1.Short title; amendment of 1986 Code; table of contents
(a)This Act may be cited as the Hiring Incentives to Restore Employment Act
.
(b)Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
Title I—Incentives for hiring and retaining unemployed workers
Sec. 101. Payroll tax forgiveness for hiring unemployed workers.
Sec. 102. Business credit for retention of certain newly hired individuals in 2010.
Title II—Expensing
Sec. 201. Increase in expensing of certain depreciable business assets.
Title III—Qualified tax credit bonds
Sec. 301. Issuer allowed refundable credit for certain qualified tax credit bonds.
Title IV—Extension of current surface transportation programs
Sec. 401. Short title.
Subtitle A—Federal-aid highways
Sec. 411. In general.
Sec. 412. Administrative expenses.
Sec. 413. Rescission of unobligated balances.
Sec. 414. Reconciliation of funds.
Subtitle B—National Highway Traffic Safety Administration, Federal Motor Carrier Safety Administration, and additional programs
Sec. 421. Extension of National Highway Traffic Safety Administration Highway Safety Programs.
Sec. 422. Extension of Federal Motor Carrier Safety Administration Programs.
Sec. 423. Additional programs.
Subtitle C—Public transportation programs
Sec. 431. Allocation of funds for planning programs.
Sec. 432. Special rule for urbanized area formula grants.
Sec. 433. Allocating amounts for capital investment grants.
Sec. 434. Apportionment of formula grants for other than urbanized areas.
Sec. 435. Apportionment based on fixed guideway factors.
Sec. 436. Authorizations for public transportation.
Sec. 437. Amendments to SAFETEA–LU.
Subtitle D—Revenue provisions
Sec. 441. Repeal of provision prohibiting the crediting of interest to the Highway Trust Fund.
Sec. 442. Restoration of certain foregone interest to Highway Trust Fund.
Sec. 443. Treatment of certain amounts appropriated to Highway Trust Fund.
Sec. 444. Termination of transfers from highway trust fund for certain repayments and credits.
Sec. 445. Extension of authority for expenditures.
Sec. 446. Level of obligation limitations.
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.
<enum>I</enum><header>Incentives for hiring and retaining unemployed workers</header>
<section id="H37C6CD3BB1944D9A9E637CF1DAD73726"><enum>101.</enum><header>Payroll tax forgiveness for hiring unemployed workers</header>
<subsection id="H554F7805436C4593B32079007941243E"><enum>(a)</enum><header>In general</header><text>Section 3111 is amended by adding at the end the following new subsection:</text>
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<subsection id="H1223AD826E7846B8827DDF731621BB0A"><enum>(d)</enum><header>Special exemption for certain individuals hired in 2010</header>
<paragraph id="H1EDCBB4AEFF94FFA8044AD89776188EA"><enum>(1)</enum><header>In general</header><text>Subsection (a) shall not apply to wages paid by a qualified employer with respect to employment during the period beginning on the day after the date of the enactment of this subsection and ending on December 31, 2010, of any qualified individual for services performed—</text>
<subparagraph id="H2A675423C74F4DF7993B8A828FD6875B"><enum>(A)</enum><text>in a trade or business of such qualified employer, or</text></subparagraph>
<subparagraph id="HA23E1C259C7C4865A73603C87FE9F6AB"><enum>(B)</enum><text>in the case of a qualified employer exempt from tax under section 501(a), in furtherance of the activities related to the purpose or function constituting the basis of the employer’s exemption under section 501.</text></subparagraph></paragraph>
<paragraph id="H64843391ECE24137AB6E4BA013788665"><enum>(2)</enum><header>Qualified employer</header><text>For purposes of this subsection—</text>
<subparagraph id="H5DEC172988DF4E60914061F2A129AFE6"><enum>(A)</enum><header>In general</header><text>The term <term>qualified employer</term> means any employer other than the United States, any State, or any political subdivision thereof, or any instrumentality of the foregoing.</text></subparagraph>
<subparagraph id="H01A8C7FDB66C49108A7BAD0DE9D47524"><enum>(B)</enum><header>Treatment of employees of post-secondary educational institutions</header><text>Notwithstanding subparagraph (A), the term <term>qualified employer</term> includes any employer which is a public institution of higher education (as defined in section 101(b) of the Higher Education Act of 1965).</text></subparagraph></paragraph>
<paragraph id="H103F2652C9DA40C89805382E4179CD29"><enum>(3)</enum><header>Qualified individual</header><text>For purposes of this subsection, the term <term>qualified individual</term> means any individual who—</text>
<subparagraph id="HEDD8C2087C884114BD8F27D18B3E4B16"><enum>(A)</enum><text>begins employment with a qualified employer after February 3, 2010, and before January 1, 2011,</text></subparagraph>
<subparagraph id="H6EEFB5EC58A642A58AC372D6FBA9C712"><enum>(B)</enum><text>certifies by signed affidavit, under penalties of perjury, that such individual has not been employed for more than 40 hours during the 60-day period ending on the date such individual begins such employment,</text></subparagraph>
<subparagraph id="H50FD52C6DC89425C8ACFCDEEAA3EA4DC"><enum>(C)</enum><text>is not employed by the qualified employer to replace another employee of such employer unless such other employee separated from employment voluntarily or for cause, and</text></subparagraph>
<subparagraph id="H1C8A559219E14A71A4BC462DFD7338EF"><enum>(D)</enum><text>is not an individual described in section 51(i)(1) (applied by substituting <quote>qualified employer</quote> for <quote>taxpayer</quote> each place it appears).</text></subparagraph></paragraph>
<paragraph id="HFE389D644B804AA696A73BF8CC22762D"><enum>(4)</enum><header>Election</header><text>A qualified employer may elect to have this subsection not apply. Such election shall be made in such manner as the Secretary may require.</text></paragraph>
<paragraph id="H7C5B30B23AD54B9296FDA0BE4C624319"><enum>(5)</enum><header>Special rule for first calendar quarter of 2010</header>
<subparagraph id="H8502D28FEA28464F979ADFAA50A1B67D"><enum>(A)</enum><header>Nonapplication of exemption during first quarter</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply with respect to wages paid during the first calendar quarter of 2010.</text></subparagraph>
<subparagraph id="H496176ADEE5C4A36A93CE2E8EEEE0FDA"><enum>(B)</enum><header>Crediting of first quarter exemption during second quarter</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HFE7E7FA2C8FD424AAEAEFAD8B171856D"><enum>(b)</enum><header>Coordination with work opportunity credit</header><text>Section 51(c) is amended by adding at the end the following new paragraph:</text>
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<paragraph id="H3C7A20D5ED604E43BDAE3817A1E092F7"><enum>(5)</enum><header>Coordination with payroll tax forgiveness</header><text>The term <term>wages</term> shall not include any amount paid or incurred to a qualified individual (as defined in section 3111(d)(3)) during the 1-year period beginning on the hiring date of such individual by a qualified employer (as defined in section 3111(d)) unless such qualified employer makes an election not to have section 3111(d) apply.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3758B3D4CA5442EB9B14BCDBFB1E96BA"><enum>(c)</enum><header>Transfers to Federal Old-Age and Survivors Insurance Trust Fund</header><text>There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (42 U.S.C. 401) amounts equal to the reduction in revenues to the Treasury by reason of the amendments made by subsection (a). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted.</text></subsection>
<subsection id="HB447ABE2D9294FE1BF8C77F8262515A5"><enum>(d)</enum><header>Application to Railroad Retirement Taxes</header>
<paragraph id="H8A53F6A232B64E9784749AD65E97ADDB"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block style="OLC" id="H193E02EC3F8242C8A8201DC238C57575" display-inline="no-display-inline">
<subsection id="H3C5BAB60B5654D2197407F5B317BE55E"><enum>(c)</enum><header>Special Rate for Certain Individuals Hired in 2010</header>
<paragraph id="HA136419D63974844B2657E42D7A3046B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph>
<paragraph id="H50F89C7BE0B842238CDC9FA026D3AC34"><enum>(2)</enum><header>Qualified employer</header><text display-inline="yes-display-inline">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.</text></paragraph>
<paragraph id="HEFDDBA0706A54DBEA6A23E84320DCD5A"><enum>(3)</enum><header>Qualified individual</header><text display-inline="yes-display-inline">For purposes of this subsection, the term ‘qualified individual’ means any individual who—</text>
<subparagraph id="H99B2E94332AB442A8F2538FCA9E8BA53"><enum>(A)</enum><text display-inline="yes-display-inline">begins employment with a qualified employer after February 3, 2010, and before January 1, 2011,</text></subparagraph>
<subparagraph id="H3C3A10C64EE6423B8CDCC9A8A5A4B073"><enum>(B)</enum><text display-inline="yes-display-inline">certifies by signed affidavit, under penalties of perjury, that such individual has not been employed for more than 40 hours during the 60-day period ending on the date such individual begins such employment,</text></subparagraph>
<subparagraph id="HDA2EBDB5F1464AF3B8EE46B1FC4BCC15"><enum>(C)</enum><text display-inline="yes-display-inline">is not employed by the qualified employer to replace another employee of such employer unless such other employee separated from employment voluntarily or for cause, and</text></subparagraph>
<subparagraph id="HC5C737F5E3D147D29002387729C3CE12"><enum>(D)</enum><text display-inline="yes-display-inline">is not an individual described in section 51(i)(1) (applied by substituting ‘qualified employer’ for ‘taxpayer’ each place it appears).</text></subparagraph></paragraph>
<paragraph id="H8FC750ADF0A449818883345F417E03B9"><enum>(4)</enum><header>Election</header><text display-inline="yes-display-inline">A qualified employer may elect to have this subsection not apply. Such election shall be made in such manner as the Secretary may require.</text></paragraph>
<paragraph id="HE27BEF7E176347C6B2D26C7662453713"><enum>(5)</enum><header>Special rule for first calendar quarter of 2010</header>
<subparagraph id="H70F2C3243FE74D8190FDCD3084E0DA3A"><enum>(A)</enum><header>Nonapplication of exemption during first quarter</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply with respect to compensation paid during the first calendar quarter of 2010.</text></subparagraph>
<subparagraph id="HEF577D4342474686801F4D3D755F6159"><enum>(B)</enum><header>Crediting of first quarter exemption during second quarter</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="H5B8FF13C642B4E648093037DFF760F90"><enum>(2)</enum><header>Transfers to social security equivalent benefit account</header><text display-inline="yes-display-inline">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.</text></paragraph></subsection>
<subsection id="H30CC521E05D14D0195977BE5BA18A1F1"><enum>(e)</enum><header>Effective Dates</header>
<paragraph id="HC370376194AE4DAB9CBE67DD439CD49F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph>
<paragraph id="H899B2BE7D73F42E890E67D306DD97EBF"><enum>(2)</enum><header>Railroad retirement taxes</header><text display-inline="yes-display-inline">The amendments made by subsection (d) shall apply to compensation paid after the date of the enactment of this Act.</text></paragraph></subsection></section>
<section id="H337FE2A13E3841FE9636B8BEBD123D7B"><enum>102.</enum><header>Business credit for retention of certain newly hired individuals in 2010</header>
<subsection id="HBFA6EC6DB72C44D28DC40A95217D8759"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxable year ending after the date of the enactment of this Act, the current year business credit determined under section 38(b) of the Internal Revenue Code of 1986 for such taxable year shall be increased, with respect to each retained worker with respect to which subsection (b)(2) is first satisfied during such taxable year, by the lesser of—</text>
<paragraph id="HFA51BB6B319F48F18DE799BB42DF441D"><enum>(1)</enum><text display-inline="yes-display-inline">$1,000, or</text></paragraph>
<paragraph id="H97F300E937C94F12B613D94976E776CE"><enum>(2)</enum><text display-inline="yes-display-inline">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).</text></paragraph></subsection>
<subsection id="HF0175CB3BAB547548118708FC9FAE9FB"><enum>(b)</enum><header>Retained worker</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>retained worker</term> means any qualified individual (as defined in section 3111(d)(3) or section 3221(c)(3) of the Internal Revenue Code of 1986)—</text>
<paragraph id="HD96BB2926E404418A0C3050C6F1050BC"><enum>(1)</enum><text>who was employed by the taxpayer on any date during the taxable year,</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7EEEE00BD5F346FA93B65651B2BCF91D"><enum>(2)</enum><text>who was so employed by the taxpayer for a period of not less than 52 consecutive weeks, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HAB60E83346A3411DB033E1E3A50D8DC4"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5412CE728C394B968A6A18180185F839"><enum>(c)</enum><header>Limitation on carrybacks</header><text>No portion of the unused business credit under section 38 of the Internal Revenue Code of 1986 for any taxable year which is attributable to the increase in the current year business credit under this section may be carried to a taxable year beginning before the date of the enactment of this section.</text></subsection>
<subsection id="HA51B5BDCF6C14EA38AC4A9D97A27849F"><enum>(d)</enum><header>Treatment of Possessions</header>
<paragraph id="H735AD9731BF549CF95BDBC59BBB3E822"><enum>(1)</enum><header>Payments to possessions</header>
<subparagraph id="H316707B738B6486BA3E3166C5949C70D"><enum>(A)</enum><header>Mirror code possessions</header><text display-inline="yes-display-inline">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.</text></subparagraph>
<subparagraph id="H048982A8E69E49CE832CA25AD4007D10"><enum>(B)</enum><header>Other possessions</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph>
<paragraph id="HF48477F612E249E9840F0CC3E8968EEA"><enum>(2)</enum><header>Coordination with credit allowed against united states income taxes</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HCDC0A3CBA10142EC86C049986BF53B72"><enum>(A)</enum><text display-inline="yes-display-inline">to whom a credit is allowed against taxes imposed by the possession by reason of this section for such taxable year, or</text></subparagraph>
<subparagraph id="H948C1C389D934C4790C8D1A5B4DBFCC5"><enum>(B)</enum><text display-inline="yes-display-inline">who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year.</text></subparagraph></paragraph>
<paragraph id="H5698C4127E7A4D5591D35DFBC6437F68"><enum>(3)</enum><header>Definitions and special rules</header>
<subparagraph id="H41E73BF2CD23416780BD4168AC7FD27F"><enum>(A)</enum><header>Possession of the united states</header><text display-inline="yes-display-inline">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.</text></subparagraph>
<subparagraph id="HCA9059EB255547FDB3C2CA52372FE102"><enum>(B)</enum><header>Mirror code tax system</header><text display-inline="yes-display-inline">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.</text></subparagraph>
<subparagraph id="H1E2427DECE1348EA959393447D78FAA1"><enum>(C)</enum><header>Treatment of payments</header><text display-inline="yes-display-inline">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.</text></subparagraph></paragraph></subsection></section>
<enum>II</enum><header>Expensing</header>
<section commented="no" display-inline="no-display-inline" id="HE02C05AE95C243F8A41D1FEC8C7CFA92"><enum>201.</enum><header>Increase in expensing of certain depreciable business assets</header>
<subsection commented="no" display-inline="no-display-inline" id="H4A8BC7AF48694870ADCAD1DF27CC1574"><enum>(a)</enum><header>In general</header><text>Subsection (b) of section 179 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA78B28A687FA448E88EC9A5474090846"><enum>(1)</enum><text>by striking <quote>($125,000 in the case of taxable years beginning after 2006 and before 2011)</quote> in paragraph (1) and inserting <quote>($250,000 in the case of taxable years beginning after 2007 and before 2011)</quote>,</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H37BD16343ADA45A9AABA5597C852AE18"><enum>(2)</enum><text>by striking <quote>($500,000 in the case of taxable years beginning after 2006 and before 2011)</quote> in paragraph (2) and inserting <quote>($800,000 in the case of taxable years beginning after 2007 and before 2011)</quote>,</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H9BBC4ACE0EF949B8B0BD53D2984B35DE"><enum>(3)</enum><text>by striking paragraphs (5) and (7), and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H50061F3C368243CAB95D52B20051DD54"><enum>(4)</enum><text>by redesignating paragraph (6) as paragraph (5).</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HC7C158EEBE514D00B10372516BFBDF31"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2009.</text></subsection></section>
<enum>III</enum><header>Qualified tax credit bonds</header>
<section id="H1ED8C5B24CB4453F9570B8F0C9675460" section-type="subsequent-section"><enum>301.</enum><header>Issuer allowed refundable credit for certain qualified tax credit bonds</header>
<subsection id="HDA28012D98184516BF86C43FC969C713"><enum>(a)</enum><header>Credit allowed</header><text display-inline="yes-display-inline">Section 6431 is amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8C5DEB36BE1C458BAEE4B18BC7C7231C" reported-display-style="italic" style="OLC">
<subsection id="H7F931C33687A4D9992B0477C40476678"><enum>(f)</enum><header>Application of section to certain qualified tax credit bonds</header>
<paragraph id="HBD5AD770F26A4EE889B6FEFABFA4EF44"><enum>(1)</enum><header>In general</header><text>In the case of any specified tax credit bond—</text>
<subparagraph id="HE9438E87FF6C4566A9024E4E81D920EB"><enum>(A)</enum><text>such bond shall be treated as a qualified bond for purposes of this section,</text></subparagraph>
<subparagraph id="H2E92618ADCC6421C9AD0CE425C040ED4"><enum>(B)</enum><text display-inline="yes-display-inline">subsection (a) shall be applied without regard to the requirement that the qualified bond be issued before January 1, 2011,</text></subparagraph>
<subparagraph id="H6F6850A1A1834703A8189443B0178E47"><enum>(C)</enum><text display-inline="yes-display-inline">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—</text>
<clause id="H3E765BEBB2424888A66FE9303C7B6CB2"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of interest payable under such bond on such date, or</text></clause>
<clause id="HA3D036F6721F4E71BDDBF02C904201DD"><enum>(ii)</enum><text display-inline="yes-display-inline">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),</text></clause></subparagraph>
<subparagraph id="HFB4A16623BA945E9929D6B43ECCBD080"><enum>(D)</enum><text>interest on any such bond shall be includible in gross income for purposes of this title,</text></subparagraph>
<subparagraph id="HF4AA573D948B437E97F844F6D2CACF63"><enum>(E)</enum><text>no credit shall be allowed under section 54A with respect to such bond,</text></subparagraph>
<subparagraph id="HB0BD68AD14F947C0A7347B166C85D1AB"><enum>(F)</enum><text>any payment made under subsection (b) shall not be includible as income for purposes of this title, and</text></subparagraph>
<subparagraph id="H489A62BE5A274FA4B8175638C1A208EC"><enum>(G)</enum><text>the deduction otherwise allowed under this title to the issuer of such bond with respect to interest paid under such bond shall be reduced by the amount of the payment made under this section with respect to such interest.</text></subparagraph></paragraph>
<paragraph id="HCE754222271D4D8388DC6A9D51112623"><enum>(2)</enum><header>Special rule for new clean renewable energy bonds and qualified energy conservation bonds</header><text display-inline="yes-display-inline">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).</text></paragraph>
<paragraph id="H9116DC7C9585455B90A202539DBE90BB"><enum>(3)</enum><header>Specified tax credit bond</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>specified tax credit bond</quote> means any qualified tax credit bond (as defined in section 54A(d)) if—</text>
<subparagraph id="HCAF695CFF3A04567BE5A3EF0691A8C2D"><enum>(A)</enum><text display-inline="yes-display-inline">such bond is—</text>
<clause id="HD4CAE8D28E8F47279C1CB5A87362EEC9"><enum>(i)</enum><text display-inline="yes-display-inline">a new clean renewable energy bond (as defined in section 54C),</text></clause>
<clause id="H359218D925864178A5C388D51583970A"><enum>(ii)</enum><text display-inline="yes-display-inline">a qualified energy conservation bond (as defined in section 54D),</text></clause>
<clause id="HE1B023AD4EB541EB83D0BC5CC85623C7"><enum>(iii)</enum><text display-inline="yes-display-inline">a qualified zone academy bond (as defined in section 54E), or</text></clause>
<clause id="H09574D9206F34E2D9866771E8A5594AA"><enum>(iv)</enum><text display-inline="yes-display-inline">a qualified school construction bond (as defined in section 54F), and</text></clause></subparagraph>
<subparagraph id="HE636863EDEC6427FAEE3B5F0ACFD364A"><enum>(B)</enum><text display-inline="yes-display-inline">the issuer of such bond makes an irrevocable election to have this subsection apply.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H677CDF4B73CA48A6A9A93B71CCA225A7"><enum>(b)</enum><header>Technical corrections relating to qualified school construction bonds</header>
<paragraph id="HEB5E36A74C994723AB240EBF42B921DA"><enum>(1)</enum><text>The second sentence of section 54F(d)(1) is amended by striking <quote>by the State</quote> and inserting <quote>by the State education agency (or such other agency as is authorized under State law to make such allocation)</quote>.</text></paragraph>
<paragraph id="H5F6A10CBADDE43B1928B90D011E1BF61"><enum>(2)</enum><text>The second sentence of section 54F(e) is amended by striking <quote>subsection (d)(4)</quote> and inserting <quote>paragraphs (2) and (4) of subsection (d)</quote>.</text></paragraph></subsection>
<subsection id="HFD0F6663F47E434BB08F1F71B0A7B7EE"><enum>(c)</enum><header>Effective dates</header>
<paragraph id="HC0409D4121F041E8BA71FE75A1164DDD"><enum>(1)</enum><header>In general</header><text>The amendment made by subsection (a) shall apply to bonds issued after the date of the enactment of this Act.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBDDBE2A134FF4AE28C9ABF016E61073C"><enum>(2)</enum><header>Technical corrections</header><text>The amendments made by subsection (b) shall take effect as if included in section 1521 of the American Recovery and Reinvestment Tax Act of 2009.</text></paragraph></subsection></section>
<enum>IV</enum><header>Extension of current surface transportation programs</header>
<section id="HCB9B9BD06C884B71BBD385E71E0A5EAC" section-type="subsequent-section"><enum>401.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Surface Transportation Extension Act of 2010</short-title></quote>.</text></section>
<subtitle id="H2A3A6AC5C0604885A5503951F2FE9186"><enum>A</enum><header>Federal-aid highways</header>
<section id="HBDCE61451A97401BB817110997881B56"><enum>411.</enum><header>In general</header>
<subsection id="HE5D6192E325C4AA0AB07CDE0E3223E1E"><enum>(a)</enum><header>In general</header><text>Except as provided in this Act, requirements, authorities, conditions, eligibilities, limitations, and other provisions authorized under titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), the SAFETEA–LU Technical Corrections Act of 2008 (122 Stat. 1572), titles I and VI of the Intermodal Surface Transportation Act of 1991 (105 Stat. 1914), titles I and V of the Transportation Equity Act for the 21st Century (112 Stat. 107), and title 23, United States Code (excluding chapter 4 of that title), which would otherwise expire on or cease to apply after September 30, 2009, or the date specified in section 106(3) of the Continuing Appropriations Resolution, 2010 (Public Law 111–68), are incorporated by reference and shall continue in effect until December 31, 2010.</text></subsection>
<subsection id="H31A644DA1C3545F1B054866F0EAEC0B4"><enum>(b)</enum><header>Authorization of appropriations</header><text>Except as provided in section 412, there are authorized to be appropriated out of the Highway Trust Fund (other than the Mass Transit Account)—</text>
<paragraph id="H1041A59BE323420493A92C96E95CA416"><enum>(1)</enum><text>for fiscal year 2010, a sum equal to the total amount authorized to be appropriated out of the Highway Trust Fund for programs, projects, and activities for fiscal year 2009 under titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), and title 23, United States Code (excluding chapter 4 of that title); and</text></paragraph>
<paragraph id="H2045932A673D47A6A2113746229144D9"><enum>(2)</enum><text>for the period beginning on October 1, 2010, and ending on December 31, 2010, a sum equal to ¼ of the total amount authorized to be appropriated out of the Highway Trust Fund for programs, projects, and activities for fiscal year 2009 under titles I, V, and VI of the SAFETEA–LU (119 Stat. 1144), and title 23, United States Code (excluding chapter 4 of that title).</text></paragraph></subsection>
<subsection id="H50BC7A2398BD4CE69992076C3587416A"><enum>(c)</enum><header>Use of funds</header>
<paragraph id="HB93DE43BFF164F0CB2F5E00806B88C24"><enum>(1)</enum><header>Fiscal year 2010</header><text>Except as otherwise expressly provided in this Act, funds authorized to be appropriated under subsection (b)(1) for fiscal year 2010 shall be distributed, administered, limited, and made available for obligation in the same manner and at the same level as funds authorized to be appropriated out of the Highway Trust Fund for fiscal year 2009 to carry out programs, projects, activities, eligibilities, and requirements under the SAFETEA–LU (119 Stat. 1144), the SAFETEA–LU Technical Corrections Act of 2008 (122 Stat. 1572), titles I and VI of the Intermodal Surface Transportation Act of 1991 (105 Stat. 1914), titles I and V of the Transportation Equity Act for the 21st Century (112 Stat. 107), and title 23, United States Code (excluding chapter 4 of that title).</text></paragraph>
