[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.