1.
(a)This Act may be cited
as the Energy Independence and Tax
Relief 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 I—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.
Sec. 106. New clean renewable energy bonds.
Part
II—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. Restructuring of New York Liberty Zone tax
credits.
Sec. 127. Transportation fringe benefit to bicycle
commuters.
Sec. 128. Alternative fuel vehicle refueling property
credit.
Subtitle C—Energy conservation and efficiency
provisions
Sec. 141. Qualified energy conservation bonds.
Sec. 142. Credit for nonbusiness energy property.
Sec. 143. Energy efficient commercial buildings
deduction.
Sec. 144. Modifications of energy efficient appliance credit
for appliances produced after 2007.
Sec. 145. Accelerated recovery period for depreciation of smart
meters and smart grid systems.
Sec. 146. Qualified green building and sustainable design
projects.
TITLE II—One-year extension of temporary provisions
Subtitle A—Alternative minimum tax
Sec. 201. Extension of alternative minimum tax relief for
nonrefundable personal credits.
Sec. 202. Extension of increased alternative minimum tax
exemption amount.
Sec. 203. Increase of AMT refundable credit amount for
individuals with long-term unused credits for prior year minimum tax liability,
etc.
Subtitle B—Extensions Primarily Affecting
Individuals
Sec. 211. Deduction for State and local sales
taxes.
Sec. 212. Deduction of qualified tuition and related
expenses.
Sec. 213. Treatment of certain dividends of regulated
investment companies.
Sec. 214. Tax-free distributions from individual retirement
plans for charitable purposes.
Sec. 215. Deduction for certain expenses of elementary and
secondary school teachers.
Sec. 216. Stock in RIC for purposes of determining estates of
nonresidents not citizens.
Sec. 217. Qualified investment entities.
Sec. 218. Exclusion of amounts received under qualified group
legal services plans.
Subtitle C—Extensions Primarily Affecting
Businesses
Sec. 221. Extension and modification of research
credit.
Sec. 222. Indian employment credit.
Sec. 223. New markets tax credit.
Sec. 224. Railroad track maintenance.
Sec. 225. Extension of mine rescue team training
credit.
Sec. 226. Extension of 15-year straight-line cost recovery for
qualified leasehold improvements and qualified restaurant improvements; 15-year
straight-line cost recovery for certain improvements to retail
space.
Sec. 227. Seven-year cost recovery period for motorsports
racing track facility.
Sec. 228. Accelerated depreciation for business property on
Indian reservation.
Sec. 229. Extension of election to expense advanced mine safety
equipment.
Sec. 230. Expensing of environmental remediation
costs.
Sec. 231. Deduction allowable with respect to income
attributable to domestic production activities in Puerto Rico.
Sec. 232. Modification of tax treatment of certain payments to
controlling exempt organizations.
Sec. 233. Qualified zone academy bonds.
Sec. 234. Tax incentives for investment in the District of
Columbia.
Sec. 235. Economic development credit for American
Samoa.
Sec. 236. Enhanced charitable deduction for contributions of
food inventory.
Sec. 237. Enhanced charitable deduction for contributions of
book inventory to public schools.
Sec. 238. Enhanced deduction for qualified computer
contributions.
Sec. 239. Basis adjustment to stock of S corporations making
charitable contributions of property.
Sec. 240. Work opportunity tax credit for Hurricane Katrina
employees.
Sec. 241. Subpart F exception
for active financing income.
Sec. 242. Look-thru rule for related controlled foreign
corporations.
Sec. 243. Expensing for certain qualified film and television
productions.
Sec. 244. Extension and modification of duty suspension on wool
products; wool research fund; wool duty refunds.
Subtitle D—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 relief
Subtitle A—Individual tax relief
Sec. 301. Additional standard deduction for real property taxes
for nonitemizers.
Sec. 302. $10,000 income threshold used to calculate refundable
portion of child tax credit.
Sec. 303. Income averaging for amounts received in connection
with the Exxon Valdez litigation.
Subtitle B—Business related provisions
Sec. 311. Uniform treatment of attorney-advanced expenses and
court costs in contingency fee cases.
Sec. 312. Provisions related to film and television
productions.
Sec. 313. Modification of rate of excise tax on certain wooden
arrows designed for use by children.
Subtitle C—Modification of penalty on understatement of
taxpayer’s liability by tax return preparer
Sec. 321. Modification of penalty on understatement of
taxpayer’s liability by tax return preparer.
Subtitle D—Extension and expansion of certain GO Zone
incentives
Sec. 331. Certain GO Zone incentives.
Subtitle E—Other provisions
Sec. 341. Secure rural schools and community self-determination
program.
Sec. 342. Clarification of uniform definition of
child.
TITLE IV—Revenue Provisions
Sec. 401. Nonqualified deferred compensation from certain tax
indifferent parties.
Sec. 402. Delay in application of
worldwide allocation of interest.
Sec. 403. Time for payment of corporate estimated
taxes.
<enum>I</enum><header>Energy tax
incentives</header>
<subtitle id="H2BC5CFE43CA14E149E01F4F772ABAAEF"><enum>A</enum><header>Energy production
incentives</header>
<part id="H227B3F5A082B4A329FF074AD4C8C9FA7"><enum>I</enum><header>Renewable energy
incentives</header>
<section id="H9FAC906BFDA94EACA54956642D001D00"><enum>101.</enum><header>Renewable
energy credit</header>
<subsection id="H60199794A5ED44AC90BFC8959D6B7C46"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="H072CB6DEB58F4FD5B59C9CBAF4ACF586"><enum>(1)</enum><header>1-year extension
for wind facilities</header><text>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 id="HC34633285F96487CA98F8454FFDF58EB"><enum>(2)</enum><header>3-year extension
for certain other facilities</header><text>Each of the following provisions of
section 45(d) is amended by striking <quote>January 1, 2009</quote> and
inserting <quote>January 1, 2012</quote>:</text>
<subparagraph id="H65868BCD719446829283A0A76500F600"><enum>(A)</enum><text>Clauses (i) and
(ii) of paragraph (2)(A).</text>
</subparagraph><subparagraph id="H07262F9457EA434F9319FF7FF89E1833"><enum>(B)</enum><text>Clauses (i)(I) and
(ii) of paragraph (3)(A).</text>
</subparagraph><subparagraph id="H2D1266268FBF46F9A23D54424C321D23"><enum>(C)</enum><text>Paragraph
(4).</text>
</subparagraph><subparagraph id="H23E291F2932D4F7E8C656BD6FAB98864"><enum>(D)</enum><text>Paragraph
(5).</text>
</subparagraph><subparagraph id="H5578BA0E2F74442997E3BFF1BDFC90D3"><enum>(E)</enum><text>Paragraph
(6).</text>
</subparagraph><subparagraph id="HCF65868440A144CDB0A3C8D7F01264E"><enum>(F)</enum><text>Paragraph
(7).</text>
</subparagraph><subparagraph id="H07071D3A9C614E278CAE27E8D700382D"><enum>(G)</enum><text>Subparagraphs (A)
and (B) of paragraph (9).</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HF9E75D44AA4D491FA300ED47867FF915"><enum>(b)</enum><header>Modification of
Credit Phaseout</header>
<paragraph id="H8D1F4C3A9C984D0FA66C3EAB1FEE87BE"><enum>(1)</enum><header>Repeal of
phaseout</header><text>Subsection (b) of section 45 is amended—</text>
<subparagraph id="H05FDC013A91B4E04BB07AA9800996800"><enum>(A)</enum><text>by striking
paragraph (1), and</text>
</subparagraph><subparagraph id="H3761326851CE4484B16206FAC91627F"><enum>(B)</enum><text>by striking
<quote>the 8 cent amount in paragraph (1),</quote> in paragraph (2)
thereof.</text>
</subparagraph></paragraph><paragraph id="H9A468D122EA940A3ADF9AF4DFE73C996"><enum>(2)</enum><header>Limitation based
on investment in facility</header><text>Subsection (b) of section 45 is amended
by inserting before paragraph (2) the following new paragraph:</text>
<quoted-block id="H0D95A551B1E444B88729B92650714140" style="OLC">
<paragraph id="HCAA7C45C30194A92A4CDA05FC009403"><enum>(1)</enum><header>Limitation based
on investment in facility</header>
<subparagraph id="H28309F1E6173411486E255C939CEDBEC"><enum>(A)</enum><header>In
general</header><text>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 id="H3289E84F2EBB4D25BE387DDAB36856D7"><enum>(i)</enum><text>the applicable
percentage with respect to such facility, multiplied by</text>
</clause><clause id="H4AF894B687C2452698F4D0C755DECFE"><enum>(ii)</enum><text>the eligible basis
of such facility.</text>
</clause></subparagraph><subparagraph id="H3F2451DBB0CA42758D5982898C95E248"><enum>(B)</enum><header>Carryforward of
unused limitation and excess credit</header>
<clause id="H832CADAD2B10480B9F55D2615EE8853"><enum>(i)</enum><header>Unused
limitation</header><text>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 id="H43DFD4CFFD674297BF60985800907ECA"><enum>(ii)</enum><header>Excess
credit</header><text>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 id="HFAF656458EBC4A0A94D02F7D00394CD4"><enum>(iii)</enum><header>Prelimitation
credit</header><text>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 id="HDDDC48F3A930436BB5C2DC85D004AD38"><enum>(C)</enum><header>Applicable
percentage</header><text>For purposes of this paragraph—</text>
<clause id="H00FC8F0C0D994BA3ADC1F3DE9D444648"><enum>(i)</enum><header>In
general</header><text>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 id="H938ED883588146580085C80981EC105D"><enum>(ii)</enum><header>Method of
prescribing applicable percentages</header><text>The applicable percentages
prescribed by the Secretary for any month under clause (i) shall be percentages
which yield 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 id="HE07BB388B60C4287AA2B27FCA6C8AEDA"><enum>(iii)</enum><header>Method of
discounting</header><text>The present value under clause (ii) shall be
determined—</text>
<subclause id="H098511FD9FF04B14AE4D58FC37FA812D"><enum>(I)</enum><text>as of the last day
of the 1st year of the 10-year period referred to in clause (ii),</text>
</subclause><subclause id="H4E598C83B432446DB5A5422FC6DDE2A3"><enum>(II)</enum><text>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 id="H5F41DE17B3B742E7A07708CA5C2B60E8"><enum>(III)</enum><text>by taking into
account the limitation under subparagraph (A) for any year on the last day of
such year.</text>
</subclause></clause></subparagraph><subparagraph id="HF200C72D142B407CB59887513EEBBBD4"><enum>(D)</enum><header>Eligible
basis</header><text>For purposes of this paragraph—</text>
<clause id="H48057D93652D49C7A4E7CC45A4C0691B"><enum>(i)</enum><header>In
general</header><text>The term <quote>eligible basis</quote> means, with
respect to any facility, the sum of—</text>
<subclause id="H59E6AAA809AD4BD28000BDF2DAB5E4B8"><enum>(I)</enum><text>the basis of such
facility determined as of the time that such facility is originally placed in
service, and</text>
</subclause><subclause id="H491BCF0DBEB84F4E8E799B48062B1757"><enum>(II)</enum><text>the portion of
the basis of any shared qualified property which is properly allocable to such
facility under clause (ii).</text>
</subclause></clause><clause id="H8571CBCEE14443448748AEF87EAE041E"><enum>(ii)</enum><header>Rules for
allocation</header><text>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 id="HA28827DF8F8E4A09B2025B4B0059CFAA"><enum>(iii)</enum><header>Shared
qualified property</header><text>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 id="H78871E5F28DC403EBBC32B7BF1AAF468"><enum>(I)</enum><text>which a qualified
facility will require for utilization of such facility, and</text>
</subclause><subclause id="H426476B1A2AD4C8B9F54111E9300A026"><enum>(II)</enum><text>which is not a
qualified facility.</text>
</subclause></clause><clause id="H4473E9DA0CA345BAAE5268E9C439F9C8"><enum>(iv)</enum><header>Special rule
relating to geothermal facilities</header><text>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 id="H4BE05E99774348D8A5AF92BBBF0009B2"><enum>(E)</enum><header>Special rule for
first and last year of credit period</header><text>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 id="HCC3DA134F0C74A6A8FD2E6DE6F7279F1"><enum>(F)</enum><header>Election to
treat all facilities placed in service in a year as 1 facility</header><text>At
the election of the taxpayer, all qualified facilities which are part of the
same project and which are placed in service during the same calendar year
shall be treated for purposes of this section as 1 facility which is 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 id="H34794F7B56E5418B94CCB6B49FB7DBD"><enum>(c)</enum><header>Trash facility
clarification</header><text>Paragraph (7) of section 45(d) is amended—</text>
<paragraph id="H4E7E893B1D7B4FFAA41063D12245F9BD"><enum>(1)</enum><text>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 id="H8B7084AD30684BF4B7F5FD874987EB00"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="H70E162CC85BC4ED3B840904EBCD05257"><enum>(d)</enum><header>Expansion of
biomass facilities</header>
<paragraph id="HDCF05C5740D94BB9B83E38ED8F8DD2E8"><enum>(1)</enum><header>Open-loop
biomass facilities</header><text>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="H1D29EEDE4A57449400D0CCE3F850AF00" style="OLC">
<subparagraph id="H184DCA100941430DA9D57D8EEC5D0236"><enum>(B)</enum><header>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 id="HFBB344FE28F044609C29644BCF00EF09"><enum>(2)</enum><header>Closed-loop
biomass facilities</header><text>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="HA814328FA1D5454281144BDEC008173" style="OLC">
<subparagraph id="HAA5F88E8962D4AA6AB83913E11F4513B"><enum>(B)</enum><header>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" id="H89FCA9F0CC864D21BEB6DABB84E487CE"><enum>(e)</enum><header>Sales of net
electricity to regulated public utilities treated as sales to unrelated
persons</header><text>Paragraph (4) of section 45(e) is amended by adding at
the end the following new sentence: <quote>The net amount of electricity sold
by any taxpayer to a regulated public utility (as defined in section
7701(a)(33)) shall be treated as sold to an unrelated person.</quote>.</text>
</subsection><subsection id="H873FD2DB1D094A0F9FA0D428001FDBA"><enum>(f)</enum><header>Modification of
rules for hydropower production</header><text>Subparagraph (C) of section
45(c)(8) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H913573B4D5F341D1BEEFD768481297C" style="OLC">
<subparagraph id="H56B9A2B460A54FB294D52BAEE76991C0"><enum>(C)</enum><header>Nonhydroelectric
dam</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A), a facility is described in this subparagraph if—</text>
<clause id="H1E69A39A40A3496D98CBA43463991EF1"><enum>(i)</enum><text>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 id="H91022BFFE404442282F88537FF4CFA2E"><enum>(ii)</enum><text>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 id="H7CA1DB9FE3E94BC39661118F6BA9C8A7"><enum>(iii)</enum><text>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 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 id="H18231907CB4C4A0681EC200028F2EFB6"><enum>(g)</enum><header>Effective
date</header>
<paragraph id="HB1E48F15F42C43E5B3267FF5625494FD"><enum>(1)</enum><header>In
general</header><text>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 id="HA16EB775B38F456A8856FC938809E7E4"><enum>(2)</enum><header>Repeal of credit
phaseout</header><text>The amendments made by subsection (b)(1) shall apply to
taxable years ending after December 31, 2008.</text>
</paragraph><paragraph id="H7A6887F52E58485CA518760085B3DB68"><enum>(3)</enum><header>Limitation based
on investment in facility</header><text>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="H1D4DD5FC3F684C779D39011EF7F2B11"><enum>(4)</enum><header>Trash facility
clarification; sales to related regulated public utilities</header><text>The
amendments made by subsections (c) and (e) shall apply to electricity produced
and sold after the date of the enactment of this Act.</text>
</paragraph><paragraph id="H97450CA9071640E0936D5B44903E8B7C"><enum>(5)</enum><header>Expansion of
biomass facilities</header><text>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 display-inline="no-display-inline" id="H0114C8F49D044243BCE46F84970087E2" section-type="subsequent-section"><enum>102.</enum><header>Production credit
for electricity produced from marine renewables</header>
<subsection id="HABA000F32B1B45C0BC0745FB2476FD45"><enum>(a)</enum><header>In
general</header><text>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="H620BA7E517CA45429485ADA3BF7B7C73" style="OLC">
<subparagraph id="H1D58B25270B24DF58B5D7E7D5785DF23"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable
energy.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H8A3BEC43333E4FE39203F13649DACAB"><enum>(b)</enum><header>Marine
renewables</header><text>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="HA4A1CE9A49964D80A9002E869F5C4C00" style="OLC">
<paragraph commented="no" id="H26AB21C9405F4E41A9827F68C5AC3300"><enum>(10)</enum><header>Marine and
hydrokinetic renewable energy</header>
<subparagraph id="H14C78BF9E1B7413A9C6E49CE1421B74B"><enum>(A)</enum><header>In
general</header><text>The term <term>marine and hydrokinetic renewable
energy</term> means energy derived from—</text>
<clause display-inline="no-display-inline" id="H42D58B2A5A3C4744A837779710706235"><enum>(i)</enum><text>waves, tides, and
currents in oceans, estuaries, and tidal areas,</text>
</clause><clause id="HEC0AC1679A4A4962A92D5D689ED8A324"><enum>(ii)</enum><text>free flowing
water in rivers, lakes, and streams,</text>
</clause><clause id="HAB470988A6CA4AD382C49DAF47140048"><enum>(iii)</enum><text>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 id="H8A407083626346B7B79CBD951116D951"><enum>(iv)</enum><text>differentials in
ocean temperature (ocean thermal energy conversion).</text>
</clause></subparagraph><subparagraph id="H5F9C0733EE994283953CABD2F220026"><enum>(B)</enum><header>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 id="HDC080883D1D14822920069CC53F1F28"><enum>(c)</enum><header>Definition of
facility</header><text>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="H2C2EF36BC5184D2090EC881E3D24E5D8" style="OLC">
<paragraph id="HBE29E086212F4EFBB36D01C6DF48239"><enum>(11)</enum><header>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 id="HC1C9E7523E1B458BB6FC9F3270A173FD"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at
least 150 kilowatts, and</text>
</subparagraph><subparagraph id="HCA736F1CABEE48FAA0FC3C25875DBA0"><enum>(B)</enum><text>which is originally
placed in service on or after the date of the enactment of this paragraph and
before January 1,
2012.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H39CCE961D5394E739B94BF3D6EB31FF6"><enum>(d)</enum><header>Credit
rate</header><text>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" id="H5ED11E6395AB45798F709C43B69B01BB"><enum>(e)</enum><header>Coordination
with small irrigation power</header><text>Paragraph (5) of section 45(d), as
amended by section 101, is amended by striking <quote>January 1, 2012</quote>
and inserting <quote>the date of the enactment of paragraph
(11)</quote>.</text>
</subsection><subsection id="H4D4194274BC84897B678311F49188FA8"><enum>(f)</enum><header>Effective
date</header><text>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 display-inline="no-display-inline" id="H9BC4ADD318884240A300FD5793521337"><enum>103.</enum><header>Energy
credit</header>
<subsection id="HEC77645A5EE64335A3BCA47B84AA5E"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="H4B93E781DDFA47E8A4AE855FAA1946AD"><enum>(1)</enum><header>Solar energy
property</header><text>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, 2015</quote>.</text>
</paragraph><paragraph id="H634D66048FC946338FE146E6712F177D"><enum>(2)</enum><header>Fuel cell
property</header><text>Subparagraph (E) of section 48(c)(1) is amended by
striking <quote>December 31, 2008</quote> and inserting <quote>December 31,
2014</quote>.</text>
</paragraph><paragraph commented="no" id="HF3D52BBD60B04D9B98E501287979B900"><enum>(3)</enum><header>Microturbine
property</header><text>Subparagraph (E) of section 48(c)(2) is amended by
striking <quote>December 31, 2008</quote> and inserting <quote>December 31,
2014</quote>.</text>
</paragraph></subsection><subsection id="HB45D0813B48046D68D60F40900406526"><enum>(b)</enum><header>Allowance of
energy credit against alternative minimum tax</header><text>Subparagraph (B) of
section 38(c)(4) is amended by striking <quote>and</quote> at the end of clause
(iii), by redesignating clause (iv) as clause (v), and by inserting after
clause (iii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H585167CE44ED4E86946978777609A6BA" style="OLC">
<clause id="H03D89A0F567B4E9CB870AB04F8BC67A6"><enum>(iv)</enum><text>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>
</subsection><subsection display-inline="no-display-inline" id="HF54C860AC7FC4CFE9DE644F4D2DDB8BB"><enum>(c)</enum><header>Energy credit
for combined heat and power system property</header>
<paragraph id="H4767C6A7C2804C13B74C9CBDFD751ED1"><enum>(1)</enum><header>In
general</header><text>Section 48(a)(3)(A) (defining energy property) 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 id="HCFFE7F3748714BD097DA3C0941FFDFB5" style="OLC">
<clause id="HBC7D3A49B3DB4F87838D51F7B300BFF4"><enum>(v)</enum><text>combined heat and
power system
property,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H154CDAE852A84F61B105D6E969326D00"><enum>(2)</enum><header>Combined Heat
and Power System Property</header><text>Section 48 is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HA44773243F6D459B8F9D188E1C7F5561" style="OLC">
<subsection id="H27D105E9C19B4DB79BFEB5BFD5543392"><enum>(d)</enum><header>Combined Heat
and Power System Property</header><text>For purposes of subsection
(a)(3)(A)(v)—</text>
<paragraph id="H78BBAD672BB44851BBCD337377E6DF05"><enum>(1)</enum><header>Combined heat
and power system property</header><text>The term <term>combined heat and power
system property</term> means property comprising a system—</text>
<subparagraph id="H44ACB20F78024F32A760B22887F84147"><enum>(A)</enum><text>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>
</subparagraph><subparagraph id="H7D5BDEE69E334BE5AEE6D7FCDB291B67"><enum>(B)</enum><text>which
produces—</text>
<clause id="H7C726E84194E4130A133CFDF52774C1"><enum>(i)</enum><text>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>
</clause><clause id="H507B84FEA91743BCB5E213FFAC009D46"><enum>(ii)</enum><text>at least 20
percent of its total useful energy in the form of electrical or mechanical
power (or combination thereof),</text>
</clause></subparagraph><subparagraph id="HA0997655823B40A59CE116ADAED2397F"><enum>(C)</enum><text>the energy
efficiency percentage of which exceeds 60 percent, and</text>
</subparagraph><subparagraph id="H47501F139B354873B19ECCC17681BCC7"><enum>(D)</enum><text>which is placed in
service before January 1, 2015.</text>
</subparagraph></paragraph><paragraph id="H3B64F244DEB3424D8BDC4496DEEBD4CA"><enum>(2)</enum><header>Limitation</header>
<subparagraph id="HAC52D6A6EE9A4959AD9C6B9BE5F20610"><enum>(A)</enum><header>In
general</header><text>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>
</subparagraph><subparagraph id="HC5AC95D1BCAB4726885CCE5DEA560192"><enum>(B)</enum><header>Applicable
capacity</header><text>For purposes of subparagraph (A), 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>
</subparagraph><subparagraph id="H8D94049E0FD449BFBEDE65D9B355E508"><enum>(C)</enum><header>Maximum
capacity</header><text>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>
</subparagraph></paragraph><paragraph id="H4A729B6A14814A9200CC06762FB48E72"><enum>(3)</enum><header>Special
rules</header>
<subparagraph id="H001066A9D611439B915DD19B739073EB"><enum>(A)</enum><header>Energy
efficiency percentage</header><text>For purposes of this subsection, the energy
efficiency percentage of a system is the fraction—</text>
<clause id="HF0D18DF1AB7F45D685B1F9B4B2B4BE3"><enum>(i)</enum><text>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>
</clause><clause id="H34FFFF5C317448DDB3A11D7BF9179418"><enum>(ii)</enum><text>the denominator
of which is the lower heating value of the fuel sources for the system.</text>
</clause></subparagraph><subparagraph id="H598A19FCE5BA4FF2BF37A908FB115D7"><enum>(B)</enum><header>Determinations
made on btu basis</header><text>The energy efficiency percentage and the
percentages under paragraph (1)(B) shall be determined on a Btu basis.</text>
</subparagraph><subparagraph id="H30B320081B944BD6B292B8A800DD9238"><enum>(C)</enum><header>Input and output
property not included</header><text>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>
</subparagraph></paragraph><paragraph id="H990D1761EB2A4C5DA671618425095BE8"><enum>(4)</enum><header>Systems using
biomass</header><text>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>
<subparagraph id="H4B33024AB00F4330AFAA2C081391B240"><enum>(A)</enum><text>paragraph (1)(C)
shall not apply, but</text>
</subparagraph><subparagraph id="HF085757680ED48288595A4BFE05B5BE9"><enum>(B)</enum><text>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 paragraph) as the energy efficiency
percentage of such system bears to 60
percent.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H1C7CEFA059A24F16A6282E9B6CA700C8"><enum>(d)</enum><header>Increase of
credit limitation for fuel cell property</header><text>Subparagraph (B) of
section 48(c)(1) is amended by striking <quote>$500</quote> and inserting
<quote>$1,500</quote>.</text>
</subsection><subsection id="H44EF655636604B35AC76037CA2FF5154"><enum>(e)</enum><header>Public utility
property taken into account</header>
<paragraph id="H340478ED5C504ABFB762AC226EEB08A7"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 48(a) is amended by striking the
second sentence thereof.</text>
</paragraph><paragraph id="H9F9A7A9928CD471D98D7931001566BEF"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="HCA5E5463BF2B4307A4E730959B6FEC32"><enum>(A)</enum><text>Paragraph (1) of
section 48(c) is amended by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).</text>
</subparagraph><subparagraph id="H4B5692FDE17B4EC083A376EC73D85E7C"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c) is amended
by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph
(D).</text>
</subparagraph></paragraph></subsection><subsection id="H9A685C8E85FF470ABC2E82FA4BEE95B"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="H9F63004F6F4B4D259DFE200E1669C45"><enum>(1)</enum><header>In
general</header><text>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 id="HBA20D7B098E8471DB42EF21FDEC9AAEF"><enum>(2)</enum><header>Allowance
against alternative minimum tax</header><text>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 id="HB6F77140FC3C430D9478C44988CFDEC4"><enum>(3)</enum><header>Combined heat
and power and fuel cell property</header><text>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 id="HADB27085C1714D27B0EE675D85C5D1E8"><enum>(4)</enum><header> 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 display-inline="no-display-inline" id="H5ED789E7E8984A7B98387E05F95EF1FB" section-type="subsequent-section"><enum>104.</enum><header>Credit for
residential energy efficient property</header>
<subsection id="H0AE8EBEDC3BA472EBB419F76F6251599"><enum>(a)</enum><header>Extension</header><text>Section
25D(g) is amended by striking <quote>December 31, 2008</quote> and inserting
<quote>December 31, 2014</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HB3844B98040B4DF6BF8855F000F700A6"><enum>(b)</enum><header>Maximum credit
for solar electric property</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAC9CDC73A45246538FECA973584E00FC"><enum>(1)</enum><header>In
general</header><text>Section 25D(b)(1)(A) is amended by striking
<quote>$2,000</quote> and inserting <quote>$4,000</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H983C1D96F07E41B5A38188A0080082B5"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 25D(e)(4)(A)(i) is amended by striking
<quote>$6,667</quote> and inserting <quote>$13,333</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H11E916D254AA4139BB7E7C47EC1EE261"><enum>(c)</enum><header>Credit for
residential wind property</header>
<paragraph commented="no" id="HAD4B1A14BB8D44CE9C43EC37377F6CA9"><enum>(1)</enum><header>In
general</header><text>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="H1C63D35F3DE14421002577EA4BE5FC59" style="OLC">
<paragraph id="HE47A7AA58C0343D59B6F633F86CE8C74"><enum>(4)</enum><text>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" id="HE78EF330A0F9466699F5BD6F54B3DFD7"><enum>(2)</enum><header>Limitation</header><text>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="HCD446BBFB5C84960B7C9CBDE5E083DA3" style="OLC">
<subparagraph id="HB5C81CF3ABE444D3A076573B00F8E890"><enum>(D)</enum><text>$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" id="HB815A3F98DE94DD9970072705F705FDE"><enum>(3)</enum><header>Qualified small
wind energy property expenditures</header>
<subparagraph commented="no" id="HD24C6FA01FA34D1CA640F9741434ECB"><enum>(A)</enum><header>In
general</header><text>Section 25D(d) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H7886019951BF42469D2F49FEE6E4DFB8" style="OLC">
<paragraph id="H10ECE916613841E49E756326BA267F95"><enum>(4)</enum><header>Qualified small
wind energy property expenditure</header><text>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" id="H8ADA5F095229490EA4447FCF6C1F0051"><enum>(B)</enum><header>No double
benefit</header><text>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" id="H620566E0C5DA43B290D73D5233C38C92"><enum>(4)</enum><header>Maximum
expenditures in case of joint occupancy</header><text>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="H5A0CF040496241CA000000DBF404502F" style="OLC">
<clause commented="no" id="H706DF7D37CF048DFA9B6A1EDFABC21E"><enum>(iv)</enum><text>$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 id="H11ED1E8DEE464E20B615536094D8BE2B"><enum>(d)</enum><header>Credit for
geothermal heat pump systems</header>
<paragraph commented="no" id="H75450415236441238F99DF0049AA0086"><enum>(1)</enum><header>In
general</header><text>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="HDB01C5B6FDBA41C500904C656431B339" style="OLC">
<paragraph id="H955CCC033A9C4BE4B14B98F3B286257"><enum>(5)</enum><text>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" id="HED3CEFFA513549F2B245F1B66F5B6344"><enum>(2)</enum><header>Limitation</header><text>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="H96C04EFC50274504AFBAC597C30E3D8" style="OLC">
<subparagraph id="H217A406B52BF4CC4BC09B3DD37005368"><enum>(E)</enum><text>$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" id="H74637E4AECBD4B7D9919B967008EF184"><enum>(3)</enum><header>Qualified
geothermal heat pump property expenditure</header><text>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="H1711CFBB11954553B054A627D28BFDEF" style="OLC">
<paragraph id="HEAC45F0A9C924046A7B6ECB5C5F424C5"><enum>(5)</enum><header>Qualified
geothermal heat pump property expenditure</header>
<subparagraph id="H437F8089C4344C0D90E4B0F554001549"><enum>(A)</enum><header>In
general</header><text>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 id="H82072B2A872F4A0A9C49587760E229CF"><enum>(B)</enum><header>Qualified
geothermal heat pump property</header><text>The term <quote>qualified
geothermal heat pump property</quote> means any equipment which—</text>
<clause id="HAE175F3C5F9B48C7BDD1D8B64DA5D0E5"><enum>(i)</enum><text display-inline="yes-display-inline">uses the ground or ground water as a
thermal energy source to heat the dwelling unit referred to in subparagraph (A)
or as a thermal energy sink to cool such dwelling unit, and</text>
</clause><clause id="HC7585C35CCE3426DB5D3382883A1D252"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the requirements of the Energy Star
program which are in effect at the time that the expenditure for such equipment
is
made.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HDC358ACA3F284D5AA8F0840057CBE75F"><enum>(4)</enum><header>Maximum
expenditures in case of joint occupancy</header><text>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="H991F3639274049B1BE10E0DE55C2A96F" style="OLC">
<clause commented="no" id="HC15C6711DC4447F2B8BE69A509BA531"><enum>(v)</enum><text>$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" id="H6F0C93D127294A5F8E5721FF1860BEB"><enum>(e)</enum><header>Credit allowed
against alternative minimum tax</header>
<paragraph commented="no" id="HA52E6E6054C14F38BF004961DB00382B"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 25D is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H7BFD2B831E3049F0820092734CB3DC5E" style="OLC">
<subsection commented="no" id="H96E96289F0494769A0E7BEABA74B2FCC"><enum>(c)</enum><header>Limitation based
on amount of tax; carryforward of unused credit</header>
<paragraph commented="no" id="H81FB8EDBCFDE4052B8A7F5A17DE7CAC9"><enum>(1)</enum><header>Limitation based
on amount of tax</header><text>In the case of a taxable year to which section
26(a)(2) does not apply, the credit allowed under subsection (a) for the
taxable year shall not exceed the excess of—</text>
<subparagraph commented="no" id="HA89AD31D54554314987D545114462E10"><enum>(A)</enum><text>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" id="HFA6A51F2F3044058A5B3DD2165EAFCB"><enum>(B)</enum><text>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" id="H9E51C063F9B947FF8D675827FC701F1F"><enum>(2)</enum><header>Carryforward of
unused credit</header>
<subparagraph commented="no" id="H1523402CCFDB4195BCD82956004969B5"><enum>(A)</enum><header>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" id="H87DFD4FDC83642FCAE8488765100A600"><enum>(B)</enum><header>Rule for other
years</header><text>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" id="HB6D7F536D7BB47F09F356EFEC36BC781"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="H68C6B1EF142A410EA25488545D8DD450"><enum>(A)</enum><text>Section
23(b)(4)(B) is amended by inserting <quote>and section 25D</quote> after
<quote>this section</quote>.</text>
</subparagraph><subparagraph commented="no" id="H445530E45FBE4CCCA829C633FC7C7FF7"><enum>(B)</enum><text>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" id="HEA68E0A870024DC0A1DF85AA4108058D"><enum>(C)</enum><text>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" id="H73787507E38B458181C400B0FD000955"><enum>(D)</enum><text>Section 26(a)(1)
is amended by striking <quote>and 25B</quote> and inserting <quote>25B, and
25D</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H82D4C8F6524445AE8DDBDF29D21B98F9"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="H84BF98CB13F44E65A8F7AE901E83036D"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after December 31, 2007.</text>
</paragraph><paragraph id="H9D6A7EFE19F34AFC81A43ED276246C26"><enum>(2)</enum><header>Application of
EGTRRA sunset</header><text>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 display-inline="no-display-inline" id="H529C574471784FDE965272612F947954" section-type="subsequent-section"><enum>105.</enum><header>Special rule to
implement FERC and State electric restructuring policy</header>
<subsection id="HF77A14139B854B5FACD553AC8B21C101"><enum>(a)</enum><header>Extension for
qualified electric utilities</header>
<paragraph id="HC010B59D580E47F3BA00FC9F4100FE47"><enum>(1)</enum><header>In
general</header><text>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 id="HA3F05616DD2F4794ADFCAB09E3624BDB"><enum>(2)</enum><header>Qualified
electric utility</header><text>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 id="HD1231AF7374D449D9D922C510527CB62" style="OLC">
<paragraph id="H5C54C4D074154E4A8577D179DF1F35DB"><enum>(6)</enum><header>Qualified
electric utility</header><text>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 id="HDEF9ECAF9CAC4DDFBBAA63A200FBC9C"><enum>(A)</enum><text>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 id="HAA3BE9F526F0430196D200B9547D3755"><enum>(B)</enum><text>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 id="HC6CA2CEE97314A2EBDD8D2046C35EAC"><enum>(b)</enum><header>Extension of
period for transfer of operational control authorized by
FERC</header><text>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 id="H4D56FAD0DD19458DAB740092CA10CF00"><enum>(c)</enum><header>Property located
outside the united states not treated as exempt utility
property</header><text>Paragraph (5) of section 451(i) is amended by adding at
the end the following new subparagraph:</text>
<quoted-block id="HD1C307CDDD274D0A98FEB0207F7800E" style="OLC">
<subparagraph id="H43179BB6BE284467AF003B7B3EB2D19E"><enum>(C)</enum><header>Exception for
property located outside the united states</header><text>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 id="H34D6B76ED61D4677BCF91E4FE4F185F"><enum>(d)</enum><header>Effective
Dates</header>
<paragraph id="H001C3204DEF9475FA706E65C737593BA"><enum>(1)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall apply to transactions after December
31, 2007.</text>
</paragraph><paragraph id="H94B2BB3F51E94E868F86DBB14BB16B5E"><enum>(2)</enum><header>Transfers of
operational control</header><text>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 id="HC3C79F04DADB45FC9DA03D44FC34AA00"><enum>(3)</enum><header>Exception for
property located outside the united states</header><text>The amendment made by
subsection (c) shall apply to transactions after the date of the enactment of
this Act.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HD437A3962F7B4E4F97437CB1384F81BB" section-type="subsequent-section"><enum>106.</enum><header>New clean renewable
energy bonds</header>
<subsection id="idFB706A68F0164ED999AD6E2D47C763DB"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart I of part IV
of subchapter A of chapter 1 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="HB6ACEB08E4EC474E91D06FEF08684232" style="OLC">
<section display-inline="no-display-inline" id="H54E7B0137002482281878B1EB2BE8BCB" section-type="subsequent-section"><enum>54C.</enum><header>New clean renewable
