1.
(a)This Act may be cited as the
Renewable Energy and Job Creation Tax
Act of 2008
.
(b)Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference shall
be considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c)The table of contents for this Act is as
follows:
Sec. 1. Short title,
etc.
Title I—Energy Tax
Incentives
Subtitle A—Energy
production incentives
Part 1—Renewable energy
incentives
Sec. 101. Renewable
energy credit.
Sec. 102. Production
credit for electricity produced from marine renewables.
Sec. 103. Energy
credit.
Sec. 104. Credit for
residential energy efficient property.
Sec. 105. Special
rule to implement FERC and State electric restructuring policy.
Part 2—Carbon mitigation
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.
Sec. 114. Special
rules for refund of the coal excise tax to certain coal producers and
exporters.
Sec. 115. Carbon
audit of the tax code.
Subtitle
B—Transportation and domestic fuel security provisions
Sec. 121. Inclusion
of cellulosic biofuel in bonus depreciation for biomass ethanol plant
property.
Sec. 122. Credits for
biodiesel and renewable diesel.
Sec. 123. Clarification that credits for fuel are designed to
provide an incentive for United States production.
Sec. 124. Credit for
new qualified plug-in electric drive motor vehicles.
Sec. 125. Exclusion from heavy truck tax for idling reduction
units and advanced insulation.
Sec. 126. Transportation fringe benefit to bicycle
commuters.
Sec. 127. Alternative
fuel vehicle refueling property credit.
Sec. 128. 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.
Subtitle C—Energy
conservation and efficiency provisions
Sec. 131. Credit for
nonbusiness energy property.
Sec. 132. Energy
efficient commercial buildings deduction.
Sec. 133. Modifications of energy efficient appliance credit
for appliances produced after 2007.
Sec. 134. Accelerated
recovery period for depreciation of smart meters and smart grid
systems.
Sec. 135. Qualified
green building and sustainable design projects.
Title II—Extension of
temporary provisions
Subtitle
A—Extensions Primarily Affecting Individuals
Sec. 201. Deduction for State and local sales
taxes.
Sec. 202. Deduction
of qualified tuition and related expenses.
Sec. 203. Treatment
of certain dividends of regulated investment companies.
Sec. 204. Tax-free
distributions from individual retirement plans for charitable
purposes.
Sec. 205. Deduction
for certain expenses of elementary and secondary school teachers.
Sec. 206. Stock in
RIC for purposes of determining estates of nonresidents not
citizens.
Sec. 207. Qualified
investment entities.
Sec. 208. Real
property tax standard deduction.
Subtitle
B—Extensions Primarily Affecting Businesses
Sec. 221. Research
credit.
Sec. 222. Indian employment credit.
Sec. 223. New markets
tax credit.
Sec. 224. Railroad
track maintenance.
Sec. 225. Fifteen-year straight-line cost recovery for
qualified leasehold improvements and qualified restaurant property.
Sec. 226. Seven-year
cost recovery period for motorsports racing track facility.
Sec. 227. Accelerated
depreciation for business property on Indian reservation.
Sec. 228. Expensing
of environmental remediation costs.
Sec. 229. Deduction allowable with respect to income
attributable to domestic production activities in Puerto Rico.
Sec. 230. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 231. Qualified
zone academy bonds.
Sec. 232. Tax
incentives for investment in the District of Columbia.
Sec. 233. Economic
development credit for American Samoa.
Sec. 234. Enhanced charitable deduction for contributions of
food inventory.
Sec. 235. Enhanced
charitable deduction for contributions of book inventory to public
schools.
Sec. 236. Enhanced
deduction for qualified computer contributions.
Sec. 237. Basis
adjustment to stock of S corporations making charitable contributions of
property.
Sec. 238. Work
opportunity tax credit for Hurricane Katrina employees.
Sec. 239. Subpart
F exception for active financing
income.
Sec. 240. Look-thru
rule for related controlled foreign corporations.
Sec. 241. Expensing
for certain qualified film and television productions.
Subtitle C—Other
Extensions
Sec. 251. Authority
to disclose information related to terrorist activities made
permanent.
Sec. 252. Authority
for undercover operations made permanent.
Sec. 253. Increase in
limit on cover over of rum excise tax to Puerto Rico and the Virgin
Islands.
Title III—Additional
tax relief and other provisions
Sec. 301. Refundable
child credit.
Sec. 302. Provisions
related to film and television productions.
Sec. 303. Exemption
from excise tax for certain arrows designed for use by children.
Sec. 304. Modification of penalty on understatement of
taxpayer’s liability by tax return preparer.
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.
Sec. 406. Nonqualified deferred compensation from certain tax
indifferent parties.
Sec. 407. Delay in
application of worldwide allocation of interest.
Sec. 408. Time for
payment of corporate estimated taxes.
<enum>I</enum><header display-inline="yes-display-inline">Energy Tax Incentives</header>
<subtitle commented="no" id="H88F821FA6EBF4AECAFC2842D789CEA3E" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Energy production incentives</header>
<part commented="no" id="HD2AD0801E8D44F93A6D4A39879EA14D9" level-type="subsequent"><enum>1</enum><header display-inline="yes-display-inline">Renewable energy incentives</header>
<section commented="no" display-inline="no-display-inline" id="H253F76256482465AB7CDCDF7173D8E08" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Renewable energy credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H7F473A0EA3F644D79632E1B9B85EABA"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0AB945D68773488FB0C804EB5DFC05C2"><enum>(1)</enum><header display-inline="yes-display-inline">Wind facilities</header><text display-inline="yes-display-inline">Paragraph (1) of section 45(d) is amended
by striking <quote>January 1, 2009</quote> and inserting <quote>January 1,
2010</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4F1BD6FA16D4454487358D68F5BDA0F1"><enum>(2)</enum><header display-inline="yes-display-inline">Other facilities</header><text display-inline="yes-display-inline">Each of the following provisions of section
45(d) is amended by striking <quote>January 1, 2009</quote> and inserting
<quote>October 1, 2011</quote>:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H22385082837A4F4FA58B9B063E36F53E"><enum>(A)</enum><text display-inline="yes-display-inline">Clauses (i) and (ii) of paragraph
(2)(A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H14561DC2345A422483B3B277038F91E"><enum>(B)</enum><text display-inline="yes-display-inline">Clauses (i)(I) and (ii) of paragraph
(3)(A).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0701146E6BFC48298644BDF212890015"><enum>(C)</enum><text display-inline="yes-display-inline">Paragraph (4).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4F8BB5ACF28741E8BFBE7DBBF3C00657"><enum>(D)</enum><text display-inline="yes-display-inline">Paragraph (5).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H099B3E0744BB4D3DBBDE21A3CE121550"><enum>(E)</enum><text display-inline="yes-display-inline">Paragraph (6).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8144F892843746A1BE58C716A82D4D52"><enum>(F)</enum><text display-inline="yes-display-inline">Paragraph (7).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H26F22E77D2FB49ECB9B00D3500169BB"><enum>(G)</enum><text display-inline="yes-display-inline">Subparagraphs (A) and (B) of paragraph
(9).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H37352C7942F34491BC27B3DBAA406B08"><enum>(b)</enum><header display-inline="yes-display-inline">Modification of Credit Phaseout</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9E46E9C9BE0941ADB452BFBBE7E18F15"><enum>(1)</enum><header display-inline="yes-display-inline">Repeal of phaseout</header><text display-inline="yes-display-inline">Subsection (b) of section 45 is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7A8F4052A883481A8100E000D2AB71A4"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (1), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC7AEE790A307453194F0D6DAD0240E7"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>the 8 cent amount in
paragraph (1),</quote> in paragraph (2) thereof.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H10D964A4914745FFBD24339433EB9E85"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation based on investment in
facility</header><text display-inline="yes-display-inline">Subsection (b) of
section 45 is amended by inserting before paragraph (2) the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE0520891A6DF46CF8D7B5C725E56F635" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA811F4FCACB74AFBBA205108C0DA3D1C"><enum>(1)</enum><header display-inline="yes-display-inline">Limitation based on investment in
facility</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H43B783D150294908BADE255545C91605"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any qualified facility
originally placed in service after December 31, 2009, the amount of the credit
determined under subsection (a) for any taxable year with respect to
electricity produced at such facility shall not exceed the product of—</text>
<clause commented="no" display-inline="no-display-inline" id="H70A18F809C1245FA94089BD36EA0CD"><enum>(i)</enum><text display-inline="yes-display-inline">the applicable percentage with respect to
such facility, multiplied by</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H3CDF46F07A56492DA218B107566800D5"><enum>(ii)</enum><text display-inline="yes-display-inline">the eligible basis of such facility.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3557BE67494247BA006589C079D232F"><enum>(B)</enum><header display-inline="yes-display-inline">Carryforward of unused limitation and
excess credit</header>
<clause commented="no" display-inline="no-display-inline" id="HFD68596D59A9413487E496C6094513C0"><enum>(i)</enum><header display-inline="yes-display-inline">Unused limitation</header><text display-inline="yes-display-inline">If the limitation imposed under
subparagraph (A) with respect to any facility for any taxable year exceeds the
prelimitation credit for such facility for such taxable year, the limitation
imposed under subparagraph (A) with respect to such facility for the succeeding
taxable year shall be increased by the amount of such excess.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HF643509CA2FB476681EAEAFB53DCF09"><enum>(ii)</enum><header display-inline="yes-display-inline">Excess credit</header><text display-inline="yes-display-inline">If the prelimitation credit with respect to
any facility for any taxable year exceeds the limitation imposed under
subparagraph (A) with respect to such facility for such taxable year, the
credit determined under subsection (a) with respect to such facility for the
succeeding taxable year (determined before the application of subparagraph (A)
for such succeeding taxable year) shall be increased by the amount of such
excess. With respect to any facility, no amount may be carried forward under
this clause to any taxable year beginning after the 10-year period described in
subsection (a)(2)(A)(ii) with respect to such facility.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H543BEA9E5E9848909BCF159CDDAECDC4"><enum>(iii)</enum><header display-inline="yes-display-inline">Prelimitation credit</header><text display-inline="yes-display-inline">The term <quote>prelimitation
credit</quote> with respect to any facility for a taxable year means the credit
determined under subsection (a) with respect to such facility for such taxable
year, determined without regard to subparagraph (A) and after taking into
account any increase for such taxable year under clause (ii).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6652F6CBE0BF486DA3F2C42539908709"><enum>(C)</enum><header display-inline="yes-display-inline">Applicable percentage</header><text display-inline="yes-display-inline">For purposes of this paragraph—</text>
<clause commented="no" display-inline="no-display-inline" id="HFACA3516665842D5BFC8CA1D799B5770"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <quote>applicable
percentage</quote> means, with respect to any facility, the appropriate
percentage prescribed by the Secretary for the month in which such facility is
originally placed in service.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H4E6A2648A56F4F19B73B44F387ACB830"><enum>(ii)</enum><header display-inline="yes-display-inline">Method of prescribing applicable
percentage</header><text display-inline="yes-display-inline">The applicable
percentage prescribed by the Secretary for any month under clause (i) shall be
the percentage which yields over a 10-year period amounts of limitation under
subparagraph (A) which have a present value equal to 35 percent of the eligible
basis of the facility.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H776D4EA9C46B42DE9FB9EB00E6FDB420"><enum>(iii)</enum><header display-inline="yes-display-inline">Method of discounting</header><text display-inline="yes-display-inline">The present value under clause (ii) shall
be determined—</text>
<subclause commented="no" display-inline="no-display-inline" id="H9991FC1A432E4F8F948F82DA5D1704A3"><enum>(I)</enum><text display-inline="yes-display-inline">as of the last day of the 1st year of the
10-year period referred to in clause (ii),</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HE2076E895A634E0E9412BC2007675FB1"><enum>(II)</enum><text display-inline="yes-display-inline">by using a discount rate equal to the
greater of 110 percent of the Federal long-term rate as in effect under section
1274(d) for the month preceding the month for which the applicable percentage
is being prescribed, or 4.5 percent, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HEF65EF421C5E486DA6485DE6008E1281"><enum>(III)</enum><text display-inline="yes-display-inline">by taking into account the limitation under
subparagraph (A) for any year on the last day of such year.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB7E5E4ED445F4FA490417C35CA960018"><enum>(D)</enum><header display-inline="yes-display-inline">Eligible
basis</header><text display-inline="yes-display-inline">For purposes of this
paragraph—</text>
<clause commented="no" display-inline="no-display-inline" id="HA9883B4D381B44C89BC86008057FE30"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <quote>eligible basis</quote>
means, with respect to any facility, the sum of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H79896EC80D764281A2AE7ECE226CF0ED"><enum>(I)</enum><text display-inline="yes-display-inline">the basis of such facility determined as of
the time that such facility is originally placed in service, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HB96C6FAD57664A2FB9EA60C49E203B67"><enum>(II)</enum><text display-inline="yes-display-inline">the portion of the basis of any shared
qualified property which is properly allocable to such facility under clause
(ii).</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H8EBCD2FE63F842A2A4FD2B00A46159B3"><enum>(ii)</enum><header display-inline="yes-display-inline">Rules for allocation</header><text display-inline="yes-display-inline">For purposes of subclause (II) of clause
(i), the basis of shared qualified property shall be allocated among all
qualified facilities which are projected to be placed in service and which
require utilization of such property in proportion to projected generation from
such facilities.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H30401A3D1CE54A67A1DC003D2C2C019F"><enum>(iii)</enum><header display-inline="yes-display-inline">Shared qualified property</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<quote>shared qualified property</quote> means, with respect to any facility,
any property described in section 168(e)(3)(B)(vi)—</text>
<subclause commented="no" display-inline="no-display-inline" id="HACB94E47F587408DA23DCA284BCED46E"><enum>(I)</enum><text display-inline="yes-display-inline">which a qualified facility will require for
utilization of such facility, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HBE513A63CB074ADEB50902367FD760E2"><enum>(II)</enum><text display-inline="yes-display-inline">which is not a qualified facility.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H09CB51EFD3EA4E76977FC2166F69F264"><enum>(iv)</enum><header display-inline="yes-display-inline">Special rule relating to geothermal
facilities</header><text display-inline="yes-display-inline">In the case of any
qualified facility using geothermal energy to produce electricity, the basis of
such facility for purposes of this paragraph shall be determined as though
intangible drilling and development costs described in section 263(c) were
capitalized rather than expensed.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC0BEAC21A9E74A599842E9E8C78C8406"><enum>(E)</enum><header display-inline="yes-display-inline">Special rule for first and last year of
credit period</header><text display-inline="yes-display-inline">In the case of
any taxable year any portion of which is not within the 10-year period
described in subsection (a)(2)(A)(ii) with respect to any facility, the amount
of the limitation under subparagraph (A) with respect to such facility shall be
reduced by an amount which bears the same ratio to the amount of such
limitation (determined without regard to this subparagraph) as such portion of
the taxable year which is not within such period bears to the entire taxable
year.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEC3E94F1E3DD4213B5BCECE27737286"><enum>(F)</enum><header display-inline="yes-display-inline">Election to treat all facilities placed in
service in a year as 1 facility</header><text display-inline="yes-display-inline">At the election of the taxpayer, all
qualified facilities which are part of the same project and which are
originally placed in service during the same calendar year shall be treated for
purposes of this section as 1 facility which is originally placed in service at
the mid-point of such year or the first day of the following calendar
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H661FF078A2C44E3AB8AAEC00B271422D"><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="HB8A38581933D408E98098C9853337481"><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="H1A1B5A40DD1047B7B2FF9D211246E1B3"><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="H0EF46404A9A2421B99CE93B25C4128E8"><enum>(d)</enum><header display-inline="yes-display-inline">Expansion of biomass facilities</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3505FA0E494A4C84B0E2AD847E0058E5"><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 display-inline="no-display-inline" id="HE25DFA8E0C1B4FA6A16558905BB49DCA" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H947B741934354BE7BDC561B9DEBA10DD"><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="H31DB6A6574AA40E7BAEC970CE00169D"><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 display-inline="no-display-inline" id="H81B9718AA38E4BD8BFA5B044D7BCC4B" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H1631EEA600FC4F02814695F51F6F00CF"><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="HB9C90A7F7ABF400086C616A5803106C2"><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 display-inline="no-display-inline" id="H1F6693EA635F4EC6ADFB577338A09025" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H2F173740D12E4BFCBAFB408EE54BFBEB"><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="H3256FC94CC6C44CA99E383104EF03B81"><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="H18EB6D6F1B0F4809B5EF92994262F701"><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="H58CCCAC63720454189DB7C4400ED0008"><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="H2229883207CB4DDCBBE8EDCDE2B1967"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9FCF18106C534EA0BF44DD8000166904"><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="HD3C3B4722D524CAE8CA0A3144C88BF"><enum>(2)</enum><header display-inline="yes-display-inline">Repeal of credit phaseout</header><text display-inline="yes-display-inline">The amendments made by subsection (b)(1)
shall apply to taxable years ending after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H59B6E4E7D366447DAE808B0065E91B74"><enum>(3)</enum><header display-inline="yes-display-inline">Limitation based on investment in
facility</header><text display-inline="yes-display-inline">The amendment made
by subsection (b)(2) shall apply to property originally placed in service after
December 31, 2009.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAD6168B88DEC4CAABDA71D6904E0EAA8"><enum>(4)</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="HF546F37459914C609FD317B4B294D35B"><enum>(5)</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="H86A3716AF53346118550AB1F22E0EB6F" 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="HDE3223B176DC4C14BFDCA1CFA3817C4B"><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 display-inline="no-display-inline" id="H8B4992A90C9E49BEB954332421021EF8" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HE5BB9E3C55D04D21B9AA4D747275E869"><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="H513B28108DBA4F0CB67BDDBB4A8CC99"><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 display-inline="no-display-inline" id="H91C6472CE94D4282B2626D2F50D3C2BB" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA0A01B183A4C4965963511E08D61900"><enum>(10)</enum><header display-inline="yes-display-inline">Marine and hydrokinetic renewable
energy</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB02CB3569EFA4569BDBEAC000054ADEC"><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="HBBFDDB1624324D47AD740045CB372B4C"><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="HD3795984A1B74D3386554E75AADF6731"><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="H06B1B42C6B68429AB28D3D12AA97C793"><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="H9555FC0C240C45199855C07352C5EAB9"><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="H843095BA90694963A4921863023BFA7C"><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="H92C125A66B104E279E5F75B017C2F8CF"><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 display-inline="no-display-inline" id="H1BA0EA1E49CC45A4AD15558FB06300BA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H823F8A8FA5374F239FCBD7D831723F1F"><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="HE6B429F28B734AA990298448092B77BC"><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="HE9DD21DC305C4700B61130B9842790A6"><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 October 1,
