[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2847 Enrolled Bill (ENR)]
H.R.2847
One Hundred Eleventh Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the fifth day of January, two thousand and ten
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Hiring Incentives
to Restore Employment Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents 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.
Subtitle E--Disadvantaged Business Enterprises
Sec. 451. Disadvantaged business enterprises.
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.
Subtitle C--Budgetary Provisions
Sec. 561. Time for payment of corporate estimated taxes.
Sec. 562. PAYGO Compliance.
TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS
SEC. 101. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED WORKERS.
(a) In General.--Section 3111 is amended by adding at the end the
following new subsection:
``(d) Special Exemption for Certain Individuals Hired in 2010.--
``(1) In general.--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--
``(A) in a trade or business of such qualified employer, or
``(B) 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.
``(2) Qualified employer.--For purposes of this subsection--
``(A) In general.--The term `qualified employer' means any
employer other than the United States, any State, or any
political subdivision thereof, or any instrumentality of the
foregoing.
``(B) Treatment of employees of post-secondary educational
institutions.--Notwithstanding subparagraph (A), the term
`qualified employer' includes any employer which is a public
institution of higher education (as defined in section 101(b)
of the Higher Education Act of 1965).
``(3) Qualified individual.--For purposes of this subsection,
the term `qualified individual' means any individual who--
``(A) begins employment with a qualified employer after
February 3, 2010, and before January 1, 2011,
``(B) 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,
``(C) 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
``(D) is not an individual described in section 51(i)(1)
(applied by substituting `qualified employer' for `taxpayer'
each place it appears).
``(4) Election.--A qualified employer may elect to have this
subsection not apply. Such election shall be made in such manner as
the Secretary may require.
``(5) Special rule for first calendar quarter of 2010.--
``(A) Nonapplication of exemption during first quarter.--
Paragraph (1) shall not apply with respect to wages paid during
the first calendar quarter of 2010.
``(B) Crediting of first quarter exemption during second
quarter.--The amount by which the tax imposed under subsection
(a) would (but for subparagraph (A)) have been reduced with
respect to wages paid by a qualified employer during the first
calendar quarter of 2010 shall be treated as a payment against
the tax imposed under subsection (a) with respect to the
qualified employer for the second calendar quarter of 2010
which is made on the date that such tax is due.''.
(b) Coordination With Work Opportunity Credit.--Section 51(c) is
amended by adding at the end the following new paragraph:
``(5) Coordination with payroll tax forgiveness.--The term
`wages' 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.''.
(c) Transfers to Federal Old-Age and Survivors Insurance Trust
Fund.--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.
(d) Application to Railroad Retirement Taxes.--
(1) In general.--Section 3221 of the Internal Revenue Code of
1986 is amended by redesignating subsection (c) as subsection (d)
and by inserting after subsection (b) the following new subsection:
``(c) Special Rate for Certain Individuals Hired in 2010.--
``(1) In general.--In the case of compensation paid by a
qualified employer during the period beginning on the day after the
date of the enactment of this subsection and ending on December 31,
2010, with respect to having a qualified individual in the
employer's employ for services rendered to such qualified employer,
the applicable percentage under subsection (a) shall be equal to
the rate of tax in effect under section 3111(b) for the calendar
year.
``(2) Qualified employer.--The term `qualified employer' means
any employer other than the United States, any State, or any
political subdivision thereof, or any instrumentality of the
foregoing.
``(3) Qualified individual.--For purposes of this subsection,
the term `qualified individual' means any individual who--
``(A) begins employment with a qualified employer after
February 3, 2010, and before January 1, 2011,
``(B) 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,
``(C) 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
``(D) is not an individual described in section 51(i)(1)
(applied by substituting `qualified employer' for `taxpayer'
each place it appears).
``(4) Election.--A qualified employer may elect to have this
subsection not apply. Such election shall be made in such manner as
the Secretary may require.
``(5) Special rule for first calendar quarter of 2010.--
``(A) Nonapplication of exemption during first quarter.--
Paragraph (1) shall not apply with respect to compensation paid
during the first calendar quarter of 2010.
``(B) Crediting of first quarter exemption during second
quarter.--The amount by which the tax imposed under subsection
(a) would (but for subparagraph (A)) have been reduced with
respect to compensation paid by a qualified employer during the
first calendar quarter of 2010 shall be treated as a payment
against the tax imposed under subsection (a) with respect to
the qualified employer for the second calendar quarter of 2010
which is made on the date that such tax is due.''.
(2) Transfers to social security equivalent benefit account.--
There are hereby appropriated to the Social Security Equivalent
Benefit Account established under section 15A(a) of the Railroad
Retirement Act of 1974 (45 U.S.C. 231n-1(a)) amounts equal to the
reduction in revenues to the Treasury by reason of the amendments
made by paragraph (1). 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 Account had such
amendments not been enacted.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this subsection shall apply to wages paid after
the date of the enactment of this Act.
(2) Railroad retirement taxes.--The amendments made by
subsection (d) shall apply to compensation paid after the date of
the enactment of this Act.
SEC. 102. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY HIRED
INDIVIDUALS IN 2010.
(a) In General.--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, with respect to each retained
worker with respect to which subsection (b)(2) is first satisfied
during such taxable year, by the lesser of--
(1) $1,000, or
(2) 6.2 percent of the wages (as defined in section 3401(a))
paid by the taxpayer to such retained worker during the 52
consecutive week period referred to in subsection (b)(2).
(b) Retained Worker.--For purposes of this section, the term
``retained worker'' means any qualified individual (as defined in
section 3111(d)(3) or section 3221(c)(3) of the Internal Revenue Code
of 1986)--
(1) who was employed by the taxpayer on any date during the
taxable year,
(2) who was so employed by the taxpayer for a period of not
less than 52 consecutive weeks, and
(3) whose wages (as defined in section 3401(a)) 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.
(c) Limitation on Carrybacks.--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.
(d) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the Treasury
shall pay to each possession of the United States with a mirror
code tax system amounts equal to the loss to that possession by
reason of the application of this section (other than this
subsection). Such amounts shall be determined by the Secretary
of the Treasury based on information provided by the government
of the respective possession.
(B) Other possessions.--The Secretary of the Treasury shall
pay to each possession of the United States which does not have
a mirror code tax system amounts estimated by the Secretary of
the Treasury as being equal to the aggregate benefits that
would have been provided to residents of such possession by
reason of the application of this section (other than this
subsection) if a mirror code tax system had been in effect in
such possession. The preceding sentence shall not apply with
respect to any possession of the United States unless such
possession has a plan, which has been approved by the Secretary
of the Treasury, under which such possession will promptly
distribute such payments to the residents of such possession.
(2) Coordination with credit allowed against united states
income taxes.--No increase in the credit determined under section
38(b) of the Internal Revenue Code of 1986 against United States
income taxes for any taxable year determined under subsection (a)
shall be taken into account with respect to any person--
(A) to whom a credit is allowed against taxes imposed by
the possession by reason of this section for such taxable year,
or
(B) who is eligible for a payment under a plan described in
paragraph (1)(B) with respect to such taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income tax
system of such possession if the income tax liability of the
residents of such possession under such system is determined by
reference to the income tax laws of the United States as if
such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, rules similar to
the rules of section 1001(b)(3)(C) of the American Recovery and
Reinvestment Tax Act of 2009 shall apply.
TITLE II--EXPENSING
SEC. 201. INCREASE IN EXPENSING OF CERTAIN DEPRECIABLE BUSINESS
ASSETS.
(a) In General.--Subsection (b) of section 179 is amended--
(1) by striking ``($125,000 in the case of taxable years
beginning after 2006 and before 2011)'' in paragraph (1) and
inserting ``($250,000 in the case of taxable years beginning after
2007 and before 2011)'',
(2) by striking ``($500,000 in the case of taxable years
beginning after 2006 and before 2011)'' in paragraph (2) and
inserting ``($800,000 in the case of taxable years beginning after
2007 and before 2011)'',
(3) by striking paragraphs (5) and (7), and
(4) by redesignating paragraph (6) as paragraph (5).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
TITLE III--QUALIFIED TAX CREDIT BONDS
SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CERTAIN QUALIFIED
TAX CREDIT BONDS.