energy bonds</header>
<subsection id="H00E8DB8CF1944A2EB3F486C5BCC3D00"><enum>(a)</enum><header>New clean
renewable energy bond</header><text>For purposes of this subpart, the term
<term>new clean renewable energy bond</term> means any bond issued as part of
an issue if—</text>
<paragraph id="H0F1C11D71D724FE8849E59501B56008C"><enum>(1)</enum><text>100 percent of the
available project proceeds of such issue are to be used for capital
expenditures incurred by governmental bodies, public power providers, or
cooperative electric companies for one or more qualified renewable energy
facilities,</text>
</paragraph><paragraph id="HCBEF74B59AFB47B89600047BF1EB4726"><enum>(2)</enum><text>the bond is issued
by a qualified issuer, and</text>
</paragraph><paragraph id="H4E05DCD75508412D8965D4AEC0CF0401"><enum>(3)</enum><text>the issuer
designates such bond for purposes of this section.</text>
</paragraph></subsection><subsection id="H344D93647ADB44C2BF2D9E79447C28C3"><enum>(b)</enum><header>Reduced credit
amount</header><text>The annual credit determined under section 54A(b) with
respect to any new clean renewable energy bond shall be 70 percent of the
amount so determined without regard to this subsection.</text>
</subsection><subsection display-inline="no-display-inline" id="HEFCA34AD06A940B89BCBFABF325E74AB"><enum>(c)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="H71CF34FDF2784CA3A7F62352FAFFB257"><enum>(1)</enum><header>In
general</header><text>The maximum aggregate face amount of bonds which may be
designated under subsection (a) by any issuer shall not exceed the limitation
amount allocated under this subsection to such issuer.</text>
</paragraph><paragraph id="H3B51764359334749A13C5B20733635C0"><enum>(2)</enum><header>National
limitation on amount of bonds designated</header><text>There is a national new
clean renewable energy bond limitation of $2,000,000,000 which shall be
allocated by the Secretary as provided in paragraph (3), except that—</text>
<subparagraph id="H47063384E64043B2A82346376DA9D24B"><enum>(A)</enum><text>not more than
33<fraction>1/3</fraction> percent thereof may be allocated to qualified
projects of public power providers,</text>
</subparagraph><subparagraph id="H9827F68FDE3A4911A469E599318894B5"><enum>(B)</enum><text>not more than
33<fraction>1/3</fraction> percent thereof may be allocated to qualified
projects of governmental bodies, and</text>
</subparagraph><subparagraph id="HDA3CA9D68EE34A5391E67C4D53D7BA9F"><enum>(C)</enum><text>not more than
33<fraction>1/3</fraction> percent thereof may be allocated to qualified
projects of cooperative electric companies.</text>
</subparagraph></paragraph><paragraph id="H3F030860A72146F28042622E46DD884E"><enum>(3)</enum><header>Method of
allocation</header>
<subparagraph id="HBC9D76A87629459FAED0BD1D6CDE892F"><enum>(A)</enum><header>Allocation among
public power providers</header><text>After the Secretary determines the
qualified projects of public power providers which are appropriate for
receiving an allocation of the national new clean renewable energy bond
limitation, the Secretary shall, to the maximum extent practicable, make
allocations among such projects in such manner that the amount allocated to
each such project bears the same ratio to the cost of such project as the
limitation under paragraph (2)(A) bears to the cost of all such
projects.</text>
</subparagraph><subparagraph id="H59F9AF5D8D06444893ECCE47D046003E"><enum>(B)</enum><header>Allocation among
governmental bodies and cooperative electric companies</header><text>The
Secretary shall make allocations of the amount of the national new clean
renewable energy bond limitation described in paragraphs (2)(B) and (2)(C)
among qualified projects of governmental bodies and cooperative electric
companies, respectively, in such manner as the Secretary determines
appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H8A211A7D3476406A8EC4581623090001"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HA6EEF51A5EFC4D4D95F5A4188808D514"><enum>(1)</enum><header>Qualified
renewable energy facility</header><text>The term <term>qualified renewable
energy facility</term> means a qualified facility (as determined under section
45(d) without regard to paragraphs (8) and (10) thereof and to any placed in
service date) owned by a public power provider, a governmental body, or a
cooperative electric company.</text>
</paragraph><paragraph id="H025CA72BE53D4B48B40008791FED08C9"><enum>(2)</enum><header>Public power
provider</header><text display-inline="yes-display-inline">The term
<term>public power provider</term> means a State utility with a service
obligation, as such terms are defined in section 217 of the Federal Power Act
(as in effect on the date of the enactment of this paragraph).</text>
</paragraph><paragraph display-inline="no-display-inline" id="HA3D63DE9257948E09EF9BC19E5805178"><enum>(3)</enum><header>Governmental
body</header><text>The term <term>governmental body</term> means any State or
Indian tribal government, or any political subdivision thereof.</text>
</paragraph><paragraph id="H0A4CBB25B5214FEDACE5E5BF40135BC5"><enum>(4)</enum><header>Cooperative
electric company</header><text display-inline="yes-display-inline">The term
<term>cooperative electric company</term> means a mutual or cooperative
electric company described in section 501(c)(12) or section
1381(a)(2)(C).</text>
</paragraph><paragraph id="H7A310B2C23BA4CF597877DE0D940BEE"><enum>(5)</enum><header>Clean renewable
energy bond lender</header><text display-inline="yes-display-inline">The term
<term>clean renewable energy bond lender</term> means a lender which is a
cooperative which is owned by, or has outstanding loans to, 100 or more
cooperative electric companies and is in existence on February 1, 2002, and
shall include any affiliated entity which is controlled by such lender.</text>
</paragraph><paragraph id="H3BE978420EB042B88EA5010432522B7B"><enum>(6)</enum><header>Qualified
issuer</header><text display-inline="yes-display-inline">The term
<term>qualified issuer</term> means a public power provider, a cooperative
electric company, a governmental body, a clean renewable energy bond lender, or
a not-for-profit electric utility which has received a loan or loan guarantee
under the Rural Electrification
Act.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id17FB8377F5954359B42A38701F0007E2"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="idE1A6CD62BBFF409D9311C4A72E77FAB6"><enum>(1)</enum><text>Paragraph (1) of
section 54A(d) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idD2D720FE15B94A4B8F16A0F5F683D311" style="OLC">
<paragraph commented="no" id="idEDE7811282654E7FAF6FA997506AA46E"><enum>(1)</enum><header>Qualified tax
credit bond</header><text>The term <term>qualified tax credit bond</term>
means—</text>
<subparagraph commented="no" id="id244809C00643463BB2B9F56775F2D6A3"><enum>(A)</enum><text>a qualified
forestry conservation bond, or</text>
</subparagraph><subparagraph id="id13659CD4668149DC81CB0622F2CB928E"><enum>(B)</enum><text>a new clean
renewable energy bond,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">which is
part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and
(6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idF31431149C43493D865FADDBFFCC93C5"><enum>(2)</enum><text>Subparagraph (C)
of section 54A(d)(2) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idB75A6C184BB24562B73EFC891B2F8E86" style="OLC">
<subparagraph commented="no" id="id98FE2B5E7346446AB185F2BF8A08C051"><enum>(C)</enum><header>Qualified
purpose</header><text>For purposes of this paragraph, the term <term>qualified
purpose</term> means—</text>
<clause commented="no" id="id37B8C27346474CE5BB0AC475D5D9A8E0"><enum>(i)</enum><text>in the case of a
qualified forestry conservation bond, a purpose specified in section 54B(e),
and</text>
</clause><clause id="idB83D778568504CDAA39628BA495B92E0"><enum>(ii)</enum><text>in the case of a
new clean renewable energy bond, a purpose specified in section
54C(a)(1).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id42A6F39D1127406B80A25BFC877C3A50"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part
IV of subchapter A of chapter 1 is amended by adding at the end the following
new item:</text>
<quoted-block display-inline="no-display-inline" id="id94A6B39C945B44D79BBC63C3ABAE6FFF" style="OLC">
<toc container-level="quoted-block-container" idref="H84E4FF4893D849EB890056C916790067" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H85287BA9F6C54044A49405E9007B70A4" level="section">Sec. 54C. Qualified clean renewable energy
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id596CBF7C764048ED91A3F04F11067638"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section></part><part id="H4920317A7E084E15B07F711FE2CFAD"><enum>II</enum><header>Carbon
mitigation provisions</header>
<section display-inline="no-display-inline" id="H1515B1E7E6BB45ED8446D978D7A464FA" section-type="subsequent-section"><enum>111.</enum><header>Expansion and
modification of advanced coal project investment credit</header>
<subsection id="H565A631A4E924741B442B54C91CBC6C"><enum>(a)</enum><header>Modification of
credit amount</header><text>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="HFEC0BD29C97D49718CC3BEC6C1B44E00" style="OLC">
<paragraph id="H50CFDC80CB91482FB61667A3ACB71BBB"><enum>(3)</enum><text>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 id="HFAF131E2D0254EAFAF07FCC422EFB960"><enum>(b)</enum><header>Expansion of
aggregate credits</header><text>Section 48A(d)(3)(A) is amended by striking
<quote>$1,300,000,000</quote> and inserting
<quote>$2,550,000,000</quote>.</text>
</subsection><subsection id="HB09D7F6840C04C6BA12939364CA7A766"><enum>(c)</enum><header>Authorization of
Additional Projects</header>
<paragraph id="H85F3B05D5EEC4B75B567AB43A06E00F1"><enum>(1)</enum><header>In
general</header><text>Subparagraph (B) of section 48A(d)(3) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="H52151FCD902C4A1AB92C7FB7BC400DF" style="OLC">
<subparagraph id="HF6E9A4F72A6D4CC3BD2D4B4B7899967B"><enum>(B)</enum><header>Particular
projects</header><text>Of the dollar amount in subparagraph (A), the Secretary
is authorized to certify—</text>
<clause id="HF3A06F3185BF468D8018D8E768C1885D"><enum>(i)</enum><text>$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 id="H90B5F5DC4F484C279D0011C6CE3D9640"><enum>(ii)</enum><text>$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 id="H421E88A85BEA42C8BC9078E8CEED10C"><enum>(iii)</enum><text>$1,250,000,000
for advanced coal-based generation technology projects the application for
which is submitted during the period described in paragraph
(2)(A)(ii).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1A4221AF8DB94700AC52765900224BBB"><enum>(2)</enum><header>Application
period for additional projects</header><text>Subparagraph (A) of section
48A(d)(2) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H967F92CDA598450ABBA14EF707EFB344" style="OLC">
<subparagraph id="HDF038BF954D444948D12F40195E5D2E1"><enum>(A)</enum><header>Application
period</header><text>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 id="H10A0E1E91C3847D3A761FCDBEBB234CF"><enum>(i)</enum><text>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 id="H023A101D6BB7475489F18D51D3A1DC20"><enum>(ii)</enum><text>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 id="H30AADA62EAE64BA28412F007C3FCAFF0"><enum>(3)</enum><header>Capture and
sequestration of carbon dioxide emissions requirement</header>
<subparagraph id="HC20BADC3C0174ADFAF09C193EE27ECA2"><enum>(A)</enum><header>In
general</header><text>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="H476D1A9EAF9042D6910900ED5DE80358" style="OLC">
<subparagraph id="HE840760D2F7D44FF9CC2049D9727EBE6"><enum>(G)</enum><text>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 id="HE03105E2302A4451BF218E20CA48CA6"><enum>(B)</enum><header>Highest priority
for projects which sequester carbon dioxide emissions</header><text>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="HEA8BEAFAD6DD4D67BA3528DEF8B18400" style="OLC">
<subparagraph id="HD89AF03D295344A08FB4D10502977CF9"><enum>(C)</enum><text>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 id="HDC6716A729E24DE7B12637D66C00395E"><enum>(C)</enum><header>Recapture of
credit for failure to sequester</header><text>Section 48A is amended by adding
at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HA62754AF8E3941A2B1D1B3E92F2400FE" style="OLC">
<subsection id="H3AF3551B6FE047A4A830B51673BC886"><enum>(i)</enum><header>Recapture of
credit for failure To sequester</header><text>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 id="H131A71792A624436B1503E667624EE89"><enum>(4)</enum><header>Additional
priority for research partnerships</header><text>Section 48A(e)(3)(B), as
amended by paragraph (3)(B), is amended—</text>
<subparagraph id="H7F8DB03478A44673B77F342EC94DB5A"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of clause (ii),</text>
</subparagraph><subparagraph id="H2C6D2E92B7BF4D88872CA0E2C3C9DDCF"><enum>(B)</enum><text>by redesignating
clause (iii) as clause (iv), and</text>
</subparagraph><subparagraph id="HF0059AEBBF104A1CB053EED97B95C2DB"><enum>(C)</enum><text>by inserting after
clause (ii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HA2BE93A2FD12420580AF39B386E6EBD3" style="OLC">
<clause id="H9D5ACE24BEAF40CB9BF41D8E75611B94"><enum>(iii)</enum><text>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 id="H68CEF7B37259450E9BE2B02E3CADD7D"><enum>(5)</enum><header>Clerical
amendment</header><text>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 id="HCE4402460C464528AF53DB4D84F0FD4B"><enum>(d)</enum><header>Disclosure of
allocations</header><text>Section 48A(d) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBD984F5238904D3D00C311B1F5E6A808" style="OLC">
<paragraph id="H2F85FFEB7AC7496F92322D7DCCBD6CE6"><enum>(5)</enum><header>Disclosure of
allocations</header><text display-inline="yes-display-inline">The Secretary
shall, upon making a certification under this subsection or section 48B(d),
publicly disclose the identity of the applicant and the amount of the credit
certified with respect to such
applicant.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9214C5AB99EB49D8802DEF8CC9CC29B4"><enum>(e)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE0CBA397364A41D39B613B26A9F8AAD1"><enum>(1)</enum><header>In
general</header><text>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 id="H17D595D881E94C45950072F8D4BE4505"><enum>(2)</enum><header>Disclosure of
allocations</header><text>The amendment made by subsection (d) shall apply to
certifications made after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H335048694EB44B05A9314D9188E0010"><enum>(3)</enum><header>Clerical
amendment</header><text>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 id="HCC1B62BBD4FC49C6A707481006A356BB"><enum>112.</enum><header>Expansion and
modification of coal gasification investment credit</header>
<subsection id="H29371141236848C08D05B19231CFAFC8"><enum>(a)</enum><header>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 id="H7A30C551ACD545F8AE98C600ED370000"><enum>(b)</enum><header>Expansion of
aggregate credits</header><text>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="HB7B6074A98AE4ABDA3BFDB390000938B" style="OLC">
<text>shall not
exceed—</text><subparagraph id="H6170D7EB02584EFD9DE3D9E5B6D58F0"><enum>(A)</enum><text display-inline="yes-display-inline">$350,000,000, plus</text>
</subparagraph><subparagraph id="H455E250A2BF84A07A97F140093E9AEC4"><enum>(B)</enum><text>$250,000,000 for
qualifying gasification projects that include equipment which separates and
sequesters at least 75 percent of such project’s total carbon dioxide
emissions.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HB15562784CE54D559C1300EBA5C45506"><enum>(c)</enum><header>Recapture of
credit for failure To sequester</header><text>Section 48B is amended by adding
at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H0F643D57773E441ABAFD061F84346EBF" style="OLC">
<subsection id="HA91700176F0244979547D76CD0C8CEF4"><enum>(f)</enum><header>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 id="HBA8335F141A34127B43EEF89EDD58D41"><enum>(d)</enum><header>Selection
priorities</header><text>Section 48B(d) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB59EAEB44CB2424288FF4F6DF0B256BD" style="OLC">
<paragraph id="H14220C9BD8A444238DD396266936002B"><enum>(4)</enum><header>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 id="H6DBC7605069E4136AFF0B78478FAD73D"><enum>(A)</enum><text>give highest
priority to projects with the greatest separation and sequestration percentage
of total carbon dioxide emissions, and</text>
</subparagraph><subparagraph id="H6E3D3C2282C34FC1836C2DDCEFBC07EF"><enum>(B)</enum><text>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 id="H9445C84A5A5745D98D532D833FE622EA"><enum>(e)</enum><header>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 display-inline="no-display-inline" id="H040CACF996F240D781ADD65E8EEDBD8B" section-type="subsequent-section"><enum>113.</enum><header>Temporary increase
in coal excise tax</header><text display-inline="no-display-inline">Paragraph
(2) of section 4121(e) is amended—</text>
<paragraph id="H25F8354ECB0E46B6B07CE87D2DDF627C"><enum>(1)</enum><text>by striking
<quote>January 1, 2014</quote> in subparagraph (A) and inserting
<quote>December 31, 2018</quote>, and</text>
</paragraph><paragraph id="HA565C7C4672C4EAEAB56F9FC6F9499FB"><enum>(2)</enum><text>by striking
<quote>January 1 after 1981</quote> in subparagraph (B) and inserting
<quote>December 31 after 2007</quote>.</text>
</paragraph></section><section id="HA38FB90AD9A6426C9B94F28B57FD4787"><enum>114.</enum><header>Special rules
for refund of the coal excise tax to certain coal producers and
exporters</header>
<subsection id="HFC1CFA926CDC4787855E5FA41C3EB1E"><enum>(a)</enum><header>Refund</header>
<paragraph id="H7A7ECC11D4F44D9AAC08C5C4F8B75C2E"><enum>(1)</enum><header>Coal
producers</header>
<subparagraph id="HC5BA01F485A64640864584CF7969626B"><enum>(A)</enum><header>In
general</header><text>Notwithstanding subsections (a)(1) and (c) of section
6416 and section 6511 of the Internal Revenue Code of 1986, if—</text>
<clause id="H5C850480CDF647F90053C564C5046403"><enum>(i)</enum><text>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 id="HB70DAAF027FE4D658EF0D5231D597A3"><enum>(ii)</enum><text>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 id="H551877FAADFF4E18958CEBA221EE7E34"><enum>(iii)</enum><text>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 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 id="HE1C6148322B6484E96AFB9CABB00FB00"><enum>(B)</enum><header>Special rules
for certain taxpayers</header><text>For purposes of this section—</text>
<clause id="HF050E41443E54AE09863BB9B9D983492"><enum>(i)</enum><header>In
general</header><text>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 id="HDD080110206F46CC852C1085062B8D8E"><enum>(ii)</enum><header>Amount of
payment</header><text>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 id="H6E88597C49F64910BD573CD479BDA047"><enum>(iii)</enum><header>Judgment
described</header><text>A judgment is described in this subparagraph if such
judgment—</text>
<subclause id="H9A3940B24C7B47A285CCB0A22BB2FC32"><enum>(I)</enum><text>is made by a court
of competent jurisdiction within the United States,</text>
</subclause><subclause id="H7B14838B6AFF4359A81418EB2C791EFD"><enum>(II)</enum><text>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 id="H53C91BF4298840CA966FB62E48BFA9B"><enum>(III)</enum><text>is in favor of
the coal producer or the party related to the coal producer.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H4972C8D7ED444E75B89BA3A3E79E314C"><enum>(2)</enum><header>Exporters</header><text>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 id="H380EAB7A47E64AB7A5FD976077ED5357"><enum>(A)</enum><text>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 id="HD2F9EC2E4D774E6F89305E5B6B6B3715"><enum>(B)</enum><text>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 id="H5AA833CE4ED1426AB13C295C61EEC0F2"><enum>(C)</enum><text>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 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 id="H4B0D1D63ECC543A9AF560641D8EF33E1"><enum>(b)</enum><header>Limitations</header><text>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 id="H531E42DA9D03430CA53CD05AC5E4EDD"><enum>(c)</enum><header>Subsequent refund
prohibited</header><text>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 id="H5D9B88DD9BFD41078F8D8CB1D4449E4B"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HD4F849EBCBD0495FA58CC799CB1C3825"><enum>(1)</enum><header>Coal
producer</header><text>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 id="H9B6BF32489B34AF39BA130C257EA5815"><enum>(2)</enum><header>Exporter</header><text>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 id="HF33A37E33D2A4EECBC0891612C4EDB23"><enum>(A)</enum><text>is indicated in
the shipper’s export declaration or other documentation as the exporter of
record, or</text>
</subparagraph><subparagraph id="HB35F1E506112477CB8232BC0CD634C64"><enum>(B)</enum><text>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 id="HD5DBEAD020CA4406BA2B692F3E13605D"><enum>(3)</enum><header>Related
party</header><text>The term <term>a party related to such coal producer</term>
means a person who—</text>
<subparagraph id="HA31FE8C177A446C78270008CBBF93858"><enum>(A)</enum><text>is related to such
coal producer through any degree of common management, stock ownership, or
voting control,</text>
</subparagraph><subparagraph id="HAB1BD746094A46D0A8E0F263FEA0DEF"><enum>(B)</enum><text>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 id="H5425C3FA6EA04D17889765CBFA1D6843"><enum>(C)</enum><text>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 id="H06F0561DB1634FF096BC2CC60000C5AD"><enum>(4)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Treasury or the Secretary's
designee.</text>
</paragraph></subsection><subsection id="HE401DDD91FC54938AA85CB01B4C13019"><enum>(e)</enum><header>Timing of
refund</header><text>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 id="H5B1858712A444344992FD368E89B8E8E"><enum>(f)</enum><header>Interest</header><text>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 id="HA6D92194C7A641B2B3001EE77D732366"><enum>(g)</enum><header>Denial of double
benefit</header><text>The payment under subsection (a) with respect to any coal
shall not exceed—</text>
<paragraph id="H45559A14F75541679E76F31A11735C9"><enum>(1)</enum><text>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 id="H51CE20AD35F84476AC4CB73F83028009"><enum>(2)</enum><text>in the case of a
payment to an exporter, an amount equal to $0.825 per ton with respect to such
coal exported by the exporter or caused to be exported by the exporter.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDC3DF9B2DD6849AAA73F2CCB249BEB03"><enum>(h)</enum><header display-inline="yes-display-inline">Application of section</header><text display-inline="yes-display-inline">This section applies only to claims on coal
exported or shipped on or after October 1, 1990, through the date of the
enactment of this Act.</text>
</subsection><subsection id="HFC31A8995D9044B684954E86000457B4"><enum>(i)</enum><header>Standing not
conferred</header>
<paragraph id="HABC56F2E71EE418287EC25BC3029C690"><enum>(1)</enum><header>Exporters</header><text>With
respect to exporters, this section shall not confer standing upon an exporter
to commence, or intervene in, any judicial or administrative proceeding
concerning a claim for refund by a coal producer of any Federal or State tax,
fee, or royalty paid by the coal producer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H480230B633F54DEDBCBDC54FBD7E91E8"><enum>(2)</enum><header>Coal
producers</header><text>With respect to coal producers, this section shall not
confer standing upon a coal producer to commence, or intervene in, any judicial
or administrative proceeding concerning a claim for refund by an exporter of
any Federal or State tax, fee, or royalty paid by the producer and alleged to
have been passed on to an exporter.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H864148CE02874C9287CDA9A1667813FB" section-type="subsequent-section"><enum>115.</enum><header>Carbon audit of the
tax code</header>
<subsection id="H4A3E9569F65F4801873D791F235EC39B"><enum>(a)</enum><header>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 id="HEE6FD7288C234A6D8D939B96F73C6BD"><enum>(b)</enum><header>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 id="H4DF1067359204FE8876BC7AD16ED6B70"><enum>(c)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to carry
out this section $1,500,000 for the period of fiscal years 2008 and
2009.</text>
</subsection></section></part></subtitle><subtitle id="H9FEB79D6C6C441F192DF005CF9000"><enum>B</enum><header>Transportation and
domestic fuel security provisions</header>
<section id="HFA3C95CE3A0C44978C00315E2BCBCA00"><enum>121.</enum><header>Inclusion of
cellulosic biofuel in bonus depreciation for biomass ethanol plant
property</header>
<subsection id="H8F7922C514B24C76BA42FE10B701D"><enum>(a)</enum><header>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="H53A950BA60E94626AFA567C057949516" style="OLC">
<paragraph id="H99E491112498442F85AFA8E3008FAE02"><enum>(3)</enum><header>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 id="H8E09387715424B80997EAA50114CC5AD"><enum>(b)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Subsection (l) of
section 168 is amended—</text>
<paragraph id="H8A83C9E79CEA459C8D5F5F0416C2F700"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>cellulosic biomass
ethanol</quote> each place it appears and inserting <quote>cellulosic
biofuel</quote>,</text>
</paragraph><paragraph id="H0E084954534A44F0AAFC1D76556E42ED"><enum>(2)</enum><text>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 id="H749F77DFB5694872AF41C120EF47819D"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">cellulosic biomass
ethanol</header-in-text></quote> in the heading of paragraph (2) thereof and
inserting <quote><header-in-text level="paragraph" style="OLC">cellulosic
biofuel</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="HB420AA76F8364E2C9F5E6878DC8EA039"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act, in taxable years
ending after such date.</text>
</subsection></section><section display-inline="no-display-inline" id="HE5D59A293B7D43D7B7FC82E822DCD500" section-type="subsequent-section"><enum>122.</enum><header>Credits for
biodiesel and renewable diesel</header>
<subsection id="H2CE8855EA4C14F99B19445887B4F6797"><enum>(a)</enum><header>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 id="HE5442FB9FB944CD9859EBBC8BBDCF586"><enum>(b)</enum><header>Increase in rate
of credit</header>
<paragraph id="H120F3E90709E4EB0945D8D6E926BBA5"><enum>(1)</enum><header>Income tax
credit</header><text>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 id="H5AB7AAC5C9954F32B1EB5246A6EB4B6C"><enum>(2)</enum><header>Excise tax
credit</header><text>Paragraph (2) of section 6426(c) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HB1AF18F50E954152BBC7FD982EB200C2" style="OLC">
<paragraph id="H89BE6902B6B243D4BEE661F105CC6059"><enum>(2)</enum><header>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 id="HA1D8BA6E041B473F81B66B83A2C43CD"><enum>(3)</enum><header>Conforming
amendments</header>
<subparagraph id="H86AAC6620E7C4BABA3CF418F6A44855"><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 id="HD9C02340228F416E8BC449F121B9DFBB"><enum>(B)</enum><text>Paragraph (2) of
section 40A(f) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HDDCB6989FB124499BC3041ED52C45800" style="OLC">
<paragraph id="HD0D33E9E215642A9A1D51756BE46EA7"><enum>(2)</enum><header>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 id="H38ED0F7AC761421B80000073AADF6845"><enum>(C)</enum><text>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 id="HA3870FCEC79B492891003B735290D3A"><enum>(D)</enum><text>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 id="HFA956D9D77DC4422A684F823D6D5B14E"><enum>(c)</enum><header>Uniform
treatment of diesel produced from biomass</header><text>Paragraph (3) of
section 40A(f) is amended—</text>
<paragraph id="H596593014726465CB84D92D9E25F45B"><enum>(1)</enum><text>by
striking <quote>diesel fuel</quote> and inserting <quote>liquid
fuel</quote>,</text>
</paragraph><paragraph id="H61B1AC81E9DB4FE7A661FAEFFBEE88C"><enum>(2)</enum><text>by
striking <quote>using a thermal depolymerization process</quote>, and</text>
</paragraph><paragraph id="HADC62D1E39D14DC9A7F255020786B2B0"><enum>(3)</enum><text>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 display-inline="no-display-inline" id="H31F77317824E490C9F18055936EFA913"><enum>(d)</enum><header>Coproduction of
renewable diesel with petroleum feedstock</header>
<paragraph id="H654B848834B449E8A500524D1000A52D"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 40A(f) (defining renewable
diesel) is amended by adding at the end the following new sentence: <quote>Such
term does not include any fuel derived from coprocessing biomass with a
feedstock which is not biomass. For purposes of this paragraph, the term
<term>biomass</term> has the meaning given such term by section
45K(c)(3).</quote>.</text>
</paragraph><paragraph id="H9721D740726D4ADDA739738B25D22283"><enum>(2)</enum><header>Conforming
amendment</header><text>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="H231319129CED47358D1BAAB977208BEF"><enum>(e)</enum><header>Eligibility of
certain aviation fuel</header><text>Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the following: <quote>The
term <term>renewable diesel</term> also means 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.</quote>.</text>
</subsection><subsection id="H9EA127B381D14281B238A15055F28578"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="H9D7A968728B34A94BB1F00F95006922"><enum>(1)</enum><header>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 id="H273004D520794B52B3634EAC7DB1FA9"><enum>(2)</enum><header>Coproduction of
renewable diesel with petroleum feedstock</header><text>The amendments made by
subsection (d) shall apply to fuel produced, and sold or used, after the date
of the enactment of this Act.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H16EFCB00D8094FE8935B5D144BE9FAD" section-type="subsequent-section"><enum>123.</enum><header>Clarification that
credits for fuel are designed to provide an incentive for United States
production</header>
<subsection display-inline="no-display-inline" id="id3A7BD231E1D741A7B22A3EBD939C7D04"><enum>(a)</enum><header>Alcohol fuels
credit</header><text>Paragraph (6) of section 40(d) is amended to read as
follows:</text>
<quoted-block act-name="" id="id8F7C123D5A1D4BBF8999D7A765A90FE7" style="OLC">
<paragraph id="idF1A5A239360F454999833951165008E5"><enum>(6)</enum><header>Limitation to
alcohol with connection to the United States</header><text>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 id="H7EB5E8ACF2DF407E88C6D7C15100B4FA"><enum>(b)</enum><header>Biodiesel fuels
credit</header><text>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="H77CA12CF33984EFE85580000B01B42DC" style="OLC">
<paragraph commented="no" id="HD1D51F2F24A148EFA87B1C6C0089D17D"><enum>(5)</enum><header>Limitation to
biodiesel with connection to the United States</header><text display-inline="yes-display-inline">No credit shall be determined under this
section with respect to any biodiesel which is produced outside the United
States for use as a fuel outside the United States. For purposes of this
paragraph, the term <term>United States</term> includes any possession of the
United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HF67C2B1E04554713A392CE98BE3E5227"><enum>(c)</enum><header>Excise tax
credit</header>
<paragraph id="HBECE8537608441BF91866F76ABB6BF70"><enum>(1)</enum><header>In
general</header><text>Section 6426 is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H3779C00AB6BB460E00EA38D17E8B12F8" style="OLC">
<subsection commented="no" id="H0E0EEC0DACBC4248B0A412543EFC7F01"><enum>(i)</enum><header>Limitation to
fuels with connection to the United States</header>
<paragraph id="HE56F17B30D524727005C4D5CF7A58BF"><enum>(1)</enum><header>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 id="HC8B9925B701542408BF34CACB46850CE"><enum>(2)</enum><header>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 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" id="HC74B65DC7E9C4807943087CC2452D32"><enum>(2)</enum><header>Conforming
amendment</header><text>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="HAEBF7E4F98444F67B9E347FAC6901825" style="OLC">
<paragraph commented="no" id="H464649C0230E4E52826D50F0577070B5"><enum>(5)</enum><header>Limitation to
fuels with connection to the United States</header><text>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" id="H675D9DBD9CA84DBBB15ED04C340009C6"><enum>(d)</enum><header>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 display-inline="no-display-inline" id="HA5F47A0C7E564794AE461EFA00825791" section-type="subsequent-section"><enum>124.</enum><header>Credit for new
qualified plug-in electric drive motor vehicles</header>
<subsection id="HAA76FA0330124C7F9BECA24CFFA0EFA9"><enum>(a)</enum><header>In
general</header><text>Subpart B of part IV of subchapter A of chapter 1 is
amended by adding at the end the following new section:</text>
<quoted-block id="H4B8247D634AD4285BDC83CA0511D19F6">
<section id="HFC95C9FC236D4E36976CD7A6ADBD00C1"><enum>30D.</enum><header>New qualified
plug-in electric drive motor vehicles</header>
<subsection id="H3CECC3EEF90749188DC95E3C7468C680"><enum>(a)</enum><header>Allowance of
credit</header><text>There shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the 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 id="HB81EAF38CC2540ACBB2411436C9CDCD4"><enum>(b)</enum><header>Per vehicle
dollar limitation</header>
<paragraph id="H223B0CE0165F4F9C8BD5E72B569925BC"><enum>(1)</enum><header>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 id="H7C97452EF3C3436D812F76DB8790875B"><enum>(2)</enum><header>Base
amount</header><text>The amount determined under this paragraph is
$3,000.</text>
</paragraph><paragraph id="HDCA05C10E5C344AEBB42924CA2E637D9"><enum>(3)</enum><header>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 display-inline="no-display-inline" id="H747A94CD336646B5BF7CF6158DD600B"><enum>(c)</enum><header>Application with
other credits</header>
<paragraph commented="no" id="HEDA73EAB48534E05B17EBA957CA5DA4F"><enum>(1)</enum><header>Business credit
treated as part of general business credit</header><text display-inline="yes-display-inline">So much of the credit which would be
allowed under subsection (a) for any taxable year (determined without regard to
this subsection) that is attributable to property of a character subject to an
allowance for depreciation shall be treated as a credit listed in section 38(b)
for such taxable year (and not allowed under subsection (a)).</text>
</paragraph><paragraph id="HA56356D2D891487E82490077AACD92B2"><enum>(2)</enum><header>Personal
credit</header>
<subparagraph id="H3E01D8B7A7984F50A7F697EE79B35680"><enum>(A)</enum><header>In
general</header><text>For purposes of this title, the credit allowed under
subsection (a) for any taxable year (determined after application of paragraph
(1)) shall be treated as a credit allowable under subpart A for such taxable
year.</text>
</subparagraph><subparagraph id="H3B85F5588F3B430C846B41828E298E43"><enum>(B)</enum><header>Limitation based
on amount of tax</header><text>In the case of a taxable year to which section
26(a)(2) does not apply, the credit allowed under subsection (a) for any
taxable year (determined after application of paragraph (1)) shall not exceed
the excess of—</text>
<clause id="HCE815BF413BF4D27975FE0DA62816837"><enum>(i)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</clause><clause id="HA9F4019A25F24955BE00E813B8140375"><enum>(ii)</enum><text>the sum of the
credits allowable under subpart A (other than this section and sections 23 and
25D) and section 27 for the taxable year.</text>
</clause></subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H95FF5C1E951F4F3F958C511D6C4D06F7"><enum>(d)</enum><header>New qualified
plug-In electric drive motor vehicle</header><text>For purposes of this
section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3029A74FB32748BFB14EBD5F05DDB357"><enum>(1)</enum><header>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 (as
defined in section 30(c)(2))—</text>
<subparagraph id="H80325B27C5914FE9BD00A0EDDF52BBEF"><enum>(A)</enum><text>the original use
of which commences with the taxpayer,</text>
</subparagraph><subparagraph id="HF3723295121446D486ADD24BDFB7BEA1"><enum>(B)</enum><text>which is acquired
for use or lease by the taxpayer and not for resale,</text>
</subparagraph><subparagraph id="HAAC615A4FA29480EA5EAE4F3A2499A9"><enum>(C)</enum><text>which is made by a
manufacturer,</text>
</subparagraph><subparagraph id="HC85B89CAF2FE439C826D0008AF23F64"><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 id="H5002700BC91545A1A4E200074915846B"><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 id="H712EF046B5F24C8E94E23E72E831A2DE"><enum>(F)</enum><text>which is propelled
to a significant extent by an electric motor which draws electricity from a
battery which—</text>
<clause id="H11DC7EB5A9CD4D73884BADEE8C08F0C"><enum>(i)</enum><text>has
a capacity of not less than 4 kilowatt hours, and</text>
</clause><clause id="H118AC0427FDB4F2A8400D3C067C583D4"><enum>(ii)</enum><text>is capable of
being recharged from an external source of electricity.</text>
