[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4853 Enrolled Bill (ENR)]

        H.R.4853

                      One Hundred Eleventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the fifth day of January, two thousand and ten


                                 An Act


 
  To amend the Internal Revenue Code of 1986 to extend the funding and 
  expenditure authority of the Airport and Airway Trust Fund, to amend 
 title 49, United States Code, to extend authorizations for the airport 
              improvement program, 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; ETC.
    (a) Short Title.--This Act may be cited as the ``Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; etc.

               TITLE I--TEMPORARY EXTENSION OF TAX RELIEF

Sec. 101. Temporary extension of 2001 tax relief.
Sec. 102. Temporary extension of 2003 tax relief.
Sec. 103. Temporary extension of 2009 tax relief.

         TITLE II--TEMPORARY EXTENSION OF INDIVIDUAL AMT RELIEF

Sec. 201. Temporary extension of increased alternative minimum tax 
          exemption amount.
Sec. 202. Temporary extension of alternative minimum tax relief for 
          nonrefundable personal credits.

                 TITLE III--TEMPORARY ESTATE TAX RELIEF

Sec. 301. Reinstatement of estate tax; repeal of carryover basis.
Sec. 302. Modifications to estate, gift, and generation-skipping 
          transfer taxes.
Sec. 303. Applicable exclusion amount increased by unused exclusion 
          amount of deceased spouse.
Sec. 304. Application of EGTRRA sunset to this title.

         TITLE IV--TEMPORARY EXTENSION OF INVESTMENT INCENTIVES

Sec. 401. Extension of bonus depreciation; temporary 100 percent 
          expensing for certain business assets.
Sec. 402. Temporary extension of increased small business expensing.

   TITLE V--TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE AND RELATED 
                                 MATTERS

Sec. 501. Temporary extension of unemployment insurance provisions.
Sec. 502. Temporary modification of indicators under the extended 
          benefit program.
Sec. 503. Technical amendment relating to collection of unemployment 
          compensation debts.
Sec. 504. Technical correction relating to repeal of continued dumping 
          and subsidy offset.
Sec. 505. Additional extended unemployment benefits under the Railroad 
          Unemployment Insurance Act.

              TITLE VI--TEMPORARY EMPLOYEE PAYROLL TAX CUT

Sec. 601. Temporary employee payroll tax cut.

      TITLE VII--TEMPORARY EXTENSION OF CERTAIN EXPIRING PROVISIONS

                           Subtitle A--Energy

Sec. 701. Incentives for biodiesel and renewable diesel.
Sec. 702. Credit for refined coal facilities.
Sec. 703. New energy efficient home credit.
Sec. 704. Excise tax credits and outlay payments for alternative fuel 
          and alternative fuel mixtures.
Sec. 705. Special rule for sales or dispositions to implement FERC or 
          State electric restructuring policy for qualified electric 
          utilities.
Sec. 706. Suspension of limitation on percentage depletion for oil and 
          gas from marginal wells.
Sec. 707. Extension of grants for specified energy property in lieu of 
          tax credits.
Sec. 708. Extension of provisions related to alcohol used as fuel.
Sec. 709. Energy efficient appliance credit.
Sec. 710. Credit for nonbusiness energy property.
Sec. 711. Alternative fuel vehicle refueling property.

                    Subtitle B--Individual Tax Relief

Sec. 721. Deduction for certain expenses of elementary and secondary 
          school teachers.
Sec. 722. Deduction of State and local sales taxes.
Sec. 723. Contributions of capital gain real property made for 
          conservation purposes.
Sec. 724. Above-the-line deduction for qualified tuition and related 
          expenses.
Sec. 725. Tax-free distributions from individual retirement plans for 
          charitable purposes.
Sec. 726. Look-thru of certain regulated investment company stock in 
          determining gross estate of nonresidents.
Sec. 727. Parity for exclusion from income for employer-provided mass 
          transit and parking benefits.
Sec. 728. Refunds disregarded in the administration of Federal programs 
          and federally assisted programs.

                     Subtitle C--Business Tax Relief

Sec. 731. Research credit.
Sec. 732. Indian employment tax credit.
Sec. 733. New markets tax credit.
Sec. 734. Railroad track maintenance credit.
Sec. 735. Mine rescue team training credit.
Sec. 736. Employer wage credit for employees who are active duty members 
          of the uniformed services.
Sec. 737. 15-year straight-line cost recovery for qualified leasehold 
          improvements, qualified restaurant buildings and improvements, 
          and qualified retail improvements.
Sec. 738. 7-year recovery period for motorsports entertainment 
          complexes.
Sec. 739. Accelerated depreciation for business property on an Indian 
          reservation.
Sec. 740. Enhanced charitable deduction for contributions of food 
          inventory.
Sec. 741. Enhanced charitable deduction for contributions of book 
          inventories to public schools.
Sec. 742. Enhanced charitable deduction for corporate contributions of 
          computer inventory for educational purposes.
Sec. 743. Election to expense mine safety equipment.
Sec. 744. Special expensing rules for certain film and television 
          productions.
Sec. 745. Expensing of environmental remediation costs.
Sec. 746. Deduction allowable with respect to income attributable to 
          domestic production activities in Puerto Rico.
Sec. 747. Modification of tax treatment of certain payments to 
          controlling exempt organizations.
Sec. 748. Treatment of certain dividends of regulated investment 
          companies.
Sec. 749. RIC qualified investment entity treatment under FIRPTA.
Sec. 750. Exceptions for active financing income.
Sec. 751. Look-thru treatment of payments between related controlled 
          foreign corporations under foreign personal holding company 
          rules.
Sec. 752. Basis adjustment to stock of S corps making charitable 
          contributions of property.
Sec. 753. Empowerment zone tax incentives.
Sec. 754. Tax incentives for investment in the District of Columbia.
Sec. 755. Temporary increase in limit on cover over of rum excise taxes 
          to Puerto Rico and the Virgin Islands.
Sec. 756. American Samoa economic development credit.
Sec. 757. Work opportunity credit.
Sec. 758. Qualified zone academy bonds.
Sec. 759. Mortgage insurance premiums.
Sec. 760. Temporary exclusion of 100 percent of gain on certain small 
          business stock.

            Subtitle D--Temporary Disaster Relief Provisions

                    subpart a--new york liberty zone

Sec. 761. Tax-exempt bond financing.

                           subpart b--go zone

Sec. 762. Increase in rehabilitation credit.
Sec. 763. Low-income housing credit rules for buildings in GO zones.
Sec. 764. Tax-exempt bond financing.
Sec. 765. Bonus depreciation deduction applicable to the GO Zone.

                    TITLE VIII--BUDGETARY PROVISIONS

Sec. 801. Determination of budgetary effects.
Sec. 802. Emergency designations.

               TITLE I--TEMPORARY EXTENSION OF TAX RELIEF

    SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF.
    (a) Temporary Extension.--
        (1) In general.--Section 901 of the Economic Growth and Tax 
    Relief Reconciliation Act of 2001 is amended by striking ``December 
    31, 2010'' both places it appears and inserting ``December 31, 
    2012''.
        (2) Effective date.--The amendment made by this subsection 
    shall take effect as if included in the enactment of the Economic 
    Growth and Tax Relief Reconciliation Act of 2001.
    (b) Separate Sunset for Expansion of Adoption Benefits Under the 
Patient Protection and Affordable Care Act.--
        (1) In general.--Subsection (c) of section 10909 of the Patient 
    Protection and Affordable Care Act is amended to read as follows:
    ``(c) Sunset Provision.--Each provision of law amended by this 
section is amended to read as such provision would read if this section 
had never been enacted. The amendments made by the preceding sentence 
shall apply to taxable years beginning after December 31, 2011.''.
        (2) Conforming amendment.--Subsection (d) of section 10909 of 
    such Act is amended by striking ``The amendments'' and inserting 
    ``Except as provided in subsection (c), the amendments''.
    SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF.
    (a) In General.--Section 303 of the Jobs and Growth Tax Relief 
Reconciliation Act of 2003 is amended by striking ``December 31, 2010'' 
and inserting ``December 31, 2012''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the enactment of the Jobs and Growth Tax 
Relief Reconciliation Act of 2003.
    SEC. 103. TEMPORARY EXTENSION OF 2009 TAX RELIEF.
    (a) American Opportunity Tax Credit.--
        (1) In general.--Section 25A(i) is amended by striking ``or 
    2010'' and inserting ``, 2010, 2011, or 2012''.
        (2) Treatment of possessions.--Section 1004(c)(1) of the 
    American Recovery and Reinvestment Tax Act of 2009 is amended by 
    striking ``and 2010'' each place it appears and inserting ``, 2010, 
    2011, and 2012''.
    (b) Child Tax Credit.--Section 24(d)(4) is amended--
        (1) by striking ``2009 and 2010'' in the heading and inserting 
    ``2009, 2010, 2011, and 2012'', and
        (2) by striking ``or 2010'' and inserting ``, 2010, 2011, or 
    2012''.
    (c) Earned Income Tax Credit.--Section 32(b)(3) is amended--
        (1) by striking ``2009 and 2010'' in the heading and inserting 
    ``2009, 2010, 2011, and 2012'', and
        (2) by striking ``or 2010'' and inserting ``, 2010, 2011, or 
    2012''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.

