111th CONGRESS
2d Session
H.R. 2847
In the Senate of the United
States,
February 24, 2010.
Senate Amendment to House Amendment to Senate
Amendment:
That the Senate agrees to the amendment of the
House of Representatives to the amendment of the Senate to the bill (H.R. 2847)
entitled An Act making appropriations for the Departments of Commerce
and Justice, and Science, and Related Agencies for the fiscal year ending
September 30, 2010, and for other purposes.
, with the following
In lieu of the
matter proposed to be inserted by the amendment of the House to the amendment
of the Senate insert the
following:
1.Short title; amendment of
1986 Code; table of contents
(a)This Act may be cited
as the Hiring Incentives to Restore
Employment Act
.
(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; amendment of 1986 Code;
table of contents.
TITLE I—Incentives for hiring and
retaining unemployed workers
Sec. 101. Payroll tax
forgiveness for hiring unemployed workers.
Sec. 102. Business credit for
retention of certain newly hired individuals in 2010.
TITLE II—Expensing
Sec. 201. Increase in expensing
of certain depreciable business assets.
TITLE III—Qualified tax credit
bonds
Sec. 301. Issuer allowed
refundable credit for certain qualified tax credit bonds.
TITLE IV—Extension of current
surface transportation programs
Sec. 401. Short
title.
Subtitle A—Federal-aid
highways
Sec. 411. In
general.
Sec. 412. Administrative
expenses.
Sec. 413. Rescission of
unobligated balances.
Sec. 414. Reconciliation of
funds.
Subtitle B—National Highway
Traffic Safety Administration, Federal Motor Carrier Safety Administration, and
additional programs
Sec. 421. Extension of National
Highway Traffic Safety Administration Highway Safety Programs.
Sec. 422. Extension of Federal
Motor Carrier Safety Administration Programs.
Sec. 423. Additional
programs.
Subtitle C—Public
transportation programs
Sec. 431. Allocation of funds
for planning programs.
Sec. 432. Special rule for
urbanized area formula grants.
Sec. 433. Allocating amounts
for capital investment grants.
Sec. 434. Apportionment of
formula grants for other than urbanized areas.
Sec. 435. Apportionment based
on fixed guideway factors.
Sec. 436. Authorizations for
public transportation.
Sec. 437. Amendments to
SAFETEA–LU.
Subtitle D—Revenue
provisions
Sec. 441. Repeal of provision
prohibiting the crediting of interest to the Highway Trust Fund.
Sec. 442. Restoration of
certain foregone interest to Highway Trust Fund.
Sec. 443. Treatment of certain
amounts appropriated to Highway Trust Fund.
Sec. 444. Termination of
transfers from highway trust fund for certain repayments and
credits.
Sec. 445. Extension of
authority for expenditures.
Sec. 446. Level of obligation
limitations.
TITLE V—Offset
provisions
Subtitle A—Foreign account tax
compliance
PART I—Increased disclosure of
beneficial owners
Sec. 501. Reporting on certain
foreign accounts.
Sec. 502. Repeal of certain
foreign exceptions to registered bond requirements.
PART II—Under reporting with
respect to foreign assets
Sec. 511. Disclosure of
information with respect to foreign financial assets.
Sec. 512. Penalties for
underpayments attributable to undisclosed foreign financial assets.
Sec. 513. Modification of
statute of limitations for significant omission of income in connection with
foreign assets.
PART III—Other disclosure
provisions
Sec. 521. Reporting of
activities with respect to passive foreign investment companies.
Sec. 522. Secretary permitted
to require financial institutions to file certain returns related to
withholding on foreign transfers electronically.
PART IV—Provisions related to
foreign trusts
Sec. 531. Clarifications with
respect to foreign trusts which are treated as having a United States
beneficiary.
Sec. 532. Presumption that
foreign trust has United States beneficiary.
Sec. 533. Uncompensated use of
trust property.
Sec. 534. Reporting requirement
of United States owners of foreign trusts.
Sec. 535. Minimum penalty with
respect to failure to report on certain foreign trusts.
PART V—Substitute dividends and
dividend equivalent payments received by foreign persons treated as
dividends
Sec. 541. Substitute dividends
and dividend equivalent payments received by foreign persons treated as
dividends.
Subtitle B—Delay in
application of worldwide allocation of interest
Sec. 551. Delay in application
of worldwide allocation of interest.
<enum>I</enum><header>Incentives for hiring and
retaining unemployed workers</header>
<section id="id1265B72B19E140CF803A8F836CF2E1DC"><enum>101.</enum><header>Payroll tax
forgiveness for hiring unemployed workers</header>
<subsection id="id774D7912B64843BD9C19B96072A6081F"><enum>(a)</enum><header>In
general</header><text>Section 3111 is amended by adding at the end the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id608CF5C571FE4DA281552207AFEA99FF" reported-display-style="italic" style="OLC">
<subsection id="id49881F94C7D541B1B817B3322478D17C"><enum>(d)</enum><header>Special exemption for
certain individuals hired in 2010</header>
<paragraph id="id98778A863A9F4255A1DAF1F2EF526191"><enum>(1)</enum><header>In
general</header><text>Subsection (a) shall not apply to wages paid by a
qualified employer with respect to employment during the period beginning on
the day after the date of the enactment of this subsection and ending on
December 31, 2010, of any qualified individual for services performed—</text>
<subparagraph id="id4327908572AB44EC9C22AE5343EC6192"><enum>(A)</enum><text>in a trade or business of
such qualified employer, or</text>
</subparagraph><subparagraph id="idE4211E421B884279BCA95AACB9E27BC3"><enum>(B)</enum><text>in the case of a
qualified employer exempt from tax under section 501(a), in furtherance of the
activities related to the purpose or function constituting the basis of the
employer’s exemption under section 501.</text>
</subparagraph></paragraph><paragraph id="id01954DCF179246D191BD186BE9678E58"><enum>(2)</enum><header>Qualified
employer</header><text>For purposes of this subsection—</text>
<subparagraph id="id213E25C82C7040319702E0AF2E7C65C1"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified employer</term> means any
employer other than the United States, any State, or any political subdivision
thereof, or any instrumentality of the foregoing.</text>
</subparagraph><subparagraph id="idC4CF755B95D4479F8B9D979487CD79BA"><enum>(B)</enum><header>Treatment of employees
of post-secondary educational institutions</header><text>Notwithstanding
subparagraph (A), the term <term>qualified employer</term> includes any
employer which is a public institution of higher education (as defined in
section 101(b) of the Higher Education Act of 1965).</text>
</subparagraph></paragraph><paragraph id="idD7BEB4C1E7BE405FB58CF951903481E2"><enum>(3)</enum><header>Qualified
individual</header><text>For purposes of this subsection, the term
<term>qualified individual</term> means any individual who—</text>
<subparagraph id="id17C4E891233E420BA1102AC6C3F093CE"><enum>(A)</enum><text>begins employment with a
qualified employer after February 3, 2010, and before January 1, 2011,</text>
</subparagraph><subparagraph id="idFF0FF2F1560A46C0AC567EAAD0164331"><enum>(B)</enum><text>certifies by signed
affidavit, under penalties of perjury, that such individual has not been
employed for more than 40 hours during the 60-day period ending on the date
such individual begins such employment,</text>
</subparagraph><subparagraph id="id26E7FEE3A4164EC9B1A9F524C40DD8E9"><enum>(C)</enum><text>is not employed by the
qualified employer to replace another employee of such employer unless such
other employee separated from employment voluntarily or for cause, and</text>
</subparagraph><subparagraph id="idAE029DB1E5F347ABBD9EA96D53979A5F"><enum>(D)</enum><text>is not an individual
described in section 51(i)(1) (applied by substituting <quote>qualified
employer</quote> for <quote>taxpayer</quote> each place it appears).</text>
</subparagraph></paragraph><paragraph id="idDE04864A09F7469FA6718DD72E5AB6CF"><enum>(4)</enum><header>Election</header><text>A
qualified employer may elect to have this subsection not apply. Such election
shall be made in such manner as the Secretary may
require.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id8104E00DEB8449399B13C1635EE7B3B9"><enum>(b)</enum><header>Coordination with work
opportunity credit</header><text>Section 51(c) is amended by adding at the end
the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6344E97289FE4A8FBE10960769583599" reported-display-style="italic" style="OLC">
<paragraph id="id6F62B01D55C04DCDA3A462D4BC7378E6"><enum>(5)</enum><header>Coordination with
payroll tax forgiveness</header><text>The term <term>wages</term> shall not
include any amount paid or incurred to a qualified individual (as defined in
section 3111(d)(3)) during the 1-year period beginning on the hiring date of
such individual by a qualified employer (as defined in section 3111(d)) unless
such qualified employer makes an election not to have section 3111(d)
apply.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idD322549548604A69BD79D53F25A7EB6B"><enum>(c)</enum><header>Transfers to Federal
Old-Age and Survivors Insurance Trust Fund</header><text>There are hereby
appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal
Disability Insurance Trust Fund established under section 201 of the Social
Security Act (42 U.S.C. 401) amounts equal to the reduction in revenues to the
Treasury by reason of the amendments made by subsection (a). Amounts
appropriated by the preceding sentence shall be transferred from the general
fund at such times and in such manner as to replicate to the extent possible
the transfers which would have occurred to such Trust Fund had such amendments
not been enacted.</text>
</subsection><subsection id="id73E7EA393ECE4FE4A69B9832DB092B0F"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to wages
paid after the date of the enactment of this Act.</text>
</subsection></section><section id="id447B91C44681437C843EF77C4560BB30"><enum>102.</enum><header>Business credit for
retention of certain newly hired individuals in 2010</header>
<subsection id="idD7D70A178BF04FD08AB88AA5E3055F30"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of any
taxable year ending after the date of the enactment of this Act, the current
year business credit determined under section 38(b) of the Internal Revenue
Code of 1986 for such taxable year shall be increased by an amount equal to the
product of—</text>
<paragraph id="id21B0F2709AB74CB58E1DE9956A091050"><enum>(1)</enum><text display-inline="yes-display-inline">$1,000, and</text>
</paragraph><paragraph id="id11BA58E1F8464E049969B6154A3528A6"><enum>(2)</enum><text>the number of retained
workers with respect to which subsection (b)(2) is first satisfied during such
taxable year.</text>
</paragraph></subsection><subsection id="id14AAAF75245842EEB18D31E381398543"><enum>(b)</enum><header>Retained
worker</header><text>For purposes of this section, the term <term>retained
worker</term> means any qualified individual (as defined in section 3111(d)(3)
of the Internal Revenue Code of 1986)—</text>
<paragraph id="id50472E4339054386A02A40F55A9B1728"><enum>(1)</enum><text>who was employed by the
taxpayer on any date during the taxable year,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id448162201B624326AE50BAE80C1F5B92"><enum>(2)</enum><text>who was so employed by
the taxpayer for a period of not less than 52 consecutive weeks, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBBDEE14EE5A243CEAC031D48D1BF40B3"><enum>(3)</enum><text>whose wages for such
employment during the last 26 weeks of such period equaled at least 80 percent
of such wages for the first 26 weeks of such period.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idD8FAD15B15FE4E7FBED6AFFE84523EEF"><enum>(c)</enum><header>Limitation on
carrybacks</header><text>No portion of the unused business credit under section
38 of the Internal Revenue Code of 1986 for any taxable year which is
attributable to the increase in the current year business credit under this
section may be carried to a taxable year beginning before the date of the
enactment of this section.</text>
</subsection></section><enum>II</enum><header>Expensing</header>
<section commented="no" display-inline="no-display-inline" id="idAB5357A868124C6B8C8E1F485649EB4C"><enum>201.</enum><header>Increase in expensing
of certain depreciable business assets</header>
<subsection commented="no" display-inline="no-display-inline" id="id100827AA9226404391110D62E2D551AB"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 179 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idA9DFFF35753A4526BD0AB5F6072EDE40"><enum>(1)</enum><text>by striking
<quote>($125,000 in the case of taxable years beginning after 2006 and before
2011)</quote> in paragraph (1) and inserting <quote>($250,000 in the case of
taxable years beginning after 2007 and before 2011)</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC2A192CCBBA64755B46D788A8923567D"><enum>(2)</enum><text>by striking
<quote>($500,000 in the case of taxable years beginning after 2006 and before
2011)</quote> in paragraph (2) and inserting <quote>($800,000 in the case of
taxable years beginning after 2007 and before 2011)</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id23D6D7CD0A6E438F81DC2F692598A53E"><enum>(3)</enum><text>by striking paragraphs
(5) and (7), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9F6C2CEB31274C36ADD86DB781C4FAFC"><enum>(4)</enum><text>by redesignating
paragraph (6) as paragraph (5).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id74AF573906DF4FACB4F8A53E957674E2"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><enum>III</enum><header>Qualified tax credit
bonds</header>
<section id="id1A7A0C843B364C8CBFE38B99C3BB66BC" section-type="subsequent-section"><enum>301.</enum><header>Issuer allowed
refundable credit for certain qualified tax credit bonds</header>
<subsection id="idE330A2B5F4BC47838641605A6B08690B"><enum>(a)</enum><header>Credit
allowed</header><text display-inline="yes-display-inline">Section 6431 is
amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id44E332FB33734C638CA9CCFAF2F2A713" reported-display-style="italic" style="OLC">
<subsection id="idCDECC27106EB44BB824EB1D390A715CE"><enum>(f)</enum><header>Application of section
to certain qualified tax credit bonds</header>
<paragraph id="id2C3725E3A10E435CB75C6AE7A1F34513"><enum>(1)</enum><header>In
general</header><text>In the case of any specified tax credit bond—</text>
<subparagraph id="idD4180677FBFB47158103B07E0FCA7DAF"><enum>(A)</enum><text>such bond shall be
treated as a qualified bond for purposes of this section,</text>
</subparagraph><subparagraph id="id0A1F89F59C104564A7760F636D5DDF6C"><enum>(B)</enum><text display-inline="yes-display-inline">subsection (a) shall be applied without
regard to the requirement that the qualified bond be issued before January 1,
2011,</text>
</subparagraph><subparagraph id="id70DA17674F7D49079F0E4A78C0AECA81"><enum>(C)</enum><text>the amount of the payment
determined under subsection (b) with respect to any interest payment date under
such bond shall be—</text>
<clause id="id0A0327755B0A4C8996EA51B7D218FAF7"><enum>(i)</enum><text>in the case of a bond
issued by a qualified small issuer, 65 percent of the amount of interest
payable on such bond by such issuer with respect to such date, and</text>
</clause><clause id="idCE9469D6265546B8A68D76B9820709BE"><enum>(ii)</enum><text>in the case of a bond
issued by any other person, 45 percent of the amount of interest payable on
such bond by such issuer with respect to such date,</text>
</clause></subparagraph><subparagraph id="id3380694B4829424B84C3EE532410D894"><enum>(D)</enum><text>interest on any such bond
shall be includible in gross income for purposes of this title,</text>
</subparagraph><subparagraph id="id26808635C3CC4B0883BF9844EE65BD8A"><enum>(E)</enum><text>no credit shall be
allowed under section 54A with respect to such bond,</text>
</subparagraph><subparagraph id="ID92ce091d5488470e81bf7a85d597d605"><enum>(F)</enum><text>any payment made under
subsection (b) shall not be includible as income for purposes of this title,
and</text>
</subparagraph><subparagraph id="ID95ef84d3682d4c51a655b965d5aa4333"><enum>(G)</enum><text>the deduction otherwise
allowed under this title to the issuer of such bond with respect to interest
paid under such bond shall be reduced by the amount of the payment made under
this section with respect to such interest.</text>
</subparagraph></paragraph><paragraph id="id3ADE9D468B4044319C9A1EAE68BFF83B"><enum>(2)</enum><header>Definitions</header><text>For
purposes of this subsection—</text>
<subparagraph id="idC310532983B4419A9C6FF96C3523144E"><enum>(A)</enum><header>Specified tax credit
bond</header><text>The term <term>specified tax credit bond</term> means any
qualified tax credit bond (as defined in section 54A(d)) if—</text>
<clause id="id115D4A8B3D9A47A1B93DC40EA966240A"><enum>(i)</enum><text>such bond is—</text>
<subclause id="id8198CC5D0E3B436F95D68B83A5E4C95A"><enum>(I)</enum><text>a new clean renewable
energy bond (as defined in section 54C),</text>
</subclause><subclause id="id1F6E98651EEE482A9613CF00F8E40D6B"><enum>(II)</enum><text>a qualified energy
conservation bond (as defined in section 54D),</text>
</subclause><subclause id="id2C1D19C6301E4614838AD279624C3D3F"><enum>(III)</enum><text>a qualified zone
academy bond (as defined in section 54E), or</text>
</subclause><subclause id="id245D0DF19AA34589BBDB99E3CE4E25D8"><enum>(IV)</enum><text>a qualified school
construction bond (as defined in section 54F), and</text>
</subclause></clause><clause id="id694936E6B579484885F8178B32D3EA8C"><enum>(ii)</enum><text>the issuer of such bond
makes an irrevocable election to have this subsection apply,</text>
</clause></subparagraph><subparagraph id="id972F20BB8547468296EF738B570F77BE"><enum>(B)</enum><header>Qualified small
issuer</header><text>The term <term>qualified small issuer</term> means, with
respect to any calendar year, any issuer who is not reasonably expected to
issue tax-exempt bonds (other than private activity bonds) and specified tax
credit bonds (determined without regard to whether an election is made under
this subsection) during such calendar year in an aggregate face amount
exceeding
$30,000,000.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idFD2D17CF05B9475FB7098CAB059FE7B9"><enum>(b)</enum><header>Technical corrections
relating to qualified school construction bonds</header>
<paragraph id="idA41F350921114C92A310CE5D1BFB4808"><enum>(1)</enum><text>The second sentence of
section 54F(d)(1) is amended by striking <quote>by the State</quote> and
inserting <quote>by the State education agency (or such other agency as is
authorized under State law to make such allocation)</quote>.</text>
</paragraph><paragraph id="id32516D98400944319865BD63F679F33C"><enum>(2)</enum><text>The second sentence of
section 54F(e) is amended by striking <quote>subsection (d)(4)</quote> and
inserting <quote>paragraphs (2) and (4) of subsection (d)</quote>.</text>
</paragraph></subsection><subsection id="id74B4CEED942C4D95BF67CD1B914E176C"><enum>(c)</enum><header>Effective
dates</header>
<paragraph id="idD0F3B90B242042C085371E1DB4EC13C7"><enum>(1)</enum><header>In
general</header><text>The amendment made by subsection (a) shall apply to bonds
issued after the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5E04CA486AEB4954B83FC13D39A92903"><enum>(2)</enum><header>Technical
corrections</header><text>The amendments made by subsection (b) shall take
effect as if included in section 1521 of the American Recovery and Reinvestment
Tax Act of 2009.</text>
</paragraph></subsection></section><enum>IV</enum><header>Extension of current
surface transportation programs</header>
<section id="ID46375282814a45898731b9f9f973fb4c" section-type="subsequent-section"><enum>401.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Surface Transportation
Extension Act of 2010</short-title></quote>.</text>
</section><subtitle id="idFB2CE1F5212B4231ACA799AE2DC7E076"><enum>A</enum><header>Federal-aid
highways</header>
<section id="ID4389317e46ef48dfbf123e6160e2132d"><enum>411.</enum><header>In general</header>
<subsection id="IDd9b6a7d65e374408a514d01b5141c1b7"><enum>(a)</enum><header>In
general</header><text>Except as provided in this Act, requirements,
authorities, conditions, eligibilities, limitations, and other provisions
authorized under titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), the
SAFETEA–LU Technical Corrections Act of 2008 (122 Stat. 1572), titles I and VI
of the Intermodal Surface Transportation Act of 1991 (105 Stat. 1914), titles I
and V of the Transportation Equity Act for the 21st Century (112 Stat. 107),
and title 23, United States Code (excluding chapter 4 of that title), which
would otherwise expire on or cease to apply after September 30, 2009, or the
date specified in section 106(3) of the Continuing Appropriations Resolution,
2010 (Public Law 111–68), are incorporated by reference and shall continue in
effect until December 31, 2010.</text>
</subsection><subsection id="IDaa70116a24a04b6f981f1127f4634299"><enum>(b)</enum><header>Authorization of
appropriations</header><text>Except as provided in section 412, there are
authorized to be appropriated out of the Highway Trust Fund (other than the
Mass Transit Account)—</text>
<paragraph id="ID2bcc48aa148a4ec39dc5dbb9dc7aabde"><enum>(1)</enum><text>for fiscal year 2010, a
sum equal to the total amount authorized to be appropriated out of the Highway
Trust Fund for programs, projects, and activities for fiscal year 2009 under
titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), and title 23, United
States Code (excluding chapter 4 of that title); and</text>
</paragraph><paragraph id="IDd077241182a64db689e92fca077e9582"><enum>(2)</enum><text>for the period beginning
on October 1, 2010, and ending on December 31, 2010, a sum equal to ¼ of the
total amount authorized to be appropriated out of the Highway Trust Fund for
programs, projects, and activities for fiscal year 2009 under titles I, V, and
VI of the SAFETEA–LU (119 Stat. 1144), and title 23, United States Code
(excluding chapter 4 of that title).</text>
</paragraph></subsection><subsection id="ID3c310518360042b7882136e1e2b7bbd3"><enum>(c)</enum><header>Use of funds</header>
<paragraph id="IDcc06eb40255e48f58b4926c770e4efbc"><enum>(1)</enum><header>Fiscal year
2010</header><text>Except as otherwise expressly provided in this Act, funds
authorized to be appropriated under subsection (b)(1) for fiscal year 2010
shall be distributed, administered, limited, and made available for obligation
in the same manner and at the same level as funds authorized to be appropriated
out of the Highway Trust Fund for fiscal year 2009 to carry out programs,
projects, activities, eligibilities, and requirements under the SAFETEA–LU (119
Stat. 1144), the SAFETEA–LU Technical Corrections Act of 2008 (122 Stat. 1572),
titles I and VI of the Intermodal Surface Transportation Act of 1991 (105 Stat.