<paragraph id="H1247F969F14E48B9B1E8546D50199D41"><enum>(2)</enum><header>Fiscal year 2011</header><text>Except as otherwise expressly provided in this Act, funds authorized to be appropriated under subsection (b)(2) for the period beginning on October 1, 2010, and ending on December 31, 2010, shall be distributed, administered, limited, and made available for obligation in the same manner and at the same level as ¼ of the total amount of funds authorized to be appropriated out of the Highway Trust Fund for fiscal year 2009 to carry out programs, projects, activities, eligibilities, and requirements under the SAFETEA–LU (119 Stat. 1144), the SAFETEA–LU Technical Corrections Act of 2008 (122 Stat. 1572), titles I and VI of the Intermodal Surface Transportation Act of 1991 (105 Stat. 1914), titles I and V of the Transportation Equity Act for the 21st Century (112 Stat. 107), and title 23, United States Code (excluding chapter 4 of that title).</text></paragraph>
<paragraph id="H3CBD91B0AD554949812909A3288FDBA1"><enum>(3)</enum><header>Calculation</header><text>The amounts authorized to be appropriated under subsection (b) shall be calculated without regard to any rescission or cancellation of funds or contract authority for fiscal year 2009 under the SAFETEA–LU (119 Stat. 1144) or any other law.</text></paragraph>
<paragraph id="H906EF327E2CD4397BDEAED052243583F"><enum>(4)</enum><header>Contract authority</header>
<subparagraph id="HBBC360FD62254516B64E35EA7724299F"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), funds authorized to be appropriated under this section shall be available for obligation and shall be administered in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code, and—</text>
<clause id="H4A522437CA844B98A848B10128E8357F"><enum>(i)</enum><text>for fiscal year 2010, shall be subject to a limitation on obligations for Federal-aid highways and highway safety construction programs included in an Act making appropriations for fiscal year 2010 or a portion of that fiscal year; and</text></clause>
<clause id="H9D7ADD0712CE40B69DEB5056848A495D"><enum>(ii)</enum><text>for the period beginning on October 1, 2010, and ending on December 31, 2010, shall be subject to a limitation on obligations included in an Act making appropriations for fiscal year 2011 or a portion of that fiscal year, except that during such period obligations subject to such limitation shall not exceed ¼ of the limitation on obligations included in an Act making appropriations for fiscal year 2011.</text></clause></subparagraph>
<subparagraph id="H462226A8D19549889109A3B7C3B87CAE"><enum>(B)</enum><header>Exceptions</header><text>A limitation on obligations described in clause (i) or (ii) of subparagraph (A) shall not apply to any obligation under—</text>
<clause id="HD5FA372E69D649EC9847084853AB6DA3"><enum>(i)</enum><text>section 125 of title 23, United States Code; or</text></clause>
<clause id="H1C5F5179E572494E9D0EA56EA985BD55"><enum>(ii)</enum><text>section 105 of title 23, United States Code—</text>
<subclause id="H7FB7AFC9D308439BB128A09901CACA1A"><enum>(I)</enum><text>for fiscal year 2010, only in an amount equal to $639,000,000; and</text></subclause>
<subclause id="HC0EEDDF3945E401FAA457DB3A94E7B2E"><enum>(II)</enum><text>for the period beginning on October 1, 2010, and ending on December 31, 2010, only in an amount equal to $159,750,000.</text></subclause></clause></subparagraph></paragraph>
<paragraph id="HF51A3A173D9E427290A9B679A7633161"><enum>(5)</enum><header>Calculations for distribution of obligation limitation</header><text>Upon enactment of an Act making appropriations for the Department of Transportation for fiscal year 2011 (other than an Act or resolution making continuing appropriations), the Secretary shall—</text>
<subparagraph id="HA859D66D33AC4D42944B8DE321CA0E5B"><enum>(A)</enum><text>as necessary for purposes of making the calculations for the distribution of any obligation limitation under such Act, annualize the amount of contract authority provided under this Act for Federal-aid highways and highway safety construction programs; and</text></subparagraph>
<subparagraph id="HA1349C38877F40A3877AC931F80F62CC"><enum>(B)</enum><text>multiply the resulting distribution of any obligation limitation under such Act by ¼.</text></subparagraph></paragraph></subsection>
<subsection id="H191DB8F4305A4C1BA07E09AAA8F4D027"><enum>(d)</enum><header>Extension and flexibility for certain allocated programs</header>
<paragraph id="H986F6EC7484C4F989CF970F8D400171D"><enum>(1)</enum><header>Fiscal year 2010</header><text>Notwithstanding any other provision of law, for fiscal year 2010, the portion of the share of funds of a State under subsection (b)(1) determined by the amount that the State received or was authorized to receive for fiscal year 2009 to carry out sections 1301, 1302, 1307, 1702, and 1934 of the SAFETEA–LU (119 Stat. 1198, 1204, 1217, 1256, and 1485), and section 144(f)(1) of title 23, United States Code, shall be—</text>
<subparagraph id="H05DC8560BDE74C38B4848BFABD675ABF"><enum>(A)</enum><text>made available to the State for programs apportioned under sections 104(b) and 144 of title 23, United States Code, and in the same proportion for each such program that—</text>
<clause id="HE7124B87D7774A48BC55DEA22A1DC30B"><enum>(i)</enum><text>the amount apportioned to the State for that program for fiscal year 2009; bears to</text></clause>
<clause id="H4B010DF5DCE649EEAB7B7AE4AE8E83A6"><enum>(ii)</enum><text>the amount apportioned to the State for fiscal year 2009 for all programs apportioned under such sections of such Code; and</text></clause></subparagraph>
<subparagraph id="H9243D12E00FF4DE692A64A91236F79F7"><enum>(B)</enum><text>administered in the same manner and with the same period of availability as such funding is administered under programs identified in subparagraph (A), except that no funds may be used to carry out the project described in section 1307(d)(1) of the SAFETEA–LU (119 Stat. 1217; 122 Stat. 1577).</text></subparagraph></paragraph>
<paragraph id="H4FF61E094C8C442C84E7E4813FA6F80B"><enum>(2)</enum><header>Fiscal year 2011</header><text>Notwithstanding any other provision of law, for the period beginning on October 1, 2010, and ending on December 31, 2010, the portion of the share of funds of a State under subsection (b)(2) determined by ¼ of the amount that the State received or was authorized to receive for fiscal year 2009 to carry out sections 1301, 1302, 1307, 1702, and 1934 of the SAFETEA–LU (119 Stat. 1198, 1204, 1217, 1256, and 1485) and section 144(f)(1) of title 23, United States Code, shall be—</text>
<subparagraph id="HB433FAA0DB16480F931233A27633A0DC"><enum>(A)</enum><text>made available to the State for programs apportioned under sections 104(b) and 144 of title 23, United States Code, and in the same proportion for each such program that—</text>
<clause id="H8902EFD260324B7EB526E2BF8668A203"><enum>(i)</enum><text>the amount apportioned to the State for that program for fiscal year 2009; bears to</text></clause>
<clause id="HB27FAEBD24A0490B91E9187DD5D7030D"><enum>(ii)</enum><text>the amount apportioned to the State for fiscal year 2009 for all programs apportioned under such sections of such Code; and</text></clause></subparagraph>
<subparagraph id="H2746225572734C8AA7990C14A6A9CF14"><enum>(B)</enum><text>administered in the same manner and with the same period of availability as such funding is administered under programs identified in subparagraph (A), except that no funds may be used to carry out the project described in section 1307(d)(1) of the SAFETEA–LU (119 Stat. 1217; 122 Stat. 1577).</text></subparagraph></paragraph>
<paragraph id="H914B9E7FBB9447C38C1D978EF14A30F6"><enum>(3)</enum><header>Territories and Puerto Rico</header>
<subparagraph id="HAC753DC2260B4CAC961207225DDDDA00"><enum>(A)</enum><header>Fiscal year 2010</header><text>Notwithstanding any other provision of law, for fiscal year 2010, the portion of the share of funds of a territory or Puerto Rico under paragraph (b)(1) determined by the amount that the territory or Puerto Rico received or was authorized to receive for fiscal year 2009 to carry out section 1934 of SAFETEA–LU (119 Stat. 1485), shall be—</text>
<clause id="HBABAA460E9BE4DEABF50521FEFF57C68"><enum>(i)</enum><text>for a territory, made available and administered in the same manner as funding is made available and administered under section 215 of title 23, United States Code; and</text></clause>
<clause id="H3230BD2A12664849A7026CD9E38C004C"><enum>(ii)</enum><text>for Puerto Rico, made available and administered in the same manner as funding is made available and administered under section 165 of title 23, United States Code.</text></clause></subparagraph>
<subparagraph id="HF2F5E00B5009415999E5C5C5EB1BEB6D"><enum>(B)</enum><header>Fiscal year 2011</header><text>Notwithstanding any other provision of law, for the period beginning on October 1, 2010, and ending on December 31, 2010, the portion of the share of funds of a territory or Puerto Rico under paragraph (b)(2) determined by ¼ of the amount that the territory or Puerto Rico received or was authorized to receive for fiscal year 2009 to carry out section 1934 of SAFETEA–LU (119 Stat. 1485), shall be—</text>
<clause id="H16E87414CD95469A85D8E67DB6F4FC90"><enum>(i)</enum><text>for a territory, made available and administered in the same manner as funding is made available and administered under section 215 of title 23, United States Code; and</text></clause>
<clause id="H157FA6E437164604BA4094834A54EA79"><enum>(ii)</enum><text>for Puerto Rico, made available and administered in the same manner as funding is made available and administered under section 165 of title 23, United States Code.</text></clause></subparagraph>
<subparagraph id="H00E99963565643C3919E43AF886EE9CE"><enum>(C)</enum><header>Territory defined</header><text>In this paragraph, the term <term>territory</term> means any of the following territories of the United States: American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, or the United States Virgin Islands.</text></subparagraph></paragraph>
<paragraph id="HDAAD345D11E24CE1ADB69E3BE27A0D71"><enum>(4)</enum><header>Additional funds</header>
<subparagraph id="H4FC9304AAEF14D0FA3CA3EC29B7DF362"><enum>(A)</enum><header>In general</header><text>No additional funds shall be provided for any project or activity under subsection (c), or paragraph (1) or (2) of this subsection, that the Secretary of Transportation determines was sufficiently funded before or during fiscal year 2009 to achieve the authorized purpose of the project or activity.</text></subparagraph>
<subparagraph id="HEDE9AB049AED49D2A53BDA895DF404B4"><enum>(B)</enum><header>Reservation and redistribution of funds</header><text>Funds made available in accordance with paragraph (1) or (2) of subsection (c) or paragraph (1) or (2) of this subsection for a project or activity described in subparagraph (A) shall be—</text>
<clause id="H6D59AB5632074DE1BD60102AA9900315"><enum>(i)</enum><text>reserved by the Secretary of Transportation; and</text></clause>
<clause id="HF1B2942E87914C3B833235BFDAAE60F2"><enum>(ii)</enum><text>distributed to each State in accordance with paragraph (1) or (2) of subsection (c), or paragraph (1) or (2) of this subsection, as appropriate, for use in carrying out other highway projects and activities extended by subsection (c) or this subsection, in the proportion that—</text>
<subclause id="H305AD6327D3D4320A37A35DA4E12CB5E"><enum>(I)</enum><text>the total amount of funds made available for fiscal year 2009 for projects and activities described in subparagraph (A) in the State; bears to</text></subclause>
<subclause id="H4EE53B8CF1B148558B496B67EBBBDB7D"><enum>(II)</enum><text>the total amount of funds made available for fiscal year 2009 for those projects and activities in all States.</text></subclause></clause></subparagraph></paragraph></subsection>
<subsection id="H47EAF6950F374FDBB39DF44B21D4716F"><enum>(e)</enum><header>Extension of Authorizations Under Title V of SAFETEA–LU</header>
<paragraph id="H3D5D13DEE0604C5A8A1AE8DB5B8EBE9F"><enum>(1)</enum><header>In general</header><text>The programs authorized under paragraphs (1) through (5) of section 5101(a) of the SAFETEA–LU (119 Stat. 1779) shall be continued—</text>
<subparagraph id="HEF119337CA59453DAABF83AC9F202309"><enum>(A)</enum><text>for fiscal year 2010, at the funding levels authorized for those programs for fiscal year 2009; and</text></subparagraph>
<subparagraph id="H1E5822C94C274552B6419AEA92AE62F9"><enum>(B)</enum><text>for the period beginning on October 1, 2010, and ending on December 31, 2010, at ¼ the funding levels authorized for those programs for fiscal year 2009.</text></subparagraph></paragraph>
<paragraph id="H2CA0113A44C94E479675E27A6EB40CE4"><enum>(2)</enum><header>Distribution of funds</header><text>Funds for programs continued under paragraph (1) shall be distributed to major program areas under those programs in the same proportions as funds were allocated for those program areas for fiscal year 2009, except that designations for specific activities shall not be required to be continued for—</text>
<subparagraph id="HD4B1779BE2424ABC9B27C9BA7D10E4A0"><enum>(A)</enum><text>fiscal year 2010; or</text></subparagraph>
<subparagraph id="HFA20FF3E8A6944498F5629FB8B4DF8F3"><enum>(B)</enum><text>the period beginning on October 1, 2010, and ending on December 31, 2010.</text></subparagraph></paragraph>
<paragraph id="H340581DABAF44E9F8170B2DFE1EE22FA"><enum>(3)</enum><header>Additional funds</header>
<subparagraph id="HA7FD0C8B077C4D61AF51FE19ED74307B"><enum>(A)</enum><header>In general</header><text>No additional funds shall be provided for any project or activity under this subsection that the Secretary of Transportation determines was sufficiently funded before or during fiscal year 2009 to achieve the authorized purpose of the project or activity.</text></subparagraph>
<subparagraph id="H6E27C0913B8A4C14A55803177F41B3F4"><enum>(B)</enum><header>Distribution</header><text>Funds that would have been made available under paragraph (1) for a project or activity but for the prohibition under subparagraph (A) shall be distributed in accordance with paragraph (2).</text></subparagraph></paragraph></subsection></section>
<section id="HA3FFBAE019B74033A170C63DE9FEED33"><enum>412.</enum><header>Administrative expenses</header>
<subsection id="H75862A9F3788495A8B756650CF27D9B8"><enum>(a)</enum><header>Authorization of contract authority</header><text>Notwithstanding any other provision of this Act or any other law, there are authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account), from amounts provided under section 411, for administrative expenses of the Federal-aid highway program—</text>
<paragraph id="H306CBB6B47F24ACB91F4BCCE17CC66F7"><enum>(1)</enum><text>$422,425,000 for fiscal year 2010; and</text></paragraph>
<paragraph id="H3D1EEAF6533E4C1D9D2251630CB7D6A5"><enum>(2)</enum><text>$105,606,250 for the period beginning on October 1, 2010, and ending on December 31, 2010.</text></paragraph></subsection>
<subsection id="H43BA36CC6CBF423FBCF766922261D5BD"><enum>(b)</enum><header>Contract authority</header><text>Funds authorized to be appropriated by this section shall be—</text>
<paragraph id="HC5C33DB5E51E4EB0ACE3FAE711D51D90"><enum>(1)</enum><text>available for obligation, and shall be administered, in the same manner as if such funds were apportioned under chapter 1 of title 23, United States Code; and</text></paragraph>
<paragraph id="HA378DC46AB49487A923EA62A39F41E6E"><enum>(2)</enum><text>subject to a limitation on obligations for Federal-aid highways and highway safety construction programs, except that such funds shall remain available until expended.</text></paragraph></subsection></section>
<section id="H9DB744D16637422EB8516750B57351E3"><enum>413.</enum><header>Rescission of unobligated balances</header>
<subsection id="H2A564D29D0194AEAAAE8108CF85DFCB1"><enum>(a)</enum><header>In general</header><text>The Secretary of Transportation shall restore funds rescinded pursuant to section 10212 of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1937) to the States and to the programs from which the funds were rescinded.</text></subsection>
<subsection id="H2001A17C887242A3AC75EF521FDE5F93"><enum>(b)</enum><header>Administration of funds</header><text>The restored amounts shall be administered in the same manner as the funds originally rescinded, except those funds may only be used with an obligation limitation provided in an Act making appropriations for Federal-aid highways and highway safety construction programs enacted after implementation of the rescission under section 10212 of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1937).</text></subsection>
<subsection id="H44B3B51D3CF34780A31453F5BDE6BF56"><enum>(c)</enum><header>Funding</header>
<paragraph id="HCD4F06C37301453BB58EB5F2C26F90BE"><enum>(1)</enum><header>In general</header><text>There is authorized to be appropriated from the Highway Trust Fund (other than the Mass Transit Account) for fiscal year 2010 to carry out this section an amount equal to the amount of funds rescinded under section 10212 of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1937).</text></paragraph>
<paragraph id="HCE132F2DDC274D94B8C7D9B38EC75285"><enum>(2)</enum><header>Availability for obligation</header><text>Funds authorized to be appropriated by this section shall be—</text>
<subparagraph id="HCB0BC60F12BD4481B36B9BCE74487A60"><enum>(A)</enum><text>made available under this section and available for obligation in the same manner as if the funds were apportioned under chapter 1 of title 23, United States Code, except that the funds shall retain the characteristics of the funds originally rescinded; and</text></subparagraph>
<subparagraph id="HEB49AA9331D94C28B1D465260ABF23D5"><enum>(B)</enum><text>subject to a limitation on obligations for Federal-aid highways and highway safety construction programs included in an Act making appropriations for fiscal year 2010 or a portion of the fiscal year.</text></subparagraph></paragraph></subsection>
<subsection id="HBAD69BCE902141CC9B99CE49F19C8B60"><enum>(d)</enum><header>Limitation</header><text>No funds authorized to be restored under this section shall be restored after the end of fiscal year 2010.</text></subsection></section>
<section id="H7FB64407B0E64B8FA75DE44F7D2C8EF8"><enum>414.</enum><header>Reconciliation of funds</header><text display-inline="no-display-inline">The Secretary shall reduce the amount apportioned or allocated for a program, project, or activity under this title by amounts apportioned or allocated pursuant to the Continuing Appropriations Resolution, 2010 (Public Law 111–68).</text></section></subtitle>
<subtitle id="H2BCFF236E8DD4D499CEFC8F5B1CBC699"><enum>B</enum><header>National Highway Traffic Safety Administration, Federal Motor Carrier Safety Administration, and additional programs</header>
<section id="H295F881854C14465992F8DB307BFBCD9"><enum>421.</enum><header>Extension of National Highway Traffic Safety Administration Highway Safety Programs</header>
<subsection id="HB0E67769F5AD411B905B6C0C10C7AAF7"><enum>(a)</enum><header>Chapter 4 highway safety programs</header><text>Section 2001(a)(1) of the SAFETEA–LU (119 Stat. 1519) is amended—</text>
<paragraph id="H49EED44131234EA188FEB52DE938B16D"><enum>(1)</enum><text>by striking <quote>and</quote>; and</text></paragraph>
<paragraph id="HDAAC967287E5436DA35B8F8F4FEFA01E"><enum>(2)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $235,000,000 for fiscal year 2010, and $58,750,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></paragraph></subsection>
<subsection id="H17B3D4B674F44BD488737B160A6287C8"><enum>(b)</enum><header>Highway safety research and development</header><text>Section 2001(a)(2) of the SAFETEA–LU (119 Stat. 1519) is amended—</text>
<paragraph id="H1C4719E9B58D487D93FA40D39D3F0708"><enum>(1)</enum><text>by striking <quote>and</quote>; and</text></paragraph>
<paragraph id="H0D1BAEED4FCB4885AC05485A92F936DA"><enum>(2)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $107,329,000 for fiscal year 2010, and $27,061,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></paragraph></subsection>
<subsection id="HB8019DFAFAE2484B961C1A294D336E93"><enum>(c)</enum><header>Occupant protection incentive grants</header>
<paragraph id="H77E3BD6C8F8848C3BADDA1BDE6818442"><enum>(1)</enum><header>Extension of program</header><text>Section 405(a) of title 23, United States Code, is amended—</text>
<subparagraph id="H527F5130A42745B9816C5F563CB6EC5D"><enum>(A)</enum><text>in paragraph (3), by striking <quote>6</quote> and inserting <quote>8</quote>; and</text></subparagraph>
<subparagraph id="H8583F253DBEB4FAC8628CFFB64865D3C"><enum>(B)</enum><text>in paragraph (4)(C), by striking <quote>fifth and sixth</quote> and inserting <quote>fifth through eighth</quote>.</text></subparagraph></paragraph>
<paragraph id="H4EB9247968E743748CA578DD7B68B38F"><enum>(2)</enum><header>Authorization of appropriations</header><text>Section 2001(a)(3) of the SAFETEA–LU (119 Stat. 1519) is amended—</text>
<subparagraph id="HF44CA2B7072E4B7790CC60840082D4A5"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text></subparagraph>
<subparagraph id="H4B7A48DD47BE42CFA6FF321B322D1281"><enum>(B)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $25,000,000 for fiscal year 2010, and $6,250,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H28D9C9FA9DFD4A2693D43DEE984F1BBB"><enum>(d)</enum><header>Safety belt performance grants</header><text>Section 2001(a)(4) of the SAFETEA–LU (119 Stat. 1519) is amended—</text>
<paragraph id="HD4D8EC65B63A4D84A6324C936071D21E"><enum>(1)</enum><text>by striking <quote>and</quote>; and</text></paragraph>
<paragraph id="HA11815B4118C417C8092EB90FA03371F"><enum>(2)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $124,500,000 for fiscal year 2010, and $31,125,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></paragraph></subsection>
<subsection id="H6889019D8B744B9185279CF2F35675E3"><enum>(e)</enum><header>State traffic safety information system improvements</header><text>Section 2001(a)(5) of the SAFETEA–LU (119 Stat. 1519) is amended—</text>
<paragraph id="H504EEDD971F340679826FCDB0B683E5B"><enum>(1)</enum><text>by striking <quote>and</quote>; and</text></paragraph>
<paragraph id="HAD7C095A82044A22A0470096507360E0"><enum>(2)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $34,500,000 for fiscal year 2010, and $8,625,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></paragraph></subsection>
<subsection id="HB750DB11A50E42569B3604643DDDABCD"><enum>(f)</enum><header>Alcohol-impaired driving countermeasures incentive grant program</header>
<paragraph id="HB5DAC0E105254E8F8BFC313550006640"><enum>(1)</enum><header>Extension of program</header><text>Section 410 of title 23, United States Code, is amended—</text>
<subparagraph id="H9AAE60E935AC449EAF07CABAFF384982"><enum>(A)</enum><text>in subsection (a)(3)(C), by striking <quote>fifth, sixth, seventh, and eighth</quote> and inserting <quote>fifth through tenth</quote>; and</text></subparagraph>
<subparagraph id="HFF73EA3B83794A299B094FF89DCF04B4"><enum>(B)</enum><text>in subsection (b)(2)(C), by striking <quote>2008 and 2009</quote> and inserting <quote>2008, 2009, 2010, and 2011</quote>.</text></subparagraph></paragraph>
<paragraph id="H50492283A5024946BD6F9CB941052234"><enum>(2)</enum><header>Authorization of appropriations</header><text>Section 2001(a)(6) of the SAFETEA–LU (119 Stat. 1519) is amended—</text>
<subparagraph id="HA4EF9E2778A14692B25862FE1C37E2A6"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text></subparagraph>
<subparagraph id="H0CC401BE825E4A2AA70BDF3562C99D6F"><enum>(B)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $139,000,000 for fiscal year 2010, and $34,750,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H910B043EA7924E9A812C0C0336A8E686"><enum>(g)</enum><header>National driver register</header><text>Section 2001(a)(7) of the SAFETEA–LU (119 Stat. 1520) is amended—</text>
<paragraph id="HD43AAE473BFB409787A4DD30B9AE7B38"><enum>(1)</enum><text>by striking <quote>and</quote>; and</text></paragraph>
<paragraph id="HF069E0ABD3FA4DB2811BA92D82912F80"><enum>(2)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $4,078,000 for fiscal year 2010, and $1,029,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></paragraph></subsection>
<subsection id="HD3499A7BD79E499EA22358A175B15CEF"><enum>(h)</enum><header>High visibility enforcement program</header>
<paragraph id="H5BFF3EC31D3B4FC4A7D327EA971D58DF"><enum>(1)</enum><header>Extension of program</header><text>Section 2009(a) of the SAFETEA–LU (23 U.S.C. 402 note) is amended by striking <quote>2009</quote> and inserting <quote>2011</quote>.</text></paragraph>
<paragraph id="H118E42D8C33440DD878BE58529AA6E32"><enum>(2)</enum><header>Authorization of appropriations</header><text>Section 2001(a)(8) of the SAFETEA–LU (119 Stat. 1520) is amended—</text>
<subparagraph id="HF93551E0BD3744D291B943C237395AF2"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text></subparagraph>
<subparagraph id="HFA1457965A774A5B9CB0B56846B46B6B"><enum>(B)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $29,000,000 for fiscal year 2010, and $7,250,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H432EA3697E194B8FA6D861543FEED8D2"><enum>(i)</enum><header>Motorcyclist safety</header>
<paragraph id="H6C7204977A294AD580D1879170227EC6"><enum>(1)</enum><header>Extension of program</header><text>Section 2010(d)(1)(B) of the SAFETEA–LU (23 U.S.C. 402 note) is amended by striking <quote>and fourth</quote> and inserting <quote>fourth, fifth, and sixth</quote>.</text></paragraph>
<paragraph id="H7A19D0E3A9CF4EDB8AFE64BCC4BC0DF7"><enum>(2)</enum><header>Authorization of appropriations</header><text>Section 2001(a)(9) of the SAFETEA–LU (119 Stat. 1520) is amended—</text>
<subparagraph id="H90949406B1144DCC9911C2CDF94BAE17"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text></subparagraph>
<subparagraph id="H0417F3304E67429E9B51713B5F3BAB4E"><enum>(B)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $7,000,000 for fiscal year 2010, and $1,750,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="H2582A225021842EAA6F4AF3837B9910A"><enum>(j)</enum><header>Child safety and child booster seat safety incentive grants</header>
