[Congressional Record Volume 148, Number 24 (Thursday, March 7, 2002)]
[House]
[Pages H742-H767]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ECONOMIC SECURITY AND RECOVERY ACT OF 2001
Ms. PRYCE of Ohio. Madam Speaker, by direction of the Committee on
Rules, I call up House Resolution 360 and ask for its immediate
consideration.
The Clerk read the resolution, as follows:
H. Res. 360
Resolved, That upon adoption of this resolution it shall be
in order to take from the Speaker's table the bill (H.R.
3090) to provide tax incentives for economic recovery, with
the Senate amendment thereto, and to consider in the House,
without intervention of any point of order, a motion offered
by the chairman of the Committee on Ways and Means or his
designee that the House concur in the Senate amendment with
the amendment printed in the report of the Committee on Rules
accompanying this resolution. The Senate amendment and the
motion shall be considered as read. The motion shall be
debatable for one hour equally divided and controlled by the
chairman and ranking minority member of the Committee on Ways
and Means. The previous question shall be considered as
ordered on the motion to final adoption without intervening
motion.
The SPEAKER pro tempore (Mrs. Emerson). The gentlewoman from Ohio
(Ms. Pryce) is recognized for 1 hour.
Ms. PRYCE of Ohio. Madam Speaker, for the purpose of debate only, I
yield the customary 30 minutes to the gentleman from Florida (Mr.
Hastings) pending which I yield myself such time as I may consume.
During consideration of this resolution, all time yielded is for the
purpose of debate only.
Madam Speaker, House Resolution 360 provides for a single motion
offered by the chairman of the Committee on Ways and Means, or his
designee, that the House concur in the Senate amendment with the
amendment printed in the report of the Committee on Rules accompanying
the resolution. This resolution waives all points of order against
consideration of the motion to concur in the Senate amendment with an
amendment. It provides an hour of debate in the House equally divided
and controlled by the chairman and ranking minority member of the
Committee on Ways and Means. Finally, the resolution provides that the
previous question shall be considered as ordered on the motion to final
adoption without intervening motion.
Madam Speaker, this is this body's fourth attempt to find the middle
ground. This is the House's fourth attempt to address the needs of
unemployed Americans and to provide a needed boost to our economy. This
House is putting forth a solution in order to build a consensus.
The amendment made in order under this resolution includes special
depreciation allowances for certain property and a 5-year carryback of
net operating losses. If we help businesses, we help create much needed
jobs. It provides an additional 13 weeks of temporary extended
unemployment benefits for those who have exhausted their regular
benefits. It includes the liberty zone tax benefits for reconstruction
of New York City. Finally, it extends a number of expiring, yet very
important, provisions such as tax credits for electric vehicles, the
welfare-to-work tax credit, the Archer medical savings accounts, tax
credits for production of alternative energy sources, work opportunity
tax credits, temporary assistance to needy families, or TANF, and that
is to name just a few.
[[Page H743]]
Madam Speaker, while the economy is currently showing strong signs of
recovery, many workers still face the harsh realities of unemployment.
The economic downturn that began at the end of the year 2000 and that
was exacerbated by the tragic events of September 11 left many
Americans unexpectedly out of work.
{time} 1030
We need to make sure this economy moves in the right direction and
that these folks get the help that they need.
By adopting this motion, we will give crucial assistance to Americans
who, through no fault of their own, were separated from their
occupations, and will ensure that these Americans can care for their
loved ones, keep their homes, and feed their children. I urge Members
not to turn their backs on American workers, because it is their
entrepreneurship, their risk-taking, and their strong work ethic that
are driving the forces behind the greatest economy in all the world.
Accordingly, I urge my colleagues to support this rule and the motion
to be offered by the gentleman from California (Mr. Thomas). It is our
hope that the other body will accept this initiative so that we can
quickly move this important legislation to the President's desk for his
signature.
We need to get unemployed Americans the help they need and deserve,
not only in the form of extended benefits; but also it is essential
that we get them jobs.
Madam Speaker, I reserve the balance of my time.
Mr. HASTINGS of Florida. Madam Speaker, I yield myself such time as I
may consume.
(Mr. HASTINGS of Florida asked and was given permission to revise and
extend his remarks.)
Mr. HASTINGS of Florida. First, Madam Speaker, let me thank the
gentlewoman from Ohio (Ms. Pryce), my colleague and friend, for
yielding me this time.
Madam Speaker, I do not plan to take much time this morning. This
House well knows the views of many of us, and I certainly have
expressed my views on the topic of economic recovery, job growth
stimulation, and tax cuts and credits.
The amendment which we focus on this morning is fairly narrow and
straightforward. It extends unemployment benefits for 13 weeks for
those workers whose benefits are set to expire within the next several
weeks. This amendment also includes a number of incentives for
reconstruction efforts centered around Ground Zero in New York City and
extends the Temporary Assistance to Needy Families supplemental grants
program.
Frankly, I feel proud that we can get this assistance to these
workers, and my colleagues on the other side are to be complimented in
that regard, and to those who are doing all they can to assist in the
revitalization of New York City.
Candidly, Madam Speaker, I am less proud, however, of what this
Congress still has not done for the rest of the country and all those
who have been impacted as a result of the events of September 11. I
note again, as I did yesterday in the Committee on Rules, and as I have
done a multiplicity of times since not long after September 11, this
Congress has not done nearly enough to help those whose economic
livelihood has been severely devastated since the terrorist attacks of
6 months ago.
On September 24, barely 2 weeks after the attacks, the gentlewoman
from Pennsylvania (Ms. Hart) and I introduced a comprehensive measure
to help this country's workers. Our bill, H.R. 2946, would not only
extend unemployment benefits, it would also increase job training
opportunities and extend health care and insurance benefits to those
who desperately need it.
Now, 5 months and nearly 160 bipartisan cosponsors later, the House
has still not acted on the Hart-Hastings bill. We are doing a little
this morning. But let me say this with the certainty of a clarion: we
have not done enough.
I will continue to say we have not done enough until we do. I will
continue to ask the chairman of the Committee on Ways and Means, and I
will continue to ask the chairman of the Committee on Education and the
Workforce and I will continue to ask the chairman of the Committee on
Commerce to move the Hastings-Hart bill through their respective
committees with alacrity and bring it to the House floor at once.
Madam Speaker, near the end of this debate, I will call on my
colleagues to defeat the previous question. If the previous question is
defeated, I will offer an amendment to the rule that would allow the
House to vote on an amendment to provide States with a temporary
increase in their Medicaid matching rate because of the increased
number of people who are unemployed and, therefore, do not have health
insurance. As I noted a moment ago, millions of American jobs have been
lost since September 11. Far too often, with that job loss, comes the
loss of health insurance.
When people get sick, they still need care, whether they can pay for
it or not. The cost of this care often falls on the State through its
Medicaid program. Our amendment would greatly ease the increased
financial burden that many States and certainly my State of Florida now
faces.
Madam Speaker, I urge a ``no'' vote on the previous question; and if
the previous question is defeated, as I indicated, I will offer an
amendment to the rule that will allow the House to vote on an amendment
to provide States with a temporary increase in their Medicaid matching
rate. As I said a few minutes ago, it has been nearly 6 months since
the events of September 11.
Our economy, which is already in an economic downturn, has worsened
considerably. The cost of this care often falls on States through its
Medicaid program. This amendment will greatly ease the increased
financial burden that many States now face.
Madam Speaker, I urge a ``no'' vote on the previous question and a
vote instead to support an amendment that will help States to offset
the cost of increased health costs due to the high levels of
unemployment.
Previous Question for H. Res. 360--Economic Security and Recovery Act
of 2001
Strike all after the resolving clause and insert:
That upon the adoption of this resolution it shall be in
order to take from the Speaker's table the bill (H.R. 3090)
to provide tax incentives for economic recovery, with the
Senate amendment thereto, and to consider in the House,
without intervention of any point of order, a motion offered
by the Chairman of the Committee on Ways and Means or his
designee that the House concur in the Senate amendment with
the amendment printed in the report of the Committee on Rules
accompanying this resolution. The Senate amendment and the
motion shall be considered as read. The motion shall be
debatable for one hour equally divided and controlled by the
Chairman and ranking minority member of the Committee on Ways
and Means. The previous question shall be considered as
ordered on the motion and on any amendment thereto to final
adoption without intervening motion except the amendment
specified in section 2 if offered by Representative Rangel of
New York or his designee, which shall be in order without
intervention of any point of order or demand for division of
the question, shall be considered as read, and shall be
separately debatable for one hour equally divided and
controlled by the proponent and an opponent.
Sec. 2. The amendment referred to in the first section of
this resolution is as follows:
At the appropriate place, insert the following:
SEC. . TEMPORARY INCREASES OF MEDICAID FMAP FOR FISCAL YEAR
2002.
(a) Permitting Maintenance of Fiscal Year 2001 FMAP.--
Nothwithstanding any other provision of law, but subject to
subsection (d), if the FMAP determined without regard to this
section for a State for fiscal year 2002 is less than the
FMAP as so determined for fiscal year 2001, the FMAP for the
State for fiscal year 2001 shall be substituted for the
State's FMAP for fiscal year 2002, before the application of
this section.
(b) General 1.50 Percentage Points Increase.--
Notwithstanding any other provision of law, but subject to
subsections (d) and (e), for each State for each calendar
quarter in fiscal year 2002, the FMAP (taking into account
the application of subsection (a)) shall be increased by 1.50
percentage points.
(c) Further Increase for States With High Unemployment
Rates.--
(1) In general.--Notwithstanding any other provision of
law, but subject to subsections (d) and (e), the FMAP for a
high unemployment State for a calendar quarter in fiscal year
2002 (and any subsequent calendar quarter in such fiscal year
regardless of whether the State continues to be a high
unemployment State for a calendar quarter in such fiscal
year) shall be increased (after the application of
subsections (a) and (b)) by 1.50 percentage points.
(2) High unemployment state.--For purposes of this
subsection, a State is a high unemployment State for a
calendar quarter if, for any 3 consecutive month period
beginning on or after June 2001 and ending with
[[Page H744]]
the second month before the beginning of the calendar
quarter, the State has an average seasonally adjusted
unemployment rate that exceeds the average weighted
unemployment rate during such period. Such unemployment rates
for such months shall be determined based on publications of
the Bureau of Labor Statistics of the Department of Labor.
(3) Average weighted unemployment rate defined.--For
purposes of paragraph (2), the average weighted unemployment
rate for a period is--
(A) the sum of the seasonally adjusted number of unemployed
civilians in each State and the District of Columbia for the
period, divided by
(B) the sum of the civilian labor force in each State and
the District of Columbia for the period.
(d) 1-Year Increase in Cap on Medicaid Payments to
Territories.--Notwithstanding any other provision of law,
with respect to fiscal year 2002, the amounts otherwise
determined for Puerto Rico, the Virgin Islands, Guam, the
Northern Mariana Islands, and American Samoa under section
1108 of the Social Security Act (42 U.S.C. 1308) shall each
be increased by an amount equal to 3.093 percentage points of
such amounts.
(e) Scope of Application.--The increases in the FMAP for a
State under this section shall apply only for purposes of
title XIX of the Social Security Act and shall not apply with
respect to--
(1) disproportionate share hospital payments described in
section 1923 of such Act (42 U.S.C. 1396r-4); and
(2) payments under titles IV and XXI of such Act (42 U.S.C.
601 et seq. and 1397aa et seq.).
Madam Speaker, I yield back the balance of my time.
Ms. PRYCE of Ohio. Madam Speaker, I yield myself such time as I may
consume to remind my colleagues that this body has done its job. It has
looked for consensus, and it has found a solution. This motion to help
unemployed workers as they look for jobs will give a boost to them and
also a small boost to the businesses that can help create those jobs. I
urge my colleagues to support this rule and the underlying motion so
that it can be sent finally to the President for his signature.
Madam Speaker, I urge a ``yes'' vote, I yield back the balance of my
time, and I move the previous question on the resolution.
The SPEAKER pro tempore (Mrs. Emerson). The question is on ordering
the previous question.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. HASTINGS of Florida. Madam Speaker, I object to the vote on the
ground that a quorum is not present and make the point of order that a
quorum is not present.
The SPEAKER pro tempore. Evidently a quorum is not present.
The Sergeant at Arms will notify absent Members.
Pursuant to clause 9 of rule XX, the Chair will reduce to 5 minutes
the minimum time for electronic voting, if ordered, on adoption of the
resolution.
The vote was taken by electronic device, and there were--yeas 217,
nays 192, not voting 25, as follows:
[Roll No. 51]
YEAS--217
Aderholt
Akin
Armey
Bachus
Baker
Ballenger
Barr
Bartlett
Bass
Bereuter
Biggert
Bilirakis
Blunt
Boehlert
Boehner
Bonilla
Bono
Boozman
Brady (TX)
Brown (SC)
Bryant
Burr
Burton
Buyer
Callahan
Camp
Cannon
Cantor
Capito
Castle
Chabot
Chambliss
Coble
Collins
Combest
Cooksey
Cox
Crane
Crenshaw
Cunningham
Davis, Jo Ann
Davis, Tom
Deal
DeLay
DeMint
Diaz-Balart
Dicks
Dooley
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Everett
Ferguson
Flake
Fletcher
Foley
Forbes
Fossella
Frelinghuysen
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goss
Graham
Granger
Graves
Green (WI)
Greenwood
Grucci
Gutknecht
Hall (TX)
Hansen
Hart
Hastings (WA)
Hayes
Hayworth
Hefley
Herger
Hilleary
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hulshof
Hunter
Hyde
Isakson
Issa
Istook
Jenkins
Johnson (CT)
Johnson, Sam
Jones (NC)
Keller
Kelly
Kennedy (MN)
Kerns
King (NY)
Kingston
Kirk
Knollenberg
Kolbe
LaHood
Latham
LaTourette
Leach
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas (OK)
Manzullo
McCrery
McHugh
McInnis
McKeon
Mica
Miller, Dan
Miller, Gary
Miller, Jeff
Moran (KS)
Myrick
Nethercutt
Ney
Northup
Norwood
Nussle
Osborne
Ose
Otter
Oxley
Paul
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Pombo
Portman
Pryce (OH)
Putnam
Quinn
Radanovich
Ramstad
Regula
Rehberg
Reynolds
Riley
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Roukema
Royce
Ryan (WI)
Ryun (KS)
Saxton
Schaffer
Schrock
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherwood
Shimkus
Shows
Shuster
Simpson
Skeen
Smith (MI)
Smith (NJ)
Smith (TX)
Souder
Stearns
Stump
Sullivan
Sununu
Sweeney
Tancredo
Tauzin
Taylor (NC)
Terry
Thomas
Thornberry
Thune
Tiahrt
Tiberi
Toomey
Upton
Vitter
Walden
Walsh
Wamp
Watkins (OK)
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Young (FL)
NAYS--192
Abercrombie
Allen
Andrews
Baca
Baird
Baldacci
Baldwin
Barcia
Barrett
Becerra
Berkley
Berman
Berry
Bishop
Blumenauer
Bonior
Borski
Boswell
Boucher
Boyd
Brady (PA)
Brown (OH)
Capps
Capuano
Cardin
Carson (IN)
Carson (OK)
Clay
Clayton
Clement
Clyburn
Conyers
Costello
Coyne
Cramer
Cummings
Davis (CA)
Davis (FL)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Dingell
Doggett
Doyle
Edwards
Engel
Eshoo
Etheridge
Evans
Farr
Fattah
Filner
Ford
Frank
Frost
Gephardt
Gonzalez
Gordon
Green (TX)
Gutierrez
Hall (OH)
Harman
Hastings (FL)
Hill
Hilliard
Hinchey
Hinojosa
Hoeffel
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jefferson
John
Johnson, E. B.
Jones (OH)
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick
Kind (WI)
Kleczka
Kucinich
LaFalce
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Lee
Levin
Lewis (GA)
Lipinski
Lowey
Lucas (KY)
Luther
Lynch
Maloney (CT)
Maloney (NY)
Markey
Mascara
Matheson
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Menendez
Millender-McDonald
Miller, George
Mink
Mollohan
Moore
Moran (VA)
Murtha
Nadler
Napolitano
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Phelps
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Rivers
Rodriguez
Roemer
Roybal-Allard
Rush
Sabo
Sanders
Sandlin
Sawyer
Schakowsky
Schiff
Scott
Serrano
Sherman
Skelton
Slaughter
Smith (WA)
Snyder
Spratt
Stark
Stenholm
Strickland
Stupak
Tanner
Tauscher
Taylor (MS)
Thompson (CA)
Thompson (MS)
Thurman
Tierney
Towns
Turner
Udall (CO)
Udall (NM)
Velazquez
Visclosky
Waters
Watson (CA)
Watt (NC)
Waxman
Weiner
Woolsey
Wu
Wynn
NOT VOTING--25
Ackerman
Barton
Bentsen
Blagojevich
Brown (FL)
Calvert
Condit
Crowley
Cubin
Culberson
Davis (IL)
Gallegly
Jackson-Lee (TX)
Johnson (IL)
Lofgren
Morella
Neal
Ross
Rothman
Sanchez
Simmons
Solis
Traficant
Wexler
Young (AK)
{time} 1102
Ms. VELAZQUEZ, Ms. ESHOO, Ms. HOOLEY of Oregon and Messrs. STUPAK,
BISHOP, and JOHN changed their vote from ``yea'' to ``nay''.
Mr. EVERETT and Mr. CASTLE changed their vote from ``nay'' to
``yea''.
So the previous question was ordered.
The result of the vote was announced as above recorded.
Stated against:
Ms. SOLIS. Mr. Speaker, during rollcall vote No. 51 on ordering the
previous question I was unavoidably detained. Had I been present, I
would have voted ``nay.''
The SPEAKER pro tempore (Mrs. Emerson). The question is on the
resolution.
The resolution was agreed to.
A motion to reconsider was laid on the table.
Mr. THOMAS. Madam Speaker, pursuant to House Resolution 360 I call up
from the Speaker's table the bill (H.R. 3090) to provide tax incentives
for economic recovery, with a Senate amendment thereto, and ask for its
immediate consideration in the House.
The Clerk read the title of the bill.
The text of the Senate amendment is as follows:
Senate amendment:
Strike out all after the enacting clause and insert:
[[Page H745]]
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Temporary
Extended Unemployment Compensation Act of 2002''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Federal-State agreements.
Sec. 3. Temporary extended unemployment compensation account.
Sec. 4. Payments to States having agreements under this Act.
Sec. 5. Financing provisions.
Sec. 6. Fraud and overpayments.
Sec. 7. Definitions.
Sec. 8. Applicability.
SEC. 2. FEDERAL-STATE AGREEMENTS.
(a) In General.--Any State which desires to do so may enter
into and participate in an agreement under this Act with the
Secretary of Labor (in this Act referred to as the
``Secretary''). Any State which is a party to an agreement
under this Act may, upon providing 30 days written notice to
the Secretary, terminate such agreement.
(b) Provisions of Agreement.--Any agreement under
subsection (a) shall provide that the State agency of the
State will make payments of temporary extended unemployment
compensation to individuals--
(1) who--
(A) first exhausted all rights to regular compensation
under the State law on or after the first day of the week
that includes September 11, 2001; or
(B) have their 26th week of regular compensation under the
State law end on or after the first day of the week that
includes September 11, 2001;
(2) who do not have any rights to regular compensation
under the State law of any other State; and
(3) who are not receiving compensation under the
unemployment compensation law of any other country.
(c) Coordination Rules.--
(1) Temporary extended unemployment compensation to serve
as second-tier benefits.--Notwithstanding any other provision
of law, neither regular compensation, extended compensation,
nor additional compensation under any Federal or State law
shall be payable to any individual for any week for which
temporary extended unemployment compensation is payable to
such individual.
(2) Treatment of other unemployment compensation.--After
the date on which a State enters into an agreement under this
Act, any regular compensation in excess of 26 weeks, any
extended compensation, and any additional compensation under
any Federal or State law shall be payable to an individual in
accordance with the State law after such individual has
exhausted any rights to temporary extended unemployment
compensation under the agreement.
(d) Exhaustion of Benefits.--For purposes of subsection
(b)(1)(A), an individual shall be deemed to have exhausted
such individual's rights to regular compensation under a
State law when--
(1) no payments of regular compensation can be made under
such law because the individual has received all regular
compensation available to the individual based on employment
or wages during the individual's base period; or
(2) the individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
(e) Weekly Benefit Amount, Terms and Conditions, Etc.
Relating to Temporary Extended Unemployment Compensation.--
For purposes of any agreement under this Act--
(1) the amount of temporary extended unemployment
compensation which shall be payable to an individual for any
week of total unemployment shall be equal to the amount of
regular compensation (including dependents' allowances)
payable to such individual under the State law for a week for
total unemployment during such individual's benefit year;
(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for temporary extended unemployment
compensation and the payment thereof, except where
inconsistent with the provisions of this Act or with the
regulations or operating instructions of the Secretary
promulgated to carry out this Act; and
(3) the maximum amount of temporary extended unemployment
compensation payable to any individual for whom a temporary
extended unemployment compensation account is established
under section 3 shall not exceed the amount established in
such account for such individual.
SEC. 3. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION ACCOUNT.
(a) In General.--Any agreement under this Act shall provide
that the State will establish, for each eligible individual
who files an application for temporary extended unemployment
compensation, a temporary extended unemployment compensation
account.
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be equal to 13 times the individual's
weekly benefit amount.
(2) Weekly benefit amount.--For purposes of paragraph
(1)(B), an individual's weekly benefit amount for any week is
an amount equal to the amount of regular compensation
(including dependents' allowances) under the State law
payable to the individual for such week for total
unemployment.
SEC. 4. PAYMENTS TO STATES HAVING AGREEMENTS UNDER THIS ACT.
(a) General Rule.--There shall be paid to each State that
has entered into an agreement under this Act an amount equal
to 100 percent of the temporary extended unemployment
compensation paid to individuals by the State pursuant to
such agreement.
(b) Determination of Amount.--Sums under subsection (a)
payable to any State by reason of such State having an
agreement under this Act shall be payable, either in advance
or by way of reimbursement (as may be determined by the
Secretary), in such amounts as the Secretary estimates the
State will be entitled to receive under this Act for each
calendar month, reduced or increased, as the case may be, by
any amount by which the Secretary finds that the Secretary's
estimates for any prior calendar month were greater or less
than the amounts which should have been paid to the State.
Such estimates may be made on the basis of such statistical,
sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
(c) Administrative Expenses.--There are appropriated out of
the employment security administration account (as
established by section 901(a) of the Social Security Act (42
U.S.C. 1101(a)) of the Unemployment Trust Fund, without
fiscal year limitation, such funds as may be necessary for
purposes of assisting States (as provided in title III of the
Social Security Act (42 U.S.C. 501 et seq.)) in meeting the
costs of administration of agreements under this Act.
SEC. 5. FINANCING PROVISIONS.
(a) In General.--Funds in the extended unemployment
compensation account (as established by section 905(a) of the
Social Security Act (42 U.S.C. 1105(a))), and the Federal
unemployment account (as established by section 904(g) of
such Act (42 U.S.C. 1104(g))), of the Unemployment Trust Fund
(as established by section 904(a) of such Act (42 U.S.C.
1104(a))) shall be used, in accordance with subsection (b),
for the making of payments (described in section 4(a)) to
States having agreements entered into under this Act.
(b) Certification.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums described in section 4(a) which are payable to
such State under this Act. The Secretary of the Treasury,
prior to audit or settlement by the General Accounting
Office, shall make payments to the State in accordance with
such certification by transfers from the extended
unemployment compensation account, as so established (or, to
the extent that there are insufficient funds in that account,
from the Federal unemployment account, as so established) to
the account of such State in the Unemployment Trust Fund (as
so established).
SEC. 6. FRAUD AND OVERPAYMENTS.
