[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.