<paragraph id="H020D29171436470C9F480CC4B6CBBFA3"><enum>(1)</enum><header>Extension of program</header><text>Section 2011(c)(2) of the SAFETEA–LU (23 U.S.C. 405 note) is amended by striking <quote>fourth fiscal year</quote> and inserting <quote>fourth, fifth, and sixth fiscal years</quote>.</text></paragraph>
<paragraph id="HC1589BE0881146AAAB38326A0ACFFC71"><enum>(2)</enum><header>Authorization of appropriations</header><text>Section 2001(a)(10) of the SAFETEA–LU (119 Stat. 1520) is amended—</text>
<subparagraph id="HB74B4D47E68F45F6B1A994DE51304B90"><enum>(A)</enum><text>by striking <quote>and</quote>; and</text></subparagraph>
<subparagraph id="H39CD6E0588184B958777BB5B14563B58"><enum>(B)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $7,000,000 for fiscal year 2010, and $1,750,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="HD108FE0E1F9A474789A81941BA71ACA3"><enum>(k)</enum><header>Administrative expenses</header><text>Section 2001(a)(11) of the SAFETEA–LU (119 Stat. 1520) is amended—</text>
<paragraph id="H4342D1CD431642E392838E89BBC39D79"><enum>(1)</enum><text>by striking <quote>and</quote> the last place it appears; and</text></paragraph>
<paragraph id="H47831FB3422E49C4B4A3028CE44F58EE"><enum>(2)</enum><text>by striking <quote>2009.</quote> and inserting <quote>2009, $25,047,000 for fiscal year 2010, and $6,332,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></paragraph></subsection>
<subsection id="H15F2E2F6F1C14D9984F750877AC1C631"><enum>(l)</enum><header>Applicability of title 23</header><text>Section 2001(c) of the SAFETEA–LU (119 Stat. 1520) is amended by striking <quote>2009</quote> and inserting <quote>2011</quote>.</text></subsection>
<subsection id="HFCD5BC98EDEA4610A03C564AC114D056"><enum>(m)</enum><header>Drug-impaired driving enforcement</header><text>Section 2013(f) of the SAFETEA–LU (23 U.S.C. 403 note) is amended by striking <quote>2009</quote> and inserting <quote>2011</quote>.</text></subsection>
<subsection id="H89A531D7FEA84A7682B6C223BBE03554"><enum>(n)</enum><header>Older driver safety; law enforcement training</header><text>Section 2017 of the SAFETEA–LU is amended—</text>
<paragraph id="H57D5297E437240B280748CCD3B22398F"><enum>(1)</enum><text>in subsection (a)(1) (119 Stat. 1541), by striking <quote>2009</quote> and inserting <quote>2011</quote>; and</text></paragraph>
<paragraph id="HD25F100F53294315BCB21EEADEDF2A82"><enum>(2)</enum><text>in subsection (b)(2) (23 U.S.C. 402 note), by striking <quote>2009</quote> and inserting <quote>2011</quote>.</text></paragraph></subsection></section>
<section id="HD48B44FF13464A55A9B1A5240D680D4A"><enum>422.</enum><header>Extension of Federal Motor Carrier Safety Administration Programs</header>
<subsection id="H21040E31C9834FEC965023997DC2FF43"><enum>(a)</enum><header>Motor carrier safety grants</header><text>Section 31104(a) of title 49, United States Code, is amended—</text>
<paragraph id="H60B67C08B64D451895BC57B5915F2572"><enum>(1)</enum><text>in paragraph (4), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="HE1BE2DE85A5C451398C1450B65B5A82A"><enum>(2)</enum><text>in paragraph (5), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph>
<paragraph id="H8AA7E25F557E40A5903ABFEE91BC8677"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H896974AC91DA4EBB9F0785A7112C05FC" reported-display-style="italic" style="OLC">
<paragraph id="HA8E272AEE2C140DFBC8CCA31DEB813AB"><enum>(6)</enum><text>$209,000,000 for fiscal year 2010; and</text></paragraph>
<paragraph id="H76A311E25DB7446DBF4E4440B8A3B479"><enum>(7)</enum><text>$52,679,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H02BFFEFF4FA3482299A7913F081A86BE"><enum>(b)</enum><header>Administrative expenses</header><text>Section 31104(i)(1) of title 49, United States Code, is amended—</text>
<paragraph id="HC259998ABAA04FBCA13B39C8362F2B05"><enum>(1)</enum><text>in subparagraph (D), by striking <quote>and</quote>;</text></paragraph>
<paragraph id="H3251E1B15AF84C788E106D4326929599"><enum>(2)</enum><text>in subparagraph (E), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph>
<paragraph id="HEC3DFAE78A78475084985D2A3317B799"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H58BFD4F23A90438099C7CC4701715E85" reported-display-style="italic" style="OLC">
<subparagraph id="HB2569816876A47D3B56CB36570BBE9DC"><enum>(F)</enum><text>“(F) $239,828,000 for fiscal year 2010; and</text></subparagraph>
<subparagraph id="HB47DD2CE977F44C49D9BB111D6B0E9E4"><enum>(G)</enum><text>“(G) $61,036,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H176D6CF169024C8B8D7D9AD093CF7B19"><enum>(c)</enum><header>Grant programs</header><text>Section 4101(c) of the SAFETEA–LU (119 Stat. 1715) is amended—</text>
<paragraph id="HF9831E704A6D4C7DBAE75E334E4581A9"><enum>(1)</enum><text>in paragraph (1), by striking <quote>2009.</quote> and inserting <quote>2009, and $25,000,000 for fiscal year 2010, and $6,301,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>;</text></paragraph>
<paragraph id="HF349E808F6694503851AE8B2ED9DC544"><enum>(2)</enum><text>in paragraph (2), by striking <quote>2009.</quote> and inserting <quote>2009, $32,000,000 for fiscal year 2010, and $8,066,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>;</text></paragraph>
<paragraph id="H0FEFBF24531F43CAA3308C3F09224472"><enum>(3)</enum><text>in paragraph (3), by striking <quote>2009.</quote> and inserting <quote>2009, $5,000,000 for fiscal year 2010, and $1,260,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>;</text></paragraph>
<paragraph id="HCD488930DC084ADBAD18A6D3DCB9A4E5"><enum>(4)</enum><text>in paragraph (4), by striking <quote>2009.</quote> and inserting <quote>2009, $25,000,000 for fiscal year 2010, and $6,301,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>; and</text></paragraph>
<paragraph id="H25BDCEE521294A68B207023343479723"><enum>(5)</enum><text>in paragraph (5), by striking <quote>2009.</quote> and inserting <quote>2009, $3,000,000 for fiscal year 2010, and $756,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</quote>.</text></paragraph></subsection>
<subsection id="H0DA2BF8DBE564D3F9CA30C0D762233C1"><enum>(d)</enum><header>High-priority activities</header><text>Section 31104(k) of title 49, United States Code, is amended by striking <quote>2009</quote> in paragraph (2) and inserting <quote>2009, $15,000,000 for fiscal year 2010, and $3,781,000 for the period beginning on October 1, 2010, and ending on December 31, 2010</quote>.</text></subsection>
<subsection id="HBAE271D351A34574BDB47584D754B91D"><enum>(e)</enum><header>New entrant audits</header><text>Section 31144(g)(5)(B) of title 49, United States Code, is amended by inserting <quote>(and up to $7,310,000 for the period beginning on October 1, 2010, and ending on December 31, 2010)</quote> after <quote>fiscal year</quote>.</text></subsection>
<subsection id="HD97293563631466FAE7E0E3E4D3741C3"><enum>(f)</enum><header>Commercial driver’s license information system modernization</header><text>Section 4123(d) of the SAFETEA–LU (119 Stat. 1736) is amended—</text>
<paragraph id="HC0E2269E2EA2454A9E2314E5E4C8226F"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="H42D0C3EF33C74DBEA065430AEEC659E6"><enum>(2)</enum><text>in paragraph (4), by striking the period at the end and inserting a semicolon; and</text></paragraph>
<paragraph id="HBD89C5872A384B519D06195BFFEE50B6"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H94F5E5F33A4546A19A375BDB1F8FF671" reported-display-style="italic" style="OLC">
<paragraph id="HDC6856FB15F845DE8F8C2FF294B1CDCA"><enum>(5)</enum><text>$8,000,000 for fiscal year 2010; and</text></paragraph>
<paragraph id="HBDDB6547958A48D584BFCFA5F583D89F"><enum>(6)</enum><text>$2,016,000 for the period beginning on October 1, 2010, and ending on December 31, 2010.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HE737141E6F444ED2A679622FA882EF37"><enum>(g)</enum><header>Outreach and education</header><text>Section 4127(e) of the SAFETEA–LU (119 Stat. 1741) is amended by striking <quote>and 2009</quote> and inserting <quote>2009, and 2010, and $252,000 to the Federal Motor Carrier Safety Administration, and $756,000 to the National Highway Traffic Safety Administration, for the period beginning on October 1, 2010, and ending on December 31, 2010,</quote>.</text></subsection>
<subsection id="H7DAD2F2FE48F43F6BD2C2231C4374B21"><enum>(h)</enum><header>Grant program for commercial motor vehicle operators</header><text>Section 4134(c) of the SAFETEA–LU (119 Stat. 1744) is amended by striking <quote>2009</quote> and inserting <quote>2009, 2010, and $252,000 for the period beginning on October 1, 2010, and ending on December 31, 2010,</quote>.</text></subsection>
<subsection id="H7DB29B3D047E45FBA6FB59FD9B2DD601"><enum>(i)</enum><header>Motor carrier safety advisory committee</header><text>Section 4144(d) of the SAFETEA–LU (1119 Stat. 1748) is amended by striking <quote>September 30, 2010</quote> and inserting <quote>December 31, 2010</quote>.</text></subsection>
<subsection id="HFFB5BF4FB8CB43FBAFF1389EB11AB8A7"><enum>(j)</enum><header>Working group for development of practices and procedures To enhance Federal-State relations</header><text>Section 4213(d) of the SAFETEA–LU (49 U.S.C. 14710 note) is amended by striking <quote>September 30, 2009</quote> and inserting <quote>December 31, 2010</quote>.</text></subsection></section>
<section id="HB9336574DBCD4B5ABA472A4A9B839512"><enum>423.</enum><header>Additional programs</header>
<subsection id="H1463F324281E4F48B697A48D43E0DF9C"><enum>(a)</enum><header>Hazardous materials research projects</header><text>Section 7131(c) of the SAFETEA–LU (119 Stat. 1910) is amended by striking <quote>through 2009</quote> and inserting <quote>through 2010, and $315,000 for the period beginning on October 1, 2010, and ending on December 31, 2010,</quote>.</text></subsection>
<subsection id="H440F075B0C8747808F6CD54207E83061"><enum>(b)</enum><header>Dingell-Johnson Sport Fish Restoration Act</header><text>Section 4 of the Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 777c) is amended—</text>
<paragraph id="H5C4B134CDC7E4AE3A29DB02256188F1A"><enum>(1)</enum><text>in subsection (a), in the matter preceding paragraph (1), by striking <quote>2009,</quote> and inserting <quote>2010 and for the period beginning on October 1, 2010, and ending on December 31, 2010,</quote>; and</text></paragraph>
<paragraph id="HEBE266591F9346FBA2636C87E8DDF850"><enum>(2)</enum><text>in subsection (b)(1)(A), by striking <quote>2010,</quote> and inserting <quote>and for the period beginning on October 1, 2010, and ending on December 31, 2010,</quote>.</text></paragraph></subsection></section></subtitle>
<subtitle id="H623D55E7368E4AC0A06D16B0BEC2E79A"><enum>C</enum><header>Public transportation programs</header>
<section id="H61D9B2DB32004E55AC365082D5342135"><enum>431.</enum><header>Allocation of funds for planning programs</header><text display-inline="no-display-inline">Section 5305(g) of title 49, United States Code, is amended by striking <quote>2009</quote> and inserting <quote>2010, and for the period beginning October 1, 2010, and ending December 31, 2010,</quote>.</text></section>
<section id="H4C04BB774AF54B8AB58DD429C6E849C1"><enum>432.</enum><header>Special rule for urbanized area formula grants</header><text display-inline="no-display-inline">Section 5307(b)(2) of title 49, United States Code, is amended—</text>
<paragraph id="H4ACA095C29524884823C7EAC0D6C1B9B"><enum>(1)</enum><text>in the paragraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">2009</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">2010, and the period beginning October 1, 2010, and ending December 31, 2010</header-in-text></quote>;</text></paragraph>
<paragraph id="HC6381C3EEAC1415E9FB84E736CDEB2BB"><enum>(2)</enum><text>in subparagraph (A), by striking <quote>2009,</quote> and inserting <quote>2010, and the period beginning October 1, 2010, and ending December 31, 2010,</quote>; and</text></paragraph>
<paragraph id="H21CD165B1E5949B28F7C93E516252392"><enum>(3)</enum><text>in subparagraph (E)—</text>
<subparagraph id="HFE929EDF5D8D43EBA754F157C77A7D85"><enum>(A)</enum><text>in the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">and 2009</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">through 2010 and during the period beginning october 1, 2010, and ending december 31, 2010</header-in-text></quote>; and</text></subparagraph>
<subparagraph id="H63832CA9620A4D31B44D4041BBE14E81"><enum>(B)</enum><text>in the matter preceding clause (i), by striking <quote>and 2009</quote> and inserting <quote>through 2010, and during the period beginning October 1, 2010, and ending December 31, 2010,</quote>.</text></subparagraph></paragraph></section>
<section id="HE2652A00F1D241189843BA3BACE7B6CF"><enum>433.</enum><header>Allocating amounts for capital investment grants</header><text display-inline="no-display-inline">Section 5309(m) of title 49, United States Code, is amended—</text>
<paragraph id="HA9237B4E0A014D74B3A989E8ADC9C0CA"><enum>(1)</enum><text>in paragraph (2)—</text>
<subparagraph id="H2CA4131622864C2FA261E1D0E6CD678E"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text level="paragraph" style="OLC">2009</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">2010 and October 1, 2010, through December 31, 2010</header-in-text></quote>;</text></subparagraph>
<subparagraph id="HBBBB01DC394847008522DB7E2CCD40A0"><enum>(B)</enum><text>in the matter preceding subparagraph (A), by striking <quote>2009</quote> and inserting <quote>2010, and during the period beginning October 1, 2010, and ending December 31, 2010,</quote>; and</text></subparagraph>
<subparagraph id="H017B090164674AC0982518FD21E740BB"><enum>(C)</enum><text>in subparagraph (A)(i), by striking <quote>2009</quote> and inserting <quote>2010, and $50,000,000 for the period beginning October 1, 2010, and ending December 31, 2010,</quote>;</text></subparagraph></paragraph>
<paragraph id="H56931C79AD5B4B09941B96654B495EC5"><enum>(2)</enum><text>in paragraph (6)—</text>
<subparagraph id="H95C3FEB01B4E4DCAB067FD2A532E0621"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>2009</quote> and inserting <quote>2010, and $3,750,000 shall be available for the period beginning October 1, 2010, and ending December 31, 2010,</quote>; and</text></subparagraph>
<subparagraph id="H186026F5D60B40C58E417380E411CDB9"><enum>(B)</enum><text>in subparagraph (C), by striking <quote>2009</quote> and inserting <quote>2010, and $1,250,000 shall be available for the period beginning October 1, 2010 and ending December 31, 2010,</quote>; and</text></subparagraph></paragraph>
<paragraph id="H13F8D998A2FB4C8CBA5EC84CF42044BD"><enum>(3)</enum><text>in paragraph (7)—</text>
<subparagraph id="H148106E363C44DFAB40BEB6B31765323"><enum>(A)</enum><text>in subparagraph (A)—</text>
<clause id="H2B03A363ECE34CB7A03A63D6202C1FCF"><enum>(i)</enum><text>by redesignating clauses (i) through (viii) as subclauses (I) through (VIII), respectively;</text></clause>
<clause id="H3C0FA4E180F74B7EAAA65471502EF562"><enum>(ii)</enum><text>in the matter preceding subclause (I), as so redesignated, by striking <quote>$10,000,000</quote> and all that follows through <quote>2009</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF7AE1760D5E3433BB9A4807F81828DC8" reported-display-style="italic" style="OLC">
<clause id="H8C13EA3BFE2D43EE9BCA610ADE95DB29"><enum>(i)</enum><header>Fiscal years 2006 through 2010</header><text>$10,000,000 shall be available in each of fiscal years 2006 through 2010</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></clause>
<clause id="HFC8BE5C5A52E43F29AB898078B037D9C"><enum>(iii)</enum><text>by inserting after subclause (VIII), as so redesignated, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF4B4BAB0BF91484EB23D737808CECB89" reported-display-style="italic" style="OLC">
<clause id="H28A26C44BA1A42C0BAB918345BF63C3B"><enum>(ii)</enum><header>Special rule for october 1, 2010, through december 31, 2010</header><text>$2,500,000 shall be available in the period beginning October 1, 2010, and ending December 31, 2010, for ferry boats or ferry terminal facilities. The Secretary shall set aside a portion of such amount in accordance with clause (i), except that the Secretary shall set aside 25 percent of each dollar amount specified in subclauses (I) through (VIII).”;</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph id="H937200D977B64521ABDD3BAB8A1D2E75"><enum>(B)</enum><text>in subparagraph (B), by inserting after <quote>2009.</quote> the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF22492F330CB47AA8372CF4AC1613F9C" reported-display-style="italic" style="OLC">
<clause id="H03ACE1F2BD0C4B8BA52B5E1B06A15A47"><enum>(v)</enum><text>$13,500,000 for fiscal year 2010.</text></clause>
<clause id="HE701F241DE9E4C90815E816C8D0B7F2B"><enum>(vi)</enum><text>$3,375,000 for the period beginning October 1, 2010, and ending December 31, 2010.</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph>
<subparagraph id="H8D55498C467D44C29DE286C7CE05A24B"><enum>(C)</enum><text>in subparagraph (C), by inserting <quote>, and during the period beginning October 1, 2010, and ending December 31, 2010,</quote> after <quote>fiscal year</quote>;</text></subparagraph>
<subparagraph id="H466D879D153643AEA21B52B85689982A"><enum>(D)</enum><text>in subparagraph (D), by inserting <quote>, and not less than $8,750,000 shall be available for the period beginning October 1, 2010, and ending December 31, 2010,</quote> after <quote>year</quote>; and</text></subparagraph>
<subparagraph id="HF7C5D260C67B442FB6BEAAB9DFF3B8CB"><enum>(E)</enum><text>in subparagraph (E), by inserting <quote>, and $750,000 shall be available for the period beginning October 1, 2010, and ending December 31, 2010,</quote> after <quote>year</quote>.</text></subparagraph></paragraph></section>
<section id="H3BA419506E244A4EA904BAE916E4CBD4"><enum>434.</enum><header>Apportionment of formula grants for other than urbanized areas</header><text display-inline="no-display-inline">Section 5311(c)(1) of title 49, United States Code, is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H83C1EB10C30643C795E9B5DFA70F73FA" reported-display-style="italic" style="OLC">
<subparagraph id="HCA0091F1CF524723B2DFAAAD673BA6E8"><enum>(E)</enum><text>$15,000,000 for fiscal year 2010.</text></subparagraph>
<subparagraph id="H4638875D6DF24385AC0A8A15F2C718CF"><enum>(F)</enum><text>$3,750,000 for the period beginning October 1, 2010, and ending December 31, 2010.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H08F2BF6CC08E41B09E4BF4C908AC1313"><enum>435.</enum><header>Apportionment based on fixed guideway factors</header><text display-inline="no-display-inline">Section 5337 of title 49, United States Code, is amended—</text>
<paragraph id="HD0926BC97D6C42DCA7D6539BA5C5D579"><enum>(1)</enum><text>in subsection (a), in the matter preceding paragraph (1), by striking <quote>2009</quote> and inserting <quote>2010</quote>; and</text></paragraph>
<paragraph id="H864AE4D317CA472D91DEFCB406FB0D84"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H9A37E61C86384A31B2545F5FF893F7DB" reported-display-style="italic" style="OLC">
<subsection id="HE5E7D6027C12443B9E1310EFE811DFB8"><enum>(g)</enum><header>Special rule for October 1, 2010, through December 31, 2010</header><text>The Secretary shall apportion amounts made available for fixed guideway modernization under section 5309 for the period beginning October 1, 2010, and ending December 31, 2010, in accordance with subsection (a), except that the Secretary shall apportion 25 percent of each dollar amount specified in subsection (a).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section>
<section id="H9C0932E3561447D5AA64098BF3534000"><enum>436.</enum><header>Authorizations for public transportation</header>
<subsection id="H91632CB67C884350B0F0B22F59E52110"><enum>(a)</enum><header>Formula and bus grants</header><text>Section 5338(b) of title 49, United States Code, is amended—</text>
<paragraph id="H5F64902A726741BF8047C366F2754588"><enum>(1)</enum><text>in paragraph (1)—</text>
<subparagraph id="H08C2E35F42C14EE8A22819690A8466BA"><enum>(A)</enum><text>in subparagraph (C), by striking <quote>and</quote> at the end;</text></subparagraph>
<subparagraph id="H853D67DA78AE4ACDAB53206E67F1844F"><enum>(B)</enum><text>in subparagraph (D), by striking the period at the end and inserting a semicolon; and</text></subparagraph>
<subparagraph id="HC151B8CB8A3B4EB4894806B0C76C7CCA"><enum>(C)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5E185B89F9AE43978846B9907A219EFF" reported-display-style="italic" style="OLC">
<subparagraph id="H14803A11B70D46E8A6D937D694C00C7D"><enum>(E)</enum><text>$8,360,565,000 for fiscal year 2010; and</text></subparagraph>
<subparagraph id="H0B2711F0014D4198BA0CBDAF02CF556D"><enum>(F)</enum><text>$2,090,141,250 for the period beginning October 1, 2010, and ending December 31, 2010.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph>
<paragraph id="HC04DD01EF2864CFBB12DC52E27D6BA41"><enum>(2)</enum><text>in paragraph (2)—</text>
<subparagraph id="H9731007B65EA4DAB9AF6C62C7BBF9E12"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and $113,500,000 for fiscal year 2009</quote> and inserting <quote>$113,500,000 for each of fiscal years 2009 and 2010, and $28,375,000 for the period beginning October 1, 2010, and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="H935EDF6F17084706A7AD636CA7C09C9E"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>and $4,160,365,000 for fiscal year 2009</quote> and inserting <quote>$4,160,365,000 for each of fiscal years 2009 and 2010, and $1,040,091,250 for the period beginning October 1, 2010, and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="H987BBF2795CD4288BC55475A3EFC717B"><enum>(C)</enum><text>in subparagraph (C), by striking <quote>and $51,500,000 for fiscal year 2009</quote> and inserting <quote>$51,500,000 for each of fiscal years 2009 and 2010, and $12,875,000 for the period beginning October 1, 2010, and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="H54A528A4371C4A04843283969F63770A"><enum>(D)</enum><text>in subparagraph (D), by striking <quote>and $1,666,500,000 for fiscal year 2009</quote> and inserting <quote>$1,666,500,000 for each of fiscal years 2009 and 2010, and $416,625,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="H7F9AAD5066B9496E85F22A32C905E953"><enum>(E)</enum><text>in subparagraph (E), by striking <quote>and $984,000,000 for fiscal year 2009</quote> and inserting <quote>$984,000,000 for each of fiscal years 2009 and 2010, and $246,000,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="HBB2883A277D6486A8530BFF495DE277B"><enum>(F)</enum><text>in subparagraph (F), by striking <quote>and $133,500,000 for fiscal year 2009</quote> and inserting <quote>$133,500,000 for each of fiscal years 2009 and 2010, and $33,375,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="HAE3B306EEC3E460F83DE9CF8B1569FCC"><enum>(G)</enum><text>in subparagraph (G), by striking <quote>and $465,000,000 for fiscal year 2009</quote> and inserting <quote>$465,000,000 for each of fiscal years 2009 and 2010, and $116,250,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="HC3B2A84F6C554954A71C4CF60E0970E7"><enum>(H)</enum><text>in subparagraph (H), by striking <quote>and $164,500,000 for fiscal year 2009</quote> and inserting <quote>$164,500,000 for each of fiscal years 2009 and 2010, and $41,125,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="HD34AC4C5A0C041AA9FBFF31123A2E2C2"><enum>(I)</enum><text>in subparagraph (I), by striking <quote>and $92,500,000 for fiscal year 2009</quote> and inserting <quote>$92,500,000 for each of fiscal years 2009 and 2010, and $23,125,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="H7AEEEA09854C4A45AE045D88F6AF98F1"><enum>(J)</enum><text>in subparagraph (J), by striking <quote>and $26,900,000 for fiscal year 2009</quote> and inserting <quote>$26,900,000 for each of fiscal years 2009 and 2010, and $6,725,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="HA780057745024E8C8E33D4FF6B09EB2F"><enum>(K)</enum><text>in subparagraph (K), by striking <quote>and $3,500,000 for fiscal year 2009</quote> and inserting <quote>$3,500,000 for each of fiscal years 2009 and 2010, and $875,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="H85663596086C4CB68B665787A6996068"><enum>(L)</enum><text>in subparagraph (L), by striking <quote>and $25,000,000 for fiscal year 2009</quote> and inserting <quote>$25,000,000 for each of fiscal years 2009 and 2010, and $6,250,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>;</text></subparagraph>
<subparagraph id="H7CD224A7EF3D4291ADF04028AF24E1B6"><enum>(M)</enum><text>in subparagraph (M), by striking <quote>and $465,000,000 for fiscal year 2009</quote> and inserting <quote>$465,000,000 for each of fiscal years 2009 and 2010, and $116,250,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>; and</text></subparagraph>
<subparagraph id="H163DC1A222B04D74AFA3195FA1DE8BFC"><enum>(N)</enum><text>in subparagraph (N), by striking <quote>and $8,800,000 for fiscal year 2009</quote> and inserting <quote>$8,800,000 for each of fiscal years 2009 and 2010, and $2,200,000 for the period beginning October 1, 2010 and ending December 31, 2010,</quote>.</text></subparagraph></paragraph></subsection>
<subsection id="HE179123A7DF743CA97066049FC23B720"><enum>(b)</enum><header>Capital investment grants</header><text>Section 5338(c) of title 49, United States Code, is amended—</text>
<paragraph id="HB686AD539C1C467F93B795DCEF0BB28C"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="HCAFAE92DE3124B218691F5F08E963729"><enum>(2)</enum><text>in paragraph (4), by striking the period at the end and inserting a semicolon; and</text></paragraph>
<paragraph id="HD36465F4C79F47218AED2C99B795FCA2"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HED85AD057AE94CA6BE13093DA8F05832" reported-display-style="italic" style="OLC">
<paragraph id="HA0081D9D04AA4B1D84D5CAE755797FCE"><enum>(5)</enum><text>$2,000,000,000 for fiscal year 2010; and</text></paragraph>