2011.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H45F027205AFD44F4846B9C59ED246122"><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="H72ACDC95BC7C4172BB00005841ADF894"><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>October
1, 2011</quote> and inserting <quote>the date of the enactment of paragraph
(11)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBB42C54A5297471AB779F89CF4332D4"><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="H42D934A535AC4A52815F80002B328F55" 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="H6AF4946D6F5248658C165F9E0000A803"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCBF974FD3EEF4B3CAD9C81C1DA30BEBB"><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="HD354E31964E7417391B5798D5E2D42F1"><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="H19281B782A994D469E10FC5508D600B2"><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="H8CBDB1F016194975A4CE18F8FF7C2BAA"><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="H3BB783ABB299419586C14F6863760278"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (B) of section 38(c)(4) is
amended by redesignating clause (vi) as clause (vii), by striking
<quote>and</quote> at the end of clause (v), and by inserting after clause (v)
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H954491D3288144DCAEF6EC31E735834E" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HF1016C79DFD84CC5B61782D080551B1D"><enum>(vi)</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,
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4664500C75904A7FA8DD871DFAF7B2"><enum>(2)</enum><header display-inline="yes-display-inline">Technical amendment</header><text display-inline="yes-display-inline">Clause (v) of section 38(c)(4)(B) 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="HAEFD82C61A404F77AAA17801E5B6AA"><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="H2330796BF469440E9595742304FBECCB"><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 display-inline="no-display-inline" id="H6A35F78ADAF844A3B5C052FD37A6DCA8" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HD9583A9645EB458787D54E8742AA804C"><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="H983774AD2C5C4AC7BA85D01B9B10B4AE"><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="HC3F4950FBEA748819814CA52F198EB7"><enum>(A)</enum><text display-inline="yes-display-inline">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="HAF226BD62DF54F0BB8C5395C45A209A5"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H956994FB1A1F4D1ABC5E53B58DB6D2DC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H3A1A52DCF42A4DD987CD35E1D8C838CB"><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="H8BFD4E3379EA47658B3B86ECB6CC869"><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="H02FE04175DC641D8BA9619D8ACCAFA5"><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="H4D45A7DE092F4791ADAE7105A8B929CF"><enum>(ii)</enum><text display-inline="yes-display-inline">which produces—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD91642ACAFB247D6A4C7A73D153FB02F"><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="H918DA0E01FD24CEA93DDAA3DBC3CDE3"><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="H85B4B246081B402AA147767B6B000006"><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="H72EF177758AD4F0BBCFE30A0705100DD"><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="H3CA44F24BCDD494FAF068E25F6BF456B"><enum>(B)</enum><header display-inline="yes-display-inline">Limitation</header>
<clause commented="no" display-inline="no-display-inline" id="HB6ACECD1205A4D45A5B3665681AC8776"><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="H0C0ECDB500634F04BAA30741019BDCE"><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="HFEB715A1CF8E4B9C9707A07732D3DEFA"><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="H3804572E239343FBB20013C7FA4F0809"><enum>(C)</enum><header display-inline="yes-display-inline">Special rules</header>
<clause commented="no" display-inline="no-display-inline" id="H72FFA2F7AE484B559009B537A273BA78"><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="H82096715B93240DDAEE177737F94CFEF"><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="HE62EC577640744BEB298A2D2F4EE8636"><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="H4394B974268A4CEBAAEEDF6FEDC6C224"><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="H63C16CFA41264951990000AC96876BA6"><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="H2D6945FDF066489391C03B158028E4C1"><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="HBCC6A59CD7814B48A8DC45F1875CB38E"><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="H31C48733013740959D97C975CDBEADA9"><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="HA1AF0897B8AC4B889FA0EC842CF6FA00"><enum>(3)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">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="HDB329657E58D433C844C8D9800E094B9"><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="H71806C292E49434EA2DF2E9E3B001FD4"><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="HF34AD13FB5A74ECA865331C8315725B8"><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="H3E49EBFE5BCC47AE81E6CA49A87C2C2B"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HAB84E8F24A16404BAA39BF90E345649D"><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="HAD075813994944708684321F852F4539"><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="H7CDB050EAF7B4D8EB239329F63648732"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3A67361B73BE4588B2B300A481833780"><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="H2EE99E2B7C064CDCB8F11B1661001C4F"><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="HBD4706D91BC344718963E6FADE50246E"><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 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><paragraph commented="no" display-inline="no-display-inline" id="HF37A0932E5384483A91C8800DF312259"><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" display-inline="no-display-inline" id="HCF01AEF448F848D39B3838F99F49F020" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Credit for residential energy efficient
property</header>
<subsection commented="no" display-inline="no-display-inline" id="H99F717B8CB9043A3BE434000748396BA"><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="H08CA7097630247C6952B2FEBB61D6674"><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="HB928B7CBC37D40C1848D3DAA3E05FCEE"><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="H9AD92EE114C548B7B4B41FC97DE3589"><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="H1ACA5DBF1B7D4AC19CBFDC78B7832BDD"><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="HABFDD4C1DCC7469EB2EBE1F3BD37305C"><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="H4A46AD8667594F4C96A66F100002639D"><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="HB178C7CE0BB041B38527D81200691100"><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="HF33311BC63ED4200B7F9475F1481D3C2"><enum>(c)</enum><header display-inline="yes-display-inline">Credit for residential wind
property</header>
<paragraph commented="no" display-inline="no-display-inline" id="H49E03F568A9F4D62BA22ECBA139E2E4"><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 display-inline="no-display-inline" id="HEFEFD0F5809C4ADF9C81DA64B9EBF24" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H30054A4B139344EB8F75CB5F55D85CD2"><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="H83C5D636213E489D867F9931CE838F6D"><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 display-inline="no-display-inline" id="H65C4B986068D4F559DA2E541298C2C65" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H76364E4CCC0F4D1DA41CC5EC0056E500"><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="H3EB4CD62A7F94B72BD9BE67FB7E14821"><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="H69850C0FA3464FB987AADB976CC0B5BB"><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 display-inline="no-display-inline" id="H2DA546CA353F4B098CEDAE74117DFBBA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HF582B49AE6194BEEBAA0F09D6D03F0EA"><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="H629FB923135C4B42AFFB1B2D6E27A46B"><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="HFBC8296E2C414B84BB4FD2D3ADF28FA4"><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 display-inline="no-display-inline" id="H52909418370D47588093ECC02EBC2870" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H5C2D69841E884C64BCE6007C009773B7"><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="HA2FD6B229C824349A0B7D13BAC0CFC3"><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="H8B80CBC434154C62AE00A99710035BB"><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 display-inline="no-display-inline" id="H5AEF5EBB8ADF4B568608B5A789BAB5FF" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HEFEAED7C0618461C9146238B51EEB913"><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="H883244FF0FB54CD9B1924C409D465F62"><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 display-inline="no-display-inline" id="H3A76175FCEF848028BF025584F4CA603" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H35F4FAC956ED45139E0599FA34EB4B1D"><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="H6367C7B0A6B54A2EB47FA149F5A44C2C"><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 display-inline="no-display-inline" id="HC58F1E2E96444F34861BC32DFC6967AC" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HCFBF6F486F2D4C758C13E6B7C80684B"><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="H1D03208D75974F5B8EF14739A79010FB"><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="H829880D14C6F4AED00001FA6B4DA67B5"><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="H3F78C398FC6640AD84D8308EBADF652B"><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="HB7F60F7733E640FDBCF68449C2C08B0"><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="H6E6A7AB7D89A4874A5A3B5C84998C063"><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 display-inline="no-display-inline" id="H5D296686A93F4AF2B4D05B751CB0052" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H43F1EC39A67D41AAA817496D8DCE7395"><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="H6E2697954AA14FEDBAAFA500C3556B60"><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="H6AB096D6C0AA4AACAB91C63246665FCB"><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 display-inline="no-display-inline" id="H9472AD2C728844CA00938C16A34F63FF" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H348F6367C60F4AB38E931D6BFF00E97B"><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="HE03FD8E08A314428AF4B3EB53C89A7A7"><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="H8467161BE1D2414A89DF02B5FAA15EE"><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="HA28F028F3A2C46718700F968938EEF20"><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="H7C942380426B4A69AB8600FFF1794B77"><enum>(2)</enum><header display-inline="yes-display-inline">Carryforward of unused credit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H72A9273245D542239E9193BF86005968"><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="H0FB50A4F664948FF821CC37700D3E4E7"><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="HC8400A0F61744FCF8172124CDB6F3E65"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H64CF0B07DD724843AE65821622196573"><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="H9B8D9F231953498EA8BA05A2FF5800D7"><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="H8A3D7CAD17D6462291153FBAC3E15FE1"><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="H4FCBFC3275764EF19F54E1B479CC20AC"><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="H6D9B35E506EE410DB2806700223C6D1E"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H79755B4925514C25BD5746B920B44B07"><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="H021836D3F951424A9773893786A7B64F"><enum>(2)</enum><header display-inline="yes-display-inline">Solar electric property
limitation</header><text display-inline="yes-display-inline">The amendments
made by subsection (b) shall apply to property placed in service after the date
of the enactment of this Act, in taxable years ending after such date.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H802AB5EFF0C0422DA3114626D33301D1"><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="H501D9923CB3D4C728ED6E5C0FB95F2A3" section-type="subsequent-section"><enum>105.</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="HC5994711AE004B5D8C2EB32EDE6C44"><enum>(a)</enum><header display-inline="yes-display-inline">Extension for qualified electric
utilities</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB83EC6235F8C47C600BAADFEC70046C3"><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="H38EA95877FD34542AD3660DE8337F5E3"><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 display-inline="no-display-inline" id="H99405F96B6F1446BA051AEAEB240FCF6" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H0692B0BE7F4446C288E299E4A71498D2"><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="H1F235D78CAB94EB7A141EC1986787E51"><enum>(A)</enum><text display-inline="yes-display-inline">a transmitting utility (as defined in
section 3(23) of the Federal Power Act (16 U.S.C. 796(23))) 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="H55AC14B04C394713867539FAB1B000BB"><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="H9CB5D8024C3E4406B1ECFFBF45237D4F"><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="H18C5D96952074B05BD0073B98211F145"><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 display-inline="no-display-inline" id="H8664F6D374DE4781BC2840F447DA2C8F" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H57DCF63104EA40AFB9A9F52994D5700"><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="HC9C0219C5A3B4A6486D817E8ECDEB18"><enum>(d)</enum><header display-inline="yes-display-inline">Effective Dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC9E425059A7A4CC3AE9F607057040000"><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="H2C04028F015B453582F4E471FB37CA2D"><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="H2C5C8F1EC252438CA2DE5820E577DB6F"><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></part><part commented="no" id="H162E36AB388C4DEE8B9B7966009EEE45" level-type="subsequent"><enum>2</enum><header display-inline="yes-display-inline">Carbon mitigation provisions</header>
<section commented="no" display-inline="no-display-inline" id="HFB2F63C187A14E3A902400609B267104" 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="H94C57C4FF1CC48C5BC9B5E12DE956D3E"><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 display-inline="no-display-inline" id="H86B2FF350BF2484DADDE158DA0007142" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H5ADA37BCD7414DC28932FDE590F138CE"><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="HA4DD0200BB5F4FA299720371FA43B447"><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>$2,250,000,000</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE970E60EDC7B40E5B2B9BE204816918B"><enum>(c)</enum><header display-inline="yes-display-inline">Authorization of Additional
Projects</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC1B29866CFC849B294085DB548010092"><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 display-inline="no-display-inline" id="H7FDAA72176A3454092BC92EDEAFDEFBE" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H46931A68FB7A4AD49E379E8CBB4B2B7B"><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="H7675E932598147B09E29F211CCC85988"><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="HFD5AD8F1E357409696BB5DAD573103C5"><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="HB64D352B265948C0AD6800F08172341E"><enum>(iii)</enum><text display-inline="yes-display-inline">$950,000,000 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="H1A01C459DCAB4A5085CB7342145B19B"><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 display-inline="no-display-inline" id="H4B4EA77CCDAB4A3385DA1FC27956DB77" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H4ACE3E7FDDED40DAB83CE1DB7B612200"><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="HBE7EEF066CFC4D79A0C1BD7DA900628D"><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="HC177F95AC9FC4974BED6E336E63F42E5"><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="H536CF2D8D83343B386576766DA28B103"><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="HE13C145ECD714A83BC872F89942E664F"><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 display-inline="no-display-inline" id="H4860DDF79D7849A691EA07BE24909BA9" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H3BE9F8B4E5634301A1BF5A4D400946E"><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="HFE690D44774F466AADFEC26E4C7718A8"><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 display-inline="no-display-inline" id="HDDADE235DBE84244BF2D1FC197831DA6" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HC5EA404B939A4692A77F6B00B51460F6"><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="H56479CE164974591873DEA17BE56049C"><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 display-inline="no-display-inline" id="H45CB608F6100408D96F025646F11DD00" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC74193ADCB1043BBAD7CDF6001552F3"><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="H6600A401504342D68B5B32F1841F9000"><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="H65AA23CFF4F74DD1AE5752756EE436D9"><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="H27751A51F8404BF68C7706E000D76CBB"><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="H6F7938B66EFE4270A6E000624904DCC"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting after clause (ii) the
following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H8280ABE923F241EAB379BAE33E66F82F" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H975EE52BC29D469EBCFDB45043D20006"><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="HC081A453F46445A695A830AA00D07C8D"><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="H7B7BEFE2C8A04A12BC5D98BF34B80977"><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 display-inline="no-display-inline" id="H290D3D0B39F04AADB19D0098031519FD" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H19C2A800516647A7A1C1FC69BB6958B7"><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="HB33AC421B56B4F149796495E0779FF39"><enum>(e)</enum><header display-inline="yes-display-inline">Effective dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="H6A1D15D3E9FD44068708D87117291FFA"><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="HAABB18DFD1EF4BD9A5DF637168D5FE4"><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="HA712D32DE1A841E39862A6B91FE961C"><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="HAC2EADCF66CF469888E8B3F2D970068" 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="HB27D3CF161B04E3DA78CEEC158002339"><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="H54688E03F3434A47AB0284989C48A000"><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 display-inline="yes-display-inline" id="H5DC3E8257C7640D0A6C3B712181D90FC" style="OLC">
<text>shall not
exceed—</text><subparagraph commented="no" display-inline="no-display-inline" id="H171F39EE87554BABBD79F040C4C630FA"><enum>(A)</enum><text display-inline="yes-display-inline">$350,000,000, plus</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1AD2F6BBC8814FD5BDFC909D3051BB84"><enum>(B)</enum><text display-inline="yes-display-inline">$150,000,000 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="H40D5BE7ACAAF4D69B19255C13DCAC567"><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 display-inline="no-display-inline" id="HAE9A8FD582934E01BBA67EE659F069E1" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H29B22FBA5A9448BCB2A42C1187267B18"><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="H57DF2DC2F8564C6997F2E84E8652C657"><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 display-inline="no-display-inline" id="H1DF16967A15644D9BC7D9E00519F368E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H7271BEA564E64EF7AD54C0C7AF1BCCF2"><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="H7D86C68D4C7E464090339B6C42AEE982"><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="H59DEC7702EC54A95802E5FB7ABC4906B"><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" display-inline="no-display-inline" id="HEFEA0ECFA8454DA089F304B355DCB54"><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 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="H148B435C1CD44A5D9BE8BCA013753EE5" section-type="subsequent-section"><enum>113.</enum><header display-inline="yes-display-inline">Temporary increase in coal excise
tax</header><text display-inline="no-display-inline">Paragraph (2) of section
4121(e) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H56FAE39364FC494BAAE5E7F806F3B162"><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="HCAF1A294692C485589F7618F37664F6C"><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></section><section commented="no" display-inline="no-display-inline" id="HD9109BEE88D8497200EA21DA34CE296C" 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="H44A8753B5CB144F39234F145BB731D40"><enum>(a)</enum><header display-inline="yes-display-inline">Refund</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4393C0E2DA55430C94A66EA12083F102"><enum>(1)</enum><header display-inline="yes-display-inline">Coal producers</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H933346E90E794F8D893D2DF1BDF7506E"><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 section 6511 of the Internal Revenue Code of 1986,
if—</text>
<clause commented="no" display-inline="no-display-inline" id="H16A3086C19AB43D38C345944923F1804"><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="HA8B9EE1820744A97972B5D516E07F45D"><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="HDF76631990254139A411893F94AEFB93"><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="HD4BD8E20B3CE46AB00C5DBA8FE88574"><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="H78F65F9E706347CBAE0318F656348C14"><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="H60EFC5AB9A33463C91F7A1A38E88BEF3"><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="HA1FB079EC5CA4EA2A3912009526481CB"><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="H31067B3343BC4881B7E748CB2EC61CF3"><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="H947B5440314B4DCFA801A81E18BA26AD"><enum>(II)</enum><text display-inline="yes-display-inline">relates to the constitutionality of any tax
paid on exported coal under section 4121 of the Internal Revenue Code of 1986,