</clause></subparagraph></paragraph><paragraph id="H6A9843531C0846A88035D511DD2B69BF"><enum>(2)</enum><header>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 id="H9BE70F0AF4EE4D5DA949E8D61BDF7166"><enum>(3)</enum><header>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 id="H7B87793944E0432097375614359E9C8B"><enum>(4)</enum><header>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 display-inline="no-display-inline" id="HEE03E96AFA60432EB5B0A20E9696284"><enum>(e)</enum><header>Limitation on
number of new qualified plug-In electric drive motor vehicles eligible for
credit</header>
<paragraph id="H46C410D4E37F49EDB85D91302FD5F0CD"><enum>(1)</enum><header>In
general</header><text>In the case of a new qualified plug-in electric drive
motor vehicle sold during the phaseout period, only the applicable percentage
of the credit otherwise allowable under subsection (a) shall be allowed.</text>
</paragraph><paragraph id="H7FED9AE3CCA34DC2AA990037FFD6B2CB"><enum>(2)</enum><header>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 id="H91B40F6CD31448409F867ED80096171C"><enum>(3)</enum><header>Applicable
percentage</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), the applicable percentage is—</text>
<subparagraph id="HFB3C66131B334A31B7BD1777A49141A1"><enum>(A)</enum><text>50 percent for the
first 2 calendar quarters of the phaseout period,</text>
</subparagraph><subparagraph id="HE97E029C1DEA4FB4A1A0552F6982B143"><enum>(B)</enum><text>25 percent for the
3d and 4th calendar quarters of the phaseout period, and</text>
</subparagraph><subparagraph id="H02B8086A2DEB4C8EA8E5E75182B78CA"><enum>(C)</enum><text>0 percent for each
calendar quarter thereafter.</text>
</subparagraph></paragraph><paragraph id="HBF6D74D34E964F5382ED43BF16E49138"><enum>(4)</enum><header>Controlled
groups</header><text>Rules similar to the rules of section 30B(f)(4) shall
apply for purposes of this subsection.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HF279B97810BD4A6598BD06A3DBBEE6"><enum>(f)</enum><header>Special
rules</header>
<paragraph id="H990B4C0569E74640B363108EA7167B5C"><enum>(1)</enum><header>Basis
reduction</header><text>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 id="H85D66E92BF034F628680C6205E112180"><enum>(2)</enum><header>Recapture</header><text>The
Secretary shall, by regulations, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to any property which ceases
to be property eligible for such credit.</text>
</paragraph><paragraph id="H8E2853831EBB4FC000F3B3764F8314E3"><enum>(3)</enum><header>Property used
outside United States, etc., not qualified</header><text>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 id="HF30947AC22904D1B86BB00E5E25CE2E6"><enum>(4)</enum><header>Election not to
take credit</header><text>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 id="H034C485523C1432096FCA3006D87BCE4"><enum>(5)</enum><header>Property used by
tax-exempt entity; interaction with air quality and motor vehicle safety
standards</header><text>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 display-inline="no-display-inline" id="HA5E9B9C86BF14C02893531C39841ED58"><enum>(b)</enum><header>Coordination
with alternative motor vehicle credit</header><text>Section 30B(d)(3) is
amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H05C6220911204C849386BADF9D8F1FEC" style="OLC">
<subparagraph id="H267D5B70DFBC459CA1C1718EFE3C3500"><enum>(D)</enum><header>Exclusion of
plug-in vehicles</header><text>Any vehicle with respect to which a credit is
allowable under section 30D (determined without regard to subsection (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="HC9E91715386C46ECA9949B14A7988C56"><enum>(c)</enum><header>Credit made part
of general business credit</header><text display-inline="yes-display-inline">Section 38(b) is amended—</text>
<paragraph id="H14F041E1DEA749F0B38B8F073D8F36A3"><enum>(1)</enum><text>by striking
<quote>and</quote> each place it appears at the end of any paragraph,</text>
</paragraph><paragraph id="H5F1CB11400834601AEB114BC09A3AB69"><enum>(2)</enum><text>by striking
<quote>plus</quote> each place it appears at the end of any paragraph,</text>
</paragraph><paragraph id="H8243E3C0295C46AE87B2FC52FE1EFED"><enum>(3)</enum><text>by
striking the period at the end of paragraph (32) and inserting ‘‘, plus’’,
and</text>
</paragraph><paragraph id="H430EE87EED274D5D85A728FDCFA9900"><enum>(4)</enum><text>by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HBC5050F417994FB99865CED6EDF6668" style="OLC">
<paragraph commented="no" id="H976CBF7316EB427997401CF5BAEEAD5E"><enum>(33)</enum><text display-inline="yes-display-inline">the portion of the new qualified plug-in
electric drive motor vehicle credit to which section 30D(c)(1)
applies.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H6B34303B7C3E46B68F78A429B4758B30"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="H9EA99F2D51A5447496F02B18E5DCE811"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H5006D90080D04C85B63DCA4258F1D469"><enum>(A)</enum><text>Section 24(b)(3)(B), as
amended by section 104, is amended by striking <quote>and 25D</quote> and
inserting <quote>25D, and 30D</quote>.</text>
</subparagraph><subparagraph id="H335918EA5B0B4394BE2471994091A8AF" indent="up1"><enum>(B)</enum><text>Section 25(e)(1)(C)(ii) is amended by
inserting <quote>30D,</quote> after <quote>25D,</quote>.</text>
</subparagraph><subparagraph id="H63ACFD1AD58341BB8B38B40534A05C12" indent="up1"><enum>(C)</enum><text>Section 25B(g)(2), as amended by
section 104, is amended by striking <quote>and 25D</quote> and inserting
<quote>, 25D, and 30D</quote>.</text>
</subparagraph><subparagraph id="H43991FA7913A4FFCA2007020DD10E96B" indent="up1"><enum>(D)</enum><text>Section 26(a)(1), as amended by
section 104, is amended by striking <quote>and 25D</quote> and inserting
<quote>25D, and 30D</quote>.</text>
</subparagraph><subparagraph id="H4864332B3DAF4D1A8C92B399D2F4A4E" indent="up1"><enum>(E)</enum><text>Section 1400C(d)(2) is amended by
striking <quote>and 25D</quote> and inserting <quote>25D, and
30D</quote>.</text>
</subparagraph></paragraph><paragraph id="H633955936C0D488FAE88AB35B7E5299B"><enum>(2)</enum><text>Section 1016(a) is
amended by striking <quote>and</quote> at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB0890E8A59A94A809D6777032450E93F" style="OLC">
<paragraph id="HC05B93BB6398467EBBC1A6C91DC80800"><enum>(37)</enum><text>to the extent
provided in section
30D(f)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB3F15FF69D8E4B3ABC004DDA83955338"><enum>(3)</enum><text>Section 6501(m) is
amended by inserting <quote>30D(f)(4),</quote> after
<quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph id="H516EE7AF728D45E7B0D32450234C0440"><enum>(4)</enum><text>The table of
sections for subpart B of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:</text>
<quoted-block id="H6B67A9A9D2674122B869D872693255A7" style="OLC">
<toc>
<toc-entry level="section">Sec. 30D. New qualified plug-in electric
drive motor
vehicles.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9ED3FF740AF14682A648B791711C25FE"><enum>(e)</enum><header>Treatment of
alternative motor vehicle credit as a personal credit</header>
<paragraph id="H869F38EAC3304BEAA56409F67349015F"><enum>(1)</enum><header>In
general</header><text>Paragraph (2) of section 30B(g) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HB522C27E20B64184B7DD009C863BD466" style="OLC">
<paragraph id="HFF4417C8B1EB4D0C8920884EE58B9800"><enum>(2)</enum><header>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 id="HF61330A9D2564B779F47017DEB8269B9"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H9F2043C6268D4C79A2A0C2B06B13FB8"><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>sections 27 and 30</quote>.</text>
</subparagraph><subparagraph id="HE276FFD5867142A0829D35144630CD78"><enum>(B)</enum><text>Paragraph (3) of
section 55(c) is amended by striking <quote>30B(g)(2),</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H2611A23DD5AF4FBE9B253C317B6E4997"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="H1338993E30544E729B88000086E0B4B1"><enum>(1)</enum><header>In
general</header><text>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 id="HA70396DF6595484BBAF6BDA8E300F2F"><enum>(2)</enum><header>Treatment of
alternative motor vehicle credit as personal credit</header><text>The
amendments made by subsection (e) shall apply to taxable years beginning after
December 31, 2007.</text>
</paragraph></subsection><subsection id="HBEBBFC3AE7D848E0863660F94FFE1CD4"><enum>(g)</enum><header>Application of
EGTRRA sunset</header><text>The amendment made by subsection (d)(1)(A) shall be
subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of
2001 in the same manner as the provision of such Act to which such amendment
relates.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HFB0E61DCA7E04BF8A124B4B3074333A2" section-type="subsequent-section"><enum>125.</enum><header>Exclusion from heavy
truck tax for idling reduction units and advanced insulation</header>
<subsection commented="no" display-inline="no-display-inline" id="H095C74B572874823820260D3435320B1"><enum>(a)</enum><header>In
general</header><text>Section 4053 is amended by adding at the end the
following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="HA9E61EB34C7E4471ABB02B10F4300025" style="OLC">
<paragraph commented="no" id="HE678079B89B7408C8FD15DD9003FDC00"><enum>(9)</enum><header>Idling reduction
device</header><text>Any device or system of devices which—</text>
<subparagraph commented="no" id="H57F2676CE3944348AE38E4C83DC34C27"><enum>(A)</enum><text display-inline="yes-display-inline">is designed to provide to a vehicle those
services (such as heat, air conditioning, or electricity) that would otherwise
require the operation of the main drive engine while the vehicle is temporarily
parked or remains stationary using one or more devices affixed to a tractor,
and</text>
</subparagraph><subparagraph commented="no" id="H7BA2DAA30FC74E80AB27D76FAD991F9F"><enum>(B)</enum><text>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" id="HA685817D1AFB4230A3586D1879C2D65F"><enum>(10)</enum><header>Advanced
insulation</header><text>Any insulation that has an R value of not less than
R35 per
inch.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H039BC7343AE247BCAC9B19375499CE89"><enum>(b)</enum><header>Effective
date</header><text>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 display-inline="no-display-inline" id="HBCF2A6CEE3A144878B31CAA0124BBBD4" section-type="subsequent-section"><enum>126.</enum><header>Restructuring of New
York Liberty Zone tax credits</header>
<subsection id="H6F9F2CD3DAAA4FD581D600DFA8C2B707"><enum>(a)</enum><header>In
general</header><text>Part I of subchapter Y of chapter 1 is amended by
redesignating section 1400L as section 1400K and by adding at the end the
following new section:</text>
<quoted-block id="HC8F7AF194A4A4AFEA0993965ADCEBF" style="OLC">
<section id="HF8FBB0E2C75E4A04840079A71E2E36BA"><enum>1400L.</enum><header>New York
Liberty Zone tax credits</header>
<subsection id="HC01F63CAECC84406B2799FF02083B774"><enum>(a)</enum><header>In
general</header><text>In the case of a New York Liberty Zone governmental unit,
there shall be allowed as a credit against any taxes imposed for any payroll
period by section 3402 for which such governmental unit is liable under section
3403 an amount equal to so much of the portion of the qualifying project
expenditure amount allocated under subsection (b)(3) to such governmental unit
for the calendar year as is allocated by such governmental unit to such period
under subsection (b)(4).</text>
</subsection><subsection id="H98EAA1CDE05B45EF8F34F5448BB7C85"><enum>(b)</enum><header>Qualifying
project expenditure amount</header><text>For purposes of this section—</text>
<paragraph id="H29AF39DC3DDF428DB649C4005EB29F51"><enum>(1)</enum><header>In
general</header><text>The term <term>qualifying project expenditure
amount</term> means, with respect to any calendar year, the sum of—</text>
<subparagraph id="H2FBB524DF4A740D8AC07CB00D3C34DBC"><enum>(A)</enum><text>the total
expenditures paid or incurred during such calendar year by all New York Liberty
Zone governmental units and the Port Authority of New York and New Jersey for
any portion of qualifying projects located wholly within the City of New York,
New York, and</text>
</subparagraph><subparagraph id="H2142C62F30E14D05B6C0EA5E928DCCA9"><enum>(B)</enum><text>any such
expenditures—</text>
<clause id="H01F5E7892CF14270AC2CFA2AD6E3577"><enum>(i)</enum><text>paid or incurred in
any preceding calendar year which begins after the date of enactment of this
section, and</text>
</clause><clause id="HE7CBEBFE2DBD4B8F8E4E39FE6DAF866F"><enum>(ii)</enum><text>not previously
allocated under paragraph (3).</text>
</clause></subparagraph></paragraph><paragraph id="H43A010C31D514056BF008925D12741A4"><enum>(2)</enum><header>Qualifying
project</header><text>The term <term>qualifying project</term> means any
transportation infrastructure project, including highways, mass transit
systems, railroads, airports, ports, and waterways, in or connecting with the
New York Liberty Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the Governor of the State of
New York and the Mayor of the City of New York, New York.</text>
</paragraph><paragraph id="HE84B0539FF204DF8A1ECFCAF77EE8400"><enum>(3)</enum><header>General
allocation</header>
<subparagraph id="HA647ADA8C00D4EEFB824EFA5C2929562"><enum>(A)</enum><header>In
general</header><text>The Governor of the State of New York and the Mayor of
the City of New York, New York, shall jointly allocate to each New York Liberty
Zone governmental unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit under subsection (a)
for any calendar year in the credit period.</text>
</subparagraph><subparagraph id="H134B0DB7BEEC41C3AE683D1EFBFE2997"><enum>(B)</enum><header>Aggregate
limit</header><text>The aggregate amount which may be allocated under
subparagraph (A) for all calendar years in the credit period shall not exceed
$2,000,000,000.</text>
</subparagraph><subparagraph commented="no" id="HCB5EB8C7A31A455100B972D64D4F41C1"><enum>(C)</enum><header>Annual
limit</header><text>The aggregate amount which may be allocated under
subparagraph (A) for any calendar year in the credit period shall not exceed
the sum of—</text>
<clause commented="no" id="H62E45CAE30D84A2A983D68106779E475"><enum>(i)</enum><text>$115,000,000
($425,000,000 in the case of the last 2 years in the credit period),
plus</text>
</clause><clause commented="no" id="H8BC11380FCAE4DDB8F44C1D515F4E13C"><enum>(ii)</enum><text>the aggregate
amount authorized to be allocated under this paragraph for all preceding
calendar years in the credit period which was not so allocated.</text>
</clause></subparagraph><subparagraph id="HAA876ED17C774D7F948D009C053919E5"><enum>(D)</enum><header>Unallocated
amounts at end of credit period</header><text>If, as of the close of the credit
period, the amount under subparagraph (B) exceeds the aggregate amount
allocated under subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the City of New York,
New York, may jointly allocate to New York Liberty Zone governmental units for
any calendar year in the 5-year period following the credit period an amount
equal to—</text>
<clause id="H6131463B8AB4452D82D985EF023CB772"><enum>(i)</enum><text>the lesser
of—</text>
<subclause id="H9C0CDC8678A1438FBAA9FF35493B6BA9"><enum>(I)</enum><text>such excess,
or</text>
</subclause><subclause id="H3F59C2C883C34B5A85CA651114D6400"><enum>(II)</enum><text>the qualifying
project expenditure amount for such calendar year, reduced by</text>
</subclause></clause><clause id="H83E407E332A94B8AA5E01033EE72E693"><enum>(ii)</enum><text>the aggregate
amount allocated under this subparagraph for all preceding calendar
years.</text>
</clause></subparagraph></paragraph><paragraph id="HC349276B8A08480198ACDB69C6D67C2"><enum>(4)</enum><header>Allocation to
payroll periods</header><text>Each New York Liberty Zone governmental unit
which has been allocated a portion of the qualifying project expenditure amount
under paragraph (3) for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental unit determines
appropriate.</text>
</paragraph></subsection><subsection id="H0CC6F6879B34470886FB2DFB77A3CAB"><enum>(c)</enum><header>Carryover of
unused allocations</header>
<paragraph id="H6A56816C7AB9423DB55BDDDDC175B635"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), if the amount
allocated under subsection (b)(3) to a New York Liberty Zone governmental unit
for any calendar year exceeds the aggregate taxes imposed by section 3402 for
which such governmental unit is liable under section 3403 for periods beginning
in such year, such excess shall be carried to the succeeding calendar year and
added to the allocation of such governmental unit for such succeeding calendar
year.</text>
</paragraph><paragraph id="H1901AEFF40384A36A3AFAED02BEDA70"><enum>(2)</enum><header>Reallocation</header><text>If
a New York Liberty Zone governmental unit does not use an amount allocated to
it under subsection (b)(3) within the time prescribed by the Governor of the
State of New York and the Mayor of the City of New York, New York, then such
amount shall after such time be treated for purposes of subsection (b)(3) in
the same manner as if it had never been allocated.</text>
</paragraph></subsection><subsection id="H5FEBA462FFE74EC985A3DBFFF78326E"><enum>(d)</enum><header>Definitions and
special rules</header><text>For purposes of this section—</text>
<paragraph id="HFC50A627F1FD4533AD9CAFA2E5EC195C"><enum>(1)</enum><header>Credit
period</header><text>The term <term>credit period</term> means the 12-year
period beginning on January 1, 2009.</text>
</paragraph><paragraph id="H6242CBADDBE54F6FA195A77DEB8EED7D"><enum>(2)</enum><header>New York liberty
zone governmental unit</header><text>The term <term>New York Liberty Zone
governmental unit</term> means—</text>
<subparagraph id="HC992CC0745724415B1A26E29D81DA36"><enum>(A)</enum><text>the State of New
York,</text>
</subparagraph><subparagraph id="H2D459ED001C44457B1518CD86FA3ED23"><enum>(B)</enum><text>the City of New
York, New York, and</text>
</subparagraph><subparagraph id="H9929E4BE68D8418584DB74026C00536F"><enum>(C)</enum><text>any agency or
instrumentality of such State or City.</text>
</subparagraph></paragraph><paragraph id="HCEAA1457E57247088451CF469047B692"><enum>(3)</enum><header>Treatment of
funds</header><text>Any expenditure for a qualifying project taken into account
for purposes of the credit under this section shall be considered State and
local funds for the purpose of any Federal program.</text>
</paragraph><paragraph id="H65A013A3EB7B42F2BF00EB50C4A7FDD7"><enum>(4)</enum><header>Treatment of
credit amounts for purposes of withholding taxes</header><text>For purposes of
this title, a New York Liberty Zone governmental unit shall be treated as
having paid to the Secretary, on the day on which wages are paid to employees,
an amount equal to the amount of the credit allowed to such entity under
subsection (a) with respect to such wages, but only if such governmental unit
deducts and withholds wages for such payroll period under section 3401
(relating to wage withholding).</text>
</paragraph></subsection><subsection id="H7A7C579A45E94018876E068653D9E264"><enum>(e)</enum><header>Reporting</header><text>The
Governor of the State of New York and the Mayor of the City of New York, New
York, shall jointly submit to the Secretary an annual report—</text>
<paragraph id="H82D139FFAE014F10A7F25C9423463581"><enum>(1)</enum><text>which
certifies—</text>
<subparagraph id="H0E0891F317054828BEC2940032F548C1"><enum>(A)</enum><text>the qualifying
project expenditure amount for the calendar year, and</text>
</subparagraph><subparagraph id="H82D1B3D51E0D4D41B49772AD251E78E1"><enum>(B)</enum><text>the amount
allocated to each New York Liberty Zone governmental unit under subsection
(b)(3) for the calendar year, and</text>
</subparagraph></paragraph><paragraph id="HDA9A2D20E8214BA5B9CD5717B58DF800"><enum>(2)</enum><text>includes such
other information as the Secretary may require to carry out this
section.</text>
</paragraph></subsection><subsection id="H96448A7E26B54FF792CB5767CB28D269"><enum>(f)</enum><header>Guidance</header><text>The
Secretary may prescribe such guidance as may be necessary or appropriate to
ensure compliance with the purposes of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H6B3C4C5236614A3098FD6C41AEE3D32B"><enum>(b)</enum><header>Termination of
special allowance and expensing</header><text>Subparagraph (A) of section
1400K(b)(2), as redesignated by subsection (a), is amended by striking the
parenthetical therein and inserting <quote>(in the case of nonresidential real
property and residential rental property, the date of the enactment of the
<short-title>Energy Independence and Tax Relief Act of
2008</short-title> or, if acquired pursuant to a binding contract in effect on
such enactment date, December 31, 2009)</quote>.</text>
</subsection><subsection id="H2575C3D4B3754456AEAEE8A4B7137417"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H569A115AD98946EBBA953C870070807D"><enum>(1)</enum><text>Section
38(c)(3)(B) is amended by striking <quote>section 1400L(a)</quote> and
inserting <quote>section 1400K(a)</quote>.</text>
</paragraph><paragraph id="H4B4B563B41344CB2A3A94E89218398ED"><enum>(2)</enum><text>Section
168(k)(2)(D)(ii) is amended by striking <quote>section 1400L(c)(2)</quote> and
inserting <quote>section 1400K(c)(2)</quote>.</text>
</paragraph><paragraph id="H39F24C44C06E430D88A23F68F7663326"><enum>(3)</enum><text>The table of
sections for part I of subchapter Y of chapter 1 is amended by redesignating
the item relating to section 1400L as an item relating to section 1400K and by
inserting after such item the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HBD1C66C8625C4DA18EB89DC4826850E0" style="OLC">
<toc container-level="quoted-block-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry level="section">Sec. 1400L. New York Liberty Zone tax
credits.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H118CF388AC17457B9E37FBBFBCB3102"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HC7337FD74ACF48F2B0B61BFAD743106" section-type="subsequent-section"><enum>127.</enum><header>Transportation
fringe benefit to bicycle commuters</header>
<subsection id="H71D8AC8C985149F5A9FF463F29859ED"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 132(f) is amended by adding at
the end the following:</text>
<quoted-block id="H8EA0FC0300BA4B4FB71F7D56B44BF7AE">
<subparagraph id="H8EFFD45F2A0B4C0EB848EF70B975B6F6"><enum>(D)</enum><text>Any qualified
bicycle commuting
reimbursement.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H24A7801D526B4E7F8EA4CE9341FC79B3"><enum>(b)</enum><header>Limitation on
exclusion</header><text>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="HE9D1C660871A4870A29216F3A9980079" style="OLC">
<subparagraph id="H995E2AFB998444F7B865E8BFF33D200"><enum>(C)</enum><text>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 id="H164E6054677B4CC59FDA62D083E37537"><enum>(c)</enum><header>Definitions</header><text>Paragraph
(5) of section 132(f) is amended by adding at the end the following:</text>
<quoted-block id="H4B428A588ADD460D9361FDE310D0D8B6">
<subparagraph id="HBFA643C380D44D0E9F68601FC938444F"><enum>(F)</enum><header>Definitions
related to bicycle commuting reimbursement</header>
<clause id="HAB08DA8301EF470B9DAB9EFF727D04E1"><enum>(i)</enum><header>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 id="HF9C8D8F2078841CCA6A9C60351936599"><enum>(ii)</enum><header>Applicable
annual limitation</header><text>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 id="H2F7135934DC54658B6BBDE7FC800FBD8"><enum>(iii)</enum><header>Qualified
bicycle commuting month</header><text>The term <term>qualified bicycle
commuting month</term> means, with respect to any employee, any month during
which such employee—</text>
<subclause id="HEA19C7DF194947279CF9866D3C729361"><enum>(I)</enum><text display-inline="yes-display-inline">regularly uses the bicycle for a
substantial portion of the travel between the employee’s residence and place of
employment, and</text>
</subclause><subclause id="H3B4B5ED432464748A5C80800C6D0EF81"><enum>(II)</enum><text display-inline="yes-display-inline">does not receive any benefit described in
subparagraph (A), (B), or (C) of paragraph
(1).</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9A8F9E5660174B47827B622066FE008E"><enum>(d)</enum><header>Constructive
receipt of benefit</header><text>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 id="H6E7E59A02BDB4DDEA2005BC13CD5963F"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.</text>
</subsection></section><section display-inline="no-display-inline" id="H4C36D41F64DA43129E0451276C3C50B4" section-type="subsequent-section"><enum>128.</enum><header>Alternative fuel
vehicle refueling property credit</header>
<subsection id="H6AE481CFFD35452B9FFB8D64FEDABF1B"><enum>(a)</enum><header>Increase in
credit amount</header><text>Section 30C is amended—</text>
<paragraph id="H2BF8D0328D554CEFBBB1C1A951A06E59"><enum>(1)</enum><text>by striking
<quote>30 percent</quote> in subsection (a) and inserting <quote>50
percent</quote>, and</text>
</paragraph><paragraph id="H391D58CF27F0409AAE5869EB129533CF"><enum>(2)</enum><text>by striking
<quote>$30,000</quote> in subsection (b)(1) and inserting
<quote>$50,000</quote>.</text>
</paragraph></subsection><subsection id="H464D81D53DB74B318D24EF90D4CFCA86"><enum>(b)</enum><header>Extension of
credit</header><text>Paragraph (2) of section 30C(g) is amended by striking
<quote>December 31, 2009</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBFA89197334641C5B336DAF4A0776E36"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act, in taxable years
ending after such date.</text>
</subsection></section></subtitle><subtitle id="H414080762C5D4FE5A9DEF9DF159BC947"><enum>C</enum><header>Energy
conservation and efficiency provisions</header>
<section id="H80762FAEA6B0411ABB9330954824B7F"><enum>141.</enum><header>Qualified energy
conservation bonds</header>
<subsection id="H366B4F2CDAC44C2780F395A5DABE3BE3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart I of part IV
of subchapter A of chapter 1, as amended by section 106, is amended by adding
at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H84E4FF4893D849EB890056C916790067" style="OLC">
<section display-inline="no-display-inline" id="H85287BA9F6C54044A49405E9007B70A4" section-type="subsequent-section"><enum>54D.</enum><header>Qualified energy
conservation bonds</header>
<subsection id="H89184009FECE48419F19215216ECD1E"><enum>(a)</enum><header>Qualified energy
conservation bond</header><text>For purposes of this subchapter, the term
<term>qualified energy conservation bond</term> means any bond issued as part
of an issue if—</text>
<paragraph display-inline="no-display-inline" id="H8494B31DDA894D339CD8D86D93C1C8CF"><enum>(1)</enum><text>100 percent of the
available project proceeds of such issue are to be used for one or more
qualified conservation purposes,</text>
</paragraph><paragraph id="H708D321609D24FEC97B66900FA19AF61"><enum>(2)</enum><text>the bond is issued
by a State or local government, and</text>
</paragraph><paragraph id="H31CA2F97BCC744C68412F2E331919106"><enum>(3)</enum><text>the issuer
designates such bond for purposes of this section.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H8B7E22A52A8941FF86982D396C23E2FA"><enum>(b)</enum><header>Reduced credit
amount</header><text>The annual credit determined under section 54A(b) with
respect to any qualified energy conservation bond shall be 70 percent of the
amount so determined without regard to this subsection.</text>
</subsection><subsection display-inline="no-display-inline" id="HEE478747B17E4CEE8F0003B32FAD0685"><enum>(c)</enum><header>Limitation on
amount of bonds designated</header><text>The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any issuer shall not
exceed the limitation amount allocated to such issuer under subsection
(e).</text>
</subsection><subsection id="H446046B19D6C40C08DF9B05E21FF7274"><enum>(d)</enum><header>National
limitation on amount of bonds designated</header><text>There is a national
qualified energy conservation bond limitation of $3,000,000,000.</text>
</subsection><subsection id="H694DE299D4AD43DAB8AF563C4E10C7A8"><enum>(e)</enum><header>Allocations</header>
<paragraph id="H6303F183B8FA432A9D1F00D061113FB7"><enum>(1)</enum><header>In
general</header><text>The limitation applicable under subsection (d) shall be
allocated by the Secretary among the States in proportion to the population of
the States.</text>
</paragraph><paragraph id="HB61F28231DBC45AC9448487F0065965B"><enum>(2)</enum><header>Allocations to
largest local governments</header>
<subparagraph id="HA171DE4961434D3A83894D4E279D8503"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of any
State in which there is a large local government, each such local government
shall be allocated a portion of such State’s allocation which bears the same
ratio to the State’s allocation (determined without regard to this
subparagraph) as the population of such large local government bears to the
population of such State.</text>
</subparagraph><subparagraph id="H6D9E1F239D2641579FEC6B91075D9162"><enum>(B)</enum><header>Allocation of
unused limitation to State</header><text>The amount allocated under this
subsection to a large local government may be reallocated by such local
government to the State in which such local government is located.</text>
</subparagraph><subparagraph id="H256C0E22BB4E4D05B8635EB6241BE00"><enum>(C)</enum><header>Large local
government</header><text>For purposes of this section, the term <term>large
local government</term> means any municipality or county if such municipality
or county has a population of 100,000 or more.</text>
</subparagraph></paragraph><paragraph id="H4BEF0B18F35E43C0B6E9361100D726F7"><enum>(3)</enum><header>Allocation to
issuers; restriction on private activity bonds</header><text>Any allocation
under this subsection to a State or large local government shall be allocated
by such State or large local government to issuers within the State in a manner
that results in not less than 70 percent of the allocation to such State or
large local government being used to designate bonds which are not private
activity bonds.</text>
</paragraph></subsection><subsection id="HF8DA9102D8ED4C8A86800021D0664F92"><enum>(f)</enum><header>Qualified
conservation purpose</header><text>For purposes of this section—</text>
<paragraph id="H04C628095E134DC8B5B8C3205EA00B8"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified conservation purpose</term>
means any of the following:</text>
<subparagraph id="H1E7D707CE7DE48CC8CC41F944533DC77"><enum>(A)</enum><text display-inline="yes-display-inline">Capital expenditures incurred for purposes
of—</text>
<clause id="H29F93D7CA5D7477590BCE0D66817FA1C"><enum>(i)</enum><text>reducing energy
consumption in publicly-owned buildings by at least 20 percent,</text>
</clause><clause id="HEE36442EFFE540B58CAC35E6AB2B6D8F"><enum>(ii)</enum><text>implementing
green community programs,</text>
</clause><clause id="HFBAA2C29445C4B34B988AF93D6FEC000"><enum>(iii)</enum><text>rural
development involving the production of electricity from renewable energy
resources, or</text>
</clause><clause id="H4B2841014A134D618011B2A7F0B7A100"><enum>(iv)</enum><text>any qualified
facility (as determined under section 45(d) without regard to paragraphs (8)
and (10) thereof and without regard to any placed in service date).</text>
</clause></subparagraph><subparagraph id="HCC1A91ED1DF94987AF39EA59B66F7BB"><enum>(B)</enum><text>Expenditures with
respect to research facilities, and research grants, to support research
in—</text>
<clause id="HCCB16B51EFC840A3B338347682CEAA64"><enum>(i)</enum><text>development of
cellulosic ethanol or other nonfossil fuels,</text>
</clause><clause id="H24D96FFCB49043019C067C5213BDBF86"><enum>(ii)</enum><text>technologies for
the capture and sequestration of carbon dioxide produced through the use of
fossil fuels,</text>
</clause><clause id="H584597BECF6047B28B1866FA32A80226"><enum>(iii)</enum><text>increasing the
efficiency of existing technologies for producing nonfossil fuels,</text>
</clause><clause id="H3A3F4A15CBB9499A8006043BBB1899D3"><enum>(iv)</enum><text>automobile
battery technologies and other technologies to reduce fossil fuel consumption
in transportation, or</text>
</clause><clause id="H1AF35082D1AE4623B3A018D7570009CD"><enum>(v)</enum><text>technologies to
reduce energy use in buildings.</text>
</clause></subparagraph><subparagraph id="H15039A0AB1FA4D3F83767E725DD550AC"><enum>(C)</enum><text>Mass commuting
facilities and related facilities that reduce the consumption of energy,
including expenditures to reduce pollution from vehicles used for mass
commuting.</text>
</subparagraph><subparagraph id="HDF72D343679443F0BAC251F8DC964B1B"><enum>(D)</enum><text>Demonstration
projects designed to promote the commercialization of—</text>
<clause id="HB02EBF58984A46E38DCD39F46489ABB9"><enum>(i)</enum><text>green building
technology,</text>
</clause><clause id="H0FE7E8F635CD42B9B1506140B4361EFF"><enum>(ii)</enum><text>conversion of
agricultural waste for use in the production of fuel or otherwise,</text>
</clause><clause id="HFB0347AF0C5249E58847727F37FB43D5"><enum>(iii)</enum><text>advanced battery
manufacturing technologies,</text>
</clause><clause id="H87D57173C02141F490988C94A180DAA5"><enum>(iv)</enum><text>technologies to
reduce peak use of electricity, or</text>
</clause><clause id="H23FC4B6BF134457BB588B9FCFA2A2D"><enum>(v)</enum><text>technologies for the
capture and sequestration of carbon dioxide emitted from combusting fossil
fuels in order to produce electricity.</text>
</clause></subparagraph><subparagraph id="H82B3DDA0908747D5A62F845FF9645E63"><enum>(E)</enum><text>Public education
campaigns to promote energy efficiency.</text>
</subparagraph></paragraph><paragraph id="H6FBE4571B8D24A3693E788C5A409E1A0"><enum>(2)</enum><header>Special rules
for private activity bonds</header><text>For purposes of this section, in the
case of any private activity bond, the term <term>qualified conservation
purposes</term> shall not include any expenditure which is not a capital
expenditure.</text>
</paragraph></subsection><subsection id="H92A2DC3A29074B00882411C5DF993761"><enum>(g)</enum><header>Population</header>
<paragraph id="H2CA13D0C475B45BC8094F618FA409E3E"><enum>(1)</enum><header>In
general</header><text>The population of any State or local government shall be
determined for purposes of this section as provided in section 146(j) for the
calendar year which includes the date of the enactment of this section.</text>
</paragraph><paragraph id="H41B7B2B6F97149A3A2A53E57162EDF8B"><enum>(2)</enum><header>Special rule for
counties</header><text>In determining the population of any county for purposes
of this section, any population of such county which is taken into account in
determining the population of any municipality which is a large local
government shall not be taken into account in determining the population of
such county.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HB6368F76FD8F4BC49F8670A080D35FE9"><enum>(h)</enum><header>Application to
Indian tribal governments</header><text>An Indian tribal government shall be
treated for purposes of this section in the same manner as a large local
government, except that—</text>
<paragraph id="HFA35678B9C3141B389BE5E7452AE346"><enum>(1)</enum><text>an Indian tribal
government shall be treated for purposes of subsection (e) as located within a
State to the extent of so much of the population of such government as resides
within such State, and</text>
</paragraph><paragraph id="H80063981B4EC4B5498BE9EA73B9530ED"><enum>(2)</enum><text>any bond issued by
an Indian tribal government shall be treated as a qualified energy conservation
bond only if issued as part of an issue the available project proceeds of which
are used for purposes for which such Indian tribal government could issue bonds
to which section 103(a)
applies.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8FBDBE71CE3E4736ACC35ECE65BEC5D5"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H9C898EAC256A476D96F46841D7E66D8C"><enum>(1)</enum><text>Paragraph (1) of
section 54A(d), as amended by section 106, is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H55DD93BB35824961BA63AB09112FCC9C" style="OLC">
<paragraph commented="no" id="HE08BE88BA86046E79FDBB677EDE61350"><enum>(1)</enum><header>Qualified tax
credit bond</header><text>The term <term>qualified tax credit bond</term>
means—</text>
<subparagraph commented="no" id="id79BA94FFA8E24FBA9361E8B0B8615CF9"><enum>(A)</enum><text>a qualified
forestry conservation bond,</text>
</subparagraph><subparagraph id="H30E9F49A76874024005C00002DB2C582"><enum>(B)</enum><text>a new clean
renewable energy bond, or</text>
</subparagraph><subparagraph id="H11D8708E4AFE42A4BE7775271204DBB1"><enum>(C)</enum><text>a qualified energy
conservation bond,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">which is
part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and
(6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB064D25FEA114B35B57BEAC0022D900"><enum>(2)</enum><text>Subparagraph (C) of
section 54A(d)(2), as amended by section 106, is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H2A247C96C92D445496F4D9AB661104CC" style="OLC">
<subparagraph commented="no" id="HD72F349C246C410B9193B1B9A5B1086B"><enum>(C)</enum><header>Qualified
purpose</header><text>For purposes of this paragraph, the term <term>qualified
purpose</term> means—</text>
<clause commented="no" id="id2946387A02FE4A41823C8B26C1AB011C"><enum>(i)</enum><text>in the case of a
qualified forestry conservation bond, a purpose specified in section
54B(e),</text>
</clause><clause id="H5D9D44559B244B76A321F69D5118B1C3"><enum>(ii)</enum><text>in the case of a
new clean renewable energy bond, a purpose specified in section 54C(a)(1),
and</text>
</clause><clause id="HBF0DF86E47AE4D5392D7582FA300375E"><enum>(iii)</enum><text>in the case of a
