of this Act.</text>
</subsection></section><section id="HCCBC84DF674B459D987009A68BBADAB3"><enum>402.</enum><header>Permanent authority
for disclosure of information relating to terrorist activities</header>
<subsection id="id7FFC37FAD275446E8D524A87A9103E7B"><enum>(a)</enum><header>Disclosure of return
information To apprise appropriate officials of terrorist
activities</header><text>Subparagraph (C) of section 6103(i)(3) is amended by
striking clause (iv).</text>
</subsection><subsection id="H861F113D5C6847F300E85DE3251E0251"><enum>(b)</enum><header>Disclosure upon request
of information relating to terrorist activities</header><text>Paragraph (7) of
section 6103(i) is amended by striking subparagraph (E).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD5A4373760014A61B3256D4C810056EF"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
disclosures after the date of the enactment of this Act.</text>
</subsection></section><enum>V</enum><header>Additional tax relief and
other tax provisions</header>
<subtitle id="id99A72ADE9F6640FA97C82C6D0ABFC26A"><enum>A</enum><header>General
provisions</header>
<section id="id0A08F726193F4F51B5D0D51B092B9092" section-type="subsequent-section"><enum>501.</enum><header>$8,500 income
threshold used to calculate refundable portion of child tax credit</header>
<subsection id="idA4FE12AEC23A4F4C950CD492C70E1C92"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 24(d) is
amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idFBA84DF2D7F549E8B703237D72C1BB70" reported-display-style="italic" style="OLC">
<paragraph id="id5431B105A1584128BF7C16F531C5E02F"><enum>(4)</enum><header>Special rule for
2008</header><text>Notwithstanding paragraph (3), in the case of any taxable
year beginning in 2008, the dollar amount in effect for such taxable year under
paragraph (1)(B)(i) shall be
$8,500.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id942903423C6A4EADA5E42CBFFF5A4A55"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="H48F42FBEE3234A1EB7D36DAB6DF762CF"><enum>502.</enum><header>Provisions related to
film and television productions</header>
<subsection display-inline="no-display-inline" id="id67702DC1BEB24E7BB6AADD1ACBDBC885"><enum>(a)</enum><header>Extension of expensing
rules for qualified film and television productions</header><text display-inline="yes-display-inline">Section 181(f) (relating to termination) is
amended by striking <quote>December 31, 2008</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</subsection><subsection id="HB7C1D15E004F40CA974967DEDA5796BB"><enum>(b)</enum><header>Modification of
limitation on expensing</header><text display-inline="yes-display-inline">Subparagraph (A) of section 181(a)(2) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H9BEB7C65593C4479A0481FC45DF0D7BE" reported-display-style="italic" style="OLC">
<subparagraph id="HE0DDB64F3699417AAABA6C869D5244D"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) shall
not apply to so much of the aggregate cost of any qualified film or television
production as exceeds
$15,000,000.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HAF01C60D132447498307556DB7ED0000"><enum>(c)</enum><header>Modifications to
deduction for domestic activities</header>
<paragraph id="HAA122D8AA2A947390056AC00AAF2669B"><enum>(1)</enum><header>Determination of W–2
wages</header><text>Paragraph (2) of section 199(b) is amended by adding at the
end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H9AB2719D70F443FE96DC9F6EBCBEE53" reported-display-style="italic" style="OLC">
<subparagraph id="H6702B1DDCCEF4C3EBBB8BCE359C174ED"><enum>(D)</enum><header>Special rule for
qualified film</header><text display-inline="yes-display-inline">In the case of
a qualified film, such term shall include compensation for services performed
in the United States by actors, production personnel, directors, and
producers.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H912ED6814F5649B99C62767534A42000"><enum>(2)</enum><header>Definition of qualified
film</header><text>Paragraph (6) of section 199(c) is amended by adding at the
end the following: <quote>A qualified film shall include any copyrights,
trademarks, or other intangibles with respect to such film. The methods and
means of distributing a qualified film shall not affect the availability of the
deduction under this section.</quote>.</text>
</paragraph><paragraph id="HD77AAB86E6D947D7AB85D1B07354D1F0"><enum>(3)</enum><header>Partnerships</header><text>Subparagraph
(A) of section 199(d)(1) is amended by striking <quote>and</quote> at the end
of clause (ii), by striking the period at the end of clause (iii) and inserting
<quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HEE0B60AA2F9E48D5B5856B93E3BB579" reported-display-style="italic" style="OLC">
<clause id="H116DFDD297664872BE5981FCD12700C0"><enum>(iv)</enum><text>in the case of each
partner of a partnership, or shareholder of an S corporation, who owns
(directly or indirectly) at least 20 percent of the capital interests in such
partnership or of the stock of such S corporation—</text>
<subclause id="HEA4BAFD83FBE4B40A835A529AE9FFBB8"><enum>(I)</enum><text>such partner or
shareholder shall be treated as having engaged directly in any film produced by
such partnership or S corporation, and</text>
</subclause><subclause id="H591AC914CA6A42E4AF62D31CE300C339"><enum>(II)</enum><text>such partnership or S
corporation shall be treated as having engaged directly in any film produced by
such partner or
shareholder.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id29DA729B14F94E5F8AC0E8EE6D4CB751"><enum>(d)</enum><header>Conforming
amendment</header><text>Section 181(d)(3)(A) is amended by striking
<quote>actors</quote> and all that follows and inserting <quote>actors,
production personnel, directors, and producers.</quote>.</text>
</subsection><subsection id="H3874A4B046EF454FAF73FC683C17ED8"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="H934F53DAE46545169ED585D2C6566BF3"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to qualified film and television
productions commencing after December 31, 2007.</text>
</paragraph><paragraph id="H74B8BBF1374D4ADCA262A3F1CCDEE800"><enum>(2)</enum><header>Deduction</header><text>The
amendments made by subsection (c) shall apply to taxable years beginning after
December 31, 2007.</text>
</paragraph></subsection></section><section id="id10962EB646654E36B8D28BF8C5C05303" section-type="subsequent-section"><enum>503.</enum><header>Exemption from
excise tax for certain wooden arrows designed for use by children</header>
<subsection id="id4008998700344A2AA3B1899D5D0A783B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 4161(b) is amended by redesignating subparagraph (B) as subparagraph
(C) and by inserting after subparagraph (A) the following new
subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7DC68C856AF946A8AC3B6CF62EA8F419" reported-display-style="italic" style="OLC">
<subparagraph id="IDb091b11f4aa443b68b7cfedb8e3a74c2"><enum>(B)</enum><header>Exemption for certain
wooden arrow shafts</header><text>Subparagraph (A) shall not apply to any shaft
consisting of all natural wood with no laminations or artificial means of
enhancing the spine of such shaft (whether sold separately or incorporated as
part of a finished or unfinished product) of a type used in the manufacture of
any arrow which after its assembly—</text>
<clause id="ID3031ec0a4ccf4f39b07a31924a57fb81"><enum>(i)</enum><text>measures
<fraction>5/16</fraction> of an inch or less in diameter, and</text>
</clause><clause id="ID06e60d59991d45bb99b384628f236f71"><enum>(ii)</enum><text>is not suitable for use
with a bow described in paragraph
(1)(A).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id7559899790D04E9ABBB33A5A05EA713B"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to shafts
first sold after the date of enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id63A049EE523841F1A9F6F022595EAFB5" section-type="subsequent-section"><enum>504.</enum><header display-inline="yes-display-inline">Income averaging for amounts received in
connection with the Exxon Valdez litigation</header>
<subsection commented="no" display-inline="no-display-inline" id="idC9AADD5F89FC4B57974A8693814E975E"><enum>(a)</enum><header display-inline="yes-display-inline">Income averaging of amounts received from
the Exxon Valdez litigation</header><text>For purposes of section 1301 of the
Internal Revenue Code of 1986—</text>
<paragraph id="id4129D9439EFB49ED9812499B5454EB61"><enum>(1)</enum><text>any qualified taxpayer
who receives any qualified settlement income in any taxable year shall be
treated as engaged in a fishing business (determined without regard to the
commercial nature of the business), and</text>
</paragraph><paragraph id="idE7DBF7518D85424BBDE60FE0C937B107"><enum>(2)</enum><text>such qualified settlement
income shall be treated as income attributable to such a fishing business for
such taxable year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id064418A27C4D44579C182557D51EF910"><enum>(b)</enum><header display-inline="yes-display-inline">Contributions of amounts received to
retirement accounts</header>
<paragraph commented="no" display-inline="no-display-inline" id="idDADB82709E274B80B34281E56EF2915D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any qualified taxpayer who receives
qualified settlement income during the taxable year may, at any time before the
end of the taxable year in which such income was received, make one or more
contributions to an eligible retirement plan of which such qualified taxpayer
is a beneficiary in an aggregate amount not to exceed the lesser of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3D2183521AC8434E8938D8B7D5FEF330"><enum>(A)</enum><text display-inline="yes-display-inline">$100,000 (reduced by the amount of
qualified settlement income contributed to an eligible retirement plan in prior
taxable years pursuant to this subsection), or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDE5BE802B84549059AE2E8895F8CE7D4"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of qualified settlement income
received by the individual during the taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3FADBFACAE3A44DC9CA3C5A34F0D1DE1"><enum>(2)</enum><header display-inline="yes-display-inline">Time when contributions deemed
made</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), a qualified taxpayer shall be deemed to have made a contribution
to an eligible retirement plan on the last day of the taxable year in which
such income is received if the contribution is made on account of such taxable
year and is made not later than the time prescribed by law for filing the
return for such taxable year (not including extensions thereof).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE3B9D65AB4964D598A36143AEEFE8230"><enum>(3)</enum><header display-inline="yes-display-inline">Treatment of contributions to eligible
retirement plans</header><text display-inline="yes-display-inline">For purposes
of the Internal Revenue Code of 1986, if a contribution is made pursuant to
paragraph (1) with respect to qualified settlement income, then—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id87345F5710DD450EA3F1CB0E480528B3"><enum>(A)</enum><text display-inline="yes-display-inline">except as provided in paragraph (4)—</text>
<clause commented="no" display-inline="no-display-inline" id="id0C854B5C22D64DBFB4C601019D3EC820"><enum>(i)</enum><text display-inline="yes-display-inline">to the extent of such contribution, the
qualified settlement income shall not be included in taxable income, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7FD56B6DEA4C4CAC8FF5BBEBF09FD8ED"><enum>(ii)</enum><text display-inline="yes-display-inline">for purposes of section 72 of such Code,
such contribution shall not be considered to be investment in the
contract,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB904ED9C5CF04DE5A5956900D2868940"><enum>(B)</enum><text display-inline="yes-display-inline">the qualified taxpayer shall, to the extent
of the amount of the contribution, be treated—</text>
<clause commented="no" display-inline="no-display-inline" id="id02059CED8FB94C91BF5F93BF95FEEB65"><enum>(i)</enum><text display-inline="yes-display-inline">as having received the qualified settlement
income—</text>
<subclause commented="no" display-inline="no-display-inline" id="id214B0B0F11C04CF0B21D97231D261AE8"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a contribution to an
individual retirement plan (as defined under section 7701(a)(37) of such Code),
in a distribution described in section 408(d)(3) of such Code, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id861863DC9C2745DA9B42FE3EB1D64527"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of any other eligible
retirement plan, in an eligible rollover distribution (as defined under section
402(f)(2) of such Code), and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id663F1A975B9D4F4290DDE0526ADE1D46"><enum>(ii)</enum><text display-inline="yes-display-inline">as having transferred the amount to the
eligible retirement plan in a direct trustee to trustee transfer within 60 days
of the distribution,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id874A94FBFF6949CEBAB97427C2CCC6A4"><enum>(C)</enum><text>section 408(d)(3)(B) of
the Internal Revenue Code of 1986 shall not apply with respect to amounts
treated as a rollover under this paragraph, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0D66F08198214926B447B6065911C2E0"><enum>(D)</enum><text>section 408A(c)(3)(B) of
the Internal Revenue Code of 1986 shall not apply with respect to amounts
contributed to a Roth IRA (as defined under section 408A(b) of such Code) or a
designated Roth contribution to an applicable retirement plan (within the
meaning of section 402A of such Code) under this paragraph.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8B98939C44004388BB9CE1E03D405204"><enum>(4)</enum><header display-inline="yes-display-inline">Special rule for Roth IRAs and Roth
<enum-in-header>401(k)</enum-in-header>s</header><text display-inline="yes-display-inline">For purposes of the Internal Revenue Code
of 1986, if a contribution is made pursuant to paragraph (1) with respect to
qualified settlement income to a Roth IRA (as defined under section 408A(b) of
such Code) or as a designated Roth contribution to an applicable retirement
plan (within the meaning of section 402A of such Code), then—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id01694BCDB2EF4FE8B8DF48AB70F83963"><enum>(A)</enum><text display-inline="yes-display-inline">the qualified settlement income shall be
includible in taxable income, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id528820DC9D7F46D88DC7FDF8ACB54633"><enum>(B)</enum><text display-inline="yes-display-inline">for purposes of section 72 of such Code,
such contribution shall be considered to be investment in the contract.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2E495D72D8A1494ABC3DDB5C37EAFC2D"><enum>(5)</enum><header display-inline="yes-display-inline">Eligible retirement plan</header><text display-inline="yes-display-inline">For purpose of this subsection, the term
<term>eligible retirement plan</term> has the meaning given such term under
<external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(c)(8)(B)</external-xref> of the Internal Revenue Code of 1986.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id227789E96E3D488A9D29E5467CE7B1AE"><enum>(c)</enum><header display-inline="yes-display-inline">Treatment of qualified settlement income
under employment taxes</header>
<paragraph commented="no" display-inline="no-display-inline" id="id62590B4636BC47509B82E313ED34BEA2"><enum>(1)</enum><header>SECA</header><text display-inline="yes-display-inline">For purposes of chapter 2 of the Internal
Revenue Code of 1986 and section 211 of the Social Security Act, no portion of
qualified settlement income received by a qualified taxpayer shall be treated
as self-employment income.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4EA5AD4446444E55B49B7EE27A7BB2E1"><enum>(2)</enum><header>FICA</header><text>For
purposes of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/21">chapter 21</external-xref> of the Internal Revenue Code of 1986 and section 209 of
the Social Security Act, no portion of qualified settlement income received by
a qualified taxpayer shall be treated as wages.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF00FED34BF3C474ABCBCE1E493A07972"><enum>(d)</enum><header display-inline="yes-display-inline">Qualified taxpayer</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>qualified taxpayer</term> means—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id03B6F2DD68FD4A028289E44BADF88174"><enum>(1)</enum><text display-inline="yes-display-inline">any individual who is a plaintiff in the
civil action In re Exxon Valdez, No. 89–095–CV (HRH) (Consolidated) (D.
Alaska); or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB22121562E0142DA82B1AFFC45F3E8A0"><enum>(2)</enum><text display-inline="yes-display-inline">any individual who is a beneficiary of the
estate of such a plaintiff who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id198EDF6F39224D898719A8BDC018B0B8"><enum>(A)</enum><text display-inline="yes-display-inline">acquired the right to receive qualified
settlement income from that plaintiff; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id40938948A39B4520B789BB24EB598348"><enum>(B)</enum><text display-inline="yes-display-inline">was the spouse or an immediate relative of
that plaintiff.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id36DEDF01892F4394B4906ACB28514B70"><enum>(e)</enum><header display-inline="yes-display-inline">Qualified settlement income</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>qualified settlement income</term> means any interest and punitive damage
awards which are—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id9C4EC050AE3D4D61B3360E464F8E4486"><enum>(1)</enum><text display-inline="yes-display-inline">otherwise includible in taxable income,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id365D4F37E5C54B24A9417017B92F7834"><enum>(2)</enum><text display-inline="yes-display-inline">received (whether as lump sums or periodic
payments) in connection with the civil action In re Exxon Valdez, No. 89–095–CV
(HRH) (Consolidated) (D. Alaska) (whether pre- or post-judgment and whether
related to a settlement or judgment).</text>
</paragraph></subsection></section><section id="IDDDAFA4D02BB146169F5279D93084F4B5"><enum>505.</enum><header>Certain farming
business machinery and equipment treated as 5-year property</header>
<subsection id="ID55A1DDE502FF4601B69AEC8CF8425049"><enum>(a)</enum><header>In
General</header><text>Section 168(e)(3)(B) (defining 5-year property) is
amended by striking <quote>and</quote> at the end of clause (v), by striking
the period at the end of clause (vi)(III) and inserting <quote>, and</quote>,
and by inserting after clause (vi) the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDDEEB8ED966D346C08619FEA28502A288" reported-display-style="italic" style="OLC">
<clause id="IDE97F961E02194A70903256CC87ACE428"><enum>(vii)</enum><text>any machinery or
equipment (other than any grain bin, cotton ginning asset, fence, or other land
improvement) which is used in a farming business (as defined in section
263A(e)(4)), the original use of which commences with the taxpayer after
December 31, 2008, and which is placed in service before January 1,
2010.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID1F9113B7C8414A8A9FDEB5129BA42BEE"><enum>(b)</enum><header>Alternative
System</header><text>The table contained in section 168(g)(3)(B) (relating to
special rule for certain property assigned to classes) is amended by inserting
after the item relating to subparagraph (B)(iii) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="IDBDD9206BF31A46A3975D5AADCFB1B729" reported-display-style="italic" style="OLC">
<table line-rules="no-gen" rule-weights="4.4.4.4.4.17">
<ttitle></ttitle>
<tgroup cols="2" grid-typeface="1.1" thead-tbody-ldg-size="10.10.10" ttitle-size="0"><colspec coldef="txt" colname="col1" colsep="0" min-data-value="50"></colspec><colspec coldef="txt" colname="col2" colsep="0" min-data-value="10"></colspec>
<thead>
<row><entry align="center" colname="col1"></entry><entry align="center" colname="col2"></entry>
</row>
</thead>
<tbody>
<row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="2">(B)(vii)</entry><entry colname="col2" entry-modify="fl-hang-hier-2">10</entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID411E29C2FA564CED96EDABE134D23DE0"><enum>(c)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9D8477112810463991ACBEED40A18E66" section-type="subsequent-section"><enum>506.</enum><header display-inline="yes-display-inline">Modification of penalty on understatement
of taxpayer’s liability by tax return preparer</header>
<subsection commented="no" display-inline="no-display-inline" id="HB8C8E970224047DD92443D5D7C853148"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (a) of section 6694 is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HAF11EF85843343728574CFE4F62000EE" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H8627BA7332254211832FC98E262269D8"><enum>(a)</enum><header display-inline="yes-display-inline">Understatement due to unreasonable
positions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCD63B3393A3B4BB3A4BE38603E476667"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If a tax return preparer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBDAB7C59AF6C4FD1BEAA5877EA7C57D9"><enum>(A)</enum><text display-inline="yes-display-inline">prepares any return or claim of refund with
respect to which any part of an understatement of liability is due to a
position described in paragraph (2), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H81F122C900674C12A4E2F262BE6598E2"><enum>(B)</enum><text display-inline="yes-display-inline">knew (or reasonably should have known) of
the position,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">such
tax return preparer shall pay a penalty with respect to each such return or
claim in an amount equal to the greater of $1,000 or 50 percent of the income
derived (or to be derived) by the tax return preparer with respect to the
return or claim.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAE0C8E1B626D448788CE683E17D0245B"><enum>(2)</enum><header display-inline="yes-display-inline">Unreasonable position</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H57F5347712C54BB9A44370DFCC1C2F31"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this
paragraph, a position is described in this paragraph unless there is or was
substantial authority for the position.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD6DCD982FC5947A5BDBB3FD090F727BF"><enum>(B)</enum><header display-inline="yes-display-inline">Disclosed positions</header><text display-inline="yes-display-inline">If the position was disclosed as provided
in section 6662(d)(2)(B)(ii)(I) and is not a position to which subparagraph (C)
applies, the position is described in this paragraph unless there is a
reasonable basis for the position.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2BA7FDAC571C4687B527E33C02B8168B"><enum>(C)</enum><header display-inline="yes-display-inline">Tax shelters and reportable
transactions</header><text display-inline="yes-display-inline">If the position
is with respect to a tax shelter (as defined in section 6662(d)(2)(C)(ii)) or a
reportable transaction to which section 6662A applies, the position is
described in this paragraph unless it is reasonable to believe that the
position would more likely than not be sustained on its merits.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB2D62A7671A34A928CDC6C681C99175F"><enum>(3)</enum><header display-inline="yes-display-inline">Reasonable cause exception</header><text display-inline="yes-display-inline">No penalty shall be imposed under this
subsection if it is shown that there is reasonable cause for the understatement
and the tax return preparer acted in good
faith.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3A928E4FC8F941098DD3D00EAAA5972"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5F7E2DC222EB4F59AACDE53224E28433"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a position other than a
position described in subparagraph (C) of section 6694(a)(2) of the Internal
Revenue Code of 1986 (as amended by this section), to returns prepared after
May 25, 2007, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H93638FAC93A14123871288CF3577A83F"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a position described in such
subparagraph (C), to returns prepared for taxable years ending after the date
of the enactment of this Act.</text>
</paragraph></subsection></section></subtitle><subtitle id="id7879F9ECDFED4C1A97850F336FBD219A"><enum>B</enum><header>Paul Wellstone and Pete
Domenici Mental Health Parity and Addiction Equity Act of 2008</header>
<section id="id21023D094B68488C97EFEF48A2AC15B8"><enum>511.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Paul Wellstone and Pete Domenici Mental Health Parity and
Addiction Equity Act of 2008</quote>.</text>
</section><section id="id4F44426EAE4C4A7688B3197EF48A7D77"><enum>512.</enum><header>Mental health
parity</header>
<subsection id="idADFD889BEDFC4B268509D93A58940E65"><enum>(a)</enum><header>Amendments to
ERISA</header><text>Section 712 of the <act-name parsable-cite="ERISA">Employee
Retirement Income Security Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/29/1185a">29 U.S.C. 1185a</external-xref>) is
amended—</text>
<paragraph id="id47EBA9478DE44F31948BA9929D87D779"><enum>(1)</enum><text>in subsection (a), by
adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8BDC20AE8AA44ED8A3F719E0EE23BC0B" reported-display-style="italic" style="OLC">
<paragraph id="idEB004C92EFA5424F9B99DB96B67619E6"><enum>(3)</enum><header>Financial requirements
and treatment limitations</header>
<subparagraph id="idB642751F645343B18720F35B8DCEC6F7"><enum>(A)</enum><header>In
general</header><text>In the case of a group health plan (or health insurance
coverage offered in connection with such a plan) that provides both medical and
surgical benefits and mental health or substance use disorder benefits, such
plan or coverage shall ensure that—</text>
<clause id="id2577BF4EE9E24AECB1C85E176CD59942"><enum>(i)</enum><text display-inline="yes-display-inline">the financial requirements applicable to
such mental health or substance use disorder benefits are no more restrictive
than the predominant financial requirements applied to substantially all
medical and surgical benefits covered by the plan (or coverage), and there are
no separate cost sharing requirements that are applicable only with respect to
mental health or substance use disorder benefits; and</text>
</clause><clause id="idFA3E211164B04D849C04B8706862288B"><enum>(ii)</enum><text display-inline="yes-display-inline">the treatment limitations applicable to
such mental health or substance use disorder benefits are no more restrictive
than the predominant treatment limitations applied to substantially all medical
and surgical benefits covered by the plan (or coverage) and there are no
separate treatment limitations that are applicable only with respect to mental
health or substance use disorder benefits.</text>
</clause></subparagraph><subparagraph id="idBCD2C000FD1B410C9950971BB4999DDB"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this paragraph:</text>
<clause id="id760AD6F07F2D4B51B7BFEB5AD5958D3F"><enum>(i)</enum><header>Financial
requirement</header><text display-inline="yes-display-inline">The term
<quote>financial requirement</quote> includes deductibles, copayments,
coinsurance, and out-of-pocket expenses, but excludes an aggregate lifetime
limit and an annual limit subject to paragraphs (1) and (2),</text>
</clause><clause id="id790C1D86006742BA8CE801FABC815776"><enum>(ii)</enum><header>Predominant</header><text display-inline="yes-display-inline">A financial requirement or treatment limit
is considered to be predominant if it is the most common or frequent of such
type of limit or requirement.</text>
</clause><clause id="id1063A2B6375D44009196D0F9AD8ECB5E"><enum>(iii)</enum><header>Treatment
limitation</header><text display-inline="yes-display-inline">The term
<term>treatment limitation</term> includes limits on the frequency of
treatment, number of visits, days of coverage, or other similar limits on the
scope or duration of treatment.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1334411159BB4695A0CA0366FD1CB0DB"><enum>(4)</enum><header display-inline="yes-display-inline">Availability of plan
information</header><text display-inline="yes-display-inline">The criteria for
medical necessity determinations made under the plan with respect to mental
health or substance use disorder benefits (or the health insurance coverage
offered in connection with the plan with respect to such benefits) shall be
made available by the plan administrator (or the health insurance issuer
offering such coverage) in accordance with regulations to any current or
potential participant, beneficiary, or contracting provider upon request. The
reason for any denial under the plan (or coverage) of reimbursement or payment
for services with respect to mental health or substance use disorder benefits
in the case of any participant or beneficiary shall, on request or as otherwise
required, be made available by the plan administrator (or the health insurance
issuer offering such coverage) to the participant or beneficiary in accordance
with regulations.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id866C0B909DA04257BA6E44442FFB9FA5"><enum>(5)</enum><header>Out-of-network
providers</header><text display-inline="yes-display-inline">In the case of a
plan or coverage that provides both medical and surgical benefits and mental
health or substance use disorder benefits, if the plan or coverage provides
coverage for medical or surgical benefits provided by out-of-network providers,
the plan or coverage shall provide coverage for mental health or substance use
disorder benefits provided by out-of-network providers in a manner that is
consistent with the requirements of this
section.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idDAE3CBA6F2124DDB87BCED740A69CFA7"><enum>(2)</enum><text>in subsection (b), by
amending paragraph (2) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id21E8BEC615BF4CD7993BA62EE90E6DFB" reported-display-style="italic" style="OLC">
<paragraph id="idA3C3029420C84D98800BF6917B07C350"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a group health plan (or
health insurance coverage offered in connection with such a plan) that provides
mental health or substance use disorder benefits, as affecting the terms and
conditions of the plan or coverage relating to such benefits under the plan or
coverage, except as provided in subsection
(a).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id252FF21F082D4F8F93A616C5C9126AE4"><enum>(3)</enum><text>in subsection (c)—</text>
<subparagraph id="idF74515D504F84158B7790DA842262E59"><enum>(A)</enum><text>in paragraph
(1)(B)—</text>
<clause id="idB21015F975184CA5B6DBC73247C05A83"><enum>(i)</enum><text>by inserting <quote>(or 1
in the case of an employer residing in a State that permits small groups to
include a single individual)</quote> after <quote>at least 2</quote> the first
place that such appears; and</text>
</clause><clause id="id326B621952F4476DA08E990807450F4A"><enum>(ii)</enum><text>by striking <quote>and
who employs at least 2 employees on the first day of the plan year</quote>;
and</text>
</clause></subparagraph><subparagraph id="idA28A48D695834BCC8DF4AEA42300DB5F"><enum>(B)</enum><text>by striking paragraph (2)
and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6539A6B8982F4B8A8A0834E100E9F4C2" reported-display-style="italic" style="OLC">