<paragraph id="HD01098AFB9FE4DAFBA4E0A248FD6E040"><enum>(6)</enum><text>$500,000,000 for the period of October 1, 2010 through December 31, 2010.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H97630876FE1B40F1B0A01CBF638914EC"><enum>(c)</enum><header>Research and university research centers</header><text>Section 5338(d) of title 49, United States Code, is amended—</text>
<paragraph id="H251A6D4125794268881E3D57087E5CBD"><enum>(1)</enum><text>in paragraph (1), in the matter preceding subparagraph (A), by striking <quote>and $69,750,000 for fiscal year 2009</quote> and inserting <quote>$69,750,000 for each of fiscal years 2009 and 2010, and $17,437,500 for the period beginning October 1, 2010, and ending December 31, 2010</quote>; and</text></paragraph>
<paragraph id="H97A9A83561624E139403DF517EE00740"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5279709DA2064B18A18E29DD722AD0BE" reported-display-style="italic" style="OLC">
<paragraph id="H7041D9ACFD5949479934A8E376DD0D08"><enum>(3)</enum><header>Additional authorizations</header>
<subparagraph id="H57A41139CAA24C7FA84792475038DB03"><enum>(A)</enum><header>In general</header>
<clause id="H9C5FB3C3C15342C897DDDB5150F9C831"><enum>(i)</enum><header>Fiscal year 2010</header><text>Of amounts authorized to be appropriated for fiscal year 2010 under paragraph (1), the Secretary shall allocate for each of the activities and projects described in subparagraphs (A) through (F) of paragraph (1) an amount equal to the amount allocated for fiscal year 2009 under each such subparagraph.</text></clause>
<clause id="HB27EAB7A85464AF3802E520EF619CE83"><enum>(ii)</enum><header>October 1, 2010 through december 31, 2010</header><text>Of amounts authorized to be appropriated for the period beginning October 1, 2010, through December 31, 2010, under paragraph (1), the Secretary shall allocate for each of the activities and projects described in subparagraphs (A) through (F) of paragraph (1) an amount equal to 25 percent of the amount allocated for fiscal year 2009 under each such subparagraph.</text></clause></subparagraph>
<subparagraph id="H7A1C66F2C1AF4FFC8D903776E6EB4529"><enum>(B)</enum><header>University centers program</header>
<clause id="H6F43041B988640D4B5A619E309B8AB18"><enum>(i)</enum><header>Fiscal year 2010</header><text>Of the amounts allocated under subparagraph (A)(i) for the university centers program under section 5506 for fiscal year 2010, the Secretary shall allocate for each program described in clauses (i) through (iii) and (v) through (viii) of paragraph (2)(A) an amount equal to the amount allocated for fiscal year 2009 under each such clause.</text></clause>
<clause id="HC1792DAA06E4413CBC9F94F32A850778"><enum>(ii)</enum><header>October 1, 2010 through december 31, 2010</header><text>Of the amounts allocated under subparagraph (A)(i) for the university centers program under section 5506 for the period beginning October 1, 2010, and ending December 31, 2010, the Secretary shall allocate for each program described in clauses (i) through (iii) and (v) through (viii) of paragraph (2)(A) an amount equal to 25 percent of the amount allocated for fiscal year 2009 under each such clause.</text></clause>
<clause id="H70AE120D4C7D4EA38FFC206D2CDDB00C"><enum>(iii)</enum><header>Funding</header><text>If the Secretary determines that a project or activity described in paragraph (2) received sufficient funds in fiscal year 2009, or a previous fiscal year, to carry out the purpose for which the project or activity was authorized, the Secretary may not allocate any amounts under clause (i) or (ii) for the project or activity for fiscal year 2010, or any subsequent fiscal year.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HD5091D700B914766B5F2F5A28052AB7A"><enum>(d)</enum><header>Administration</header><text>Section 5338(e) of title 49, United States Code, is amended—</text>
<paragraph id="HAFB7311F41014E8486CEB59B01A0300F"><enum>(1)</enum><text>in paragraph (3), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="H3F3FEE0BFA0F451B9287ABFCE8111EE2"><enum>(2)</enum><text>in paragraph (4), by striking the period at the end and inserting a semicolon; and</text></paragraph>
<paragraph id="H3E67AF4930844710B1185DCEA3F0FB6B"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H74044D8FA3FD42F88A8A344C596EEA49" reported-display-style="italic" style="OLC">
<paragraph id="H19A633BBD3A5494994DCA4FB01CEDE28"><enum>(5)</enum><text>$98,911,000 for fiscal year 2010; and</text></paragraph>
<paragraph id="HE4E242E09AA649C789AA67FFD34A18A4"><enum>(6)</enum><text>$24,727,750 for the period beginning October 1, 2010, and ending December 31, 2010.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section>
<section id="HF3545F0DB232430386FCF8D590300E69"><enum>437.</enum><header>Amendments to SAFETEA–LU</header>
<subsection id="HF7968D1B365A4B708A935E17BDDF4A75"><enum>(a)</enum><header>Contracted paratransit pilot</header><text>Section 3009(i)(1) of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1572) is amended by striking <quote>2009</quote> and inserting <quote>2010, and for the period beginning October 1, 2010, and ending December 31, 2010</quote>.</text></subsection>
<subsection id="HA50D635B59D448DAAB1C17C4C2C86B7E"><enum>(b)</enum><header>Public-private partnership pilot program</header><text>Section 3011 of the SAFETEA–LU (49 U.S.C. 5309 note) is amended—</text>
<paragraph id="H74760EAB63BB4F559BE1C2CF28A9DC1E"><enum>(1)</enum><text>in subsection (c)(5), by striking <quote>2009</quote> and inserting <quote>2010 and the period beginning October 1, 2010, and ending December 31, 2010</quote>; and</text></paragraph>
<paragraph id="H50777F5904B34E788C369CCCE772D14B"><enum>(2)</enum><text>in subsection (d), by striking <quote>2009</quote> and inserting <quote>2010, and for the period beginning October 1, 2010, and ending December 31, 2010</quote>.</text></paragraph></subsection>
<subsection id="H25BB5183527E4F628DF11FFFC91DBD8C"><enum>(c)</enum><header>Elderly individuals and individuals with disabilities pilot program</header><text>Section 3012(b)(8) of the SAFETEA–LU (49 U.S.C. 5310 note) is amended by striking <quote>September 30, 2009</quote> and inserting <quote>December 31, 2010</quote>.</text></subsection>
<subsection id="H961ED5639EE248608CFD77710D12750D"><enum>(d)</enum><header>Obligation ceiling</header><text>Section 3040 of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1639) is amended—</text>
<paragraph id="H92CFC56A583B4EDD8717D8F60F4A283D"><enum>(1)</enum><text>in paragraph (4), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="H5E97967B3D91451EA472D0329743883A"><enum>(2)</enum><text>in paragraph (5), by striking the period at the end and inserting a semicolon; and</text></paragraph>
<paragraph id="H1C9BD01DE31B47CF9DC8E9884CB8212C"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H99BA29A9FED4477A9E83CE4117E1F914" reported-display-style="italic" style="OLC">
<paragraph id="HBC84B10D22CD4AFAAB0F7139AA4DB8D6"><enum>(6)</enum><text>$10,507,752,000 for fiscal year 2010, of which not more than $8,360,565,000 shall be from the Mass Transit Account; and</text></paragraph>
<paragraph id="HCAFEA916BA4F47C9949D8E9B82A2EE1C"><enum>(7)</enum><text>$2,626,938,000 for the period beginning October 1, 2010, and ending December 31, 2010, of which not more than $2,090,141,250 shall be from the Mass Transit Account.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HDF64AD46546C44AAB5926C8971AC5583"><enum>(e)</enum><header>Project authorizations for new fixed guideway capital projects</header><text>Section 3043 of the SAFETEA–LU (Public Law 109–59; 119 Stat. 1640) is amended—</text>
<paragraph id="HA89A92BDA647449199434F1CE5EB8CE2"><enum>(1)</enum><text>in subsection (b), in the matter preceding paragraph (1), by striking <quote>2009</quote> and inserting <quote>2010, and for the period beginning October 1, 2010, and ending December 31, 2010,</quote>; and</text></paragraph>
<paragraph id="H9E94DFD22F6C442E80CBBB89394EB7C5"><enum>(2)</enum><text>in subsection (c), in the matter preceding paragraph (1), by striking <quote>2009</quote> and inserting <quote>2010, and for the period beginning October 1, 2010, and ending December 31, 2010,</quote>.</text></paragraph></subsection>
<subsection id="H5A5532DCF73E4D098CD93AFD1790BB38"><enum>(f)</enum><header>Allocations for national research and technology programs</header><text>Section 3046 of the SAFETEA–LU (49 U.S.C. 5338 note) is amended—</text>
<paragraph id="HE78738B61AFD48E1BB2F283B6E28C222"><enum>(1)</enum><text>in subsection (b), by inserting <quote>or period</quote> after <quote>fiscal year</quote>; and</text></paragraph>
<paragraph id="H7510E95640A24FD6BDB78B856186C32A"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H12277456FC7743E7AE2B82CB43B88CC1" reported-display-style="italic" style="OLC">
<subsection id="H63F68A98F5BF42178371CC9244AA7F91"><enum>(c)</enum><header>Additional appropriations</header><text>The Secretary shall allocate amounts appropriated pursuant to section 5338(d) of title 49, United States Code, for national research and technology programs under sections 5312, 5314, and 5322 of such title—</text>
<paragraph id="H5F985E34AE514359BA521E3CE5BAA300"><enum>(1)</enum><text>for fiscal year 2010, in amounts equal to the amounts allocated for fiscal year 2009 under each of paragraphs (2), (3), (5), (6), and (8) through (25) of subsection (a); and</text></paragraph>
<paragraph id="HCE3CB0AE573844C4B78937800DCABA84"><enum>(2)</enum><text>for the period beginning October 1, 2010, and ending December 31, 2010, in amounts equal to 25 percent of the amounts allocated for fiscal year 2009 under each of paragraphs (2), (3), (5), (6), and (8) through (25) of subsection (a).</text></paragraph></subsection>
<subsection id="HB19E7B752D6F4077AD7049B01D10083E"><enum>(d)</enum><header>Funding</header><text>If the Secretary determines that a project or activity described in subsection (a) received sufficient funds in fiscal year 2009, or a previous fiscal year, to carry out the purpose for which the project or activity was authorized, the Secretary may not allocate any amounts under subsection (c) for the project or activity for fiscal year 2010, or any subsequent fiscal year.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></subtitle>
<subtitle id="HFE69FDE7187041BFA0429A024281EE9C"><enum>D</enum><header>Revenue provisions</header>
<section id="H0470303AEFB945D39E38F50B800C3D60"><enum>441.</enum><header>Repeal of provision prohibiting the crediting of interest to the Highway Trust Fund</header>
<subsection id="H4F35C2E30CA54D369F3D6028B7B5356B"><enum>(a)</enum><header>In General</header><text>Paragraph (1) of section 9503(f) is amended by striking subparagraph (B).</text></subsection>
<subsection id="HD5E9ED5A2BAF4B2A8638DCE3A907845B"><enum>(b)</enum><header>Conforming Amendments</header><text>Such paragraph, as amended by paragraph (1), is further amended—</text>
<paragraph id="H0338C0FF45FF4D39BBBF2057B3B06101"><enum>(1)</enum><text>by striking <quote>, and</quote> at the end of subparagraph (A) and inserting a period; and</text></paragraph>
<paragraph id="H3D86AFF7584B48D6BD65C75A99E9D589"><enum>(2)</enum><text>by striking <quote>1998</quote> in the matter preceding subparagraph (A) and all that follows through <quote>the opening balance</quote> and inserting <quote>1998, the opening balance</quote>.</text></paragraph></subsection>
<subsection id="H54584579FA234D6697F8442D2806EBAA"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall take effect on the date of the enactment of this title.</text></subsection></section>
<section id="HCB59010703E54CC18FECB58A1A0B3813"><enum>442.</enum><header>Restoration of certain foregone interest to Highway Trust Fund</header>
<subsection id="H95EBB09280DC428FAA2C8F79D79CAAF6"><enum>(a)</enum><header>In General</header><text>Paragraph (2) of section 9503(f) is amended to read as follows:</text>
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<paragraph id="HC3940B0C7BCE40769ABCAFEA58C32A79"><enum>(2)</enum><header>Restoration of foregone interest</header><text>Out of money in the Treasury not otherwise appropriated, there is hereby appropriated—</text>
<subparagraph id="H3756E76769794B6DB648F31896D23BCF"><enum>(A)</enum><text>$14,700,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund; and</text></subparagraph>
<subparagraph id="H43FE7604E3A048A982FEE6CB72B5D3A3"><enum>(B)</enum><text>$4,800,000,000 to the Mass Transit Account in the Highway Trust Fund.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H42F0E021D3064EB78ED5B1C0D6CB2AA8"><enum>(b)</enum><header>Conforming Amendment</header><text>Paragraph (1) of section 9503(e) is amended by striking <quote>this subsection</quote> and inserting <quote>this section</quote>.</text></subsection>
<subsection id="H63EBF4CC1C27415BBCAD9DD6106B0982"><enum>(c)</enum><header>Effective Date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text></subsection></section>
<section id="HF53529045A56489B8EB40339EAE07CE2"><enum>443.</enum><header>Treatment of certain amounts appropriated to Highway Trust Fund</header>
<subsection id="H9E3C97C812BF45289936205FCE17FE60"><enum>(a)</enum><header>In General</header><text>Section 9503(f), as amended by this Act, is amended by adding at the end the following new paragraph:</text>
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<paragraph id="H051B2D16E4A74B7C975B5104C835F0DB"><enum>(4)</enum><header>Treatment of appropriated amounts</header><text>Any amount appropriated under this subsection to the Highway Trust Fund shall remain available without fiscal year limitation.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HEBEC813C48A44F399CECA41D0D7D9F4A"><enum>(b)</enum><header>Effective Date</header><text>The amendment made by this section shall take effect on the date of the enactment of this Act.</text></subsection></section>
<section id="H294872D1FCD84521B447C976C50D2B8D"><enum>444.</enum><header>Termination of transfers from highway trust fund for certain repayments and credits</header>
<subsection id="HBF960DFCA881407D903D0CB955A0AA47"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 9503(c) is amended by striking paragraph (2) and by redesignating paragraphs (3), (4), (5), and (6) as paragraphs (2), (3), (4), and (5), respectively.</text></subsection>
<subsection id="H860F88C8499A4314B7DFE2B0494E5435"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H515269B07B7A43E2AD76D79801A4D635"><enum>(1)</enum><text>Section 9502(a) is amended by striking <quote>section 9503(c)(7)</quote> and inserting <quote>section 9503(c)(5)</quote>.</text></paragraph>
<paragraph id="H90C464947A094E829C358FE93A2E4052"><enum>(2)</enum><text>Section 9503(b)(4)(D) is amended by striking <quote>paragraph (4)(D) or (5)(B)</quote> and inserting <quote>paragraph (3)(D) or (4)(B)</quote>.</text></paragraph>
<paragraph id="HC7820FFA7AA34B0E802E5F933CCE3CCD"><enum>(3)</enum><text>Paragraph (2) of section 9503(c), as redesignated by subsection (a), is amended by adding at the end the following new sentence: <quote>The amounts payable from the Highway Trust Fund under the preceding sentence shall be determined by taking into account only the portion of the taxes which are deposited into the Highway Trust Fund.</quote>.</text></paragraph>
<paragraph id="H3BF08284A0444F9ABCE22917D6B86D82"><enum>(4)</enum><text>Section 9503(e)(5)(A) is amended by striking <quote>(2), (3), and (4)</quote> and inserting <quote>(2) and (3)</quote>.</text></paragraph>
<paragraph id="H2BDAEC1D9967412C9B8917F0DF09EC00"><enum>(5)</enum><text>Section 9504(a) is amended by striking <quote>section 9503(c)(4), section 9503(c)(5)</quote> and inserting <quote>section 9503(c)(3), section 9503(c)(4)</quote>.</text></paragraph>
<paragraph id="HD2684864A1934D98AE6859A523F6ECDB"><enum>(6)</enum><text>Section 9504(b)(2) is amended by striking <quote>section 9503(c)(5)</quote> and inserting <quote>section 9503(c)(4)</quote>.</text></paragraph>
<paragraph id="HFE09406CD27D4AE5AF1CB2657DB39EBC"><enum>(7)</enum><text>Section 9504(e) is amended by striking <quote>section 9503(c)(4)</quote> and inserting section <quote>9503(c)(3)</quote>.</text></paragraph></subsection>
<subsection id="HEA5C82FAF56042D5A7A75F305F0FBFCA"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to transfers relating to amounts paid and credits allowed after the date of the enactment of this Act.</text></subsection></section>
<section id="H7808D17AE2F54F43918DC88D1F9FB302"><enum>445.</enum><header>Extension of authority for expenditures</header>
<subsection id="HB282D24CDF684838BD364382075A552C"><enum>(a)</enum><header>Highways Trust Fund</header>
<paragraph id="HE9C7708AAA6647F5B308E30025056796"><enum>(1)</enum><header>Highway Account</header><text>Paragraph (1) of section 9503(c) is amended—</text>
<subparagraph id="H6FB790F4214C4BAD9947C2217C369451"><enum>(A)</enum><text>by striking <quote>September 30, 2009 (October 1, 2009</quote> and inserting <quote>December 31, 2010 (January 1, 2011</quote>; and</text></subparagraph>
<subparagraph id="H25718B4F6B7A4D44823DF90C1D6610FA"><enum>(B)</enum><text>by striking <quote>under</quote> and all that follows and inserting <quote>under the <short-title>Surface Transportation Extension Act of 2010</short-title> or any other provision of law which was referred to in this paragraph before the date of the enactment of such Act (as such Act and provisions of law are in effect on the date of the enactment of such Act).</quote>.</text></subparagraph></paragraph>
<paragraph id="H0F9888313BAC4E4A995A2CC37B077875"><enum>(2)</enum><header>Mass Transit Account</header><text>Paragraph (3) of section 9503(e) is amended—</text>
<subparagraph id="H7DBFB7ED295743E78E06E19746EC47A7"><enum>(A)</enum><text>by striking <quote>October 1, 2009</quote> and inserting <quote>January 1, 2011</quote>; and</text></subparagraph>
<subparagraph id="H3470E2B687B446D3B60E8ECCC5CEB6A3"><enum>(B)</enum><text>by striking <quote>in accordance with</quote> and all that follows and inserting <quote>in accordance with the <short-title>Surface Transportation Extension Act of 2010</short-title> or any other provision of law which was referred to in this paragraph before the date of the enactment of such Act (as such Act and provisions of law are in effect on the date of the enactment of such Act).</quote>.</text></subparagraph></paragraph>
<paragraph id="H731829DD83DF43A387CB416EAA7626A4"><enum>(3)</enum><header>Exception to Limitation on Transfers</header><text>Subparagraph (B) of section 9503(b)(6) is amended by striking <quote>September 30, 2009 (October 1, 2009</quote> and inserting <quote>December 31, 2010 (January 1, 2011</quote>.</text></paragraph></subsection>
<subsection id="HED494D6C8F0D4A5FAF90560A58D73FBD"><enum>(b)</enum><header>Sport fish restoration and boating trust fund</header>
<paragraph id="H7ECE2C238A394081B901B50E2E1E7EC2"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 9504(b) is amended—</text>
<subparagraph id="HC581B6CF73BB4B28A6402906D3F624D3"><enum>(A)</enum><text>by striking <quote>(as in effect</quote> in subparagraph (A) and all that follows in such subparagraph and inserting <quote>(as in effect on the date of the enactment of the <short-title>Surface Transportation Extension Act of 2010</short-title>),</quote>,</text></subparagraph>
<subparagraph id="HA5D7704C4E754B17BDDCF62C7859BA26"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>(as in effect</quote> in subparagraph (B) and all that follows in such subparagraph and inserting <quote>(as in effect on the date of the enactment of the <short-title>Surface Transportation Extension Act of 2010</short-title>), and</quote>, and</text></subparagraph>
<subparagraph id="H50569C61B4D14A77A122338E7015CC4D"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>(as in effect</quote> in subparagraph (C) and all that follows in such subparagraph and inserting <quote>(as in effect on the date of the enactment of the <short-title>Surface Transportation Extension Act of 2010</short-title>).</quote>.</text></subparagraph></paragraph>
<paragraph id="H630AF793688C41CB9F9520BC06C00317"><enum>(2)</enum><header>Exception to limitation on transfers</header><text>Paragraph (2) of section 9504(d) is amended by striking <quote>October 1, 2009</quote> and inserting <quote>January 1, 2011</quote>.</text></paragraph></subsection>
<subsection id="H58CFC1F1FF0C4EAC9C2FF604AE1EDEF4"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on September 30, 2009.</text></subsection></section>
<section id="HACD07011BA0342CEB2561FC440AEA1C4"><enum>446.</enum><header>Level of obligation limitations</header>
<subsection id="H2DFFB5A15444474792688BFE7CF63685"><enum>(a)</enum><header>Highway Category</header><text>Section 8003(a) of the SAFETEA–LU (2 U.S.C. 901 note; 119 Stat. 1917) is amended—</text>
<paragraph id="HCE455727FDF9421ABEE78D486312A871"><enum>(1)</enum><text>in paragraph (4), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="H5F30D661D55F41DAA00D17161E0DF89C"><enum>(2)</enum><text>in paragraph (5), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph>
<paragraph id="H885A908735A549DCB487182C79217BB1"><enum>(3)</enum><text>by adding at the end the following:</text>
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<paragraph id="HFE35F23D6CE84F138BA12CC3589062CD"><enum>(6)</enum><text>for the period beginning on October 1, 2009, and ending on September 30, 2010, $42,469,970,178.</text></paragraph>
<paragraph id="HD6B5C5705B7A46B4ADE27EA4359D6A26"><enum>(7)</enum><text>for the period beginning on October 1, 2010, and ending on December 31, 2010, $10,617,492,545.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="H06F43EDCCDCB4DA9B06750886B67CC75"><enum>(b)</enum><header>Mass Transit Category</header><text>Section 8003(b) of the SAFETEA–LU (2 U.S.C. 901 note; 119 Stat. 1917) is amended—</text>
<paragraph id="H9893B52122794E4085746915059EA0DF"><enum>(1)</enum><text>in paragraph (4), by striking <quote>and</quote> at the end;</text></paragraph>
<paragraph id="HAD044E540DCC4EF7884E5ED6376CD1E0"><enum>(2)</enum><text>in paragraph (5), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph>
<paragraph id="H1B376885DAB2457AA59B4F25B962AC75"><enum>(3)</enum><text>by adding at the end the following:</text>
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<paragraph id="H0ADD70747AF34B8BAE0E2377D02C19C0"><enum>(6)</enum><text>for the period beginning on October 1, 2009, and ending on December 31, 2010, $10,338,065,000.</text></paragraph>
<paragraph id="HF34A01666118415096DB23C18E772A31"><enum>(7)</enum><text>for the period beginning on October 1, 2010, and ending on December 31, 2010, $2,584,516,250.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H37E97B59120F401A8601D6FDA99D3617"><enum>(c)</enum><header>Treatment of Funds</header><text>No adjustment pursuant to section 110 of title 23, United States Code, shall be made for fiscal year 2010 or fiscal year 2011.</text></subsection></section></subtitle>
<subtitle id="H639CFC59AF09418EAB2D60B2CEEABCCB"><enum>E</enum><header>Disadvantaged Business Enterprises</header>
<section id="H2FA438F9651A43039AD3EACB5E001118"><enum>451.</enum><header>Disadvantaged business enterprises</header>
<subsection id="HA369501201FC418F8CAFF4D9CD00B2ED"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section, the following definitions apply:</text>
<paragraph id="H28570B1E384A45EDA6FC511A229268E2"><enum>(1)</enum><header>Small business concern</header><text display-inline="yes-display-inline">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.</text></paragraph>
<paragraph id="H4150EF1DFA6A466CB7D4CD984BF31A83"><enum>(2)</enum><header>Socially and economically disadvantaged individuals</header><text display-inline="yes-display-inline">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.</text></paragraph></subsection>
<subsection id="H16B5004EF6E0495298157837CBFE48A3"><enum>(b)</enum><header>General Rule</header><text display-inline="yes-display-inline">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.</text></subsection>
<subsection id="HA2C88956B89D45FAAEB5D6D17044D55C"><enum>(c)</enum><header>Annual Listing of Disadvantaged Business Enterprises</header><text display-inline="yes-display-inline">Each State shall annually</text>
<paragraph id="H12DC5CD58EC341E28C35046F0563FE78"><enum>(1)</enum><text display-inline="yes-display-inline">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</text></paragraph>
<paragraph id="H987D43402C13408180254730AD5436C6"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text></paragraph></subsection>
<subsection id="H69A1B6DA14A74DFF86F761EC47BD46DC"><enum>(d)</enum><header>Uniform Certification</header><text display-inline="yes-display-inline">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.</text></subsection>
<subsection id="HE90627CC1A39461BAC3C388A1C1B540F"><enum>(e)</enum><header>Compliance With Court Orders</header><text display-inline="yes-display-inline">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.</text></subsection></section></subtitle>
<enum>V</enum><header>Offset provisions</header>
<subtitle commented="no" id="HD0AD206E39A84A2C98AD9F9C36B3CB91" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Foreign account tax compliance</header>
<part commented="no" id="HB91B063084084D0A953A26C09099B13A" level-type="subsequent"><enum>I</enum><header display-inline="yes-display-inline">Increased disclosure of beneficial owners </header>
<section commented="no" display-inline="no-display-inline" id="HB6445EA16859408599CFFC95C3BF7382" section-type="subsequent-section"><enum>501.</enum><header display-inline="yes-display-inline">Reporting on certain foreign accounts</header>
<subsection commented="no" display-inline="no-display-inline" id="HAD6A90AFB5A1446C9E4379AE18E417DB"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Internal Revenue Code of 1986 is amended by inserting after chapter 3 the following new chapter:</text>
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<chapter commented="no" id="HEFD0AD66C2EC44D395D7494BC3AC6339" level-type="subsequent"><enum>4</enum><header display-inline="yes-display-inline">Taxes To enforce reporting on certain foreign accounts</header>
<toc container-level="chapter-container" idref="HEFD0AD66C2EC44D395D7494BC3AC6339" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H1942A69D96F6496D8FED2D600DD4F4D4" level="section">Sec. 1471. Withholdable payments to foreign financial institutions.</toc-entry>
<toc-entry idref="HC0E82F4D3F5C4A8EB2BA87789C67B7F2" level="section">Sec. 1472. Withholdable payments to other foreign entities.</toc-entry>