qualified energy conservation bond, a purpose specified in section
54D(a)(1).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0A5B065D13A24F66AC007FA0E6508FA"><enum>(3)</enum><text display-inline="yes-display-inline">The table of sections for subpart I of part
IV of subchapter A of chapter 1 is amended by adding at the end the following
new item:</text>
<quoted-block display-inline="no-display-inline" id="HEE986F1AC7604181BD50AF0791DAE3FD" style="OLC">
<toc container-level="quoted-block-container" idref="H84E4FF4893D849EB890056C916790067" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H85287BA9F6C54044A49405E9007B70A4" level="section">Sec. 54D. Qualified energy conservation
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HEF36F5327CE0441A819EAB2FA5BEE7D4"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HE3FC351DFD65445383E7492946B7A155" section-type="subsequent-section"><enum>142.</enum><header>Credit for
nonbusiness energy property</header>
<subsection commented="no" id="H8A11E37B09064EA6A3A9DFBE1FB2D00"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Section 25C(g) is
amended by striking <quote>December 31, 2007</quote> and inserting
<quote>December 31, 2008</quote>.</text>
</subsection><subsection commented="no" id="HA48B7A33C404418981E9DF3E65F032AE"><enum>(b)</enum><header>Qualified
biomass fuel property</header>
<paragraph commented="no" id="H6EC5366AA5E342A2B8D612BBBD81E2FB"><enum>(1)</enum><header>In
general</header><text>Section 25C(d)(3) is amended—</text>
<subparagraph commented="no" id="HAD5734D1B12C4EA19EC3AF00E23B3511"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (D),</text>
</subparagraph><subparagraph commented="no" id="H6BE1A6A5F86A4A8AB29F00ACFBFDB964"><enum>(B)</enum><text>by striking the
period at the end of subparagraph (E) and inserting <quote>, and</quote>,
and</text>
</subparagraph><subparagraph commented="no" id="H0D834FE8F4E441618FFA118DC3B44847"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block act-name="" id="H1E70A43AA3E44243A63F0094D016C85D" style="OLC">
<subparagraph commented="no" id="H70AFF7E5AE8E4B630035795F301D932B"><enum>(F)</enum><text>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" id="H7039DBEC3FBB4799B1B55F43151FE75E"><enum>(2)</enum><header>Biomass
fuel</header><text>Section 25C(d) is amended by adding at the end the following
new paragraph:</text>
<quoted-block act-name="" id="H37AD937145844C570037128DCC227E15" style="OLC">
<paragraph commented="no" id="H6A38CBDFD1C344C1A21D9378BD538D86"><enum>(6)</enum><header>Biomass
fuel</header><text>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 id="H34D7444BA7E84220A2EA9740C1DA72BC"><enum>(c)</enum><header>Coordination
with credit for qualified geothermal heat Pump property expenditures</header>
<paragraph id="HF873EA2C1AF64F7389A674376C5C1FDB"><enum>(1)</enum><header>In
general</header><text>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 id="H9D43AF099E7F484189C1E4F35300A828"><enum>(2)</enum><header>Conforming
amendment</header><text>Subparagraph (C) of section 25C(d)(2) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H5AC68A0B288248A0A312775464F28CF3" style="OLC">
<subparagraph id="H6F2B2DB86BDD473697D06DAB06D8436"><enum>(C)</enum><header>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 id="HF0B9F7A5DD214304A446799D4BC7EAD5"><enum>(i)</enum><text>shall require
measurements to be based on published data which is tested by manufacturers at
95 degrees Fahrenheit, and</text>
</clause><clause id="H5608373826B04D779E48C2FA34FCA6B"><enum>(ii)</enum><text>may be based on
the certified data of the Air Conditioning and Refrigeration Institute that are
prepared in partnership with the Consortium for Energy
Efficiency.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD009D835B76B4483A75E0D7C2E6FA0FA"><enum>(d)</enum><header>Modification of
qualified energy efficiency improvements</header>
<paragraph commented="no" display-inline="no-display-inline" id="id29F7A278CD8044DC81E8F379D9A12145"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 25C(c) is amended by inserting
<quote>, or an asphalt roof with appropriate cooling granules,</quote> before
<quote>which meet the Energy Star program requirements</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1E8EF059EF9240C69A0A7D45216F5025"><enum>(2)</enum><header>Building
envelope component</header><text>Subparagraph (D) of section 25C(c)(2) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id145D76697CBC4C989E9EC1CF16A1A272"><enum>(A)</enum><text>by inserting
<quote>or asphalt roof</quote> after <quote>metal roof</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF2E63964448E492885E0E6216A6B6776"><enum>(B)</enum><text>by inserting
<quote>or cooling granules</quote> after <quote>pigmented
coatings</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HB3625A44EF9241FD86D2C6B74EF84DB1"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="id822A6E5D479E4C01B6E9A0E8CDB570C2"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
this section shall apply to expenditures made after December 31, 2007.</text>
</paragraph><paragraph id="idC48938BF5DC2434CB58A353F74A8CE3C"><enum>(2)</enum><header>Modification of
qualified energy efficiency improvements</header><text>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 display-inline="no-display-inline" id="HA43A73ADCA924CBB8588CDE8E328B48F" section-type="subsequent-section"><enum>143.</enum><header>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 display-inline="no-display-inline" id="HC8E7F079ECF4414EAC1D586F39A3646C" section-type="subsequent-section"><enum>144.</enum><header>Modifications of
energy efficient appliance credit for appliances produced after 2007</header>
<subsection id="H7A8530BA2257493283E8EDB77838BB1B"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 45M is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HE05CD649346843E8BCCEDF8945A0C263" style="OLC">
<subsection id="HAF358754003E41C4B98691AE590F534"><enum>(b)</enum><header>Applicable
amount</header><text>For purposes of subsection (a)—</text>
<paragraph id="H0236C851612943AF8CDD530072D8F6F5"><enum>(1)</enum><header>Dishwashers</header><text>The
applicable amount is—</text>
<subparagraph id="H04D9C6591D23423D901BCF0074BD8C00"><enum>(A)</enum><text>$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 id="H1D92D0F645F9485086DE56511E00F487"><enum>(B)</enum><text>$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 id="H397C3360ADCA420D9EDCCB633E212933"><enum>(2)</enum><header>Clothes
washers</header><text>The applicable amount is—</text>
<subparagraph id="H0AD9890093EA4ADD9B1C243D6DF1B875"><enum>(A)</enum><text>$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 id="H5BE2CF3901B84B8DAF225FBBC8B98B00"><enum>(B)</enum><text>$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 id="HE3FD3B5C50B3480AAE1755F92200EB99"><enum>(C)</enum><text>$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 id="HE10CEB853A6E4C4590185EAF5D31A4D4"><enum>(D)</enum><text>$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 id="H19A81C7DAF0243DF928567DBC3CA7594"><enum>(3)</enum><header>Refrigerators</header><text>The
applicable amount is—</text>
<subparagraph id="H1691B27D033A4909AAEFAB90C7EA77A3"><enum>(A)</enum><text>$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 id="H2513A6F0846644BEA0BF96C6F2C4C65C"><enum>(B)</enum><text>$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 id="H15525DBA115546C9902BFE097E6B10A8"><enum>(C)</enum><text>$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 id="H5B8230A8B759407A8C691D8BADA1C527"><enum>(D)</enum><text>$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 id="HF4C45125D54741849BF365DDAD85E6D"><enum>(b)</enum><header>Eligible
production</header>
<paragraph id="H8F461CD0CFDF4363ADF7C94FDC1DBDE5"><enum>(1)</enum><header>Similar
treatment for all appliances</header><text>Subsection (c) of section 45M is
amended—</text>
<subparagraph id="H74DF31B6FEDD470895D127AF96E2AD2E"><enum>(A)</enum><text>by striking
paragraph (2),</text>
</subparagraph><subparagraph id="HA6149FE0C5684FE990688BFDD4CE10DF"><enum>(B)</enum><text>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 id="H8924E7024B8C475CBC74D46C2797FDD0"><enum>(C)</enum><text>by moving the text
of such subsection in line with the subsection heading, and</text>
</subparagraph><subparagraph id="H61AE2584659A498BB02EAD003B922BEC"><enum>(D)</enum><text>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 id="HA6385C08513848C4AA96C57FAA9FAB89"><enum>(2)</enum><header>Modification of
base period</header><text>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 id="H52748707465248D2B42396A7D6D24B65"><enum>(c)</enum><header>Types of energy
efficient appliances</header><text>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="HB3B2ED0D48F74FED8000842040B3805D" style="OLC">
<subsection id="HFEEC3BE3E33E465C94E25297E6A168A2"><enum>(d)</enum><header>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 id="H284D70819E604EAB92DF58A74E44C296"><enum>(1)</enum><text>dishwashers
described in subsection (b)(1),</text>
</paragraph><paragraph id="HD76B62456DC8413A856F2E0020EE5834"><enum>(2)</enum><text>clothes washers
described in subsection (b)(2), and</text>
</paragraph><paragraph id="HD7DC761C243A43FCBFBE8578A9D31B42"><enum>(3)</enum><text>refrigerators
described in subsection
(b)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HF006590DBEF648AB847CD8916DECAD29"><enum>(d)</enum><header>Aggregate credit
amount allowed</header>
<paragraph id="H7E9EFD7128FE4C1EB655A4729DBE78A7"><enum>(1)</enum><header>Increase in
limit</header><text>Paragraph (1) of section 45M(e) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H181A2B4F4237435F98D02100751300D0" style="OLC">
<paragraph id="H565933B1EF3648B4B396E57F8F336120"><enum>(1)</enum><header>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 id="H201C6B2BEC9D443497F11FD203780888"><enum>(2)</enum><header>Exception for
certain refrigerator and clothes washers</header><text>Paragraph (2) of section
45M(e) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H74052D77A52D4F949C9EFCBB1E9413" style="OLC">
<paragraph id="HE0E7CAE264954D339F93C8BFE426DF63"><enum>(2)</enum><header>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 id="HCB74DB392EB044E28C8B4B006DB4E6F6"><enum>(e)</enum><header>Qualified energy
efficient appliances</header>
<paragraph id="HF10AE3EFDA814E379DB44F25F75313D2"><enum>(1)</enum><header>In
general</header><text>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="H68E5577F09C84FF692002FFE2029FEDF" style="OLC">
<paragraph id="H40E71B2B4CAD4D3FB93E3FAEC9CDFE12"><enum>(1)</enum><header>Qualified energy
efficient appliance</header><text display-inline="yes-display-inline">The term
<term>qualified energy efficient appliance</term> means—</text>
<subparagraph id="H12C9DF35EC7E42BEB5DAAF26D9370EB"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection
(b)(1),</text>
</subparagraph><subparagraph id="H68BC2936A87C47999D00BEDA329CC266"><enum>(B)</enum><text>any clothes washer
described in subsection (b)(2), and</text>
</subparagraph><subparagraph id="H46D76803708A4E18BCA63FD4EBDB1D0"><enum>(C)</enum><text>any refrigerator
described in subsection
(b)(3).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HBB712A837DD044FFA37B4616E3C01910"><enum>(2)</enum><header>Clothes
washer</header><text>Section 45M(f)(3) is amended by inserting
<quote>commercial</quote> before <quote>residential</quote> the second place it
appears.</text>
</paragraph><paragraph id="HB775FF3417AC498A8B5D5DB046565F4F"><enum>(3)</enum><header>Top-loading
clothes washer</header><text>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="HBBCA6067CADD4A5A83288825AB879EF1" style="OLC">
<paragraph id="H93C952DF05FC43D3A4D0ADB7F18DAA82"><enum>(4)</enum><header>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 id="H5A7E980EBEAD46A196B1EE4B7F77DFB7"><enum>(4)</enum><header>Replacement of
energy factor</header><text>Section 45M(f)(6), as redesignated by paragraph
(3), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA6C493D947414564ADC3F6138442AF87" style="OLC">
<paragraph id="HC66F71AFCA4747FEAFE907A212FF09A8"><enum>(6)</enum><header>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 id="H42F95F9489D04CE1961E13D4786BFEA5"><enum>(5)</enum><header>Gallons per
cycle; water consumption factor</header><text>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="H1290DE2F2ED747EA9D2199E4271C19D5" style="OLC">
<paragraph id="H1A337CB4A80140E9A53E689B72EF2474"><enum>(9)</enum><header>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 id="HC226D53CE29840E8A6B788E33F6BEA08"><enum>(10)</enum><header>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 id="H28EF5B729B9445A99194C40065BE9E96"><enum>(f)</enum><header>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 display-inline="no-display-inline" id="H932AF940B38544748B071E4D2E6EDE17" section-type="subsequent-section"><enum>145.</enum><header>Accelerated recovery
period for depreciation of smart meters and smart grid systems</header>
<subsection id="HD393F0B85F3D4BD5A9F89523D26168F6"><enum>(a)</enum><header>In
general</header><text>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 id="H0C1A422D4EEE4488AC8D2F3023B1F4B9" style="OLC">
<clause id="H2E63CDCB81854BE8AA8724CAF59D0000"><enum>(iii)</enum><text>any qualified
smart electric meter, and</text>
</clause><clause id="H47B869B83BA74054AF8C70C81F6F9E32"><enum>(iv)</enum><text>any qualified
smart electric grid
system.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7B9AE5114A5145BBB1399EFA952B2DF6"><enum>(b)</enum><header>Definitions</header><text>Section
168(i) is amended by inserting at the end the following new paragraph:</text>
<quoted-block id="H3ECE9F181A3B48C6AFE67464815CB453" style="OLC">
<paragraph display-inline="no-display-inline" id="H43FB116E81A94CCDA1846274370028CE"><enum>(18)</enum><header>Qualified smart
electric meters</header>
<subparagraph id="H92DAE4AD0E7B4D25B894008D54EE66DD"><enum>(A)</enum><header>In
general</header><text>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 id="HCFE02749C31A455FB9D5AFA5BEA4A337"><enum>(B)</enum><header>Smart electric
meter</header><text>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 id="H7B97BC433FBD4D6C87E4DFC132ED851"><enum>(i)</enum><text>measures and
records electricity usage data on a time-differentiated basis in at least 24
separate time segments per day,</text>
</clause><clause id="HD90AA1A2D23C44ECABE5AB474C697DA0"><enum>(ii)</enum><text>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 id="HAD47F012CA704867A54EE79E958434DC"><enum>(iii)</enum><text>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 id="HB53FE2BB747B46C4B1F4EE065956E8B7"><enum>(iv)</enum><text>provides net
metering.</text>
</clause></subparagraph></paragraph><paragraph id="H536BBE8DA4994C68BCFAFC03E98592F2"><enum>(19)</enum><header>Qualified smart
electric grid systems</header>
<subparagraph id="H1534DF5D6ED147CEA5EA8513FA6C7461"><enum>(A)</enum><header>In
general</header><text>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 id="H446B80E9286547D095809200CCFB2914"><enum>(B)</enum><header>Smart grid
property</header><text>For the purposes of subparagraph (A), the term
<quote>smart grid property</quote> means electronics and related equipment that
is capable of—</text>
<clause id="H5D484E995F024FAD9EB40016870974BF"><enum>(i)</enum><text>sensing,
collecting, and monitoring data of or from all portions of a utility’s electric
distribution grid,</text>
</clause><clause id="H9AB2E2AD15814C18A8C5C8C88547FFB9"><enum>(ii)</enum><text>providing
real-time, two-way communications to monitor or manage such grid, and</text>
</clause><clause id="HB0398693920C42639432DCFC6D36F216"><enum>(iii)</enum><text>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 id="H57A3C1B5C0104C1A9EBA53D6BBF45904"><enum>(c)</enum><header>Continued
application of 150 percent declining balance method</header><text>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="HA56163C017464AC1AE00A4DDCD688FE" style="OLC">
<subparagraph id="H8199F31299844A218DC103EC44ABDE94"><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 id="H582C79F53BC943C0A9A618044C36FE59"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section id="HC8238A1A7B2446C8A6CF242C9A6BC6"><enum>146.</enum><header>Qualified green
building and sustainable design projects</header>
<subsection id="H302C3724BA57428785F2432DBEB028B7"><enum>(a)</enum><header>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 id="H3E9D484C61AA45CF9754C1AA44622738"><enum>(b)</enum><header>Treatment of
current refunding bonds</header><text>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 id="HEEEEA6FA3C794A39B43E72E5655631D0"><enum>(c)</enum><header>Accountability</header><text>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>One-year
extension of temporary provisions</header>
<subtitle id="id7E6D97072BE04F2D961EE0EC81342860"><enum>A</enum><header>Alternative
minimum tax</header>
<section commented="no" id="H57DC299C7B1245FEBE481139B8F237A6"><enum>201.</enum><header>Extension of
alternative minimum tax relief for nonrefundable personal credits</header>
<subsection commented="no" id="HEC363C8528CC4D64ADE77577C7B3F5B3"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 26(a) (relating to special rule
for taxable years 2000 through 2007) is amended—</text>
<paragraph commented="no" id="HB37EAC7763544FEFBF8EBE5127100076"><enum>(1)</enum><text>by striking
<quote>or 2007</quote> and inserting <quote>2007, or 2008</quote>, and</text>
</paragraph><paragraph commented="no" id="H0753F138348F4CDDA5C28B350027ECAD"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">2007</header-in-text></quote> in the heading thereof and inserting
<quote><header-in-text level="paragraph" style="OLC">2008</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6D371EEC1BE54139949E281F55C00D3"><enum>(b)</enum><header> Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H31808C50F0D041CCACF2EA2731CBB8" section-type="subsequent-section"><enum>202.</enum><header>Extension of
increased alternative minimum tax exemption amount</header>
<subsection commented="no" id="HF61F3B9876424A85B5D9ADE858368D6C"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 55(d) (relating to exemption
amount) is amended—</text>
<paragraph commented="no" id="HAF91B01B4DE6433EBDDE6CD6E82FEBC7"><enum>(1)</enum><text>by striking
<quote>($66,250 in the case of taxable years beginning in 2007)</quote> in
subparagraph (A) and inserting <quote>($69,950 in the case of taxable years
beginning in 2008)</quote>, and</text>
</paragraph><paragraph commented="no" id="H5C96436946D04E84B9A074D1784DCEC9"><enum>(2)</enum><text>by striking
<quote>($44,350 in the case of taxable years beginning in 2007)</quote> in
subparagraph (B) and inserting <quote>($46,200 in the case of taxable years
beginning in 2008)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0D21C9D2E96A4E2F00E7FD74BFEAD2F6"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H7E8D0B0D80784BC4B187CE022EA7F616" section-type="subsequent-section"><enum>203.</enum><header>Increase of AMT
refundable credit amount for individuals with long-term unused credits for
prior year minimum tax liability, etc</header>
<subsection commented="no" id="H14D595CD2A5748FE822E10AF781E6EA7"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 53(e) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H8CFC1A6CBB994216A2330071A623F8A0" style="OLC">
<paragraph commented="no" id="H6BEEFE93E7614E5D984E3687D10075D5"><enum>(2)</enum><header>AMT refundable
credit amount</header><text>For purposes of paragraph (1), the term <quote>AMT
refundable credit amount</quote> means, with respect to any taxable year, the
amount (not in excess of the long-term unused minimum tax credit for such
taxable year) equal to the greater of—</text>
<subparagraph commented="no" id="H8DC91D1AF8904958BE036F07F600F0E9"><enum>(A)</enum><text>50 percent of the
long-term unused minimum tax credit for such taxable year, or</text>
</subparagraph><subparagraph commented="no" id="HA440117C62B0488ABDAB125D0758479"><enum>(B)</enum><text display-inline="yes-display-inline">the amount (if any) of the AMT refundable
credit amount for the taxpayer’s preceding taxable year (determined without
regard to subsection
(f)(2)).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HEDE99CCC21AC4473AF59E6E620443698"><enum>(b)</enum><header>Treatment of
certain underpayments, interest, and penalties attributable to the treatment of
incentive stock options</header><text>Section 53 is amended by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H756C721615C84701B49216A00718900" style="OLC">
<subsection commented="no" id="H83B871B819CB4BF6BF87F12E60EF9EDA"><enum>(f)</enum><header>Treatment of
certain underpayments, interest, and penalties attributable to the treatment of
incentive stock options</header>
<paragraph commented="no" id="H81BADABC31F643FB97A8BD2A0BEEBA0"><enum>(1)</enum><header>Abatement</header><text>Any
underpayment of tax outstanding on the date of the enactment of this subsection
which is attributable to the application of section 56(b)(3) for any taxable
year ending before January 1, 2008 (and any interest or penalty with respect to
such underpayment which is outstanding on such date of enactment), is hereby
abated. The amount determined under subsection (b)(1) shall not include any tax
abated under the preceding sentence.</text>
</paragraph><paragraph commented="no" id="H3C67E4AC1DBF4E16A53E14432D250123"><enum>(2)</enum><header>Increase in
credit for certain interest and penalties already paid</header><text display-inline="yes-display-inline">The AMT refundable credit amount, and the
minimum tax credit determined under subsection (b), for the taxpayer’s first 2
taxable years beginning after December 31, 2007, shall each be increased by 50
percent of the aggregate amount of the interest and penalties which were paid
by the taxpayer before the date of the enactment of this subsection and which
would (but for such payment) have been abated under paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H16718D3BBF6342138C5FF391A83395E0"><enum>(c)</enum><header>Effective
date</header>
<paragraph commented="no" id="HACF40704C86C4E3D858D2E0085616732"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendment made
by this section shall apply to taxable years beginning after December 31,
2007.</text>
</paragraph><paragraph commented="no" id="H49EAB12F663D46D48108F1C2D82E81F8"><enum>(2)</enum><header>Abatement</header><text>Section
53(f)(1) of the Internal Revenue Code of 1986, as added by subsection (b),
shall take effect on the date of the enactment of this Act.</text>
</paragraph></subsection></section></subtitle><subtitle id="H096EC1A86BEF42C9B4CA82312ED830AA"><enum>B</enum><header>Extensions
Primarily Affecting Individuals</header>
<section commented="no" display-inline="no-display-inline" id="HB94DF83EAB2C4D0C9BB92970C600FE49" section-type="subsequent-section"><enum>211.</enum><header>Deduction for State
and local sales taxes</header>
<subsection commented="no" id="HE3DD2C63622C4BD6BC538CB687254405"><enum>(a)</enum><header>In
general</header><text>Subparagraph (I) of section 164(b)(5) is amended by
striking <quote>January 1, 2008</quote> and inserting <quote>January 1,
2009</quote>.</text>
</subsection><subsection commented="no" id="H96AFAA8AD3B14CFA8EB122495C0082F1"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="HC37D5C603E9346699CFA6D515CDE1B34" section-type="subsequent-section"><enum>212.</enum><header>Deduction of
qualified tuition and related expenses</header>
<subsection id="HDB2C5DFD33484CF7BC519282418DA306"><enum>(a)</enum><header>In
general</header><text>Subsection (e) of section 222 is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H4B8F282A2D914DF7A900008DF23FB4DE"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="HB223FC8EFB3C418DAF22F70865B4B849"><enum>213.</enum><header>Treatment of
certain dividends of regulated investment companies</header>
<subsection id="H956BB2ED4CEA4F459B5369CD7D20FB18"><enum>(a)</enum><header>Interest-related
dividends</header><text>Subparagraph (C) of section 871(k)(1) (defining
interest-related dividend) is amended by striking <quote>December 31,
2007</quote> and inserting <quote>December 31, 2008</quote>.</text>
</subsection><subsection display-inline="no-display-inline" id="H11F357D31561400F9065F8CF82BA9212"><enum>(b)</enum><header>Short-term
capital gain dividends</header><text display-inline="yes-display-inline">Subparagraph (C) of section 871(k)(2)
(defining short-term capital gain dividend) is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H800B400D0A604E209801009CB419247E"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to dividends
with respect to taxable years of regulated investment companies beginning after
December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="H55F1E493236B459EA72E785DCD65C0C3" section-type="subsequent-section"><enum>214.</enum><header>Tax-free
distributions from individual retirement plans for charitable purposes</header>
<subsection id="H8E1B19DE8F8A4B75A0126B16F6D8464C"><enum>(a)</enum><header>In
general</header><text>Subparagraph (F) of section 408(d)(8) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H9F81E03BD35142ECABBF06897CF4AC4E"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
distributions made in taxable years beginning after December 31, 2007.</text>
</subsection></section><section id="H73CFABE52B134C56A7084D4BBC1D4CBB"><enum>215.</enum><header>Deduction for
certain expenses of elementary and secondary school teachers</header>
<subsection id="H2C42A90E1BD94697A2C0C6E7DCAE461B"><enum>(a)</enum><header>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, or 2008</quote>.</text>
</subsection><subsection id="H550999B3CF15483CB801E34B047989FA"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="HF5290986C362468289D8C8D2DBCC277B"><enum>216.</enum><header>Stock in RIC
for purposes of determining estates of nonresidents not citizens</header>
<subsection id="H293A9D2FEFAC45C9978BE7E4FA50B2CB"><enum>(a)</enum><header>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, 2008</quote>.</text>
</subsection><subsection id="HF1E59ADD4A06438CA787C44EADC16B00"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to decedents
dying after December 31, 2007.</text>
</subsection></section><section id="HF1002583CC704915B6F915B3B35B7559"><enum>217.</enum><header>Qualified
investment entities</header>
<subsection id="H9FA6A62AC29D470585C888EFC8E1EE5E"><enum>(a)</enum><header>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, 2008</quote>.</text>
</subsection><subsection id="HAE72DCF47F8D435189B98698DCF9277D"><enum>(b)</enum><header>Effective
date</header><text>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 id="H935B038ED6EB4F47B8E8D800CDD93BD9"><enum>218.</enum><header>Exclusion of
amounts received under qualified group legal services plans</header>
<subsection id="HE055231F14A04361A57389B7205FCA66"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (e) of
section 120 is amended by striking <quote>shall not apply to taxable years
beginning after June 30, 1992</quote> and inserting <quote>shall apply to
taxable years beginning after December 31, 2007, and before January 1,
2009</quote>.</text>
</subsection><subsection id="HF464D89F2C2A46DC89B054EC7261D26D"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section></subtitle><subtitle id="HA56C48454E8D4262BD3270645C388659"><enum>C</enum><header>Extensions
Primarily Affecting Businesses</header>
<section id="id8C04D6A5F6E9420AADCF63FFB7DB465D"><enum>221.</enum><header>Extension and
modification of research credit</header>
<subsection id="id38E78F1C8EAB480FB0013A4738D39FC8"><enum>(a)</enum><header>Extension</header><text>Section
41(h) (relating to termination) is amended—</text>
<paragraph id="idBC5CB29BA9AC49E3A0335EA240F25BB6"><enum>(1)</enum><text>by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31, 2008</quote>
in paragraph (1)(B),</text>
</paragraph><paragraph id="idDBFA1DA5B4FB4BC7B83D32C14514DB7A"><enum>(2)</enum><text>by redesignating
paragraph (2) as paragraph (3), and</text>
</paragraph><paragraph id="id385C9180FD1D40AAB31736AE83CE942B"><enum>(3)</enum><text>by inserting
after paragraph (1) the following new paragraph:</text>
<quoted-block act-name="" id="idCF380E917130436694F980323F92B0E4" style="OLC">
<paragraph id="id1CA0F87C8BD24C91A6CAC70DFBB7E2D3"><enum>(2)</enum><header>Termination of
alternative incremental credit</header><text>No election under subsection
(c)(4) shall apply to amounts paid or incurred after December 31,
2007.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idDE56EF299B3A4B28A45D27692779FBEB"><enum>(b)</enum><header>Modification of
alternative simplified credit</header><text>Paragraph (5)(A) of section 41(c)
(relating to election of alternative simplified credit) is amended to read as
follows:</text>
<quoted-block act-name="" id="id7257ACE457E844E5BF806AF368FE90E1" style="OLC">
<subparagraph id="id4A7A2CF159134B1EBB62D30750F427FA"><enum>(A)</enum><header>In
general</header><text>At the election of the taxpayer, the credit determined
under subsection (a)(1) shall be equal to 14 percent of so much of the
qualified research expenses for the taxable year as exceeds 50 percent of the
average qualified research expenses for the 3 taxable years preceding the
taxable year for which the credit is being
determined.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2B91CD12DB2547609D734BA065CA2596"><enum>(c)</enum><header>Conforming
amendment</header><text>Subparagraph (D) of section 45C(b)(1) (relating to
special rule) is amended by striking <quote>December 31, 2007</quote> and
inserting <quote>December 31, 2008</quote>.</text>
</subsection><subsection id="id6337FB5EF4A242D3AEE68D132D570697"><enum>(d)</enum><header>Technical
correction</header><text>Paragraph (3) of section 41(h) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idEBE1917A42154C32AA57E6356DFA4387" style="OLC">
<paragraph id="idD57C8E4442DB4CAF8341E7681B084D45"><enum>(2)</enum><header>Computation for
taxable year in which credit terminates</header><text>In the case of any
taxable year with respect to which this section applies to a number of days
which is less than the total number of days in such taxable year—</text>
<subparagraph id="idFB379E2E73524D9A979BDFBDA48D8A18"><enum>(A)</enum><text>the amount
determined under subsection (c)(1)(B) with respect to such taxable year shall
be the amount which bears the same ratio to such amount (determined without
regard to this paragraph) as the number of days in such taxable year to which
this section applies bears to the total number of days in such taxable year,
and</text>
</subparagraph><subparagraph id="id359DE81CB98D458A9A7A562BD50127E9"><enum>(B)</enum><text>for purposes of
subsection (c)(5), the average qualified research expenses for the preceding 3
taxable years shall be the amount which bears the same ratio to such average
qualified research expenses (determined without regard to this paragraph) as
the number of days in such taxable year to which this section applies bears to
the total number of days in such taxable
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idE6545E2C2E7A456DBAF53B3F88874DBA"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="H58FA5A73F223494A823C731C988C77A1" section-type="subsequent-section"><enum>222.</enum><header>Indian employment
credit</header>
<subsection id="HDB90D2A3998E43919F80DF525FEA5956"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 45A is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H323B260400DD48FEA7ED2500C900C430"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="HB0D2F03F99BA46DFB78684EFDC5E932"><enum>223.</enum><header>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 id="H6D79774ABDC744C6A9D7EDB1059FB800"><enum>224.</enum><header>Railroad track
maintenance</header>
<subsection id="H3D96A57D6C9C47819DBEA44CE3B56B3F"><enum>(a)</enum><header>In
general</header><text>Subsection (f) of section 45G (relating to application of
section) is amended by striking <quote>January 1, 2008</quote> and inserting
<quote>January 1, 2009</quote>.</text>
</subsection><subsection id="idEC665BDB1445493FAE0E5CD03B930AB5"><enum>(b)</enum><header>Credit allowed
against alternative minimum tax</header><text>Subparagraph (B) of section
38(c)(4) (relating to specified credits), as amended by section 103, is
amended—</text>
<paragraph id="idE940D7472FEC44FBB35914FCC67C5EF0"><enum>(1)</enum><text>by redesignating
clauses (iv) and (v) as clauses (v) and (vi), respectively, and</text>
</paragraph><paragraph id="id3F6003082276405FA2620C21B01B2518"><enum>(2)</enum><text>by inserting
after clause (iii) the following new clause:</text>
<quoted-block act-name="" id="id994A02C9693845B382AE9CB553E8D1BC" style="OLC">
<clause id="id0F9C03BD22AC4CF9877E732AF30F6D04"><enum>(iv)</enum><text>the credit
determined under section
45G,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id889CE89CD9444B31BBD760AD7B0EB2C6"><enum>(c)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="id6E299D7E486C4481B9920087DBF5F16D"><enum>(1)</enum><text>The amendment
made by subsection (a) shall apply to expenditures paid or incurred during
taxable years beginning after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDC11B979D0C04548A93FBFD79CA21ADE"><enum>(2)</enum><text>The amendments
made by subsection (b) shall apply to credits determined under section 45G in
taxable years beginning after December 31, 2007, and to carrybacks of such
credits.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="id8FCAA6C6F7194634A682A4F913A18339"><enum>225.</enum><header>Extension of
mine rescue team training credit</header><text display-inline="no-display-inline">Section 45N(e) (relating to termination) is
amended by striking <quote>December 31, 2008</quote> and inserting
<quote>December 31, 2009</quote>.</text>
</section><section id="IDE7B4D27BF86C4B6593E65E6D422F0496"><enum>226.</enum><header>Extension of
15-year straight-line cost recovery for qualified leasehold improvements and
qualified restaurant improvements; 15-year straight-line cost recovery for
certain improvements to retail space</header>
<subsection id="IDD491CB51B2BA4639B147205FD841DE58"><enum>(a)</enum><header>Extension of
Leasehold and Restaurant Improvements</header>
<paragraph id="IDBE746848356E4AF3A97B6373A4309340"><enum>(1)</enum><header>In
general</header><text>Clauses (iv) and (v) of section 168(e)(3)(E) (relating to
15-year property) are each amended by striking <quote>January 1, 2008</quote>
and inserting <quote>January 1, 2009</quote>.</text>
</paragraph><paragraph id="IDCB131062A22945EDBD09958C6B247201"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
property placed in service after December 31, 2007.</text>
</paragraph></subsection><subsection id="H7A9BFA7F66BE46C0BFA6DF7831EC57E5"><enum>(b)</enum><header>Treatment To
include new construction</header>
<paragraph id="id0E12240072BB4DF1A4583B2DD0000392"><enum>(1)</enum><header>In
general</header><text>Paragraph (7) of section 168(e) (relating to
classification of property) is amended to read as follows:</text>
<quoted-block id="H0EB7DF3547F34320B29C44C3EB2FA8D6" style="OLC">
<paragraph id="H3B367DAC907440E5903C8DE4E604767"><enum>(7)</enum><header>Qualified
restaurant property</header><text>The term <term>qualified restaurant
property</term> means any section 1250 property which is a building or an
improvement to a building if more than 50 percent of the building’s square
footage is devoted to preparation of, and seating for on-premises consumption
of, prepared
meals.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2CC60479E7214FB29F292E4399FAE1E5"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
property placed in service after the date of the enactment of this Act.</text>
</paragraph></subsection><subsection id="IDA00156CDC87E41A9A1EAD70CC4FBC155"><enum>(c)</enum><header>Recovery Period
for Depreciation of Certain Improvements to Retail Space</header>
<paragraph id="IDF593D53289A34EED9DA3DA3ED4D25A25"><enum>(1)</enum><header>15-year
recovery period</header><text>Section 168(e)(3)(E) (relating to 15-year
property) is amended by striking <quote>and</quote> at the end of clause (vii),
by striking the period at the end of clause (viii) and inserting <quote>,
and</quote>, and by adding at the end the following new clause:</text>
<quoted-block id="ID2DF8E258DD8E46F59CEB80E8772C9274" style="OLC">
<clause id="ID366DA8636340404B83C33947570F9E37"><enum>(ix)</enum><text>any qualified
retail improvement property placed in service before January 1,
2009.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID6224DBA22C404F2395E31D8C94EE1A24"><enum>(2)</enum><header>Qualified
retail improvement property</header><text>Section 168(e) is amended by adding
at the end the following new paragraph:</text>
<quoted-block id="ID7CDE7B8A8CD74045AEA538FE11064BAB" style="OLC">
<paragraph id="ID8E1D4FEE130C4E0CB1382DF58313D628"><enum>(8)</enum><header>Qualified
retail improvement property</header>
<subparagraph id="IDDC5796DFC05E4AC18ABC9898B076C586"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified retail improvement
property</term> means any improvement to an interior portion of a building
which is nonresidential real property if—</text>
<clause id="ID7CA0E4B13FCD40EE8FBB0B8A42B4900D"><enum>(i)</enum><text>such portion is
open to the general public and is used in the retail trade or business of
selling tangible personal property to the general public, and</text>
</clause><clause id="IDA019B954294A4844AAD0257F993DC531"><enum>(ii)</enum><text>such improvement
is placed in service more than 3 years after the date the building was first
placed in service.</text>
</clause></subparagraph><subparagraph id="IDC79715A9429E4BBBB51182E4BC69B116"><enum>(B)</enum><header>Improvements
made by owner</header><text>In the case of an improvement made by the owner of
such improvement, such improvement shall be qualified retail improvement
property (if at all) only so long as such improvement is held by such owner.