<paragraph id="idA756114567314631A39BCB1946B10A0D"><enum>(2)</enum><header>Cost Exemption</header>
<subparagraph id="id3414A11A116E4846ABD41A680B7CFBCE"><enum>(A)</enum><header>In
general</header><text>With respect to a group health plan (or health insurance
coverage offered in connection with such a plan), if the application of this
section to such plan (or coverage) results in an increase for the plan year
involved of the actual total costs of coverage with respect to medical and
surgical benefits and mental health and substance use disorder benefits under
the plan (as determined and certified under subparagraph (C)) by an amount that
exceeds the applicable percentage described in subparagraph (B) of the actual
total plan costs, the provisions of this section shall not apply to such plan
(or coverage) during the following plan year, and such exemption shall apply to
the plan (or coverage) for 1 plan year. An employer may elect to continue to
apply mental health and substance use disorder parity pursuant to this section
with respect to the group health plan (or coverage) involved regardless of any
increase in total costs.</text>
</subparagraph><subparagraph id="id26565F52EE6743AF96B907474546ADDC"><enum>(B)</enum><header>Applicable
percentage</header><text>With respect to a plan (or coverage), the applicable
percentage described in this subparagraph shall be—</text>
<clause id="id14492E04E5F645BB94DEB5D8CEC0CC19"><enum>(i)</enum><text>2 percent in the case of
the first plan year in which this section is applied; and</text>
</clause><clause id="id29C1C87F3E1141A7BBB9EFCF7F741787"><enum>(ii)</enum><text>1 percent in the case of
each subsequent plan year.</text>
</clause></subparagraph><subparagraph id="idDE59700D2F2F4D188B18CD97F2EA860F"><enum>(C)</enum><header>Determinations by
actuaries</header><text>Determinations as to increases in actual costs under a
plan (or coverage) for purposes of this section shall be made and certified by
a qualified and licensed actuary who is a member in good standing of the
American Academy of Actuaries. All such determinations shall be in a written
report prepared by the actuary. The report, and all underlying documentation
relied upon by the actuary, shall be maintained by the group health plan or
health insurance issuer for a period of 6 years following the notification made
under subparagraph (E).</text>
</subparagraph><subparagraph id="id04CF93E466574775AE6E42BAA1DF3EDF"><enum>(D)</enum><header>6-month
determinations</header><text>If a group health plan (or a health insurance
issuer offering coverage in connection with a group health plan) seeks an
exemption under this paragraph, determinations under subparagraph (A) shall be
made after such plan (or coverage) has complied with this section for the first
6 months of the plan year involved.</text>
</subparagraph><subparagraph id="idB359DB3DBEFB48568D90FAA03D2DA857"><enum>(E)</enum><header>Notification</header>
<clause id="id44178268099D45108729E153C7B790B7"><enum>(i)</enum><header>In
general</header><text>A group health plan (or a health insurance issuer
offering coverage in connection with a group health plan) that, based upon a
certification described under subparagraph (C), qualifies for an exemption
under this paragraph, and elects to implement the exemption, shall promptly
notify the Secretary, the appropriate State agencies, and participants and
beneficiaries in the plan of such election.</text>
</clause><clause id="idB74D56594CF94F1A870698978E6ED076"><enum>(ii)</enum><header>Requirement</header><text>A
notification to the Secretary under clause (i) shall include—</text>
<subclause id="id01452903B4384C658D26CB2697E71D7C"><enum>(I)</enum><text>a description of the
number of covered lives under the plan (or coverage) involved at the time of
the notification, and as applicable, at the time of any prior election of the
cost-exemption under this paragraph by such plan (or coverage);</text>
</subclause><subclause id="idF30A61F5547A4D76BCB94FA8E7CCD9FC"><enum>(II)</enum><text>for both the plan year
upon which a cost exemption is sought and the year prior, a description of the
actual total costs of coverage with respect to medical and surgical benefits
and mental health and substance use disorder benefits under the plan;
and</text>
</subclause><subclause id="idCFD59BD4BDDE4257BD3AFF6075018360"><enum>(III)</enum><text>for both the plan year
upon which a cost exemption is sought and the year prior, the actual total
costs of coverage with respect to mental health and substance use disorder
benefits under the plan.</text>
</subclause></clause><clause id="id5CCFADC6EF3946B3B7E2B759600848C8"><enum>(iii)</enum><header>Confidentiality</header><text display-inline="yes-display-inline">A notification to the Secretary under
clause (i) shall be confidential. The Secretary shall make available, upon
request and on not more than an annual basis, an anonymous itemization of such
notifications, that includes—</text>
<subclause id="idCCA053408BF546F6B385E730120C6515"><enum>(I)</enum><text>a breakdown of States by
the size and type of employers submitting such notification; and</text>
</subclause><subclause id="id303C0B06AF9F4151A454FB0EC951C9C2"><enum>(II)</enum><text>a summary of the data
received under clause (ii).</text>
</subclause></clause></subparagraph><subparagraph id="id1C2FEC7518854505A3A0363AB80954E5"><enum>(F)</enum><header>Audits by appropriate
agencies</header><text>To determine compliance with this paragraph, the
Secretary may audit the books and records of a group health plan or health
insurance issuer relating to an exemption, including any actuarial reports
prepared pursuant to subparagraph (C), during the 6 year period following the
notification of such exemption under subparagraph (E). A State agency receiving
a notification under subparagraph (E) may also conduct such an audit with
respect to an exemption covered by such
notification.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id49777562B71A48D4B5BFE15FD8B3AC22"><enum>(4)</enum><text>in subsection (e), by
striking paragraph (4) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id112E8A7B2AD741098738F90E7FFBDFA3" reported-display-style="italic" style="OLC">
<paragraph id="idE8E6BE609D464035B93FE61E8FAFFFB0"><enum>(4)</enum><header>Mental health
benefits</header><text>The term <quote>mental health benefits</quote> means
benefits with respect to services for mental health conditions, as defined
under the terms of the plan and in accordance with applicable Federal and State
law.</text>
</paragraph><paragraph id="id1F172A5ACC434F058525F0CF83349B5A"><enum>(5)</enum><header>Substance use disorder
benefits</header><text display-inline="yes-display-inline">The term
<quote>substance use disorder benefits</quote> means benefits with respect to
services for substance use disorders, as defined under the terms of the plan
and in accordance with applicable Federal and State
law.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id2B57EF28DAD946289C9B99A3C2D5421C"><enum>(5)</enum><text>by striking subsection
(f);</text>
</paragraph><paragraph id="idC74C9900A3F042C0862AF2A67ED27BD8"><enum>(6)</enum><text>by inserting after
subsection (e) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idBEE2765BA7C34BE8BC4F5374EEB6BC9F" reported-display-style="italic" style="OLC">
<subsection commented="no" id="id71A5F400C8FB4EAC8378E155C1445778"><enum>(f)</enum><header>Secretary
report</header><text display-inline="yes-display-inline">The Secretary shall,
by January 1, 2012, and every two years thereafter, submit to the appropriate
committees of Congress a report on compliance of group health plans (and health
insurance coverage offered in connection with such plans) with the requirements
of this section. Such report shall include the results of any surveys or audits
on compliance of group health plans (and health insurance coverage offered in
connection with such plans) with such requirements and an analysis of the
reasons for any failures to comply.</text>
</subsection><subsection commented="no" id="idE66ED273AA81430BBF13567A739567FA"><enum>(g)</enum><header>Notice and
assistance</header><text display-inline="yes-display-inline">The Secretary, in
cooperation with the Secretaries of Health and Human Services and Treasury, as
appropriate, shall publish and widely disseminate guidance and information for
group health plans, participants and beneficiaries, applicable State and local
regulatory bodies, and the National Association of Insurance Commissioners
concerning the requirements of this section and shall provide assistance
concerning such requirements and the continued operation of applicable State
law. Such guidance and information shall inform participants and beneficiaries
of how they may obtain assistance under this section, including, where
appropriate, assistance from State consumer and insurance
agencies.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id21E877DC04A8483CB1F2E14B37F9CB94"><enum>(7)</enum><text display-inline="yes-display-inline">by striking <quote>mental health
benefits</quote> and inserting <quote>mental health and substance use disorder
benefits</quote> each place it appears in subsections (a)(1)(B)(i), (a)(1)(C),
(a)(2)(B)(i), and (a)(2)(C); and</text>
</paragraph><paragraph display-inline="no-display-inline" id="id2CDA8630C9184A63BFF65725BB6220F5"><enum>(8)</enum><text display-inline="yes-display-inline">by striking <quote>mental health
benefits</quote> and inserting <quote>mental health or substance use disorder
benefits</quote> each place it appears (other than in any provision amended by
the previous paragraph).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="idE33FB394B02147A798FA67B2B088920E"><enum>(b)</enum><header>Amendments to Public
Health Service Act</header><text>Section 2705 of the
<act-name parsable-cite="ERISA">Public Health Service Act </act-name> (42
U.S.C. 300gg–5) is amended—</text>
<paragraph id="idA0566286262E49A1A50E2D81CD048DBB"><enum>(1)</enum><text>in subsection (a), by
adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE185CF2006E443B2B3E2D0C991241EC9" reported-display-style="italic" style="OLC">
<paragraph id="idEA18807A75D7449890F447962837085F"><enum>(3)</enum><header>Financial requirements
and treatment limitations</header>
<subparagraph id="idEC23E1CD694241C08CA7669299E3BA1C"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of a
group health plan (or health insurance coverage offered in connection with such
a plan) that provides both medical and surgical benefits and mental health or
substance use disorder benefits, such plan or coverage shall ensure
that—</text>
<clause id="idF70DB4004D794BFCA9FBBE2C9AAB1116"><enum>(i)</enum><text display-inline="yes-display-inline">the financial requirements applicable to
such mental health or substance use disorder benefits are no more restrictive
than the predominant financial requirements applied to substantially all
medical and surgical benefits covered by the plan (or coverage), and there are
no separate cost sharing requirements that are applicable only with respect to
mental health or substance use disorder benefits; and</text>
</clause><clause id="idC9B8C4D31E954AB69B864A3B2233FB7E"><enum>(ii)</enum><text display-inline="yes-display-inline">the treatment limitations applicable to
such mental health or substance use disorder benefits are no more restrictive
than the predominant treatment limitations applied to substantially all medical
and surgical benefits covered by the plan (or coverage) and there are no
separate treatment limitations that are applicable only with respect to mental
health or substance use disorder benefits.</text>
</clause></subparagraph><subparagraph id="id5FD8178C10ED4CD68942B7D5640601AC"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this paragraph:</text>
<clause id="id5675E9096DC94E7DAA8FDFA8FA5EC962"><enum>(i)</enum><header>Financial
requirement</header><text display-inline="yes-display-inline">The term
<quote>financial requirement</quote> includes deductibles, copayments,
coinsurance, and out-of-pocket expenses, but excludes an aggregate lifetime
limit and an annual limit subject to paragraphs (1) and (2).</text>
</clause><clause id="id0780F63E04F14EDFB092084884417C09"><enum>(ii)</enum><header>Predominant</header><text display-inline="yes-display-inline">A financial requirement or treatment limit
is considered to be predominant if it is the most common or frequent of such
type of limit or requirement.</text>
</clause><clause id="id1575B18BB2154BA9B28172C68DD5C25B"><enum>(iii)</enum><header>Treatment
limitation</header><text display-inline="yes-display-inline">The term
<term>treatment limitation</term> includes limits on the frequency of
treatment, number of visits, days of coverage, or other similar limits on the
scope or duration of treatment.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBF772E0FC1AB4ABEA6771CB1811958ED"><enum>(4)</enum><header display-inline="yes-display-inline">Availability of plan
information</header><text display-inline="yes-display-inline">The criteria for
medical necessity determinations made under the plan with respect to mental
health or substance use disorder benefits (or the health insurance coverage
offered in connection with the plan with respect to such benefits) shall be
made available by the plan administrator (or the health insurance issuer
offering such coverage) in accordance with regulations to any current or
potential participant, beneficiary, or contracting provider upon request. The
reason for any denial under the plan (or coverage) of reimbursement or payment
for services with respect to mental health or substance use disorder benefits
in the case of any participant or beneficiary shall, on request or as otherwise
required, be made available by the plan administrator (or the health insurance
issuer offering such coverage) to the participant or beneficiary in accordance
with regulations.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA29FC71BD4E54D67A0C64013758F0230"><enum>(5)</enum><header>Out-of-network
providers</header><text display-inline="yes-display-inline">In the case of a
plan or coverage that provides both medical and surgical benefits and mental
health or substance use disorder benefits, if the plan or coverage provides
coverage for medical or surgical benefits provided by out-of-network providers,
the plan or coverage shall provide coverage for mental health or substance use
disorder benefits provided by out-of-network providers in a manner that is
consistent with the requirements of this
section.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idCA573B614786421AB83D44D84E18F051"><enum>(2)</enum><text>in subsection (b), by
amending paragraph (2) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0F6F8802A08C43D786F69551E6B3F315" reported-display-style="italic" style="OLC">
<paragraph id="idCF85BD6895D8400788427A916738FC2F"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a group health plan (or
health insurance coverage offered in connection with such a plan) that provides
mental health or substance use disorder benefits, as affecting the terms and
conditions of the plan or coverage relating to such benefits under the plan or
coverage, except as provided in subsection
(a).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE0B4A6E31B8546289970297ADC962748"><enum>(3)</enum><text>in subsection (c)—</text>
<subparagraph id="id8F50329FD48D40BB8FF399B34EDC367E"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting before the
period the following: <quote>(as defined in section 2791(e)(4), except that for
purposes of this paragraph such term shall include employers with 1 employee in
the case of an employer residing in a State that permits small groups to
include a single individual)</quote>; and</text>
</subparagraph><subparagraph id="id3A9327019B584ED493D2A3906252AF7E"><enum>(B)</enum><text>by striking paragraph (2)
and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id5AB8C32A9B9B46B887A36F3E9AFD7803" reported-display-style="italic" style="OLC">
<paragraph id="idBD55D1942E264619873318CE879A8FF2"><enum>(2)</enum><header>Cost Exemption</header>
<subparagraph id="idCDBE563BBAA64328B04747F057CE2C92"><enum>(A)</enum><header>In
general</header><text>With respect to a group health plan (or health insurance
coverage offered in connection with such a plan), if the application of this
section to such plan (or coverage) results in an increase for the plan year
involved of the actual total costs of coverage with respect to medical and
surgical benefits and mental health and substance use disorder benefits under
the plan (as determined and certified under subparagraph (C)) by an amount that
exceeds the applicable percentage described in subparagraph (B) of the actual
total plan costs, the provisions of this section shall not apply to such plan
(or coverage) during the following plan year, and such exemption shall apply to
the plan (or coverage) for 1 plan year. An employer may elect to continue to
apply mental health and substance use disorder parity pursuant to this section
with respect to the group health plan (or coverage) involved regardless of any
increase in total costs.</text>
</subparagraph><subparagraph id="idAB55EFAD60A54D01A3918CF41D63E598"><enum>(B)</enum><header>Applicable
percentage</header><text>With respect to a plan (or coverage), the applicable
percentage described in this subparagraph shall be—</text>
<clause id="id85AA0FA906974806B007555F197B4A55"><enum>(i)</enum><text>2 percent in the case of
the first plan year in which this section is applied; and</text>
</clause><clause id="id2B18463AD3964117971C8E7CBC100C58"><enum>(ii)</enum><text>1 percent in the case of
each subsequent plan year.</text>
</clause></subparagraph><subparagraph id="idD3873E935B4641E2A249347118A213D9"><enum>(C)</enum><header>Determinations by
actuaries</header><text>Determinations as to increases in actual costs under a
plan (or coverage) for purposes of this section shall be made and certified by
a qualified and licensed actuary who is a member in good standing of the
American Academy of Actuaries. All such determinations shall be in a written
report prepared by the actuary. The report, and all underlying documentation
relied upon by the actuary, shall be maintained by the group health plan or
health insurance issuer for a period of 6 years following the notification made
under subparagraph (E).</text>
</subparagraph><subparagraph id="idA6818363A00D472EB076B367CB49EC2C"><enum>(D)</enum><header>6-month
determinations</header><text>If a group health plan (or a health insurance
issuer offering coverage in connection with a group health plan) seeks an
exemption under this paragraph, determinations under subparagraph (A) shall be
made after such plan (or coverage) has complied with this section for the first
6 months of the plan year involved.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="id593955C96DBF4722A7B765947FB357B9"><enum>(E)</enum><header>Notification</header>
<clause id="id40EF2A3D3DA041779997E6149586D26F"><enum>(i)</enum><header>In
general</header><text>A group health plan (or a health insurance issuer
offering coverage in connection with a group health plan) that, based upon a
certification described under subparagraph (C), qualifies for an exemption
under this paragraph, and elects to implement the exemption, shall promptly
notify the Secretary, the appropriate State agencies, and participants and
beneficiaries in the plan of such election.</text>
</clause><clause id="idD53388ACB51D4A1C8B3E5C0A519FC2F7"><enum>(ii)</enum><header>Requirement</header><text>A
notification to the Secretary under clause (i) shall include—</text>
<subclause id="idC5398CB9BEBE4E11863394D85A03604E"><enum>(I)</enum><text>a description of the
number of covered lives under the plan (or coverage) involved at the time of
the notification, and as applicable, at the time of any prior election of the
cost-exemption under this paragraph by such plan (or coverage);</text>
</subclause><subclause id="id88E3FA64D12F486F86ADE00C95BACFBE"><enum>(II)</enum><text>for both the plan year
upon which a cost exemption is sought and the year prior, a description of the
actual total costs of coverage with respect to medical and surgical benefits
and mental health and substance use disorder benefits under the plan;
and</text>
</subclause><subclause id="idD4129D2077C340EAB6125DF7DA1398AC"><enum>(III)</enum><text>for both the plan year
upon which a cost exemption is sought and the year prior, the actual total
costs of coverage with respect to mental health and substance use disorder
benefits under the plan.</text>
</subclause></clause><clause id="id958EDC9583CF473C9885DDC30E6A0DAD"><enum>(iii)</enum><header>Confidentiality</header><text display-inline="yes-display-inline">A notification to the Secretary under
clause (i) shall be confidential. The Secretary shall make available, upon
request and on not more than an annual basis, an anonymous itemization of such
notifications, that includes—</text>
<subclause id="id78FC4B4406124660AAC7C4A05112FBD7"><enum>(I)</enum><text>a breakdown of States by
the size and type of employers submitting such notification; and</text>
</subclause><subclause id="idDA40354121D44896969A15E9935EF0A2"><enum>(II)</enum><text>a summary of the data
received under clause (ii).</text>
</subclause></clause></subparagraph><subparagraph id="id37F87F4A46804DDFA6A4B480AEC739FD"><enum>(F)</enum><header>Audits by appropriate
agencies</header><text>To determine compliance with this paragraph, the
Secretary may audit the books and records of a group health plan or health
insurance issuer relating to an exemption, including any actuarial reports
prepared pursuant to subparagraph (C), during the 6 year period following the
notification of such exemption under subparagraph (E). A State agency receiving
a notification under subparagraph (E) may also conduct such an audit with
respect to an exemption covered by such
notification.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id4C84DB77C6A841C6878A83B0FE611FA7"><enum>(4)</enum><text>in subsection (e), by
striking paragraph (4) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0D832CFC623140D88FCFDEFF623CD8E2" reported-display-style="italic" style="OLC">
<paragraph id="id2C1CD580C664404C88B7FCE3B02F4A5C"><enum>(4)</enum><header>Mental health
benefits</header><text>The term <quote>mental health benefits</quote> means
benefits with respect to services for mental health conditions, as defined
under the terms of the plan and in accordance with applicable Federal and State
law.</text>
</paragraph><paragraph id="id87F1D45A498C44738A29079A3CB5C7F3"><enum>(5)</enum><header>Substance use disorder
benefits</header><text display-inline="yes-display-inline">The term
<quote>substance use disorder benefits</quote> means benefits with respect to
services for substance use disorders, as defined under the terms of the plan
and in accordance with applicable Federal and State
law.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idA77AE6C7EBAE487AAC795263963C5FA1"><enum>(5)</enum><text>by striking subsection
(f);</text>
</paragraph><paragraph id="id602FFBDE8DCD4787BC24BD96ABF9254A"><enum>(6)</enum><text display-inline="yes-display-inline">by striking <quote>mental health
benefits</quote> and inserting <quote>mental health and substance use disorder
benefits</quote> each place it appears in subsections (a)(1)(B)(i), (a)(1)(C),
(a)(2)(B)(i), and (a)(2)(C); and</text>
</paragraph><paragraph display-inline="no-display-inline" id="id6DD77C1A2C4B41CA863E73D36A4BC2B2"><enum>(7)</enum><text display-inline="yes-display-inline">by striking <quote>mental health
benefits</quote> and inserting <quote>mental health or substance use disorder
benefits</quote> each place it appears (other than in any provision amended by
the previous paragraph).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="idC13B16CEB1D940208F9764A68A0A0878"><enum>(c)</enum><header>Amendments to Internal
Revenue Code</header><text>Section 9812 of the <act-name parsable-cite="ERISA">Internal Revenue Code of 1986 </act-name> is
amended—</text>
<paragraph id="id33991CA2751945D1BB49922CCE141EBB"><enum>(1)</enum><text>in subsection (a), by
adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8EAFBE47CC8A455DAFA5183860CE1FB1" reported-display-style="italic" style="OLC">
<paragraph id="id2C2F4F42A3974F75AD455B482BF2569E"><enum>(3)</enum><header>Financial requirements
and treatment limitations</header>
<subparagraph id="id57504117E807436E86EBED9AA2A7221C"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of a
group health plan that provides both medical and surgical benefits and mental
health or substance use disorder benefits, such plan shall ensure that—</text>
<clause id="id444B871BEAAF4BC0A2CD93D39F4D3D52"><enum>(i)</enum><text display-inline="yes-display-inline">the financial requirements applicable to
such mental health or substance use disorder benefits are no more restrictive
than the predominant financial requirements applied to substantially all
medical and surgical benefits covered by the plan, and there are no separate
cost sharing requirements that are applicable only with respect to mental
health or substance use disorder benefits; and</text>
</clause><clause id="id068054F7ACCA4D349F84CE82367D2E6F"><enum>(ii)</enum><text display-inline="yes-display-inline">the treatment limitations applicable to
such mental health or substance use disorder benefits are no more restrictive
than the predominant treatment limitations applied to substantially all medical
and surgical benefits covered by the plan and there are no separate treatment
limitations that are applicable only with respect to mental health or substance
use disorder benefits.</text>
</clause></subparagraph><subparagraph id="id32D7DD85001C4CA3AB11B3D533D06064"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this paragraph:</text>
<clause id="id756ABFB17ADC4A2182FE1AA5A6569B5A"><enum>(i)</enum><header>Financial
requirement</header><text display-inline="yes-display-inline">The term
<quote>financial requirement</quote> includes deductibles, copayments,
coinsurance, and out-of-pocket expenses, but excludes an aggregate lifetime
limit and an annual limit subject to paragraphs (1) and (2),</text>
</clause><clause id="id68CD21E575EA45EE9B6563DDC5DB6202"><enum>(ii)</enum><header>Predominant</header><text display-inline="yes-display-inline">A financial requirement or treatment limit
is considered to be predominant if it is the most common or frequent of such
type of limit or requirement.</text>
</clause><clause id="idD77F84226BA84F6B93EDCED99031BA60"><enum>(iii)</enum><header>Treatment
limitation</header><text display-inline="yes-display-inline">The term
<term>treatment limitation</term> includes limits on the frequency of
treatment, number of visits, days of coverage, or other similar limits on the
scope or duration of treatment.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id35716F17BB27427CAC2D296EB6A52DD9"><enum>(4)</enum><header display-inline="yes-display-inline">Availability of plan
information</header><text display-inline="yes-display-inline">The criteria for
medical necessity determinations made under the plan with respect to mental
health or substance use disorder benefits shall be made available by the plan
administrator in accordance with regulations to any current or potential
participant, beneficiary, or contracting provider upon request. The reason for
any denial under the plan of reimbursement or payment for services with respect
to mental health or substance use disorder benefits in the case of any
participant or beneficiary shall, on request or as otherwise required, be made
available by the plan administrator to the participant or beneficiary in
accordance with regulations.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0D4FF0AC1AAE44489DD57CC2244301F2"><enum>(5)</enum><header>Out-of-network
providers</header><text display-inline="yes-display-inline">In the case of a
plan that provides both medical and surgical benefits and mental health or
substance use disorder benefits, if the plan provides coverage for medical or
surgical benefits provided by out-of-network providers, the plan shall provide
coverage for mental health or substance use disorder benefits provided by
out-of-network providers in a manner that is consistent with the requirements
of this
section.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE7627C98714B4DBFB9C9508180C23997"><enum>(2)</enum><text>in subsection (b), by
amending paragraph (2) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id2541AA5FC9A44844AEA6D69A95BE9490" reported-display-style="italic" style="OLC">
<paragraph id="idBAEA27489776445EB16F70520FFD6555"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a group health plan that
provides mental health or substance use disorder benefits, as affecting the
terms and conditions of the plan relating to such benefits under the plan,
except as provided in subsection
(a).</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id490C0018E3E14412B230CC58F9E003A6"><enum>(3)</enum><text>in subsection (c)—</text>
<subparagraph display-inline="no-display-inline" id="id6E47FF658DC347C3B01B454D3218F5AE"><enum>(A)</enum><text display-inline="yes-display-inline">by amending paragraph (1) to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9DB3946E8DE1464E88F8EF7547CE5766" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="id6371404C91104972A435F52B783208E2"><enum>(1)</enum><header>Small employer
exemption</header>
<subparagraph commented="no" id="id65AD99F86ABA4E8DB8C68E280BBB9FC5"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">This section shall
not apply to any group health plan for any plan year of a small
employer.</text>
</subparagraph><subparagraph commented="no" id="id7912D70536DF4D51BD02712FB2633D7F"><enum>(B)</enum><header>Small
employer</header><text>For purposes of subparagraph (A), the term <quote>small
employer</quote> means, with respect to a calendar year and a plan year, an
employer who employed an average of at least 2 (or 1 in the case of an employer
residing in a State that permits small groups to include a single individual)
but not more than 50 employees on business days during the preceding calendar
year. For purposes of the preceding sentence, all persons treated as a single
employer under subsection (b), (c), (m), or (o) of section 414 shall be treated
as 1 employer and rules similar to rules of subparagraphs (B) and (C) of
section 4980D(d)(2) shall apply.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idBCC9CB467A1D41EC8D878857DF70D860"><enum>(B)</enum><text>by striking paragraph (2)
and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id5E52FB5F6F42410D8FF8DF7E36D6E599" reported-display-style="italic" style="OLC">
<paragraph id="idE808C60A72724424A288347F4055A0B3"><enum>(2)</enum><header>Cost exemption</header>
<subparagraph id="id08CC36BE81F94E7C85086839A6A0456F"><enum>(A)</enum><header>In
general</header><text>With respect to a group health plan, if the application
of this section to such plan results in an increase for the plan year involved
of the actual total costs of coverage with respect to medical and surgical
benefits and mental health and substance use disorder benefits under the plan
(as determined and certified under subparagraph (C)) by an amount that exceeds
the applicable percentage described in subparagraph (B) of the actual total
plan costs, the provisions of this section shall not apply to such plan during
the following plan year, and such exemption shall apply to the plan for 1 plan
year. An employer may elect to continue to apply mental health and substance
use disorder parity pursuant to this section with respect to the group health
plan involved regardless of any increase in total costs.</text>
</subparagraph><subparagraph id="id3E207073E30C45CCAD786871BF823878"><enum>(B)</enum><header>Applicable
percentage</header><text>With respect to a plan, the applicable percentage