1914), titles I and V of the Transportation Equity Act for the 21st Century
(112 Stat. 107), and title 23, United States Code (excluding chapter 4 of that
title).</text>
</paragraph><paragraph id="IDd5d370e8307a4e3fb604f87a53746b68"><enum>(2)</enum><header>Fiscal year
2011</header><text>Except as otherwise expressly provided in this Act, funds
authorized to be appropriated under subsection (b)(2) for the period beginning
on October 1, 2010, and ending on December 31, 2010, shall be distributed,
administered, limited, and made available for obligation in the same manner and
at the same level as ¼ of the total amount of funds authorized to be
appropriated out of the Highway Trust Fund for fiscal year 2009 to carry out
programs, projects, activities, eligibilities, and requirements under the
SAFETEA–LU (119 Stat. 1144), the SAFETEA–LU Technical Corrections Act of 2008
(122 Stat. 1572), titles I and VI of the Intermodal Surface Transportation Act
of 1991 (105 Stat. 1914), titles I and V of the Transportation Equity Act for
the 21st Century (112 Stat. 107), and title 23, United States Code (excluding
chapter 4 of that title).</text>
</paragraph><paragraph id="ID07205140e7194a2a9c553447782a3790"><enum>(3)</enum><header>Calculation</header><text>The
amounts authorized to be appropriated under subsection (b) shall be calculated
without regard to any rescission or cancellation of funds or contract authority
for fiscal year 2009 under the SAFETEA–LU (119 Stat. 1144) or any other
law.</text>
</paragraph><paragraph id="ID2498049183f34282b03964f84ad8c58a"><enum>(4)</enum><header>Contract
authority</header>
<subparagraph id="IDd5f60d046889471bbc7b620df8c6bb11"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), funds authorized
to be appropriated under this section shall be available for obligation and
shall be administered in the same manner as if such funds were apportioned
under chapter 1 of title 23, United States Code, and—</text>
<clause id="ID642aeb9b04634320930b4a51746d7966"><enum>(i)</enum><text>for fiscal year 2010,
shall be subject to a limitation on obligations for Federal-aid highways and
highway safety construction programs included in an Act making appropriations
for fiscal year 2010 or a portion of that fiscal year; and</text>
</clause><clause id="ID0cd719ed7cb24b019b046a9427e73f68"><enum>(ii)</enum><text>for the period beginning
on October 1, 2010, and ending on December 31, 2010, shall be subject to a
limitation on obligations included in an Act making appropriations for fiscal
year 2011 or a portion of that fiscal year, except that during such period
obligations subject to such limitation shall not exceed ¼ of the limitation on
obligations included in an Act making appropriations for fiscal year
2011.</text>
</clause></subparagraph><subparagraph id="ID3a01bd570ad04bdbb34213c918591f4d"><enum>(B)</enum><header>Exceptions</header><text>A
limitation on obligations described in clause (i) or (ii) of subparagraph (A)
shall not apply to any obligation under—</text>
<clause id="IDb4b5c155f1194e6dab6683328c2023fc"><enum>(i)</enum><text>section 125 of title 23,
United States Code; or</text>
</clause><clause id="ID76af312407d542738ce658b39efeefa7"><enum>(ii)</enum><text>section 105 of title 23,
United States Code—</text>
<subclause id="ID4d2866a46fe6464c9b0a3530669ed5d2"><enum>(I)</enum><text>for fiscal year 2010,
only in an amount equal to $639,000,000; and</text>
</subclause><subclause id="ID5f6b776264eb4346b5d875553aa399b5"><enum>(II)</enum><text>for the period beginning
on October 1, 2010, and ending on December 31, 2010, only in an amount equal to
$159,750,000.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="IDf15adea5150d46b6a5390f6af3a35f6c"><enum>(5)</enum><header>Calculations for
distribution of obligation limitation</header><text>Upon enactment of an Act
making appropriations for the Department of Transportation for fiscal year 2011
(other than an Act or resolution making continuing appropriations), the
Secretary shall—</text>
<subparagraph id="ID6679262a8b024202a34bf63b7e367ec2"><enum>(A)</enum><text>as necessary for purposes
of making the calculations for the distribution of any obligation limitation
under such Act, annualize the amount of contract authority provided under this
Act for Federal-aid highways and highway safety construction programs;
and</text>
</subparagraph><subparagraph id="ID0f21dcb15d584bf0b5bfc82d9de3db50"><enum>(B)</enum><text>multiply the resulting
distribution of any obligation limitation under such Act by ¼.</text>
</subparagraph></paragraph></subsection><subsection id="IDe458be1afcbf4776845a79d85a17a8e9"><enum>(d)</enum><header>Extension and
flexibility for certain allocated programs</header>
<paragraph id="IDcb4a69ac6880484b912c03f9b3e7b0a0"><enum>(1)</enum><header>Fiscal year
2010</header><text>Notwithstanding any other provision of law, for fiscal year
2010, the portion of the share of funds of a State under subsection (b)(1)
determined by the amount that the State received or was authorized to receive
for fiscal year 2009 to carry out sections 1301, 1302, 1307, 1702, and 1934 of
the SAFETEA–LU (119 Stat. 1198, 1204, 1217, 1256, and 1485), and section
144(f)(1) of title 23, United States Code, shall be—</text>
<subparagraph id="ID2baf523b75f84c2587ec6835fc7defd4"><enum>(A)</enum><text>made available to the
State for programs apportioned under sections 104(b) and 144 of title 23,
United States Code, and in the same proportion for each such program
that—</text>
<clause id="ID43489aefa58b4ccdb42736ac1c1852f4"><enum>(i)</enum><text>the amount apportioned to
the State for that program for fiscal year 2009; bears to</text>
</clause><clause id="ID2201c5d98b9f46398c79f589e5ab750f"><enum>(ii)</enum><text>the amount apportioned
to the State for fiscal year 2009 for all programs apportioned under such
sections of such Code; and</text>
</clause></subparagraph><subparagraph id="IDbb78ef8f8e6a4cbc830c7fda42b8d196"><enum>(B)</enum><text>administered in the same
manner and with the same period of availability as such funding is administered
under programs identified in subparagraph (A), except that no funds may be used
to carry out the project described in section 1307(d)(1) of the SAFETEA–LU (119
Stat. 1217; 122 Stat. 1577).</text>
</subparagraph></paragraph><paragraph id="IDd3d85f28203740aab14b2a8534a374f1"><enum>(2)</enum><header>Fiscal year
2011</header><text>Notwithstanding any other provision of law, for the period
beginning on October 1, 2010, and ending on December 31, 2010, the portion of
the share of funds of a State under subsection (b)(2) determined by ¼ of the
amount that the State received or was authorized to receive for fiscal year
2009 to carry out sections 1301, 1302, 1307, 1702, and 1934 of the SAFETEA–LU
(119 Stat. 1198, 1204, 1217, 1256, and 1485) and section 144(f)(1) of title 23,
United States Code, shall be—</text>
<subparagraph id="IDc866e2ce64e84b23b0322f27a7c25aa5"><enum>(A)</enum><text>made available to the
State for programs apportioned under sections 104(b) and 144 of title 23,
United States Code, and in the same proportion for each such program
that—</text>
<clause id="IDe0343c07163a4d0dbd9a59c4171a7a7a"><enum>(i)</enum><text>the amount apportioned to
the State for that program for fiscal year 2009; bears to</text>
</clause><clause id="ID7bf7ef45aebf4c8e949e4237cd2668ac"><enum>(ii)</enum><text>the amount apportioned
to the State for fiscal year 2009 for all programs apportioned under such
sections of such Code; and</text>
</clause></subparagraph><subparagraph id="IDbb09a50c1aa94de2abdb5b0d9e80bbba"><enum>(B)</enum><text>administered in the same
manner and with the same period of availability as such funding is administered
under programs identified in subparagraph (A), except that no funds may be used
to carry out the project described in section 1307(d)(1) of the SAFETEA–LU (119
Stat. 1217; 122 Stat. 1577).</text>
</subparagraph></paragraph><paragraph id="ID2720c857c36f4ae783409eca4f795baa"><enum>(3)</enum><header>Territories and Puerto
Rico</header>
<subparagraph id="ID507535a7e8ff4814bbcd9c54cddd72b8"><enum>(A)</enum><header>Fiscal year
2010</header><text>Notwithstanding any other provision of law, for fiscal year
2010, the portion of the share of funds of a territory or Puerto Rico under
paragraph (b)(1) determined by the amount that the territory or Puerto Rico
received or was authorized to receive for fiscal year 2009 to carry out section
1934 of SAFETEA–LU (119 Stat. 1485), shall be—</text>
<clause id="ID2b17fd2b5a084072b30d0c658e2fc1a0"><enum>(i)</enum><text>for a territory, made
available and administered in the same manner as funding is made available and
administered under section 215 of title 23, United States Code; and</text>
</clause><clause id="IDa674d404b1ff43d4abebb423589c3bd7"><enum>(ii)</enum><text>for Puerto Rico, made
available and administered in the same manner as funding is made available and
administered under section 165 of title 23, United States Code.</text>
</clause></subparagraph><subparagraph id="ID6a0bef68200c46698541650a4d3ccb5b"><enum>(B)</enum><header>Fiscal year
2011</header><text>Notwithstanding any other provision of law, for the period
beginning on October 1, 2010, and ending on December 31, 2010, the portion of
the share of funds of a territory or Puerto Rico under paragraph (b)(2)
determined by ¼ of the amount that the territory or Puerto Rico received or was
authorized to receive for fiscal year 2009 to carry out section 1934 of
SAFETEA–LU (119 Stat. 1485), shall be—</text>
<clause id="IDb8db0b00106c47ad9e3635af9e9175ce"><enum>(i)</enum><text>for a territory, made
available and administered in the same manner as funding is made available and
administered under section 215 of title 23, United States Code; and</text>
</clause><clause id="ID6709090b5da04bb5af40a4b0858e201c"><enum>(ii)</enum><text>for Puerto Rico, made
available and administered in the same manner as funding is made available and
administered under section 165 of title 23, United States Code.</text>
</clause></subparagraph><subparagraph id="ID67a77ce2b5214220b20d06f3f5070e53"><enum>(C)</enum><header>Territory
defined</header><text>In this paragraph, the term <term>territory</term> means
any of the following territories of the United States: American Samoa, the
Commonwealth of the Northern Mariana Islands, Guam, or the United States Virgin
Islands.</text>
</subparagraph></paragraph><paragraph id="ID46ec18e215374a0c9c0170372daae34f"><enum>(4)</enum><header>Additional
funds</header>
<subparagraph id="IDa586f1d0d82444d8905dba7d770e8689"><enum>(A)</enum><header>In
general</header><text>No additional funds shall be provided for any project or
activity under subsection (c), or paragraph (1) or (2) of this subsection, that
the Secretary of Transportation determines was sufficiently funded before or
during fiscal year 2009 to achieve the authorized purpose of the project or
activity.</text>
</subparagraph><subparagraph id="IDe63ef79aaaba444591482030420e817c"><enum>(B)</enum><header>Reservation and
redistribution of funds</header><text>Funds made available in accordance with
paragraph (1) or (2) of subsection (c) or paragraph (1) or (2) of this
subsection for a project or activity described in subparagraph (A) shall
be—</text>
<clause id="IDca814d52ccea4571a4e3fd7c23874201"><enum>(i)</enum><text>reserved by the Secretary
of Transportation; and</text>
</clause><clause id="ID989012287a7a4e07bfb18200185c7acf"><enum>(ii)</enum><text>distributed to each
State in accordance with paragraph (1) or (2) of subsection (c), or paragraph
(1) or (2) of this subsection, as appropriate, for use in carrying out other
highway projects and activities extended by subsection (c) or this subsection,
in the proportion that—</text>
<subclause id="IDd53958e0e41840eca4d5a8373a152820"><enum>(I)</enum><text>the total amount of funds
made available for fiscal year 2009 for projects and activities described in
subparagraph (A) in the State; bears to</text>
</subclause><subclause id="IDc9775af946e34afb913b190e15aa4aae"><enum>(II)</enum><text>the total amount of
funds made available for fiscal year 2009 for those projects and activities in
all States.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="IDc79aa8e8d7754a09ae399b923244b68b"><enum>(e)</enum><header>Extension of
Authorizations Under Title V of SAFETEA–LU</header>
<paragraph id="IDfbaafcddbb074bbcbc70f29997cb4f4f"><enum>(1)</enum><header>In
general</header><text>The programs authorized under paragraphs (1) through (5)
of section 5101(a) of the SAFETEA–LU (119 Stat. 1779) shall be
continued—</text>
<subparagraph id="IDf3381b30b5904f2eaef43e6ab18cda73"><enum>(A)</enum><text>for fiscal year 2010, at
the funding levels authorized for those programs for fiscal year 2009;
and</text>
</subparagraph><subparagraph id="IDd620e5338d804ae98c8ec7f0788aefff"><enum>(B)</enum><text>for the period beginning
on October 1, 2010, and ending on December 31, 2010, at ¼ the funding levels
authorized for those programs for fiscal year 2009.</text>
</subparagraph></paragraph><paragraph id="ID9cf0fc78b3464ca8924069ff2243b7fa"><enum>(2)</enum><header>Distribution of
funds</header><text>Funds for programs continued under paragraph (1) shall be
distributed to major program areas under those programs in the same proportions
as funds were allocated for those program areas for fiscal year 2009, except
that designations for specific activities shall not be required to be continued
for—</text>
<subparagraph id="ID1906a069afa647dbae309aee64a360cb"><enum>(A)</enum><text>fiscal year 2010;
or</text>
</subparagraph><subparagraph id="ID24e4187233fc4226a524a5e56e5ae0d0"><enum>(B)</enum><text>the period beginning on
October 1, 2010, and ending on December 31, 2010.</text>
</subparagraph></paragraph><paragraph id="IDb3d13c5968414768b20ca65750bfd7e5"><enum>(3)</enum><header>Additional
funds</header>
<subparagraph id="ID174bb6244b8d4bcda50cd5bf9e1e4d61"><enum>(A)</enum><header>In
general</header><text>No additional funds shall be provided for any project or
activity under this subsection that the Secretary of Transportation determines
was sufficiently funded before or during fiscal year 2009 to achieve the
authorized purpose of the project or activity.</text>
</subparagraph><subparagraph id="ID42b923c86bc4469fbc23c10ee764d6e6"><enum>(B)</enum><header>Distribution</header><text>Funds
that would have been made available under paragraph (1) for a project or
activity but for the prohibition under subparagraph (A) shall be distributed in
accordance with paragraph (2).</text>
</subparagraph></paragraph></subsection></section><section id="IDd4949e5befaa40e08ea972a7a03f5f49"><enum>412.</enum><header>Administrative
expenses</header>
<subsection id="IDbd1b6a7f6637414ea4b65ac3bf7f3e5f"><enum>(a)</enum><header>Authorization of
contract authority</header><text>Notwithstanding any other provision of this
Act or any other law, there are authorized to be appropriated from the Highway
Trust Fund (other than the Mass Transit Account), from amounts provided under
section 411, for administrative expenses of the Federal-aid highway
program—</text>
<paragraph id="IDf073e67976004192b9d5d5712f085680"><enum>(1)</enum><text>$422,425,000 for fiscal
year 2010; and</text>
</paragraph><paragraph id="ID137a3a0358174c2d86c4c774cf4a1300"><enum>(2)</enum><text>$105,606,250 for the
period beginning on October 1, 2010, and ending on December 31, 2010.</text>
</paragraph></subsection><subsection id="IDf0e0bc2b95354c559e0343571dfd99fb"><enum>(b)</enum><header>Contract
authority</header><text>Funds authorized to be appropriated by this section
shall be—</text>
<paragraph id="ID8ff2fb19c43a40979a7401e2691755a0"><enum>(1)</enum><text>available for obligation,
and shall be administered, in the same manner as if such funds were apportioned
under chapter 1 of title 23, United States Code; and</text>
</paragraph><paragraph id="ID6f14e6d92f0d4c668a0f0f76493ef6a5"><enum>(2)</enum><text>subject to a limitation
on obligations for Federal-aid highways and highway safety construction
programs, except that such funds shall remain available until expended.</text>
</paragraph></subsection></section><section id="ID0e8ee5f871604f83bafe14cfd6014f14"><enum>413.</enum><header>Rescission of
unobligated balances</header>
<subsection id="IDe1b5b189b7914b87bfbfadaf5aa87bf9"><enum>(a)</enum><header>In
general</header><text>The Secretary of Transportation shall restore funds
rescinded pursuant to section 10212 of the SAFETEA–LU (Public Law 109–59; 119
Stat. 1937) to the States and to the programs from which the funds were
rescinded.</text>
</subsection><subsection id="ID20ec8d3390bc43fea32c67f4b1b21d80"><enum>(b)</enum><header>Administration of
funds</header><text>The restored amounts shall be administered in the same
manner as the funds originally rescinded, except those funds may only be used
with an obligation limitation provided in an Act making appropriations for
Federal-aid highways and highway safety construction programs enacted after
implementation of the rescission under section 10212 of the SAFETEA–LU (Public
Law 109–59; 119 Stat. 1937).</text>
</subsection><subsection id="IDe1eb05e49539476eac33521fa4b80fc7"><enum>(c)</enum><header>Funding</header>
<paragraph id="ID5b24f7370f4743439d92314cfca82a4d"><enum>(1)</enum><header>In
general</header><text>There is authorized to be appropriated from the Highway
Trust Fund (other than the Mass Transit Account) for fiscal year 2010 to carry
out this section an amount equal to the amount of funds rescinded under section
10212 of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1937).</text>
</paragraph><paragraph id="ID8a8c880a523d49f39e5da86c7c2c31ad"><enum>(2)</enum><header>Availability for
obligation</header><text>Funds authorized to be appropriated by this section
shall be—</text>
<subparagraph id="IDc652fbf063174e528d41770b27bfef93"><enum>(A)</enum><text>made available under this
section and available for obligation in the same manner as if the funds were
apportioned under chapter 1 of title 23, United States Code, except that the
funds shall retain the characteristics of the funds originally rescinded;
and</text>
</subparagraph><subparagraph id="ID220306ab1109491bba3b8b52ba9b713b"><enum>(B)</enum><text>subject to a limitation
on obligations for Federal-aid highways and highway safety construction
programs included in an Act making appropriations for fiscal year 2010 or a
portion of the fiscal year.</text>
</subparagraph></paragraph></subsection><subsection id="ID06f6104270db480b838daa40ba83336f"><enum>(d)</enum><header>Limitation</header><text>No
funds authorized to be restored under this section shall be restored after the
end of fiscal year 2010.</text>
</subsection></section><section id="id9D67718FA9F346DCADF0CABF9C011B55"><enum>414.</enum><header>Reconciliation of
funds</header><text display-inline="no-display-inline">The Secretary shall
reduce the amount apportioned or allocated for a program, project, or activity
under this title by amounts apportioned or allocated pursuant to the Continuing
Appropriations Resolution, 2010 (Public Law 111–68).</text>
</section></subtitle><subtitle id="id777707BE4C4E4AC79E1A7074121A303C"><enum>B</enum><header>National Highway Traffic
Safety Administration, Federal Motor Carrier Safety Administration, and
additional programs</header>
<section id="IDf44c251c775347cd9b736db9b36ba731"><enum>421.</enum><header>Extension of National
Highway Traffic Safety Administration Highway Safety Programs</header>
<subsection id="IDe9f912d8d63a4c5eabdb5da7fb719d5c"><enum>(a)</enum><header>Chapter 4 highway
safety programs</header><text>Section 2001(a)(1) of the SAFETEA–LU (119 Stat.
1519) is amended—</text>
<paragraph id="IDb4c87367de88442a97d6052f2588a15b"><enum>(1)</enum><text>by striking
<quote>and</quote>; and</text>
</paragraph><paragraph id="IDede2e440fa0546b78ba34758d0ed892e"><enum>(2)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $235,000,000 for fiscal year
2010, and $58,750,000 for the period beginning on October 1, 2010, and ending
on December 31, 2010.</quote>.</text>
</paragraph></subsection><subsection id="ID837f982a67f441b2916f645b3414e061"><enum>(b)</enum><header>Highway safety research
and development</header><text>Section 2001(a)(2) of the SAFETEA–LU (119 Stat.
1519) is amended—</text>
<paragraph id="ID880aba780d7e45adb95d53201173ad70"><enum>(1)</enum><text>by striking
<quote>and</quote>; and</text>
</paragraph><paragraph id="ID7353d4b8f875459895bc0388fc430b35"><enum>(2)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $107,329,000 for fiscal year
2010, and $27,061,000 for the period beginning on October 1, 2010, and ending
on December 31, 2010.</quote>.</text>
</paragraph></subsection><subsection id="ID4c43761897654eee9d55609288db8fab"><enum>(c)</enum><header>Occupant protection
incentive grants</header>
<paragraph id="IDd057b15886454ed9ba06681378d422ec"><enum>(1)</enum><header>Extension of
program</header><text>Section 405(a) of title 23, United States Code, is
amended—</text>
<subparagraph id="ID1cdd2e91070447958467b27ef0233714"><enum>(A)</enum><text>in paragraph (3), by
striking <quote>6</quote> and inserting <quote>8</quote>; and</text>
</subparagraph><subparagraph id="ID3cf02fe6029a42cba411801f96de4e30"><enum>(B)</enum><text>in paragraph (4)(C), by
striking <quote>fifth and sixth</quote> and inserting <quote>fifth through
eighth</quote>.</text>
</subparagraph></paragraph><paragraph id="IDf4bec3a185a240d392fc8f682388ed6f"><enum>(2)</enum><header>Authorization of
appropriations</header><text>Section 2001(a)(3) of the SAFETEA–LU (119 Stat.
1519) is amended—</text>
<subparagraph id="IDee222299459640e29f4d41745eb6918c"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="ID11cc0aff9b0f419f91b3adf6d4f6f27e"><enum>(B)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $25,000,000 for fiscal year
2010, and $6,250,000 for the period beginning on October 1, 2010, and ending on
December 31, 2010.</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID49e976e05a774233a751f2d3aab4e1ef"><enum>(d)</enum><header>Safety belt performance
grants</header><text>Section 2001(a)(4) of the SAFETEA–LU (119 Stat. 1519) is
amended—</text>
<paragraph id="IDe6c5c9138e9441febe437333d8e9e673"><enum>(1)</enum><text>by striking
<quote>and</quote>; and</text>
</paragraph><paragraph id="ID8bd5dc3ca0854b62a25555394f96440c"><enum>(2)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $124,500,000 for fiscal year
2010, and $31,125,000 for the period beginning on October 1, 2010, and ending
on December 31, 2010.</quote>.</text>
</paragraph></subsection><subsection id="ID07aae83cd82441dcbfb60c6e81279b4a"><enum>(e)</enum><header>State traffic safety
information system improvements</header><text>Section 2001(a)(5) of the
SAFETEA–LU (119 Stat. 1519) is amended—</text>
<paragraph id="IDe5aea73bf09a439daf974fcbd399c5b2"><enum>(1)</enum><text>by striking
<quote>and</quote>; and</text>
</paragraph><paragraph id="ID1f9ca2e333b147aaa8f0b6c44df0fa21"><enum>(2)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $34,500,000 for fiscal year
2010, and $8,625,000 for the period beginning on October 1, 2010, and ending on
December 31, 2010.</quote>.</text>
</paragraph></subsection><subsection id="IDe8e6c381639a48b096fd26f9851bd2ca"><enum>(f)</enum><header>Alcohol-impaired
driving countermeasures incentive grant program</header>
<paragraph id="ID4837ff21a26b46e18f56e708b906149f"><enum>(1)</enum><header>Extension of
program</header><text>Section 410 of title 23, United States Code, is
amended—</text>
<subparagraph id="ID90c3e3c6566646798497f7cbedb072a4"><enum>(A)</enum><text>in subsection (a)(3)(C),
by striking <quote>fifth, sixth, seventh, and eighth</quote> and inserting
<quote>fifth through tenth</quote>; and</text>
</subparagraph><subparagraph id="ID2e54ed35f14b447ba4e9fb202fa1c76b"><enum>(B)</enum><text>in subsection (b)(2)(C),
by striking <quote>2008 and 2009</quote> and inserting <quote>2008, 2009, 2010,
and 2011</quote>.</text>
</subparagraph></paragraph><paragraph id="IDffcaa0bfac704796aeb5b376922f1dd2"><enum>(2)</enum><header>Authorization of
appropriations</header><text>Section 2001(a)(6) of the SAFETEA–LU (119 Stat.