Rules similar to the rules under paragraph (6)(B) shall apply for purposes of
the preceding sentence.</text>
</subparagraph><subparagraph id="IDD1E13610B2824CBF9D50F4405F386ABE"><enum>(C)</enum><header>Certain
improvements not included</header><text>Such term shall not include any
improvement for which the expenditure is attributable to—</text>
<clause id="IDC79B1ADB42B64C2F855DB645AD4C04FF"><enum>(i)</enum><text>the enlargement
of the building,</text>
</clause><clause id="IDE5BD05639523426995EBC284461DC95F"><enum>(ii)</enum><text>any elevator or
escalator,</text>
</clause><clause id="ID928616379F52437CB0F9F4826FEB4CB2"><enum>(iii)</enum><text>any structural
component benefitting a common area, or</text>
</clause><clause id="IDE675E730F20147AFAE706D15DB2E9F75"><enum>(iv)</enum><text>the internal
structural framework of the
building.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID1410289634F94B5DAC924AC27DA136C9"><enum>(3)</enum><header>Requirement to
use straight line method</header><text>Section 168(b)(3) is amended by adding
at the end the following new subparagraph:</text>
<quoted-block id="ID08154C0D137549828B066D317DC5CF66" style="OLC">
<subparagraph id="ID2E70AF76A6774C5D92B4C61C3990862D"><enum>(I)</enum><text>Qualified retail
improvement property described in subsection
(e)(8).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDBAA3421AD6AF4D2DBB3C9EDD081B394E"><enum>(4)</enum><header>Alternative
system</header><text>The table contained in section 168(g)(3)(B) is amended by
inserting after the item relating to subparagraph (E)(viii) the following new
item:</text>
<quoted-block display-inline="no-display-inline" id="id939A4865DB0F4E8E9AB6F76DC514F6D8" style="OLC">
<table line-rules="no-gen" rule-weights="4.4.4.4.0.0">
<ttitle> </ttitle>
<tgroup cols="2" grid-typeface="1.1" thead-tbody-ldg-size="10.10.12" ttitle-size="0"><colspec coldef="txt" colname="col1" min-data-value="200"></colspec><colspec coldef="fig" colname="col2" min-data-value="10"></colspec>
<tbody>
<row><entry colname="col1" stub-definition="txt-ldr" stub-hierarchy="1">“(E)(ix)</entry><entry colname="col2">39</entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDDCD24F472F4844FDB2D6F40CEBB484C5"><enum>(5)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
property placed in service after the date of the enactment of this Act.</text>
</paragraph></subsection></section><section id="HFA0CD4B78CC54009927536C809F4D4CF"><enum>227.</enum><header>Seven-year cost
recovery period for motorsports racing track facility</header>
<subsection id="H4C987A4AE2FD4E4881F624071128B808"><enum>(a)</enum><header>In
general</header><text>Subparagraph (D) of section 168(i)(15) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H15AD7886BB5D4FD3A617CB3602C64296"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2007.</text>
</subsection></section><section id="HE2FF1D67F69D416EAEA45666B2491650"><enum>228.</enum><header>Accelerated
depreciation for business property on Indian reservation</header>
<subsection id="H93CE335095C745C991149EF7F98F68D0"><enum>(a)</enum><header>In
general</header><text>Paragraph (8) of section 168(j) is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="HDDC1C71B9699418280278DC3528E5103"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="id9B46DCE38067457F985335119B46C052"><enum>229.</enum><header>Extension of
election to expense advanced mine safety equipment</header><text display-inline="no-display-inline">Section
179E(g) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2009</quote>.</text>
</section><section id="HF20FB98A03D24D4A8DCB1E38BDC746DB"><enum>230.</enum><header>Expensing of
environmental remediation costs</header>
<subsection id="H4960C02AEC2E495295F628868CC244E"><enum>(a)</enum><header>In
general</header><text>Subsection (h) of section 198 is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="HA4506FCF923F4EED8345C294786BDBBF"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
expenditures paid or incurred after December 31, 2007.</text>
</subsection></section><section id="HF8048B89C29B4D6490FABDD40EA5CDE"><enum>231.</enum><header>Deduction
allowable with respect to income attributable to domestic production activities
in Puerto Rico</header>
<subsection id="H9338A5FD84514A70AAD06E9A59BBFCA"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 199(d)(8) is amended—</text>
<paragraph id="H7059C4DC6F394572AAB624E11632EEE2"><enum>(1)</enum><text>by striking
<quote>first 2 taxable years</quote> and inserting <quote>first 3 taxable
years</quote>, and</text>
</paragraph><paragraph id="HDF51EDDA1AC243199D8F00C6EF63DA15"><enum>(2)</enum><text>by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2009</quote>.</text>
</paragraph></subsection><subsection id="H0A1C6905B7BE449DBAB549A3A9D6E303"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="H0E2395E4325E4D779DF76EE81386A568"><enum>232.</enum><header>Modification of
tax treatment of certain payments to controlling exempt organizations</header>
<subsection id="HE821E79DD9594CDBAE898DF930CEE12"><enum>(a)</enum><header>In
general</header><text>Clause (iv) of section 512(b)(13)(E) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H9E11BD819CA44B9FB78BCF2786DD3326"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to payments
received or accrued after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HC56BB5398DD449E6A61921AD75ED2546" section-type="subsequent-section"><enum>233.</enum><header>Qualified zone
academy bonds</header>
<subsection commented="no" id="HF2D2A28797CF451780C36FBEC460666"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart I of part IV
of subchapter A of chapter 1, as amended by sections 106 and 141, is amended by
adding at the end the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HD1A45A41FC9D411DA30875BD469E6000" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H5D8ACDE8CC514D27B738D4298DD32600" section-type="subsequent-section"><enum>54E.</enum><header>Qualified zone
academy bonds</header>
<subsection commented="no" id="H8E2059CAE7E94770A5ADB98BEFFA87C"><enum>(a)</enum><header>Qualified zone
academy bonds</header><text>For purposes of this subchapter, the term
<term>qualified zone academy bond</term> means any bond issued as part of an
issue if—</text>
<paragraph commented="no" id="HF7031AC94E464D0E8962B95C4BB2D7AC"><enum>(1)</enum><text display-inline="yes-display-inline">100 percent of the available project
proceeds of such issue are to be used for a qualified purpose with respect to a
qualified zone academy established by an eligible local education
agency,</text>
</paragraph><paragraph commented="no" id="H31D65A6EAC8A4EF7899430A26BD6A895"><enum>(2)</enum><text>the bond is issued
by a State or local government within the jurisdiction of which such academy is
located, and</text>
</paragraph><paragraph commented="no" id="HA29C36D081ED4DCFBC00763C3B7000F"><enum>(3)</enum><text>the issuer—</text>
<subparagraph commented="no" id="HDBAF29B142F64308B5FEB8A1B5A53534"><enum>(A)</enum><text>designates such
bond for purposes of this section,</text>
</subparagraph><subparagraph commented="no" id="H9A177B5973A34288B0CACF665025458F"><enum>(B)</enum><text>certifies that it
has written assurances that the private business contribution requirement of
subsection (b) will be met with respect to such academy, and</text>
</subparagraph><subparagraph commented="no" id="H0CA2D49ADA8341A3BE02FE36CBFF817"><enum>(C)</enum><text>certifies that it
has the written approval of the eligible local education agency for such bond
issuance.</text>
</subparagraph></paragraph></subsection><subsection id="H4D951DAEE3A1469CA300E6AC752C88A2"><enum>(b)</enum><header> Private
business contribution requirement</header><text display-inline="yes-display-inline">For purposes of subsection (a), the private
business contribution requirement of this subsection is met with respect to any
issue if the eligible local education agency that established the qualified
zone academy has written commitments from private entities to make qualified
contributions having a present value (as of the date of issuance of the issue)
of not less than 10 percent of the proceeds of the issue.</text>
</subsection><subsection id="H3F1A0E608BAF436B9EB2EDF1DC7887C0"><enum>(c)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="H6F5D6677256249788B2D5C4FEA00700"><enum>(1)</enum><header>National
limitation</header><text display-inline="yes-display-inline">There is a
national zone academy bond limitation for each calendar year. Such limitation
is $400,000,000 for 2008, and, except as provided in paragraph (4), zero
thereafter.</text>
</paragraph><paragraph id="H79797C2566A5487BB9A41710028BCC3"><enum>(2)</enum><header>Allocation of
limitation</header><text display-inline="yes-display-inline">The national zone
academy bond limitation for a calendar year shall be allocated by the Secretary
among the States on the basis of their respective populations of individuals
below the poverty line (as defined by the Office of Management and Budget). The
limitation amount allocated to a State under the preceding sentence shall be
allocated by the State education agency to qualified zone academies within such
State.</text>
</paragraph><paragraph id="H470671AB107A4D8DADF536DD2607500"><enum>(3)</enum><header>Designation
subject to limitation amount</header><text display-inline="yes-display-inline">The maximum aggregate face amount of bonds
issued during any calendar year which may be designated under subsection (a)
with respect to any qualified zone academy shall not exceed the limitation
amount allocated to such academy under paragraph (2) for such calendar
year.</text>
</paragraph><paragraph id="HEB727532101B493BBD4D26EAC0169541"><enum>(4)</enum><header>Carryover of
unused limitation</header>
<subparagraph id="H0D9F40848EF3483897AE2674D0296592"><enum>(A)</enum><header>In
general</header><text>If for any calendar year—</text>
<clause id="H2B35D9BE44514CB7AB4C77E2C32CDD00"><enum>(i)</enum><text>the limitation
amount for any State, exceeds</text>
</clause><clause id="HD1666DFA2C054EA187723F754554F7F3"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of bonds issued during such year
which are designated under subsection (a) with respect to qualified zone
academies within such State,</text>
</clause><continuation-text continuation-text-level="subparagraph">the
limitation amount for such State for the following calendar year shall be
increased by the amount of such excess.</continuation-text></subparagraph><subparagraph id="HB72C91A1BD28472F8E8202D2EE46DAB"><enum>(B)</enum><header>Limitation on
carryover</header><text display-inline="yes-display-inline">Any carryforward of
a limitation amount may be carried only to the first 2 years following the
unused limitation year. For purposes of the preceding sentence, a limitation
amount shall be treated as used on a first-in first-out basis.</text>
</subparagraph><subparagraph id="HBFDBF4154557418ABF66D9D97512E662"><enum>(C)</enum><header>Coordination
with section 1397E</header><text>Any carryover determined under section
1397E(e)(4) (relating to carryover of unused limitation) with respect to any
State to calendar year 2008 shall be treated for purposes of this section as a
carryover with respect to such State for such calendar year under subparagraph
(A), and the limitation of subparagraph (B) shall apply to such carryover
taking into account the calendar years to which such carryover relates.</text>
</subparagraph></paragraph></subsection><subsection id="HC45C95905A1143C5879453829268C307"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="H2E24D34ED30E4778BA30AB6F2C35002F"><enum>(1)</enum><header>Qualified zone
academy</header><text>The term <quote>qualified zone academy</quote> means any
public school (or academic program within a public school) which is established
by and operated under the supervision of an eligible local education agency to
provide education or training below the postsecondary level if—</text>
<subparagraph id="HADA8E907B4914ACC88A2418C5F2E97A7"><enum>(A)</enum><text>such public school
or program (as the case may be) is designed in cooperation with business to
enhance the academic curriculum, increase graduation and employment rates, and
better prepare students for the rigors of college and the increasingly complex
workforce,</text>
</subparagraph><subparagraph id="HFF3DE7176D174E488BABA66E8DDE8F88"><enum>(B)</enum><text>students in such
public school or program (as the case may be) will be subject to the same
academic standards and assessments as other students educated by the eligible
local education agency,</text>
</subparagraph><subparagraph id="HA721A98B5A1F444D8150D7E35F36015E"><enum>(C)</enum><text>the comprehensive
education plan of such public school or program is approved by the eligible
local education agency, and</text>
</subparagraph><subparagraph id="H21D169317CAD4772BD5BC267AEA9B361"><enum>(D)</enum><clause commented="no" display-inline="yes-display-inline" id="H7F8FAAA25DB44E1692B13B37D8975377"><enum>(i)</enum><text>such public school is
located in an empowerment zone or enterprise community (including any such zone
or community designated after the date of the enactment of this section),
or</text>
</clause><clause id="H69F7DF63D33940E78CAABD2981D39B6D" indent="up1"><enum>(ii)</enum><text>there is a reasonable expectation
(as of the date of issuance of the bonds) that at least 35 percent of the
students attending such school or participating in such program (as the case
may be) will be eligible for free or reduced-cost lunches under the school
lunch program established under the National School Lunch Act.</text>
</clause></subparagraph></paragraph><paragraph id="HC0AD7C417333473EAC1030282EA98FBA"><enum>(2)</enum><header>Eligible local
education agency</header><text>For purposes of this section, the term
<quote>eligible local education agency</quote> means any local educational
agency as defined in section 9101 of the Elementary and Secondary Education Act
of 1965.</text>
</paragraph><paragraph id="H3B7C4345E7E6410F8E85634E7800B548"><enum>(3)</enum><header>Qualified
purpose</header><text>The term <quote>qualified purpose</quote> means, with
respect to any qualified zone academy—</text>
<subparagraph id="HBFB3D1687A1B468CA203E4E7734EB2E0"><enum>(A)</enum><text>rehabilitating or
repairing the public school facility in which the academy is
established,</text>
</subparagraph><subparagraph id="H0601541C3DA84A1E923E90DC50A3391"><enum>(B)</enum><text>providing equipment
for use at such academy,</text>
</subparagraph><subparagraph id="H69D7A725A5364BF2B98500D1AEB30840"><enum>(C)</enum><text>developing course
materials for education to be provided at such academy, and</text>
</subparagraph><subparagraph id="HF75ECE35FD3F4BA2B7B98400B7B3BA93"><enum>(D)</enum><text>training teachers
and other school personnel in such academy.</text>
</subparagraph></paragraph><paragraph id="HC3F2F93D94E14D9E95C8C9D5E92D817D"><enum>(4)</enum><header>Qualified
contributions</header><text>The term <quote>qualified contribution</quote>
means any contribution (of a type and quality acceptable to the eligible local
education agency) of—</text>
<subparagraph id="H7F322406C2F64DCD9FB5363E52CAF828"><enum>(A)</enum><text>equipment for use
in the qualified zone academy (including state-of-the-art technology and
vocational equipment),</text>
</subparagraph><subparagraph id="H7A54485745204087A92305BF37A32D92"><enum>(B)</enum><text>technical
assistance in developing curriculum or in training teachers in order to promote
appropriate market driven technology in the classroom,</text>
</subparagraph><subparagraph id="H7CD3B4F940B842BF8C8CF201DFF3448"><enum>(C)</enum><text>services of
employees as volunteer mentors,</text>
</subparagraph><subparagraph id="HAFAE13BCF1844C5FB690C3C0F739B6A4"><enum>(D)</enum><text>internships, field
trips, or other educational opportunities outside the academy for students,
or</text>
</subparagraph><subparagraph id="HE29399DBAEFF4388970724218C1BAB33"><enum>(E)</enum><text>any other property
or service specified by the eligible local education
agency.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H79984C5D468F466199AF507CD8A1798F"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HE8A49C9F8F5E49A68436CC7BA7AC67DA"><enum>(1)</enum><text>Paragraph (1) of
section 54A(d), as amended by sections 106 and 141, is amended by striking
<quote>or</quote> at the end of subparagraph (B), by inserting
<quote>or</quote> at the end of subparagraph (C), and by inserting after
subparagraph (C) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H292337E32C9D4FC192CAD6634349FEB2" style="OLC">
<subparagraph id="H594E9224CDE140B98857BB2B50AC731"><enum>(D)</enum><text display-inline="yes-display-inline">a qualified zone academy
bond,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA990F7B6B5404B68BDDA5DF408270077"><enum>(2)</enum><text>Subparagraph (C)
of section 54A(d)(2), as amended by sections 106 and 141, 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="H8CB37287E52D406CBE3213921DEF7FA1" style="OLC">
<clause id="HF0FDCE8ADAAF406E9D11FA8EAFE4A84E"><enum>(iv)</enum><text display-inline="yes-display-inline">in the case of a qualified zone academy
bond, a purpose specified in section
54E(a)(1).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H355E8029FAC94686861F00F8F531DA5E"><enum>(3)</enum><text>Section 1397E is
amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H3F32204067C842A9BF489FC500100000" style="OLC">
<subsection id="H6141B87A70D245688C6B275614E9C9F"><enum>(m)</enum><header>Termination</header><text display-inline="yes-display-inline">This section shall not apply to any
obligation issued after the date of the enactment of this
Act.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H5B89DA081BB342488233CB0413042863"><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="HA7A57603A96342528D17FE53664B4313" style="OLC">
<toc container-level="quoted-block-container" idref="H84E4FF4893D849EB890056C916790067" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H85287BA9F6C54044A49405E9007B70A4" level="section">Sec. 54E. Qualified zone academy
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H30275E3F9F164800B40196125320129B"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section id="H931D0C136D8043D3833C66D87F9DAFE5"><enum>234.</enum><header>Tax incentives
for investment in the District of Columbia</header>
<subsection id="H196F2906250C4B00A222C2D12900BA9D"><enum>(a)</enum><header>Designation of
Zone</header>
<paragraph id="H5BEA17C6378B4DA3B7565FE234B8F9B0"><enum>(1)</enum><header>In
general</header><text>Subsection (f) of section 1400 is amended by striking
<quote>2007</quote> both places it appears and inserting
<quote>2008</quote>.</text>
</paragraph><paragraph id="H45ADB3F6168041ED8083DF9CF66DC0F6"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
periods beginning after December 31, 2007.</text>
</paragraph></subsection><subsection id="HCDAF4DCFA11249F48104FFE5356C1B63"><enum>(b)</enum><header>Tax-Exempt
Economic Development Bonds</header>
<paragraph id="H7273B7C28D2F471980BC701CBF9F1117"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 1400A is amended by striking
<quote>2007</quote> and inserting <quote>2008</quote>.</text>
</paragraph><paragraph id="HAAF30B606B7D4FECBC4BA2BFCE55D968"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to bonds
issued after December 31, 2007.</text>
</paragraph></subsection><subsection id="H011B3CD91FF944948F2501F3AE81F9C9"><enum>(c)</enum><header>Zero Percent
Capital Gains Rate</header>
<paragraph id="H2EDA14BD2D2845E68457BDE6AB7F343E"><enum>(1)</enum><header>In
general</header><text>Subsection (b) of section 1400B is amended by striking
<quote>2008</quote> each place it appears and inserting
<quote>2009</quote>.</text>
</paragraph><paragraph id="H4531BC82E5DC4545B424E4D8A4ABA86"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="HE57F566AF1F4434591FBE69E5D750137"><enum>(A)</enum><text>Section
1400B(e)(2) is amended—</text>
<clause commented="no" id="H1813AAC4AA6047DA9FEE39D3FB18F300"><enum>(i)</enum><text>by striking
<quote>2012</quote> and inserting <quote>2013</quote>, and</text>
</clause><clause commented="no" id="H57FCF646523049EDA0AC4BED61083E73"><enum>(ii)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">2012</header-in-text></quote> in the heading thereof and inserting
<quote><header-in-text level="paragraph" style="OLC">2013</header-in-text></quote>.</text>
</clause></subparagraph><subparagraph commented="no" id="HB380444F95FA48F592869683B200A4A0"><enum>(B)</enum><text>Section
1400B(g)(2) is amended by striking <quote>2012</quote> and inserting
<quote>2013</quote>.</text>
</subparagraph><subparagraph commented="no" id="H39AC0012232A44079600DD4891C27392"><enum>(C)</enum><text>Section 1400F(d)
is amended by striking <quote>2012</quote> and inserting
<quote>2013</quote>.</text>
</subparagraph></paragraph><paragraph id="H768B9AAB166544788D5EABCC072305A5"><enum>(3)</enum><header>Effective
dates</header>
<subparagraph id="H2F7DB54884404EC1BBFB0369C1B949F"><enum>(A)</enum><header>Extension</header><text>The
amendments made by paragraph (1) shall apply to acquisitions after December 31,
2007.</text>
</subparagraph><subparagraph id="HCE3370C9E99D4B6CB1EE71B3E9D514D2"><enum>(B)</enum><header>Conforming
amendments</header><text>The amendments made by paragraph (2) shall take effect
on the date of the enactment of this Act.</text>
</subparagraph></paragraph></subsection><subsection id="H0F51FD921A92428898D64553AD3905DA"><enum>(d)</enum><header>First-Time
Homebuyer Credit</header>
<paragraph id="H1EB24B93F95343E7A4D71EFC488F6E14"><enum>(1)</enum><header>In
general</header><text>Subsection (i) of section 1400C is amended by striking
<quote>2008</quote> and inserting <quote>2009</quote>.</text>
</paragraph><paragraph id="HDE1CB30F230D42CC8F445F96656FA7E"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
property purchased after December 31, 2007.</text>
</paragraph></subsection></section><section id="H36094B13EE8B4E3586223BE814B52550"><enum>235.</enum><header>Economic
development credit for American Samoa</header>
<subsection id="HFC81AECCACC94840AB2CE196174CCAC9"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (d) of
section 119 of division A of the Tax Relief and Health Care Act of 2006 is
amended—</text>
<paragraph id="H0D3A1EB678234B3EB6199D27C6F58CB5"><enum>(1)</enum><text>by striking
<quote>first two taxable years</quote> and inserting <quote>first 3 taxable
years</quote>, and</text>
</paragraph><paragraph id="HF446C822734144C6B6D9B81006DB656"><enum>(2)</enum><text>by
striking <quote>January 1, 2008</quote> and inserting <quote>January 1,
2009</quote>.</text>
</paragraph></subsection><subsection id="HE5F7CD5C748B423F9898A64F95AEE458"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="H321EC2C9AC36454E9EE2371683821428"><enum>236.</enum><header>Enhanced
charitable deduction for contributions of food inventory</header>
<subsection id="H431E009E3B4D4CB68FEAC3BAA7EFCC9D"><enum>(a)</enum><header>In
general</header><text>Clause (iv) of section 170(e)(3)(C) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H84996FBF298F4930BE2C39BE2E14E1C"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="HE551434B1A0E4BB8973D34E920C6EFEC" section-type="subsequent-section"><enum>237.</enum><header>Enhanced charitable
deduction for contributions of book inventory to public schools</header>
<subsection id="HB61FD438EBC644388C120172BB47D11C"><enum>(a)</enum><header>In
general</header><text>Clause (iv) of section 170(e)(3)(D) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H492FA34839DB4038BD65EA34FC6196A7"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made after December 31, 2007.</text>
</subsection></section><section id="H62DFA24C74D843F18437183F015619B5"><enum>238.</enum><header>Enhanced
deduction for qualified computer contributions</header>
<subsection id="HD9AC8A123B0A493C94C9E2BBC27BBD6B"><enum>(a)</enum><header>In
general</header><text>Subparagraph (G) of section 170(e)(6) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H187803FACB264AE8ACDA02D836A14740"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made during taxable years beginning after December 31,
2007.</text>
</subsection></section><section display-inline="no-display-inline" id="H0D970E32D615415FB59547C5A883DB39" section-type="subsequent-section"><enum>239.</enum><header>Basis adjustment to
stock of S corporations making charitable contributions of property</header>
<subsection id="H20FCF298788C4D3BA418F81ED3D7A2E7"><enum>(a)</enum><header>In
general</header><text>The last sentence of section 1367(a)(2) is amended by
striking <quote>December 31, 2007</quote> and inserting <quote>December 31,
2008</quote>.</text>
</subsection><subsection id="H305FE83CCFB04328B202F2CA752440DF"><enum>(b)</enum><header>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 id="HE5F4F8A0BA6E4DDDBC0009D4ACEA01FD" section-type="subsequent-section"><enum>240.</enum><header>Work opportunity tax
credit for Hurricane Katrina employees</header>
<subsection id="H64000AE330FE469EA5669884389D831B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 201(b) of the Katrina Emergency Tax Relief Act of 2005 is amended by
striking <quote>2-year</quote> and inserting <quote>3-year</quote>.</text>
</subsection><subsection id="H2A481AC276E54A4281CB9850D3D24C00"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
subsection (a) shall apply to individuals hired after August 27, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="HBB25F6E3B0DD46F99456E941D769B480" section-type="subsequent-section"><enum>241.</enum><header>Subpart
<enum-in-header>F</enum-in-header> exception for active financing
income</header>
<subsection id="HCC5F3C66D1234555B5B8BADE57AEE1D"><enum>(a)</enum><header>Exempt insurance
income</header><text>Paragraph (10) of section 953(e) (relating to application)
is amended—</text>
<paragraph id="H20CAE8722DC844C999E8D8C68900915F"><enum>(1)</enum><text>by striking
<quote>January 1, 2009</quote> and inserting <quote>January 1, 2010</quote>,
and</text>
</paragraph><paragraph id="H9C8BE9D37B1E49798FE5A64D8BEBA970"><enum>(2)</enum><text>by striking
<quote>December 31, 2008</quote> and inserting <quote>December 31,
2009</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA14A427B2D8D489EB0FB002F44693064"><enum>(b)</enum><header>Exception to
treatment as foreign personal holding company income</header><text>Paragraph
(9) of section 954(h) (relating to application) is amended by striking
<quote>January 1, 2009</quote> and inserting <quote>January 1,
2010</quote>.</text>
</subsection></section><section display-inline="no-display-inline" id="H8764DAC48D184C278037B090038FBBC" section-type="subsequent-section"><enum>242.</enum><header>Look-thru rule for
related controlled foreign corporations</header>
<subsection id="H443CD8C5BA1547998FE74F3EE1628646"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 954(c)(6) (relating to
application) is amended by striking <quote>January 1, 2009</quote> and
inserting <quote>January 1, 2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H508E9E35D0174FF297F4C34EFBDF7F00"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years of foreign corporations beginning after December 31, 2008, and to taxable
years of United States shareholders with or within which such taxable years of
foreign corporations end.</text>
</subsection></section><section id="H7607E88B619D427697C4EDA92F70908"><enum>243.</enum><header>Expensing for
certain qualified film and television productions</header>
<subsection id="H3FB49CCA89C24695BD3C44C55715C04E"><enum>(a)</enum><header>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 id="H86550478B6D7478081DDAD20EC0A59F"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
productions commencing after December 31, 2008.</text>
</subsection></section><section id="id61738961F3B24A6B8D44A4849632B341"><enum>244.</enum><header>Extension and
modification of duty suspension on wool products; wool research fund; wool duty
refunds</header>
<subsection id="ID84c64b9eacc849d0ba202fe2edd55d1d"><enum>(a)</enum><header>Extension of
temporary duty reductions</header><text>Each of the following headings of the
Harmonized Tariff Schedule of the United States is amended by striking the date
in the effective period column and inserting <quote>12/31/2014</quote>:</text>
<paragraph id="ID6d9ae43abfd043ea9299d69337438943"><enum>(1)</enum><text>Heading
9902.51.11 (relating to fabrics of worsted wool).</text>
</paragraph><paragraph id="ID0a1c950131c54144936ed7ce73d3bede"><enum>(2)</enum><text>Heading
9902.51.13 (relating to yarn of combed wool).</text>
</paragraph><paragraph id="ID597a146ddd42465bbd5b19d27d421844"><enum>(3)</enum><text>Heading
9902.51.14 (relating to wool fiber, waste, garnetted stock, combed wool, or
wool top).</text>
</paragraph><paragraph id="ID2f0da68627914a578531bf342a9de30c"><enum>(4)</enum><text>Heading
9902.51.15 (relating to fabrics of combed wool).</text>
</paragraph><paragraph id="ID9636a20ec995439eb23ea192ca92b155"><enum>(5)</enum><text>Heading
9902.51.16 (relating to fabrics of combed wool).</text>
</paragraph></subsection><subsection id="ID0862dfacc2204e91bafb4e0482a60028"><enum>(b)</enum><header>Extension of
duty refunds and wool research trust fund</header>
<paragraph id="IDb43d0bfd066743118d44ece659d4c245"><enum>(1)</enum><header>In
general</header><text>Section 4002(c) of the Wool Suit and Textile Trade
Extension Act of 2004 (Public Law 108–429; 118 Stat. 2603) is amended—</text>
<subparagraph id="ID992e332746d8434683964ebd98bb398b"><enum>(A)</enum><text>in paragraph
(3)(C), by striking <quote>2010</quote> and inserting <quote>2015</quote>;
and</text>
</subparagraph><subparagraph id="IDd0bccf80dd104bc28e3b3c4214400ed5"><enum>(B)</enum><text>in paragraph
(6)(A), by striking <quote>through 2009</quote> and inserting <quote>through
2014</quote>.</text>
</subparagraph></paragraph><paragraph id="IDd936c05b387d47e0bf2e3c0c383f16db"><enum>(2)</enum><header>Sunset</header><text>Section
506(f) of the Trade and Development Act of 2000 (Public 106–200; 114 Stat. 303
(7 U.S.C. 7101 note)) is amended by striking <quote>2010</quote> and inserting
<quote>2015</quote>.</text>
</paragraph></subsection></section></subtitle><subtitle id="H8DD6793AE7A748A5922B2E459E022830"><enum>D</enum><header>Other
Extensions</header>
<section id="HA483E1AFA543491CB1EE37E91EFDA8CD"><enum>251.</enum><header>Authority to
disclose information related to terrorist activities made permanent</header>
<subsection id="H0ABBE4964BC94E23BEFF00B9A34E006B"><enum>(a)</enum><header>In
general</header><text>Subparagraph (C) of section 6103(i)(3) is amended by
striking clause (iv).</text>
</subsection><subsection id="HF09740E65C1B4D5EBBCFC8FF955696F6"><enum>(b)</enum><header>Disclosure on
request</header><text>Paragraph (7) of section 6103(i) is amended by striking
subparagraph (E).</text>
</subsection><subsection id="HD71E06CD3D3044BEB2229F2B5761A464"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
disclosures after the date of the enactment of this Act.</text>
</subsection></section><section id="HA101BEBE9BE6417383D8CC47CAC8666"><enum>252.</enum><header>Authority for
undercover operations made permanent</header>
<subsection id="HA675FFF2A56445EC001760C9184CCBB"><enum>(a)</enum><header>In
general</header><text>Subsection (c) of section 7608 is amended by striking
paragraph (6).</text>
</subsection><subsection id="H997F6AE794A94C9A911D415970660763"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect on
January 1, 2008.</text>
</subsection></section><section id="HAB1A3C6999DA4F2FB905ACFFA94CE062"><enum>253.</enum><header>Increase in
limit on cover over of rum excise tax to Puerto Rico and the Virgin
Islands</header>
<subsection id="H8B5FC02558794EA8A7EF64D3F4E1F1FF"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 7652(f) is amended by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2009</quote>.</text>
</subsection><subsection id="H7AC4620D269945C18075B7E540769F5D"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to distilled
spirits brought into the United States after December 31, 2007.</text>
</subsection></section></subtitle><enum>III</enum><header>Additional
relief</header>
<subtitle id="H4B06F02DD28A46B5BBC6E25FE9C17064"><enum>A</enum><header>Individual tax
relief</header>
<section display-inline="no-display-inline" id="HEA41AE19B89D4C44802EA671E1F937B3" section-type="subsequent-section"><enum>301.</enum><header>Additional standard
deduction for real property taxes for nonitemizers</header>
<subsection id="HFEF8DA6ECDF340D4851087923E361494"><enum>(a)</enum><header>In
general</header><text>Section 63(c)(1) (defining standard deduction) is amended
by striking <quote>and</quote> at the end of subparagraph (A), by striking the
period at the end of subparagraph (B) and inserting <quote>, and</quote>, and
by adding at the end the following new subparagraph:</text>
<quoted-block id="H1537E148D4064E269085ECF16546FAC1">
<subparagraph id="HBFE85BDCA4344771B5CCA3106EFE96E"><enum>(C)</enum><text>in the case of any
taxable year beginning in 2008, the real property tax
deduction.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3680766C631940638268134673C427E5"><enum>(b)</enum><header>Definition</header><text>Section
63(c) is amended by adding at the end the following new paragraph:</text>
<quoted-block id="HA42E302621D24BA982FEC4773F5FE7C">
<paragraph id="H7D919D972D0B4E33B8A015FAB8A19E54"><enum>(7)</enum><header>Real property
tax deduction</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), the real property tax deduction is the lesser of—</text>
<subparagraph id="HA9FBD6FECC32476C8E2B5585C7FDF7AA"><enum>(A)</enum><text>the amount
allowable as a deduction under this chapter for State and local taxes described
in section 164(a)(1), or</text>
</subparagraph><subparagraph id="H8B86932056734F5698BCD4009E56A5F5"><enum>(B)</enum><text>$350 ($700 in the
case of a joint return).</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Any taxes
taken into account under section 62(a) shall not be taken into account under
this
paragraph.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HED5B0422861E473C9396516CAA3D4600"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="id0A08F726193F4F51B5D0D51B092B9092" section-type="subsequent-section"><enum>302.</enum><header>$10,000 income
threshold used to calculate refundable portion of child tax credit</header>
<subsection id="idA4FE12AEC23A4F4C950CD492C70E1C92"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 24(d)
(relating to portion of credit refundable) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idFBA84DF2D7F549E8B703237D72C1BB70" style="OLC">
<paragraph id="id5431B105A1584128BF7C16F531C5E02F"><enum>(4)</enum><header>Special rule
for 2008</header><text>Notwithstanding paragraph (3), in the case of any
taxable year beginning in 2008, the dollar amount in effect for such taxable
year under paragraph (1)(B)(i) shall be
$10,000.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id942903423C6A4EADA5E42CBFFF5A4A55"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id63A049EE523841F1A9F6F022595EAFB5" section-type="subsequent-section"><enum>303.</enum><header display-inline="yes-display-inline">Income averaging for amounts received in
connection with the Exxon Valdez litigation</header>
<subsection commented="no" display-inline="no-display-inline" id="idC9AADD5F89FC4B57974A8693814E975E"><enum>(a)</enum><header display-inline="yes-display-inline">Income averaging of amounts received from
the Exxon Valdez litigation</header><text>For purposes of section 1301 of the
Internal Revenue Code of 1986—</text>
<paragraph id="id4129D9439EFB49ED9812499B5454EB61"><enum>(1)</enum><text>any qualified
taxpayer who receives any qualified settlement income in any taxable year shall
be treated as engaged in a fishing business (determined without regard to the
commercial nature of the business), and</text>
</paragraph><paragraph id="idE7DBF7518D85424BBDE60FE0C937B107"><enum>(2)</enum><text>such qualified
settlement income shall be treated as income attributable to such a fishing
business for such taxable year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id064418A27C4D44579C182557D51EF910"><enum>(b)</enum><header display-inline="yes-display-inline">Contributions of amounts received to
retirement accounts</header>
<paragraph commented="no" display-inline="no-display-inline" id="idDADB82709E274B80B34281E56EF2915D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any qualified taxpayer who receives
qualified settlement income during the taxable year may, at any time before the
end of the taxable year in which such income was received, make one or more
contributions to an eligible retirement plan of which such qualified taxpayer
is a beneficiary in an aggregate amount not to exceed the lesser of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3D2183521AC8434E8938D8B7D5FEF330"><enum>(A)</enum><text display-inline="yes-display-inline">$100,000 (reduced by the amount of
qualified settlement income contributed to an eligible retirement plan in prior
taxable years pursuant to this subsection), or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDE5BE802B84549059AE2E8895F8CE7D4"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of qualified settlement income
received by the individual during the taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3FADBFACAE3A44DC9CA3C5A34F0D1DE1"><enum>(2)</enum><header display-inline="yes-display-inline">Time when contributions deemed
made</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), a qualified taxpayer shall be deemed to have made a contribution
to an eligible retirement plan on the last day of the taxable year in which
such income is received if the contribution is made on account of such taxable
year and is made not later than the time prescribed by law for filing the
return for such taxable year (not including extensions thereof).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE3B9D65AB4964D598A36143AEEFE8230"><enum>(3)</enum><header display-inline="yes-display-inline">Treatment of contributions to eligible
retirement plans</header><text display-inline="yes-display-inline">For purposes
of the Internal Revenue Code of 1986, if a contribution is made pursuant to
paragraph (1) with respect to qualified settlement income, then—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id87345F5710DD450EA3F1CB0E480528B3"><enum>(A)</enum><text display-inline="yes-display-inline">except as provided in paragraph (4)—</text>
<clause commented="no" display-inline="no-display-inline" id="id0C854B5C22D64DBFB4C601019D3EC820"><enum>(i)</enum><text display-inline="yes-display-inline">to the extent of such contribution, the
qualified settlement income shall not be included in taxable income, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7FD56B6DEA4C4CAC8FF5BBEBF09FD8ED"><enum>(ii)</enum><text display-inline="yes-display-inline">for purposes of section 72 of such Code,
such contribution shall not be considered to be investment in the
contract,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB904ED9C5CF04DE5A5956900D2868940"><enum>(B)</enum><text display-inline="yes-display-inline">the qualified taxpayer shall, to the extent
of the amount of the contribution, be treated—</text>
<clause commented="no" display-inline="no-display-inline" id="id02059CED8FB94C91BF5F93BF95FEEB65"><enum>(i)</enum><text display-inline="yes-display-inline">as having received the qualified settlement
income—</text>
<subclause commented="no" display-inline="no-display-inline" id="id214B0B0F11C04CF0B21D97231D261AE8"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a contribution to an
individual retirement plan (as defined under section 7701(a)(37) of such Code),
in a distribution described in section 408(d)(3) of such Code, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id861863DC9C2745DA9B42FE3EB1D64527"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of any other eligible
retirement plan, in an eligible rollover distribution (as defined under section
402(f)(2) of such Code), and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id663F1A975B9D4F4290DDE0526ADE1D46"><enum>(ii)</enum><text display-inline="yes-display-inline">as having transferred the amount to the
eligible retirement plan in a direct trustee to trustee transfer within 60 days
of the distribution,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id874A94FBFF6949CEBAB97427C2CCC6A4"><enum>(C)</enum><text>section
408(d)(3)(B) of the Internal Revenue Code of 1986 shall not apply with respect
to amounts treated as a rollover under this paragraph, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0D66F08198214926B447B6065911C2E0"><enum>(D)</enum><text>section
408A(c)(3)(B) of the Internal Revenue Code of 1986 shall not apply with respect
to amounts contributed to a Roth IRA (as defined under section 408A(b) of such
Code) or a designated Roth contribution to an applicable retirement plan
(within the meaning of section 402A of such Code) under this paragraph.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8B98939C44004388BB9CE1E03D405204"><enum>(4)</enum><header display-inline="yes-display-inline">Special rule for Roth IRAs and Roth
<enum-in-header>401(k)</enum-in-header>s</header><text display-inline="yes-display-inline">For purposes of the Internal Revenue Code
of 1986, if a contribution is made pursuant to paragraph (1) with respect to
qualified settlement income to a Roth IRA (as defined under section 408A(b) of
such Code) or as a designated Roth contribution to an applicable retirement
plan (within the meaning of section 402A of such Code), then—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id01694BCDB2EF4FE8B8DF48AB70F83963"><enum>(A)</enum><text display-inline="yes-display-inline">the qualified settlement income shall be
includible in taxable income, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id528820DC9D7F46D88DC7FDF8ACB54633"><enum>(B)</enum><text display-inline="yes-display-inline">for purposes of section 72 of such Code,
such contribution shall be considered to be investment in the contract.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2E495D72D8A1494ABC3DDB5C37EAFC2D"><enum>(5)</enum><header display-inline="yes-display-inline">Eligible retirement plan</header><text display-inline="yes-display-inline">For purpose of this subsection, the term
<term>eligible retirement plan</term> has the meaning given such term under
section 402(c)(8)(B) of the Internal Revenue Code of 1986.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id227789E96E3D488A9D29E5467CE7B1AE"><enum>(c)</enum><header display-inline="yes-display-inline">Treatment of qualified settlement income
under employment taxes</header>
<paragraph commented="no" display-inline="no-display-inline" id="id62590B4636BC47509B82E313ED34BEA2"><enum>(1)</enum><header>SECA</header><text display-inline="yes-display-inline">For purposes of chapter 2 of the Internal
Revenue Code of 1986 and section 211 of the Social Security Act, no portion of
qualified settlement income received by a qualified taxpayer shall be treated
as self-employment income.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4EA5AD4446444E55B49B7EE27A7BB2E1"><enum>(2)</enum><header>FICA</header><text>For
purposes of chapter 21 of the Internal Revenue Code of 1986 and section 209 of
the Social Security Act, no portion of qualified settlement income received by
a qualified taxpayer shall be treated as wages.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF00FED34BF3C474ABCBCE1E493A07972"><enum>(d)</enum><header display-inline="yes-display-inline">Qualified taxpayer</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>qualified taxpayer</term> means—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id03B6F2DD68FD4A028289E44BADF88174"><enum>(1)</enum><text display-inline="yes-display-inline">any individual who is a plaintiff in the
civil action In re Exxon Valdez, No. 89–095–CV (HRH) (Consolidated) (D.
