[Congressional Record Volume 152, Number 102 (Friday, July 28, 2006)]
[House]
[Pages H6171-H6220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ESTATE TAX AND EXTENSION OF TAX RELIEF ACT OF 2006
Mr. THOMAS. Mr. Speaker, pursuant to House Resolution 966, I call up
the bill (H.R. 5970) to amend the Internal Revenue Code of 1986 to
increase the unified credit against the estate tax to an exclusion
equivalent of $5,000,000, to repeal the sunset provision for the estate
and generation-skipping taxes, and to extend expiring provisions, and
for other purposes, and ask for its immediate consideration.
The Clerk read the title of the bill.
The text of H.R. 5970 is as follows:
H.R. 5970
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE, ETC.
(a) Short Title.--This Act may be cited as the ``Estate Tax
and Extension of Tax Relief Act of 2006''.
(b) Reference.--Except as otherwise expressly provided,
whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Internal Revenue Code of
1986
(c) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title, etc.
TITLE I--REFORM AND EXTENSION OF ESTATE TAX AFTER 2009
Sec. 101. Reform and extension of estate tax after 2009.
Sec. 102. Unified credit increased by unused unified credit of deceased
spouse.
TITLE II--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS
Subtitle A--Extension and Modification of Certain Provisions
Sec. 201. Deduction for qualified tuition and related expenses.
Sec. 202. Extension and modification of new markets tax credit.
Sec. 203. Election to deduct State and local general sales taxes.
Sec. 204. Extension and modification of research credit.
Sec. 205. Work opportunity tax credit and welfare-to-work credit.
Sec. 206. Election to include combat pay as earned income for purposes
of earned income credit.
Sec. 207. Extension and modification of qualified zone academy bonds.
Sec. 208. Above-the-line deduction for certain expenses of elementary
and secondary school teachers.
Sec. 209. Extension and expansion of expensing of brownfields
remediation costs.
Sec. 210. Tax incentives for investment in the District of Columbia.
Sec. 211. Indian employment tax credit.
Sec. 212. Accelerated depreciation for business property on Indian
reservations.
Sec. 213. Fifteen-year straight-line cost recovery for qualified
leasehold improvements and qualified restaurant property.
Sec. 214. Cover over of tax on distilled spirits.
Sec. 215. Parity in application of certain limits to mental health
benefits.
Sec. 216. Corporate donations of scientific property used for research
and of computer technology and equipment.
Sec. 217. Availability of medical savings accounts.
Sec. 218. Taxable income limit on percentage depletion for oil and
natural gas produced from marginal properties.
Sec. 219. American Samoa economic development credit.
Sec. 220. Restructuring of New York Liberty Zone tax credits.
Sec. 221. Extension of bonus depreciation for certain qualified Gulf
Opportunity Zone property.
Sec. 222. Authority for undercover operations.
Sec. 223. Disclosures of certain tax return information.
Subtitle B--Other Provisions
Sec. 231. Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico.
Sec. 232. Credit for prior year minimum tax liability made refundable
after period of years.
Sec. 233. Returns required in connection with certain options.
Sec. 234. Partial expensing for advanced mine safety equipment.
Sec. 235. Mine rescue team training tax credit.
Sec. 236. Whistleblower reforms.
Sec. 237. Frivolous tax submissions.
Sec. 238. Addition of meningococcal and human papillomavirus vaccines
to list of taxable vaccines.
Sec. 239. Clarification of taxation of certain settlement funds made
permanent.
Sec. 240. Modification of active business definition under section 355
made permanent.
Sec. 241. Revision of State veterans limit made permanent.
Sec. 242. Capital gains treatment for certain self-created musical
works made permanent.
Sec. 243. Reduction in minimum vessel tonnage which qualifies for
tonnage tax made permanent.
Sec. 244. Modification of special arbitrage rule for certain funds made
permanent.
Sec. 245. Great Lakes domestic shipping to not disqualify vessel from
tonnage tax.
Sec. 246. Use of qualified mortgage bonds to finance residences for
veterans without regard to first-time homebuyer
requirement.
Sec. 247. Exclusion of gain from sale of a principal residence by
certain employees of the intelligence community.
Sec. 248. Treatment of coke and coke gas.
Sec. 249. Sale of property by judicial officers.
Sec. 250. Premiums for mortgage insurance.
Sec. 251. Modification of refunds for kerosene used in aviation.
Sec. 252. Deduction for qualified timber gain.
Sec. 253. Credit to holders of rural renaissance bonds.
Sec. 254. Restoration of deduction for travel expenses of spouse, etc.
accompanying taxpayer on business travel.
Sec. 255. Technical corrections.
TITLE III--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF
2006
Sec. 301. Short title.
Subtitle A--Mining Control and Reclamation
Sec. 311. Abandoned Mine Reclamation Fund and purposes.
Sec. 312. Reclamation fee.
Sec. 313. Objectives of Fund.
Sec. 314. Reclamation of rural land.
Sec. 315. Liens.
Sec. 316. Certification.
Sec. 317. Remining incentives.
Sec. 318. Extension of limitation on application of prohibition on
issuance of permit.
Sec. 319. Tribal regulation of surface coal mining and reclamation
operations.
Subtitle B--Coal Industry Retiree Health Benefit Act
Sec. 321. Certain related persons and successors in interest relieved
of liability if premiums prepaid.
Sec. 322. Transfers to funds; premium relief.
Sec. 323. Other provisions.
TITLE IV--INCREASE IN MINIMUM WAGE
Sec. 401. Minimum Wage.
Sec. 402. Tipped Wage Fairness.
TITLE I--REFORM AND EXTENSION OF ESTATE TAX AFTER 2009
SEC. 101. REFORM AND EXTENSION OF ESTATE TAX AFTER 2009.
(a) Restoration of Unified Credit Against Gift Tax.--
Paragraph (1) of section 2505(a) (relating to general rule
for unified credit against gift tax), after the application
of subsection (g), is amended by striking ``(determined as if
the applicable exclusion amount were $1,000,000)''.
(b) Exclusion Equivalent of Unified Credit Increased to
$5,000,000.--Subsection (c) of section 2010 (relating to
unified credit against estate tax) is amended to read as
follows:
``(c) Applicable Credit Amount.--
``(1) In general.--For purposes of this section, the
applicable credit amount is the amount of the tentative tax
which would be determined under the rate schedule set forth
[[Page H6172]]
in section 2001(c) if the amount with respect to which such
tentative tax is to be computed were the applicable exclusion
amount.
``(2) Applicable exclusion amount.--
``(A) In general.--For purposes of this subsection, the
applicable exclusion amount is as follows:
``(i) For calendar year 2010, $3,750,000.
``(ii) For calendar year 2011, $4,000,000.
``(iii) For calendar year 2012, $4,250,000.
``(iv) For calendar year 2013, $4,500,000.
``(v) For calendar year 2014, $4,750,000.
``(vi) For calendar year 2015 and thereafter, $5,000,000.
``(B) Inflation adjustment.--In the case of any decedent
dying in a calendar year after 2015, the $5,000,000 amount in
subparagraph (A)(vi) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 2014' for `calendar year 1992' in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.''.
(c) Rate Schedule.--
(1) In general.--Subsection (c) of section 2001 (relating
to rate schedule) is amended to read as follows:
``(c) Rate Schedule.--
``(1) In general.--The tentative tax is equal to the sum
of--
``(A) the product of the rate specified in section
1(h)(1)(C) in effect on the date of the decedent's death
multiplied by so much of the sum described in subsection
(b)(1) as does not exceed $25,000,000, and
``(B) the applicable percentage effective on the date of
the decedent's death of so much of the sum described in
subsection (b)(1) as exceeds $25,000,000.
``(2) Applicable percentage.--For purposes of paragraph
(1)(B), the applicable percentage is--
``(A) in the case the decedent's death is in 2010, 40
percent,
``(B) in the case the decedent's death is in 2011, 38
percent,
``(C) in the case the decedent's death is in 2012, 36
percent,
``(D) in the case the decedent's death is in 2013, 34
percent,
``(E) in the case the decedent's death is in 2014, 32
percent, and
``(F) in the case the decedent's death is in 2015 or
thereafter, 30 percent.