<toc-entry idref="H7D34E7AE78C64A5891719648D238C81D" level="section">Sec. 1473. Definitions.</toc-entry>
<toc-entry idref="H9DF6EF8B1A024C79BE400FEFD7D91989" level="section">Sec. 1474. Special rules.</toc-entry></toc>
<section commented="no" display-inline="no-display-inline" id="H1942A69D96F6496D8FED2D600DD4F4D4" section-type="subsequent-section"><enum>1471.</enum><header display-inline="yes-display-inline">Withholdable payments to foreign financial institutions</header>
<subsection commented="no" display-inline="no-display-inline" id="H6E389B01851A4105B4B8CD3EF86ECA38"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any withholdable payment to a foreign financial institution which does not meet the requirements of subsection (b), the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFF36FEA5549C42F2B322E583F939B716"><enum>(b)</enum><header display-inline="yes-display-inline">Reporting requirements, etc</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4CEEFB8D8C494E6DBEA60B2F35D62FDA"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The requirements of this subsection are met with respect to any foreign financial institution if an agreement is in effect between such institution and the Secretary under which such institution agrees—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H504FD37493084EE59677E260675C07F6"><enum>(A)</enum><text display-inline="yes-display-inline">to obtain such information regarding each holder of each account maintained by such institution as is necessary to determine which (if any) of such accounts are United States accounts,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HB02E66A3ABA44A8D8C264F5997E5BC32"><enum>(B)</enum><text display-inline="yes-display-inline">to comply with such verification and due diligence procedures as the Secretary may require with respect to the identification of United States accounts,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H8E825B0A483F4B41A5101A581C52C799"><enum>(C)</enum><text display-inline="yes-display-inline">in the case of any United States account maintained by such institution, to report on an annual basis the information described in subsection (c) with respect to such account,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE46E975D33574E3B89762BDDCC4D35B3"><enum>(D)</enum><text display-inline="yes-display-inline">to deduct and withhold a tax equal to 30 percent of—</text>
<clause commented="no" display-inline="no-display-inline" id="H9B7A2857D6E7493786CB7AE0DE683432"><enum>(i)</enum><text display-inline="yes-display-inline">any passthru payment which is made by such institution to a recalcitrant account holder or another foreign financial institution which does not meet the requirements of this subsection, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H9580DBAA2DA6490394F5FA47304AF62F"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any passthru payment which is made by such institution to a foreign financial institution which has in effect an election under paragraph (3) with respect to such payment, so much of such payment as is allocable to accounts held by recalcitrant account holders or foreign financial institutions which do not meet the requirements of this subsection,</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE98CA834DCF54F548320485B7AC69A00"><enum>(E)</enum><text display-inline="yes-display-inline">to comply with requests by the Secretary for additional information with respect to any United States account maintained by such institution, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H9B1A88D50663486A9458F40C735D4F67"><enum>(F)</enum><text display-inline="yes-display-inline">in any case in which any foreign law would (but for a waiver described in clause (i)) prevent the reporting of any information referred to in this subsection or subsection (c) with respect to any United States account maintained by such institution—</text>
<clause commented="no" display-inline="no-display-inline" id="HD7A04F1C05B549B0BAA6592AA887DC37"><enum>(i)</enum><text display-inline="yes-display-inline">to attempt to obtain a valid and effective waiver of such law from each holder of such account, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HDDAE2A5D243A432F9D02EE44705E1709"><enum>(ii)</enum><text display-inline="yes-display-inline">if a waiver described in clause (i) is not obtained from each such holder within a reasonable period of time, to close such account.</text></clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Any agreement entered into under this subsection may be terminated by the Secretary upon a determination by the Secretary that the foreign financial institution is out of compliance with such agreement.</continuation-text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H8A653A38C0EF4C8C8724B3A6B814F80D"><enum>(2)</enum><header display-inline="yes-display-inline">Financial institutions deemed to meet requirements in certain cases</header><text display-inline="yes-display-inline">A foreign financial institution may be treated by the Secretary as meeting the requirements of this subsection if—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H50C5564CA23D413FBD1EC88DE34DD254"><enum>(A)</enum><text display-inline="yes-display-inline">such institution—</text>
<clause commented="no" display-inline="no-display-inline" id="HC288816179754F19BF12099427E2BD0A"><enum>(i)</enum><text display-inline="yes-display-inline">complies with such procedures as the Secretary may prescribe to ensure that such institution does not maintain United States accounts, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H38895116D90142D69AC1AEFA1083CFF1"><enum>(ii)</enum><text display-inline="yes-display-inline">meets such other requirements as the Secretary may prescribe with respect to accounts of other foreign financial institutions maintained by such institution, or</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H9E407E07CDE14789B5859F512448E56D"><enum>(B)</enum><text display-inline="yes-display-inline">such institution is a member of a class of institutions with respect to which the Secretary has determined that the application of this section is not necessary to carry out the purposes of this section.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H67172ED4B3B44C83A0128BBECDB337E0"><enum>(3)</enum><header display-inline="yes-display-inline">Election to be withheld upon rather than withhold on payments to recalcitrant account holders and nonparticipating foreign financial institutions</header><text display-inline="yes-display-inline">In the case of a foreign financial institution which meets the requirements of this subsection and such other requirements as the Secretary may provide and which elects the application of this paragraph—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC715AF027C764B3CAF67DB5DCACA5133"><enum>(A)</enum><text display-inline="yes-display-inline">the requirements of paragraph (1)(D) shall not apply,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H531C4A7885444B83995EEFD0E187BA2E"><enum>(B)</enum><text display-inline="yes-display-inline">the withholding tax imposed under subsection (a) shall apply with respect to any withholdable payment to such institution to the extent such payment is allocable to accounts held by recalcitrant account holders or foreign financial institutions which do not meet the requirements of this subsection, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H604EE3C0BC7541ECB73D1005EBAF5F27"><enum>(C)</enum><text display-inline="yes-display-inline">the agreement described in paragraph (1) shall—</text>
<clause commented="no" display-inline="no-display-inline" id="H8165A868E8F44925A82A00232FB07AE3"><enum>(i)</enum><text display-inline="yes-display-inline">require such institution to notify the withholding agent with respect to each such payment of the institution’s election under this paragraph and such other information as may be necessary for the withholding agent to determine the appropriate amount to deduct and withhold from such payment, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HDE3D3BB50BC74557B0B34D388DB48835"><enum>(ii)</enum><text display-inline="yes-display-inline">include a waiver of any right under any treaty of the United States with respect to any amount deducted and withheld pursuant to an election under this paragraph.</text></clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">To the extent provided by the Secretary, the election under this paragraph may be made with respect to certain classes or types of accounts of the foreign financial institution.</continuation-text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4F9DAD8CC91B419FB2E0AC1B5966087F"><enum>(c)</enum><header display-inline="yes-display-inline">Information required To be reported on United States accounts</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2FFE46B8E1D144E4B85635956CC54A47"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The agreement described in subsection (b) shall require the foreign financial institution to report the following with respect to each United States account maintained by such institution:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC96801D1F52D4205A6E6C1CBA12E20F9"><enum>(A)</enum><text display-inline="yes-display-inline">The name, address, and TIN of each account holder which is a specified United States person and, in the case of any account holder which is a United States owned foreign entity, the name, address, and TIN of each substantial United States owner of such entity.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H3EB4E3ED8540492AA3139F26AF413DA6"><enum>(B)</enum><text display-inline="yes-display-inline">The account number.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE7889EF614CF473C886E97FB0E8B8A4B"><enum>(C)</enum><text display-inline="yes-display-inline">The account balance or value (determined at such time and in such manner as the Secretary may provide).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H3CC94841215445FB8AA28161D23C509A"><enum>(D)</enum><text display-inline="yes-display-inline">Except to the extent provided by the Secretary, the gross receipts and gross withdrawals or payments from the account (determined for such period and in such manner as the Secretary may provide).</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H17CDDAF896E042638A92B0A59C0B773E"><enum>(2)</enum><header display-inline="yes-display-inline">Election to be subject to same reporting as United States financial institutions</header><text display-inline="yes-display-inline">In the case of a foreign financial institution which elects the application of this paragraph—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6CE35BFBA67F4AEA9CD428DE69284EFE"><enum>(A)</enum><text display-inline="yes-display-inline">subparagraphs (C) and (D) of paragraph (1) shall not apply, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H780DE0F5042F46B699388D836FDAE9A6"><enum>(B)</enum><text display-inline="yes-display-inline">the agreement described in subsection (b) shall require such foreign financial institution to report such information with respect to each United States account maintained by such institution as such institution would be required to report under sections 6041, 6042, 6045, and 6049 if—</text>
<clause commented="no" display-inline="no-display-inline" id="H63F5247F11434BE0BC9E5517E7BB55F2"><enum>(i)</enum><text display-inline="yes-display-inline">such institution were a United States person, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HD4C73F817D7D4C33867F1E996D7D9CB1"><enum>(ii)</enum><text display-inline="yes-display-inline">each holder of such account which is a specified United States person or United States owned foreign entity were a natural person and citizen of the United States.</text></clause><continuation-text commented="no" continuation-text-level="subparagraph">An election under this paragraph shall be made at such time, in such manner, and subject to such conditions as the Secretary may provide.</continuation-text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HA863A72A448842F88768174CC1BEE4F0"><enum>(3)</enum><header display-inline="yes-display-inline">Separate requirements for qualified intermediaries</header><text display-inline="yes-display-inline">In the case of a foreign financial institution which is treated as a qualified intermediary by the Secretary for purposes of section 1441 and the regulations issued thereunder, the requirements of this section shall be in addition to any reporting or other requirements imposed by the Secretary for purposes of such treatment.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HC79CE39353A94F9A933C6567039FA653"><enum>(d)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB68EAA00C12749CCB8AD9504B4237DE3"><enum>(1)</enum><header display-inline="yes-display-inline">United States account</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFFCD50E0609744DF8D98662D8D276230"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>United States account</term> means any financial account which is held by one or more specified United States persons or United States owned foreign entities.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H63B866794D3643AAA94343D93C97C964"><enum>(B)</enum><header display-inline="yes-display-inline">Exception for certain accounts held by individuals</header><text display-inline="yes-display-inline">Unless the foreign financial institution elects to not have this subparagraph apply, such term shall not include any depository account maintained by such financial institution if—</text>
<clause commented="no" display-inline="no-display-inline" id="H08DE60BFF8B7458D8CA5E25FE63F81E4"><enum>(i)</enum><text display-inline="yes-display-inline">each holder of such account is a natural person, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HD388192CDFB4438BA980EA47AA9826BC"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to each holder of such account, the aggregate value of all depository accounts held (in whole or in part) by such holder and maintained by the same financial institution which maintains such account does not exceed $50,000.</text></clause><continuation-text commented="no" continuation-text-level="subparagraph">To the extent provided by the Secretary, financial institutions which are members of the same expanded affiliated group shall be treated for purposes of clause (ii) as a single financial institution.</continuation-text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE183B6431F494208AF24F8B8CAF2165F"><enum>(C)</enum><header display-inline="yes-display-inline">Elimination of duplicative reporting requirements</header><text display-inline="yes-display-inline">Such term shall not include any financial account in a foreign financial institution if—</text>
<clause commented="no" display-inline="no-display-inline" id="H535D5DFAF66E46CE9D86A7BD921BD997"><enum>(i)</enum><text display-inline="yes-display-inline">such account is held by another financial institution which meets the requirements of subsection (b), or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HB77BF25CD7724DC69E360829D5E2F45C"><enum>(ii)</enum><text display-inline="yes-display-inline">the holder of such account is otherwise subject to information reporting requirements which the Secretary determines would make the reporting required by this section with respect to United States accounts duplicative.</text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB834130B890C48CE8CE7FDE1F2B14DF7"><enum>(2)</enum><header display-inline="yes-display-inline">Financial account</header><text display-inline="yes-display-inline">Except as otherwise provided by the Secretary, the term <term>financial account</term> means, with respect to any financial institution—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HECFD19A8437343DDB43E9EA79547E461"><enum>(A)</enum><text display-inline="yes-display-inline">any depository account maintained by such financial institution,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H82D15120E7BF494CA49EA183A912BE5B"><enum>(B)</enum><text display-inline="yes-display-inline">any custodial account maintained by such financial institution, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HFE7E25C05BD542A58EB5A6B15420B4C2"><enum>(C)</enum><text display-inline="yes-display-inline">any equity or debt interest in such financial institution (other than interests which are regularly traded on an established securities market).</text></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Any equity or debt interest which constitutes a financial account under subparagraph (C) with respect to any financial institution shall be treated for purposes of this section as maintained by such financial institution.</continuation-text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H5DC156136EE344389DC92D254EF3D492"><enum>(3)</enum><header display-inline="yes-display-inline">United States owned foreign entity</header><text display-inline="yes-display-inline">The term <term>United States owned foreign entity</term> means any foreign entity which has one or more substantial United States owners.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H9D7BFD80E3D247F8AECD94F033968FC0"><enum>(4)</enum><header display-inline="yes-display-inline">Foreign financial institution</header><text display-inline="yes-display-inline">The term <quote>foreign financial institution</quote> means any financial institution which is a foreign entity. Except as otherwise provided by the Secretary, such term shall not include a financial institution which is organized under the laws of any possession of the United States.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H9FAD140A59124258ACF1439F602B8B41"><enum>(5)</enum><header display-inline="yes-display-inline">Financial institution</header><text display-inline="yes-display-inline">Except as otherwise provided by the Secretary, the term <term>financial institution</term> means any entity that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8935FDDC669549C5844C28D8260BCFC0"><enum>(A)</enum><text display-inline="yes-display-inline">accepts deposits in the ordinary course of a banking or similar business,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE2EA8925973F49A58F456D8BBF6C7E77"><enum>(B)</enum><text display-inline="yes-display-inline">as a substantial portion of its business, holds financial assets for the account of others, or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5D6EC2C052F24BC3892D375D7CFDA3A6"><enum>(C)</enum><text display-inline="yes-display-inline">is engaged (or holding itself out as being engaged) primarily in the business of investing, reinvesting, or trading in securities (as defined in section 475(c)(2) without regard to the last sentence thereof), partnership interests, commodities (as defined in section 475(e)(2)), or any interest (including a futures or forward contract or option) in such securities, partnership interests, or commodities.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H30AF0CE5594445F38A0A4DF136B02EA0"><enum>(6)</enum><header display-inline="yes-display-inline">Recalcitrant account holder</header><text display-inline="yes-display-inline">The term <term>recalcitrant account holder</term> means any account holder which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB7DCB5FFBC3C4F4C8B0D45596D837448"><enum>(A)</enum><text display-inline="yes-display-inline">fails to comply with reasonable requests for the information referred to in subsection (b)(1)(A) or (c)(1)(A), or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H858BBE75579E4F7490B1E1D3F8FD1171"><enum>(B)</enum><text display-inline="yes-display-inline">fails to provide a waiver described in subsection (b)(1)(F) upon request.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB8F5D4DB8B8247058AD71B357E8EF24C"><enum>(7)</enum><header display-inline="yes-display-inline">Passthru payment</header><text display-inline="yes-display-inline">The term <term>passthru payment</term> means any withholdable payment or other payment to the extent attributable to a withholdable payment.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HF8F40D4852A44EFBA158599908565F82"><enum>(e)</enum><header display-inline="yes-display-inline">Affiliated groups</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE6AAFE96EA8342EF9212AD1F2B3757C9"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The requirements of subsections (b) and (c)(1) shall apply—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7CABFE7FD3AB46049FC5859508701FDE"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to United States accounts maintained by the foreign financial institution, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H8526C9EC9BEE4F5EB26DE8498CC02EF6"><enum>(B)</enum><text display-inline="yes-display-inline">except as otherwise provided by the Secretary, with respect to United States accounts maintained by each other foreign financial institution (other than any foreign financial institution which meets the requirements of subsection (b)) which is a member of the same expanded affiliated group as such foreign financial institution.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H2482B7B39F5B4E2384E1C7F17741EBB5"><enum>(2)</enum><header display-inline="yes-display-inline">Expanded affiliated group</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>expanded affiliated group</quote> means an affiliated group as defined in section 1504(a), determined—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC8A8D50ED7BE4D94820832E33CF1E002"><enum>(A)</enum><text display-inline="yes-display-inline">by substituting <quote>more than 50 percent</quote> for <quote>at least 80 percent</quote> each place it appears, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HACD7C4085A3F4A4CB08F90FAC1E68F12"><enum>(B)</enum><text display-inline="yes-display-inline">without regard to paragraphs (2) and (3) of section 1504(b).</text></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this sentence).</continuation-text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H302C656749654C68BB5C5BD1C6D4C433"><enum>(f)</enum><header display-inline="yes-display-inline">Exception for certain payments</header><text display-inline="yes-display-inline">Subsection (a) shall not apply to any payment to the extent that the beneficial owner of such payment is—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H35A140837F72466DB2110F201E64AE2A"><enum>(1)</enum><text display-inline="yes-display-inline">any foreign government, any political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing,</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H4CF40B2DD7B74ECF8A8EED4925F875ED"><enum>(2)</enum><text display-inline="yes-display-inline">any international organization or any wholly owned agency or instrumentality thereof,</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H3136CDBD0686459ABDEAC5A808C57064"><enum>(3)</enum><text display-inline="yes-display-inline">any foreign central bank of issue, or</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD65E7D9F32CF4891A6B7E20C991D4DC6"><enum>(4)</enum><text display-inline="yes-display-inline">any other class of persons identified by the Secretary for purposes of this subsection as posing a low risk of tax evasion.</text></paragraph></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HC0E82F4D3F5C4A8EB2BA87789C67B7F2" section-type="subsequent-section"><enum>1472.</enum><header display-inline="yes-display-inline">Withholdable payments to other foreign entities</header>