1519) is amended—</text>
<subparagraph id="ID4a68c218ebdf4ba28b95015acaaefb90"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="IDef72ab85060e4526b16d2df93eb5b4db"><enum>(B)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $139,000,000 for fiscal year
2010, and $34,750,000 for the period beginning on October 1, 2010, and ending
on December 31, 2010.</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="ID9e78a5a179e44510be50b7b9476c4121"><enum>(g)</enum><header>National driver
register</header><text>Section 2001(a)(7) of the SAFETEA–LU (119 Stat. 1520) is
amended—</text>
<paragraph id="ID7815bd9b8faa4880b750d30cbbac5f41"><enum>(1)</enum><text>by striking
<quote>and</quote>; and</text>
</paragraph><paragraph id="IDcea861f24eee4b338776c453b532e613"><enum>(2)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $4,078,000 for fiscal year
2010, and $1,029,000 for the period beginning on October 1, 2010, and ending on
December 31, 2010.</quote>.</text>
</paragraph></subsection><subsection id="ID1ad06ef14e42404f80124efa2cd02f6b"><enum>(h)</enum><header>High visibility
enforcement program</header>
<paragraph id="ID42a8424dd96c4083aec3a7f3b5e4a199"><enum>(1)</enum><header>Extension of
program</header><text>Section 2009(a) of the SAFETEA–LU (23 U.S.C. 402 note) is
amended by striking <quote>2009</quote> and inserting
<quote>2011</quote>.</text>
</paragraph><paragraph id="ID6da561d9b65b412da20e82f5c232a7e6"><enum>(2)</enum><header>Authorization of
appropriations</header><text>Section 2001(a)(8) of the SAFETEA–LU (119 Stat.
1520) is amended—</text>
<subparagraph id="ID330837d374da45979580e14479b3bb82"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="ID1a199d2ac19840379261b96e8ab49463"><enum>(B)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $29,000,000 for fiscal year
2010, and $7,250,000 for the period beginning on October 1, 2010, and ending on
December 31, 2010.</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDd48d76b9def24d948cba1c2635928dae"><enum>(i)</enum><header>Motorcyclist
safety</header>
<paragraph id="ID13d93d5484194b89a9a65d0f0f3475ad"><enum>(1)</enum><header>Extension of
program</header><text>Section 2010(d)(1)(B) of the SAFETEA–LU (23 U.S.C. 402
note) is amended by striking <quote>and fourth</quote> and inserting
<quote>fourth, fifth, and sixth</quote>.</text>
</paragraph><paragraph id="IDd14f8998be214b2eba368c5e76cd8b79"><enum>(2)</enum><header>Authorization of
appropriations</header><text>Section 2001(a)(9) of the SAFETEA–LU (119 Stat.
1520) is amended—</text>
<subparagraph id="IDf796551d14b942c4a520b443a1c0205c"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="ID6ef2bab393cc44f5a6b0e6d406923348"><enum>(B)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $7,000,000 for fiscal year
2010, and $1,750,000 for the period beginning on October 1, 2010, and ending on
December 31, 2010.</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDdfbb604b2bc1499695462b470df1e844"><enum>(j)</enum><header>Child safety and child
booster seat safety incentive grants</header>
<paragraph id="ID89b9d2c9747640ad9357afdc8e10db63"><enum>(1)</enum><header>Extension of
program</header><text>Section 2011(c)(2) of the SAFETEA–LU (23 U.S.C. 405 note)
is amended by striking <quote>fourth fiscal year</quote> and inserting
<quote>fourth, fifth, and sixth fiscal years</quote>.</text>
</paragraph><paragraph id="ID190009c5e7ba4505ae0dc4c4fe0c7da1"><enum>(2)</enum><header>Authorization of
appropriations</header><text>Section 2001(a)(10) of the SAFETEA–LU (119 Stat.
1520) is amended—</text>
<subparagraph id="IDddd5e76225c84c279a8f7387474a6fa3"><enum>(A)</enum><text>by striking
<quote>and</quote>; and</text>
</subparagraph><subparagraph id="ID29f44506d9424d36b387cec9120e817d"><enum>(B)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $7,000,000 for fiscal year
2010, and $1,750,000 for the period beginning on October 1, 2010, and ending on
December 31, 2010.</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDd3b7319790db4f59b569e686b467abe4"><enum>(k)</enum><header>Administrative
expenses</header><text>Section 2001(a)(11) of the SAFETEA–LU (119 Stat. 1520)
is amended—</text>
<paragraph id="IDf25c625feffb4dd0b0b6a8a3901e8566"><enum>(1)</enum><text>by striking
<quote>and</quote> the last place it appears; and</text>
</paragraph><paragraph id="ID0734c42f9ef14abb92d0125f4a0ec8d9"><enum>(2)</enum><text>by striking
<quote>2009.</quote> and inserting <quote>2009, $25,047,000 for fiscal year
2010, and $6,332,000 for the period beginning on October 1, 2010, and ending on
December 31, 2010.</quote>.</text>
</paragraph></subsection><subsection id="IDc4b399a0767b4129834f92fdcf1dbec1"><enum>(l)</enum><header>Applicability of title
23</header><text>Section 2001(c) of the SAFETEA–LU (119 Stat. 1520) is amended
by striking <quote>2009</quote> and inserting <quote>2011</quote>.</text>
</subsection><subsection id="IDbf89a561cca540e09365e56d45061dfc"><enum>(m)</enum><header>Drug-impaired driving
enforcement</header><text>Section 2013(f) of the SAFETEA–LU (23 U.S.C. 403
note) is amended by striking <quote>2009</quote> and inserting
<quote>2011</quote>.</text>
</subsection><subsection id="ID4dec7cc6a4fc4410a3c1d1621016e1a5"><enum>(n)</enum><header>Older driver safety;
law enforcement training</header><text>Section 2017 of the SAFETEA–LU is
amended—</text>
<paragraph id="ID54f1d68d471a4265b4f3c989f218f8d0"><enum>(1)</enum><text>in subsection (a)(1) (119
Stat. 1541), by striking <quote>2009</quote> and inserting <quote>2011</quote>;
and</text>
</paragraph><paragraph id="ID1845468f1e0f4f16b437c7bdacae32e9"><enum>(2)</enum><text>in subsection (b)(2) (23
U.S.C. 402 note), by striking <quote>2009</quote> and inserting
<quote>2011</quote>.</text>
</paragraph></subsection></section><section id="IDa3d833b7e57540b88c01e36146c011ad"><enum>422.</enum><header>Extension of Federal
Motor Carrier Safety Administration Programs</header>
<subsection id="ID455443c1da094119b3361d1a818e52e8"><enum>(a)</enum><header>Motor carrier safety
grants</header><text>Section 31104(a) of title 49, United States Code, is
amended—</text>
<paragraph id="ID80317e5ff8dd47d8b936ec5e1cca4ad8"><enum>(1)</enum><text>in paragraph (4), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDaa178c945d1c4e978a3b737b4310da23"><enum>(2)</enum><text>in paragraph (5), by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="IDc69b9a983dfb43028ded53581ca2808b"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9131E57B18EC4FB998A73EA0EEFB1BE6" reported-display-style="italic" style="OLC">
<paragraph id="ID603952c843624dbbab0cebb4c454d07e"><enum>(6)</enum><text>$209,000,000 for fiscal
year 2010; and</text>
</paragraph><paragraph id="ID7bea3f623c75466fb54105b847d6213d"><enum>(7)</enum><text>$52,679,000 for the
period beginning on October 1, 2010, and ending on December 31,
2010.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDef1f8a5096054d12b5b107066fdac67b"><enum>(b)</enum><header>Administrative
expenses</header><text>Section 31104(i)(1) of title 49, United States Code, is
amended—</text>
<paragraph id="IDb5ae184458114f4a881da75ce5807292"><enum>(1)</enum><text>in subparagraph (D), by
striking <quote>and</quote>;</text>
</paragraph><paragraph id="ID92b9cebaafaf4d4680edd77f13809fa3"><enum>(2)</enum><text>in subparagraph (E), by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="ID64e051b21f9942c4aff6dc1dd8a20123"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8A526F94783A454C87F4B2D878D8594E" reported-display-style="italic" style="OLC">
<subparagraph id="ID2208f2ee0aa14f7db5ecda100a970fe4"><enum>(F)</enum><text>“(F) $239,828,000 for
fiscal year 2010; and</text>
</subparagraph><subparagraph id="IDd18c1df442bf4eee9ade57d325420abf"><enum>(G)</enum><text>“(G) $61,036,000 for the
period beginning on October 1, 2010, and ending on December 31,
2010.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDff439d21222140dfa61488fc514bd85a"><enum>(c)</enum><header>Grant
programs</header><text>Section 4101(c) of the SAFETEA–LU (119 Stat. 1715) is
amended—</text>
<paragraph id="ID424dc7a48cab4d98b5372c5b276f6beb"><enum>(1)</enum><text>in paragraph (1), by
striking <quote>2009.</quote> and inserting <quote>2009, and $25,000,000 for
fiscal year 2010, and $6,301,000 for the period beginning on October 1, 2010,
and ending on December 31, 2010.</quote>;</text>
</paragraph><paragraph id="ID1e670a6713b34b0ba14017aa4152891f"><enum>(2)</enum><text>in paragraph (2), by
striking <quote>2009.</quote> and inserting <quote>2009, $32,000,000 for fiscal
year 2010, and $8,066,000 for the period beginning on October 1, 2010, and
ending on December 31, 2010.</quote>;</text>
</paragraph><paragraph id="ID28df73e0b4f84c3fb42dab85bcb6304d"><enum>(3)</enum><text>in paragraph (3), by
striking <quote>2009.</quote> and inserting <quote>2009, $5,000,000 for fiscal
year 2010, and $1,260,000 for the period beginning on October 1, 2010, and
ending on December 31, 2010.</quote>;</text>
</paragraph><paragraph id="ID3d9b43c6eec84c478121abc5506904fe"><enum>(4)</enum><text>in paragraph (4), by
striking <quote>2009.</quote> and inserting <quote>2009, $25,000,000 for fiscal
year 2010, and $6,301,000 for the period beginning on October 1, 2010, and
ending on December 31, 2010.</quote>; and</text>
</paragraph><paragraph id="ID4567f4b4150e436a942fc49c25af4bc3"><enum>(5)</enum><text>in paragraph (5), by
striking <quote>2009.</quote> and inserting <quote>2009, $3,000,000 for fiscal
year 2010, and $756,000 for the period beginning on October 1, 2010, and ending
on December 31, 2010.</quote>.</text>
</paragraph></subsection><subsection id="ID61a60f1b67ea41dfb425463aa0ee53f6"><enum>(d)</enum><header>High-priority
activities</header><text>Section 31104(k) of title 49, United States Code, is
amended by striking <quote>2009</quote> in paragraph (2) and inserting
<quote>2009, $15,000,000 for fiscal year 2010, and $3,781,000 for the period
beginning on October 1, 2010, and ending on December 31, 2010</quote>.</text>
</subsection><subsection id="IDd399b813b6164226a2f014a4f3828aba"><enum>(e)</enum><header>New entrant
audits</header><text>Section 31144(g)(5)(B) of title 49, United States Code, is
amended by inserting <quote>(and up to $7,310,000 for the period beginning on
October 1, 2010, and ending on December 31, 2010)</quote> after <quote>fiscal
year</quote>.</text>
</subsection><subsection id="ID71bae61efd9f4c0b94e351dbfce2a844"><enum>(f)</enum><header>Commercial driver’s
license information system modernization</header><text>Section 4123(d) of the
SAFETEA–LU (119 Stat. 1736) is amended—</text>
<paragraph id="IDdcdf9f1499d444c789ba23903afbec13"><enum>(1)</enum><text>in paragraph (3), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDe9c6988e05aa4b2b9fcf3381c8ab30a9"><enum>(2)</enum><text>in paragraph (4), by
striking the period at the end and inserting a semicolon; and</text>
</paragraph><paragraph id="ID54afde7c091f4d9999d5a2f85d8c4ee9"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id50EFCB4C260E49BB8F81423230991D62" reported-display-style="italic" style="OLC">
<paragraph id="IDd484cff8242242798ca5eb2684403b90"><enum>(5)</enum><text>$8,000,000 for fiscal
year 2010; and</text>
</paragraph><paragraph id="IDa61d49d2d0254658b87956a587d9ae9e"><enum>(6)</enum><text>$2,016,000 for the period
beginning on October 1, 2010, and ending on December 31,
2010.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDad37aa2410394642adf2d922f08961c8"><enum>(g)</enum><header>Outreach and
education</header><text>Section 4127(e) of the SAFETEA–LU (119 Stat. 1741) is
amended by striking <quote>and 2009</quote> and inserting <quote>2009, and
2010, and $252,000 to the Federal Motor Carrier Safety Administration, and
$756,000 to the National Highway Traffic Safety Administration, for the period
beginning on October 1, 2010, and ending on December 31, 2010,</quote>.</text>
</subsection><subsection id="ID662cfce34b37438d925e92492cff20d9"><enum>(h)</enum><header>Grant program for
commercial motor vehicle operators</header><text>Section 4134(c) of the
SAFETEA–LU (119 Stat. 1744) is amended by striking <quote>2009</quote> and
inserting <quote>2009, 2010, and $252,000 for the period beginning on October
1, 2010, and ending on December 31, 2010,</quote>.</text>
</subsection><subsection id="IDc71a9060cbc448e1bf7d06226c265b64"><enum>(i)</enum><header>Motor carrier safety
advisory committee</header><text>Section 4144(d) of the SAFETEA–LU (1119 Stat.
1748) is amended by striking <quote>September 30, 2010</quote> and inserting
<quote>December 31, 2010</quote>.</text>
</subsection><subsection id="ID601912b3ffcc405ba68aa33bc75aa82a"><enum>(j)</enum><header>Working group for
development of practices and procedures To enhance Federal-State
relations</header><text>Section 4213(d) of the SAFETEA–LU (49 U.S.C. 14710
note) is amended by striking <quote>September 30, 2009</quote> and inserting
<quote>December 31, 2010</quote>.</text>
</subsection></section><section id="IDd9e56fac58244746a0a0171d08a7f7b7"><enum>423.</enum><header>Additional
programs</header>
<subsection id="ID44c5cd159aa542fd8553168ca0493a6d"><enum>(a)</enum><header>Hazardous materials
research projects</header><text>Section 7131(c) of the SAFETEA–LU (119 Stat.
1910) is amended by striking <quote>through 2009</quote> and inserting
<quote>through 2010, and $315,000 for the period beginning on October 1, 2010,
and ending on December 31, 2010,</quote>.</text>
</subsection><subsection id="ID00af6e9a8ed5428e99ef6d5158490945"><enum>(b)</enum><header>Dingell-Johnson Sport
Fish Restoration Act</header><text>Section 4 of the Dingell-Johnson Sport Fish
Restoration Act (16 U.S.C. 777c) is amended—</text>
<paragraph id="ID5edb3696788d47298db3c561bfa772b2"><enum>(1)</enum><text>in subsection (a), in the
matter preceding paragraph (1), by striking <quote>2009,</quote> and inserting
<quote>2010 and for the period beginning on October 1, 2010, and ending on
December 31, 2010,</quote>; and</text>
</paragraph><paragraph id="IDd60dd905ca8d4b158ac8f5eeaf773990"><enum>(2)</enum><text>in subsection (b)(1)(A),
by striking <quote>2010,</quote> and inserting <quote>and for the period
beginning on October 1, 2010, and ending on December 31, 2010,</quote>.</text>
</paragraph></subsection></section></subtitle><subtitle id="idF9C5193BBE48439197EA0F3C6178D981"><enum>C</enum><header>Public transportation
programs</header>
<section id="ID9fe3b6b61d2d497bac393363187b01a3"><enum>431.</enum><header>Allocation of funds
for planning programs</header><text display-inline="no-display-inline">Section
5305(g) of title 49, United States Code, is amended by striking
<quote>2009</quote> and inserting <quote>2010, and for the period beginning
October 1, 2010, and ending December 31, 2010,</quote>.</text>
</section><section id="ID45aaf77df7a7475c92686fe0d6d17e8b"><enum>432.</enum><header>Special rule for
urbanized area formula grants</header><text display-inline="no-display-inline">Section 5307(b)(2) of title 49, United
States Code, is amended—</text>
<paragraph id="ID0100a4d01cb94f95bf12bbcc7b8b515e"><enum>(1)</enum><text>in the paragraph heading,
by striking <quote><header-in-text level="subparagraph" style="OLC">2009</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">2010, and the period beginning October 1, 2010,
and ending December 31, 2010</header-in-text></quote>;</text>
</paragraph><paragraph id="ID781b5847ca4742f8946f086567b03c24"><enum>(2)</enum><text>in subparagraph (A), by
striking <quote>2009,</quote> and inserting <quote>2010, and the period
beginning October 1, 2010, and ending December 31, 2010,</quote>; and</text>
</paragraph><paragraph id="IDa018296fa2664b31a73a61ea31b61e55"><enum>(3)</enum><text>in subparagraph
(E)—</text>
<subparagraph id="IDbfda730c7fc34fa38f0c62cc628d2195"><enum>(A)</enum><text>in the subparagraph
heading, by striking <quote><header-in-text level="subparagraph" style="OLC">and 2009</header-in-text></quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">through 2010 and during
the period beginning october 1, 2010, and ending december 31,
2010</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="ID30d6be31013e4fbbb7d21d85d399faae"><enum>(B)</enum><text>in the matter preceding
clause (i), by striking <quote>and 2009</quote> and inserting <quote>through
2010, and during the period beginning October 1, 2010, and ending December 31,
2010,</quote>.</text>
</subparagraph></paragraph></section><section id="IDdcb4b1c5345545e3a167134c23e70d5a"><enum>433.</enum><header>Allocating amounts for
capital investment grants</header><text display-inline="no-display-inline">Section 5309(m) of title 49, United States
Code, is amended—</text>
<paragraph id="IDfae48b6fdfce434fab2c6c6cedc031e1"><enum>(1)</enum><text>in paragraph (2)—</text>
<subparagraph id="IDe5bd0c0a56e94ccc928924bef08fbf3b"><enum>(A)</enum><text>in the heading, by
striking <quote><header-in-text level="paragraph" style="OLC">2009</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">2010 and October 1, 2010, through December 31,
2010</header-in-text></quote>;</text>
</subparagraph><subparagraph id="ID8e59d08bd09840d6a7525b177261ffae"><enum>(B)</enum><text>in the matter preceding
subparagraph (A), by striking <quote>2009</quote> and inserting <quote>2010,
and during the period beginning October 1, 2010, and ending December 31,
2010,</quote>; and</text>
</subparagraph><subparagraph id="ID83150867770048b38fdc3daeb83a2901"><enum>(C)</enum><text>in subparagraph (A)(i),
by striking <quote>2009</quote> and inserting <quote>2010, and $50,000,000 for
the period beginning October 1, 2010, and ending December 31,
2010,</quote>;</text>
</subparagraph></paragraph><paragraph id="ID5cff36cda72c45278b00ccaf5a22f67f"><enum>(2)</enum><text>in paragraph (6)—</text>
<subparagraph id="ID21412e44eb5c4e3fa1475a7eec2e47c2"><enum>(A)</enum><text>in subparagraph (B), by
striking <quote>2009</quote> and inserting <quote>2010, and $3,750,000 shall be
available for the period beginning October 1, 2010, and ending December 31,
2010,</quote>; and</text>
</subparagraph><subparagraph id="ID984f0aae13244f0db7b01cb999725008"><enum>(B)</enum><text>in subparagraph (C), by
striking <quote>2009</quote> and inserting <quote>2010, and $1,250,000 shall be
available for the period beginning October 1, 2010 and ending December 31,
2010,</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID6edd9c5229304da39cd341a396060fc4"><enum>(3)</enum><text>in paragraph (7)—</text>
<subparagraph id="IDc5efe87ad9974f2aa1c5489bbd02cc2a"><enum>(A)</enum><text>in subparagraph
(A)—</text>
<clause id="IDb1788db9325e4ec7834897771aeb5a4f"><enum>(i)</enum><text>by redesignating clauses
(i) through (viii) as subclauses (I) through (VIII), respectively;</text>
</clause><clause id="ID2879c751d7a54e09a5443b4d3ae31011"><enum>(ii)</enum><text>in the matter preceding
subclause (I), as so redesignated, by striking <quote>$10,000,000</quote> and
all that follows through <quote>2009</quote> and inserting the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id058D98F9714340C3A30DBBD3B9519163" reported-display-style="italic" style="OLC">
<clause id="IDdb69eb9ed19b44228fc3754cfd2fd5b7"><enum>(i)</enum><header>Fiscal years 2006
through 2010</header><text>$10,000,000 shall be available in each of fiscal
years 2006 through 2010</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="ID0aaae5f4b483495b873826a15348ae82"><enum>(iii)</enum><text>by inserting after
subclause (VIII), as so redesignated, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id1E1ED35D735D4C4FBF70A1ACF9DB0206" reported-display-style="italic" style="OLC">
<clause id="ID590550ce295e41b39f427818254ddb28"><enum>(ii)</enum><header>Special rule for
october 1, 2010, through december 31, 2010</header><text>$2,500,000 shall be
available in the period beginning October 1, 2010, and ending December 31,
2010, for ferry boats or ferry terminal facilities. The Secretary shall set
aside a portion of such amount in accordance with clause (i), except that the
Secretary shall set aside 25 percent of each dollar amount specified in
subclauses (I) through
(VIII).”;</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="IDe674ea85d943499e95371550504fc260"><enum>(B)</enum><text>in subparagraph (B), by
inserting after <quote>2009.</quote> the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idAAE7F87D160A42E3B15DF1DD301A4604" reported-display-style="italic" style="OLC">
<clause id="ID1f1ed6b015a848708302afc31ed9b041"><enum>(v)</enum><text>$13,500,000 for fiscal
year 2010.</text>
</clause><clause id="ID18611e1033aa4c6a972fcbc3f147cb75"><enum>(vi)</enum><text>$3,375,000 for the
period beginning October 1, 2010, and ending December 31,
2010.</text>
</clause><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="ID83052f6f246840068614ae4878dad755"><enum>(C)</enum><text>in subparagraph (C), by
inserting <quote>, and during the period beginning October 1, 2010, and ending
December 31, 2010,</quote> after <quote>fiscal year</quote>;</text>
</subparagraph><subparagraph id="IDe5678d35a21f4cfa95de99f65ff8dc33"><enum>(D)</enum><text>in subparagraph (D), by
inserting <quote>, and not less than $8,750,000 shall be available for the
period beginning October 1, 2010, and ending December 31, 2010,</quote> after
<quote>year</quote>; and</text>
</subparagraph><subparagraph id="ID25880ce4d4214273aec9639b488efdeb"><enum>(E)</enum><text>in subparagraph (E), by
inserting <quote>, and $750,000 shall be available for the period beginning
October 1, 2010, and ending December 31, 2010,</quote> after
<quote>year</quote>.</text>
</subparagraph></paragraph></section><section id="ID1173524012b34e928ff83fea21957f36"><enum>434.</enum><header>Apportionment of
formula grants for other than urbanized areas</header><text display-inline="no-display-inline">Section 5311(c)(1) of title 49, United
States Code, is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4AAA9AB691C14BCA97EFE7C5D7AE8652" reported-display-style="italic" style="OLC">
<subparagraph id="ID1d15959023364e78b68216157a5a260f"><enum>(E)</enum><text>$15,000,000 for fiscal
year 2010.</text>
</subparagraph><subparagraph id="IDd623e9046a224a699001ab9d33d414c3"><enum>(F)</enum><text>$3,750,000 for the period
beginning October 1, 2010, and ending December 31,
2010.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDa28495d1b64d4b078297b4ddf4b03bb1"><enum>435.</enum><header>Apportionment based on
fixed guideway factors</header><text display-inline="no-display-inline">Section
5337 of title 49, United States Code, is amended—</text>
<paragraph id="ID6f5f5b1864c64c12b8bd765263c3eea3"><enum>(1)</enum><text>in subsection (a), in the
matter preceding paragraph (1), by striking <quote>2009</quote> and inserting
<quote>2010</quote>; and</text>
</paragraph><paragraph id="ID7efee99ba048409985cd8372c83d4237"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id968801B8A7B0419293850552C1218F23" reported-display-style="italic" style="OLC">
<subsection id="IDaeff0b6c14744b88b133b5e7bfea6c75"><enum>(g)</enum><header>Special rule for
October 1, 2010, through December 31, 2010</header><text>The Secretary shall
apportion amounts made available for fixed guideway modernization under section
5309 for the period beginning October 1, 2010, and ending December 31, 2010, in
accordance with subsection (a), except that the Secretary shall apportion 25
percent of each dollar amount specified in subsection
(a).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID8980e883e7914bcebafdcf8c0268d695"><enum>436.</enum><header>Authorizations for
public transportation</header>
<subsection id="ID82d82dc309dc44719de3d9f9afffafbc"><enum>(a)</enum><header>Formula and bus
grants</header><text>Section 5338(b) of title 49, United States Code, is
amended—</text>
<paragraph id="ID0b10977cc93a4b1fbb7a78a849170a8b"><enum>(1)</enum><text>in paragraph (1)—</text>
<subparagraph id="ID6c154d833b6342ee9ad2a5a698417667"><enum>(A)</enum><text>in subparagraph (C), by
striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="IDaebfaac80f50450bb7c5fc8dec3c7350"><enum>(B)</enum><text>in subparagraph (D), by
striking the period at the end and inserting a semicolon; and</text>