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H83CCE1C638C440F78D1277B37C6200C9"><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="HDD9BACC48E0647E8827CD7CAE08E00B9"><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 section 6511 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="H4164B7C94AB847D39B14F4DE667FED41"><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="H072C7D5C18A24CD3A5D2DD2CB57E5657"><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="H367A474F207B404EA8C3CFE48B70F152"><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="HB46E19ACAE8C4823B6D618AD51C9A224"><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="HE25D2C86ABFF43B29715709E92A9009F"><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="H5DAC2FF873F9423A8ED9E8722558F98F"><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="H8D0FC215299B4557BA405374DDF2ACBB"><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="H1E9852421C5040C59154E864D54DCBB"><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="H5E24CA34693646C69583F72A1DA2283"><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="HD97A1AFA8BE842B58BC14DF285681C1D"><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="H450E929D36004FDDBDFAADD374ED811C"><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="H1D286C6FDDA04B2BAA483ED884CCA059"><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="H63B1C27E3A9F42E9B1768DDC70275727"><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="HD0864BE9CEE447C3A8CA92DD3800C21D"><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="H99FED0889CC1472E95B48068370074D2"><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="H3CF72B04070E4D85A56242E43295C4E1"><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="H2ADBB09D13F34A74A247A57514AEE319"><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="H57D695B95FBE43F79E355527FFE94024"><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="H96785371B69D4324A1E64DA54E1106CD"><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="H6CD9AD1053CA4A1D89D88BDB43CB9F12"><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="H50EE64B9C81743D2807081AC1E004352"><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></section><section commented="no" display-inline="no-display-inline" id="HB14F369CAE2C4594B0554200689FA6D3" section-type="subsequent-section"><enum>115.</enum><header display-inline="yes-display-inline">Carbon audit of the tax code</header>
<subsection commented="no" display-inline="no-display-inline" id="H1B304F4B87A64352A32F3971E76058DC"><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="H3782A89FAE3A4DDC98159D5C14E1D43D"><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="H24C0F0EF58DC420E8E5F3B94F8C0F5DB"><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></part></subtitle><subtitle commented="no" id="H6A5EC628C3EC492FB48CBA8027BE094E" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Transportation and domestic fuel security
provisions</header>
<section commented="no" display-inline="no-display-inline" id="H074498567E454DC59E382087D5D55009" section-type="subsequent-section"><enum>121.</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="H7DA24C279FE848B1B9271E2D1D847C6D"><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 display-inline="no-display-inline" id="H756FE1CDCAA148CBBA007B946199D19C" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC7EED29981B44BF798A0286DADAC932E"><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="H77173A5FF8154986B6BEA4224701EE6"><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="H4BA453E7F53743228300A6A488F6AE65"><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="H3D401D8C24F24F1BA92CB6B097065B8"><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="HB15F6F0115A0420A9EAB859169C8D8FD"><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="H3324C7A3CE20438E95186383D34BF900"><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="HCC419769090D41468953524F837194CD" section-type="subsequent-section"><enum>122.</enum><header display-inline="yes-display-inline">Credits for biodiesel and renewable
diesel</header>
<subsection commented="no" display-inline="no-display-inline" id="HB5AA88DC6DF443DF9D1D82E5AB3377F1"><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="H46CA3E6D1B934A35002E85E0C5E61600"><enum>(b)</enum><header display-inline="yes-display-inline">Increase in rate of credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEDCC7ACCF8014E4299773134983369C9"><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="HBD542D0CBADA45C6A9CAF705643DC3B5"><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 display-inline="no-display-inline" id="H23BE002AFDED4A2698F13CEC141B00" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H70D14FEFE7F246C98F6BB4AD569DCCA4"><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="HCE8EC37CBD4E44E88B5EA44E40302E88"><enum>(3)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF8D604A099474089ADB26473CFEBB04"><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="H31A3801FFA9944DAA9F3ACD1ED9500CC"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 40A(f) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA3FAE4C1F7ED47148D99D1290883606E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H5FC4A4494EB64C6692012B55CB9F5C56"><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="H176066D77B91449A8C66CD81CC23FE93"><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="HF16B5206887E446ABB999C43996251E8"><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="H5A26E0E2853A4F2700A7BE2BC61A7FB"><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="HE826DDCD32FE4CCEA61673D69E73AF5B"><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="H5514165FA34A4A0C884749F5857B0026"><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="H6B84DBE1BD304B8296E481401E92A53C"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>or D396</quote> in
subparagraph (B) and inserting <quote>, D396, or other equivalent standard
approved by the Secretary</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H195FFEE21C8C44BCAB3F00006FE19EEB"><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="HA61D5BE838574499BA057DF983AFFEEF"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the following flush
sentence:</text>
<quoted-block display-inline="no-display-inline" id="H749100762F4442BDBB2C61D4F4D8B481" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">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).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H60135B89E19042EE9C569811D6B8BDE"><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="H36665E44BED74D7AA1A57F4C0201A03C"><enum>(e)</enum><header display-inline="yes-display-inline">Eligibility of certain aviation
fuel</header><text display-inline="yes-display-inline">Subsection (f) of
section 40A (relating to renewable diesel) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB09010ACB07B4514983DA4F370F9A850" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4EACBA26E52F4770B8221C861F007497"><enum>(4)</enum><header display-inline="yes-display-inline">Certain aviation fuel</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HF76286DBAC2749F198EC99DB06F5B87"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in the last three
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="H4CF5B044983E49EAA2ABDCB700F56127"><enum>(B)</enum><header display-inline="yes-display-inline">Application of mixture
credits</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9259367790B14EB8B6B6A0E300661831"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3CF7633BE9D44220A83823BE007D7979"><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="H48F7C8C5B4264023B19147E8606DB617"><enum>(2)</enum><header display-inline="yes-display-inline">Coproduction of renewable diesel with
petroleum feedstock</header><text display-inline="yes-display-inline">The
amendments made by subsection (c) shall apply to fuel produced, and sold or
used, after February 13, 2008.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HFC45817D5C2F49E7A8C0EA87CC9BBF49" section-type="subsequent-section"><enum>123.</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="H1FB616B733B240C3AEF678C63CCADCCB"><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 display-inline="no-display-inline" id="HD97993FA45B940EFB4ACCF26E5A032A8" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H8EBE7FCEFC2D4895BCAB60003542531D"><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="H2259F449CC0A41AD96DFD95BC933E8B7"><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 display-inline="no-display-inline" id="H65D1BC036E8C4752B464A2B3C0F248CB" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HF47C1C66F3034FBDA83ED9F2E76636DC"><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="HCB875BB657AE41148F77E7D7FB4EDEA9"><enum>(c)</enum><header display-inline="yes-display-inline">Excise tax credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="H814FF90E6C564ED48E82CE565EF4900"><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 display-inline="no-display-inline" id="H8EF2BD48C77F491FA68D9D1CE19B2D3F" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H5C9C9C0558FC4DB6828F68ED734C6D00"><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="H64774E47A8534DA99DCE18A05F6DBE30"><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="H2E5CB24D1F6C452F9866A97FE01812C"><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="H78F74510C8694BF0AC6EF72FD3BD7293"><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 display-inline="no-display-inline" id="H35114EA715644F3BBE8BAF81336E3CB9" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H60BE488106DD4D1BA5EBF869C2244C9"><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="H81F6F96AF9144FA3A3B7D031CB75E73F"><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" display-inline="no-display-inline" id="H52D84A7894294B7CB9A9B816F4FD2DC9" section-type="subsequent-section"><enum>124.</enum><header display-inline="yes-display-inline">Credit for new qualified plug-in electric
drive motor vehicles</header>
<subsection commented="no" display-inline="no-display-inline" id="HC894F1A4481540BE85318274F78B2CD9"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 30 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H8561A5D8EF2649A7AC62193EC270787E" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H43511A272EA94D2CAAF46BD88D717F42" section-type="subsequent-section"><enum>30.</enum><header display-inline="yes-display-inline">New qualified plug-in electric drive motor
vehicles</header>
<subsection commented="no" display-inline="no-display-inline" id="H00539793BD5C44D8ABF89831D66391C3"><enum>(a)</enum><header display-inline="yes-display-inline">Allowance of credit</header><text display-inline="yes-display-inline">There shall be allowed as a credit against
the tax imposed by this chapter for the taxable year an amount equal to the sum
of the credit amounts determined under subsection (b) with respect to each new
qualified plug-in electric drive motor vehicle placed in service by the
taxpayer during the taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF48EEC42774441B6958D615EB568EC9C"><enum>(b)</enum><header display-inline="yes-display-inline">Per vehicle dollar limitation</header>
<paragraph commented="no" display-inline="no-display-inline" id="H738A60A4AE454FB4B782B4F2EDC21251"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The amount determined under this subsection
with respect to any new qualified plug-in electric drive motor vehicle is the
sum of the amounts determined under paragraphs (2) and (3) with respect to such
vehicle.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H377D529F0F6C48CF80E2D767ED17AC61"><enum>(2)</enum><header display-inline="yes-display-inline">Base amount</header><text display-inline="yes-display-inline">The amount determined under this paragraph
is $3,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1BFD9995BB594292A928F205EA515B"><enum>(3)</enum><header display-inline="yes-display-inline">Battery capacity</header><text display-inline="yes-display-inline">In the case of a vehicle which draws
propulsion energy from a battery with not less than 5 kilowatt hours of
capacity, the amount determined under this paragraph is $200, plus $200 for
each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount
determined under this paragraph shall not exceed $2,000.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H08BC03AC996E42459BCE9928B2F0FA05"><enum>(c)</enum><header display-inline="yes-display-inline">Application with other credits</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9AB5BEEAA346420B8CECBF646CA65C9E"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5CAE52F348C2400495CA02814F9C1648"><enum>(2)</enum><header display-inline="yes-display-inline">Personal credit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDAFA9CA1AAE54729998739BB40C2193"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H3182FDE660594033A412A7E501A8CA72"><enum>(B)</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 any taxable year (determined after application of paragraph
(1)) shall not exceed the excess of—</text>
<clause commented="no" display-inline="no-display-inline" id="H100D87EB94824D73B977B734DEBF5E1"><enum>(i)</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>
</clause><clause commented="no" display-inline="no-display-inline" id="HE99ADFFF69EC407F93CC71AECD213BD"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H90B0BD81E50C45A2A8E8CD6551EFD06D"><enum>(d)</enum><header display-inline="yes-display-inline">New qualified plug-In electric drive motor
vehicle</header><text display-inline="yes-display-inline">For purposes of this
section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H205F4628BDE94EDFADC21500C74BDEA3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>new qualified plug-in
electric drive motor vehicle</term> means a motor vehicle—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H179FDB1E087E4A1B9D46154CC3CFE7AB"><enum>(A)</enum><text display-inline="yes-display-inline">the original use of which commences with
the taxpayer,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6F32ED9CEDD64DEC000333D5376FF8F5"><enum>(B)</enum><text display-inline="yes-display-inline">which is acquired for use or lease by the
taxpayer and not for resale,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H79BF4C39D0224E7EB889320077DD9678"><enum>(C)</enum><text display-inline="yes-display-inline">which is made by a manufacturer,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCDC3BBF604B24D0488BEA77729290000"><enum>(D)</enum><text display-inline="yes-display-inline">which has a gross vehicle weight rating of
less than 14,000 pounds,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCEB044937A5D4DBF900593C789123172"><enum>(E)</enum><text display-inline="yes-display-inline">which has received a certificate of
conformity under the Clean Air Act and meets or exceeds 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 commented="no" display-inline="no-display-inline" id="H69E9BF8379D44963AA8653D0D310EA4D"><enum>(F)</enum><text display-inline="yes-display-inline">which is propelled to a significant extent
by an electric motor which draws electricity from a battery which—</text>
<clause commented="no" display-inline="no-display-inline" id="H5751FE15846F47EA952F2691DC32A620"><enum>(i)</enum><text display-inline="yes-display-inline">has a capacity of not less than 4 kilowatt
hours, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8C106C6C44CD4B86AFF974B4993087DF"><enum>(ii)</enum><text display-inline="yes-display-inline">is capable of being recharged from an
external source of electricity.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H50B7B74A66EC4F4A9260B22B099CF0C9"><enum>(2)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">The term <term>new qualified plug-in
electric drive motor vehicle</term> shall not include any vehicle which is not
a passenger automobile or light truck if such vehicle has a gross vehicle
weight rating of less than 8,500 pounds.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H604D55236BCC491185F7308F9E0856C2"><enum>(3)</enum><header display-inline="yes-display-inline">Motor vehicle</header><text display-inline="yes-display-inline">The term <quote>motor vehicle</quote> means
any vehicle which is manufactured primarily for use on public streets, roads,
and highways (not including a vehicle operated exclusively on a rail or rails)
and which has at least 4 wheels.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H71FD69136C534E7CAE0092E7C137A24B"><enum>(4)</enum><header display-inline="yes-display-inline">Other terms</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HBBA75B0DC2BC454880E6D5103F1FF200"><enum>(5)</enum><header display-inline="yes-display-inline">Battery capacity</header><text display-inline="yes-display-inline">The term <term>capacity</term> means, with
respect to any battery, the quantity of electricity which the battery is
capable of storing, expressed in kilowatt hours, as measured from a 100 percent
state of charge to a 0 percent state of charge.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB0B919C0BFF346CCBD8EABC200F5B0E6"><enum>(e)</enum><header display-inline="yes-display-inline">Limitation on number of new qualified
plug-In electric drive motor vehicles eligible for credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE19462A72A1743B08FD271004DC3341B"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC01A1DCA686C481EA2BA3180D6714B63"><enum>(2)</enum><header display-inline="yes-display-inline">Phaseout period</header><text display-inline="yes-display-inline">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
number of new qualified plug-in electric drive motor vehicles manufactured by
the manufacturer of the vehicle referred to in paragraph (1) sold for use in
the United States after the date of the enactment of this section, is at least
60,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4AF01D659D9245E483AB8C2243CFA68"><enum>(3)</enum><header display-inline="yes-display-inline">Applicable percentage</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the
applicable percentage is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC388ACC0907C455E96A0D53CECC3D605"><enum>(A)</enum><text display-inline="yes-display-inline">50 percent for the first 2 calendar
quarters of the phaseout period,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H61F57443DE1841B194F5790067D47CDD"><enum>(B)</enum><text display-inline="yes-display-inline">25 percent for the 3d and 4th calendar
quarters of the phaseout period, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA247F6043DE541128000112DFE42321E"><enum>(C)</enum><text display-inline="yes-display-inline">0 percent for each calendar quarter
thereafter.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA37227CCE8284760B9E6CCFEBF096E44"><enum>(4)</enum><header display-inline="yes-display-inline">Controlled groups</header><text display-inline="yes-display-inline">Rules similar to the rules of section
30B(f)(4) shall apply for purposes of this subsection.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD0487385E0C844EEA67BB5AB3BE31D53"><enum>(f)</enum><header display-inline="yes-display-inline">Special rules</header>
<paragraph commented="no" display-inline="no-display-inline" id="H811BBF385DC24DA4B21B5D33E8630065"><enum>(1)</enum><header display-inline="yes-display-inline">Basis reduction</header><text display-inline="yes-display-inline">The basis of any property for which a
credit is allowable under subsection (a) shall be reduced by the amount of such
credit (determined without regard to subsection (c)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF3E298079D9E4F37A3537D7747D5007C"><enum>(2)</enum><header display-inline="yes-display-inline">Recapture</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H95258D7E9A3949528C24F7E68DD397D0"><enum>(3)</enum><header display-inline="yes-display-inline">Property used outside United States, etc.,
not qualified</header><text display-inline="yes-display-inline">No credit shall
be allowed 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 commented="no" display-inline="no-display-inline" id="H38512B16C2CF4BC4BBC64B7C34280657"><enum>(4)</enum><header display-inline="yes-display-inline">Election not to take credit</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection
(a) for any vehicle if the taxpayer elects to not have this section apply to
such vehicle.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H541E185724514B0AB9C96C54A942BD81"><enum>(5)</enum><header display-inline="yes-display-inline">Property used by tax-exempt entity;
interaction with air quality and motor vehicle safety standards</header><text display-inline="yes-display-inline">Rules similar to the rules of paragraphs
(6) and (10) of section 30B(h) shall apply for purposes of this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H777E6FA9B6DC4A299FA798CFA91D906D"><enum>(b)</enum><header display-inline="yes-display-inline">Coordination with alternative motor vehicle
credit</header><text display-inline="yes-display-inline">Section 30B(d)(3) is
amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H5528510E4EBF4B58A79D7FAB95E82D22" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HE2C07ED224914E63831F06315EFF7199"><enum>(D)</enum><header display-inline="yes-display-inline">Exclusion of plug-in vehicles</header><text display-inline="yes-display-inline">Any vehicle with respect to which a credit
is allowable under section 30 (determined without regard to subsection (c)
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="H723D75A13A3D40459FC8571DE685A7BC"><enum>(c)</enum><header display-inline="yes-display-inline">Credit made part of general business
credit</header><text display-inline="yes-display-inline">Section 38(b) 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 ‘‘, plus’’, and
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H37CF642CE4CB4B1E9F972C0716A572E4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H2910B773BA82454B8DC072A584BDD6BB"><enum>(34)</enum><text display-inline="yes-display-inline">the portion of the new qualified plug-in
electric drive motor vehicle credit to which section 30(c)(1)
applies.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H116DFC0FF60B45B492E00C42CCA6D29"><enum>(d)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC387F54C02E743A393CE6F65C8C79435"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H8A772E813EA840D9A48138A7A72F1403"><enum>(A)</enum><text display-inline="yes-display-inline">Section 24(b)(3)(B), as amended by section
104, is amended by striking <quote>and 25D</quote> and inserting <quote>25D,
and 30</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H74A02B48796E4884B56B808679A2941E" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">Section 25(e)(1)(C)(ii) is amended by
inserting <quote>30,</quote> after <quote>25D,</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0C422879161745D9B2CC88A528DE9C2" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">Section 25B(g)(2), as amended by section