         TITLE II--TEMPORARY EXTENSION OF INDIVIDUAL AMT RELIEF

    SEC. 201. TEMPORARY EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
      EXEMPTION AMOUNT.
    (a) In General.--Paragraph (1) of section 55(d) is amended--
        (1) by striking ``$70,950'' and all that follows through 
    ``2009'' in subparagraph (A) and inserting ``$72,450 in the case of 
    taxable years beginning in 2010 and $74,450 in the case of taxable 
    years beginning in 2011'', and
        (2) by striking ``$46,700'' and all that follows through 
    ``2009'' in subparagraph (B) and inserting ``$47,450 in the case of 
    taxable years beginning in 2010 and $48,450 in the case of taxable 
    years beginning in 2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
    (c) Repeal of EGTRRA Sunset.--Title IX of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions 
of such Act) shall not apply to title VII of such Act (relating to 
alternative minimum tax).
    SEC. 202. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
      NONREFUNDABLE PERSONAL CREDITS.
    (a) In General.--Paragraph (2) of section 26(a) is amended--
        (1) by striking ``or 2009'' and inserting ``2009, 2010, or 
    2011'', and
        (2) by striking ``2009'' in the heading thereof and inserting 
    ``2011''.
    (b)  Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

                 TITLE III--TEMPORARY ESTATE TAX RELIEF

    SEC. 301. REINSTATEMENT OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.
    (a) In General.--Each provision of law amended by subtitle A or E 
of title V of the Economic Growth and Tax Relief Reconciliation Act of 
2001 is amended to read as such provision would read if such subtitle 
had never been enacted.
    (b) Conforming Amendment.--On and after January 1, 2011, paragraph 
(1) of section 2505(a) of the Internal Revenue Code of 1986 is amended 
to read as such paragraph would read if section 521(b)(2) of the 
Economic Growth and Tax Relief Reconciliation Act of 2001 had never 
been enacted.
    (c) Special Election With Respect to Estates of Decedents Dying in 
2010.--Notwithstanding subsection (a), in the case of an estate of a 
decedent dying after December 31, 2009, and before January 1, 2011, the 
executor (within the meaning of section 2203 of the Internal Revenue 
Code of 1986) may elect to apply such Code as though the amendments 
made by subsection (a) do not apply with respect to chapter 11 of such 
Code and with respect to property acquired or passing from such 
decedent (within the meaning of section 1014(b) of such Code).  Such 
election shall be made at such time and in such manner as the Secretary 
of the Treasury or the Secretary's delegate shall provide. Such an 
election once made shall be revocable only with the consent of the 
Secretary of the Treasury or the Secretary's delegate. For purposes of 
section 2652(a)(1) of such Code, the determination of whether any 
property is subject to the tax imposed by such chapter 11 shall be made 
without regard to any election made under this subsection.
    (d) Extension of Time for Performing Certain Acts.--
        (1) Estate tax.--In the case of the estate of a decedent dying 
    after December 31, 2009, and before the date of the enactment of 
    this Act, the due date for--
            (A) filing any return under section 6018 of the Internal 
        Revenue Code of 1986 (including any election required to be 
        made on such a return) as such section is in effect after the 
        date of the enactment of this Act without regard to any 
        election under subsection (c),
            (B) making any payment of tax under chapter 11 of such 
        Code, and
            (C) making any disclaimer described in section 2518(b) of 
        such Code of an interest in property passing by reason of the 
        death of such decedent,
    shall not be earlier than the date which is 9 months after the date 
    of the enactment of this Act.
        (2) Generation-skipping tax.--In the case of any generation-
    skipping transfer made after December 31, 2009, and before the date 
    of the enactment of this Act, the due date for filing any return 
    under section 2662 of the Internal Revenue Code of 1986 (including 
    any election required to be made on such a return) shall not be 
    earlier than the date which is 9 months after the date of the 
    enactment of this Act.
    (e) Effective Date.--Except as otherwise provided in this section, 
the amendments made by this section shall apply to estates of decedents 
dying, and transfers made, after December 31, 2009.
    SEC. 302. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-SKIPPING 
      TRANSFER TAXES.
    (a) Modifications to Estate Tax.--
        (1) $5,000,000 applicable exclusion amount.--Subsection (c) of 
    section 2010 is amended to read as follows:
    ``(c) Applicable Credit Amount.--
        ``(1) In general.--For purposes of this section, the applicable 
    credit amount is the amount of the tentative tax which would be 
    determined under section 2001(c) if the amount with respect to 
    which such tentative tax is to be computed were equal to the 
    applicable exclusion amount.
        ``(2) Applicable exclusion amount.--
            ``(A) In general.--For purposes of this subsection, the 
        applicable exclusion amount is $5,000,000.
            ``(B) Inflation adjustment.--In the case of any decedent 
        dying in a calendar year after 2011, the dollar amount in 
        subparagraph (A) shall be increased by an amount equal to--
                ``(i) such dollar amount, multiplied by
                ``(ii) the cost-of-living adjustment determined under 
            section 1(f)(3) for such calendar year by substituting 
            `calendar year 2010' for `calendar year 1992' in 
            subparagraph (B) thereof.
        If any amount as adjusted under the preceding sentence is not a 
        multiple of $10,000, such amount shall be rounded to the 
        nearest multiple of $10,000.''.
        (2) Maximum estate tax rate equal to 35 percent.--Subsection 
    (c) of section 2001 is amended--
            (A) by striking ``Over $500,000'' and all that follows in 
        the table contained in paragraph (1) and inserting the 
        following:


``Over $500,000..............................  $155,800, plus 35 percent of the excess of such amount over
                                                $500,000.'',
 