(a) In General.--If an individual knowingly has made, or
caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed,
or caused another to fail, to disclose a material fact, and
as a result of such false statement or representation or of
such nondisclosure such individual has received any temporary
extended unemployment compensation under this Act to which
such individual was not entitled, such individual--
(1) shall be ineligible for any further benefits under this
Act in accordance with the provisions of the applicable State
unemployment compensation law relating to fraud in connection
with a claim for unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have
received any temporary extended unemployment compensation
under this Act to which such individuals were not entitled,
the State shall require such individuals to repay those
benefits to the State agency, except that the State agency
may waive such repayment if it determines that--
(1) the payment of such benefits was without fault on the
part of any such individual; and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any
regular compensation or temporary extended unemployment
compensation payable to such individual under this Act or
from any unemployment compensation payable to such individual
under any Federal unemployment compensation law administered
by the State agency or under any other Federal law
administered by the State agency which provides for the
payment of any assistance or allowance with respect to any
week of unemployment, during the 3-year period after the date
such individuals received the payment of the temporary
extended unemployment compensation to which such individuals
were not entitled, except that no single deduction may exceed
50 percent of the weekly benefit amount from which such
deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
(d) Review.--Any determination by a State agency under this
section shall be subject to review in the same manner and to
the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.
SEC. 7. DEFINITIONS.
In this Act, the terms ``compensation'', ``regular
compensation'', ``extended compensation'', ``additional
compensation'', ``benefit year'', ``base period'', ``State'',
``State agency'', ``State law'', and ``week'' have the
respective meanings given such terms under section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note).
[[Page H746]]
SEC. 8. APPLICABILITY.
An agreement entered into under this Act shall apply to
weeks of unemployment--
(1) beginning after the date on which such agreement is
entered into; and
(2) ending before January 6, 2003.
motion offered by mr. thomas
Mr. THOMAS. Madam Speaker, I offer a motion.
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
Mr. Thomas moves that the House concur in the Senate
amendment with an amendment, as follows:
In the amendment of the Senate, strike the matter proposed
to be inserted by the Senate and insert the following:
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Job
Creation and Worker Assistance Act of 2002''.
(b) References to Internal Revenue Code of 1986.--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.--
Sec. 1. Short title; etc.
TITLE I--BUSINESS PROVISIONS
Sec. 101. Special depreciation allowance for certain property acquired
after September 10, 2001, and before September 11, 2004.
Sec. 102. Carryback of certain net operating losses allowed for 5
years; temporary suspension of 90 percent AMT limit.
TITLE II--UNEMPLOYMENT ASSISTANCE
Sec. 201. Short title.
Sec. 202. Federal-State agreements.
Sec. 203. Temporary extended unemployment compensation account.
Sec. 204. Payments to States having agreements for the payment of
temporary extended unemployment compensation.
Sec. 205. Financing provisions.
Sec. 206. Fraud and overpayments.
Sec. 207. Definitions.
Sec. 208. Applicability.
Sec. 209. Special Reed Act transfer in fiscal year 2002.
TITLE III--TAX INCENTIVES FOR NEW YORK CITY AND DISTRESSED AREAS
Sec. 301. Tax benefits for area of New York City damaged in terrorist
attacks on September 11, 2001.
TITLE IV--MISCELLANEOUS AND TECHNICAL PROVISIONS
Subtitle A--General Miscellaneous Provisions
Sec. 401. Allowance of electronic 1099's.
Sec. 402. Excluded cancellation of indebtedness income of S corporation
not to result in adjustment to basis of stock of
shareholders.
Sec. 403. Limitation on use of nonaccrual experience method of
accounting.
Sec. 404. Exclusion for foster care payments to apply to payments by
qualified placement agencies.
Sec. 405. Interest rate range for additional funding requirements.
Sec. 406. Adjusted gross income determined by taking into account
certain expenses of elementary and secondary school
teachers.
Subtitle B--Technical Corrections
Sec. 411. Amendments related to Economic Growth and Tax Relief
Reconciliation Act of 2001.
Sec. 412. Amendments related to Community Renewal Tax Relief Act of
2000.
Sec. 413. Amendments related to the Tax Relief Extension Act of 1999.
Sec. 414. Amendments related to the Taxpayer Relief Act of 1997.
Sec. 415. Amendment related to the Balanced Budget Act of 1997.
Sec. 416. Other technical corrections.
Sec. 417. Clerical amendments.
Sec. 418. Additional corrections.
TITLE V--SOCIAL SECURITY HELD HARMLESS; BUDGETARY TREATMENT OF ACT
Sec. 501. No impact on social security trust funds.
Sec. 502. Emergency designation.
TITLE VI--EXTENSIONS OF CERTAIN EXPIRING PROVISIONS
Sec. 601. Allowance of nonrefundable personal credits against regular
and minimum tax liability.
Sec. 602. Credit for qualified electric vehicles.
Sec. 603. Credit for electricity produced from certain renewable
resources.
Sec. 604. Work opportunity credit.
Sec. 605. Welfare-to-work credit.
Sec. 606. Deduction for clean-fuel vehicles and certain refueling
property.
Sec. 607. Taxable income limit on percentage depletion for oil and
natural gas produced from marginal properties.
Sec. 608. Qualified zone academy bonds.
Sec. 609. Cover over of tax on distilled spirits.
Sec. 610. Parity in the application of certain limits to mental health
benefits.
Sec. 611. Temporary special rules for taxation of life insurance
companies.
Sec. 612. Availability of medical savings accounts.
Sec. 613. Incentives for Indian employment and property on Indian
reservations.
Sec. 614. Subpart F exemption for active financing.
Sec. 615. Repeal of requirement for approved diesel or kerosene
terminals.
Sec. 616. Reauthorization of TANF supplemental grants for population
increases for fiscal year 2002.
Sec. 617. 1-year extension of contingency fund under the TANF program.
TITLE I--BUSINESS PROVISIONS
SEC. 101. SPECIAL DEPRECIATION ALLOWANCE FOR CERTAIN PROPERTY
ACQUIRED AFTER SEPTEMBER 10, 2001, AND BEFORE
SEPTEMBER 11, 2004.
(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following new subsection:
``(k) Special Allowance for Certain Property Acquired After
September 10, 2001, and Before September 11, 2004.--
``(1) Additional allowance.--In the case of any qualified
property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 30 percent of the
adjusted basis of the qualified property, and
``(B) the adjusted basis of the qualified property shall be
reduced by the amount of such deduction before computing the
amount otherwise allowable as a depreciation deduction under
this chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified property.--For purposes of this
subsection--
``(A) In general.--The term `qualified property' means
property--
``(i)(I) to which this section applies which has a recovery
period of 20 years or less,
``(II) which is computer software (as defined in section
167(f)(1)(B)) for which a deduction is allowable under
section 167(a) without regard to this subsection,
``(III) which is water utility property, or
``(IV) which is qualified leasehold improvement property,
``(ii) the original use of which commences with the
taxpayer after September 10, 2001,
``(iii) which is--
``(I) acquired by the taxpayer after September 10, 2001,
and before September 11, 2004, but only if no written binding
contract for the acquisition was in effect before September
11, 2001, or
``(II) acquired by the taxpayer pursuant to a written
binding contract which was entered into after September 10,
2001, and before September 11, 2004, and
``(iv) which is placed in service by the taxpayer before
January 1, 2005, or, in the case of property described in
subparagraph (B), before January 1, 2006.
``(B) Certain property having longer production periods
treated as qualified property.--
``(i) In general.--The term `qualified property' includes
property--
``(I) which meets the requirements of clauses (i), (ii),
and (iii) of subparagraph (A),
``(II) which has a recovery period of at least 10 years or
is transportation property, and
``(III) which is subject to section 263A by reason of
clause (ii) or (iii) of subsection (f)(1)(B) thereof.
``(ii) Only pre-september 11, 2004, basis eligible for
additional allowance.--In the case of property which is
qualified property solely by reason of clause (i), paragraph
(1) shall apply only to the extent of the adjusted basis
thereof attributable to manufacture, construction, or
production before September 11, 2004.
``(iii) Transportation property.--For purposes of this
subparagraph, the term `transportation property' means
tangible personal property used in the trade or business of
transporting persons or property.
``(C) Exceptions.--
``(i) Alternative depreciation property.--The term
`qualified property' shall not include any property to which
the alternative depreciation system under subsection (g)
applies, determined--
``(I) without regard to paragraph (7) of subsection (g)
(relating to election to have system apply), and
``(II) after application of section 280F(b) (relating to
listed property with limited business use).
``(ii) Qualified new york liberty zone leasehold
improvement property.--The term `qualified property' shall
not include any qualified New York Liberty Zone leasehold
improvement property (as defined in section 1400L(c)(2)).
``(iii) Election out.--If a taxpayer makes an election
under this clause with respect to any class of property for
any taxable year, this subsection shall not apply to all
property in such class placed in service during such taxable
year.
``(D) Special rules.--
``(i) Self-constructed property.--In the case of a taxpayer
manufacturing, constructing, or producing property for the
taxpayer's own use, the requirements of clause (iii) of
subparagraph (A) shall be treated as met if the taxpayer
begins manufacturing, constructing, or producing the property
after September 10, 2001, and before September 11, 2004.
[[Page H747]]
``(ii) Sale-leasebacks.--For purposes of subparagraph
(A)(ii), if property--
``(I) is originally placed in service after September 10,
2001, by a person, and
``(II) sold and leased back by such person within 3 months
after the date such property was originally placed in
service,
such property shall be treated as originally placed in
service not earlier than the date on which such property is
used under the leaseback referred to in subclause (II).
``(E) Coordination with section 280f.--For purposes of
section 280F--
``(i) Automobiles.--In the case of a passenger automobile
(as defined in section 280F(d)(5)) which is qualified
property, the Secretary shall increase the limitation under
section 280F(a)(1)(A)(i) by $4,600.
``(ii) Listed property.--The deduction allowable under
paragraph (1) shall be taken into account in computing any
recapture amount under section 280F(b)(2).
``(F) Deduction allowed in computing miniumum tax.--For
purposes of determining alternative minimum taxable income
under section 55, the deduction under subsection (a) for
qualified property shall be determined under this section
without regard to any adjustment under section 56.
``(3) Qualified leasehold improvement property.--For
purposes of this subsection--
``(A) In general.--The term `qualified leasehold
improvement property' means any improvement to an interior
portion of a building which is nonresidential real property
if--
``(i) such improvement is made under or pursuant to a lease
(as defined in subsection (h)(7))--
``(I) by the lessee (or any sublessee) of such portion, or
``(II) by the lessor of such portion,
``(ii) such portion is to be occupied exclusively by the
lessee (or any sublessee) of such portion, and
``(iii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefiting a common area,
and
``(iv) the internal structural framework of the building.
``(C) Definitions and special rules.--For purposes of this
paragraph--
``(i) Commitment to lease treated as lease.--A commitment
to enter into a lease shall be treated as a lease, and the
parties to such commitment shall be treated as lessor and
lessee, respectively.
``(ii) Related persons.--A lease between related persons
shall not be considered a lease. For purposes of the
preceding sentence, the term `related persons' means--
``(I) members of an affiliated group (as defined in section
1504), and
``(II) persons having a relationship described in
subsection (b) of section 267; except that, for purposes of
this clause, the phrase `80 percent or more' shall be
substituted for the phrase `more than 50 percent' each place
it appears in such subsection.''
(b) Effective Date.--The amendments made by this section
shall apply to property placed in service after September 10,
2001, in taxable years ending after such date.
SEC. 102. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED
FOR 5 YEARS; TEMPORARY SUSPENSION OF 90 PERCENT
AMT LIMIT.
(a) In General.--Paragraph (1) of section 172(b) (relating
to years to which loss may be carried) is amended by adding
at the end the following new subparagraph:
``(H) In the case of a taxpayer which has a net operating
loss for any taxable year ending during 2001 or 2002,
subparagraph (A)(i) shall be applied by substituting `5' for
`2' and subparagraph (F) shall not apply.''.
(b) Election To Disregard 5-Year Carryback.--Section 172
(relating to net operating loss deduction) is amended by
redesignating subsection (j) as subsection (k) and by
inserting after subjection (i) the following new subsection:
``(j) Election To Disregard 5-Year Carryback for Certain
Net Operating Losses.--Any taxpayer entitled to a 5-year
carryback under subsection (b)(1)(H) from any loss year may
elect to have the carryback period with respect to such loss
year determined without regard to subsection (b)(1)(H). Such
election shall be made in such manner as may be prescribed by
the Secretary and shall be made by the due date (including
extensions of time) for filing the taxpayer's return for the
taxable year of the net operating loss. Such election, once
made for any taxable year, shall be irrevocable for such
taxable year.''.
(c) Temporary Suspension of 90 Percent Limit on Certain NOL
Carryovers.--
(1) In general.--Subparagraph (A) of section 56(d)(1)
(relating to general rule defining alternative tax net
operating loss deduction) is amended to read as follows:
``(A) the amount of such deduction shall not exceed the sum
of--
``(i) the lesser of--
``(I) the amount of such deduction attributable to net
operating losses (other than the deduction attributable to
carryovers described in clause (ii)(I)), or
``(II) 90 percent of alternative minimum taxable income
determined without regard to such deduction, plus
``(ii) the lesser of--
``(I) the amount of such deduction attributable to the sum
of carrybacks of net operating losses for taxable years
ending during 2001 or 2002 and carryforwards of net operating
losses to taxable years ending during 2001 and 2002, or
``(II) alternative minimum taxable income determined
without regard to such deduction reduced by the amount
determined under clause (i), and''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years ending before January 1, 2003.
(d) Effective Date.--Except as provided in subsection (c),
the amendments made by this section shall apply to net
operating losses for taxable years ending after December 31,
2000.
TITLE II--UNEMPLOYMENT ASSISTANCE
SEC. 201. SHORT TITLE.
This title may be cited as the ``Temporary Extended
Unemployment Compensation Act of 2002''.
SEC. 202. FEDERAL-STATE AGREEMENTS.
(a) In General.--Any State which desires to do so may enter
into and participate in an agreement under this title with
the Secretary of Labor (in this title referred to as the
``Secretary''). Any State which is a party to an agreement
under this title may, upon providing 30 days' written notice
to the Secretary, terminate such agreement.
(b) Provisions of Agreement.--Any agreement under
subsection (a) shall provide that the State agency of the
State will make payments of temporary extended unemployment
compensation to individuals who--
(1) have exhausted all rights to regular compensation under
the State law or under Federal law with respect to a benefit
year (excluding any benefit year that ended before March 15,
2001);
(2) have no rights to regular compensation or extended
compensation with respect to a week under such law or any
other State unemployment compensation law or to compensation
under any other Federal law;
(3) are not receiving compensation with respect to such
week under the unemployment compensation law of Canada; and
(4) filed an initial claim for regular compensation on or
after March 15, 2001.
(c) Exhaustion of Benefits.--For purposes of subsection
(b)(1), an individual shall be deemed to have exhausted such
individual's rights to regular compensation under a State law
when--
(1) no payments of regular compensation can be made under
such law because such individual has received all regular
compensation available to such individual based on employment
or wages during such individual's base period; or
(2) such individual's rights to such compensation have been
terminated by reason of the expiration of the benefit year
with respect to which such rights existed.
(d) Weekly Benefit Amount, Etc.--For purposes of any
agreement under this title--
(1) the amount of temporary extended unemployment
compensation which shall be payable to any individual for any
week of total unemployment shall be equal to the amount of
the regular compensation (including dependents' allowances)
payable to such individual during such individual's benefit
year under the State law for a week of total unemployment;
(2) the terms and conditions of the State law which apply
to claims for regular compensation and to the payment thereof
shall apply to claims for temporary extended unemployment
compensation and the payment thereof, except--
(A) that an individual shall not be eligible for temporary
extended unemployment compensation under this title unless,
in the base period with respect to which the individual
exhausted all rights to regular compensation under the State
law, the individual had 20 weeks of full-time insured
employment or the equivalent in insured wages, as determined
under the provisions of the State law implementing section
202(a)(5) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note); and
(B) where otherwise inconsistent with the provisions of
this title or with the regulations or operating instructions
of the Secretary promulgated to carry out this title; and
(3) the maximum amount of temporary extended unemployment
compensation payable to any individual for whom a temporary
extended unemployment compensation account is established
under section 203 shall not exceed the amount established in
such account for such individual.
(e) Election by States.--Notwithstanding any other
provision of Federal law (and if State law permits), the
Governor of a State that is in an extended benefit period may
provide for the payment of temporary extended unemployment
compensation in lieu of extended compensation to individuals
who otherwise meet the requirements of this section. Such an
election shall not require a State to trigger off an extended
benefit period.
SEC. 203. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION
ACCOUNT.
(a) In General.--Any agreement under this title shall
provide that the State will establish, for each eligible
individual who files an application for temporary extended
unemployment compensation, a temporary extended unemployment
compensation account with respect to such individual's
benefit year.
[[Page H748]]
(b) Amount in Account.--
(1) In general.--The amount established in an account under
subsection (a) shall be 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 such law, or
(B) 13 times the individual's average weekly benefit amount
for the benefit year.
(2) Weekly benefit amount.--For purposes of this
subsection, an individual's weekly benefit amount for any
week is the amount of regular compensation (including
dependents' allowances) under the State law payable to such
individual for such week for total unemployment.
(c) Special Rule.--
(1) In general.--Notwithstanding any other provision of
this section, if, at the time that the individual's account
is exhausted, such individual's State is in an extended
benefit period (as determined under paragraph (2)), then,
such account shall be augmented by an amount equal to the
amount originally established in such account (as determined
under subsection (b)(1)).
(2) Extended benefit period.--For purposes of paragraph
(1), a State shall be considered to be in an extended benefit
period if, at the time of exhaustion (as described in
paragraph (1))--
(A) such a period is then in effect for such State under
the Federal-State Extended Unemployment Compensation Act of
1970; or
(B) such a period would then be in effect for such State
under such Act if section 203(d) of such Act were applied as
if it had been amended by striking ``5'' each place it
appears and inserting ``4''.
SEC. 204. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE
PAYMENT OF TEMPORARY EXTENDED UNEMPLOYMENT
COMPENSATION.
(a) General Rule.--There shall be paid to each State that
has entered into an agreement under this title an amount
equal to 100 percent of the temporary extended unemployment
compensation paid to individuals by the State pursuant to
such agreement.
(b) Treatment of Reimbursable Compensation.--No payment
shall be made to any State under this section in respect of
any compensation to the extent the State is entitled to
reimbursement in respect of such compensation under the
provisions of any Federal law other than this title or
chapter 85 of title 5, United States Code. A State shall not
be entitled to any reimbursement under such chapter 85 in
respect of any compensation to the extent the State is
entitled to reimbursement under this title in respect of such
compensation.
(c) Determination of Amount.--Sums payable to any State by
reason of such State having an agreement under this title
shall be payable, either in advance or by way of
reimbursement (as may be determined by the Secretary), in
such amounts as the Secretary estimates the State will be
entitled to receive under this title for each calendar month,
reduced or increased, as the case may be, by any amount by
which the Secretary finds that the Secretary's estimates for
any prior calendar month were greater or less than the
amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical,
sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
SEC. 205. FINANCING PROVISIONS.
(a) In General.--Funds in the extended unemployment
compensation account (as established by section 905(a) of the
Social Security Act (42 U.S.C. 1105(a)) of the Unemployment
Trust Fund (as established by section 904(a) of such Act (42
U.S.C. 1104(a)) shall be used for the making of payments to
States having agreements entered into under this title.
(b) Certification.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this title. The
Secretary of the Treasury, prior to audit or settlement by
the General Accounting Office, shall make payments to the
State in accordance with such certification, by transfers
from the extended unemployment compensation account (as so
established) to the account of such State in the Unemployment
Trust Fund (as so established).
(c) Assistance to States.--There are appropriated out of
the employment security administration account (as
established by section 901(a) of the Social Security Act (42
U.S.C. 1101(a)) of the Unemployment Trust Fund, without
fiscal year limitation, such funds as may be necessary for
purposes of assisting States (as provided in title III of the
Social Security Act (42 U.S.C. 501 et seq.)) in meeting the
costs of administration of agreements under this title.
(d) Appropriations for Certain Payments.--There are
appropriated from the general fund of the Treasury, without
fiscal year limitation, to the extended unemployment
compensation account (as so established) of the Unemployment
Trust Fund (as so established) such sums as the Secretary
estimates to be necessary to make the payments under this
section in respect of--
(1) compensation payable under chapter 85 of title 5,
United States Code; and
(2) compensation payable on the basis of services to which
section 3309(a)(1) of the Internal Revenue Code of 1986
applies.
Amounts appropriated pursuant to the preceding sentence shall
not be required to be repaid.
SEC. 206. FRAUD AND OVERPAYMENTS.
(a) In General.--If an individual knowingly has made, or
caused to be made by another, a false statement or
representation of a material fact, or knowingly has failed,
or caused another to fail, to disclose a material fact, and
as a result of such false statement or representation or of
such nondisclosure such individual has received an amount of
temporary extended unemployment compensation under this title
to which he was not entitled, such individual--
(1) shall be ineligible for further temporary extended
unemployment compensation under this title in accordance with
the provisions of the applicable State unemployment
compensation law relating to fraud in connection with a claim
for unemployment compensation; and
(2) shall be subject to prosecution under section 1001 of
title 18, United States Code.
(b) Repayment.--In the case of individuals who have
received amounts of temporary extended unemployment
compensation under this title to which they were not
entitled, the State shall require such individuals to repay
the amounts of such temporary extended unemployment
compensation to the State agency, except that the State
agency may waive such repayment if it determines that--
(1) the payment of such temporary extended unemployment
compensation was without fault on the part of any such
individual; and
(2) such repayment would be contrary to equity and good
conscience.
(c) Recovery by State Agency.--
(1) In general.--The State agency may recover the amount to
be repaid, or any part thereof, by deductions from any
temporary extended unemployment compensation payable to such
individual under this title or from any unemployment
compensation payable to such individual under any Federal
unemployment compensation law administered by the State
agency or under any other Federal law administered by the
State agency which provides for the payment of any assistance
or allowance with respect to any week of unemployment, during
the 3-year period after the date such individuals received
the payment of the temporary extended unemployment
compensation to which they were not entitled, except that no
single deduction may exceed 50 percent of the weekly benefit
amount from which such deduction is made.
(2) Opportunity for hearing.--No repayment shall be
required, and no deduction shall be made, until a
determination has been made, notice thereof and an
opportunity for a fair hearing has been given to the
individual, and the determination has become final.
(d) Review.--Any determination by a State agency under this
section shall be subject to review in the same manner and to
the same extent as determinations under the State
unemployment compensation law, and only in that manner and to
that extent.
SEC. 207. DEFINITIONS.
In this title, the terms ``compensation'', ``regular
compensation'', ``extended compensation'', ``additional
compensation'', ``benefit year'', ``base period'', ``State'',
``State agency'', ``State law'', and ``week'' have the
respective meanings given such terms under section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970
(26 U.S.C. 3304 note).
SEC. 208. APPLICABILITY.
An agreement entered into under this title shall apply to
weeks of unemployment--
(1) beginning after the date on which such agreement is
entered into; and
(2) ending before January 1, 2003.
SEC. 209. SPECIAL REED ACT TRANSFER IN FISCAL YEAR 2002.
(a) Repeal of Certain Provisions Added by the Balanced
Budget Act of 1997.--
(1) In general.--The following provisions of section 903 of
the Social Security Act (42 U.S.C. 1103) are repealed:
(A) Paragraph (3) of subsection (a).
(B) The last sentence of subsection (c)(2).
(2) Savings provision.--Any amounts transferred before the
date of enactment of this Act under the provision repealed by
paragraph (1)(A) shall remain subject to section 903 of the
Social Security Act, as last in effect before such date of
enactment.
(b) Special Transfer in Fiscal Year 2002.--Section 903 of
the Social Security Act is amended by adding at the end the
following:
``Special Transfer in Fiscal Year 2002
``(d)(1) The Secretary of the Treasury shall transfer (as
of the date determined under paragraph (5)) from the Federal
unemployment account to the account of each State in the
Unemployment Trust Fund the amount determined with respect to
such State under paragraph (2).
