[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3548 Enrolled Bill (ENR)]
H.R.3548
One Hundred Eleventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and nine
An Act
To amend the Supplemental Appropriations Act, 2008 to provide for the
temporary availability of certain additional emergency unemployment
compensation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Worker, Homeownership, and Business
Assistance Act of 2009''.
SEC. 2. REVISIONS TO SECOND-TIER BENEFITS.
(a) In General.--Section 4002(c) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by striking
``If'' and all that follows through ``paragraph (2))'' and
inserting ``At the time that the amount established in an
individual's account under subsection (b)(1) is exhausted'';
(B) in subparagraph (A), by striking ``50 percent'' and
inserting ``54 percent''; and
(C) in subparagraph (B), by striking ``13'' and inserting
``14'';
(2) by striking paragraph (2); and
(3) by redesignating paragraph (3) as paragraph (2).
(b) Effective Date.--The amendments made by this section shall
apply as if included in the enactment of the Supplemental
Appropriations Act, 2008, except that no amount shall be payable by
virtue of such amendments with respect to any week of unemployment
commencing before the date of the enactment of this Act.
SEC. 3. THIRD-TIER EMERGENCY UNEMPLOYMENT COMPENSATION.
(a) In General.--Section 4002 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended by
adding at the end the following new subsection:
``(d) Third-tier Emergency Unemployment Compensation.--
``(1) In general.--If, at the time that the amount added to an
individual's account under subsection (c)(1) (hereinafter `second-
tier emergency unemployment compensation') is exhausted or at any
time thereafter, such individual's State is in an extended benefit
period (as determined under paragraph (2)), such account shall be
further augmented by an amount (hereinafter `third-tier emergency
unemployment compensation') equal to the lesser of--
``(A) 50 percent of the total amount of regular
compensation (including dependents' allowances) payable to the
individual during the individual's benefit year under the State
law; or
``(B) 13 times the individual's average weekly benefit
amount (as determined under subsection (b)(2)) for the benefit
year.
``(2) Extended benefit period.--For purposes of paragraph (1),
a State shall be considered to be in an extended benefit period, as
of any given time, if--
``(A) such a period would then be in effect for such State
under such Act if section 203(d) of such Act--
``(i) were applied by substituting `4' for `5' each
place it appears; and
``(ii) did not include the requirement under paragraph
(1)(A) thereof; or
``(B) such a period would then be in effect for such State
under such Act if--
``(i) section 203(f) of such Act were applied to such
State (regardless of whether the State by law had provided
for such application); and
``(ii) such section 203(f)--
``(I) were applied by substituting `6.0' for `6.5'
in paragraph (1)(A)(i) thereof; and
``(II) did not include the requirement under
paragraph (1)(A)(ii) thereof.
``(3) Limitation.--The account of an individual may be
augmented not more than once under this subsection.''.
(b) Conforming Amendment to Non-augmentation Rule.--Section
4007(b)(2) of the Supplemental Appropriations Act, 2008 (Public Law
110-252; 26 U.S.C. 3304 note) is amended--
(1) by striking ``then section 4002(c)'' and inserting ``then
subsections (c) and (d) of section 4002''; and
(2) by striking ``paragraph (2) of such section)'' and
inserting ``paragraph (2) of such subsection (c) or (d) (as the
case may be))''.
(c) Effective Date.--The amendments made by this section shall
apply as if included in the enactment of the Supplemental
Appropriations Act, 2008, except that no amount shall be payable by
virtue of such amendments with respect to any week of unemployment
commencing before the date of the enactment of this Act.
SEC. 4. FOURTH-TIER EMERGENCY UNEMPLOYMENT COMPENSATION.
(a) In General.--Section 4002 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by
section 3(a), is amended by adding at the end the following new
subsection:
``(e) Fourth-tier Emergency Unemployment Compensation.--
``(1) In general.--If, at the time that the amount added to an
individual's account under subsection (d)(1) (third-tier emergency
unemployment compensation) is exhausted or at any time thereafter,
such individual's State is in an extended benefit period (as
determined under paragraph (2)), such account shall be further
augmented by an amount (hereinafter `fourth-tier emergency
unemployment compensation') equal to the lesser of--
``(A) 24 percent of the total amount of regular
compensation (including dependents' allowances) payable to the
individual during the individual's benefit year under the State
law; or
``(B) 6 times the individual's average weekly benefit
amount (as determined under subsection (b)(2)) for the benefit
year.