            (B) by striking ``(1) In general.--'', and
            (C) by striking paragraph (2).
    (b) Modifications to Gift Tax.--
        (1) Restoration of unified credit against gift tax.--
            (A) In general.--Paragraph (1) of section 2505(a), after 
        the application of section 301(b), is amended by striking 
        ``(determined as if the applicable exclusion amount were 
        $1,000,000)''.
            (B) Effective date.--The amendment made by this paragraph 
        shall apply to gifts made after December 31, 2010.
        (2) Modification of gift tax rate.--On and after January 1, 
    2011, subsection (a) of section 2502 is amended to read as such 
    subsection would read if section 511(d) of the Economic Growth and 
    Tax Relief Reconciliation Act of 2001 had never been enacted.
    (c) Modification of Generation-skipping Transfer Tax.--In the case 
of any generation-skipping transfer made after December 31, 2009, and 
before January 1, 2011, the applicable rate determined under section 
2641(a) of the Internal Revenue Code of 1986 shall be zero.
    (d) Modifications of Estate and Gift Taxes to Reflect Differences 
in Credit Resulting From Different Tax Rates.--
        (1) Estate tax.--
            (A) In general.--Section 2001(b)(2) is amended by striking 
        ``if the provisions of subsection (c) (as in effect at the 
        decedent's death)'' and inserting ``if the modifications 
        described in subsection (g)''.
            (B) Modifications.--Section 2001 is amended by adding at 
        the end the following new subsection:
    ``(g) Modifications to Gift Tax Payable to Reflect Different Tax 
Rates.--For purposes of applying subsection (b)(2) with respect to 1 or 
more gifts, the rates of tax under subsection (c) in effect at the 
decedent's death shall, in lieu of the rates of tax in effect at the 
time of such gifts, be used both to compute--
        ``(1) the tax imposed by chapter 12 with respect to such gifts, 
    and
        ``(2) the credit allowed against such tax under section 2505, 
    including in computing--
            ``(A) the applicable credit amount under section 
        2505(a)(1), and
            ``(B) the sum of the amounts allowed as a credit for all 
        preceding periods under section 2505(a)(2).''.
        (2) Gift tax.--Section 2505(a) is amended by adding at the end 
    the following new flush sentence:
``For purposes of applying paragraph (2) for any calendar year, the 
rates of tax in effect under section 2502(a)(2) for such calendar year 
shall, in lieu of the rates of tax in effect for preceding calendar 
periods, be used in determining the amounts allowable as a credit under 
this section for all preceding calendar periods.''.
    (e) Conforming Amendment.--Section 2511 is amended by striking 
subsection (c).
    (f) Effective Date.--Except as otherwise provided in this 
subsection, the amendments made by this section shall apply to estates 
of decedents dying, generation-skipping transfers, and gifts made, 
after December 31, 2009.
    SEC. 303. APPLICABLE EXCLUSION AMOUNT INCREASED BY UNUSED EXCLUSION 
      AMOUNT OF DECEASED SPOUSE.
    (a) In General.--Section 2010(c), as amended by section 302(a), is 
amended by striking paragraph (2) and inserting the following new 
paragraphs:
        ``(2) Applicable exclusion amount.--For purposes of this 
    subsection, the applicable exclusion amount is the sum of--
            ``(A) the basic exclusion amount, and
            ``(B) in the case of a surviving spouse, the deceased 
        spousal unused exclusion amount.
        ``(3) Basic exclusion amount.--
            ``(A) In general.--For purposes of this subsection, the 
        basic exclusion amount is $5,000,000.
            ``(B) Inflation adjustment.--In the case of any decedent 
        dying in a calendar year after 2011, the dollar amount in 
        subparagraph (A) shall be increased by an amount equal to--
                ``(i) such dollar amount, multiplied by
                ``(ii) the cost-of-living adjustment determined under 
            section 1(f)(3) for such calendar year by substituting 
            `calendar year 2010' for `calendar year 1992' in 
            subparagraph (B) thereof.
        If any amount as adjusted under the preceding sentence is not a 
        multiple of $10,000, such amount shall be rounded to the 
        nearest multiple of $10,000.
        ``(4) Deceased spousal unused exclusion amount.--For purposes 
    of this subsection, with respect to a surviving spouse of a 
    deceased spouse dying after December 31, 2010, the term `deceased 
    spousal unused exclusion amount' means the lesser of--
            ``(A) the basic exclusion amount, or
            ``(B) the excess of--
                ``(i) the basic exclusion amount of the last such 
            deceased spouse of such surviving spouse, over
                ``(ii) the amount with respect to which the tentative 
            tax is determined under section 2001(b)(1) on the estate of 
            such deceased spouse.
        ``(5) Special rules.--
            ``(A) Election required.--A deceased spousal unused 
        exclusion amount may not be taken into account by a surviving 
        spouse under paragraph (2) unless the executor of the estate of 
        the deceased spouse files an estate tax return on which such 
        amount is computed and makes an election on such return that 
        such amount may be so taken into account. Such election, once 
        made, shall be irrevocable. No election may be made under this 
        subparagraph if such return is filed after the time prescribed 
        by law (including extensions) for filing such return.
            ``(B) Examination of prior returns after expiration of 
        period of limitations with respect to deceased spousal unused 
        exclusion amount.--Notwithstanding any period of limitation in 
        section 6501, after the time has expired under section 6501 
        within which a tax may be assessed under chapter 11 or 12 with 
        respect to a deceased spousal unused exclusion amount, the 
        Secretary may examine a return of the deceased spouse to make 
        determinations with respect to such amount for purposes of 
        carrying out this subsection.
        ``(6) Regulations.--The Secretary shall prescribe such 
    regulations as may be necessary or appropriate to carry out this 
    subsection.''.
    (b) Conforming Amendments.--
        (1) Paragraph (1) of section 2505(a), as amended by section 
    302(b)(1), is amended to read as follows:
        ``(1) the applicable credit amount in effect under section 
    2010(c) which would apply if the donor died as of the end of the 
    calendar year, reduced by''.
        (2) Section 2631(c) is amended by striking ``the applicable 
    exclusion amount'' and inserting ``the basic exclusion amount''.
        (3) Section 6018(a)(1) is amended by striking ``applicable 
    exclusion amount'' and inserting ``basic exclusion amount''.
    (c) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall apply to estates of decedents 
    dying and gifts made after December 31, 2010.
        (2) Conforming amendment relating to generation-skipping 
    transfers.--The amendment made by subsection (b)(2) shall apply to 
    generation-skipping transfers after December 31, 2010.
    SEC. 304. APPLICATION OF EGTRRA SUNSET TO THIS TITLE.
    Section 901 of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 shall apply to the amendments made by this title.

         TITLE IV--TEMPORARY EXTENSION OF INVESTMENT INCENTIVES

    SEC. 401. EXTENSION OF BONUS DEPRECIATION; TEMPORARY 100 PERCENT 
      EXPENSING FOR CERTAIN BUSINESS ASSETS.
    (a) In General.--Paragraph (2) of section 168(k) is amended--
        (1) by striking ``January 1, 2012'' in subparagraph (A)(iv) and 
    inserting ``January 1, 2014'', and
        (2) by striking ``January 1, 2011'' each place it appears and 
    inserting ``January 1, 2013''.
    (b) Temporary 100 Percent Expensing.--Subsection (k) of section 168 
is amended by adding at the end the following new paragraph:
        ``(5) Special rule for property acquired during certain pre-
    2012 periods.--In the case of qualified property acquired by the 
    taxpayer (under rules similar to the rules of clauses (ii) and 
    (iii) of paragraph (2)(A)) after September 8, 2010, and before 
    January 1, 2012, and which is placed in service by the taxpayer 
    before January 1, 2012 (January 1, 2013, in the case of property 
    described in subparagraph (2)(B) or (2)(C)), paragraph (1)(A) shall 
    be applied by substituting `100 percent' for `50 percent'.''.
    (c) Extension of Election To Accelerate the AMT Credit in Lieu of 
Bonus Depreciation.--
        (1) Extension.--Clause (iii) of section 168(k)(4)(D) is amended 
    by striking ``or production'' and all that follows and inserting 
    ``or production--

                    ``(I) after March 31, 2008, and before January 1, 
                2010, and
                    ``(II) after December 31, 2010, and before January 
                1, 2013,

            shall be taken into account under subparagraph (B)(ii) 
            thereof,''.
        (2) Rules for round 2 extension property.--Paragraph (4) of 
    section 168(k) is amended by adding at the end the following new 
    subparagraph:
            ``(I) Special rules for round 2 extension property.--
                ``(i) In general.--In the case of round 2 extension 
            property, this paragraph shall be applied without regard 
            to--

                    ``(I) the limitation described in subparagraph 
                (B)(i) thereof, and
                    ``(II) the business credit increase amount under 
                subparagraph (E)(iii) thereof.

                ``(ii) Taxpayers previously electing acceleration.--In 
            the case of a taxpayer who made the election under 
            subparagraph (A) for its first taxable year ending after 
            March 31, 2008, or a taxpayer who made the election under 
            subparagraph (H)(ii) for its first taxable year ending 
            after December 31, 2008--

                    ``(I) the taxpayer may elect not to have this 
                paragraph apply to round 2 extension property, but
                    ``(II) if the taxpayer does not make the election 
                under subclause (I), in applying this paragraph to the 
                taxpayer the bonus depreciation amount, maximum amount, 
                and maximum increase amount shall be computed and 
                applied to eligible qualified property which is round 2 
                extension property.

            The amounts described in subclause (II) shall be computed 
            separately from any amounts computed with respect to 
            eligible qualified property which is not round 2 extension 
            property.
                ``(iii) Taxpayers not previously electing 
            acceleration.--In the case of a taxpayer who neither made 
            the election under subparagraph (A) for its first taxable 
            year ending after March 31, 2008, nor made the election 
            under subparagraph (H)(ii) for its first taxable year 
            ending after December 31, 2008--

                    ``(I) the taxpayer may elect to have this paragraph 
                apply to its first taxable year ending after December 
                31, 2010, and each subsequent taxable year, and
                    ``(II) if the taxpayer makes the election under 
                subclause (I), this paragraph shall only apply to 
                eligible qualified property which is round 2 extension 
                property.