<subsection commented="no" display-inline="no-display-inline" id="H2848ADC896164AB296EDEF55FA28155A"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any withholdable payment to a non-financial foreign entity, if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H65C4EDFA891E45D98A423A5C22C380C4"><enum>(1)</enum><text display-inline="yes-display-inline">the beneficial owner of such payment is such entity or any other non-financial foreign entity, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC7B9586DF14B485D81CB4575DFF01F19"><enum>(2)</enum><text display-inline="yes-display-inline">the requirements of subsection (b) are not met with respect to such beneficial owner,</text></paragraph><continuation-text commented="no" continuation-text-level="subsection">then the withholding agent with respect to such payment shall deduct and withhold from such payment a tax equal to 30 percent of the amount of such payment.</continuation-text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5077C959A8904295AB648DD3A03534CB"><enum>(b)</enum><header display-inline="yes-display-inline">Requirements for waiver of withholding</header><text display-inline="yes-display-inline">The requirements of this subsection are met with respect to the beneficial owner of a payment if—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HC553243F40D841CE8DACBA415A07D046"><enum>(1)</enum><text display-inline="yes-display-inline">such beneficial owner or the payee provides the withholding agent with either—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD2A142696FBD4E059D2BBF90A1D729A1"><enum>(A)</enum><text display-inline="yes-display-inline">a certification that such beneficial owner does not have any substantial United States owners, or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H1414826CC6FC461197F2A66FC53EE970"><enum>(B)</enum><text display-inline="yes-display-inline">the name, address, and TIN of each substantial United States owner of such beneficial owner,</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HAB90D3C4AB384A9892DE7806A9EA8567"><enum>(2)</enum><text display-inline="yes-display-inline">the withholding agent does not know, or have reason to know, that any information provided under paragraph (1) is incorrect, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HE3EC718987144FDE878C4764509A70BE"><enum>(3)</enum><text display-inline="yes-display-inline">the withholding agent reports the information provided under paragraph (1)(B) to the Secretary in such manner as the Secretary may provide.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H84E08312E8EA41C2B5659C72AC010313"><enum>(c)</enum><header display-inline="yes-display-inline">Exceptions</header><text display-inline="yes-display-inline">Subsection (a) shall not apply to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA3D929ED293F4C05B4E1E7C563FC004A"><enum>(1)</enum><text display-inline="yes-display-inline">except as otherwise provided by the Secretary, any payment beneficially owned by—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HDF59C307DB4441489D85496260A3A6C3"><enum>(A)</enum><text display-inline="yes-display-inline">any corporation the stock of which is regularly traded on an established securities market,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H9F8A2FAB3A364029B92813355837A141"><enum>(B)</enum><text display-inline="yes-display-inline">any corporation which is a member of the same expanded affiliated group (as defined in section 1471(e)(2) without regard to the last sentence thereof) as a corporation described in subparagraph (A),</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H7FCB7B6F1FAB4DA8BC396539E1382A5A"><enum>(C)</enum><text display-inline="yes-display-inline">any entity which is organized under the laws of a possession of the United States and which is wholly owned by one or more bona fide residents (as defined in section 937(a)) of such possession,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H0CEE5101DCEB499586D027E0BE88F649"><enum>(D)</enum><text display-inline="yes-display-inline">any foreign government, any political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HB767DE3C877D4405A4BDA2C657B81CA6"><enum>(E)</enum><text display-inline="yes-display-inline">any international organization or any wholly owned agency or instrumentality thereof,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H9D1C443DDB36421CA946CCDE38F3F440"><enum>(F)</enum><text display-inline="yes-display-inline">any foreign central bank of issue, or</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HC505C13CF626449D9F39B722296B8008"><enum>(G)</enum><text display-inline="yes-display-inline">any other class of persons identified by the Secretary for purposes of this subsection, and</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H78A9D276FAE340BFB35D62D196D1BBDB"><enum>(2)</enum><text display-inline="yes-display-inline">any class of payments identified by the Secretary for purposes of this subsection as posing a low risk of tax evasion.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HC9A0AACEE65644CCBC1A27660966FA79"><enum>(d)</enum><header display-inline="yes-display-inline">Non-Financial foreign entity</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>non-financial foreign entity</term> means any foreign entity which is not a financial institution (as defined in section 1471(d)(5)).</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H7D34E7AE78C64A5891719648D238C81D" section-type="subsequent-section"><enum>1473.</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="no-display-inline">For purposes of this chapter—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H44CB392151CD467190B2DF1980560A50"><enum>(1)</enum><header display-inline="yes-display-inline">Withholdable payment</header><text display-inline="yes-display-inline">Except as otherwise provided by the Secretary—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HD60C999FFFB244A59477119DE292B604"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>withholdable payment</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="H03F1DD3923C649AA87C5E4AE9B4A6855"><enum>(i)</enum><text display-inline="yes-display-inline">any payment of interest (including any original issue discount), dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, and other fixed or determinable annual or periodical gains, profits, and income, if such payment is from sources within the United States, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H88411B9E0E484E14BB9D8325B6BC65C7"><enum>(ii)</enum><text display-inline="yes-display-inline">any gross proceeds from the sale or other disposition of any property of a type which can produce interest or dividends from sources within the United States.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE99A93711A0D49DFB60DAFA0A17556F9"><enum>(B)</enum><header display-inline="yes-display-inline">Exception for income connected with United States business</header><text display-inline="yes-display-inline">Such term shall not include any item of income which is taken into account under section 871(b)(1) or 882(a)(1) for the taxable year.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H06305440B7684CE587CDED1EF653CAC3"><enum>(C)</enum><header display-inline="yes-display-inline">Special rule for sourcing interest paid by foreign branches of domestic financial institutions</header><text display-inline="yes-display-inline">Subparagraph (B) of section 861(a)(1) shall not apply.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HA571922C366E451A8A18076DD7E19B49"><enum>(2)</enum><header display-inline="yes-display-inline">Substantial United States owner</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HDFB091A48E914DFB90676C2BDDC11329"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>substantial United States owner</term> means—</text>
<clause commented="no" display-inline="no-display-inline" id="H74A6B4CDF9F349CEB605CCCC9CBA609B"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to any corporation, any specified United States person which owns, directly or indirectly, more than 10 percent of the stock of such corporation (by vote or value),</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H710DD565EEF64208AC66B61EAFC25DFE"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to any partnership, any specified United States person which owns, directly or indirectly, more than 10 percent of the profits interests or capital interests in such partnership, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H05D5E7BF78AD44A78116D97C0B391DBE"><enum>(iii)</enum><text display-inline="yes-display-inline">in the case of a trust—</text>
<subclause commented="no" display-inline="no-display-inline" id="HEB7D1BDA30A44142BD21B9C571D7A457"><enum>(I)</enum><text display-inline="yes-display-inline">any specified United States person treated as an owner of any portion of such trust under subpart E of part I of subchapter J of chapter 1, and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HAC4E57F5C9004274A040E755CB8CF135"><enum>(II)</enum><text display-inline="yes-display-inline">to the extent provided by the Secretary in regulations or other guidance, any specified United States person which holds, directly or indirectly, more than 10 percent of the beneficial interests of such trust.</text></subclause></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H76205FC145924B06B318EBF921B2A98E"><enum>(B)</enum><header display-inline="yes-display-inline">Special rule for investment vehicles</header><text display-inline="yes-display-inline">In the case of any financial institution described in section 1471(d)(5)(C), clauses (i), (ii), and (iii) of subparagraph (A) shall be applied by substituting <quote>0 percent</quote> for <quote>10 percent</quote>.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HCE182EFA006E4FB89922FF71E6A2000C"><enum>(3)</enum><header display-inline="yes-display-inline">Specified United States person</header><text display-inline="yes-display-inline">Except as otherwise provided by the Secretary, the term <term>specified United States person</term> means any United States person other than—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HA8590082A8C649A384D476BB97682C63"><enum>(A)</enum><text display-inline="yes-display-inline">any corporation the stock of which is regularly traded on an established securities market,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HDB26D5BC3BE842E281C4E0853E6F292E"><enum>(B)</enum><text display-inline="yes-display-inline">any corporation which is a member of the same expanded affiliated group (as defined in section 1471(e)(2) without regard to the last sentence thereof) as a corporation the stock of which is regularly traded on an established securities market,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H98099045447E4F65B13F1C7402F061D0"><enum>(C)</enum><text display-inline="yes-display-inline">any organization exempt from taxation under section 501(a) or an individual retirement plan,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H01FB00B64C624C2DBA0F40C50ACD4B09"><enum>(D)</enum><text display-inline="yes-display-inline">the United States or any wholly owned agency or instrumentality thereof,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H8F58B75D4BDE43378E8E4ABAB13A3C4D"><enum>(E)</enum><text display-inline="yes-display-inline">any State, the District of Columbia, any possession of the United States, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5121AFB9C90D4498A95FB3FDD8320905"><enum>(F)</enum><text display-inline="yes-display-inline">any bank (as defined in section 581),</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H5AC0FB73C1D143D391F9753C7839D8FB"><enum>(G)</enum><text display-inline="yes-display-inline">any real estate investment trust (as defined in section 856),</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H779D5C4E73FD470FB81C606D9185BF47"><enum>(H)</enum><text display-inline="yes-display-inline">any regulated investment company (as defined in section 851),</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE1FB88E73B094E89804205206EDB1BB9"><enum>(I)</enum><text display-inline="yes-display-inline">any common trust fund (as defined in section 584(a)), and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H9C2B27CEA37943B9A983EDBEE110FDB3"><enum>(J)</enum><text display-inline="yes-display-inline">any trust which—</text>
<clause commented="no" display-inline="no-display-inline" id="H30064C8BC7864D478EEE75F53051FE08"><enum>(i)</enum><text display-inline="yes-display-inline">is exempt from tax under section 664(c), or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HF7897BE8754B4EA2A723221EDCEBC9FD"><enum>(ii)</enum><text display-inline="yes-display-inline">is described in section 4947(a)(1).</text></clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HDC3FA4309CB74457944DCBA55F967BB1"><enum>(4)</enum><header display-inline="yes-display-inline">Withholding agent</header><text display-inline="yes-display-inline">The term <term>withholding agent</term> means all persons, in whatever capacity acting, having the control, receipt, custody, disposal, or payment of any withholdable payment.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HC0970F41D6594924A2C4CFC1EE18BDCD"><enum>(5)</enum><header display-inline="yes-display-inline">Foreign entity</header><text display-inline="yes-display-inline">The term <term>foreign entity</term> means any entity which is not a United States person.</text></paragraph></section>
<section commented="no" display-inline="no-display-inline" id="H9DF6EF8B1A024C79BE400FEFD7D91989" section-type="subsequent-section"><enum>1474.</enum><header display-inline="yes-display-inline">Special rules</header>
<subsection commented="no" display-inline="no-display-inline" id="H2BBAAEFDB8E843CC8F83C1F853707CBF"><enum>(a)</enum><header display-inline="yes-display-inline">Liability for withheld tax</header><text display-inline="yes-display-inline">Every person required to deduct and withhold any tax under this chapter is hereby made liable for such tax and is hereby indemnified against the claims and demands of any person for the amount of any payments made in accordance with the provisions of this chapter.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H8BDC8848BC444293AD95403956F30F34"><enum>(b)</enum><header display-inline="yes-display-inline">Credits and refunds</header>
<paragraph commented="no" display-inline="no-display-inline" id="HD74A88A1110742EBB758CE71D46E1DB0"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the determination of whether any tax deducted and withheld under this chapter results in an overpayment by the beneficial owner of the payment to which such tax is attributable shall be made as if such tax had been deducted and withheld under subchapter A of chapter 3.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0B34C9AF4DD245C683EAE330B414B76C"><enum>(2)</enum><header display-inline="yes-display-inline">Special rule where foreign financial institution is beneficial owner of payment</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H6378DB4E16334DE89EA1C89101FEA4F5"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">In the case of any tax properly deducted and withheld under section 1471 from a specified financial institution payment—</text>
<clause commented="no" display-inline="no-display-inline" id="H40C7B32084804343BDACF5BBBDCA6271"><enum>(i)</enum><text display-inline="yes-display-inline">if the foreign financial institution referred to in subparagraph (B) with respect to such payment is entitled to a reduced rate of tax with respect to such payment by reason of any treaty obligation of the United States—</text>
<subclause commented="no" display-inline="no-display-inline" id="H7D208F585C2B49CB8FD0BD23D4C36708"><enum>(I)</enum><text display-inline="yes-display-inline">the amount of any credit or refund with respect to such tax shall not exceed the amount of credit or refund attributable to such reduction in rate, and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H7E122E7E20824AB58097A8A7D0995AD3"><enum>(II)</enum><text display-inline="yes-display-inline">no interest shall be allowed or paid with respect to such credit or refund, and</text></subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="HA838E8AA35F9441EACAD9E002AF891DE"><enum>(ii)</enum><text display-inline="yes-display-inline">if such foreign financial institution is not so entitled, no credit or refund shall be allowed or paid with respect to such tax.</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H500C616A733F49B2A52B8CB977F7A5D9"><enum>(B)</enum><header display-inline="yes-display-inline">Specified financial institution payment</header><text display-inline="yes-display-inline">The term <quote>specified financial institution payment</quote> means any payment if the beneficial owner of such payment is a foreign financial institution.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF5E39D5BC7384D97AE7B550A85C027E9"><enum>(3)</enum><header display-inline="yes-display-inline">Requirement to identify substantial United States owners</header><text display-inline="yes-display-inline">No credit or refund shall be allowed or paid with respect to any tax properly deducted and withheld under this chapter unless the beneficial owner of the payment provides the Secretary such information as the Secretary may require to determine whether such beneficial owner is a United States owned foreign entity (as defined in section 1471(d)(3)) and the identity of any substantial United States owners of such entity.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HCF712E27C45E4CF38EA6E46FB3078671"><enum>(c)</enum><header display-inline="yes-display-inline">Confidentiality of information</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA097161008A4479194883B18F5EBDCDB"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this chapter, rules similar to the rules of section 3406(f) shall apply.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H2CDC102A3C51401C9439F9BCA284EDD3"><enum>(2)</enum><header display-inline="yes-display-inline">Disclosure of list of participating foreign financial institutions permitted</header><text display-inline="yes-display-inline">The identity of a foreign financial institution which meets the requirements of section 1471(b) shall not be treated as return information for purposes of section 6103.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HC7AB970D6E8F4418AF7CF071A9AD0F3B"><enum>(d)</enum><header display-inline="yes-display-inline">Coordination with other withholding provisions</header><text display-inline="yes-display-inline">The Secretary shall provide for the coordination of this chapter with other withholding provisions under this title, including providing for the proper crediting of amounts deducted and withheld under this chapter against amounts required to be deducted and withheld under such other provisions.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4C4971FA92EC49E8A9DD933FA7BB3E0A"><enum>(e)</enum><header display-inline="yes-display-inline">Treatment of withholding under agreements</header><text display-inline="yes-display-inline">Any tax deducted and withheld pursuant to an agreement described in section 1471(b) shall be treated for purposes of this title as a tax deducted and withheld by a withholding agent under section 1471(a).</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H3DD885A4B3144A759704362C5CF74D62"><enum>(f)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of, and prevent the avoidance of, this chapter.</text></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H2400F0D653014EF6AA245827FF7F7656"><enum>(b)</enum><header display-inline="yes-display-inline">Special rule for interest on overpayments</header><text display-inline="yes-display-inline">Subsection (e) of section 6611 is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HE7BEEB30DCE74695ADA9C77DA4795823" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H50E375D25EAD4668A13D1F177085227B"><enum>(4)</enum><header display-inline="yes-display-inline">Certain withholding taxes</header><text display-inline="yes-display-inline">In the case of any overpayment resulting from tax deducted and withheld under chapter 3 or 4, paragraphs (1), (2), and (3) shall be applied by substituting <quote>180 days</quote> for <quote>45 days</quote> each place it appears.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H29F91BB9B0A349109B752D91F9944249"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4DD5ADEE75B84DD0A1A1842F75BD5C6E"><enum>(1)</enum><text display-inline="yes-display-inline">Section 6414 is amended by inserting <quote>or 4</quote> after <quote>chapter 3</quote>.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HAB5E46EAE88B4655AF47D17A5C85B622"><enum>(2)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 6501(b) is amended by inserting <quote>4,</quote> after <quote>chapter 3,</quote>.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HA4D5AF132AC34D60B19152B74BAB4A85"><enum>(3)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6501(b) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H16CD60743E364229A052441020EF61B0"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>4,</quote> after <quote>chapter 3,</quote> in the text thereof, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H160C9FB904F143A4B7EFA5A0B4FB1D93"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">taxes and tax imposed by chapter 3</header-in-text></quote> in the heading thereof and inserting <quote><header-in-text level="paragraph" style="OLC">and withholding taxes</header-in-text></quote>.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H349E2AB5B4404585B0F6ED51F6010296"><enum>(4)</enum><text display-inline="yes-display-inline">Paragraph (3) of section 6513(b) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H93443A7F280C4CC88C6EAAA7E61517A3"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>or 4</quote> after <quote>chapter 3</quote>, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H1E0C2FEEF0B844408C6A595FFFC81F83"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>or 1474(b)</quote> after <quote>section 1462</quote>.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0FC5BA6751EF4B6E9F92554B0B360F19"><enum>(5)</enum><text display-inline="yes-display-inline">Subsection (c) of section 6513 is amended by inserting <quote>4,</quote> after <quote>chapter 3,</quote>.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HEAE5A48291E74337861533F8DBBBF547"><enum>(6)</enum><text display-inline="yes-display-inline">Paragraph (1) of section 6724(d) is amended by inserting <quote>under chapter 4 or</quote> after <quote>filed with the Secretary</quote> in the last sentence thereof.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H37EB9885892A4CCF8254D1125613292B"><enum>(7)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6724(d) is amended by inserting <quote>or 4</quote> after <quote>chapter 3</quote>.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H296A4912B2BC4C56A5492A2D5A3A9D31"><enum>(8)</enum><text display-inline="yes-display-inline">The table of chapters of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8DC55AEA4CEA4C6FA5E38F91131C9525" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="HDF22BEFBB7AF41E8965AF60F561D55BA" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry idref="HEFD0AD66C2EC44D395D7494BC3AC6339" level="chapter">Chapter 4—Taxes To enforce reporting on certain foreign accounts.</toc-entry> </toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H9BE282BB2D29490A857D424FC0E0866E"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header>
<paragraph commented="no" display-inline="no-display-inline" id="H895AF038B4E34B1CA06315B98FF10F45"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this subsection, the amendments made by this section shall apply to payments made after December 31, 2012.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0BAA9B96FC4E484FA125E7EB4A4600D9"><enum>(2)</enum><header display-inline="yes-display-inline">Grandfathered treatment of outstanding obligations</header><text display-inline="yes-display-inline">The amendments made by this section shall not require any amount to be deducted or withheld from any payment under any obligation outstanding on the date which is 2 years after the date of the enactment of this Act or from the gross proceeds from any disposition of such an obligation.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HB951886DE92F4A828F44503B8288C840"><enum>(3)</enum><header display-inline="yes-display-inline">Interest on overpayments</header><text display-inline="yes-display-inline">The amendment made by subsection (b) shall apply—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H791A0682474743ECB5B4BC6CEE7CBA13"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of such amendment’s application to paragraph (1) of section 6611(e) of the Internal Revenue Code of 1986, to returns the due date for which (determined without regard to extensions) is after the date of the enactment of this Act,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H9D640665E7EA4631AB394E244CF2D7C1"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of such amendment’s application to paragraph (2) of such section, to claims for credit or refund of any overpayment filed after the date of the enactment of this Act (regardless of the taxable period to which such refund relates), and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HFA0FFF1EAF5448F6837B5292DF577DA7"><enum>(C)</enum><text display-inline="yes-display-inline">in the case of such amendment’s application to paragraph (3) of such section, to refunds paid after the date of the enactment of this Act (regardless of the taxable period to which such refund relates).</text></subparagraph></paragraph></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HDC05E6B1AA3D435FBC2000F8D8BF8224" section-type="subsequent-section"><enum>502.</enum><header display-inline="yes-display-inline">Repeal of certain foreign exceptions to registered bond requirements</header>
<subsection commented="no" display-inline="no-display-inline" id="H27298BC7847342F3871AAE9CD90B966E"><enum>(a)</enum><header display-inline="yes-display-inline">Repeal of exception to denial of deduction for interest on non-Registered bonds</header>
<paragraph commented="no" display-inline="no-display-inline" id="H784EF658E0634D8FBB44981468D78E13"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 163(f) is amended by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B).</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD084B1D8577342378C2CF287F0953965"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HE7C53C47C1C143AEBC6FCB5A3404E2FA"><enum>(A)</enum><text>Paragraph (2) of section 149(a) is amended by inserting <quote>or</quote> at the end of subparagraph (A), by striking <quote>, or</quote> at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE37897CF478940C596DE27A00D3E1355"><enum>(B)</enum><text display-inline="yes-display-inline">Subparagraph (A) of section 163(f)(2) is amended by inserting <quote>or</quote> at the end of clause (ii), by striking <quote>, or</quote> at the end of clause (iii) and inserting a period, and by striking clause (iv).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H3B44E5134BEB4AB6B6263C62A1829560"><enum>(C)</enum><text display-inline="yes-display-inline">Subparagraph (B) of section 163(f)(2), as redesignated by paragraph (1), is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="HFE226AA16B0846F585A4A29F9E5EE72F"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>, and subparagraph (B),</quote> in the matter preceding clause (i), and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H8C036B79008B4A5F9E23D473E4451AE2"><enum>(ii)</enum><text display-inline="yes-display-inline">by amending clause (i) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H00B33FE4787A4F28A2860AD57B7D9D45" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="HD8A1D904DD654D19933A4CC8354FE74D"><enum>(i)</enum><text display-inline="yes-display-inline">such obligation is of a type which the Secretary has determined by regulations to be used frequently in avoiding Federal taxes, and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HF96284C802794B3382B10017A536691A"><enum>(D)</enum><text display-inline="yes-display-inline">Sections 165(j)(2)(A) and 1287(b)(1) are each amended by striking <quote>except that clause (iv) of subparagraph (A), and subparagraph (B), of such section shall not apply</quote>.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H676A8F1D9DBA4E4392ED55D734F11160"><enum>(b)</enum><header display-inline="yes-display-inline">Repeal of treatment as portfolio debt</header>