``(2) Extended benefit period.--For purposes of paragraph (1),
a State shall be considered to be in an extended benefit period, as
of any given time, if--
``(A) such a period would then be in effect for such State
under such Act if section 203(d) of such Act--
``(i) were applied by substituting `6' for `5' each
place it appears; and
``(ii) did not include the requirement under paragraph
(1)(A) thereof; or
``(B) such a period would then be in effect for such State
under such Act if--
``(i) section 203(f) of such Act were applied to such
State (regardless of whether the State by law had provided
for such application); and
``(ii) such section 203(f)--
``(I) were applied by substituting `8.5' for `6.5'
in paragraph (1)(A)(i) thereof; and
``(II) did not include the requirement under
paragraph (1)(A)(ii) thereof.
``(3) Limitation.--The account of an individual may be
augmented not more than once under this subsection.''.
(b) Conforming Amendment to Non-augmentation Rule.--Section
4007(b)(2) of the Supplemental Appropriations Act, 2008 (Public Law
110-252; 26 U.S.C. 3304 note), as amended by section 3(b), is amended--
(1) by striking ``and (d)'' and inserting ``, (d), and (e) of
section 4002''; and
(2) by striking ``or (d)'' and inserting ``, (d), or (e) (as
the case may be))''.
(c) Effective Date.--The amendments made by this section shall
apply as if included in the enactment of the Supplemental
Appropriations Act, 2008, except that no amount shall be payable by
virtue of such amendments with respect to any week of unemployment
commencing before the date of the enactment of this Act.
SEC. 5. COORDINATION.
Section 4002 of the Supplemental Appropriations Act, 2008 (Public
Law 110-252; 26 U.S.C. 3304 note), as amended by section 4, is amended
by adding at the end the following new subsection:
``(f) Coordination Rules.--
``(1) Coordination with extended compensation.--Notwithstanding
an election under section 4001(e) by a State to provide for the
payment of emergency unemployment compensation prior to extended
compensation, such State may pay extended compensation to an
otherwise eligible individual prior to any emergency unemployment
compensation under subsection (c), (d), or (e) (by reason of the
amendments made by sections 2, 3, and 4 of the Worker,
Homeownership, and Business Assistance Act of 2009), if such
individual claimed extended compensation for at least 1 week of
unemployment after the exhaustion of emergency unemployment
compensation under subsection (b) (as such subsection was in effect
on the day before the date of the enactment of this subsection).
``(2) Coordination with tiers ii, iii, and iv.--If a State
determines that implementation of the increased entitlement to
second-tier emergency unemployment compensation by reason of the
amendments made by section 2 of the Worker, Homeownership, and
Business Assistance Act of 2009 would unduly delay the prompt
payment of emergency unemployment compensation under this title by
reason of the amendments made by such Act, such State may elect to
pay third-tier emergency unemployment compensation prior to the
payment of such increased second-tier emergency unemployment
compensation until such time as such State determines that such
increased second-tier emergency unemployment compensation may be
paid without such undue delay. If a State makes the election under
the preceding sentence, then, for purposes of determining whether
an account may be augmented for fourth-tier emergency unemployment
compensation under subsection (e), such State shall treat the date
of exhaustion of such increased second-tier emergency unemployment
compensation as the date of exhaustion of third-tier emergency
unemployment compensation, if such date is later than the date of
exhaustion of the third-tier emergency unemployment
compensation.''.
SEC. 6. TRANSFER OF FUNDS.
Section 4004(e)(1) of the Supplemental Appropriations Act, 2008
(Public Law 110-252; 26 U.S.C. 3304 note) is amended by striking
``Act;'' and inserting ``Act and sections 2, 3, and 4 of the Worker,
Homeownership, and Business Assistance Act of 2009;''.
SEC. 7. EXPANSION OF MODERNIZATION GRANTS FOR UNEMPLOYMENT RESULTING
FROM COMPELLING FAMILY REASON.