``(2)(A) The amount to be transferred under this subsection
to a State account shall (as determined by the Secretary of
Labor and certified by such Secretary to the Secretary of the
Treasury) be equal to--
``(i) the amount which would have been required to have
been transferred under this section to such account at the
beginning of fiscal year 2002 if--
``(I) section 209(a)(1) of the Temporary Extended
Unemployment Compensation Act of 2002 had been enacted before
the close of fiscal year 2001, and
``(II) section 5402 of Public Law 105-33 (relating to
increase in Federal unemployment account ceiling) had not
been enacted,
[[Page H749]]
minus
``(ii) the amount which was in fact transferred under this
section to such account at the beginning of fiscal year 2002.
``(B) Notwithstanding the provisions of subparagraph (A)--
``(i) the aggregate amount transferred to the States under
this subsection may not exceed a total of $8,000,000,000; and
``(ii) all amounts determined under subparagraph (A) shall
be reduced ratably, if and to the extent necessary in order
to comply with the limitation under clause (i).
``(3)(A) Except as provided in paragraph (4), amounts
transferred to a State account pursuant to this subsection
may be used only in the payment of cash benefits--
``(i) to individuals with respect to their unemployment,
and
``(ii) which are allowable under subparagraph (B) or (C).
``(B)(i) At the option of the State, cash benefits under
this paragraph may include amounts which shall be payable
as--
``(I) regular compensation, or
``(II) additional compensation, upon the exhaustion of any
temporary extended unemployment compensation (if such State
has entered into an agreement under the Temporary Extended
Unemployment Compensation Act of 2002), for individuals
eligible for regular compensation under the unemployment
compensation law of such State.
``(ii) Any additional compensation under clause (i) may not
be taken into account for purposes of any determination
relating to the amount of any extended compensation for which
an individual might be eligible.
``(C)(i) At the option of the State, cash benefits under
this paragraph may include amounts which shall be payable to
1 or more categories of individuals not otherwise eligible
for regular compensation under the unemployment compensation
law of such State, including those described in clause (iii).
``(ii) The benefits paid under this subparagraph to any
individual may not, for any period of unemployment, exceed
the maximum amount of regular compensation authorized under
the unemployment compensation law of such State for that same
period, plus any additional compensation (described in
subparagraph (B)(i)) which could have been paid with respect
to that amount.
``(iii) The categories of individuals described in this
clause include the following:
``(I) Individuals who are seeking, or available for, only
part-time (and not full-time) work.
``(II) Individuals who would be eligible for regular
compensation under the unemployment compensation law of such
State under an alternative base period.
``(D) Amounts transferred to a State account under this
subsection may be used in the payment of cash benefits to
individuals only for weeks of unemployment beginning after
the date of enactment of this subsection.
``(4) Amounts transferred to a State account under this
subsection may be used for the administration of its
unemployment compensation law and public employment offices
(including in connection with benefits described in paragraph
(3) and any recipients thereof), subject to the same
conditions as set forth in subsection (c)(2) (excluding
subparagraph (B) thereof, and deeming the reference to
`subsections (a) and (b)' in subparagraph (D) thereof to
include this subsection).
``(5) Transfers under this subsection shall be made within
10 days after the date of enactment of this paragraph.''.
(c) Limitations on Transfers.--Section 903(b) of the Social
Security Act shall apply to transfers under section 903(d) of
such Act (as amended by this section). For purposes of the
preceding sentence, such section 903(b) shall be deemed to be
amended as follows:
(1) By substituting ``the transfer date described in
subsection (d)(5)'' for ``October 1 of any fiscal year''.
(2) By substituting ``remain in the Federal unemployment
account'' for ``be transferred to the Federal unemployment
account as of the beginning of such October 1''.
(3) By substituting ``fiscal year 2002 (after the transfer
date described in subsection (d)(5))'' for ``the fiscal year
beginning on such October 1''.
(4) By substituting ``under subsection (d)'' for ``as of
October 1 of such fiscal year''.
(5) By substituting ``(as of the close of fiscal year
2002)'' for ``(as of the close of such fiscal year)''.
(d) Technical Amendments.--(1) Sections 3304(a)(4)(B) and
3306(f)(2) of the Internal Revenue Code of 1986 are amended
by inserting ``or 903(d)(4)'' before ``of the Social Security
Act''.
(2) Section 303(a)(5) of the Social Security Act is amended
in the second proviso by inserting ``or 903(d)(4)'' after
``903(c)(2)''.
(e) Regulations.--The Secretary of Labor may prescribe any
operating instructions or regulations necessary to carry out
this section and the amendments made by this section.
TITLE III--TAX INCENTIVES FOR NEW YORK CITY AND DISTRESSED AREAS
SEC. 301. TAX BENEFITS FOR AREA OF NEW YORK CITY DAMAGED IN
TERRORIST ATTACKS ON SEPTEMBER 11, 2001.
(a) In General.--Chapter 1 is amended by adding at the end
the following new subchapter:
``Subchapter Y--New York Liberty Zone Benefits
``Sec. 1400L. Tax benefits for New York Liberty Zone.
``SEC. 1400L. TAX BENEFITS FOR NEW YORK LIBERTY ZONE.
``(a) Expansion of Work Opportunity Tax Credit.--
``(1) In general.--For purposes of section 51, a New York
Liberty Zone business employee shall be treated as a member
of a targeted group.
``(2) New york liberty zone business employee.--For
purposes of this subsection--
``(A) In general.--The term `New York Liberty Zone business
employee' means, with respect to any period, any employee of
a New York Liberty Zone business if substantially all the
services performed during such period by such employee for
such business are performed in the New York Liberty Zone.
``(B) Inclusion of certain employees outside the new york
liberty zone.--
``(i) In general.--In the case of a New York Liberty Zone
business described in subclause (II) of subparagraph (C)(i),
the term `New York Liberty Zone business employee' includes
any employee of such business (not described in subparagraph
(A)) if substantially all the services performed during such
period by such employee for such business are performed in
the City of New York, New York.
``(ii) Limitation.--The number of employees of such a
business that are treated as New York Liberty zone business
employees on any day by reason of clause (i) shall not exceed
the excess of--
``(I) the number of employees of such business on September
11, 2001, in the New York Liberty Zone, over
``(II) the number of New York Liberty Zone business
employees (determined without regard to this subparagraph) of
such business on the day to which the limitation is being
applied.
The Secretary may require any trade or business to have the
number determined under subclause (I) verified by the New
York State Department of Labor.
``(C) New york liberty zone business.--
``(i) In general.--The term `New York Liberty Zone
business' means any trade or business which is--
``(I) located in the New York Liberty Zone, or
``(II) located in the City of New York, New York, outside
the New York Liberty Zone, as a result of the physical
destruction or damage of such place of business by the
September 11, 2001, terrorist attack.
``(ii) Credit not allowed for large businesses.--The term
`New York Liberty Zone business' shall not include any trade
or business for any taxable year if such trade or business
employed an average of more than 200 employees on business
days during the taxable year.
``(D) Special rules for determining amount of credit.--For
purposes of applying subpart F of part IV of subchapter B of
this chapter to wages paid or incurred to any New York
Liberty Zone business employee--
``(i) section 51(a) shall be applied by substituting
`qualified wages' for `qualified first-year wages',
``(ii) the rules of section 52 shall apply for purposes of
determining the number of employees under subparagraph (B),
``(iii) subsections (c)(4) and (i)(2) of section 51 shall
not apply, and
``(iv) in determining qualified wages, the following shall
apply in lieu of section 51(b):
``(I) Qualified wages.--The term `qualified wages' means
wages paid or incurred by the employer to individuals who are
New York Liberty Zone business employees of such employer for
work performed during calendar year 2002 or 2003.
``(II) Only first $6,000 of wages per calendar year taken
into account.--The amount of the qualified wages which may be
taken into account with respect to any individual shall not
exceed $6,000 per calendar year.
``(b) Special Allowance for Certain Property Acquired After
September 10, 2001.--
``(1) Additional allowance.--In the case of any qualified
New York Liberty Zone property--
``(A) the depreciation deduction provided by section 167(a)
for the taxable year in which such property is placed in
service shall include an allowance equal to 30 percent of the
adjusted basis of such property, and
``(B) the adjusted basis of the qualified New York Liberty
Zone property shall be reduced by the amount of such
deduction before computing the amount otherwise allowable as
a depreciation deduction under this chapter for such taxable
year and any subsequent taxable year.
``(2) Qualified new york liberty zone property.--For
purposes of this subsection--
``(A) In general.--The term `qualified New York Liberty
Zone property' means property--
``(i)(I) which is described in section 168(k)(2)(A)(i), or
``(II) which is nonresidential real property, or
residential rental property, which is described in
subparagraph (B),
``(ii) substantially all of the use of which is in the New
York Liberty Zone and is in the active conduct of a trade or
business by the taxpayer in such Zone,
``(iii) the original use of which in the New York Liberty
Zone commences with the taxpayer after September 10, 2001,
``(iv) which is acquired by the taxpayer by purchase (as
defined in section 179(d)) after September 10, 2001, but only
if no written binding contract for the acquisition was in
effect before September 11, 2001, and
[[Page H750]]
``(v) which is placed in service by the taxpayer on or
before the termination date.
The term `termination date' means December 31, 2006 (December
31, 2009, in the case of nonresidential real property and
residential rental property).
``(B) Eligible real property.--Nonresidential real property
or residential rental property is described in this
subparagraph only to the extent it rehabilitates real
property damaged, or replaces real property destroyed or
condemned, as a result of the September 11, 2001, terrorist
attack. For purposes of the preceding sentence, property
shall be treated as replacing real property destroyed or
condemned if, as part of an integrated plan, such property
replaces real property which is included in a continuous area
which includes real property destroyed or condemned.
``(C) Exceptions.--
``(i) 30 percent additional allowance property.--Such term
shall not include property to which section 168(k) applies.
``(ii) Alternative depreciation property.--The term
`qualified New York Liberty Zone property' shall not include
any property described in section 168(k)(2)(C)(i).
``(iii) Qualified new york liberty zone leasehold
improvement property.--Such term shall not include any
qualified New York Liberty Zone leasehold improvement
property.
``(iv) Election out.--For purposes of this subsection,
rules similar to the rules of section 168(k)(2)(C)(iii) shall
apply.
``(D) Special rules.--For purposes of this subsection,
rules similar to the rules of section 168(k)(2)(D) shall
apply, except that clause (i) thereof shall be applied
without regard to `and before September 11, 2004'.
``(E) Allowance against alternative minimum tax.--For
purposes of this subsection, rules similar to the rules of
section 168(k)(2)(F) shall apply.
``(c) 5-Year Recovery Period for Depreciation of Certain
Leasehold Improvements.--
``(1) In general.--For purposes of section 168, the term
`5-year property' includes any qualified New York Liberty
Zone leasehold improvement property.
``(2) Qualified new york liberty zone leasehold improvement
property.--For purposes of this section, the term `qualified
New York Liberty Zone leasehold improvement property' means
qualified leasehold improvement property (as defined in
section 168(k)(3)) if--
``(A) such building is located in the New York Liberty
Zone,
``(B) such improvement is placed in service after September
10, 2001, and before January 1, 2007, and
``(C) no written binding contract for such improvement was
in effect before September 11, 2001.
``(3) Requirement to use straight line method.--The
applicable depreciation method under section 168 shall be the
straight line method in the case of qualified New York
Liberty Zone leasehold improvement property.
``(4) 9-year recovery period under alternative system.--For
purposes of section 168(g), the class life of qualified New
York Liberty Zone leasehold improvement property shall be 9
years.
``(d) Tax-Exempt Bond Financing.--
``(1) In general.--For purposes of this title, any
qualified New York Liberty Bond shall be treated as an exempt
facility bond.
``(2) Qualified new york liberty bond.--For purposes of
this subsection, the term `qualified New York Liberty Bond'
means any bond issued as part of an issue if--
``(A) 95 percent or more of the net proceeds (as defined in
section 150(a)(3)) of such issue are to be used for qualified
project costs,
``(B) such bond is issued by the State of New York or any
political subdivision thereof,
``(C) the Governor or the Mayor designates such bond for
purposes of this section, and
``(D) such bond is issued after the the date of the
enactment of this section and before January 1, 2005.
``(3) Limitations on amount of bonds.--
``(A) Aggregate amount designated.--The maximum aggregate
face amount of bonds which may be designated under this
subsection shall not exceed $8,000,000,000, of which not to
exceed $4,000,000,000 may be designated by the Governor and
not to exceed $4,000,000,000 may be designated by the Mayor.
``(B) Specific limitations.--The aggregate face amount of
bonds issued which are to be used for--
``(i) costs for property located outside the New York
Liberty Zone shall not exceed $2,000,000,000,
``(ii) residential rental property shall not exceed
$1,600,000,000, and
``(iii) costs with respect to property used for retail
sales of tangible property and functionally related and
subordinate property shall not exceed $800,000,000.
The limitations under clauses (i), (ii), and (iii) shall be
allocated proportionately between the bonds designated by the
Governor and the bonds designated by the Mayor in proportion
to the respective amounts of bonds designated by each.
``(C) Movable property.--No bonds shall be issued which are
to be used for movable fixtures and equipment.
``(4) Qualified project costs.--For purposes of this
subsection--
``(A) In general.--The term `qualified project costs' means
the cost of acquisition, construction, reconstruction, and
renovation of--
``(i) nonresidential real property and residential rental
property (including fixed tenant improvements associated with
such property) located in the New York Liberty Zone, and
``(ii) public utility property (as defined in section
168(i)(10)) located in the New York Liberty Zone.
``(B) Costs for certain property outside zone included.--
Such term includes the cost of acquisition, construction,
reconstruction, and renovation of nonresidential real
property (including fixed tenant improvements associated with
such property) located outside the New York Liberty Zone but
within the City of New York, New York, if such property is
part of a project which consists of at least 100,000 square
feet of usable office or other commercial space located in a
single building or multiple adjacent buildings.
``(5) Special rules.--In applying this title to any
qualified New York Liberty Bond, the following modifications
shall apply:
``(A) Section 146 (relating to volume cap) shall not apply.
``(B) Section 147(d) (relating to acquisition of existing
property not permitted) shall be applied by substituting `50
percent' for `15 percent' each place it appears.
``(C) Section 148(f)(4)(C) (relating to exception from
rebate for certain proceeds to be used to finance
construction expenditures) shall apply to the available
construction proceeds of bonds issued under this section.
``(D) Repayments of principal on financing provided by the
issue--
``(i) may not be used to provide financing, and
``(ii) must be used not later than the close of the 1st
semiannual period beginning after the date of the repayment
to redeem bonds which are part of such issue.
The requirement of clause (ii) shall be treated as met with
respect to amounts received within 10 years after the date of
issuance of the issue (or, in the case of a refunding bond,
the date of issuance of the original bond) if such amounts
are used by the close of such 10 years to redeem bonds which
are part of such issue.
``(E) Section 57(a)(5) shall not apply.
``(6) Separate issue treatment of portions of an issue.--
This subsection shall not apply to the portion of an issue
which (if issued as a separate issue) would be treated as a
qualified bond or as a bond that is not a private activity
bond (determined without regard to paragraph (1)), if the
issuer elects to so treat such portion.
``(e) Advance Refundings of Certain Tax-Exempt Bonds.--
``(1) In general.--With respect to a bond described in
paragraph (2) issued as part of an issue 90 percent (95
percent in the case of a bond described in paragraph (2)(C))
or more of the net proceeds (as defined in section 150(a)(3))
of which were used to finance facilities located within the
City of New York, New York (or property which is functionally
related and subordinate to facilities located within the City
of New York for the furnishing of water), one additional
advanced refunding after the date of the enactment of this
section and before January 1, 2005, shall be allowed under
the applicable rules of section 149(d) if--
``(A) the Governor or the Mayor designates the advance
refunding bond for purposes of this subsection, and
``(B) the requirements of paragraph (4) are met.
``(2) Bonds described.--A bond is described in this
paragraph if such bond was outstanding on September 11, 2001,
and is--
``(A) a State or local bond (as defined in section
103(c)(1)) which is a general obligation of the City of New
York, New York,
``(B) a State or local bond (as so defined) other than a
private activity bond (as defined in section 141(a)) issued
by the New York Municipal Water Finance Authority or the
Metropolitan Transportation Authority of the State of New
York, or
``(C) a qualified 501(c)(3) bond (as defined in section
145(a)) which is a qualified hospital bond (as defined in
section 145(c)) issued by or on behalf of the State of New
York or the City of New York, New York.
``(3) Aggregate limit.--For purposes of paragraph (1), the
maximum aggregate face amount of bonds which may be
designated under this subsection by the Governor shall not
exceed $4,500,000,000 and the maximum aggregate face amount
of bonds which may be designated under this subsection by the
Mayor shall not exceed $4,500,000,000.
``(4) Additional requirements.--The requirements of this
paragraph are met with respect to any advance refunding of a
bond described in paragraph (2) if--
``(A) no advance refundings of such bond would be allowed
under any provision of law after September 11, 2001,
``(B) the advance refunding bond is the only other
outstanding bond with respect to the refunded bond, and
``(C) the requirements of section 148 are met with respect
to all bonds issued under this subsection.
``(f) Increase in Expensing Under Section 179.--
``(1) In general.--For purposes of section 179--
``(A) the limitation under section 179(b)(1) shall be
increased by the lesser of--
``(i) $35,000, or
``(ii) the cost of section 179 property which is qualified
New York Liberty Zone property
[[Page H751]]
placed in service during the taxable year, and
``(B) the amount taken into account under section 179(b)(2)
with respect to any section 179 property which is qualified
New York Liberty Zone property shall be 50 percent of the
cost thereof.
``(2) Qualified new york liberty zone property.--For
purposes of this subsection, the term `qualified New York
Liberty Zone property' has the meaning given such term by
subsection (b)(2).
``(3) Recapture.--Rules similar to the rules under section
179(d)(10) shall apply with respect to any qualified New York
Liberty Zone property which ceases to be used in the New York
Liberty Zone.
``(g) Extension of Replacement Period for Nonrecognition of
Gain.--Notwithstanding subsections (g) and (h) of section
1033, clause (i) of section 1033(a)(2)(B) shall be applied by
substituting `5 years' for `2 years' with respect to property
which is compulsorily or involuntarily converted as a result
of the terrorist attacks on September 11, 2001, in the New
York Liberty Zone but only if substantially all of the use of
the replacement property is in the City of New York, New
York.
``(h) New York Liberty Zone.--For purposes of this section,
the term `New York Liberty Zone' means the area located on or
south of Canal Street, East Broadway (east of its
intersection with Canal Street), or Grand Street (east of its
intersection with East Broadway) in the Borough of Manhattan
in the City of New York, New York.
``(i) References to Governor and Mayor.--For purposes of
this section, the terms `Governor' and `Mayor' mean the
Governor of the State of New York and the Mayor of the City
of New York, New York, respectively.''.
(b) Credit Allowed Against Regular and Minimum Tax.--
(1) In general.--Subsection (c) of section 38 (relating to
limitation based on amount of tax) is amended by
redesignating paragraph (3) as paragraph (4) and by inserting
after paragraph (2) the following new paragraph:
``(3) Special rules for new york liberty zone business
employee credit.--
``(A) In general.--In the case of the New York Liberty Zone
business employee credit--
``(i) this section and section 39 shall be applied
separately with respect to such credit, and
``(ii) in applying paragraph (1) to such credit--
``(I) the tentative minimum tax shall be treated as being
zero, and
``(II) the limitation under paragraph (1) (as modified by
subclause (I)) shall be reduced by the credit allowed under
subsection (a) for the taxable year (other than the New York
Liberty Zone business employee credit).
``(B) New york liberty zone business employee credit.--For
purposes of this subsection, the term `New York Liberty Zone
business employee credit' means the portion of work
opportunity credit under section 51 determined under section
1400L(a).''.
(2) Conforming amendment.--Subclause (II) of section
38(c)(2)(A)(ii) is amended by inserting ``or the New York
Liberty Zone business employee credit'' after ``employment
credit''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years ending after December 31, 2001.
(c) Clerical Amendment.--The table of subchapters for
chapter 1 is amended by adding at the end the following new
item:
``Subchapter Y--New York Liberty Zone Benefits.''.
TITLE IV--MISCELLANEOUS AND TECHNICAL PROVISIONS
Subtitle A--General Miscellaneous Provisions
SEC. 401. ALLOWANCE OF ELECTRONIC 1099'S.
Any person required to furnish a statement under any
section of subpart B of part III of subchapter A of chapter
61 of the Internal Revenue Code of 1986 for any taxable year
ending after the date of the enactment of this Act, may
electronically furnish such statement (without regard to any
first class mailing requirement) to any recipient who has
consented to the electronic provision of the statement in a
manner similar to the one permitted under regulations issued
under section 6051 of such Code or in such other manner as
provided by the Secretary.
SEC. 402. EXCLUDED CANCELLATION OF INDEBTEDNESS INCOME OF S
CORPORATION NOT TO RESULT IN ADJUSTMENT TO
BASIS OF STOCK OF SHAREHOLDERS.
(a) In General.--Subparagraph (A) of section 108(d)(7)
(relating to certain provisions to be applied at corporate
level) is amended by inserting before the period ``,
including by not taking into account under section 1366(a)
any amount excluded under subsection (a) of this section''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to discharges of
indebtedness after October 11, 2001, in taxable years ending
after such date.
(2) Exception.--The amendment made by this section shall
not apply to any discharge of indebtedness before March 1,
2002, pursuant to a plan of reorganization filed with a
bankruptcy court on or before October 11, 2001.
SEC. 403. LIMITATION ON USE OF NONACCRUAL EXPERIENCE METHOD
OF ACCOUNTING.
(a) In General.--Paragraph (5) of section 448(d) is amended
to read as follows:
``(5) Special rule for certain services.--
``(A) In general.--In the case of any person using an
accrual method of accounting with respect to amounts to be
received for the performance of services by such person, such
person shall not be required to accrue any portion of such
amounts which (on the basis of such person's experience) will
not be collected if--
``(i) such services are in fields referred to in paragraph
(2)(A), or
``(ii) such person meets the gross receipts test of
subsection (c) for all prior taxable years.
``(B) Exception.--This paragraph shall not apply to any
amount if interest is required to be paid on such amount or
there is any penalty for failure to timely pay such amount.
``(C) Regulations.--The Secretary shall prescribe
regulations to permit taxpayers to determine amounts referred
to in subparagraph (A) using computations or formulas which,
based on experience, accurately reflect the amount of income
that will not be collected by such person. A taxpayer may
adopt, or request consent of the Secretary to change to, a
computation or formula that clearly reflects the taxpayer's
experience. A request under the preceding sentence shall be
approved if such computation or formula clearly reflects the
taxpayer's experience.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment
of this Act.
(2) Change in method of accounting.--In the case of any
taxpayer required by the amendments made by this section to
change its method of accounting for its first taxable year
ending after the date of the enactment of this Act--
(A) such change shall be treated as initiated by the
taxpayer,
(B) such change shall be treated as made with the consent
of the Secretary of the Treasury, and
(C) the net amount of the adjustments required to be taken
into account by the taxpayer under section 481 of the
Internal Revenue Code of 1986 shall be taken into account
over a period of 4 years (or if less, the number of taxable
years that the taxpayer used the method permitted under
section 448(d)(5) of such Code as in effect before the date
of the enactment of this Act) beginning with such first
taxable year.
SEC. 404. EXCLUSION FOR FOSTER CARE PAYMENTS TO APPLY TO
PAYMENTS BY QUALIFIED PLACEMENT AGENCIES.
(a) In General.--The matter preceding subparagraph (B) of
section 131(b)(1) (defining qualified foster care payment) is
amended to read as follows:
``(1) In general.--The term `qualified foster care payment'
means any payment made pursuant to a foster care program of a
State or political subdivision thereof--
``(A) which is paid by--
``(i) a State or political subdivision thereof, or
``(ii) a qualified foster care placement agency, and''.