``(3) Inflation adjustment.--In the case of any decedent
dying in a calendar year after 2015, each $25,000,000 amount
in subparagraphs (A) and (B) of paragraph (1) shall be
increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 2014' for `calendar year 1992' in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.''.
(2) Conforming amendment.--Section 2502(a) (relating to
computation of tax), after the application of subsection (g),
is amended by adding at the end the following flush sentence:
``In computing the tentative tax under section 2001(c) for
purposes of this subsection, `the last day of the calendar
year in which the gift was made' shall be substituted for
`the date of the decedent's death' each place it appears in
such section.''.
(d) Modifications of Estate and Gift Taxes to Reflect
Differences in Unified Credit Resulting From Different Tax
Rates.--
(1) Estate tax.--
(A) In general.--Section 2001(b)(2) (relating to
computation of tax) is amended by striking ``if the
provisions of subsection (c) (as in effect at the decedent's
death)'' and inserting ``if the modifications described in
subsection (g)''.
(B) Modifications.--Section 2001 is amended by adding at
the end the following new subsection:
``(g) Modifications to Gift Tax Payable to Reflect
Different Tax Rates.--For purposes of applying subsection
(b)(2) with respect to 1 or more gifts, the rates of tax
under subsection (c) in effect on the date of the decedent's
death shall, in lieu of the rates of tax in effect at the
time of such gifts, be used both to compute--
``(1) the tax imposed by chapter 12 with respect to such
gifts, and
``(2) the credit allowed against such tax under section
2505, including in computing--
``(A) the applicable credit amount under section
2505(a)(1), and
``(B) the sum of the amounts allowed as a credit for all
preceding periods under section 2505(a)(2).
For purposes of paragraph (2)(A), the applicable credit
amount for any calendar year before 1998 is the amount which
would be determined under section 2010(c) if the applicable
exclusion amount were the dollar amount under section
6018(a)(1) for such year.''.
(2) Gift tax.--Section 2505(a) (relating to unified credit
against gift tax), after the application of subsection (g),
is amended by adding at the end the following new flush
sentence:
``For purposes of applying paragraph (2) for any calendar
year, the rate schedule under section 2001(c) used in
computing the applicable credit amount under paragraph (1)
for such calendar year shall, in lieu of the rates of tax in
effect for preceding calendar periods, be used in determining
the amounts allowable as a credit under this section for all
preceding calendar periods.''.
(e) Repeal of Deduction for State Death Taxes.--
(1) In general.--Section 2058 (relating to State death
taxes) is amended by adding at the end the following:
``(c) Termination.--This section shall not apply to the
estates of decedents dying after December 31, 2009.''.
(2) Conforming amendment.--Section 2106(a)(4) is amended by
adding at the end the following new sentence: ``This
paragraph shall not apply to the estates of decedents dying
after December 31, 2009.''.
(f) Effective Date.--The amendments made by this section
shall apply to estates of decedents dying, generation-
skipping transfers, and gifts made, after December 31, 2009.
(g) Additional Modifications to Estate Tax.--
(1) In general.--The following provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001, and the
amendments made by such provisions, are hereby repealed:
(A) Subtitles A and E of title V.
(B) Subsection (d), and so much of subsection (f)(3) as
relates to subsection (d), of section 511.
(C) Paragraph (2) of subsection (b), and paragraph (2) of
subsection (e), of section 521.
The Internal Revenue Code of 1986 shall be applied as if such
provisions and amendments had never been enacted.
(2) Sunset not to apply.--Section 901 of the Economic
Growth and Tax Relief Reconciliation Act of 2001 shall not
apply to title V (other than subtitles F, G, and H thereof)
of such Act.
(3) Repeal of deadwood.--
(A) Sections 2011, 2057, and 2604 of the Internal Revenue
Code of 1986 are hereby repealed.
(B) The table of sections for part II of subchapter A of
chapter 11 of such Code is amended by striking the item
relating to section 2011.
(C) The table of sections for part IV of subchapter A of
chapter 11 of such Code is amended by striking the item
relating to section 2057.
(D) The table of sections for subchapter A of chapter 13 of
such Code is amended by striking the item relating to section
2604.
SEC. 102. UNIFIED CREDIT INCREASED BY UNUSED UNIFIED CREDIT
OF DECEASED SPOUSE.
(a) In General.--Subsection (c) of section 2010 (defining
applicable credit amount), as amended by section 101(b), is
amended by striking paragraph (2) and inserting the following
new paragraphs:
``(2) Applicable exclusion amount.--For purposes of this
subsection, the applicable exclusion amount is the sum of--
``(A) the basic exclusion amount, and
``(B) in the case of a surviving spouse, the aggregate
deceased spousal unused exclusion amount.
``(3) Basic exclusion amount.--
``(A) In general.--For purposes of this subsection, the
basic exclusion amount is as follows:
``(i) For calendar year 2010, $3,750,000.
``(ii) For calendar year 2011, $4,000,000.
``(iii) For calendar year 2012, $4,250,000.
``(iv) For calendar year 2013, $4,500,000.
``(v) For calendar year 2014, $4,750,000.
``(vi) For calendar year 2015 and thereafter, $5,000,000.
``(B) Inflation adjustment.--In the case of any decedent
dying in a calendar year after 2015, the $5,000,000 amount in
subparagraph (A)(vi) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year by substituting
`calendar year 2014' for `calendar year 1992' in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.
``(4) Aggregate deceased spousal unused exclusion amount.--
For purposes of this subsection, the term `aggregate deceased
spousal unused exclusion amount' means the lesser of--
``(A) the basic exclusion amount, or
``(B) the sum of the deceased spousal unused exclusion
amounts of the surviving spouse.
``(5) Deceased spousal unused exclusion amount.--For
purposes of this subsection, the term `deceased spousal
unused exclusion amount' means, with respect to the surviving
spouse of any deceased spouse dying after December 31, 2009,
the excess (if any) of--
``(A) the applicable exclusion amount of the deceased
spouse, over
``(B) the amount with respect to which the tentative tax is
determined under section 2001(b)(1) on the estate of such
deceased spouse.
``(6) Special rules.--
``(A) Election required.--A deceased spousal unused
exclusion amount may not be taken into account by a surviving
spouse under paragraph (5) unless the executor of the estate
of the deceased spouse files an estate tax return on which
such amount is computed and makes an election on such return
that such amount may be so taken into
[[Page H6173]]
account. Such election, once made, shall be irrevocable. No
election may be made under this subparagraph if such return
is filed after the time prescribed by law (including
extensions) for filing such return.
``(B) Examination of prior returns after expiration of
period of limitations with respect to deceased spousal unused
exclusion amount.--Notwithstanding any period of limitation
in section 6501, after the time has expired under section
6501 within which a tax may be assessed under chapter 11 or
12 with respect to a deceased spousal unused exclusion
amount, the Secretary may examine a return of the deceased
spouse to make determinations with respect to such amount for
purposes of carrying out this subsection.
``(7) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
this subsection.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 2505(a), as amended by section
101, is amended to read as follows:
``(1) the applicable credit amount under section 2010(c)
which would apply if the donor died as of the end of the
calendar year, reduced by''.
(2) Section 2631(c) is amended by striking ``the applicable
exclusion amount'' and inserting ``the basic exclusion
amount''.
(3) Section 6018(a)(1), after the application of section
101(g), is amended by striking ``applicable exclusion
amount'' and inserting ``basic exclusion amount''.
(c) Effective Date.--The amendments made by this section
shall apply to estates of decedents dying, generation-
skipping transfers, and gifts made, after December 31, 2009.
TITLE II--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS
Subtitle A--Extension and Modification of Certain Provisions
SEC. 201. DEDUCTION FOR QUALIFIED TUITION AND RELATED
EXPENSES.
(a) In General.--Section 222(e) is amended by striking
``2005''and inserting ``2007''.
