[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2886 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2886

 To amend the Internal Revenue Code of 1986 to amend certain expiring 
                              provisions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 17, 2008

 Mr. Baucus (for himself, Mr. Grassley, Mr. Salazar, Mr. Schumer, Ms. 
   Stabenow, Mr. Smith, Mr. Crapo, Mr. Rockefeller, Mr. Kyl, and Ms. 
Snowe) introduced the following bill; which was read twice and referred 
                      to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to amend certain expiring 
                              provisions.

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

SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Alternative 
Minimum Tax and Extenders Tax Relief Act of 2008''.
    (b) Amendment of 1986 Code.--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) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.
                TITLE I--ALTERNATIVE MINIMUM TAX RELIEF

Sec. 101. Extension of alternative minimum tax relief for nonrefundable 
                            personal credits.
Sec. 102. Extension of increased alternative minimum tax exemption 
                            amount.
                  TITLE II--INDIVIDUAL TAX PROVISIONS

Sec. 201. Election to include combat pay as earned income for purposes 
                            of the earned income credit.
Sec. 202. Distributions from retirement plans to individuals called to 
                            active duty.
Sec. 203. Deduction for State and local sales taxes.
Sec. 204. Deduction of qualified tuition and related expenses.
Sec. 205. Deduction for certain expenses of elementary and secondary 
                            school teachers.
Sec. 206. Modification of mortgage revenue bonds for veterans.
Sec. 207. Tax-free distributions from individual retirement plans for 
                            charitable purposes.
Sec. 208. Treatment of certain dividends of regulated investment 
                            companies.
Sec. 209. Stock in RIC for purposes of determining estates of 
                            nonresidents not citizens.
Sec. 210. Qualified investment entities.
Sec. 211. Qualified conservation contributions.
                   TITLE III--BUSINESS TAX PROVISIONS

Sec. 301. Extension and modification of research credit.
Sec. 302. New markets tax credit.
Sec. 303. Subpart F exception for active financing income.
Sec. 304. Extension of look-thru rule for related controlled foreign 
                            corporations.
Sec. 305. Extension of 15-year straight-line cost recovery for 
                            qualified leasehold improvements and 
                            qualified restaurant improvements.
Sec. 306. Enhanced charitable deduction for contributions of food 
                            inventory.
Sec. 307. Extension of enhanced charitable deduction for contributions 
                            of book inventory.
Sec. 308. Modification of tax treatment of certain payments to 
                            controlling exempt organizations.
Sec. 309. Basis adjustment to stock of S corporations making charitable 
                            contributions of property.
Sec. 310. Increase in limit on cover over of rum excise tax to Puerto 
                            Rico and the Virgin Islands.
Sec. 311. Parity in the application of certain limits to mental health 
                            benefits.
Sec. 312. Extension of economic development credit for American Samoa.
Sec. 313. Extension of mine rescue team training credit.
Sec. 314. Extension of election to expense advanced mine safety 
                            equipment.
Sec. 315. Extension of expensing rules for qualified film and 
                            television productions.
Sec. 316. Deduction allowable with respect to income attributable to 
                            domestic production activities in Puerto 
                            Rico.
Sec. 317. Extension of qualified zone academy bonds.
Sec. 318. Indian employment credit.
Sec. 319. Accelerated depreciation for business property on Indian 
                            reservation.
Sec. 320. Railroad track maintenance.
Sec. 321. Seven-year cost recovery period for motorsports racing track 
                            facility.
Sec. 322. Expensing of environmental remediation costs.
Sec. 323. Extension of work opportunity tax credit for Hurricane 
                            Katrina employees.
               TITLE IV--EXTENSIONS OF ENERGY PROVISIONS

Sec. 401. Extension of credit for energy efficient appliances.
Sec. 402. Extension of credit for nonbusiness energy property.
Sec. 403. Extension of credit for residential energy efficient 
                            property.
Sec. 404. Extension of renewable electricity, refined coal, and Indian 
                            coal production credit.
Sec. 405. Extension of new energy efficient home credit.
Sec. 406. Extension of energy credit.
Sec. 407. Extension and modification of credit for clean renewable 
                            energy bonds.
Sec. 408. Extension of energy efficient commercial buildings deduction.
                      TITLE V--TAX ADMINISTRATION

Sec. 501. Permanent authority for undercover operations.
Sec. 502. Permanent disclosures of certain tax return information.
Sec. 503. Disclosure of information relating to terrorist activities.