Alaska); or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB22121562E0142DA82B1AFFC45F3E8A0"><enum>(2)</enum><text display-inline="yes-display-inline">any individual who is a beneficiary of the
estate of such a plaintiff who—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id198EDF6F39224D898719A8BDC018B0B8"><enum>(A)</enum><text display-inline="yes-display-inline">acquired the right to receive qualified
settlement income from that plaintiff; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id40938948A39B4520B789BB24EB598348"><enum>(B)</enum><text display-inline="yes-display-inline">was the spouse or an immediate relative of
that plaintiff.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id36DEDF01892F4394B4906ACB28514B70"><enum>(e)</enum><header display-inline="yes-display-inline">Qualified settlement income</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>qualified settlement income</term> means any interest and punitive damage
awards which are—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id9C4EC050AE3D4D61B3360E464F8E4486"><enum>(1)</enum><text display-inline="yes-display-inline">otherwise includible in taxable income,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id365D4F37E5C54B24A9417017B92F7834"><enum>(2)</enum><text display-inline="yes-display-inline">received (whether as lump sums or periodic
payments) in connection with the civil action In re Exxon Valdez, No. 89–095–CV
(HRH) (Consolidated) (D. Alaska) (whether pre- or post-judgment and whether
related to a settlement or judgment).</text>
</paragraph></subsection></section></subtitle><subtitle id="HF1A6780043224D6EAD666E047F006516"><enum>B</enum><header>Business related
provisions</header>
<section id="H784EEFE580B34CCFA3255E3FEE8FE98" section-type="subsequent-section"><enum>311.</enum><header>Uniform treatment of
attorney-advanced expenses and court costs in contingency fee cases</header>
<subsection id="H2ACEABF0F9EE42288E2242F387EB96BE"><enum>(a)</enum><header>In
general</header><text>Section 162 is amended by redesignating subsection (q) as
subsection (r) and by inserting after subsection (p) the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="HE6F96E3FE8D9427E8BDCB87E491F7812" style="OLC">
<subsection id="HC2ADF719F5B5408D91AF429B0023D5FE"><enum>(q)</enum><header>Attorney-advanced
expenses and court costs in contingency fee cases</header><text>In the case of
any expense or court cost which is paid or incurred in the course of the trade
or business of practicing law and the repayment of which is contingent on a
recovery by judgment or settlement in the action to which such expense or cost
relates, the deduction under subsection (a) shall be determined as if such
expense or cost was not subject to
repayment.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6E5751DD03EF41FBACBD7B017132828B"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to expenses and costs paid or incurred in taxable
years beginning after December 31, 2008.</text>
</subsection></section><section id="H48F42FBEE3234A1EB7D36DAB6DF762CF"><enum>312.</enum><header>Provisions
related to film and television productions</header>
<subsection id="HB7C1D15E004F40CA974967DEDA5796BB"><enum>(a)</enum><header>Modification of
limitation on expensing</header><text display-inline="yes-display-inline">Subparagraph (A) of section 181(a)(2) is
amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9BEB7C65593C4479A0481FC45DF0D7BE" style="OLC">
<subparagraph id="HE0DDB64F3699417AAABA6C869D5244D"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) shall
not apply to so much of the aggregate cost of any qualified film or television
production as exceeds
$15,000,000.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HAF01C60D132447498307556DB7ED0000"><enum>(b)</enum><header>Modifications to
deduction for domestic activities</header>
<paragraph id="HAA122D8AA2A947390056AC00AAF2669B"><enum>(1)</enum><header>Determination of
W–2 wages</header><text>Paragraph (2) of section 199(b) is amended by adding at
the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H9AB2719D70F443FE96DC9F6EBCBEE53" style="OLC">
<subparagraph id="H6702B1DDCCEF4C3EBBB8BCE359C174ED"><enum>(D)</enum><header>Special rule for
qualified film</header><text display-inline="yes-display-inline">In the case of
a qualified film, such term shall include compensation for services performed
in the United States by actors, production personnel, directors, and
producers.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H912ED6814F5649B99C62767534A42000"><enum>(2)</enum><header>Definition of
qualified film</header><text>Paragraph (6) of section 199(c) is amended by
adding at the end the following: <quote>A qualified film shall include any
copyrights, trademarks, or other intangibles with respect to such film. The
methods and means of distributing a qualified film shall not affect the
availability of the deduction under this section.</quote>.</text>
</paragraph><paragraph id="HD77AAB86E6D947D7AB85D1B07354D1F0"><enum>(3)</enum><header>Partnerships</header><text>Subparagraph
(A) of section 199(d)(1) is amended by striking <quote>and</quote> at the end
of clause (ii), by striking the period at the end of clause (iii) and inserting
<quote>, and</quote>, and by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="HEE0B60AA2F9E48D5B5856B93E3BB579" style="OLC">
<clause id="H116DFDD297664872BE5981FCD12700C0"><enum>(iv)</enum><text>in the case of
each partner of a partnership, or shareholder of an S corporation, who owns
(directly or indirectly) at least 20 percent of the capital interests in such
partnership or of the stock of such S corporation—</text>
<subclause id="HEA4BAFD83FBE4B40A835A529AE9FFBB8"><enum>(I)</enum><text>such partner or
shareholder shall be treated as having engaged directly in any film produced by
such partnership or S corporation, and</text>
</subclause><subclause id="H591AC914CA6A42E4AF62D31CE300C339"><enum>(II)</enum><text>such partnership
or S corporation shall be treated as having engaged directly in any film
produced by such partner or
shareholder.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H3874A4B046EF454FAF73FC683C17ED8"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="H934F53DAE46545169ED585D2C6566BF3"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to taxable years beginning after
December 31, 2007.</text>
</paragraph><paragraph id="H74B8BBF1374D4ADCA262A3F1CCDEE800"><enum>(2)</enum><header>Expensing</header><text>The
amendments made by subsection (a) shall apply to qualified film and television
productions commencing after December 31, 2007.</text>
</paragraph></subsection></section><section id="id10962EB646654E36B8D28BF8C5C05303" section-type="subsequent-section"><enum>313.</enum><header>Modification of rate
of excise tax on certain wooden arrows designed for use by children</header>
<subsection id="id4008998700344A2AA3B1899D5D0A783B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 4161(b) (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="id7DC68C856AF946A8AC3B6CF62EA8F419" style="OLC">
<subparagraph id="IDb091b11f4aa443b68b7cfedb8e3a74c2"><enum>(B)</enum><header>Exemption for
certain wooden arrow shafts</header><text>Subparagraph (A) shall not apply to
any shaft consisting of all natural wood with no laminations or artificial
means of enhancing the spine of such shaft (whether sold separately or
incorporated as part of a finished or unfinished product) of a type used in the
manufacture of any arrow which after its assembly—</text>
<clause id="ID3031ec0a4ccf4f39b07a31924a57fb81"><enum>(i)</enum><text>measures
<fraction>5/16</fraction> of an inch or less in diameter, and</text>
</clause><clause id="ID06e60d59991d45bb99b384628f236f71"><enum>(ii)</enum><text>is not suitable
for use with a bow described in paragraph
(1)(A).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id7559899790D04E9ABBB33A5A05EA713B"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to shafts
first sold after the date of enactment of this Act.</text>
</subsection></section></subtitle><subtitle id="H0E317F22A42A458AA53815E5A4F9D58"><enum>C</enum><header>Modification of
penalty on understatement of taxpayer’s liability by tax return
preparer</header>
<section id="H9D8477112810463991ACBEED40A18E66"><enum>321.</enum><header>Modification of
penalty on understatement of taxpayer’s liability by tax return
preparer</header>
<subsection id="HB8C8E970224047DD92443D5D7C853148"><enum>(a)</enum><header>In
general</header><text>Subsection (a) of section 6694 (relating to
understatement due to unreasonable positions) is amended to read as
follows:</text>
<quoted-block id="HAF11EF85843343728574CFE4F62000EE" style="OLC">
<subsection id="H8627BA7332254211832FC98E262269D8"><enum>(a)</enum><header>Understatement
due to unreasonable positions</header>
<paragraph id="HCD63B3393A3B4BB3A4BE38603E476667"><enum>(1)</enum><header>In
general</header><text>If a tax return preparer—</text>
<subparagraph id="HBDAB7C59AF6C4FD1BEAA5877EA7C57D9"><enum>(A)</enum><text>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 id="H81F122C900674C12A4E2F262BE6598E2"><enum>(B)</enum><text>knew (or
reasonably should have known) of the position,</text>
</subparagraph><continuation-text 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 id="HAE0C8E1B626D448788CE683E17D0245B"><enum>(2)</enum><header>Unreasonable
position</header>
<subparagraph id="H57F5347712C54BB9A44370DFCC1C2F31"><enum>(A)</enum><header>In
general</header><text>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 id="HD6DCD982FC5947A5BDBB3FD090F727BF"><enum>(B)</enum><header>Disclosed
positions</header><text>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 id="H2BA7FDAC571C4687B527E33C02B8168B"><enum>(C)</enum><header>Tax shelters and
reportable transactions</header><text>If the position is with respect to a tax
shelter (as defined in section 6662(d)(2)(C)(ii)) or a reportable transaction
to which section 6662A applies, the position is described in this paragraph
unless it is reasonable to believe that the position would more likely than not
be sustained on its merits.</text>
</subparagraph></paragraph><paragraph id="HB2D62A7671A34A928CDC6C681C99175F"><enum>(3)</enum><header>Reasonable cause
exception</header><text>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 id="H3A928E4FC8F941098DD3D00EAAA5972"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply—</text>
<paragraph id="H5F7E2DC222EB4F59AACDE53224E28433"><enum>(1)</enum><text>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 id="H93638FAC93A14123871288CF3577A83F"><enum>(2)</enum><text>in the case of a
position described in such subparagraph (C), to returns prepared for taxable
years ending after the date of the enactment of this Act.</text>
</paragraph></subsection></section></subtitle><subtitle id="HE0329D9187FF4DD6B1E0F1E7604C2100"><enum>D</enum><header>Extension and
expansion of certain GO Zone incentives</header>
<section id="H5A75319DDC5342AC9C180010458C62D0"><enum>331.</enum><header>Certain GO Zone
incentives</header>
<subsection id="H8A45D0BB556A4117A9B386C934E59C00"><enum>(a)</enum><header>Use of amended
income tax returns To take into account receipt of certain hurricane-related
casualty loss grants by disallowing previously taken casualty loss
deductions</header>
<paragraph id="H9C029F5B6CD248D785C614F4490049BF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of the Internal Revenue Code of 1986, if a taxpayer claims a
deduction for any taxable year with respect to a casualty loss to a principal
residence (within the meaning of section 121 of such Code) resulting from
Hurricane Katrina, Hurricane Rita, or Hurricane Wilma and in a subsequent
taxable year receives a grant under Public Law 109–148, 109–234, or 110–116 as
reimbursement for such loss, such taxpayer may elect to file an amended income
tax return for the taxable year in which such deduction was allowed (and for
any taxable year to which such deduction is carried) and reduce (but not below
zero) the amount of such deduction by the amount of such reimbursement.</text>
</paragraph><paragraph id="HA23BEA5808774EF681CA10E1453B5803"><enum>(2)</enum><header>Time of filing
amended return</header><text>Paragraph (1) shall apply with respect to any
grant only if any amended income tax returns with respect to such grant are
filed not later than the later of—</text>
<subparagraph id="H44E2D9665F2D4B1DBEBAF1333E0B5A9"><enum>(A)</enum><text>the due date for
filing the tax return for the taxable year in which the taxpayer receives such
grant, or</text>
</subparagraph><subparagraph id="HA194CA26FB5B4BF38251DF30C3BE1780"><enum>(B)</enum><text>the date which is
1 year after the date of the enactment of this Act.</text>
</subparagraph></paragraph><paragraph id="H5DB3D512424742F6B303387B9BA0F941"><enum>(3)</enum><header>Waiver of
penalties and interest</header><text>Any underpayment of tax resulting from the
reduction under paragraph (1) of the amount otherwise allowable as a deduction
shall not be subject to any penalty or interest under such Code if such tax is
paid not later than 1 year after the filing of the amended return to which such
reduction relates.</text>
</paragraph></subsection><subsection id="H8BFB32C4673D492394FBB504500249E"><enum>(b)</enum><header>Waiver of
deadline on construction of GO Zone property eligible for bonus
depreciation</header>
<paragraph id="H10DEDEC94B2D4F3FB67CA142751B9F2C"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 1400N(d)(3) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA396B16AB6814AF79498110003F94263" style="OLC">
<subparagraph id="H1F23D01E9C6341B800C0F2FB55C30C7"><enum>(B)</enum><text display-inline="yes-display-inline">without regard to <quote>and before January
1, 2009</quote> in clause (i) thereof,
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB35F7CFA24FD4DD0BD00D05DADEE0032"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
property placed in service after December 31, 2007.</text>
</paragraph></subsection><subsection id="H9A0D2CF0F0C14AFEA943F91CA442954F"><enum>(c)</enum><header>Inclusion of
certain counties in Gulf Opportunity Zone for purposes of tax-exempt bond
financing</header>
<paragraph id="HD34B9CA9F102472292991F52A4F505B9"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 1400N is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H96E77203B9F04D6BA909A4E13DEE759" style="OLC">
<paragraph id="H51E14A1F7F7E4A789B605F2401B88EBB"><enum>(8)</enum><header>Inclusion of
certain counties</header><text display-inline="yes-display-inline">For purposes
of this subsection, the Gulf Opportunity Zone includes Colbert County, Alabama
and Dallas County,
Alabama.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9CF5A2BB764D4249A6005FC1F57D23DE"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect as
if included in the provisions of the Gulf Opportunity Zone Act of 2005 to which
it relates.</text>
</paragraph></subsection></section></subtitle><subtitle id="id921B120017734465BAF82452A2A8AF63"><enum>E</enum><header>Other
provisions</header>
<section id="idD1237435C7024BAFB294ED2ADF291C68"><enum>341.</enum><header>Secure rural
schools and community self-determination program</header>
<subsection id="id190F3040E89E4A109A54656C6416726D"><enum>(a)</enum><header>Reauthorization
of the secure rural schools and community self-determination act of
2000</header><text display-inline="yes-display-inline">The Secure Rural Schools
and Community Self-Determination Act of 2000 (16 U.S.C. 500 note; Public Law
106–393) is amended by striking sections 1 through 403 and inserting the
following:</text>
<quoted-block id="ID4EC64E4BFA6E42EF8460F3021A333364" style="OLC">
<section id="ID12546E3D9F3F43F99C1B79FB4B36E987" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote>Secure
Rural Schools and Community Self-Determination Act of 2000</quote>.</text>
</section><section id="ID8A6279B8CCF343F097B62D0CE88A1348"><enum>2.</enum><header>Purposes</header><text display-inline="no-display-inline">The purposes of this Act are—</text>
<paragraph id="ID83C19A77856246FF900A3DEAEEF2B21B"><enum>(1)</enum><text>to stabilize and
transition payments to counties to provide funding for schools and roads that
supplements other available funds;</text>
</paragraph><paragraph id="ID164EEE76E94A41749C8A530EED123747"><enum>(2)</enum><text>to make
additional investments in, and create additional employment opportunities
through, projects that—</text>
<subparagraph id="IDEF09D5432BD64D7381D02646CB8282DF"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID5A8F9C2117A842B8866F6731D2E15E3F"><enum>(i)</enum><text>improve the maintenance
of existing infrastructure;</text>
</clause><clause id="IDE8C2F68449014EAF8A6B62271F5F4F36" indent="up1"><enum>(ii)</enum><text>implement stewardship objectives
that enhance forest ecosystems; and</text>
</clause><clause id="ID0AD8621323B84A0D8026CAAE31902494" indent="up1"><enum>(iii)</enum><text>restore and improve land health
and water quality;</text>
</clause></subparagraph><subparagraph id="ID40255D346C984546A65621AABF548339"><enum>(B)</enum><text>enjoy broad-based
support; and</text>
</subparagraph><subparagraph id="ID8E6FCBD0661E4BEDAA32AA83D022F62F"><enum>(C)</enum><text>have objectives
that may include—</text>
<clause id="ID4B0C9325C3594892869338C79C670374"><enum>(i)</enum><text>road, trail, and
infrastructure maintenance or obliteration;</text>
</clause><clause id="ID8D5909D47C16497D857BB64C42C0A063"><enum>(ii)</enum><text>soil
productivity improvement;</text>
</clause><clause id="ID731F4ACEA713482AB920DA48D21737A7"><enum>(iii)</enum><text>improvements in
forest ecosystem health;</text>
</clause><clause id="ID735826D3CC82499EBCC3E812A0718100"><enum>(iv)</enum><text>watershed
restoration and maintenance;</text>
</clause><clause id="ID2A67C26D0FCD498187AE854B366AE996"><enum>(v)</enum><text>the restoration,
maintenance, and improvement of wildlife and fish habitat;</text>
</clause><clause id="ID51182CD24DD249A2961EC0499695DCFA"><enum>(vi)</enum><text>the control of
noxious and exotic weeds; and</text>
</clause><clause id="ID3A2DCF6D80CD4E0EB7845D83C1E47FEC"><enum>(vii)</enum><text>the
reestablishment of native species; and</text>
</clause></subparagraph></paragraph><paragraph id="IDE412F9E4FE154A778549BBA860E01316"><enum>(3)</enum><text>to improve
cooperative relationships among—</text>
<subparagraph id="ID51AF918B6FF14D32921887B69C5436EE"><enum>(A)</enum><text>the people that
use and care for Federal land; and</text>
</subparagraph><subparagraph id="ID2A04314B8E314B4AA7F4ACC4F25953B1"><enum>(B)</enum><text>the agencies that
manage the Federal land.</text>
</subparagraph></paragraph></section><section id="ID3C0F34FB22FD44A2B536091ED4D2A77C"><enum>3.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text>
<paragraph id="ID42DEE2586E444616B6C74D36E04F4553"><enum>(1)</enum><header>Adjusted
share</header><text>The term <term>adjusted share</term> means the number equal
to the quotient obtained by dividing—</text>
<subparagraph id="IDA51C69C8F996418CBF398BA688EBEC74"><enum>(A)</enum><text>the number equal
to the quotient obtained by dividing—</text>
<clause id="ID943D2205A703476FAA78C07674258BE9"><enum>(i)</enum><text>the base share
for the eligible county; by</text>
</clause><clause id="IDAF195FAF546B4B4B828DC0B157596819"><enum>(ii)</enum><text>the income
adjustment for the eligible county; by</text>
</clause></subparagraph><subparagraph id="ID6D5609C12A02471E908794D5B8FB8365"><enum>(B)</enum><text>the number equal
to the sum of the quotients obtained under subparagraph (A) and paragraph
(8)(A) for all eligible counties.</text>
</subparagraph></paragraph><paragraph id="IDCBDC86572F9549A49369C29ECA2E2224"><enum>(2)</enum><header>Base
share</header><text>The term <term>base share</term> means the number equal to
the average of—</text>
<subparagraph id="IDBD02DB415C004D7CAA2DA61C4398D740"><enum>(A)</enum><text>the quotient
obtained by dividing—</text>
<clause id="ID1DA53AF35292462FA42684895753A575"><enum>(i)</enum><text>the number of
acres of Federal land described in paragraph (7)(A) in each eligible county;
by</text>
</clause><clause id="IDAA5F013B40F640C3B51DA5D81C3A7868"><enum>(ii)</enum><text>the total number
acres of Federal land in all eligible counties in all eligible States;
and</text>
</clause></subparagraph><subparagraph id="ID7E2FCA8039E04F2891CA0EE05362D784"><enum>(B)</enum><text>the quotient
obtained by dividing—</text>
<clause id="IDDDC8BFFACD504565B2A97F62163EF1A6"><enum>(i)</enum><text>the amount equal
to the average of the 3 highest 25-percent payments and safety net payments
made to each eligible State for each eligible county during the eligibility
period; by</text>
</clause><clause id="ID017035F6ED2B49D4A87B2C7EE1FB02B5"><enum>(ii)</enum><text>the amount equal
to the sum of the amounts calculated under clause (i) and paragraph (9)(B)(i)
for all eligible counties in all eligible States during the eligibility
period.</text>
</clause></subparagraph></paragraph><paragraph id="ID6834E6DC3DCC4384AB73A1F82F0E9FD6"><enum>(3)</enum><header>County
payment</header><text>The term <term>county payment</term> means the payment
for an eligible county calculated under section 101(b).</text>
</paragraph><paragraph id="IDDF1D98C6F9884E16836C6BBAC6AB88C2"><enum>(4)</enum><header>Eligible
county</header><text>The term <term>eligible county</term> means any county
that—</text>
<subparagraph id="IDFB7F5DB5DD1247B88C2284D7C37DB457"><enum>(A)</enum><text>contains Federal
land (as defined in paragraph (7)); and</text>
</subparagraph><subparagraph id="ID7D88C2E4425E4A4398C2BE70C26C4020"><enum>(B)</enum><text>elects to receive
a share of the State payment or the county payment under section 102(b).</text>
</subparagraph></paragraph><paragraph id="ID2BA742EDFB664A73B34DE82A1317FA53"><enum>(5)</enum><header>Eligibility
period</header><text>The term <term>eligibility period</term> means fiscal year
1986 through fiscal year 1999.</text>
</paragraph><paragraph id="IDCB8744F1B1D14119967838E6E47F4DCB"><enum>(6)</enum><header>Eligible
state</header><text>The term <term>eligible State</term> means a State or
territory of the United States that received a 25-percent payment for 1 or more
fiscal years of the eligibility period.</text>
</paragraph><paragraph id="ID3AD551BDFC76421C9118D643A4C34B10"><enum>(7)</enum><header>Federal
land</header><text>The term <term>Federal land</term> means—</text>
<subparagraph id="IDDDBD6E89E806412FBABE821BAB54C5F2"><enum>(A)</enum><text>land within the
National Forest System, as defined in section 11(a) of the
<act-name parsable-cite="FRRRP">Forest and Rangeland Renewable Resources
Planning Act of 1974</act-name> (16 U.S.C. 1609(a)) exclusive of the National
Grasslands and land utilization projects designated as National Grasslands
administered pursuant to the Act of July 22, 1937 (7 U.S.C. 1010–1012);
and</text>
</subparagraph><subparagraph id="IDD3FF5C91DD254F09802535B5179A7AC3"><enum>(B)</enum><text>such portions of
the revested Oregon and California Railroad and reconveyed Coos Bay Wagon Road
grant land as are or may hereafter come under the jurisdiction of the
Department of the Interior, which have heretofore or may hereafter be
classified as timberlands, and power-site land valuable for timber, that shall
be managed, except as provided in the former section 3 of the Act of August 28,
1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest production.</text>
</subparagraph></paragraph><paragraph id="ID4CAE00FCF2C9462D8ED1E0E38529CB0F"><enum>(8)</enum><header>50-Percent
adjusted share</header><text>The term <term>50-percent adjusted share</term>
means the number equal to the quotient obtained by dividing—</text>
<subparagraph id="ID93C5C0D5D78D41E7B0DCD2880443F524"><enum>(A)</enum><text>the number equal
to the quotient obtained by dividing—</text>
<clause id="ID87A44622EC954396A8FE12FAFD4449C1"><enum>(i)</enum><text>the 50-percent
base share for the eligible county; by</text>
</clause><clause id="IDC0BF9BDC69C1435B8535A0ECB3CBDC54"><enum>(ii)</enum><text>the income
adjustment for the eligible county; by</text>
</clause></subparagraph><subparagraph id="ID7E50F88D576C46A7AF4E05FD46573A03"><enum>(B)</enum><text>the number equal
to the sum of the quotients obtained under subparagraph (A) and paragraph
(1)(A) for all eligible counties.</text>
</subparagraph></paragraph><paragraph id="IDCDFB077E4AF44559B3BC8F14D3F67A4B"><enum>(9)</enum><header>50-Percent base
share</header><text>The term <term>50-percent base share</term> means the
number equal to the average of—</text>
<subparagraph id="ID2FCCA19697DB4C5688EEB854E08EDAA3"><enum>(A)</enum><text>the quotient
obtained by dividing—</text>
<clause id="ID91960DEC3CFE4B7C94DA4E96F8EC15F0"><enum>(i)</enum><text>the number of
acres of Federal land described in paragraph (7)(B) in each eligible county;
by</text>
</clause><clause id="ID3872BB15E50B473D87538E8F585D8D43"><enum>(ii)</enum><text>the total number
acres of Federal land in all eligible counties in all eligible States;
and</text>
</clause></subparagraph><subparagraph id="IDD4C9999A4ACB4AD1AEB64A32B53149E3"><enum>(B)</enum><text>the quotient
obtained by dividing—</text>
<clause id="ID61A4EACEC9E7450DBD32B3C82AA44217"><enum>(i)</enum><text>the amount equal
to the average of the 3 highest 50-percent payments made to each eligible
county during the eligibility period; by</text>
</clause><clause id="IDBC224C7138EE438B89EE17F1CE264123"><enum>(ii)</enum><text>the amount equal
to the sum of the amounts calculated under clause (i) and paragraph (2)(B)(i)
for all eligible counties in all eligible States during the eligibility
period.</text>
</clause></subparagraph></paragraph><paragraph id="ID9B0CC4EE93464100A88B22BA96888AD7"><enum>(10)</enum><header>50-percent
payment</header><text>The term <term>50-percent payment</term> means the
payment that is the sum of the 50-percent share otherwise paid to a county
pursuant to title II of the Act of August 28, 1937 (chapter 876; 50 Stat. 875;
43 U.S.C. 1181f), and the payment made to a county pursuant to the Act of May
24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f–1 et seq.).</text>
</paragraph><paragraph id="ID3AEC5732F08A4FFB8D9DF7BF925DB6DA"><enum>(11)</enum><header>Full funding
amount</header><text>The term <term>full funding amount</term> means—</text>
<subparagraph id="IDE778C76A0209430D83866AABD22D1A17"><enum>(A)</enum><text>$500,000,000 for
fiscal year 2008; and</text>
</subparagraph><subparagraph id="ID822D655F0F5043E4BD02DBA028DDE943"><enum>(B)</enum><text>for fiscal year
2009 and each fiscal year thereafter, the amount that is equal to 90 percent of
the full funding amount for the preceding fiscal year.</text>
</subparagraph></paragraph><paragraph id="ID0A6D810E43C6468FAE027691FB85906B"><enum>(12)</enum><header>Income
adjustment</header><text>The term <term>income adjustment</term> means the
square of the quotient obtained by dividing—</text>
<subparagraph id="IDF785C3D3A4F14E25BB7A714BB966436F"><enum>(A)</enum><text>the per capita
personal income for each eligible county; by</text>
</subparagraph><subparagraph id="ID53069CF636A54F04BC0B80483AED3B01"><enum>(B)</enum><text>the median per
capita personal income of all eligible counties.</text>
</subparagraph></paragraph><paragraph id="ID01360E0B5EA84FFF9ADF3197AF1E73EA"><enum>(13)</enum><header>Per capita
personal income</header><text>The term <term>per capita personal income</term>
means the most recent per capita personal income data, as determined by the
Bureau of Economic Analysis.</text>
</paragraph><paragraph id="ID8973C7191D984A16A19148368C3FC6C6"><enum>(14)</enum><header>Safety net
payments</header><text>The term <term>safety net payments</term> means the
special payment amounts paid to States and counties required by section 13982
or 13983 of the <act-name parsable-cite="OBRA93">Omnibus Budget Reconciliation
Act of 1993</act-name> (Public Law 103–66; 16 U.S.C. 500 note; 43 U.S.C. 1181f
note).</text>
</paragraph><paragraph id="ID448AE5ACF9614318B880C123FAB3C627"><enum>(15)</enum><header>Secretary
concerned</header><text>The term <term>Secretary concerned</term> means—</text>
<subparagraph id="IDB78D760A91224C158FC33296CC85C42A"><enum>(A)</enum><text>the Secretary of
Agriculture or the designee of the Secretary of Agriculture with respect to the
Federal land described in paragraph (7)(A); and</text>
</subparagraph><subparagraph id="IDBC664492E9684970804B729AD2EE25BC"><enum>(B)</enum><text>the Secretary of
the Interior or the designee of the Secretary of the Interior with respect to
the Federal land described in paragraph (7)(B).</text>
</subparagraph></paragraph><paragraph id="ID19A0F2D4AAEE4213A7EF12E3E03D20B4"><enum>(16)</enum><header>State
payment</header><text>The term <term>State payment</term> means the payment for
an eligible State calculated under section 101(a).</text>
</paragraph><paragraph id="ID7F2FCF17583B4668B68A1E1043DCEF5D"><enum>(17)</enum><header>25-Percent
payment</header><text>The term <term>25-percent payment</term> means the
payment to States required by the sixth paragraph under the heading of
<quote><header-in-text level="appropriations-major" style="traditional">FOREST
SERVICE</header-in-text></quote> in the Act of May 23, 1908 (35 Stat. 260; 16
U.S.C. 500), and section 13 of the Act of March 1, 1911 (36 Stat. 963; 16
U.S.C. 500).</text>
</paragraph></section><title id="IDCA3E0BC9109044F39608B46B64F070AC"><enum>I</enum><header>SECURE PAYMENTS
FOR STATES AND COUNTIES CONTAINING FEDERAL LAND</header>
<section id="IDCEAF0F801F064D85AF5078CDE46667DA"><enum>101.</enum><header>Secure
payments for States containing Federal land</header>
<subsection id="ID26B549831F7B4A8FB46F0381683CBC75"><enum>(a)</enum><header>State
Payment</header><text>For each of fiscal years 2008 through 2011, the Secretary
of Agriculture shall calculate for each eligible State an amount equal to the
sum of the products obtained by multiplying—</text>
<paragraph id="ID80586C8A766F430D98E308F701528118"><enum>(1)</enum><text>the adjusted
share for each eligible county within the eligible State; by</text>
</paragraph><paragraph id="IDF0EEA726DFC7432984CC4BA76190825B"><enum>(2)</enum><text>the full funding
amount for the fiscal year.</text>
</paragraph></subsection><subsection id="ID383AA857A6D94C988D5FAEC0D9002CBD"><enum>(b)</enum><header>County
Payment</header><text>For each of fiscal years 2008 through 2011, the Secretary
of the Interior shall calculate for each eligible county that received a
50-percent payment during the eligibility period an amount equal to the product
obtained by multiplying—</text>
<paragraph id="ID002E9CD3945D4936BCE4D8E4DD622203"><enum>(1)</enum><text>the 50-percent
adjusted share for the eligible county; by</text>
</paragraph><paragraph id="ID1E83735675F34841A1FD324B76D62FCF"><enum>(2)</enum><text>the full funding
amount for the fiscal year.</text>
</paragraph></subsection></section><section id="ID5CA26C02C2A74884A764D737AA99229C"><enum>102.</enum><header>Payments to
States and counties</header>
<subsection id="ID7E95C9D3BF90426ABBCDDB75ABC15F09"><enum>(a)</enum><header>Payment
Amounts</header><text>Except as provided in section 103, the Secretary of the
Treasury shall pay to—</text>
<paragraph id="ID6B6DC14A9F0442C3B42D5434D985A0F9"><enum>(1)</enum><text>a State or
territory of the United States an amount equal to the sum of the amounts
elected under subsection (b) by each county within the State or territory
for—</text>
<subparagraph id="ID5D41B13C278D403AAAB08AECD5E7B920"><enum>(A)</enum><text>if the county is
eligible for the 25-percent payment, the share of the 25-percent payment;
or</text>
</subparagraph><subparagraph id="IDFCC0CAD1DE094C47AB28EB607295781E"><enum>(B)</enum><text>the share of the
State payment of the eligible county; and</text>
</subparagraph></paragraph><paragraph id="ID8401D2F13CB5432DB13ECAE3EE9224DD"><enum>(2)</enum><text>a county an
amount equal to the amount elected under subsection (b) by each county
for—</text>
<subparagraph id="ID8448B64825DF47608822446F44C4EDB1"><enum>(A)</enum><text>if the county is
eligible for the 50-percent payment, the 50-percent payment; or</text>
</subparagraph><subparagraph id="ID5053ABA9599042689689EC47C6B84A28"><enum>(B)</enum><text>the county
payment for the eligible county.</text>
</subparagraph></paragraph></subsection><subsection id="ID22A949C34E0F40E89BDBB3582CDFAFD0"><enum>(b)</enum><header>Election To
Receive Payment Amount</header>
<paragraph id="ID3CDAF8DF305B4706B2851D0B851DA75B"><enum>(1)</enum><header>Election;
submission of results</header>
<subparagraph id="IDBAEB625A3E1949959DB3F8129D1CDFF6"><enum>(A)</enum><header>In
general</header><text>The election to receive a share of the State payment, the
county payment, a share of the State payment and the county payment, a share of
the 25-percent payment, the 50-percent payment, or a share of the 25-percent
payment and the 50-percent payment, as applicable, shall be made at the
discretion of each affected county by August 1, 2008, and August 1 of each
second fiscal year thereafter, in accordance with paragraph (2), and
transmitted to the Secretary concerned by the Governor of each eligible
State.</text>
</subparagraph><subparagraph id="ID9AB5C0725D8B44359827AB43096CB245"><enum>(B)</enum><header>Failure to
transmit</header><text>If an election for an affected county is not transmitted
to the Secretary concerned by the date specified under subparagraph (A), the
affected county shall be considered to have elected to receive a share of the
State payment, the county payment, or a share of the State payment and the
county payment, as applicable.</text>
</subparagraph></paragraph><paragraph id="ID351043688954468080C678D5119F9804"><enum>(2)</enum><header>Duration of
election</header>
<subparagraph id="ID40A4090BC2F14127A514E5721A1B0D03"><enum>(A)</enum><header>In
general</header><text>A county election to receive a share of the 25-percent
payment or 50-percent payment, as applicable, shall be effective for 2 fiscal
years.</text>
</subparagraph><subparagraph id="ID490FCF46A13D4B4D8A92C77FD7456247"><enum>(B)</enum><header>Full funding
amount</header><text>If a county elects to receive a share of the State payment
or the county payment, the election shall be effective for all subsequent
fiscal years through fiscal year 2011.</text>
</subparagraph></paragraph><paragraph id="ID1926C06F92C646138BFAE6BD0DF467CD"><enum>(3)</enum><header>Source of
payment amounts</header><text>The payment to an eligible State or eligible
county under this section for a fiscal year shall be derived from—</text>
<subparagraph id="id39284D953A4B4721A4F3328B2052BE07"><enum>(A)</enum><text>any amounts that
are appropriated to carry out this Act;</text>
</subparagraph><subparagraph id="ID03485AB769194F22BCE606AAFBCE5A53"><enum>(B)</enum><text>any revenues,
fees, penalties, or miscellaneous receipts, exclusive of deposits to any
relevant trust fund, special account, or permanent operating funds, received by
the Federal Government from activities by the Bureau of Land Management or the
Forest Service on the applicable Federal land; and</text>
</subparagraph><subparagraph id="IDCA97EEED070D4D2A96A2CEB293629654"><enum>(C)</enum><text>to the extent of
any shortfall, out of any amounts in the Treasury of the United States not
otherwise appropriated.</text>
</subparagraph></paragraph></subsection><subsection id="IDC041A75958FE41CCB5330288641E4D9A"><enum>(c)</enum><header>Distribution
and Expenditure of Payments</header>
<paragraph id="ID1231BF2C51C849D2812CA60AC5BECBA0"><enum>(1)</enum><header>Distribution
method</header><text>A State that receives a payment under subsection (a) for
Federal land described in section 3(7)(A) shall distribute the appropriate
payment amount among the appropriate counties in the State in accordance
with—</text>
<subparagraph id="ID551F9FA2ED2B4A5E84CB6DB9C2BE78AC"><enum>(A)</enum><text>the Act of May
23, 1908 (16 U.S.C. 500); and</text>
</subparagraph><subparagraph id="ID7EAB7D35C94341FA82DF76D12111D5F0"><enum>(B)</enum><text>section 13 of the
Act of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).</text>
</subparagraph></paragraph><paragraph id="ID59C36782346240E18F80E8550D0F4712"><enum>(2)</enum><header>Expenditure
purposes</header><text>Subject to subsection (d), payments received by a State
under subsection (a) and distributed to counties in accordance with paragraph
(1) shall be expended as required by the laws referred to in paragraph
(1).</text>
</paragraph></subsection><subsection id="ID776D60CE15184C3EAFC672F1C0044EA4"><enum>(d)</enum><header>Expenditure
Rules for Eligible Counties</header>
<paragraph id="ID7C139F1AF4974744B12757B5B196BAEC"><enum>(1)</enum><header>Allocations</header>
<subparagraph id="IDAB156586DFF94E4BA92AE9909DD29B19"><enum>(A)</enum><header>Use of portion
in same manner as 25-percent payment or 50-percent payment, as
applicable</header><text>Except as provided in paragraph (3)(B), if an eligible
county elects to receive its share of the State payment or the county payment,
not less than 80 percent, but not more than 85 percent, of the funds shall be
expended in the same manner in which the 25-percent payments or 50-percent
payment, as applicable, are required to be expended.</text>
</subparagraph><subparagraph id="IDD7FE3F7C7C654E7FB46BBFA3E29C8563"><enum>(B)</enum><header>Election as to
use of balance</header><text>Except as provided in subparagraph (C), an
eligible county shall elect to do 1 or more of the following with the balance
of any funds not expended pursuant to subparagraph (A):</text>
<clause id="IDBB968528854C446DAB8825E57F104B4B"><enum>(i)</enum><text>Reserve any
portion of the balance for projects in accordance with title II.</text>
</clause><clause id="IDBF16090CA01343208D6898E38FE1F797"><enum>(ii)</enum><text>Reserve not more
than 7 percent of the total share for the eligible county of the State payment
or the county payment for projects in accordance with title III.</text>
</clause><clause id="ID20A3A101EFA54F56A9E3B49CE50BE21A"><enum>(iii)</enum><text>Return the
portion of the balance not reserved under clauses (i) and (ii) to the Treasury
of the United States.</text>
</clause></subparagraph><subparagraph id="ID5C4763F41A85446680AB70BCEE36EFE1"><enum>(C)</enum><header>Counties with
modest distributions</header><text>In the case of each eligible county to which
more than $100,000, but less than $350,000, is distributed for any fiscal year
pursuant to either or both of paragraphs (1)(B) and (2)(B) of subsection (a),
the eligible county, with respect to the balance of any funds not expended
pursuant to subparagraph (A) for that fiscal year, shall—</text>
<clause id="ID5568F06A0BBB462997E4143097C4CAA3"><enum>(i)</enum><text>reserve any
portion of the balance for—</text>
<subclause id="ID40129E4286CF44F780C90026F97927B7"><enum>(I)</enum><text>carrying out
projects under title II;</text>
</subclause><subclause id="IDE7A6F17748254AD9BF5D403D26D56E6A"><enum>(II)</enum><text>carrying out
projects under title III; or</text>
</subclause><subclause id="ID52CC572B64C648339C53A1ED1E5A2B95"><enum>(III)</enum><text>a combination
of the purposes described in subclauses (I) and (II); or</text>
</subclause></clause><clause id="IDA9704B5DFA514002957D8FF87B9D4F4E"><enum>(ii)</enum><text>return the