(b) Conforming Amendments.--Section 222(b)(2)(B) is
amended--
(1) by striking ``a taxable year beginning in 2004 or
2005'' and inserting ``any taxable year beginning after
2003'', and
(2) by striking ``2004 and 2005'' in the heading and
inserting ``After 2003''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 202. EXTENSION AND MODIFICATION OF NEW MARKETS TAX
CREDIT.
(a) Extension.--Section 45D(f)(1)(D) is amended by striking
``and 2007'' and inserting ``, 2007, and 2008''.
(b) Regulations Regarding Non-Metropolitan Counties.--
Section 45D(i) is amended by striking ``and'' at the end of
paragraph (4), by striking the period at the end of paragraph
(5) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(6) which ensure that non-metropolitan counties receive a
proportional allocation of qualified equity investments.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 203. ELECTION TO DEDUCT STATE AND LOCAL GENERAL SALES
TAXES.
(a) In General.--Section 164(b)(5)(I) is amended by
striking ``2006'' and inserting ``2008''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 204. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Extension.--
(1) In general.--Section 41(h)(1)(B) is amended by striking
``2005'' and inserting ``2007''.
(2) Conforming amendment.--Section 45C(b)(1)(D) is amended
by striking ``2005'' and inserting ``2007''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2005.
(b) Increase in Rates of Alternative Incremental Credit.--
(1) In general.--Subparagraph (A) of section 41(c)(4)
(relating to election of alternative incremental credit) is
amended--
(A) by striking ``2.65 percent'' and inserting ``3
percent'',
(B) by striking ``3.2 percent'' and inserting ``4
percent'', and
(C) by striking ``3.75 percent'' and inserting ``5
percent''.
(2) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2006.
(c) Alternative Simplified Credit for Qualified Research
Expenses.--
(1) In general.--Subsection (c) of section 41 (relating to
base amount) is amended by redesignating paragraphs (5) and
(6) as paragraphs (6) and (7), respectively, and by inserting
after paragraph (4) the following new paragraph:
``(5) Election of alternative simplified credit.--
``(A) In general.--At the election of the taxpayer, the
credit determined under subsection (a)(1) shall be equal to
12 percent of so much of the qualified research expenses for
the taxable year as exceeds 50 percent of the average
qualified research expenses for the 3 taxable years preceding
the taxable year for which the credit is being determined.
``(B) Special rule in case of no qualified research
expenses in any of 3 preceding taxable years.--
``(i) Taxpayers to which subparagraph applies.--The credit
under this paragraph shall be determined under this
subparagraph if the taxpayer has no qualified research
expenses in any one of the 3 taxable years preceding the
taxable year for which the credit is being determined.
``(ii) Credit rate.--The credit determined under this
subparagraph shall be equal to 6 percent of the qualified
research expenses for the taxable year.
``(C) Election.--An election under this paragraph shall
apply to the taxable year for which made and all succeeding
taxable years unless revoked with the consent of the
Secretary. An election under this paragraph may not be made
for any taxable year to which an election under paragraph (4)
applies.''.
(2) Coordination with election of alternative incremental
credit.--
(A) In general.--Section 41(c)(4)(B) (relating to election)
is amended by adding at the end the following: ``An election
under this paragraph may not be made for any taxable year to
which an election under paragraph (5) applies.''.
(B) Transition rule.--In the case of an election under
section 41(c)(4) of the Internal Revenue Code of 1986 which
applies to the taxable year which includes the date of the
enactment of this Act, such election shall be treated as
revoked with the consent of the Secretary of the Treasury if
the taxpayer makes an election under section 41(c)(5) of such
Code (as added by subsection (c)) for such year.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2006.
SEC. 205. WORK OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK
CREDIT.
(a) In General.--Sections 51(c)(4)(B) and 51A(f) are each
amended by striking ``2005'' and inserting ``2007''.
(b) Eligibility of Ex-Felons Determined Without Regard to
Family Income.--Paragraph (4) of section 51(d) is amended by
adding ``and'' at the end of subparagraph (A), by striking
``, and'' at the end of subparagraph (B) and inserting a
period, and by striking all that follows subparagraph (B).
(c) Increase in Maximum Age for Eligibility of Food Stamp
Recipients.--Clause (i) of section 51(d)(8)(A) is amended by
striking ``25'' and inserting ``40''.
(d) Extension of Paperwork Filing Deadline.--Section
51(d)(12)(A)(ii)(II) is amended by striking ``21st day'' and
inserting ``28th day''.
(e) Consolidation of Work Opportunity Credit With Welfare-
to-Work Credit.--
(1) In general.--Paragraph (1) of section 51(d) is amended
by striking ``or'' at the end of subparagraph (G), by
striking the period at the end of subparagraph (H) and
inserting ``, or'', and by adding at the end the following
new subparagraph:
``(I) a long-term family assistance recipient.''.
(2) Long-term family assistance recipient.--Subsection (d)
of section 51 is amended by redesignating paragraphs (10)
through (12) as paragraphs (11) through (13), respectively,
and by inserting after paragraph (9) the following new
paragraph:
``(10) Long-term family assistance recipient.--The term
`long-term family assistance recipient' means any individual
who is certified by the designated local agency--
``(A) as being a member of a family receiving assistance
under a IV-A program (as defined in paragraph (2)(B)) for at
least the 18-month period ending on the hiring date,
``(B)(i) as being a member of a family receiving such
assistance for 18 months beginning after August 5, 1997, and
``(ii) as having a hiring date which is not more than 2
years after the end of the earliest such 18-month period, or
``(C)(i) as being a member of a family which ceased to be
eligible for such assistance by reason of any limitation
imposed by Federal or State law on the maximum period such
assistance is payable to a family, and
``(ii) as having a hiring date which is not more than 2
years after the date of such cessation.''.
(3) Increased credit for employment of long-term family
assistance recipients.--Section 51 is amended by inserting
after subsection (d) the following new subsection:
``(e) Credit for Second-Year Wages for Employment of Long-
Term Family Assistance Recipients.--
``(1) In general.--With respect to the employment of a
long-term family assistance recipient--
``(A) the amount of the work opportunity credit determined
under this section for the taxable year shall include 50
percent of the qualified second-year wages for such year, and
``(B) in lieu of applying subsection (b)(3), the amount of
the qualified first-year wages, and the amount of qualified
second-year wages, which may be taken into account with
respect to such a recipient shall not exceed $10,000 per
year.
``(2) Qualified second-year wages.--For purposes of this
subsection, the term `qualified second-year wages' means
qualified wages--
``(A) which are paid to a long-term family assistance
recipient, and
``(B) which are attributable to service rendered during the
1-year period beginning on
[[Page H6174]]
the day after the last day of the 1-year period with respect
to such recipient determined under subsection (b)(2).
``(3) Special rules for agricultural and railway labor.--If
such recipient is an employee to whom subparagraph (A) or (B)
of subsection (h)(1) applies, rules similar to the rules of
such subparagraphs shall apply except that--
``(A) such subparagraph (A) shall be applied by
substituting `$10,000' for `$6,000', and
``(B) such subparagraph (B) shall be applied by
substituting `$833.33' for `$500'.''.
(4) Repeal of separate welfare-to-work credit.--
(A) In general.--Section 51A is hereby repealed.
(B) Clerical amendment.--The table of sections for subpart
F of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 51A.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to individuals
who begin work for the employer after December 31, 2005.
(2) Consolidation.--The amendments made by subsections (b),
(c), (d), and (e) shall apply to individuals who begin work
for the employer after December 31, 2006.
SEC. 206. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR
PURPOSES OF EARNED INCOME CREDIT.
(a) In General.--Section 32(c)(2)(B)(vi)(II) is amended by
striking ``2007'' and inserting ``2008''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 207. EXTENSION AND MODIFICATION OF QUALIFIED ZONE
ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) is
amended by striking ``and 2005'' and inserting ``2005, 2006,
and 2007''.