104, is amended by striking <quote>and 25D</quote> and inserting <quote>, 25D,
and 30</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2D5AC97A962D4A55AE8D8F5D007D7362" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">Section 26(a)(1), as amended by section
104, is amended by striking <quote>and 25D</quote> and inserting <quote>25D,
and 30</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H77C89BF7E34D456991ED5FAE97715B9" indent="up1"><enum>(E)</enum><text display-inline="yes-display-inline">Section 1400C(d)(2) is amended by striking
<quote>and 25D</quote> and inserting <quote>25D, and 30</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1B1E19DE553045F897A71EE990516081"><enum>(2)</enum><text display-inline="yes-display-inline">Section 30B(h)(1) is amended by striking
<quote>section 30(c)(2)</quote> and inserting <quote>section
30(d)(3)</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9B53F0D397C44114B737A938D0DCB9F1"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="HC2A474B5FCA64225B03E4868783B57EA"><enum>(A)</enum><text display-inline="yes-display-inline">Section 53(d)(1)(B) is amended by striking
clause (iii) and redesignating clause (iv) as clause (iii).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1B9AC4987EE8496CA865620058F5E75" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">Subclause (II) of section 53(d)(1)(B)(iii),
as so redesignated, is amended by striking <quote>increased in the manner
provided in clause (iii)</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEB79BA989B654138BEA43D263E33B26B"><enum>(4)</enum><text display-inline="yes-display-inline">Section 55(c)(3) is amended by striking
<quote>30(b)(3),</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H17AFC4029B0747A3A582F82048419466"><enum>(5)</enum><text display-inline="yes-display-inline">Section 1016(a)(25) is amended by striking
<quote>section 30(d)(1)</quote> and inserting <quote>section
30(f)(1)</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H81F5A7428501449986A76D20F5A17052"><enum>(6)</enum><text display-inline="yes-display-inline">Section 6501(m) is amended by striking
<quote>section 30(d)(4)</quote> and inserting <quote>section
30(f)(4)</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA699124ACA344E1AC231D1153EEEB15"><enum>(7)</enum><text display-inline="yes-display-inline">The item in the table of sections for
subpart B of part IV of subchapter A of chapter 1 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H2F2D9312299C4250A081BEED59DB9456" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 30. New qualified plug-in
electric drive motor
vehicles.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HADC11695057540C086FFF881519EA264"><enum>(e)</enum><header display-inline="yes-display-inline">Treatment of alternative motor vehicle
credit as a personal credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="HDA1C7E6C74214C6F845BFEC7A635FFA0"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 30B(g) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1C9BE17E25964D1B9DEC7D8E4CD2B00" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC575CFF75EA94E34A869E4C8FEAB99AE"><enum>(2)</enum><header display-inline="yes-display-inline">Personal credit</header><text display-inline="yes-display-inline">The credit allowed under subsection (a) for
any taxable year (after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE5AC570A7D1E48B5B0057E1442FDD68"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HD93953B3F443471CAA2886033B399B80"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (A) of section 30C(d)(2) is
amended by striking <quote>sections 27, 30, and 30B</quote> and inserting
<quote>section 27</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD5A905687DF940348EC1C7EB90BE006E"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (3) of section 55(c) is amended
by striking <quote>30B(g)(2),</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H90B0821981064332ACE854292FD8007E"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H46B52E2EB3CA442590D4D5C693F6D99"><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 taxable years
beginning after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF84A97DDD7E4415A8029004946DDD900"><enum>(2)</enum><header display-inline="yes-display-inline">Treatment of alternative motor vehicle
credit as personal credit</header><text display-inline="yes-display-inline">The
amendments made by subsection (e) shall apply to taxable years beginning after
December 31, 2007.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0735F428578143599485B48FBA1213F9"><enum>(g)</enum><header display-inline="yes-display-inline">Application of EGTRRA sunset</header><text display-inline="yes-display-inline">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="H2044C648AA3346738181E30ECA6BC56" section-type="subsequent-section"><enum>125.</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="H9831F87DF1DD4EBEA5382F5F343CAF19"><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 display-inline="no-display-inline" id="H49CB347886454845A0DDBD00FD3E62EF" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H27F4AEB9E7BF4A4BB4615EA22313DA2B"><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="HF85CC3B5E670404D8D614B00F7BD905E"><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 or
truck, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6A41E3319629464FB6C872F06433C00"><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="H10F018C75D3D4F559D8C91D13236E5F7"><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="H16F39189E5E942CCB77BCCE53B40DCD2"><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="HE2C2E00248DB40AFA91D24D2EFCEF50" section-type="subsequent-section"><enum>126.</enum><header display-inline="yes-display-inline">Transportation fringe benefit to bicycle
commuters</header>
<subsection commented="no" display-inline="no-display-inline" id="HD213AF72A8CD465A953CFAD7E096FD71"><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 display-inline="no-display-inline" id="H7CBEFEE861D840DB82A84942B3CE1E7F" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HD760066B658146E99739183200B94513"><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="H67525C0B78E8426C97D3C83CACD74399"><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 display-inline="no-display-inline" id="H9DDDDD8F064E443FB12E2DA589AAEE5C" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H999E2748A2554C84A6D5F185FCA52CAC"><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="H85FAE2729C8B4FDBAED8C42C5BCBFBF"><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 display-inline="no-display-inline" id="HD1CEC58921F046AA9EC23DBBB34CC01F" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HC4200040AF2142B68F72EBEB55D573C5"><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="H91930C2A66C94AD6A803FA5683E86606"><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="HAED6A480DDC644F5A0ED388D65EA69DF"><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="HF4B3B1C8B02545BEA4AECCDC4269A2C2"><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="H24749742D36A4093A506BB92CC95022"><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="H12222DB3B7A7424F8CAB077762FA1954"><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="HE95361FAFD2347129C97FD48E9833EA"><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="H5055AADA788A4882811DB8FC7DDF7D3"><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><section commented="no" display-inline="no-display-inline" id="H7CF9A4E3AF514D9AA1D08581ECA31C68" section-type="subsequent-section"><enum>127.</enum><header display-inline="yes-display-inline">Alternative fuel vehicle refueling property
credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H7E5C0628F3EF430BAE82A341A0609D98"><enum>(a)</enum><header display-inline="yes-display-inline">Increase in credit amount</header><text display-inline="yes-display-inline">Section 30C is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3E84C67806B54BC990F3DEBE00E0F207"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>30 percent</quote> in
subsection (a) and inserting <quote>50 percent</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H91E8351B2CD54C918FEBE0AA9FDC1301"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>$30,000</quote> in
subsection (b)(1) and inserting <quote>$50,000</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAE2FD08372404F29B2E61B6FCCC722B9"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>$1,000</quote> in
subsection (b)(2) and inserting <quote>$2,000</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HF08F49662E2349FF9FE2C717D4DF1BEB"><enum>(b)</enum><header display-inline="yes-display-inline">Extension of credit</header><text display-inline="yes-display-inline">Subsection (g) of section 30C is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H2733952C9F434534858976B9FA64392E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H21FE71CB416D4C2A862DD23F359889D"><enum>(g)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">This section shall not apply to any
property placed in service after—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA248041A67E941AEBA94A3695E7C9692"><enum>(1)</enum><text display-inline="yes-display-inline">December 31 2017, in the case of property
relating to natural gas, compressed natural gas, or liquified natural gas, and
which is not of a character subject to an allowance for depreciation,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5AB5FD13D6D74C559BEBF894D278892"><enum>(2)</enum><text display-inline="yes-display-inline">December 31, 2014, in the case of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H9DC7701B49D7416F8389EB45E5451035"><enum>(A)</enum><text display-inline="yes-display-inline">property relating to hydrogen, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBBABDBD30D2D4BB7B6B3E82BAC49B448"><enum>(B)</enum><text display-inline="yes-display-inline">property relating to natural gas,
compressed natural gas, or liquified natural gas, and which is of a character
subject to an allowance for depreciation, and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2F9A19BD65D54E7FA9004D377028051F"><enum>(3)</enum><text display-inline="yes-display-inline">December 31, 2010, in any other
case.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H686E553FDD3F4602B685CD71C936DABA"><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="H1C82CDFE4002470BAB5331FDD3880039" section-type="subsequent-section"><enum>128.</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="H2331069C56A04DA28017AFDB3BC1BDC"><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) is
amended by inserting <quote>, 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)</quote> after <quote>timber)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD6592383D500465A81968CCD5516CB4"><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 taxable years beginning after the date of the
enactment of this Act.</text>
</subsection></section></subtitle><subtitle commented="no" id="HB80B13A0AFE8470EACDDF773E0566BDE" level-type="subsequent"><enum>C</enum><header display-inline="yes-display-inline">Energy conservation and efficiency
provisions</header>
<section commented="no" display-inline="no-display-inline" id="H628F5B5ECA9B4EAEB91D6614FB87FF27" section-type="subsequent-section"><enum>131.</enum><header display-inline="yes-display-inline">Credit for nonbusiness energy
property</header>
<subsection commented="no" display-inline="no-display-inline" id="H754DC3A3921C42DF82BB79E469F6D21B"><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</text>
<quoted-block display-inline="yes-display-inline" id="HFEDBECF54A6B4D849BFE45B5D45FED7" style="OLC">
<text>placed in
service—</text><paragraph commented="no" display-inline="no-display-inline" id="H9F815B79DFB8420DBA01C03664B1C5E9"><enum>(1)</enum><text display-inline="yes-display-inline">after December 31, 2007, and before January
1, 2009, or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA1B4A69ACD145A3B5F54C7549E6C7F0"><enum>(2)</enum><text display-inline="yes-display-inline">after December 31,
2009.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H934E3C3F30074B0CB7F5AFD9B5FFE700"><enum>(b)</enum><header display-inline="yes-display-inline">Qualified biomass fuel property</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3E4B1A58BC0949C593FAD631303F8228"><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="HF9837C16B280455D0014855C32021FE6"><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="H54C2B12076B24984B970C34E5FA872D2"><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="H7E659AEB44484369BFD62CD98F190022"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subparagraph:</text>
<quoted-block act-name="" display-inline="no-display-inline" id="H396FE1903D39420AA122BAC4AFA1E523" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H8282B37B8F9240A9866B6400E3ECAE69"><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="HC9D4D53AA878432AA7FFD543DCB90957"><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="" display-inline="no-display-inline" id="HEDD42A6277C8467F964F21E53316C893" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD3D71075B7354EA2BFB61B4826B8B58"><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="HFDD2C02521044207B6F2C80519B3E99E"><enum>(c)</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="H4341E296E09B4778B3DA7ED4A19C96DC"><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 subsection (b), 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="H696165F0C4DE4C3390AAE95BAE12C05C"><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 display-inline="no-display-inline" id="H580F25EE021E4C9A983D00845CCFC539" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H726FAA2C047244A380D6D7479235EAB5"><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="H73ED65864EF64FEEB2A82C530711FE3C"><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="HE22178D076BD495CB0F678B2DB61375"><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="HD5776415E235468CA373B6D3F57B915B"><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 expenditures made after December 31, 2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HA4757AFA82204A299155DB139EB3EC38" section-type="subsequent-section"><enum>132.</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="HB6EC5720C955486DA6932D1D7EF82D26" section-type="subsequent-section"><enum>133.</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="H13E6417F0E98481B8C6C5281472DD147"><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 display-inline="no-display-inline" id="H708CB2D34CAE427CACE6033688B345DB" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H890BA33B631D4742007464EDE2634EBB"><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="H148BB7A6E605498EA02BF9D5672104E1"><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="H71A676A51AC34AAFACDCAE870D6EB4F"><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="HB168EF56EA3A4F238564798F73743010"><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="HE88674BE32214050A4004CEC90B84049"><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="HDF6169FE67654DE2B96F658D1C2E1C9E"><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="H0FDCA43A9A3843EF84054EC4D399FC3E"><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="H2F859590D7FD490FB653D3D4057500B"><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="HDF0C52EC736842018862277921003E2D"><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="H26DE2C8DC40D4C318F8CB62849CD18A3"><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="HD9099039FEDB4D8698BE1B5B418057AF"><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="H74A3A3EC4A3647A2BFAEBED72C44D272"><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="HB47073E19A0A4702B45761EAC57E4FD5"><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="H53236CC72DD24E00A22BA6E85972D479"><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="H2CDC487537154720B9F1F180804770A5"><enum>(b)</enum><header display-inline="yes-display-inline">Eligible production</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9681106BC98B40EC823EECC7423B6305"><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="H30F843A1D9394359858F4732003E6DBC"><enum>(A)</enum><text display-inline="yes-display-inline">by striking paragraph (2),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB87E44301CFE47C3B54174623DE1157C"><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="H05EAFC7A01104EA0831E29009B429FD2"><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="HA46C2867E01341EFAC2656D9F1BA53B8"><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="HF84F2961C7C54663AE999626E51B80D1"><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="H220C2F2CB0B045C6BBFEBB8F21012879"><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 (defining types of energy efficient appliances) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="H7E5324186952454B93A0BB87CA05805" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H8A722E1E3B0A4EE2BD1133AF335D29CD"><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="HCB8BFC3375AA4960A3D072FFF4C1AF4C"><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="H339DB19FCF0F4D0C8EE73CDC22682266"><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="H5DA8A8DE8EC24A5AB9BAB3CECC2F1411"><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="HC364A0FAE9C249459F477E963C278CFB"><enum>(d)</enum><header display-inline="yes-display-inline">Aggregate credit amount allowed</header>
<paragraph commented="no" display-inline="no-display-inline" id="H90D58733FAF64B4DA8D190E73BD4CA21"><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 display-inline="no-display-inline" id="H010A3F4E2F124A68B649CFE50054AE45" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HAAA89C6489994852B3B62798C000F1D3"><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="H1A486C8F4CCD4D309E00655C04488510"><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 display-inline="no-display-inline" id="H3D6EB451F28A4D7A920044CFBD9CC9BF" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H46451F4ACBEC425497086F4DAE41E188"><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="H8AC2F28FF1E046CF8E51360071B8C3BD"><enum>(e)</enum><header display-inline="yes-display-inline">Qualified energy efficient
appliances</header>
<paragraph commented="no" display-inline="no-display-inline" id="H59EC5DF02E064FF7A2001B36F800D631"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9A86A7E6E496429CBB1514B100CC5D05" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H1B0AAB1E4619466EB14113136BC97900"><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="H2937450CAAB9416B8697ED60350041D2"><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="H1740C2BA9EC34BD28B25F5B6F68AE41"><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="H3D564F66AB774B4AB2145136676683DB"><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="HACA3B3650E0F4438AA7B6DCAD2A3FD63"><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="H3FB5D6F27A7847CEB3DBDA97E00EF60"><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 display-inline="no-display-inline" id="H3932E2B75E454BE2BDF0FF7100DB5427" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD08C06BC4E3349C6A86C75DBA7813EFD"><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="H1B2E7195DDFD4FDE91B9961D25B62778"><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 display-inline="no-display-inline" id="H4F363B8B09A14B748D57CAE96189AD16" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HCEF5F5B64CA649E3B565F662E52724FF"><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="HA48C365BB5EC4902A251A36CD33028BF"><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 display-inline="no-display-inline" id="HFEB34E438CE64E3A99F916EC4F632B14" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H64DC4858C02647779569A504336349FB"><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="H5C5D07485BDD4CF7A84756926F161619"><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="HD185A97817704B2700FDA8DBB91BA9F"><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="H92BCD407DE254815AD86C036788276CE" section-type="subsequent-section"><enum>134.</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="H02398AB40FAF4C6CA1C1B8448CC2197D"><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 display-inline="no-display-inline" id="H25CF3D3C865544C8BECC55D69806D5B2" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H21589070F92849C2A014CA49A25CBCB7"><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="H305C876946FA483100D01274E18FC774"><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="HCB028DEEC2E740558DFEFECC00FE2758"><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 display-inline="no-display-inline" id="HA6EB45FF0C0546DFBCAA1600CFF42E7D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H40142335A6404AB3AAB3F9CFE9F47238"><enum>(18)</enum><header display-inline="yes-display-inline">Qualified smart electric meters</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFB8B6AB7F38A4152A8C0E04E16002BA0"><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 is placed in service by a
taxpayer who is a supplier of electric energy or a provider of electric energy
services.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H69B773766CA249E9815D70E6D4405D33"><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="HA2E3738431B44ECBAF95B4BB68A157D0"><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="H20B19B411D634BA6AB3F343374FF8200"><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="H8C2E5E7F8E9145AF81B09F80F316546E"><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="H7FB464CD54A447FD9537DCAC4DA08513"><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="H08F97ABE68FF4DD29E23C998D4CAD0D7"><enum>(19)</enum><header display-inline="yes-display-inline">Qualified smart electric grid
systems</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDB2DDEFC69AB4195AFB7C816C82D9D70"><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 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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H286281F40D004A30A0418FCB91008D34"><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="HA730594DFECF42F89FF9BC30177F21EF"><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="H1BEE7A6D646245F7BB27087F5262F603"><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="H08D0F696382C4BCCA6FA1AAD3D8D59F"><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="HB72C8C16E873438098F578460015EDE6"><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 display-inline="no-display-inline" id="HDC71380D4C5F40E596ACE14200DF9DE" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H0A68EC589A454F7791D9379777F3B3CB"><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="HF6D3A8A3D6E348F8B7C0677EB4262CC"><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="H911F19EB93BA432B8F3874245376AFBD" section-type="subsequent-section"><enum>135.</enum><header display-inline="yes-display-inline">Qualified green building and sustainable