described in this subparagraph shall be—</text>
<clause id="id7129C1FE72F54A26ABC4C14A69A7AEF7"><enum>(i)</enum><text>2 percent in the case of
the first plan year in which this section is applied; and</text>
</clause><clause id="idBD5060A193CA4E7F94BF29107C5DEF72"><enum>(ii)</enum><text>1 percent in the case of
each subsequent plan year.</text>
</clause></subparagraph><subparagraph id="id915AFAC8BB51498D93DB5D4D394CF2F1"><enum>(C)</enum><header>Determinations by
actuaries</header><text>Determinations as to increases in actual costs under a
plan for purposes of this section shall be made and certified by a qualified
and licensed actuary who is a member in good standing of the American Academy
of Actuaries. All such determinations shall be in a written report prepared by
the actuary. The report, and all underlying documentation relied upon by the
actuary, shall be maintained by the group health plan for a period of 6 years
following the notification made under subparagraph (E).</text>
</subparagraph><subparagraph id="id83E135FAC75A4F6AB8B2B734D9678279"><enum>(D)</enum><header>6-month
determinations</header><text>If a group health plan seeks an exemption under
this paragraph, determinations under subparagraph (A) shall be made after such
plan has complied with this section for the first 6 months of the plan year
involved.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="idFE3E2082CD3E43C7AC00920FFD11C246"><enum>(E)</enum><header>Notification</header>
<clause id="id2A3DDCCF874D4F60A582EA27943F9A54"><enum>(i)</enum><header>In
general</header><text>A group health plan that, based upon a certification
described under subparagraph (C), qualifies for an exemption under this
paragraph, and elects to implement the exemption, shall promptly notify the
Secretary, the appropriate State agencies, and participants and beneficiaries
in the plan of such election.</text>
</clause><clause id="id6DFF65EE191D4FCC96FA76FEB7C97D39"><enum>(ii)</enum><header>Requirement</header><text>A
notification to the Secretary under clause (i) shall include—</text>
<subclause id="id1F0F1C0F73FF481FBF602955AC46F0D8"><enum>(I)</enum><text>a description of the
number of covered lives under the plan involved at the time of the
notification, and as applicable, at the time of any prior election of the
cost-exemption under this paragraph by such plan;</text>
</subclause><subclause id="idFBB4F16BDD9E4C5BB95EB4F585447E93"><enum>(II)</enum><text>for both the plan year
upon which a cost exemption is sought and the year prior, a description of the
actual total costs of coverage with respect to medical and surgical benefits
and mental health and substance use disorder benefits under the plan;
and</text>
</subclause><subclause id="id516E7F9AE4164F82A6A88CCA8C95DF9F"><enum>(III)</enum><text>for both the plan year
upon which a cost exemption is sought and the year prior, the actual total
costs of coverage with respect to mental health and substance use disorder
benefits under the plan.</text>
</subclause></clause><clause id="id1E0AFBFACE0243F884D15D0203AE941F"><enum>(iii)</enum><header>Confidentiality</header><text display-inline="yes-display-inline">A notification to the Secretary under
clause (i) shall be confidential. The Secretary shall make available, upon
request and on not more than an annual basis, an anonymous itemization of such
notifications, that includes—</text>
<subclause id="idAB4B95CCC68948668D53CDF168E654AB"><enum>(I)</enum><text>a breakdown of States by
the size and type of employers submitting such notification; and</text>
</subclause><subclause id="id615C1AD2424144A7B3A8665DE1767B11"><enum>(II)</enum><text>a summary of the data
received under clause (ii).</text>
</subclause></clause></subparagraph><subparagraph id="idD4E93B7BED4142AFAF7F7ADDEB22903A"><enum>(F)</enum><header>Audits by appropriate
agencies</header><text>To determine compliance with this paragraph, the
Secretary may audit the books and records of a group health plan relating to an
exemption, including any actuarial reports prepared pursuant to subparagraph
(C), during the 6 year period following the notification of such exemption
under subparagraph (E). A State agency receiving a notification under
subparagraph (E) may also conduct such an audit with respect to an exemption
covered by such
notification.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id90CD6CCBAD0347D1B42F2F9D9C3567AA"><enum>(4)</enum><text>in subsection (e), by
striking paragraph (4) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id844F07B726F44DC0BEE5AF242E592CF8" reported-display-style="italic" style="OLC">
<paragraph id="idBF084DCDED8D4D2690BAF8AEB3B8B456"><enum>(4)</enum><header>Mental health
benefits</header><text>The term <quote>mental health benefits</quote> means
benefits with respect to services for mental health conditions, as defined
under the terms of the plan and in accordance with applicable Federal and State
law.</text>
</paragraph><paragraph id="id574E7244EC5E42AFB398469B77D311A8"><enum>(5)</enum><header>Substance use disorder
benefits</header><text display-inline="yes-display-inline">The term
<quote>substance use disorder benefits</quote> means benefits with respect to
services for substance use disorders, as defined under the terms of the plan
and in accordance with applicable Federal and State
law.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idD8E956B05A984BC9AC2E246F630137F3"><enum>(5)</enum><text>by striking subsection
(f);</text>
</paragraph><paragraph id="id88C1AAD33E484AF7B528F0D528B89392"><enum>(6)</enum><text display-inline="yes-display-inline">by striking <quote>mental health
benefits</quote> and inserting <quote>mental health and substance use disorder
benefits</quote> each place it appears in subsections (a)(1)(B)(i), (a)(1)(C),
(a)(2)(B)(i), and (a)(2)(C); and</text>
</paragraph><paragraph display-inline="no-display-inline" id="id1646B17189CD49E5ADE087F4F2C9B81D"><enum>(7)</enum><text display-inline="yes-display-inline">by striking <quote>mental health
benefits</quote> and inserting <quote>mental health or substance use disorder
benefits</quote> each place it appears (other than in any provision amended by
the previous paragraph).</text>
</paragraph></subsection><subsection id="id5C8501C3942D464EAC73B1B6F6568A8E"><enum>(d)</enum><header>Regulations</header><text>Not
later than 1 year after the date of enactment of this Act, the Secretaries of
Labor, Health and Human Services, and the Treasury shall issue regulations to
carry out the amendments made by subsections (a), (b), and (c),
respectively.</text>
</subsection><subsection commented="no" id="id04BAC066ECE74B2285B4C6E4EB3DA34A"><enum>(e)</enum><header>Effective date</header>
<paragraph commented="no" id="id3823D687706B471A84C757F6F5298D04"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply with
respect to group health plans for plan years beginning after the date that is 1
year after the date of enactment of this Act, regardless of whether regulations
have been issued to carry out such amendments by such effective date, except
that the amendments made by subsections (a)(5), (b)(5), and (c)(5), relating to
striking of certain sunset provisions, shall take effect on January 1,
2009.</text>
</paragraph><paragraph id="idA83A6C09DFF14F048EDAEF0F572D38FC"><enum>(2)</enum><header>Special rule for
collective bargaining agreements</header><text display-inline="yes-display-inline">In the case of a group health plan
maintained pursuant to one or more collective bargaining agreements between
employee representatives and one or more employers ratified before the date of
the enactment of this Act, the amendments made by this section shall not apply
to plan years beginning before the later of—</text>
<subparagraph id="id9A5C501FAC7A46D7B902C2CDC3B85C5A"><enum>(A)</enum><text>the date on which the
last of the collective bargaining agreements relating to the plan terminates
(determined without regard to any extension thereof agreed to after the date of
the enactment of this Act), or</text>
</subparagraph><subparagraph id="idE80C3D4B06AE46AD9C70ACAB4EBE90F8"><enum>(B)</enum><text>January 1, 2009.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">For
purposes of subparagraph (A), any plan amendment made pursuant to a collective
bargaining agreement relating to the plan which amends the plan solely to
conform to any requirement added by this section shall not be treated as a
termination of such collective bargaining agreement.</continuation-text></paragraph></subsection><subsection id="idC62CFDC7062D416E9B863537910AAB17"><enum>(f)</enum><header>Assuring
coordination</header><text display-inline="yes-display-inline">The Secretary of
Health and Human Services, the Secretary of Labor, and the Secretary of the
Treasury may ensure, through the execution or revision of an interagency
memorandum of understanding among such Secretaries, that—</text>
<paragraph id="idCED601019EBD4DEA8F20047E2EB556D8"><enum>(1)</enum><text>regulations, rulings, and
interpretations issued by such Secretaries relating to the same matter over
which two or more such Secretaries have responsibility under this section (and
the amendments made by this section) are administered so as to have the same
effect at all times; and</text>
</paragraph><paragraph id="id932CD015FAF44802818C3D04401611FE"><enum>(2)</enum><text>coordination of policies
relating to enforcing the same requirements through such Secretaries in order
to have a coordinated enforcement strategy that avoids duplication of
enforcement efforts and assigns priorities in enforcement.</text>
</paragraph></subsection><subsection id="id02B964F4AC1A41AE965D92269392CBCB"><enum>(g)</enum><header>Conforming clerical
amendments</header>
<paragraph id="id4E3F5970F209494EB1582428CC099DC9"><enum>(1)</enum><header>ERISA heading</header>
<subparagraph id="id5FFD98DA3C3C41B4BE398C23012C42A5"><enum>(A)</enum><header>In
general</header><text>The heading of section 712 of the Employee Retirement
Income Security Act of 1974 is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id914E07534E5A4116A033A838C7B267B8" reported-display-style="italic" style="OLC">
<section id="id40EA554932D14A21B1E7C0597DCDC27B"><enum>712.</enum><header>Parity in mental
health and substance use disorder
benefits</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id994CF889CB3748409B3D7C6EBC124713"><enum>(B)</enum><header>Clerical
amendment</header><text>The table of contents in section 1 of such Act is
amended by striking the item relating to section 712 and inserting the
following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idBB1C949CA3E74C5BBC72D748E2C9F4E1" reported-display-style="italic" style="OLC">
<toc changed="added" regeneration="no-regeneration" reported-display-style="italic">
<toc-entry level="section">Sec. 712. Parity in mental health and substance
use disorder
benefits.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idA76C89CE4BE14FEC95E941443EF35D30"><enum>(2)</enum><header>PHSA
heading</header><text>The heading of section 2705 of the Public Health Service
Act is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF4DA73EE19B9442CB2116305E8E5444D" reported-display-style="italic" style="OLC">
<section id="id793E997F256E4C56A4E11CB3072511A1"><enum>2705.</enum><header>Parity in mental
health and substance use disorder
benefits</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph display-inline="no-display-inline" id="id33FBEA09DEFF469F929D2D869659D7EF"><enum>(3)</enum><header>IRC heading</header>
<subparagraph id="idA282D96A0D67440DB7A78D091AF77A67"><enum>(A)</enum><header>In
general</header><text>The heading of section 9812 of the Internal Revenue Code
of 1986 is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9CA5115472AC47B8B67DAD363FBBE3A9" reported-display-style="italic" style="OLC">
<section id="idF565C022B5F2430CA3526E2450E516A3"><enum>9812.</enum><header>Parity in mental
health and substance use disorder
benefits</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph display-inline="no-display-inline" id="id29592BED2D3A41DE9D569CD906498581"><enum>(B)</enum><header>Clerical
amendment</header><text>The table of sections for subchapter B of chapter 100
of such Code is amended by striking the item relating to section 9812 and
inserting the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7B920C9CCB854BF2A0B440D1016940B0" reported-display-style="italic" style="OLC">
<toc changed="added" regeneration="no-regeneration" reported-display-style="italic">
<toc-entry level="section">Sec. 9812. Parity in mental health and
substance use disorder
benefits.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="idFCD128CC62694F6D8E6C56E0CC004240"><enum>(h)</enum><header>GAO study on coverage
and exclusion of mental health and substance use disorder diagnoses</header>
<paragraph id="idD89ED81D69164D4DB203CBE00ED11914"><enum>(1)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study that analyzes the specific rates, patterns, and trends in
coverage and exclusion of specific mental health and substance use disorder
diagnoses by health plans and health insurance. The study shall include an
analysis of—</text>
<subparagraph id="id3595DD35EB804AC1B3D20B3B259E70F4"><enum>(A)</enum><text>specific coverage rates
for all mental health conditions and substance use disorders;</text>
</subparagraph><subparagraph id="idB2C9869E03404626BC38AF4EAEFCAB1E"><enum>(B)</enum><text>which diagnoses are most
commonly covered or excluded;</text>
</subparagraph><subparagraph id="id4C4632CE12544F4497E616EF49A84F9D"><enum>(C)</enum><text>whether implementation of
this Act has affected trends in coverage or exclusion of such diagnoses;
and</text>
</subparagraph><subparagraph id="id5873D2C064CF4D1FAC5CFE9FF54C07C2"><enum>(D)</enum><text>the impact of covering or
excluding specific diagnoses on participants’ and enrollees’ health, their
health care coverage, and the costs of delivering health care.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id43E466FB9D8548CB8A0636A18AF847F2"><enum>(2)</enum><header>Reports</header><text>Not
later than 3 years after the date of the enactment of this Act, and 2 years
after the date of submission the first report under this paragraph, the
Comptroller General shall submit to Congress a report on the results of the
study conducted under paragraph (1).</text>
</paragraph></subsection></section></subtitle><enum>VI</enum><header>Other
provisions</header>
<section id="idB3AE0A94555C499FBAD9ED182316208A"><enum>601.</enum><header>Secure rural schools
and community self-determination program</header>
<subsection id="id190F3040E89E4A109A54656C6416726D"><enum>(a)</enum><header>Reauthorization of the
secure rural schools and community self-determination act of 2000</header><text display-inline="yes-display-inline">The Secure Rural Schools and Community
Self-Determination Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/16/500">16 U.S.C. 500</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/106/393">Public Law 106–393</external-xref>) is
amended by striking sections 1 through 403 and inserting the following:</text>
<quoted-block changed="added" id="ID4EC64E4BFA6E42EF8460F3021A333364" reported-display-style="italic" style="OLC">
<section id="ID12546E3D9F3F43F99C1B79FB4B36E987" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote>Secure
Rural Schools and Community Self-Determination Act of 2000</quote>.</text>
</section><section id="ID8A6279B8CCF343F097B62D0CE88A1348"><enum>2.</enum><header>Purposes</header><text display-inline="no-display-inline">The purposes of this Act are—</text>
<paragraph id="ID83C19A77856246FF900A3DEAEEF2B21B"><enum>(1)</enum><text>to stabilize and
transition payments to counties to provide funding for schools and roads that
supplements other available funds;</text>
</paragraph><paragraph id="ID164EEE76E94A41749C8A530EED123747"><enum>(2)</enum><text>to make additional
investments in, and create additional employment opportunities through,
projects that—</text>
<subparagraph id="IDEF09D5432BD64D7381D02646CB8282DF"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID5A8F9C2117A842B8866F6731D2E15E3F"><enum>(i)</enum><text>improve the maintenance
of existing infrastructure;</text>
</clause><clause changed="added" id="IDE8C2F68449014EAF8A6B62271F5F4F36" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>implement stewardship
objectives that enhance forest ecosystems; and</text>
</clause><clause changed="added" id="ID0AD8621323B84A0D8026CAAE31902494" indent="up1" reported-display-style="italic"><enum>(iii)</enum><text>restore and improve
land health and water quality;</text>
</clause></subparagraph><subparagraph id="ID40255D346C984546A65621AABF548339"><enum>(B)</enum><text>enjoy broad-based
support; and</text>
</subparagraph><subparagraph id="ID8E6FCBD0661E4BEDAA32AA83D022F62F"><enum>(C)</enum><text>have objectives that may
include—</text>
<clause id="ID4B0C9325C3594892869338C79C670374"><enum>(i)</enum><text>road, trail, and
infrastructure maintenance or obliteration;</text>
</clause><clause id="ID8D5909D47C16497D857BB64C42C0A063"><enum>(ii)</enum><text>soil productivity
improvement;</text>
</clause><clause id="ID731F4ACEA713482AB920DA48D21737A7"><enum>(iii)</enum><text>improvements in forest
ecosystem health;</text>
</clause><clause id="ID735826D3CC82499EBCC3E812A0718100"><enum>(iv)</enum><text>watershed restoration
and maintenance;</text>
</clause><clause id="ID2A67C26D0FCD498187AE854B366AE996"><enum>(v)</enum><text>the restoration,
maintenance, and improvement of wildlife and fish habitat;</text>
</clause><clause id="ID51182CD24DD249A2961EC0499695DCFA"><enum>(vi)</enum><text>the control of noxious
and exotic weeds; and</text>
</clause><clause id="ID3A2DCF6D80CD4E0EB7845D83C1E47FEC"><enum>(vii)</enum><text>the reestablishment of
native species; and</text>
</clause></subparagraph></paragraph><paragraph id="IDE412F9E4FE154A778549BBA860E01316"><enum>(3)</enum><text>to improve cooperative
relationships among—</text>
<subparagraph id="ID51AF918B6FF14D32921887B69C5436EE"><enum>(A)</enum><text>the people that use and
care for Federal land; and</text>
</subparagraph><subparagraph id="ID2A04314B8E314B4AA7F4ACC4F25953B1"><enum>(B)</enum><text>the agencies that manage
the Federal land.</text>
</subparagraph></paragraph></section><section id="ID3C0F34FB22FD44A2B536091ED4D2A77C"><enum>3.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text>
<paragraph id="ID42DEE2586E444616B6C74D36E04F4553"><enum>(1)</enum><header>Adjusted
share</header><text>The term <term>adjusted share</term> means the number equal
to the quotient obtained by dividing—</text>
<subparagraph id="IDA51C69C8F996418CBF398BA688EBEC74"><enum>(A)</enum><text>the number equal to the
quotient obtained by dividing—</text>
<clause id="ID943D2205A703476FAA78C07674258BE9"><enum>(i)</enum><text>the base share for the
eligible county; by</text>
</clause><clause id="IDAF195FAF546B4B4B828DC0B157596819"><enum>(ii)</enum><text>the income adjustment
for the eligible county; by</text>
</clause></subparagraph><subparagraph id="ID6D5609C12A02471E908794D5B8FB8365"><enum>(B)</enum><text>the number equal to the
sum of the quotients obtained under subparagraph (A) and paragraph (8)(A) for
all eligible counties.</text>
</subparagraph></paragraph><paragraph id="IDCBDC86572F9549A49369C29ECA2E2224"><enum>(2)</enum><header>Base
share</header><text>The term <term>base share</term> means the number equal to
the average of—</text>
<subparagraph id="IDBD02DB415C004D7CAA2DA61C4398D740"><enum>(A)</enum><text>the quotient obtained by
dividing—</text>
<clause id="ID1DA53AF35292462FA42684895753A575"><enum>(i)</enum><text>the number of acres of
Federal land described in paragraph (7)(A) in each eligible county; by</text>
</clause><clause id="IDAA5F013B40F640C3B51DA5D81C3A7868"><enum>(ii)</enum><text>the total number acres
of Federal land in all eligible counties in all eligible States; and</text>
</clause></subparagraph><subparagraph id="ID7E2FCA8039E04F2891CA0EE05362D784"><enum>(B)</enum><text>the quotient obtained by
dividing—</text>
<clause id="IDDDC8BFFACD504565B2A97F62163EF1A6"><enum>(i)</enum><text>the amount equal to the
average of the 3 highest 25-percent payments and safety net payments made to
each eligible State for each eligible county during the eligibility period;
by</text>
</clause><clause id="ID017035F6ED2B49D4A87B2C7EE1FB02B5"><enum>(ii)</enum><text>the amount equal to the
sum of the amounts calculated under clause (i) and paragraph (9)(B)(i) for all
eligible counties in all eligible States during the eligibility period.</text>
</clause></subparagraph></paragraph><paragraph id="ID6834E6DC3DCC4384AB73A1F82F0E9FD6"><enum>(3)</enum><header>County
payment</header><text>The term <term>county payment</term> means the payment
for an eligible county calculated under section 101(b).</text>
</paragraph><paragraph id="IDDF1D98C6F9884E16836C6BBAC6AB88C2"><enum>(4)</enum><header>Eligible
county</header><text>The term <term>eligible county</term> means any county
that—</text>
<subparagraph id="IDFB7F5DB5DD1247B88C2284D7C37DB457"><enum>(A)</enum><text>contains Federal land (as
defined in paragraph (7)); and</text>
</subparagraph><subparagraph id="ID7D88C2E4425E4A4398C2BE70C26C4020"><enum>(B)</enum><text>elects to receive a share
of the State payment or the county payment under section 102(b).</text>
</subparagraph></paragraph><paragraph id="ID2BA742EDFB664A73B34DE82A1317FA53"><enum>(5)</enum><header>Eligibility
period</header><text>The term <term>eligibility period</term> means fiscal year
1986 through fiscal year 1999.</text>
</paragraph><paragraph id="IDCB8744F1B1D14119967838E6E47F4DCB"><enum>(6)</enum><header>Eligible
state</header><text>The term <term>eligible State</term> means a State or
territory of the United States that received a 25-percent payment for 1 or more
fiscal years of the eligibility period.</text>
</paragraph><paragraph id="ID3AD551BDFC76421C9118D643A4C34B10"><enum>(7)</enum><header>Federal
land</header><text>The term <term>Federal land</term> means—</text>
<subparagraph id="IDDDBD6E89E806412FBABE821BAB54C5F2"><enum>(A)</enum><text>land within the National
Forest System, as defined in section 11(a) of the
<act-name parsable-cite="FRRRP">Forest and Rangeland Renewable Resources
Planning Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1609">16 U.S.C. 1609(a)</external-xref>) exclusive of the National
Grasslands and land utilization projects designated as National Grasslands
administered pursuant to the Act of July 22, 1937 (<external-xref legal-doc="usc" parsable-cite="usc/7/1010">7 U.S.C. 1010–1012</external-xref>);
and</text>
</subparagraph><subparagraph id="IDD3FF5C91DD254F09802535B5179A7AC3"><enum>(B)</enum><text>such portions of the
revested Oregon and California Railroad and reconveyed Coos Bay Wagon Road
grant land as are or may hereafter come under the jurisdiction of the
Department of the Interior, which have heretofore or may hereafter be
classified as timberlands, and power-site land valuable for timber, that shall
be managed, except as provided in the former section 3 of the Act of August 28,
1937 (50 Stat. 875; <external-xref legal-doc="usc" parsable-cite="usc/43/1181c">43 U.S.C. 1181c</external-xref>), for permanent forest production.</text>
</subparagraph></paragraph><paragraph id="ID4CAE00FCF2C9462D8ED1E0E38529CB0F"><enum>(8)</enum><header>50-Percent adjusted
share</header><text>The term <term>50-percent adjusted share</term> means the
number equal to the quotient obtained by dividing—</text>
<subparagraph id="ID93C5C0D5D78D41E7B0DCD2880443F524"><enum>(A)</enum><text>the number equal to the
quotient obtained by dividing—</text>
<clause id="ID87A44622EC954396A8FE12FAFD4449C1"><enum>(i)</enum><text>the 50-percent base share
for the eligible county; by</text>
</clause><clause id="IDC0BF9BDC69C1435B8535A0ECB3CBDC54"><enum>(ii)</enum><text>the income adjustment
for the eligible county; by</text>
</clause></subparagraph><subparagraph id="ID7E50F88D576C46A7AF4E05FD46573A03"><enum>(B)</enum><text>the number equal to the
sum of the quotients obtained under subparagraph (A) and paragraph (1)(A) for
all eligible counties.</text>
</subparagraph></paragraph><paragraph id="IDCDFB077E4AF44559B3BC8F14D3F67A4B"><enum>(9)</enum><header>50-Percent base
share</header><text>The term <term>50-percent base share</term> means the
number equal to the average of—</text>
<subparagraph id="ID2FCCA19697DB4C5688EEB854E08EDAA3"><enum>(A)</enum><text>the quotient obtained by
dividing—</text>
<clause id="ID91960DEC3CFE4B7C94DA4E96F8EC15F0"><enum>(i)</enum><text>the number of acres of
Federal land described in paragraph (7)(B) in each eligible county; by</text>
</clause><clause id="ID3872BB15E50B473D87538E8F585D8D43"><enum>(ii)</enum><text>the total number acres
of Federal land in all eligible counties in all eligible States; and</text>
</clause></subparagraph><subparagraph id="IDD4C9999A4ACB4AD1AEB64A32B53149E3"><enum>(B)</enum><text>the quotient obtained by
dividing—</text>
<clause id="ID61A4EACEC9E7450DBD32B3C82AA44217"><enum>(i)</enum><text>the amount equal to the
average of the 3 highest 50-percent payments made to each eligible county
during the eligibility period; by</text>
</clause><clause id="IDBC224C7138EE438B89EE17F1CE264123"><enum>(ii)</enum><text>the amount equal to the
sum of the amounts calculated under clause (i) and paragraph (2)(B)(i) for all
eligible counties in all eligible States during the eligibility period.</text>
</clause></subparagraph></paragraph><paragraph id="ID9B0CC4EE93464100A88B22BA96888AD7"><enum>(10)</enum><header>50-percent
payment</header><text>The term <term>50-percent payment</term> means the
payment that is the sum of the 50-percent share otherwise paid to a county
pursuant to title II of the Act of August 28, 1937 (chapter 876; 50 Stat. 875;
<external-xref legal-doc="usc" parsable-cite="usc/43/1181f">43 U.S.C. 1181f</external-xref>), and the payment made to a county pursuant to the Act of May
24, 1939 (chapter 144; 53 Stat. 753; <external-xref legal-doc="usc" parsable-cite="usc/43/1181f-1">43 U.S.C. 1181f–1 et seq.</external-xref>).</text>
</paragraph><paragraph id="ID3AEC5732F08A4FFB8D9DF7BF925DB6DA"><enum>(11)</enum><header>Full funding
amount</header><text>The term <term>full funding amount</term> means—</text>
<subparagraph id="IDE778C76A0209430D83866AABD22D1A17"><enum>(A)</enum><text>$500,000,000 for fiscal
year 2008; and</text>
</subparagraph><subparagraph id="ID822D655F0F5043E4BD02DBA028DDE943"><enum>(B)</enum><text>for fiscal year 2009 and
each fiscal year thereafter, the amount that is equal to 90 percent of the full
funding amount for the preceding fiscal year.</text>
</subparagraph></paragraph><paragraph id="ID0A6D810E43C6468FAE027691FB85906B"><enum>(12)</enum><header>Income
adjustment</header><text>The term <term>income adjustment</term> means the
square of the quotient obtained by dividing—</text>
<subparagraph id="IDF785C3D3A4F14E25BB7A714BB966436F"><enum>(A)</enum><text>the per capita personal
income for each eligible county; by</text>
</subparagraph><subparagraph id="ID53069CF636A54F04BC0B80483AED3B01"><enum>(B)</enum><text>the median per capita
personal income of all eligible counties.</text>
</subparagraph></paragraph><paragraph id="ID01360E0B5EA84FFF9ADF3197AF1E73EA"><enum>(13)</enum><header>Per capita personal
income</header><text>The term <term>per capita personal income</term> means the
most recent per capita personal income data, as determined by the Bureau of
Economic Analysis.</text>
</paragraph><paragraph id="ID8973C7191D984A16A19148368C3FC6C6"><enum>(14)</enum><header>Safety net
payments</header><text>The term <term>safety net payments</term> means the
special payment amounts paid to States and counties required by section 13982
or 13983 of the <act-name parsable-cite="OBRA93">Omnibus Budget Reconciliation
Act of 1993</act-name> (<external-xref legal-doc="public-law" parsable-cite="pl/103/66">Public Law 103–66</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/16/500">16 U.S.C. 500</external-xref> note; 43 U.S.C. 1181f
note).</text>
</paragraph><paragraph id="ID448AE5ACF9614318B880C123FAB3C627"><enum>(15)</enum><header>Secretary
concerned</header><text>The term <term>Secretary concerned</term> means—</text>
<subparagraph id="IDB78D760A91224C158FC33296CC85C42A"><enum>(A)</enum><text>the Secretary of
Agriculture or the designee of the Secretary of Agriculture with respect to the
Federal land described in paragraph (7)(A); and</text>
</subparagraph><subparagraph id="IDBC664492E9684970804B729AD2EE25BC"><enum>(B)</enum><text>the Secretary of the
Interior or the designee of the Secretary of the Interior with respect to the
Federal land described in paragraph (7)(B).</text>
</subparagraph></paragraph><paragraph id="ID19A0F2D4AAEE4213A7EF12E3E03D20B4"><enum>(16)</enum><header>State
payment</header><text>The term <term>State payment</term> means the payment for
an eligible State calculated under section 101(a).</text>
</paragraph><paragraph id="ID7F2FCF17583B4668B68A1E1043DCEF5D"><enum>(17)</enum><header>25-Percent
payment</header><text>The term <term>25-percent payment</term> means the
payment to States required by the sixth paragraph under the heading of
<quote><header-in-text level="appropriations-major" style="traditional">FOREST
SERVICE</header-in-text></quote> in the Act of May 23, 1908 (35 Stat. 260; 16
U.S.C. 500), and section 13 of the Act of March 1, 1911 (36 Stat. 963; 16
U.S.C. 500).</text>
</paragraph></section><title id="IDCA3E0BC9109044F39608B46B64F070AC"><enum>I</enum><header>SECURE PAYMENTS FOR
STATES AND COUNTIES CONTAINING FEDERAL LAND</header>
<section id="IDCEAF0F801F064D85AF5078CDE46667DA"><enum>101.</enum><header>Secure payments for
States containing Federal land</header>
<subsection id="ID26B549831F7B4A8FB46F0381683CBC75"><enum>(a)</enum><header>State
Payment</header><text>For each of fiscal years 2008 through 2011, the Secretary
of Agriculture shall calculate for each eligible State an amount equal to the
sum of the products obtained by multiplying—</text>
<paragraph id="ID80586C8A766F430D98E308F701528118"><enum>(1)</enum><text>the adjusted share for
each eligible county within the eligible State; by</text>
</paragraph><paragraph id="IDF0EEA726DFC7432984CC4BA76190825B"><enum>(2)</enum><text>the full funding amount
for the fiscal year.</text>
</paragraph></subsection><subsection id="ID383AA857A6D94C988D5FAEC0D9002CBD"><enum>(b)</enum><header>County
Payment</header><text>For each of fiscal years 2008 through 2011, the Secretary
of the Interior shall calculate for each eligible county that received a
50-percent payment during the eligibility period an amount equal to the product
obtained by multiplying—</text>
<paragraph id="ID002E9CD3945D4936BCE4D8E4DD622203"><enum>(1)</enum><text>the 50-percent adjusted
share for the eligible county; by</text>
</paragraph><paragraph id="ID1E83735675F34841A1FD324B76D62FCF"><enum>(2)</enum><text>the full funding amount
for the fiscal year.</text>
</paragraph></subsection></section><section id="ID5CA26C02C2A74884A764D737AA99229C"><enum>102.</enum><header>Payments to States and
counties</header>
<subsection id="ID7E95C9D3BF90426ABBCDDB75ABC15F09"><enum>(a)</enum><header>Payment
Amounts</header><text>Except as provided in section 103, the Secretary of the
Treasury shall pay to—</text>
<paragraph id="ID6B6DC14A9F0442C3B42D5434D985A0F9"><enum>(1)</enum><text>a State or territory of
the United States an amount equal to the sum of the amounts elected under
subsection (b) by each county within the State or territory for—</text>
<subparagraph id="ID5D41B13C278D403AAAB08AECD5E7B920"><enum>(A)</enum><text>if the county is eligible
for the 25-percent payment, the share of the 25-percent payment; or</text>
</subparagraph><subparagraph id="IDFCC0CAD1DE094C47AB28EB607295781E"><enum>(B)</enum><text>the share of the State
payment of the eligible county; and</text>
</subparagraph></paragraph><paragraph id="ID8401D2F13CB5432DB13ECAE3EE9224DD"><enum>(2)</enum><text>a county an amount equal
to the amount elected under subsection (b) by each county for—</text>