(a) Credit Allowed.--Section 6431 is amended by adding at the end
the following new subsection:
``(f) Application of Section to Certain Qualified Tax Credit
Bonds.--
``(1) In general.--In the case of any specified tax credit
bond--
``(A) such bond shall be treated as a qualified bond for
purposes of this section,
``(B) subsection (a) shall be applied without regard to the
requirement that the qualified bond be issued before January 1,
2011,
``(C) the amount of the payment determined under subsection
(b) with respect to any interest payment due under such bond
shall be equal to the lesser of--
``(i) the amount of interest payable under such bond on
such date, or
``(ii) the amount of interest which would have been
payable under such bond on such date if such interest were
determined at the applicable credit rate determined under
section 54A(b)(3),
``(D) interest on any such bond shall be includible in
gross income for purposes of this title,
``(E) no credit shall be allowed under section 54A with
respect to such bond,
``(F) any payment made under subsection (b) shall not be
includible as income for purposes of this title, and
``(G) 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.
``(2) Special rule for new clean renewable energy bonds and
qualified energy conservation bonds.--In the case of any specified
tax credit bond described in clause (i) or (ii) of paragraph
(3)(A), the amount determined under paragraph (1)(C)(ii) shall be
70 percent of the amount so determined without regard to this
paragraph and sections 54C(b) and 54D(b).
``(3) Specified tax credit bond.--For purposes of this
subsection, the term `specified tax credit bond' means any
qualified tax credit bond (as defined in section 54A(d)) if--
``(A) such bond is--
``(i) a new clean renewable energy bond (as defined in
section 54C),
``(ii) a qualified energy conservation bond (as defined
in section 54D),
``(iii) a qualified zone academy bond (as defined in
section 54E), or
``(iv) a qualified school construction bond (as defined
in section 54F), and
``(B) the issuer of such bond makes an irrevocable election
to have this subsection apply.''.
(b) Technical Corrections Relating to Qualified School Construction
Bonds.--
(1) The second sentence of section 54F(d)(1) is amended by
striking ``by the State'' and inserting ``by the State education
agency (or such other agency as is authorized under State law to
make such allocation)''.
(2) The second sentence of section 54F(e) is amended by
striking ``subsection (d)(4)'' and inserting ``paragraphs (2) and
(4) of subsection (d)''.
(c) Effective Dates.--
(1) In general.--The amendment made by subsection (a) shall
apply to bonds issued after the date of the enactment of this Act.
(2) Technical corrections.--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.
TITLE IV--EXTENSION OF CURRENT SURFACE TRANSPORTATION PROGRAMS
SEC. 401. SHORT TITLE.
This title may be cited as the ``Surface Transportation Extension
Act of 2010''.
Subtitle A--Federal-aid Highways
SEC. 411. IN GENERAL.
(a) In General.--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.
(b) Authorization of Appropriations.--Except as provided in section
412, there are authorized to be appropriated out of the Highway Trust
Fund (other than the Mass Transit Account)--
(1) 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
(2) for the period beginning on October 1, 2010, and ending on
December 31, 2010, a sum equal to \1/4\ 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).
(c) Use of Funds.--
(1) Fiscal year 2010.--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).
(2) Fiscal year 2011.--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 \1/4\ 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).
(3) Calculation.--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.
(4) Contract authority.--
(A) In general.--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--
(i) 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
(ii) 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 \1/4\ of the
limitation on obligations included in an Act making
appropriations for fiscal year 2011.
(B) Exceptions.--A limitation on obligations described in
clause (i) or (ii) of subparagraph (A) shall not apply to any
obligation under--
(i) section 125 of title 23, United States Code; or
(ii) section 105 of title 23, United States Code--
(I) for fiscal year 2010, only in an amount equal
to $639,000,000; and
(II) for the period beginning on October 1, 2010,
and ending on December 31, 2010, only in an amount
equal to $159,750,000.
(5) Calculations for distribution of obligation limitation.--
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--
(A) 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
(B) multiply the resulting distribution of any obligation
limitation under such Act by \1/4\.
(d) Extension and Flexibility for Certain Allocated Programs.--
(1) Fiscal year 2010.--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--
(A) 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--
(i) the amount apportioned to the State for that
program for fiscal year 2009; bears to
(ii) the amount apportioned to the State for fiscal
year 2009 for all programs apportioned under such sections
of such Code; and
(B) 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).
(2) Fiscal year 2011.--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 \1/4\ 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--
(A) 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--
(i) the amount apportioned to the State for that
program for fiscal year 2009; bears to
(ii) the amount apportioned to the State for fiscal
year 2009 for all programs apportioned under such sections
of such Code; and
(B) 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).
(3) Territories and puerto rico.--
(A) Fiscal year 2010.--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--
(i) 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
(ii) 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.
(B) Fiscal year 2011.--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
\1/4\ 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--
(i) 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
(ii) 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.
(C) Territory defined.--In this paragraph, the term
``territory'' 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.
(4) Additional funds.--
(A) In general.--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.
(B) Reservation and redistribution of funds.--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--
(i) reserved by the Secretary of Transportation; and
(ii) 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--
(I) the total amount of funds made available for
fiscal year 2009 for projects and activities described
in subparagraph (A) in the State; bears to
(II) the total amount of funds made available for
fiscal year 2009 for those projects and activities in
all States.
(e) Extension of Authorizations Under Title V of SAFETEA-LU.--
(1) In general.--The programs authorized under paragraphs (1)
through (5) of section 5101(a) of the SAFETEA-LU (119 Stat. 1779)
shall be continued--
(A) for fiscal year 2010, at the funding levels authorized
for those programs for fiscal year 2009; and
(B) for the period beginning on October 1, 2010, and ending
on December 31, 2010, at \1/4\ the funding levels authorized
for those programs for fiscal year 2009.
(2) Distribution of funds.--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--
(A) fiscal year 2010; or
(B) the period beginning on October 1, 2010, and ending on
December 31, 2010.
(3) Additional funds.--
(A) In general.--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.
(B) Distribution.--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).
SEC. 412. ADMINISTRATIVE EXPENSES.
(a) Authorization of Contract Authority.--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--
(1) $422,425,000 for fiscal year 2010; and
(2) $105,606,250 for the period beginning on October 1, 2010,
and ending on December 31, 2010.
(b) Contract Authority.--Funds authorized to be appropriated by
this section shall be--
(1) 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
(2) subject to a limitation on obligations for Federal-aid
highways and highway safety construction programs, except that such
funds shall remain available until expended.
SEC. 413. RESCISSION OF UNOBLIGATED BALANCES.
(a) In General.--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.
(b) Administration of Funds.--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).
(c) Funding.--
(1) In general.--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).
(2) Availability for obligation.--Funds authorized to be
appropriated by this section shall be--
(A) 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
(B) 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.
(d) Limitation.--No funds authorized to be restored under this
section shall be restored after the end of fiscal year 2010.
SEC. 414. RECONCILIATION OF FUNDS.
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).
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.
(a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1) of the
SAFETEA-LU (119 Stat. 1519) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``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.''.
(b) Highway Safety Research and Development.--Section 2001(a)(2) of
the SAFETEA-LU (119 Stat. 1519) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``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.''.
(c) Occupant Protection Incentive Grants.--
(1) Extension of program.--Section 405(a) of title 23, United
States Code, is amended--
(A) in paragraph (3), by striking ``6'' and inserting
``8''; and
(B) in paragraph (4)(C), by striking ``fifth and sixth''
and inserting ``fifth through eighth''.
(2) Authorization of appropriations.--Section 2001(a)(3) of the
SAFETEA-LU (119 Stat. 1519) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``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.''.
(d) Safety Belt Performance Grants.--Section 2001(a)(4) of the
SAFETEA-LU (119 Stat. 1519) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``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.''.
(e) State Traffic Safety Information System Improvements.--Section
2001(a)(5) of the SAFETEA-LU (119 Stat. 1519) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``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.''.
(f) Alcohol-impaired Driving Countermeasures Incentive Grant
Program.--
(1) Extension of program.--Section 410 of title 23, United
States Code, is amended--
(A) in subsection (a)(3)(C), by striking ``fifth, sixth,
seventh, and eighth'' and inserting ``fifth through tenth'';
and
(B) in subsection (b)(2)(C), by striking ``2008 and 2009''
and inserting ``2008, 2009, 2010, and 2011''.
(2) Authorization of appropriations.--Section 2001(a)(6) of the
SAFETEA-LU (119 Stat. 1519) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``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.''.