design projects</header>
<subsection commented="no" display-inline="no-display-inline" id="H395FFECDE4A844A3A1FE31E061F6F82C"><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="HC423E1A45F6B4D9DA09FCCCA39009858"><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="H197A05AD91044461B172EC55BCD725B0"><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></subtitle><enum>II</enum><header display-inline="yes-display-inline">Extension of temporary provisions</header>
<subtitle commented="no" id="H8309B80BF26B42E0A6CE77AB00002711" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Extensions Primarily Affecting
Individuals</header>
<section commented="no" display-inline="no-display-inline" id="H382D33CE89E14AD0A7A3DA95315318C" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">Deduction for State and local sales
taxes</header>
<subsection commented="no" display-inline="no-display-inline" id="H929C938E7C1941C8B7868F560120483B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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="H4ED817E933C2460185CF9C5E112111E4"><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 taxable years beginning after December 31,
2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE3284FD615F2479B8CA0FBB29F358B2F" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">Deduction of qualified tuition and related
expenses</header>
<subsection commented="no" display-inline="no-display-inline" id="H713F5EE1DCBE478A8D6C00529C78D71E"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (e) of section 222 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="H62AFFABE7673445F98B6EAA71CC4BFF7"><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 taxable years beginning after December 31,
2007.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HFF53D2326251471B9D3EA218FC19B1D4"><enum>(c)</enum><header display-inline="yes-display-inline">Temporary coordination with Hope and
Lifetime learning credit</header><text display-inline="yes-display-inline">In
the case of any taxpayer for any taxable year beginning in 2008 or 2009, no
deduction shall be allowed under section 222 of the Internal Revenue Code of
1986 if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB470F828EB3F46D18F5000B79451E418"><enum>(1)</enum><text display-inline="yes-display-inline">the taxpayer’s net Federal income tax
reduction which would be attributable to such deduction for such taxable year,
is less than</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3643C248CEE047679F7FE2AC158E575"><enum>(2)</enum><text display-inline="yes-display-inline">the credit which would be allowed to the
taxpayer for such taxable year under section 25A of such Code (determined
without regard to sections 25A(e) and 26 of such Code).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HBB8B980709774E2DBAB41C02A8EB15CE" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">Treatment of certain dividends of regulated
investment companies</header>
<subsection commented="no" display-inline="no-display-inline" id="H1E3ABD732A864EA79E1F90FDDC84F1A5"><enum>(a)</enum><header display-inline="yes-display-inline">Interest-related dividends</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0352D3D77304077B58C2175DB5FAFBC"><enum>(b)</enum><header display-inline="yes-display-inline">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="H99759F7D293A446D8845DE00713747E3"><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 dividends with respect to taxable years of
regulated investment companies beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3A402D73217B42919FB949E9CB2B1288" section-type="subsequent-section"><enum>204.</enum><header display-inline="yes-display-inline">Tax-free distributions from individual
retirement plans for charitable purposes</header>
<subsection commented="no" display-inline="no-display-inline" id="H829C0FC87852475AA538C34929062C10"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (F) of section 408(d)(8) 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="H2B72836F98ED452792B5E69D009B14BF"><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 distributions made in taxable years beginning after
December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H1699E444E88F43E787218BBE16F8D56E" section-type="subsequent-section"><enum>205.</enum><header display-inline="yes-display-inline">Deduction for certain expenses of
elementary and secondary school teachers</header>
<subsection commented="no" display-inline="no-display-inline" id="H7B9FA97B0B10478F865CF2A2B97F5292"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (D) of section 62(a)(2) 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="H2893F1F7BE1D45E3832721CBCC934853"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">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="H8E8955A47E3F4CCA9B9E9D9430AAE46C" section-type="subsequent-section"><enum>206.</enum><header display-inline="yes-display-inline">Stock in RIC for purposes of determining
estates of nonresidents not citizens</header>
<subsection commented="no" display-inline="no-display-inline" id="H22A5688191CA4CB9001640F6B1729C"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (3) of section 2105(d) 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="H8B64BEBEC8BF4C6D9271F7F7ECB33729"><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 decedents dying after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE2D01DDB19D54C53B2F67653DDD10061" section-type="subsequent-section"><enum>207.</enum><header display-inline="yes-display-inline">Qualified investment entities</header>
<subsection commented="no" display-inline="no-display-inline" id="H6FE29045732A4423A5196EE2348B0276"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (ii) of section 897(h)(4)(A) 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="H6BED703EF63845E1A1DCDB00A04B6323"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
subsection (a) shall take effect on January 1, 2008, except that such amendment
shall not apply to the application of withholding requirements with respect to
any payment made on or before the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H1AE47828B5FC4522A08E3D6316AC6F00" section-type="subsequent-section"><enum>208.</enum><header display-inline="yes-display-inline">Real property tax standard
deduction</header>
<subsection commented="no" display-inline="no-display-inline" id="H7206C8973A8246149865479E983F4035"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (C) of section 63(c)(1) is
amended by inserting <quote>or 2009</quote> after <quote>2008</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HEA84E88A9C5D4BBC8CC597DD2F93A9D"><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 taxable years beginning after December 31,
2008.</text>
</subsection></section></subtitle><subtitle commented="no" id="H9ADBD23B80B3400B85F4C64F57E164CD" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Extensions Primarily Affecting
Businesses</header>
<section commented="no" display-inline="no-display-inline" id="HBEFDA558494949BF91C478E23B30A116" section-type="subsequent-section"><enum>221.</enum><header display-inline="yes-display-inline">Research credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H65BDED69CF5C4256BF775B6F620079CE"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (B) of section 41(h)(1) 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="HB41AD223FA1A4CE081394DD13F04CB00"><enum>(b)</enum><header display-inline="yes-display-inline">Computation of credit for taxable year in
which credit terminates</header><text display-inline="yes-display-inline">Paragraph (2) of section 41(h) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9A5C7AA026DC4FC69B7E15AD6289F8F4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HAF7D0A179E4C4A1500A022E7BA4E6F2"><enum>(2)</enum><header display-inline="yes-display-inline">Computation of credit for taxable year in
which credit terminates</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HCDE8CB7D571549619C84C9358E5C2B21"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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, the applicable base amount with
respect to such taxable year shall be the amount which bears the same ratio to
such applicable 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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2392DB9AAF174DFFA08DA7D139753248"><enum>(B)</enum><header display-inline="yes-display-inline">Applicable base amount</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term
<quote>applicable base amount</quote> means, with respect to any taxable
year—</text>
<clause commented="no" display-inline="no-display-inline" id="H7E436C2079EA4121BABB7900C16578D0"><enum>(i)</enum><text display-inline="yes-display-inline">except as otherwise provided in this
subparagraph, the base amount for the taxable year,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HA4D0A8BB3ABF40DA925BACCCCE3F32B"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a taxable year with respect
to which an election under subsection (c)(4) (relating to election of
alternative incremental credit) is in effect, the average described in
subsection (c)(1)(B) for the taxable year, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAC0A9CF745704A0BB820109BAA77743E"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a taxable year with respect
to which an election under subsection (c)(5) (relating to election of
alternative simplified credit) is in effect, the average qualified research
expenses for the 3 taxable years preceding the taxable
year.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H03CD6E408C0646ADA8F981794D14600"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subparagraph (D) of section 45C(b)(1) 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="H5636780C3E9F417DA0EB67EC57C814B2"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H96E6097F8087420982C416FBD13BD1D5"><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 amounts paid or incurred after
December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE892471CD7024747B8003DF45D2F5EEC"><enum>(2)</enum><header display-inline="yes-display-inline">Computation of credit for taxable year in
which credit begins</header><text display-inline="yes-display-inline">The
amendment made by subsection (b) shall apply to taxable years beginning after
December 31, 2007.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H173D41932E4E4309BD4D16E62F22190" section-type="subsequent-section"><enum>222.</enum><header display-inline="yes-display-inline">Indian employment credit</header>
<subsection commented="no" display-inline="no-display-inline" id="H83931C2EB8FD4AB5A3BE10DECC1E6B26"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (f) of section 45A 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="H081D1AA05A8B454485E65E0500E1B181"><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 taxable years beginning after December 31,
2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H5FA8982D85374180BDCBC17D9C42C0BB" section-type="subsequent-section"><enum>223.</enum><header display-inline="yes-display-inline">New markets tax credit</header><text display-inline="no-display-inline">Subparagraph (D) of section 45D(f)(1) is
amended by striking <quote>and 2008</quote> and inserting <quote>2008, and
2009</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H6FBC82D85DDD48F994B37EBC54831BCB" section-type="subsequent-section"><enum>224.</enum><header display-inline="yes-display-inline">Railroad track maintenance</header>
<subsection commented="no" display-inline="no-display-inline" id="H36F6F34B63ED4C7690DF324DAB9B73E6"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (f) of section 45G 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="H306BAA3D43AD45E6B4AE33EE302466CA"><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 expenditures paid or incurred during taxable years
beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H5CAFB613FA354667831669E8A9BE43E" section-type="subsequent-section"><enum>225.</enum><header display-inline="yes-display-inline">Fifteen-year straight-line cost recovery
for qualified leasehold improvements and qualified restaurant property</header>
<subsection commented="no" display-inline="no-display-inline" id="HEC39575A63074CFAA7EDFC4DE753EE9"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clauses (iv) and (v) of section
168(e)(3)(E) are each 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="HE23258E4AAEC4C61BBB680DEDB87CB86"><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 property placed in service after December 31,
2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H2967883BD67D4C3AB8EC2D9EE95CCFAB" section-type="subsequent-section"><enum>226.</enum><header display-inline="yes-display-inline">Seven-year cost recovery period for
motorsports racing track facility</header>
<subsection commented="no" display-inline="no-display-inline" id="HFECB7EB1739D4FF184FFA621CD8E674"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (D) of section 168(i)(15) 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="HA2F853EB3ABE4FF4B17DF4C8BD3FC093"><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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB0C4F4E6A3734261948F856D26A65687" section-type="subsequent-section"><enum>227.</enum><header display-inline="yes-display-inline">Accelerated depreciation for business
property on Indian reservation</header>
<subsection commented="no" display-inline="no-display-inline" id="H914E1510918D418DA715C1E838C9B24"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (8) of section 168(j) 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="H162C4CB4AB6849709F2DFDC452E7B973"><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.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB7EF168C869847E886B1992D16CD702C" section-type="subsequent-section"><enum>228.</enum><header display-inline="yes-display-inline">Expensing of environmental remediation
costs</header>
<subsection commented="no" display-inline="no-display-inline" id="H73E8B4F5E0FE403085A700927100F413"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (h) of section 198 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="HBCC7C096DD4346B4B536EAE4E369541"><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 expenditures paid or incurred after December 31,
2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H80C611CBCB8E4C8BA01391DF747C307" section-type="subsequent-section"><enum>229.</enum><header display-inline="yes-display-inline">Deduction allowable with respect to income
attributable to domestic production activities in Puerto Rico</header>
<subsection commented="no" display-inline="no-display-inline" id="HE1CCEF0580374274B599F6BC1C3B0131"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (C) of section 199(d)(8) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB415A03F1469454493AB65E4139F44E0"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>first 2 taxable
years</quote> and inserting <quote>first 4 taxable years</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCF0D0EED90EB42929CAC90D168CC22BA"><enum>(2)</enum><text display-inline="yes-display-inline">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="H6572A456C2B54636BFF05410284E7253"><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 taxable years beginning after December 31,
2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3A545463B6C84BA98B383FC9A3F933BE" section-type="subsequent-section"><enum>230.</enum><header display-inline="yes-display-inline">Modification of tax treatment of certain
payments to controlling exempt organizations</header>
<subsection commented="no" display-inline="no-display-inline" id="H34AB6D6501204534A912D5751F01F2F6"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (iv) of section 512(b)(13)(E) 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="HB3C81CFA68244285AE1280C290F90032"><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 payments received or accrued after December 31,
2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD5E7BB0F0CB44CEF9795A0A5B7F77EE9" section-type="subsequent-section"><enum>231.</enum><header display-inline="yes-display-inline">Qualified zone academy bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="H5525F20C9A104335B3131B9BE9085162"><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 display-inline="no-display-inline" id="HF10F7602BA8E48ABA7164CC937683E5C" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H899725B3CC374D26BC028165BF7FBD" section-type="subsequent-section"><enum>54C.</enum><header display-inline="yes-display-inline">Qualified zone academy bonds</header>
<subsection commented="no" display-inline="no-display-inline" id="HA6D2064B9D55456881A9791D95AB3EEC"><enum>(a)</enum><header display-inline="yes-display-inline">Qualified zone academy bonds</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H1254E71FFD824514B17422FA46229C"><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" display-inline="no-display-inline" id="HDE7B4E7EF10141F1B8C150A760629871"><enum>(2)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H2A9A44A55C3D46B7AC1C57B04E4F71E0"><enum>(3)</enum><text display-inline="yes-display-inline">the issuer—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB07FEF4721084105B3C9766B00331E1F"><enum>(A)</enum><text display-inline="yes-display-inline">designates such bond for purposes of this
section,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H160305C412C2463B9D7CC36621133CE6"><enum>(B)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HF7A022319C61484F91D767D5E8ECCE3E"><enum>(C)</enum><text display-inline="yes-display-inline">certifies that it has the written approval
of the eligible local education agency for such bond issuance.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2F6985CCD775411BB121B383A9007E15"><enum>(b)</enum><header display-inline="yes-display-inline"> 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 commented="no" display-inline="no-display-inline" id="H501918E807FA479700FAD16E1D17B4C1"><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="H50C51EDC3D0D43A593D100AC7953C63"><enum>(1)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H64B0DC29375B4278A1077F53736852D0"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2A185ACEDCF74B5794C017D80811FF92"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAF1881B7064347AEADEA9EF22B5FF9C9"><enum>(4)</enum><header display-inline="yes-display-inline">Carryover of unused limitation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDEB2F6CA3F144477AC80DA7BBDEB955E"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If for any calendar year—</text>
<clause commented="no" display-inline="no-display-inline" id="H0A3D0125164A49518F1D9421585E1401"><enum>(i)</enum><text display-inline="yes-display-inline">the limitation amount for any State,
exceeds</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9882C12D08A14B32B50302D6C8922DC9"><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 commented="no" 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 commented="no" display-inline="no-display-inline" id="H4C6D7E7189304F5C99B429348FB4E26B"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H5E5AC30A522340BF8B63B1945FDF9F4E"><enum>(C)</enum><header display-inline="yes-display-inline">Coordination with section
1397E</header><text display-inline="yes-display-inline">Any carryover
determined under section 1397E(e)(4) (relating to carryover of unused
limitation) with respect to any State to calendar year 2008 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 commented="no" display-inline="no-display-inline" id="HDE11CED6822846C9A3B9914C3FDBF68E"><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="H018873717C9D4C2293ECA3E88159FEEA"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified zone academy</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H630EE96B3168485A9B04EBBC52B1B33"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H88F1238453BE4CCF894C9791F59FCE0"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H81B97970AB4948C4BD00CA00D373898F"><enum>(C)</enum><text display-inline="yes-display-inline">the comprehensive education plan of such
public school or program is approved by the eligible local education agency,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H64D3E7D704F444D29CDB86EAA7E858A3"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="H5B525F88EC6E4BACACF827D55162756D"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H76029E9C0CD14E939F91CC6DD496A161" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H11F1E1AB9DBE4C4B93C48B6B06AB8F39"><enum>(2)</enum><header display-inline="yes-display-inline">Eligible local education
agency</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H16136C1EEC1947F9B900C3A687E4EC92"><enum>(3)</enum><header display-inline="yes-display-inline">Qualified purpose</header><text display-inline="yes-display-inline">The term <quote>qualified purpose</quote>
means, with respect to any qualified zone academy—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8F226BE25F9A4DF3AE2C5D928BB03631"><enum>(A)</enum><text display-inline="yes-display-inline">rehabilitating or repairing the public
school facility in which the academy is established,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H24659356CCE1434DBD64A51C3C388DE3"><enum>(B)</enum><text display-inline="yes-display-inline">providing equipment for use at such
academy,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF9F444304B24191B48EDEE3D743009D"><enum>(C)</enum><text display-inline="yes-display-inline">developing course materials for education
to be provided at such academy, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8CC9602012C64DA2B6B2FECF16495C8F"><enum>(D)</enum><text display-inline="yes-display-inline">training teachers and other school
personnel in such academy.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H59823B9E751B4120B3F4849DE472DD9F"><enum>(4)</enum><header display-inline="yes-display-inline">Qualified contributions</header><text display-inline="yes-display-inline">The term <quote>qualified
contribution</quote> means any contribution (of a type and quality acceptable
to the eligible local education agency) of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2A6783AAEEB245E4A579007790B8537F"><enum>(A)</enum><text display-inline="yes-display-inline">equipment for use in the qualified zone
academy (including state-of-the-art technology and vocational
equipment),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBE0C108F432541698D1FDAC3B698E8A4"><enum>(B)</enum><text display-inline="yes-display-inline">technical assistance in developing
