[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6958 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6958

 To provide tax relief for the victims of Hurricane Ike, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2008

  Mr. Brady of Texas (for himself, Mr. Paul, Mr. McCaul of Texas, Ms. 
Granger, Mr. Gohmert, Mr. Culberson, Mr. Poe, Mr. Sam Johnson of Texas, 
 Mr. Smith of Texas, Mr. Al Green of Texas, Mr. Ortiz, Mr. Thornberry, 
Mr. Gonzalez, and Mr. Carter) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide tax relief for the victims of Hurricane Ike, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hurricane Ike Tax Relief Act of 
2008''.

SEC. 2. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY HURRICANE IKE.

    (a) In General.--Subject to the modifications described in this 
section, the following provisions of or relating to the Internal 
Revenue Code of 1986 shall apply to the Hurricane Ike recovery area in 
addition to the areas to which such provisions otherwise apply:
            (1) Go zone benefits.--
                    (A) Section 1400N (relating to tax benefits) other 
                than subsections (b), (c), (i), (j), (m), and (o) 
                thereof.
                    (B) Section 1400P (relating to housing tax 
                benefits).
                    (C) Section 1400Q (relating to special rules for 
                use of retirement funds).
                    (D) Section 1400R(a) (relating to employee 
                retention credit for employers).
                    (E) Section 1400S (relating to additional tax 
                relief) other than subsection (d) thereof.
                    (F) Section 1400T (relating to special rules for 
                mortgage revenue bonds).
            (2) Other benefits included in katrina emergency tax relief 
        act of 2005.--Sections 302, 304, 401, and 405 of the Katrina 
        Emergency Tax Relief Act of 2005.
    (b) Use of Amended Income Tax Returns To Take Into Account Receipt 
of Certain Casualty Loss Grants by Disallowing Previously Taken 
Casualty Loss Deductions.--
            (1) In general.--Notwithstanding any other provision of the 
        Internal Revenue Code of 1986, if a taxpayer claims a deduction 
        for any taxable year with respect to a casualty loss to a 
        principal residence (within the meaning of section 121 of such 
        Code) resulting from Hurricane Ike and in a subsequent taxable 
        year receives a grant under any Federal or State program as 
        reimbursement for such loss, such taxpayer may elect to file an 
        amended income tax return for the taxable year in which such 
        deduction was allowed (and for any taxable year to which such 
        deduction is carried) and reduce (but not below zero) the 
        amount of such deduction by the amount of such reimbursement.
            (2) Time of filing amended return.--Paragraph (1) shall 
        apply with respect to any grant only if any amended income tax 
        returns with respect to such grant are filed not later than the 
        later of--
                    (A) the due date for filing the tax return for the 
                taxable year in which the taxpayer receives such grant, 
                or
                    (B) the date which is 1 year after the date of the 
                enactment of this Act.
            (3) Waiver of penalties and interest.--Any underpayment of 
        tax resulting from the reduction under paragraph (1) of the 
        amount otherwise allowable as a deduction shall not be subject 
        to any penalty or interest under such Code if such tax is paid 
        not later than 1 year after the filing of the amended return to 
        which such reduction relates.
    (c) Hurricane Ike Recovery Area.--
            (1) In general.--For purposes of this section and for 
        applying the substitutions described in subsections (e) and 
        (f), the term ``Hurricane Ike recovery area'' means an area--
                    (A) with respect to which a major disaster has been 
                declared by the President under section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act by reason of Hurricane Ike, and
                    (B) determined by the President to warrant 
                individual or individual and public assistance from the 
                Federal Government under such Act by reason of 
                Hurricane Ike.
            (2) Certain benefits available to areas eligible only for 
        public assistance.--For purposes of applying this section to 
        benefits under the following provisions, paragraph (1) shall be 
        applied without regard to subparagraph (B):
                    (A) Sections 1400Q, 1400S(b), and 1400S(d) of the 
                Internal Revenue Code of 1986.
                    (B) Sections 302, 401, and 405 of the Katrina 
                Emergency Tax Relief Act of 2005.
    (d) References.--
            (1) Area.--Any reference in such provisions to the 
        Hurricane Katrina disaster area or the Gulf Opportunity Zone 
        shall be treated as a reference to the Hurricane Ike recovery 
        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 the portion of the Hurricane Ike recovery area 
        within the State.
            (2) Items attributable to disaster.--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 Hurricane Ike.
    (e) Modifications to 1986 Code.--In the case of the Hurricane Ike 
recovery area, the following provisions of the Internal Revenue Code of 
1986 shall be applied with the following modifications:
            (1) Tax-exempt bond financing.--Section 1400N(a)--
                    (A) by substituting ``qualified Hurricane Ike 
                recovery area bond'' for ``qualified Gulf Opportunity 
                Zone Bond'' each place it appears, except that in 