                TITLE I--ALTERNATIVE MINIMUM TAX RELIEF

SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE 
              PERSONAL CREDITS.

    (a) In General.--Paragraph (2) of section 26(a) (relating to 
special rule for taxable years 2000 through 2007) is amended--
            (1) by striking ``or 2007'' and inserting ``2007, or 
        2008'', and
            (2) by striking ``2007'' in the heading thereof and 
        inserting ``2008''.
    (b)  Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 102. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION 
              AMOUNT.

    (a) In General.--Paragraph (1) of section 55(d) (relating to 
exemption amount) is amended--
            (1) by striking ``($66,250 in the case of taxable years 
        beginning in 2007)'' in subparagraph (A) and inserting 
        ``($69,950 in the case of taxable years beginning in 2008)'', 
        and
            (2) by striking ``($44,350 in the case of taxable years 
        beginning in 2007)'' in subparagraph (B) and inserting 
        ``($46,200 in the case of taxable years beginning in 2008)''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

                  TITLE II--INDIVIDUAL TAX PROVISIONS

SEC. 201. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR PURPOSES 
              OF THE EARNED INCOME CREDIT.

    (a) In General.--Subclause (II) of section 32(c)(2)(B)(vi) 
(defining earned income) is amended by striking ``January 1, 2008'' and 
inserting ``January 1, 2010''.
    (b) Conforming Amendment.--Paragraph (4) of section 6428, as 
amended by the Economic Stimulus Act of 2008, is amended to read as 
follows:
            ``(4) Earned income.--The term `earned income' has the 
        meaning set forth in section 32(c)(2) except that such term 
        shall not include net earnings from self-employment which are 
        not taken into account in computing taxable income.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2007.

SEC. 202. DISTRIBUTIONS FROM RETIREMENT PLANS TO INDIVIDUALS CALLED TO 
              ACTIVE DUTY.

    (a) In General.--Clause (iv) of section 72(t)(2)(G) is amended by 
striking ``December 31, 2007'' and inserting ``January 1, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals ordered or called to active duty on or after December 
31, 2007.

SEC. 203. DEDUCTION FOR STATE AND LOCAL SALES TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended 
by striking ``January 1, 2008'' and inserting ``January 1, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

SEC. 204. DEDUCTION OF QUALIFIED TUITION AND RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

SEC. 205. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND SECONDARY 
              SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) (relating to 
certain expenses of elementary and secondary school teachers) is 
amended by striking ``or 2007'' and inserting ``2007, 2008, or 2009''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2007.

SEC. 206. MODIFICATION OF MORTGAGE REVENUE BONDS FOR VETERANS.

    (a) Qualified Mortgage Bonds Used To Finance Residences for 
Veterans Without Regard to First-Time Homebuyer Requirement.--
Subparagraph (D) of section 143(d)(2) (relating to exceptions) is 
amended by inserting ``and after the date of the enactment of the 
Alternative Minimum Tax and Extenders Tax Relief Act of 2008 and before 
January 1, 2010'' after ``January 1, 2008''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after the date of the enactment of this Act.

SEC. 207. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS FOR 
              CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2007.

SEC. 208. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT 
              COMPANIES.

    (a) Interest-Related Dividends.--Subparagraph (C) of section 
871(k)(1) (defining interest-related dividend) is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2009''.
    (b) Short-Term Capital Gain Dividends.--Subparagraph (C) of section 
871(k)(2) (defining short-term capital gain dividend) is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2009''.
    (c) Effective Date.--The amendments made by this section shall 
apply to dividends with respect to taxable years of regulated 
investment companies beginning after December 31, 2007.

SEC. 209. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES OF 
              NONRESIDENTS NOT CITIZENS.

    (a) In General.--Paragraph (3) of section 2105(d) (relating to 
stock in a RIC) is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to decedents dying after December 31, 2007.

SEC. 210. QUALIFIED INVESTMENT ENTITIES.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 2008.

SEC. 211. QUALIFIED CONSERVATION CONTRIBUTIONS.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Contributions by Corporate Farmers and Ranchers.--Clause (iii) 
of section 170(b)(2)(B) (relating to termination) is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2009''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2007.