(b) Qualified Foster Individuals To Include Individuals
Placed by Qualified Placement Agencies.--Subparagraph (B) of
section 131(b)(2) (defining qualified foster individual) is
amended to read as follows:
``(B) a qualified foster care placement agency.''.
(c) Qualified Foster Care Placement Agency Defined.--
Subsection (b) of section 131 is amended by redesignating
paragraph (3) as paragraph (4) and by inserting after
paragraph (2) the following new paragraph:
``(3) Qualified foster care placement agency.--The term
`qualified foster care placement agency' means any placement
agency which is licensed or certified by--
``(A) a State or political subdivision thereof, or
``(B) an entity designated by a State or political
subdivision thereof,
for the foster care program of such State or political
subdivision to make foster care payments to providers of
foster care.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 405. INTEREST RATE RANGE FOR ADDITIONAL FUNDING
REQUIREMENTS.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) Special rule.--Clause (i) of section 412(l)(7)(C)
(relating to interest rate) is amended by adding at the end
the following new subclause:
``(III) Special rule for 2002 and 2003.--For a plan year
beginning in 2002 or 2003, notwithstanding subclause (I), in
the case that the rate of interest used under subsection
(b)(5) exceeds the highest rate permitted under subclause
(I), the rate of interest used to determine current liability
under this subsection may exceed the rate of interest
otherwise permitted under subclause (I); except that such
rate of interest shall not exceed 120 percent of the weighted
average referred to in subsection (b)(5)(B)(ii).''.
(2) Quarterly contributions.--Subsection (m) of section 412
is amended by adding at the end the following new paragraph:
``(7) Special rules for 2002 and 2004.--In any case in
which the interest rate used to determine current liability
is determined under subsection (l)(7)(C)(i)(III)--
[[Page H752]]
``(A) 2002.--For purposes of applying paragraphs (1) and
(4)(B)(ii) for plan years beginning in 2002, the current
liability for the preceding plan year shall be redetermined
using 120 percent as the specified percentage determined
under subsection (l)(7)(C)(i)(II).
``(B) 2004.--For purposes of applying paragraphs (1) and
(4)(B)(ii) for plan years beginning in 2004, the current
liability for the preceding plan year shall be redetermined
using 105 percent as the specified percentage determined
under subsection (l)(7)(C)(i)(II).''.
(b) Amendments to the Employee Retirement Income Security
Act of 1974.--
(1) Special rule.--Clause (i) of section 302(d)(7)(C) of
such Act (29 U.S.C. 1082(d)(7)(C)) is amended by adding at
the end the following new subclause:
``(III) Special rule for 2002 and 2003.--For a plan year
beginning in 2002 or 2003, notwithstanding subclause (I), in
the case that the rate of interest used under subsection
(b)(5) exceeds the highest rate permitted under subclause
(I), the rate of interest used to determine current liability
under this subsection may exceed the rate of interest
otherwise permitted under subclause (I); except that such
rate of interest shall not exceed 120 percent of the weighted
average referred to in subsection (b)(5)(B)(ii).''.
(2) Quarterly contributions.--Subsection (e) of section 302
of such Act (29 U.S.C. 1082) is amended by adding at the end
the following new paragraph:
``(7) Special rules for 2002 and 2004.--In any case in
which the interest rate used to determine current liability
is determined under subsection (d)(7)(C)(i)(III)--
``(A) 2002.--For purposes of applying paragraphs (1) and
(4)(B)(ii) for plan years beginning in 2002, the current
liability for the preceding plan year shall be redetermined
using 120 percent as the specified percentage determined
under subsection (d)(7)(C)(i)(II).
``(B) 2004.--For purposes of applying paragraphs (1) and
(4)(B)(ii) for plan years beginning in 2004, the current
liability for the preceding plan year shall be redetermined
using 105 percent as the specified percentage determined
under subsection (d)(7)(C)(i)(II).''.
(c) PBGC.--Clause (iii) of section 4006(a)(3)(E) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1306(a)(3)(E)) is amended by adding at the end the following
new subclause:
``(IV) In the case of plan years beginning after December
31, 2001, and before January 1, 2004, subclause (II) shall be
applied by substituting `100 percent' for `85 percent'.
Subclause (III) shall be applied for such years without
regard to the preceding sentence. Any reference to this
clause by any other sections or subsections shall be treated
as a reference to this clause without regard to this
subclause.''.
SEC. 406. ADJUSTED GROSS INCOME DETERMINED BY TAKING INTO
ACCOUNT CERTAIN EXPENSES OF ELEMENTARY AND
SECONDARY SCHOOL TEACHERS.
(a) In General.--Section 62(a)(2) (relating to certain
trade and business deductions of employees) is amended by
adding at the end the following:
``(D) Certain expenses of elementary and secondary school
teachers.--In the case of taxable years beginning during 2002
or 2003, the deductions allowed by section 162 which consist
of expenses, not in excess of $250, paid or incurred by an
eligible educator in connection with books, supplies (other
than nonathletic supplies for courses of instruction in
health or physical education), computer equipment (including
related software and services) and other equipment, and
supplementary materials used by the eligible educator in the
classroom.''.
(b) Eligible Educator.--Section 62 is amended by adding at
the end the following:
``(d) Definition; Special Rules.--
``(1) Eligible educator.--
``(A) In general.--For purposes of subsection (a)(2)(D),
the term `eligible educator' means, with respect to any
taxable year, an individual who is a kindergarten through
grade 12 teacher, instructor, counselor, principal, or aide
in a school for at least 900 hours during a school year.
``(B) School.--The term `school' means any school which
provides elementary education or secondary education
(kindergarten through grade 12), as determined under State
law.
``(2) Coordination with exclusions.--A deduction shall be
allowed under subsection (a)(2)(D) for expenses only to the
extent the amount of such expenses exceeds the amount
excludable under section 135, 529(c)(1), or 530(d)(2) for the
taxable year.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
Subtitle B--Technical Corrections
SEC. 411. AMENDMENTS RELATED TO ECONOMIC GROWTH AND TAX
RELIEF RECONCILIATION ACT OF 2001.
(a) Amendments Related to Section 101 of the Act.--
(1) In general.--Subsection (b) of section 6428 is amended
to read as follows:
``(b) Credit Treated as Nonrefundable Personal Credit.--For
purposes of this title, the credit allowed under this section
shall be treated as a credit allowable under subpart A of
part IV of subchapter A of chapter 1.''.
(2) Conforming amendments.--
(A) Subsection (d) of section 6428 is amended to read as
follows:
``(d) Coordination with Advance Refunds of Credit.--
``(1) In general.--The amount of credit which would (but
for this paragraph) be allowable under this section shall be
reduced (but not below zero) by the aggregate refunds and
credits made or allowed to the taxpayer under subsection (e).
Any failure to so reduce the credit shall be treated as
arising out of a mathematical or clerical error and assessed
according to section 6213(b)(1).
``(2) Joint returns.--In the case of a refund or credit
made or allowed under subsection (e) with respect to a joint
return, half of such refund or credit shall be treated as
having been made or allowed to each individual filing such
return.''.
(B) Paragraph (2) of section 6428(e) is amended to read as
follows:
``(2) Advance refund amount.--For purposes of paragraph
(1), the advance refund amount is the amount that would have
been allowed as a credit under this section for such first
taxable year if--
``(A) this section (other than subsections (b) and (d) and
this subsection) had applied to such taxable year, and
``(B) the credit for such taxable year were not allowed to
exceed the excess (if any) of--
``(i) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under part IV of
subchapter A of chapter 1 (other than the credits allowable
under subpart C thereof, relating to refundable credits).''
(b) Amendment Related to Section 201 of the Act.--
Subparagraph (B) of section 24(d)(1) is amended by striking
``amount of credit allowed by this section'' and inserting
``aggregate amount of credits allowed by this subpart''.
(c) Amendments Related to Section 202 of the Act.--
(1) Corrections to credit for adoption expenses.--
(A) Paragraph (1) of section 23(a) is amended to read as
follows:
``(1) In general.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter the amount of the qualified adoption expenses paid or
incurred by the taxpayer.''
(B) Subsection (a) of section 23 is amended by adding at
the end the following new paragraph:
``(3) $10,000 credit for adoption of child with special
needs regardless of expenses.--In the case of an adoption of
a child with special needs which becomes final during a
taxable year, the taxpayer shall be treated as having paid
during such year qualified adoption expenses with respect to
such adoption in an amount equal to the excess (if any) of
$10,000 over the aggregate qualified adoption expenses
actually paid or incurred by the taxpayer with respect to
such adoption during such taxable year and all prior taxable
years.''
(C) Paragraph (2) of section 23(a) is amended by striking
the last sentence.
(D) Paragraph (1) of section 23(b) is amended by striking
``subsection (a)(1)(A)'' and inserting ``subsection (a)''.
(E) Subsection (i) of section 23 is amended by striking
``the dollar limitation in subsection (b)(1)'' and inserting
``the dollar amounts in subsections (a)(3) and (b)(1)''.
(F) Expenses paid or incurred during any taxable year
beginning before January 1, 2002, may be taken into account
in determining the credit under section 23 of the Internal
Revenue Code of 1986 only to the extent the aggregate of such
expenses does not exceed the applicable limitation under
section 23(b)(1) of such Code as in effect on the day before
the date of the enactment of the Economic Growth and Tax
Relief Reconciliation Act of 2001.
(2) Corrections to exclusion for employer-provided adoption
assistance.--
(A) Subsection (a) of section 137 is amended to read as
follows:
``(a) Exclusion.--
``(1) In general.--Gross income of an employee does not
include amounts paid or expenses incurred by the employer for
qualified adoption expenses in connection with the adoption
of a child by an employee if such amounts are furnished
pursuant to an adoption assistance program.
``(2) $10,000 exclusion for adoption of child with special
needs regardless of expenses.--In the case of an adoption of
a child with special needs which becomes final during a
taxable year, the qualified adoption expenses with respect to
such adoption for such year shall be increased by an amount
equal to the excess (if any) of $10,000 over the actual
aggregate qualified adoption expenses with respect to such
adoption during such taxable year and all prior taxable
years.''
(B) Paragraph (2) of section 137(b) is amended by striking
``subsection (a)(1)'' and inserting ``subsection (a)''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2002; except that the amendments made by paragraphs (1)(C),
(1)(D), and (2)(B) shall apply to taxable years beginning
after December 31, 2001.
(d) Amendments Related to Section 205 of the Act.--
(1) Section 45F(d)(4)(B) is amended by striking ``subpart
A, B, or D of this part'' and inserting ``this chapter or for
purposes of section 55''.
(2) Section 38(b)(15) is amended by striking ``45F'' and
inserting ``45F(a)''.
(e) Amendments Related to Section 301 of the Act.--
(1) Section 63(c)(2) is amended--
(A) in subparagraph (A), by striking ``subparagraph (C)''
and inserting ``subparagraph (D)'',
[[Page H753]]
(B) by striking ``or'' at the end of subparagraph (B),
(C) by redesignating subparagraph (C) as subparagraph (D),
(D) by inserting after subparagraph (B) the following new
subparagraph:
``(C) one-half of the amount in effect under subparagraph
(A) in the case of a married individual filing a separate
return, or'', and
(E) by inserting the following flush sentence at the end:
``If any amount determined under subparagraph (A) is not a
multiple of $50, such amount shall be rounded to the next
lowest multiple of $50.''
(2)(A) Section 63(c)(4) is amended by striking ``paragraph
(2) or (5)'' and inserting ``paragraph (2)(B), (2)(D), or
(5)''.
(B) Section 63(c)(4)(B)(i) is amended by striking
``paragraph (2)'' and inserting ``paragraph (2)(B),
(2)(D),''.
(C) Section 63(c)(4) is amended by striking the flush
sentence at the end (as added by section 301(c)(2) of Public
Law 107-17).
(f) Amendment Related to Section 401 of the Act.--Section
530(d)(4)(B)(iv) is amended by striking ``because the
taxpayer elected under paragraph (2)(C) to waive the
application of paragraph (2)'' and inserting ``by application
of paragraph (2)(C)(i)(II)''.
(g) Amendments Related to Section 511 of the Act.--
(1) Section 2511(c) is amended by striking ``taxable gift
under section 2503,'' and inserting ``transfer of property by
gift,''.
(2) Section 2101(b) is amended by striking the last
sentence.
(h) Amendment Related to Section 532 of the Act.--Section
2016 is amended by striking ``any State, any possession of
the United States, or the District of Columbia,''.
(i) Amendments Relating to Section 602 of the Act.--
(1) Subparagraph (A) of section 408(q)(3) is amended to
read as follows:
``(A) Qualified employer plan.--The term `qualified
employer plan' has the meaning given such term by section
72(p)(4)(A)(i); except that such term shall also include an
eligible deferred compensation plan (as defined in section
457(b)) of an eligible employer described in section
457(e)(1)(A).''.
(2) Section 4(c) of Employee Retirement Income Security Act
of 1974 is amended--
(A) by inserting ``and part 5 (relating to administration
and enforcement)'' before the period at the end, and
(B) by adding at the end the following new sentence: ``Such
provisions shall apply to such accounts and annuities in a
manner similar to their application to a simplified employee
pension under section 408(k) of the Internal Revenue Code of
1986.''.
(j) Amendments Relating to Section 611 of the Act.--
(1) Section 408(k) is amended--
(A) in paragraph (2)(C) by striking ``$300'' and inserting
``$450'', and
(B) in paragraph (8) by striking ``$300'' both places it
appears and inserting ``$450''.
(2) Section 409(o)(1)(C)(ii) is amended--
(A) by striking ``$500,000'' both places it appears and
inserting ``$800,000'', and
(B) by striking ``$100,000'' and inserting ``$160,000''.
(3) Section 611(i) of the Economic Growth and Tax Relief
Reconciliation Act of 2001 is amended by adding at the end
the following new paragraph:
``(3) Special rule.--In the case of plan that, on June 7,
2001, incorporated by reference the limitation of section
415(b)(1)(A) of the Internal Revenue Code of 1986, section
411(d)(6) of such Code and section 204(g)(1) of the Employee
Retirement Income Security Act of 1974 do not apply to a plan
amendment that--
``(A) is adopted on or before June 30, 2002,
``(B) reduces benefits to the level that would have applied
without regard to the amendments made by subsection (a) of
this section, and
``(C) is effective no earlier than the years described in
paragraph (2).''.
(k) Amendments Relating to Section 613 of the Act.--
(1) Section 416(c)(1)(C)(iii) is amended by striking
``Exception for frozen plan'' and inserting ``Exception for
plan under which no key employee (or former key employee)
benefits for plan year''.
(2) Section 416(g)(3)(B) is amended by striking
``separation from service'' and inserting ``severance from
employment''.
(l) Amendments Relating to Sections 614 and 616 of the
Act.--
(1) Section 404(a)(12) is amended by striking ``(9),'' and
inserting ``(9) and subsection (h)(1)(C),''.
(2) Section 404(n) is amended by striking ``subsection
(a),'' and inserting ``subsection (a) or paragraph (1)(C) of
subsection (h)''.
(3) Section 402(h)(2)(A) is amended by striking ``15
percent'' and inserting ``25 percent''.
(4) Section 404(a)(7)(C) is amended to read as follows:
``(C) Paragraph not to apply in certain cases.--
``(i) Beneficiary test.--This paragraph shall not have the
effect of reducing the amount otherwise deductible under
paragraphs (1), (2), and (3), if no employee is a beneficiary
under more than 1 trust or under a trust and an annuity plan.
``(ii) Elective deferrals.--If, in connection with 1 or
more defined contribution plans and 1 or more defined benefit
plans, no amounts (other than elective deferrals (as defined
in section 402(g)(3))) are contributed to any of the defined
contribution plans for the taxable year, then subparagraph
(A) shall not apply with respect to any of such defined
contribution plans and defined benefit plans.''.
(m) Amendment Relating to Section 618 of the Act.--Section
25B(d)(2)(A) is amended to read as follows:
``(A) In general.--The qualified retirement savings
contributions determined under paragraph (1) shall be reduced
(but not below zero) by the aggregate distributions received
by the individual during the testing period from any entity
of a type to which contributions under paragraph (1) may be
made. The preceding sentence shall not apply to the portion
of any distribution which is not includible in gross income
by reason of a trustee-to-trustee transfer or a rollover
distribution.''.
(n) Amendments Relating to Section 619 of the Act.--
(1) Section 45E(e)(1) is amended by striking ``(n)'' and
inserting ``(m)''.
(2) Section 619(d) of the Economic Growth and Tax Relief
Reconciliation Act of 2001 is amended by striking
``established'' and inserting ``first effective''.
(o) Amendments Relating to Section 631 of the Act.--
(1) Section 402(g)(1) is amended by adding at the end the
following:
``(C) Catch-up contributions.--In addition to subparagraph
(A), in the case of an eligible participant (as defined in
section 414(v)), gross income shall not include elective
deferrals in excess of the applicable dollar amount under
subparagraph (B) to the extent that the amount of such
elective deferrals does not exceed the applicable dollar
amount under section 414(v)(2)(B)(i) for the taxable year
(without regard to the treatment of the elective deferrals by
an applicable employer plan under section 414(v)).''.
(2) Section 401(a)(30) is amended by striking ``402(g)(1)''
and inserting ``402(g)(1)(A)''.
(3) Section 414(v)(2) is amended by adding at the end the
following:
``(D) Aggregation of plans.--For purposes of this
paragraph, plans described in clauses (i), (ii), and (iv) of
paragraph (6)(A) that are maintained by the same employer (as
determined under subsection (b), (c), (m) or (o)) shall be
treated as a single plan, and plans described in clause (iii)
of paragraph (6)(A) that are maintained by the same employer
shall be treated as a single plan.''.
(4) Section 414(v)(3)(A)(i) is amended by striking
``section 402(g), 402(h), 403(b), 404(a), 404(h), 408(k),
408(p), 415, or 457'' and inserting ``section 401(a)(30),
402(h), 403(b), 408, 415(c), and 457(b)(2) (determined
without regard to section 457(b)(3))''.
(5) Section 414(v)(3)(B) is amended by striking ``section
401(a)(4), 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12),
403(b)(12), 408(k), 408(p), 408B, 410(b), or 416'' and
inserting ``section 401(a)(4), 401(k)(3), 401(k)(11),
403(b)(12), 408(k), 410(b), or 416''.
(6) Section 414(v)(4)(B) is amended by inserting before the
period at the end the following: ``, except that a plan
described in clause (i) of section 410(b)(6)(C) shall not be
treated as a plan of the employer until the expiration of the
transition period with respect to such plan (as determined
under clause (ii) of such section)''.
(7) Section 414(v)(5) is amended--
(A) by striking ``, with respect to any plan year,'' in the
matter preceding subparagraph (A),
(B) by amending subparagraph (A) to read as follows:
``(A) who would attain age 50 by the end of the taxable
year,'', and
(C) in subparagraph (B) by striking ``plan year'' and
inserting ``plan (or other applicable) year''.
(8) Section 414(v)(6)(C) is amended to read as follows:
``(C) Exception for section 457 plans.--This subsection
shall not apply to a participant for any year for which a
higher limitation applies to the participant under section
457(b)(3).''.
(9) Section 457(e) is amended by adding at the end the
following new paragraph:
``(18) Coordination with catch-up contributions for
individuals age 50 or older.-- In the case of an individual
who is an eligible participant (as defined by section 414(v))
and who is a participant in an eligible deferred compensation
plan of an employer described in paragraph (1)(A),
subsections (b)(3) and (c) shall be applied by substituting
for the amount otherwise determined under the applicable
subsection the greater of--
``(A) the sum of--
``(i) the plan ceiling established for purposes of
subsection (b)(2) (without regard to subsection (b)(3)), plus
``(ii) the applicable dollar amount for the taxable year
determined under section 414(v)(2)(B)(i), or
``(B) the amount determined under the applicable subsection
(without regard to this paragraph).''.
(p) Amendments Relating to Section 632 of the Act.--
(1) Section 403(b)(1) is amended in the matter following
subparagraph (E) by striking ``then amounts contributed'' and
all that follows and inserting the following:
``then contributions and other additions by such employer
for such annuity contract shall be excluded from the gross
income of the employee for the taxable year to the extent
that the aggregate of such contributions and additions (when
expressed as an annual addition (within the meaning of
section 415(c)(2))) does not exceed the applicable limit
under section 415. The amount actually
[[Page H754]]
distributed to any distributee under such contract shall be
taxable to the distributee (in the year in which so
distributed) under section 72 (relating to annuities). For
purposes of applying the rules of this subsection to
contributions and other additions by an employer for a
taxable year, amounts transferred to a contract described in
this paragraph by reason of a rollover contribution described
in paragraph (8) of this subsection or section
408(d)(3)(A)(ii) shall not be considered contributed by such
employer.''.
(2) Section 403(b) is amended by striking paragraph (6).
(3) Section 403(b)(3) is amended--
(A) in the first sentence by inserting the following before
the period at the end: ``, and which precedes the taxable
year by no more than five years'', and
(B) in the second sentence by striking ``or any amount
received by a former employee after the fifth taxable year
following the taxable year in which such employee was
terminated''.
(4) Section 415(c)(7) is amended to read as follows:
``(7) Special rules relating to church plans.--
``(A) Alternative contribution limitation.--
``(i) In general.--Notwithstanding any other provision of
this subsection, at the election of a participant who is an
employee of a church or a convention or association of
churches, including an organization described in section
414(e)(3)(B)(ii), contributions and other additions for an
annuity contract or retirement income account described in
section 403(b) with respect to such participant, when
expressed as an annual addition to such participant's
account, shall be treated as not exceeding the limitation of
paragraph (1) if such annual addition is not in excess of
$10,000.
``(ii) $40,000 aggregate limitation.--The total amount of
additions with respect to any participant which may be taken
into account for purposes of this subparagraph for all years
may not exceed $40,000.
``(B) Number of years of service for duly ordained,
commissioned, or licensed ministers or lay employees.--For
purposes of this paragraph--
``(i) all years of service by--
``(I) a duly ordained, commissioned, or licensed minister
of a church, or
``(II) a lay person,
as an employee of a church, a convention or association of
churches, including an organization described in section
414(e)(3)(B)(ii), shall be considered as years of service for
1 employer, and
``(ii) all amounts contributed for annuity contracts by
each such church (or convention or association of churches)
or such organization during such years for such minister or
lay person shall be considered to have been contributed by 1
employer.
``(C) Foreign missionaries.--In the case of any individual
described in subparagraph (D) performing services outside the
United States, contributions and other additions for an
annuity contract or retirement income account described in
section 403(b) with respect to such employee, when expressed
as an annual addition to such employee's account, shall not
be treated as exceeding the limitation of paragraph (1) if
such annual addition is not in excess of the greater of
$3,000 or the employee's includible compensation determined
under section 403(b)(3).
``(D) Annual addition.--For purposes of this paragraph, the
term `annual addition' has the meaning given such term by
paragraph (2).
``(E) Church, convention or association of churches.--For
purposes of this paragraph, the terms `church' and
`convention or association of churches' have the same meaning
as when used in section 414(e).''.
(5) Section 457(e)(5) is amended to read as follows:
``(5) Includible compensation.--The term `includible
compensation' has the meaning given to the term
`participant's compensation' by section 415(c)(3).''.
(6) Section 402(g)(7)(B) is amended by striking ``2001.''
and inserting ``2001).''.
(q) Amendments Relating to Section 643 of the Act.--
(1) Section 401(a)(31)(C)(i) is amended by inserting ``is a
qualified trust which is part of a plan which is a defined
contribution plan and'' before ``agrees''.
(2) Section 402(c)(2) is amended by adding at the end the
following flush sentence:
``In the case of a transfer described in subparagraph (A) or
(B), the amount transferred shall be treated as consisting
first of the portion of such distribution that is includible
in gross income (determined without regard to paragraph
(1)).''.