(g) National Driver Register.--Section 2001(a)(7) of the SAFETEA-LU
(119 Stat. 1520) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``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.''.
(h) High Visibility Enforcement Program.--
(1) Extension of program.--Section 2009(a) of the SAFETEA-LU
(23 U.S.C. 402 note) is amended by striking ``2009'' and inserting
``2011''.
(2) Authorization of appropriations.--Section 2001(a)(8) of the
SAFETEA-LU (119 Stat. 1520) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``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.''.
(i) Motorcyclist Safety.--
(1) Extension of program.--Section 2010(d)(1)(B) of the
SAFETEA-LU (23 U.S.C. 402 note) is amended by striking ``and
fourth'' and inserting ``fourth, fifth, and sixth''.
(2) Authorization of appropriations.--Section 2001(a)(9) of the
SAFETEA-LU (119 Stat. 1520) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``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.''.
(j) Child Safety and Child Booster Seat Safety Incentive Grants.--
(1) Extension of program.--Section 2011(c)(2) of the SAFETEA-LU
(23 U.S.C. 405 note) is amended by striking ``fourth fiscal year''
and inserting ``fourth, fifth, and sixth fiscal years''.
(2) Authorization of appropriations.--Section 2001(a)(10) of
the SAFETEA-LU (119 Stat. 1520) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``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.''.
(k) Administrative Expenses.--Section 2001(a)(11) of the SAFETEA-LU
(119 Stat. 1520) is amended--
(1) by striking ``and'' the last place it appears; and
(2) by striking ``2009.'' and inserting ``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.''.
(l) Applicability of Title 23.--Section 2001(c) of the SAFETEA-LU
(119 Stat. 1520) is amended by striking ``2009'' and inserting
``2011''.
(m) Drug-impaired Driving Enforcement.--Section 2013(f) of the
SAFETEA-LU (23 U.S.C. 403 note) is amended by striking ``2009'' and
inserting ``2011''.
(n) Older Driver Safety; Law Enforcement Training.--Section 2017 of
the SAFETEA-LU is amended--
(1) in subsection (a)(1) (119 Stat. 1541), by striking ``2009''
and inserting ``2011''; and
(2) in subsection (b)(2) (23 U.S.C. 402 note), by striking
``2009'' and inserting ``2011''.
SEC. 422. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION
PROGRAMS.
(a) Motor Carrier Safety Grants.--Section 31104(a) of title 49,
United States Code, is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(6) $209,000,000 for fiscal year 2010; and
``(7) $52,679,000 for the period beginning on October 1, 2010,
and ending on December 31, 2010.''.
(b) Administrative Expenses.--Section 31104(i)(1) of title 49,
United States Code, is amended--
(1) in subparagraph (D), by striking ``and'';
(2) in subparagraph (E), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(F) ``(F) $239,828,000 for fiscal year 2010; and
``(G) ``(G) $61,036,000 for the period beginning on October
1, 2010, and ending on December 31, 2010.''.
(c) Grant Programs.--Section 4101(c) of the SAFETEA-LU (119 Stat.
1715) is amended--
(1) in paragraph (1), by striking ``2009.'' and inserting
``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.'';
(2) in paragraph (2), by striking ``2009.'' and inserting
``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.'';
(3) in paragraph (3), by striking ``2009.'' and inserting
``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.'';
(4) in paragraph (4), by striking ``2009.'' and inserting
``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.''; and
(5) in paragraph (5), by striking ``2009.'' and inserting
``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.''.
(d) High-priority Activities.--Section 31104(k) of title 49, United
States Code, is amended by striking ``2009'' in paragraph (2) and
inserting ``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''.
(e) New Entrant Audits.--Section 31144(g)(5)(B) of title 49, United
States Code, is amended by inserting ``(and up to $7,310,000 for the
period beginning on October 1, 2010, and ending on December 31, 2010)''
after ``fiscal year''.
(f) Commercial Driver's License Information System Modernization.--
Section 4123(d) of the SAFETEA-LU (119 Stat. 1736) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) $8,000,000 for fiscal year 2010; and
``(6) $2,016,000 for the period beginning on October 1, 2010,
and ending on December 31, 2010.''.
(g) Outreach and Education.--Section 4127(e) of the SAFETEA-LU (119
Stat. 1741) is amended by striking ``and 2009'' and inserting ``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,''.
(h) Grant Program for Commercial Motor Vehicle Operators.--Section
4134(c) of the SAFETEA-LU (119 Stat. 1744) is amended by striking
``2009'' and inserting ``2009, 2010, and $252,000 for the period
beginning on October 1, 2010, and ending on December 31, 2010,''.
(i) Motor Carrier Safety Advisory Committee.--Section 4144(d) of
the SAFETEA-LU (1119 Stat. 1748) is amended by striking ``September 30,
2010'' and inserting ``December 31, 2010''.
(j) Working Group for Development of Practices and Procedures To
Enhance Federal-State Relations.--Section 4213(d) of the SAFETEA-LU (49
U.S.C. 14710 note) is amended by striking ``September 30, 2009'' and
inserting ``December 31, 2010''.
SEC. 423. ADDITIONAL PROGRAMS.
(a) Hazardous Materials Research Projects.--Section 7131(c) of the
SAFETEA-LU (119 Stat. 1910) is amended by striking ``through 2009'' and
inserting ``through 2010, and $315,000 for the period beginning on
October 1, 2010, and ending on December 31, 2010,''.
(b) Dingell-Johnson Sport Fish Restoration Act.--Section 4 of the
Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 777c) is
amended--
(1) in subsection (a), in the matter preceding paragraph (1),
by striking ``2009,'' and inserting ``2010 and for the period
beginning on October 1, 2010, and ending on December 31, 2010,'';
and
(2) in subsection (b)(1)(A), by striking ``2010,'' and
inserting ``and for the period beginning on October 1, 2010, and
ending on December 31, 2010,''.
Subtitle C--Public Transportation Programs
SEC. 431. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.
Section 5305(g) of title 49, United States Code, is amended by
striking ``2009'' and inserting ``2010, and for the period beginning
October 1, 2010, and ending December 31, 2010,''.
SEC. 432. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS.
Section 5307(b)(2) of title 49, United States Code, is amended--
(1) in the paragraph heading, by striking ``2009'' and
inserting ``2010, and the period beginning october 1, 2010, and
ending december 31, 2010'';
(2) in subparagraph (A), by striking ``2009,'' and inserting
``2010, and the period beginning October 1, 2010, and ending
December 31, 2010,''; and
(3) in subparagraph (E)--
(A) in the subparagraph heading, by striking ``and 2009''
and inserting ``through 2010 and during the period beginning
october 1, 2010, and ending december 31, 2010''; and
(B) in the matter preceding clause (i), by striking ``and
2009'' and inserting ``through 2010, and during the period
beginning October 1, 2010, and ending December 31, 2010,''.
SEC. 433. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS.
Section 5309(m) of title 49, United States Code, is amended--
(1) in paragraph (2)--
(A) in the heading, by striking ``2009'' and inserting
``2010 and october 1, 2010, through december 31, 2010'';
(B) in the matter preceding subparagraph (A), by striking
``2009'' and inserting ``2010, and during the period beginning
October 1, 2010, and ending December 31, 2010,''; and
(C) in subparagraph (A)(i), by striking ``2009'' and
inserting ``2010, and $50,000,000 for the period beginning
October 1, 2010, and ending December 31, 2010,'';
(2) in paragraph (6)--
(A) in subparagraph (B), by striking ``2009'' and inserting
``2010, and $3,750,000 shall be available for the period
beginning October 1, 2010, and ending December 31, 2010,''; and
(B) in subparagraph (C), by striking ``2009'' and inserting
``2010, and $1,250,000 shall be available for the period
beginning October 1, 2010 and ending December 31, 2010,''; and
(3) in paragraph (7)--
(A) in subparagraph (A)--
(i) by redesignating clauses (i) through (viii) as
subclauses (I) through (VIII), respectively;
(ii) in the matter preceding subclause (I), as so
redesignated, by striking ``$10,000,000'' and all that
follows through ``2009'' and inserting the following:
``(i) Fiscal years 2006 through 2010.--$10,000,000
shall be available in each of fiscal years 2006 through
2010''; and
(iii) by inserting after subclause (VIII), as so
redesignated, the following:
``(ii) Special rule for october 1, 2010, through
december 31, 2010.--$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).'';''.