                   TITLE III--BUSINESS TAX PROVISIONS

SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

    (a) Extension.--Section 41(h) (relating to termination) is 
amended--
            (1) by striking ``December 31, 2007'' and inserting 
        ``December 31, 2009'' in paragraph (1)(B),
            (2) by redesignating paragraph (2) as paragraph (3), and
            (3) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Termination of alternative incremental credit.--No 
        election under subsection (c)(4) shall apply to amounts paid or 
        incurred after December 31, 2007.''.
    (b) Modification of Alternative Simplified Credit.--Paragraph 
(5)(A) of section 41(c) (relating to election of alternative simplified 
credit) is amended to read as follows:
                    ``(A) In general.--
                            ``(i) Calculation of credit.--At the 
                        election of the taxpayer, the credit determined 
                        under subsection (a)(1) shall be equal to the 
                        applicable percentage (as defined in clause 
                        (ii)) of so much of the qualified research 
                        expenses for the taxable year as exceeds 50 
                        percent of the average qualified research 
                        expenses for the 3 taxable years preceding the 
                        taxable year for which the credit is being 
                        determined.
                            ``(ii) Applicable percentage.--For purposes 
                        of the calculation under clause (i), the 
                        applicable percentage is--
                                    ``(I) 14 percent, in the case of 
                                taxable years ending before January 1, 
                                2009, and
                                    ``(II) 16 percent, in the case of 
                                taxable years beginning after December 
                                31, 2008.''.
    (c) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) 
(relating to special rule) is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2009''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2007.

SEC. 302. NEW MARKETS TAX CREDIT.

    Subparagraph (D) of section 45D(f)(1) (relating to national 
limitation on amount of investments designated) is amended by striking 
``and 2008'' and inserting ``2008, and 2009''.

SEC. 303. SUBPART F EXCEPTION FOR ACTIVE FINANCING INCOME.

    (a) Exempt Insurance Income.--Paragraph (10) of section 953(e) 
(relating to application) is amended--
            (1) by striking ``January 1, 2009'' and inserting ``January 
        1, 2010'', and
            (2) by striking ``December 31, 2008'' and inserting 
        ``December 31, 2009''.
    (b) Exception to Treatment as Foreign Personal Holding Company 
Income.--Paragraph (9) of section 954(h) (relating to application) is 
amended by striking ``January 1, 2009'' and inserting ``January 1, 
2010''.

SEC. 304. EXTENSION OF LOOK-THRU RULE FOR RELATED CONTROLLED FOREIGN 
              CORPORATIONS.

    (a) In General.--Subparagraph (B) of section 954(c)(6) (relating to 
application) is amended by striking ``January 1, 2009'' and inserting 
``January 1, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of foreign corporations beginning after December 31, 
2007, and to taxable years of United States shareholders with or within 
which such taxable years of foreign corporations end.

SEC. 305. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR 
              QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED RESTAURANT 
              IMPROVEMENTS.

    (a) In General.--Clauses (iv) and (v) of section 168(e)(3)(E) 
(relating to 15-year property) are each amended by striking ``January 
1, 2008'' and inserting ``January 1, 2010''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007.

SEC. 306. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
              INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2007.

SEC. 307. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS 
              OF BOOK INVENTORY.

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

SEC. 308. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO 
              CONTROLLING EXEMPT ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received or accrued after December 31, 2007.

SEC. 309. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING CHARITABLE 
              CONTRIBUTIONS OF PROPERTY.

    (a) In General.--The last sentence of section 1367(a)(2) (relating 
to decreases in basis) is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2007.

SEC. 310. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX TO PUERTO 
              RICO AND THE VIRGIN ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2008'' and inserting ``January 1, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after December 31, 
2007.

SEC. 311. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH 
              BENEFITS.

    (a) In General.--Subsection (f) of section 9812 (relating to 
application of section) is amended--
            (1) by striking ``and'' at the end of paragraph (2),
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``, and before the date of the enactment of the 
        Alternative Minimum Tax and Extenders Tax Relief Act of 2008, 
        and'', and
            (3) by adding at the end the following new paragraph:
            ``(4) after December 31, 2009.''.
    (b) Amendment to the Employee Retirement Income Security Act of 
1974.--Section 712(f) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1185a(f)) is amended by inserting ``, and before the 
date of the enactment of the Alternative Minimum Tax and Extenders Tax 
Relief Act of 2008, and after December 31, 2009'' after ``December 31, 
2007''.
    (c) Amendment to the Public Health Service Act.--Section 2705(f) of 
the Public Health Service Act (42 U.S.C. 300gg-5(f)) is amended by 
inserting ``, and before the date of the enactment of the Alternative 
Minimum Tax and Extenders Tax Relief Act of 2008, and after December 
31, 2009'' after ``December 31, 2007''.
    (d) Effective Date.--The amendments made by this section shall 
apply to benefits for services furnished on or after the date of the 
enactment of this Act.