portion of the balance not reserved under clause (i) to the Treasury of the
United States.</text>
</clause></subparagraph></paragraph><paragraph id="ID2F3F80DF9FBB49C7AED2D29383C9DB4A"><enum>(2)</enum><header>Distribution of
funds</header>
<subparagraph id="IDB9E06D17102A41839F8AF32C5F460298"><enum>(A)</enum><header>In
general</header><text>Funds reserved by an eligible county under subparagraph
(B)(i) or (C)(i) of paragraph (1) for carrying out projects under title II
shall be deposited in a special account in the Treasury of the United
States.</text>
</subparagraph><subparagraph id="IDA1102329C1B746A4BD5BDF10F81161D8"><enum>(B)</enum><header>Availability</header><text>Amounts
deposited under subparagraph (A) shall—</text>
<clause id="ID9EE3FE773A7847E68795599C82A1FDC6"><enum>(i)</enum><text>be available for
expenditure by the Secretary concerned, without further appropriation;
and</text>
</clause><clause id="ID9F486AD190F34B8A8CFD54CEE1C4F79A"><enum>(ii)</enum><text>remain available
until expended in accordance with title II.</text>
</clause></subparagraph></paragraph><paragraph id="ID9D4CEBB3C03F4DFF851FC5B79C33951A"><enum>(3)</enum><header>Election</header>
<subparagraph id="ID634F78636E2141AEA0439EFB9A0DB5C1"><enum>(A)</enum><header>Notification</header>
<clause id="IDF217C13B888D4234AEA49F1187A59813"><enum>(i)</enum><header>In
general</header><text>An eligible county shall notify the Secretary concerned
of an election by the eligible county under this subsection not later than
September 30 of each fiscal year.</text>
</clause><clause id="IDCFC427B3F3374D24ABA1CF1D66917031"><enum>(ii)</enum><header>Failure to
elect</header><text>Except as provided in subparagraph (B), if the eligible
county fails to make an election by the date specified in clause (i), the
eligible county shall—</text>
<subclause id="ID8633E01251AB46D3B0DFA46F9195CAC2"><enum>(I)</enum><text>be considered to
have elected to expend 85 percent of the funds in accordance with paragraph
(1)(A); and</text>
</subclause><subclause id="ID79C01CCB9748412AA5FBBD5F149F42AD"><enum>(II)</enum><text>return the
balance to the Treasury of the United States.</text>
</subclause></clause></subparagraph><subparagraph id="IDB7E1FFAF00554455B68F001EB18E01D0"><enum>(B)</enum><header>Counties with
minor distributions</header><text>In the case of each eligible county to which
less than $100,000 is distributed for any fiscal year pursuant to either or
both of paragraphs (1)(B) and (2)(B) of subsection (a), the eligible county may
elect to expend all the funds in the same manner in which the 25-percent
payments or 50-percent payments, as applicable, are required to be
expended.</text>
</subparagraph></paragraph></subsection><subsection id="ID67D49CADFFBA403CBB9A9B9C97CBCFCE"><enum>(e)</enum><header>Time for
Payment</header><text>The payments required under this section for a fiscal
year shall be made as soon as practicable after the end of that fiscal
year.</text>
</subsection></section><section id="ID9F0F27F606DC422A844284B607F35046"><enum>103.</enum><header>Transition
payments to States</header>
<subsection id="IDCE0A42B6CA48411498808B6C86F1A50C"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="ID91DEED7D5E7C452DB5F8465365059721"><enum>(1)</enum><header>Adjusted
amount</header><text>The term <term>adjusted amount</term> means, with respect
to a covered State—</text>
<subparagraph id="ID2A3C4343299B49CFAC1C40CA5CD942CD"><enum>(A)</enum><text>for fiscal year
2008, 90 percent of—</text>
<clause id="ID38DF233E3DE24A36ABB04C203CAD9715"><enum>(i)</enum><text>the sum of the
amounts paid for fiscal year 2006 under section 102(a)(2) (as in effect on
September 29, 2006) for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State payment for fiscal
year 2008; and</text>
</clause><clause id="ID0350CAA99C57442EA5902F41AC753258"><enum>(ii)</enum><text>the sum of the
amounts paid for fiscal year 2006 under section 103(a)(2) (as in effect on
September 29, 2006) for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment for fiscal year
2008;</text>
</clause></subparagraph><subparagraph id="IDE02F4B117AD049E3B43B7CEE511E5753"><enum>(B)</enum><text>for fiscal year
2009, 76 percent of—</text>
<clause id="IDC0514D8D0A074FC1B15FF477DFA189F2"><enum>(i)</enum><text>the sum of the
amounts paid for fiscal year 2006 under section 102(a)(2) (as in effect on
September 29, 2006) for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State payment for fiscal
year 2009; and</text>
</clause><clause id="ID38EA6AC6FF254900BCC46A504E6D62F1"><enum>(ii)</enum><text>the sum of the
amounts paid for fiscal year 2006 under section 103(a)(2) (as in effect on
September 29, 2006) for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment for fiscal year
2009; and</text>
</clause></subparagraph><subparagraph id="IDD019C47FBE604499B86FD27BF263D90F"><enum>(C)</enum><text>for fiscal year
2010, 65 percent of—</text>
<clause id="ID7D35CD69CA144A1983A2B4A3059D7DAE"><enum>(i)</enum><text>the sum of the
amounts paid for fiscal year 2006 under section 102(a)(2) (as in effect on
September 29, 2006) for the eligible counties in the covered State that have
elected under section 102(b) to receive a share of the State payment for fiscal
year 2010; and</text>
</clause><clause id="ID32AD3A06F6D047BAAEBAB6DB6CD76D42"><enum>(ii)</enum><text>the sum of the
amounts paid for fiscal year 2006 under section 103(a)(2) (as in effect on
September 29, 2006) for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment for fiscal year
2010.</text>
</clause></subparagraph></paragraph><paragraph id="ID9789546269FF4B2EA1DAE399B4F54167"><enum>(2)</enum><header>Covered
state</header><text>The term <term>covered State</term> means each of the
States of California, Louisiana, Oregon, Pennsylvania, South Carolina, South
Dakota, Texas, and Washington.</text>
</paragraph></subsection><subsection id="ID0899BF7DBA4444668A8069448C48673B"><enum>(b)</enum><header>Transition
Payments</header><text>For each of fiscal years 2008 through 2010, in lieu of
the payment amounts that otherwise would have been made under paragraphs (1)(B)
and (2)(B) of section 102(a), the Secretary of the Treasury shall pay the
adjusted amount to each covered State and the eligible counties within the
covered State, as applicable.</text>
</subsection><subsection id="IDF1C069A0C25E4532BF2C6DE0C465F121"><enum>(c)</enum><header>Distribution of
Adjusted Amount</header><text>Except as provided in subsection (d), it is the
intent of Congress that the method of distributing the payments under
subsection (b) among the counties in the covered States for each of fiscal
years 2008 through 2010 be in the same proportion that the payments were
distributed to the eligible counties in fiscal year 2006.</text>
</subsection><subsection id="ID123E85B85D6046A693ECC6435A5BF1FE"><enum>(d)</enum><header>Distribution of
Payments in California</header><text>The following payments shall be
distributed among the eligible counties in the State of California in the same
proportion that payments under section 102(a)(2) (as in effect on September 29,
2006) were distributed to the eligible counties for fiscal year 2006:</text>
<paragraph id="ID3D4BBC5F0242449B98D9B16C3D33E563"><enum>(1)</enum><text>Payments to the
State of California under subsection (b).</text>
</paragraph><paragraph id="ID4AE5EE99D1274F22AE1D1367C342BD75"><enum>(2)</enum><text>The shares of the
eligible counties of the State payment for California under section 102 for
fiscal year 2011.</text>
</paragraph></subsection><subsection id="IDF8EBEB42C1264C4FAE53138E6AEEC242"><enum>(e)</enum><header>Treatment of
Payments</header><text>For purposes of this Act, any payment made under
subsection (b) shall be considered to be a payment made under section
102(a).</text>
</subsection></section><enum>II</enum><header>SPECIAL PROJECTS
ON FEDERAL LAND</header>
<section id="IDB594CFC3D2B14155BD15084138C85773"><enum>201.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="ID34E6BD92F15E4509BA41698BB6383891"><enum>(1)</enum><header>Participating
county</header><text>The term <term>participating county</term> means an
eligible county that elects under section 102(d) to expend a portion of the
Federal funds received under section 102 in accordance with this title.</text>
</paragraph><paragraph id="IDEA8873DED4C04857AC376F50DABB7129"><enum>(2)</enum><header>Project
funds</header><text>The term <term>project funds</term> means all funds an
eligible county elects under section 102(d) to reserve for expenditure in
accordance with this title.</text>
</paragraph><paragraph id="ID6762F7F6BF4945EF80A785AF007B8234"><enum>(3)</enum><header>Resource
advisory committee</header><text>The term <term>resource advisory
committee</term> means—</text>
<subparagraph id="ID0F1E96AA40F141239D64082885BA12FC"><enum>(A)</enum><text>an advisory
committee established by the Secretary concerned under section 205; or</text>
</subparagraph><subparagraph id="IDC4F10B6FADE04E7093201A4B4A8D2153"><enum>(B)</enum><text>an advisory
committee determined by the Secretary concerned to meet the requirements of
section 205.</text>
</subparagraph></paragraph><paragraph id="IDEE56F670A15944EDA0B767CBF453E301"><enum>(4)</enum><header>Resource
management plan</header><text>The term <term>resource management plan</term>
means—</text>
<subparagraph id="IDE54E5B3B2DEC451AA92CA431F5938C1E"><enum>(A)</enum><text>a land use plan
prepared by the Bureau of Land Management for units of the Federal land
described in section 3(7)(B) pursuant to section 202 of the
<act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of
1976</act-name> (43 U.S.C. 1712); or</text>
</subparagraph><subparagraph id="IDABACF7D4D75E4FA0A55EC3D3D77A7C1B"><enum>(B)</enum><text>a land and
resource management plan prepared by the Forest Service for units of the
National Forest System pursuant to section 6 of the
<act-name parsable-cite="FRRRP">Forest and Rangeland Renewable Resources
Planning Act of 1974</act-name>l (16 U.S.C. 1604).</text>
</subparagraph></paragraph></section><section id="IDE4FA3C7BF4E54374A68BACAD4EBEC1B6"><enum>202.</enum><header>General
limitation on use of project funds</header>
<subsection id="ID7C1F480E213545248C7752E4997B9838"><enum>(a)</enum><header>Limitation</header><text>Project
funds shall be expended solely on projects that meet the requirements of this
title.</text>
</subsection><subsection id="ID70108968ED8D432C9B41F75D06A92BEF"><enum>(b)</enum><header>Authorized
Uses</header><text>Project funds may be used by the Secretary concerned for the
purpose of entering into and implementing cooperative agreements with willing
Federal agencies, State and local governments, private and nonprofit entities,
and landowners for protection, restoration, and enhancement of fish and
wildlife habitat, and other resource objectives consistent with the purposes of
this Act on Federal land and on non-Federal land where projects would benefit
the resources on Federal land.</text>
</subsection></section><section id="ID6F70D71F276346CDA234DB05D0FDF5FA"><enum>203.</enum><header>Submission of
project proposals</header>
<subsection id="ID6C8D494747944601982971C04B39BA4B"><enum>(a)</enum><header>Submission of
Project Proposals to Secretary Concerned</header>
<paragraph id="IDC06ABC925EA84AA8BCF4BB5E911ACAD1"><enum>(1)</enum><header>Projects funded
using project funds</header><text>Not later than September 30 for fiscal year
2008, and each September 30 thereafter for each succeeding fiscal year through
fiscal year 2011, each resource advisory committee shall submit to the
Secretary concerned a description of any projects that the resource advisory
committee proposes the Secretary undertake using any project funds reserved by
eligible counties in the area in which the resource advisory committee has
geographic jurisdiction.</text>
</paragraph><paragraph id="ID1C8EFFAEF80A4150987342B6B68D6498"><enum>(2)</enum><header>Projects funded
using other funds</header><text>A resource advisory committee may submit to the
Secretary concerned a description of any projects that the committee proposes
the Secretary undertake using funds from State or local governments, or from
the private sector, other than project funds and funds appropriated and
otherwise available to do similar work.</text>
</paragraph><paragraph id="IDFB148C40E8034C12B56EBA06C8E81280"><enum>(3)</enum><header>Joint
projects</header><text>Participating counties or other persons may propose to
pool project funds or other funds, described in paragraph (2), and jointly
propose a project or group of projects to a resource advisory committee
established under section 205.</text>
</paragraph></subsection><subsection id="IDDC2C9CFBF59544269C5B168266E384E9"><enum>(b)</enum><header>Required
Description of Projects</header><text>In submitting proposed projects to the
Secretary concerned under subsection (a), a resource advisory committee shall
include in the description of each proposed project the following
information:</text>
<paragraph id="ID4ABBA10FF29140BFA428545BABEA9B5C"><enum>(1)</enum><text>The purpose of
the project and a description of how the project will meet the purposes of this
title.</text>
</paragraph><paragraph id="ID1A559DC39CFD401BB71A1F9894CB3CC4"><enum>(2)</enum><text>The anticipated
duration of the project.</text>
</paragraph><paragraph id="IDE8B4152EB5964F22B32EE033EFFA79BD"><enum>(3)</enum><text>The anticipated
cost of the project.</text>
</paragraph><paragraph id="IDF7C67BDFDDAB4C86B05BE6736A524A44"><enum>(4)</enum><text>The proposed
source of funding for the project, whether project funds or other funds.</text>
</paragraph><paragraph id="ID5B3C42A38E4F4FB590041608F1BE0C08"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID76F85C919F1141728D3482B6CB9D75F7"><enum>(A)</enum><text>Expected outcomes,
including how the project will meet or exceed desired ecological conditions,
maintenance objectives, or stewardship objectives.</text>
</subparagraph><subparagraph id="ID8DE68B76E5BF405F953A9BBDEE9373DC" indent="up1"><enum>(B)</enum><text>An estimate of the amount of any
timber, forage, and other commodities and other economic activity, including
jobs generated, if any, anticipated as part of the project.</text>
</subparagraph></paragraph><paragraph id="ID629BCD0F737742218CBBE45FB65A7BE5"><enum>(6)</enum><text>A detailed
monitoring plan, including funding needs and sources, that—</text>
<subparagraph id="ID4C64A807FEB1453A9C4FBD916D0E3FEF"><enum>(A)</enum><text>tracks and
identifies the positive or negative impacts of the project, implementation, and
provides for validation monitoring; and</text>
</subparagraph><subparagraph id="IDB3B60150069A427A95CBDE58207E43A1"><enum>(B)</enum><text>includes an
assessment of the following:</text>
<clause id="IDCD82970549B144EFAD11566C8CC1E543"><enum>(i)</enum><text>Whether or not
the project met or exceeded desired ecological conditions; created local
employment or training opportunities, including summer youth jobs programs such
as the Youth Conservation Corps where appropriate.</text>
</clause><clause id="IDB222781DA66B4669B99041DC726D70FE"><enum>(ii)</enum><text>Whether the
project improved the use of, or added value to, any products removed from land
consistent with the purposes of this title.</text>
</clause></subparagraph></paragraph><paragraph id="ID29A5D4A1C44043E88E5E66B764F31971"><enum>(7)</enum><text>An assessment
that the project is to be in the public interest.</text>
</paragraph></subsection><subsection id="IDF5E113F34B2140BABDFAD0C0FFE48C19"><enum>(c)</enum><header>Authorized
Projects</header><text>Projects proposed under subsection (a) shall be
consistent with section 2.</text>
</subsection></section><section id="IDA3AAEAA42BD04808AFC1050EB0CC14ED"><enum>204.</enum><header>Evaluation and
approval of projects by Secretary concerned</header>
<subsection id="ID5ACE883501A649F69F79A035CA715215"><enum>(a)</enum><header>Conditions for
Approval of Proposed Project</header><text>The Secretary concerned may make a
decision to approve a project submitted by a resource advisory committee under
section 203 only if the proposed project satisfies each of the following
conditions:</text>
<paragraph id="IDDCCB5294F97C4D29816C43469DBE33FC"><enum>(1)</enum><text>The project
complies with all applicable Federal laws (including regulations).</text>
</paragraph><paragraph id="ID6B2CD0AD14934D64936F25DCBD40F527"><enum>(2)</enum><text>The project is
consistent with the applicable resource management plan and with any watershed
or subsequent plan developed pursuant to the resource management plan and
approved by the Secretary concerned.</text>
</paragraph><paragraph id="ID4B2D539E86E04CC585E46DEC76DCC478"><enum>(3)</enum><text>The project has
been approved by the resource advisory committee in accordance with section
205, including the procedures issued under subsection (e) of that
section.</text>
</paragraph><paragraph id="ID17287D5723E44D89A2ACD8487FAD83D9"><enum>(4)</enum><text>A project
description has been submitted by the resource advisory committee to the
Secretary concerned in accordance with section 203.</text>
</paragraph><paragraph id="IDCEAE22D684464D48B731795362E3898E"><enum>(5)</enum><text>The project will
improve the maintenance of existing infrastructure, implement stewardship
objectives that enhance forest ecosystems, and restore and improve land health
and water quality.</text>
</paragraph></subsection><subsection id="ID3E945D6938DA45F0867C1ECFB1399689"><enum>(b)</enum><header>Environmental
Reviews</header>
<paragraph id="ID420771F989804A989B46F92D0CB5929C"><enum>(1)</enum><header>Request for
payment by county</header><text>The Secretary concerned may request the
resource advisory committee submitting a proposed project to agree to the use
of project funds to pay for any environmental review, consultation, or
compliance with applicable environmental laws required in connection with the
project.</text>
</paragraph><paragraph id="IDEBD1DB71207D4DB3AC237CAFFEC22CF6"><enum>(2)</enum><header>Conduct of
environmental review</header><text>If a payment is requested under paragraph
(1) and the resource advisory committee agrees to the expenditure of funds for
this purpose, the Secretary concerned shall conduct environmental review,
consultation, or other compliance responsibilities in accordance with Federal
laws (including regulations).</text>
</paragraph><paragraph id="ID2E600C98F65D4859A8B9262C1622D805"><enum>(3)</enum><header>Effect of
refusal to pay</header>
<subparagraph id="ID33707F60745042CE984494E3DBC5222D"><enum>(A)</enum><header>In
general</header><text>If a resource advisory committee does not agree to the
expenditure of funds under paragraph (1), the project shall be deemed withdrawn
from further consideration by the Secretary concerned pursuant to this
title.</text>
</subparagraph><subparagraph id="ID311EE39B716F400C9BD8D3FB1B712883"><enum>(B)</enum><header>Effect of
withdrawal</header><text>A withdrawal under subparagraph (A) shall be deemed to
be a rejection of the project for purposes of section 207(c).</text>
</subparagraph></paragraph></subsection><subsection id="ID8E86CF0C731B460584DCB3098799FB0C"><enum>(c)</enum><header>Decisions of
Secretary Concerned</header>
<paragraph id="ID32F25994C0584435B5A762F58A921CB2"><enum>(1)</enum><header>Rejection of
projects</header>
<subparagraph id="IDE59EB51F7F364DB887B3E37587E1D1B7"><enum>(A)</enum><header>In
general</header><text>A decision by the Secretary concerned to reject a
proposed project shall be at the sole discretion of the Secretary
concerned.</text>
</subparagraph><subparagraph id="ID5BBD3AA1BE2846CD850FB31C1E72861D"><enum>(B)</enum><header>No
administrative appeal or judicial review</header><text>Notwithstanding any
other provision of law, a decision by the Secretary concerned to reject a
proposed project shall not be subject to administrative appeal or judicial
review.</text>
</subparagraph><subparagraph id="IDC5D7188FB02F4B478D83C3B265CF8A8C"><enum>(C)</enum><header>Notice of
rejection</header><text>Not later than 30 days after the date on which the
Secretary concerned makes the rejection decision, the Secretary concerned shall
notify in writing the resource advisory committee that submitted the proposed
project of the rejection and the reasons for rejection.</text>
</subparagraph></paragraph><paragraph id="IDEBA9AD8173F842779813D69D863189C8"><enum>(2)</enum><header>Notice of
project approval</header><text>The Secretary concerned shall publish in the
Federal Register notice of each project approved under subsection (a) if the
notice would be required had the project originated with the Secretary.</text>
</paragraph></subsection><subsection id="ID8C278BF622554033900A8FCDA8A1F37E"><enum>(d)</enum><header>Source and
Conduct of Project</header><text>Once the Secretary concerned accepts a project
for review under section 203, the acceptance shall be deemed a Federal action
for all purposes.</text>
</subsection><subsection id="ID65F64EDA417B4E59856E2D2E7B5DC98E"><enum>(e)</enum><header>Implementation
of Approved Projects</header>
<paragraph id="ID3B8A92E87DD54346AE8C76F14D2E2CEA"><enum>(1)</enum><header>Cooperation</header><text>Notwithstanding
chapter 63 of title 31, United States Code, using project funds the Secretary
concerned may enter into contracts, grants, and cooperative agreements with
States and local governments, private and nonprofit entities, and landowners
and other persons to assist the Secretary in carrying out an approved
project.</text>
</paragraph><paragraph id="ID28E7A77CB0AA42C29718A57D618263BF"><enum>(2)</enum><header>Best value
contracting</header>
<subparagraph id="ID7A63CDBB9CE64361BE05E71E370B719E"><enum>(A)</enum><header>In
general</header><text>For any project involving a contract authorized by
paragraph (1) the Secretary concerned may elect a source for performance of the
contract on a best value basis.</text>
</subparagraph><subparagraph id="IDF8F586DB86274E518DE5897ACB8A2A29"><enum>(B)</enum><header>Factors</header><text>The
Secretary concerned shall determine best value based on such factors as—</text>
<clause id="ID34CA27DBE78F466180A5D5C9E1FCDBDC"><enum>(i)</enum><text>the technical
demands and complexity of the work to be done;</text>
</clause><clause id="ID6C53B14EEF8A40C7AEBCC3CBCAA52376"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="IDF6766EBC86104C758BE8CC66E8095026"><enum>(I)</enum><text>the ecological
objectives of the project; and</text>
</subclause><subclause id="IDA7573E096358439AB5C3B9EC0A6A08B5" indent="up1"><enum>(II)</enum><text>the sensitivity of the resources being
treated;</text>
</subclause></clause><clause id="IDC98D4682FC2648EFBF6D1F6C25BF431F"><enum>(iii)</enum><text>the past
experience by the contractor with the type of work being done, using the type
of equipment proposed for the project, and meeting or exceeding desired
ecological conditions; and</text>
</clause><clause id="IDFDA004BBEF75403D811E655AF929BC4B"><enum>(iv)</enum><text>the commitment
of the contractor to hiring highly qualified workers and local
residents.</text>
</clause></subparagraph></paragraph><paragraph id="ID983A9F66E6014D96A3F32074C97E4DF0"><enum>(3)</enum><header>Merchantable
timber contracting pilot program</header>
<subparagraph id="IDFFA494C2F4E142968EB931BB9C490A8B"><enum>(A)</enum><header>Establishment</header><text>The
Secretary concerned shall establish a pilot program to implement a certain
percentage of approved projects involving the sale of merchantable timber using
separate contracts for—</text>
<clause id="IDEE97C051438147D186371719BA0E340D"><enum>(i)</enum><text>the harvesting or
collection of merchantable timber; and</text>
</clause><clause id="IDB7FD1192E6D0474684CEBF2CA584E0D5"><enum>(ii)</enum><text>the sale of the
timber.</text>
</clause></subparagraph><subparagraph id="IDDCD3570D81644CF69DB24251B47312AF"><enum>(B)</enum><header>Annual
percentages</header><text>Under the pilot program, the Secretary concerned
shall ensure that, on a nationwide basis, not less than the following
percentage of all approved projects involving the sale of merchantable timber
are implemented using separate contracts:</text>
<clause id="ID3CF1EB1233C24E2D8DDB29865804AD54"><enum>(i)</enum><text>For fiscal year
2008, 35 percent.</text>
</clause><clause id="ID907954E7FA7147AB881840AF74210646"><enum>(ii)</enum><text>For fiscal year
2009, 45 percent.</text>
</clause><clause id="IDCBB97EF7FC104069AE690491C32C43BC"><enum>(iii)</enum><text>For each of
fiscal years 2010 and 2011, 50 percent.</text>
</clause></subparagraph><subparagraph id="ID7BF0CD1B02334D3A9C51D0A7B037F04C"><enum>(C)</enum><header>Inclusion in
pilot program</header><text>The decision whether to use separate contracts to
implement a project involving the sale of merchantable timber shall be made by
the Secretary concerned after the approval of the project under this
title.</text>
</subparagraph><subparagraph id="IDAABE5481EE26466C9C686FB42506E06B"><enum>(D)</enum><header>Assistance</header>
<clause id="ID17DCDBB55A0E41E0976B32128C062661"><enum>(i)</enum><header>In
general</header><text>The Secretary concerned may use funds from any
appropriated account available to the Secretary for the Federal land to assist
in the administration of projects conducted under the pilot program.</text>
</clause><clause id="IDD3EAA6EB11CA460D92E1F7C81DEA3258"><enum>(ii)</enum><header>Maximum amount
of assistance</header><text>The total amount obligated under this subparagraph
may not exceed $1,000,000 for any fiscal year during which the pilot program is
in effect.</text>
</clause></subparagraph><subparagraph id="ID52CE739BD7C44179944C559EAB90CE97"><enum>(E)</enum><header>Review and
report</header>
<clause id="ID1EA12E7C95F44838BA93424805DD7469"><enum>(i)</enum><header>Initial
report</header><text>Not later than September 30, 2010, the Comptroller General
shall submit to the Committees on Agriculture, Nutrition, and Forestry and
Energy and Natural Resources of the Senate and the Committees on Agriculture
and Natural Resources of the House of Representatives a report assessing the
pilot program.</text>
</clause><clause id="ID70218D4E9B7E4081A58E9EA464FE9EAE"><enum>(ii)</enum><header>Annual
report</header><text>The Secretary concerned shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy and Natural Resources of the
Senate and the Committees on Agriculture and Natural Resources of the House of
Representatives an annual report describing the results of the pilot
program.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDB09D33D58BF54C9C8D4EF8396D81B212"><enum>(f)</enum><header>Requirements
for Project Funds</header><text>The Secretary shall ensure that at least 50
percent of all project funds be used for projects that are primarily
dedicated—</text>
<paragraph id="ID72035900FC154261935AE55816B9D652"><enum>(1)</enum><text>to road
maintenance, decommissioning, or obliteration; or</text>
</paragraph><paragraph id="ID489A5A9C671E48458CF45ACF63E75B10"><enum>(2)</enum><text>to restoration of
streams and watersheds.</text>
</paragraph></subsection></section><section id="ID05D2A3B60805445CB6E120083C811B59"><enum>205.</enum><header>Resource
advisory Committees</header>
<subsection id="ID4A2959AB8A87498D972AA41EB57B2AEF"><enum>(a)</enum><header>Establishment
and Purpose of Resource Advisory Committees</header>
<paragraph id="IDAA6AD1A6F1EF4500877471866D0E151E"><enum>(1)</enum><header>Establishment</header><text>The
Secretary concerned shall establish and maintain resource advisory committees
to perform the duties in subsection (b), except as provided in paragraph
(4).</text>
</paragraph><paragraph id="IDD59F04DBBE164BA3B45BCB02D78E1E4B"><enum>(2)</enum><header>Purpose</header><text>The
purpose of a resource advisory committee shall be—</text>
<subparagraph id="ID6049285625B647CCBC4284CE9168B1EB"><enum>(A)</enum><text>to improve
collaborative relationships; and</text>
</subparagraph><subparagraph id="IDF0297BF9F686416B873E57A46BC488DB"><enum>(B)</enum><text>to provide advice
and recommendations to the land management agencies consistent with the
purposes of this title.</text>
</subparagraph></paragraph><paragraph id="ID63BB951C70F94C81B1FB867E3CF5CC37"><enum>(3)</enum><header>Access to
resource advisory committees</header><text>To ensure that each unit of Federal
land has access to a resource advisory committee, and that there is sufficient
interest in participation on a committee to ensure that membership can be
balanced in terms of the points of view represented and the functions to be
performed, the Secretary concerned may, establish resource advisory committees
for part of, or 1 or more, units of Federal land.</text>
</paragraph><paragraph id="IDA61F77540FE9422292FFC9B2EF9C0571"><enum>(4)</enum><header>Existing
advisory committees</header>
<subparagraph id="IDC10EAD300B5D40F7833CAE1C3340A965"><enum>(A)</enum><header>In
general</header><text>An advisory committee that meets the requirements of this
section, a resource advisory committee established before September 29, 2006,
or an advisory committee determined by the Secretary concerned before September
29, 2006, to meet the requirements of this section may be deemed by the
Secretary concerned to be a resource advisory committee for the purposes of
this title.</text>
</subparagraph><subparagraph id="IDCB4431163E954FC1AEE1C202B811D252"><enum>(B)</enum><header>Charter</header><text>A
charter for a committee described in subparagraph (A) that was filed on or
before September 29, 2006, shall be considered to be filed for purposes of this
Act.</text>
</subparagraph><subparagraph id="ID706B6EE6CCBC49EB9764BC730ABE4260"><enum>(C)</enum><header>Bureau of land
management advisory committees</header><text>The Secretary of the Interior may
deem a resource advisory committee meeting the requirements of subpart 1784 of
part 1780 of title 43, Code of Federal Regulations, as a resource advisory
committee for the purposes of this title.</text>
</subparagraph></paragraph></subsection><subsection id="ID80158F5E00524C69A79516BF135BCD4E"><enum>(b)</enum><header>Duties</header><text>A
resource advisory committee shall—</text>
<paragraph id="ID752E2D2288C54318A22AF3D903223DFD"><enum>(1)</enum><text>review projects
proposed under this title by participating counties and other persons;</text>
</paragraph><paragraph id="ID34D7D791C3C642679AB41DDF45C6718F"><enum>(2)</enum><text>propose projects
and funding to the Secretary concerned under section 203;</text>
</paragraph><paragraph id="ID5D060BAAFCAE46B780847EFC76A73629"><enum>(3)</enum><text>provide early and
continuous coordination with appropriate land management agency officials in
recommending projects consistent with purposes of this Act under this
title;</text>
</paragraph><paragraph id="ID95D58838F7924C30891E3452C769DC29"><enum>(4)</enum><text>provide frequent
opportunities for citizens, organizations, tribes, land management agencies,
and other interested parties to participate openly and meaningfully, beginning
at the early stages of the project development process under this title;</text>
</paragraph><paragraph id="ID7B72A778BFF94A91B9592FF17D86A0A0"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDEB3FA89F840646E8BA255A5BB3F8D9D1"><enum>(A)</enum><text>monitor projects that
have been approved under section 204; and</text>
</subparagraph><subparagraph id="IDA2856BF1C6DB491C9D3CAD49E2A107B1" indent="up1"><enum>(B)</enum><text>advise the designated Federal official
on the progress of the monitoring efforts under subparagraph (A); and</text>
</subparagraph></paragraph><paragraph id="ID56B4156B9A724517B3B9C4760B5155FD"><enum>(6)</enum><text>make
recommendations to the Secretary concerned for any appropriate changes or
adjustments to the projects being monitored by the resource advisory
committee.</text>
</paragraph></subsection><subsection id="IDA2B44E7C9D6440D28A7E79808F782CF0"><enum>(c)</enum><header>Appointment by
the Secretary</header>
<paragraph id="IDE5C8A2E0A1D640F1B9B2B0185496D156"><enum>(1)</enum><header>Appointment and
term</header>
<subparagraph id="IDB6A854AA97B3420CBBC9753627A277BD"><enum>(A)</enum><header>In
general</header><text>The Secretary concerned, shall appoint the members of
resource advisory committees for a term of 4 years beginning on the date of
appointment.</text>
</subparagraph><subparagraph id="IDDDE759A17BF74C1BA7DD28F349D25902"><enum>(B)</enum><header>Reappointment</header><text>The
Secretary concerned may reappoint members to subsequent 4-year terms.</text>
</subparagraph></paragraph><paragraph id="IDF5D399355EC0488897437D0EF6292F5E"><enum>(2)</enum><header>Basic
requirements</header><text>The Secretary concerned shall ensure that each
resource advisory committee established meets the requirements of subsection
(d).</text>
</paragraph><paragraph id="ID82B4437D14A3419BBA22746ABF555BC8"><enum>(3)</enum><header>Initial
appointment</header><text>Not later than 180 days after the date of the
enactment of this Act, the Secretary concerned shall make initial appointments
to the resource advisory committees.</text>
</paragraph><paragraph id="IDFDEC89C81E28453A8DA4F675A0701A25"><enum>(4)</enum><header>Vacancies</header><text>The
Secretary concerned shall make appointments to fill vacancies on any resource
advisory committee as soon as practicable after the vacancy has
occurred.</text>
</paragraph><paragraph id="ID43DF46D21CE4451F82F914ACD4F41F19"><enum>(5)</enum><header>Compensation</header><text>Members
of the resource advisory committees shall not receive any compensation.</text>
</paragraph></subsection><subsection id="ID87F654410F3F469DA90015C61B42AB52"><enum>(d)</enum><header>Composition of
Advisory Committee</header>
<paragraph id="ID8DA9BEA0DCAE43799EBF608D09DFFA78"><enum>(1)</enum><header>Number</header><text>Each
resource advisory committee shall be comprised of 15 members.</text>
</paragraph><paragraph id="ID27CC9F7FA40D468FAA5DB80BFA5F2DF0"><enum>(2)</enum><header>Community
interests represented</header><text>Committee members shall be representative
of the interests of the following 3 categories:</text>
<subparagraph id="ID6465FA7DCF144D8C9A6503EE70C4B193"><enum>(A)</enum><text>5 persons
that—</text>
<clause id="ID4CAEFDACBB9C4205A6E5EB07843A05B9"><enum>(i)</enum><text>represent
organized labor or non-timber forest product harvester groups;</text>
</clause><clause id="ID9EA7DEEA0D8D4CB2A451953577A02F2D"><enum>(ii)</enum><text>represent
developed outdoor recreation, off highway vehicle users, or commercial
recreation activities;</text>
</clause><clause id="IDF76EEE56023745E1A3565460D6E0107F"><enum>(iii)</enum><text>represent—</text>
<subclause id="ID10DE31C66DA8429381636A514BB64AF3"><enum>(I)</enum><text>energy and
mineral development interests; or</text>
</subclause><subclause id="ID629F9F7FECA34C3B9AE05445AA907BCA"><enum>(II)</enum><text>commercial or
recreational fishing interests;</text>
</subclause></clause><clause id="ID72EAC45840FE4D30BCC944E7CB14BBEE"><enum>(iv)</enum><text>represent the
commercial timber industry; or</text>
</clause><clause id="IDE8B510A4F564413683D909939D466BB4"><enum>(v)</enum><text>hold Federal
grazing or other land use permits, or represent nonindustrial private forest
land owners, within the area for which the committee is organized.</text>
</clause></subparagraph><subparagraph id="ID9C57644722B7431DB3828E6D88DD88BB"><enum>(B)</enum><text>5 persons that
represent—</text>
<clause id="IDE9CA783E34C54FA2BC69AC5E7B42A524"><enum>(i)</enum><text>nationally
recognized environmental organizations;</text>
</clause><clause id="IDABC1304EC6ED4663953FADF7F6692189"><enum>(ii)</enum><text>regionally or
locally recognized environmental organizations;</text>
</clause><clause id="IDC3B09FD1C8E0461993F8F429C40E335B"><enum>(iii)</enum><text>dispersed
recreational activities;</text>
</clause><clause id="ID3DF5003158F941628EE2D4F3C3DB58F8"><enum>(iv)</enum><text>archaeological
and historical interests; or</text>
</clause><clause id="ID51AC5220584F40D1AC77F622C5F7680F"><enum>(v)</enum><text>nationally or
regionally recognized wild horse and burro interest groups, wildlife or hunting
organizations, or watershed associations.</text>
</clause></subparagraph><subparagraph id="ID000E2F35557F4FA29C80F1EF619240A2"><enum>(C)</enum><text>5 persons
that—</text>
<clause id="ID1A49747ECDDE4D8D8EC154DD3A252863"><enum>(i)</enum><text>hold State
elected office (or a designee);</text>
</clause><clause id="ID40A93C8D6E364B3BBC9EED37A228F00C"><enum>(ii)</enum><text>hold county or
local elected office;</text>
</clause><clause id="IDA3D009C7B2524EA39AFBC834FC019FD4"><enum>(iii)</enum><text>represent
American Indian tribes within or adjacent to the area for which the committee
is organized;</text>
</clause><clause id="ID926EB2D797EF4DD6976D7B4E61BA2B20"><enum>(iv)</enum><text>are school
officials or teachers; or</text>
</clause><clause id="IDE284672C5638423B99BE6F25902AC46D"><enum>(v)</enum><text>represent the
affected public at large.</text>
</clause></subparagraph></paragraph><paragraph id="ID102D4DC4F2BE4B8C9E275AC3C11562EA"><enum>(3)</enum><header>Balanced
representation</header><text>In appointing committee members from the 3
categories in paragraph (2), the Secretary concerned shall provide for balanced
and broad representation from within each category.</text>
</paragraph><paragraph id="IDA270F594BD2C4913A9B047B5EE425F77"><enum>(4)</enum><header>Geographic
distribution</header><text>The members of a resource advisory committee shall
reside within the State in which the committee has jurisdiction and, to extent
practicable, the Secretary concerned shall ensure local representation in each
category in paragraph (2).</text>
</paragraph><paragraph id="IDB80E8FF4B96A4776B37AE3FAFB8C4A48"><enum>(5)</enum><header>Chairperson</header><text>A
majority on each resource advisory committee shall select the chairperson of
the committee.</text>
</paragraph></subsection><subsection id="IDF1C86B5E3821409FBA1112804AAC584E"><enum>(e)</enum><header>Approval
Procedures</header>
<paragraph id="IDFE1FA818F9FC4EBD99F10467FCD1E472"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (3), each resource advisory
committee shall establish procedures for proposing projects to the Secretary
concerned under this title.</text>
</paragraph><paragraph id="IDE6CBA2EA6588418B841E92C13C39CE22"><enum>(2)</enum><header>Quorum</header><text>A
quorum must be present to constitute an official meeting of the
committee.</text>
</paragraph><paragraph id="ID840F2A6BF46A40F894E3D0DF1F4549D5"><enum>(3)</enum><header>Approval by
majority of members</header><text>A project may be proposed by a resource
advisory committee to the Secretary concerned under section 203(a), if the
project has been approved by a majority of members of the committee from each
of the 3 categories in subsection (d)(2).</text>
</paragraph></subsection><subsection id="ID787DE597DC2A4F299AF859D8E4CEAC10"><enum>(f)</enum><header>Other Committee
Authorities and Requirements</header>
<paragraph id="IDCCA398D0F2474072911443AA3E708BE6"><enum>(1)</enum><header>Staff
assistance</header><text>A resource advisory committee may submit to the
Secretary concerned a request for periodic staff assistance from Federal
employees under the jurisdiction of the Secretary.</text>