                ``(iv) Round 2 extension property.--For purposes of 
            this subparagraph, the term `round 2 extension property' 
            means property which is eligible qualified property solely 
            by reason of the extension of the application of the 
            special allowance under paragraph (1) pursuant to the 
            amendments made by section 401(a) of the Tax Relief, 
            Unemployment Insurance Reauthorization, and Job Creation 
            Act of 2010 (and the application of such extension to this 
            paragraph pursuant to the amendment made by section 
            401(c)(1) of such Act).''.
    (d) Conforming Amendments.--
        (1) The heading for subsection (k) of section 168 is amended by 
    striking ``January 1, 2011'' and inserting ``January 1, 2013''.
        (2) The heading for clause (ii) of section 168(k)(2)(B) is 
    amended by striking ``pre-january 1, 2011'' and inserting ``pre-
    january 1, 2013''.
        (3) Subparagraph (D) of section 168(k)(4) is amended--
            (A) by striking clauses (iv) and (v),
            (B) by inserting ``and'' at the end of clause (ii), and
            (C) by striking the comma at the end of clause (iii) and 
        inserting a period.
        (4) Paragraph (5) of section 168(l) is amended--
            (A) by inserting ``and'' at the end of subparagraph (A),
            (B) by striking subparagraph (B), and
            (C) by redesignating subparagraph (C) as subparagraph (B).
        (5) Subparagraph (C) of section 168(n)(2) is amended by 
    striking ``January 1, 2011'' and inserting ``January 1, 2013''.
        (6) Subparagraph (D) of section 1400L(b)(2) is amended by 
    striking ``January 1, 2011'' and inserting ``January 1, 2013''.
        (7) Subparagraph (B) of section 1400N(d)(3) is amended by 
    striking ``January 1, 2011'' and inserting ``January 1, 2013''.
    (e) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall apply to property placed in 
    service after December 31, 2010, in taxable years ending after such 
    date.
        (2) Temporary 100 percent expensing.--The amendment made by 
    subsection (b) shall apply to property placed in service after 
    September 8, 2010, in taxable years ending after such date.
    SEC. 402. TEMPORARY EXTENSION OF INCREASED SMALL BUSINESS 
      EXPENSING.
    (a) Dollar Limitation.--Section 179(b)(1) is amended by striking 
``and'' at the end of subparagraph (B) and by striking subparagraph (C) 
and inserting the following new subparagraphs:
            ``(C) $125,000 in the case of taxable years beginning in 
        2012, and
            ``(D) $25,000 in the case of taxable years beginning after 
        2012.''.
    (b) Reduction in Limitation.--Section 179(b)(2) is amended by 
striking ``and'' at the end of subparagraph (B) and by striking 
subparagraph (C) and inserting the following new subparagraphs:
            ``(C) $500,000 in the case of taxable years beginning in 
        2012, and
            ``(D) $200,000 in the case of taxable years beginning after 
        2012.''.
    (c) Inflation Adjustment.--Subsection (b) of section 179 is amended 
by adding at the end the following new paragraph:
        ``(6) Inflation adjustment.--
            ``(A) In general.--In the case of any taxable year 
        beginning in calendar year 2012, the $125,000 and $500,000 
        amounts in paragraphs (1)(C) and (2)(C) shall each be increased 
        by an amount equal to--
                ``(i) such dollar amount, multiplied by
                ``(ii) the cost-of-living adjustment determined under 
            section 1(f)(3) for the calendar year in which the taxable 
            year begins, by substituting `calendar year 2006' for 
            `calendar year 1992' in subparagraph (B) thereof.
            ``(B) Rounding.--
                ``(i) Dollar limitation.--If the amount in paragraph 
            (1) as increased under subparagraph (A) is not a multiple 
            of $1,000, such amount shall be rounded to the nearest 
            multiple of $1,000.
                ``(ii) Phaseout amount.--If the amount in paragraph (2) 
            as increased under subparagraph (A) is not a multiple of 
            $10,000, such amount shall be rounded to the nearest 
            multiple of $10,000.''.
    (d) Computer Software.--Section 179(d)(1)(A)(ii) is amended by 
striking ``2012'' and inserting ``2013''.
    (e) Conforming Amendment.--Section 179(c)(2) is amended by striking 
``2012'' and inserting ``2013''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

  TITLE V--TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE AND RELATED 
                                MATTERS

    SEC. 501. TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.
    (a) In General.--(1) Section 4007 of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is 
amended--
        (A) by striking ``November 30, 2010'' each place it appears and 
    inserting ``January 3, 2012'';
        (B) in the heading for subsection (b)(2), by striking 
    ``november 30, 2010'' and inserting ``january 3, 2012''; and
        (C) in subsection (b)(3), by striking ``April 30, 2011'' and 
    inserting ``June 9, 2012''.
    (2) Section 2005 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. 444), is amended--
        (A) by striking ``December 1, 2010'' each place it appears and 
    inserting ``January 4, 2012''; and
        (B) in subsection (c), by striking ``May 1, 2011'' and 
    inserting ``June 11, 2012''.
    (3) Section 5 of the Unemployment Compensation Extension Act of 
2008 (Public Law 110-449; 26 U.S.C. 3304 note) is amended by striking 
``April 30, 2011'' and inserting ``June 10, 2012''.
    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
        (1) in subparagraph (E), by striking ``and'' at the end; and
        (2) by inserting after subparagraph (F) the following:
            ``(G) the amendments made by section 501(a)(1) of the Tax 
        Relief, Unemployment Insurance Reauthorization, and Job 
        Creation Act of 2010; and''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the Unemployment Compensation 
Extension Act of 2010 (Public Law 111-205).
    SEC. 502. TEMPORARY MODIFICATION OF INDICATORS UNDER THE EXTENDED 
      BENEFIT PROGRAM.
    (a) Indicator.--Section 203(d) of the Federal-State Extended 
Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended, 
in the flush matter following paragraph (2), by inserting after the 
first sentence the following sentence: ``Effective with respect to 
compensation for weeks of unemployment beginning after the date of 
enactment of the Tax Relief, Unemployment Insurance Reauthorization, 
and Job Creation Act of 2010 (or, if later, the date established 
pursuant to State law), and ending on or before December 31, 2011, the 
State may by law provide that the determination of whether there has 
been a state `on' or `off' indicator beginning or ending any extended 
benefit period shall be made under this subsection as if the word `two' 
were `three' in subparagraph (1)(A).''.
    (b) Alternative Trigger.--Section 203(f) of the Federal-State 
Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is 
amended--
        (1) by redesignating paragraph (2) as paragraph (3); and
        (2) by inserting after paragraph (1) the following new 
    paragraph:
    ``(2) Effective with respect to compensation for weeks of 
unemployment beginning after the date of enactment of the Tax Relief, 
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 
(or, if later, the date established pursuant to State law), and ending 
on or before December 31, 2011, the State may by law provide that the 
determination of whether there has been a state `on' or `off' indicator 
beginning or ending any extended benefit period shall be made under 
this subsection as if the word `either' were `any', the word `both' 
were `all', and the figure `2' were `3' in clause (1)(A)(ii).''.
    SEC. 503. TECHNICAL AMENDMENT RELATING TO COLLECTION OF 
      UNEMPLOYMENT COMPENSATION DEBTS.
    (a) In General.--Section 6402(f)(3)(C), as amended by section 801 
of the Claims Resolution Act of 2010, is amended by striking ``is not a 
covered unemployment compensation debt'' and inserting ``is a covered 
unemployment compensation debt''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in section 801 of the Claims Resolution Act 
of 2010.
    SEC. 504. TECHNICAL CORRECTION RELATING TO REPEAL OF CONTINUED 
      DUMPING AND SUBSIDY OFFSET.
    (a) In General.--Section 822(2)(A) of the Claims Resolution Act of 
2010 is amended by striking ``or'' and inserting ``and''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the provisions of the Claims Resolution 
Act of 2010.
    SEC. 505. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE 
      RAILROAD UNEMPLOYMENT INSURANCE ACT.
    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad 
Unemployment Insurance Act, as added by section 2006 of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111-5) and as amended 
by section 9 of the Worker, Homeownership, and Business Assistance Act 
of 2009 (Public Law 111-92), is amended--
        (1) by striking ``June 30, 2010'' and inserting ``June 30, 
    2011''; and
        (2) by striking ``December 31, 2010'' and inserting ``December 
    31, 2011''.
    (b) Clarification on Authority To Use Funds.--Funds appropriated 
under either the first or second sentence of clause (iv) of section 
2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be 
available to cover the cost of additional extended unemployment 
benefits provided under such section 2(c)(2)(D) by reason of the 
amendments made by subsection (a) as well as to cover the cost of such 
benefits provided under such section 2(c)(2)(D), as in effect on the 
day before the date of the enactment of this Act.