(B) in subparagraph (B), by inserting after ``2009.'' the
following:
``(v) $13,500,000 for fiscal year 2010.
``(vi) $3,375,000 for the period beginning October 1,
2010, and ending December 31, 2010.'';
(C) in subparagraph (C), by inserting ``, and during the
period beginning October 1, 2010, and ending December 31,
2010,'' after ``fiscal year'';
(D) in subparagraph (D), by inserting ``, and not less than
$8,750,000 shall be available for the period beginning October
1, 2010, and ending December 31, 2010,'' after ``year''; and
(E) in subparagraph (E), by inserting ``, and $750,000
shall be available for the period beginning October 1, 2010,
and ending December 31, 2010,'' after ``year''.
SEC. 434. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN URBANIZED
AREAS.
Section 5311(c)(1) of title 49, United States Code, is amended by
adding at the end the following:
``(E) $15,000,000 for fiscal year 2010.
``(F) $3,750,000 for the period beginning October 1, 2010,
and ending December 31, 2010.''.
SEC. 435. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.
Section 5337 of title 49, United States Code, is amended--
(1) in subsection (a), in the matter preceding paragraph (1),
by striking ``2009'' and inserting ``2010''; and
(2) by adding at the end the following:
``(g) Special Rule for October 1, 2010, Through December 31,
2010.--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).''.
SEC. 436. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION.
(a) Formula and Bus Grants.--Section 5338(b) of title 49, United
States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (C), by striking ``and'' at the end;
(B) in subparagraph (D), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following:
``(E) $8,360,565,000 for fiscal year 2010; and
``(F) $2,090,141,250 for the period beginning October 1,
2010, and ending December 31, 2010.''; and
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``and $113,500,000 for
fiscal year 2009'' and inserting ``$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,'';
(B) in subparagraph (B), by striking ``and $4,160,365,000
for fiscal year 2009'' and inserting ``$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,'';
(C) in subparagraph (C), by striking ``and $51,500,000 for
fiscal year 2009'' and inserting ``$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,'';
(D) in subparagraph (D), by striking ``and $1,666,500,000
for fiscal year 2009'' and inserting ``$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,'';
(E) in subparagraph (E), by striking ``and $984,000,000 for
fiscal year 2009'' and inserting ``$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,'';
(F) in subparagraph (F), by striking ``and $133,500,000 for
fiscal year 2009'' and inserting ``$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,'';
(G) in subparagraph (G), by striking ``and $465,000,000 for
fiscal year 2009'' and inserting ``$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,'';
(H) in subparagraph (H), by striking ``and $164,500,000 for
fiscal year 2009'' and inserting ``$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,'';
(I) in subparagraph (I), by striking ``and $92,500,000 for
fiscal year 2009'' and inserting ``$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,'';
(J) in subparagraph (J), by striking ``and $26,900,000 for
fiscal year 2009'' and inserting ``$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,'';
(K) in subparagraph (K), by striking ``and $3,500,000 for
fiscal year 2009'' and inserting ``$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,'';
(L) in subparagraph (L), by striking ``and $25,000,000 for
fiscal year 2009'' and inserting ``$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,'';
(M) in subparagraph (M), by striking ``and $465,000,000 for
fiscal year 2009'' and inserting ``$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,''; and
(N) in subparagraph (N), by striking ``and $8,800,000 for
fiscal year 2009'' and inserting ``$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,''.
(b) Capital Investment Grants.--Section 5338(c) of title 49, United
States Code, is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) $2,000,000,000 for fiscal year 2010; and
``(6) $500,000,000 for the period of October 1, 2010 through
December 31, 2010.''.
(c) Research and University Research Centers.--Section 5338(d) of
title 49, United States Code, is amended--
(1) in paragraph (1), in the matter preceding subparagraph (A),
by striking ``and $69,750,000 for fiscal year 2009'' and inserting
``$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''; and
(2) by adding at the end the following:
``(3) Additional authorizations.--
``(A) In general.--
``(i) Fiscal year 2010.--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.
``(ii) October 1, 2010 through december 31, 2010.--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.
``(B) University centers program.--
``(i) Fiscal year 2010.--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.
``(ii) October 1, 2010 through december 31, 2010.--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.
``(iii) Funding.--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.''.
(d) Administration.--Section 5338(e) of title 49, United States
Code, is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) $98,911,000 for fiscal year 2010; and
``(6) $24,727,750 for the period beginning October 1, 2010, and
ending December 31, 2010.''.
SEC. 437. AMENDMENTS TO SAFETEA-LU.
(a) Contracted Paratransit Pilot.--Section 3009(i)(1) of the
SAFETEA-LU (Public Law 109-59; 119 Stat. 1572) is amended by striking
``2009'' and inserting ``2010, and for the period beginning October 1,
2010, and ending December 31, 2010''.
(b) Public-private Partnership Pilot Program.--Section 3011 of the
SAFETEA-LU (49 U.S.C. 5309 note) is amended--
(1) in subsection (c)(5), by striking ``2009'' and inserting
``2010 and the period beginning October 1, 2010, and ending
December 31, 2010''; and
(2) in subsection (d), by striking ``2009'' and inserting
``2010, and for the period beginning October 1, 2010, and ending
December 31, 2010''.
(c) Elderly Individuals and Individuals With Disabilities Pilot
Program.--Section 3012(b)(8) of the SAFETEA-LU (49 U.S.C. 5310 note) is
amended by striking ``September 30, 2009'' and inserting ``December 31,
2010''.
(d) Obligation Ceiling.--Section 3040 of the SAFETEA-LU (Public Law
109-59; 119 Stat. 1639) is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(6) $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
``(7) $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.''.
(e) Project Authorizations for New Fixed Guideway Capital
Projects.--Section 3043 of the SAFETEA-LU (Public Law 109-59; 119 Stat.
1640) is amended--
(1) in subsection (b), in the matter preceding paragraph (1),
by striking ``2009'' and inserting ``2010, and for the period
beginning October 1, 2010, and ending December 31, 2010,''; and
(2) in subsection (c), in the matter preceding paragraph (1),
by striking ``2009'' and inserting ``2010, and for the period
beginning October 1, 2010, and ending December 31, 2010,''.
(f) Allocations for National Research and Technology Programs.--
Section 3046 of the SAFETEA-LU (49 U.S.C. 5338 note) is amended--
(1) in subsection (b), by inserting ``or period'' after
``fiscal year''; and
(2) by adding at the end the following:
``(c) Additional Appropriations.--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--
``(1) 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
``(2) 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).
``(d) Funding.--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.''.
Subtitle D--Revenue Provisions
SEC. 441. REPEAL OF PROVISION PROHIBITING THE CREDITING OF INTEREST
TO THE HIGHWAY TRUST FUND.
(a) In General.--Paragraph (1) of section 9503(f) is amended by
striking subparagraph (B).
(b) Conforming Amendments.--Such paragraph, as amended by paragraph
(1), is further amended--
(1) by striking ``, and'' at the end of subparagraph (A) and
inserting a period; and
(2) by striking ``1998'' in the matter preceding subparagraph
(A) and all that follows through ``the opening balance'' and
inserting ``1998, the opening balance''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this title.
SEC. 442. RESTORATION OF CERTAIN FOREGONE INTEREST TO HIGHWAY TRUST
FUND.
(a) In General.--Paragraph (2) of section 9503(f) is amended to
read as follows:
``(2) Restoration of foregone interest.--Out of money in the
Treasury not otherwise appropriated, there is hereby appropriated--
``(A) $14,700,000,000 to the Highway Account (as defined in
subsection (e)(5)(B)) in the Highway Trust Fund; and
``(B) $4,800,000,000 to the Mass Transit Account in the
Highway Trust Fund.''.
(b) Conforming Amendment.--Paragraph (1) of section 9503(e) is
amended by striking ``this subsection'' and inserting ``this section''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 443. TREATMENT OF CERTAIN AMOUNTS APPROPRIATED TO HIGHWAY
TRUST FUND.
(a) In General.--Section 9503(f), as amended by this Act, is
amended by adding at the end the following new paragraph:
``(4) Treatment of appropriated amounts.--Any amount
appropriated under this subsection to the Highway Trust Fund shall
remain available without fiscal year limitation.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of the enactment of this Act.
SEC. 444. TERMINATION OF TRANSFERS FROM HIGHWAY TRUST FUND FOR
CERTAIN REPAYMENTS AND CREDITS.