<subparagraph id="ID8448B64825DF47608822446F44C4EDB1"><enum>(A)</enum><text>if the county is eligible
for the 50-percent payment, the 50-percent payment; or</text>
</subparagraph><subparagraph id="ID5053ABA9599042689689EC47C6B84A28"><enum>(B)</enum><text>the county payment for
the eligible county.</text>
</subparagraph></paragraph></subsection><subsection id="ID22A949C34E0F40E89BDBB3582CDFAFD0"><enum>(b)</enum><header>Election To Receive
Payment Amount</header>
<paragraph id="ID3CDAF8DF305B4706B2851D0B851DA75B"><enum>(1)</enum><header>Election; submission of
results</header>
<subparagraph id="IDBAEB625A3E1949959DB3F8129D1CDFF6"><enum>(A)</enum><header>In
general</header><text>The election to receive a share of the State payment, the
county payment, a share of the State payment and the county payment, a share of
the 25-percent payment, the 50-percent payment, or a share of the 25-percent
payment and the 50-percent payment, as applicable, shall be made at the
discretion of each affected county by August 1, 2008 (or as soon thereafter as
the Secretary concerned determines is practicable), and August 1 of each second
fiscal year thereafter, in accordance with paragraph (2), and transmitted to
the Secretary concerned by the Governor of each eligible State.</text>
</subparagraph><subparagraph id="ID9AB5C0725D8B44359827AB43096CB245"><enum>(B)</enum><header>Failure to
transmit</header><text>If an election for an affected county is not transmitted
to the Secretary concerned by the date specified under subparagraph (A), the
affected county shall be considered to have elected to receive a share of the
State payment, the county payment, or a share of the State payment and the
county payment, as applicable.</text>
</subparagraph></paragraph><paragraph id="ID351043688954468080C678D5119F9804"><enum>(2)</enum><header>Duration of
election</header>
<subparagraph id="ID40A4090BC2F14127A514E5721A1B0D03"><enum>(A)</enum><header>In
general</header><text>A county election to receive a share of the 25-percent
payment or 50-percent payment, as applicable, shall be effective for 2 fiscal
years.</text>
</subparagraph><subparagraph id="ID490FCF46A13D4B4D8A92C77FD7456247"><enum>(B)</enum><header>Full funding
amount</header><text>If a county elects to receive a share of the State payment
or the county payment, the election shall be effective for all subsequent
fiscal years through fiscal year 2011.</text>
</subparagraph></paragraph><paragraph id="ID1926C06F92C646138BFAE6BD0DF467CD"><enum>(3)</enum><header>Source of payment
amounts</header><text>The payment to an eligible State or eligible county under
this section for a fiscal year shall be derived from—</text>
<subparagraph id="id39284D953A4B4721A4F3328B2052BE07"><enum>(A)</enum><text>any amounts that are
appropriated to carry out this Act;</text>
</subparagraph><subparagraph id="ID03485AB769194F22BCE606AAFBCE5A53"><enum>(B)</enum><text>any revenues, fees,
penalties, or miscellaneous receipts, exclusive of deposits to any relevant
trust fund, special account, or permanent operating funds, received by the
Federal Government from activities by the Bureau of Land Management or the
Forest Service on the applicable Federal land; and</text>
</subparagraph><subparagraph id="IDCA97EEED070D4D2A96A2CEB293629654"><enum>(C)</enum><text>to the extent of any
shortfall, out of any amounts in the Treasury of the United States not
otherwise appropriated.</text>
</subparagraph></paragraph></subsection><subsection id="IDC041A75958FE41CCB5330288641E4D9A"><enum>(c)</enum><header>Distribution and
Expenditure of Payments</header>
<paragraph id="ID1231BF2C51C849D2812CA60AC5BECBA0"><enum>(1)</enum><header>Distribution
method</header><text>A State that receives a payment under subsection (a) for
Federal land described in section 3(7)(A) shall distribute the appropriate
payment amount among the appropriate counties in the State in accordance
with—</text>
<subparagraph id="ID551F9FA2ED2B4A5E84CB6DB9C2BE78AC"><enum>(A)</enum><text>the Act of May 23, 1908
(<external-xref legal-doc="usc" parsable-cite="usc/16/500">16 U.S.C. 500</external-xref>); and</text>
</subparagraph><subparagraph id="ID7EAB7D35C94341FA82DF76D12111D5F0"><enum>(B)</enum><text>section 13 of the Act of
March 1, 1911 (36 Stat. 963; <external-xref legal-doc="usc" parsable-cite="usc/16/500">16 U.S.C. 500</external-xref>).</text>
</subparagraph></paragraph><paragraph id="ID59C36782346240E18F80E8550D0F4712"><enum>(2)</enum><header>Expenditure
purposes</header><text>Subject to subsection (d), payments received by a State
under subsection (a) and distributed to counties in accordance with paragraph
(1) shall be expended as required by the laws referred to in paragraph
(1).</text>
</paragraph></subsection><subsection id="ID776D60CE15184C3EAFC672F1C0044EA4"><enum>(d)</enum><header>Expenditure Rules for
Eligible Counties</header>
<paragraph id="ID7C139F1AF4974744B12757B5B196BAEC"><enum>(1)</enum><header>Allocations</header>
<subparagraph id="IDAB156586DFF94E4BA92AE9909DD29B19"><enum>(A)</enum><header>Use of portion in same
manner as 25-percent payment or 50-percent payment, as
applicable</header><text>Except as provided in paragraph (3)(B), if an eligible
county elects to receive its share of the State payment or the county payment,
not less than 80 percent, but not more than 85 percent, of the funds shall be
expended in the same manner in which the 25-percent payments or 50-percent
payment, as applicable, are required to be expended.</text>
</subparagraph><subparagraph id="IDD7FE3F7C7C654E7FB46BBFA3E29C8563"><enum>(B)</enum><header>Election as to use of
balance</header><text>Except as provided in subparagraph (C), an eligible
county shall elect to do 1 or more of the following with the balance of any
funds not expended pursuant to subparagraph (A):</text>
<clause id="IDBB968528854C446DAB8825E57F104B4B"><enum>(i)</enum><text>Reserve any portion of
the balance for projects in accordance with title II.</text>
</clause><clause id="IDBF16090CA01343208D6898E38FE1F797"><enum>(ii)</enum><text>Reserve not more than 7
percent of the total share for the eligible county of the State payment or the
county payment for projects in accordance with title III.</text>
</clause><clause id="ID20A3A101EFA54F56A9E3B49CE50BE21A"><enum>(iii)</enum><text>Return the portion of
the balance not reserved under clauses (i) and (ii) to the Treasury of the
United States.</text>
</clause></subparagraph><subparagraph id="ID5C4763F41A85446680AB70BCEE36EFE1"><enum>(C)</enum><header>Counties with modest
distributions</header><text>In the case of each eligible county to which more
than $100,000, but less than $350,000, is distributed for any fiscal year
pursuant to either or both of paragraphs (1)(B) and (2)(B) of subsection (a),
the eligible county, with respect to the balance of any funds not expended
pursuant to subparagraph (A) for that fiscal year, shall—</text>
<clause id="ID5568F06A0BBB462997E4143097C4CAA3"><enum>(i)</enum><text>reserve any portion of
the balance for—</text>
<subclause id="ID40129E4286CF44F780C90026F97927B7"><enum>(I)</enum><text>carrying out projects
under title II;</text>
</subclause><subclause id="IDE7A6F17748254AD9BF5D403D26D56E6A"><enum>(II)</enum><text>carrying out projects
under title III; or</text>
</subclause><subclause id="ID52CC572B64C648339C53A1ED1E5A2B95"><enum>(III)</enum><text>a combination of the
purposes described in subclauses (I) and (II); or</text>
</subclause></clause><clause id="IDA9704B5DFA514002957D8FF87B9D4F4E"><enum>(ii)</enum><text>return the portion of
the balance not reserved under clause (i) to the Treasury of the United
States.</text>
</clause></subparagraph></paragraph><paragraph id="ID2F3F80DF9FBB49C7AED2D29383C9DB4A"><enum>(2)</enum><header>Distribution of
funds</header>
<subparagraph id="IDB9E06D17102A41839F8AF32C5F460298"><enum>(A)</enum><header>In
general</header><text>Funds reserved by an eligible county under subparagraph
(B)(i) or (C)(i) of paragraph (1) for carrying out projects under title II
shall be deposited in a special account in the Treasury of the United
States.</text>
</subparagraph><subparagraph id="IDA1102329C1B746A4BD5BDF10F81161D8"><enum>(B)</enum><header>Availability</header><text>Amounts
deposited under subparagraph (A) shall—</text>
<clause id="ID9EE3FE773A7847E68795599C82A1FDC6"><enum>(i)</enum><text>be available for
expenditure by the Secretary concerned, without further appropriation;
and</text>
</clause><clause id="ID9F486AD190F34B8A8CFD54CEE1C4F79A"><enum>(ii)</enum><text>remain available until
expended in accordance with title II.</text>
</clause></subparagraph></paragraph><paragraph id="ID9D4CEBB3C03F4DFF851FC5B79C33951A"><enum>(3)</enum><header>Election</header>
<subparagraph id="ID634F78636E2141AEA0439EFB9A0DB5C1"><enum>(A)</enum><header>Notification</header>
<clause id="IDF217C13B888D4234AEA49F1187A59813"><enum>(i)</enum><header>In
general</header><text>An eligible county shall notify the Secretary concerned
of an election by the eligible county under this subsection not later than
September 30, 2008 (or as soon thereafter as the Secretary concerned determines
is practicable), and each September 30 thereafter for each succeeding fiscal
year.</text>
</clause><clause id="IDCFC427B3F3374D24ABA1CF1D66917031"><enum>(ii)</enum><header>Failure to
elect</header><text>Except as provided in subparagraph (B), if the eligible
county fails to make an election by the date specified in clause (i), the
eligible county shall—</text>
<subclause id="ID8633E01251AB46D3B0DFA46F9195CAC2"><enum>(I)</enum><text>be considered to have
elected to expend 85 percent of the funds in accordance with paragraph (1)(A);
and</text>
</subclause><subclause id="ID79C01CCB9748412AA5FBBD5F149F42AD"><enum>(II)</enum><text>return the balance to
the Treasury of the United States.</text>
</subclause></clause></subparagraph><subparagraph id="IDB7E1FFAF00554455B68F001EB18E01D0"><enum>(B)</enum><header>Counties with minor
distributions</header><text>In the case of each eligible county to which less
than $100,000 is distributed for any fiscal year pursuant to either or both of
paragraphs (1)(B) and (2)(B) of subsection (a), the eligible county may elect
to expend all the funds in the same manner in which the 25-percent payments or
50-percent payments, as applicable, are required to be expended.</text>
</subparagraph></paragraph></subsection><subsection id="ID67D49CADFFBA403CBB9A9B9C97CBCFCE"><enum>(e)</enum><header>Time for
Payment</header><text>The payments required under this section for a fiscal
year shall be made as soon as practicable after the end of that fiscal
year.</text>
</subsection></section><section id="ID9F0F27F606DC422A844284B607F35046"><enum>103.</enum><header>Transition payments to
States</header>
<subsection id="IDCE0A42B6CA48411498808B6C86F1A50C"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="ID91DEED7D5E7C452DB5F8465365059721"><enum>(1)</enum><header>Adjusted
amount</header><text>The term <term>adjusted amount</term> means, with respect
to a covered State—</text>
<subparagraph id="ID2A3C4343299B49CFAC1C40CA5CD942CD"><enum>(A)</enum><text>for fiscal year 2008, 90
percent of—</text>
<clause id="ID38DF233E3DE24A36ABB04C203CAD9715"><enum>(i)</enum><text>the sum of the amounts
paid for fiscal year 2006 under section 102(a)(2) (as in effect on September
29, 2006) for the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment for fiscal year
2008; and</text>
</clause><clause id="ID0350CAA99C57442EA5902F41AC753258"><enum>(ii)</enum><text>the sum of the amounts
paid for fiscal year 2006 under section 103(a)(2) (as in effect on September
29, 2006) for the eligible counties in the State of Oregon that have elected
under section 102(b) to receive the county payment for fiscal year 2008;</text>
</clause></subparagraph><subparagraph id="IDE02F4B117AD049E3B43B7CEE511E5753"><enum>(B)</enum><text>for fiscal year 2009, 81
percent of—</text>
<clause id="IDC0514D8D0A074FC1B15FF477DFA189F2"><enum>(i)</enum><text>the sum of the amounts
paid for fiscal year 2006 under section 102(a)(2) (as in effect on September
29, 2006) for the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment for fiscal year
2009; and</text>
</clause><clause id="ID38EA6AC6FF254900BCC46A504E6D62F1"><enum>(ii)</enum><text>the sum of the amounts
paid for fiscal year 2006 under section 103(a)(2) (as in effect on September
29, 2006) for the eligible counties in the State of Oregon that have elected
under section 102(b) to receive the county payment for fiscal year 2009;
and</text>
</clause></subparagraph><subparagraph id="IDD019C47FBE604499B86FD27BF263D90F"><enum>(C)</enum><text>for fiscal year 2010, 73
percent of—</text>
<clause id="ID7D35CD69CA144A1983A2B4A3059D7DAE"><enum>(i)</enum><text>the sum of the amounts
paid for fiscal year 2006 under section 102(a)(2) (as in effect on September
29, 2006) for the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment for fiscal year
2010; and</text>
</clause><clause id="ID32AD3A06F6D047BAAEBAB6DB6CD76D42"><enum>(ii)</enum><text>the sum of the amounts
paid for fiscal year 2006 under section 103(a)(2) (as in effect on September
29, 2006) for the eligible counties in the State of Oregon that have elected
under section 102(b) to receive the county payment for fiscal year 2010.</text>
</clause></subparagraph></paragraph><paragraph id="ID9789546269FF4B2EA1DAE399B4F54167"><enum>(2)</enum><header>Covered
state</header><text>The term <term>covered State</term> means each of the
States of California, Louisiana, Oregon, Pennsylvania, South Carolina, South
Dakota, Texas, and Washington.</text>
</paragraph></subsection><subsection id="ID0899BF7DBA4444668A8069448C48673B"><enum>(b)</enum><header>Transition
Payments</header><text>For each of fiscal years 2008 through 2010, in lieu of
the payment amounts that otherwise would have been made under paragraphs (1)(B)
and (2)(B) of section 102(a), the Secretary of the Treasury shall pay the
adjusted amount to each covered State and the eligible counties within the
covered State, as applicable.</text>
</subsection><subsection id="IDF1C069A0C25E4532BF2C6DE0C465F121"><enum>(c)</enum><header>Distribution of
Adjusted Amount</header><text>Except as provided in subsection (d), it is the
intent of Congress that the method of distributing the payments under
subsection (b) among the counties in the covered States for each of fiscal
years 2008 through 2010 be in the same proportion that the payments were
distributed to the eligible counties in fiscal year 2006.</text>
</subsection><subsection id="ID123E85B85D6046A693ECC6435A5BF1FE"><enum>(d)</enum><header>Distribution of
Payments in California</header><text>The following payments shall be
distributed among the eligible counties in the State of California in the same
proportion that payments under section 102(a)(2) (as in effect on September 29,
2006) were distributed to the eligible counties for fiscal year 2006:</text>
<paragraph id="ID3D4BBC5F0242449B98D9B16C3D33E563"><enum>(1)</enum><text>Payments to the State of
California under subsection (b).</text>
</paragraph><paragraph id="ID4AE5EE99D1274F22AE1D1367C342BD75"><enum>(2)</enum><text>The shares of the
eligible counties of the State payment for California under section 102 for
fiscal year 2011.</text>
</paragraph></subsection><subsection id="IDF8EBEB42C1264C4FAE53138E6AEEC242"><enum>(e)</enum><header>Treatment of
Payments</header><text>For purposes of this Act, any payment made under
subsection (b) shall be considered to be a payment made under section
102(a).</text>
</subsection></section><enum>II</enum><header>SPECIAL PROJECTS ON
FEDERAL LAND</header>
<section id="IDB594CFC3D2B14155BD15084138C85773"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="ID34E6BD92F15E4509BA41698BB6383891"><enum>(1)</enum><header>Participating
county</header><text>The term <term>participating county</term> means an
eligible county that elects under section 102(d) to expend a portion of the
Federal funds received under section 102 in accordance with this title.</text>
</paragraph><paragraph id="IDEA8873DED4C04857AC376F50DABB7129"><enum>(2)</enum><header>Project
funds</header><text>The term <term>project funds</term> means all funds an
eligible county elects under section 102(d) to reserve for expenditure in
accordance with this title.</text>
</paragraph><paragraph id="ID6762F7F6BF4945EF80A785AF007B8234"><enum>(3)</enum><header>Resource advisory
committee</header><text>The term <term>resource advisory committee</term>
means—</text>
<subparagraph id="ID0F1E96AA40F141239D64082885BA12FC"><enum>(A)</enum><text>an advisory committee
established by the Secretary concerned under section 205; or</text>
</subparagraph><subparagraph id="IDC4F10B6FADE04E7093201A4B4A8D2153"><enum>(B)</enum><text>an advisory committee
determined by the Secretary concerned to meet the requirements of section
205.</text>
</subparagraph></paragraph><paragraph id="IDEE56F670A15944EDA0B767CBF453E301"><enum>(4)</enum><header>Resource management
plan</header><text>The term <term>resource management plan</term> means—</text>
<subparagraph id="IDE54E5B3B2DEC451AA92CA431F5938C1E"><enum>(A)</enum><text>a land use plan prepared
by the Bureau of Land Management for units of the Federal land described in
section 3(7)(B) pursuant to section 202 of the <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name>
(<external-xref legal-doc="usc" parsable-cite="usc/43/1712">43 U.S.C. 1712</external-xref>); or</text>
</subparagraph><subparagraph id="IDABACF7D4D75E4FA0A55EC3D3D77A7C1B"><enum>(B)</enum><text>a land and resource
management plan prepared by the Forest Service for units of the National Forest
System pursuant to section 6 of the <act-name parsable-cite="FRRRP">Forest and
Rangeland Renewable Resources Planning Act of 1974</act-name> (16 U.S.C.
1604).</text>
</subparagraph></paragraph></section><section id="IDE4FA3C7BF4E54374A68BACAD4EBEC1B6"><enum>202.</enum><header>General limitation on
use of project funds</header>
<subsection id="ID7C1F480E213545248C7752E4997B9838"><enum>(a)</enum><header>Limitation</header><text>Project
funds shall be expended solely on projects that meet the requirements of this
title.</text>
</subsection><subsection id="ID70108968ED8D432C9B41F75D06A92BEF"><enum>(b)</enum><header>Authorized
Uses</header><text>Project funds may be used by the Secretary concerned for the
purpose of entering into and implementing cooperative agreements with willing
Federal agencies, State and local governments, private and nonprofit entities,
and landowners for protection, restoration, and enhancement of fish and
wildlife habitat, and other resource objectives consistent with the purposes of
this Act on Federal land and on non-Federal land where projects would benefit
the resources on Federal land.</text>
</subsection></section><section id="ID6F70D71F276346CDA234DB05D0FDF5FA"><enum>203.</enum><header>Submission of project
proposals</header>
<subsection id="ID6C8D494747944601982971C04B39BA4B"><enum>(a)</enum><header>Submission of Project
Proposals to Secretary Concerned</header>
<paragraph id="IDC06ABC925EA84AA8BCF4BB5E911ACAD1"><enum>(1)</enum><header>Projects funded using
project funds</header><text>Not later than September 30 for fiscal year 2008
(or as soon thereafter as the Secretary concerned determines is practicable),
and each September 30 thereafter for each succeeding fiscal year through fiscal
year 2011, each resource advisory committee shall submit to the Secretary
concerned a description of any projects that the resource advisory committee
proposes the Secretary undertake using any project funds reserved by eligible
counties in the area in which the resource advisory committee has geographic
jurisdiction.</text>
</paragraph><paragraph id="ID1C8EFFAEF80A4150987342B6B68D6498"><enum>(2)</enum><header>Projects funded using
other funds</header><text>A resource advisory committee may submit to the
Secretary concerned a description of any projects that the committee proposes
the Secretary undertake using funds from State or local governments, or from
the private sector, other than project funds and funds appropriated and
otherwise available to do similar work.</text>
</paragraph><paragraph id="IDFB148C40E8034C12B56EBA06C8E81280"><enum>(3)</enum><header>Joint
projects</header><text>Participating counties or other persons may propose to
pool project funds or other funds, described in paragraph (2), and jointly
propose a project or group of projects to a resource advisory committee
established under section 205.</text>
</paragraph></subsection><subsection id="IDDC2C9CFBF59544269C5B168266E384E9"><enum>(b)</enum><header>Required Description of
Projects</header><text>In submitting proposed projects to the Secretary
concerned under subsection (a), a resource advisory committee shall include in
the description of each proposed project the following information:</text>
<paragraph id="ID4ABBA10FF29140BFA428545BABEA9B5C"><enum>(1)</enum><text>The purpose of the
project and a description of how the project will meet the purposes of this
title.</text>
</paragraph><paragraph id="ID1A559DC39CFD401BB71A1F9894CB3CC4"><enum>(2)</enum><text>The anticipated duration
of the project.</text>
</paragraph><paragraph id="IDE8B4152EB5964F22B32EE033EFFA79BD"><enum>(3)</enum><text>The anticipated cost of
the project.</text>
</paragraph><paragraph id="IDF7C67BDFDDAB4C86B05BE6736A524A44"><enum>(4)</enum><text>The proposed source of
funding for the project, whether project funds or other funds.</text>
</paragraph><paragraph id="ID5B3C42A38E4F4FB590041608F1BE0C08"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID76F85C919F1141728D3482B6CB9D75F7"><enum>(A)</enum><text>Expected outcomes,
including how the project will meet or exceed desired ecological conditions,
maintenance objectives, or stewardship objectives.</text>
</subparagraph><subparagraph changed="added" id="ID8DE68B76E5BF405F953A9BBDEE9373DC" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>An
estimate of the amount of any timber, forage, and other commodities and other
economic activity, including jobs generated, if any, anticipated as part of the
project.</text>
</subparagraph></paragraph><paragraph id="ID629BCD0F737742218CBBE45FB65A7BE5"><enum>(6)</enum><text>A detailed monitoring
plan, including funding needs and sources, that—</text>
<subparagraph id="ID4C64A807FEB1453A9C4FBD916D0E3FEF"><enum>(A)</enum><text>tracks and identifies the
positive or negative impacts of the project, implementation, and provides for
validation monitoring; and</text>
</subparagraph><subparagraph id="IDB3B60150069A427A95CBDE58207E43A1"><enum>(B)</enum><text>includes an assessment of
the following:</text>
<clause id="IDCD82970549B144EFAD11566C8CC1E543"><enum>(i)</enum><text>Whether or not the
project met or exceeded desired ecological conditions; created local employment
or training opportunities, including summer youth jobs programs such as the
Youth Conservation Corps where appropriate.</text>
</clause><clause id="IDB222781DA66B4669B99041DC726D70FE"><enum>(ii)</enum><text>Whether the project
improved the use of, or added value to, any products removed from land
consistent with the purposes of this title.</text>
</clause></subparagraph></paragraph><paragraph id="ID29A5D4A1C44043E88E5E66B764F31971"><enum>(7)</enum><text>An assessment that the
project is to be in the public interest.</text>
</paragraph></subsection><subsection id="IDF5E113F34B2140BABDFAD0C0FFE48C19"><enum>(c)</enum><header>Authorized
Projects</header><text>Projects proposed under subsection (a) shall be
consistent with section 2.</text>
</subsection></section><section id="IDA3AAEAA42BD04808AFC1050EB0CC14ED"><enum>204.</enum><header>Evaluation and
approval of projects by Secretary concerned</header>
<subsection id="ID5ACE883501A649F69F79A035CA715215"><enum>(a)</enum><header>Conditions for Approval
of Proposed Project</header><text>The Secretary concerned may make a decision
to approve a project submitted by a resource advisory committee under section
203 only if the proposed project satisfies each of the following
conditions:</text>
<paragraph id="IDDCCB5294F97C4D29816C43469DBE33FC"><enum>(1)</enum><text>The project complies with
all applicable Federal laws (including regulations).</text>
</paragraph><paragraph id="ID6B2CD0AD14934D64936F25DCBD40F527"><enum>(2)</enum><text>The project is consistent
with the applicable resource management plan and with any watershed or
subsequent plan developed pursuant to the resource management plan and approved
by the Secretary concerned.</text>
</paragraph><paragraph id="ID4B2D539E86E04CC585E46DEC76DCC478"><enum>(3)</enum><text>The project has been
approved by the resource advisory committee in accordance with section 205,
including the procedures issued under subsection (e) of that section.</text>
</paragraph><paragraph id="ID17287D5723E44D89A2ACD8487FAD83D9"><enum>(4)</enum><text>A project description has
been submitted by the resource advisory committee to the Secretary concerned in
accordance with section 203.</text>
</paragraph><paragraph id="IDCEAE22D684464D48B731795362E3898E"><enum>(5)</enum><text>The project will improve
the maintenance of existing infrastructure, implement stewardship objectives
that enhance forest ecosystems, and restore and improve land health and water
quality.</text>
</paragraph></subsection><subsection id="ID3E945D6938DA45F0867C1ECFB1399689"><enum>(b)</enum><header>Environmental
Reviews</header>
<paragraph id="ID420771F989804A989B46F92D0CB5929C"><enum>(1)</enum><header>Request for payment by
county</header><text>The Secretary concerned may request the resource advisory
committee submitting a proposed project to agree to the use of project funds to
pay for any environmental review, consultation, or compliance with applicable
environmental laws required in connection with the project.</text>
</paragraph><paragraph id="IDEBD1DB71207D4DB3AC237CAFFEC22CF6"><enum>(2)</enum><header>Conduct of
environmental review</header><text>If a payment is requested under paragraph
(1) and the resource advisory committee agrees to the expenditure of funds for
this purpose, the Secretary concerned shall conduct environmental review,
consultation, or other compliance responsibilities in accordance with Federal
laws (including regulations).</text>
</paragraph><paragraph id="ID2E600C98F65D4859A8B9262C1622D805"><enum>(3)</enum><header>Effect of refusal to
pay</header>
<subparagraph id="ID33707F60745042CE984494E3DBC5222D"><enum>(A)</enum><header>In
general</header><text>If a resource advisory committee does not agree to the
expenditure of funds under paragraph (1), the project shall be deemed withdrawn
from further consideration by the Secretary concerned pursuant to this
title.</text>
</subparagraph><subparagraph id="ID311EE39B716F400C9BD8D3FB1B712883"><enum>(B)</enum><header>Effect of
withdrawal</header><text>A withdrawal under subparagraph (A) shall be deemed to
be a rejection of the project for purposes of section 207(c).</text>
</subparagraph></paragraph></subsection><subsection id="ID8E86CF0C731B460584DCB3098799FB0C"><enum>(c)</enum><header>Decisions of Secretary
Concerned</header>
<paragraph id="ID32F25994C0584435B5A762F58A921CB2"><enum>(1)</enum><header>Rejection of
projects</header>
<subparagraph id="IDE59EB51F7F364DB887B3E37587E1D1B7"><enum>(A)</enum><header>In
general</header><text>A decision by the Secretary concerned to reject a
proposed project shall be at the sole discretion of the Secretary
concerned.</text>
</subparagraph><subparagraph id="ID5BBD3AA1BE2846CD850FB31C1E72861D"><enum>(B)</enum><header>No administrative
appeal or judicial review</header><text>Notwithstanding any other provision of
law, a decision by the Secretary concerned to reject a proposed project shall
not be subject to administrative appeal or judicial review.</text>
</subparagraph><subparagraph id="IDC5D7188FB02F4B478D83C3B265CF8A8C"><enum>(C)</enum><header>Notice of
rejection</header><text>Not later than 30 days after the date on which the
Secretary concerned makes the rejection decision, the Secretary concerned shall
notify in writing the resource advisory committee that submitted the proposed
project of the rejection and the reasons for rejection.</text>
</subparagraph></paragraph><paragraph id="IDEBA9AD8173F842779813D69D863189C8"><enum>(2)</enum><header>Notice of project
approval</header><text>The Secretary concerned shall publish in the Federal
Register notice of each project approved under subsection (a) if the notice
would be required had the project originated with the Secretary.</text>
</paragraph></subsection><subsection id="ID8C278BF622554033900A8FCDA8A1F37E"><enum>(d)</enum><header>Source and Conduct of
Project</header><text>Once the Secretary concerned accepts a project for review
under section 203, the acceptance shall be deemed a Federal action for all
purposes.</text>
</subsection><subsection id="ID65F64EDA417B4E59856E2D2E7B5DC98E"><enum>(e)</enum><header>Implementation of
Approved Projects</header>
<paragraph id="ID3B8A92E87DD54346AE8C76F14D2E2CEA"><enum>(1)</enum><header>Cooperation</header><text>Notwithstanding
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/63">chapter 63</external-xref> of title 31, United States Code, using project funds the Secretary
concerned may enter into contracts, grants, and cooperative agreements with
States and local governments, private and nonprofit entities, and landowners
and other persons to assist the Secretary in carrying out an approved
project.</text>
</paragraph><paragraph id="ID28E7A77CB0AA42C29718A57D618263BF"><enum>(2)</enum><header>Best value
contracting</header>
<subparagraph id="ID7A63CDBB9CE64361BE05E71E370B719E"><enum>(A)</enum><header>In
general</header><text>For any project involving a contract authorized by
paragraph (1) the Secretary concerned may elect a source for performance of the
contract on a best value basis.</text>
</subparagraph><subparagraph id="IDF8F586DB86274E518DE5897ACB8A2A29"><enum>(B)</enum><header>Factors</header><text>The
Secretary concerned shall determine best value based on such factors as—</text>
<clause id="ID34CA27DBE78F466180A5D5C9E1FCDBDC"><enum>(i)</enum><text>the technical demands and
complexity of the work to be done;</text>
</clause><clause id="ID6C53B14EEF8A40C7AEBCC3CBCAA52376"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="IDF6766EBC86104C758BE8CC66E8095026"><enum>(I)</enum><text>the ecological
objectives of the project; and</text>
</subclause><subclause changed="added" id="IDA7573E096358439AB5C3B9EC0A6A08B5" indent="up1" reported-display-style="italic"><enum>(II)</enum><text>the
sensitivity of the resources being treated;</text>
</subclause></clause><clause id="IDC98D4682FC2648EFBF6D1F6C25BF431F"><enum>(iii)</enum><text>the past experience by
the contractor with the type of work being done, using the type of equipment
proposed for the project, and meeting or exceeding desired ecological
conditions; and</text>
</clause><clause id="IDFDA004BBEF75403D811E655AF929BC4B"><enum>(iv)</enum><text>the commitment of the
contractor to hiring highly qualified workers and local residents.</text>
</clause></subparagraph></paragraph><paragraph id="ID983A9F66E6014D96A3F32074C97E4DF0"><enum>(3)</enum><header>Merchantable timber
contracting pilot program</header>
<subparagraph id="IDFFA494C2F4E142968EB931BB9C490A8B"><enum>(A)</enum><header>Establishment</header><text>The
Secretary concerned shall establish a pilot program to implement a certain
percentage of approved projects involving the sale of merchantable timber using
separate contracts for—</text>
<clause id="IDEE97C051438147D186371719BA0E340D"><enum>(i)</enum><text>the harvesting or
collection of merchantable timber; and</text>
</clause><clause id="IDB7FD1192E6D0474684CEBF2CA584E0D5"><enum>(ii)</enum><text>the sale of the
timber.</text>
</clause></subparagraph><subparagraph id="IDDCD3570D81644CF69DB24251B47312AF"><enum>(B)</enum><header>Annual
percentages</header><text>Under the pilot program, the Secretary concerned
shall ensure that, on a nationwide basis, not less than the following