              TITLE VI--TEMPORARY EMPLOYEE PAYROLL TAX CUT

    SEC. 601. TEMPORARY EMPLOYEE PAYROLL TAX CUT.
    (a) In General.--Notwithstanding any other provision of law--
        (1) with respect to any taxable year which begins in the 
    payroll tax holiday period, the rate of tax under section 1401(a) 
    of the Internal Revenue Code of 1986 shall be 10.40 percent, and
        (2) with respect to remuneration received during the payroll 
    tax holiday period, the rate of tax under 3101(a) of such Code 
    shall be 4.2 percent (including for purposes of determining the 
    applicable percentage under sections 3201(a) and 3211(a)(1) of such 
    Code).
    (b) Coordination With Deductions for Employment Taxes.--
        (1) Deduction in computing net earnings from self-employment.--
    For purposes of applying section 1402(a)(12) of the Internal 
    Revenue Code of 1986, the rate of tax imposed by subsection 1401(a) 
    of such Code shall be determined without regard to the reduction in 
    such rate under this section.
        (2) Individual deduction.--In the case of the taxes imposed by 
    section 1401 of such Code for any taxable year which begins in the 
    payroll tax holiday period, the deduction under section 164(f) with 
    respect to such taxes shall be equal to the sum of--
            (A) 59.6 percent of the portion of such taxes attributable 
        to the tax imposed by section 1401(a) (determined after the 
        application of this section), plus
            (B) one-half of the portion of such taxes attributable to 
        the tax imposed by section 1401(b).
    (c) Payroll Tax Holiday Period.--The term ``payroll tax holiday 
period'' means calendar year 2011.
    (d) Employer Notification.--The Secretary of the Treasury shall 
notify employers of the payroll tax holiday period in any manner the 
Secretary deems appropriate.
    (e) Transfers of Funds.--
        (1) Transfers to federal old-age and survivors insurance trust 
    fund.--There are hereby appropriated to the Federal Old-Age and 
    Survivors Trust Fund and the Federal Disability Insurance Trust 
    Fund established under section 201 of the Social Security Act (42 
    U.S.C. 401) amounts equal to the reduction in revenues to the 
    Treasury by reason of the application of 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.
        (2) Transfers to social security equivalent benefit account.--
    There are hereby appropriated to the Social Security Equivalent 
    Benefit Account established under section 15A(a) of the Railroad 
    Retirement Act of 1974 (45 U.S.C. 231n-1(a)) amounts equal to the 
    reduction in revenues to the Treasury by reason of the application 
    of subsection (a)(2). 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.
        (3) Coordination with other federal laws.--For purposes of 
    applying any provision of Federal law other than the provisions of 
    the Internal Revenue Code of 1986, the rate of tax in effect under 
    section 3101(a) of such Code shall be determined without regard to 
    the reduction in such rate under this section.