</subparagraph><subparagraph id="ID276379710a064bf9a56622a94e0ff56f"><enum>(C)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id419FF3C628BF455C8B844C8A08BD28C3" reported-display-style="italic" style="OLC">
<subparagraph id="IDa1a07d9736ea472f8d4d6d0f347c4a08"><enum>(E)</enum><text>$8,360,565,000 for fiscal
year 2010; and</text>
</subparagraph><subparagraph id="IDfc6ca5708a894588ae3a2b4078193a87"><enum>(F)</enum><text>$2,090,141,250 for the
period beginning October 1, 2010, and ending December 31,
2010.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="ID8e8367245b344cbea1444fdd3ee57cde"><enum>(2)</enum><text>in paragraph (2)—</text>
<subparagraph id="IDc22022ac023244ac9e479219399cffe8"><enum>(A)</enum><text>in subparagraph (A), by
striking <quote>and $113,500,000 for fiscal year 2009</quote> and inserting
<quote>$113,500,000 for each of fiscal years 2009 and 2010, and $28,375,000 for
the period beginning October 1, 2010, and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="IDebc15c0d6558427bbd4d60785aba5cf4"><enum>(B)</enum><text>in subparagraph (B), by
striking <quote>and $4,160,365,000 for fiscal year 2009</quote> and inserting
<quote>$4,160,365,000 for each of fiscal years 2009 and 2010, and
$1,040,091,250 for the period beginning October 1, 2010, and ending December
31, 2010,</quote>;</text>
</subparagraph><subparagraph id="IDdefd80482db84397a393e0b305bb4c49"><enum>(C)</enum><text>in subparagraph (C), by
striking <quote>and $51,500,000 for fiscal year 2009</quote> and inserting
<quote>$51,500,000 for each of fiscal years 2009 and 2010, and $12,875,000 for
the period beginning October 1, 2010, and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="ID10dba3a24b204692ba4ae397baed48df"><enum>(D)</enum><text>in subparagraph (D), by
striking <quote>and $1,666,500,000 for fiscal year 2009</quote> and inserting
<quote>$1,666,500,000 for each of fiscal years 2009 and 2010, and $416,625,000
for the period beginning October 1, 2010 and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="IDc72da7a96ee446b8b266fc9b19202845"><enum>(E)</enum><text>in subparagraph (E), by
striking <quote>and $984,000,000 for fiscal year 2009</quote> and inserting
<quote>$984,000,000 for each of fiscal years 2009 and 2010, and $246,000,000
for the period beginning October 1, 2010 and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="ID715eab6a777b4aa6a22ae811849606c9"><enum>(F)</enum><text>in subparagraph (F), by
striking <quote>and $133,500,000 for fiscal year 2009</quote> and inserting
<quote>$133,500,000 for each of fiscal years 2009 and 2010, and $33,375,000 for
the period beginning October 1, 2010 and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="IDc42610e13bb9458cb695a598881f95bf"><enum>(G)</enum><text>in subparagraph (G), by
striking <quote>and $465,000,000 for fiscal year 2009</quote> and inserting
<quote>$465,000,000 for each of fiscal years 2009 and 2010, and $116,250,000
for the period beginning October 1, 2010 and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="IDbc3df5a5091d4850b1b475f628cd3d51"><enum>(H)</enum><text>in subparagraph (H), by
striking <quote>and $164,500,000 for fiscal year 2009</quote> and inserting
<quote>$164,500,000 for each of fiscal years 2009 and 2010, and $41,125,000 for
the period beginning October 1, 2010 and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="ID015317e92e5a4867a62052ee2a9c652e"><enum>(I)</enum><text>in subparagraph (I), by
striking <quote>and $92,500,000 for fiscal year 2009</quote> and inserting
<quote>$92,500,000 for each of fiscal years 2009 and 2010, and $23,125,000 for
the period beginning October 1, 2010 and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="ID4d280e1a1f524a2984db285346f530a9"><enum>(J)</enum><text>in subparagraph (J), by
striking <quote>and $26,900,000 for fiscal year 2009</quote> and inserting
<quote>$26,900,000 for each of fiscal years 2009 and 2010, and $6,725,000 for
the period beginning October 1, 2010 and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="ID93ba1a7926be4d72b449887c1704f6f8"><enum>(K)</enum><text>in subparagraph (K), by
striking <quote>and $3,500,000 for fiscal year 2009</quote> and inserting
<quote>$3,500,000 for each of fiscal years 2009 and 2010, and $875,000 for the
period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text>
</subparagraph><subparagraph id="ID0b511c77f100464083901346f393d448"><enum>(L)</enum><text>in subparagraph (L), by
striking <quote>and $25,000,000 for fiscal year 2009</quote> and inserting
<quote>$25,000,000 for each of fiscal years 2009 and 2010, and $6,250,000 for
the period beginning October 1, 2010 and ending December 31,
2010,</quote>;</text>
</subparagraph><subparagraph id="IDfecfb6bfd24045c1864db57cd0567bbc"><enum>(M)</enum><text>in subparagraph (M), by
striking <quote>and $465,000,000 for fiscal year 2009</quote> and inserting
<quote>$465,000,000 for each of fiscal years 2009 and 2010, and $116,250,000
for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;
and</text>
</subparagraph><subparagraph id="IDe4c09e07572848d2bc254ed355c652ec"><enum>(N)</enum><text>in subparagraph (N), by
striking <quote>and $8,800,000 for fiscal year 2009</quote> and inserting
<quote>$8,800,000 for each of fiscal years 2009 and 2010, and $2,200,000 for
the period beginning October 1, 2010 and ending December 31,
2010,</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="IDed46e66428bc47768fba92b57efb685e"><enum>(b)</enum><header>Capital investment
grants</header><text>Section 5338(c) of title 49, United States Code, is
amended—</text>
<paragraph id="IDefce14ee011e4b478267cbffe2dde260"><enum>(1)</enum><text>in paragraph (3), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDf2798d1a811b4c66a6e4c6ca470e018c"><enum>(2)</enum><text>in paragraph (4), by
striking the period at the end and inserting a semicolon; and</text>
</paragraph><paragraph id="IDa714273593c5488d9a04987bde961bad"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE9DB1E8C9F9E4E84B10C87F76B8DBED0" reported-display-style="italic" style="OLC">
<paragraph id="ID39a2a6411bc444729fd41a24c28b43cc"><enum>(5)</enum><text>$2,000,000,000 for fiscal
year 2010; and</text>
</paragraph><paragraph id="IDae61d90871a24efca4718ebc915bc17a"><enum>(6)</enum><text>$500,000,000 for the
period of October 1, 2010 through December 31,
2010.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID34e789b1c110453aa0858e82563d4746"><enum>(c)</enum><header>Research and university
research centers</header><text>Section 5338(d) of title 49, United States Code,
is amended—</text>
<paragraph id="IDcfcd8a16d7b5412ba9881570c748bd4c"><enum>(1)</enum><text>in paragraph (1), in the
matter preceding subparagraph (A), by striking <quote>and $69,750,000 for
fiscal year 2009</quote> and inserting <quote>$69,750,000 for each of fiscal
years 2009 and 2010, and $17,437,500 for the period beginning October 1, 2010,
and ending December 31, 2010</quote>; and</text>
</paragraph><paragraph id="IDb6e79d9f03714effbb767b2cbf4f4281"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id059A46BF45424DBB8FD062B583CBA115" reported-display-style="italic" style="OLC">
<paragraph id="ID981d8e8a53f84c4d8a1db0e51bd9e25b"><enum>(3)</enum><header>Additional
authorizations</header>
<subparagraph id="ID978432f94d55461a88a04d99700055e0"><enum>(A)</enum><header>In general</header>
<clause id="ID00ab0cfea7af47d59968496c40102e78"><enum>(i)</enum><header>Fiscal year
2010</header><text>Of amounts authorized to be appropriated for fiscal year
2010 under paragraph (1), the Secretary shall allocate for each of the
activities and projects described in subparagraphs (A) through (F) of paragraph
(1) an amount equal to the amount allocated for fiscal year 2009 under each
such subparagraph.</text>
</clause><clause id="ID30191d28f5404076a7d1f618ee3e26a1"><enum>(ii)</enum><header>October 1, 2010
through december 31, 2010</header><text>Of amounts authorized to be
appropriated for the period beginning October 1, 2010, through December 31,
2010, under paragraph (1), the Secretary shall allocate for each of the
activities and projects described in subparagraphs (A) through (F) of paragraph
(1) an amount equal to 25 percent of the amount allocated for fiscal year 2009
under each such subparagraph.</text>
</clause></subparagraph><subparagraph id="ID6e37363035924d2684a687f4786bf097"><enum>(B)</enum><header>University centers
program</header>
<clause id="ID7df8de968d1648f6ba842a3dc70e86ad"><enum>(i)</enum><header>Fiscal year
2010</header><text>Of the amounts allocated under subparagraph (A)(i) for the
university centers program under section 5506 for fiscal year 2010, the
Secretary shall allocate for each program described in clauses (i) through
(iii) and (v) through (viii) of paragraph (2)(A) an amount equal to the amount
allocated for fiscal year 2009 under each such clause.</text>
</clause><clause id="ID1a99dad4d6d64197a47cc50a256be0ef"><enum>(ii)</enum><header>October 1, 2010
through december 31, 2010</header><text>Of the amounts allocated under
subparagraph (A)(i) for the university centers program under section 5506 for
the period beginning October 1, 2010, and ending December 31, 2010, the
Secretary shall allocate for each program described in clauses (i) through
(iii) and (v) through (viii) of paragraph (2)(A) an amount equal to 25 percent
of the amount allocated for fiscal year 2009 under each such clause.</text>
</clause><clause id="ID984cf35a4f9644ba8e02bd737acaaf2f"><enum>(iii)</enum><header>Funding</header><text>If
the Secretary determines that a project or activity described in paragraph (2)
received sufficient funds in fiscal year 2009, or a previous fiscal year, to
carry out the purpose for which the project or activity was authorized, the
Secretary may not allocate any amounts under clause (i) or (ii) for the project
or activity for fiscal year 2010, or any subsequent fiscal
year.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID2dcf404e9c3e4476b9ec6f8b45d6b7b9"><enum>(d)</enum><header>Administration</header><text>Section
5338(e) of title 49, United States Code, is amended—</text>
<paragraph id="ID98d9c8871e134aa59444cfdb61930881"><enum>(1)</enum><text>in paragraph (3), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDcf0907752aa64da395f137da19d7c4d6"><enum>(2)</enum><text>in paragraph (4), by
striking the period at the end and inserting a semicolon; and</text>
</paragraph><paragraph id="IDbf832dd0efcc4b38b4073627847a1383"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id28D053BF930341BD980C6FBDF63703E7" reported-display-style="italic" style="OLC">
<paragraph id="IDcc01b74fca7a42ecaa262b574fcf1661"><enum>(5)</enum><text>$98,911,000 for fiscal
year 2010; and</text>
</paragraph><paragraph id="ID9f791a49807f434c8de4a6fbf97ba7c7"><enum>(6)</enum><text>$24,727,750 for the
period beginning October 1, 2010, and ending December 31,
2010.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="IDa12e7064edf74afbb538cf1f4cdf40f3"><enum>437.</enum><header>Amendments to
SAFETEA–LU</header>
<subsection id="ID77b2e037c8704fc4a66e2a1e25323aed"><enum>(a)</enum><header>Contracted paratransit
pilot</header><text>Section 3009(i)(1) of the SAFETEA–LU (Public Law 109–59;
119 Stat. 1572) is amended by striking <quote>2009</quote> and inserting
<quote>2010, and for the period beginning October 1, 2010, and ending December
31, 2010</quote>.</text>
</subsection><subsection id="ID90cb0b81b00540b68e9199e1f98cebc3"><enum>(b)</enum><header>Public-private
partnership pilot program</header><text>Section 3011 of the SAFETEA–LU (49
U.S.C. 5309 note) is amended—</text>
<paragraph id="ID5305de3b90d54901a159afc150271ac4"><enum>(1)</enum><text>in subsection (c)(5), by
striking <quote>2009</quote> and inserting <quote>2010 and the period beginning
October 1, 2010, and ending December 31, 2010</quote>; and</text>
</paragraph><paragraph id="ID8e7c8066245b4e09a4e74a732cdd43b8"><enum>(2)</enum><text>in subsection (d), by
striking <quote>2009</quote> and inserting <quote>2010, and for the period
beginning October 1, 2010, and ending December 31, 2010</quote>.</text>
</paragraph></subsection><subsection id="IDfd6573d484924afcb1a18f3fd66c801b"><enum>(c)</enum><header>Elderly individuals and
individuals with disabilities pilot program</header><text>Section 3012(b)(8) of
the SAFETEA–LU (49 U.S.C. 5310 note) is amended by striking <quote>September
30, 2009</quote> and inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="IDfe4b90ae48654c779a3fdf80ae76e7b4"><enum>(d)</enum><header>Obligation
ceiling</header><text>Section 3040 of the SAFETEA–LU (Public Law 109–59; 119
Stat. 1639) is amended—</text>
<paragraph id="ID63fca524034a4f1396bd5fcdb194912b"><enum>(1)</enum><text>in paragraph (4), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="ID57a39bafa1c141fc880998b9318416ae"><enum>(2)</enum><text>in paragraph (5), by
striking the period at the end and inserting a semicolon; and</text>
</paragraph><paragraph id="ID3c4df272604f40f7b59d2345d3bd9a67"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id28A0D32DF4C34E4788FCC9CBC2578365" reported-display-style="italic" style="OLC">
<paragraph id="IDa9ab0798c56b4c50903099bb91c0e14b"><enum>(6)</enum><text>$10,507,752,000 for
fiscal year 2010, of which not more than $8,360,565,000 shall be from the Mass
Transit Account; and</text>
</paragraph><paragraph id="IDf7750884ebd44f538b3d009a22c36473"><enum>(7)</enum><text>$2,626,938,000 for the
period beginning October 1, 2010, and ending December 31, 2010, of which not
more than $2,090,141,250 shall be from the Mass Transit
Account.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID511ce9a12166494089e3b5cce54e25da"><enum>(e)</enum><header>Project authorizations
for new fixed guideway capital projects</header><text>Section 3043 of the
SAFETEA–LU (Public Law 109–59; 119 Stat. 1640) is amended—</text>
<paragraph id="ID0f689f6acbb241e49e2b22b6b9964176"><enum>(1)</enum><text>in subsection (b), in the
matter preceding paragraph (1), by striking <quote>2009</quote> and inserting
<quote>2010, and for the period beginning October 1, 2010, and ending December
31, 2010,</quote>; and</text>
</paragraph><paragraph id="ID94d1950860564170a50849a657b2922b"><enum>(2)</enum><text>in subsection (c), in the
matter preceding paragraph (1), by striking <quote>2009</quote> and inserting
<quote>2010, and for the period beginning October 1, 2010, and ending December
31, 2010,</quote>.</text>
</paragraph></subsection><subsection id="IDe65ade7e1d45421f9ace58f5f096569f"><enum>(f)</enum><header>Allocations for
national research and technology programs</header><text>Section 3046 of the
SAFETEA–LU (49 U.S.C. 5338 note) is amended—</text>
<paragraph id="ID816db9af4e714578be7ce7b93db5839c"><enum>(1)</enum><text>in subsection (b), by
inserting <quote>or period</quote> after <quote>fiscal year</quote>; and</text>
</paragraph><paragraph id="IDf7fa719db3d9424d9dd2a7e330e6ff6a"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB5636E5B17C44013A2715B2FD9923434" reported-display-style="italic" style="OLC">
<subsection id="ID8184702a4223400eb85e44f967441da3"><enum>(c)</enum><header>Additional
appropriations</header><text>The Secretary shall allocate amounts appropriated
pursuant to section 5338(d) of title 49, United States Code, for national
research and technology programs under sections 5312, 5314, and 5322 of such
title—</text>
<paragraph id="ID9bdd46de5e6e43ae99623fbc29ce2188"><enum>(1)</enum><text>for fiscal year 2010, in
amounts equal to the amounts allocated for fiscal year 2009 under each of
paragraphs (2), (3), (5), (6), and (8) through (25) of subsection (a);
and</text>
</paragraph><paragraph id="ID66bf46efbbc244a9b4ff03dd0fe742df"><enum>(2)</enum><text>for the period beginning
October 1, 2010, and ending December 31, 2010, in amounts equal to 25 percent
of the amounts allocated for fiscal year 2009 under each of paragraphs (2),
(3), (5), (6), and (8) through (25) of subsection (a).</text>
</paragraph></subsection><subsection id="IDc794e19d3895476a97f7837ac1cfbf08"><enum>(d)</enum><header>Funding</header><text>If
the Secretary determines that a project or activity described in subsection (a)
received sufficient funds in fiscal year 2009, or a previous fiscal year, to
carry out the purpose for which the project or activity was authorized, the
Secretary may not allocate any amounts under subsection (c) for the project or
activity for fiscal year 2010, or any subsequent fiscal
year.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle><subtitle id="id2D6389DB40B543C0948253DF9A976844"><enum>D</enum><header>Revenue
provisions</header>
<section id="IDce5037a4c9fb46eea0cad673fa223d11"><enum>441.</enum><header>Repeal of provision
prohibiting the crediting of interest to the Highway Trust Fund</header>
<subsection id="ID741c9565da1f4eda98d66286043e143b"><enum>(a)</enum><header>In
General</header><text>Paragraph (1) of section 9503(f) is amended by striking
subparagraph (B).</text>
</subsection><subsection id="IDbd9c91361dc442149816bb00371550de"><enum>(b)</enum><header>Conforming
Amendments</header><text>Such paragraph, as amended by paragraph (1), is
further amended—</text>
<paragraph id="ID25c7e9a3b4b040219c4379f581ab80c4"><enum>(1)</enum><text>by striking <quote>,
and</quote> at the end of subparagraph (A) and inserting a period; and</text>
</paragraph><paragraph id="ID93cc92d916684fbd927cb5d87d20b758"><enum>(2)</enum><text>by striking
<quote>1998</quote> in the matter preceding subparagraph (A) and all that
follows through <quote>the opening balance</quote> and inserting <quote>1998,
the opening balance</quote>.</text>
</paragraph></subsection><subsection id="ID5b926d1aaf104e76aaaf1e4869aba8ad"><enum>(c)</enum><header>Effective
Date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this title.</text>
</subsection></section><section id="ID0237f8faa3064c7b96c4d51eb674a6b2"><enum>442.</enum><header>Restoration of certain
foregone interest to Highway Trust Fund</header>
<subsection id="IDbd16cd30c55344a992c80391167cb8f6"><enum>(a)</enum><header>In
General</header><text>Paragraph (2) of section 9503(f) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDC0FB0B7C3A84AF0A50F36DFC63F6A86" reported-display-style="italic" style="OLC">
<paragraph id="IDafe19a2a59bc468c8af36047a846f24f"><enum>(2)</enum><header>Restoration of foregone
interest</header><text>Out of money in the Treasury not otherwise appropriated,
there is hereby appropriated—</text>
<subparagraph id="ID6b1e085a8a274a3aaf1b8bb2573a0304"><enum>(A)</enum><text>$14,700,000,000 to the
Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund;
and</text>
</subparagraph><subparagraph id="IDdac481f9782b4060891208b382cc842a"><enum>(B)</enum><text>$4,800,000,000 to the
Mass Transit Account in the Highway Trust
Fund.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDa12f0ac238754a889a49727c34d47391"><enum>(b)</enum><header>Conforming
Amendment</header><text>Paragraph (1) of section 9503(e) is amended by striking
<quote>this subsection</quote> and inserting <quote>this
section</quote>.</text>
</subsection><subsection id="ID217e8dea30e247788a9d61769c4831a8"><enum>(c)</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 id="ID8fc4a3b863bf4dbab8f2e7d1c2c2d654"><enum>443.</enum><header>Treatment of certain
amounts appropriated to Highway Trust Fund</header>
<subsection id="ID93bccf4c425b431e973e5b514632f287"><enum>(a)</enum><header>In
General</header><text>Section 9503(f), as amended by this Act, is amended by
adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC2000E1116E44590BFB1AC1657D2138E" reported-display-style="italic" style="OLC">
<paragraph id="ID1898a0ed341d469ba1f9ef9d0d11e46c"><enum>(4)</enum><header>Treatment of
appropriated amounts</header><text>Any amount appropriated under this
subsection to the Highway Trust Fund shall remain available without fiscal year
limitation.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDd1521667ad4743d79f718423e5022c0e"><enum>(b)</enum><header>Effective
Date</header><text>The amendment made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section id="id8BDF5305B2354F8E94D553CFBE5C9D06"><enum>444.</enum><header>Termination of
transfers from highway trust fund for certain repayments and credits</header>
<subsection id="id84D1782CEE874A13A1719E81B960181C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 9503(c) is
amended by striking paragraph (2) and by redesignating paragraphs (3), (4),
(5), and (6) as paragraphs (2), (3), (4), and (5), respectively.</text>
</subsection><subsection id="id40AC5540D11A41E3830F9E2D3CF25380"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="ID3e36c750fab6478bb361ac1f4ce60d4e"><enum>(1)</enum><text>Section 9502(a) is
amended by striking <quote>section 9503(c)(7)</quote> and inserting
<quote>section 9503(c)(5)</quote>.</text>
</paragraph><paragraph id="ID3a01d1f6e5d1464980f200f3709df7ab"><enum>(2)</enum><text>Section 9503(b)(4)(D) is
amended by striking <quote>paragraph (4)(D) or (5)(B)</quote> and inserting
<quote>paragraph (3)(D) or (4)(B)</quote>.</text>
</paragraph><paragraph id="id48246C3EA99248E8AF9DB13DDBB33A49"><enum>(3)</enum><text>Paragraph (2) of section
9503(c), as redesignated by subsection (a), is amended by adding at the end the
following new sentence: <quote>The amounts payable from the Highway Trust Fund
under the preceding sentence shall be determined by taking into account only
the portion of the taxes which are deposited into the Highway Trust
Fund.</quote>.</text>
</paragraph><paragraph id="id507DA4E08419490390104F009E6421A5"><enum>(4)</enum><text>Section 9503(e)(5)(A) is
amended by striking <quote>(2), (3), and (4)</quote> and inserting <quote>(2)
and (3)</quote>.</text>
</paragraph><paragraph id="IDc6634e002f9a43d1b54d25bc529b4d77"><enum>(5)</enum><text>Section 9504(a) is
amended by striking <quote>section 9503(c)(4), section 9503(c)(5)</quote> and
inserting <quote>section 9503(c)(3), section 9503(c)(4)</quote>.</text>
</paragraph><paragraph id="IDdc7d5880c4404ad8809c27fc58ecd0b1"><enum>(6)</enum><text>Section 9504(b)(2) is
amended by striking <quote>section 9503(c)(5)</quote> and inserting
<quote>section 9503(c)(4)</quote>.</text>
</paragraph><paragraph id="IDbae09a616f6142c3ad230a6c1262071c"><enum>(7)</enum><text>Section 9504(e) is
amended by striking <quote>section 9503(c)(4)</quote> and inserting section
<quote>9503(c)(3)</quote>.</text>
</paragraph></subsection><subsection id="id52C41F11A28144E2A6958B95237EA5AA"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to transfers relating to amounts paid and credits
allowed after the date of the enactment of this Act.</text>
</subsection></section><section id="ID058a053c170f451ebadd07ac8463d1e5"><enum>445.</enum><header>Extension of authority
for expenditures</header>
<subsection id="ID66271b558f594e058b1384dcfffe05fd"><enum>(a)</enum><header>Highways Trust
Fund</header>
<paragraph id="id9A4F5F7E3A534201A385E2860F2D0B96"><enum>(1)</enum><header>Highway
Account</header><text>Paragraph (1) of section 9503(c) is amended—</text>
<subparagraph id="ID28a130eb896646c6b9d8713ab91c2892"><enum>(A)</enum><text>by striking
<quote>September 30, 2009 (October 1, 2009</quote> and inserting
<quote>December 31, 2010 (January 1, 2011</quote>; and</text>
</subparagraph><subparagraph id="IDc2484298b01b4180a21d0de47063f526"><enum>(B)</enum><text>by striking
<quote>under</quote> and all that follows and inserting <quote>under the
<short-title>Surface Transportation Extension Act of
2010</short-title> or any other provision of law which was referred to in this
paragraph before the date of the enactment of such Act (as such Act and
provisions of law are in effect on the date of the enactment of such
Act).</quote>.</text>
</subparagraph></paragraph><paragraph id="ID444df5785c7644e39b695fec0458ae8c"><enum>(2)</enum><header>Mass Transit
Account</header><text>Paragraph (3) of section 9503(e) is amended—</text>
<subparagraph id="ID3017b22db5a14ee08e614a55e2218b1a"><enum>(A)</enum><text>by striking
<quote>October 1, 2009</quote> and inserting <quote>January 1, 2011</quote>;
and</text>
</subparagraph><subparagraph id="IDdbf19d4f72544cd59fde01ee897e046c"><enum>(B)</enum><text>by striking <quote>in
accordance with</quote> and all that follows and inserting <quote>in accordance