percentage of all approved projects involving the sale of merchantable timber
are implemented using separate contracts:</text>
<clause id="ID3CF1EB1233C24E2D8DDB29865804AD54"><enum>(i)</enum><text>For fiscal year 2008, 35
percent.</text>
</clause><clause id="ID907954E7FA7147AB881840AF74210646"><enum>(ii)</enum><text>For fiscal year 2009, 45
percent.</text>
</clause><clause id="IDCBB97EF7FC104069AE690491C32C43BC"><enum>(iii)</enum><text>For each of fiscal
years 2010 and 2011, 50 percent.</text>
</clause></subparagraph><subparagraph id="ID7BF0CD1B02334D3A9C51D0A7B037F04C"><enum>(C)</enum><header>Inclusion in pilot
program</header><text>The decision whether to use separate contracts to
implement a project involving the sale of merchantable timber shall be made by
the Secretary concerned after the approval of the project under this
title.</text>
</subparagraph><subparagraph id="IDAABE5481EE26466C9C686FB42506E06B"><enum>(D)</enum><header>Assistance</header>
<clause id="ID17DCDBB55A0E41E0976B32128C062661"><enum>(i)</enum><header>In
general</header><text>The Secretary concerned may use funds from any
appropriated account available to the Secretary for the Federal land to assist
in the administration of projects conducted under the pilot program.</text>
</clause><clause id="IDD3EAA6EB11CA460D92E1F7C81DEA3258"><enum>(ii)</enum><header>Maximum amount of
assistance</header><text>The total amount obligated under this subparagraph may
not exceed $1,000,000 for any fiscal year during which the pilot program is in
effect.</text>
</clause></subparagraph><subparagraph id="ID52CE739BD7C44179944C559EAB90CE97"><enum>(E)</enum><header>Review and
report</header>
<clause id="ID1EA12E7C95F44838BA93424805DD7469"><enum>(i)</enum><header>Initial
report</header><text>Not later than September 30, 2010, the Comptroller General
shall submit to the Committees on Agriculture, Nutrition, and Forestry and
Energy and Natural Resources of the Senate and the Committees on Agriculture
and Natural Resources of the House of Representatives a report assessing the
pilot program.</text>
</clause><clause id="ID70218D4E9B7E4081A58E9EA464FE9EAE"><enum>(ii)</enum><header>Annual
report</header><text>The Secretary concerned shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy and Natural Resources of the
Senate and the Committees on Agriculture and Natural Resources of the House of
Representatives an annual report describing the results of the pilot
program.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDB09D33D58BF54C9C8D4EF8396D81B212"><enum>(f)</enum><header>Requirements for
Project Funds</header><text>The Secretary shall ensure that at least 50 percent
of all project funds be used for projects that are primarily dedicated—</text>
<paragraph id="ID72035900FC154261935AE55816B9D652"><enum>(1)</enum><text>to road maintenance,
decommissioning, or obliteration; or</text>
</paragraph><paragraph id="ID489A5A9C671E48458CF45ACF63E75B10"><enum>(2)</enum><text>to restoration of streams
and watersheds.</text>
</paragraph></subsection></section><section id="ID05D2A3B60805445CB6E120083C811B59"><enum>205.</enum><header>Resource advisory
Committees</header>
<subsection id="ID4A2959AB8A87498D972AA41EB57B2AEF"><enum>(a)</enum><header>Establishment and
Purpose of Resource Advisory Committees</header>
<paragraph id="IDAA6AD1A6F1EF4500877471866D0E151E"><enum>(1)</enum><header>Establishment</header><text>The
Secretary concerned shall establish and maintain resource advisory committees
to perform the duties in subsection (b), except as provided in paragraph
(4).</text>
</paragraph><paragraph id="IDD59F04DBBE164BA3B45BCB02D78E1E4B"><enum>(2)</enum><header>Purpose</header><text>The
purpose of a resource advisory committee shall be—</text>
<subparagraph id="ID6049285625B647CCBC4284CE9168B1EB"><enum>(A)</enum><text>to improve collaborative
relationships; and</text>
</subparagraph><subparagraph id="IDF0297BF9F686416B873E57A46BC488DB"><enum>(B)</enum><text>to provide advice and
recommendations to the land management agencies consistent with the purposes of
this title.</text>
</subparagraph></paragraph><paragraph id="ID63BB951C70F94C81B1FB867E3CF5CC37"><enum>(3)</enum><header>Access to resource
advisory committees</header><text>To ensure that each unit of Federal land has
access to a resource advisory committee, and that there is sufficient interest
in participation on a committee to ensure that membership can be balanced in
terms of the points of view represented and the functions to be performed, the
Secretary concerned may, establish resource advisory committees for part of, or
1 or more, units of Federal land.</text>
</paragraph><paragraph id="IDA61F77540FE9422292FFC9B2EF9C0571"><enum>(4)</enum><header>Existing advisory
committees</header>
<subparagraph id="IDC10EAD300B5D40F7833CAE1C3340A965"><enum>(A)</enum><header>In
general</header><text>An advisory committee that meets the requirements of this
section, a resource advisory committee established before September 29, 2006,
or an advisory committee determined by the Secretary concerned before September
29, 2006, to meet the requirements of this section may be deemed by the
Secretary concerned to be a resource advisory committee for the purposes of
this title.</text>
</subparagraph><subparagraph id="IDCB4431163E954FC1AEE1C202B811D252"><enum>(B)</enum><header>Charter</header><text>A
charter for a committee described in subparagraph (A) that was filed on or
before September 29, 2006, shall be considered to be filed for purposes of this
Act.</text>
</subparagraph><subparagraph id="ID706B6EE6CCBC49EB9764BC730ABE4260"><enum>(C)</enum><header>Bureau of land
management advisory committees</header><text>The Secretary of the Interior may
deem a resource advisory committee meeting the requirements of subpart 1784 of
part 1780 of title 43, Code of Federal Regulations, as a resource advisory
committee for the purposes of this title.</text>
</subparagraph></paragraph></subsection><subsection id="ID80158F5E00524C69A79516BF135BCD4E"><enum>(b)</enum><header>Duties</header><text>A
resource advisory committee shall—</text>
<paragraph id="ID752E2D2288C54318A22AF3D903223DFD"><enum>(1)</enum><text>review projects proposed
under this title by participating counties and other persons;</text>
</paragraph><paragraph id="ID34D7D791C3C642679AB41DDF45C6718F"><enum>(2)</enum><text>propose projects and
funding to the Secretary concerned under section 203;</text>
</paragraph><paragraph id="ID5D060BAAFCAE46B780847EFC76A73629"><enum>(3)</enum><text>provide early and
continuous coordination with appropriate land management agency officials in
recommending projects consistent with purposes of this Act under this
title;</text>
</paragraph><paragraph id="ID95D58838F7924C30891E3452C769DC29"><enum>(4)</enum><text>provide frequent
opportunities for citizens, organizations, tribes, land management agencies,
and other interested parties to participate openly and meaningfully, beginning
at the early stages of the project development process under this title;</text>
</paragraph><paragraph id="ID7B72A778BFF94A91B9592FF17D86A0A0"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDEB3FA89F840646E8BA255A5BB3F8D9D1"><enum>(A)</enum><text>monitor projects that
have been approved under section 204; and</text>
</subparagraph><subparagraph changed="added" id="IDA2856BF1C6DB491C9D3CAD49E2A107B1" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>advise
the designated Federal official on the progress of the monitoring efforts under
subparagraph (A); and</text>
</subparagraph></paragraph><paragraph id="ID56B4156B9A724517B3B9C4760B5155FD"><enum>(6)</enum><text>make recommendations to
the Secretary concerned for any appropriate changes or adjustments to the
projects being monitored by the resource advisory committee.</text>
</paragraph></subsection><subsection id="IDA2B44E7C9D6440D28A7E79808F782CF0"><enum>(c)</enum><header>Appointment by the
Secretary</header>
<paragraph id="IDE5C8A2E0A1D640F1B9B2B0185496D156"><enum>(1)</enum><header>Appointment and
term</header>
<subparagraph id="IDB6A854AA97B3420CBBC9753627A277BD"><enum>(A)</enum><header>In
general</header><text>The Secretary concerned, shall appoint the members of
resource advisory committees for a term of 4 years beginning on the date of
appointment.</text>
</subparagraph><subparagraph id="IDDDE759A17BF74C1BA7DD28F349D25902"><enum>(B)</enum><header>Reappointment</header><text>The
Secretary concerned may reappoint members to subsequent 4-year terms.</text>
</subparagraph></paragraph><paragraph id="IDF5D399355EC0488897437D0EF6292F5E"><enum>(2)</enum><header>Basic
requirements</header><text>The Secretary concerned shall ensure that each
resource advisory committee established meets the requirements of subsection
(d).</text>
</paragraph><paragraph id="ID82B4437D14A3419BBA22746ABF555BC8"><enum>(3)</enum><header>Initial
appointment</header><text>Not later than 180 days after the date of the
enactment of this Act, the Secretary concerned shall make initial appointments
to the resource advisory committees.</text>
</paragraph><paragraph id="IDFDEC89C81E28453A8DA4F675A0701A25"><enum>(4)</enum><header>Vacancies</header><text>The
Secretary concerned shall make appointments to fill vacancies on any resource
advisory committee as soon as practicable after the vacancy has
occurred.</text>
</paragraph><paragraph id="ID43DF46D21CE4451F82F914ACD4F41F19"><enum>(5)</enum><header>Compensation</header><text>Members
of the resource advisory committees shall not receive any compensation.</text>
</paragraph></subsection><subsection id="ID87F654410F3F469DA90015C61B42AB52"><enum>(d)</enum><header>Composition of Advisory
Committee</header>
<paragraph id="ID8DA9BEA0DCAE43799EBF608D09DFFA78"><enum>(1)</enum><header>Number</header><text>Each
resource advisory committee shall be comprised of 15 members.</text>
</paragraph><paragraph id="ID27CC9F7FA40D468FAA5DB80BFA5F2DF0"><enum>(2)</enum><header>Community interests
represented</header><text>Committee members shall be representative of the
interests of the following 3 categories:</text>
<subparagraph id="ID6465FA7DCF144D8C9A6503EE70C4B193"><enum>(A)</enum><text>5 persons that—</text>
<clause id="ID4CAEFDACBB9C4205A6E5EB07843A05B9"><enum>(i)</enum><text>represent organized labor
or non-timber forest product harvester groups;</text>
</clause><clause id="ID9EA7DEEA0D8D4CB2A451953577A02F2D"><enum>(ii)</enum><text>represent developed
outdoor recreation, off highway vehicle users, or commercial recreation
activities;</text>
</clause><clause id="IDF76EEE56023745E1A3565460D6E0107F"><enum>(iii)</enum><text>represent—</text>
<subclause id="ID10DE31C66DA8429381636A514BB64AF3"><enum>(I)</enum><text>energy and mineral
development interests; or</text>
</subclause><subclause id="ID629F9F7FECA34C3B9AE05445AA907BCA"><enum>(II)</enum><text>commercial or
recreational fishing interests;</text>
</subclause></clause><clause id="ID72EAC45840FE4D30BCC944E7CB14BBEE"><enum>(iv)</enum><text>represent the commercial
timber industry; or</text>
</clause><clause id="IDE8B510A4F564413683D909939D466BB4"><enum>(v)</enum><text>hold Federal grazing or
other land use permits, or represent nonindustrial private forest land owners,
within the area for which the committee is organized.</text>
</clause></subparagraph><subparagraph id="ID9C57644722B7431DB3828E6D88DD88BB"><enum>(B)</enum><text>5 persons that
represent—</text>
<clause id="IDE9CA783E34C54FA2BC69AC5E7B42A524"><enum>(i)</enum><text>nationally recognized
environmental organizations;</text>
</clause><clause id="IDABC1304EC6ED4663953FADF7F6692189"><enum>(ii)</enum><text>regionally or locally
recognized environmental organizations;</text>
</clause><clause id="IDC3B09FD1C8E0461993F8F429C40E335B"><enum>(iii)</enum><text>dispersed recreational
activities;</text>
</clause><clause id="ID3DF5003158F941628EE2D4F3C3DB58F8"><enum>(iv)</enum><text>archaeological and
historical interests; or</text>
</clause><clause id="ID51AC5220584F40D1AC77F622C5F7680F"><enum>(v)</enum><text>nationally or regionally
recognized wild horse and burro interest groups, wildlife or hunting
organizations, or watershed associations.</text>
</clause></subparagraph><subparagraph id="ID000E2F35557F4FA29C80F1EF619240A2"><enum>(C)</enum><text>5 persons that—</text>
<clause id="ID1A49747ECDDE4D8D8EC154DD3A252863"><enum>(i)</enum><text>hold State elected office
(or a designee);</text>
</clause><clause id="ID40A93C8D6E364B3BBC9EED37A228F00C"><enum>(ii)</enum><text>hold county or local
elected office;</text>
</clause><clause id="IDA3D009C7B2524EA39AFBC834FC019FD4"><enum>(iii)</enum><text>represent American
Indian tribes within or adjacent to the area for which the committee is
organized;</text>
</clause><clause id="ID926EB2D797EF4DD6976D7B4E61BA2B20"><enum>(iv)</enum><text>are school officials or
teachers; or</text>
</clause><clause id="IDE284672C5638423B99BE6F25902AC46D"><enum>(v)</enum><text>represent the affected
public at large.</text>
</clause></subparagraph></paragraph><paragraph id="ID102D4DC4F2BE4B8C9E275AC3C11562EA"><enum>(3)</enum><header>Balanced
representation</header><text>In appointing committee members from the 3
categories in paragraph (2), the Secretary concerned shall provide for balanced
and broad representation from within each category.</text>
</paragraph><paragraph id="IDA270F594BD2C4913A9B047B5EE425F77"><enum>(4)</enum><header>Geographic
distribution</header><text>The members of a resource advisory committee shall
reside within the State in which the committee has jurisdiction and, to extent
practicable, the Secretary concerned shall ensure local representation in each
category in paragraph (2).</text>
</paragraph><paragraph id="IDB80E8FF4B96A4776B37AE3FAFB8C4A48"><enum>(5)</enum><header>Chairperson</header><text>A
majority on each resource advisory committee shall select the chairperson of
the committee.</text>
</paragraph></subsection><subsection id="IDF1C86B5E3821409FBA1112804AAC584E"><enum>(e)</enum><header>Approval
Procedures</header>
<paragraph id="IDFE1FA818F9FC4EBD99F10467FCD1E472"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (3), each resource advisory
committee shall establish procedures for proposing projects to the Secretary
concerned under this title.</text>
</paragraph><paragraph id="IDE6CBA2EA6588418B841E92C13C39CE22"><enum>(2)</enum><header>Quorum</header><text>A
quorum must be present to constitute an official meeting of the
committee.</text>
</paragraph><paragraph id="ID840F2A6BF46A40F894E3D0DF1F4549D5"><enum>(3)</enum><header>Approval by majority of
members</header><text>A project may be proposed by a resource advisory
committee to the Secretary concerned under section 203(a), if the project has
been approved by a majority of members of the committee from each of the 3
categories in subsection (d)(2).</text>
</paragraph></subsection><subsection id="ID787DE597DC2A4F299AF859D8E4CEAC10"><enum>(f)</enum><header>Other Committee
Authorities and Requirements</header>
<paragraph id="IDCCA398D0F2474072911443AA3E708BE6"><enum>(1)</enum><header>Staff
assistance</header><text>A resource advisory committee may submit to the
Secretary concerned a request for periodic staff assistance from Federal
employees under the jurisdiction of the Secretary.</text>
</paragraph><paragraph id="ID55E51B66CEF04A4F8399A5EE02E94289"><enum>(2)</enum><header>Meetings</header><text>All
meetings of a resource advisory committee shall be announced at least 1 week in
advance in a local newspaper of record and shall be open to the public.</text>
</paragraph><paragraph id="ID3ABAEDAD65364A5E8E5FA953072FFF53"><enum>(3)</enum><header>Records</header><text>A
resource advisory committee shall maintain records of the meetings of the
committee and make the records available for public inspection.</text>
</paragraph></subsection></section><section id="ID8DC8935C319E4CC3A7684A7AB8D02E84"><enum>206.</enum><header>Use of project
funds</header>
<subsection id="ID4FFB2B38770E4BD9B7901D8F4B02AFBF"><enum>(a)</enum><header>Agreement Regarding
Schedule and Cost of Project</header>
<paragraph id="ID8A4B6587350F48F3B665DC014DA8BE5F"><enum>(1)</enum><header>Agreement between
parties</header><text>The Secretary concerned may carry out a project submitted
by a resource advisory committee under section 203(a) using project funds or
other funds described in section 203(a)(2), if, as soon as practicable after
the issuance of a decision document for the project and the exhaustion of all
administrative appeals and judicial review of the project decision, the
Secretary concerned and the resource advisory committee enter into an agreement
addressing, at a minimum, the following:</text>
<subparagraph id="ID25664BDC412A44589D5553C548698B22"><enum>(A)</enum><text>The schedule for
completing the project.</text>
</subparagraph><subparagraph id="ID4289C78997A543428E601D149C8D5CD8"><enum>(B)</enum><text>The total cost of the
project, including the level of agency overhead to be assessed against the
project.</text>
</subparagraph><subparagraph id="ID5D2EA0058CF94F3EBBDEE24A6E37DEBB"><enum>(C)</enum><text>For a multiyear project,
the estimated cost of the project for each of the fiscal years in which it will
be carried out.</text>
</subparagraph><subparagraph id="ID4FFA2DD22531421A97984C0486770C6C"><enum>(D)</enum><text>The remedies for failure
of the Secretary concerned to comply with the terms of the agreement consistent
with current Federal law.</text>
</subparagraph></paragraph><paragraph id="ID3799DCEC79B24B68B23722186102870B"><enum>(2)</enum><header>Limited use of federal
funds</header><text>The Secretary concerned may decide, at the sole discretion
of the Secretary concerned, to cover the costs of a portion of an approved
project using Federal funds appropriated or otherwise available to the
Secretary for the same purposes as the project.</text>
</paragraph></subsection><subsection id="ID76C3033D6D8D472392B0AFEF90997B08"><enum>(b)</enum><header>Transfer of Project
Funds</header>
<paragraph id="IDF0CCBCD167814B9A912C7A6BB08F9DF8"><enum>(1)</enum><header>Initial transfer
required</header><text>As soon as practicable after the agreement is reached
under subsection (a) with regard to a project to be funded in whole or in part
using project funds, or other funds described in section 203(a)(2), the
Secretary concerned shall transfer to the applicable unit of National Forest
System land or Bureau of Land Management District an amount of project funds
equal to—</text>
<subparagraph id="IDFC7F74B4457741E99AB380259F475BEA"><enum>(A)</enum><text>in the case of a project
to be completed in a single fiscal year, the total amount specified in the
agreement to be paid using project funds, or other funds described in section
203(a)(2); or</text>
</subparagraph><subparagraph id="IDB21311482ABA45AD9817BE7D10226C9C"><enum>(B)</enum><text>in the case of a
multiyear project, the amount specified in the agreement to be paid using
project funds, or other funds described in section 203(a)(2) for the first
fiscal year.</text>
</subparagraph></paragraph><paragraph id="IDE19A4C3BBD3E4E81A816B64BA623D659"><enum>(2)</enum><header>Condition on project
commencement</header><text>The unit of National Forest System land or Bureau of
Land Management District concerned, shall not commence a project until the
project funds, or other funds described in section 203(a)(2) required to be
transferred under paragraph (1) for the project, have been made available by
the Secretary concerned.</text>
</paragraph><paragraph id="ID053FCCE209CF4CF99115AC95E69E6CA2"><enum>(3)</enum><header>Subsequent transfers
for multiyear projects</header>
<subparagraph id="ID4B2F5D8D2BAC4B8EA85F7BF855AA6857"><enum>(A)</enum><header>In
general</header><text>For the second and subsequent fiscal years of a multiyear
project to be funded in whole or in part using project funds, the unit of
National Forest System land or Bureau of Land Management District concerned
shall use the amount of project funds required to continue the project in that
fiscal year according to the agreement entered into under subsection
(a).</text>
</subparagraph><subparagraph id="ID5E200A628CEC41478573C0AA34895B7D"><enum>(B)</enum><header>Suspension of
work</header><text>The Secretary concerned shall suspend work on the project if
the project funds required by the agreement in the second and subsequent fiscal
years are not available.</text>
</subparagraph></paragraph></subsection></section><section id="ID94DD87E47B844B17A859E84A3C639298"><enum>207.</enum><header>Availability of
project funds</header>
<subsection id="IDABA0FF3F121B4365AFE64FE1EA972216"><enum>(a)</enum><header>Submission of Proposed
Projects To Obligate Funds</header><text>By September 30, 2008 (or as soon
thereafter as the Secretary concerned determines is practicable), and each
September 30 thereafter for each succeeding fiscal year through fiscal year
2011, a resource advisory committee shall submit to the Secretary concerned
pursuant to section 203(a)(1) a sufficient number of project proposals that, if
approved, would result in the obligation of at least the full amount of the
project funds reserved by the participating county in the preceding fiscal
year.</text>
</subsection><subsection id="IDD6DE0B2B31A34E3BA068E6B8CCC7E166"><enum>(b)</enum><header>Use or Transfer of
Unobligated Funds</header><text>Subject to section 208, if a resource advisory
committee fails to comply with subsection (a) for a fiscal year, any project
funds reserved by the participating county in the preceding fiscal year and
remaining unobligated shall be available for use as part of the project
submissions in the next fiscal year.</text>
</subsection><subsection id="ID276B288DDD464280B3C610439019D409"><enum>(c)</enum><header>Effect of Rejection of
Projects</header><text>Subject to section 208, any project funds reserved by a
participating county in the preceding fiscal year that are unobligated at the
end of a fiscal year because the Secretary concerned has rejected one or more
proposed projects shall be available for use as part of the project submissions
in the next fiscal year.</text>
</subsection><subsection id="ID4A4B4D0302744B4284033F31EDB748B7"><enum>(d)</enum><header>Effect of Court
Orders</header>
<paragraph id="ID90F70762586D4A9DAB146C9ED6AD506A"><enum>(1)</enum><header>In
general</header><text>If an approved project under this Act is enjoined or
prohibited by a Federal court, the Secretary concerned shall return the
unobligated project funds related to the project to the participating county or
counties that reserved the funds.</text>
</paragraph><paragraph id="ID5429D3D988E84542BEEE6256058CD1B8"><enum>(2)</enum><header>Expenditure of
funds</header><text>The returned funds shall be available for the county to
expend in the same manner as the funds reserved by the county under
subparagraph (B) or (C)(i) of section 102(d)(1).</text>
</paragraph></subsection></section><section id="ID6FEED10CE0584918A582249C7989C2C8"><enum>208.</enum><header>Termination of
authority</header>
<subsection id="ID8490430E0E73457680E30EC88E05883B"><enum>(a)</enum><header>In
General</header><text>The authority to initiate projects under this title shall
terminate on September 30, 2011.</text>
</subsection><subsection id="ID778C6F8F31D740F488183682098BC0A2"><enum>(b)</enum><header>Deposits in
Treasury</header><text>Any project funds not obligated by September 30, 2012,
shall be deposited in the Treasury of the United States.</text>
</subsection></section><enum>III</enum><header>COUNTY FUNDS</header>
<section id="IDE66D52DEC3EC4F47BF5B63640BC11D4D"><enum>301.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="ID2DBFDD7C38AE427E9A85639392292858"><enum>(1)</enum><header>County
funds</header><text>The term <term>county funds</term> means all funds an
eligible county elects under section 102(d) to reserve for expenditure in
accordance with this title.</text>
</paragraph><paragraph id="IDA4BBAA0FEB7C4C65B2284DA4C7290E2F"><enum>(2)</enum><header>Participating
county</header><text>The term <term>participating county</term> means an
eligible county that elects under section 102(d) to expend a portion of the
Federal funds received under section 102 in accordance with this title.</text>
</paragraph></section><section id="ID8B79180B7E83491ABBDD4B0A5A1855F3"><enum>302.</enum><header>Use</header>
<subsection id="ID43E3DB47D91D4D958F328D0B96CA25CA"><enum>(a)</enum><header>Authorized
Uses</header><text>A participating county, including any applicable agencies of
the participating county, shall use county funds, in accordance with this
title, only—</text>
<paragraph id="IDE39D09843D8A45039092E29F7AFB3C0F"><enum>(1)</enum><text>to carry out activities
under the Firewise Communities program to provide to homeowners in
fire-sensitive ecosystems education on, and assistance with implementing,
techniques in home siting, home construction, and home landscaping that can
increase the protection of people and property from wildfires;</text>
</paragraph><paragraph id="IDC4F139EDA1C340759E241351B0254F46"><enum>(2)</enum><text>to reimburse the
participating county for search and rescue and other emergency services,
including firefighting, that are—</text>
<subparagraph id="IDA93813E5B8354B9F9F9E98E688813C56"><enum>(A)</enum><text>performed on Federal land
after the date on which the use was approved under subsection (b);</text>
</subparagraph><subparagraph id="IDCB5B5970C3C6495AA4316EC11CA815BA"><enum>(B)</enum><text>paid for by the
participating county; and</text>
</subparagraph></paragraph><paragraph id="ID4A0CF727EBAD4232BED49BCD14A9B36A"><enum>(3)</enum><text>to develop community
wildfire protection plans in coordination with the appropriate Secretary
concerned.</text>
</paragraph></subsection><subsection id="IDC919267CFB414C658BC34BB4A893814E"><enum>(b)</enum><header>Proposals</header><text>A
participating county shall use county funds for a use described in subsection
(a) only after a 45-day public comment period, at the beginning of which the
participating county shall—</text>
<paragraph id="ID8395CF68243D4DFA8F4EAB84D13E745E"><enum>(1)</enum><text>publish in any
publications of local record a proposal that describes the proposed use of the
county funds; and</text>
</paragraph><paragraph id="ID3CA476448BFF4D2BA182FC0AFBD26176"><enum>(2)</enum><text>submit the proposal to
any resource advisory committee established under section 205 for the
participating county.</text>
</paragraph></subsection></section><section id="ID9EDC64070188422794879F6BFAEEAE9B"><enum>303.</enum><header>Certification</header>
<subsection id="IDA3BA0E79838E4A70B9BEE8F02B2A307D"><enum>(a)</enum><header>In
General</header><text>Not later than February 1 of the year after the year in
which any county funds were expended by a participating county, the appropriate
official of the participating county shall submit to the Secretary concerned a
certification that the county funds expended in the applicable year have been
used for the uses authorized under section 302(a), including a description of
the amounts expended and the uses for which the amounts were expended.</text>
</subsection><subsection id="IDB43549AD98AF46B78BCB2B43737F723D"><enum>(b)</enum><header>Review</header><text>The
Secretary concerned shall review the certifications submitted under subsection
(a) as the Secretary concerned determines to be appropriate.</text>
</subsection></section><section id="ID8080FB84BB9A4D679FEA900F32E3595A"><enum>304.</enum><header>Termination of
authority</header>
<subsection id="ID086015C8979D4E1D8E4D2EDEA332E2E6"><enum>(a)</enum><header>In
General</header><text>The authority to initiate projects under this title
terminates on September 30, 2011.</text>
</subsection><subsection id="ID84F8CBD4B49A46318D19BDBF4A0D1C20"><enum>(b)</enum><header>Availability</header><text>Any
county funds not obligated by September 30, 2012, shall be returned to the
Treasury of the United States.</text>
</subsection></section><enum>IV</enum><header>MISCELLANEOUS
PROVISIONS</header>
<section id="IDCAE75187A3B84D8E9F8338029E5C99EE"><enum>401.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary of Agriculture and the
Secretary of the Interior shall issue regulations to carry out the purposes of
this Act.</text>
</section><section id="IDDD2130695BA341D49F167C461F7D33D9"><enum>402.</enum><header>Authorization of
appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated such sums as are necessary to carry out this Act
for each of fiscal years 2008 through 2011.</text>
</section><section id="ID080095E2CBE64B70857AC36DE7E8B835"><enum>403.</enum><header>Treatment of funds and
revenues</header>
<subsection id="IDBE2F746F421843E799732F6AD383DE61"><enum>(a)</enum><header>Relation to Other
Appropriations</header><text>Funds made available under section 402 and funds
made available to a Secretary concerned under section 206 shall be in addition
to any other annual appropriations for the Forest Service and the Bureau of
Land Management.</text>
</subsection><subsection id="ID2EF4E13C744647489B68050A88C4073C"><enum>(b)</enum><header>Deposit of Revenues and
Other Funds</header><text>All revenues generated from projects pursuant to
title II, including any interest accrued from the revenues, shall be deposited
in the Treasury of the United
States.</text>
</subsection></section>.
(b)Forest receipt payments
to eligible states and counties
(1)The sixth paragraph under the heading FOREST
SERVICE
in the Act of May 23, 1908 (16 U.S.C. 500) is
amended in the first sentence by striking twenty-five percentum
and all that follows through shall be paid
and inserting the
following: an amount equal to the annual average of 25 percent of all
amounts received for the applicable fiscal year and each of the preceding 6
fiscal years from each national forest shall be paid
.
(2)Section 13 of the Act of March 1, 1911 (commonly known as the
Weeks Law
) (16 U.S.C. 500) is amended in the first sentence by
striking twenty-five percentum
and all that follows through
shall be paid
and inserting the following: an amount
equal to the annual average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal years from each
national forest shall be paid
.
(c)Payments in lieu of
taxes
(1)Section 6906 of title 31, United States Code, is amended
to read as follows:
6906.For each of fiscal years 2008 through
2012—
(1)each county or other eligible unit of local
government shall be entitled to payment under this chapter; and
(2)sums shall be made available to the
Secretary of the Interior for obligation or expenditure in accordance with this
chapter.
.
(2)The table of sections for chapter 69 of title 31,
United States Code, is amended by striking the item relating to section 6906
and inserting the following:
6906.
Funding.
.
(3)
(A)Notwithstanding the Budget Scorekeeping Guidelines and
the accompanying list of programs and accounts set forth in the joint
explanatory statement of the committee of conference accompanying Conference
Report 105–217, the section in this title regarding Payments in Lieu of Taxes
shall be treated in the baseline for purposes of section 257 of the Balanced
Budget and Emergency Deficit Control Act of 1985 (as in effect prior to
September 30, 2002), and by the Chairmen of the House and Senate Budget
Committees, as appropriate, for purposes of budget enforcement in the House and
Senate, and under the Congressional Budget Act of 1974 as if Payment in Lieu of
Taxes (14–1114–0–1–806) were an account designated as Appropriated Entitlements
and Mandatories for Fiscal Year 1997 in the joint explanatory statement of the
committee of conference accompanying Conference Report 105–217.
(B)This paragraph shall remain in effect for the fiscal years
to which the entitlement in section 6906 of title 31, United States Code (as
amended by paragraph (1)), applies.
602.Transfer to
abandoned mine reclamation fundSubparagraph (C) of section 402(i)(1) of the
Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(i)(1)) is
amended by striking and $9,000,000 on October 1, 2009
and
inserting $9,000,000 on October 1, 2009, and $9,000,000 on October 1,
2010
.