(a) In General.--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.
(b) Conforming Amendments.--
(1) Section 9502(a) is amended by striking ``section
9503(c)(7)'' and inserting ``section 9503(c)(5)''.
(2) Section 9503(b)(4)(D) is amended by striking ``paragraph
(4)(D) or (5)(B)'' and inserting ``paragraph (3)(D) or (4)(B)''.
(3) Paragraph (2) of section 9503(c), as redesignated by
subsection (a), is amended by adding at the end the following new
sentence: ``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.''.
(4) Section 9503(e)(5)(A) is amended by striking ``(2), (3),
and (4)'' and inserting ``(2) and (3)''.
(5) Section 9504(a) is amended by striking ``section
9503(c)(4), section 9503(c)(5)'' and inserting ``section
9503(c)(3), section 9503(c)(4)''.
(6) Section 9504(b)(2) is amended by striking ``section
9503(c)(5)'' and inserting ``section 9503(c)(4)''.
(7) Section 9504(e) is amended by striking ``section
9503(c)(4)'' and inserting section ``9503(c)(3)''.
(c) Effective Date.--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.
SEC. 445. EXTENSION OF AUTHORITY FOR EXPENDITURES.
(a) Highways Trust Fund.--
(1) Highway account.--Paragraph (1) of section 9503(c) is
amended--
(A) by striking ``September 30, 2009 (October 1, 2009'' and
inserting ``December 31, 2010 (January 1, 2011''; and
(B) by striking ``under'' and all that follows and
inserting ``under the Surface Transportation Extension Act of
2010 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).''.
(2) Mass transit account.--Paragraph (3) of section 9503(e) is
amended--
(A) by striking ``October 1, 2009'' and inserting ``January
1, 2011''; and
(B) by striking ``in accordance with'' and all that follows
and inserting ``in accordance with the Surface Transportation
Extension Act of 2010 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).''.
(3) Exception to limitation on transfers.--Subparagraph (B) of
section 9503(b)(6) is amended by striking ``September 30, 2009
(October 1, 2009'' and inserting ``December 31, 2010 (January 1,
2011''.
(b) Sport Fish Restoration and Boating Trust Fund.--
(1) In general.--Paragraph (2) of section 9504(b) is amended--
(A) by striking ``(as in effect'' in subparagraph (A) and
all that follows in such subparagraph and inserting ``(as in
effect on the date of the enactment of the Surface
Transportation Extension Act of 2010),'',
(B) by striking ``(as in effect'' in subparagraph (B) and
all that follows in such subparagraph and inserting ``(as in
effect on the date of the enactment of the Surface
Transportation Extension Act of 2010), and'', and
(C) by striking ``(as in effect'' in subparagraph (C) and
all that follows in such subparagraph and inserting ``(as in
effect on the date of the enactment of the Surface
Transportation Extension Act of 2010).''.
(2) Exception to limitation on transfers.--Paragraph (2) of
section 9504(d) is amended by striking ``October 1, 2009'' and
inserting ``January 1, 2011''.
(c) Effective Date.--The amendments made by this section shall take
effect on September 30, 2009.
SEC. 446. LEVEL OF OBLIGATION LIMITATIONS.
(a) Highway Category.--Section 8003(a) of the SAFETEA-LU (2 U.S.C.
901 note; 119 Stat. 1917) is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(6) for the period beginning on October 1, 2009, and ending
on September 30, 2010, $42,469,970,178.
``(7) for the period beginning on October 1, 2010, and ending
on December 31, 2010, $10,617,492,545.''.
(b) Mass Transit Category.--Section 8003(b) of the SAFETEA-LU (2
U.S.C. 901 note; 119 Stat. 1917) is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(6) for the period beginning on October 1, 2009, and ending
on December 31, 2010, $10,338,065,000.
``(7) for the period beginning on October 1, 2010, and ending
on December 31, 2010, $2,584,516,250.''.
(c) Treatment of Funds.--No adjustment pursuant to section 110 of
title 23, United States Code, shall be made for fiscal year 2010 or
fiscal year 2011.
Subtitle E--Disadvantaged Business Enterprises
SEC. 451. DISADVANTAGED BUSINESS ENTERPRISES.
(a) Definitions.--In this section, the following definitions apply:
(1) Small business concern.--The term ``small business
concern'' has the meaning that term has under section 3 of the
Small Business Act (15 U.S.C. 632), except that the term shall not
include any concern or group of concerns controlled by the same
socially and economically disadvantaged individual or individuals
which has average annual gross receipts over the preceding 3 fiscal
years in excess of $22,410,000, as adjusted annually by the
Secretary of Transportation for inflation.
(2) Socially and economically disadvantaged individuals.--The
term ``socially and economically disadvantaged individuals'' has
the meaning that term has under section 8(d) of the Small Business
Act (15 U.S.C. 637(d)) and relevant subcontracting regulations
issued pursuant to that Act, except that women shall be presumed to
be socially and economically disadvantaged individuals for purposes
of this section.
(b) General Rule.--Except to the extent that the Secretary of
Transportation determines otherwise, not less than 10 percent of the
amounts made available for any program under titles I, III, and V of
SAFETEA-LU (Public Law 109-59), subtitles A and C of this title, and
section 403 of title 23, United States Code, shall be expended through
small business concerns owned and controlled by socially and
economically disadvantaged individuals.
(c) Annual Listing of Disadvantaged Business Enterprises.--Each
State shall annually
(1) survey and compile a list of the small business concerns
referred to in subsection (a) and the location of the concerns in
the State; and
(2) notify the Secretary of Transportation, in writing, of the
percentage of the concerns that are controlled by women, by
socially and economically disadvantaged individuals (other than
women), and by individuals who are women and are otherwise socially
and economically disadvantaged individuals.
(d) Uniform Certification.--The Secretary of Transportation shall
establish minimum uniform criteria for State governments to use in
certifying whether a concern qualifies for purposes of this section.
The minimum uniform criteria shall include, but not be limited to, on-
site visits, personal interviews, licenses, analysis of stock
ownership, listing of equipment, analysis of bonding capacity, listing
of work completed, resume of principal owners, financial capacity, and
type of work preferred.
(e) Compliance With Court Orders.--Nothing in this section limits
the eligibility of an entity or person to receive funds made available
under titles I, III, and V of SAFETEA-LU (Public Law 109-59), subtitles
A and C of this title, and section 403 of title 23, United States Code,
if the entity or person is prevented, in whole or in part, from
complying with subsection (b) because a Federal court issues a final
order in which the court finds that the requirement of subsection (b),
or the program established under subsection (b), is unconstitutional.
TITLE V--OFFSET PROVISIONS
Subtitle A--Foreign Account Tax Compliance
PART I--INCREASED DISCLOSURE OF BENEFICIAL OWNERS
SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS.
(a) In General.--The Internal Revenue Code of 1986 is amended by
inserting after chapter 3 the following new chapter:
``CHAPTER 4--TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS
``Sec. 1471. Withholdable payments to foreign financial institutions.
``Sec. 1472. Withholdable payments to other foreign entities.
``Sec. 1473. Definitions.
``Sec. 1474. Special rules.
``SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL INSTITUTIONS.
``(a) In General.--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.
``(b) Reporting Requirements, etc.--
``(1) In general.--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--
``(A) 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,
``(B) to comply with such verification and due diligence
procedures as the Secretary may require with respect to the
identification of United States accounts,
``(C) 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,
``(D) to deduct and withhold a tax equal to 30 percent of--
``(i) 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
``(ii) 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,
``(E) to comply with requests by the Secretary for
additional information with respect to any United States
account maintained by such institution, and
``(F) 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--
``(i) to attempt to obtain a valid and effective waiver
of such law from each holder of such account, and
``(ii) if a waiver described in clause (i) is not
obtained from each such holder within a reasonable period
of time, to close such account.
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.
``(2) Financial institutions deemed to meet requirements in
certain cases.--A foreign financial institution may be treated by
the Secretary as meeting the requirements of this subsection if--
``(A) such institution--
``(i) complies with such procedures as the Secretary
may prescribe to ensure that such institution does not
maintain United States accounts, and
``(ii) meets such other requirements as the Secretary
may prescribe with respect to accounts of other foreign
financial institutions maintained by such institution, or
``(B) 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.