with the <short-title>Surface Transportation Extension Act
of 2010</short-title> or any other provision of law which was referred to in
this paragraph before the date of the enactment of such Act (as such Act and
provisions of law are in effect on the date of the enactment of such
Act).</quote>.</text>
</subparagraph></paragraph><paragraph id="ID1e7ea841168f4fc3bf483f2ca29b0b6f"><enum>(3)</enum><header>Exception to Limitation
on Transfers</header><text>Subparagraph (B) of section 9503(b)(6) is amended by
striking <quote>September 30, 2009 (October 1, 2009</quote> and inserting
<quote>December 31, 2010 (January 1, 2011</quote>.</text>
</paragraph></subsection><subsection id="H6FE0A5972B5A4291A8EC370B3972711F"><enum>(b)</enum><header>Sport fish restoration
and boating trust fund</header>
<paragraph id="H67A3F4E53A8949E482C1B4193E16901E"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 9504(b) is amended—</text>
<subparagraph id="H9B559C68F13849E989EEA846D501837B"><enum>(A)</enum><text>by striking <quote>(as in
effect</quote> in subparagraph (A) and all that follows in such subparagraph
and inserting <quote>(as in effect on the date of the enactment of the
<short-title>Surface Transportation Extension Act of
2010</short-title>),</quote>,</text>
</subparagraph><subparagraph id="H6FCCFFEE698B4B87817DB1B3AF1BFF66"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>(as in effect</quote> in
subparagraph (B) and all that follows in such subparagraph and inserting
<quote>(as in effect on the date of the enactment of the
<short-title>Surface Transportation Extension Act of
2010</short-title>), and</quote>, and</text>
</subparagraph><subparagraph id="H4F9788090C074E9AB9C76DEDDB806110"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>(as in effect</quote> in
subparagraph (C) and all that follows in such subparagraph and inserting
<quote>(as in effect on the date of the enactment of the
<short-title>Surface Transportation Extension Act of
2010</short-title>).</quote>.</text>
</subparagraph></paragraph><paragraph id="HBB0EA75B4CE245C5B80A2BF2E507F510"><enum>(2)</enum><header>Exception to limitation
on transfers</header><text>Paragraph (2) of section 9504(d) is amended by
striking <quote>October 1, 2009</quote> and inserting <quote>January 1,
2011</quote>.</text>
</paragraph></subsection><subsection id="ID93ad628364cd460d8d27d84f9ad6d175"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
September 30, 2009.</text>
</subsection></section><section id="ID83c1d9a07fd14d16b0cc082cb346f2e4"><enum>446.</enum><header>Level of obligation
limitations</header>
<subsection id="ID52b33eb553584dc9981b7ccdeedc1f22"><enum>(a)</enum><header>Highway
Category</header><text>Section 8003(a) of the SAFETEA–LU (2 U.S.C. 901 note;
119 Stat. 1917) is amended—</text>
<paragraph id="IDbe5f3fa3d823483997c17a340def7615"><enum>(1)</enum><text>in paragraph (4), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="ID305620f581ba4819858961856e1d3910"><enum>(2)</enum><text>in paragraph (5), by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="IDd3488492ee94418ab8a5884f10e7179b"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD97E8C9526EC46BFA7C950FD4E5F6AA6" reported-display-style="italic" style="OLC">
<paragraph id="ID43fe888da4c049d7aa4aa651131f82de"><enum>(6)</enum><text>for the period beginning
on October 1, 2009, and ending on September 30, 2010, $42,469,970,178.</text>
</paragraph><paragraph id="IDaa5fa5aa8ab6421392585388ec830ac0"><enum>(7)</enum><text>for the period beginning
on October 1, 2010, and ending on December 31, 2010,
$10,617,492,545.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID79d9208c091b416e85481e26fe20dedb"><enum>(b)</enum><header>Mass Transit
Category</header><text>Section 8003(b) of the SAFETEA–LU (2 U.S.C. 901 note;
119 Stat. 1917) is amended—</text>
<paragraph id="ID135b254ea3584421a422870373f18f81"><enum>(1)</enum><text>in paragraph (4), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDe645370b8506491c83e9825e379db4fb"><enum>(2)</enum><text>in paragraph (5), by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="IDd3257067a548476f91f64386b6b50040"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idCA5FEC5DD8B040EF97098DFB14E411EB" reported-display-style="italic" style="OLC">
<paragraph id="IDfa12b85f7c3f4e4caf2bd4c7db711524"><enum>(6)</enum><text>for the period beginning
on October 1, 2009, and ending on December 31, 2010, $10,338,065,000.</text>
</paragraph><paragraph id="IDc29b0b32597e4507a4ba81ee0e2bfdf6"><enum>(7)</enum><text>for the period beginning
on October 1, 2010, and ending on December 31, 2010,
$2,584,516,250.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDde15d2ca1a4142e0be6629ff68dfa618"><enum>(c)</enum><header>Treatment of
Funds</header><text>No adjustment pursuant to section 110 of title 23, United
States Code, shall be made for fiscal year 2010 or fiscal year 2011.</text>
</subsection></section></subtitle><enum>V</enum><header>Offset
provisions</header>
<subtitle commented="no" id="HB65F815748E64EE9B9F1538E12B60338" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Foreign account tax compliance</header>
<part commented="no" id="H003E25E2500E4186ACF2ABEB1F2C2674" level-type="subsequent"><enum>I</enum><header display-inline="yes-display-inline">Increased disclosure of beneficial owners
</header>
<section commented="no" display-inline="no-display-inline" id="H0992532C6CB94BB7B63977B6F79DAFEE" section-type="subsequent-section"><enum>501.</enum><header display-inline="yes-display-inline">Reporting on certain foreign
accounts</header>
<subsection commented="no" display-inline="no-display-inline" id="HC196CD07087A4531901E0D73FA637E13"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Internal Revenue Code of 1986 is
amended by inserting after chapter 3 the following new chapter:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H678101AE04A942E997B7C3D8AAFD6809" reported-display-style="italic" style="OLC">
<chapter commented="no" id="H388E69027CF7488CBC9C19F1DC5629AD" level-type="subsequent"><enum>4</enum><header display-inline="yes-display-inline">Taxes To enforce reporting on certain
foreign accounts</header>
<toc container-level="chapter-container" idref="H388E69027CF7488CBC9C19F1DC5629AD" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry bold="off" idref="H03CB28179BE54381B8F6AE1B5A7CE542" level="section">Sec. 1471. Withholdable payments to foreign
financial institutions.</toc-entry>
<toc-entry bold="off" idref="H762856BB9DA445C9BFF3C4F1D237BD86" level="section">Sec. 1472. Withholdable payments to other
foreign entities.</toc-entry>
<toc-entry bold="off" idref="H24B86027916D4C4BB451DD8115EA27F5" level="section">Sec. 1473. Definitions.</toc-entry>
<toc-entry bold="off" idref="H4B3CDAFD35EF4A8BB1754255177AD7E0" level="section">Sec. 1474. Special rules.</toc-entry>
</toc>
<section commented="no" display-inline="no-display-inline" id="H03CB28179BE54381B8F6AE1B5A7CE542" section-type="subsequent-section"><enum>1471.</enum><header display-inline="yes-display-inline">Withholdable payments to foreign financial
institutions</header>
<subsection commented="no" display-inline="no-display-inline" id="H87C64E2D13164575907FD8E2E6367D2B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any withholdable payment to
a foreign financial institution which does not meet the requirements of
subsection (b), the withholding agent with respect to such payment shall deduct
and withhold from such payment a tax equal to 30 percent of the amount of such
payment.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0853A8B2D2B9481B8E0517EADFCD68C4"><enum>(b)</enum><header display-inline="yes-display-inline">Reporting requirements, etc</header>
<paragraph commented="no" display-inline="no-display-inline" id="H25CD838DE00A4C6CB43EC51B63C30A35"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The requirements of this subsection are met
with respect to any foreign financial institution if an agreement is in effect
between such institution and the Secretary under which such institution
agrees—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6C8566899890470FA667C026BF56DC8F"><enum>(A)</enum><text display-inline="yes-display-inline">to obtain such information regarding each
holder of each account maintained by such institution as is necessary to
determine which (if any) of such accounts are United States accounts,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAB8AFF5E5B7945AAB55BE5F8E75706D8"><enum>(B)</enum><text display-inline="yes-display-inline">to comply with such verification and due
diligence procedures as the Secretary may require with respect to the
identification of United States accounts,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4374920175344455A2046731CC039211"><enum>(C)</enum><text display-inline="yes-display-inline">in the case of any United States account
maintained by such institution, to report on an annual basis the information
described in subsection (c) with respect to such account,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H177CD4C74D59475A9EE507425E4DEAF1"><enum>(D)</enum><text display-inline="yes-display-inline">to deduct and withhold a tax equal to 30
percent of—</text>
<clause commented="no" display-inline="no-display-inline" id="H0BBFE9CF7425466299F03A5DEFAC51B6"><enum>(i)</enum><text display-inline="yes-display-inline">any passthru payment which is made by such
institution to a recalcitrant account holder or another foreign financial
institution which does not meet the requirements of this subsection, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDA78B44BBCF44FBF8EB7A59170CA0F83"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any passthru payment which
is made by such institution to a foreign financial institution which has in
effect an election under paragraph (3) with respect to such payment, so much of
such payment as is allocable to accounts held by recalcitrant account holders
or foreign financial institutions which do not meet the requirements of this
subsection,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFCC79B8FF69443ECBEBAB0A63530EC21"><enum>(E)</enum><text display-inline="yes-display-inline">to comply with requests by the Secretary
for additional information with respect to any United States account maintained
by such institution, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H936F773F79F3404CAE5D2FD098507513"><enum>(F)</enum><text display-inline="yes-display-inline">in any case in which any foreign law would
(but for a waiver described in clause (i)) prevent the reporting of any
information referred to in this subsection or subsection (c) with respect to
any United States account maintained by such institution—</text>
<clause commented="no" display-inline="no-display-inline" id="HF03B6747F4D14095A9D17D7AC95EC65D"><enum>(i)</enum><text display-inline="yes-display-inline">to attempt to obtain a valid and effective
waiver of such law from each holder of such account, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE0DA6EF2D6384A04B94B55D6FD54E063"><enum>(ii)</enum><text display-inline="yes-display-inline">if a waiver described in clause (i) is not
obtained from each such holder within a reasonable period of time, to close
such account.</text>
</clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Any
agreement entered into under this subsection may be terminated by the Secretary
upon a determination by the Secretary that the foreign financial institution is
out of compliance with such agreement.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4362C72656B14892AA5828286E61197E"><enum>(2)</enum><header display-inline="yes-display-inline">Financial institutions deemed to meet
requirements in certain cases</header><text display-inline="yes-display-inline">A foreign financial institution may be
treated by the Secretary as meeting the requirements of this subsection
if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H80A41FF37CFA4701BD877F6DA2C07645"><enum>(A)</enum><text display-inline="yes-display-inline">such institution—</text>
<clause commented="no" display-inline="no-display-inline" id="HA1F7C03268CC410597FBEC37465FD848"><enum>(i)</enum><text display-inline="yes-display-inline">complies with such procedures as the
Secretary may prescribe to ensure that such institution does not maintain
United States accounts, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H486D099DC4944C5B947A68ED3C676D2E"><enum>(ii)</enum><text display-inline="yes-display-inline">meets such other requirements as the
Secretary may prescribe with respect to accounts of other foreign financial
institutions maintained by such institution, or</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7FFB3CA9A79A45F1898FC156933EC4A6"><enum>(B)</enum><text display-inline="yes-display-inline">such institution is a member of a class of
institutions with respect to which the Secretary has determined that the
application of this section is not necessary to carry out the purposes of this
section.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7C20F72E18F34531848D11AD4BCBED51"><enum>(3)</enum><header display-inline="yes-display-inline">Election to be withheld upon rather than
withhold on payments to recalcitrant account holders and nonparticipating
foreign financial institutions</header><text display-inline="yes-display-inline">In the case of a foreign financial
institution which meets the requirements of this subsection and such other
requirements as the Secretary may provide and which elects the application of
this paragraph—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE2A9EAB915E24655BCEEC3436A6CD34B"><enum>(A)</enum><text display-inline="yes-display-inline">the requirements of paragraph (1)(D) shall
not apply,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC81484ED772A402FB9B79410CAA1AD0B"><enum>(B)</enum><text display-inline="yes-display-inline">the withholding tax imposed under
subsection (a) shall apply with respect to any withholdable payment to such
institution to the extent such payment is allocable to accounts held by
recalcitrant account holders or foreign financial institutions which do not
meet the requirements of this subsection, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC0C67E5E6C2E422BB87E5AC6B7FDA821"><enum>(C)</enum><text display-inline="yes-display-inline">the agreement described in paragraph (1)
shall—</text>
<clause commented="no" display-inline="no-display-inline" id="HD0FD3A6DB97147669A9B615E3E5EA2DA"><enum>(i)</enum><text display-inline="yes-display-inline">require such institution to notify the
withholding agent with respect to each such payment of the institution’s
election under this paragraph and such other information as may be necessary
for the withholding agent to determine the appropriate amount to deduct and
withhold from such payment, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2E203B4A64A340479196732D674E96B9"><enum>(ii)</enum><text display-inline="yes-display-inline">include a waiver of any right under any
treaty of the United States with respect to any amount deducted and withheld
pursuant to an election under this paragraph.</text>
</clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">To
the extent provided by the Secretary, the election under this paragraph may be
made with respect to certain classes or types of accounts of the foreign
financial institution.</continuation-text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCB1B3E53159F44578491E434A1AD79FA"><enum>(c)</enum><header display-inline="yes-display-inline">Information required To be reported on
United States accounts</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4B126C63CF1D45FA912B2B15353FBB07"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The agreement described in subsection (b)
shall require the foreign financial institution to report the following with
respect to each United States account maintained by such institution:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC5607194F7FA45B69460DF8B023190AB"><enum>(A)</enum><text display-inline="yes-display-inline">The name, address, and TIN of each account
holder which is a specified United States person and, in the case of any
account holder which is a United States owned foreign entity, the name,
address, and TIN of each substantial United States owner of such entity.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2641373AFE3D409E83A3A889BF03B282"><enum>(B)</enum><text display-inline="yes-display-inline">The account number.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB22B7E3F0A54D0295052573C8BC039E"><enum>(C)</enum><text display-inline="yes-display-inline">The account balance or value (determined at
such time and in such manner as the Secretary may provide).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEDC7744A3A4743F7A1EC62B9C53743DF"><enum>(D)</enum><text display-inline="yes-display-inline">Except to the extent provided by the
Secretary, the gross receipts and gross withdrawals or payments from the
account (determined for such period and in such manner as the Secretary may
provide).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9CE81490A5434D0293DC90CC3B739978"><enum>(2)</enum><header display-inline="yes-display-inline">Election to be subject to same reporting as
United States financial institutions</header><text display-inline="yes-display-inline">In the case of a foreign financial
institution which elects the application of this paragraph—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HBACFCD5519604A13B655205A8E5F6E03"><enum>(A)</enum><text display-inline="yes-display-inline">subparagraphs (C) and (D) of paragraph (1)
shall not apply, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0FE3C03835ED42F5B27CB8BC3DF32D6C"><enum>(B)</enum><text display-inline="yes-display-inline">the agreement described in subsection (b)
shall require such foreign financial institution to report such information
with respect to each United States account maintained by such institution as
such institution would be required to report under sections 6041, 6042, 6045,
and 6049 if—</text>
<clause commented="no" display-inline="no-display-inline" id="HCB230B517F344CF2A12FFAEC6FA331B1"><enum>(i)</enum><text display-inline="yes-display-inline">such institution were a United States
person, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC974840F5A1048129E39C50FA9768EA4"><enum>(ii)</enum><text display-inline="yes-display-inline">each holder of such account which is a
specified United States person or United States owned foreign entity were a
natural person and citizen of the United States.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">An
election under this paragraph shall be made at such time, in such manner, and
subject to such conditions as the Secretary may provide.</continuation-text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF2ECEAB311474D089A72F9F04C854360"><enum>(3)</enum><header display-inline="yes-display-inline">Separate requirements for qualified
intermediaries</header><text display-inline="yes-display-inline">In the case of
a foreign financial institution which is treated as a qualified intermediary by
the Secretary for purposes of section 1441 and the regulations issued
thereunder, the requirements of this section shall be in addition to any
reporting or other requirements imposed by the Secretary for purposes of such
treatment.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H99C1B699E2834648A4CDF54216AAC1EF"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H88DDCE6DC95D4D47B7563FEC94655EF9"><enum>(1)</enum><header display-inline="yes-display-inline">United States account</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H5806B61D1B4142F7903AA22BA058A650"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>United States account</term>
means any financial account which is held by one or more specified United
States persons or United States owned foreign entities.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H0F3B143233EE46D89A50E246CC4DEF20"><enum>(B)</enum><header display-inline="yes-display-inline">Exception for certain accounts held by
individuals</header><text display-inline="yes-display-inline">Unless the
foreign financial institution elects to not have this subparagraph apply, such
term shall not include any depository account maintained by such financial
institution if—</text>
<clause commented="no" display-inline="no-display-inline" id="HC30D22472A934D56BDDAF312DD7DC147"><enum>(i)</enum><text display-inline="yes-display-inline">each holder of such account is a natural
person, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9786D5CB4A084F0FA499F38EB3510C6B"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to each holder of such
account, the aggregate value of all depository accounts held (in whole or in
part) by such holder and maintained by the same financial institution which
maintains such account does not exceed $50,000.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">To
the extent provided by the Secretary, financial institutions which are members
of the same expanded affiliated group shall be treated for purposes of clause
(ii) as a single financial institution.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF3D4217AFB8D4BB7AAD309D720A4CF2E"><enum>(C)</enum><header display-inline="yes-display-inline">Elimination of duplicative reporting
requirements</header><text display-inline="yes-display-inline">Such term shall
not include any financial account in a foreign financial institution if—</text>
<clause commented="no" display-inline="no-display-inline" id="HA8C50007E26C4B6EB9220CBFDC250DD5"><enum>(i)</enum><text display-inline="yes-display-inline">such account is held by another financial
institution which meets the requirements of subsection (b), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7E94164321844ABDBBC1F67BF72A53D6"><enum>(ii)</enum><text display-inline="yes-display-inline">the holder of such account is otherwise
subject to information reporting requirements which the Secretary determines
would make the reporting required by this section with respect to United States
accounts duplicative.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H320FFBEF826745759CB5C082D1622B4D"><enum>(2)</enum><header display-inline="yes-display-inline">Financial account</header><text display-inline="yes-display-inline">Except as otherwise provided by the
Secretary, the term <term>financial account</term> means, with respect to any
financial institution—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H22515D00195748C9875FF2BD1747313C"><enum>(A)</enum><text display-inline="yes-display-inline">any depository account maintained by such
financial institution,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H91A5C272B5A84CF5A756CE91DF53EA38"><enum>(B)</enum><text display-inline="yes-display-inline">any custodial account maintained by such
financial institution, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H86D09CD3B0C14B2484D6DDFA286C0CF9"><enum>(C)</enum><text display-inline="yes-display-inline">any equity or debt interest in such
financial institution (other than interests which are regularly traded on an
established securities market).</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Any
equity or debt interest which constitutes a financial account under
subparagraph (C) with respect to any financial institution shall be treated for
purposes of this section as maintained by such financial institution.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5E34654435504463B7F16AB50DC59831"><enum>(3)</enum><header display-inline="yes-display-inline">United States owned foreign
entity</header><text display-inline="yes-display-inline">The term <term>United
States owned foreign entity</term> means any foreign entity which has one or
more substantial United States owners.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H981F07930E3B44A69DB323CABD2F13A0"><enum>(4)</enum><header display-inline="yes-display-inline">Foreign financial institution</header><text display-inline="yes-display-inline">The term <quote>foreign financial
institution</quote> means any financial institution which is a foreign entity.