                determining whether a bond is a qualified Hurricane Ike 
                recovery area bond--
                            (i) paragraph (2)(A)(i) shall be applied by 
                        only treating costs as qualified project costs 
                        if--
                                    (I) 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
                                    (II) 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
                            (ii) 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,
                    (B) by substituting ``any State any portion of 
                which is in the Hurricane Ike recovery area'' for ``the 
                State of Alabama, Louisiana, or Mississippi'' in 
                paragraph (2)(B),
                    (C) by substituting ``designated for purposes of 
                this section (on the basis of providing assistance to 
                areas in the order in which such assistance is most 
                needed)'' for ``designated for purposes of this 
                section'' in paragraph (2)(C),
                    (D) by substituting ``January 1, 2013'' for 
                ``January 1, 2011'' in paragraph (2)(D),
                    (E) in paragraph (3)(A)--
                            (i) by substituting ``$1,000'' for 
                        ``$2,500'', and
                            (ii) by substituting ``before September 12, 
                        2008'' for ``before August 28, 2005'',
                    (F) by substituting ``qualified Hurricane Ike 
                recovery area repair or construction'' for ``qualified 
                GO Zone repair or construction'' each place it appears, 
                and
                    (G) by substituting ``after the date of the 
                enactment of the Hurricane Ike Tax Relief Act of 2008 
                and before January 1, 2013'' for ``after the date of 
                the enactment of this paragraph and before January 1, 
                2011'' in paragraph (7)(C).
            (2) Special allowance for certain property acquired on or 
        after the applicable disaster date.--Section 1400N(d)--
                    (A) by substituting ``qualified Hurricane Ike 
                recovery area property'' for ``qualified Gulf 
                Opportunity Zone property'' each place it appears, 
                except that a taxpayer shall be allowed additional 
                bonus depreciation and expensing under such subsection 
                or section 1400N(e) with respect to such property only 
                if--
                            (i) the taxpayer suffered an economic loss 
                        attributable to Hurricane Ike, and
                            (ii) such property--
                                    (I) rehabilitates property damaged, 
                                or replaces property destroyed or 
                                condemned, as a result of Hurricane 
                                Ike, 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
                                    (II) is similar in nature to, and 
                                located in the same county as, the 
                                property being rehabilitated or 
                                replaced,
                    (B) by substituting ``September 12, 2008'' for 
                ``August 28, 2005'' each place it appears,
                    (C) by substituting ``December 31, 2011'' for 
                ``December 31, 2007'' in paragraph (2)(A)(v),
                    (D) by substituting ``December 31, 2012'' for 
                ``December 31, 2008'' in paragraph (2)(A)(v),
                    (E) by substituting ``September 11, 2008'' for 
                ``August 27, 2005'' in paragraph (3)(A),
                    (F) determined without regard to paragraph (6) 
                thereof, and
                    (G) by not including as qualified Hurricane Ike 
                recovery area property any property to which section 
                168(k) applies.
            (3) Increase in expensing under section 179.--Section 
        1400N(e), by substituting ``qualified section 179 Hurricane Ike 
        recovery area property'' for ``qualified section 179 Gulf 
        Opportunity Zone property'' each place it appears.
            (4) Expensing for certain demolition and clean-up costs.--
        Section 1400N(f)--
                    (A) by substituting ``qualified Hurricane Ike 
                recovery area clean-up cost'' for ``qualified Gulf 
                Opportunity Zone clean-up cost'' each place it appears,
                    (B) by substituting ``beginning on September 12, 
                2008, and ending on December 31, 2010'' for ``beginning 
                on August 28, 2005, and ending on December 31, 2007'' 
                in paragraph (2), and
                    (C) by treating costs as qualified Hurricane Ike 
                recovery clean-up costs only if the removal of debris 
                or demolition of any structure was necessary due to 
                damage attributable to Hurricane Ike.
            (5) Extension of expensing for environmental remediation 
        costs.--Section 1400N(g)--
                    (A) by substituting ``September 12, 2008'' for 
                ``August 28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2011'' for 
                ``January 1, 2008'' in paragraph (1),
                    (C) by substituting ``December 31, 2010'' for 
                ``December 31, 2007'' in paragraph (1), and
                    (D) 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 Hurricane Ike.
            (6) Increase in rehabilitation credit.--Section 1400N(h)--
                    (A) by substituting ``September 12, 2008'' for 