(a) In General.--Clause (i) of section 903(f)(3)(B) of the Social
Security Act (42 U.S.C. 1103(f)(3)(B)) is amended to read as follows:
``(i) One or both of the following offenses as selected
by the State, but in making such selection, the resulting
change in the State law shall not supercede any other
provision of law relating to unemployment insurance to the
extent that such other provision provides broader access to
unemployment benefits for victims of such selected offense
or offenses:
``(I) Domestic violence, verified by such
reasonable and confidential documentation as the State
law may require, which causes the individual reasonably
to believe that such individual's continued employment
would jeopardize the safety of the individual or of any
member of the individual's immediate family (as defined
by the Secretary of Labor); and
``(II) Sexual assault, verified by such reasonable
and confidential documentation as the State law may
require, which causes the individual reasonably to
believe that such individual's continued employment
would jeopardize the safety of the individual or of any
member of the individual's immediate family (as defined
by the Secretary of Labor).''.
(b) Effective Date.--The amendment made by this section shall apply
with respect to State applications submitted on and after January 1,
2010.
SEC. 8. TREATMENT OF ADDITIONAL REGULAR COMPENSATION.
The monthly equivalent of any additional compensation paid by
reason of section 2002 of the Assistance for Unemployed Workers and
Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C.
3304 note; 123 Stat. 438) shall be disregarded after the date of the
enactment of this Act in considering the amount of income and assets of
an individual for purposes of determining such individual's eligibility
for, or amount of, benefits under the Supplemental Nutrition Assistance
Program (SNAP).
SEC. 9. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE RAILROAD
UNEMPLOYMENT INSURANCE ACT.
(a) Benefits.--Section 2(c)(2)(D) of the Railroad Unemployment
Insurance Act, as added by section 2006 of the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5), is amended--
(1) in clause (iii)--
(A) by striking ``June 30, 2009'' and inserting ``June 30,
2010''; and
(B) by striking ``December 31, 2009'' and inserting
``December 31, 2010''; and
(2) by adding at the end of clause (iv) the following: ``In
addition to the amount appropriated by the preceding sentence, out
of any funds in the Treasury not otherwise appropriated, there are
appropriated $175,000,000 to cover the cost of additional extended
unemployment benefits provided under this subparagraph, to remain
available until expended.''.
(b) Administrative Expenses.--Section 2006 of division B of the
American Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123
Stat. 445) is amended by adding at the end of subsection (b) the
following: ``In addition to funds appropriated by the preceding
sentence, out of any funds in the Treasury not otherwise appropriated,
there are appropriated to the Railroad Retirement Board $807,000 to
cover the administrative expenses associated with the payment of
additional extended unemployment benefits under section 2(c)(2)(D) of
the Railroad Unemployment Insurance Act, to remain available until
expended.''.
SEC. 10. 0.2 PERCENT FUTA SURTAX.
(a) In General.--Section 3301 of the Internal Revenue Code of 1986
(relating to rate of tax) is amended--
(1) by striking ``through 2009'' in paragraph (1) and inserting
``through 2010 and the first 6 months of calendar year 2011'',
(2) by striking ``calendar year 2010'' in paragraph (2) and
inserting ``the remainder of calendar year 2011'', and
(3) by inserting ``(or portion of the calendar year)'' after
``during the calendar year''.
(b) Effective Date.--The amendments made by this section shall
apply to wages paid after December 31, 2009.
SEC. 11. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER TAX
CREDIT.
(a) Extension of Application Period.--
(1) In general.--Subsection (h) of section 36 of the Internal
Revenue Code of 1986 is amended--
(A) by striking ``December 1, 2009'' and inserting ``May 1,
2010'',
(B) by striking ``Section.--This section'' and inserting
``Section.--
``(1) In general.--This section'', and
(C) by adding at the end the following new paragraph:
``(2) Exception in case of binding contract.--In the case of
any taxpayer who enters into a written binding contract before May
1, 2010, to close on the purchase of a principal residence before
July 1, 2010, paragraph (1) shall be applied by substituting `July
1, 2010' for `May 1, 2010'.''.
(2) Waiver of recapture.--
(A) In general.--Subparagraph (D) of section 36(f)(4) of
such Code is amended by striking ``, and before December 1,
2009''.
(B) Conforming amendment.--The heading of such subparagraph
(D) is amended by inserting ``and 2010'' after ``2009''.
(3) Election to treat purchase in prior year.--Subsection (g)
of section 36 of such Code is amended to read as follows:
``(g) Election To Treat Purchase in Prior Year.--In the case of a
purchase of a principal residence after December 31, 2008, a taxpayer
may elect to treat such purchase as made on December 31 of the calendar
year preceding such purchase for purposes of this section (other than
subsections (c), (f)(4)(D), and (h)).''.