<enum>VII</enum><header>Disaster
relief</header>
<subtitle id="idCDF5B4E64D6A412198DE069C09B1B197"><enum>A</enum><header>Heartland and Hurricane
Ike disaster relief</header>
<section commented="no" display-inline="no-display-inline" id="id887B82B6E61044598123A2BC72289BA9" section-type="subsequent-section"><enum>701.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote><short-title>Heartland Disaster Tax Relief Act of
2008</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id610731D28D79402AA084F83537FC89CD" section-type="subsequent-section"><enum>702.</enum><header display-inline="yes-display-inline">Temporary tax relief for areas damaged by
2008 Midwestern severe storms, tornados, and flooding</header>
<subsection commented="no" display-inline="no-display-inline" id="idDBEDFBB2B4DF4C6885AB98F1BE82D081"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to the modifications described in
this section, the following provisions of or relating to the Internal Revenue
Code of 1986 shall apply to any Midwestern disaster area in addition to the
areas to which such provisions otherwise apply:</text>
<paragraph commented="no" display-inline="no-display-inline" id="idEE4DA010338D420A9DCDDCAF3632E9EB"><enum>(1)</enum><header display-inline="yes-display-inline">Go Zone benefits</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id1E2544C7274C462AB4F06BB0A1870D79"><enum>(A)</enum><text display-inline="yes-display-inline">Section 1400N (relating to tax benefits)
other than subsections (b), (d), (e), (i), (j), (m), and (o) thereof.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCE5DCE95B18241D881E767F4572D4F47"><enum>(B)</enum><text display-inline="yes-display-inline">Section 1400O (relating to education tax
benefits).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id01B18E4FD02E49CDAF56267D1860C05D"><enum>(C)</enum><text display-inline="yes-display-inline">Section 1400P (relating to housing tax
benefits).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC8B641251D804C0984E510AA915DDCF1"><enum>(D)</enum><text display-inline="yes-display-inline">Section 1400Q (relating to special rules
for use of retirement funds).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98E69D218442450BA58CC8EB6AFF5B85"><enum>(E)</enum><text display-inline="yes-display-inline">Section 1400R(a) (relating to employee
retention credit for employers).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8B30D5435804467AA04D069EE4E74120"><enum>(F)</enum><text display-inline="yes-display-inline">Section 1400S (relating to additional tax
relief) other than subsection (d) thereof.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3A27D59A38CD42DFAEA6ECE865B396F8"><enum>(G)</enum><text display-inline="yes-display-inline">Section 1400T (relating to special rules
for mortgage revenue bonds).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA3D214DF54D541908EAC7BA51599437B"><enum>(2)</enum><header display-inline="yes-display-inline">Other benefits included in Katrina
Emergency Tax Relief Act of 2005</header><text display-inline="yes-display-inline">Sections 302, 303, 304, 401, and 405 of the
Katrina Emergency Tax Relief Act of 2005.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF7B88A2936E440D0A0F1B4A8C122B695"><enum>(b)</enum><header display-inline="yes-display-inline">Midwestern disaster area</header>
<paragraph commented="no" display-inline="no-display-inline" id="id5BB91640B16A4DD596F9B8E4F39A678F"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this section and for
applying the substitutions described in subsections (d) and (e), the term
<term>Midwestern disaster area</term> means an area—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id8BAA8C78F23F4A86A00E72235B8C6A6B"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to which a major disaster has
been declared by the President on or after May 20, 2008, and before August 1,
2008, under section 401 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of severe storms, tornados, or flooding occurring in
any of the States of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan,
Minnesota, Missouri, Nebraska, and Wisconsin, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id47DAE51250864EBB9F34EE79A9D47731"><enum>(B)</enum><text display-inline="yes-display-inline">determined by the President to warrant
individual or individual and public assistance from the Federal Government
under such Act with respect to damages attributable to such severe storms,
tornados, or flooding.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id01F90D4A70614E0A8F63ED596B4875BA"><enum>(2)</enum><header display-inline="yes-display-inline">Certain benefits available to areas
eligible only for public assistance</header><text display-inline="yes-display-inline">For purposes of applying this section to
benefits under the following provisions, paragraph (1) shall be applied without
regard to subparagraph (B):</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD7579DAEB80C41D78880CDDD78F0A82C"><enum>(A)</enum><text display-inline="yes-display-inline">Sections 1400Q, 1400S(b), and 1400S(d) of
the Internal Revenue Code of 1986.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idECC595468CEC4AE3A7348D874DC7BBE4"><enum>(B)</enum><text display-inline="yes-display-inline">Sections 302, 401, and 405 of the Katrina
Emergency Tax Relief Act of 2005.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE135FCFE82F042EF805F7774CB7CD15D"><enum>(c)</enum><header display-inline="yes-display-inline">References</header>
<paragraph commented="no" display-inline="no-display-inline" id="idCA335F99F40E4323A288BA5F4668580A"><enum>(1)</enum><header display-inline="yes-display-inline">Area</header><text display-inline="yes-display-inline">Any reference in such provisions to the
Hurricane Katrina disaster area or the Gulf Opportunity Zone shall be treated
as a reference to any Midwestern disaster area and any reference to the
Hurricane Katrina disaster area or the Gulf Opportunity Zone within a State
shall be treated as a reference to all Midwestern disaster areas within the
State.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9688785658644D07A4FFCF596E4E7F70"><enum>(2)</enum><header display-inline="yes-display-inline">Items attributable to
disaster</header><text display-inline="yes-display-inline">Any reference in
such provisions to any loss, damage, or other item attributable to Hurricane
Katrina shall be treated as a reference to any loss, damage, or other item
attributable to the severe storms, tornados, or flooding giving rise to any
Presidential declaration described in subsection (b)(1)(A).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9C451E35546E483DAEDE8C9847FD04A4"><enum>(3)</enum><header display-inline="yes-display-inline">Applicable disaster date</header><text display-inline="yes-display-inline">For purposes of applying the substitutions
described in subsections (d) and (e), the term <term>applicable disaster
date</term> means, with respect to any Midwestern disaster area, the date on
which the severe storms, tornados, or flooding giving rise to the Presidential
declaration described in subsection (b)(1)(A) occurred.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id29214DAF48A649D49F4896B8886528D2"><enum>(d)</enum><header display-inline="yes-display-inline">Modifications to 1986 Code</header><text display-inline="yes-display-inline">The following provisions of the Internal
Revenue Code of 1986 shall be applied with the following modifications:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id3D1E60993EE049C2A93C171DF7ED1F9B"><enum>(1)</enum><header display-inline="yes-display-inline">Tax-exempt bond financing</header><text display-inline="yes-display-inline">Section 1400N(a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id0DB0F59D0B154A11966E650EBC120115"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Midwestern
disaster area bond</quote> for <quote>qualified Gulf Opportunity Zone
Bond</quote> each place it appears, except that in determining whether a bond
is a qualified Midwestern disaster area bond—</text>
<clause commented="no" display-inline="no-display-inline" id="idBCAC3B352400458AB7E239803E3DBC74"><enum>(i)</enum><text display-inline="yes-display-inline">paragraph (2)(A)(i) shall be applied by
only treating costs as qualified project costs if—</text>
<subclause commented="no" display-inline="no-display-inline" id="idC50957927FE3424794868A2C77D23D93"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a project involving a
private business use (as defined in section 141(b)(6)), either the person using
the property suffered a loss in a trade or business attributable to the severe
storms, tornados, or flooding giving rise to any Presidential declaration
described in subsection (b)(1)(A) or is a person designated for purposes of
this section by the Governor of the State in which the project is located as a
person carrying on a trade or business replacing a trade or business with
respect to which another person suffered such a loss, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idBFF9BBCFD3DC406E8E3DACE9D81D4A9A"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a project relating to public
utility property, the project involves repair or reconstruction of public
utility property damaged by such severe storms, tornados, or flooding,
and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idEB78E12D8347414F9BF6FDFADCF3B530"><enum>(ii)</enum><text display-inline="yes-display-inline">paragraph (2)(A)(ii) shall be applied by
treating an issue as a qualified mortgage issue only if 95 percent or more of
the net proceeds (as defined in section 150(a)(3)) of the issue are to be used
to provide financing for mortgagors who suffered damages to their principal
residences attributable to such severe storms, tornados, or flooding.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id472A54B4C70648C4A2CCE4567295A6C0"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>any State in which a
Midwestern disaster area is located</quote> for <quote>the State of Alabama,
Louisiana, or Mississippi</quote> in paragraph (2)(B),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id67FFA50705184FB687CCD40C5358177B"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>designated for
purposes of this section (on the basis of providing assistance to areas in the
order in which such assistance is most needed)</quote> for <quote>designated
for purposes of this section</quote> in paragraph (2)(C),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2451CB72DCBC4944B776FB7B78AC020B"><enum>(D)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1,
2013</quote> for <quote>January 1, 2011</quote> in paragraph (2)(D),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id525181FCD65548AF8A830A77262902E7"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (3)(A)—</text>
<clause commented="no" display-inline="no-display-inline" id="idB8AF00463B5C4B3E93C35ED8A54490F5"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>$1,000</quote> for
<quote>$2,500</quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id1704A66F7E93444DAA37CEDB4204F7B5"><enum>(ii)</enum><text display-inline="yes-display-inline">by substituting <quote>before the earliest
applicable disaster date for Midwestern disaster areas within the State</quote>
for <quote>before August 28, 2005</quote>,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA367A991917C45CCB7030BDC1D086DC0"><enum>(F)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Midwestern
disaster area repair or construction</quote> for <quote>qualified GO Zone
repair or construction</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id11D01E2CF5BF4896AD3BF831DA580C06"><enum>(G)</enum><text display-inline="yes-display-inline">by substituting <quote>after the date of
the enactment of the <short-title>Heartland Disaster Tax
Relief Act of 2008</short-title> and before January 1, 2013</quote> for
<quote>after the date of the enactment of this paragraph and before January 1,
2011</quote> in paragraph (7)(C), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFD3E47792D184E13A03C5D899BCEACBD"><enum>(H)</enum><text>by disregarding paragraph
(8) thereof.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id90FF9B410D944C5D927C2939408BE3BB"><enum>(2)</enum><header display-inline="yes-display-inline">Low-income housing credit</header><text display-inline="yes-display-inline">Section 1400N(c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id0714BDF5594B4E89935588568532BC6C"><enum>(A)</enum><text display-inline="yes-display-inline">only with respect to calendar years 2008,
2009, and 2010,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3702D36506CD4849BBF565CDAE0FF4FA"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>Disaster Recovery
Assistance housing amount</quote> for <quote>Gulf Opportunity housing
amount</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC2C0191184604D22AC1D647D6BF02933"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (1)(B)—</text>
<clause commented="no" display-inline="no-display-inline" id="id287D2E1B0AE54DE09BF1E2A22991BCE6"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>$8.00</quote> for
<quote>$18.00</quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id644B143DDCCC43B78949E0C2EDDED4C1"><enum>(ii)</enum><text display-inline="yes-display-inline">by substituting <quote>before the earliest
applicable disaster date for Midwestern disaster areas within the State</quote>
for <quote>before August 28, 2005</quote>, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id417FC66DF849452CB50F03194A2A74C7"><enum>(D)</enum><text display-inline="yes-display-inline">determined without regard to paragraphs
(2), (3), (4), (5), and (6) thereof.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id202E886963444E3F9F7ACB8542138E37"><enum>(3)</enum><header display-inline="yes-display-inline">Expensing for certain demolition and
clean-up costs</header><text display-inline="yes-display-inline">Section
1400N(f)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFBE7D8646E0F409BB76A52CA74CA76DA"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster
Recovery Assistance clean-up cost</quote> for <quote>qualified Gulf Opportunity
Zone clean-up cost</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC89E2F3F89FB42349225056731FD6A1A"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on the
applicable disaster date and ending on December 31, 2010</quote> for
<quote>beginning on August 28, 2005, and ending on December 31, 2007</quote> in
paragraph (2), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD449C8470D0B46C78A09063EB4DE84F7"><enum>(C)</enum><text display-inline="yes-display-inline">by treating costs as qualified Disaster
Recovery Assistance clean-up costs only if the removal of debris or demolition
of any structure was necessary due to damage attributable to the severe storms,
tornados, or flooding giving rise to any Presidential declaration described in
subsection (b)(1)(A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBF3321063BEB4D91A114114428C022E2"><enum>(4)</enum><header display-inline="yes-display-inline">Extension of expensing for environmental
remediation costs</header><text display-inline="yes-display-inline">Section
1400N(g)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id8A63254732C940F7A66528731960CB8F"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable
disaster date</quote> for <quote>August 28, 2005</quote> each place it
appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5DE634463DF2424FB7F3D7C7D264B02F"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1,
2011</quote> for <quote>January 1, 2008</quote> in paragraph (1),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD2D44E0163124E8D952BEE5A735BFD6A"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>December 31,
2010</quote> for <quote>December 31, 2007</quote> in paragraph (1), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB1667EE721EB4069B347F351E7DD1BAF"><enum>(D)</enum><text display-inline="yes-display-inline">by treating a site as a qualified
contaminated site only if the release (or threat of release) or disposal of a
hazardous substance at the site was attributable to the severe storms,
tornados, or flooding giving rise to any Presidential declaration described in
subsection (b)(1)(A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id640CDAB1F1DF44FBAFFF2C67F80D4F55"><enum>(5)</enum><header display-inline="yes-display-inline">Increase in rehabilitation
credit</header><text display-inline="yes-display-inline">Section 1400N(h), as
amended by this Act—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id45BFBB5DA4164CF8A1AC51386AB4F658"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable
disaster date</quote> for <quote>August 28, 2005</quote>,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0D8CE178AA9B47B69B9FE6DC04BD10D3"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>December 31,
2011</quote> for <quote>December 31, 2009</quote> in paragraph (1), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id244787C8C5FB440589FDE5FAF0114E17"><enum>(C)</enum><text display-inline="yes-display-inline">by only applying such subsection to
qualified rehabilitation expenditures with respect to any building or structure
which was damaged or destroyed as a result of the severe storms, tornados, or
flooding giving rise to any Presidential declaration described in subsection
(b)(1)(A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id914DF3A3070042D580861BF0ACD01713"><enum>(6)</enum><header display-inline="yes-display-inline">Treatment of net operating losses
attributable to disaster losses</header><text display-inline="yes-display-inline">Section 1400N(k)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id36FE0F4A61214598B85C433075018B4D"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster
Recovery Assistance loss</quote> for <quote>qualified Gulf Opportunity Zone
loss</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id75CA909A63544EC3B7723794EA07FEC8"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>after the day before
the applicable disaster date, and before January 1, 2011</quote> for
<quote>after August 27, 2005, and before January 1, 2008</quote> each place it
appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAB1584B194E3425183508D6A3B6FF217"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable
disaster date</quote> for <quote>August 28, 2005</quote> in paragraph
(2)(B)(ii)(I),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBFD7FCDDAB6D4BDBB2E3972821573660"><enum>(D)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster
Recovery Assistance property</quote> for <quote>qualified Gulf Opportunity Zone
property</quote> in paragraph (2)(B)(iv), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id058FB22F961E4C94BC151752FC52469F"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster
Recovery Assistance casualty loss</quote> for <quote>qualified Gulf Opportunity
Zone casualty loss</quote> each place it appears.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB0D5F4E6779B4F2BA2A9DAAF45EABE53"><enum>(7)</enum><header display-inline="yes-display-inline">Credit to holders of tax credit
bonds</header><text display-inline="yes-display-inline">Section
1400N(l)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFB1532DB34EF4A3DAAED83B71922BD10"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>Midwestern tax
credit bond</quote> for <quote>Gulf tax credit bond</quote> each place it
appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id10D2AC6F9ED74EECAF2B331A66B5D9EE"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>any State in which a
Midwestern disaster area is located or any instrumentality of the State</quote>
for <quote>the State of Alabama, Louisiana, or Mississippi</quote> in paragraph
(4)(A)(i),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC87DAA0976684654B7D7127CABF2EB67"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>after December 31,
2008 and before January 1, 2010</quote> for <quote>after December 31, 2005, and
before January 1, 2007</quote>,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id304851E4CAE34B9C9A1ED21788E940EA"><enum>(D)</enum><text display-inline="yes-display-inline">by substituting <quote>shall not exceed
$100,000,000 for any State with an aggregate population located in all
Midwestern disaster areas within the State of at least 2,000,000, $50,000,000
for any State with an aggregate population located in all Midwestern disaster
areas within the State of at least 1,000,000 but less than 2,000,000, and zero
for any other State. The population of a State within any area shall be
determined on the basis of the most recent census estimate of resident
population released by the Bureau of Census before the earliest applicable
disaster date for Midwestern disaster areas within the State.</quote> for
<quote>shall not exceed</quote> and all that follows in paragraph (4)(C),
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA314A1C75AD345A987F54B64BAF8196A"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>the earliest
applicable disaster date for Midwestern disaster areas within the State</quote>
for <quote>August 28, 2005</quote> in paragraph (5)(A).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4D5F2AFE9DD24C2C9E1A9C4BBF1B8337"><enum>(8)</enum><header display-inline="yes-display-inline">Education tax benefits</header><text display-inline="yes-display-inline">Section 1400O, by substituting <quote>2008
or 2009</quote> for <quote>2005 or 2006</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7523FDC354B348E49B3F6CDFBB3D745F"><enum>(9)</enum><header display-inline="yes-display-inline">Housing tax benefits</header><text display-inline="yes-display-inline">Section 1400P, by substituting <quote>the
applicable disaster date</quote> for <quote>August 28, 2005</quote> in
subsection (c)(1).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id037D7C3A13C8419ABA198F2616921BDC"><enum>(10)</enum><header display-inline="yes-display-inline">Special rules for use of retirement
funds</header><text display-inline="yes-display-inline">Section 1400Q—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idA0BD0311A77B4F3AB6AC9EC287F6BAF8"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified Disaster
Recovery Assistance distribution</quote> for <quote>qualified hurricane
distribution</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB882C650314F44CB9EC2A3089DC5EFA7"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>on or after the
applicable disaster date and before January 1, 2010</quote> for <quote>on or
after August 25, 2005, and before January 1, 2007</quote> in subsection
(a)(4)(A)(i),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEF75E5E8336A4AAB92532EB5FF65F037"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable
disaster date</quote> for <quote>August 28, 2005</quote> in subsections
(a)(4)(A)(i) and (c)(3)(B),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id82C3575699934140BE21766E8A1AF5E1"><enum>(D)</enum><text display-inline="yes-display-inline">by disregarding clauses (ii) and (iii) of
subsection (a)(4)(A) thereof,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC545411F689B45DDBB5B3FD8B16A3B3C"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified storm
damage distribution</quote> for <quote>qualified Katrina distribution</quote>
each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC134557EA9C34B54B016B197C65F84DA"><enum>(F)</enum><text display-inline="yes-display-inline">by substituting <quote>after the date which
is 6 months before the applicable disaster date and before the date which is
the day after the applicable disaster date</quote> for <quote>after February
28, 2005, and before August 29, 2005</quote> in subsection
(b)(2)(B)(ii),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id474993CAAD33432FA9193BF709171D2D"><enum>(G)</enum><text display-inline="yes-display-inline">by substituting <quote>the Midwestern
disaster area, but not so purchased or constructed on account of severe storms,
tornados, or flooding giving rise to the designation of the area as a disaster
area</quote> for <quote>the Hurricane Katrina disaster area, but not so
purchased or constructed on account of Hurricane Katrina</quote> in subsection
(b)(2)(B)(iii),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAE94EA7EAD3D403B92855705C3D5DA7B"><enum>(H)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on the
applicable disaster date and ending on the date which is 5 months after the
date of the enactment of the <short-title>Heartland
Disaster Tax Relief Act of 2008</short-title></quote> for <quote>beginning on
August 25, 2005, and ending on February 28, 2006</quote> in subsection
(b)(3)(A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id00F4ED38B1344DDEAEBD5E3E2B5FCAE5"><enum>(I)</enum><text display-inline="yes-display-inline">by substituting <quote>qualified storm
damage individual</quote> for <quote>qualified Hurricane Katrina
individual</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4547478BD21E44F1AA33481F182EFBB5"><enum>(J)</enum><text display-inline="yes-display-inline">by substituting <quote>December 31,
2009</quote> for <quote>December 31, 2006</quote> in subsection
(c)(2)(A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF6998E8873A340FA9B027766A24F7FF6"><enum>(K)</enum><text display-inline="yes-display-inline">by disregarding subparagraphs (C) and (D)
of subsection (c)(3) thereof,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1B851684CDCB45B78BF7EF45DF94A4C1"><enum>(L)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on the
date of the enactment of the <short-title>Heartland
Disaster Tax Relief Act of 2008</short-title> and ending on December 31,
2009</quote> for <quote>beginning on September 24, 2005, and ending on December
31, 2006</quote> in subsection (c)(4)(A)(i),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id633C92F00FF1452D919C342C813B5B92"><enum>(M)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable
disaster date</quote> for <quote>August 25, 2005</quote> in subsection
(c)(4)(A)(ii), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6FBE71DE062A4FF9B7FD9A1F7E8E1AC5"><enum>(N)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1,
2010</quote> for <quote>January 1, 2007</quote> in subsection
(d)(2)(A)(ii).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEAD761550B4B4B32AFB3A02C799A98EA"><enum>(11)</enum><header display-inline="yes-display-inline">Employee retention credit for employers
affected by severe storms, tornados, and flooding</header><text display-inline="yes-display-inline">Section 1400R(a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idBFEC8300C08046D6974E52F820C5C630"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable
disaster date</quote> for <quote>August 28, 2005</quote> each place it
appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id282E66BB70B14138856D4FFA689F88B8"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1,
2009</quote> for <quote>January 1, 2006</quote> both places it appears,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id27167AFA5AA5446EA35C139D322AC75D"><enum>(C)</enum><text display-inline="yes-display-inline">only with respect to eligible employers who
employed an average of not more than 200 employees on business days during the
taxable year before the applicable disaster date.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id79A5E52D7A9148A9ADD79676C362E6CB"><enum>(12)</enum><header display-inline="yes-display-inline">Temporary suspension of limitations on
charitable contributions</header><text display-inline="yes-display-inline">Section 1400S(a), by substituting the
following paragraph for paragraph (4) thereof:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id58BDF9D53D3345C0811DE68E9814550D" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idF3FEC96D6DA24A3D83465F7494ECC7FD"><enum>(4)</enum><header display-inline="yes-display-inline">Qualified contributions</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idAB2DAE4A85EA4BF98DE2433DD8117E38"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<quote>qualified contribution</quote> means any charitable contribution (as
defined in section 170(c)) if—</text>
<clause commented="no" display-inline="no-display-inline" id="id1ADFD92477984545899D3B94E32DFFB6"><enum>(i)</enum><text display-inline="yes-display-inline">such contribution—</text>
<subclause commented="no" display-inline="no-display-inline" id="id00E6DCABF50043B1B341627DCD95A8DA"><enum>(I)</enum><text display-inline="yes-display-inline">is paid during the period beginning on the
earliest applicable disaster date for all States and ending on December 31,
2008, in cash to an organization described in section 170(b)(1)(A), and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idA082E691C47649BFA4F75ADAEF8E3D43"><enum>(II)</enum><text display-inline="yes-display-inline">is made for relief efforts in 1 or more
Midwestern disaster areas,</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id88AD4BDF795E495686D7AC1EA687D0DC"><enum>(ii)</enum><text display-inline="yes-display-inline">the taxpayer obtains from such organization
contemporaneous written acknowledgment (within the meaning of section
170(f)(8)) that such contribution was used (or is to be used) for relief
efforts in 1 or more Midwestern disaster areas, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD787B52B784E4F0F83FAE48E2592C66E"><enum>(iii)</enum><text display-inline="yes-display-inline">the taxpayer has elected the application of
this subsection with respect to such contribution.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCF69ED3E2D144B59B1F69DF4ACCFE8CD"><enum>(B)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">Such term shall not include a contribution
by a donor if the contribution is—</text>
<clause commented="no" display-inline="no-display-inline" id="id80D5F8BB7DF24C92B45B0D30B1A96A7C"><enum>(i)</enum><text display-inline="yes-display-inline">to an organization described in section
509(a)(3), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id3EE5D29CB63D45E4BA897CBE10953827"><enum>(ii)</enum><text display-inline="yes-display-inline">for establishment of a new, or maintenance
of an existing, donor advised fund (as defined in section 4966(d)(2)).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id920AFBA13E68425AAEEA941C3DD11F21"><enum>(C)</enum><header display-inline="yes-display-inline">Application of election to partnerships and
S corporations</header><text display-inline="yes-display-inline">In the case of
a partnership or S corporation, the election under subparagraph (A)(iii) shall
be made separately by each partner or
shareholder.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF3F17DF5F8044D1BB59BA6CC5EE42AA2"><enum>(13)</enum><header display-inline="yes-display-inline">Suspension of certain limitations on
personal casualty losses</header><text display-inline="yes-display-inline">Section 1400S(b)(1), by substituting
<quote>the applicable disaster date</quote> for <quote>August 25,
2005</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF7FB05EF4CA149858D65C2822CE66CCF"><enum>(14)</enum><header display-inline="yes-display-inline">Special rule for determining earned
income</header><text display-inline="yes-display-inline">Section
1400S(d)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id15031880CC5541EF8FA66AD9B9E1856B"><enum>(A)</enum><text display-inline="yes-display-inline">by treating an individual as a qualified
individual if such individual's principal place of abode on the applicable
disaster date was located in a Midwestern disaster area,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB06377DC474B4044ADADEA6E37533EAA"><enum>(B)</enum><text display-inline="yes-display-inline">by treating the applicable disaster date
with respect to any such individual as the applicable date for purposes of such
subsection, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5F9271EAAFB44580BB1617BDB4CE1930"><enum>(C)</enum><text display-inline="yes-display-inline">by treating an area as described in
paragraph (2)(B)(ii) thereof if the area is a Midwestern disaster area only by
reason of subsection (b)(2) of this section (relating to areas eligible only
for public assistance).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB136147DEEFD40E392D207DDD372AF7D"><enum>(15)</enum><header display-inline="yes-display-inline">Adjustments regarding taxpayer and
dependency status</header><text display-inline="yes-display-inline">Section
1400S(e), by substituting <quote>2008 or 2009</quote> for <quote>2005 or
2006</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id170FDD6BE10E4DD799AE6A603E0D0A59"><enum>(e)</enum><header display-inline="yes-display-inline">Modifications to Katrina Emergency Tax
Relief Act of 2005</header><text display-inline="yes-display-inline">The
following provisions of the Katrina Emergency Tax Relief Act of 2005 shall be
applied with the following modifications:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id741857ACF06A41CB8DB85E7C783281C5"><enum>(1)</enum><header display-inline="yes-display-inline">Additional exemption for housing displaced
individual</header><text display-inline="yes-display-inline">Section
302—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idE36B610BC8CE42C38D9C1A2116129554"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>2008 or 2009</quote>
for <quote>2005 or 2006</quote> in subsection (a) thereof,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF3B09805F1B94FC8AFB583D1412F2334"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>Midwestern displaced
individual</quote> for <quote>Hurricane Katrina displaced individual</quote>
each place it appears, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id429F7862062A4869B1C45458447EB22F"><enum>(C)</enum><text display-inline="yes-display-inline">by treating an area as a core disaster area
for purposes of applying subsection (c) thereof if the area is a Midwestern
disaster area without regard to subsection (b)(2) of this section (relating to
areas eligible only for public assistance).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id19A1D36A2C384396A8602F42974AB665"><enum>(2)</enum><header display-inline="yes-display-inline">Increase in standard mileage
rate</header><text display-inline="yes-display-inline">Section 303, by
substituting <quote>beginning on the applicable disaster date and ending on