(r) Amendments Relating to Section 648 of the Act.--
(1) Section 417(e) is amended--
(A) in paragraph (1) by striking ``exceed the dollar limit
under section 411(a)(11)(A)'' and inserting ``exceed the
amount that can be distributed without the participant's
consent under section 411(a)(11)'', and
(B) in paragraph (2)(A) by striking ``exceeds the dollar
limit under section 411(a)(11)(A)'' and inserting ``exceeds
the amount that can be distributed without the participant's
consent under section 411(a)(11)''.
(2) Section 205(g) of the Employee Retirement Income
Security Act of 1974 is amended--
(A) in paragraph (1) by striking ``exceed the dollar limit
under section 203(e)(1)'' and inserting ``exceed the amount
that can be distributed without the participant's consent
under section 203(e)'', and
(B) in paragraph (2)(A) by striking ``exceeds the dollar
limit under section 203(e)(1)'' and inserting ``exceeds the
amount that can be distributed without the participant's
consent under section 203(e)''.
(s) Amendment Relating to Section 652 of the Act.--Section
404(a)(1)(D)(iv) is amended by striking ``Plans maintained by
professional service employers'' and inserting ``Special rule
for terminating plans''.
(t) Amendments Relating to Section 657 of the Act.--Section
404(c)(3) of the Employee Retirement Income Security Act of
1974 is amended--
(1) by striking ``the earlier of'' in subparagraph (A) the
second place it appears, and
(2) by striking ``if the transfer'' and inserting ``a
transfer that''.
(u) Amendments Relating to Section 659 of the Act.--
(1) Section 4980F is amended--
(A) in subsection (e)(1) by striking ``written notice'' and
inserting ``the notice described in paragraph (2)'',
(B) by amending subsection (f)(2)(A) to read as follows:
``(A) any defined benefit plan described in section 401(a)
which includes a trust exempt from tax under section 501(a),
or'', and
(C) in subsection (f)(3) by striking ``significantly'' both
places it appears.
(2) Section 204(h)(9) of the Employee Retirement Income
Security Act of 1974 is amended by striking ``significantly''
both places it appears.
(3) Section 659(c)(3)(B) of the Economic Growth and Tax
Relief Reconciliation Act of 2001 is amended by striking
``(or'' and inserting ``(and''.
(v) Amendments Relating to Section 661 of the Act.--
(1) Section 412(c)(9)(B) is amended--
(A) in clause (ii) by striking ``125 percent'' and
inserting ``100 percent'', and
(B) by adding at the end the following new clause:
``(iv) Limitation.--A change in funding method to use a
prior year valuation, as provided in clause (ii), may not be
made unless as of the valuation date within the prior plan
year, the value of the assets of the plan are not less than
125 percent of the plan's current liability (as defined in
paragraph (7)(B)).''.
(2) Section 302(c)(9)(B) of the Employee Retirement Income
Security Act of 1974 is amended--
(A) in clause (ii) by striking ``125 percent'' and
inserting ``100 percent'', and
(B) by adding at the end the following new clause:
``(iv) A change in funding method to use a prior year
valuation, as provided in clause (ii), may not be made unless
as of the valuation date within the prior plan year, the
value of the assets of the plan are not less than 125 percent
of the plan's current liability (as defined in paragraph
(7)(B)).''.
(w) Amendments Relating to Section 662 of the Act.--
(1) Section 404(k) is amended--
(A) in paragraph (1) by striking ``during the taxable
year'',
(B) in paragraph (2)(B) by striking ``(A)(iii)'' and
inserting ``(A)(iv)'',
(C) in paragraph (4)(B) by striking ``(iii)'' and inserting
``(iv)'', and
(D) by redesignating subparagraph (B) of paragraph (4) (as
amended by subparagraph (C)) as subparagraph (C) of paragraph
(4) and by inserting after subparagraph (A) the following new
subparagraph:
``(B) Reinvestment dividends.--For purposes of subparagraph
(A), an applicable dividend reinvested pursuant to clause
(iii)(II) of paragraph (2)(A) shall be treated as paid in the
taxable year of the corporation in which such dividend is
reinvested in qualifying employer securities or in which the
election under clause (iii) of paragraph (2)(A) is made,
whichever is later.''.
(2) Section 404(k) is amended by adding at the end the
following new paragraph:
``(7) Full vesting.--In accordance with section 411, an
applicable dividend described in clause (iii)(II) of
paragraph (2)(A) shall be subject to the requirements of
section 411(a)(1).''.
(x) Effective Date.--Except as provided in subsection (c),
the amendments made by this section shall take effect as if
included in the provisions of the Economic Growth and Tax
Relief Reconciliation Act of 2001 to which they relate.
SEC. 412. AMENDMENTS RELATED TO COMMUNITY RENEWAL TAX RELIEF
ACT OF 2000.
(a) Amendment Related to Section 101 of the Act.--Section
469(i)(3)(E) is amended by striking clauses (ii), (iii), and
(iv) and inserting the following:
``(ii) second to the portion of such loss to which
subparagraph (C) applies,
``(iii) third to the portion of the passive activity credit
to which subparagraph (B) or (D) does not apply,
``(iv) fourth to the portion of such credit to which
subparagraph (B) applies, and''.
(b) Amendment Related to Section 306 of the Act.--Section
151(c)(6)(C) is amended--
(1) by striking ``for earned income credit.--For purposes
of section 32, an'' and inserting ``for principal place of
abode requirements.--An'', and
(2) by striking ``requirement of section 32(c)(3)(A)(ii)''
and inserting ``principal place of abode requirements of
section 2(a)(1)(B), section 2(b)(1)(A), and section
32(c)(3)(A)(ii)''.
[[Page H755]]
(c) Amendment Related to Section 309 of the Act.--
Subparagraph (A) of section 358(h)(1) is amended to read as
follows:
``(A) which is assumed by another person as part of the
exchange, and''.
(d) Amendments Related to Section 401 of the Act.--
(1)(A) Section 1234A is amended by inserting ``or'' after
the comma at the end of paragraph (1), by striking ``or'' at
the end of paragraph (2), and by striking paragraph (3).
(B)(i) Section 1234B is amended in subsection (a)(1) and in
subsection (b) by striking ``sale or exchange'' the first
place it appears in each subsection and inserting ``sale,
exchange, or termination''.
(ii) Section 1234B is amended by adding at the end the
following new subsection:
``(f) Cross Reference.--
``For special rules relating to dealer securities futures contracts,
see section 1256.''
(2) Section 1091(e) is amended--
(A) in the heading, by striking ``Securities.--'' and
inserting ``Securities and Securities Futures Contracts To
Sell.--'',
(B) by inserting after ``closing of a short sale of'' the
following: ``(or the sale, exchange, or termination of a
securities futures contract to sell)'',
(C) in paragraph (2), by inserting after ``short sale of''
the following: ``(or securities futures contracts to sell)'',
and
(D) by adding at the end the following:
``For purposes of this subsection, the term `securities
futures contract' has the meaning provided by section
1234B(c).''.
(3)(A) Section 1233(e)(2) is amended by striking ``and'' at
the end of subparagraph (C), by striking the period and
inserting ``; and'' at the end of subparagraph (D), and
inserting after subparagraph (D) the following:
``(E) entering into a securities futures contract (as so
defined) to sell shall be considered to be a short sale, and
the settlement of such contract shall be considered to be the
closing of such short sale.''.
(B) Section 1234B(b) is amended by inserting after ``or
this section,'' the following: ``or in section 1233,''
(e) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Community Renewal Tax Relief Act of 2000 to which they
relate.
SEC. 413. AMENDMENTS RELATED TO THE TAX RELIEF EXTENSION ACT
OF 1999.
(a) Amendments Related to Section 545 of the Act.--Section
857(b)(7) is amended--
(1) in clause (i) of subparagraph (B), by striking ``the
amount of which'' and inserting ``to the extent the amount of
the rents'', and
(2) in subparagraph (C), by striking ``if the amount'' and
inserting ``to the extent the amount''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 545 of the Tax
Relief Extension Act of 1999.
SEC. 414. AMENDMENTS RELATED TO THE TAXPAYER RELIEF ACT OF
1997.
(a) Amendments Related to Section 311 of the Act.--Section
311(e) of the Taxpayer Relief Act of 1997 (Public Law 105-34;
111 Stat. 836) is amended--
(1) in paragraph (2)(A), by striking ``recognized'' and
inserting ``included in gross income'', and
(2) by adding at the end the following new paragraph:
``(5) Disposition of interest in passive activity.--Section
469(g)(1)(A) of the Internal Revenue Code of 1986 shall not
apply by reason of an election made under paragraph (1).''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 311 of the
Taxpayer Relief Act of 1997.
SEC. 415. AMENDMENT RELATED TO THE BALANCED BUDGET ACT OF
1997.
(a) Amendment Related to Section 4006 of the Act.--Section
26(b)(2) is amended by striking ``and'' at the end of
subparagraph (P), by striking the period and inserting ``,
and'' at the end of subparagraph (Q), and by adding at the
end the following new subparagraph:
``(R) section 138(c)(2) (relating to penalty for
distributions from Medicare+Choice MSA not used for qualified
medical expenses if minimum balance not maintained).''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 4006 of the
Balanced Budget Act of 1997.
SEC. 416. OTHER TECHNICAL CORRECTIONS.
(a) Coordination of Advanced Payments of Earned Income
Credit.--
(1) Section 32(g)(2) is amended by striking ``subpart'' and
inserting ``part''.
(2) The amendment made by this subsection shall take effect
as if included in section 474 of the Tax Reform Act of 1984.
(b) Special Rule Related to Wash Sale Losses.--
(1) Section 1256(f) is amended by adding at the end the
following new paragraph:
``(5) Special rule related to losses.--Section 1091
(relating to loss from wash sales of stock or securities)
shall not apply to any loss taken into account by reason of
paragraph (1) of subsection (a).''.
(2) The amendment made by this subsection shall take effect
as if included in section 5075 of the Technical and
Miscellaneous Revenue Act of 1988.
(c) Disclosure by Social Security Administration to Federal
Child Support Agencies.--
(1) Section 6103(l)(8) is amended--
(A) in the heading, by striking ``state and local'' and
inserting ``federal, state, and local'', and
(B) in subparagraph (A), by inserting ``Federal or'' before
``State or local''.
(2) The amendments made by this subsection shall take
effect on the date of the enactment of this Act.
(d) Treatment of Settlements Under Partnership Audit
Rules.--
(1) The following provisions are each amended by inserting
``or the Attorney General (or his delegate)'' after
``Secretary'' each place it appears:
(A) Paragraphs (1) and (2) of section 6224(c).
(B) Section 6229(f)(2).
(C) Section 6231(b)(1)(C).
(D) Section 6234(g)(4)(A).
(2) The amendments made by this subsection shall apply with
respect to settlement agreements entered into after the date
of the enactment of this Act.
(e) Amendment Related to Procedure and Administration.--
(1) Section 6331(k)(3) (relating to no levy while certain
offers pending or installment agreement pending or in effect)
is amended to read as follows:
``(3) Certain rules to apply.--Rules similar to the rules
of--
``(A) paragraphs (3) and (4) of subsection (i), and
``(B) except in the case of paragraph (2)(C), paragraph (5)
of subsection (i),
shall apply for purposes of this subsection.''.
(2) The amendment made by this subsection shall take effect
on the date of the enactment of this Act.
(f) Modified Endowment Contracts.--Paragraph (2) of section
318(a) of the Community Renewal Tax Relief Act of 2000 (114
Stat. 2763A-645) is repealed, and clause (ii) of section
7702A(c)(3)(A) shall read and be applied as if the amendment
made by such paragraph had not been enacted.
SEC. 417. CLERICAL AMENDMENTS.
(1) The subsection (g) of section 25B that relates to
termination is redesignated as subsection (h).
(2) The second sentence of section 42(h)(3)(C) is amended
by striking ``the amounts described in'' and all that follows
through the period and inserting ``the amounts described in
clauses (ii) through (iv) over the aggregate housing credit
dollar amount allocated for such year.''
(3) Clause (ii) of section 42(m)(1)(B) is amended by
striking the second ``and'' at the end of subclause (II) and
by inserting ``and'' at the end of subclause (III).
(4) Section 51A(c)(1) is amended by striking ``51(d)(10)''
and inserting ``51(d)(11)''.
(5) The flush sentence at the end of clause (ii) of section
56(a)(1)(A) is amended by striking ``such 1250'' and
inserting ``such section 1250''.
(6) Section 151(c)(6)(B)(iii) is amended by inserting
``as'' before ``such terms''.
(7) Section 170(e)(6)(B)(i)(III) is amended by striking
``2000,'' and inserting ``2000),''.
(8) Section 172(b)(1)(F)(i) is amended--
(A) by striking ``3 years'' and inserting ``3 taxable
years'', and
(B) by striking ``2 years'' and inserting ``2 taxable
years''.
(9) Section 351(h)(1) is amended by inserting a comma after
``liability''.
(10) Section 475(g)(3) is amended by striking ``sections''
and inserting ``section''.
(11) Section 529(e)(3)(B)(i) is amended by striking
``subsection (b)(7)'' and inserting ``subsection (b)(6)''.
(12) Section 741 is amended by striking ``which have
appreciated substantially in value''.
(13) Section 857(b)(7)(B)(i) is amended by striking
``subsection 856(d)'' and inserting ``section 856(d)''.
(14) Subparagraph (B) of section 943(e)(4) is amended by
aligning the left margin of the flush language with
subparagraph (A).
(15) Subparagraph (B) of section 995(b)(3) is amended by
striking ``International Security Assistance and Arms Export
Control Act of 1976'' and inserting ``Arms Export Control
Act''.
(16) Section 1394(c)(2) is amended by striking
``subparagraph (A)'' and inserting ``paragraph (1)''.
(17)(A) The section heading for section 4980E is amended to
read as follows:
``SEC. 4980E. FAILURE OF EMPLOYER TO MAKE COMPARABLE ARCHER
MSA CONTRIBUTIONS.''.
(B) The item relating to section 4980E in the table of
sections for chapter 43 is amended to read as follows:
``Sec. 4980E. Failure of employer to make comparable Archer MSA
contributions.''.
(18) Section 6105(c)(1) is amended by striking ``any'' in
subparagraphs (C) and (E).
(19)(A) Section 6227(d) is amended by striking ``subsection
(b)'' and inserting ``subsection (c)''.
(B) Section 6228 is amended--
(i) in subsection (a)(1), by striking ``subsection (b) of
section 6227'' and inserting ``subsection (c) of section
6227'',
(ii) in subsection (a)(3)(A), by striking ``subsection (b)
of'', and
(iii) in subsections (b)(1) and (b)(2)(A), by striking
``subsection (c) of section 6227'' and inserting ``subsection
(d) of section 6227''.
(C) Section 6231(b)(2)(B)(i) is amended by striking
``section 6227(c)'' and inserting ``section 6227(d)''.
(20) Section 1221(b)(1)(B)(i) is amended by striking
``1256(b))'' and inserting ``1256(b)))''.
[[Page H756]]
(21) Section 159 of the Community Renewal Tax Relief Act of
2000 (114 Stat. 2763A-624) is amended by striking
``fuctions'' and inserting ``functions''.
(22) The amendment to section 170(e)(6)(B)(iv) made by
section 165(b)(1) of the Community Renewal Tax Relief Act of
2000 (114 Stat. 2763A-626) shall be applied as if it struck
``in any of the grades K-12''.
(23) Section 618(b)(2) of the Economic Growth and Tax
Relief Reconciliation Act of 2001 (Public Law 107-16; 115
Stat. 108) is amended--
(A) in subparagraph (A) by striking ``203(d)'' and
inserting ``202(f)'', and
(B) in subparagraphs (C), (D), and (E) by striking ``203''
and inserting ``202(f)''.
(24)(A) Section 525 of the Ticket to Work and Work
Incentives Improvement Act of 1999 (Public Law 106-170; 113
Stat. 1928) is amended by striking ``7200'' and inserting
``7201''.
(B) Section 532(c)(2) of such Act (113 Stat. 1930) is
amended--
(i) in subparagraph (D), by striking ``341(d)(3)'' and
inserting ``341(d)'', and
(ii) in subparagraph (Q), by striking ``954(c)(1)(B)(iii)
and inserting ``954(c)(1)(B)''.
SEC. 418. ADDITIONAL CORRECTIONS.
(a) Amendments Related to Section 202 of the Economic
Growth and Tax Relief Reconciliation Act of 2001.--
(1) Subsection (h) of section 23 is amended--
(A) by striking ``subsection (a)(1)(B)'' and inserting
``subsection (a)(3)'', and
(B) by adding at the end the following new flush sentence:
``If any amount as increased under the preceding sentence is
not a multiple of $10, such amount shall be rounded to the
nearest multiple of $10.''
(2) Subsection (f) of section 137 is amended by adding at
the end the following new flush sentence:
``If any amount as increased under the preceding sentence is
not a multiple of $10, such amount shall be rounded to the
nearest multiple of $10.''
(b) Amendments Related to Section 204 of the Economic
Growth and Tax Relief Reconciliation Act of 2001.--Section
21(d)(2) is amended--
(1) in subparagraph (A) by striking ``$200'' and inserting
``$250'', and
(2) in subparagraph (B) by striking ``$400'' and inserting
``$500''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Economic Growth and Tax Relief Reconciliation Act of 2001 to
which they relate.
TITLE V--SOCIAL SECURITY HELD HARMLESS; BUDGETARY TREATMENT OF ACT
SEC. 501. NO IMPACT ON SOCIAL SECURITY TRUST FUNDS.
(a) In General.--Nothing in this Act (or an amendment made
by this Act) shall be construed to alter or amend title II of
the Social Security Act (or any regulation promulgated under
that Act).
(b) Transfers.--
(1) Estimate of secretary.--The Secretary of the Treasury
shall annually estimate the impact that the enactment of this
Act has on the income and balances of the trust funds
established under section 201 of the Social Security Act (42
U.S.C. 401).
(2) Transfer of funds.--If, under paragraph (1), the
Secretary of the Treasury estimates that the enactment of
this Act has a negative impact on the income and balances of
the trust funds established under section 201 of the Social
Security Act (42 U.S.C. 401), the Secretary shall transfer,
not less frequently than quarterly, from the general revenues
of the Federal Government an amount sufficient so as to
ensure that the income and balances of such trust funds are
not reduced as a result of the enactment of this Act.
SEC. 502. EMERGENCY DESIGNATION.
Congress designates as emergency requirements pursuant to
section 252(e) of the Balanced Budget and Emergency Deficit
Control Act of 1985 the following amounts:
(1) An amount equal to the amount by which revenues are
reduced by this Act below the recommended levels of Federal
revenues for fiscal year 2002, the total of fiscal years 2002
through 2006, and the total of fiscal years 2002 through
2011, provided in the conference report accompanying H. Con.
Res. 83, the concurrent resolution on the budget for fiscal
year 2002.
(2) Amounts equal to the amounts of new budget authority
and outlays provided in this Act in excess of the allocations
under section 302(a) of the Congressional Budget Act of 1974
to the Committee on Finance of the Senate for fiscal year
2002, the total of fiscal years 2002 through 2006, and the
total of fiscal years 2002 through 2011.
TITLE VI--EXTENSIONS OF CERTAIN EXPIRING PROVISIONS
SEC. 601. ALLOWANCE OF NONREFUNDABLE PERSONAL CREDITS AGAINST
REGULAR AND MINIMUM TAX LIABILITY.
(a) In General.--Paragraph (2) of section 26(a) is
amended--
(1) by striking ``rule for 2000 and 2001.--'' and inserting
``rule for 2000, 2001, 2002, and 2003.--'', and
(2) by striking ``during 2000 or 2001,'' and inserting
``during 2000, 2001, 2002, or 2003,''.
(b) Conforming Amendments.--
(1) Section 904(h) is amended by striking ``during 2000 or
2001'' and inserting ``during 2000, 2001, 2002, or 2003''.
(2) The amendments made by sections 201(b), 202(f), and
618(b) of the Economic Growth and Tax Relief Reconciliation
Act of 2001 shall not apply to taxable years beginning during
2002 and 2003.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 602. CREDIT FOR QUALIFIED ELECTRIC VEHICLES.
(a) In General.--Section 30 is amended--
(1) in subsection (b)(2)--
(A) by striking ``December 31, 2001,'' and inserting
``December 31, 2003,'', and
(B) in subparagraphs (A), (B), and (C), by striking
``2002'', ``2003'', and ``2004'', respectively, and inserting
``2004'', ``2005'', and ``2006'', respectively, and
(2) in subsection (e), by striking ``December 31, 2004''
and inserting ``December 31, 2006''.
(b) Conforming Amendments.--
(1) Subparagraph (C) of section 280F(a)(1) is amended by
adding at the end the following new clause:
``(iii) Application of subparagraph.--This subparagraph
shall apply to property placed in service after August 5,
1997, and before January 1, 2007.''.
(2) Subsection (b) of section 971 of the Taxpayer Relief
Act of 1997 is amended by striking ``and before January 1,
2005''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2001.
SEC. 603. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN
RENEWABLE RESOURCES.
(a) In General.--Subparagraphs (A), (B), and (C) of section
45(c)(3) are both amended by striking ``2002'' and inserting
``2004''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to facilities placed in service after December
31, 2001.
SEC. 604. WORK OPPORTUNITY CREDIT.
(a) In General.--Subparagraph (B) of section 51(c)(4) is
amended by striking ``2001'' and inserting ``2003''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals who begin work for the employer
after December 31, 2001.
SEC. 605. WELFARE-TO-WORK CREDIT.
(a) In General.--Subsection (f) of section 51A is amended
by striking ``2001'' and inserting ``2003''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to individuals who begin work for the employer
after December 31, 2001.
SEC. 606. DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN
REFUELING PROPERTY.
(a) In General.--Section 179A is amended--
(1) in subsection (b)(1)(B)--
(A) by striking ``December 31, 2001,'' and inserting
``December 31, 2003,'', and
(B) in clauses (i), (ii), and (iii), by striking ``2002'',
``2003'', and ``2004'', respectively, and inserting ``2004'',
``2005'', and ``2006'', respectively, and
(2) in subsection (f), by striking ``December 31, 2004''
and inserting ``December 31, 2006''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to property placed in service after December 31,
2001.
SEC. 607. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR
OIL AND NATURAL GAS PRODUCED FROM MARGINAL
PROPERTIES.
(a) In General.--Subparagraph (H) of section 613A(c)(6) is
amended by striking ``2002'' and inserting ``2004''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2001.
SEC. 608. QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) is
amended by striking ``2000, and 2001'' and inserting ``2000,
2001, 2002, and 2003''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 609. COVER OVER OF TAX ON DISTILLED SPIRITS.
(a) In General.--Paragraph (1) of section 7652(f) is
amended by striking ``January 1, 2002'' and inserting
``January 1, 2004''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to articles brought into the United States after
December 31, 2001.
SEC. 610. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO
MENTAL HEALTH BENEFITS.
(a) In General.--Subsection (f) of section 9812, as amended
by the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2002, is
amended to read as follows:
``(f) Application of Section.--This section shall not apply
to benefits for services furnished--
``(1) on or after September 30, 2001, and before January
10, 2002, and
``(2) after December 31, 2003.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to plan years beginning after December 31, 2000.
SEC. 611. TEMPORARY SPECIAL RULES FOR TAXATION OF LIFE
INSURANCE COMPANIES.
(a) Reduction in Mutual Life Insurance Company Deductions
Not To Apply in Certain Years.--Section 809 (relating to
reduction in certain deductions of material life insurance
companies) is amended by adding at the end the following:
[[Page H757]]
``(j) Differential Earnings Rate Treated as Zero for
Certain Years.--Notwithstanding subsection (c) or (f), the
differential earnings rate shall be treated as zero for
purposes of computing both the differential earnings amount
and the recomputed differential earnings amount for a mutual
life insurance company's taxable years beginning in 2001,
2002, or 2003.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2000.