                ``August 28, 2005'',
                    (B) by substituting ``January 1, 2011'' for 
                ``January 1, 2008'' in paragraph (1), and
                    (C) 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 Hurricane Ike.
            (7) Treatment of net operating losses attributable to 
        disaster losses.--Section 1400N(k)--
                    (A) by substituting ``qualified Hurricane Ike 
                recovery area loss'' for ``qualified Gulf Opportunity 
                Zone loss'' each place it appears,
                    (B) by substituting ``after September 11, 2008, and 
                before January 1, 2011'' for ``after August 27, 2005, 
                and before January 1, 2008'' each place it appears,
                    (C) by substituting ``September 12, 2008'' for 
                ``August 28, 2005'' in paragraph (2)(B)(ii)(I),
                    (D) by substituting ``qualified Hurricane Ike 
                recovery area property'' for ``qualified Gulf 
                Opportunity Zone property'' in paragraph (2)(B)(iv), 
                and
                    (E) by substituting ``qualified Hurricane Ike 
                recovery area casualty loss'' for ``qualified Gulf 
                Opportunity Zone casualty loss'' each place it appears.
            (8) Credit to holders of tax credit bonds.--Section 
        1400N(l)--
                    (A) by substituting ``Hurricane Ike tax credit 
                bond'' for ``Gulf tax credit bond'' each place it 
                appears,
                    (B) by substituting ``any State any portion of 
                which is in the Hurricane Ike recovery area'' for ``the 
                State of Alabama, Louisiana, or Mississippi'' in 
                paragraph (4)(A)(i),
                    (C) by substituting ``after December 31, 2008 and 
                before January 1, 2010'' for ``after December 31, 2005, 
                and before January 1, 2007'',
                    (D) by substituting ``shall not exceed $100,000,000 
                for any State with an aggregate population located in 
                the portion of the State which is in the Hurricane Ike 
                recovery area of at least 2,000,000, $50,000,000 for 
                any State with an aggregate population located in such 
                portion 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 September 12, 
                2008.'' for ``shall not exceed'' and all that follows 
                in paragraph (4)(C), and
                    (E) by substituting ``September 12, 2008'' for 
                ``August 28, 2005'' in paragraph (5)(A).
            (9) Housing tax benefits.--Section 1400P, by substituting 
        ``September 12, 2008'' for ``August 28, 2005'' in subsection 
        (c)(1).
            (10) Special rules for use of retirement funds.--Section 
        1400Q--
                    (A) by substituting ``qualified Hurricane Ike 
                recovery area distribution'' for ``qualified hurricane 
                distribution'' each place it appears,
                    (B) by substituting ``on or after September 12, 
                2008, and before January 1, 2010'' for ``on or after 
                August 25, 2005, and before January 1, 2007'' in 
                subsection (a)(4)(A)(i),
                    (C) by substituting ``September 12, 2008'' for 
                ``August 28, 2005'' in subsections (a)(4)(A)(i) and 
                (c)(3)(B),
                    (D) by disregarding clauses (ii) and (iii) of 
                subsection (a)(4)(A) thereof,
                    (E) by substituting ``qualified Hurricane Ike 
                distribution'' for ``qualified Katrina distribution'' 
                each place it appears,
                    (F) by substituting ``April 12, 2008, and before 
                September 13, 2008'' for ``after February 28, 2005, and 
                before August 29, 2005'' in subsection (b)(2)(B)(ii),
                    (G) by substituting ``the Hurricane Ike recovery 
                area, but not so purchased or constructed on account of 
                Hurricane Ike'' for ``the Hurricane Katrina disaster 
                area, but not so purchased or constructed on account of 
                Hurricane Katrina'' in subsection (b)(2)(B)(iii),
                    (H) by substituting ``beginning on September 12, 
                2008, and ending on the date which is 5 months after 
                the date of the enactment of the Hurricane Ike Tax 
                Relief Act of 2008'' for ``beginning on August 25, 
                2005, and ending on February 28, 2006'' in subsection 
                (b)(3)(A),
                    (I) by substituting ``qualified Hurricane Ike 
                individual'' for ``qualified Hurricane Katrina 
                individual'' each place it appears,
                    (J) by substituting ``December 31, 2009'' for 
                ``December 31, 2006'' in subsection (c)(2)(A),
                    (K) by substituting ``beginning on the date of the 
                enactment of the Hurricane Ike Tax Relief Act of 2008 
                and ending on December 31, 2009'' for ``beginning on 
                September 24, 2005, and ending on December 31, 2006'' 
                in subsection (c)(4)(A)(i),
                    (L) by substituting ``September 12, 2008'' for 
                ``August 25, 2005'' in subsection (c)(4)(A)(ii), and
                    (M) by substituting ``January 1, 2010'' for 
                ``January 1, 2007'' in subsection (d)(2)(A)(ii).
            (11) Employee retention credit for employers affected by 
        hurricane ike.--Section 1400R(a)--
                    (A) by substituting ``September 12, 2008'' for 
                ``August 28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2009'' for 