``(3) Election to be withheld upon rather than withhold on
payments to recalcitrant account holders and nonparticipating
foreign financial institutions.--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--
``(A) the requirements of paragraph (1)(D) shall not apply,
``(B) 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
``(C) the agreement described in paragraph (1) shall--
``(i) 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
``(ii) 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.
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.
``(c) Information Required To Be Reported on United States
Accounts.--
``(1) In general.--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:
``(A) 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.
``(B) The account number.
``(C) The account balance or value (determined at such time
and in such manner as the Secretary may provide).
``(D) 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).
``(2) Election to be subject to same reporting as united states
financial institutions.--In the case of a foreign financial
institution which elects the application of this paragraph--
``(A) subparagraphs (C) and (D) of paragraph (1) shall not
apply, and
``(B) 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--
``(i) such institution were a United States person, and
``(ii) 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.
An election under this paragraph shall be made at such time, in
such manner, and subject to such conditions as the Secretary
may provide.
``(3) Separate requirements for qualified intermediaries.--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.
``(d) Definitions.--For purposes of this section--
``(1) United states account.--
``(A) In general.--The term `United States account' means
any financial account which is held by one or more specified
United States persons or United States owned foreign entities.
``(B) Exception for certain accounts held by individuals.--
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--
``(i) each holder of such account is a natural person,
and
``(ii) 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.
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.
``(C) Elimination of duplicative reporting requirements.--
Such term shall not include any financial account in a foreign
financial institution if--
``(i) such account is held by another financial
institution which meets the requirements of subsection (b),
or
``(ii) 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.
``(2) Financial account.--Except as otherwise provided by the
Secretary, the term `financial account' means, with respect to any
financial institution--
``(A) any depository account maintained by such financial
institution,
``(B) any custodial account maintained by such financial
institution, and
``(C) any equity or debt interest in such financial
institution (other than interests which are regularly traded on
an established securities market).
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.
``(3) United states owned foreign entity.--The term `United
States owned foreign entity' means any foreign entity which has one
or more substantial United States owners.
``(4) Foreign financial institution.--The term `foreign
financial institution' 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.
``(5) Financial institution.--Except as otherwise provided by
the Secretary, the term `financial institution' means any entity
that--
``(A) accepts deposits in the ordinary course of a banking
or similar business,
``(B) as a substantial portion of its business, holds
financial assets for the account of others, or
``(C) 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.
``(6) Recalcitrant account holder.--The term `recalcitrant
account holder' means any account holder which--
``(A) fails to comply with reasonable requests for the
information referred to in subsection (b)(1)(A) or (c)(1)(A),
or
``(B) fails to provide a waiver described in subsection
(b)(1)(F) upon request.
``(7) Passthru payment.--The term `passthru payment' means any
withholdable payment or other payment to the extent attributable to
a withholdable payment.
``(e) Affiliated Groups.--
``(1) In general.--The requirements of subsections (b) and
(c)(1) shall apply--
``(A) with respect to United States accounts maintained by
the foreign financial institution, and
``(B) 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.
``(2) Expanded affiliated group.--For purposes of this section,
the term `expanded affiliated group' means an affiliated group as
defined in section 1504(a), determined--
``(A) by substituting `more than 50 percent' for `at least
80 percent' each place it appears, and
``(B) without regard to paragraphs (2) and (3) of section
1504(b).
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).
``(f) Exception for Certain Payments.--Subsection (a) shall not
apply to any payment to the extent that the beneficial owner of such
payment is--
``(1) 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,
``(2) any international organization or any wholly owned agency
or instrumentality thereof,
``(3) any foreign central bank of issue, or
``(4) any other class of persons identified by the Secretary
for purposes of this subsection as posing a low risk of tax
evasion.
``SEC. 1472. WITHHOLDABLE PAYMENTS TO OTHER FOREIGN ENTITIES.
``(a) In General.--In the case of any withholdable payment to a
non-financial foreign entity, if--
``(1) the beneficial owner of such payment is such entity or
any other non-financial foreign entity, and
``(2) the requirements of subsection (b) are not met with
respect to such beneficial owner,
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.
``(b) Requirements for Waiver of Withholding.--The requirements of
this subsection are met with respect to the beneficial owner of a
payment if--
``(1) such beneficial owner or the payee provides the
withholding agent with either--
``(A) a certification that such beneficial owner does not
have any substantial United States owners, or
``(B) the name, address, and TIN of each substantial United
States owner of such beneficial owner,
``(2) the withholding agent does not know, or have reason to
know, that any information provided under paragraph (1) is
incorrect, and
``(3) the withholding agent reports the information provided
under paragraph (1)(B) to the Secretary in such manner as the
Secretary may provide.
``(c) Exceptions.--Subsection (a) shall not apply to--
``(1) except as otherwise provided by the Secretary, any
payment beneficially owned by--
``(A) any corporation the stock of which is regularly
traded on an established securities market,
``(B) 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),
``(C) 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,
``(D) 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,
``(E) any international organization or any wholly owned
agency or instrumentality thereof,
``(F) any foreign central bank of issue, or
``(G) any other class of persons identified by the
Secretary for purposes of this subsection, and
``(2) any class of payments identified by the Secretary for
purposes of this subsection as posing a low risk of tax evasion.
``(d) Non-Financial Foreign Entity.--For purposes of this section,
the term `non-financial foreign entity' means any foreign entity which
is not a financial institution (as defined in section 1471(d)(5)).
``SEC. 1473. DEFINITIONS.
``For purposes of this chapter--
``(1) Withholdable payment.--Except as otherwise provided by
the Secretary--
``(A) In general.--The term `withholdable payment' means--
``(i) 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
``(ii) 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.
``(B) Exception for income connected with united states
business.--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.
``(C) Special rule for sourcing interest paid by foreign
branches of domestic financial institutions.--Subparagraph (B)
of section 861(a)(1) shall not apply.
``(2) Substantial united states owner.--
``(A) In general.--The term `substantial United States
owner' means--
``(i) 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),
``(ii) 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
``(iii) in the case of a trust--
``(I) 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
``(II) 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.
``(B) Special rule for investment vehicles.--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 `0 percent' for `10 percent'.
``(3) Specified united states person.--Except as otherwise
provided by the Secretary, the term `specified United States
person' means any United States person other than--
``(A) any corporation the stock of which is regularly
traded on an established securities market,
``(B) 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,
``(C) any organization exempt from taxation under section
501(a) or an individual retirement plan,
``(D) the United States or any wholly owned agency or
instrumentality thereof,
``(E) 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,
``(F) any bank (as defined in section 581),
``(G) any real estate investment trust (as defined in
section 856),
``(H) any regulated investment company (as defined in
section 851),
``(I) any common trust fund (as defined in section 584(a)),
and
``(J) any trust which--
``(i) is exempt from tax under section 664(c), or
``(ii) is described in section 4947(a)(1).
``(4) Withholding agent.--The term `withholding agent' means
all persons, in whatever capacity acting, having the control,
receipt, custody, disposal, or payment of any withholdable payment.
``(5) Foreign entity.--The term `foreign entity' means any
entity which is not a United States person.
``SEC. 1474. SPECIAL RULES.
``(a) Liability for Withheld Tax.--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.
``(b) Credits and Refunds.--
``(1) In general.--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.
``(2) Special rule where foreign financial institution is
beneficial owner of payment.--
``(A) In general.--In the case of any tax properly deducted
and withheld under section 1471 from a specified financial
institution payment--
``(i) 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--
``(I) 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
``(II) no interest shall be allowed or paid with
respect to such credit or refund, and
``(ii) if such foreign financial institution is not so
entitled, no credit or refund shall be allowed or paid with
respect to such tax.
``(B) Specified financial institution payment.--The term
`specified financial institution payment' means any payment if
the beneficial owner of such payment is a foreign financial
institution.
``(3) Requirement to identify substantial united states
owners.--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.
``(c) Confidentiality of Information.--
``(1) In general.--For purposes of this chapter, rules similar
to the rules of section 3406(f) shall apply.
``(2) Disclosure of list of participating foreign financial
institutions permitted.--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.
``(d) Coordination With Other Withholding Provisions.--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.
``(e) Treatment of Withholding Under Agreements.--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).
``(f) Regulations.--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.''.
(b) Special Rule for Interest on Overpayments.--Subsection (e) of
section 6611 is amended by adding at the end the following new
paragraph:
``(4) Certain withholding taxes.--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 `180 days' for `45 days' each place it appears.''.