SEC. 612. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) In General.--Paragraphs (2) and (3)(B) of section
220(i) (defining cut-off year) are each amended by striking
``2002'' each place it appears and inserting ``2003''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 220(j) is amended by striking
``1998, 1999, or 2001'' each place it appears and inserting
``1998, 1999, 2001, or 2002''.
(2) Subparagraph (A) of section 220(j)(4) is amended by
striking ``and 2001'' and inserting ``2001, and 2002''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2002.
SEC. 613. INCENTIVES FOR INDIAN EMPLOYMENT AND PROPERTY ON
INDIAN RESERVATIONS.
(a) Employment.--Subsection (f) of section 45A is amended
by striking ``December 31, 2003'' and inserting ``December
31, 2004''.
(b) Property.--Paragraph (8) of section 168(j) is amended
by striking ``December 31, 2003'' and inserting ``December
31, 2004''.
SEC. 614. SUBPART F EXEMPTION FOR ACTIVE FINANCING.
(a) In General.--
(1) Section 953(e)(10) is amended--
(A) by striking ``January 1, 2002'' and inserting ``January
1, 2007'', and
(B) by striking ``December 31, 2001'' and inserting
``December 31, 2006''.
(2) Section 954(h)(9) is amended by striking ``January 1,
2002'' and inserting ``January 1, 2007''.
(b) Life Insurance and Annuity Contracts.--
(1) In general.--Subparagraph (B) of section 954(i)(4) is
amended to read as follows:
``(B) Life insurance and annuity contracts.--
``(i) In general.--Except as provided in clause (ii), the
amount of the reserve of a qualifying insurance company or
qualifying insurance company branch for any life insurance or
annuity contract shall be equal to the greater of--
``(I) the net surrender value of such contract (as defined
in section 807(e)(1)(A)), or
``(II) the reserve determined under paragraph (5).
``(ii) Ruling request, etc.--The amount of the reserve
under clause (i) shall be the foreign statement reserve for
the contract (less any catastrophe, deficiency, equalization,
or similar reserves), if, pursuant to a ruling request
submitted by the taxpayer or as provided in published
guidance, the Secretary determines that the factors taken
into account in determining the foreign statement reserve
provide an appropriate means of measuring income.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.
SEC. 615. REPEAL OF REQUIREMENT FOR APPROVED DIESEL OR
KEROSENE TERMINALS.
(a) In General.--Subsection (e) of section 4101 is hereby
repealed.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 2002.
SEC. 616. REAUTHORIZATION OF TANF SUPPLEMENTAL GRANTS FOR
POPULATION INCREASES FOR FISCAL YEAR 2002.
Section 403(a)(3) of the Social Security Act (42 U.S.C.
603(a)(3)) is amended by adding at the end the following:
``(H) Reauthorization of grants for fiscal year 2002.--
Notwithstanding any other provision of this paragraph--
``(i) any State that was a qualifying State under this
paragraph for fiscal year 2001 or any prior fiscal year shall
be entitled to receive from the Secretary for fiscal year
2002 a grant in an amount equal to the amount required to be
paid to the State under this paragraph for the most recent
fiscal year in which the State was a qualifying State;
``(ii) subparagraph (G) shall be applied as if `2002' were
substituted for `2001'; and
``(iii) out of any money in the Treasury of the United
States not otherwise appropriated, there are appropriated for
fiscal year 2002 such sums as are necessary for grants under
this subparagraph.''.
SEC. 617. 1-YEAR EXTENSION OF CONTINGENCY FUND UNDER THE TANF
PROGRAM.
Section 403(b) of the Social Security Act (42 U.S.C.
603(b)) is amended--
(1) in paragraph (2), by striking ``and 2001'' and
inserting ``2001, and 2002''; and
(2) in paragraph (3)(C)(ii), by striking ``2001'' and
inserting ``2002''.
The SPEAKER pro tempore. Pursuant to House Resolution 360, the
gentleman from California (Mr. Thomas) and the gentleman from New York
(Mr. Rangel) each will control 30 minutes.
The Chair recognizes the gentleman from California (Mr. Thomas).
Mr. THOMAS. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, this morning one of the things that we really need to
establish in this package, that we hope the Senate will take up
relatively quickly and pass without trying to amend so that we can send
to the President a package which extends unemployment and which
produces a modest assistance, as Chairman Greenspan indicated, perhaps
a little bit of insurance to make sure that the economy moves forward.
One of the things that needs to be understood from the beginning is
this is not a stimulus package. When you have an economy that generates
$10 trillion a year, $41 billion over 10 years in no way can be called
a stimulus. For example, the underlying bill, H.R. 3090, which the
Senate amended and sent back to us which the House sent to the Senate
in October was a stimulus bill. It generated $160 billion worth of
assistance to individuals and to businesses over a 10-year period. The
other body killed that bill. The leadership over there decided that
they did not want a stimulus.
I will admit it took us a little while to fully appreciate the fact
that they did not want a stimulus package to help the economy recover.
We sent them three adjusted bills. We did not send the same thing each
time. We examined the package. We made adjustments. We searched
forever, as a governing majority is supposed to do, for something that
would reach agreement; and today we have in front of us what we believe
certainly should and hopefully will reach agreement.
Just several weeks ago, my colleagues on the other side of the aisle
were imploring us to just pass what the Senate sent us. To remind
Members of what it was the Senate sent us, it was naked, the most
minimal unemployment package, irreducibly minimum, and that is what the
Senate could do. And we were urged by our colleagues on the other side
of the aisle, why do we not take that up and pass it? That is all we
can do. That is all we should do, and we should do it now.
I am pleased to say that we are not just doing that. I think today
the House will pass a package which certainly cannot in any way be
called a stimulus but is certainly not the irreducible minimum, almost
the affront to Americans that was contained in the Senate-passed
package and which was urged to be adopted by us by our friends on the
other side of the aisle.
To give Members an idea of how a number of folks have not been able
to understand what is going on, I would offer today's Washington Post
which begins with the headline ``House GOP Relents In Fight Over
Stimulus.''
No, we are not relenting. We have conceded that the Senate leadership
has been able to kill stimulus. They have succeeded. So we are not
relenting. Ironically, it goes on in the very first paragraph that says
that the bill, that we have agreed to legislation ``that will focus
largely on new benefits for unemployed workers.'' Will focus largely on
benefits for unemployed workers.
The bill is $41 billion over 10 years. Over that 10-year period, out
of the $41 billion, $2.7 billion is for unemployed. The $38 billion
remainder is for reduction of taxes to small business, medium business,
job-creating provisions. And only the Washington Post could say that 7
percent of something is largely focused on. That shows you how far off
the Washington Post is.
It then goes on and says that the bill closely tracks a Senate
proposal to provide unemployment. No, it does not closely track a
Senate proposal. It is far better than the Senate proposal. The
proposal we have for unemployment benefits not only provides the 13
weeks and uses a trigger for those benefits lower than current law, but
it says if a State continues to match the 4 percent trigger rather than
the 5 plus trigger in the current law, the 4 percent is President
Bush's request to utilize as a trigger, and we thought that was
appropriate. But if you run out of your initial 13 weeks and your State
still has greater than 4 percent unemployment, there is an automatic
trigger of an additional 13 weeks; and if you run out of those 13 weeks
and your State finds itself above the 4 percent unemployment rate,
there is an automatic trigger, et cetera, et cetera, et cetera.
What we are trying to do is to make sure that the Senate cannot
continue
[[Page H758]]
to hold hostage unemployment insurance benefits for those who through
no fault of their own cannot find employment. We sent the Senate a
package in October, and here we are in March debating. Our hope is when
this passes by a large bipartisan vote the Senate will take this up and
send it to the President, because the House's unemployment proposal
says, once we do this, it is on automatic trigger. If the conditions
are there, it will be renewed automatically. The Senate does not do
that.
So how in the world somebody could say that this closely tracks the
Senate is beyond me. Of course, and unless what they want to do is to
make it look like the Republicans in the House have ``relented.''
Now, obviously, there is a motive for doing that. But, most
importantly, the motive should be that we help people in need, that we
make sure that we create a bridge. We do a modest insurance package for
growth in this economy so we can recover. I cannot believe that anyone
carried out the kind of stalling tactics that occurred over on the
Senate side in the hopes that the economy would stumble or that the
economy would not recover as rapidly as it otherwise would, and I hope
no one stands in the way of this modest package or amends it over in
the Senate to try to make a point from the leadership's side over in
the Senate that we want our fingerprints all over this or we want to
delay any longer.
The time for delay is over. The time for passage is here, today in
the House, tomorrow at the latest in the Senate, so that we can get
this measure to the President and let him sign it. It is about time.
Madam Speaker, I reserve the balance of my time.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore. The Chair would remind all Members that
during the course of this debate Members should refrain from
characterizing Senate action or inaction and should refrain from urging
Senate action.
Mr. RANGEL. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, let me take advantage of this rare opportunity when I
agree with the chairman of the Ways and Means Committee. I would like
to get his attention for a moment so that I give him his usual
opportunity to respond. I am so desperately trying so hard to get the
gentleman from California's (Mr. Thomas) attention. It is so difficult.
I just wanted the gentleman to know that I agree with him that the
Washington Post is in serious error in suggesting that the Republicans
in the House of Representatives have relented.
{time} 1115
The Republicans do not know how to relent. The hostages of those 8
million people who are unemployed and without health benefits have not
been freed completely by the Republican leadership. As the gentleman
pointed out, he could not resist putting tax benefits that in the first
3 years cost some $100 billion, or as the gentleman pointed out, a
projected $43 billion.
The glee that the gentleman takes in suggesting that we are only
providing $2.7 billion for the unemployed as opposed to the incentives
that we are paying for the corporate structure. No, he is not
relenting; he is responding to the outrage that has been felt by people
throughout this country that since 9-11 the gentleman has ignored the
people who are unemployed. The gentleman has taken their pain, their
misery, their loss of homes and jobs and dreams and tuition, and he has
put this into what the gentleman calls a stimulus package.
Now, the stimulus package always included not relieving pain for the
unemployed but always accelerating tax benefits for the rich, or
repealing the alternative minimum tax or something that had nothing to
do with those victims that were unemployed. So when my colleague
suggests that it is the other body that has loaded up the bill, what,
are we in Alice in Wonderland? Did we not just get a bill from them
passed by Republicans and Senators saying to just do employment
compensation? My colleague could not resist jumping on that with all of
the things that make the Republican Campaign Committee happy.
So I agree with the gentleman from California (Mr. Thomas), this is
not a stimulus package, nor should the unemployed be held hostage by
so-called stimulus tax cuts. The ratio of tax benefits to the
corporation and easing a little pain to the unemployed, my God, would
let us know there is not too much compassion here. Will we grab this
and run with it, even though it is not paid for? Well, it is paid for
out of the monies coming in from the Social Security Trust Fund, but we
do not have that many options, considering the box that the leadership
has placed us in as relates to the spend-down of the surplus.
So, let the record reflect that I agree with most all that the
gentleman has said. This is not a stimulus package. The GOP, as my
colleague likes it to be called, does not know how to relent. There is
an area of some tiny relief here for the unemployed. The gentleman had
to resist giving some decent health benefits to this, and the fact that
it is not paid for, so what else is new?
Madam Speaker, I ask unanimous consent to allow the gentleman from
California (Mr. Matsui) to manage the remainder of my time.
The SPEAKER pro tempore (Mrs. Emerson). Is there objection to the
request of the gentleman from New York?
There was no objection.
Mr. THOMAS. Madam Speaker, I yield myself such time as I may consume.
And if my colleague from New York would not rapidly leave the Chamber,
what I would have responded to him was that perhaps he forgets back in
September, on the trade adjustment assistance package, the House placed
more than $2 billion available for those individuals who lost their
jobs in relation to the tragic events of September 11. Notwithstanding
the fact it was on trade adjustment, we said that would be handled in
the same fashion.
When the gentleman talks about relieving the pain of the unemployed,
he focuses on unemployment payments, as though being more generous on
unemployment payments is how he relieves the pain of the unemployed.
What the President so eloquently said in his State of the Union was
that what this is all about is jobs. And the last time I checked, if we
want to be an employee, we need to have an employer.
What he calls benefits to the rich and the corporations, anybody
else, who understands how this economy works, would say we are trying
to create jobs. And when he says we do not have compassion for the
unemployed, this sounds like a repeat of the welfare debate when they
considered compassion holding people hostage to government payments.
That is compassion? We believe compassion is making sure the economy
grows so that people can have a job and have the dignity and respect of
having a job, instead of making sure that we tie them to unemployment
payments so we can show how compassionate we are in relieving the pain
of unemployment by giving them a government check.
I think that pretty well draws the line between the President and our
approach to trying to deal with these issues and our friends on the
other side of the aisle. They define compassion as a government check,
they define taking care of the pain of the unemployed by giving them
more government money, and we define it as growing the economy,
creating jobs and letting people have the dignity of work. That is real
compassion for those who, through no fault of their own, have no job at
the present time.
Madam Speaker, I reserve the balance of my time.
Mr. MATSUI. Madam Speaker, I yield myself such time as I may consume
to just point out to the Members that the gentleman from New York (Mr.
Rangel) is leaving not as a sign of discourtesy to the Chair, but he
has been summoned to the White House to talk about some of the New York
issues. He is meeting with the President. In fact, he is a little late
at this moment. So he does wish that people understand that he is
leaving for the purpose of meeting with the President.
Madam Speaker, I yield 2 minutes to the distinguished gentlewoman
from the State of Connecticut (Ms. DeLauro).
Ms. DeLAURO. Madam Speaker, at last, 6 months after the September 11
[[Page H759]]
attacks, with a damaged and already troubled economy, the House is
poised to extend unemployment benefits for workers in this great Nation
who have lost their jobs through no fault of their own. At last.
For 6 months, Democrats have stood firm on a plan that was one part
good economics and one part basic human decency. The Republican
leadership balked. They have equivocated, squirmed; and they have
shifted in their seats at the mere mention of passing a bill that
extended unemployment benefits and health care benefits for workers of
this country, something that this Nation has done historically in
difficult times in our country.
And they were opposed to doing this if the bill did not include
corporate tax handouts for the largest corporations, for the Enrons of
the world. Since that time, over a million and a half people have seen
their unemployment benefits expire. In fact, just yesterday the House
was ready to consider a fourth sham bill that again had no chance of
making it to the President's desk. And since that time, another 11,000
Americans have lost their benefits.
Well, my friends, time ran out on the Republican House leadership.
And just as we witnessed their misguided approach to airline security
last November, their stubborn effort to defy the will of the American
people has again ended in defeat; a defeat for the Republicans, but,
albeit belatedly, a victory for American workers.
Now, what we need to do is to undertake the effort to make sure that
those who have suffered unemployment and who have lost their health
benefits that what we will do is to work to make sure that we assist
them and our States to provide them with the opportunity to include
people who have lost their jobs and their health benefits to get those
benefits. It is about time.
Mr. THOMAS. Madam Speaker, it is my pleasure to yield 1 minute to the
gentleman from New York (Mr. Houghton), a valued member of the
Committee on Ways and Means.
Mr. HOUGHTON. Madam Speaker, first of all, I would like to thank the
gentleman from California (Mr. Thomas) for all the work he has done,
and I thank the gentleman from California (Mr. Matsui); but the
chairman of the committee has been extraordinary in hanging with this
program and trying to get something we could vote on.
Look, there are lots of different things, and I will not go through
the litany in terms of unemployment provisions and in terms of helping
small businesses, because the thing I would like to do is just say
thank the gentleman to the gentleman on behalf of New York, on behalf
of the liberty zone, on behalf of all those people who need your help.
And that is the only thing I have to say today.
Mr. MATSUI. Madam Speaker, I yield 2 minutes to the distinguished
gentlewoman from Ohio (Mrs. Jones).
Mrs. JONES of Ohio. Madam Speaker, today, we finally have an
opportunity to do something for the worker. I can remember back in
September talking about the airline security bill and talking about the
fact that many of my family members are employed in the airline
industry, my father having carried bags for United Airlines for some 38
years. And every time I go through that airport, I see these men who
have been carrying bags for years making $2 an hour, and unable to get
tips to supplement their families and help their families. But the
discussion kept going on: we are going to help the workers, we are
going to help the workers, we are going to help the workers. Well,
finally, we are doing that.
And unlike some who say that we as Democrats see compassion as an
unemployment check, I do not see compassion as an unemployment check. I
see compassion that we ought to exhibit all during this year and years
to come as Members of the House: compassion for affordable housing for
people who cannot afford housing, compassion for people who need health
care, who cannot afford a health care credit. Because if I do not have
any money, I cannot pay for health care and then get a credit. I see
compassion as giving opportunities for people to have a job at a living
wage and have a job where they can work and get a health care benefit
that they do not then have to pay for.
I understand compassion. I see compassion. And I am not going to give
support of business to the Republican Party, because Democrats support
business. I serve on the Committee on Small Business, and I am here to
help business. But we cannot help business and not help the workers who
help to build the business. I am glad for workers. Thank God we have
got unemployment compensation.
Mr. THOMAS. Madam Speaker, I yield myself such time as I may consume.
Ms. DUNN. Madam. Speaker, will the gentleman yield for a colloquy?
Mr. THOMAS. I yield to the gentlewoman from Washington.
Ms. DUNN. Madam Speaker, I appreciate this legislation. It is going
to do great things for the State of Washington, which is the second
highest in unemployment in the Nation right now.
Mr. Chairman, I want to clarify a couple of points, that dislocated
workers in Washington State will receive the following benefits in this
order:
First, the regular State benefits of up to 30 weeks; second, the
regular 50-50 shared Federal and State extended benefits up to 13
weeks, that the Governor can elect to suspend; third, the 13-week
extended benefits, fully paid for by the Federal Government; and,
fourth, States with high unemployment rates, like Washington State at
7.5 percent, would be eligible for an additional 13 weeks, fully paid
by the Federal Government; and lastly, fifth, once all these resources
are exhausted, displaced workers in Washington State will be eligible
to use state-funded benefits already available under State law. Is that
the gentleman's understanding?
Mr. THOMAS. Madam Speaker, reclaiming my time, I tell the gentlewoman
that that is my understanding. That is the way we intended to write the
legislation, and in conferring with the Department of Labor, they have
indicated to us that that is the appropriate interpretation. However,
we will insist on a letter from the Department of Labor assuring us
that that is in fact the way they will interpret the legislation.
Ms. DUNN. Madam Speaker, I thank the gentleman.
Mr. DICKS. Madam. Speaker, will the gentleman yield?
Mr. THOMAS. I yield to the gentleman from Washington.
Mr. DICKS. Madam Speaker, I want to compliment the chairman and my
colleague, the gentlewoman from Washington (Ms. Dunn), for their effort
here. This is a very important problem. The chairman was gracious in
working with us on the Trade Adjustment Assistance Act, and I want to
thank him for this effort here to clarify the law.
Mr. THOMAS. Once again reclaiming my time, Madam Speaker, I tell the
gentleman that our intent is to maximize the opportunities for those
who are unfortunately unemployed, not to create conflict; and we
believe we have done that.
{time} 1130
Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from
Indiana (Mr. Roemer).
(Mr. ROEMER asked and was given permission to revise and extend his
remarks.)
Mr. ROEMER. Madam Speaker, if we were playing a baseball game, it
would be three strikes and then out. This is not the third but the
fourth time that we have tried to do this bill in the right and the
balanced and the appropriate and the bipartisan way.
We finally have it right, and so we are playing by the House rules
that we can do it three or four or five times. We finally have balance
in this bill: Balance between helping our businesses in a tough time,
in a recession, maybe coming out of this recession slowly, and helping
them with a 30 percent first year depreciation bonus. Importantly, we
have help for our families, our unemployed, our children, people across
Indiana that have seen unemployment rates almost double over the past
year.
Madam Speaker, we have seen nationally the unemployment rate go to
7.9 million people, almost 2 million people more than a year ago. This
is important because the cost of this bill has come down, too. We are
coming out of the recession. Mr. Greenspan is saying good things about
recovery, and the price of this has gone down from $127 billion to $99
billion, to now $41 billion over 10 years. That is good for our budget.
It is good for our families.
[[Page H760]]
It is good for our businesses. We have arrived at the right balance.
Madam Speaker, I intend to vote for this bill. It will be a
bipartisan bill, and I am glad we finally have it right.
Mr. THOMAS. Madam Speaker, I yield 2 minutes to the gentleman from
Arizona (Mr. Hayworth), a valued member of the Committee on Ways and
Means; and, lest we forget, somebody who represents the world champions
in baseball, which was a point made by the previous speaker.
Mr. HAYWORTH. Madam Speaker, I listened with great interest to the
gentleman from Indiana who started with the point of gamesmanship. He
spoke about three strikes and being out. A more complete exposition on
the rules on baseball, four balls and one walks.
Sadly, there are some in this town who just walked away. One
definition of balance, to deprive the creation of job opportunity to
strike balance for unemployment checks, that type of false compassion.
Let me suggest, Madam Speaker, this is not a game. Those who will
come to this well and cry crocodile tears as to their compassion for
the unemployed are missing the boat.
Our President made the point, true compassion is not an unemployment
check, it is a paycheck from a job. When we turn our back on tax policy
that creates economic opportunities and jobs, in the unrealistic and
almost plaintive cry that somehow these are tax breaks for the rich,
they fail to understand.
Madam Speaker, there are many in Arizona and across America who grow
cynical with the shenanigans in Washington and grow cynical with those
who would put political career advancement in front of the needs of the
very people they purport to champion. Indeed, there are those in the
dominant media culture who almost cheerlead for that somewhat cockeyed
view of how to help people.
Good people can disagree, but once again we have taken a step today,
more modest, to help those who need help, people we could have helped
in October, in December, once again in December, and in February. At
long last, we will rally. How sad it is that we do not get balance for
economic opportunity at all, but we do take the steps necessary.
Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentlewoman from
California (Ms. Millender-McDonald).
Ms. MILLENDER-McDONALD. Madam Speaker, I thank the gentleman from
California (Mr. Matsui) and also the chairman for bringing this bill to
the floor, as well as the ranking member.
Madam Speaker, today we are considering amendments to H.R. 3090, the
Job Creation and Worker Assistance Act. As a ranking member of the
Subcommittee on Workforce, Empowerment and Government Programs, I
embrace this bill. However, I would have wanted to see more for small
businesses and more tax credits than what we have, especially for the
unemployed. I would like to have seen a more equitable bill, but this
bill that is under consideration is a drastic improvement over the
first bill that was introduced into the House.
The major improvement to the bill is an extension of unemployment
benefits for 13 weeks. I am sure unemployed workers throughout America
will be comforted by this good news. Further, the bill reauthorizes
TANF, the supplemental grant program and contingency fund, throughout
the end of 2002. For families that have endured tough economic times,
this reauthorization should provide some measure of relief.
I am also pleased to note that my colleagues in the House demonstrate
a compassion for the long-suffering victims affected by the events of
September 11 by including measures that provide temporary tax breaks
and incentives for reconstruction of the World Trade Center
neighborhood of New York City.
Madam Speaker, this is a bill that we can support. It does not have
all of the benefits that I would have wanted to see, but as the ranking
member of the Subcommittee on Workforce, Empowerment, and Government
Programs, I welcome this bill. After months of wrangling over the
economic stimulus bill, we have a bill that speaks to both business and
unemployed workers.
Mr. THOMAS. Madam Speaker, I yield 3 minutes to the gentleman from
Illinois (Mr. Weller).
(Mr. WELLER asked and was given permission to revise and extend his
remarks.)
Mr. WELLER. Madam Speaker, let me first begin by complimenting the
gentleman from California (Mr. Thomas) for his perseverance in working
to get this economy going again. Today, the fourth time, will be the
charm. I hope that the bipartisan support we are hearing for this
legislation to help unemployed workers, as well increase investment and
the creation of jobs, will go through the Senate and be signed into
law.