                ``January 1, 2006'' both places it appears, and
                    (C) only with respect to eligible employers who 
                employed an average of not more than 200 employees on 
                business days during the taxable year before September 
                12, 2008.
            (12) Temporary suspension of limitations on charitable 
        contributions.--Section 1400S(a), by substituting the following 
        paragraph for paragraph (4) thereof:
            ``(4) Qualified contributions.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified contribution' means any charitable 
                contribution (as defined in section 170(c)) if--
                            ``(i) such contribution--
                                    ``(I) is paid during the period 
                                beginning on September 12, 2008, and 
                                ending on December 31, 2008, in cash to 
                                an organization described in section 
                                170(b)(1)(A), and
                                    ``(II) is made for relief efforts 
                                in the Hurricane Ike recovery area,
                            ``(ii) 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 the 
                        Hurricane Ike recovery area, and
                            ``(iii) the taxpayer has elected the 
                        application of this subsection with respect to 
                        such contribution.
                    ``(B) Exception.--Such term shall not include a 
                contribution by a donor if the contribution is--
                            ``(i) to an organization described in 
                        section 509(a)(3), or
                            ``(ii) for establishment of a new, or 
                        maintenance of an existing, donor advised fund 
                        (as defined in section 4966(d)(2)).
                    ``(C) Application of election to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation, the election under subparagraph (A)(iii) 
                shall be made separately by each partner or 
                shareholder.''.
            (13) Suspension of certain limitations on personal casualty 
        losses.--Section 1400S(b)(1), by substituting ``September 12, 
        2008'' for ``August 25, 2005''.
            (14) Special rule for determining earned income.--Section 
        1400S(d)--
                    (A) by treating an individual as a qualified 
                individual if such individual's principal place of 
                abode on September 12, 2008, was located in the 
                Hurricane Ike recovery area,
                    (B) by treating September 12, 2008, with respect to 
                any such individual as the applicable date for purposes 
                of such subsection, and
                    (C) by treating an area as described in paragraph 
                (2)(B)(ii) thereof if the area is a Hurricane Ike 
                recovery area only by reason of subsection (b)(2) of 
                this section (relating to areas eligible only for 
                public assistance).
            (15) Adjustments regarding taxpayer and dependency 
        status.--Section 1400S(e), by substituting ``2008 or 2009'' for 
        ``2005 or 2006''.
    (f) Modifications to Katrina Emergency Tax Relief Act of 2005.--In 
the case of the Hurricane Ike recovery area, the following provisions 
of the Katrina Emergency Tax Relief Act of 2005 shall be applied with 
the following modifications:
            (1) Additional exemption for housing displaced 
        individual.--Section 302--
                    (A) by substituting ``2008 or 2009'' for ``2005 or 
                2006'' in subsection (a) thereof,
                    (B) by substituting ``Hurricane Ike displaced 
                individual'' for ``Hurricane Katrina displaced 
                individual'' each place it appears, and
                    (C) by treating an area as a core disaster area for 
                purposes of applying subsection (c) thereof if the area 
                is a Hurricane Ike recovery area without regard to 
                subsection (b)(2) of this section (relating to areas 
                eligible only for public assistance).
            (2) Mileage reimbursements for charitable volunteers.--
        Section 304--
                    (A) by substituting ``beginning on September 12, 
                2008, and ending on December 31, 2008'' for ``beginning 
                on August 25, 2005, and ending on December 31, 2006'' 
                in subsection (a), and
                    (B) by substituting ``September 12, 2008'' for 
                ``August 25, 2005'' in subsection (a).
            (3) Exclusion of certain cancellation of indebtedness 
        income.--Section 401--
                    (A) by treating an individual whose principal place 
                of abode on September 12, 2008, was in the Hurricane 
                Ike recovery 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 
                September 12, 2008, was in the Hurricane Ike recovery 
                area solely by reason of subsection (b)(2) of this 
                section as an individual described in subsection (b)(2) 
                thereof,
                    (B) by substituting ``September 12, 2008'' for 
                ``August 28, 2005'' both places it appears, and
                    (C) by substituting ``January 1, 2010'' for 
                ``January 1, 2007'' in subsection (e).
            (4) Extension of replacement period for nonrecognition of 
        gain.--Section 405, by substituting ``on or after September 12, 
        2008'' for ``on or after August 25, 2005''.