(b) Special Rule for Long-time Residents of Same Principal
Residence.--Subsection (c) of section 36 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new paragraph:
``(6) Exception for long-time residents of same principal
residence.--In the case of an individual (and, if married, such
individual's spouse) who has owned and used the same residence as
such individual's principal residence for any 5-consecutive-year
period during the 8-year period ending on the date of the purchase
of a subsequent principal residence, such individual shall be
treated as a first-time homebuyer for purposes of this section with
respect to the purchase of such subsequent residence.''.
(c) Modification of Dollar and Income Limitations.--
(1) Dollar limitation.--Subsection (b)(1) of section 36 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(D) Special rule for long-time residents of same
principal residence.--In the case of a taxpayer to whom a
credit under subsection (a) is allowed by reason of subsection
(c)(6), subparagraphs (A), (B), and (C) shall be applied by
substituting `$6,500' for `$8,000' and `$3,250' for
`$4,000'.''.
(2) Income limitation.--Subsection (b)(2)(A)(i)(II) of section
36 of such Code is amended by striking ``$75,000 ($150,000'' and
inserting ``$125,000 ($225,000''.
(d) Limitation on Purchase Price of Residence.--Subsection (b) of
section 36 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new paragraph:
``(3) Limitation based on purchase price.--No credit shall be
allowed under subsection (a) for the purchase of any residence if
the purchase price of such residence exceeds $800,000.''.
(e) Waiver of Recapture of First-time Homebuyer Credit for
Individuals on Qualified Official Extended Duty.--Paragraph (4) of
section 36(f) of the Internal Revenue Code of 1986 is amended by adding
at the end the following new subparagraph:
``(E) Special rule for members of the armed forces, etc.--
``(i) In general.--In the case of the disposition of a
principal residence by an individual (or a cessation
referred to in paragraph (2)) after December 31, 2008, in
connection with Government orders received by such
individual, or such individual's spouse, for qualified
official extended duty service--
``(I) paragraph (2) and subsection (d)(2) shall not
apply to such disposition (or cessation), and
``(II) if such residence was acquired before
January 1, 2009, paragraph (1) shall not apply to the
taxable year in which such disposition (or cessation)
occurs or any subsequent taxable year.
``(ii) Qualified official extended duty service.--For
purposes of this section, the term `qualified official
extended duty service' means service on qualified official
extended duty as--
``(I) a member of the uniformed services,
``(II) a member of the Foreign Service of the
United States, or
``(III) an employee of the intelligence community.
``(iii) Definitions.--Any term used in this
subparagraph which is also used in paragraph (9) of section
121(d) shall have the same meaning as when used in such
paragraph.''.
(f) Extension of First-time Homebuyer Credit for Individuals on
Qualified Official Extended Duty Outside the United States.--
(1) In general.--Subsection (h) of section 36 of the Internal
Revenue Code of 1986, as amended by subsection (a), is amended by
adding at the end the following:
``(3) Special rule for individuals on qualified official
extended duty outside the united states.--In the case of any
individual who serves on qualified official extended duty service
(as defined in section 121(d)(9)(C)(i)) outside the United States
for at least 90 days during the period beginning after December 31,
2008, and ending before May 1, 2010, and, if married, such
individual's spouse--
``(A) paragraphs (1) and (2) shall each be applied by
substituting `May 1, 2011' for `May 1, 2010', and
``(B) paragraph (2) shall be applied by substituting `July
1, 2011' for `July 1, 2010'.''.
(g) Dependents Ineligible for Credit.--Subsection (d) of section 36
of the Internal Revenue Code of 1986 is amended by striking ``or'' at
the end of paragraph (1), by striking the period at the end of
paragraph (2) and inserting ``, or'', and by adding at the end the
following new paragraph:
``(3) a deduction under section 151 with respect to such
taxpayer is allowable to another taxpayer for such taxable year.''.
(h) IRS Mathematical Error Authority.--Paragraph (2) of section
6213(g) of the Internal Revenue Code of 1986 is amended--
(1) by striking ``and'' at the end of subparagraph (M),
(2) by striking the period at the end of subparagraph (N) and
inserting ``, and'', and
(3) by inserting after subparagraph (N) the following new
subparagraph:
``(O) an omission of any increase required under section
36(f) with respect to the recapture of a credit allowed under
section 36.''.
(i) Coordination With First-time Homebuyer Credit for District of
Columbia.--Paragraph (4) of section 1400C(e) of the Internal Revenue
Code of 1986 is amended by striking ``and before December 1, 2009,''.