<paragraph commented="no" display-inline="no-display-inline" id="H5878B24AFF1F4E93A29981F6C9399453"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 871(h) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0C098724958840BBA0692DB2D4AC1ADB" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HF0D936C7D2A44398910D37F20C5D2A97"><enum>(2)</enum><header display-inline="yes-display-inline">Portfolio interest</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>portfolio interest</term> means any interest (including original issue discount) which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5E2518FF435A4BE58E3EFFA7C595B0A9"><enum>(A)</enum><text display-inline="yes-display-inline">would be subject to tax under subsection (a) but for this subsection, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HFE910382553E4746949240E2E7226900"><enum>(B)</enum><text display-inline="yes-display-inline">is paid on an obligation—</text>
<clause commented="no" display-inline="no-display-inline" id="HDB9D8560CA68448DB25AE29275C70D04"><enum>(i)</enum><text display-inline="yes-display-inline">which is in registered form, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HD8071DDD055C43D9AD9C93AE1C64BB34"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to which—</text>
<subclause commented="no" display-inline="no-display-inline" id="H9D6F95E440F441E686ABBC966DC2A180"><enum>(I)</enum><text display-inline="yes-display-inline">the United States person who would otherwise be required to deduct and withhold tax from such interest under section 1441(a) receives a statement (which meets the requirements of paragraph (5)) that the beneficial owner of the obligation is not a United States person, or</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HAC8B3834742D4EC0852BCC5D7077601D"><enum>(II)</enum><text display-inline="yes-display-inline">the Secretary has determined that such a statement is not required in order to carry out the purposes of this subsection.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H6DCDC3ADBCA542FDB3CE5E178FE9E7AF"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HED20E1A70DFC4EA1B888D4A2BBD35674"><enum>(A)</enum><text display-inline="yes-display-inline">Section 871(h)(3)(A) is amended by striking <quote>subparagraph (A) or (B) of</quote>.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD4378CAB29A7421F943D20F7255BB0E7"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 881(c) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H61BEB54758294CCD83000A2895FB6DF2" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H218E2F02C60C460B9CFAA33010881AEA"><enum>(2)</enum><header display-inline="yes-display-inline">Portfolio interest</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>portfolio interest</quote> means any interest (including original issue discount) which—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H0F11895161D949C8A2DFD92B80DCDFD5"><enum>(A)</enum><text display-inline="yes-display-inline">would be subject to tax under subsection (a) but for this subsection, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HBA685D29B9FE4ED3B335D4BC1D27E002"><enum>(B)</enum><text display-inline="yes-display-inline">is paid on an obligation—</text>
<clause commented="no" display-inline="no-display-inline" id="H7D86DAC1F41F49B09C63185B538743F9"><enum>(i)</enum><text display-inline="yes-display-inline">which is in registered form, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HD6A1BA0A9AF049D1847DFFB9600A0C97"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to which—</text>
<subclause commented="no" display-inline="no-display-inline" id="H429BA568E58F442882D3421D0FAF189B"><enum>(I)</enum><text display-inline="yes-display-inline">the person who would otherwise be required to deduct and withhold tax from such interest under section 1442(a) receives a statement which meets the requirements of section 871(h)(5) that the beneficial owner of the obligation is not a United States person, or</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="HB147B66F87B44597B6576C3937165076"><enum>(II)</enum><text display-inline="yes-display-inline">the Secretary has determined that such a statement is not required in order to carry out the purposes of this subsection.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFB5A3B6F57F04590AB8C585DCF463E72"><enum>(c)</enum><header display-inline="yes-display-inline">Dematerialized book entry systems treated as registered form</header><text display-inline="yes-display-inline">Paragraph (3) of section 163(f) is amended by inserting <quote>, except that a dematerialized book entry system or other book entry system specified by the Secretary shall be treated as a book entry system described in such section</quote> before the period at the end.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H5B4B1E6FCDE94B25A5D7B6747E46306F"><enum>(d)</enum><header display-inline="yes-display-inline">Repeal of exception to requirement that Treasury obligations be in registered form</header>
<paragraph commented="no" display-inline="no-display-inline" id="H600107E7FDEF409E9849E72BF555CCF8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (g) of section 3121 of title 31, United States Code, is amended by striking paragraph (2) and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HAA1330A554A44ED1A03E2892420BE34C"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">Paragraph (1) of section 3121(g) of such title is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H8A2A96984EC04F4A809293A2A79B277D"><enum>(A)</enum><text display-inline="yes-display-inline">by adding <quote>or</quote> at the end of subparagraph (A),</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HE1CEA6701592424F87720431F2FEFC9A"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>; or</quote> at the end of subparagraph (B) and inserting a period, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HBE949BB9ADE6452F98361A0877404FDC"><enum>(C)</enum><text display-inline="yes-display-inline">by striking subparagraph (C).</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H30A67A5654EF4127BC882993B5A3B72A"><enum>(e)</enum><header display-inline="yes-display-inline">Preservation of exception for excise tax purposes</header><text display-inline="yes-display-inline">Paragraph (1) of section 4701(b) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H624BB09D0B6E455291148570CED10ACF" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H34364CBF829547B19777CB1D99EEDCFD"><enum>(1)</enum><header display-inline="yes-display-inline">Registration-required obligation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="HFD83FFAFEA684F069E39D009A23B16CE"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>registration-required obligation</term> has the same meaning as when used in section 163(f), except that such term shall not include any obligation which—</text>
<clause commented="no" display-inline="no-display-inline" id="H1ABCF7E16A234EF7A01E5D0CB19957FB"><enum>(i)</enum><text display-inline="yes-display-inline">is required to be registered under section 149(a), or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H29FEAB42A8A94F5595A8F31D16134E1F"><enum>(ii)</enum><text display-inline="yes-display-inline">is described in subparagraph (B).</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H795A08B4B0E542A784A33BE52218D33F"><enum>(B)</enum><header display-inline="yes-display-inline">Certain obligations not included</header><text display-inline="yes-display-inline">An obligation is described in this subparagraph if—</text>
<clause commented="no" display-inline="no-display-inline" id="H57038D7CBF6C4DE89511A53C11B3AAFD"><enum>(i)</enum><text display-inline="yes-display-inline">there are arrangements reasonably designed to ensure that such obligation will be sold (or resold in connection with the original issue) only to a person who is not a United States person,</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HC3F9B8BA6B334AD6B47464DF11514B7B"><enum>(ii)</enum><text display-inline="yes-display-inline">interest on such obligation is payable only outside the United States and its possessions, and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H84ADEDEE633F44D89C6E8DFD187332CF"><enum>(iii)</enum><text display-inline="yes-display-inline">on the face of such obligation there is a statement that any United States person who holds such obligation will be subject to limitations under the United States income tax laws.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H8DA735A7634C4D9782A4902BD8049677"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to obligations issued after the date which is 2 years after the date of the enactment of this Act.</text></subsection></section></part>
<part commented="no" id="H7661EF068AAF420FA01BC506972BB391" level-type="subsequent"><enum>II</enum><header display-inline="yes-display-inline">Under reporting with respect to foreign assets</header>
<section commented="no" display-inline="no-display-inline" id="H999C1068129640888CB5CABE3D7B6200" section-type="subsequent-section"><enum>511.</enum><header display-inline="yes-display-inline">Disclosure of information with respect to foreign financial assets</header>
<subsection commented="no" display-inline="no-display-inline" id="H2822AB63C67F4CAC99F567A354E325DE"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subpart A of part III of subchapter A of chapter 61 is amended by inserting after section 6038C the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H6BE66D1514EE46BF8AC9971E5A60D599" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HE03F1864B1134DB7B1A6F623B2642623" section-type="subsequent-section"><enum>6038D.</enum><header display-inline="yes-display-inline">Information with respect to foreign financial assets</header>
<subsection commented="no" display-inline="no-display-inline" id="H675A9C27668345F299B86E40DF193CE1"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Any individual who, during any taxable year, holds any interest in a specified foreign financial asset shall attach to such person’s return of tax imposed by subtitle A for such taxable year the information described in subsection (c) with respect to each such asset if the aggregate value of all such assets exceeds $50,000 (or such higher dollar amount as the Secretary may prescribe).</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H76DF810D627946C49690C33EE9823998"><enum>(b)</enum><header display-inline="yes-display-inline">Specified foreign financial assets</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>specified foreign financial asset</term> means—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H900876D2FB094A2A8888D89E7637A18D"><enum>(1)</enum><text display-inline="yes-display-inline">any financial account (as defined in section 1471(d)(2)) maintained by a foreign financial institution (as defined in section 1471(d)(4)), and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H10E09DAD20034FC4AADAD900FA52E2D2"><enum>(2)</enum><text display-inline="yes-display-inline">any of the following assets which are not held in an account maintained by a financial institution (as defined in section 1471(d)(5))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4531A9DAEC1845C0A005AC2858DE5FD3"><enum>(A)</enum><text display-inline="yes-display-inline">any stock or security issued by a person other than a United States person,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD20FAF03C0794314AB1D4F7DC13604BC"><enum>(B)</enum><text display-inline="yes-display-inline">any financial instrument or contract held for investment that has an issuer or counterparty which is other than a United States person, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H7B2A4D8FF86D47EC984BDD10572C9F8B"><enum>(C)</enum><text display-inline="yes-display-inline">any interest in a foreign entity (as defined in section 1473).</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HD18AB92CDD524B41A98FABFF954CDE24"><enum>(c)</enum><header display-inline="yes-display-inline">Required information</header><text display-inline="yes-display-inline">The information described in this subsection with respect to any asset is:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HD6BA702849D8404595898DD3F58B6120"><enum>(1)</enum><text display-inline="yes-display-inline">In the case of any account, the name and address of the financial institution in which such account is maintained and the number of such account.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H87002DAFED894959B14A8C0B17CCAA56"><enum>(2)</enum><text display-inline="yes-display-inline">In the case of any stock or security, the name and address of the issuer and such information as is necessary to identify the class or issue of which such stock or security is a part.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H17BF74133DC64AA4B2130BB034150664"><enum>(3)</enum><text display-inline="yes-display-inline">In the case of any other instrument, contract, or interest—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H05E741D00C6842C491BB00E7C8A9CD6E"><enum>(A)</enum><text display-inline="yes-display-inline">such information as is necessary to identify such instrument, contract, or interest, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H6DE8789CEC924FC594DF3854A2F44565"><enum>(B)</enum><text display-inline="yes-display-inline">the names and addresses of all issuers and counterparties with respect to such instrument, contract, or interest.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H50D1E8EE136B42A7909EFEB1B5E2F55F"><enum>(4)</enum><text display-inline="yes-display-inline">The maximum value of the asset during the taxable year.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HF0D29D351BCE44A29136B8FFE308F8D2"><enum>(d)</enum><header display-inline="yes-display-inline">Penalty for failure To disclose</header>
<paragraph commented="no" display-inline="no-display-inline" id="H128E7BA2A44B46B19EDB1F6F59EE8BA0"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">If any individual fails to furnish the information described in subsection (c) with respect to any taxable year at the time and in the manner described in subsection (a), such person shall pay a penalty of $10,000.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0F709B5C51314697A7A5575A19DE6C8B"><enum>(2)</enum><header display-inline="yes-display-inline">Increase in penalty where failure continues after notification</header><text display-inline="yes-display-inline">If any failure described in paragraph (1) continues for more than 90 days after the day on which the Secretary mails notice of such failure to the individual, such individual shall pay a penalty (in addition to the penalties under paragraph (1)) of $10,000 for each 30-day period (or fraction thereof) during which such failure continues after the expiration of such 90-day period. The penalty imposed under this paragraph with respect to any failure shall not exceed $50,000.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HE42444509F9F44729EC95C2365DBF1EF"><enum>(e)</enum><header display-inline="yes-display-inline">Presumption that value of specified foreign financial assets exceeds dollar threshold</header><text display-inline="yes-display-inline">If—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HAB406A972F1644F8BC3B6E7A539366F9"><enum>(1)</enum><text display-inline="yes-display-inline">the Secretary determines that an individual has an interest in one or more specified foreign financial assets, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7A49CDEC1C184BCF8DD9E7FEB5DEB8F6"><enum>(2)</enum><text display-inline="yes-display-inline">such individual does not provide sufficient information to demonstrate the aggregate value of such assets,</text></paragraph><continuation-text commented="no" continuation-text-level="subsection">then the aggregate value of such assets shall be treated as being in excess of $50,000 (or such higher dollar amount as the Secretary prescribes for purposes of subsection (a)) for purposes of assessing the penalties imposed under this section.</continuation-text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HEBF8FEE53D4F49C3BA76A582C0E2824F"><enum>(f)</enum><header display-inline="yes-display-inline">Application to certain entities</header><text display-inline="yes-display-inline">To the extent provided by the Secretary in regulations or other guidance, the provisions of this section shall apply to any domestic entity which is formed or availed of for purposes of holding, directly or indirectly, specified foreign financial assets, in the same manner as if such entity were an individual.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HD71193B4451948869D0921714FB5693F"><enum>(g)</enum><header display-inline="yes-display-inline">Reasonable cause exception</header><text display-inline="yes-display-inline">No penalty shall be imposed by this section on any failure which is shown to be due to reasonable cause and not due to willful neglect. The fact that a foreign jurisdiction would impose a civil or criminal penalty on the taxpayer (or any other person) for disclosing the required information is not reasonable cause.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4DF87ADF853840CFB357292220068177"><enum>(h)</enum><header display-inline="yes-display-inline">Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance which provide appropriate exceptions from the application of this section in the case of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H35EDB5B5FAAB4C7BAEFA773FE0314472"><enum>(1)</enum><text display-inline="yes-display-inline">classes of assets identified by the Secretary, including any assets with respect to which the Secretary determines that disclosure under this section would be duplicative of other disclosures,</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HAEC1F68BD14F4A23A5F233BFAEABBEDA"><enum>(2)</enum><text display-inline="yes-display-inline">nonresident aliens, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD16AC4D6FB484D0CBCDE217F2A11939B"><enum>(3)</enum><text display-inline="yes-display-inline">bona fide residents of any possession of the United States.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H7AED8C0104DD4BDA8B6C861F79D7E70A"><enum>(b)</enum><header display-inline="yes-display-inline">Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart A of part III of subchapter A of chapter 61 is amended by inserting after the item relating to section 6038C the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0ECC6289291E48BE90F016567F285E4F" reported-display-style="italic" style="OLC">
<toc changed="added" container-level="quoted-block-container" idref="H6BE66D1514EE46BF8AC9971E5A60D599" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration" reported-display-style="italic">
<toc-entry idref="HE03F1864B1134DB7B1A6F623B2642623" level="section">Sec. 6038D. Information with respect to foreign financial assets.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFA6E5D5E192645E5933F898BB7C71EE1"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H970994E1F03541F5B9FDDB90F086FEEF" section-type="subsequent-section"><enum>512.</enum><header display-inline="yes-display-inline">Penalties for underpayments attributable to undisclosed foreign financial assets</header>
<subsection commented="no" display-inline="no-display-inline" id="HF6E355D551BE4FED9C2EC80D716553E1"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 6662, as amended by this Act, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H25DEFC28165F48C4990C918DF41A2447"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b), by inserting after paragraph (6) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HC37B9D18DA1E405B9A56C18BDEE3099B" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H9ABCDFE7D5ED4F46B094EF39E9259FFA"><enum>(7)</enum><text display-inline="yes-display-inline">Any undisclosed foreign financial asset understatement.</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF3CC4774698642C6B88ACA160F848244"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HB9EB6C6584974D54A851342AE420231B" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H749551BB6D44408385460991540099ED"><enum>(j)</enum><header display-inline="yes-display-inline">Undisclosed foreign financial asset understatement</header>
<paragraph commented="no" display-inline="no-display-inline" id="HA952AAF63F2A4A17895E2A81015A8293"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>undisclosed foreign financial asset understatement</term> means, for any taxable year, the portion of the understatement for such taxable year which is attributable to any transaction involving an undisclosed foreign financial asset.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H143501377D8B4F1C89F8AE47C258D604"><enum>(2)</enum><header display-inline="yes-display-inline">Undisclosed foreign financial asset</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>undisclosed foreign financial asset</term> means, with respect to any taxable year, any asset with respect to which information was required to be provided under section 6038, 6038B, 6038D, 6046A, or 6048 for such taxable year but was not provided by the taxpayer as required under the provisions of those sections.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HE729DC5FFA27472EA0114AD73DFD8708"><enum>(3)</enum><header display-inline="yes-display-inline">Increase in penalty for undisclosed foreign financial asset understatements</header><text display-inline="yes-display-inline">In the case of any portion of an underpayment which is attributable to any undisclosed foreign financial asset understatement, subsection (a) shall be applied with respect to such portion by substituting <quote>40 percent</quote> for <quote>20 percent</quote>.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H65BF3E2B86B748B2A3433CADA3EFF139"><enum>(b)</enum><header display-inline="yes-display-inline">Effective Date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HAE4D7395ADE240E18D37CBAC93AB6FF7" section-type="subsequent-section"><enum>513.</enum><header display-inline="yes-display-inline">Modification of statute of limitations for significant omission of income in connection with foreign assets</header>
<subsection commented="no" display-inline="no-display-inline" id="H4427373ECF234DB3B30B99C768DD6BF8"><enum>(a)</enum><header display-inline="yes-display-inline">Extension of statute of limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="H0B2EE83EEA4B432CB42CD4A69C076712"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 6501(e) is amended by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively, and by inserting before subparagraph (B) (as so redesignated) the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H466A62A28D3C48108FD4CE4473BE0375" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H55DDE66891954C358F72F516E2E09D7B"><enum>(A)</enum><header display-inline="yes-display-inline">General rule</header><text display-inline="yes-display-inline">If the taxpayer omits from gross income an amount properly includible therein and—</text>
<clause commented="no" display-inline="no-display-inline" id="H4D8D8FEC3F3E4A03B700E957AB3AABD4"><enum>(i)</enum><text display-inline="yes-display-inline">such amount is in excess of 25 percent of the amount of gross income stated in the return, or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H55568C1853C64039A388BB632E738048"><enum>(ii)</enum><text display-inline="yes-display-inline">such amount—</text>
<subclause commented="no" display-inline="no-display-inline" id="HB42F09FAE7F44B4283AD778D5966618E"><enum>(I)</enum><text display-inline="yes-display-inline">is attributable to one or more assets with respect to which information is required to be reported under section 6038D (or would be so required if such section were applied without regard to the dollar threshold specified in subsection (a) thereof and without regard to any exceptions provided pursuant to subsection (h)(1) thereof), and</text></subclause>
<subclause commented="no" display-inline="no-display-inline" id="H7F41CD1346124AB5A9C1C6885D809110"><enum>(II)</enum><text display-inline="yes-display-inline">is in excess of $5,000,</text></subclause></clause><continuation-text commented="no" continuation-text-level="subparagraph">the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time within 6 years after the return was filed.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H61C8F450574E4DDBA14B5E8B898FE893"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8CA13698B5E74A0C9E598CB1F16B5432"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (B) of section 6501(e)(1), as redesignated by paragraph (1), is amended by striking all that precedes clause (i) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H9F6BE9F9ED5046B9A935E11346FCC04D" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HC2941966D3F14568A00E60E81B3A674B"><enum>(B)</enum><header display-inline="yes-display-inline">Determination of gross income</header><text display-inline="yes-display-inline">For purposes of subparagraph (A)—</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H90060521D63E412897FBBF46F7173DA4"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 6229(c) is amended by striking <quote>which is in excess of 25 percent of the amount of gross income stated in its return</quote> and inserting <quote>and such amount is described in clause (i) or (ii) of section 6501(e)(1)(A)</quote>.</text></subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H330ED4FF85AE4729BB72D62B58318540"><enum>(b)</enum><header display-inline="yes-display-inline">Additional reports subject to extended period</header><text display-inline="yes-display-inline">Paragraph (8) of section 6501(c) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H407E58BD22FD4A68BB497F57076EC514"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>pursuant to an election under section 1295(b) or</quote> before <quote>under section 6038</quote>,</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H0EB2800D3AFA4BB38B9100416D616BB2"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>1298(f),</quote> before <quote>6038</quote>, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H9B12074104F54923AF7187CF475C6715"><enum>(3)</enum><text display-inline="yes-display-inline">by inserting <quote>6038D,</quote> after <quote>6038B,</quote>.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H408237C91D35435C8F88BEB899DC461C"><enum>(c)</enum><header display-inline="yes-display-inline">Clarifications related to failure To disclose foreign transfers</header><text display-inline="yes-display-inline">Paragraph (8) of section 6501(c) is amended by striking <quote>event</quote> and inserting <quote>tax return, event,</quote>.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HAB0E5B13714443E091BC3AC177C6A07F"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE6D887530BE44284915A06854A014EFA"><enum>(1)</enum><text display-inline="yes-display-inline">returns filed after the date of the enactment of this Act; and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HD583496FDF04484D9E46649C943E9F7A"><enum>(2)</enum><text display-inline="yes-display-inline">returns filed on or before such date if the period specified in section 6501 of the Internal Revenue Code of 1986 (determined without regard to such amendments) for assessment of such taxes has not expired as of such date.</text></paragraph></subsection></section></part>