SEC. 312. EXTENSION OF ECONOMIC DEVELOPMENT CREDIT FOR AMERICAN SAMOA.

    (a) In General.--Subsection (d) of section 119 of division A of the 
Tax Relief and Health Care Act of 2006 is amended--
            (1) by striking ``first two taxable years'' and inserting 
        ``first 4 taxable years'', and
            (2) by striking ``January 1, 2008'' and inserting ``January 
        1, 2010''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 313. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

    Section 45N(e) (relating to termination) is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 314. EXTENSION OF ELECTION TO EXPENSE ADVANCED MINE SAFETY 
              EQUIPMENT.

    Section 179E(g) (relating to termination) is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 315. EXTENSION OF EXPENSING RULES FOR QUALIFIED FILM AND 
              TELEVISION PRODUCTIONS.

    Section 181(f) (relating to termination) is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 316. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE TO 
              DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) (relating to 
termination) is amended--
            (1) by striking ``first 2 taxable years'' and inserting 
        ``first 4 taxable years'', and
            (2) by striking ``January 1, 2008'' and inserting ``January 
        1, 2010''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

SEC. 317. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) In General.--Paragraph (1) of section 1397E(e) is amended by 
striking ``and 2007'' and inserting ``2007, 2008, and 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.

SEC. 318. INDIAN EMPLOYMENT CREDIT.

    (a) In General.--Subsection (f) of section 45A (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

SEC. 319. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON INDIAN 
              RESERVATION.

    (a) In General.--Paragraph (8) of section 168(j) (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2007.

SEC. 320. RAILROAD TRACK MAINTENANCE.

    (a) In General.--Subsection (f) of section 45G (relating to 
application of section) is amended by striking ``January 1, 2008'' and 
inserting ``January 1, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred during taxable years beginning after 
December 31, 2007.

SEC. 321. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS RACING TRACK 
              FACILITY.

    (a) In General.--Subparagraph (D) of section 168(i)(15) (relating 
to termination) is amended to read as follows:
                    ``(D) Application of paragraph.--Such term shall 
                apply to property placed in service after the date of 
                the enactment of the Alternative Minimum Tax and 
                Extenders Tax Relief Act of 2008 and before January 1, 
                2010.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

SEC. 322. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) In General.--Subsection (h) of section 198 (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred after December 31, 2007.

SEC. 323. EXTENSION OF WORK OPPORTUNITY TAX CREDIT FOR HURRICANE 
              KATRINA EMPLOYEES.

    (a) In General.--Paragraph (1) of section 201(b) of the Katrina 
Emergency Tax Relief Act of 2005 is amended by striking ``2-year'' and 
inserting ``4-year''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to individuals hired after August 27, 2007.

               TITLE IV--EXTENSIONS OF ENERGY PROVISIONS

SEC. 401. EXTENSION OF CREDIT FOR ENERGY EFFICIENT APPLIANCES.

    (a) In General.--Subsection (b) of section 45M (relating to 
applicable amount) is amended by striking ``calendar year 2006 or 
2007'' each place it appears in paragraphs (1)(A)(i), (1)(B)(i), 
(1)(C)(ii)(I), and (1)(C)(iii)(I), and inserting ``calendar year 2006, 
2007, 2008, or 2009''.
    (b) Restart of Credit Limitation.--Paragraph (1) of section 45M(e) 
(relating to aggregate credit amount allowed) is amended by inserting 
``beginning after December 31, 2007'' after ``for all prior taxable 
years''.
    (c) Effective Date.--The amendments made by this section shall 
apply to appliances produced after December 31, 2007.

SEC. 402. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) In General.--Section 25C(g) (relating to termination) is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2009''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2007.

SEC. 403. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY.