(j) Effective Dates.--
(1) In general.--The amendments made by subsections (b), (c),
(d), and (g) shall apply to residences purchased after the date of
the enactment of this Act.
(2) Extensions.--The amendments made by subsections (a), (f),
and (i) shall apply to residences purchased after November 30,
2009.
(3) Waiver of recapture.--The amendment made by subsection (e)
shall apply to dispositions and cessations after December 31, 2008.
(4) Mathematical error authority.--The amendments made by
subsection (h) shall apply to returns for taxable years ending on
or after April 9, 2008.
SEC. 12. PROVISIONS TO ENHANCE THE ADMINISTRATION OF THE FIRST-TIME
HOMEBUYER TAX CREDIT.
(a) Age Limitation.--
(1) In general.--Subsection (b) of section 36 of the Internal
Revenue Code of 1986, as amended by this Act, is amended by adding
at the end the following new paragraph:
``(4) Age limitation.--No credit shall be allowed under
subsection (a) with respect to the purchase of any residence unless
the taxpayer has attained age 18 as of the date of such purchase.
In the case of any taxpayer who is married (within the meaning of
section 7703), the taxpayer shall be treated as meeting the age
requirement of the preceding sentence if the taxpayer or the
taxpayer's spouse meets such age requirement.''.
(2) Conforming amendment.--Subsection (g) of section 36 of such
Code, as amended by this Act, is amended by inserting ``(b)(4),''
before ``(c)''.
(b) Documentation Requirement.--Subsection (d) of section 36 of the
Internal Revenue Code of 1986, as amended by this Act, is amended by
striking ``or'' at the end of paragraph (2), by striking the period at
the end of paragraph (3) and inserting ``, or'', and by adding at the
end the following new paragraph:
``(4) the taxpayer fails to attach to the return of tax for
such taxable year a properly executed copy of the settlement
statement used to complete such purchase.''.
(c) Restriction on Married Individual Acquiring Residence From
Family of Spouse.--Clause (i) of section 36(c)(3)(A) of the Internal
Revenue Code of 1986 is amended by inserting ``(or, if married, such
individual's spouse)'' after ``person acquiring such property''.
(d) Certain Errors With Respect to the First-time Homebuyer Tax
Credit Treated as Mathematical or Clerical Errors.--Paragraph (2) of
section 6213(g) the Internal Revenue Code of 1986, as amended by this
Act, is amended by striking ``and'' at the end of subparagraph (N), by
striking the period at the end of subparagraph (O) and inserting ``,
and'', and by inserting after subparagraph (O) the following new
subparagraph:
``(P) an entry on a return claiming the credit under
section 36 if--
``(i) the Secretary obtains information from the person
issuing the TIN of the taxpayer that indicates that the
taxpayer does not meet the age requirement of section
36(b)(4),
``(ii) information provided to the Secretary by the
taxpayer on an income tax return for at least one of the 2
preceding taxable years is inconsistent with eligibility
for such credit, or
``(iii) the taxpayer fails to attach to the return the
form described in section 36(d)(4).''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
purchases after the date of the enactment of this Act.
(2) Documentation requirement.--The amendments made by
subsection (b) shall apply to returns for taxable years ending
after the date of the enactment of this Act.
(3) Treatment as mathematical and clerical errors.--The
amendments made by subsection (d) shall apply to returns for
taxable years ending on or after April 9, 2008.
SEC. 13. 5-YEAR CARRYBACK OF OPERATING LOSSES.
(a) In General.--Subparagraph (H) of section 172(b)(1) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(H) Carryback for 2008 or 2009 net operating losses.--
``(i) In general.--In the case of an applicable net
operating loss with respect to which the taxpayer has
elected the application of this subparagraph--
``(I) subparagraph (A)(i) shall be applied by
substituting any whole number elected by the taxpayer
which is more than 2 and less than 6 for `2',
``(II) subparagraph (E)(ii) shall be applied by
substituting the whole number which is one less than
the whole number substituted under subclause (I) for
`2', and
``(III) subparagraph (F) shall not apply.
``(ii) Applicable net operating loss.--For purposes of
this subparagraph, the term `applicable net operating loss'
means the taxpayer's net operating loss for a taxable year
ending after December 31, 2007, and beginning before
January 1, 2010.
``(iii) Election.--
``(I) In general.--Any election under this
subparagraph may be made only with respect to 1 taxable
year.