curriculum or in training teachers in order to promote appropriate market
driven technology in the classroom,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCC074C5836FA4B7698E7D09B8D6F09F8"><enum>(C)</enum><text display-inline="yes-display-inline">services of employees as volunteer
mentors,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD1E39F85715347FF9E1D009BC94F1843"><enum>(D)</enum><text display-inline="yes-display-inline">internships, field trips, or other
educational opportunities outside the academy for students, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H267CCAB528254844BA5E82CC9DF41296"><enum>(E)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4AA83F8D22CE4BD89DD4B5DEAE165A7"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD7BAC67B7EED4BEC0052C497E15CC2B0"><enum>(1)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 54A(d) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H928D7E87DCF8491295A36FCEED843259" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H912052C8B7414282B7D3FEE4A5BD9E3C"><enum>(1)</enum><header display-inline="yes-display-inline">Qualified tax credit bond</header><text display-inline="yes-display-inline">The term <quote>qualified tax credit
bond</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H1067DCD8B8DA4175A4429287D501E78E"><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="H5334DFA2AC7748DAA0CA8C14F0B47D69"><enum>(B)</enum><text display-inline="yes-display-inline">a qualified zone academy bond,</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">which is part of an issue that meets
the 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="H8FE4174C4A334B87AB1905DCEAF3FCF8"><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 display-inline="no-display-inline" id="H313662426CC2420D85AFDF8D264807F1" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HA2C8D1E974264C498489700256CC24F6"><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
<quote>qualified purpose</quote> means—</text>
<clause commented="no" display-inline="no-display-inline" id="H0E4927DCEBDB48A4923E9E9878E7F68D"><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="H1CF55192EE5E4E5290735CD150F67889"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a qualified zone academy
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="HE3A2E6599FE14F88AD29B24EB7C44B13"><enum>(3)</enum><text display-inline="yes-display-inline">Section 1397E is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HB817BF522EDB4ACBB493522921A1E8A3" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HEC675A74084147429D20C887145E88EC"><enum>(m)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">This section shall not apply to any
obligation issued after the date of the enactment of this
subsection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H830E6038FAE244968639C16254E7426F"><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 display-inline="no-display-inline" id="H89772BBD66A54E8000F0423505DFB213" style="OLC">
<toc container-level="quoted-block-container" idref="HF10F7602BA8E48ABA7164CC937683E5C" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry bold="off" idref="H899725B3CC374D26BC028165BF7FBD" level="section">Sec. 54C. 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="H2A4ED4C332CD497E9FFDFA2F1961F6CF"><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="H7EE6D4F019964FE2AC11CCD200E5EFB1" section-type="subsequent-section"><enum>232.</enum><header display-inline="yes-display-inline">Tax incentives for investment in the
District of Columbia</header>
<subsection commented="no" display-inline="no-display-inline" id="HDD71765A5E4F4EC497014F90061F28E8"><enum>(a)</enum><header display-inline="yes-display-inline">Designation of Zone</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA6491A234F96410682C7384019FA6057"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H6ABFF43914864A0ABA843818F8556E3B"><enum>(2)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to periods beginning after December 31,
2007.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H545D05472C1E4034910071F47327B631"><enum>(b)</enum><header display-inline="yes-display-inline">Tax-Exempt Economic Development
Bonds</header>
<paragraph commented="no" display-inline="no-display-inline" id="H1F3AC06B64FB49FF905C0218031E27DD"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (b) of section 1400A is amended
by striking <quote>2007</quote> and inserting <quote>2009</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7427019473E048D6ABBBF6016E257B19"><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 bonds issued after December 31, 2007.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9AA3DE20E7044800986BC40109E04CDA"><enum>(c)</enum><header display-inline="yes-display-inline">Zero Percent Capital Gains Rate</header>
<paragraph commented="no" display-inline="no-display-inline" id="HB4492C3E358E42E09223CB57869EEFA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H4632BF6C0DD14D2087F05D3000B43D57"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H63116A4C4E2B488CB6A1FEC73C6C1B04"><enum>(A)</enum><text display-inline="yes-display-inline">Section 1400B(e)(2) is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="H9C48F200E96F46E88CA012869D66FD56"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>2012</quote> and
inserting <quote>2014</quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1B42D12C17FB450A835220190049F800"><enum>(ii)</enum><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HA8BF1E4ACF804E1C8DBBB3D9CBB264FA"><enum>(B)</enum><text display-inline="yes-display-inline">Section 1400B(g)(2) is amended by striking
<quote>2012</quote> and inserting <quote>2014</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8F885EA7C9844FE1A3AFCB2129D0E290"><enum>(C)</enum><text display-inline="yes-display-inline">Section 1400F(d) is amended by striking
<quote>2012</quote> and inserting <quote>2014</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4F80935DA78C4C02B1DB503600042F78"><enum>(3)</enum><header display-inline="yes-display-inline">Effective dates</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HB8BF067DA9104EFB84261992CC5BCFE5"><enum>(A)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline">The amendments made by paragraph (1) shall
apply to acquisitions after December 31, 2007.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H369CFDDF3B654B2A975F6BA3975EFD83"><enum>(B)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="HA16B82CD8BC74920804712F64231CF8"><enum>(d)</enum><header display-inline="yes-display-inline">First-Time Homebuyer Credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="H20F165E892E1497292E626719C2C19E3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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="HA26AA4B90FB447F4B1FC9827E13F7F5"><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 property purchased after December 31,
2007.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H5F0FA7F516A84B5BAECC80AD558C18EF" section-type="subsequent-section"><enum>233.</enum><header display-inline="yes-display-inline">Economic development credit for American
Samoa</header>
<subsection commented="no" display-inline="no-display-inline" id="H10158A2B3C2C4D6DA60000BDD3AA626D"><enum>(a)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H556869A2286B4BC7BBB902BAB2A49376"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>first two taxable
years</quote> and inserting <quote>first 4 taxable years</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAEB58F7921434C0B97669E528852E5EC"><enum>(2)</enum><text display-inline="yes-display-inline">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="HCB07642A97D2493EAD1DD3B719E8C6D2"><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 taxable years beginning after December 31,
2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HA547D58112CA4186AAFD1F390ED5DD1" section-type="subsequent-section"><enum>234.</enum><header display-inline="yes-display-inline">Enhanced charitable deduction for
contributions of food inventory</header>
<subsection commented="no" display-inline="no-display-inline" id="H45FE22261A6A494F9EE785721340F3BF"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (iv) of section 170(e)(3)(C) 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="H6C1F95CAF0C64A6AB1447CD11EFE734F"><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 after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HB17A2B7AEAB646E3B3C83283F92E4486" section-type="subsequent-section"><enum>235.</enum><header display-inline="yes-display-inline">Enhanced charitable deduction for
contributions of book inventory to public schools</header>
<subsection commented="no" display-inline="no-display-inline" id="HC1399302A502473B843521141F9D0635"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (iv) of section 170(e)(3)(D) 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="HE5577214730041FDAC578482D2714B24"><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 after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HD55FF13551AA4FB200605720F8101BF7" section-type="subsequent-section"><enum>236.</enum><header display-inline="yes-display-inline">Enhanced deduction for qualified computer
contributions</header>
<subsection commented="no" display-inline="no-display-inline" id="HE75A387D19D14E0D9C1C430098B6B568"><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="HBBD1BB2D985E4C56ABA2F036C74CEDEA"><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" display-inline="no-display-inline" id="H43189AD42600469DA2E8427C5491DF34" section-type="subsequent-section"><enum>237.</enum><header display-inline="yes-display-inline">Basis adjustment to stock of S corporations
making charitable contributions of property</header>
<subsection commented="no" display-inline="no-display-inline" id="HA31A40FD68BB439F898B00C2B2BBCA5F"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The last sentence of section 1367(a)(2) 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="H6706B92985D8474682A5078C17B47E3B"><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 in taxable years beginning after
December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H875C654C9F5147ABAE06ACFB314D49CD" section-type="subsequent-section"><enum>238.</enum><header display-inline="yes-display-inline">Work opportunity tax credit for Hurricane
Katrina employees</header>
<subsection commented="no" display-inline="no-display-inline" id="HBDF5F1E587564AAE92814731D6D74BAB"><enum>(a)</enum><header display-inline="yes-display-inline">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="H513295F3527D40B79B2E007E65E9EE63"><enum>(b)</enum><header display-inline="yes-display-inline">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="HAD6E17561F3846998B8DB32677D339CF" section-type="subsequent-section"><enum>239.</enum><header display-inline="yes-display-inline">Subpart <enum-in-header>F</enum-in-header>
exception for active financing income</header>
<subsection commented="no" display-inline="no-display-inline" id="H154421510EB04904B0B353CF68B2985E"><enum>(a)</enum><header display-inline="yes-display-inline">Exempt insurance income</header><text display-inline="yes-display-inline">Paragraph (10) of section 953(e) (relating
to application) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6B301C5F07B940F2A74D441FCE34BDF7"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2009</quote>
and inserting <quote>January 1, 2010</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H072AEDBC80E144CDAD9DA55E384D68CD"><enum>(2)</enum><text display-inline="yes-display-inline">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="HE1782115A1C04A13B6424C22D0C819CE"><enum>(b)</enum><header display-inline="yes-display-inline">Exception to treatment as foreign personal
holding company income</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H078A0A97A6804E78003756E8C244C8E9" section-type="subsequent-section"><enum>240.</enum><header display-inline="yes-display-inline">Look-thru rule for related controlled
foreign corporations</header>
<subsection commented="no" display-inline="no-display-inline" id="H2AF6909E855A4C45B5EA3B31B1728C17"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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="H179504067CAE49548EDC511C6815685C"><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 taxable years of foreign corporations beginning
after December 31, 2008, and to taxable years of United States shareholders
with or within which such taxable years of foreign corporations end.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HF79E114F22DD4EF6AA27D33F48F0A312" section-type="subsequent-section"><enum>241.</enum><header display-inline="yes-display-inline">Expensing for certain qualified film and
television productions</header>
<subsection commented="no" display-inline="no-display-inline" id="HCC7F4237FF424918B135A68805B7199B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (f) of section 181 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="HCF38A81CF55743129CA4E6E696FF15"><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 productions commencing after December 31,
2008.</text>
</subsection></section></subtitle><subtitle commented="no" id="H0326585366A746FEB12D8D9F00560691" level-type="subsequent"><enum>C</enum><header display-inline="yes-display-inline">Other Extensions</header>
<section commented="no" display-inline="no-display-inline" id="H345857C8750042A4B13C113280517705" section-type="subsequent-section"><enum>251.</enum><header display-inline="yes-display-inline">Authority to disclose information related
to terrorist activities made permanent</header>
<subsection commented="no" display-inline="no-display-inline" id="HA60F8B78D840484DA4EDBC7503A69E02"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subparagraph (C) of section 6103(i)(3) is
amended by striking clause (iv).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3F44F450997347829734FCF9D9DC667F"><enum>(b)</enum><header display-inline="yes-display-inline">Disclosure on request</header><text display-inline="yes-display-inline">Paragraph (7) of section 6103(i) is amended
by striking subparagraph (E).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0A4BEAC1B8FC496500DCC2BD652CD652"><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 disclosures after the date of the enactment of this
Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HA42FC4EEB5884B3691327E67BA5F982E" section-type="subsequent-section"><enum>252.</enum><header display-inline="yes-display-inline">Authority for undercover operations made
permanent</header>
<subsection commented="no" display-inline="no-display-inline" id="H5442E281EC274FAF92DA94229939EF68"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (c) of section 7608 is amended
by striking paragraph (6).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB0156298C62049A0BEA605B277D39244"><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 January 1, 2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H047E4B0E7FF142ACAF51B5E1C84309FB" section-type="subsequent-section"><enum>253.</enum><header display-inline="yes-display-inline">Increase in limit on cover over of rum
excise tax to Puerto Rico and the Virgin Islands</header>
<subsection commented="no" display-inline="no-display-inline" id="HD33C2A211B8B4650B969F47EE460055"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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="H2E41360F6DCE47C0B39BAEF22B1BE3F"><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 distilled spirits brought into the United States
after December 31, 2007.</text>
</subsection></section></subtitle><enum>III</enum><header display-inline="yes-display-inline">Additional tax relief and other
provisions</header>
<section commented="no" display-inline="no-display-inline" id="H724087196BD743BE813CBB168D25BA00" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Refundable child credit</header>
<subsection commented="no" display-inline="no-display-inline" id="HD003EF36E15D43488FF3F447A896BE84"><enum>(a)</enum><header display-inline="yes-display-inline">Modification of threshold
amount</header><text display-inline="yes-display-inline">Clause (i) of section
24(d)(1)(B) is amended by inserting <quote>($8,500 in the case of taxable years
beginning in 2009)</quote> after <quote>$10,000</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7EB7847024F24E48B9EB008154650689"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
subsection (a) shall apply to taxable years beginning after December 31,
2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H0C55EC43AFD24214A9031D2BDD795F73" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">Provisions related to film and television
productions</header>
<subsection commented="no" display-inline="no-display-inline" id="H5688101B3D3B492AB1B742CAF4D40C4"><enum>(a)</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HD622B29DC59E4093B7B184AD864D78CB" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HA802B8C036FC4AE0A0A39CDBF9990092"><enum>(A)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H9E967D36AF724DFB8BDCC71B44AA062C"><enum>(b)</enum><header display-inline="yes-display-inline">Modifications to deduction for domestic
activities</header>
<paragraph commented="no" display-inline="no-display-inline" id="H3E9B13504A9349E8AFCEE5E05F2B5300"><enum>(1)</enum><header display-inline="yes-display-inline">Determination of W-2 wages</header><text display-inline="yes-display-inline">Paragraph (2) of section 199(b) is amended
by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H19F19F0A6CF64AE7B3D4F3925DED77E9" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H6C11149214BC446D801F855516D300CE"><enum>(D)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB66F52DB17B04FBAA6805C07AF3E1D36"><enum>(2)</enum><header display-inline="yes-display-inline">Definition of qualified film</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0E9EE57642E045989702821F9F6EB28F"><enum>(3)</enum><header display-inline="yes-display-inline">Partnerships</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HFA0DD846240A418481D5D500A78D8E92" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HD68F10B5A6AC48BC9DE4FBC447FCE5B"><enum>(iv)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HC6D50CBB6B3643B2BADEF43628613422"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H41660AD71A6B4D0A00D9E000AD65001D"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H97B2B2AB4B7945B5BB53B9E62BFE00B3"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H996AAE33064D4675B7D9BE836277FDB2"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H45B73FD759AE47198080B7FDDD30B285"><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 taxable years
beginning after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61707BE5222E43C79DF2EBC83761E9B7"><enum>(2)</enum><header display-inline="yes-display-inline">Expensing</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall
apply to qualified film and television productions commencing after December
31, 2007.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HD1EF186FD43E4ED484007FC29E3880FA" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Exemption from excise tax for certain
arrows designed for use by children</header>
<subsection commented="no" display-inline="no-display-inline" id="H2DD3609356A84B1697E031F47CF7C6D2"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 4161(b) (relating
to arrows) is amended by redesignating subparagraph (B) as subparagraph (C) and
by inserting after subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HBCE512768EFC4A759B5B9635F98400B2" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H897A5A1FAEEE4FAEB67FD6F3B1BA8B6"><enum>(B)</enum><header display-inline="yes-display-inline">Exemption for certain arrow
shafts</header><text display-inline="yes-display-inline">Subparagraph (A) shall
not apply to any shaft measuring 5/16 of an inch or less in diameter and
consisting of either—</text>
<clause commented="no" display-inline="no-display-inline" id="HDBABA184F9A64801B86812697E94DCE"><enum>(i)</enum><text display-inline="yes-display-inline">all fiberglass and hollow, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HBCA61D9D715346018CE37DF873C712A3"><enum>(ii)</enum><text display-inline="yes-display-inline">all natural wood,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">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 is not suitable for use with
a bow described in paragraph
(1)(A).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H08BC1FE0B10B4F769C003600518819F9"><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 shafts first sold after the date of enactment of
this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H8EE7346209E24B51B00400F9F89FF1D4" section-type="subsequent-section"><enum>304.</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="HC087CA6744A64341B2C7AD5EDCAF00D8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (a) of section 6694 (relating to
understatement due to unreasonable positions) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H9F53EABA6BB8423BB1FD9EC4EA029068" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H933354270B22432B829C8893A62875AE"><enum>(a)</enum><header display-inline="yes-display-inline">Understatement due to unreasonable
positions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD388FC645EFA4A02965E5E8D1491B867"><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="H0BB0A57011674680BB2151CB74A34D74"><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="H4BA5837F757F48E5B900B83451D8C15E"><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="HACB9331A13DE4DA48DBD059015D75EA1"><enum>(2)</enum><header display-inline="yes-display-inline">Unreasonable position</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H38F90DE7B36B47D2B62997F3ED2FBA90"><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="H075C74492CC2466EB2398985CB2441E"><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="HCCC6FB40E17D4833913042C8C04BEDAE"><enum>(C)</enum><header display-inline="yes-display-inline">Reportable transactions</header><text display-inline="yes-display-inline">If the position is with respect to 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="H3A5F649C551F4016822293BD54267BE2"><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="H0464433C11F244048F52698857D9A31F"><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="H7C82FAA6DF08456C91241D6821B0899"><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="H6469944FDFE245959C36404FB4B99218"><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 beginning after the
date of the enactment of this Act.</text>
</paragraph></subsection></section><enum>IV</enum><header display-inline="yes-display-inline">Revenue provisions</header>