Except as otherwise provided by the Secretary, such term shall not include a
financial institution which is organized under the laws of any possession of
the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H94F33A3EF90440048645628EAB1EF0D6"><enum>(5)</enum><header display-inline="yes-display-inline">Financial institution</header><text display-inline="yes-display-inline">Except as otherwise provided by the
Secretary, the term <term>financial institution</term> means any entity
that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0398623D81A649BCA144B3173724874E"><enum>(A)</enum><text display-inline="yes-display-inline">accepts deposits in the ordinary course of
a banking or similar business,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC216A353E6354596A7AC2F9BAEA5062C"><enum>(B)</enum><text display-inline="yes-display-inline">as a substantial portion of its business,
holds financial assets for the account of others, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC3E2254BB3AE4808B8CD569D04B764B8"><enum>(C)</enum><text display-inline="yes-display-inline">is engaged (or holding itself out as being
engaged) primarily in the business of investing, reinvesting, or trading in
securities (as defined in section 475(c)(2) without regard to the last sentence
thereof), partnership interests, commodities (as defined in section 475(e)(2)),
or any interest (including a futures or forward contract or option) in such
securities, partnership interests, or commodities.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3AA960165C77460495CF3B0F3349367B"><enum>(6)</enum><header display-inline="yes-display-inline">Recalcitrant account holder</header><text display-inline="yes-display-inline">The term <term>recalcitrant account
holder</term> means any account holder which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H472829C568794603BA07F492FBBF9E21"><enum>(A)</enum><text display-inline="yes-display-inline">fails to comply with reasonable requests
for the information referred to in subsection (b)(1)(A) or (c)(1)(A), or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H81B31C8B688A4CCCBC27842807661CF4"><enum>(B)</enum><text display-inline="yes-display-inline">fails to provide a waiver described in
subsection (b)(1)(F) upon request.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9CD086A683CC4FC7B6AF58468F45D61C"><enum>(7)</enum><header display-inline="yes-display-inline">Passthru payment</header><text display-inline="yes-display-inline">The term <term>passthru payment</term>
means any withholdable payment or other payment to the extent attributable to a
withholdable payment.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2DDD80A4F8E947C3A53EE8D69F60A549"><enum>(e)</enum><header display-inline="yes-display-inline">Affiliated groups</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0D11611640484808B1AB54373EAB153C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The requirements of subsections (b) and
(c)(1) shall apply—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5177CEB628004456BD64F4407915FDB6"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to United States accounts
maintained by the foreign financial institution, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H012DCD47799A4B038AF37921CD4818FA"><enum>(B)</enum><text display-inline="yes-display-inline">except as otherwise provided by the
Secretary, with respect to United States accounts maintained by each other
foreign financial institution (other than any foreign financial institution
which meets the requirements of subsection (b)) which is a member of the same
expanded affiliated group as such foreign financial institution.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H3C5034D2C9A84BF8B186BEADEF4CA9F3"><enum>(2)</enum><header display-inline="yes-display-inline">Expanded affiliated group</header><text display-inline="yes-display-inline">For purposes of this section, the term
<quote>expanded affiliated group</quote> means an affiliated group as defined
in section 1504(a), determined—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB566BFB66AB24CEDBBE49E100BE282AB"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>more than 50
percent</quote> for <quote>at least 80 percent</quote> each place it appears,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H27A91C8D36AD4082AFB847F24B6B33B5"><enum>(B)</enum><text display-inline="yes-display-inline">without regard to paragraphs (2) and (3) of
section 1504(b).</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">A
partnership or any other entity (other than a corporation) shall be treated as
a member of an expanded affiliated group if such entity is controlled (within
the meaning of section 954(d)(3)) by members of such group (including any
entity treated as a member of such group by reason of this sentence).</continuation-text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD59CC2C6B8E945438879F4DB31CA0630"><enum>(f)</enum><header display-inline="yes-display-inline">Exception for certain
payments</header><text display-inline="yes-display-inline">Subsection (a) shall
not apply to any payment to the extent that the beneficial owner of such
payment is—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9C0D46FFFACA4911B475620059210120"><enum>(1)</enum><text display-inline="yes-display-inline">any foreign government, any political
subdivision of a foreign government, or any wholly owned agency or
instrumentality of any one or more of the foregoing,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H20B8D59CD8B244EA83C125404E8E02AB"><enum>(2)</enum><text display-inline="yes-display-inline">any international organization or any
wholly owned agency or instrumentality thereof,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H40D26529028046CEB28377E2CD51B125"><enum>(3)</enum><text display-inline="yes-display-inline">any foreign central bank of issue,
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H68E01D0597C848BD99752C671EB32358"><enum>(4)</enum><text display-inline="yes-display-inline">any other class of persons identified by
the Secretary for purposes of this subsection as posing a low risk of tax
evasion.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H762856BB9DA445C9BFF3C4F1D237BD86" section-type="subsequent-section"><enum>1472.</enum><header display-inline="yes-display-inline">Withholdable payments to other foreign
entities</header>
<subsection commented="no" display-inline="no-display-inline" id="H79C5A0FC2E954C189661498539F96418"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any withholdable payment to
a non-financial foreign entity, if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H9672B7E130B84F5497AAE46442ED078C"><enum>(1)</enum><text display-inline="yes-display-inline">the beneficial owner of such payment is
such entity or any other non-financial foreign entity, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFFD23D7BFC0B4F7390B25D6C48976469"><enum>(2)</enum><text display-inline="yes-display-inline">the requirements of subsection (b) are not
met with respect to such beneficial owner,</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">then
the withholding agent with respect to such payment shall deduct and withhold
from such payment a tax equal to 30 percent of the amount of such
payment.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="H3BF9F12C6A444766A825ED0A51D174A9"><enum>(b)</enum><header display-inline="yes-display-inline">Requirements for waiver of
withholding</header><text display-inline="yes-display-inline">The requirements
of this subsection are met with respect to the beneficial owner of a payment
if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6353B3BC44F8407681A2EB769315B614"><enum>(1)</enum><text display-inline="yes-display-inline">such beneficial owner or the payee provides
the withholding agent with either—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H58F17984948444ADB1C617DCB0BADA48"><enum>(A)</enum><text display-inline="yes-display-inline">a certification that such beneficial owner
does not have any substantial United States owners, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE786956B3E5948CFB7220DC51AFBA35D"><enum>(B)</enum><text display-inline="yes-display-inline">the name, address, and TIN of each
substantial United States owner of such beneficial owner,</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF72858CB44EA43CEB3765F8B829FDCD0"><enum>(2)</enum><text display-inline="yes-display-inline">the withholding agent does not know, or
have reason to know, that any information provided under paragraph (1) is
incorrect, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HED27B7F3B2544B9FB12A6763AA8B6CD7"><enum>(3)</enum><text display-inline="yes-display-inline">the withholding agent reports the
information provided under paragraph (1)(B) to the Secretary in such manner as
the Secretary may provide.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD02FD0B5426344E99B0DE6A0F094809E"><enum>(c)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Subsection (a) shall not apply to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA6B81D93AD014ABB9147067A530D3269"><enum>(1)</enum><text display-inline="yes-display-inline">except as otherwise provided by the
Secretary, any payment beneficially owned by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7B91EC8B8D6247668B0FADFDF3DAE75E"><enum>(A)</enum><text display-inline="yes-display-inline">any corporation the stock of which is
regularly traded on an established securities market,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFD5B469D52984115B514ECAFC1A66639"><enum>(B)</enum><text display-inline="yes-display-inline">any corporation which is a member of the
same expanded affiliated group (as defined in section 1471(e)(2) without regard
to the last sentence thereof) as a corporation described in subparagraph
(A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8DBB21E51D984DC09B1D7CDAC70ADC0D"><enum>(C)</enum><text display-inline="yes-display-inline">any entity which is organized under the
laws of a possession of the United States and which is wholly owned by one or
more bona fide residents (as defined in section 937(a)) of such
possession,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6C8EE30023A041B3A695A60554535044"><enum>(D)</enum><text display-inline="yes-display-inline">any foreign government, any political
subdivision of a foreign government, or any wholly owned agency or
instrumentality of any one or more of the foregoing,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H37FEA5DD5754496CB603E7B48EA74D51"><enum>(E)</enum><text display-inline="yes-display-inline">any international organization or any
wholly owned agency or instrumentality thereof,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF1F2AA5D8A0E4A9A80051209E220AAE7"><enum>(F)</enum><text display-inline="yes-display-inline">any foreign central bank of issue,
or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9DD4641031974690A63D8CE45A4588F9"><enum>(G)</enum><text display-inline="yes-display-inline">any other class of persons identified by
the Secretary for purposes of this subsection, and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9E7E23DF628A4473A515EE1005125ADD"><enum>(2)</enum><text display-inline="yes-display-inline">any class of payments identified by the
Secretary for purposes of this subsection as posing a low risk of tax
evasion.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0018F8F7F0774165BD88C06F1F30AA62"><enum>(d)</enum><header display-inline="yes-display-inline">Non-Financial foreign entity</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>non-financial foreign entity</term> means any foreign entity which is not
a financial institution (as defined in section 1471(d)(5)).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H24B86027916D4C4BB451DD8115EA27F5" section-type="subsequent-section"><enum>1473.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this chapter—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H625948865DEA4C759FB28343D9C26D1E"><enum>(1)</enum><header display-inline="yes-display-inline">Withholdable payment</header><text display-inline="yes-display-inline">Except as otherwise provided by the
Secretary—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD0F263DB637D472887235802EAB843F8"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>withholdable payment</term>
means—</text>
<clause commented="no" display-inline="no-display-inline" id="H892C6DED5181432F8A0C4D878930E6C8"><enum>(i)</enum><text display-inline="yes-display-inline">any payment of interest (including any
original issue discount), dividends, rents, salaries, wages, premiums,
annuities, compensations, remunerations, emoluments, and other fixed or
determinable annual or periodical gains, profits, and income, if such payment
is from sources within the United States, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB2B72886A71545F88F75911D64AE55A8"><enum>(ii)</enum><text display-inline="yes-display-inline">any gross proceeds from the sale or other
disposition of any property of a type which can produce interest or dividends
from sources within the United States.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H495012CD77454E1B927447BA0FC21462"><enum>(B)</enum><header display-inline="yes-display-inline">Exception for income connected with United
States business</header><text display-inline="yes-display-inline">Such term
shall not include any item of income which is taken into account under section
871(b)(1) or 882(a)(1) for the taxable year.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7AD94A0E2F7F444DABC07B5AD8D19FF6"><enum>(C)</enum><header display-inline="yes-display-inline">Special rule for sourcing interest paid by
foreign branches of domestic financial institutions</header><text display-inline="yes-display-inline">Subparagraph (B) of section 861(a)(1) shall
not apply.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB8197331980141DCABC9A69B86A0DA4F"><enum>(2)</enum><header display-inline="yes-display-inline">Substantial United States owner</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H18FFA8B4B4944791B19DFDE39345B902"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>substantial United States
owner</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="H8ACFF0A4F56140069F528CD63F07AFE9"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to any corporation, any
specified United States person which owns, directly or indirectly, more than 10
percent of the stock of such corporation (by vote or value),</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2E8FFFFF38444423807907463C26EDAB"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to any partnership, any
specified United States person which owns, directly or indirectly, more than 10
percent of the profits interests or capital interests in such partnership,
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H49203DC13CA6460199A444D8E17C9F7B"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a trust—</text>
<subclause commented="no" display-inline="no-display-inline" id="H088E1843CD6B4DD6BD1DB32DF53FF8A1"><enum>(I)</enum><text display-inline="yes-display-inline">any specified United States person treated
as an owner of any portion of such trust under subpart E of part I of
subchapter J of chapter 1, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HD01C81D850654A0D88B90BE29532430B"><enum>(II)</enum><text display-inline="yes-display-inline">to the extent provided by the Secretary in
regulations or other guidance, any specified United States person which holds,
directly or indirectly, more than 10 percent of the beneficial interests of
such trust.</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H58F5F958752448E1A224308AF541639C"><enum>(B)</enum><header display-inline="yes-display-inline">Special rule for investment
vehicles</header><text display-inline="yes-display-inline">In the case of any
financial institution described in section 1471(d)(5)(C), clauses (i), (ii),
and (iii) of subparagraph (A) shall be applied by substituting <quote>0
percent</quote> for <quote>10 percent</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB3B1F0449EE74472A3F71671F08A181F"><enum>(3)</enum><header display-inline="yes-display-inline">Specified United States
person</header><text display-inline="yes-display-inline">Except as otherwise
provided by the Secretary, the term <term>specified United States person</term>
means any United States person other than—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB186D336E9164F0297A0EADD91C0A05E"><enum>(A)</enum><text display-inline="yes-display-inline">any corporation the stock of which is
regularly traded on an established securities market,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3497A7DF2C004956B877080B827FDC07"><enum>(B)</enum><text display-inline="yes-display-inline">any corporation which is a member of the
same expanded affiliated group (as defined in section 1471(e)(2) without regard
to the last sentence thereof) as a corporation the stock of which is regularly
traded on an established securities market,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9F052792A6114A1CB15E4EDAC6546F98"><enum>(C)</enum><text display-inline="yes-display-inline">any organization exempt from taxation under
section 501(a) or an individual retirement plan,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H928FF310CF4F43938DEE3CBBE8CB3BA6"><enum>(D)</enum><text display-inline="yes-display-inline">the United States or any wholly owned
agency or instrumentality thereof,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HEB8DA859A3014C95A4AF61B03A3C5188"><enum>(E)</enum><text display-inline="yes-display-inline">any State, the District of Columbia, any
possession of the United States, any political subdivision of any of the
foregoing, or any wholly owned agency or instrumentality of any one or more of
the foregoing,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H251BB9F1F6364B1B98A622CF72764944"><enum>(F)</enum><text display-inline="yes-display-inline">any bank (as defined in section
581),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD799A05F755842AA84C03EC561E2124E"><enum>(G)</enum><text display-inline="yes-display-inline">any real estate investment trust (as
defined in section 856),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H32940C30A3F1423D9914DF8335A0FE29"><enum>(H)</enum><text display-inline="yes-display-inline">any regulated investment company (as
defined in section 851),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7117BB20C63C470EBD2D07E2A2B1D9F2"><enum>(I)</enum><text display-inline="yes-display-inline">any common trust fund (as defined in
section 584(a)), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H255F8344ED5B45769982B76669F48176"><enum>(J)</enum><text display-inline="yes-display-inline">any trust which—</text>
<clause commented="no" display-inline="no-display-inline" id="H388AB7662579491BB4BF91CDC9C13796"><enum>(i)</enum><text display-inline="yes-display-inline">is exempt from tax under section 664(c),
or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H346A57E213A64B2BA70D5DC66FA0AC62"><enum>(ii)</enum><text display-inline="yes-display-inline">is described in section 4947(a)(1).</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD2B46E741A9949C28B44E04812B3475D"><enum>(4)</enum><header display-inline="yes-display-inline">Withholding agent</header><text display-inline="yes-display-inline">The term <term>withholding agent</term>
means all persons, in whatever capacity acting, having the control, receipt,
custody, disposal, or payment of any withholdable payment.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB7470C26A8694AE588618F9F4F5B8810"><enum>(5)</enum><header display-inline="yes-display-inline">Foreign
entity</header><text display-inline="yes-display-inline">The term <term>foreign
entity</term> means any entity which is not a United States person.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H4B3CDAFD35EF4A8BB1754255177AD7E0" section-type="subsequent-section"><enum>1474.</enum><header display-inline="yes-display-inline">Special rules</header>
<subsection commented="no" display-inline="no-display-inline" id="HF0CC0879923748C7BAB8CDA2866FF83A"><enum>(a)</enum><header display-inline="yes-display-inline">Liability for withheld tax</header><text display-inline="yes-display-inline">Every person required to deduct and
withhold any tax under this chapter is hereby made liable for such tax and is
hereby indemnified against the claims and demands of any person for the amount
of any payments made in accordance with the provisions of this chapter.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H25FB6C8991134E9C974C241C896DD02C"><enum>(b)</enum><header display-inline="yes-display-inline">Credits and refunds</header>
<paragraph commented="no" display-inline="no-display-inline" id="H9CFF794CC7D34F4DB64FFCD317325E0A"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the
determination of whether any tax deducted and withheld under this chapter
results in an overpayment by the beneficial owner of the payment to which such
tax is attributable shall be made as if such tax had been deducted and withheld
under subchapter A of chapter 3.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEEF868385B82417C99A75FC4D678BBA8"><enum>(2)</enum><header display-inline="yes-display-inline">Special rule where foreign financial
institution is beneficial owner of payment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H1B70A2B21F0842D18A49EA644B335DAE"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any tax properly deducted
and withheld under section 1471 from a specified financial institution
payment—</text>
<clause commented="no" display-inline="no-display-inline" id="H0D69C83B00E64A0F8242530F4E591B0E"><enum>(i)</enum><text display-inline="yes-display-inline">if the foreign financial institution
referred to in subparagraph (B) with respect to such payment is entitled to a
reduced rate of tax with respect to such payment by reason of any treaty
obligation of the United States—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA97C853170A34E4CB940C2638D58746B"><enum>(I)</enum><text display-inline="yes-display-inline">the amount of any credit or refund with
respect to such tax shall not exceed the amount of credit or refund
attributable to such reduction in rate, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H05CE2F8503E94527A486347DF1555096"><enum>(II)</enum><text display-inline="yes-display-inline">no interest shall be allowed or paid with
respect to such credit or refund, and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H611BE23D3B664C61BB902E02171A6630"><enum>(ii)</enum><text display-inline="yes-display-inline">if such foreign financial institution is
not so entitled, no credit or refund shall be allowed or paid with respect to
such tax.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA1AB8C89BD60493C9D4F16A7BF002930"><enum>(B)</enum><header display-inline="yes-display-inline">Specified financial institution
payment</header><text display-inline="yes-display-inline">The term
<quote>specified financial institution payment</quote> means any payment if the
beneficial owner of such payment is a foreign financial institution.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H43E002A9A74647C9AF29344FCCF9D28A"><enum>(3)</enum><header display-inline="yes-display-inline">Requirement to identify substantial United
States owners</header><text display-inline="yes-display-inline">No credit or
refund shall be allowed or paid with respect to any tax properly deducted and
withheld under this chapter unless the beneficial owner of the payment provides
the Secretary such information as the Secretary may require to determine
whether such beneficial owner is a United States owned foreign entity (as
defined in section 1471(d)(3)) and the identity of any substantial United
States owners of such entity.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4AE8CF3038E545D991C47B1716DB7C59"><enum>(c)</enum><header display-inline="yes-display-inline">Confidentiality of information</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2CDB0F31BC5C4F26A67A92C534C09445"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this chapter, rules similar
to the rules of section 3406(f) shall apply.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9968C7329C2440F09B2D1F556FD74C77"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure of list of participating foreign
financial institutions permitted</header><text display-inline="yes-display-inline">The identity of a foreign financial
institution which meets the requirements of section 1471(b) shall not be
treated as return information for purposes of section 6103.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H487BFB7CF8D241DE8BC0ED21EA1A576B"><enum>(d)</enum><header display-inline="yes-display-inline">Coordination with other withholding
provisions</header><text display-inline="yes-display-inline">The Secretary
shall provide for the coordination of this chapter with other withholding
provisions under this title, including providing for the proper crediting of
amounts deducted and withheld under this chapter against amounts required to be
deducted and withheld under such other provisions.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H604DA94E845A4102B5C4F36D79BA4062"><enum>(e)</enum><header display-inline="yes-display-inline">Treatment of withholding under
agreements</header><text display-inline="yes-display-inline">Any tax deducted
and withheld pursuant to an agreement described in section 1471(b) shall be
treated for purposes of this title as a tax deducted and withheld by a
withholding agent under section 1471(a).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H0D20912D259148AC81729F4387A45A06"><enum>(f)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations or other guidance as may be necessary or appropriate to carry out
the purposes of, and prevent the avoidance of, this
chapter.</text>
</subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H55AB333BE1F64563866F571CBEC64451"><enum>(b)</enum><header display-inline="yes-display-inline">Special rule for interest on
overpayments</header><text display-inline="yes-display-inline">Subsection (e)
of section 6611 is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H46FE2F88D4894727AF237B6FAABF9F39" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H9310252454F3464A8C2E1BA448FF8AC1"><enum>(4)</enum><header display-inline="yes-display-inline">Certain withholding taxes</header><text display-inline="yes-display-inline">In the case of any overpayment resulting
from tax deducted and withheld under chapter 3 or 4, paragraphs (1), (2), and
(3) shall be applied by substituting <quote>180 days</quote> for <quote>45
days</quote> each place it
appears.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4E8DA4F5F8AF416BA3D7F535A8DC770D"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H33886C41CB8D4EA684C99523E7B1F596"><enum>(1)</enum><text display-inline="yes-display-inline">Section 6414 is amended by inserting
<quote>or 4</quote> after <quote>chapter 3</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCDA1FA699A284581B551069C59DAF677"><enum>(2)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 6501(b) is amended
by inserting <quote>4,</quote> after <quote>chapter 3,</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H223F30E48BD14DDF9CC3D6847D1C1DE3"><enum>(3)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6501(b) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H47AE8F29E7374840A36C3FA5F701FFB7"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>4,</quote> after
<quote>chapter 3,</quote> in the text thereof, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE304E088F7EE4AB997EAE4B72F706876"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">taxes and tax imposed by chapter
3</header-in-text></quote> in the heading thereof and inserting
<quote><header-in-text level="paragraph" style="OLC">and withholding
taxes</header-in-text></quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H48E48A37E11D4DEBA669728511D6514C"><enum>(4)</enum><text display-inline="yes-display-inline">Paragraph (3) of section 6513(b) is
amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6FF08FC9EA39487981086C545F975F3F"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>or 4</quote> after
<quote>chapter 3</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC6D668F8BFB547789C2A6690BFB8994D"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>or 1474(b)</quote>
after <quote>section 1462</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H95D2712A0EFA4D2E80AEC7A431ECA396"><enum>(5)</enum><text display-inline="yes-display-inline">Subsection (c) of section 6513 is amended
by inserting <quote>4,</quote> after <quote>chapter 3,</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H35E957B03F784FDE816025FD611463F8"><enum>(6)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 6724(d) is amended