     TITLE VII--TEMPORARY EXTENSION OF CERTAIN EXPIRING PROVISIONS
                           Subtitle A--Energy

    SEC. 701. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.
    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31, 
2009'' and inserting ``December 31, 2011''.
    (b) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
        (1) Paragraph (6) of section 6426(c) is amended by striking 
    ``December 31, 2009'' and inserting ``December 31, 2011''.
        (2) Subparagraph (B) of section 6427(e)(6) is amended by 
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (c) Special Rule for 2010.--Notwithstanding any other provision of 
law, in the case of any biodiesel mixture credit properly determined 
under section 6426(c) of the Internal Revenue Code of 1986 for periods 
during 2010, such credit shall be allowed, and any refund or payment 
attributable to such credit (including any payment under section 
6427(e) of such Code) shall be made, only in such manner as the 
Secretary of the Treasury (or the Secretary's delegate) shall provide. 
Such Secretary shall issue guidance within 30 days after the date of 
the enactment of this Act providing for a one-time submission of claims 
covering periods during 2010. Such guidance shall provide for a 180-day 
period for the submission of such claims (in such manner as prescribed 
by such Secretary) to begin not later than 30 days after such guidance 
is issued. Such claims shall be paid by such Secretary not later than 
60 days after receipt. If such Secretary has not paid pursuant to a 
claim filed under this subsection within 60 days after the date of the 
filing of such claim, the claim shall be paid with interest from such 
date determined by using the overpayment rate and method under section 
6621 of such Code.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2009.
    SEC. 702. CREDIT FOR REFINED COAL FACILITIES.
    (a) In General.--Subparagraph (B) of section 45(d)(8) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to facilities placed in service after December 31, 2009.
    SEC. 703. NEW ENERGY EFFICIENT HOME CREDIT.
    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2009.
    SEC. 704. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR ALTERNATIVE 
      FUEL AND ALTERNATIVE FUEL MIXTURES.
    (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 6427(e)(6)(C) 
are each amended by striking ``December 31, 2009'' and inserting 
``December 31, 2011''.
    (b) Exclusion of Black Liquor From Credit Eligibility.--The last 
sentence of section 6426(d)(2) is amended by striking ``or biodiesel'' 
and inserting ``biodiesel, or any fuel (including lignin, wood 
residues, or spent pulping liquors) derived from the production of 
paper or pulp''.
    (c) Special Rule for 2010.--Notwithstanding any other provision of 
law, in the case of any alternative fuel credit or any alternative fuel 
mixture credit properly determined under subsection (d) or (e) of 
section 6426 of the Internal Revenue Code of 1986 for periods during 
2010, such credit shall be allowed, and any refund or payment 
attributable to such credit (including any payment under section 
6427(e) of such Code) shall be made, only in such manner as the 
Secretary of the Treasury (or the Secretary's delegate) shall provide. 
Such Secretary shall issue guidance within 30 days after the date of 
the enactment of this Act providing for a one-time submission of claims 
covering periods during 2010. Such guidance shall provide for a 180-day 
period for the submission of such claims (in such manner as prescribed 
by such Secretary) to begin not later than 30 days after such guidance 
is issued. Such claims shall be paid by such Secretary not later than 
60 days after receipt. If such Secretary has not paid pursuant to a 
claim filed under this subsection within 60 days after the date of the 
filing of such claim, the claim shall be paid with interest from such 
date determined by using the overpayment rate and method under section 
6621 of such Code.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after December 31, 2009.
    SEC. 705. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC 
      OR STATE ELECTRIC RESTRUCTURING POLICY FOR QUALIFIED ELECTRIC 
      UTILITIES.
    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions after December 31, 2009.
    SEC. 706. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL 
      AND GAS FROM MARGINAL WELLS.
    (a) In General.--Clause (ii) of section 613A(c)(6)(H) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
    SEC. 707. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU 
      OF TAX CREDITS.
    (a) In General.--Subsection (a) of section 1603 of division B of 
the American Recovery and Reinvestment Act of 2009 is amended--
        (1) in paragraph (1), by striking ``2009 or 2010'' and 
    inserting ``2009, 2010, or 2011'', and
        (2) in paragraph (2)--
            (A) by striking ``after 2010'' and inserting ``after 
        2011'', and
            (B) by striking ``2009 or 2010'' and inserting ``2009, 
        2010, or 2011''.
    (b) Conforming Amendment.--Subsection (j) of section 1603 of 
division B of such Act is amended by striking ``2011'' and inserting 
``2012''.
    SEC. 708. EXTENSION OF PROVISIONS RELATED TO ALCOHOL USED AS FUEL.
    (a) Extension of Income Tax Credit for Alcohol Used as Fuel.--
        (1) In general.--Paragraph (1) of section 40(e) is amended--
            (A) by striking ``December 31, 2010'' in subparagraph (A) 
        and inserting ``December 31, 2011'', and
            (B) by striking ``January 1, 2011'' in subparagraph (B) and 
        inserting ``January 1, 2012''.
        (2) Reduced amount for ethanol blenders.--Subsection (h) of 
    section 40 is amended by striking ``2010'' both places it appears 
    and inserting ``2011''.
        (3) Effective date.--The amendments made by this subsection 
    shall apply to periods after December 31, 2010.
    (b) Extension of Excise Tax Credit for Alcohol Used as Fuel.--
        (1) In general.--Paragraph (6) of section 6426(b) is amended by 
    striking ``December 31, 2010'' and inserting ``December 31, 2011''.
        (2) Effective date.--The amendment made by this subsection 
    shall apply to periods after December 31, 2010.
    (c) Extension of Payment for Alcohol Fuel Mixture.--
        (1) In general.--Subparagraph (A) of section 6427(e)(6) is 
    amended by striking ``December 31, 2010'' and inserting ``December 
    31, 2011''.
        (2) Effective date.--The amendment made by this subsection 
    shall apply to sales and uses after December 31, 2010.
    (d) Extension of Additional Duties on Ethanol.--
        (1) In general.--Headings 9901.00.50 and 9901.00.52 of the 
    Harmonized Tariff Schedule of the United States are each amended in 
    the effective period column by striking ``1/1/2011'' and inserting 
    ``1/1/2012''.
        (2) Effective date.--The amendments made by this subsection 
    shall take effect on January 1, 2011.
    SEC. 709. ENERGY EFFICIENT APPLIANCE CREDIT.
    (a) Dishwashers.--Paragraph (1) of section 45M(b) is amended by 
striking ``and'' at the end of subparagraph (A), by striking the period 
at the end of subparagraph (B) and inserting a comma, and by adding at 
the end the following new subparagraphs:
            ``(C) $25 in the case of a dishwasher which is manufactured 
        in calendar year 2011 and which uses no more than 307 kilowatt 
        hours per year and 5.0 gallons per cycle (5.5 gallons per cycle 
        for dishwashers designed for greater than 12 place settings),
            ``(D) $50 in the case of a dishwasher which is manufactured 
        in calendar year 2011 and which uses no more than 295 kilowatt 
        hours per year and 4.25 gallons per cycle (4.75 gallons per 
        cycle for dishwashers designed for greater than 12 place 
        settings), and
            ``(E) $75 in the case of a dishwasher which is manufactured 
        in calendar year 2011 and which uses no more than 280 kilowatt 
        hours per year and 4 gallons per cycle (4.5 gallons per cycle 
        for dishwashers designed for greater than 12 place 
        settings).''.
    (b) Clothes Washers.--Paragraph (2) of section 45M(b) is amended by 
striking ``and'' at the end of subparagraph (C), by striking the period 
at the end of subparagraph (D) and inserting a comma, and by adding at 
the end the following new subparagraphs:
            ``(E) $175 in the case of a top-loading clothes washer 
        manufactured in calendar year 2011 which meets or exceeds a 2.2 
        modified energy factor and does not exceed a 4.5 water 
        consumption factor, and
            ``(F) $225 in the case of a clothes washer manufactured in 
        calendar year 2011--
                ``(i) which is a top-loading clothes washer and which 
            meets or exceeds a 2.4 modified energy factor and does not 
            exceed a 4.2 water consumption factor, or
                ``(ii) which is a front-loading clothes washer and 
            which meets or exceeds a 2.8 modified energy factor and 
            does not exceed a 3.5 water consumption factor.''.
    (c) Refrigerators.--Paragraph (3) of section 45M(b) is amended by 
striking ``and'' at the end of subparagraph (C), by striking the period 
at the end of subparagraph (D) and inserting a comma, and by adding at 
the end the following new subparagraphs:
            ``(E) $150 in the case of a refrigerator manufactured in 
        calendar year 2011 which consumes at least 30 percent less 
        energy than the 2001 energy conservation standards, and
            ``(F) $200 in the case of a refrigerator manufactured in 
        calendar year 2011 which consumes at least 35 percent less 
        energy than the 2001 energy conservation standards.''.
    (d) Rebasing of Limitations.--
        (1) In general.--Paragraph (1) of section 45M(e) is amended--
            (A) by striking ``$75,000,000'' and inserting 
        ``$25,000,000'', and
            (B) by striking ``December 31, 2007'' and inserting 
        ``December 31, 2010''.
        (2) Exception for certain refrigerators and clothes washers.--
    Paragraph (2) of section 45M(e) is amended--
            (A) by striking ``subsection (b)(3)(D)'' and inserting 
        ``subsection (b)(3)(F)'', and
            (B) by striking ``subsection (b)(2)(D)'' and inserting 
        ``subsection (b)(2)(F)''.
        (3) Gross receipts limitation.--Paragraph (3) of section 45M(e) 
    is amended by striking ``2 percent'' and inserting ``4 percent''.
    (e) Effective Dates.--
        (1) In general.--The amendments made by subsections (a), (b), 
    and (c) shall apply to appliances produced after December 31, 2010.
        (2) Limitations.--The amendments made by subsection (d) shall 
    apply to taxable years beginning after December 31, 2010.
    SEC. 710. CREDIT FOR NONBUSINESS ENERGY PROPERTY.
    (a) Extension.--Section 25C(g)(2) is amended by striking ``2010'' 
and inserting ``2011''.
    (b) Return to Pre-ARRA Limitations and Standards.--
        (1) In general.--Subsections (a) and (b) of section 25C are 
    amended to read as follows:
    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of--
        ``(1) 10 percent of the amount paid or incurred by the taxpayer 
    for qualified energy efficiency improvements installed during such 
    taxable year, and
        ``(2) the amount of the residential energy property 
    expenditures paid or incurred by the taxpayer during such taxable 
    year.
    ``(b) Limitations.--
        ``(1) Lifetime limitation.--The credit allowed under this 
    section with respect to any taxpayer for any taxable year shall not 
    exceed the excess (if any) of $500 over the aggregate credits 
    allowed under this section with respect to such taxpayer for all 
    prior taxable years ending after December 31, 2005.
        ``(2) Windows.--In the case of amounts paid or incurred for 
    components described in subsection (c)(2)(B) by any taxpayer for 
    any taxable year, the credit allowed under this section with 
    respect to such amounts for such year shall not exceed the excess 
    (if any) of $200 over the aggregate credits allowed under this 
    section with respect to such amounts for all prior taxable years 
    ending after December 31, 2005.
        ``(3) Limitation on residential energy property expenditures.--
    The amount of the credit allowed under this section by reason of 
    subsection (a)(2) shall not exceed--
            ``(A) $50 for any advanced main air circulating fan,
            ``(B) $150 for any qualified natural gas, propane, or oil 
        furnace or hot water boiler, and
            ``(C) $300 for any item of energy-efficient building 
        property.''.
        (2) Modification of standards.--
            (A) In general.--Paragraph (1) of section 25C(c) is amended 
        by striking ``2000'' and all that follows through ``this 
        section'' and inserting ``2009 International Energy 
        Conservation Code, as such Code (including supplements) is in 
        effect on the date of the enactment of the American Recovery 
        and Reinvestment Tax Act of 2009''.
            (B) Wood stoves.--Subparagraph (E) of section 25C(d)(3) is 
        amended by striking ``, as measured using a lower heating 
        value''.
            (C)  Oil furnaces and hot water boilers.--
                (i) In general.--Paragraph (4) of section 25C(d) is 
            amended to read as follows:
        ``(4) Qualified natural gas, propane, or oil furnace or hot 
    water boiler.--The term `qualified natural gas, propane, or oil 
    furnace or hot water boiler' means a natural gas, propane, or oil 
    furnace or hot water boiler which achieves an annual fuel 
    utilization efficiency rate of not less than 95.''.
                (ii) Conforming amendment.--Clause (ii) of section 
            25C(d)(2)(A) is amended to read as follows:
                ``(ii) a qualified natural gas, propane, or oil furnace 
            or hot water boiler, or''.
            (D) Exterior windows, doors, and skylights.--
                (i) In general.--Subsection (c) of section 25C is 
            amended by striking paragraph (4).
                (ii) Application of energy star standards.--Paragraph 
            (1) of section 25C(c) is amended by inserting ``an exterior 
            window, a skylight, an exterior door,'' after ``in the case 
            of'' in the matter preceding subparagraph (A).
            (E) Insulation.--Subparagraph (A) of section 25C(c)(2) is 
        amended by striking ``and meets the prescriptive criteria for 
        such material or system established by the 2009 International 
        Energy Conservation Code, as such Code (including supplements) 
        is in effect on the date of the enactment of the American 
        Recovery and Reinvestment Tax Act of 2009''.
        (3) Subsidized energy financing.--Subsection (e) of section 25C 
    is amended by adding at the end the following new paragraph:
        ``(3) Property financed by subsidized energy financing.--For 
    purposes of determining the amount of expenditures made by any 
    individual with respect to any property, there shall not be taken 
    into account expenditures which are made from subsidized energy 
    financing (as defined in section 48(a)(4)(C)).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2010.
    SEC. 711. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.
    (a) Extension of Credit.--Paragraph (2) of section 30C(g) is 
amended by striking ``December 31, 2010'' and inserting ``December 31, 
2011.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2010.