December 31, 2008</quote> for <quote>beginning on August 25, 2005, and ending
on December 31, 2006</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBF85A7124F8D4CB487EE309B2E53F9B4"><enum>(3)</enum><header display-inline="yes-display-inline">Mileage reimbursements for charitable
volunteers</header><text display-inline="yes-display-inline">Section
304—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id12A1A1EFBF16416DA693FA97F8AB2B88"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on the
applicable disaster date and ending on December 31, 2008</quote> for
<quote>beginning on August 25, 2005, and ending on December 31, 2006</quote> in
subsection (a), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6623AC78DC7545D9BAFD653C3F54A27F"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable
disaster date</quote> for <quote>August 25, 2005</quote> in subsection
(a).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDE11CC21DD8D4248A60A6C5967E412F3"><enum>(4)</enum><header display-inline="yes-display-inline">Exclusion of certain cancellation of
indebtedness income</header><text display-inline="yes-display-inline">Section
401—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFE686E6E2C534DF788E7E11DCC49CB74"><enum>(A)</enum><text display-inline="yes-display-inline">by treating an individual whose principal
place of abode on the applicable disaster date was in a Midwestern disaster
area (determined without regard to subsection (b)(2) of this section) as an
individual described in subsection (b)(1) thereof, and by treating an
individual whose principal place of abode on the applicable disaster date was
in a Midwestern disaster area solely by reason of subsection (b)(2) of this
section as an individual described in subsection (b)(2) thereof,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8527EAC10CDF48BFACB0BBB9705209F8"><enum>(B)</enum><text display-inline="yes-display-inline">by substituting <quote>the applicable
disaster date</quote> for <quote>August 28, 2005</quote> both places it
appears, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA248515256B54A0BAAB32C4A5FE4DC8A"><enum>(C)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1,
2010</quote> for <quote>January 1, 2007</quote> in subsection (e).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4E17FE2C572C4E249DF627B436BF9AC8"><enum>(5)</enum><header display-inline="yes-display-inline">Extension of replacement period for
nonrecognition of gain</header><text display-inline="yes-display-inline">Section 405, by substituting <quote>on or
after the applicable disaster date</quote> for <quote>on or after August 25,
2005</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id1959E643D48B4F64BBD3B66BAA44C08E" section-type="subsequent-section"><enum>703.</enum><header display-inline="yes-display-inline">Reporting requirements relating to disaster
relief contributions</header>
<subsection commented="no" display-inline="no-display-inline" id="id880AE79FFEE84E1D82D00823F3FC1AFC"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 6033(b) (relating to returns of
certain organizations described in section 501(c)(3)) is amended by striking
<quote>and</quote> at the end of paragraph (13), by redesignating paragraph
(14) as paragraph (15), and by adding after paragraph (13) the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id40BE19A954FC44208FAC0E2DB1DE9CC5" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idFA9003D57E0D40B983DEF58CCE5AECEA"><enum>(14)</enum><text display-inline="yes-display-inline">such information as the Secretary may
require with respect to disaster relief activities, including the amount and
use of qualified contributions to which section 1400S(a) applies,
and</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3E57AF44D4EF4E8E8D1068BCB9DD3570"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to returns the due date for which (determined without
regard to any extension) occurs after December 31, 2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idE5BDA0B759F74BFBA9F425CB84AFC4C1" section-type="subsequent-section"><enum>704.</enum><header display-inline="yes-display-inline">Temporary tax-exempt bond financing and
low-income housing tax relief for areas damaged by Hurricane Ike</header>
<subsection commented="no" display-inline="no-display-inline" id="id6F78A3DFE2D841F8BFBCB72C1F36A3D4"><enum>(a)</enum><header display-inline="yes-display-inline">Tax-exempt bond financing</header><text display-inline="yes-display-inline">Section 1400N(a) of the Internal Revenue
Code of 1986 shall apply to any Hurricane Ike disaster area in addition to any
other area referenced in such section, but with the following
modifications:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id5D8651E6006444D7AD96F9A6BBBA18D7"><enum>(1)</enum><text display-inline="yes-display-inline">By substituting <quote>qualified Hurricane
Ike disaster area bond</quote> for <quote>qualified Gulf Opportunity Zone
Bond</quote> each place it appears, except that in determining whether a bond
is a qualified Hurricane Ike disaster area bond—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3CA79CC1EB564F56A16C5088044C6271"><enum>(A)</enum><text display-inline="yes-display-inline">paragraph (2)(A)(i) shall be applied by
only treating costs as qualified project costs if—</text>
<clause commented="no" display-inline="no-display-inline" id="id7532EF255C2A479483B45F54AC04FE97"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a project involving a
private business use (as defined in section 141(b)(6)), either the person using
the property suffered a loss in a trade or business attributable to Hurricane
Ike or is a person designated for purposes of this section by the Governor of
the State in which the project is located as a person carrying on a trade or
business replacing a trade or business with respect to which another person
suffered such a loss, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idFCE6B500AA764C52978E297678D8B0B9"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a project relating to public
utility property, the project involves repair or reconstruction of public
utility property damaged by Hurricane Ike, and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB93848807E1641888CF2DA5EA92BF655"><enum>(B)</enum><text display-inline="yes-display-inline">paragraph (2)(A)(ii) shall be applied by
treating an issue as a qualified mortgage issue only if 95 percent or more of
the net proceeds (as defined in section 150(a)(3)) of the issue are to be used
to provide financing for mortgagors who suffered damages to their principal
residences attributable to Hurricane Ike.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDC4520BD55064C4386CD4E1A390C4EF9"><enum>(2)</enum><text display-inline="yes-display-inline">By substituting <quote>any State in which
any Hurricane Ike disaster area is located</quote> for <quote>the State of
Alabama, Louisiana, or Mississippi</quote> in paragraph (2)(B).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idADF26D41F8D5424FAAFF96AC54CDF0B8"><enum>(3)</enum><text display-inline="yes-display-inline">By substituting <quote>designated for
purposes of this section (on the basis of providing assistance to areas in the
order in which such assistance is most needed)</quote> for <quote>designated
for purposes of this section</quote> in paragraph (2)(C).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id26741D3F30F04061A932C6655ACE55CD"><enum>(4)</enum><text display-inline="yes-display-inline">By substituting <quote>January 1,
2013</quote> for <quote>January 1, 2011</quote> in paragraph (2)(D).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5B89E9684A774F1EB706B2AABA95348C"><enum>(5)</enum><text display-inline="yes-display-inline">By substituting the following for
subparagraph (A) of paragraph (3):</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9D111ACB1A9D446FB49543EE0BF4D4CC" reported-display-style="italic" style="OLC">
<subparagraph id="IDbf64aa61ec724f4c89e4d74619f6644c"><enum>(A)</enum><header>Aggregate amount
designated</header><text>The maximum aggregate face amount of bonds which may
be designated under this subsection with respect to any State shall not exceed
the product of $2,000 multiplied by the portion of the State population which
is in—</text>
<clause id="idCB773F83E69C4ECCAA89D01848F9A573"><enum>(i)</enum><text>in the case of Texas, the
counties of Brazoria, Chambers, Galveston, Jefferson, and Orange, and</text>
</clause><clause id="idD62CF0CAA77E4E678855DEFA3AF96D3C"><enum>(ii)</enum><text>in the case of
Louisiana, the parishes of Calcasieu and Cameron,</text>
</clause><continuation-text continuation-text-level="subparagraph">(as determined on the basis of the most
recent census estimate of resident population released by the Bureau of Census
before September 13,
2008).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id867ED2F4D5D14342A3F5D539698287A6"><enum>(6)</enum><text display-inline="yes-display-inline">By substituting <quote>qualified Hurricane
Ike disaster area repair or construction</quote> for <quote>qualified GO Zone
repair or construction</quote> each place it appears.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5ECA01E533DE4555B0118CE3A6B72E13"><enum>(7)</enum><text display-inline="yes-display-inline">By substituting <quote>after the date of
the enactment of the <short-title>Heartland Disaster Tax
Relief Act of 2008</short-title> and before January 1, 2013</quote> for
<quote>after the date of the enactment of this paragraph and before January 1,
2011</quote> in paragraph (7)(C).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA2EA0E3423374A6ABD573EAD5C186C7E"><enum>(8)</enum><text>By disregarding paragraph
(8) thereof.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD6DB164B91F24EA19BD313F6AFDB8703"><enum>(9)</enum><text>By substituting
<quote>any Hurricane Ike disaster area</quote> for <quote>the Gulf Opportunity
Zone</quote> each place it appears.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC51D74CDDB324ADDBC8D8ED94A8AF83B"><enum>(b)</enum><header display-inline="yes-display-inline">Low-income housing credit</header><text display-inline="yes-display-inline">Section 1400N(c) of the Internal Revenue
Code of 1986 shall apply to any Hurricane Ike disaster area in addition to any
other area referenced in such section, but with the following
modifications:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id6BCD96AE819D4639AD16A252F6909257"><enum>(1)</enum><text display-inline="yes-display-inline">Only with respect to calendar years 2008,
2009, and 2010.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id157D3C0C6DA6419A996CD52C3777ADF3"><enum>(2)</enum><text>By substituting
<quote>any Hurricane Ike disaster area</quote> for <quote>the Gulf Opportunity
Zone</quote> each place it appears.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id858C903F428D4C65A427BA0718304F48"><enum>(3)</enum><text display-inline="yes-display-inline">By substituting <quote>Hurricane Ike
Recovery Assistance housing amount</quote> for <quote>Gulf Opportunity housing
amount</quote> each place it appears.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idACE2D318F4834B028413538A5CAC096F"><enum>(4)</enum><text display-inline="yes-display-inline">By substituting the following for
subparagraph (B) of paragraph (1):</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idA71F2B05BCDC488BBE0705F34D7D69E0" reported-display-style="italic" style="OLC">
<subparagraph id="ID6b036e69d590478f8bef311f19ebaae2"><enum>(B)</enum><header>Hurricane Ike housing
amount</header><text>For purposes of subparagraph (A), the term
<quote>Hurricane Ike housing amount</quote> means, for any calendar year, the
amount equal to the product of $16.00 multiplied by the portion of the State
population which is in—</text>
<clause id="id757BDA47639944C8A21EC24D5EF8516F"><enum>(i)</enum><text>in the case of Texas, the
counties of Brazoria, Chambers, Galveston, Jefferson, and Orange, and</text>
</clause><clause id="id2BC87F990C68487AADCD72999B2EB8D4"><enum>(ii)</enum><text>in the case of
Louisiana, the parishes of Calcasieu and Cameron,</text>
</clause><continuation-text continuation-text-level="subparagraph">(as determined on the basis of the most
recent census estimate of resident population released by the Bureau of Census
before September 13,
2008).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4CB6125BEE43493787FBD01132F4F5BA"><enum>(5)</enum><text display-inline="yes-display-inline">Determined without regard to paragraphs
(2), (3), (4), (5), and (6) thereof.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9B41F83453AE429E8FA156EA0CC5CB6C"><enum>(c)</enum><header display-inline="yes-display-inline">Hurricane Ike disaster area</header><text display-inline="yes-display-inline">For purposes of this section and for
applying the substitutions described in subsections (a) and (b), the term
<term>Hurricane Ike disaster area</term> means an area in the State of Texas or
Louisiana—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id05C3F32A52CC4E238847E671BE7B9ED3"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to which a major disaster has
been declared by the President on September 13, 2008, under section 401 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of
Hurricane Ike, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD1B6F79D42404E52B26580E29E05B15A"><enum>(2)</enum><text display-inline="yes-display-inline">determined by the President to warrant
individual or individual and public assistance from the Federal Government
under such Act with respect to damages attributable to Hurricane Ike.</text>
</paragraph></subsection></section></subtitle><subtitle id="idD3A1D26434BB4E669D21FFED95E40728"><enum>B</enum><header>National disaster
relief</header>
<section id="id895F47B9674543BDAF25FC11F6741B0A" section-type="subsequent-section"><enum>706.</enum><header>Losses attributable
to federally declared disasters</header>
<subsection id="idE088D41BCAC54747B9089F66A757FE8B"><enum>(a)</enum><header>Waiver of adjusted
gross income limitation</header>
<paragraph id="idB9E75A5BB07D4036A5E35C50DDDDC198"><enum>(1)</enum><header>In
general</header><text>Subsection (h) of section 165 is amended by redesignating
paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by
inserting after paragraph (2) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id3E576000A5C54017AC93BB907CE48A37" reported-display-style="italic" style="OLC">
<paragraph id="id863AE3B9D05F4B3D9AD64172E1C78F07"><enum>(3)</enum><header>Special rule for losses
in federally declared disasters</header>
<subparagraph id="id06ABC568DE5547C9AD146E036E2D3C41"><enum>(A)</enum><header>In
general</header><text>If an individual has a net disaster loss for any taxable
year, the amount determined under paragraph (2)(A)(ii) shall be the sum
of—</text>
<clause id="idBD811F3168FF4524BAB9550014E97457"><enum>(i)</enum><text>such net disaster loss,
and</text>
</clause><clause id="id8935AB5D1DB147A8A19561ED4898D54B"><enum>(ii)</enum><text>so much of the excess
referred to in the matter preceding clause (i) of paragraph (2)(A) (reduced by
the amount in clause (i) of this subparagraph) as exceeds 10 percent of the
adjusted gross income of the individual.</text>
</clause></subparagraph><subparagraph id="id84C84D84EB3D4D22A07D3CD9E77906A2"><enum>(B)</enum><header>Net disaster
loss</header><text>For purposes of subparagraph (A), the term <term>net
disaster loss</term> means the excess of—</text>
<clause id="idA4C48BB780694251800C3E02E86C4796"><enum>(i)</enum><text>the personal casualty
losses—</text>
<subclause id="idF0A8D5DA13C44D4396C3039ABAA6CDFF"><enum>(I)</enum><text>attributable to a
federally declared disaster occurring before January 1, 2010, and</text>
</subclause><subclause id="idBF9CFEA7618E4B0BAFDD461A56A2C712"><enum>(II)</enum><text>occurring in a disaster
area, over</text>
</subclause></clause><clause id="id714CA13930124C9D8859CB52DD406CC7"><enum>(ii)</enum><text>personal casualty
gains.</text>
</clause></subparagraph><subparagraph id="id8879440DC3DC4FEEA3B93B8B37E4D041"><enum>(C)</enum><header>Federally declared
disaster</header><text>For purposes of this paragraph—</text>
<clause id="id0860DBD2E6264A949748869328C375D9"><enum>(i)</enum><header>Federally declared
disaster</header><text>The term <term>federally declared disaster</term> means
any disaster subsequently determined by the President of the United States to
warrant assistance by the Federal Government under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act.</text>
</clause><clause id="idD624F8F5A7594633BDDD37C9F73FAB26"><enum>(ii)</enum><header>Disaster
area</header><text display-inline="yes-display-inline">The term <term>disaster
area</term> means the area so determined to warrant such
assistance.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idCD46B2117A294D0BBF4A195DC2482FE3"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="id23658D309E694AAE9060D882026D7F89"><enum>(A)</enum><text>Section 165(h)(4)(B) (as
so redesignated) is amended by striking <quote>paragraph (2)</quote> and
inserting <quote>paragraphs (2) and (3)</quote>.</text>
</subparagraph><subparagraph id="idA12B2C18582144408A3BAE1296BBB7F4"><enum>(B)</enum><text>Section 165(i)(1) is
amended by striking <quote>loss</quote> and all that follows through
<quote>Act</quote> and inserting <quote>loss occurring in a disaster area (as
defined by clause (ii) of subsection (h)(3)(C)) and attributable to a federally
declared disaster (as defined by clause (i) of such subsection)</quote>.</text>
</subparagraph><subparagraph id="idE6F3E52AF695412A8286655C7901177D"><enum>(C)</enum><text>Section 165(i)(4) is
amended by striking <quote>Presidentially declared disaster (as defined by
section 1033(h)(3))</quote> and inserting <quote>federally declared disaster
(as defined by subsection (h)(3)(C)(i)</quote>.</text>
</subparagraph><subparagraph id="idF3C6F1716C694712ACF084E47FDB3DAD"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="id6EC47D31FF3843B6AAE1A1EA59278543"><enum>(i)</enum><text display-inline="yes-display-inline">So much of subsection (h) of section 1033
as precedes subparagraph (A) of paragraph (1) thereof is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0D9BA9A8521A45F39F4D71125D82168A" reported-display-style="italic" style="OLC">
<subsection id="idD759A47203AF44AFA776F9CD0616B21C"><enum>(h)</enum><header>Special rules for
property damaged by federally declared disasters</header>
<paragraph id="id34DEAD0CE86447E1AA0975C7AF83FDBB"><enum>(1)</enum><header>Principal
residences</header><text>If the taxpayer’s principal residence or any of its
contents is located in a disaster area and is compulsorily or involuntarily
converted as a result of a federally declared
disaster—</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</clause><clause changed="added" id="id0BFD6A3F82EF4CFFB2331AAB64DD9B28" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>Paragraph (2) of section
1033(h) is amended by striking <quote>investment</quote> and all that follows
through “disaster” and inserting <quote>investment located in a disaster area
and compulsorily or involuntarily converted as a result of a federally declared
disaster</quote>.</text>
</clause><clause changed="added" id="idCC8A01BE59BA4DFB8A78233790AEB4D6" indent="up1" reported-display-style="italic"><enum>(iii)</enum><text>Paragraph (3) of
section 1033(h) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9CEF8C6859BE48E6ADE4532298CFA935" reported-display-style="italic" style="OLC">
<paragraph id="id86A032C27F6340CF8FF5122FE3FCA067"><enum>(3)</enum><header>Federally declared
disaster; disaster area</header><text display-inline="yes-display-inline">The
terms <term>‘federally declared disaster’</term> and <term>‘disaster
area’</term> shall have the respective meaning given such terms by section
165(h)(3)(C).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause><clause changed="added" id="id2CB0975DC63B4604B0DE2D8C199043CB" indent="up1" reported-display-style="italic"><enum>(iv)</enum><text>Section 139(c)(2) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id1EA504E031834562B2ECE3B6E0F6893E" reported-display-style="italic" style="OLC">
<paragraph id="id1336B49BD5E34DEFA386EBE49962F2E2"><enum>(2)</enum><text display-inline="yes-display-inline">federally declared disaster (as defined by
section
165(h)(3)(C)(i)),</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause><clause changed="added" id="id6113DB7067934C248B6F8303631C27EE" indent="up1" reported-display-style="italic"><enum>(v)</enum><text display-inline="yes-display-inline">Subclause (II) of section 172(b)(1)(F)(ii)
is amended by striking <quote>Presidentially declared disasters (as defined in
section 1033(h)(3))</quote> and inserting <quote>federally declared disasters
(as defined by subsection (h)(3)(C)(i))</quote>.</text>
</clause><clause changed="added" id="id60A34D77BCF64C56ACFF069E2D0042EB" indent="up1" reported-display-style="italic"><enum>(vi)</enum><text display-inline="yes-display-inline">Subclause (III) of section 172(b)(1)(F)(ii)
is amended by striking <quote>Presidentially declared disasters</quote> and
inserting <quote>federally declared disasters</quote>.</text>
</clause><clause changed="added" display-inline="no-display-inline" id="idFBDA4475A0DA41ACAA05A85E2A5530D3" indent="up1" reported-display-style="italic"><enum>(vii)</enum><text>Subsection (a) of
section 7508A is amended by striking <quote>Presidentially declared disaster
(as defined in section 1033(h)(3))</quote> and inserting <quote>federally
declared disaster (as defined by section 165(h)(3)(C)(i))</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id535571AD0F864C97B0134C8C35FDBCA7"><enum>(b)</enum><header>Increase in standard
deduction by disaster casualty loss</header>
<paragraph id="id00B813262ACC40FDB107942F7DE6CE34"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 63(c), as amended by the Housing
Assistance Tax Act of 2008, is amended by striking <quote>and</quote> at the
end of subparagraph (B), by striking the period at the end of subparagraph (C)
and inserting <quote>, and</quote>, and by adding at the end the following new
subparagraph:</text>
<quoted-block changed="added" id="idCE66DE44C89746B29333272EB63B4D60" reported-display-style="italic">
<subparagraph id="id4C98FE2ECF80438D97A7B0C8E30DE71A"><enum>(D)</enum><text display-inline="yes-display-inline">the disaster loss
deduction.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id60AF199E3901455B98EFD96A620EB893"><enum>(2)</enum><header>Disaster loss
deduction</header><text>Subsection (c) of section 63, as amended by the Housing
Assistance Tax Act of 2008, is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB7CFFB3B1CC545398B49A5AD396B93F1" reported-display-style="italic" style="OLC">
<paragraph id="idA60C5E723FA7407BA31830BB5AEFBC9C"><enum>(8)</enum><header>Disaster loss
deduction</header><text display-inline="yes-display-inline">For the purposes of
paragraph (1), the term <term>disaster loss deduction</term> means the net
disaster loss (as defined in section
165(h)(3)(B)).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id7E656B5B9D5E4BE9B68F2BCE47D7C17B"><enum>(3)</enum><header>Allowance in computing
alternative minimum taxable income</header><text display-inline="yes-display-inline">Subparagraph (E) of section 56(b)(1) is
amended by adding at the end the following new sentence: <quote>The preceding
sentence shall not apply to so much of the standard deduction as is determined
under section 63(c)(1)(D).</quote>.</text>
</paragraph></subsection><subsection id="id8AEC93BEC1304A4B8B796E7622C73EBC"><enum>(c)</enum><header>Increase in limitation
on individual loss per casualty</header><text display-inline="yes-display-inline">Paragraph (1) of section 165(h) is amended
by striking <quote>$100</quote> and inserting <quote>$500 ($100 for taxable
years beginning after December 31, 2009)</quote>.</text>
</subsection><subsection id="id8A79E4B6F767475780F669A3C46F76DF"><enum>(d)</enum><header>Effective
dates</header>
<paragraph id="idA55A0AE30E3D4B4CB6D042489020F663"><enum>(1)</enum><header>In
general</header><text>Except as provided by paragraph (2), the amendments made
by this section shall apply to disasters declared in taxable years beginning
after December 31, 2007.</text>
</paragraph><paragraph id="id4ED33A354F9149DF8C4B4633CA884224"><enum>(2)</enum><header>Increase in limitation
on individual loss per casualty</header><text display-inline="yes-display-inline">The amendment made by subsection (c) shall
apply to taxable years beginning after December 31, 2008.</text>
</paragraph></subsection></section><section id="id5D261125AF1945BB96D3EAE4DCCFB208"><enum>707.</enum><header>Expensing of Qualified
Disaster Expenses</header>
<subsection id="id6C777A7AA4574AD487DEED37D5A8DABC"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Part VI of subchapter
B of chapter 1 is amended by inserting after section 198 the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF5E1E3482B93430DB6BD10544DD48250" reported-display-style="italic" style="OLC">
<section id="id843A1115BCDC4AFBADDCCC2690772232"><enum>198A.</enum><header>Expensing of
Qualified Disaster Expenses</header>
<subsection id="idD12BBACD378E470F9307E18003EDA0BB"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">A taxpayer may elect
to treat any qualified disaster expenses which are paid or incurred by the
taxpayer as an expense which is not chargeable to capital account. Any expense
which is so treated shall be allowed as a deduction for the taxable year in
which it is paid or incurred.</text>
</subsection><subsection id="idE6CA5130DDD2457E90E5CD13ADA6B6BB"><enum>(b)</enum><header>Qualified disaster
expense</header><text>For purposes of this section, the term <term>qualified
disaster expense</term> means any expenditure—</text>
<paragraph id="idEE299D80AED84C28AB035A362015EB95"><enum>(1)</enum><text>which is paid or incurred
in connection with a trade or business or with business-related
property,</text>
</paragraph><paragraph id="id36675958D1F6497793D86054E9456937"><enum>(2)</enum><text display-inline="yes-display-inline">which is—</text>
<subparagraph id="idF2A7DE8F01F640ADB496E6D6311DE9B5"><enum>(A)</enum><text>for the abatement or
control of hazardous substances that were released on account of a federally
declared disaster occurring before January 1, 2010,</text>
</subparagraph><subparagraph id="id074DD1D662C64844898E50C79362ED28"><enum>(B)</enum><text>for the removal of debris
from, or the demolition of structures on, real property which is
business-related property damaged or destroyed as a result of a federally
declared disaster occurring before such date, or</text>
</subparagraph><subparagraph id="id94E1B99D9F8944FFB26478A83072F510"><enum>(C)</enum><text>for the repair of
business-related property damaged as a result of a federally declared disaster
occurring before such date, and</text>
</subparagraph></paragraph><paragraph id="id7EE62B67B22A4D139D27DECA99501122"><enum>(3)</enum><text>which is otherwise
chargeable to capital account.</text>
</paragraph></subsection><subsection id="idCC492D7B33A9491EAE31847D8CBC5D30"><enum>(c)</enum><header>Other
definitions</header><text>For purposes of this section—</text>
<paragraph id="id9B5498397C424A49BE346CD469525326"><enum>(1)</enum><header>Business-related
property</header><text>The term <term>business-related property</term> means
property—</text>
<subparagraph id="id95C850E4B45342238D0FC29E876AEF9B"><enum>(A)</enum><text>held by the taxpayer for
use in a trade or business or for the production of income, or</text>
</subparagraph><subparagraph id="id2B8170E59D9245EA8DA85D0D70E0A6D8"><enum>(B)</enum><text>described in section
1221(a)(1) in the hands of the taxpayer.</text>
</subparagraph></paragraph><paragraph id="idAA1B0407158A4E47B16B34560147730A"><enum>(2)</enum><header>Federally declared
disaster</header><text>The term <term>federally declared disaster</term> has
the meaning given such term by section 165(h)(3)(C)(i).</text>
</paragraph></subsection><subsection id="id5A16F7EB612C48D2B29BA6CCDD983DE0"><enum>(d)</enum><header>Deduction recaptured as
ordinary income on sale, etc</header><text display-inline="yes-display-inline">Solely for purposes of section 1245, in the
case of property to which a qualified disaster expense would have been
capitalized but for this section—</text>
<paragraph id="id2F1EDFE82DA6461E9AA5B9561665D818"><enum>(1)</enum><text>the deduction allowed by
this section for such expense shall be treated as a deduction for depreciation,
and</text>
</paragraph><paragraph id="id2BBD36D7AAB346B79C94A6EC2A9C3B73"><enum>(2)</enum><text>such property (if not
otherwise section 1245 property) shall be treated as section 1245 property
solely for purposes of applying section 1245 to such deduction.</text>
</paragraph></subsection><subsection id="idC4A294FD49B342E8A5412FCF0056DC0B"><enum>(e)</enum><header>Coordination with other
provisions</header><text display-inline="yes-display-inline">Sections 198,
280B, and 468 shall not apply to amounts which are treated as expenses under
this section.</text>
</subsection><subsection id="id4A25D66E6BD84823896C7E9672B8D6B9"><enum>(f)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the purposes of
this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id661E0FC53AC24E079319621396B8F9C2"><enum>(b)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections for part VI of subchapter B of chapter 1 is amended by inserting after
the item relating to section 198 the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idA5D31B7625454BD4A012C2D31802C6B7" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry level="section">Sec. 198A. Expensing of Qualified Disaster
Expenses.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id69BA0CE772B340028660C31E59887B43"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after December 31, 2007 in connection with disaster declared
after such date.</text>
</subsection></section><section id="id1279FE198F134156BBE311937A894906"><enum>708.</enum><header>Net operating losses
attributable to federally declared disasters</header>
<subsection id="id94A9E5EECCDB48C09B13C0B6D8C7483A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 172(b) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id56F4F1E766DC407AAACFFAEE2C7F98FC" reported-display-style="italic" style="OLC">
<subparagraph id="idDFA4383160EC45E29E7EEDB5FF88EA43"><enum>(J)</enum><header>Certain losses
attributable federally declared disasters</header><text display-inline="yes-display-inline">In the case of a taxpayer who has a
qualified disaster loss (as defined in subsection (j)), such loss shall be a
net operating loss carryback to each of the 5 taxable years preceding the
taxable year of such
loss.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id607A59537E1143919C9B37E551BD93FF"><enum>(b)</enum><header>Qualified disaster
loss</header><text display-inline="yes-display-inline">Section 172 is amended
by redesignating subsections (j) and (k) as subsections (k) and (l),
respectively, and by inserting after subsection (i) the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id038FE4EA94B1444BAE80D08E88047E77" reported-display-style="italic" style="OLC">
<subsection id="id73985EAC54324956BC54096DCFE19182"><enum>(j)</enum><header>Rules relating to
qualified disaster losses</header><text display-inline="yes-display-inline">For
purposes of this section—</text>
<paragraph id="idDCCB20B99B6D4D71BC46132D303509DE"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>qualified disaster loss</term> means the lesser of—</text>
<subparagraph id="id78BD92BD17EE43819C05EEA3CEDFB724"><enum>(A)</enum><text>the sum of—</text>
<clause id="idA53CD40BE6834B86B53F0AEAE4073075"><enum>(i)</enum><text display-inline="yes-display-inline">the losses allowable under section 165 for
the taxable year—</text>
<subclause id="idAB08F014D51A442CB0C51549E18908C7"><enum>(I)</enum><text>attributable to a
federally declared disaster (as defined in section 165(h)(3)(C)(i)) occurring
before January 1, 2010, and</text>
</subclause><subclause id="id11F8340A30F54EBBB521B5F8A1EC4A9C"><enum>(II)</enum><text display-inline="yes-display-inline">occurring in a disaster area (as defined in
section 165(h)(3)(C)(ii)), and</text>
</subclause></clause><clause id="idDA0B90465F9F4A02BBDFD1E734CC6E58"><enum>(ii)</enum><text display-inline="yes-display-inline">the deduction for the taxable year for
qualified disaster expenses which is allowable under section 198A(a) or which
would be so allowable if not otherwise treated as an expense, or</text>
</clause></subparagraph><subparagraph id="id965446527E7C4017995EC94B6261AAEF"><enum>(B)</enum><text display-inline="yes-display-inline">the net operating loss for such taxable
year.</text>
</subparagraph></paragraph><paragraph id="id93FAA99B79774776AC0DCBAB5DDAB28A"><enum>(2)</enum><header>Coordination with
subsection <enum-in-header>(b)(2)</enum-in-header></header><text>For purposes
of applying subsection (b)(2), a qualified disaster loss for any taxable year
shall be treated in a manner similar to the manner in which a specified
liability loss is treated.</text>
</paragraph><paragraph id="idC15D27ED329243D48F66B8A1ACFED921"><enum>(3)</enum><header>Election</header><text display-inline="yes-display-inline">Any taxpayer entitled to a 5-year carryback
under subsection (b)(1)(J) from any loss year may elect to have the carryback
period with respect to such loss year determined without regard to subsection
(b)(1)(J). Such election shall be made in such manner as may be prescribed by
the Secretary and shall be made by the due date (including extensions of time)
for filing the taxpayer’s return for the taxable year of the net operating
loss. Such election, once made for any taxable year, shall be irrevocable for
such taxable year.</text>
</paragraph><paragraph id="id4C57637FD7A24D31AD58F8923A950F3D"><enum>(4)</enum><header>Exclusion</header><text display-inline="yes-display-inline">The term <term>qualified disaster
loss</term> shall not include any loss with respect to any property described
in section
1400N(p)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id21C2EFC6E5254ED886F49923A04D2B04"><enum>(c)</enum><header>Loss deduction allowed
in computing alternative minimum taxable income</header><text>Subsection (d) of
section 56 is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4274C453027D4A1B961A1D671554026F" reported-display-style="italic" style="OLC">