SEC. 3. ENHANCED CHARITABLE DEDUCTIONS FOR CONTRIBUTIONS OF FOOD 
              INVENTORY.

    (a) Increased Amount of Deduction.--
            (1) In general.--Clause (iv) of section 170(e)(3)(C) 
        (relating to termination) of the Internal Revenue Code of 1986 
        is amended by striking ``December 31, 2007'' and inserting 
        ``December 31, 2009''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to contributions made after December 31, 2007.
    (b) Temporary Suspension of Limitations on Charitable 
Contributions.--
            (1) In general.--Section 170(b) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(3) Temporary suspension of limitations on charitable 
        contributions.--In the case of a qualified farmer or rancher 
        (as defined in paragraph (1)(E)(v)), any charitable 
        contribution of food--
                    ``(A) to which subsection (e)(3)(C) applies 
                (without regard to clause (ii) thereof), and
                    ``(B) which is made during the period beginning on 
                the date of the enactment of this paragraph and before 
                January 1, 2009,
        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.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.

SEC. 4. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
              BOOK INVENTORY.

    (a) Extension.--Clause (iv) of section 170(e)(3)(D) of the Internal 
Revenue Code of 1986 (relating to termination) of the Internal Revenue 
Code of 1986 is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Clerical Amendment.--Clause (iii) of section 170(e)(3)(D) of 
such Code (relating to certification by donee) is amended by inserting 
``of books'' after ``to any contribution''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2007.

SEC. 5. REPORTING REQUIREMENTS RELATING TO DISASTER RELIEF 
              CONTRIBUTIONS.

    (a) In General.--Section 6033(b) of the Internal Revenue Code of 
1986 (relating to returns of certain organizations described in section 
501(c)(3)) is amended by striking ``and'' at the end of paragraph (13), 
by redesignating paragraph (14) as paragraph (15), and by adding after 
paragraph (13) the following new paragraph:
            ``(14) 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''.
    (b) Effective Date.--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.

SEC. 6. INCREASE IN PASSENGER AUTOMOBILE MILEAGE RATES.

    (a) Charitable Mileage Rate Same as Medical and Moving Rate.--
            (1) In general.--Subsection (i) of section 170 of the 
        Internal Revenue Code of 1986 (relating to standard mileage 
        rate for use of passenger automobile) is amended by striking 
        ``14 cents per mile'' and inserting ``the rate determined for 
        purposes of sections 213 and 217''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to miles driven on or after the date of the 
        enactment of this Act.
    (b) Increase in Mileage Rates.--For any portion of the period 
beginning on the date of the enactment of this Act and ending on 
December 31, 2008, the standard mileage rate under each of sections 
162, 213, and 217 of the Internal Revenue Code of 1986 for operating a 
passenger automobile shall be not less than the greater of--
            (1) 133.7 percent of the rate in effect under each such 
        section on January 1, 2008, or
            (2) the rate prescribed by the Internal Revenue Service for 
        each such section.
                                 <all>