by inserting <quote>under chapter 4 or</quote> after <quote>filed with the
Secretary</quote> in the last sentence thereof.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFE305AAC9AE04F0591B917DFA8896CB3"><enum>(7)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6724(d) is amended
by inserting <quote>or 4</quote> after <quote>chapter 3</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBB1C41F257E542C6816ED22020647C99"><enum>(8)</enum><text display-inline="yes-display-inline">The table of chapters of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4686F97E94A94DFCAFFE689C0C803B98" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H678101AE04A942E997B7C3D8AAFD6809" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry bold="off" idref="H388E69027CF7488CBC9C19F1DC5629AD" level="chapter">Chapter 4. Taxes To enforce reporting on
certain foreign
accounts.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H94359A05EC654F03B1CCCB678E256E61"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="HAC590A832AA244C2B9EE4F24145C2A22"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this
subsection, the amendments made by this section shall apply to payments made
after December 31, 2012.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFA4DB68CF5ED42C6B17BDDE9A4618E54"><enum>(2)</enum><header display-inline="yes-display-inline">Grandfathered treatment of outstanding
obligations</header><text display-inline="yes-display-inline">The amendments
made by this section shall not require any amount to be deducted or withheld
from any payment under any obligation outstanding on the date which is 2 years
after the date of the enactment of this Act or from the gross proceeds from any
disposition of such an obligation.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H508C4C49CA9D449B964CBBA8B90D6EAD"><enum>(3)</enum><header display-inline="yes-display-inline">Interest on overpayments</header><text display-inline="yes-display-inline">The amendment made by subsection (b) shall
apply—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFC02A388DB4B4FEBA8FDACC4EE1C2EE8"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of such amendment’s application
to paragraph (1) of section 6611(e) of the Internal Revenue Code of 1986, to
returns the due date for which (determined without regard to extensions) is
after the date of the enactment of this Act,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H746319C19A2E4B4EAFCCD4D2CB0D1436"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of such amendment’s application
to paragraph (2) of such section, to claims for credit or refund of any
overpayment filed after the date of the enactment of this Act (regardless of
the taxable period to which such refund relates), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H143BF6427A27484CB4B527D97BB8A188"><enum>(C)</enum><text display-inline="yes-display-inline">in the case of such amendment’s application
to paragraph (3) of such section, to refunds paid after the date of the
enactment of this Act (regardless of the taxable period to which such refund
relates).</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H3502683FF9C04A8385A83D7A4F593DDC" section-type="subsequent-section"><enum>502.</enum><header display-inline="yes-display-inline">Repeal of certain foreign exceptions to
registered bond requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="H9306338B0AE7402BA6C3B802DCDFC690"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal of exception to denial of deduction
for interest on non-Registered bonds</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBA31F51DCA694694AB49E0B0B1DCDAE7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 163(f) is amended
by striking subparagraph (B) and by redesignating subparagraph (C) as
subparagraph (B).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEC88567B431246E19C8D71F9995067BC"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id721CA996B5E742D6ADF0FD526C1555F4"><enum>(A)</enum><text>Paragraph (2) of section
149(a) is amended by inserting <quote>or</quote> at the end of subparagraph
(A), by striking <quote>, or</quote> at the end of subparagraph (B) and
inserting a period, and by striking subparagraph (C).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAB5FB136934F401EB336A87BE2062218"><enum>(B)</enum><text display-inline="yes-display-inline">Subparagraph (A) of section 163(f)(2) is
amended by inserting <quote>or</quote> at the end of clause (ii), by striking
<quote>, or</quote> at the end of clause (iii) and inserting a period, and by
striking clause (iv).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8B89D38377BC425A8B260E1C4FFF1304"><enum>(C)</enum><text display-inline="yes-display-inline">Subparagraph (B) of section 163(f)(2), as
redesignated by paragraph (1), is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="HD2FE7C54F6514F058E3D83126F26037A"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>, and subparagraph
(B),</quote> in the matter preceding clause (i), and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HE306425F7CDB4060A2068D76979F5CA2"><enum>(ii)</enum><text display-inline="yes-display-inline">by amending clause (i) to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H39947F9505FD4517A98C3E025E1313FA" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H19AA0C593902425CAB8AB70E9EC63663"><enum>(i)</enum><text display-inline="yes-display-inline">such obligation is of a type which the
Secretary has determined by regulations to be used frequently in avoiding
Federal taxes,
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H554DD1787E0443379EF764DE8DA83614"><enum>(D)</enum><text display-inline="yes-display-inline">Sections 165(j)(2)(A) and 1287(b)(1) are
each amended by striking <quote>except that clause (iv) of subparagraph (A),
and subparagraph (B), of such section shall not apply</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4C22E7AFD3154BFFBAA177308234A97D"><enum>(b)</enum><header display-inline="yes-display-inline">Repeal of treatment as portfolio
debt</header>
<paragraph commented="no" display-inline="no-display-inline" id="H47185FF04FB64F49899CB8B018D912DB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 871(h) is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0931A17E5C9F4318BF1E7E476556C945" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H257CA50AEDE44BD383AF4447B1D7A0CE"><enum>(2)</enum><header display-inline="yes-display-inline">Portfolio interest</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>portfolio interest</term> means any interest (including original issue
discount) which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA63E8FA5D2694899A31298D42520D092"><enum>(A)</enum><text display-inline="yes-display-inline">would be subject to tax under subsection
(a) but for this subsection, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H48CA8735863E4A718B7D8254B6C8CB16"><enum>(B)</enum><text display-inline="yes-display-inline">is paid on an obligation—</text>
<clause commented="no" display-inline="no-display-inline" id="H84123F6D8741473D9DD7A1CCD9BF6B77"><enum>(i)</enum><text display-inline="yes-display-inline">which is in registered form, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H65520E548AEE443D85B39E587B225069"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to which—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD8A588FCDA104B5782F041A5B663E8A1"><enum>(I)</enum><text display-inline="yes-display-inline">the United States person who would
otherwise be required to deduct and withhold tax from such interest under
section 1441(a) receives a statement (which meets the requirements of paragraph
(5)) that the beneficial owner of the obligation is not a United States person,
or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H8ECF28E7AA324B7D8882930E3F4977F6"><enum>(II)</enum><text display-inline="yes-display-inline">the Secretary has determined that such a
statement is not required in order to carry out the purposes of this
subsection.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F89B3A0A2A64596B10E13A87C092730"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H7223F9C1CD594D1592186C0E687DC44E"><enum>(A)</enum><text display-inline="yes-display-inline">Section 871(h)(3)(A) is amended by striking
<quote>subparagraph (A) or (B) of</quote>.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HB46278509A05460B9B568F45D960A163"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 881(c) is amended
to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5093CF4C18D64B3D840BFEA5546E8CA1" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H99DD2CBB5C554D4E98E8A99C438B3FC7"><enum>(2)</enum><header display-inline="yes-display-inline">Portfolio interest</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<quote>portfolio interest</quote> means any interest (including original issue
discount) which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF2CFF4D8A8C8494AAEC5E87B6E6B249F"><enum>(A)</enum><text display-inline="yes-display-inline">would be subject to tax under subsection
(a) but for this subsection, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9765EB03770E4FE38E9A54A84CE4A64A"><enum>(B)</enum><text display-inline="yes-display-inline">is paid on an obligation—</text>
<clause commented="no" display-inline="no-display-inline" id="HD48789F76FBB4A409739E80745630902"><enum>(i)</enum><text display-inline="yes-display-inline">which is in registered form, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8A00B4EAE22842D49EB519362B33E585"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to which—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA42A99A959BE4B26AB0B84C75765473B"><enum>(I)</enum><text display-inline="yes-display-inline">the person who would otherwise be required
to deduct and withhold tax from such interest under section 1442(a) receives a
statement which meets the requirements of section 871(h)(5) that the beneficial
owner of the obligation is not a United States person, or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H0BCB19D2A3A946E3B58FA8161F01C135"><enum>(II)</enum><text display-inline="yes-display-inline">the Secretary has determined that such a
statement is not required in order to carry out the purposes of this
subsection.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H672A0BA86AB645729327B038D49851ED"><enum>(c)</enum><header display-inline="yes-display-inline">Dematerialized book entry systems treated
as registered form</header><text display-inline="yes-display-inline">Paragraph
(3) of section 163(f) is amended by inserting <quote>, except that a
dematerialized book entry system or other book entry system specified by the
Secretary shall be treated as a book entry system described in such
section</quote> before the period at the end.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD75BD4A32B54419D896DF4B08DF8AC46"><enum>(d)</enum><header display-inline="yes-display-inline">Repeal of exception to requirement that
Treasury obligations be in registered form</header>
<paragraph commented="no" display-inline="no-display-inline" id="HC763EA4B55344DA989A96ADFA24B1AE3"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (g) of section 3121 of title 31,
United States Code, is amended by striking paragraph (2) and by redesignating
paragraphs (3) and (4) as paragraphs (2) and (3), respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0CDFEAC01A744655865B2D9DDA0BA096"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">Paragraph (1) of section 3121(g) of such
title is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H65D733B99C3744D2A42CB75BB70EF51D"><enum>(A)</enum><text display-inline="yes-display-inline">by adding <quote>or</quote> at the end of
subparagraph (A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H56427A94F428464B931393E068CCAA92"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>; or</quote> at the end
of subparagraph (B) and inserting a period, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H89BD18D4E73B4A5496C0518E5B469931"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subparagraph (C).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H33246AA79B974B9E9CA4CA6AFB080D7C"><enum>(e)</enum><header display-inline="yes-display-inline">Preservation of exception for excise tax
purposes</header><text display-inline="yes-display-inline">Paragraph (1) of
section 4701(b) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H038C2914E1884813A562AFD0A0CD3408" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4D06EB2E77A04C2E8505C20DCE32F482"><enum>(1)</enum><header display-inline="yes-display-inline">Registration-required obligation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H358AD806E3D24FD09CCEFB8DB29918E3"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>registration-required
obligation</term> has the same meaning as when used in section 163(f), except
that such term shall not include any obligation which—</text>
<clause commented="no" display-inline="no-display-inline" id="H1C661A87D57F4CB3AC1C502C575C04DA"><enum>(i)</enum><text display-inline="yes-display-inline">is required to be registered under section
149(a), or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HB7F6CB01F94442B69A5BFB3FE2ABC3D2"><enum>(ii)</enum><text display-inline="yes-display-inline">is described in subparagraph (B).</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAE4BE756678C495A9B21632997D7F7B1"><enum>(B)</enum><header display-inline="yes-display-inline">Certain obligations not
included</header><text display-inline="yes-display-inline">An obligation is
described in this subparagraph if—</text>
<clause commented="no" display-inline="no-display-inline" id="H87BACA73DFB648ED8A21671548ADB024"><enum>(i)</enum><text display-inline="yes-display-inline">there are arrangements reasonably designed
to ensure that such obligation will be sold (or resold in connection with the
original issue) only to a person who is not a United States person,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H7C0C4A4A07254BE9B926187B0C1EDAF0"><enum>(ii)</enum><text display-inline="yes-display-inline">interest on such obligation is payable only
outside the United States and its possessions, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H956F0EA4E1764B64A2253801CE433D52"><enum>(iii)</enum><text display-inline="yes-display-inline">on the face of such obligation there is a
statement that any United States person who holds such obligation will be
subject to limitations under the United States income tax
laws.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1974E936AAE943058814F33C4BF5F3FD"><enum>(f)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to obligations issued after the date which is 2 years
after the date of the enactment of this Act.</text>
</subsection></section></part><part commented="no" id="HA9495B0A1F0F4B9BA0D05CB41CBC008D" level-type="subsequent"><enum>II</enum><header display-inline="yes-display-inline">Under reporting with respect to foreign
assets</header>
<section commented="no" display-inline="no-display-inline" id="HAA90464CABE54ABCBF3A4873C053FEA2" section-type="subsequent-section"><enum>511.</enum><header display-inline="yes-display-inline">Disclosure of information with respect to
foreign financial assets</header>
<subsection commented="no" display-inline="no-display-inline" id="H692D6829EB5740D0A9D9EB6AAE6C86B7"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart A of part III of subchapter A of
chapter 61 is amended by inserting after section 6038C the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H6197468F022A42DF90742DDBEED80E42" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="H9C5F61BD33E94493B3D1840CBF0D23AE" section-type="subsequent-section"><enum>6038D.</enum><header display-inline="yes-display-inline">Information with respect to foreign
financial assets</header>
<subsection commented="no" display-inline="no-display-inline" id="HD852F199451B468F93A65C79A390AF3C"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any individual who, during any taxable
year, holds any interest in a specified foreign financial asset shall attach to
such person’s return of tax imposed by subtitle A for such taxable year the
information described in subsection (c) with respect to each such asset if the
aggregate value of all such assets exceeds $50,000 (or such higher dollar
amount as the Secretary may prescribe).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1B4EE289D0FC44A294AD3F966DD5311D"><enum>(b)</enum><header display-inline="yes-display-inline">Specified foreign financial
assets</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>specified foreign financial asset</term> means—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H5868F7ED48C144F78F8704E1998F4BAA"><enum>(1)</enum><text display-inline="yes-display-inline">any financial account (as defined in
section 1471(d)(2)) maintained by a foreign financial institution (as defined
in section 1471(d)(4)), and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFA11445EAFAE4605AB296C8D96C27F10"><enum>(2)</enum><text display-inline="yes-display-inline">any of the following assets which are not
held in an account maintained by a financial institution (as defined in section
1471(d)(5))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDEEB18F1747D460F8F72834AD481EF62"><enum>(A)</enum><text display-inline="yes-display-inline">any stock or security issued by a person
other than a United States person,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCF22D5B5CB7E4AE4B0DD1731AE064625"><enum>(B)</enum><text display-inline="yes-display-inline">any financial instrument or contract held
for investment that has an issuer or counterparty which is other than a United
States person, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7444234E7D1349F89DA8C9E33EA352A6"><enum>(C)</enum><text display-inline="yes-display-inline">any interest in a foreign entity (as
defined in section 1473).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H14FD26EBC7FA48B880110158CBD20353"><enum>(c)</enum><header display-inline="yes-display-inline">Required information</header><text display-inline="yes-display-inline">The information described in this
subsection with respect to any asset is:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFFC64CE9793F4B6CA121A152495B66A0"><enum>(1)</enum><text display-inline="yes-display-inline">In the case of any account, the name and
address of the financial institution in which such account is maintained and
the number of such account.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAADA54E74E5A465F99219D0E737A19ED"><enum>(2)</enum><text display-inline="yes-display-inline">In the case of any stock or security, the
name and address of the issuer and such information as is necessary to identify
the class or issue of which such stock or security is a part.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H05FB1A95821E4F71B9ACF937528D230A"><enum>(3)</enum><text display-inline="yes-display-inline">In the case of any other instrument,
contract, or interest—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4DF95DD121CB4868911A633CD39EA042"><enum>(A)</enum><text display-inline="yes-display-inline">such information as is necessary to
identify such instrument, contract, or interest, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8CCEC27D8A7447D7BC8A84E6F3D9BB18"><enum>(B)</enum><text display-inline="yes-display-inline">the names and addresses of all issuers and
counterparties with respect to such instrument, contract, or interest.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H765330DAE40D4C099ADA3B13C08967B5"><enum>(4)</enum><text display-inline="yes-display-inline">The maximum value of the asset during the
taxable year.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H69E6A8927804460B9821267705762596"><enum>(d)</enum><header display-inline="yes-display-inline">Penalty for failure To disclose</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBCEC55EEB69D401397240430A2B307A7"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If any individual fails to furnish the
information described in subsection (c) with respect to any taxable year at the
time and in the manner described in subsection (a), such person shall pay a
penalty of $10,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6A2AF0C9CB6F491FA79F46730EC9600E"><enum>(2)</enum><header display-inline="yes-display-inline">Increase in penalty where failure continues
after notification</header><text display-inline="yes-display-inline">If any
failure described in paragraph (1) continues for more than 90 days after the
day on which the Secretary mails notice of such failure to the individual, such
individual shall pay a penalty (in addition to the penalties under paragraph
(1)) of $10,000 for each 30-day period (or fraction thereof) during which such
failure continues after the expiration of such 90-day period. The penalty
imposed under this paragraph with respect to any failure shall not exceed
$50,000.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H98EE59A493DF4E5BAC8579AEC6A66306"><enum>(e)</enum><header display-inline="yes-display-inline">Presumption that value of specified foreign
financial assets exceeds dollar threshold</header><text display-inline="yes-display-inline">If—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6EA0BDAB86464F1DBAD991D061E7B807"><enum>(1)</enum><text display-inline="yes-display-inline">the Secretary determines that an individual
has an interest in one or more specified foreign financial assets, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7FA1142D69BD42539A63B4D8272CF82A"><enum>(2)</enum><text display-inline="yes-display-inline">such individual does not provide sufficient
information to demonstrate the aggregate value of such assets,</text>
</paragraph><continuation-text commented="no" continuation-text-level="subsection">then
the aggregate value of such assets shall be treated as being in excess of
$50,000 (or such higher dollar amount as the Secretary prescribes for purposes
of subsection (a)) for purposes of assessing the penalties imposed under this
section.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="HB64DB9E0B0FB44F080C92CF225D6D884"><enum>(f)</enum><header display-inline="yes-display-inline">Application to certain
entities</header><text display-inline="yes-display-inline">To the extent
provided by the Secretary in regulations or other guidance, the provisions of
this section shall apply to any domestic entity which is formed or availed of
for purposes of holding, directly or indirectly, specified foreign financial
assets, in the same manner as if such entity were an individual.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H177D17F2BEF94D45B98869E35A3A4E87"><enum>(g)</enum><header display-inline="yes-display-inline">Reasonable cause exception</header><text display-inline="yes-display-inline">No penalty shall be imposed by this section
on any failure which is shown to be due to reasonable cause and not due to
willful neglect. The fact that a foreign jurisdiction would impose a civil or
criminal penalty on the taxpayer (or any other person) for disclosing the
required information is not reasonable cause.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HA872A18EE77547B5B5E53964D72FA900"><enum>(h)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such
regulations or other guidance as may be necessary or appropriate to carry out
the purposes of this section, including regulations or other guidance which
provide appropriate exceptions from the application of this section in the case
of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC5FA92DCC2504F06A241FB7E9A65EEEB"><enum>(1)</enum><text display-inline="yes-display-inline">classes of assets identified by the
Secretary, including any assets with respect to which the Secretary determines
that disclosure under this section would be duplicative of other
disclosures,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAF36F05BB4604B768FA61DD29389FA09"><enum>(2)</enum><text display-inline="yes-display-inline">nonresident aliens, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H98A1B444EC70406EB3C54A64B3464E1D"><enum>(3)</enum><text display-inline="yes-display-inline">bona fide residents of any possession of
the United
States.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4CAC82077AB743B99863EF243879AE50"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart A of part
III of subchapter A of chapter 61 is amended by inserting after the item
relating to section 6038C the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H71F29A2EF55E4812818181B840726BEF" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H6197468F022A42DF90742DDBEED80E42" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry bold="off" idref="H9C5F61BD33E94493B3D1840CBF0D23AE" level="section">Sec. 6038D. Information with respect to foreign
financial
assets.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4C27983C5B004618A895EDD56053A83E"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H2585EEA13538484395E1B30ECF9B5268" section-type="subsequent-section"><enum>512.</enum><header display-inline="yes-display-inline">Penalties for underpayments attributable to
undisclosed foreign financial assets</header>
<subsection commented="no" display-inline="no-display-inline" id="H3E9F4CA52D3B4907A5E5001302FACE51"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 6662, as amended by this Act, is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEF0D0C8C3BC6481F9539F599D37B6268"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b), by inserting after
paragraph (6) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H01E9D236C37D4B12BF1239B2D41E0295" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HD9A49DAC4720460DBEA3C54B12B8AD6E"><enum>(7)</enum><text display-inline="yes-display-inline">Any undisclosed foreign financial asset
understatement.</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1086A9E7F0F744F9A8FED3825BF44D2D"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H954D3B766A614AFCA0867B71BB956AAD" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HCA4F46507AC44E4182EB8AC3BA5BFF90"><enum>(j)</enum><header display-inline="yes-display-inline">Undisclosed foreign financial asset
understatement</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0C0BC301C14D4E9E84C342EB9253B14C"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this section, the term
<term>undisclosed foreign financial asset understatement</term> means, for any
taxable year, the portion of the understatement for such taxable year which is
attributable to any transaction involving an undisclosed foreign financial
asset.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF371E07EFFB34061B22AEC9A532E5F62"><enum>(2)</enum><header display-inline="yes-display-inline">Undisclosed foreign financial
asset</header><text display-inline="yes-display-inline">For purposes of this
subsection, the term <term>undisclosed foreign financial asset</term> means,
with respect to any taxable year, any asset with respect to which information
was required to be provided under section 6038, 6038B, 6038D, 6046A, or 6048
for such taxable year but was not provided by the taxpayer as required under
the provisions of those sections.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA895266686B24780BFF1C00A7313E76B"><enum>(3)</enum><header display-inline="yes-display-inline">Increase in penalty for undisclosed foreign
financial asset understatements</header><text display-inline="yes-display-inline">In the case of any portion of an
underpayment which is attributable to any undisclosed foreign financial asset
understatement, subsection (a) shall be applied with respect to such portion by
substituting <quote>40 percent</quote> for <quote>20
percent</quote>.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7BCBE760AE284C84B05EDD8BF3150B51"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
Date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H00F332B376974B9A937516E3B9C157E9" section-type="subsequent-section"><enum>513.</enum><header display-inline="yes-display-inline">Modification of statute of limitations for
significant omission of income in connection with foreign assets</header>
<subsection commented="no" display-inline="no-display-inline" id="HF8E6F29459B445EFB3C91D1C4B3C31B4"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of statute of
limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA32E7896795A48A39E5292C2A99BFEBF"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 6501(e) is amended
by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C),
respectively, and by inserting before subparagraph (B) (as so redesignated) the
