II Calendar No. 898 110th CONGRESS 2d Session S. 3335 IN THE SENATE OF THE UNITED STATES July 24 (legislative day, July 23), 2008 Mr. Baucus (for himself and Mr. Reid) introduced the following bill; which was read the first time July 25, 2008 Read the second time and placed on the calendar A BILL To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes.

1.

Short title, etc

(a)

Short title

This Act may be cited as the Jobs, Energy, Families, and Disaster Relief Act of 2008. (b)

Reference

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c)

Table of contents

The table of contents 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. Transportation fringe benefit to bicycle commuters. Sec. 127. Alternative fuel vehicle refueling property credit. Sec. 128. Certain income and gains relating to alcohol fuels and mixtures, biodiesel fuels and mixtures, and alternative fuels and mixtures treated as qualifying income for publicly traded partnerships. Subtitle C—Energy conservation and efficiency provisions Sec. 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. Sec. 147. Special depreciation allowance for certain reuse and recycling property. 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. Extension and modification of 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. Extension and expansion of 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. $8,500 income threshold used to calculate refundable portion of child tax credit. Sec. 302. Income averaging for amounts received in connection with the Exxon Valdez litigation. Subtitle B—Business related provisions Sec. 311. Provisions related to film and television productions. Sec. 312. Modification of rate of excise tax on certain wooden arrows designed for use by children. Sec. 313. Mental health parity. 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—Other provisions Sec. 331. Secure rural schools and community self-determination program. Sec. 332. Clarification of uniform definition of child. TITLE IV—Transportation and infrastructure Sec. 401. Restoration of Highway Trust Fund balance. TITLE V—Disaster relief Subtitle A—Relief for federally declared disasters Sec. 501. Losses attributable to federally declared disasters. Sec. 502. Expensing of Qualified Disaster Expenses. Sec. 503. Net operating losses attributable to federally declared disasters. Sec. 504. Waiver of certain mortgage revenue bond requirements following federally declared disasters. Sec. 505. Other relief for federally declared disasters. Sec. 506. Sunset. Subtitle B—Other disaster relief provisions Sec. 511. Restructuring of New York Liberty Zone tax credits. Sec. 512. Reporting requirements relating to disaster relief contributions. TITLE VI—Revenue Provisions Sec. 601. Nonqualified deferred compensation from certain tax indifferent parties. Sec. 602. Delay in application of worldwide allocation of interest. Sec. 603. Broker reporting of customer’s basis in securities transactions. Sec. 604. Time for payment of corporate estimated taxes.

. (b)

Forest receipt payments to eligible states and counties

(1)

Act of May 23, 1908

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)

Weeks law

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)

In general

Section 6906 of title 31, United States Code, is amended to read as follows:

6906.

Funding

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)

Conforming amendment

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)

Budget scorekeeping

(A)

In general

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)

Effective date

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.

332.

Clarification of uniform definition of child

(a)

Child must be younger than claimant

Section 152(c)(3)(A) is amended by inserting is younger than the taxpayer claiming such individual as a qualifying child and after such individual. (b)

Child must be unmarried

Section 152(c)(1) 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)

Child tax credit

Subsection (a) of section 24 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)

In general

Paragraph (4) of section 152(c) is amended by adding at the end the following new subparagraph: (C)

No parent claiming qualifying child

If 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)

Conforming amendments

(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)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

July 25, 2008 Read the second time and placed on the calendar