(b) Special Rules Relating to Expenditures, Arbitrage, and
Reporting.--
(1) In general.--Section 1397E is amended--
(A) in subsection (d)(1), by striking ``and'' at the end of
subparagraph (C)(iii), by striking the period at the end of
subparagraph (D) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(E) the issue meets the requirements of subsections (f),
(g), and (h).'', and
(B) by redesignating subsections (f), (g), (h), and (i) as
subsection (i), (j), (k), and (l), respectively, and by
inserting after subsection (e) the following new subsections:
``(f) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of
issuance, the issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the sale of
the issue are to be spent for 1 or more qualified purposes
with respect to qualified zone academies within the 5-year
period beginning on the date of issuance of the qualified
zone academy bond,
``(B) a binding commitment with a third party to spend at
least 10 percent of the proceeds from the sale of the issue
will be incurred within the 6-month period beginning on the
date of issuance of the qualified zone academy bond, and
``(C) such purposes will be completed with due diligence
and the proceeds from the sale of the issue will be spent
with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the issuer
establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related
purposes will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of
the proceeds of such issue are expended by the close of the
5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close
of the extended period), the issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such
period. For purposes of this paragraph, the amount of the
nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(g) Special Rules Relating to Arbitrage.--An issue shall
be treated as meeting the requirements of this subsection if
the issuer satisfies the arbitrage requirements of section
148 with respect to proceeds of the issue.
``(h) Reporting.--Issuers of qualified academy zone bonds
shall submit reports similar to the reports required under
section 149(e).''.
(2) Conforming amendments.--Sections 54(l)(3)(B) and
1400N(l)(7)(B)(ii) are each amended by striking ``section
1397E(i)'' and inserting ``section 1397E(l)''.
(c) Effective Dates.--
(1) Extension.--The amendment made by subsection (a) shall
apply to obligations issued after December 31, 2005.
(2) Special rules.--The amendments made by subsection (b)
shall apply to obligations issued after the date of the
enactment of this Act pursuant to allocations of the national
zone academy bond limitation for calendar years after 2005.
SEC. 208. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF
ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is
amended by striking ``or 2005'' and inserting ``2005, 2006,
or 2007''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 209. EXTENSION AND EXPANSION OF EXPENSING OF BROWNFIELDS
REMEDIATION COSTS.
(a) Extension.--Subsection (h) of section 198 is amended by
striking ``2005'' and inserting ``2007''.
(b) Expansion.--Section 198(d)(1) (defining hazardous
substance) is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(C) any petroleum product (as defined in section
4612(a)(3)).''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures paid or incurred after December
31, 2005.
SEC. 210. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
COLUMBIA.
(a) Designation of Zone.--
(1) In general.--Subsection (f) of section 1400 is amended
by striking ``2005'' both places it appears and inserting
``2007''.
(2) Effective date.--The amendments made by this subsection
shall apply to periods beginning after December 31, 2005.
(b) Tax-Exempt Economic Development Bonds.--
(1) In general.--Subsection (b) of section 1400A is amended
by striking ``2005'' and inserting ``2007''.
(2) Effective date.--The amendment made by this subsection
shall apply to bonds issued after December 31, 2005.
(c) Zero Percent Capital Gains Rate.--
(1) In general.--Subsection (b) of section 1400B is amended
by striking ``2006'' each place it appears and inserting
``2008''.
(2) Conforming amendments.--
(A) Section 1400B(e)(2) is amended--
(i) by striking ``2010'' and inserting ``2012'', and
(ii) by striking ``2010'' in the heading thereof and
inserting ``2012''.
(B) Section 1400B(g)(2) is amended by striking ``2010'' and
inserting ``2012''.
(C) Section 1400F(d) is amended by striking ``2010'' and
inserting ``2012''.
(3) Effective dates.--
(A) Extension.--The amendments made by paragraph (1) shall
apply to acquisitions after December 31, 2005.
(B) Conforming amendments.--The amendments made by
paragraph (2) shall take effect on the date of the enactment
of this Act.
(d) First-Time Homebuyer Credit.--
(1) In general.--Subsection (i) of section 1400C is amended
by striking ``2006'' and inserting ``2008''.
(2) Effective date.--The amendment made by this subsection
shall apply to property purchased after December 31, 2005.
SEC. 211. INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Section 45A(f) is amended by striking
``2005'' and inserting ``2007''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 212. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON
INDIAN RESERVATIONS.
(a) In General.--Section 168(j)(8) is amended by striking
``2005'' and inserting ``2007''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2005.
SEC. 213. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR
QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED
RESTAURANT PROPERTY.
(a) In General.--Clauses (iv) and (v) of section
168(e)(3)(E) are each amended by striking ``2006'' and
inserting ``2008''.
(b) Treatment of Restaurant Property to Include New
Construction.--Paragraph (7) of section 168(e) (relating to
classification of property) is amended to read as follows:
``(7) Qualified restaurant property.--The term `qualified
restaurant property' means any section 1250 property which is
a building or an improvement to a building if more than 50
percent of the building's square footage is devoted to
preparation of, and seating for on-premises consumption of,
prepared meals.''.
(c) Effective Dates.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to property placed in service after December 31,
2005.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 214. COVER OVER OF TAX ON DISTILLED SPIRITS.
(a) In General.--Section 7652(f)(1) is amended by striking
``2006'' and inserting ``2008''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to articles brought into the United States after
December 31, 2005.
SEC. 215. PARITY IN APPLICATION OF CERTAIN LIMITS TO MENTAL
HEALTH BENEFITS.
(a) Amendment to the Internal Revenue Code of 1986.--
Section 9812(f)(3) is amended by striking ``2006'' and
inserting ``2007''.
(b) Amendment to the Employee Retirement Income Security
Act of 1974.--Section 712(f) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1185a(f)) is amended
by striking ``2006'' and inserting ``2007''.
(c) Amendment to the Public Health Service Act.--Section
2705(f) of the Public
[[Page H6175]]
Health Service Act (42 U.S.C. 300gg-5(f)) is amended by
striking ``2006''and inserting ``2007''.
SEC. 216. CORPORATE DONATIONS OF SCIENTIFIC PROPERTY USED FOR
RESEARCH AND OF COMPUTER TECHNOLOGY AND
EQUIPMENT.
(a) Extension of Computer Technology and Equipment
Donation.--
(1) In general.--Section 170(e)(6)(G) is amended by
striking ``2005'' and inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to contributions made in taxable years beginning
after December 31, 2005.
(b) Expansion of Charitable Contribution Allowed for
Scientific Property Used for Research and for Computer
Technology and Equipment Used for Educational Purposes.--
(1) Scientific property used for research.--
(A) In general.--Clause (ii) of section 170(e)(4)(B)
(defining qualified research contributions) is amended by
inserting ``or assembled'' after ``constructed''.
(B) Conforming amendment.--Clause (iii) of section
170(e)(4)(B) is amended by inserting ``or assembly'' after
``construction''.
(2) Computer technology and equipment for educational
purposes.--
(A) In general.--Clause (ii) of section 170(e)(6)(B) is
amended by inserting ``or assembled'' after ``constructed''
and ``or assembling'' after ``construction''.
(B) Conforming amendment.--Subparagraph (D) of section
170(e)(6) is amended by inserting ``or assembled'' after
``constructed'' and ``or assembly'' after ``construction''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2005.
SEC. 217. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) In General.--Paragraphs (2) and (3)(B) of section
220(i) are each amended by striking ``2005'' each place it
appears in the text and headings and inserting ``2007''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 220(j) is amended--
(A) in the text by striking ``or 2004'' each place it
appears and inserting ``2004, 2005, or 2006'', and
(B) in the heading by striking ``or 2004'' and inserting
``2004, 2005, or 2006'' .
(2) Subparagraph (A) of section 220(j)(4) is amended by
striking ``and 2004'' and inserting ``2004, 2005, and 2006''.
(c) Time for Filing Reports, etc.--
(1) The report required by section 220(j)(4) of the
Internal Revenue Code of 1986 to be made on August 1, 2005,
shall be treated as timely if made before the close of the
90-day period beginning on the date of the enactment of this
Act.