``(II) Procedure.--Any election under this
subparagraph shall be made in such manner as may be
prescribed by the Secretary, and shall be made by the
due date (including extension of time) for filing the
return for the taxpayer's last taxable year beginning
in 2009. Any such election, once made, shall be
irrevocable.
``(iv) Limitation on amount of loss carryback to 5th
preceding taxable year.--
``(I) In general.--The amount of any net operating
loss which may be carried back to the 5th taxable year
preceding the taxable year of such loss under clause
(i) shall not exceed 50 percent of the taxpayer's
taxable income (computed without regard to the net
operating loss for the loss year or any taxable year
thereafter) for such preceding taxable year.
``(II) Carrybacks and carryovers to other taxable
years.--Appropriate adjustments in the application of
the second sentence of paragraph (2) shall be made to
take into account the limitation of subclause (I).
``(III) Exception for 2008 elections by small
businesses.--Subclause (I) shall not apply to any loss
of an eligible small business with respect to any
election made under this subparagraph as in effect on
the day before the date of the enactment of the Worker,
Homeownership, and Business Assistance Act of 2009.
``(v) Special rules for small business.--
``(I) In general.--In the case of an eligible small
business which made or makes an election under this
subparagraph as in effect on the day before the date of
the enactment of the Worker, Homeownership, and
Business Assistance Act of 2009, clause (iii)(I) shall
be applied by substituting `2 taxable years' for `1
taxable year'.
``(II) Eligible small business.--For purposes of
this subparagraph, the term `eligible small business'
has the meaning given such term by subparagraph
(F)(iii), except that in applying such subparagraph,
section 448(c) shall be applied by substituting
`$15,000,000' for `$5,000,000' each place it
appears.''.
(b) Alternative Tax Net Operating Loss Deduction.--Subclause (I) of
section 56(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended
to read as follows:
``(I) the amount of such deduction attributable to
an applicable net operating loss with respect to which
an election is made under section 172(b)(1)(H), or''.
(c) Loss From Operations of Life Insurance Companies.--Subsection
(b) of section 810 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(4) Carryback for 2008 or 2009 losses.--
``(A) In general.--In the case of an applicable loss from
operations with respect to which the taxpayer has elected the
application of this paragraph, paragraph (1)(A) shall be
applied by substituting any whole number elected by the
taxpayer which is more than 3 and less than 6 for `3'.
``(B) Applicable loss from operations.--For purposes of
this paragraph, the term `applicable loss from operations'
means the taxpayer's loss from operations for a taxable year
ending after December 31, 2007, and beginning before January 1,
2010.
``(C) Election.--
``(i) In general.--Any election under this paragraph
may be made only with respect to 1 taxable year.
``(ii) Procedure.--Any election under this paragraph
shall be made in such manner as may be prescribed by the
Secretary, and shall be made by the due date (including
extension of time) for filing the return for the taxpayer's
last taxable year beginning in 2009. Any such election,
once made, shall be irrevocable.
``(D) Limitation on amount of loss carryback to 5th
preceding taxable year.--
``(i) In general.--The amount of any loss from
operations which may be carried back to the 5th taxable
year preceding the taxable year of such loss under
subparagraph (A) shall not exceed 50 percent of the
taxpayer's taxable income (computed without regard to the
loss from operations for the loss year or any taxable year
thereafter) for such preceding taxable year.
``(ii) Carrybacks and carryovers to other taxable
years.--Appropriate adjustments in the application of the
second sentence of paragraph (2) shall be made to take into
account the limitation of clause (i).''.
(d) Anti-abuse Rules.--The Secretary of Treasury or the Secretary's
designee shall prescribe such rules as are necessary to prevent the
abuse of the purposes of the amendments made by this section, including
anti-stuffing rules, anti-churning rules (including rules relating to
sale-leasebacks), and rules similar to the rules under section 1091 of
the Internal Revenue Code of 1986 relating to losses from wash sales.
(e) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to net
operating losses arising in taxable years ending after December 31,
2007.
(2) Alternative tax net operating loss deduction.--The
amendment made by subsection (b) shall apply to taxable years
ending after December 31, 2002.
(3) Loss from operations of life insurance companies.--The
amendment made by subsection (d) shall apply to losses from
operations arising in taxable years ending after December 31, 2007.