    Section 25D(g) (relating to termination) is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 404. EXTENSION OF RENEWABLE ELECTRICITY, REFINED COAL, AND INDIAN 
              COAL PRODUCTION CREDIT.

    Section 45(d) (relating to qualified facilities) is amended by 
striking ``January 1, 2009'' each place it appears in paragraphs (1), 
(2), (3), (4), (5), (6), (7), (8), (9), and (10) and inserting 
``January 1, 2010''.

SEC. 405. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

    Subsection (g) of section 45L (relating to termination) is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 406. EXTENSION OF ENERGY CREDIT.

    (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) 
of section 48(a) (relating to energy credit) are each amended by 
striking ``January 1, 2009'' and inserting ``January 1, 2010''.
    (b) Fuel Cell Property.--Subparagraph (E) of section 48(c)(1) 
(relating to qualified fuel cell property) is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2009''.
    (c) Microturbine Property.--Subparagraph (E) of section 48(c)(2) 
(relating to qualified microturbine property) is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2009''.

SEC. 407. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN RENEWABLE 
              ENERGY BONDS.

    (a) Extension.--Section 54(m) (relating to termination) is amended 
by striking ``December 31, 2008'' and inserting ``December 31, 2009''.
    (b) Increase in National Limitation.--Section 54(f) (relating to 
limitation on amount of bonds designated) is amended--
            (1) by striking ``$1,200,000,000'' in paragraph (1) and 
        inserting ``$1,600,000,000'', and
            (2) by striking ``$750,000,000'' in paragraph (2) and 
        inserting ``$1,000,000,000''.
    (c) Modification of Ratable Principal Amortization Requirement.--
            (1) In general.--Paragraph (5) of section 54(l) is amended 
        to read as follows:
            ``(5) Ratable principal amortization required.--A bond 
        shall not be treated as a clean renewable energy bond unless it 
        is part of an issue which provides for an equal amount of 
        principal to be paid by the qualified issuer during each 12-
        month period that the issue is outstanding (other than the 
        first 12-month period).''.
            (2) Technical amendment.--The third sentence of section 
        54(e)(2) is amended by striking ``subsection (l)(6)'' and 
        inserting ``subsection (l)(5)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.

SEC. 408. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.

    Section 179D(h) (relating to termination) is amended by striking 
``December 31, 2008'' and inserting ``December 31, 2009''.

                      TITLE V--TAX ADMINISTRATION

SEC. 501. PERMANENT AUTHORITY FOR UNDERCOVER OPERATIONS.

    (a) In General.--Section 7608(c) (relating to rules relating to 
undercover operations) is amended by striking paragraph (6).
    (b) Effective Date.--The amendment made by this section shall apply 
to operations conducted after the date of the enactment of this Act.

SEC. 502. PERMANENT DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.

    (a) Disclosures To Facilitate Combined Employment Tax Reporting.--
            (1) In general.--Section 6103(d)(5) (relating to disclosure 
        for combined employment tax reporting) is amended--
                    (A) by striking ``reporting'' in the heading 
                thereof and all that follows through ``The Secretary'' 
                in subparagraph (A) and inserting ``reporting.--The 
                Secretary'', and
                    (B) by striking subparagraph (B).
            (2) Effective date.--The amendments made by this subsection 
        shall apply to disclosures after the date of the enactment of 
        this Act.
    (b) Disclosures Relating to Certain Programs Administered by the 
Department of Veterans Affairs.--
            (1) In general.--Section 6103(l)(7)(D) (relating to 
        programs to which rule applies) is amended by striking the last 
        sentence.
            (2) Technical amendment.--Section 6103(l)(7)(D)(viii)(III) 
        is amended by striking ``sections 1710(a)(1)(I), 1710(a)(2), 
        1710(b), and 1712(a)(2)(B)'' and inserting ``sections 
        1710(a)(2)(G), 1710(a)(3), and 1710(b)''.

SEC. 503. DISCLOSURE OF INFORMATION RELATING TO TERRORIST ACTIVITIES.

    (a) Disclosure of Return Information to Apprise Appropriate 
Officials of Terrorist Activities.--Clause (iv) of section 
6103(i)(3)(C) (relating to termination) is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2009''.
    (b) Disclosure Upon Request of Information Relating to Terrorist 
Activities.--Subparagraph (E) of section 6103(i)(7) (relating to 
termination) is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disclosures after the date of the enactment of this Act.
                                 <all>