<section commented="no" display-inline="no-display-inline" id="H2305E5E69BBF4D9581C009AC55BF8295" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Limitation of deduction for income
attributable to domestic production of oil, gas, or primary products
thereof</header>
<subsection commented="no" display-inline="no-display-inline" id="H5A833D9389BD477BA9670595CC1967ED"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H730DCADF942C4EF5A4B607ECA5EABF2F" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HB620F1266588433DAC806EF4E11B397D"><enum>(9)</enum><header display-inline="yes-display-inline">Special rule for taxpayers with oil related
qualified production activities income</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H568F62E24F8C406B8BB4C070AB80F36B"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA605A6EB87174D23865053F251D8406F"><enum>(i)</enum><text display-inline="yes-display-inline">the oil related qualified production
activities income of the taxpayer for the taxable year,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H28D84F76EAB74A548FCCB9179D963B13"><enum>(ii)</enum><text display-inline="yes-display-inline">the qualified production activities income
of the taxpayer for the taxable year, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8D19D75B93FC471FB333038600859B93"><enum>(iii)</enum><text display-inline="yes-display-inline">taxable income (determined without regard
to this section).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H43CF1FF6813B40D09871BD67E9820065"><enum>(B)</enum><header display-inline="yes-display-inline">Oil related qualified production activities
income</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H3538B03DC14E4C43B95F27A5660380CB"><enum>(C)</enum><header display-inline="yes-display-inline">Primary product</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H408CEA59F70B4481882B4B99B00681BB"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">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="H03BC14159760444BBFE5046CBBB24FA1"><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 taxable years beginning after December 31,
2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H8EF5FFFAB43C48F70064B6E78C4FEE4" section-type="subsequent-section"><enum>402.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HECB8D7B2D6114D64887247E719FFD100"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H5F001CA0C9CE4AF2A0E6EF3E4C9DE69E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HFADFAC55EC8447EB9100DDE264F5BCCA"><enum>(a)</enum><header display-inline="yes-display-inline">Reduction in amount allowed as foreign tax
under section 901</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HAB7CAFE2AE9D45429541BCEFFF00D22D"><enum>(1)</enum><text display-inline="yes-display-inline">the amount of the combined foreign oil and
gas income for the taxable year,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H61B9999A2C004403A3DE83F28E97D54"><enum>(2)</enum><text display-inline="yes-display-inline">multiplied by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD7555F58C60E4E83BD78D3B37F76417B"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HE24FCD544CEE41D6A76BC2B8ECE2AFD"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H66A2132BB9FC47EEA7AEC2458578544C"><enum>(b)</enum><header display-inline="yes-display-inline">Combined foreign oil and gas income;
foreign oil and gas taxes</header><text display-inline="yes-display-inline">For
purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0ED1A6BDC8E34BCCAB8B8D1D9EE71DD0"><enum>(1)</enum><header display-inline="yes-display-inline">Combined foreign oil and gas
income</header><text display-inline="yes-display-inline">The term
<term>combined foreign oil and gas income</term> means, with respect to any
taxable year, the sum of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5F03F6E9A7194EAE8C602236C3842701"><enum>(A)</enum><text display-inline="yes-display-inline">foreign oil and gas extraction income,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD8133E71CAB844F4A2FE8E5BECBB6AC"><enum>(B)</enum><text display-inline="yes-display-inline">foreign oil related income.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9574E334E26E4C16ADAF61AA14247B30"><enum>(2)</enum><header display-inline="yes-display-inline">Foreign oil and gas taxes</header><text display-inline="yes-display-inline">The term <term>foreign oil and gas
taxes</term> means, with respect to any taxable year, the sum of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HECE34AAF08214A9FB640587508D83A5"><enum>(A)</enum><text display-inline="yes-display-inline">oil and gas extraction taxes, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H61E2122EEE4C42388FAFD231C5284D1"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2F6513D94CC64049A17B429CBAB1B661"><enum>(b)</enum><header display-inline="yes-display-inline">Recapture of foreign oil and gas
losses</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H58CA47C6DCD5463EBC8DF85DEF4DC18" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H15B23A34F4DA448AA42443F7B834A0DD"><enum>(4)</enum><header display-inline="yes-display-inline">Recapture of foreign oil and gas losses by
recharacterizing later combined foreign oil and gas income</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HAEF53DEA2C444E70B28CB754A778BE6D"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD5709E405C1A428C00E9C7F9E43B6ED1"><enum>(i)</enum><text display-inline="yes-display-inline">first by the amount determined under
subparagraph (B), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H43C87CC5045D4A8AA193C5FBC001B8BC"><enum>(ii)</enum><text display-inline="yes-display-inline">then by the amount determined under
subparagraph (C).</text>
</clause><continuation-text commented="no" 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 commented="no" display-inline="no-display-inline" id="H51C96F0DA89049AC8E44996800FD04A0"><enum>(B)</enum><header display-inline="yes-display-inline">Reduction for pre-2009 foreign oil
extraction losses</header><text display-inline="yes-display-inline">The
reduction under this paragraph shall be equal to the lesser of—</text>
<clause commented="no" display-inline="no-display-inline" id="H767DE4B954D0447481D26392064279E0"><enum>(i)</enum><text display-inline="yes-display-inline">the foreign oil and gas extraction income
of the taxpayer for the taxable year (determined without regard to this
paragraph), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5B23C50176DD4EB8AFC779AACCB862"><enum>(ii)</enum><text display-inline="yes-display-inline">the excess of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H374C33667BCE4F7C97061E4E00BE6B3E"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H2FB30C05835548DF8200FE05738362B0"><enum>(II)</enum><text display-inline="yes-display-inline">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>Renewable Energy and Job
Creation Tax Act of 2008</short-title>) for preceding taxable years beginning
after December 31, 1982.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H11388C571627411982D1F8D4825F0669"><enum>(C)</enum><header display-inline="yes-display-inline">Reduction for post-2008 foreign oil and gas
losses</header><text display-inline="yes-display-inline">The reduction under
this paragraph shall be equal to the lesser of—</text>
<clause commented="no" display-inline="no-display-inline" id="HE36AAF1D99704100B3ECEE7800273334"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H440CE6E99052466C8208FD2B31AB7000"><enum>(ii)</enum><text display-inline="yes-display-inline">the excess of—</text>
<subclause commented="no" display-inline="no-display-inline" id="H5A010F0B52DB4F6094AA2D6D62AC41B6"><enum>(I)</enum><text display-inline="yes-display-inline">the aggregate amount of foreign oil and gas
losses for preceding taxable years beginning after December 31, 2008,
over</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H1B942D0A2AF84E20BAA10512F171C331"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0CD8158C1FFA4FECA472414B827556E7"><enum>(D)</enum><header display-inline="yes-display-inline">Foreign oil and gas loss defined</header>
<clause commented="no" display-inline="no-display-inline" id="H106BF88BE73541A29582FF711C862F60"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term
<term>foreign oil and gas loss</term> means the amount by which—</text>
<subclause commented="no" display-inline="no-display-inline" id="H15564F13A23A4BCF87F000BAD1BD8D1"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEF85B0ABAFA646408EF3647D70488EF7"><enum>(II)</enum><text display-inline="yes-display-inline">the sum of the deductions properly
apportioned or allocated thereto.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H74BFCEFED5774E9C8146B3BF63D2B879"><enum>(ii)</enum><header display-inline="yes-display-inline">Net operating loss deduction not taken into
account</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB0D283F3E60E4F69B4AEC336C7BAE6E"><enum>(iii)</enum><header display-inline="yes-display-inline">Expropriation and casualty losses not taken
into account</header><text display-inline="yes-display-inline">For purposes of
clause (i), there shall not be taken into account—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA5B5FFE8047C44248EF11C95C65BB2D8"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HB4A323A1CC654CED878911987CC51585"><enum>(II)</enum><text display-inline="yes-display-inline">any loss for the taxable year which arises
from fire, storm, shipwreck, or other casualty, or from theft,</text>
</subclause><continuation-text commented="no" continuation-text-level="clause">to the extent such loss is not
compensated for by insurance or otherwise.</continuation-text></clause><clause commented="no" display-inline="no-display-inline" id="HCDC83C663B044242999CC7E2EA71F467"><enum>(iv)</enum><header display-inline="yes-display-inline">Foreign oil extraction loss</header><text display-inline="yes-display-inline">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>Renewable Energy and Job Creation Tax Act of
2008</short-title>.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7C81A1947A484F7ABB70442100D780FF"><enum>(c)</enum><header display-inline="yes-display-inline">Carryback and carryover of disallowed
credits</header><text display-inline="yes-display-inline">Section 907(f)
(relating to carryback and carryover of disallowed credits) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H21DD7448D6CB4A37A551DE00EC60CE2B"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H854940AE937144AD98B72D91DB340985"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HEDE3B209D0D24D419F2849E951AFDC10" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H279F3E04D2D940F2B72CD500302F4B8B"><enum>(4)</enum><header display-inline="yes-display-inline">Transition rules for pre-2009 and 2009
disallowed credits</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H80B48885ABF44C6BBB59D514B2AA34D"><enum>(A)</enum><header display-inline="yes-display-inline">Pre-2009 credits</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H1960D6ABC5AB41F799FD214E0007BAFF"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H344AC4CB1E2F4649AD8CFDA869C2A215"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H8C739AD8983742E5A3478BDB4D01615F"><enum>(B)</enum><header display-inline="yes-display-inline">2009 credits</header><text display-inline="yes-display-inline">In the case of any unused credit year
beginning in 2009, the amendments made to this subsection by the
<short-title>Renewable Energy and Job Creation Tax 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 commented="no" display-inline="no-display-inline" id="H1B7FBD3E5CAD412AB21EA79417837248"><enum>(d)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">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="HE450E8D81CD44C4598A02292F6A4414D"><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><section commented="no" display-inline="no-display-inline" id="HDFA33EF7466442FEB9FE11A898A1472D" 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="H1826AF13E83A48218F72DF3E1E00AF39"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0DD63626F438494E91D33D7D9244AD1D"><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 display-inline="no-display-inline" id="H20B78E6F22E3461B891B440235EC1712" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HB8836FCFEE824CB1A2E61FEBB134247"><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="H4D284FF20A434920B8C7782811D8FCC5"><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="H0FE7F93572AD42FB93E9BD9956F4D04"><enum>(2)</enum><header display-inline="yes-display-inline">Additional information required</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H11E4B9118AED4FE8A9AF08AB71EF8FE6"><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="H138161FB5283482B9F44824720ED99CF"><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="H17195122DBBC403E8F80563689644BAD"><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="H4A31FBE8C7614473ABF093C1A690001F"><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="H56116C42EBBD4E6E8F311575CFA801D3"><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="H1B702949C04C40359F731B3678A29CBB"><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="HB2AF19F1FFDA448F85DA4081FCC355DF"><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="H669136ABD01E4B67BC97BF14BDC0ABC0"><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="HB98C5929C0EF4474B1FD6FDA8CE0B5CB"><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="HF3D6B15A0AED4DEEA052B79342A41BB2"><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="HAAA151575F364D74A02041D88B96CD8C"><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="H452837CE09CC48D2BB53632608C19803"><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="HA3C5EA2C3D3943F98FDCE661FB019692"><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="HF0A7B049FF1D4045BA6F4EA311866F02"><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="H4BE25523FA5245F5A063096D0072ED77"><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="H74F873FDB2254674B041D7228D365838"><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="H5726103957294C23ACCC3B47D98F42E1"><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="H443F4C8DF8DE4A318816C322BCD22EDB"><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="HBB81D3FAF9554B69B5CD858E848F56F1"><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="H8589BE91C41C463BA53E08B82F61C27D"><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="H0AA7DE5F837143419C191118B4EF9D08"><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="HCE7847ECCCA94E459ED4F8420D4AD76"><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 display-inline="no-display-inline" id="HDD69123A50F64F918F7174D6EB00CDF" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA2712A40DB0B42B8973F948633A95B94"><enum>(h)</enum><header display-inline="yes-display-inline">Application to options on
securities</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAF476F87D9024AA3B8910591CB78FE1E"><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="H1E3E4C1670CF4138BDBA5CD7B407BBF1"><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="H2BE504A4078E408FA6C1985415F57FBC"><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="H0BE74FC12E874A638CF92B450B464D5"><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="HA5302EC3549049D7A4D2ADD552B3FDCD"><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="HBCC425D17493454BAC94BDB2762BCA98"><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="H8FFB412E63BF45EF8D2CA75DBA29457C"><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="H1E2BBDE06CDC4CE78DF970F01E8F7135"><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="H9D0B54EF8DFB496992C998F264B5624F"><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="H816C26FE027F4B20AFBFA82B88E2A1CC"><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="HEE6A8FED89604592B5F86CCEC1BBB175"><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="HB1E979BFEE0C43FD8FF1D89B5CC304BC"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>The basis of
property</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H48D700FF3F944D4C9D657011461BD3C1" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HE89466968F0144F1B16B66CB00FE1100"><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="HBFAF9C3AD53246D5AE5B719DA0325DAA"><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 display-inline="no-display-inline" id="H5F4344499B644CA7B484EB1EEAB33837" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H465D7C12C9D74AF99F87F600F2BC01AF"><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="HDBD9C058E038406482A27DCDC5081571"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="HBC739A5E403D4119B9C5A7BFF13B10E" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H052F502F878E43B085EFAD639200B746"><enum>(c)</enum><header display-inline="yes-display-inline">Determinations by account</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4B0A7D5E43FC4107AB69632CA7E00E4"><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="H2974F7F6BD8F4B63860930638CE5413F"><enum>(2)</enum><header display-inline="yes-display-inline">Application to certain regulated investment
companies</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H165D21DD2F4E415790127C0000B5E56C"><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="H886003E24DCE44A48501867309B12456"><enum>(B)</enum><header display-inline="yes-display-inline">Election for treatment as single
account</header><text display-inline="yes-display-inline">If a regulated
investment company 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="HFFA877A0EF4545E2A632E2DA04E14644"><enum>(i)</enum><text display-inline="yes-display-inline">subparagraph (A) shall not apply with
respect to any stock in such company held by such stockholders, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H0857965CF544430180BF3CF77C164CEA"><enum>(ii)</enum><text display-inline="yes-display-inline">all stock in such company 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="HC62B90BBEF294733A017E5FF4982974B"><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="HF0D3EAC7FCFA4B2192ADDB89CCF186A0"><enum>(d)</enum><header display-inline="yes-display-inline">Average basis for stock acquired pursuant
to a periodic stock investment plan</header>
<paragraph commented="no" display-inline="no-display-inline" id="H090BA7E2BDCB4054A7BB7078B0F204C3"><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 periodic stock investment 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 a
regulated investment company.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1FB8B03397DA42E2AABAB9DA9FE13CE8"><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 periodic stock investment
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="H6DB8648C0E9D4C1FA903A9CD33D527EE"><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="HC6F93F355E344E5BAEB38DB768F78D74"><enum>(4)</enum><header display-inline="yes-display-inline">Periodic stock investment
plan</header><text display-inline="yes-display-inline">For purposes of this
subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5E7476A2ABF14B68923F7E31AEE2B0E8"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <quote>periodic stock investment
plan</quote> means—</text>
<clause commented="no" display-inline="no-display-inline" id="H4FA91E29EA374011BA93EE3E78F81901"><enum>(i)</enum><text display-inline="yes-display-inline">any stock purchase plan, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H6EE9082636E44060A14501282D5614F1"><enum>(ii)</enum><text display-inline="yes-display-inline">any dividend reinvestment plan.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0089376275E74D99A5E214247597DB2E"><enum>(B)</enum><header display-inline="yes-display-inline">Stock purchase plan</header><text display-inline="yes-display-inline">The term <quote>stock purchase plan</quote>
means any arrangement under which identical stock is periodically purchased
pursuant to a written plan.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2DE052EA26244291B43FD0063685B4A2"><enum>(C)</enum><header display-inline="yes-display-inline">Dividend reinvestment plan</header>
<clause commented="no" display-inline="no-display-inline" id="H9A67C83B3730428B8100D84E04AF122"><enum>(i)</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>
</clause><clause commented="no" display-inline="no-display-inline" id="H36006BFD94F1480E8301EDA8857255E1"><enum>(ii)</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>
</clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HB0AA5825B8BC4C9BA187E3C4C2DD68C"><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="HCC34C516DE2C4F59A673D1C8C7B1879B"><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 display-inline="no-display-inline" id="H123C963AEC3A4528B78CB4078FDC6D4" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H4A4399F8BA8F48B0B4DB628499883372" 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="H6E3192F6A2B748069BD2AC6DC5B361AF"><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="H0BD3A26A4C7B428EBB3D1B0018673038"><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="H98774FE2C26A4DBD9E2C556F9BA40869"><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="H1220C939E4AE48C5B701BACD9C35F387"><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="H2C332814BDEE4E929BCA93939DE9A780"><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="H7481CFB06E38472E95497410274EEA30"><enum>(2)</enum><header display-inline="yes-display-inline">Assessable penalties</header><text display-inline="yes-display-inline">Paragraph (2) of section 6724(d) 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 display-inline="no-display-inline" id="H18D5721201F04CA593A38280824DDC17" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H1F05809D360B413BB717F485D02CAB83"><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="H5E106821C948426689A39EDF2F00105C"><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 display-inline="no-display-inline" id="H6F3F175A84F945E1A96CDC39F6E70136" style="OLC">
<toc regeneration="no-regeneration">