There is an interesting headline in the paper today, ``Congressional
Budget Office Predicts 2 Years of Surpluses, Credits Tax Rebate for
Rebound in Budget.'' The nonpartisan Congressional Budget Office gives
credit to the President's tax cut for the improved situation with our
budget, as well as the rebound we are beginning to see in this economy.
This legislation before us is important today. We have laid-off
workers. They are running out of unemployment benefits. We extend them.
The program that we have before us is better than what the other body
has suggested.
We also answer a very important question, and that is, what drove job
creation in the last decade? It was investment, investment in the
creation of jobs. For example, particularly in the technology and
telecommunications sector, a tremendous amount of investment in the
1990s drove the creation of two-thirds of the jobs, the new jobs in our
economy. That area has been hard hit by the recession we are currently
under.
Madam Speaker, there are two provisions in this legislation that are
tremendous incentives for investment and the creation of jobs: the
accelerated depreciation, a 30 percent expensing, what some call the
bonus depreciation. It is a tremendous incentive in the creation of
jobs. Some of us have auto manufacturers or pickup truck manufacturers.
Others have those that produce computers or telecommunications
equipment. When someone has an incentive to buy those type of assets,
there is a worker who manufactures that product, installs that product,
services that product, and there is a worker who operates that product.
The 30 percent expensing is a tremendous incentive for investment in
creation of jobs.
NOL carry-back will allow companies to go back 5 years if they are
losing money. The NOL carry-back is a tremendous incentive to invest in
jobs. Companies are losing money. They need an opportunity to create
capital that they can invest and keep their companies moving forward.
The NOL carry-back will allow them to go back 5 years, essentially get
a tax refund, use that money to invest in job creation, putting workers
and their companies back to work, and giving more workers the
opportunity to go back to work.
Madam Speaker, this legislation deserves bipartisan support. Let us
invest in new jobs and give those who are unemployed today the
opportunity to go back to work.
Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from
Maryland (Mr. Cardin).
Mr. CARDIN. Madam Speaker, I thank the gentleman for yielding me this
time and thank the gentleman for his work on many of the issues that we
are considering today.
Madam Speaker, I want to talk about three issues in this bill that
are very important. One deals with unemployment insurance, and the
others deal with our welfare system.
I am pleased we now have these three provisions in a package that has
a good chance of not only passing this body but the other body and
being signed by the President of the United States. I congratulate the
gentleman from California (Mr. Thomas), the gentleman from California
(Mr. Matsui), and the gentleman from New York (Mr. Rangel) for bringing
forward a package that can be signed into law.
The provision I am referring to is the 13-week extension of
unemployment insurance. We have been in recession for the last year.
People, through no fault of their own, cannot find employment. It is
important that we extend the unemployment insurance benefits. This 13
[[Page H761]]
weeks will help 80,000 people a week who are exhausting their current
unemployment insurance benefits.
The other two provisions deal with our welfare system. We extend the
supplemental grants to those States who depend upon the supplemental
grants in order to fund their welfare programs. Maryland is not one of
those States, so the people in my State do not benefit, but it is an
important program, and I applaud the effort that will finally get that
enacted into law.
The other provides for the contingency fund within the TANF welfare
program.
Madam Speaker, we are in a recession. We are going to be calling upon
our social safety net programs more in the coming year. It is important
that we provide within the TANF program the extra resources that our
States are going to need in order to deal with the people that cannot
find employment during this very difficult time.
Madam Speaker, for those three reasons I compliment all that are
involved. These are three important provisions and are worthy of the
support of this Chamber, and I thank all who are responsible for making
it possible.
Mr. THOMAS. Madam Speaker, I yield 1 minute to the gentleman from
Pennsylvania (Mr. Gekas).
Mr. GEKAS. Madam Speaker, the inclusion of the extension of
unemployment compensation benefits in this bill, of course, is the
core, and it is a pretty good outcome for our unemployed.
I would have added one feature to it which I presented to the
Committee on Rules but learned that it was premature to do so but which
would have lifted an additional burden from the backs of our
unemployed, namely a proposition that I have offered to eliminate
income taxes on the receipt of unemployment compensation benefits. My
proposition would make it retroactive to January, 2001.
Just as the unemployed began to creep up in numbers after the
recession started, and exacerbated by September 11 when a whole new
crew of unemployed Americans came before the unemployment boards, now
is the time to consider lifting the burden of income taxes that applies
to those benefits.
The chairman of the Committee on Ways and Means assured me that we
would have discussion on this proposition; and when the time comes for
that discussion, I ask the support of all of the Members because it is
an unfair proposition to have our unemployed receive an unemployment
compensation check and then have to calculate it in their taxes. We
want to see that eliminated.
Mr. MATSUI. Madam Speaker, I yield 1 minute to the gentleman from
Texas (Mr. Green).
Mr. GREEN of Texas. Madam Speaker, I rise in support of the bill.
This is the first time I have been able to say that on the floor, and
maybe the fourth time is the charm. The need is urgent to help our
displaced workers and encourage investment through depreciation.
{time} 1145
This bill extends unemployment insurance benefits for workers who
have used their benefits up without yet finding a job. In my own area
in Houston, our laid-off workers are a result of September 11, the
airline employees and the travel industry, and from the Enron
situation. They will benefit from this. Since September 21, about 2
million families have run out of unemployment benefits, 81,000 per
week.
That will help us nationwide. We should have done this months ago in
a bipartisan manner, but the Republican leadership insisted three times
before that the tax breaks for the wealthy and corporations be
included. In previous recessions, we have always passed an unemployment
extension, but this time again we held it hostage, and now I am glad we
are finally going to see it happen.
The concern I have, though, is ultimately we went from last year
saving Social Security first to making it last. It looks like we have
put tax cuts first. Again I am glad the committee has come up with this
bill. It is a good compromise. Hopefully, the Senate will adopt it.
Mr. THOMAS. I thank the gentleman for his kind words.
Madam Speaker, I yield 1 minute to the gentleman from Texas (Mr. Sam
Johnson), a valued member of the Committee on Ways and Means.
Mr. SAM JOHNSON of Texas. Madam Speaker, it has been over 100 days
since President Bush demanded that Congress pass legislation to create
jobs and spur our economy. Today, we are trying to help the unemployed
and we might finally succeed.
Republicans are asking our Senate over there to put the American
people first and their political ambitions second. Nothing should stand
in the way of this bill, because it targets those that need help, the
unemployed, our businesses and our economy. I know the people of South
Dakota and Missouri are tired of these political games and so am I. We
are just trying to make America strong by creating new, high-paying,
long-term jobs. This bill does just that. Vote for America's workers.
Vote for this commonsense bill.
Mr. MATSUI. Madam Speaker, I yield 3 minutes to the distinguished
gentlewoman from Florida (Mrs. Thurman).
Mrs. THURMAN. Madam Speaker, I am actually here to support the bill.
I, like many of my friends, am glad we have a piece of legislation
before us that does address some of the issues that many of us have
been concerned about and certainly one that we can find consensus. It
is good to know that we in fact can find consensus and come to
agreement on some issues that are facing many, many people in this
country.
I would just say that what we are hearing today is there has been
about 80,000 Americans who are losing their unemployment benefits each
week. According to one estimate, about 1.6 million people have totally
exhausted their benefits since the September 11 tragedy. This 13-week
extension certainly will go a long way to help them and their families
during this crisis time.
I would say I am disappointed that we could not up some of the
Medicaid dollars. I think that would have been a right direction for
our States. Our States are looking to us for some leadership on this
issue. They, as we all know, are in serious problems in their States;
and Medicaid is an area in which they have asked for some relief. In
saying that, though, I think the chairman knows that in the last couple
of months, we have talked in the committee about the TANF grants and
issues. In fact, we are going to be at a Federal-State conference on
Monday. My State of Florida has continually brought this issue to our
attention. It is my understanding we are going to get about 10 percent
of our total. I do not know what exact number that is, but certainly it
is going to go a long way in helping us.
I think there are also some important issues in here on the
extenders. Our business partners that come in to talk to us constantly
are saying to us, the extenders are something we have to go through
every time. We are very concerned that this is not going to happen.
I would just say that I think that the extenders and one that I am
very much interested in certainly was the wind which is also an
alternative energy issue, one that we should be paying close attention
to in these times.
All in all, I also think that we met some of the criteria that Mr.
Greenspan and others have said that will also help us in stimulating
this economy. I thank our chairman and our ranking member and members
of this committee who got together and figured out that there was a way
to go and get some things done around here that helps the American
people. We thank them for that.
Mr. MATSUI. Madam Speaker, I yield 2 minutes to the gentleman from
New Jersey (Mr. Pallone).
Mr. PALLONE. Madam Speaker, let me first start out by saying that I
am very pleased that the Republican leadership dropped the bill
yesterday which would have complicated matters and brought up what is
essentially a clean bill today on the unemployment compensation so we
can get this passed and give that extra 13 weeks to our constituents.
That is so important. I am pleased at the fact that they were willing
to listen to Democrats and others that were asking that that be done.
However, I did want to say that the issue of health care for people
who are displaced, for displaced workers, is still very important and
needs to be addressed. One of the concerns I have,
[[Page H762]]
which some of my colleagues have mentioned, which is that with the
States piggybacking on this Federal depreciation rule, many of the
States are now concerned that they are going to be losing significant
amounts of money and that they will not be able to afford to keep
everyone on their Medicaid rolls. In my home State of New Jersey, which
faces like a 12 percent deficit from the previous Republican
administration, our Governor is saying a big part of that is Medicaid.
So we do not want to aggravate the situation, making it more difficult
for States to provide health care for people who do not have a job or
who are low income.
What I would like to see, and this is what I would ask, is that the
Republican leadership allow at some point in the next few weeks the
opportunity for the Democrats and all of us to address the problem of
health care. Democrats have talked about expanding COBRA. Democrats
have talked about giving more money to States to deal with this
Medicaid problem. We have to recognize the fact that given the
recession and the amount of displaced workers, there are a lot more
uninsured and their problems are only going to be addressed if we deal
with public programs and try to help the States with Medicaid, if we
deal with COBRA, if we deal with some of these health care initiatives
that actually make a difference and provide people with health
insurance.
The tax credits that the Republicans have been talking about are not
going to help the uninsured. Very few people are going to be able to
buy into the individual market; and if anything, the Republican
proposals with their tax credits undermine the employer-based system.
That is why we brought it up on the previous question today that we
voted ``no,'' because we do not want to undermine the employer-based
system with these tax credits that the Republican leadership has
proposed.
Mr. THOMAS. Madam Speaker, it is my pleasure to yield 2\1/2\ minutes
to the gentleman from Ohio (Mr. Portman), a member of the Committee on
Ways and Means.
Mr. PORTMAN. Madam Speaker, I tell my friend who just spoke on the
other side of the aisle that we had an opportunity to help States in
regard to health care in the previous three bills that came to this
floor for economic stimulus. I do not know whether the gentleman was on
those, whether he voted for them or not; but we have had that
opportunity, and we will have it in the future because this House will
act to deal with the issue of the uninsured.
I thought it would be helpful to talk for a second about how we got
to where we are right now. Let us start with why we are here. We are
here because of the recession, and we are here because of the horrible
events of September 11 and the deepening of the recession that that
caused. In reaction to that, the House back in October, 5 months ago,
passed legislation on this floor, then again passed it in December,
then again passed it in February, each time focusing on two things:
one, helping those who are unemployed, including the extension of
unemployment insurance; and, second, helping to get the economy back on
track so we can get people back to work. That has been the focus of all
the three previous efforts. Each time as the House has passed these
bills with practically unanimous Republican support and some support
from the other side of the aisle, these bills have been blocked by the
other body. Despite the fact that we believe there is a majority of the
other body that supports the legislation, at least the legislation in
December and the legislation in February, the other body has chosen to
block that legislation, despite the fact that during this time the
recession has dragged on and on and on.
That is why we are here today, because as the other body has blocked
each of these good-faith efforts again to get people back to work, the
House has reacted by altering the legislation, trying to address the
very concerns that were raised on the floor of the other body and some
concerns that were raised on the other side of the aisle here so that
the bill which was brought forward in December, the bill which was
brought forward in February, was altered from the original legislation
to try to be sure we could get through that Senate gauntlet, excuse me,
the other body's gauntlet and get the bill to the President for
signature because we care about helping people who are unemployed but
also care deeply about getting people back to work and re-creating
those jobs in the American economy.
The House stayed focused on that every time. The House stayed focused
on helping people. Now we are here. The other body finally blocked
legislation indicating to us that now we need to alter the bill again.
We have once again done so. This time we have fewer incentives for
jobs, but still have incentives for jobs. We kept at it. Again, I must
say that I applaud the chairman's personal perseverance and patience in
this effort. I think, frankly, politically many people argued we should
have done something else, we should have blamed the Senate or the other
body for blocking this legislation. Instead, we have persevered. We
have done what we can to try to get this bill done.
Again today we are hearing on the other side of the aisle more
support for this legislation. I certainly hope the other body is
listening, because it is time. It is 5 months too late; but it is time
for us to move to help those who are unemployed, to extend unemployment
insurance, to provide other assistance but also to help get people back
to work, to put in place some incentives so that new jobs can be
created and folks can get back to work helping the U.S. economy.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (Mrs. Emerson). The Chair would once again
remind all Members that during the course of this debate, Members
should refrain from characterizing Senate action, including urging
Senate action.
parliamentary inquiry
Mr. THOMAS. Madam Speaker, I have a parliamentary inquiry.
The SPEAKER pro tempore. The gentleman will state it.
Mr. THOMAS. In terms of not representing or characterizing Senate
action, does that also refer to characterizing Senate inaction?
The SPEAKER pro tempore. The gentleman is correct.
Mr. MATSUI. Madam Speaker, I yield 2 minutes to the distinguished
gentleman from California (Mr. Dooley).
Mr. DOOLEY of California. Madam Speaker, I am very pleased today that
we finally have put together a stimulus package that will enjoy
significant bipartisan support, and it will engender this significant
bipartisan support because it is focused. It is focused on enacting tax
cuts that will really result in increased economic activity. It focuses
on providing needed benefits to New York. It focuses on providing
needed benefits to our unemployed workers. And unlike some of the past
stimulus bills that were brought before this House, it is focused on
tax cuts that will really make a difference in the immediate term.
There has been some characterization that we did not have a stimulus
bill signed into law before this or through the past 5 months because
of a failure of one body or the other to take action. I think the
reason we do not have a bill that is signed into law already was
because we failed to work in a bipartisan fashion to structure a bill
that would be focused on the immediate tax cuts that would provide that
economic stimulus that was balanced to the appropriate benefits that
needed to be provided to the unemployed workers in this country. I do
not think we should be surprised that today when we pass this measure
out of the House with broad bipartisan support that it is quite likely
that we will see a bill that will be enacted and sent to the
President's desk. There is a very simple lesson there, I think, that by
working together and by being focused and finding a bill that can find
that common ground, we can make a difference, we can advance policies
that will ensure that we can see greater economic activity, and we can
advance benefits that are going to provide some relief to a lot of the
hard-working Americans who, unfortunately, have lost their jobs over
the past few months.
Mr. THOMAS. Madam Speaker, it is my pleasure to yield 2\1/2\ minutes
to the gentleman from Louisiana (Mr. McCrery), chairman of the
Subcommittee on Select Revenue Measures of the Committee on Ways and
Means.
[[Page H763]]
Mr. McCRERY. Madam Speaker, I first want to talk about why
Republicans have stuck to our guns on insisting that extension of
unemployment benefits be coupled with tax cuts for business so that
they might create jobs and pull us out of this recession.
I am going to quote from an online publication of Business Week
magazine from yesterday:
``Federal Reserve Chairman Alan Greenspan has repeatedly pointed out
that the current recession was triggered by business cutbacks and said
he'll need to see improved corporate demand before he's convinced the
recovery is sustainable.
``Surveys of corporate buyers have consistently shown they plan only
a gradual pickup in spending this year. Only 15 percent of respondents
to a National Association of Manufacturers survey released on February
20 said they would increase capital spending by more than 5 percent in
the first half of 2002.
{time} 1200
``For the second half of 2002, only 25 percent of respondents said
they expect to increase spending by more than 5 percent, but 54 percent
said their increase would be in the zero- to 5-percent range.''
There is certainly a need, if we want to get out of this recession,
if we want to create jobs and put people back to work, there is a need
to give corporate America an incentive to invest; capital investment.
That is what Chairman Greenspan is talking about.
Therefore, we have stuck to our guns and we have won today. We have a
package that is going to pass this floor and go to the other body and,
hopefully, will be passed there, that will not only give some relief to
the unemployed in the form of benefit checks, but it will also give
them some hope in the form of a future job.
Now, let us talk about the unemployment compensation benefits in this
bill, because they are important. The gentleman from Maryland touched
on them, but he did not go far enough in describing what is in this
bill. Besides the extension of the 13 weeks of unemployment benefits,
we also do what is known as a Reed Act distribution. That means that we
are finally going to give to the States adequate monies for
administration of the unemployment compensation system in the States,
primarily the employment services portion of that system. That is what
Congress has been shortchanging the States on for years now.
In this bill, we are going to make good on our promise to give them
adequate funds to administer this program to get people back to work.
Mr. MATSUI. Madam Speaker, I yield 1 minute to the gentleman from
Virginia (Mr. Moran).
Mr. MORAN of Virginia. Madam Speaker, when we have bills that are the
result of real compromise before us, it is incumbent upon us to find
real consensus. The fact is that this is a balanced bill, and extending
unemployment benefits for another 3 months makes sense. We all agree on
that.
I also agree on the tax incentives. The capital equipment that is
going to be purchased as a result of the 30 percent accelerated
depreciation probably would have happened anyway, but it is going to
happen now, it is going to be concentrated, it is going to give a real
jump-start to the economy, and it is going to get those folks on
unemployment now back into the workforce. Even the 5-year loss carry-
back makes sense.
This is the kind of thing where the money that we are providing is
going to be invested immediately for the productivity of our workforce
with the capital investment, and it is going to be invested in the kind
of plant and equipment that will ensure that these companies will be
sustainable.
We have a great thing going for us. We have had a mini recession.
There are certain things that we need to do to fill gaps, to build
capacity in the economy, and we need to make sure that our working
families can provide for their children.
This does it. It should be approved, and it should be approved
unanimously.
Mr. THOMAS. Madam Speaker, I thank the gentleman for his kind words.
Madam Speaker, I yield 1 minute to the gentlewoman from Washington
(Ms. Dunn), a member of the Committee on Ways and Means.
Ms. DUNN. Madam Speaker, I am pleased to hear preliminary reports
that indicate that our economy might be back on track, but in
Washington State, recovery will take longer. Our unemployment continues
to go up, not down, for each round of Boeing layoffs. At 7.5 percent,
it is the second highest in the Nation. Many analysts have projected it
will grow to 8 percent, the highest unemployment in the Nation. So we
can see why providing the benefits that we provide for unemployed
people in this bill is crucial, but it is not enough, Madam Speaker.
It is also crucial to provide some help for businesses so that they
will invest in workers and keep people employed. We know it is the
private sector that creates jobs. Assisting them needs to be a focus of
our recovery efforts. The tax provisions in this bill will encourage
Washington State companies to begin investing again and keep people
employed.
I urge passage of this bill.
Mr. MATSUI. Madam Speaker, I yield 1 minute to the distinguished
gentleman from New Jersey (Mr. Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his
remarks.)
Mr. ANDREWS. Madam Speaker, I rise in support of this bill because of
what it does and what it does not do. I commend and thank the
leadership of both parties for bringing us a bill that extends
unemployment benefits, that provides meaningful incentives for people
to invest in capital goods and get the business economy rolling again.
I also support the bill because it is not nearly as large as the
other plans that were before us just a few weeks and months ago. The
looming problem in this economy is the budget deficit. This bill adds
only marginally to the budget deficit in the short run, and I believe
it will subtract from it in the long run. But that problem is not going
away. We are once again going to run this government on borrowed money,
I believe because of the unduly large tax cut enacted last summer.
We have done a good job today in addressing the short-term problem,
but we have a bigger job to do in the weeks and months ahead in
addressing the looming train wreck with Social Security in the American
economy because we are once again going to go back to the bad old days
of the 1980s of running this government on borrowed money.
Let us stimulate this economy today, but let us solve the long-term
problems in the future.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2 minutes to the
gentleman from Pennsylvania (Mr. English), a member of the Committee on
Ways and Means.
Mr. ENGLISH of Pennsylvania. Mr. Speaker, I thank the chairman for
yielding me this time.
I am here to express support for a bill that House Republicans are
once again putting forward before the House in response to the pleas of
American workers who have been laid off in the Arctic climate of this
recession.
Mr. Speaker, it is critical that we pass this legislation, but,
unfortunately, we have been missing many opportunities. Three times
already we have passed the substance of this legislation with
additional stimulus built in, passed it, and sent it to where it has
been blocked by partisan obstructionism which I have neither the time,
nor the inclination, nor the flexibility, under the rules of this
House, to adequately explore.
What is important here is that we are laying forward a bill that
helps American workers by extending unemployment benefits for 13 weeks.
At a time when workers are having difficulty finding another job, they
need that extension. It provides clear tax incentives for investment in
good-paying jobs.
I represent a manufacturing district. This is precisely the sort of
incentive that will allow manufacturers to pour money into capital
equipment, modernize their production lines, improve productivity, and
successfully compete globally. This is precisely the kind of incentive
that is going to allow them to become more competitive and also boost
the economy now at a critical time when it needs a boost.
The legislation that we face is the right mix in order to try to
provide some relief for an economy that is still dragging and still
very much at risk.
[[Page H764]]
Mr. Speaker, it is critical that we pass this legislation now. If we
cannot get the full-blown stimulus package that House Republicans have
been advocating and that the President has been advocating, it is
critical that we move this legislation forward to try to address at
least some of the more obvious problems that we are facing.
Mr. MATSUI. Mr. Speaker, I yield 3\1/2\ minutes to the distinguished
gentleman from the State of Washington (Mr. McDermott), a member of the
Committee on Ways and Means.
Mr. McDERMOTT. Mr. Speaker, I am really pleased that we finally got
the hunting season settled for mourning doves yesterday so that we
could finally get down and do something important.
Since September 12 when we tried to give $15 billion to the airline
executives and stockholders, we have refused to deal directly and
simply with the unemployment question. We have always had to have it
wrapped with a whole bunch of tax cuts.
Now, we are out here today to pass a bill, and the price has gotten
down low enough that a lot of us will support it. It will go out of
here almost unanimously. We are going to give $14 billion over the next
3 years to the unemployed and $100 billion to the employers in the form
of tax cuts.
We had a famous member of the other body from our State who used to
say, I would like to find a one-armed economist, because on the one
hand they say things are going up and on the other hand they say things
are going down. I do not know whether this bill is for the going ups or
the going downs, because I hear that the recession is all over, that we
have pulled out of it already because of all of the great things we
have done. So why do we need this stimulus package? Why are we putting
in $100 billion taken from the Social Security money?
Over the next 3 years, the workers in this country are going to be
paying Social Security so they can give a tax break to their bosses to
buy more machines. Now, if we are out of the recession, then why do we
need this stimulus package? We clearly need the money for unemployment
for the 1.1 million people who have lost their jobs and lost their
unemployment since 9-11. That is clear. But there is not any evidence
that I see, at least from my State, that says they are all coming back
to work now.
Now, if a guy has a plant and he has equipment, why is he going to go
out and invest in more unless there is a market? If you have, as we
have, an 8 percent unemployment rate in Seattle, anybody investing to
make more, I guess it can just sit in the warehouse. That would be good
business, I guess, although I have never run a business, so I would not
know if it is a good idea. But it does not seem very smart to buy a
bunch of machinery for something that one cannot sell. Until the
economy starts and people are back working, it is going to be very hard
to convince people to go and buy more high-priced electronic equipment
and all of the things that have gone down.