                   Subtitle B--Individual Tax Relief

    SEC. 721. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND 
      SECONDARY SCHOOL TEACHERS.
    (a) In General.--Subparagraph (D) of section 62(a)(2) is amended by 
striking ``or 2009'' and inserting ``2009, 2010, or 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
    SEC. 722. DEDUCTION OF STATE AND LOCAL SALES TAXES.
    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
    SEC. 723. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR 
      CONSERVATION PURPOSES.
    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--
Clause (iii) of section 170(b)(2)(B) is amended by striking ``December 
31, 2009'' and inserting ``December 31, 2011''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made in taxable years beginning after December 
31, 2009.
    SEC. 724. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND 
      RELATED EXPENSES.
    (a) In General.--Subsection (e) of section 222 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
    SEC. 725. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS 
      FOR CHARITABLE PURPOSES.
    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date; Special Rule.--
        (1) Effective date.--The amendment made by this section shall 
    apply to distributions made in taxable years beginning after 
    December 31, 2009.
        (2) Special rule.--For purposes of subsections (a)(6), (b)(3), 
    and (d)(8) of section 408 of the Internal Revenue Code of 1986, at 
    the election of the taxpayer (at such time and in such manner as 
    prescribed by the Secretary of the Treasury) any qualified 
    charitable distribution made after December 31, 2010, and before 
    February 1, 2011, shall be deemed to have been made on December 31, 
    2010.
    SEC. 726. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY STOCK 
      IN DETERMINING GROSS ESTATE OF NONRESIDENTS.
    (a) In General.--Paragraph (3) of section 2105(d) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to estates of decedents dying after December 31, 2009.
    SEC. 727. PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-PROVIDED 
      MASS TRANSIT AND PARKING BENEFITS.
    (a) In General.--Paragraph (2) of section 132(f) is amended by 
striking ``January 1, 2011'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months after December 31, 2010.
    SEC. 728. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
      PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.
    (a) In General.--Subchapter A of chapter 65 is amended by adding at 
the end the following new section:
``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.
    ``(a) In General.--Notwithstanding any other provision of law, any 
refund (or advance payment with respect to a refundable credit) made to 
any individual under this title shall not be taken into account as 
income, and shall not be taken into account as resources for a period 
of 12 months from receipt, for purposes of determining the eligibility 
of such individual (or any other individual) for benefits or assistance 
(or the amount or extent of benefits or assistance) under any Federal 
program or under any State or local program financed in whole or in 
part with Federal funds.
    ``(b) Termination.--Subsection (a) shall not apply to any amount 
received after December 31, 2012.''.
    (b) Clerical Amendment.--The table of sections for such subchapter 
is amended by adding at the end the following new item:

``Sec. 6409. Refunds disregarded in the administration of Federal 
          programs and federally assisted programs.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received after December 31, 2009.