</paragraph><paragraph id="ID55E51B66CEF04A4F8399A5EE02E94289"><enum>(2)</enum><header>Meetings</header><text>All
meetings of a resource advisory committee shall be announced at least 1 week in
advance in a local newspaper of record and shall be open to the public.</text>
</paragraph><paragraph id="ID3ABAEDAD65364A5E8E5FA953072FFF53"><enum>(3)</enum><header>Records</header><text>A
resource advisory committee shall maintain records of the meetings of the
committee and make the records available for public inspection.</text>
</paragraph></subsection></section><section id="ID8DC8935C319E4CC3A7684A7AB8D02E84"><enum>206.</enum><header>Use of project
funds</header>
<subsection id="ID4FFB2B38770E4BD9B7901D8F4B02AFBF"><enum>(a)</enum><header>Agreement
Regarding Schedule and Cost of Project</header>
<paragraph id="ID8A4B6587350F48F3B665DC014DA8BE5F"><enum>(1)</enum><header>Agreement
between parties</header><text>The Secretary concerned may carry out a project
submitted by a resource advisory committee under section 203(a) using project
funds or other funds described in section 203(a)(2), if, as soon as practicable
after the issuance of a decision document for the project and the exhaustion of
all administrative appeals and judicial review of the project decision, the
Secretary concerned and the resource advisory committee enter into an agreement
addressing, at a minimum, the following:</text>
<subparagraph id="ID25664BDC412A44589D5553C548698B22"><enum>(A)</enum><text>The schedule for
completing the project.</text>
</subparagraph><subparagraph id="ID4289C78997A543428E601D149C8D5CD8"><enum>(B)</enum><text>The total cost of
the project, including the level of agency overhead to be assessed against the
project.</text>
</subparagraph><subparagraph id="ID5D2EA0058CF94F3EBBDEE24A6E37DEBB"><enum>(C)</enum><text>For a multiyear
project, the estimated cost of the project for each of the fiscal years in
which it will be carried out.</text>
</subparagraph><subparagraph id="ID4FFA2DD22531421A97984C0486770C6C"><enum>(D)</enum><text>The remedies for
failure of the Secretary concerned to comply with the terms of the agreement
consistent with current Federal law.</text>
</subparagraph></paragraph><paragraph id="ID3799DCEC79B24B68B23722186102870B"><enum>(2)</enum><header>Limited use of
federal funds</header><text>The Secretary concerned may decide, at the sole
discretion of the Secretary concerned, to cover the costs of a portion of an
approved project using Federal funds appropriated or otherwise available to the
Secretary for the same purposes as the project.</text>
</paragraph></subsection><subsection id="ID76C3033D6D8D472392B0AFEF90997B08"><enum>(b)</enum><header>Transfer of
Project Funds</header>
<paragraph id="IDF0CCBCD167814B9A912C7A6BB08F9DF8"><enum>(1)</enum><header>Initial
transfer required</header><text>As soon as practicable after the agreement is
reached under subsection (a) with regard to a project to be funded in whole or
in part using project funds, or other funds described in section 203(a)(2), the
Secretary concerned shall transfer to the applicable unit of National Forest
System land or Bureau of Land Management District an amount of project funds
equal to—</text>
<subparagraph id="IDFC7F74B4457741E99AB380259F475BEA"><enum>(A)</enum><text>in the case of a
project to be completed in a single fiscal year, the total amount specified in
the agreement to be paid using project funds, or other funds described in
section 203(a)(2); or</text>
</subparagraph><subparagraph id="IDB21311482ABA45AD9817BE7D10226C9C"><enum>(B)</enum><text>in the case of a
multiyear project, the amount specified in the agreement to be paid using
project funds, or other funds described in section 203(a)(2) for the first
fiscal year.</text>
</subparagraph></paragraph><paragraph id="IDE19A4C3BBD3E4E81A816B64BA623D659"><enum>(2)</enum><header>Condition on
project commencement</header><text>The unit of National Forest System land or
Bureau of Land Management District concerned, shall not commence a project
until the project funds, or other funds described in section 203(a)(2) required
to be transferred under paragraph (1) for the project, have been made available
by the Secretary concerned.</text>
</paragraph><paragraph id="ID053FCCE209CF4CF99115AC95E69E6CA2"><enum>(3)</enum><header>Subsequent
transfers for multiyear projects</header>
<subparagraph id="ID4B2F5D8D2BAC4B8EA85F7BF855AA6857"><enum>(A)</enum><header>In
general</header><text>For the second and subsequent fiscal years of a multiyear
project to be funded in whole or in part using project funds, the unit of
National Forest System land or Bureau of Land Management District concerned
shall use the amount of project funds required to continue the project in that
fiscal year according to the agreement entered into under subsection
(a).</text>
</subparagraph><subparagraph id="ID5E200A628CEC41478573C0AA34895B7D"><enum>(B)</enum><header>Suspension of
work</header><text>The Secretary concerned shall suspend work on the project if
the project funds required by the agreement in the second and subsequent fiscal
years are not available.</text>
</subparagraph></paragraph></subsection></section><section id="ID94DD87E47B844B17A859E84A3C639298"><enum>207.</enum><header>Availability
of project funds</header>
<subsection id="IDABA0FF3F121B4365AFE64FE1EA972216"><enum>(a)</enum><header>Submission of
Proposed Projects To Obligate Funds</header><text>By September 30 of each
fiscal year through fiscal year 2011, a resource advisory committee shall
submit to the Secretary concerned pursuant to section 203(a)(1) a sufficient
number of project proposals that, if approved, would result in the obligation
of at least the full amount of the project funds reserved by the participating
county in the preceding fiscal year.</text>
</subsection><subsection id="IDD6DE0B2B31A34E3BA068E6B8CCC7E166"><enum>(b)</enum><header>Use or Transfer
of Unobligated Funds</header><text>Subject to section 208, if a resource
advisory committee fails to comply with subsection (a) for a fiscal year, any
project funds reserved by the participating county in the preceding fiscal year
and remaining unobligated shall be available for use as part of the project
submissions in the next fiscal year.</text>
</subsection><subsection id="ID276B288DDD464280B3C610439019D409"><enum>(c)</enum><header>Effect of
Rejection of Projects</header><text>Subject to section 208, any project funds
reserved by a participating county in the preceding fiscal year that are
unobligated at the end of a fiscal year because the Secretary concerned has
rejected one or more proposed projects shall be available for use as part of
the project submissions in the next fiscal year.</text>
</subsection><subsection id="ID4A4B4D0302744B4284033F31EDB748B7"><enum>(d)</enum><header>Effect of Court
Orders</header>
<paragraph id="ID90F70762586D4A9DAB146C9ED6AD506A"><enum>(1)</enum><header>In
general</header><text>If an approved project under this Act is enjoined or
prohibited by a Federal court, the Secretary concerned shall return the
unobligated project funds related to the project to the participating county or
counties that reserved the funds.</text>
</paragraph><paragraph id="ID5429D3D988E84542BEEE6256058CD1B8"><enum>(2)</enum><header>Expenditure of
funds</header><text>The returned funds shall be available for the county to
expend in the same manner as the funds reserved by the county under
subparagraph (B) or (C)(i) of section 102(d)(1).</text>
</paragraph></subsection></section><section id="ID6FEED10CE0584918A582249C7989C2C8"><enum>208.</enum><header>Termination of
authority</header>
<subsection id="ID8490430E0E73457680E30EC88E05883B"><enum>(a)</enum><header>In
General</header><text>The authority to initiate projects under this title shall
terminate on September 30, 2011.</text>
</subsection><subsection id="ID778C6F8F31D740F488183682098BC0A2"><enum>(b)</enum><header>Deposits in
Treasury</header><text>Any project funds not obligated by September 30, 2012,
shall be deposited in the Treasury of the United States.</text>
</subsection></section><enum>III</enum><header>COUNTY
FUNDS</header>
<section id="IDE66D52DEC3EC4F47BF5B63640BC11D4D"><enum>301.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text>
<paragraph id="ID2DBFDD7C38AE427E9A85639392292858"><enum>(1)</enum><header>County
funds</header><text>The term <term>county funds</term> means all funds an
eligible county elects under section 102(d) to reserve for expenditure in
accordance with this title.</text>
</paragraph><paragraph id="IDA4BBAA0FEB7C4C65B2284DA4C7290E2F"><enum>(2)</enum><header>Participating
county</header><text>The term <term>participating county</term> means an
eligible county that elects under section 102(d) to expend a portion of the
Federal funds received under section 102 in accordance with this title.</text>
</paragraph></section><section id="ID8B79180B7E83491ABBDD4B0A5A1855F3"><enum>302.</enum><header>Use</header>
<subsection id="ID43E3DB47D91D4D958F328D0B96CA25CA"><enum>(a)</enum><header>Authorized
Uses</header><text>A participating county, including any applicable agencies of
the participating county, shall use county funds, in accordance with this
title, only—</text>
<paragraph id="IDE39D09843D8A45039092E29F7AFB3C0F"><enum>(1)</enum><text>to carry out
activities under the Firewise Communities program to provide to homeowners in
fire-sensitive ecosystems education on, and assistance with implementing,
techniques in home siting, home construction, and home landscaping that can
increase the protection of people and property from wildfires;</text>
</paragraph><paragraph id="IDC4F139EDA1C340759E241351B0254F46"><enum>(2)</enum><text>to reimburse the
participating county for search and rescue and other emergency services,
including firefighting, that are—</text>
<subparagraph id="IDA93813E5B8354B9F9F9E98E688813C56"><enum>(A)</enum><text>performed on
Federal land after the date on which the use was approved under subsection
(b);</text>
</subparagraph><subparagraph id="IDCB5B5970C3C6495AA4316EC11CA815BA"><enum>(B)</enum><text>paid for by the
participating county; and</text>
</subparagraph></paragraph><paragraph id="ID4A0CF727EBAD4232BED49BCD14A9B36A"><enum>(3)</enum><text>to develop
community wildfire protection plans in coordination with the appropriate
Secretary concerned.</text>
</paragraph></subsection><subsection id="IDC919267CFB414C658BC34BB4A893814E"><enum>(b)</enum><header>Proposals</header><text>A
participating county shall use county funds for a use described in subsection
(a) only after a 45-day public comment period, at the beginning of which the
participating county shall—</text>
<paragraph id="ID8395CF68243D4DFA8F4EAB84D13E745E"><enum>(1)</enum><text>publish in any
publications of local record a proposal that describes the proposed use of the
county funds; and</text>
</paragraph><paragraph id="ID3CA476448BFF4D2BA182FC0AFBD26176"><enum>(2)</enum><text>submit the
proposal to any resource advisory committee established under section 205 for
the participating county.</text>
</paragraph></subsection></section><section id="ID9EDC64070188422794879F6BFAEEAE9B"><enum>303.</enum><header>Certification</header>
<subsection id="IDA3BA0E79838E4A70B9BEE8F02B2A307D"><enum>(a)</enum><header>In
General</header><text>Not later than February 1 of the year after the year in
which any county funds were expended by a participating county, the appropriate
official of the participating county shall submit to the Secretary concerned a
certification that the county funds expended in the applicable year have been
used for the uses authorized under section 302(a), including a description of
the amounts expended and the uses for which the amounts were expended.</text>
</subsection><subsection id="IDB43549AD98AF46B78BCB2B43737F723D"><enum>(b)</enum><header>Review</header><text>The
Secretary concerned shall review the certifications submitted under subsection
(a) as the Secretary concerned determines to be appropriate.</text>
</subsection></section><section id="ID8080FB84BB9A4D679FEA900F32E3595A"><enum>304.</enum><header>Termination of
authority</header>
<subsection id="ID086015C8979D4E1D8E4D2EDEA332E2E6"><enum>(a)</enum><header>In
General</header><text>The authority to initiate projects under this title
terminates on September 30, 2011.</text>
</subsection><subsection id="ID84F8CBD4B49A46318D19BDBF4A0D1C20"><enum>(b)</enum><header>Availability</header><text>Any
county funds not obligated by September 30, 2012, shall be returned to the
Treasury of the United States.</text>
</subsection></section><enum>IV</enum><header>MISCELLANEOUS
PROVISIONS</header>
<section id="IDCAE75187A3B84D8E9F8338029E5C99EE"><enum>401.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary of Agriculture and the
Secretary of the Interior shall issue regulations to carry out the purposes of
this Act.</text>
</section><section id="IDDD2130695BA341D49F167C461F7D33D9"><enum>402.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated such sums as are necessary to carry out this Act
for each of fiscal years 2008 through 2011.</text>
</section><section id="ID080095E2CBE64B70857AC36DE7E8B835"><enum>403.</enum><header>Treatment of
funds and revenues</header>
<subsection id="IDBE2F746F421843E799732F6AD383DE61"><enum>(a)</enum><header>Relation to
Other Appropriations</header><text>Funds made available under section 402 and
funds made available to a Secretary concerned under section 206 shall be in
addition to any other annual appropriations for the Forest Service and the
Bureau of Land Management.</text>
</subsection><subsection id="ID2EF4E13C744647489B68050A88C4073C"><enum>(b)</enum><header>Deposit of
Revenues and Other Funds</header><text>All revenues generated from projects
pursuant to title II, including any interest accrued from the revenues, shall
be deposited in the Treasury of the United
States.</text>
</subsection></section>.
(b)Forest receipt
payments to eligible states and counties
(1)The sixth paragraph under the heading FOREST
SERVICE
in the Act of May 23, 1908 (16 U.S.C. 500) is
amended in the first sentence by striking twenty-five percentum
and all that follows through shall be paid
and inserting the
following: an amount equal to the annual average of 25 percent of all
amounts received for the applicable fiscal year and each of the preceding 6
fiscal years from each national forest shall be paid
.
(2)Section 13 of the Act of March 1, 1911 (commonly known as the
Weeks Law
) (16 U.S.C. 500) is amended in the first sentence by
striking twenty-five percentum
and all that follows through
shall be paid
and inserting the following: an amount
equal to the annual average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal years from each
national forest shall be paid
.
(c)Payments in
lieu of taxes
(1)Section 6906 of title 31, United States Code, is amended
to read as follows:
6906.For each of fiscal years 2008 through
2012—
(1)each county or other eligible unit of local
government shall be entitled to payment under this chapter; and
(2)sums shall be made available to the
Secretary of the Interior for obligation or expenditure in accordance with this
chapter.
.
(2)The table of sections for chapter 69 of title 31,
United States Code, is amended by striking the item relating to section 6906
and inserting the following:
6906.
Funding.
.
(3)
(A)Notwithstanding the Budget Scorekeeping Guidelines and
the accompanying list of programs and accounts set forth in the joint
explanatory statement of the committee of conference accompanying Conference
Report 105–217, the section in this title regarding Payments in Lieu of Taxes
shall be treated in the baseline for purposes of section 257 of the Balanced
Budget and Emergency Deficit Control Act of 1985 (as in effect prior to
September 30, 2002), and by the Chairmen of the House and Senate Budget
Committees, as appropriate, for purposes of budget enforcement in the House and
Senate, and under the Congressional Budget Act of 1974 as if Payment in Lieu of
Taxes (14–1114–0–1–806) were an account designated as Appropriated Entitlements
and Mandatories for Fiscal Year 1997 in the joint explanatory statement of the
committee of conference accompanying Conference Report 105–217.
(B)This paragraph shall remain in effect for the fiscal years
to which the entitlement in section 6906 of title 31, United States Code (as
amended by paragraph (1)), applies.
342.Clarification
of uniform definition of child
(a)Child must be
younger than claimantSection 152(c)(3)(A) (relating to age
requirements) is amended by inserting is younger than the taxpayer
claiming such individual as a qualifying child and
after such
individual
.
(b)Section 152(c)(1) (relating to qualifying child) is
amended by striking and
at the end of subparagraph (C), by
striking the period at the end of subparagraph (D) and inserting ,
and
, and by adding at the end the following new subparagraph:
(E)who has not filed
a joint return (other than only for a claim of refund) with the individual's
spouse under section 6013 for the taxable year beginning in the calendar year
in which the taxable year of the taxpayer
begins.
.
(c)Restrict
qualifying child tax benefits to child's parent
(1)Subsection (a) of section 24 (relating to child tax
credit) is amended by inserting for which the taxpayer is allowed a
deduction under section 151
after of the
taxpayer
.
(2)Persons other
than parents claiming qualifying child
(A)Paragraph (4) of section 152(c) is amended by adding at
the end the following new subparagraph:
(C)No parent
claiming qualifying childIf the parents of an individual may
claim such individual as a qualifying child but no parent so claims the
individual, such individual may be claimed as the qualifying child of another
taxpayer but only if the adjusted gross income of such taxpayer is higher than
the highest adjusted gross income of any parent of the
individual.
.
(B)
(i)Subparagraph (A)
of section 152(c)(4) is amended by striking Except
through
2 or more taxpayers
and inserting Except as provided in
subparagraphs (B) and (C), if (but for this paragraph) an individual may be
claimed as a qualifying child by 2 or more taxpayers
.
(ii)The heading for
paragraph (4) of section 152(c) is amended by striking claiming
and inserting
who can claim the
same
.
(d)The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.
<enum>IV</enum><header>Revenue
Provisions</header>
<section display-inline="no-display-inline" id="HA9568EBB9ECE4CD2BF996C26B9C0BC04" section-type="subsequent-section"><enum>401.</enum><header>Nonqualified
deferred compensation from certain tax indifferent parties</header>
<subsection id="H43CE797BD056487A867F0023ACABDC6E"><enum>(a)</enum><header>In
general</header><text>Subpart B of part II of subchapter E of chapter 1 is
amended by inserting after section 457 the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H26C582B356354245942D2735ADE3D286" style="OLC">
<section id="H3E8BDC8712EF4E9E9DDADA46038E5A7"><enum>457A.</enum><header>Nonqualified
deferred compensation from certain tax indifferent parties</header>
<subsection id="H5FC15AB791954DBF0086E67D848FD7D9"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Any compensation
which is deferred under a nonqualified deferred compensation plan of a
nonqualified entity shall be includible in gross income when there is no
substantial risk of forfeiture of the rights to such compensation.</text>
</subsection><subsection id="H89DCEB74D9E548A6BCE86967C27FAE4D"><enum>(b)</enum><header>Nonqualified
entity</header><text>For purposes of this section, the term <term>nonqualified
entity</term> means—</text>
<paragraph id="H34662E7383D743668DEC2D43EBE9ECF9"><enum>(1)</enum><text display-inline="yes-display-inline">any foreign corporation unless
substantially all of its income is—</text>
<subparagraph id="HFD684D6A71124DA8BDC94A7A9735B4C"><enum>(A)</enum><text>effectively
connected with the conduct of a trade or business in the United States,
or</text>
</subparagraph><subparagraph id="HB99C9E17C63940EE89D6DDD264912115"><enum>(B)</enum><text>subject to a
comprehensive foreign income tax, and</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H752D950C68104B3FA823898D28B0F1E7"><enum>(2)</enum><text display-inline="yes-display-inline">any partnership unless substantially all of
its income is allocated to persons other than—</text>
<subparagraph id="HDA93AF37A2464346B029A734F32E5629"><enum>(A)</enum><text>foreign persons
with respect to whom such income is not subject to a comprehensive foreign
income tax, and</text>
</subparagraph><subparagraph id="HC609E9E2758444ACA7644D94252B51E0"><enum>(B)</enum><text>organizations
which are exempt from tax under this title.</text>
</subparagraph></paragraph></subsection><subsection id="H06DD89D2B89744D2955CD4526E48D014"><enum>(c)</enum><header>Determinability
of amounts of compensation</header>
<paragraph id="H68C1B9E2BB114F699F003FE580AA351D"><enum>(1)</enum><header>In
general</header><text>If the amount of any compensation is not determinable at
the time that such compensation is otherwise includible in gross income under
subsection (a)—</text>
<subparagraph id="H2BD89F86A5A1406CB59649F94050151C"><enum>(A)</enum><text>such amount shall
be so includible in gross income when determinable, and</text>
</subparagraph><subparagraph id="H0D8FFAA43089417398F46DA264AA7FFC"><enum>(B)</enum><text>the tax imposed
under this chapter for the taxable year in which such compensation is
includible in gross income shall be increased by the sum of—</text>
<clause id="H52D4CAC0EDE64485AFE57792D519A0A4"><enum>(i)</enum><text>the amount of
interest determined under paragraph (2), and</text>
</clause><clause id="H9D2F5A3B985D45E7A54942513F2136EC"><enum>(ii)</enum><text>an amount equal
to 20 percent of the amount of such compensation.</text>
</clause></subparagraph></paragraph><paragraph id="H65527DD047694E5DAD0783AC19954996"><enum>(2)</enum><header>Interest</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(B)(i), the
interest determined under this paragraph for any taxable year is the amount of
interest at the underpayment rate under section 6621 plus 1 percentage point on
the underpayments that would have occurred had the deferred compensation been
includible in gross income for the taxable year in which first deferred or, if
later, the first taxable year in which such deferred compensation is not
subject to a substantial risk of forfeiture.</text>
</paragraph></subsection><subsection id="HF2E87AB5A5204D458853955B66C72908"><enum>(d)</enum><header>Other
definitions and special rules</header><text>For purposes of this
section—</text>
<paragraph display-inline="no-display-inline" id="H32E928484653453687512F89041CCE87"><enum>(1)</enum><header>Substantial risk
of forfeiture</header>
<subparagraph id="HACE6796709BC42DFB7D8F2EB7F62EE1F"><enum>(A)</enum><header>In
general</header><text>The rights of a person to compensation shall be treated
as subject to a substantial risk of forfeiture only if such person’s rights to
such compensation are conditioned upon the future performance of substantial
services by any individual.</text>
</subparagraph><subparagraph id="H22F1631E159644639C4B487F70145539"><enum>(B)</enum><header>Exception for
compensation based on gain recognized on an investment asset</header>
<clause id="H97565400976F41069B5EC1A4AA700065"><enum>(i)</enum><header>In
general</header><text>To the extent provided in regulations prescribed by the
Secretary, if compensation is determined solely by reference to the amount of
gain recognized on the disposition of an investment asset, such compensation
shall be treated as subject to a substantial risk of forfeiture until the date
of such disposition.</text>
</clause><clause id="H5F055A624D0B426B8DF0ED6D7213FE37"><enum>(ii)</enum><header>Investment
asset</header><text>For purposes of clause (i), the term <quote>investment
asset</quote> means any single asset (other than an investment fund or similar
entity)—</text>
<subclause id="H2F05728205F4454CAFE94ED66F2626F"><enum>(I)</enum><text>acquired directly
by an investment fund or similar entity,</text>
</subclause><subclause id="H35EA5DA7FA4342C481C1460057AC33E9"><enum>(II)</enum><text>with respect to
which such entity does not (nor does any person related to such entity)
participate in the active management of such asset (or if such asset is an
interest in an entity, in the active management of the activities of such
entity), and</text>
</subclause><subclause id="H6A0DB42F66B5459AA76889B2A98D0875"><enum>(III)</enum><text>substantially
all of any gain on the disposition of which (other than such deferred
compensation) is allocated to investors in such entity.</text>
</subclause></clause><clause id="HD987FA28AC684C9CAC010090E86C14E0"><enum>(iii)</enum><header>Coordination
with special rule</header><text>Paragraph (3)(B) shall not apply to any
compensation to which clause (i) applies.</text>
</clause></subparagraph></paragraph><paragraph id="H78F35B34193646C598F00969C675EEE"><enum>(2)</enum><header>Comprehensive
foreign income tax</header><text>The term <term>comprehensive foreign income
tax</term> means, with respect to any foreign person, the income tax of a
foreign country if—</text>
<subparagraph id="H38FE500C943F47FB80D3EC92A048D164"><enum>(A)</enum><text>such person is
eligible for the benefits of a comprehensive income tax treaty between such
foreign country and the United States, or</text>
</subparagraph><subparagraph id="H0C507548FD454F7FA5C952D473C7523"><enum>(B)</enum><text>such person
demonstrates to the satisfaction of the Secretary that such foreign country has
a comprehensive income tax.</text>
</subparagraph></paragraph><paragraph id="H5098EA89AAC3466CBAEDDB600F6E223"><enum>(3)</enum><header>Nonqualified
deferred compensation plan</header>
<subparagraph id="H2C84F930CFEB49DFBBCDA4D28C25F2B9"><enum>(A)</enum><header>In
general</header><text>The term <term>nonqualified deferred compensation
plan</term> has the meaning given such term under section 409A(d), except that
such term shall include any plan that provides a right to compensation based on
the appreciation in value of a specified number of equity units of the service
recipient.</text>
</subparagraph><subparagraph commented="no" id="HE79205279EB84E138884003132525BC0"><enum>(B)</enum><header>Exception</header><text display-inline="yes-display-inline">Compensation shall not be treated as
deferred for purposes of this section if the service provider receives payment
of such compensation not later than 12 months after the end of the taxable year
of the service recipient during which the right to the payment of such
compensation is no longer subject to a substantial risk of forfeiture.</text>
</subparagraph></paragraph><paragraph id="H6BB027278EC5443DA8DBD16DA758CC95"><enum>(4)</enum><header>Exception for
certain compensation with respect to effectively connected income</header><text display-inline="yes-display-inline">In the case a foreign corporation with
income which is taxable under section 882, this section shall not apply to
compensation which, had such compensation had been paid in cash on the date
that such compensation ceased to be subject to a substantial risk of
forfeiture, would have been deductible by such foreign corporation against such
income.</text>
</paragraph><paragraph id="H780BAB6B12224ACD96690019DC53BD35"><enum>(5)</enum><header>Application of
rules</header><text display-inline="yes-display-inline">Rules similar to the
rules of paragraphs (5) and (6) of section 409A(d) shall apply.</text>
</paragraph></subsection><subsection id="HD7D3D53ADA1246AB939602E904769BE3"><enum>(e)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the purposes of
this section, including regulations disregarding a substantial risk of
forfeiture in cases where necessary to carry out the purposes of this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1F8E7C2038154EB5B89E5EA6F01648F"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 26(b)(2) is amended by striking
<quote>and</quote> at the end of subparagraph (U), by striking the period at
the end of subparagraph (V) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HC0587F74CD3F4165ACA3F1346B54698" style="OLC">
<subparagraph id="H0A9EAC621A564385AA63114E064C9E1E"><enum>(W)</enum><text display-inline="yes-display-inline">section 457A(c)(1)(B) (relating to
determinability of amounts of
compensation).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H3DBCA16116ED48729FE6ACA4330453B3"><enum>(c)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections of subpart B of part II of subchapter E of chapter 1 is amended by
inserting after the item relating to section 457 the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H8FAB2AC15DE741ED880792AD57FCE1FA" style="OLC">
<toc container-level="quoted-block-container" idref="H26C582B356354245942D2735ADE3D286" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H3E8BDC8712EF4E9E9DDADA46038E5A7" level="section">Sec. 457A. Nonqualified deferred compensation from certain tax
indifferent
parties.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5807AAA0342A41248586F44067BCF7BB"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="HFB046F29FA934673B2EAFCB0D37200F5"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to amounts deferred which are
attributable to services performed after December 31, 2008.</text>
</paragraph><paragraph id="H8A25207834684D439DB1EC1135078556"><enum>(2)</enum><header>Application to
existing deferrals</header><text>In the case of any amount deferred to which
the amendments made by this section do not apply solely by reason of the fact
that the amount is attributable to services performed before January 1, 2009,
to the extent such amount is not includible in gross income in a taxable year
beginning before 2018, such amounts shall be includible in gross income in the
later of—</text>
<subparagraph id="HD192F8B69E774AEE9147D06066C1C872"><enum>(A)</enum><text>the last taxable
year beginning before 2018, or</text>
</subparagraph><subparagraph id="H860E5503C4414DD393999F00CF9B507"><enum>(B)</enum><text>the taxable year in
which there is no substantial risk of forfeiture of the rights to such
compensation (determined in the same manner as determined for purposes of
section 457A of the Internal Revenue Code of 1986, as added by this
section).</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H67AD3CB6F8294663AF70F22F3CC8F973"><enum>(3)</enum><header>Charitable
contributions of existing deferrals permitted</header>
<subparagraph id="HC047889E91F94FEF8E002CDE64F9EA9F"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (b) of
section 170 of the Internal Revenue Code of 1986 shall not apply to (and
subsections (b) and (d) of such section shall be applied without regard to) so
much of the taxpayer’s qualified contributions made during the taxpayer’s last
taxable year beginning before 2018 as does not exceed the taxpayer’s qualified
inclusion amount. For purposes of subsection (b) of section 170 of such Code,
the taxpayer’s contribution base for such last taxable year shall be reduced by
the amount of the taxpayer’s qualified contributions to which such subsection
does not apply by reason the preceding sentence.</text>
</subparagraph><subparagraph id="H3EF6F1ADB90D40638B5C8E0013E1399F"><enum>(B)</enum><header>Qualified
contributions</header><text display-inline="yes-display-inline">For purposes of
this paragraph, the term <quote>qualified contributions</quote> means the
aggregate charitable contributions (as defined in section 170(c) of such Code)
paid in cash by the taxpayer to organizations described in section 170(b)(1)(A)
of such Code (other than any organization described in section 509(a)(3) of
such Code or any fund or account described in section 4966(d)(2) of such
Code).</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="HD15873F5BDAF4817BED9A920A790CB2C"><enum>(C)</enum><header>Qualified
inclusion amount</header><text>For purposes of this paragraph, the term
<quote>qualified inclusion amount</quote> means the amount includible in the
taxpayer’s gross income for the last taxable year beginning before 2018 by
reason of paragraph (2).</text>
</subparagraph></paragraph><paragraph id="H03F81E313C4B42B5B9D2997C040299F"><enum>(4)</enum><header>Accelerated
payments</header><text display-inline="yes-display-inline">No later than 120
days after the date of the enactment of this Act, the Secretary shall issue
guidance providing a limited period of time during which a nonqualified
deferred compensation arrangement attributable to services performed on or
before December 31, 2008, may, without violating the requirements of section
409A(a) of the Internal Revenue Code of 1986, be amended to conform the date of
distribution to the date the amounts are required to be included in
income.</text>
</paragraph><paragraph id="H62DEEC775114410798834E5B00457122"><enum>(5)</enum><header>Certain
back-to-back arrangements</header><text>If the taxpayer is also a service
recipient and maintains one or more nonqualified deferred compensation
arrangements for its service providers under which any amount is attributable
to services performed on or before December 31, 2008, the guidance issued under
paragraph (4) shall permit such arrangements to be amended to conform the dates
of distribution under such arrangement to the date amounts are required to be
included in the income of such taxpayer under this subsection.</text>
</paragraph><paragraph id="HBB6A2CDCBC144624A64BF7394CE1ED88"><enum>(6)</enum><header>Accelerated
payment not treated as material modification</header><text>Any amendment to a
nonqualified deferred compensation arrangement made pursuant to paragraph (4)
or (5) shall not be treated as a material modification of the arrangement for
purposes of section 409A of the Internal Revenue Code of 1986.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H78735166C158449382FF0185D8D00CF" section-type="subsequent-section"><enum>402.</enum><header>Delay in application
of worldwide allocation of interest</header>
<subsection id="HA54A7BD00C3147A4B06EF3A5FE2491D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (6) of
section 864(f) is amended—</text>
<paragraph id="idA551BA9EB2854B93916636E11DEC634B"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2018</quote>,</text>
</paragraph><paragraph id="id5E15EA975C2848209C167B0B3F049B45"><enum>(2)</enum><text>by striking
<quote>An election</quote> and inserting:</text>
<quoted-block display-inline="no-display-inline" id="id4D7916858E3342C1BC956E3CB1662E4F" style="OLC">
<subparagraph id="id36280A104B1042CEB7A6D14C4881E925"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), an
election</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idDF98513F4CB04DE58ADB956B39935DEC"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id85FBCC2692A341CAAC9C2F403E901E46" style="OLC">
<subparagraph id="id699C25259F2546E19ABB0CC129F76999"><enum>(B)</enum><header>Earlier
application for certain groups including holding companies</header>
<clause id="id19670845E028439CA4F8A37F4F2BF2C4"><enum>(i)</enum><header>In
general</header><text>Notwithstanding subparagraph (A), in the case of an
applicable worldwide affiliated group—</text>
<subclause id="id13B604585F5C4154832D5BBB3615853F"><enum>(I)</enum><text>the common parent
of the applicable worldwide affiliated group may elect, for its first taxable
year beginning after December 31, 2008, to have paragraphs (1), (2), and (3)
apply to the applicable worldwide affiliated group as if it were a separate
worldwide affiliated group, and</text>
</subclause><subclause id="idCC24B86014D944B8BA3FD7014C0B9FC7"><enum>(II)</enum><text>except as
provided in clause (ii), such election shall apply to such applicable worldwide
affiliated group for such taxable year and the 2 immediately succeeding taxable
years unless revoked with the consent of the Secretary.</text>
</subclause><continuation-text continuation-text-level="clause">Such election
shall not preclude an election under subparagraph (A) with respect to the
worldwide affiliated group to which such applicable worldwide affiliated group
relates.</continuation-text></clause><clause id="idE979BB618DBC4FC3B9BFCD54B689FF5B"><enum>(ii)</enum><header>Limitation
based on foreign assets</header><text>This subsection shall not apply to a
taxable year for which the election under clause (i) is otherwise in effect if
the ratio (expressed as a percentage) which the foreign assets of the
applicable worldwide affiliated group bear to all the assets of the applicable
worldwide affiliated group exceeds 3 percent at any time during such taxable
year.</text>
</clause><clause id="id3A220A9EE66F48AD8B55F72A6FA2E077"><enum>(iii)</enum><header>Applicable
worldwide affiliated group</header><text>For purposes of this subparagraph, the
term <term>applicable worldwide affiliated group</term> means, with respect to
any worldwide affiliated group (as defined in paragraph (1)(C)) the common
parent of which is an entity described in clause (i), (ii), or (iii) of
paragraph (4)(C), a separate group consisting of those members of such
worldwide affiliated group which—</text>
<subclause id="idC9F8C04656404FC5B4C3246CEF93ECFA"><enum>(I)</enum><text>are entities
described in clause (i), (ii), or (iii) of paragraph (4)(C), or are
subsidiaries of such entities substantially all of the activities of which are
payroll, asset holding, or other activities which are integrally related to
activities described in any such clause, and</text>
</subclause><subclause id="id66D8F56FCC2F440D8B9CCAF6320857DC"><enum>(II)</enum><text>were in
existence, and were members of such group, as of October 21, 2004.</text>
</subclause></clause><clause id="idE675348DAB724607B46431EC477A6E8E"><enum>(iv)</enum><header>Guidance</header><text>The
Secretary may prescribe such guidance as may be necessary to carry out the
application of this subparagraph, including guidance with respect to the proper
method for determining the ratio described in clause (ii) and guidance to
prevent avoidance of the purposes of this
subparagraph.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id8AB9AFBFE3B149F68E9EFD60CF5516BC"><enum>(b)</enum><header>Conforming
amendment</header><text>Paragraph (5)(D) of section 864(f) is amended by
striking <quote>December 31, 2008</quote> and inserting <quote>December 31,
2018</quote>.</text>
</subsection><subsection id="HFEF6C1CC320E422CAB51002ED907EB3"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2008.</text>
</subsection></section><section id="H068310798BC74E8AA777E686A6C1E216"><enum>403.</enum><header>Time for
payment of corporate estimated taxes</header>
<subsection id="HBCBD4BACB9C34428B1C0EA738C2F9EE4"><enum>(a)</enum><header>Repeal of
adjustment for 2012</header><text>Subparagraph (B) of section 401(1) of the Tax
Increase Prevention and Reconciliation Act of 2005 is amended by striking the
percentage contained therein and inserting <quote>100 percent</quote>.</text>
</subsection><subsection id="H878C74D92B16418DB500FCCAF9463E54"><enum>(b)</enum><header>Modification of
adjustment for 2013</header><text display-inline="yes-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 37.75 percentage points.</text>
</subsection></section>