Now, what is really aggravating about this is you will not give us a
chance to have a pay-for, no chance to pay for it. No, no, no. This is
the plan that says, if you are in a hole, keep digging. We are in a
hole, and we are going to dig another $100 billion deeper, and we could
reverse that. We could do something about that if we could have
hearings and actually have meetings on this, but these things keep
popping out of the committee without anybody ever having a chance to
talk about them. We find out that, after all of these months, the State
of Washington, we have to have a letter from the Department explaining
how it is going to work.
I urge everyone to vote for a bad compromise.
Mr. THOMAS. Mr. Speaker, my understanding is the gentleman said that
he was in favor of the bill? I did not hear the closing pitch. How
ironic.
Mr. Speaker, it is my pleasure to yield 1\1/2\ minutes to the
gentleman from Missouri (Mr. Hulshof), a member of the Committee on
Ways and Means.
Mr. HULSHOF. Mr. Speaker, I rise in support of the Job Creation and
Worker Assistance Act.
This, Mr. Speaker, is the least we could do; literally, this is the
least we could do, because of the political climate in which we find
ourselves. This is a pragmatic solution.
There have been a number of speakers who lament the fact that we have
not provided worker assistance in the past, and I would remind my
colleagues that we have provided that assistance in the three prior
true stimulus bills. Perhaps we have missed some opportunities, because
we also had some health assistance for displaced workers. My colleagues
may recall we had some simplification of the capital gains holding
period that a lot of small businesses have been asking us about. We had
relief from the punitive Alternative Minimum Tax, which, I remind my
colleagues, economically hits businesses at a time when they can least
afford to be hit with this tax; that is, times of economic slowdown.
Interestingly, the gentleman from Texas who spoke earlier talked
about tax breaks for wealthy corporations. And yet, if these
corporations are so wealthy, then why are we including a net operating
loss carry-back?
The fact is that these economic downtimes have caused many businesses
to become awash in red ink. Ford Motor Company, for instance, that was
on the top 10 recipients of additional tax relief on a chart that my
colleagues on the other side of the aisle used recently, announced a
layoff of a plant in St. Louis, Missouri, which is going to affect
about 2,500 workers.
Notwithstanding that, I think that this is a good bill and, as I have
said before, inaction is not an option. I am glad that the House is
finally acting.
Mr. MATSUI. Mr. Speaker, I yield the balance of my time to the
distinguished gentlewoman from the State of California (Ms. Pelosi),
the Democratic whip.
Ms. PELOSI. Mr. Speaker, I thank the gentleman for yielding and for
his leadership on this very important issue.
Well, here we are 6 months later, four legislative attempts and
millions of jobs lost, finally passing a package to extend unemployment
benefits for those affected by the recession and the September 11
tragedy.
{time} 1215
We have to review this legislation today in the context of this past
year. One year ago, when the Clinton administration left office, we had
the strongest economy in the history of our country. We had the biggest
budget surplus in a generation.
What a difference a year makes. Under the Bush economic package, we
started into a recession, we started into reversing the tendency
towards surplus and moved into deficit, and we have been advancing
policies under the Republican leadership in the House to raid Social
Security.
Within that context came September 11, when we already had an economy
moving into a recession. What a tragedy it was in so many respects for
our country. Immediately this House acted, and probably appropriately,
to bail out the airline industry in a matter of days from September 11.
Many of us wanted to vote in tandem for that bill and a bill that
would help bail out all of the workers who lost their jobs as a result
of September 11 in the airline industry and in the related hospitality
industry.
But no, the emergency was only for the industry, and the workers
would have to wait. So in good spirits and with good will, we voted for
the airline bailout bill with the thought that the worker bailout would
shortly come before us.
Six months later, we still do not have that comprehensive worker
bailout bill on the floor. What we have before us today is the very
least that we could do, the very least that we could do, to extend for
13 weeks the unemployment benefit package for the workers. Now we are
at record numbers, 8 million unemployed in our country, record numbers
of people going on unemployment every day.
So when we talk about this bill before us today, we say that at long
last we can be relevant to the pain and suffering in the families of
America's working people because we will extend the benefits. But this,
as I said, is the very least that we can do. Much more needs to be
done.
That is why next week the Democrats will launch a discharge petition
calling to expand the number of people who would be available for
unemployment benefits: temporary workers,
[[Page H765]]
those below a certain wage scale. It would also include in it a health
package benefit, so that there would be funding to allow people to take
advantage of COBRA extension of their health benefits, because health
benefits are a very, very important part of the job, and should be a
very important part of an unemployment benefit package.
Mr. Speaker, today we certainly vote to extend the benefits for
American workers' families, but we recognize that this, as I said, is
the very least that we can do.
The fight continues. Next week we will continue with the discharge
petition.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
First of all, Mr. Speaker, I want to thank the gentlewoman for her
discordant, partisan remarks.
Mr. Speaker, I am very pleased to yield the remainder of our time to
the gentleman from Illinois (Mr. Hastert), the Speaker of the House of
Representatives.
Mr. HASTERT. Mr. Speaker, I thank the gentleman for yielding time to
me.
Mr. Speaker, I think today we have a bill that I hope we can vote for
on both sides of the aisle. At least, that sounds like the debate that
we have had.
Two or 3 weeks ago, we had a bill on the floor that basically did the
same thing. We also had health care provisions. Last Monday, I received
a letter from the minority leader that said ``I don't want UI and
health care benefits put together in this bill.'' We took it out. Now
we have a bill that basically has UI benefits.
We have three things that I think are important for this country, not
only helping those people who are out of work, and they need help, but
also, most people who are out of work will tell us one thing: They want
a job. It is our job to help create jobs in this country.
There are some fundamental things we can do. First of all, all
American families that work have accumulated some kind of wealth,
either through 401(k)s or mutual funds or savings accounts or pensions.
They lost value after September 11. Luckily, that value is starting to
come back, and people are seeing that their savings are starting to be
restored.
But that is a valuable asset that we have in this country. That is a
valuable asset for every American family. We need to get confidence in
those markets that people will put money back in again and see that
value rise.
The second thing that we needed to do is get confidence in consumers,
because what this Congress has done over the past 3 years is paid down
$450 billion of public debt, so we do not have the Federal Government
out there competing with the private sector for capital. We have helped
keep interest rates low.
I say ``helped keep'' because the Federal Reserve has helped us, but
they have been able to help us because we have done what we have done.
With low interest rates, we read that housing starts are up 6 million
last year, unprecedented in a time of recession, but this helped keep
the economy going. The auto industry is going. A lot of things are
starting back up. We have helped that happen. This bill will give
consumers confidence, also.
The third thing that we needed to do, and we will do in this bill, is
to help amass capital in very crucial spots so that money will be
invested in creating jobs. Creating jobs is not a hocus-pocus, or it is
not something where we wave a wand over and it just happens. We have to
create it. We have to make sure that there is capital amassed so people
invest in new ideas, new construction, new capital equipment, and the
ideas that create jobs in this country. That has been this Nation's
strength. We do it in this bill.
We are going to be successful in the bill because 2 weeks ago we did
not wave a white flag and say, ``We will just pass UI and we will roll
over dead.'' We fought back, we got a good piece of legislation. I
think that the Senate ought to pick this legislation up and pass it.
Mrs. CHRISTENSEN. Mr. Speaker, I rise in support of H.R. 3090, the
Job Creation and Worker Assistance Act. I am pleased that we appear to
be finally on our way towards giving relief to the millions of
Americans who have exhausted their unemployment benefits.
I want to thank the Chairman and Ranking Democrat of the Ways and
Means Committee, Representatives Thomas and Rangel for including the
annual Tax Extenders bill in the H.R. 3090 which includes the very
important extension of the Rum Cover-Over for the Virgin Islands and
Puerto Rico. The Rum Rebate, as it is known in my district, is
critically important because it is used to secure the bonds that the
Government of Virgin Islands issues to pay for the public
infrastructure needs of the territory.
Mr. Speaker, I applaud the leadership you and your fellow majority
leadership members have shown in crafting an unemployment extension
bill which has strong bipartisan support and which has a good chance of
becoming law soon because it does not contain any of the controversial
tax breaks that were included in earlier bills such as the repeal of
the corporate minimum tax. On balance this is a good bill and I urge my
colleagues to support its passage.
Mrs. MALONEY of New York. Mr. Speaker, I rise to express my relief
that we are finally voting on legislation that will help unemployed
Americans.
I have heard countless stories of working men and women who cannot
find jobs in these uncertain economic times. Families have been crying
out for help, and it's time that we give them the relief that they
need.
The aftershocks of 9/11 have affected thousands of workers. In my
state alone, unemployment has increased by almost 2 percent since last
January.
More than one hundred thousand New Yorkers were displaced by the
terrorist attacks, and they shouldn't shoulder the economic burden of
9/11 alone.
Federal grants to extend unemployment make sense not only for New
York, but for the nation as a whole.
I am pleased that this legislation contains the 13-week extension of
unemployment benefits.
However, we must continue our efforts to ensure that laid-off workers
without health care benefits obtain the coverage that they need.
I only hope that this relief will not linger in conference so that
workers will not have to worry about paying rent, sending their
children to college, or going to the doctor.
It's time to pass this benefits package.
Mr. POMEROY. Mr. Speaker, I rise in strong support of H.R. 3090, the
Job Creation and Worker Assistance Act of 2002. I only regret that it
took five months for the majority to bring forward a responsible,
bipartisan bill that provides assistance to unemployed workers, helps
stimulate investment in our economy, but does not further harm our
long-term budget outlook. Although the delay is unfortunate, we have a
good bill on the floor today and I urge my colleagues to support it.
First, the bill helps unemployed workers by extending the limit on
unemployment insurance from 26 to 39 weeks. Importantly, the bill also
expands UI benefits by providing funds to assist part-time workers who
have lost their jobs. At a time when 80,000 workers per week are
exhausting their UI benefits, the 13-week extension in this bill is
sorely needed. This Congress has been promising for months to help
displaced workers; the bill before us finally delivers on that promise.
Second, the bill encourages new investment to help lift our
sputtering economy. It provides businesses with a 30 percent bonus
depreciation for plant and equipment placed in service after the
terrorist attack of September 11. This will give businesses a powerful
incentive to expand their operations and grow the economy. In addition,
the bill extends the net operating loss carry-back from two years to
five, so that businesses can take advantage of their loss deductions,
freeing up funds for new investment.
Third, the bill extends expiring tax credits, including the Welfare-
to-Work Tax Credit and the Work Opportunity Tax Credit. Importantly for
North Dakota, the bill extends the taxable income limit for oil
production from marginal wells and the tax credit for wind energy
production. North Dakota is not only a major producer of oil, it is
number one in the nation in the potential for energy generation from
wind. Both of these provisions will be of significant benefit to my
home state.
Finally, the provisions of this bill are temporary, which has two
benefits. First, it will encourage businesses to act now, when new
investment is needed most to boost the economy. Second, it will
minimize the harm to the long-term budget outlook. As each of us knows,
the 10-year budget is projected to divert $1.56 trillion from the
Social Security trust fund. By limiting the term of these provisions,
we stimulate the economy without setting back our efforts to balance
the budget without using Social Security.
Mr. Speaker, I support this legislation and urge its adoption.
Mr. BLUMENAUER. Mr. Speaker, I rise today in strong support of the
Job Creation and Worker Assistance Act of 2002. In extending
unemployment benefits for 13 weeks, this
[[Page H766]]
legislation goes a long way toward providing critical economic
assistance to workers and small businesses around the country.
The current economic downturn has had a tremendous impact on the
Pacific Northwest. The State of Oregon, in particular, has the highest
unemployment rate in the country. Some of our most important market
sectors, such as technology, agriculture, and forestry, have been hard
hit in the last year. This legislation will help our state and our
nation until people get back to work.
The bill before us today strikes a balance between the need to assist
our country's workers while recognizing the very real financial
constraints our government is facing. The 13-week extension of
unemployment benefits will help the many in my district who have had
trouble regaining employment due to the events of September 11th and
the economic downturn and have exhausted their regular benefits.
In addition, I strongly support the provisions of the legislation on
accelerated depreciation. Under current law, the recovery period for
most personal property through the depreciation process is anywhere
from three to 25 years. This legislation would allow a temporary
additional first-year deduction of 30 percent for property that
generally has a recovery period of 20 years or less, and was purchased
on or after September 11, 2001. Small businesses and individuals around
the country will be able to use this provision to recover more of their
capital costs more quickly, in turn allowing them to use these funds to
employ more workers and purchase more goods and services.
Finally, this legislation extends a number of important tax
provisions, such as welfare-to-work, the tax credit for electric
vehicles, wind and bio mass and, perhaps most important, tax incentives
to encourage reconstruction and redevelopment of the New York ``Liberty
Zone'' surrounding the World Trade Center. These tax incentives will
provide further stimulus to those sectors of the economy desperately in
need of assistance, while improving the livability of our communities.
Mr. Speaker, this legislation is absolutely necessary to ensure that
workers in Oregon communities and across the country can provide for
their families until they get back to work. I urge my colleagues to
support the legislation.
Mr. UDALL of New Mexico. Mr. Speaker, it gives me great pleasure to
rise today in support of a worker assistance measure that will finally
benefit the men and women who need it the most--the unemployed. I am
also happy to see that we were finally able to work in a bipartisan
fashion to get important legislation crafted for individuals strongly
in need of help.
I cannot tell you, Mr. Speaker, how many phone calls my office
received from people who were nearing the end of their unemployment
benefits, and were still struggling to find employment despite constant
efforts to do so. Unfortunately, since last fall, Republicans have been
playing nothing more than dirty pool by pushing so-called stimulus
packages with accelerated tax cuts, corporate AMT refunds running back
to 1986, and poorly conceived health insurance tax credits.
Nevertheless, as the old adage goes, ``it's better late than never.''
And, although Federal Reserve Chairman Greenspan is on the Hill today
proclaiming that economic recovery is ``well under way,'' there are
thousands of Americans, and many of New Mexicans who are still not
seeing the benefits of a recovering economy. That is why I am glad the
majority finally decided to do what is right and bring forth a real,
meaningful worker assistance bill without controversial tax breaks.
I am pleased to support this legislation and urge my colleagues to do
the same. Worker assistance is long overdue.
Mr. SHOWS. Mr. Speaker, today we are considering a measure to extend
unemployment benefits for an additional 13 weeks.
On Monday we will mourn the 6-month anniversary of September 11.
However, with this anniversary comes issues that Congress must address.
Among those is the fact that unemployment benefits will expire on
Monday. Unemployed Americans are counting on us to help them get
through another difficult situation.
We keep hearing about the need to stimulate our sagging economy.
Tough economic times were made worse in the aftermath of September
11th, but I can tell you that back in Mississippi too many people were
losing their jobs before then.
And we can only blame ourselves for enacting trade policies that have
sent Mississippi jobs packing across our borders. We did it with NAFTA
and I am afraid we're going to do it again with Fast Track.
Since September 2001, more than 1.3 million Americans have exhausted
their unemployment benefits. In Mississippi alone, more than 7,200 men
and women have exhausted their benefits since November, compared to
4,700 unemployment workers during the same time period in 2000--a 54
percent increase. And we continue to experience new factory closures
every week in Mississippi.
So, while we argue over ways to jump-start our sluggish economy, it
is just as important that we help the victims of that economy.
This Congress has had ample opportunity to help our unemployed--our
once working American families--but the leadership of this body chose
not to act. This is why I filed the discharge petition to bring this
bill to the floor. It's too bad we had to resort to this measure--to
bypass regular order--to force action on this essential measure.
However, at least today we will and rectify this economic situation
and help American workers who need their government to work for them in
this difficult time.
Mr. HINOJOSA. Mr. Speaker, I rise today in support of the Job
Creation and Workers Assistance Act, H.R. 3090. On behalf of my
constituents in the 15th Congressional District of Texas, which has
suffered from a chronic double-digit unemployment rate for decades,
this bill is long overdue. I am glad that the majority decided to bring
a bill to the floor upon which we have broad agreement, and which will
be well received by the other body--the Senate.
Mr. Speaker, this bill represents the kind of constructive compromise
that must be the cornerstone of our efforts to create public policy
that promotes job growth and economic prosperity. This bill includes
provisions that will provide much-needed relief to our unemployed
workers who have been losing their benefits. It also provides effective
and immediate tax relief that will help businesses to survive these
difficult economic times and lead our Nation to renewed economic
growth.
I applaud my colleagues on both sides of the aisle for coming
together to craft this ``economically sound'' bill in our Nation's time
of need, and I urge support for the resolution and the bill.
Mr. ETHERIDGE. Mr. Speaker, I rise in strong support of H.R. 3090,
the Job Creation and Worker Assistance Act. This bill, like the bill
the Senate passed a few weeks ago, extends unemployment benefits for 13
weeks and provides temporary tax relief for businesses that will truly
help stimulate our economy. H.R. 3090 represents the kind of temporary,
immediate and affordable relief I advocated for months.
Mr. Speaker, for months, the House Leadership has continued to bring
up only sham tax bills instead of relief for unemployed workers. In
fact, the worker relief package we are considering today could have
been law months ago if House Republicans had not insisted on attaching
controversial and ineffective tax breaks for special corporate
interests to previous stimulus packages.
While the relief contained in H.R. 3090 is a step in the right
direction, we must not stand pat. As we approach the six-month
anniversary of the terrible events of September 11, Congress must pass
additional common sense legislation to jump-start our economy and put
our people back to work. We must address the issue of health insurance
for the unemployed. Mr. Speaker, providing health insurance for the
unemployed and extending unemployment benefits must go hand in hand.
And we should enact visionary policies to prompt long-term economic
growth, prosperity and opportunity for all Americans willing to work
hard to make the most of their God-given abilities. I am hopeful that
Congress will address these important priorities in the coming months.
The SPEAKER pro tempore (Mr. LaTourette). All time for debate has
expired.
Pursuant to House Resolution 360, the previous question is ordered on
the motion.
The question is on the motion offered by the gentleman from
California (Mr. Thomas).
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. THOMAS. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The vote was taken by electronic device, and there were--yeas 417,
nays 3, not voting 15, as follows:
[Roll No. 52]
YEAS--417
Abercrombie
Ackerman
Aderholt
Akin
Allen
Andrews
Armey
Baca
Bachus
Baird
Baker
Baldacci
Baldwin
Ballenger
Barcia
Barr
Barrett
Bartlett
Bass
Becerra
Bereuter
Berkley
Berman
Berry
Biggert
Bilirakis
Bishop
Blumenauer
Blunt
Boehlert
Boehner
Bonilla
Bonior
Bono
Boozman
Borski
Boswell
Boucher
Brady (PA)
Brady (TX)
Brown (FL)
Brown (OH)
Brown (SC)
Bryant
Burr
Burton
Buyer
Callahan
Camp
Cannon
Cantor
Capito
Capps
Capuano
Cardin
Carson (IN)
Carson (OK)
Castle
Chabot
Chambliss
Clay
Clayton
Clement
Clyburn
Coble
Collins
Combest
Conyers
Cooksey
[[Page H767]]
Costello
Cox
Coyne
Cramer
Crane
Crenshaw
Crowley
Culberson
Cummings
Cunningham
Davis (CA)
Davis (FL)
Davis (IL)
Davis, Jo Ann
Davis, Tom
Deal
DeFazio
DeGette
Delahunt
DeLauro
DeLay
DeMint
Deutsch
Diaz-Balart
Dicks
Dingell
Doggett
Dooley
Doolittle
Doyle
Dreier
Duncan
Dunn
Edwards
Ehlers
Ehrlich
Emerson
Engel
English
Eshoo
Etheridge
Evans
Everett
Farr
Fattah
Ferguson
Filner
Flake
Fletcher
Foley
Forbes
Ford
Fossella
Frank
Frelinghuysen
Frost
Ganske
Gekas
Gephardt
Gibbons
Gilchrest
Gillmor
Gilman
Gonzalez
Goode
Goodlatte
Gordon
Goss
Graham
Granger
Graves
Green (TX)
Green (WI)
Greenwood
Grucci
Gutierrez
Gutknecht
Hall (OH)
Hall (TX)
Hansen
Harman
Hart
Hastert
Hastings (FL)
Hastings (WA)
Hayes
Hayworth
Hefley
Herger
Hill
Hilleary
Hilliard
Hinchey
Hinojosa
Hobson
Hoeffel
Hoekstra
Holden
Holt
Honda
Hooley
Horn
Hostettler
Houghton
Hoyer
Hulshof
Hunter
Hyde
Inslee
Isakson
Israel
Issa
Istook
Jackson (IL)
Jefferson
Jenkins
John
Johnson (CT)
Johnson (IL)
Johnson, E. B.
Johnson, Sam
Jones (NC)
Jones (OH)
Kanjorski
Kaptur
Keller
Kelly
Kennedy (MN)
Kennedy (RI)
Kerns
Kildee
Kilpatrick
Kind (WI)
King (NY)
Kingston
Kirk
Kleczka
Knollenberg
Kolbe
Kucinich
LaFalce
LaHood
Lampson
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Linder
Lipinski
LoBiondo
Lowey
Lucas (KY)
Lucas (OK)
Luther
Lynch
Maloney (CT)
Maloney (NY)
Manzullo
Markey
Mascara
Matheson
Matsui
McCarthy (MO)
McCarthy (NY)
McCollum
McCrery
McDermott
McGovern
McHugh
McInnis
McIntyre
McKeon
McKinney
McNulty
Meehan
Meeks (NY)
Menendez
Mica
Millender-McDonald
Miller, Dan
Miller, Gary
Miller, George
Miller, Jeff
Mink
Mollohan
Moore
Moran (KS)
Moran (VA)
Morella
Murtha
Myrick
Nadler
Napolitano
Nethercutt
Ney
Northup
Norwood
Nussle
Oberstar
Obey
Olver
Ortiz
Osborne
Ose
Otter
Owens
Oxley
Pallone
Pascrell
Pastor
Paul
Payne
Pelosi
Pence
Peterson (MN)
Peterson (PA)
Petri
Phelps
Pickering
Pitts
Platts
Pombo
Pomeroy
Portman
Price (NC)
Pryce (OH)
Putnam
Quinn
Radanovich
Rahall
Ramstad
Rangel
Regula
Rehberg
Reyes
Reynolds
Riley
Rivers
Rodriguez
Roemer
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Ross
Rothman
Roukema
Roybal-Allard
Royce
Rush
Ryan (WI)
Ryun (KS)
Sabo
Sanders
Sandlin
Sawyer
Saxton
Schaffer
Schakowsky
Schiff
Schrock
Scott
Sensenbrenner
Serrano
Sessions
Shadegg
Shaw
Shays
Sherman
Sherwood
Shimkus
Shows
Shuster
Simmons
Simpson
Skeen
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Souder
Spratt
Stark
Stearns
Strickland
Stump
Stupak
Sullivan
Sununu
Sweeney
Tancredo
Tanner
Tauscher
Tauzin
Taylor (NC)
Terry
Thomas
Thompson (CA)
Thompson (MS)
Thornberry
Thune
Thurman
Tiahrt
Tiberi
Tierney
Toomey
Towns
Turner
Udall (CO)
Udall (NM)
Upton
Velazquez
Visclosky
Vitter
Walden
Walsh
Wamp
Waters
Watkins (OK)
Watson (CA)
Watt (NC)
Watts (OK)
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Weller
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Wolf
Woolsey
Wu
Wynn
Young (AK)
Young (FL)
NAYS--3
Boyd
Stenholm
Taylor (MS)
NOT VOTING--15
Barton
Bentsen
Blagojevich
Calvert
Condit
Cubin
Gallegly
Jackson-Lee (TX)
Lofgren
Meek (FL)
Neal
Sanchez
Solis
Traficant
Wexler
{time} 1246
Mr. BERRY changed his vote from ``nay'' to ``yea''.
So the motion was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Stated for:
Ms. SOLIS. Mr. Speaker, during rollcall vote No. 52 on H.R. 3090, to
provide tax incentives for economic recovery I was unavoidably
detained. Had I been present, I would have voted ``yea.''
____________________