<paragraph id="id367FA8D5EFCE4CCC8D0811F3CB2784F1"><enum>(3)</enum><header>Net operating loss
attributable to federally declared disasters</header><text display-inline="yes-display-inline">In the case of a taxpayer which has a
qualified disaster loss (as defined by section 172(b)(1)(J)) for the taxable
year, paragraph (1) shall be applied by increasing the amount determined under
subparagraph (A)(ii)(I) thereof by the sum of the carrybacks and carryovers of
such
loss.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id6817C1C4DC5B495BAF7D39B2C07D70D4"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="id2B6B4B7A67B0465E9BDD0C042B083912"><enum>(1)</enum><text display-inline="yes-display-inline">Clause (ii) of section 172(b)(1)(F) is
amended by inserting <quote>or qualified disaster loss (as defined in
subsection (j))</quote> before the period at the end of the last
sentence.</text>
</paragraph><paragraph id="id22F2F27B65664C0CA2A2D299BEB6D2D1"><enum>(2)</enum><text>Paragraph (1) of section
172(i) is amended by adding at the end the following new flush sentence:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id07A2D45746644DFCA7E232ED7FF46AF5" reported-display-style="italic" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">Such term
shall not include any qualified disaster loss (as defined in subsection
(j)).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id4609900BEC8446AEB2673B4422CFA8AD"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to losses
arising in taxable years beginning after December 31, 2007, in connection with
disasters declared after such date.</text>
</subsection></section><section commented="no" id="idC8A842D87EF14CE485C3EE64B7ED02C0"><enum>709.</enum><header>Waiver of certain
mortgage revenue bond requirements following federally declared
disasters</header>
<subsection commented="no" id="id48983279E46646558F51ECC26BAED090"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (k) of
section 143 is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4FF322F1682A4A97A0447FAFFBBECF65" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="id41558764CD2147759B82B0EC7928C90F"><enum>(12)</enum><header>Special rules for
residences destroyed in federally declared disasters</header>
<subparagraph commented="no" id="id870C8EC4B4DB46CBA3BBB3C9128A3E04"><enum>(A)</enum><header>Principal residence
destroyed</header><text>At the election of the taxpayer, if the principal
residence (within the meaning of section 121) of such taxpayer is—</text>
<clause commented="no" id="id73E3AC92C078425EA3A3CD52ABAF9BEA"><enum>(i)</enum><text>rendered unsafe for use
as a residence by reason of a federally declared disaster occurring before
January 1, 2010, or</text>
</clause><clause commented="no" id="idEA5F5E6506B04F9193B64768F37E398D"><enum>(ii)</enum><text>demolished or relocated
by reason of an order of the government of a State or political subdivision
thereof on account of a federally declared disaster occurring before such
date,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">then, for the 2-year period beginning on
the date of the disaster declaration, subsection (d)(1) shall not apply with
respect to such taxpayer and subsection (e) shall be applied by substituting
<quote>110</quote> for <quote>90</quote> in paragraph (1) thereof.</continuation-text></subparagraph><subparagraph commented="no" id="id2375529094B341CB91EF1F957B992194"><enum>(B)</enum><header>Principal residence
damaged</header>
<clause commented="no" id="idD65B4992AE28470E8287D2EB0F0516DF"><enum>(i)</enum><header>In
general</header><text>At the election of the taxpayer, if the principal
residence (within the meaning of section 121) of such taxpayer was damaged as
the result of a federally declared disaster occurring before January 1, 2010,
any owner-financing provided in connection with the repair or reconstruction of
such residence shall be treated as a qualified rehabilitation loan.</text>
</clause><clause commented="no" id="id85065C700AE346D7B2D00120D1E3A486"><enum>(ii)</enum><header>Limitation</header><text>The
aggregate owner-financing to which clause (i) applies shall not exceed the
lesser of—</text>
<subclause commented="no" id="id05FE953F19F041CFBE5EED3F01328BB2"><enum>(I)</enum><text>the cost of such repair
or reconstruction, or</text>
</subclause><subclause commented="no" id="id1A54B9B4F5824E61A8AB629C94DDC33A"><enum>(II)</enum><text>$150,000.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD72166DAA84947ABBD326282773760A3"><enum>(C)</enum><header>Federally declared
disaster</header><text>For purposes of this paragraph, the term <term>federally
declared disaster</term> has the meaning given such term by section
165(h)(3)(C)(i).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF5EC043220854F8E8AEECA7017B81684"><enum>(D)</enum><header>Election; denial of
double benefit</header>
<clause commented="no" display-inline="no-display-inline" id="id59A657CD1E2A441AB3E12B5FF71A771A"><enum>(i)</enum><header>Election</header><text>An
election under this paragraph may not be revoked except with the consent of the
Secretary.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id1A9C9A8DFE1C46F3AB82EC574E3D33B0"><enum>(ii)</enum><header>Denial of double
benefit</header><text>If a taxpayer elects the application of this paragraph,
paragraph (11) shall not apply with respect to the purchase or financing of any
residence by such
taxpayer.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idAE497582BDD04DBBB9F9687CB5452BE7"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to
disasters occurring after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id8B22002633BD4F32B05B9CCB6F788CB5" section-type="subsequent-section"><enum>710.</enum><header display-inline="yes-display-inline">Special depreciation allowance for
qualified disaster property</header>
<subsection commented="no" display-inline="no-display-inline" id="id2413B4AECEE648BE807045C77A86FE0E"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 168, as amended by this Act, is
amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4992826BC786412780FE4EBFE577FAC4" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id1B261C974F3247D484AEFE3EBC63E193"><enum>(n)</enum><header display-inline="yes-display-inline">Special allowance for qualified disaster
assistance property</header>
<paragraph commented="no" display-inline="no-display-inline" id="idE6A3EBBC2BDA432A87CD64A117BC6275"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any qualified disaster
assistance property—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id9E8B16AC8B474E0D8DB738A10C8C5575"><enum>(A)</enum><text display-inline="yes-display-inline">the depreciation deduction provided by
section 167(a) for the taxable year in which such property is placed in service
shall include an allowance equal to 50 percent of the adjusted basis of the
qualified disaster assistance property, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4D2E94E43FB5413FB9C41A00436E20E1"><enum>(B)</enum><text display-inline="yes-display-inline">the adjusted basis of the qualified
disaster assistance property shall be reduced by the amount of such deduction
before computing the amount otherwise allowable as a depreciation deduction
under this chapter for such taxable year and any subsequent taxable
year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA5CEA7841CE94FFEB55FCE0E6FF3733E"><enum>(2)</enum><header display-inline="yes-display-inline">Qualified disaster assistance
property</header><text display-inline="yes-display-inline">For purposes of this
subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idABE83CB2C36142B7B3168CB5B12C3A3A"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified disaster
assistance property</term> means any property—</text>
<clause commented="no" display-inline="no-display-inline" id="idCB8F9BE919F54197805E09E546526208"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id92950B1D19D7428886B64521AD697227"><enum>(I)</enum><text>which is described in
subsection (k)(2)(A)(i), or</text>
</subclause><subclause changed="added" commented="no" display-inline="no-display-inline" id="idFF4C3C687D45424DBD47E3B32F77AF61" indent="up1" reported-display-style="italic"><enum>(II)</enum><text>which is
nonresidential real property or residential rental property,</text>
</subclause></clause><clause id="ID435d7fbb0e504a34bc68beb0aded5eb0"><enum>(ii)</enum><text>substantially all of the
use of which is—</text>
<subclause id="idD2968FACAE8A4B82B41E5C3E36A16671"><enum>(I)</enum><text>in a disaster area with
respect to a federally declared disaster occurring before January 1, 2010,
and</text>
</subclause><subclause id="id197A4841C57744A8BAE25791CD47E2B8"><enum>(II)</enum><text>in the active conduct of
a trade or business by the taxpayer in such disaster area,</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id71D41413DED649A9ADAEEC50C6E7A390"><enum>(iii)</enum><text display-inline="yes-display-inline">which—</text>
<subclause commented="no" display-inline="no-display-inline" id="id9D9EA4157F564C0CB63E5661A04E9CD4"><enum>(I)</enum><text display-inline="yes-display-inline">rehabilitates property damaged, or replaces
property destroyed or condemned, as a result of such federally declared
disaster, except that, for purposes of this clause, property shall be treated
as replacing property destroyed or condemned if, as part of an integrated plan,
such property replaces property which is included in a continuous area which
includes real property destroyed or condemned, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id883FB5E003F34515A52316B6BCF55BE3"><enum>(II)</enum><text display-inline="yes-display-inline">is similar in nature to, and located in the
same county as, the property being rehabilitated or replaced,</text>
</subclause></clause><clause id="ID8cf57daf33a84037a9834fcff2ec2a5f"><enum>(iv)</enum><text>the original use of
which in such disaster area commences with an eligible taxpayer on or after the
applicable disaster date,</text>
</clause><clause id="ID26e97a112b8c4c3e83cf2727c4638faa"><enum>(v)</enum><text>which is acquired by such
eligible taxpayer by purchase (as defined in section 179(d)) on or after the
applicable disaster date, but only if no written binding contract for the
acquisition was in effect before such date, and</text>
</clause><clause id="ID812c2c17d7954738b98f802d6fa24658"><enum>(vi)</enum><text>which is placed in
service by such eligible taxpayer on or before the date which is the last day
of the third calendar year following the applicable disaster date (the fourth
calendar year in the case of nonresidential real property and residential
rental property).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD0A41538A8B74C0C85909B5F81B83325"><enum>(B)</enum><header display-inline="yes-display-inline">Exceptions</header>
<clause commented="no" display-inline="no-display-inline" id="idC08AB8EA153546ADB2CEF1759DE2AFA7"><enum>(i)</enum><header display-inline="yes-display-inline">Other bonus depreciation
property</header><text display-inline="yes-display-inline">The term
<term>qualified disaster assistance property</term> shall not include—</text>
<subclause commented="no" display-inline="no-display-inline" id="id44C674BBEBD44583A301AA7F279D193E"><enum>(I)</enum><text display-inline="yes-display-inline">any property to which subsection (k)
(determined without regard to paragraph (4)), (l), or (m) applies,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idF26083454D88445B809A23DD27528424"><enum>(II)</enum><text>any property to which
section 1400N(d) applies, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id1FBA51483A7A4D8692C40A39CDDBF619"><enum>(III)</enum><text>any property described
in section 1400N(p)(3).</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idA9A37D339354467790AEFE843DAE76DF"><enum>(ii)</enum><header display-inline="yes-display-inline">Alternative depreciation
property</header><text display-inline="yes-display-inline">The term
<term>qualified disaster assistance property</term> shall not include any
property to which the alternative depreciation system under subsection (g)
applies, determined without regard to paragraph (7) of subsection (g) (relating
to election to have system apply).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idA0314463FFED4AA9AEEDE83471AAF3F6"><enum>(iii)</enum><header>Tax-exempt bond
financed property</header><text>Such term shall not include any property any
portion of which is financed with the proceeds of any obligation the interest
on which is exempt from tax under section 103.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7CAEAE8520BB4248BD10915CCDFCF8A1"><enum>(iv)</enum><header>Qualified
revitalization buildings</header><text>Such term shall not include any
qualified revitalization building with respect to which the taxpayer has
elected the application of paragraph (1) or (2) of section 1400I(a).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id92B6B6A5586A41F394D6AB3642147D44"><enum>(v)</enum><header display-inline="yes-display-inline">Election out</header><text display-inline="yes-display-inline">If a taxpayer makes an election under this
clause with respect to any class of property for any taxable year, this
subsection shall not apply to all property in such class placed in service
during such taxable year.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id56CF04A8A4234607A45E41CF36ADC9AF"><enum>(C)</enum><header>Special
rules</header><text>For purposes of this subsection, rules similar to the rules
of subparagraph (E) of subsection (k)(2) shall apply, except that such
subparagraph shall be applied—</text>
<clause id="IDcfe715e26fcb458c937023c9e6adbdc3"><enum>(i)</enum><text>by substituting
<quote>the applicable disaster date</quote> for <quote>December 31,
2007</quote> each place it appears therein,</text>
</clause><clause id="IDebc5459f62f146f7a63c7f1e03013c66"><enum>(ii)</enum><text>without regard to
<quote>and before January 1, 2009</quote> in clause (i) thereof, and</text>
</clause><clause id="IDbf0024f212304084877e7ed543b3faa4"><enum>(iii)</enum><text>by substituting
<quote>qualified disaster assistance property</quote> for <quote>qualified
property</quote> in clause (iv) thereof.</text>
</clause></subparagraph><subparagraph id="IDe064e94f533a4b7c8e2e3ecc092c7e69"><enum>(D)</enum><header>Allowance against
alternative minimum tax</header><text>For purposes of this subsection, rules
similar to the rules of subsection (k)(2)(G) shall apply.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id024883F28B6643D089B5DC45C7A3CD7D"><enum>(3)</enum><header display-inline="yes-display-inline">Other definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id00653963ACC542298460E81D0BD746A2"><enum>(A)</enum><header display-inline="yes-display-inline">Applicable disaster date</header><text>The
term <term>applicable disaster date</term> means, with respect to any federally
declared disaster, the date on which such federally declared disaster
occurs.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0518E4976BDA4C56BE61293E41F6013C"><enum>(B)</enum><header>Federally declared
disaster</header><text>The term <term>federally declared disaster</term> has
the meaning given such term under section 165(h)(3)(C)(i).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD45A81DB8DB64F9C83479510234A1E91"><enum>(C)</enum><header>Disaster
area</header><text>The term <term>disaster area</term> has the meaning given
such term under section 165(h)(3)(C)(ii).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFE66366219E04474BBCB7738F3F3D9EF"><enum>(D)</enum><header>Eligible
taxpayer</header><text>The term <term>eligible taxpayer</term> means a taxpayer
who has suffered an economic loss attributable to a federally declared
disaster.</text>
</subparagraph></paragraph><paragraph id="idE4197277FCBF4779B681DFA900672AC9"><enum>(4)</enum><header>Recapture</header><text>For
purposes of this subsection, rules similar to the rules under section
179(d)(10) shall apply with respect to any qualified disaster assistance
property which ceases to be qualified disaster assistance
property.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id9AB1384E1CF04AAF88B63C9B116B3B96"><enum>(b)</enum><header display-inline="yes-display-inline">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, 2007,
with respect disasters declared after such date.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id3AA72491FA4C4B25AFA0739EA05B5B44"><enum>711.</enum><header>Increased expensing
for qualified disaster assistance property</header>
<subsection commented="no" display-inline="no-display-inline" id="idE25FDF89C1084490B8FF4A04516DE503"><enum>(a)</enum><header>In
general</header><text>Section 179 is amended by adding at the end the following
new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idA186CBC412984CF8ADCEC242946C4345" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idED5582FEC7E14E54B9871F8EA022A5A5"><enum>(e)</enum><header>Special rules for
qualified disaster assistance property</header>
<paragraph commented="no" display-inline="no-display-inline" id="idC88AE213F3E1412695C474B883BB31C1"><enum>(1)</enum><header>In
general</header><text>For purposes of this section—</text>
<subparagraph id="ID79e26ed65fba4a1cbc761ed9923ff261"><enum>(A)</enum><text>the dollar amount in
effect under subsection (b)(1) for the taxable year shall be increased by the
lesser of—</text>
<clause id="ID433a5de2f3174958a117c11977d08575"><enum>(i)</enum><text>$100,000, or</text>
</clause><clause id="ID8d9d080df15548c38d2059318f5fbb19"><enum>(ii)</enum><text>the cost of qualified
section 179 disaster assistance property placed in service during the taxable
year, and</text>
</clause></subparagraph><subparagraph id="ID28638a6edc39441d91feec97397d51ae"><enum>(B)</enum><text>the dollar amount in
effect under subsection (b)(2) for the taxable year shall be increased by the
lesser of—</text>
<clause id="ID6798a128fc884f299f7b63004b61d50d"><enum>(i)</enum><text>$600,000, or</text>
</clause><clause id="ID3a0766ae735441b1bdb9e1aa86326c51"><enum>(ii)</enum><text>the cost of qualified
section 179 disaster assistance property placed in service during the taxable
year.</text>
</clause></subparagraph></paragraph><paragraph id="ID025c1297088b4463b4d26b8452cf17e1"><enum>(2)</enum><header>Qualified section 179
disaster assistance property</header><text>For purposes of this subsection, the
term <term>qualified section 179 disaster assistance property</term> means
section 179 property (as defined in subsection (d)) which is qualified disaster
assistance property (as defined in section 168(n)(2)).</text>
</paragraph><paragraph id="ID77e43e11cd014576bb320c7022f46139"><enum>(3)</enum><header>Coordination with
empowerment zones and renewal communities</header><text>For purposes of
sections 1397A and 1400J, qualified section 179 disaster assistance property
shall not be treated as qualified zone property or qualified renewal property,
unless the taxpayer elects not to take such qualified section 179 disaster
assistance property into account for purposes of this subsection.</text>
</paragraph><paragraph id="ID38df02d8572c4272ab9c588e133fb416"><enum>(4)</enum><header>Recapture</header><text>For
purposes of this subsection, rules similar to the rules under subsection
(d)(10) shall apply with respect to any qualified section 179 disaster
assistance property which ceases to be qualified section 179 disaster
assistance
property.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idB7ADBC175D9B42E4810EEB177BBBD046"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2007, with respect disasters declared
after such date.</text>
</subsection></section><section id="id3FF3DB08D1EF4F24A11045DEEFF3A8AF"><enum>712.</enum><header>Coordination with
Heartland disaster relief</header><text display-inline="no-display-inline">The
amendments made by this subtitle, other than the amendments made by sections
706(a)(2), 710, and 711, shall not apply to any disaster described in section
702(c)(1)(A), or to any expenditure or loss resulting from such
disaster.</text>
</section></subtitle><enum>VIII</enum><header>Spending reductions
and appropriate revenue raisers for new tax relief policy</header>
<section display-inline="no-display-inline" id="HA9568EBB9ECE4CD2BF996C26B9C0BC04" section-type="subsequent-section"><enum>801.</enum><header>Nonqualified
deferred compensation from certain tax indifferent parties</header>
<subsection id="H43CE797BD056487A867F0023ACABDC6E"><enum>(a)</enum><header>In
general</header><text>Subpart B of part II of subchapter E of chapter 1 is
amended by inserting after section 457 the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H26C582B356354245942D2735ADE3D286" reported-display-style="italic" style="OLC">
<section id="H3E8BDC8712EF4E9E9DDADA46038E5A7"><enum>457A.</enum><header>Nonqualified deferred
compensation from certain tax indifferent parties</header>
<subsection id="H5FC15AB791954DBF0086E67D848FD7D9"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Any compensation
which is deferred under a nonqualified deferred compensation plan of a
nonqualified entity shall be includible in gross income when there is no
substantial risk of forfeiture of the rights to such compensation.</text>
</subsection><subsection id="H89DCEB74D9E548A6BCE86967C27FAE4D"><enum>(b)</enum><header>Nonqualified
entity</header><text>For purposes of this section, the term <term>nonqualified
entity</term> means—</text>
<paragraph id="H34662E7383D743668DEC2D43EBE9ECF9"><enum>(1)</enum><text display-inline="yes-display-inline">any foreign corporation unless
substantially all of its income is—</text>
<subparagraph id="HFD684D6A71124DA8BDC94A7A9735B4C"><enum>(A)</enum><text>effectively connected
with the conduct of a trade or business in the United States, or</text>
</subparagraph><subparagraph id="HB99C9E17C63940EE89D6DDD264912115"><enum>(B)</enum><text>subject to a
comprehensive foreign income tax, and</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H752D950C68104B3FA823898D28B0F1E7"><enum>(2)</enum><text display-inline="yes-display-inline">any partnership unless substantially all of
its income is allocated to persons other than—</text>
<subparagraph id="HDA93AF37A2464346B029A734F32E5629"><enum>(A)</enum><text>foreign persons with
respect to whom such income is not subject to a comprehensive foreign income
tax, and</text>
</subparagraph><subparagraph id="HC609E9E2758444ACA7644D94252B51E0"><enum>(B)</enum><text>organizations which are
exempt from tax under this title.</text>
</subparagraph></paragraph></subsection><subsection id="H06DD89D2B89744D2955CD4526E48D014"><enum>(c)</enum><header>Determinability of
amounts of compensation</header>
<paragraph id="H68C1B9E2BB114F699F003FE580AA351D"><enum>(1)</enum><header>In
general</header><text>If the amount of any compensation is not determinable at
the time that such compensation is otherwise includible in gross income under
subsection (a)—</text>
<subparagraph id="H2BD89F86A5A1406CB59649F94050151C"><enum>(A)</enum><text>such amount shall be so
includible in gross income when determinable, and</text>
</subparagraph><subparagraph id="H0D8FFAA43089417398F46DA264AA7FFC"><enum>(B)</enum><text>the tax imposed under
this chapter for the taxable year in which such compensation is includible in
gross income shall be increased by the sum of—</text>
<clause id="H52D4CAC0EDE64485AFE57792D519A0A4"><enum>(i)</enum><text>the amount of interest
determined under paragraph (2), and</text>
</clause><clause id="H9D2F5A3B985D45E7A54942513F2136EC"><enum>(ii)</enum><text>an amount equal to 20
percent of the amount of such compensation.</text>
</clause></subparagraph></paragraph><paragraph id="H65527DD047694E5DAD0783AC19954996"><enum>(2)</enum><header>Interest</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(B)(i), the
interest determined under this paragraph for any taxable year is the amount of
interest at the underpayment rate under section 6621 plus 1 percentage point on
the underpayments that would have occurred had the deferred compensation been
includible in gross income for the taxable year in which first deferred or, if
later, the first taxable year in which such deferred compensation is not
subject to a substantial risk of forfeiture.</text>
</paragraph></subsection><subsection id="HF2E87AB5A5204D458853955B66C72908"><enum>(d)</enum><header>Other definitions and
special rules</header><text>For purposes of this section—</text>
<paragraph display-inline="no-display-inline" id="H32E928484653453687512F89041CCE87"><enum>(1)</enum><header>Substantial risk of
forfeiture</header>
<subparagraph id="HACE6796709BC42DFB7D8F2EB7F62EE1F"><enum>(A)</enum><header>In
general</header><text>The rights of a person to compensation shall be treated
as subject to a substantial risk of forfeiture only if such person’s rights to
such compensation are conditioned upon the future performance of substantial
services by any individual.</text>
</subparagraph><subparagraph id="H22F1631E159644639C4B487F70145539"><enum>(B)</enum><header>Exception for
compensation based on gain recognized on an investment asset</header>
<clause id="H97565400976F41069B5EC1A4AA700065"><enum>(i)</enum><header>In
general</header><text>To the extent provided in regulations prescribed by the
Secretary, if compensation is determined solely by reference to the amount of
gain recognized on the disposition of an investment asset, such compensation
shall be treated as subject to a substantial risk of forfeiture until the date
of such disposition.</text>
</clause><clause id="H5F055A624D0B426B8DF0ED6D7213FE37"><enum>(ii)</enum><header>Investment
asset</header><text>For purposes of clause (i), the term <quote>investment
asset</quote> means any single asset (other than an investment fund or similar
entity)—</text>
<subclause id="H2F05728205F4454CAFE94ED66F2626F"><enum>(I)</enum><text>acquired directly by an
investment fund or similar entity,</text>
</subclause><subclause id="H35EA5DA7FA4342C481C1460057AC33E9"><enum>(II)</enum><text>with respect to which
such entity does not (nor does any person related to such entity) participate
in the active management of such asset (or if such asset is an interest in an
entity, in the active management of the activities of such entity), and</text>
</subclause><subclause id="H6A0DB42F66B5459AA76889B2A98D0875"><enum>(III)</enum><text>substantially all of
any gain on the disposition of which (other than such deferred compensation) is
allocated to investors in such entity.</text>
</subclause></clause><clause id="HD987FA28AC684C9CAC010090E86C14E0"><enum>(iii)</enum><header>Coordination with
special rule</header><text>Paragraph (3)(B) shall not apply to any compensation
to which clause (i) applies.</text>
</clause></subparagraph></paragraph><paragraph id="H78F35B34193646C598F00969C675EEE"><enum>(2)</enum><header>Comprehensive foreign
income tax</header><text>The term <term>comprehensive foreign income tax</term>
means, with respect to any foreign person, the income tax of a foreign country
if—</text>
<subparagraph id="H38FE500C943F47FB80D3EC92A048D164"><enum>(A)</enum><text>such person is eligible
for the benefits of a comprehensive income tax treaty between such foreign
country and the United States, or</text>
</subparagraph><subparagraph id="H0C507548FD454F7FA5C952D473C7523"><enum>(B)</enum><text>such person demonstrates
to the satisfaction of the Secretary that such foreign country has a
comprehensive income tax.</text>
</subparagraph></paragraph><paragraph id="H5098EA89AAC3466CBAEDDB600F6E223"><enum>(3)</enum><header>Nonqualified deferred
compensation plan</header>
<subparagraph id="H2C84F930CFEB49DFBBCDA4D28C25F2B9"><enum>(A)</enum><header>In
general</header><text>The term <term>nonqualified deferred compensation
plan</term> has the meaning given such term under section 409A(d), except that
such term shall include any plan that provides a right to compensation based on
the appreciation in value of a specified number of equity units of the service
recipient.</text>
</subparagraph><subparagraph commented="no" id="HE79205279EB84E138884003132525BC0"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Compensation shall not be treated as
deferred for purposes of this section if the service provider receives payment
of such compensation not later than 12 months after the end of the taxable year
of the service recipient during which the right to the payment of such
compensation is no longer subject to a substantial risk of forfeiture.</text>
</subparagraph></paragraph><paragraph id="H6BB027278EC5443DA8DBD16DA758CC95"><enum>(4)</enum><header>Exception for certain
compensation with respect to effectively connected income</header><text display-inline="yes-display-inline">In the case a foreign corporation with
income which is taxable under section 882, this section shall not apply to
compensation which, had such compensation had been paid in cash on the date
that such compensation ceased to be subject to a substantial risk of
forfeiture, would have been deductible by such foreign corporation against such
income.</text>
</paragraph><paragraph id="H780BAB6B12224ACD96690019DC53BD35"><enum>(5)</enum><header>Application of
rules</header><text display-inline="yes-display-inline">Rules similar to the
rules of paragraphs (5) and (6) of section 409A(d) shall apply.</text>
</paragraph></subsection><subsection id="HD7D3D53ADA1246AB939602E904769BE3"><enum>(e)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the purposes of
this section, including regulations disregarding a substantial risk of
forfeiture in cases where necessary to carry out the purposes of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2364BEB191ED4BD0B57CDFD71516E102"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 26(b)(2), as amended by the Housing Assistance
Tax Act of 2008, is amended by striking <quote>and</quote> at the end of
subparagraph (V), by striking the period at the end of subparagraph (W) and
inserting <quote>, and</quote>, and by adding at the end the following new
subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9FAF4BE4BB8A4E81A2E4E123E594BFB7" reported-display-style="italic" style="OLC">
<subparagraph id="id99D593C5647B42B88D4F5BD47D4FF47A"><enum>(X)</enum><text display-inline="yes-display-inline">section 457A(c)(1)(B) (relating to
determinability of amounts of
compensation).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3DBCA16116ED48729FE6ACA4330453B3"><enum>(c)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections of subpart B of part II of subchapter E of chapter 1 is amended by
inserting after the item relating to section 457 the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8FAB2AC15DE741ED880792AD57FCE1FA" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H26C582B356354245942D2735ADE3D286" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry idref="H3E8BDC8712EF4E9E9DDADA46038E5A7" level="section">Sec. 457A. Nonqualified
deferred compensation from certain tax indifferent
parties.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5807AAA0342A41248586F44067BCF7BB"><enum>(d)</enum><header>Effective date</header>
<paragraph id="HFB046F29FA934673B2EAFCB0D37200F5"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to amounts deferred which are
attributable to services performed after December 31, 2008.</text>
</paragraph><paragraph id="H8A25207834684D439DB1EC1135078556"><enum>(2)</enum><header>Application to existing
deferrals</header><text>In the case of any amount deferred to which the
amendments made by this section do not apply solely by reason of the fact that
the amount is attributable to services performed before January 1, 2009, to the
extent such amount is not includible in gross income in a taxable year
beginning before 2018, such amounts shall be includible in gross income in the
later of—</text>
<subparagraph id="HD192F8B69E774AEE9147D06066C1C872"><enum>(A)</enum><text>the last taxable year
beginning before 2018, or</text>
</subparagraph><subparagraph id="H860E5503C4414DD393999F00CF9B507"><enum>(B)</enum><text>the taxable year in which
there is no substantial risk of forfeiture of the rights to such compensation
(determined in the same manner as determined for purposes of section 457A of
the Internal Revenue Code of 1986, as added by this section).</text>
</subparagraph></paragraph><paragraph id="H03F81E313C4B42B5B9D2997C040299F"><enum>(3)</enum><header>Accelerated
payments</header><text display-inline="yes-display-inline">No later than 120
days after the date of the enactment of this Act, the Secretary shall issue
guidance providing a limited period of time during which a nonqualified
deferred compensation arrangement attributable to services performed on or
before December 31, 2008, may, without violating the requirements of section
409A(a) of the Internal Revenue Code of 1986, be amended to conform the date of
distribution to the date the amounts are required to be included in
income.</text>
</paragraph><paragraph id="H62DEEC775114410798834E5B00457122"><enum>(4)</enum><header>Certain back-to-back
arrangements</header><text>If the taxpayer is also a service recipient and
maintains one or more nonqualified deferred compensation arrangements for its
service providers under which any amount is attributable to services performed
on or before December 31, 2008, the guidance issued under paragraph (4) shall
permit such arrangements to be amended to conform the dates of distribution
under such arrangement to the date amounts are required to be included in the
income of such taxpayer under this subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9F90CFEE2DC64A99B572957AB057CD90"><enum>(5)</enum><header>Accelerated payment not
treated as material modification</header><text>Any amendment to a nonqualified
deferred compensation arrangement made pursuant to paragraph (4) or (5) shall
not be treated as a material modification of the arrangement for purposes of
<external-xref legal-doc="usc" parsable-cite="usc/26/409A">section 409A</external-xref> of the Internal Revenue Code of 1986.</text>
</paragraph></subsection></section>
Amend the title so as to read: An Act to
provide authority for the Federal Government to purchase and insure certain
types of troubled assets for the purposes of providing stability to and
preventing disruption in the economy and financial system and protecting
taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives for
energy production and conservation, to extend certain expiring provisions, to
provide individual income tax relief, and for other
purpose
.
Secretary