(2) The determination and publication required by section
220(j)(5) of such Code with respect to calendar year 2005
shall be treated as timely if made before the close of the
120-day period beginning on the date of the enactment of this
Act. If the determination under the preceding sentence is
that 2005 is a cut-off year under section 220(i) of such
Code, the cut-off date under such section 220(i) shall be the
last day of such 120-day period.
SEC. 218. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR
OIL AND NATURAL GAS PRODUCED FROM MARGINAL
PROPERTIES.
(a) In General.--Section 613A(c)(6)(H) is amended by
striking ``2006'' and inserting ``2008''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2005.
SEC. 219. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.
(a) In General.--For purposes of section 30A of the
Internal Revenue Code of 1986, a domestic corporation shall
be treated as a qualified domestic corporation to which such
section applies if such corporation--
(1) is an existing credit claimant with respect to American
Samoa, and
(2) elected the application of section 936 of the Internal
Revenue Code of 1986 for its last taxable year beginning
before January 1, 2006.
(b) Special Rules for Application of Section.--The
following rules shall apply in applying section 30A of the
Internal Revenue Code of 1986 for purposes of this section:
(1) Amount of credit.--Notwithstanding section 30A(a)(1) of
such Code, the amount of the credit determined under section
30A(a)(1) of such Code for any taxable year shall be the
amount determined under section 30A(d) of such Code, except
that section 30A(d) shall be applied without regard to
paragraph (3) thereof.
(2) Separate application.--In applying section 30A(a)(3) of
such Code in the case of a corporation treated as a qualified
domestic corporation by reason of this section, section 30A
of such Code (and so much of section 936 of such Code as
relates to such section 30A) shall be applied separately with
respect to American Samoa.
(3) Foreign tax credit allowed.--Notwithstanding section
30A(e) of such Code, the provisions of section 936(c) of such
Code shall not apply with respect to the credit allowed by
reason of this section.
(c) Definitions.--For purposes of this section, any term
which is used in this section which is also used in section
30A or 936 of such Code shall have the same meaning given
such term by such section 30A or 936.
(d) Application of Section.--Notwithstanding section 30A(h)
or section 936(j) of such Code, this section (and so much of
section 30A and section 936 of such Code as relates to this
section) shall apply to the first two taxable years of a
corporation to which subsection (a) applies which begin after
December 31, 2005, and before January 1, 2008.
SEC. 220. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as 1400K and by adding
at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so much of the portion of the qualifying
project expenditure amount allocated under subsection (b)(3)
to such governmental unit for the calendar year as is
allocated by such governmental unit to such period under
subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes
of this section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum
of--
``(A) the total expenditures paid or incurred during such
calendar year by all New York Liberty Zone governmental units
and the Port Authority of New York and New Jersey for any
portion of qualifying projects located wholly within the City
of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which
begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports,
and waterways, in or connecting with the New York Liberty
Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the City
of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York
and the Mayor of the City of New York, New York, shall
jointly allocate to each New York Liberty Zone governmental
unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit
under subsection (a) for any calendar year in the credit
period.
``(B) Aggregate limit.--The aggregate amount which may be
allocated under subparagraph (A) for all calendar years in
the credit period shall not exceed $1,750,000,000.
``(C) Annual limit.--
``(i) In general.--The aggregate amount which may be
allocated under subparagraph (A) for any calendar year in the
credit period shall not exceed the sum of--
``(I) the applicable limit, plus
``(II) the aggregate amount authorized to be allocated
under this paragraph for all preceding calendar years in the
credit period which was not so allocated.
``(ii) Applicable limit.--For purposes of clause (i), the
applicable limit for any calendar year is--
``(I) in the case of calendar years 2007 through 2016,
$100,000,000,
``(II) in the case of calendar year 2017 or 2018,
$200,000,000,
``(III) in the case of calendar year 2019, $150,000,000,
``(IV) in the case of calendar year 2020 or 2021,
$100,000,000, and
``(V) in the case of any calendar year after 2021, zero.
``(D) Unallocated amounts at end of credit period.--If, as
of the close of the credit period, the amount under
subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the
City of New York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year in the
5-year period following the credit period an amount equal
to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated under this
subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year. No
amount
[[Page H6176]]
may be carried under the preceding sentence to a calendar
year after 2026.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it
under subsection (b)(3) within the time prescribed by the
Governor of the State of New York and the Mayor of the City
of New York, New York, then such amount shall after such time
be treated for purposes of subsection (b)(3) in the same
manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
15-year period beginning on January 1, 2007.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for
the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having
paid to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit
allowed to such entity under subsection (a) with respect to
such wages, but only if such governmental unit deducts and
withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the
calendar year, and
``(B) the amount allocated to each New York Liberty Zone
governmental unit under subsection (b)(3) for the calendar
year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance
as may be necessary or appropriate to ensure compliance with
the purposes of this section.
``(g) Termination.--No credit shall be allowed under
subsection (a) for any calender year after 2026.''.
(b) Termination of Certain New York Liberty Zone
Benefits.--
(1) Special allowance and expensing.--Section
1400K(b)(2)(A)(v), as redesignated by subsection (a), is
amended by striking ``the termination date'' and inserting
``the date of the enactment of the Estate Tax and Extension
of Tax Relief Act of 2006 or the termination date if pursuant
to a binding contract in effect on such enactment date''.
(2) Leasehold.--Section 1400K(c)(2)(B), as so redesignated,
is amended by striking ``before January 1, 2007'' and
inserting ``on or before the date of the enactment of the
Estate Tax and Extension of Tax Relief Act of 2006 or before
January 1, 2007, if pursuant to a binding contract in effect
on such enactment date''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by striking ``1400L'' and inserting
``1400K''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to periods
beginning after December 31, 2006.
(2) Subsection (b).--The amendments made by subsection (b)
shall take effect as if included in section 301 of the Job
Creation and Worker Assistance Act of 2002.
SEC. 221. EXTENSION OF BONUS DEPRECIATION FOR CERTAIN
QUALIFIED GULF OPPORTUNITY ZONE PROPERTY.
(a) In General.--Subsection (d) of section 1400N is amended
by adding at the end the following new paragraph:
``(6) Extension for certain property.--
``(A) In general.--In the case of any specified Gulf
Opportunity Zone extension property, paragraph (2)(A) shall
be applied without regard to clause (v) thereof.
``(B) Specified gulf opportunity zone extension property.--
For purposes of this paragraph, the term `specified Gulf
Opportunity Zone extension property' means property--
``(i) substantially all of the use of which is in one or
more specified portions of the GO Zone, and
``(ii) which is--
``(I) nonresidential real property or residential rental
property which is placed in service by the taxpayer on or
before December 31, 2009, or
``(II) in the case of a taxpayer who places a building
described in subclause (I) in service on or before December
31, 2009, property described in section 168(k)(2)(A)(i) if
substantially all of the use of such property is in such
building and such property is placed in service by the
taxpayer not later than 90 days after such building is placed
in service.
``(C) Specified portions of the go zone.--For purposes of
this paragraph, the term `specified portions of the GO Zone'
means those portions of the GO Zone which are in any county
or parish which is identified by the Secretary as being a
county or parish in which hurricanes occurring during 2005
damaged (in the aggregate) more than 40 percent of the
housing units in such county or parish which were occupied
(determined according to the 2000 Census).''.
(b) Extension Not Applicable to Increased Section 179
Expensing.--Paragraph (2) of section 1400N(e) is amended by
inserting ``without regard to subsection (d)(6)'' after
``subsection (d)(2)''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 101 of the Gulf
Opportunity Zone Act of 2005.
SEC. 222. AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6) of section 7608(c) (relating to application
of section) is amended by striking ``2007'' both places it
appears and inserting ``2008''.
SEC. 223. DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.
(a) Disclosures To Facilitate Combined Employment Tax
Reporting.--
(1) In general.--Subparagraph (B) of section 6103(d)(5)
(relating to termination) is amended by striking ``2006'' and
inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to disclosures after December 31, 2006.