(c) Conforming Amendments.--
(1) Section 6414 is amended by inserting ``or 4'' after
``chapter 3''.
(2) Paragraph (1) of section 6501(b) is amended by inserting
``4,'' after ``chapter 3,''.
(3) Paragraph (2) of section 6501(b) is amended--
(A) by inserting ``4,'' after ``chapter 3,'' in the text
thereof, and
(B) by striking ``taxes and tax imposed by chapter 3'' in
the heading thereof and inserting ``and withholding taxes''.
(4) Paragraph (3) of section 6513(b) is amended--
(A) by inserting ``or 4'' after ``chapter 3'', and
(B) by inserting ``or 1474(b)'' after ``section 1462''.
(5) Subsection (c) of section 6513 is amended by inserting
``4,'' after ``chapter 3,''.
(6) Paragraph (1) of section 6724(d) is amended by inserting
``under chapter 4 or'' after ``filed with the Secretary'' in the
last sentence thereof.
(7) Paragraph (2) of section 6724(d) is amended by inserting
``or 4'' after ``chapter 3''.
(8) The table of chapters of the Internal Revenue Code of 1986
is amended by adding at the end the following new item:
``Chapter 4--Taxes To Enforce Reporting on Certain Foreign Accounts.''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
payments made after December 31, 2012.
(2) Grandfathered treatment of outstanding obligations.--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.
(3) Interest on overpayments.--The amendment made by subsection
(b) shall apply--
(A) 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,
(B) 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
(C) 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).
SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO REGISTERED BOND
REQUIREMENTS.
(a) Repeal of Exception to Denial of Deduction for Interest on Non-
Registered Bonds.--
(1) In general.--Paragraph (2) of section 163(f) is amended by
striking subparagraph (B) and by redesignating subparagraph (C) as
subparagraph (B).
(2) Conforming amendments.--
(A) Paragraph (2) of section 149(a) is amended by inserting
``or'' at the end of subparagraph (A), by striking ``, or'' at
the end of subparagraph (B) and inserting a period, and by
striking subparagraph (C).
(B) Subparagraph (A) of section 163(f)(2) is amended by
inserting ``or'' at the end of clause (ii), by striking ``,
or'' at the end of clause (iii) and inserting a period, and by
striking clause (iv).
(C) Subparagraph (B) of section 163(f)(2), as redesignated
by paragraph (1), is amended--
(i) by striking ``, and subparagraph (B),'' in the
matter preceding clause (i), and
(ii) by amending clause (i) to read as follows:
``(i) such obligation is of a type which the Secretary
has determined by regulations to be used frequently in
avoiding Federal taxes, and''.
(D) Sections 165(j)(2)(A) and 1287(b)(1) are each amended
by striking ``except that clause (iv) of subparagraph (A), and
subparagraph (B), of such section shall not apply''.
(b) Repeal of Treatment as Portfolio Debt.--
(1) In general.--Paragraph (2) of section 871(h) is amended to
read as follows:
``(2) Portfolio interest.--For purposes of this subsection, the
term `portfolio interest' means any interest (including original
issue discount) which--
``(A) would be subject to tax under subsection (a) but for
this subsection, and
``(B) is paid on an obligation--
``(i) which is in registered form, and
``(ii) with respect to which--
``(I) 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
``(II) the Secretary has determined that such a
statement is not required in order to carry out the
purposes of this subsection.''.
(2) Conforming amendments.--
(A) Section 871(h)(3)(A) is amended by striking
``subparagraph (A) or (B) of''.
(B) Paragraph (2) of section 881(c) is amended to read as
follows:
``(2) Portfolio interest.--For purposes of this subsection, the
term `portfolio interest' means any interest (including original
issue discount) which--
``(A) would be subject to tax under subsection (a) but for
this subsection, and
``(B) is paid on an obligation--
``(i) which is in registered form, and
``(ii) with respect to which--
``(I) 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
``(II) the Secretary has determined that such a
statement is not required in order to carry out the
purposes of this subsection.''.
(c) Dematerialized Book Entry Systems Treated as Registered Form.--
Paragraph (3) of section 163(f) is amended by inserting ``, 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'' before the period at the end.
(d) Repeal of Exception to Requirement That Treasury Obligations Be
in Registered Form.--
(1) In general.--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.
(2) Conforming amendments.--Paragraph (1) of section 3121(g) of
such title is amended--
(A) by adding ``or'' at the end of subparagraph (A),
(B) by striking ``; or'' at the end of subparagraph (B) and
inserting a period, and
(C) by striking subparagraph (C).
(e) Preservation of Exception for Excise Tax Purposes.--Paragraph
(1) of section 4701(b) is amended to read as follows:
``(1) Registration-required obligation.--
``(A) In general.--The term `registration-required
obligation' has the same meaning as when used in section
163(f), except that such term shall not include any obligation
which--
``(i) is required to be registered under section
149(a), or
``(ii) is described in subparagraph (B).
``(B) Certain obligations not included.--An obligation is
described in this subparagraph if--
``(i) 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,
``(ii) interest on such obligation is payable only
outside the United States and its possessions, and
``(iii) 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.''.
(f) Effective Date.--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.
PART II--UNDER REPORTING WITH RESPECT TO FOREIGN ASSETS
SEC. 511. DISCLOSURE OF INFORMATION WITH RESPECT TO FOREIGN
FINANCIAL ASSETS.
(a) In General.--Subpart A of part III of subchapter A of chapter
61 is amended by inserting after section 6038C the following new
section:
``SEC. 6038D. INFORMATION WITH RESPECT TO FOREIGN FINANCIAL ASSETS.
``(a) In General.--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).
``(b) Specified Foreign Financial Assets.--For purposes of this
section, the term `specified foreign financial asset' means--
``(1) any financial account (as defined in section 1471(d)(2))
maintained by a foreign financial institution (as defined in
section 1471(d)(4)), and
``(2) any of the following assets which are not held in an
account maintained by a financial institution (as defined in
section 1471(d)(5))--
``(A) any stock or security issued by a person other than a
United States person,
``(B) any financial instrument or contract held for
investment that has an issuer or counterparty which is other
than a United States person, and
``(C) any interest in a foreign entity (as defined in
section 1473).
``(c) Required Information.--The information described in this
subsection with respect to any asset is:
``(1) 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.
``(2) 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.
``(3) In the case of any other instrument, contract, or
interest--
``(A) such information as is necessary to identify such
instrument, contract, or interest, and
``(B) the names and addresses of all issuers and
counterparties with respect to such instrument, contract, or
interest.
``(4) The maximum value of the asset during the taxable year.
``(d) Penalty for Failure To Disclose.--
``(1) In general.--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.
``(2) Increase in penalty where failure continues after
notification.--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.
``(e) Presumption That Value of Specified Foreign Financial Assets
Exceeds Dollar Threshold.--If--
``(1) the Secretary determines that an individual has an
interest in one or more specified foreign financial assets, and
``(2) such individual does not provide sufficient information
to demonstrate the aggregate value of such assets,
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.
``(f) Application to Certain Entities.--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.
``(g) Reasonable Cause Exception.--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.
``(h) Regulations.--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--
``(1) 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,
``(2) nonresident aliens, and
``(3) bona fide residents of any possession of the United
States.''.
(b) Clerical Amendment.--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:
``Sec. 6038D. Information with respect to foreign financial assets.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO UNDISCLOSED
FOREIGN FINANCIAL ASSETS.
(a) In General.--Section 6662, as amended by this Act, is amended--
(1) in subsection (b), by inserting after paragraph (6) the
following new paragraph:
``(7) Any undisclosed foreign financial asset
understatement.'', and
(2) by adding at the end the following new subsection:
``(j) Undisclosed Foreign Financial Asset Understatement.--
``(1) In general.--For purposes of this section, the term
`undisclosed foreign financial asset understatement' 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.
``(2) Undisclosed foreign financial asset.--For purposes of
this subsection, the term `undisclosed foreign financial asset'
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.
``(3) Increase in penalty for undisclosed foreign financial
asset understatements.--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 `40 percent' for `20
percent'.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR SIGNIFICANT
OMISSION OF INCOME IN CONNECTION WITH FOREIGN ASSETS.
(a) Extension of Statute of Limitations.--
(1) In general.--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:
``(A) General rule.--If the taxpayer omits from gross
income an amount properly includible therein and--
``(i) such amount is in excess of 25 percent of the
amount of gross income stated in the return, or
``(ii) such amount--
``(I) 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
``(II) is in excess of $5,000,
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.''.