<part commented="no" id="H9AB7E6FA9C04471593C36C193538E2C3" level-type="subsequent"><enum>III</enum><header display-inline="yes-display-inline">Other disclosure provisions </header>
<section commented="no" display-inline="no-display-inline" id="H9B83C77FA848480F965FF7B6D608F11C" section-type="subsequent-section"><enum>521.</enum><header display-inline="yes-display-inline">Reporting of activities with respect to passive foreign investment companies</header>
<subsection commented="no" display-inline="no-display-inline" id="H64D0481E188A4E489BA3645A77E9AF7B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 1298 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8D839E318B074CB795C1B8A1F49DF623" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HCDF1126448B040F8B24066BB343DE091"><enum>(f)</enum><header display-inline="yes-display-inline">Reporting requirement</header><text display-inline="yes-display-inline">Except as otherwise provided by the Secretary, each United States person who is a shareholder of a passive foreign investment company shall file an annual report containing such information as the Secretary may require.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HAB28ACA12FB54C9493794734F4CF6009"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subsection (e) of section 1291 is amended by striking <quote>, (d), and (f)</quote> and inserting <quote>and (d)</quote>.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HE150C6994662498C9A786FC88519CC89"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section take effect on the date of the enactment of this Act.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HE9C4B57DDDE54EEEA9D5A80464D99074" section-type="subsequent-section"><enum>522.</enum><header display-inline="yes-display-inline">Secretary permitted to require financial institutions to file certain returns related to withholding on foreign transfers electronically</header>
<subsection commented="no" display-inline="no-display-inline" id="HEFB73B795E2C4A1FB67C22B19A72B058"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (e) of section 6011 is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5EA036EEF8964135BC3CCF6845A34C99" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H54471FABCDBA4400AD58492B32D9B80D"><enum>(4)</enum><header display-inline="yes-display-inline">Special rule for returns filed by financial institutions with respect to withholding on foreign transfers</header><text display-inline="yes-display-inline">The numerical limitation under paragraph (2)(A) shall not apply to any return filed by a financial institution (as defined in section 1471(d)(5)) with respect to tax for which such institution is made liable under section 1461 or 1474(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H187C1F9031E640BBA3DA5957C193F842"><enum>(b)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Subsection (c) of section 6724 is amended by inserting <quote>or with respect to a return described in section 6011(e)(4)</quote> before the end period.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HC169B847A77449F59A3AB6B6DDD306AA"><enum>(c)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to returns the due date for which (determined without regard to extensions) is after the date of the enactment of this Act.</text></subsection></section></part>
<part commented="no" id="H59AB4EE7FDD042D8B6359E2E20AD3079" level-type="subsequent"><enum>IV</enum><header display-inline="yes-display-inline">Provisions related to foreign trusts</header>
<section commented="no" display-inline="no-display-inline" id="H7DC58E9ACAC54152933E56E0BC605440" section-type="subsequent-section"><enum>531.</enum><header display-inline="yes-display-inline">Clarifications with respect to foreign trusts which are treated as having a United States beneficiary</header>
<subsection commented="no" display-inline="no-display-inline" id="HD838F79496E04C988478AF56B9C444F7"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 679(c) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HBAC105FA0C924BA583201E7B23A427AE" reported-display-style="italic" style="OLC">
<quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">For purposes of subparagraph (A), an amount shall be treated as accumulated for the benefit of a United States person even if the United States person’s interest in the trust is contingent on a future event.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H1E80FBADB56B411DAA07B1697741577C"><enum>(b)</enum><header display-inline="yes-display-inline">Clarification regarding discretion To identify beneficiaries</header><text display-inline="yes-display-inline">Subsection (c) of section 679 is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4D899BCA3ACF45479471E81BEBF54D49" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H269979D5B22344D6ADF3A02BD79BB793"><enum>(4)</enum><header display-inline="yes-display-inline">Special rule in case of discretion to identify beneficiaries</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(A), if any person has the discretion (by authority given in the trust agreement, by power of appointment, or otherwise) of making a distribution from the trust to, or for the benefit of, any person, such trust shall be treated as having a beneficiary who is a United States person unless—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H6809F99625D94C52B2B2AEFDC2353448"><enum>(A)</enum><text display-inline="yes-display-inline">the terms of the trust specifically identify the class of persons to whom such distributions may be made, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HACD42C12CB1842C99BB5117C8BAFC256"><enum>(B)</enum><text display-inline="yes-display-inline">none of those persons are United States persons during the taxable year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4B3AC374E2C94F899073144313B05B31"><enum>(c)</enum><header display-inline="yes-display-inline">Clarification that certain agreements and understandings are terms of the trust</header><text display-inline="yes-display-inline">Subsection (c) of section 679, as amended by subsection (b), is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4F95779B920D43FDB61CBD9C9A3A4F44" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HF1383FB411E04874B4AC81A965EA155E"><enum>(5)</enum><header display-inline="yes-display-inline">Certain agreements and understandings treated as terms of the trust</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(A), if any United States person who directly or indirectly transfers property to the trust is directly or indirectly involved in any agreement or understanding (whether written, oral, or otherwise) that may result in the income or corpus of the trust being paid or accumulated to or for the benefit of a United States person, such agreement or understanding shall be treated as a term of the trust.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H12D7080C1B0C4D51ABDA98FADAAB9871" section-type="subsequent-section"><enum>532.</enum><header display-inline="yes-display-inline">Presumption that foreign trust has United States beneficiary</header>
<subsection commented="no" display-inline="no-display-inline" id="HDF0272D01E5C4603A8C08139B8FC89EC"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 679 is amended by redesignating subsection (d) as subsection (e) and inserting after subsection (c) the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HBDDE0FC483DA49FEBCCCED8BFB739258" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H2778FD86F9544B61B8134D67934F8F16"><enum>(d)</enum><header display-inline="yes-display-inline">Presumption that foreign trust has United States beneficiary</header><text display-inline="yes-display-inline">If a United States person directly or indirectly transfers property to a foreign trust (other than a trust described in section 6048(a)(3)(B)(ii)), the Secretary may treat such trust as having a United States beneficiary for purposes of applying this section to such transfer unless such person—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1802F3D49AA9414A9F2BEC6642536DAC"><enum>(1)</enum><text display-inline="yes-display-inline">submits such information to the Secretary as the Secretary may require with respect to such transfer, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HCDF6F3CE0AD249978C82AF87DD46640C"><enum>(2)</enum><text display-inline="yes-display-inline">demonstrates to the satisfaction of the Secretary that such trust satisfies the requirements of subparagraphs (A) and (B) of subsection (c)(1).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HF1B3DD84B3224044931EB79CE6482691"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to transfers of property after the date of the enactment of this Act.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="H705A81C31C1E4A3F8D0BEE822386FA38" section-type="subsequent-section"><enum>533.</enum><header display-inline="yes-display-inline">Uncompensated use of trust property</header>
<subsection commented="no" display-inline="no-display-inline" id="H64CF1AF8C7704B48A0EA8095802A4586"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 643(i) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB2A0726B8A5742D4AC9C49BAB7334366"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>directly or indirectly to</quote> and inserting <quote>(or permits the use of any other trust property) directly or indirectly to or by</quote>, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7B84EF35D2A74D3DB67458DDE2C37F13"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>(or the fair market value of the use of such property)</quote> after <quote>the amount of such loan</quote>.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HEADCF2D9F4E645859CEE89F8EB1AD636"><enum>(b)</enum><header display-inline="yes-display-inline">Exception for compensated use</header><text display-inline="yes-display-inline">Paragraph (2) of section 643(i) is amended by adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H7B090A584854472B8A1B975DAD57D844" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H7C500BB8731F4D73B52E2DA8048C636E"><enum>(E)</enum><header display-inline="yes-display-inline">Exception for compensated use of property</header><text display-inline="yes-display-inline">In the case of the use of any trust property other than a loan of cash or marketable securities, paragraph (1) shall not apply to the extent that the trust is paid the fair market value of such use within a reasonable period of time of such use.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFAFCC40A5FBE4DD2BE2252FBF3681B11"><enum>(c)</enum><header display-inline="yes-display-inline">Application to grantor trusts</header><text display-inline="yes-display-inline">Subsection (c) of section 679, as amended by this Act, is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4944F57C0DE24B5797C49A8AAC3FD4C2" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HA0D760D427F049DB977358EE439F25CE"><enum>(6)</enum><header display-inline="yes-display-inline">Uncompensated use of trust property treated as a payment</header><text display-inline="yes-display-inline">For purposes of this subsection, a loan of cash or marketable securities (or the use of any other trust property) directly or indirectly to or by any United States person (whether or not a beneficiary under the terms of the trust) shall be treated as paid or accumulated for the benefit of a United States person. The preceding sentence shall not apply to the extent that the United States person repays the loan at a market rate of interest (or pays the fair market value of the use of such property) within a reasonable period of time.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="HFB52E70163F24829B4DE7C83523028DD"><enum>(d)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">Paragraph (3) of section 643(i) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFB41D082A1EE44B0A64D3751B3ED79D7"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(or use of property)</quote> after <quote>If any loan</quote>,</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HF3A3E6EAC8BA43FD8BDD492AFEC9DBEE"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>or the return of such property</quote> before <quote>shall be disregarded</quote>, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H037B5910401644DBB4E49BB41EE4C27A"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">regarding loan principal</header-in-text></quote> in the heading thereof.</text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H4E08AC44B99345B5B713B39DA79DCE21"><enum>(e)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to loans made, and uses of property, after the date of the enactment of this Act.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HF605DBAF1E284A18B4FA4399497235C5" section-type="subsequent-section"><enum>534.</enum><header display-inline="yes-display-inline">Reporting requirement of United States owners of foreign trusts</header>
<subsection commented="no" display-inline="no-display-inline" id="HB61A3C8A1BAD4134825CB22C45DBD8E6"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 6048(b) is amended by inserting <quote>shall submit such information as the Secretary may prescribe with respect to such trust for such year and</quote> before <quote>shall be responsible to ensure</quote>.</text></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H8A2F01CAEEC74B6E9CCF79C84849FD89"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section>
<section commented="no" display-inline="no-display-inline" id="HDEB32D8D02E347F0A25102637A830100" section-type="subsequent-section"><enum>535.</enum><header display-inline="yes-display-inline">Minimum penalty with respect to failure to report on certain foreign trusts</header>
<subsection commented="no" display-inline="no-display-inline" id="H69C9236B4B974377A5D3238E33AEB275"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (a) of section 6677 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H2BFD71DE464C4B36BE42C14C8ABDC7EE"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>the greater of $10,000 or</quote> before <quote>35 percent</quote>, and</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H186D62C44D254F139289DE5479CC787F"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the last sentence and inserting the following: <quote>At such time as the gross reportable amount with respect to any failure can be determined by the Secretary, any subsequent penalty imposed under this subsection with respect to such failure shall be reduced as necessary to assure that the aggregate amount of such penalties do not exceed the gross reportable amount (and to the extent that such aggregate amount already exceeds the gross reportable amount the Secretary shall refund such excess to the taxpayer).</quote></text></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H7C32505D07A346B58ADB9EC70FC6400C"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to notices and returns required to be filed after December 31, 2009.</text></subsection></section></part>
<part commented="no" id="HF275D61091FC4CB4A4B86CFBD3C46E21" level-type="subsequent"><enum>V</enum><header display-inline="yes-display-inline">Substitute dividends and dividend equivalent payments received by foreign persons treated as dividends</header>
<section commented="no" display-inline="no-display-inline" id="HEE5F2F28FF44474C9667D969829C14E2" section-type="subsequent-section"><enum>541.</enum><header display-inline="yes-display-inline">Substitute dividends and dividend equivalent payments received by foreign persons treated as dividends</header>
<subsection commented="no" display-inline="no-display-inline" id="H3E24DEFD75284C29A0798D9164B2D421"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 871 is amended by redesignating subsection (l) as subsection (m) and by inserting after subsection (k) the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0927E857DE0C44738955BC3551008A5E" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H7C7EDEA206E04B14A70CC23D295D270F"><enum>(l)</enum><header display-inline="yes-display-inline">Treatment of dividend equivalent payments</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF699DF9294354D6F83BE172B93452214"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For purposes of subsection (a), sections 881 and 4948(a), and chapters 3 and 4, a dividend equivalent shall be treated as a dividend from sources within the United States.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H567D2BBB4666433184228BF1BD6E2607"><enum>(2)</enum><header display-inline="yes-display-inline">Dividend equivalent</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>dividend equivalent</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H555DF3017901420A96FCA7857303E90C"><enum>(A)</enum><text display-inline="yes-display-inline">any substitute dividend made pursuant to a securities lending or a sale-repurchase transaction that (directly or indirectly) is contingent upon, or determined by reference to, the payment of a dividend from sources within the United States,</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H77159D59DAB44FA1B15765E0F8049370"><enum>(B)</enum><text display-inline="yes-display-inline">any payment made pursuant to a specified notional principal contract that (directly or indirectly) is contingent upon, or determined by reference to, the payment of a dividend from sources within the United States, and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H96AB192ED799459D8E055E39E47DB2C0"><enum>(C)</enum><text display-inline="yes-display-inline">any other payment determined by the Secretary to be substantially similar to a payment described in subparagraph (A) or (B).</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H74AD87D05816487C9B043743FBC831DF"><enum>(3)</enum><header display-inline="yes-display-inline">Specified notional principal contract</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>specified notional principal contract</term> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HCFD1684527F74B1198C4524C7887CBD4"><enum>(A)</enum><text display-inline="yes-display-inline">any notional principal contract if—</text>
<clause commented="no" display-inline="no-display-inline" id="H78DEE1C074734C0C81578A6E155BE49D"><enum>(i)</enum><text display-inline="yes-display-inline">in connection with entering into such contract, any long party to the contract transfers the underlying security to any short party to the contract,</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H9719728B46294C4ABF961460FB4DF8F5"><enum>(ii)</enum><text display-inline="yes-display-inline">in connection with the termination of such contract, any short party to the contract transfers the underlying security to any long party to the contract,</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H76F785A38E714841AAEF89AFA88C9A69"><enum>(iii)</enum><text display-inline="yes-display-inline">the underlying security is not readily tradable on an established securities market,</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H5003978E2D07471CBAF607F21642541C"><enum>(iv)</enum><text display-inline="yes-display-inline">in connection with entering into such contract, the underlying security is posted as collateral by any short party to the contract with any long party to the contract, or</text></clause>
<clause commented="no" display-inline="no-display-inline" id="H89DD4879C0EE499E8A2EECBA920CD66D"><enum>(v)</enum><text display-inline="yes-display-inline">such contract is identified by the Secretary as a specified notional principal contract,</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HA2B54DC8E1184E4CADC4D881D1D68F40"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of payments made after the date which is 2 years after the date of the enactment of this subsection, any notional principal contract unless the Secretary determines that such contract is of a type which does not have the potential for tax avoidance.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H40277A02FBEA4F37930AF58C99F35BB2"><enum>(4)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of paragraph (3)(A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HC452A16F1300433893E8B92C1A727466"><enum>(A)</enum><header display-inline="yes-display-inline">Long party</header><text display-inline="yes-display-inline">The term <term>long party</term> means, with respect to any underlying security of any notional principal contract, any party to the contract which is entitled to receive any payment pursuant to such contract which is contingent upon, or determined by reference to, the payment of a dividend from sources within the United States with respect to such underlying security.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD13FB35253E5493F90E3D9A0A08C76D9"><enum>(B)</enum><header display-inline="yes-display-inline">Short party</header><text display-inline="yes-display-inline">The term <term>short party</term> means, with respect to any underlying security of any notional principal contract, any party to the contract which is not a long party with respect to such underlying security.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HBFEC0AC180964AB0BA89B750C119F4C4"><enum>(C)</enum><header display-inline="yes-display-inline">Underlying security</header><text display-inline="yes-display-inline">The term <term>underlying security</term> means, with respect to any notional principal contract, the security with respect to which the dividend referred to in paragraph (2)(B) is paid. For purposes of this paragraph, any index or fixed basket of securities shall be treated as a single security.</text></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="HBF0050423F814296AA9569930E24DD46"><enum>(5)</enum><header display-inline="yes-display-inline">Payments determined on gross basis</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>payment</term> includes any gross amount which is used in computing any net amount which is transferred to or from the taxpayer.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H053971A27ABF422CAC2DAF407A179598"><enum>(6)</enum><header display-inline="yes-display-inline">Prevention of over-withholding</header><text display-inline="yes-display-inline">In the case of any chain of dividend equivalents one or more of which is subject to tax under subsection (a) or section 881, the Secretary may reduce such tax, but only to the extent that the taxpayer can establish that such tax has been paid with respect to another dividend equivalent in such chain, or is not otherwise due, or as the Secretary determines is appropriate to address the role of financial intermediaries in such chain. For purposes of this paragraph, a dividend shall be treated as a dividend equivalent.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H1FED3D3FB38B4A66BFCFF9B4A1DE320D"><enum>(7)</enum><header display-inline="yes-display-inline">Coordination with chapters 3 and 4</header><text display-inline="yes-display-inline">For purposes of chapters 3 and 4, each person that is a party to any contract or other arrangement that provides for the payment of a dividend equivalent shall be treated as having control of such payment.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection commented="no" display-inline="no-display-inline" id="H14AF5EABC3E6474B8951E9A4B4DC2095"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to payments made on or after the date that is 180 days after the date of the enactment of this Act.</text></subsection></section></part></subtitle>
<subtitle id="HF53568E7B09747D7AB455E9372228C0D"><enum>B</enum><header>Delay in application of worldwide allocation of interest</header>
<section commented="no" display-inline="no-display-inline" id="HF1C90B8299104B0B8E2D2C510BD8EE3F" section-type="subsequent-section"><enum>551.</enum><header>Delay in application of worldwide allocation of interest</header>
<subsection id="HB1DA554313BE46DC978F818B73A4825B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraphs (5)(D) and (6) of section 864(f) are each amended by striking <quote>December 31, 2017</quote> and inserting <quote>December 31, 2020</quote>.</text></subsection>
<subsection id="H11CC1E27EEF148BBBAA88C2F82615B70"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text></subsection></section></subtitle>
<subtitle id="HEB5F795F4F0B4D3B8018054ACDA061DE"><enum>C</enum><header>Budgetary Provisions</header>
<section id="H29E24D46E02541608DF2FA7BFE7A38B8"><enum>561.</enum><header>Time for payment of corporate estimated taxes</header><text display-inline="no-display-inline">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)—</text>
<paragraph id="HBECA45AFA53C4BCA87C49E6D8DA68241"><enum>(1)</enum><text display-inline="yes-display-inline">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,</text></paragraph>
<paragraph id="H65A57144015A466EB526448211FC450C"><enum>(2)</enum><text display-inline="yes-display-inline">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,</text></paragraph>
<paragraph id="HD7BDF02589634C3A9A45A0F3002C934C"><enum>(3)</enum><text display-inline="yes-display-inline">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</text></paragraph>
<paragraph id="HD2680E7DE15D4DEABDE9B7D4897FC992"><enum>(4)</enum><text display-inline="yes-display-inline">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.</text></paragraph></section>
<section id="H0C3094D80FEC49C293C3BAE732543D59"><enum>562.</enum><header>PAYGO Compliance</header><text display-inline="no-display-inline">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.</text></section></subtitle>
Speaker of the House of Representatives.Vice President of the United States and President of the Senate.