                    Subtitle C--Business Tax Relief

    SEC. 731. RESEARCH CREDIT.
    (a) In General.--Subparagraph (B) of section 41(h)(1) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is 
amended by striking ``December 31, 2009'' and inserting ``December 31, 
2011''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2009.
    SEC. 732. INDIAN EMPLOYMENT TAX CREDIT.
    (a) In General.--Subsection (f) of section 45A is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
    SEC. 733. NEW MARKETS TAX CREDIT.
    (a) In General.--Paragraph (1) of section 45D(f) is amended--
        (1) by striking ``and'' at the end of subparagraph (E),
        (2) by striking the period at the end of subparagraph (F), and
        (3) by adding at the end the following new subparagraph:
            ``(G) $3,500,000,000 for 2010 and 2011.''.
    (b) Conforming Amendment.--Paragraph (3) of section 45D(f) is 
amended by striking ``2014'' and inserting ``2016''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after 2009.
    SEC. 734. RAILROAD TRACK MAINTENANCE CREDIT.
    (a) In General.--Subsection (f) of section 45G is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred in taxable years beginning after 
December 31, 2009.
    SEC. 735. MINE RESCUE TEAM TRAINING CREDIT.
    (a) In General.--Subsection (e) of section 45N is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
    SEC. 736. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY 
      MEMBERS OF THE UNIFORMED SERVICES.
    (a) In General.--Subsection (f) of section 45P is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made after December 31, 2009.
    SEC. 737. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
      LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS AND 
      IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS.
    (a) In General.--Clauses (iv), (v), and (ix) of section 
168(e)(3)(E) are each amended by striking ``January 1, 2010'' and 
inserting ``January 1, 2012''.
    (b) Conforming Amendments.--
        (1) Clause (i) of section 168(e)(7)(A) is amended by striking 
    ``if such building is placed in service after December 31, 2008, 
    and before January 1, 2010,''.
        (2) Paragraph (8) of section 168(e) is amended by striking 
    subparagraph (E).
        (3) Section 179(f)(2) is amended--
            (A) by striking ``(without regard to the dates specified in 
        subparagraph (A)(i) thereof)'' in subparagraph (B), and
            (B) by striking ``(without regard to subparagraph (E) 
        thereof)'' in subparagraph (C).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009.
    SEC. 738. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT 
      COMPLEXES.
    (a) In General.--Subparagraph (D) of section 168(i)(15) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.
    SEC. 739. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON AN 
      INDIAN RESERVATION.
    (a) In General.--Paragraph (8) of section 168(j) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.
    SEC. 740. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD 
      INVENTORY.
    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2009.
    SEC. 741. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK 
      INVENTORIES TO PUBLIC SCHOOLS.
    (a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after December 31, 2009.
    SEC. 742. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE CONTRIBUTIONS 
      OF COMPUTER INVENTORY FOR EDUCATIONAL PURPOSES.
    (a) In General.--Subparagraph (G) of section 170(e)(6) is amended 
by striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2009.
    SEC. 743. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.
    (a) In General.--Subsection (g) of section 179E is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.
    SEC. 744. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION 
      PRODUCTIONS.
    (a) In General.--Subsection (f) of section 181 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to productions commencing after December 31, 2009.
    SEC. 745. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.
    (a) In General.--Subsection (h) of section 198 is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenditures paid or incurred after December 31, 2009.
    SEC. 746. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE 
      TO DOMESTIC PRODUCTION ACTIVITIES IN PUERTO RICO.
    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
        (1) by striking ``first 4 taxable years'' and inserting ``first 
    6 taxable years''; and
        (2) by striking ``January 1, 2010'' and inserting ``January 1, 
    2012''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
    SEC. 747. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO 
      CONTROLLING EXEMPT ORGANIZATIONS.
    (a) In General.--Clause (iv) of section 512(b)(13)(E) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments received or accrued after December 31, 2009.
    SEC. 748. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT 
      COMPANIES.
    (a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are 
each amended by striking ``December 31, 2009'' and inserting ``December 
31, 2011''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
    SEC. 749. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER FIRPTA.
    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--
        (1) In general.--The amendment made by subsection (a) shall 
    take effect on January 1, 2010. Notwithstanding the preceding 
    sentence, such amendment shall not apply with respect to the 
    withholding requirement under section 1445 of the Internal Revenue 
    Code of 1986 for any payment made before the date of the enactment 
    of this Act.
        (2) Amounts withheld on or before date of enactment.--In the 
    case of a regulated investment company--
            (A) which makes a distribution after December 31, 2009, and 
        before the date of the enactment of this Act; and
            (B) which would (but for the second sentence of paragraph 
        (1)) have been required to withhold with respect to such 
        distribution under section 1445 of such Code,
    such investment company shall not be liable to any person to whom 
    such distribution was made for any amount so withheld and paid over 
    to the Secretary of the Treasury.
    SEC. 750. EXCEPTIONS FOR ACTIVE FINANCING INCOME.
    (a) In General.--Sections 953(e)(10) and 954(h)(9) are each amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Conforming Amendment.--Section 953(e)(10) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after December 
31, 2009, and to taxable years of United States shareholders with or 
within which any such taxable year of such foreign corporation ends.
    SEC. 751. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED 
      CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN PERSONAL HOLDING 
      COMPANY RULES.
    (a) In General.--Subparagraph (C) of section 954(c)(6) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years of foreign corporations beginning after December 31, 
2009, and to taxable years of United States shareholders with or within 
which any such taxable year of such foreign corporation ends.
    SEC. 752. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING CHARITABLE 
      CONTRIBUTIONS OF PROPERTY.
    (a) In General.--Paragraph (2) of section 1367(a) is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2009.
    SEC. 753. EMPOWERMENT ZONE TAX INCENTIVES.
    (a) In General.--Section 1391 is amended--
        (1) by striking ``December 31, 2009'' in subsection 
    (d)(1)(A)(i) and inserting ``December 31, 2011''; and
        (2) by striking the last sentence of subsection (h)(2).
    (b) Increased Exclusion of Gain on Stock of Empowerment Zone 
Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
        (1) by striking ``December 31, 2014'' and inserting ``December 
    31, 2016''; and
        (2) by striking ``2014'' in the heading and inserting ``2016''.
    (c) Treatment of Certain Termination Dates Specified in 
Nominations.--In the case of a designation of an empowerment zone the 
nomination for which included a termination date which is 
contemporaneous with the date specified in subparagraph (A)(i) of 
section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect 
before the enactment of this Act), subparagraph (B) of such section 
shall not apply with respect to such designation if, after the date of 
the enactment of this section, the entity which made such nomination 
amends the nomination to provide for a new termination date in such 
manner as the Secretary of the Treasury (or the Secretary's designee) 
may provide.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2009.
    SEC. 754. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF 
      COLUMBIA.
    (a) In General.--Subsection (f) of section 1400 is amended by 
striking ``December 31, 2009'' each place it appears and inserting 
``December 31, 2011''.
    (b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) of 
section 1400A is amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2011''.
    (c) Zero-percent Capital Gains Rate.--
        (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), (4)(A)(i), 
    and (4)(B)(i)(I) of section 1400B(b) are each amended by striking 
    ``January 1, 2010'' and inserting ``January 1, 2012''.
        (2) Limitation on period of gains.--
            (A) In general.--Paragraph (2) of section 1400B(e) is 
        amended--
                (i) by striking ``December 31, 2014'' and inserting 
            ``December 31, 2016''; and
                (ii) by striking ``2014'' in the heading and inserting 
            ``2016''.
            (B) Partnerships and s-corps.--Paragraph (2) of section 
        1400B(g) is amended by striking ``December 31, 2014'' and 
        inserting ``December 31, 2016''.
    (d) First-time Homebuyer Credit.--Subsection (i) of section 1400C 
is amended by striking ``January 1, 2010'' and inserting ``January 1, 
2012''.
    (e) Effective Dates.--
        (1) In general.--Except as otherwise provided in this 
    subsection, the amendments made by this section shall apply to 
    periods after December 31, 2009.
        (2) Tax-exempt dc empowerment zone bonds.--The amendment made 
    by subsection (b) shall apply to bonds issued after December 31, 
    2009.
        (3) Acquisition dates for zero-percent capital gains rate.--The 
    amendments made by subsection (c) shall apply to property acquired 
    or substantially improved after December 31, 2009.
        (4) Homebuyer credit.--The amendment made by subsection (d) 
    shall apply to homes purchased after December 31, 2009.
    SEC. 755. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE 
      TAXES TO PUERTO RICO AND THE VIRGIN ISLANDS.
    (a) In General.--Paragraph (1) of section 7652(f) is amended by 
striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distilled spirits brought into the United States after December 31, 
2009.
    SEC. 756. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.
    (a) In General.--Subsection (d) of section 119 of division A of the 
Tax Relief and Health Care Act of 2006 is amended--
        (1) by striking ``first 4 taxable years'' and inserting ``first 
    6 taxable years'', and
        (2) by striking ``January 1, 2010'' and inserting ``January 1, 
    2012''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
    SEC. 757. WORK OPPORTUNITY CREDIT.
    (a) In General.--Subparagraph (B) of section 51(c)(4) is amended by 
striking ``August 31, 2011'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals who begin work for the employer after the date of the 
enactment of this Act.
    SEC. 758. QUALIFIED ZONE ACADEMY BONDS.
    (a) In General.--Section 54E(c)(1) is amended--
        (1) by striking ``2008 and'' and inserting ``2008,'', and
        (2) by inserting ``and $400,000,000 for 2011'' after ``2010,''.
    (b) Repeal of Refundable Credit for QZABs.--Paragraph (3) of 
section 6431(f) is amended by inserting ``determined without regard to 
any allocation relating to the national zone academy bond limitation 
for 2011 or any carryforward of such allocation'' after ``54E)'' in 
subparagraph (A)(iii).
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2010.
    SEC. 759. MORTGAGE INSURANCE PREMIUMS.
    (a) In General.--Clause (iv) of section 163(h)(3)(E) is amended by 
striking ``December 31, 2010'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or accrued after December 31, 2010.
    SEC. 760. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN 
      SMALL BUSINESS STOCK.
    (a) In General.--Paragraph (4) of section 1202(a) is amended--
        (1) by striking ``January 1, 2011'' and inserting ``January 1, 
    2012'', and
        (2) by inserting ``and 2011'' after ``2010'' in the heading 
    thereof.
    (b) Effective Date.--The amendments made by this section shall 
apply to stock acquired after December 31, 2010.

            Subtitle D--Temporary Disaster Relief Provisions

                                  PART

                    Subpart A--New York Liberty Zone

    SEC. 761. TAX-EXEMPT BOND FINANCING.
    (a) In General.--Subparagraph (D) of section 1400L(d)(2) is amended 
by striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after December 31, 2009.

                           Subpart B--GO Zone

    SEC. 762. INCREASE IN REHABILITATION CREDIT.
    (a) In General.--Subsection (h) of section 1400N is amended by 
striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after December 31, 2009.
    SEC. 763. LOW-INCOME HOUSING CREDIT RULES FOR BUILDINGS IN GO 
      ZONES.
    Section 1400N(c)(5) is amended by striking ``January 1, 2011'' and 
inserting ``January 1, 2012''.
    SEC. 764. TAX-EXEMPT BOND FINANCING.
    (a) In General.--Paragraphs (2)(D) and (7)(C) of section 1400N(a) 
are each amended by striking ``January 1, 2011'' and inserting 
``January 1, 2012''.
    (b) Conforming Amendments.--Sections 702(d)(1) and 704(a) of the 
Heartland Disaster Tax Relief Act of 2008 are each amended by striking 
``January 1, 2011'' each place it appears and inserting ``January 1, 
2012''.
    SEC. 765. BONUS DEPRECIATION DEDUCTION APPLICABLE TO THE GO ZONE.
    (a) In General.--Paragraph (6) of section 1400N(d) is amended--
        (1) by striking ``December 31, 2010'' both places it appears in 
    subparagraph (B) and inserting ``December 31, 2011'', and
        (2) by striking ``January 1, 2010'' in the heading and the text 
    of subparagraph (D) and inserting ``January 1, 2012''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2009.

                    TITLE VIII--BUDGETARY PROVISIONS

    SEC. 801. DETERMINATION OF BUDGETARY EFFECTS.
    The budgetary effects of this Act, for the purpose 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 Chairmen 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 amendment between the Houses.
    SEC. 802. EMERGENCY DESIGNATIONS.
    (a) Statutory Paygo.--This Act is designated as an emergency 
requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act 
of 2010 (Public Law 111-139; 2 U.S.C. 933(g)) except to the extent that 
the budgetary effects of this Act are determined to be subject to the 
current policy adjustments under sections 4(c) and 7 of the Statutory 
Pay-As-You-Go Act.
    (b) Senate.--In the Senate, this Act is designated as an emergency 
requirement pursuant to section 403(a) of S. Con. Res. 13 (111th 
Congress), the concurrent resolution on the budget for fiscal year 
2010.
    (c) House of Representatives.--In the House of Representatives, 
every provision of this Act is expressly designated as an emergency for 
purposes of pay-as-you-go principles except to the extent that any such 
provision is subject to the current policy adjustments under section 
4(c) of the Statutory Pay-As-You-Go Act of 2010.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.