(2) Conforming amendments.--
(A) 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:
``(B) Determination of gross income.--For purposes of
subparagraph (A)--''.
(B) Paragraph (2) of section 6229(c) is amended by striking
``which is in excess of 25 percent of the amount of gross
income stated in its return'' and inserting ``and such amount
is described in clause (i) or (ii) of section 6501(e)(1)(A)''.
(b) Additional Reports Subject to Extended Period.--Paragraph (8)
of section 6501(c) is amended--
(1) by inserting ``pursuant to an election under section
1295(b) or'' before ``under section 6038'',
(2) by inserting ``1298(f),'' before ``6038'', and
(3) by inserting ``6038D,'' after ``6038B,''.
(c) Clarifications Related to Failure To Disclose Foreign
Transfers.--Paragraph (8) of section 6501(c) is amended by striking
``event'' and inserting ``tax return, event,''.
(d) Effective Date.--The amendments made by this section shall
apply to--
(1) returns filed after the date of the enactment of this Act;
and
(2) 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.
PART III--OTHER DISCLOSURE PROVISIONS
SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE FOREIGN
INVESTMENT COMPANIES.
(a) In General.--Section 1298 is amended by redesignating
subsection (f) as subsection (g) and by inserting after subsection (e)
the following new subsection:
``(f) Reporting Requirement.--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.''.
(b) Conforming Amendment.--Subsection (e) of section 1291 is
amended by striking ``, (d), and (f)'' and inserting ``and (d)''.
(c) Effective Date.--The amendments made by this section take
effect on the date of the enactment of this Act.
SEC. 522. SECRETARY PERMITTED TO REQUIRE FINANCIAL INSTITUTIONS TO
FILE CERTAIN RETURNS RELATED TO WITHHOLDING ON FOREIGN TRANSFERS
ELECTRONICALLY.
(a) In General.--Subsection (e) of section 6011 is amended by
adding at the end the following new paragraph:
``(4) Special rule for returns filed by financial institutions
with respect to withholding on foreign transfers.--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).''.
(b) Conforming Amendment.--Subsection (c) of section 6724 is
amended by inserting ``or with respect to a return described in section
6011(e)(4)'' before the end period.
(c) Effective Date.--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.
PART IV--PROVISIONS RELATED TO FOREIGN TRUSTS
SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS WHICH ARE
TREATED AS HAVING A UNITED STATES BENEFICIARY.
(a) In General.--Paragraph (1) of section 679(c) is amended by
adding at the end the following:
``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.''.
(b) Clarification Regarding Discretion To Identify Beneficiaries.--
Subsection (c) of section 679 is amended by adding at the end the
following new paragraph:
``(4) Special rule in case of discretion to identify
beneficiaries.--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--
``(A) the terms of the trust specifically identify the
class of persons to whom such distributions may be made, and
``(B) none of those persons are United States persons
during the taxable year.''.
(c) Clarification That Certain Agreements and Understandings Are
Terms of the Trust.--Subsection (c) of section 679, as amended by
subsection (b), is amended by adding at the end the following new
paragraph:
``(5) Certain agreements and understandings treated as terms of
the trust.--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.''.
SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES
BENEFICIARY.
(a) In General.--Section 679 is amended by redesignating subsection
(d) as subsection (e) and inserting after subsection (c) the following
new subsection:
``(d) Presumption That Foreign Trust Has United States
Beneficiary.--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--
``(1) submits such information to the Secretary as the
Secretary may require with respect to such transfer, and
``(2) demonstrates to the satisfaction of the Secretary that
such trust satisfies the requirements of subparagraphs (A) and (B)
of subsection (c)(1).''.
(b) Effective Date.--The amendments made by this section shall
apply to transfers of property after the date of the enactment of this
Act.
SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY.
(a) In General.--Paragraph (1) of section 643(i) is amended--
(1) by striking ``directly or indirectly to'' and inserting
``(or permits the use of any other trust property) directly or
indirectly to or by'', and
(2) by inserting ``(or the fair market value of the use of such
property)'' after ``the amount of such loan''.
(b) Exception for Compensated Use.--Paragraph (2) of section 643(i)
is amended by adding at the end the following new subparagraph:
``(E) Exception for compensated use of property.--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.''.
(c) Application to Grantor Trusts.--Subsection (c) of section 679,
as amended by this Act, is amended by adding at the end the following
new paragraph:
``(6) Uncompensated use of trust property treated as a
payment.--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.''.
(d) Conforming Amendments.--Paragraph (3) of section 643(i) is
amended--
(1) by inserting ``(or use of property)'' after ``If any
loan'',
(2) by inserting ``or the return of such property'' before
``shall be disregarded'', and
(3) by striking ``regarding loan principal'' in the heading
thereof.
(e) Effective Date.--The amendments made by this section shall
apply to loans made, and uses of property, after the date of the
enactment of this Act.
SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF FOREIGN
TRUSTS.
(a) In General.--Paragraph (1) of section 6048(b) is amended by
inserting ``shall submit such information as the Secretary may
prescribe with respect to such trust for such year and'' before ``shall
be responsible to ensure''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT ON
CERTAIN FOREIGN TRUSTS.
(a) In General.--Subsection (a) of section 6677 is amended--
(1) by inserting ``the greater of $10,000 or'' before ``35
percent'', and
(2) by striking the last sentence and inserting the following:
``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).''
(b) Effective Date.--The amendments made by this section shall
apply to notices and returns required to be filed after December 31,
2009.
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.
(a) In General.--Section 871 is amended by redesignating subsection
(l) as subsection (m) and by inserting after subsection (k) the
following new subsection:
``(l) Treatment of Dividend Equivalent Payments.--
``(1) In general.--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.
``(2) Dividend equivalent.--For purposes of this subsection,
the term `dividend equivalent' means--
``(A) 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,
``(B) 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
``(C) any other payment determined by the Secretary to be
substantially similar to a payment described in subparagraph
(A) or (B).
``(3) Specified notional principal contract.--For purposes of
this subsection, the term `specified notional principal contract'
means--
``(A) any notional principal contract if--
``(i) in connection with entering into such contract,
any long party to the contract transfers the underlying
security to any short party to the contract,
``(ii) 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,
``(iii) the underlying security is not readily tradable
on an established securities market,
``(iv) 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
``(v) such contract is identified by the Secretary as a
specified notional principal contract,
``(B) 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.
``(4) Definitions.--For purposes of paragraph (3)(A)--
``(A) Long party.--The term `long party' 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.
``(B) Short party.--The term `short party' 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.
``(C) Underlying security.--The term `underlying security'
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.
``(5) Payments determined on gross basis.--For purposes of this
subsection, the term `payment' includes any gross amount which is
used in computing any net amount which is transferred to or from
the taxpayer.
``(6) Prevention of over-withholding.--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.
``(7) Coordination with chapters 3 and 4.--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.''.
(b) Effective Date.--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.
Subtitle B--Delay in Application of Worldwide Allocation of Interest
SEC. 551. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.
(a) In General.--Paragraphs (5)(D) and (6) of section 864(f) are
each amended by striking ``December 31, 2017'' and inserting ``December
31, 2020''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
Subtitle C--Budgetary Provisions
SEC. 561. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Notwithstanding section 6655 of the Internal Revenue Code of 1986,
in the case of a corporation with assets of not less than
$1,000,000,000 (determined as of the end of the preceding taxable
year)--
(1) the percentage under paragraph (1) of section 202(b) of the
Corporate Estimated Tax Shift Act of 2009 in effect on the date of
the enactment of this Act is increased by 23 percentage points,
(2) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or September
of 2015 shall be 121.5 percent of such amount,
(3) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or September
of 2019 shall be 106.5 percent of such amount, and
(4) the amount of the next required installment after an
installment referred to in paragraph (2) or (3) shall be
appropriately reduced to reflect the amount of the increase by
reason of such paragraph.
SEC. 562. PAYGO COMPLIANCE.
The budgetary effects of this Act, for purposes of complying with
the Statutory Pay-As-You-Go-Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, jointly submitted for printing in the
Congressional Record by the Chairman of the House and Senate Budget
Committees, provided that such statement has been submitted prior to
the vote on passage in the House acting first on this conference report
or amendments between the Houses.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.