(b) Disclosures Relating to Terrorist Activities.--
(1) In general.--Clause (iv) of section 6103(i)(3)(C) and
subparagraph (E) of section 6103(i)(7) are each amended by
striking ``2006'' and inserting ``2007''.
(2) Effective date.--The amendments made by paragraph (1)
shall apply to disclosures after December 31, 2006.
(c) Disclosures Relating to Student Loans.--
(1) In general.--Subparagraph (D) of section 6103(l)(13)
(relating to termination) is amended by striking ``2006'' and
inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to requests made after December 31, 2006.
Subtitle B--Other Provisions
SEC. 231. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES
IN PUERTO RICO.
(a) In General.--Subsection (d) of section 199 (relating to
definitions and special rules) is amended by redesignating
paragraph (8) as paragraph (9) and by inserting after
paragraph (7) the following new paragraph:
``(8) Treatment of activities in puerto rico.--
``(A) In general.--In the case of any taxpayer with gross
receipts for any taxable year from sources within the
Commonwealth of Puerto Rico, if all of such receipts are
taxable under section 1 or 11 for such taxable year, then for
purposes of determining the domestic production gross
receipts of such taxpayer for such taxable year under
subsection (c)(4), the term `United States' shall include the
Commonwealth of Puerto Rico.
``(B) Special rule for applying wage limitation.--In the
case of any taxpayer described in subparagraph (A), for
purposes of applying the limitation under subsection (b) for
any taxable year, the determination of W-2 wages of such
taxpayer shall be made without regard to any exclusion under
section 3401(a)(8) for remuneration paid for services
performed in Puerto Rico.
``(C) Termination.--This paragraph shall apply only with
respect to the first 2 taxable years of the taxpayer
beginning after December 31, 2005, and before January 1,
2008.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2005.
SEC. 232. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY MADE
REFUNDABLE AFTER PERIOD OF YEARS.
(a) In General.--Section 53 (relating to credit for prior
year minimum tax liability) is amended by adding at the end
the following new subsection:
``(e) Special Rule for Individuals With Long-Term Unused
Credits.--
``(1) In general.--If an individual has a long-term unused
minimum tax credit for any taxable year beginning before
January 1, 2013, the amount determined under subsection (c)
for such taxable year shall not be less than the AMT
refundable credit amount for such taxable year.
``(2) Amt refundable credit amount.--For purposes of
paragraph (1)--
``(A) In general.--The term `AMT refundable credit amount'
means, with respect to any taxable year, the amount equal to
the greater of--
``(i) the lesser of--
``(I) $5,000, or
``(II) the amount of long-term unused minimum tax credit
for such taxable year, or
``(ii) 20 percent of the amount of such credit.
``(B) Phaseout of amt refundable credit amount.--
``(i) In general.--In the case of an individual whose
adjusted gross income for any taxable year exceeds the
threshold amount (within the meaning of section
151(d)(3)(C)), the AMT refundable credit amount determined
under subparagraph (A) for such taxable year shall be reduced
by the applicable
[[Page H6177]]
percentage (within the meaning of section 151(d)(3)(B)).
``(ii) Adjusted gross income.--For purposes of clause (i),
adjusted gross income shall be determined without regard to
sections 911, 931, and 933.
``(3) Long-term unused minimum tax credit.--
``(A) In general.--For purposes of this subsection, the
term `long-term unused minimum tax credit' means, with
respect to any taxable year, the portion of the minimum tax
credit determined under subsection (b) attributable to the
adjusted net minimum tax for taxable years before the 3rd
taxable year immediately preceding such taxable year.
``(B) First-in, first-out ordering rule.--For purposes of
subparagraph (A), credits shall be treated as allowed under
subsection (a) on a first-in, first-out basis.
``(4) Credit refundable.--For purposes of this title (other
than this section), the credit allowed by reason of this
subsection shall be treated as if it were allowed under
subpart C.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by striking ``and 34''
and inserting ``34, and 53(e)''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 53(e)'' after
``section 35''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 233. RETURNS REQUIRED IN CONNECTION WITH CERTAIN
OPTIONS.
(a) In General.--So much of section 6039(a) as follows
paragraph (2) is amended to read as follows:
``shall, for such calendar year, make a return at such time
and in such manner, and setting forth such information, as
the Secretary may by regulations prescribe.''.
(b) Statements to Persons With Respect to Whom Information
Is Furnished.--Section 6039 is amended by redesignating
subsections (b) and (c) as subsection (c) and (d),
respectively, and by inserting after subsection (a) the
following new subsection:
``(b) Statements to Be Furnished to Persons With Respect to
Whom Information Is Reported.--Every corporation making a
return under subsection (a) shall furnish to each person
whose name is set forth in such return a written statement
setting forth such information as the Secretary may by
regulations prescribe. The written statement required under
the preceding sentence shall be furnished to such person on
or before January 31 of the year following the calendar year
for which the return under subsection (a) was made.''.
(c) Conforming Amendments.--
(1) Section 6724(d)(1)(B) is amended by striking ``or'' at
the end of clause (xvii), by striking ``and'' at the end of
clause (xviii) and inserting ``or'', and by adding at the end
the following new clause:
``(xix) section 6039(a) (relating to returns required with
respect to certain options), and''.
(2) Section 6724(d)(2)(B) is amended by striking ``section
6039(a)'' and inserting ``section 6039(b)''.
(3) The heading of section 6039 and the item relating to
such section in the table of sections of subpart A of part
III of subchapter A of chapter 61 of such Code are each
amended by striking ``Information'' and inserting
``Returns''.
(4) The heading of subsection (a) of section 6039 is
amended by striking ``Furnishing of Information'' and
inserting ``Requirement of Reporting''.
(d) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after the date of the
enactment of this Act.
SEC. 234. PARTIAL EXPENSING FOR ADVANCED MINE SAFETY
EQUIPMENT.
(a) In General.--Part VI of subchapter B of chapter 1 is
amended by inserting after section 179D the following new
section:
``SEC. 179E. ELECTION TO EXPENSE ADVANCED MINE SAFETY
EQUIPMENT.
``(a) Treatment as Expenses.--A taxpayer may elect to treat
50 percent of the cost of any qualified advanced mine safety
equipment property as an expense which is not chargeable to
capital account. Any cost so treated shall be allowed as a
deduction for the taxable year in which the qualified
advanced mine safety equipment property is placed in service.
``(b) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the
tax imposed by this chapter for the taxable year. Such
election shall specify the advanced mine safety equipment
property to which the election applies and shall be made in
such manner as the Secretary may by regulations prescribe.
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(c) Qualified Advanced Mine Safety Equipment Property.--
For purposes of this section, the term `qualified advanced
mine safety equipment property' means any advanced mine
safety equipment property for use in any underground mine
located in the United States--
``(1) the original use of which commences with the
taxpayer, and
``(2) which is placed in service by the taxpayer after the
date of the enactment of this section.
``(d) Advanced Mine Safety Equipment Property.--For
purposes of this section, the term `advanced mine safety
equipment property' means any of the following:
``(1) Emergency communication technology or device which is
used to allow a miner to maintain constant communication with
an individual who is not in the mine.
``(2) Electronic identification and location device which
allows an individual who is not in the mine to track at all
times the movements and location of miners working in or at
the mine.
``(3) Emergency oxygen-generating, self-rescue device which
provides oxygen for at least 90 minutes.
``(4) Pre-positioned supplies of oxygen which (in
combination with self-rescue devices) can be used to provide
each miner on a shift, in the event of an accident or other
event which traps the miner in the mine or otherwise
necessitates the use of such a self-rescue device, the
ability to survive for at least 48 hours.
``(5) Comprehensive atmospheric monitoring system which
monitors the levels of carbon monoxide, methane, and oxygen
that are present in all areas of the mine and which can
detect smoke in the case of a fire in a mine.
``(e) Coordination With Section 179.--No expenditures shall
be taken into account under subsection (a) with respect to
the portion of the cost of any property specified in an
election under section 179.