following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H3AD88BAA0AEC4FD8BB4BD330ED661435" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HB783F186267446F2A79BD1EE3851515F"><enum>(A)</enum><header display-inline="yes-display-inline">General rule</header><text display-inline="yes-display-inline">If the taxpayer omits from gross income an
amount properly includible therein and—</text>
<clause commented="no" display-inline="no-display-inline" id="HD1F15BB55CB04EF89362611B2B4E67A5"><enum>(i)</enum><text display-inline="yes-display-inline">such amount is in excess of 25 percent of
the amount of gross income stated in the return, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H1DD5FE21C9394F37A466CFCC6FC2E3A3"><enum>(ii)</enum><text display-inline="yes-display-inline">such amount—</text>
<subclause commented="no" display-inline="no-display-inline" id="HD20CE2AD4D184845925EC4D648123B40"><enum>(I)</enum><text display-inline="yes-display-inline">is attributable to one or more assets with
respect to which information is required to be reported under section 6038D (or
would be so required if such section were applied without regard to the dollar
threshold specified in subsection (a) thereof and without regard to any
exceptions provided pursuant to subsection (h)(1) thereof), and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF9B25977CB024D0298098A7CC51D6838"><enum>(II)</enum><text display-inline="yes-display-inline">is in excess of $5,000,</text>
</subclause></clause><continuation-text commented="no" continuation-text-level="subparagraph">the tax may be assessed, or a proceeding
in court for collection of such tax may be begun without assessment, at any
time within 6 years after the return was
filed.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB2A61E5C505A452D86104B6D5A13188C"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HA2ADD97AEDDD4AA4B7E4F7FCC67D9F3F"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (B) of section 6501(e)(1), as
redesignated by paragraph (1), is amended by striking all that precedes clause
(i) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0298DA60EF2B41CB824E71FAE8D893EF" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HD92C9C2DFDB64D768FE7254964692E90"><enum>(B)</enum><header display-inline="yes-display-inline">Determination of gross income</header><text display-inline="yes-display-inline">For purposes of subparagraph
(A)—</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD28A058C13624E36ABC5E374E0CB2115"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6229(c) is amended
by striking <quote>which is in excess of 25 percent of the amount of gross
income stated in its return</quote> and inserting <quote>and such amount is
described in clause (i) or (ii) of section 6501(e)(1)(A)</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFD2B4E975B8E495183F7BCA9BCE06B0A"><enum>(b)</enum><header display-inline="yes-display-inline">Additional reports subject to extended
period</header><text display-inline="yes-display-inline">Paragraph (8) of
section 6501(c) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2FFD2001FFA842339BD95780B432F73B"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>pursuant to an election
under section 1295(b) or</quote> before <quote>under section
6038</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H64F92BD2E4F3440C8FA88245FA4938E3"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>1298(f),</quote> before
<quote>6038</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H92123C4B8CB5412C9F3EF6A9AC7118A5"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting <quote>6038D,</quote> after
<quote>6038B,</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H0F0C48068F5847BAA9CCAE4269D0D4A9"><enum>(c)</enum><header display-inline="yes-display-inline">Clarifications related to failure To
disclose foreign transfers</header><text display-inline="yes-display-inline">Paragraph (8) of section 6501(c) is amended
by striking <quote>event</quote> and inserting <quote>tax return,
event,</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H66C145A8D88B405190D9F2538FA5760D"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6E638FB1C65D46DCA635C63114F88F0A"><enum>(1)</enum><text display-inline="yes-display-inline">returns filed after the date of the
enactment of this Act; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H171CB1EA0AF046209173B110ECEFC817"><enum>(2)</enum><text display-inline="yes-display-inline">returns filed on or before such date if the
period specified in section 6501 of the Internal Revenue Code of 1986
(determined without regard to such amendments) for assessment of such taxes has
not expired as of such date.</text>
</paragraph></subsection></section></part><part commented="no" id="HE1099B341B534219B9ECB484343590D6" level-type="subsequent"><enum>III</enum><header display-inline="yes-display-inline">Other disclosure provisions </header>
<section commented="no" display-inline="no-display-inline" id="H79BECA72B3EC46218BA9811DC94E2CCE" section-type="subsequent-section"><enum>521.</enum><header display-inline="yes-display-inline">Reporting of activities with respect to
passive foreign investment companies</header>
<subsection commented="no" display-inline="no-display-inline" id="HFFC484D306FC4B819D40936AB0E190FB"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 1298 is amended by redesignating
subsection (f) as subsection (g) and by inserting after subsection (e) the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0A7E8425A98443629C138DC6FCDD4CF7" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HD8674AFA2DE94013A6CF2724F9404F17"><enum>(f)</enum><header display-inline="yes-display-inline">Reporting requirement</header><text display-inline="yes-display-inline">Except as otherwise provided by the
Secretary, each United States person who is a shareholder of a passive foreign
investment company shall file an annual report containing such information as
the Secretary may
require.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE0629B1C97924CCFB09FB1BB8245E25C"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subsection (e) of section 1291 is amended
by striking <quote>, (d), and (f)</quote> and inserting <quote>and
(d)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H9549C759DE414DE4932A0268627C0011"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section take effect on the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H46F01FC114AA47D391BC9ED841EFDF81" section-type="subsequent-section"><enum>522.</enum><header display-inline="yes-display-inline">Secretary permitted to require financial
institutions to file certain returns related to withholding on foreign
transfers electronically</header>
<subsection commented="no" display-inline="no-display-inline" id="HDE0574D66A8C4A1FAE5425945973C134"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (e) of section 6011 is amended
by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HAB7BC632F0C141888A896880489DB7AD" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC7D6EF4563A442F08F90FD019938DF09"><enum>(4)</enum><header display-inline="yes-display-inline">Special rule for returns filed by financial
institutions with respect to withholding on foreign transfers</header><text display-inline="yes-display-inline">The numerical limitation under paragraph
(2)(A) shall not apply to any return filed by a financial institution (as
defined in section 1471(d)(5)) with respect to tax for which such institution
is made liable under section 1461 or
1474(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H612CD74A5C0E49CCB13EFAB2E2A6A166"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subsection (c) of section 6724 is amended
by inserting <quote>or with respect to a return described in section
6011(e)(4)</quote> before the end period.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H918B61A883BA4D86B5ABA253D480246F"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to returns the due date for which (determined without
regard to extensions) is after the date of the enactment of this Act.</text>
</subsection></section></part><part commented="no" id="H70C1E2D1FB754918B54B859F66D43406" level-type="subsequent"><enum>IV</enum><header display-inline="yes-display-inline">Provisions related to foreign
trusts</header>
<section commented="no" display-inline="no-display-inline" id="H3D0C935A38624A13A8103746BE818EBB" section-type="subsequent-section"><enum>531.</enum><header display-inline="yes-display-inline">Clarifications with respect to foreign
trusts which are treated as having a United States beneficiary</header>
<subsection commented="no" display-inline="no-display-inline" id="HBFCD91CA23954653A3EDD6E8616DD0B1"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 679(c) is amended
by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H50F7A513F69B42219582CEA69669D4C8" reported-display-style="italic" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">For purposes of subparagraph (A), an
amount shall be treated as accumulated for the benefit of a United States
person even if the United States person’s interest in the trust is contingent
on a future
event.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE436AEC206F944AAB731A838684ED5C3"><enum>(b)</enum><header display-inline="yes-display-inline">Clarification regarding discretion To
identify beneficiaries</header><text display-inline="yes-display-inline">Subsection (c) of section 679 is amended by
adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HE218380F4D6149C7A29CBF93FF5AA22B" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H34989448CCA341FEA30CD0C0508AD9AD"><enum>(4)</enum><header display-inline="yes-display-inline">Special rule in case of discretion to
identify beneficiaries</header><text display-inline="yes-display-inline">For
purposes of paragraph (1)(A), if any person has the discretion (by authority
given in the trust agreement, by power of appointment, or otherwise) of making
a distribution from the trust to, or for the benefit of, any person, such trust
shall be treated as having a beneficiary who is a United States person
unless—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H98FA49FC97A1450A86450036938DD34B"><enum>(A)</enum><text display-inline="yes-display-inline">the terms of the trust specifically
identify the class of persons to whom such distributions may be made,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDA4F7CC54BD34176AE48FC4F3CF9AB81"><enum>(B)</enum><text display-inline="yes-display-inline">none of those persons are United States
persons during the taxable
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H31CBB9C9E408429F9B231366E321CFC9"><enum>(c)</enum><header display-inline="yes-display-inline">Clarification that certain agreements and
understandings are terms of the trust</header><text display-inline="yes-display-inline">Subsection (c) of section 679, as amended
by subsection (b), is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8CECA43C4EC0433FA01BE6AF8254539C" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H73296AD6D7504770931A52F0BDE2B471"><enum>(5)</enum><header display-inline="yes-display-inline">Certain agreements and understandings
treated as terms of the trust</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(A), if any
United States person who directly or indirectly transfers property to the trust
is directly or indirectly involved in any agreement or understanding (whether
written, oral, or otherwise) that may result in the income or corpus of the
trust being paid or accumulated to or for the benefit of a United States
person, such agreement or understanding shall be treated as a term of the
trust.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HBACB885C44BC45058458FF5E23BB40D0" section-type="subsequent-section"><enum>532.</enum><header display-inline="yes-display-inline">Presumption that foreign trust has United
States beneficiary</header>
<subsection commented="no" display-inline="no-display-inline" id="HF8ED79EE0CCB4895BAE468DC637AA990"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 679 is amended by redesignating
subsection (d) as subsection (e) and inserting after subsection (c) the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H32C936696490424698DECBD201C8B8B5" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H70E701C658034400A04DA2553BE7EF6D"><enum>(d)</enum><header display-inline="yes-display-inline">Presumption that foreign trust has United
States beneficiary</header><text display-inline="yes-display-inline">If a
United States person directly or indirectly transfers property to a foreign
trust (other than a trust described in section 6048(a)(3)(B)(ii)), the
Secretary may treat such trust as having a United States beneficiary for
purposes of applying this section to such transfer unless such person—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA49CACF63C1C4374A8C159445A97D9CF"><enum>(1)</enum><text display-inline="yes-display-inline">submits such information to the Secretary
as the Secretary may require with respect to such transfer, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6174F593951941F2A74CF930DB6F9B77"><enum>(2)</enum><text display-inline="yes-display-inline">demonstrates to the satisfaction of the
Secretary that such trust satisfies the requirements of subparagraphs (A) and
(B) of subsection
(c)(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD150071E5E8D4CCC8B7152455FC31A62"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to transfers of property after the date of the
enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H19ADCCBC745A49369EAE347426ABA604" section-type="subsequent-section"><enum>533.</enum><header display-inline="yes-display-inline">Uncompensated use of trust
property</header>
<subsection commented="no" display-inline="no-display-inline" id="H499E2A66CD0A487BAA9911E211B9DF38"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 643(i) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF550BABD7AF84BA59D0E8C5C71C00462"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>directly or indirectly
to</quote> and inserting <quote>(or permits the use of any other trust
property) directly or indirectly to or by</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H834AB052C8204A2BAA3CF15B4B15A96D"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>(or the fair market
value of the use of such property)</quote> after <quote>the amount of such
loan</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H02428CC3D542469683BA9109467DA3FE"><enum>(b)</enum><header display-inline="yes-display-inline">Exception for compensated use</header><text display-inline="yes-display-inline">Paragraph (2) of section 643(i) is amended
by adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HCDFC6E5024134CFD865FC9FAB1543CDA" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H918778FB9F7846A0A045C550D9948D78"><enum>(E)</enum><header display-inline="yes-display-inline">Exception for compensated use of
property</header><text display-inline="yes-display-inline">In the case of the
use of any trust property other than a loan of cash or marketable securities,
paragraph (1) shall not apply to the extent that the trust is paid the fair
market value of such use within a reasonable period of time of such
use.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H457FA3549E134CAE9B0B57AE2BFB8A1F"><enum>(c)</enum><header display-inline="yes-display-inline">Application to grantor trusts</header><text display-inline="yes-display-inline">Subsection (c) of section 679, as amended
by this Act, is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H6DC1931762BD40A798CFED43FFF04F24" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4043FD74B482485EBB20E3B54D35938C"><enum>(6)</enum><header display-inline="yes-display-inline">Uncompensated use of trust property treated
as a payment</header><text display-inline="yes-display-inline">For purposes of
this subsection, a loan of cash or marketable securities (or the use of any
other trust property) directly or indirectly to or by any United States person
(whether or not a beneficiary under the terms of the trust) shall be treated as
paid or accumulated for the benefit of a United States person. The preceding
sentence shall not apply to the extent that the United States person repays the
loan at a market rate of interest (or pays the fair market value of the use of
such property) within a reasonable period of
time.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H15BEC0D236514DB5A0937B79B3A9FC04"><enum>(d)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">Paragraph (3) of section 643(i) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2AEC1533A7804ECE81855916BDD21F95"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(or use of
property)</quote> after <quote>If any loan</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H21BC742BF01140EAB981D48335B76661"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>or the return of such
property</quote> before <quote>shall be disregarded</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H77322D42566943008374FB807AEE1360"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">regarding loan principal</header-in-text></quote>
in the heading thereof.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDCB139F12F544A5BADD7B8DA63720D1B"><enum>(e)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to loans made, and uses of property, after the date of
the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H838E320ACC9C4EAAA8AB2D9B679AB8DC" section-type="subsequent-section"><enum>534.</enum><header display-inline="yes-display-inline">Reporting requirement of United States
owners of foreign trusts</header>
<subsection commented="no" display-inline="no-display-inline" id="H3BF82480265E497CBF4042D7D531C221"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 6048(b) is amended
by inserting <quote>shall submit such information as the Secretary may
prescribe with respect to such trust for such year and</quote> before
<quote>shall be responsible to ensure</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBBBD3632D15449B7BEB44125D47D60C3"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to taxable years beginning after the date of the
enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HBA2F2E14E4484C3FA5FF544F383FA430" section-type="subsequent-section"><enum>535.</enum><header display-inline="yes-display-inline">Minimum penalty with respect to failure to
report on certain foreign trusts</header>
<subsection commented="no" display-inline="no-display-inline" id="H6890C97F1078444DACD29F92202CF280"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (a) of section 6677 is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBBDCDB8C90384487B05B642828A0B9C0"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>the greater of $10,000
or</quote> before <quote>35 percent</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H74E14847CBB7415B9768438C893D6046"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the last sentence and inserting
the following: <quote>At such time as the gross reportable amount with respect
to any failure can be determined by the Secretary, any subsequent penalty
imposed under this subsection with respect to such failure shall be reduced as
necessary to assure that the aggregate amount of such penalties do not exceed
the gross reportable amount (and to the extent that such aggregate amount
already exceeds the gross reportable amount the Secretary shall refund such
excess to the taxpayer).</quote></text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA2DD36382A6844488BC55ADCAE4C0860"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to notices and returns required to be filed after
December 31, 2009.</text>
</subsection></section></part><part commented="no" id="HE400E6B192AD41FD96A19D9167E829B9" level-type="subsequent"><enum>V</enum><header display-inline="yes-display-inline">Substitute dividends and dividend
equivalent payments received by foreign persons treated as dividends</header>
<section commented="no" display-inline="no-display-inline" id="H9DD452CAD2504B11AD184C43908D11F2" section-type="subsequent-section"><enum>541.</enum><header display-inline="yes-display-inline">Substitute dividends and dividend
equivalent payments received by foreign persons treated as dividends</header>
<subsection commented="no" display-inline="no-display-inline" id="HA6A335BB93E4433C870F4C0472CCFBF2"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 871 is amended by redesignating
subsection (l) as subsection (m) and by inserting after subsection (k) the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4AB58BD2126C4FD38176B5239E2E763E" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HCD77B325EABC4DCBA8B1B37C172F6FD8"><enum>(l)</enum><header display-inline="yes-display-inline">Treatment of dividend equivalent
payments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA67D2AE15A8042F38036DFD7093FD1D5"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of subsection (a), sections
881 and 4948(a), and chapters 3 and 4, a dividend equivalent shall be treated
as a dividend from sources within the United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H41A8C73BEBA441D8929ABCA6C8796192"><enum>(2)</enum><header display-inline="yes-display-inline">Dividend equivalent</header><text display-inline="yes-display-inline">For purposes of this subsection, the term
<term>dividend equivalent</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2545778CAA1E4C34A81A07CA53C8DD12"><enum>(A)</enum><text display-inline="yes-display-inline">any substitute dividend made pursuant to a
securities lending or a sale-repurchase transaction that (directly or
indirectly) is contingent upon, or determined by reference to, the payment of a
dividend from sources within the United States,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H158576107D6B46CA9BB95072ECB39EF2"><enum>(B)</enum><text display-inline="yes-display-inline">any payment made pursuant to a specified
notional principal contract that (directly or indirectly) is contingent upon,
or determined by reference to, the payment of a dividend from sources within
the United States, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCFAC23FD64EF49399F441A49247E0751"><enum>(C)</enum><text display-inline="yes-display-inline">any other payment determined by the
Secretary to be substantially similar to a payment described in subparagraph
(A) or (B).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H80A35B93ACEE42B29E66643711189DD8"><enum>(3)</enum><header display-inline="yes-display-inline">Specified notional principal
contract</header><text display-inline="yes-display-inline">For purposes of this
subsection, the term <term>specified notional principal contract</term>
means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2F271A2376194BD18E0CF96835C0AE1B"><enum>(A)</enum><text display-inline="yes-display-inline">any notional principal contract if—</text>
<clause commented="no" display-inline="no-display-inline" id="H8DB1B51041C04922B8342B9BB4CC3397"><enum>(i)</enum><text display-inline="yes-display-inline">in connection with entering into such
contract, any long party to the contract transfers the underlying security to
any short party to the contract,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HAA6D5BD967754DAD8886375E9FB7A369"><enum>(ii)</enum><text display-inline="yes-display-inline">in connection with the termination of such
contract, any short party to the contract transfers the underlying security to
any long party to the contract,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8F07E2C9600B468B998DF2BF461CE62B"><enum>(iii)</enum><text display-inline="yes-display-inline">the underlying security is not readily
tradable on an established securities market,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2DA1CC0D876A43C481B9CFBE6CEE344D"><enum>(iv)</enum><text display-inline="yes-display-inline">in connection with entering into such
contract, the underlying security is posted as collateral by any short party to
the contract with any long party to the contract, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H347AE265837E47C6AF4613018C76CEC6"><enum>(v)</enum><text display-inline="yes-display-inline">such contract is identified by the
Secretary as a specified notional principal contract,</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA8051ABBDD1B40B189B7A1ACA41073A5"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of payments made after the date
which is 2 years after the date of the enactment of this subsection, any
notional principal contract unless the Secretary determines that such contract
is of a type which does not have the potential for tax avoidance.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBF30678EFAF74EAB85A3986EC88A3906"><enum>(4)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of paragraph (3)(A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H585B2D5A6B2B42F6BF549AD78E356471"><enum>(A)</enum><header display-inline="yes-display-inline">Long party</header><text display-inline="yes-display-inline">The term <term>long party</term> means,
with respect to any underlying security of any notional principal contract, any
party to the contract which is entitled to receive any payment pursuant to such
contract which is contingent upon, or determined by reference to, the payment
of a dividend from sources within the United States with respect to such
underlying security.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1AEF95F77B114F2681494A00FC20C39B"><enum>(B)</enum><header display-inline="yes-display-inline">Short party</header><text display-inline="yes-display-inline">The term <term>short party</term> means,
with respect to any underlying security of any notional principal contract, any
party to the contract which is not a long party with respect to such underlying
security.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HFB4D04E430084332A87012F2AD2910A8"><enum>(C)</enum><header display-inline="yes-display-inline">Underlying security</header><text display-inline="yes-display-inline">The term <term>underlying security</term>
means, with respect to any notional principal contract, the security with
respect to which the dividend referred to in paragraph (2)(B) is paid. For
purposes of this paragraph, any index or fixed basket of securities shall be
treated as a single security.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1C117BF18DF14794BEDF9360E5B91382"><enum>(5)</enum><header display-inline="yes-display-inline">Payments determined on gross
basis</header><text display-inline="yes-display-inline">For purposes of this
subsection, the term <term>payment</term> includes any gross amount which is
used in computing any net amount which is transferred to or from the
taxpayer.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H544578B623D54371936BA993535B9AE4"><enum>(6)</enum><header display-inline="yes-display-inline">Prevention of
over-withholding</header><text display-inline="yes-display-inline">In the case
of any chain of dividend equivalents one or more of which is subject to tax
under subsection (a) or section 881, the Secretary may reduce such tax, but
only to the extent that the taxpayer can establish that such tax has been paid
with respect to another dividend equivalent in such chain, or is not otherwise
due, or as the Secretary determines is appropriate to address the role of
financial intermediaries in such chain. For purposes of this paragraph, a
dividend shall be treated as a dividend equivalent.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1AF18C17BECC47799B081396BB6AE71C"><enum>(7)</enum><header display-inline="yes-display-inline">Coordination with chapters 3 and
4</header><text display-inline="yes-display-inline">For purposes of chapters 3
and 4, each person that is a party to any contract or other arrangement that
provides for the payment of a dividend equivalent shall be treated as having
control of such
payment.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD8915E350B8046288ABF95E648891895"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to payments made on or after the date that is 180 days
after the date of the enactment of this Act.</text>
</subsection></section></part></subtitle><subtitle id="id559BFD1799B14E66A858028804520C99"><enum>B</enum><header>Delay in application of
worldwide allocation of interest</header>
<section commented="no" display-inline="no-display-inline" id="HF73F9C6D325A475BAC3F77D707676E6F" section-type="subsequent-section"><enum>551.</enum><header>Delay in application
of worldwide allocation of interest</header>
<subsection id="H24E8A2E4A0A548DFA0DD3AC63C83BF89"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraphs (5)(D) and
(6) of section 864(f) are each amended by striking <quote>December 31,
2017</quote> and inserting <quote>December 31, 2019</quote>.</text>
</subsection><subsection id="HF7601CB4A3BD4766B2CEF2E2DC57D94A"><enum>(b)</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></subtitle>
Secretary