<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="HA293571C24CA432099453E244F9B4D95"><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="H8D261ADB52EC4156A100789620F040D3"><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 display-inline="no-display-inline" id="HCB83AC7AEBB542948CA8A7E4E0A4DC35" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H719903012E1A4029B3D783ACE5F886AE" 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="H216B785BFDCC4DE700DF60BCEF98A3DB"><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="H1F9AC7C5DA5A499CAC3DB698A5FB87F4"><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="H9CE560A30F7746A8BBF0A776FD7814ED"><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="H055FE24125B34509AC6853EB93FC8D66"><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="H33FDE933205A43E4AF65F18E2208C3D7"><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="HD4396ED085AD4B4EB7BA69ED9715FD1"><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="H91C6000A82204DFAA4FD3DE738B10F"><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="H4F32101F980F4AD38264BD26070127"><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="H47D13B3ABBCD4990921590F74798C6D7"><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="H2DFDA6BAC25A4287B19149E5AE764E50"><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="H29DB0B22883B4CAC9C08CE59C966AE10"><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="HCA89D108ACAD4915947C49AD8153F6E"><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="HE5797BB9212B48449DB5B6F0005306D"><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="HE13568A8888E4C20868E40D93600BC60"><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="H7C4EA75FE3F04AB49B4ED9004B4F29AA"><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="HBE92770752F24812A131D148C556E3E5"><enum>(2)</enum><header display-inline="yes-display-inline">Assessable penalties</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H53714250D21041B48EB346F242740445"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (B) of section 6724(d)(1) 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 display-inline="no-display-inline" id="H9B751D35962E483A897B7653A2099B04" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HCC1D2F199C0E46998E61ABF9729375E5"><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="HB1AF738F7469407CA45CA05700277DFA"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6724(d), as
amended 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 display-inline="no-display-inline" id="H5C45046AC30C495EB040E82674BFCDE5" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H91430CB351144A00A3EAD8DBBE109BB1"><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="H4E07B10879E1456B9755F7A2E5C2A927"><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 display-inline="no-display-inline" id="H080F863BC49F48DAA433F7DD581C19B5" style="OLC">
<toc regeneration="no-regeneration">
<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="HB2C5349642D74C609189BB2921A89E19"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAB7E5F1DF63349D6000776FE3F56FFA4"><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="HCC98A756DBFF45DA8CDBF14CCADE524"><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="H303E4AC05FF84609AE8B052224B4FECF" section-type="subsequent-section"><enum>404.</enum><header display-inline="yes-display-inline">0.2 percent FUTA surtax</header>
<subsection commented="no" display-inline="no-display-inline" id="H473BDA6DF0584476A99C16A95E366365"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 3301 (relating to rate of tax) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAF0841C53A354B6DA0F14D2F5BBACC9"><enum>(1)</enum><text display-inline="yes-display-inline">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="HE742740E50E84D6BB90066742C28A8A8"><enum>(2)</enum><text display-inline="yes-display-inline">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="H8336B647C9F2478FA2F04F0062CD44D6"><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 wages paid after December 31, 2008.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H3FED5EAA70144CFFB5732187EA7DDA9" section-type="subsequent-section"><enum>405.</enum><header display-inline="yes-display-inline">Increase and extension of Oil Spill
Liability Trust Fund tax</header>
<subsection commented="no" display-inline="no-display-inline" id="HD61581382AC74F6C8C2B404E15FE4346"><enum>(a)</enum><header display-inline="yes-display-inline">Increase in rate</header>
<paragraph commented="no" display-inline="no-display-inline" id="H74134F9EC0454637A200D8BFAD05153"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 4611(c)(2)(B) (relating to rates)
is amended by striking <quote>is 5 cents a barrel.</quote> and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="H0583A2598D824857823DCCFB3443FDEE" style="OLC">
<text>is—</text><clause commented="no" display-inline="no-display-inline" id="HB4BCAE0607A444E5A4BCBC036EFF54EE"><enum>(i)</enum><text display-inline="yes-display-inline">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="HE47003B0935B4D799F3387D53D6DD7C8"><enum>(ii)</enum><text display-inline="yes-display-inline">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="HC12398603DAE4501B4F6B3765570B0F1"><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 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="H71E0CF28F015434BA16408C366C3B39F"><enum>(b)</enum><header display-inline="yes-display-inline">Extension</header>
<paragraph commented="no" display-inline="no-display-inline" id="H8F968531C7804C85BD84219EA9006027"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HAA95CE18EFC24B14A914A8004B5B354E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H53B55BB454B34A38BFF1D034490B5DC"><enum>(2)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">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="H8508AD411D374477A8E62BF5A94BA58"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">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="H4EC2CF5AC3EB4263AF88A477009B97C2"><enum>(3)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall take effect on the date of the enactment of this
Act.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H2036D109F74F441FAB29DF121864DCC6" section-type="subsequent-section"><enum>406.</enum><header display-inline="yes-display-inline">Nonqualified deferred compensation from
certain tax indifferent parties</header>
<subsection commented="no" display-inline="no-display-inline" id="HDB854416C8E44BD48BBB97E40569988"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 display-inline="no-display-inline" id="HB925AF800B7144A9A400B37CBC0576EA" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H4BEF9E1E3D7847BE843961D1EA967DB" section-type="subsequent-section"><enum>457A.</enum><header display-inline="yes-display-inline">Nonqualified deferred compensation from
certain tax indifferent parties</header>
<subsection commented="no" display-inline="no-display-inline" id="H42D26B3AAF59470B9713A23FB2952425"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any compensation of a service provider
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 commented="no" display-inline="no-display-inline" id="HB3DA15F58C764A1AB9F0A3F30A63DDB"><enum>(b)</enum><header display-inline="yes-display-inline">Nonqualified entity</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>nonqualified entity</term> means—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6814EDAE329843E8B9D000168870BB5C"><enum>(1)</enum><text display-inline="yes-display-inline">any foreign corporation unless
substantially all of its income is—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H61CF4E232AD64C39958736DCEA56EF3"><enum>(A)</enum><text display-inline="yes-display-inline">effectively connected with the conduct of a
trade or business in the United States, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7D7D36B94F9F41078F7BD76D752006FA"><enum>(B)</enum><text display-inline="yes-display-inline">subject to a comprehensive foreign income
tax, and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF9EE1A383ED547639170601C77A7048F"><enum>(2)</enum><text display-inline="yes-display-inline">any partnership unless substantially all of
its income is, directly or indirectly, allocated to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6E546E93F5E949FBB491FD3737A39684"><enum>(A)</enum><text display-inline="yes-display-inline">United States persons (other than persons
exempt from tax under this title),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF52FCA2D3AA847D3A943D1008F61FCE4"><enum>(B)</enum><text display-inline="yes-display-inline">foreign persons with respect to whom such
income is subject to a comprehensive foreign income tax,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE5B9DD3201C64D4EB1D4173DF1B9FF17"><enum>(C)</enum><text display-inline="yes-display-inline">foreign persons with respect to
whom—</text>
<clause commented="no" display-inline="no-display-inline" id="HA3684FFF4905442892023916A1B1EF89"><enum>(i)</enum><text display-inline="yes-display-inline">such income is effectively connected with
the conduct of a trade or business within the United States, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H013816B2C0BC40F1893D3D178DA74F82"><enum>(ii)</enum><text display-inline="yes-display-inline">a withholding tax is paid under section
1446 with respect to such income, or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H58579C9DED6F4B40A3D817C78EED2C"><enum>(D)</enum><text display-inline="yes-display-inline">organizations which are exempt from tax
under this title if such income is unrelated business taxable income (as
defined in section 512) with respect to such organization.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H57537EB5C1B84DE396129899AA10D6A1"><enum>(c)</enum><header display-inline="yes-display-inline">Determinability of amounts of
compensation</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC511B6BC0E584526A3D75956326457C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H93092668051546A49F96CE12A4BD6DCB"><enum>(A)</enum><text display-inline="yes-display-inline">such amount shall be so includible in gross
income when determinable, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEA311FC3BFF2465AAE0045CAE7FBF2DB"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0695BFFD619A48A883E4D8FE724ACE9"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of interest determined under
paragraph (2), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7B1E43FCDF3D491C86E623E05C40385"><enum>(ii)</enum><text display-inline="yes-display-inline">an amount equal to 20 percent of the amount
of such compensation.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H05916EF6E0F04D020005BA79A73E16AF"><enum>(2)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0CFD0C0863054C2C985000D7DDFD9B96"><enum>(d)</enum><header display-inline="yes-display-inline">Other definitions and special
rules</header><text display-inline="yes-display-inline">For purposes of this
section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H666436C99C6A4DBC9C462613781FCF90"><enum>(1)</enum><header display-inline="yes-display-inline">Substantial risk of forfeiture</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7A1FB9BDAF714B4496A6F2B23A7593"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HEF35BE53C2D04C22ADEBEBD6A37B9DB4"><enum>(B)</enum><header display-inline="yes-display-inline">Exception for compensation based on gain
recognized on an investment asset</header>
<clause commented="no" display-inline="no-display-inline" id="HA7B93EC0DFB6450E9153BE05FF72C554"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">To the extent provided in regulations
prescribed by the Secretary, if compensation of a service provider 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 commented="no" display-inline="no-display-inline" id="HEF6147A8ABF046FE9C484E02192DE2D"><enum>(ii)</enum><header display-inline="yes-display-inline">Investment asset</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4BFAEC6550F14C008E5F52A702156E8C"><enum>(I)</enum><text display-inline="yes-display-inline">acquired directly by an investment fund or
similar entity,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H65660A49C09240C38666072838D77DB1"><enum>(II)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA4EC4C50954E4F9E91BE5DA297502014"><enum>(III)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H4F89A0A343C444BBA7C8E5EDC1CAD6B7"><enum>(iii)</enum><header display-inline="yes-display-inline">Coordination with special
rule</header><text display-inline="yes-display-inline">Paragraph (3)(B) shall
not apply to any compensation to which clause (i) applies.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA34190B09E9D49F5822FEE0027E2E9F3"><enum>(2)</enum><header display-inline="yes-display-inline">Comprehensive foreign income
tax</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HF3077643DB8840338DC93288EFA866F8"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0198CDB12988460100D6A6688DC79198"><enum>(B)</enum><text display-inline="yes-display-inline">such person demonstrates to the
satisfaction of the Secretary that such foreign country has a comprehensive
income tax.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA990AC035D3F4D929C704D5568AD03CC"><enum>(3)</enum><header display-inline="yes-display-inline">Nonqualified deferred compensation
plan</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA037254B270042DA85964CA62316CA00"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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" display-inline="no-display-inline" id="H97EE02F5E610410FAE914F1101F64626"><enum>(B)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HD80775DD6CC14536B279DC80E19E93EE"><enum>(4)</enum><header display-inline="yes-display-inline">Service provider</header><text display-inline="yes-display-inline">The term <quote>service provider</quote>
has the meaning given such term in the regulations under section 409A,
determined without regard to method of accounting.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB99154EDAD6D4261A3D888FF06E4F071"><enum>(5)</enum><header display-inline="yes-display-inline">Exception for certain compensation with
respect to effectively connected income</header><text display-inline="yes-display-inline">In the case of a foreign corporation with
income which is taxable under section 882, this section shall not apply to
compensation payable by such foreign corporation which, had such compensation
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 commented="no" display-inline="no-display-inline" id="HC115F17C430E44DAB0D0BFD1A81BEE21"><enum>(6)</enum><header display-inline="yes-display-inline">Exception with respect to employees of
certain subsidiaries</header><text display-inline="yes-display-inline">This
section shall not apply to compensation deferred under a nonqualified deferred
compensation plan of a nonqualified entity if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H47C4737E49AF483484C1F8AF28994900"><enum>(A)</enum><text display-inline="yes-display-inline">such compensation is payable to an employee
of a domestic subsidiary of such entity, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9D60BF43DE3C48CF98E80689495B55BC"><enum>(B)</enum><text display-inline="yes-display-inline">such compensation is reasonably expected to
be deductible by such subsidiary under section 404(a)(5) when such compensation
is includible in income by such employee.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF38BD39BF9C048C29F565BDC731DD776"><enum>(7)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H069B41833211442682F1B3ED2BF8F83"><enum>(e)</enum><header display-inline="yes-display-inline">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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA14B69CDCB0D4533BAC6325517ACEBBC"><enum>(1)</enum><text display-inline="yes-display-inline">disregarding a substantial risk of
forfeiture in cases where necessary to carry out the purposes of this section,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAAE932DA2D7A4AE7A61DB605AEFC7C46"><enum>(2)</enum><text display-inline="yes-display-inline">providing appropriate treatment where an
individual who was employed by an employer which is not a nonqualified entity
is temporarily employed by a nonqualified entity which is related to such
employer.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0608C80A2E4C4039004CF92D19F82FBF"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 26(b)(2) 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 display-inline="no-display-inline" id="H69E9E9637D6349B895B7445489C4E720" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H5F30FB7822F44F74990045EF8E3423D"><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 commented="no" display-inline="no-display-inline" id="HE3CDF60892394D9FA7A041A2BD5B6520"><enum>(c)</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="H153712FD89124A87874C8E39C278065F" style="OLC">
<toc container-level="quoted-block-container" idref="HB925AF800B7144A9A400B37CBC0576EA" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry bold="off" idref="H4BEF9E1E3D7847BE843961D1EA967DB" 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 commented="no" display-inline="no-display-inline" id="H43D5957362CB436589F852DE49B4D57D"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="HEF087FC0F17F495B95C195A98200A4D6"><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 amounts deferred
which are attributable to services performed after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H28B71379AE4F40A08E41BC5CA2627626"><enum>(2)</enum><header display-inline="yes-display-inline">Application to existing
deferrals</header><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="H0FD83FF3C74D4DD8A16C58ACEBA5889F"><enum>(A)</enum><text display-inline="yes-display-inline">the last taxable year beginning before
2018, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HABECF58E11AC4864B5ADE9AFDFF5FD61"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HCADA79673D9D4F988824218063598889"><enum>(3)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="HA0B570816F9048D7B13F677893DFEBA"><enum>(4)</enum><header display-inline="yes-display-inline">Certain back-to-back
arrangements</header><text display-inline="yes-display-inline">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="HE5E7E52933424C558388B2EFBCF402E7"><enum>(5)</enum><header display-inline="yes-display-inline">Accelerated payment not treated as material
modification</header><text display-inline="yes-display-inline">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 section 409A of the Internal Revenue Code of 1986.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H15DD3F45475C47EBBA02F98E53249828"><enum>(6)</enum><header display-inline="yes-display-inline">Certain preexisting
arrangements</header><text display-inline="yes-display-inline">If, pursuant to
a written binding contract entered into on or before December 31, 2007, any
portion of compensation payable under such contract for a period is determined
as a portion of the amount of gain recognized on the disposition during such
period of a specified asset, the amendments made by this section shall not
apply to the portion of compensation attributable to such disposition
notwithstanding the fact that such portion of compensation may be reduced by
realized losses or depreciation in the value of other assets during such period
or a prior period or be attributable in part to services performed after
December 31, 2008, but only if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC50A7C6C5ED2429ABE18FDE1CFDB4D98"><enum>(A)</enum><text display-inline="yes-display-inline">payment of such portion of compensation is
received by the service provider and included in its gross income no later than
the earlier of—</text>
<clause commented="no" display-inline="no-display-inline" id="HD7B45CA10BC04A369F43BBDFA2EB5471"><enum>(i)</enum><text display-inline="yes-display-inline">12 months after the end of the taxable year
of the service recipient during which the disposition of the specified asset
occurs, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HEC05AE02A96144F09E2F031636F64FA4"><enum>(ii)</enum><text display-inline="yes-display-inline">the last taxable year of the service
provider beginning before January 1, 2018; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H46D36CE60B864B0E9DEC4B7711B574AC"><enum>(B)</enum><text display-inline="yes-display-inline">the specified asset is held by the service
recipient on the date of the enactment of this section.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H1C3317E4C4664C40B8A146798D823E00" section-type="subsequent-section"><enum>407.</enum><header display-inline="yes-display-inline">Delay in application of worldwide
allocation of interest</header>
<subsection commented="no" display-inline="no-display-inline" id="H17CC3CA023E948708F1E95D48344A6C3"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraphs (5)(D) and (6) of section 864(f)
are each amended by striking <quote>December 31, 2010</quote> and inserting
<quote>December 31, 2016</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0B9AB96B02C544058031E0A0D8509DC"><enum>(b)</enum><header display-inline="yes-display-inline">Transition</header><text display-inline="yes-display-inline">Paragraph (7) of section 864(f) is amended
by striking <quote>30 percent</quote> and inserting <quote>55
percent</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9883303F76174E1E85006178CF5D6612"><enum>(c)</enum><header display-inline="yes-display-inline">Coordination with other
legislation</header><text display-inline="yes-display-inline">If H.R. 6983 of
the 110th Congress is enacted into law—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H653E70DCEB4E4F848432C25CF9E20398"><enum>(1)</enum><text display-inline="yes-display-inline">such law shall be treated, solely for
purposes of carrying out the amendments made by this section, as having been
enacted immediately before the enactment of this Act, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF01713EAFD0743E5827EA608D339BA08"><enum>(2)</enum><text display-inline="yes-display-inline">in lieu of the amendments made by
subsections (a) and (b):</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HAE925CD7036549CB8E69F6C561004C26"><enum>(A)</enum><text display-inline="yes-display-inline">Paragraphs (5)(D) and (6) of section
864(f), as amended by such law, are each amended by striking <quote>December
31, 2012</quote> and inserting <quote>December 31, 2018</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H141BE1162DB945CEA3620846007B78C8"><enum>(B)</enum><text display-inline="yes-display-inline">Subsection (f) of section 864, as amended
by such law, is amended by striking paragraph (7).</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA53FF3AD91054073AA74FB3B21283845" section-type="subsequent-section"><enum>408.</enum><header display-inline="yes-display-inline">Time for payment of corporate estimated
taxes</header><text display-inline="no-display-inline">The percentage under
subparagraph (C) of section 401(1) of the Tax Increase Prevention and
Reconciliation Act of 2005 in effect on the date of the enactment of this Act
is increased by 58 percentage points.</text>
</section>
Passed the House of
Representatives September 26, 2008.
Lorraine C. Miller,
Clerk.
December 9, 2008
Read the second time and placed on the
calendar