``(f) Reporting.--No deduction shall be allowed under
subsection (a) to any taxpayer for any taxable year unless
such taxpayer files with the Secretary a report containing
such information with respect to the operation of the mines
of the taxpayer as the Secretary shall require.
``(g) Termination.--This section shall not apply to
property placed in service after December 31, 2008.''.
(b) Conforming Amendments.--
(1) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (J), by striking the period at the end of
subparagraph (K) and inserting ``, or'', and by inserting
after subparagraph (K) the following new subparagraph:
``(L) expenditures for which a deduction is allowed under
section 179E.''.
(2) Section 312(k)(3)(B) is amended by striking ``or 179D''
each place it appears in the heading and text thereof and
inserting ``179D, or 179E''.
(3) Paragraphs (2)(C) and (3)(C) of section 1245(a) are
each amended by inserting ``179E,'' after ``179D,''.
(4) The table of sections for part VI of subchapter B of
chapter 1 is amended by inserting after the item relating to
section 179D the following new item:
``Sec. 179E. Election to expense advanced mine safety equipment.''.
(c) Effective Date.--The amendments made by this section
shall apply to costs paid or incurred after the date of the
enactment of this Act.
SEC. 235. MINE RESCUE TEAM TRAINING TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by adding at the end the following new section:
``SEC. 45N. MINE RESCUE TEAM TRAINING CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the
mine rescue team training credit determined under this
section with respect to each qualified mine rescue team
employee of an eligible employer for any taxable year is an
amount equal to the lesser of--
``(1) 20 percent of the amount paid or incurred by the
taxpayer during the taxable year with respect to the training
program costs of such qualified mine rescue team employee
(including wages of such employee while attending such
program), or
``(2) $10,000.
``(b) Qualified Mine Rescue Team Employee.--For purposes of
this section, the term `qualified mine rescue team employee'
means with respect to any taxable year any full-time employee
of the taxpayer who is--
``(1) a miner eligible for more than 6 months of such
taxable year to serve as a mine rescue team member as a
result of completing, at a minimum, an initial 20-hour course
of instruction as prescribed by the Mine Safety and Health
Administration's Office of Educational Policy and
Development, or
``(2) a miner eligible for more than 6 months of such
taxable year to serve as a mine rescue team member by virtue
of receiving at least 40 hours of refresher training in such
instruction.
``(c) Eligible Employer.--For purposes of this section, the
term `eligible employer' means any taxpayer which employs
individuals as miners in underground mines in the United
States.
``(d) Wages.--For purposes of this section, the term
`wages' has the meaning given to such term by subsection (b)
of section 3306 (determined without regard to any dollar
limitation contained in such section).
``(e) Termination.--This section shall not apply to taxable
years beginning after December 31, 2008.''.
(b) Credit Made Part of General Business Credit.--Section
38(b) is amended by striking ``and'' at the end of paragraph
(29), by striking the period at the end of paragraph (30) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(31) the mine rescue team training credit determined
under section 45N(a).''.
[[Page H6178]]
(c) No Double Benefit.--Section 280C is amended by adding
at the end the following new subsection:
``(e) Mine Rescue Team Training Credit.--No deduction shall
be allowed for that portion of the expenses otherwise
allowable as a deduction for the taxable year which is equal
to the amount of the credit determined for the taxable year
under section 45N(a).''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:
``Sec. 45N. Mine rescue team training credit.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 236. WHISTLEBLOWER REFORMS.
(a) Awards to Whistleblowers.--
(1) In general.--Section 7623 (relating to expenses of
detection of underpayments and fraud, etc.) is amended--
(A) by striking ``The Secretary'' and inserting ``(a) In
General.--The Secretary'',
(B) by striking ``and'' at the end of paragraph (1) and
inserting ``or'',
(C) by striking ``(other than interest)'', and
(D) by adding at the end the following new subsection:
``(b) Awards to Whistleblowers.--
``(1) In general.--If the Secretary proceeds with any
administrative or judicial action described in subsection (a)
based on information brought to the Secretary's attention by
an individual, such individual shall, subject to paragraph
(2), receive as an award at least 15 percent but not more
than 30 percent of the collected proceeds (including
penalties, interest, additions to tax, and additional
amounts) resulting from the action (including any related
actions) or from any settlement in response to such action.
The determination of the amount of such award by the
Whistleblower Office shall depend upon the extent to which
the individual substantially contributed to such action.
``(2) Award in case of less substantial contribution.--
``(A) In general.--In the event the action described in
paragraph (1) is one which the Whistleblower Office
determines to be based principally on disclosures of specific
allegations (other than information provided by the
individual described in paragraph (1)) resulting from a
judicial or administrative hearing, from a governmental
report, hearing, audit, or investigation, or from the news
media, the Whistleblower Office may award such sums as it
considers appropriate, but in no case more than 10 percent of
the collected proceeds (including penalties, interest,
additions to tax, and additional amounts) resulting from the
action (including any related actions) or from any settlement
in response to such action, taking into account the
significance of the individual's information and the role of
such individual and any legal representative of such
individual in contributing to such action.
``(B) Nonapplication of paragraph where individual is
original source of information.--Subparagraph (A) shall not
apply if the information resulting in the initiation of the
action described in paragraph (1) was originally provided by
the individual described in paragraph (1).
``(3) Reduction in or denial of award.--If the
Whistleblower Office determines that the claim for an award
under paragraph (1) or (2) is brought by an individual who
planned and initiated the actions that led to the
underpayment of tax or actions described in subsection
(a)(2), then the Whistleblower Office may appropriately
reduce such award. If such individual is convicted of
criminal conduct arising from the role described in the
preceding sentence, the Whistleblower Office shall deny any
award.
``(4) Appeal of award determination.--Any determination
regarding an award under paragraph (1), (2), or (3) may,
within 30 days of such determination, be appealed to the Tax
Court (and the Tax Court shall have jurisdiction with respect
to such matter).
``(5) Application of this subsection.--This subsection
shall apply with respect to any action--
``(A) against any taxpayer, but in the case of any
individual, only if such individual's gross income exceeds
$200,000 for any taxable year subject to such action, and
``(B) if the tax, penalties, interest, additions to tax,
and additional amounts in dispute exceed $2,000,000.
``(6) Additional rules.--
``(A) No contract necessary.--No contract with the Internal
Revenue Service is necessary for any individual to receive an
award under this subsection.
``(B) Representation.--Any individual described in
paragraph (1) or (2) may be represented by counsel.
``(C) Submission of information.--No award may be made
under this subsection based on information submitted to the
Secretary unless such information is submitted under penalty
of perjury.''.
(2) Assignment to special trial judges.--
(A) In general.--Section 7443A(b) (relating to proceedings
which may be assigned to special trial judges) is amended by
striking ``and'' at the end of paragraph (4), by
redesignating paragraph (5) as paragraph (6), and by
inserting after paragraph (4) the following new paragraph:
``(5) any proceeding under section 7623(b)(4), and''.
(B) Conforming amendment.--Section 7443A(c) is amended by
striking ``or (4)'' and inserting ``(4), or (5)''.
(3) Deduction allowed whether or not taxpayer itemizes.--
Subsection (a) of section 62 (relating to general rule
defining adjusted gross income) is amended by inserting after
paragraph (20) the following new paragraph:
``(21) Attorneys fees relating to awards to
whistleblowers.--Any deduction allowable under this chapter
for attorney fees and court costs paid by, or on behalf of,
the taxpayer in connection with any award under section
7623(b) (relating to awards to whistleblowers). The preceding
sentence shall not apply to any deduction in excess of the
amount includible in the taxpayer's gross income for the
taxable year on account of such award.''.
(b) Whistleblower Office.--
(1) In general.--Not later than the date which is 12 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall issue guidance for the operation of a
whistleblower program to be administered in the Internal
Revenue Service by an office to be known as the
``Whistleblower Office'' which--
(A) shall at all times operate at the direction of the
Commissioner of Internal Revenue and coordinate and consult
with other divisions in the Internal Revenue Service as
directed by the Commissioner of Internal Revenue,
(B) shall analyze information received from any individual
described in section 7623(b) of the Internal Revenue Code of
1986 and either investigate the matter itself or assign it to
the appropriate Internal Revenue Service office, and
(C) in its sole discretion, may ask for additional
assistance from such individual or any legal representative
of such individual.