(4) Transitional rule.--In the case of any net operating loss
(or, in the case of a life insurance company, any loss from
operations) for a taxable year ending before the date of the
enactment of this Act--
(A) any election made under section 172(b)(3) or 810(b)(3)
of the Internal Revenue Code of 1986 with respect to such loss
may (notwithstanding such section) be revoked before the due
date (including extension of time) for filing the return for
the taxpayer's last taxable year beginning in 2009, and
(B) any application under section 6411(a) of such Code with
respect to such loss shall be treated as timely filed if filed
before such due date.
(f) Exception for TARP Recipients.--The amendments made by this
section shall not apply to--
(1) any taxpayer if--
(A) the Federal Government acquired before the date of the
enactment of this Act an equity interest in the taxpayer
pursuant to the Emergency Economic Stabilization Act of 2008,
(B) the Federal Government acquired before such date of
enactment any warrant (or other right) to acquire any equity
interest with respect to the taxpayer pursuant to the Emergency
Economic Stabilization Act of 2008, or
(C) such taxpayer receives after such date of enactment
funds from the Federal Government in exchange for an interest
described in subparagraph (A) or (B) pursuant to a program
established under title I of division A of the Emergency
Economic Stabilization Act of 2008 (unless such taxpayer is a
financial institution (as defined in section 3 of such Act) and
the funds are received pursuant to a program established by the
Secretary of the Treasury for the stated purpose of increasing
the availability of credit to small businesses using funding
made available under such Act), or
(2) the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation, and
(3) any taxpayer which at any time in 2008 or 2009 was or is a
member of the same affiliated group (as defined in section 1504 of
the Internal Revenue Code of 1986, determined without regard to
subsection (b) thereof) as a taxpayer described in paragraph (1) or
(2).
SEC. 14. EXCLUSION FROM GROSS INCOME OF QUALIFIED MILITARY BASE
REALIGNMENT AND CLOSURE FRINGE.
(a) In General.--Subsection (n) of section 132 of the Internal
Revenue Code of 1986 is amended--
(1) in subparagraph (1) by striking ``this subsection) to
offset the adverse effects on housing values as a result of a
military base realignment or closure'' and inserting ``the American
Recovery and Reinvestment Tax Act of 2009)'', and
(2) in subparagraph (2) by striking ``clause (1) of''.
(b) Effective Date.--The amendments made by this act shall apply to
payments made after February 17, 2009.
SEC. 15. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.
(a) In General.--Paragraphs (5)(D) and (6) of section 864(f) of the
Internal Revenue Code of 1986 are each amended by striking ``December
31, 2010'' and inserting ``December 31, 2017''.
(b) Conforming Amendment.--Section 864(f) of the Internal Revenue
Code of 1986 is amended by striking paragraph (7).
(c) Effective Dates.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2010.
SEC. 16. INCREASE IN PENALTY FOR FAILURE TO FILE A PARTNERSHIP OR S
CORPORATION RETURN.
(a) In General.--Sections 6698(b)(1) and 6699(b)(1) of the Internal
Revenue Code of 1986 are each amended by striking ``$89'' and inserting
``$195''.
(b) Effective Date.--The amendments made by this section shall
apply to returns for taxable years beginning after December 31, 2009.
SEC. 17. CERTAIN TAX RETURN PREPARERS REQUIRED TO FILE RETURNS
ELECTRONICALLY.
(a) In General.--Subsection (e) of section 6011 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(3) Special rule for tax return preparers.--
``(A) In general.--The Secretary shall require than any
individual income tax return prepared by a tax return preparer
be filed on magnetic media if--
``(i) such return is filed by such tax return preparer,
and
``(ii) such tax return preparer is a specified tax
return preparer for the calendar year during which such
return is filed.
``(B) Specified tax return preparer.--For purposes of this
paragraph, the term `specified tax return preparer' means, with
respect to any calendar year, any tax return preparer unless
such preparer reasonably expects to file 10 or fewer individual
income tax returns during such calendar year.
``(C) Individual income tax return.--For purposes of this
paragraph, the term `individual income tax return' means any
return of the tax imposed by subtitle A on individuals,
estates, or trusts.''.
(b) Conforming Amendment.--Paragraph (1) of section 6011(e) of the
Internal Revenue Code of 1986 is amended by striking ``The Secretary
may not'' and inserting ``Except as provided in paragraph (3), the
Secretary may not''.
(c) Effective Date.--The amendments made by this section shall
apply to returns filed after December 31, 2010.
SEC. 18. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
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 33.0 percentage points.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.