(2) Request for assistance.--The guidance issued under
paragraph (1) shall specify that any assistance requested
under paragraph (1)(C) shall be under the direction and
control of the Whistleblower Office or the office assigned to
investigate the matter under paragraph (1)(A). No individual
or legal representative whose assistance is so requested may
by reason of such request represent himself or herself as an
employee of the Federal Government.
(c) Report by Secretary.--The Secretary of the Treasury
shall each year conduct a study and report to Congress on the
use of section 7623 of the Internal Revenue Code of 1986,
including--
(1) an analysis of the use of such section during the
preceding year and the results of such use, and
(2) any legislative or administrative recommendations
regarding the provisions of such section and its application.
(d) Effective Date.--The amendments made by subsection (a)
shall apply to information provided on or after the date of
the enactment of this Act.
SEC. 237. FRIVOLOUS TAX SUBMISSIONS.
(a) Civil Penalties.--Section 6702 is amended to read as
follows:
``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.
``(a) Civil Penalty for Frivolous Tax Returns.--A person
shall pay a penalty of $5,000 if--
``(1) such person files what purports to be a return of a
tax imposed by this title but which--
``(A) does not contain information on which the substantial
correctness of the self-assessment may be judged, or
``(B) contains information that on its face indicates that
the self-assessment is substantially incorrect, and
``(2) the conduct referred to in paragraph (1)--
``(A) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(B) reflects a desire to delay or impede the
administration of Federal tax laws.
``(b) Civil Penalty for Specified Frivolous Submissions.--
``(1) Imposition of penalty.--Except as provided in
paragraph (3), any person who submits a specified frivolous
submission shall pay a penalty of $5,000.
``(2) Specified frivolous submission.--For purposes of this
section--
``(A) Specified frivolous submission.--The term `specified
frivolous submission' means a specified submission if any
portion of such submission--
``(i) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(ii) reflects a desire to delay or impede the
administration of Federal tax laws.
``(B) Specified submission.--The term `specified
submission' means--
``(i) a request for a hearing under--
``(I) section 6320 (relating to notice and opportunity for
hearing upon filing of notice of lien), or
``(II) section 6330 (relating to notice and opportunity for
hearing before levy), and
``(ii) an application under--
``(I) section 6159 (relating to agreements for payment of
tax liability in installments),
``(II) section 7122 (relating to compromises), or
``(III) section 7811 (relating to taxpayer assistance
orders).
``(3) Opportunity to withdraw submission.--If the Secretary
provides a person with notice that a submission is a
specified frivolous submission and such person withdraws such
submission within 30 days after such notice, the penalty
imposed under paragraph (1) shall not apply with respect to
such submission.
``(c) Listing of Frivolous Positions.--The Secretary shall
prescribe (and periodically
[[Page H6179]]
revise) a list of positions which the Secretary has
identified as being frivolous for purposes of this
subsection. The Secretary shall not include in such list any
position that the Secretary determines meets the requirement
of section 6662(d)(2)(B)(ii)(II).
``(d) Reduction of Penalty.--The Secretary may reduce the
amount of any penalty imposed under this section if the
Secretary determines that such reduction would promote
compliance with and administration of the Federal tax laws.
``(e) Penalties in Addition to Other Penalties.--The
penalties imposed by this section shall be in addition to any
other penalty provided by law.''.
(b) Treatment of Frivolous Requests for Hearings Before
Levy.--
(1) Frivolous requests disregarded.--Section 6330 (relating
to notice and opportunity for hearing before levy) is amended
by adding at the end the following new subsection:
``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding
any other provision of this section, if the Secretary
determines that any portion of a request for a hearing under
this section or section 6320 meets the requirement of clause
(i) or (ii) of section 6702(b)(2)(A), then the Secretary may
treat such portion as if it were never submitted and such
portion shall not be subject to any further administrative or
judicial review.''.
(2) Preclusion from raising frivolous issues at hearing.--
Section 6330(c)(4) is amended--
(A) by striking ``(A)'' and inserting ``(A)(i)'';
(B) by striking ``(B)'' and inserting ``(ii)'';
(C) by striking the period at the end of the first sentence
and inserting ``; or''; and
(D) by inserting after subparagraph (A)(ii) (as so
redesignated) the following:
``(B) the issue meets the requirement of clause (i) or (ii)
of section 6702(b)(2)(A).''.
(3) Statement of grounds.--Section 6330(b)(1) is amended by
striking ``under subsection (a)(3)(B)'' and inserting ``in
writing under subsection (a)(3)(B) and states the grounds for
the requested hearing''.
(c) Treatment of Frivolous Requests for Hearings Upon
Filing of Notice of Lien.--Section 6320 is amended--
(1) in subsection (b)(1), by striking ``under subsection
(a)(3)(B)'' and inserting ``in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing'',
and
(2) in subsection (c), by striking ``and (e)'' and
inserting ``(e), and (g)''.
(d) Treatment of Frivolous Applications for Offers-in-
Compromise and Installment Agreements.--Section 7122 is
amended by adding at the end the following new subsection:
``(f) Frivolous Submissions, Etc.--Notwithstanding any
other provision of this section, if the Secretary determines
that any portion of an application for an offer-in-compromise
or installment agreement submitted under this section or
section 6159 meets the requirement of clause (i) or (ii) of
section 6702(b)(2)(A), then the Secretary may treat such
portion as if it were never submitted and such portion shall
not be subject to any further administrative or judicial
review.''.
(e) Clerical Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by striking the item
relating to section 6702 and inserting the following new
item:
``Sec. 6702. Frivolous tax submissions.''.
(f) Effective Date.--The amendments made by this section
shall apply to submissions made and issues raised after the
date on which the Secretary first prescribes a list under
section 6702(c) of the Internal Revenue Code of 1986, as
amended by subsection (a).
SEC. 238. ADDITION OF MENINGOCOCCAL AND HUMAN PAPILLOMAVIRUS
VACCINES TO LIST OF TAXABLE VACCINES.
(a) Meningococcal Vaccine.--Section 4132(a)(1) (defining
taxable vaccine) is amended by adding at the end the
following new subparagraph:
``(O) Any meningococcal vaccine.''.
(b) Human Papillomavirus Vaccine.--Section 4132(a)(1), as
amended by subsection (a), is amended by adding at the end
the following new subparagraph:
``(P) Any vaccine against the human papillomavirus.''.
(c) Effective Date.--
(1) Sales, etc.--The amendments made by this section shall
apply to sales and uses on or after the first day of the
first month which begins more than 4 weeks after the date of
the enactment of this Act.
(2) Deliveries.--For purposes of paragraph (1) and section
4131 of the Internal Revenue Code of 1986, in the case of
sales on or before the effective date described in such
paragraph for which delivery is made after such date, the
delivery date shall be considered the sale date.
SEC. 239. CLARIFICATION OF TAXATION OF CERTAIN SETTLEMENT
FUNDS MADE PERMANENT.
(a) In General.--Subsection (g) of section 468B, as amended
by section 201 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking paragraph
(3).
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 201 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 240. MODIFICATION OF ACTIVE BUSINESS DEFINITION UNDER
SECTION 355 MADE PERMANENT.
(a) In General.--Subparagraphs (A) and (D) of section
355(b)(3), as amended by section 202 of the Tax Increase
Prevention and Reconciliation Act of 2005, are each amended
by striking ``and on or before December 31, 2010''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 202 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 241. REVISION OF STATE VETERANS LIMIT MADE PERMANENT.
(a) In General.--Subparagraph (B) of section 143(l)(3), as
amended by section 203 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking clause
(iv).
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 203 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 242. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-CREATED
MUSICAL WORKS MADE PERMANENT.
(a) In General.--Paragraph (3) of section 1221(b), as
amended by section 204 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking ``before
January 1, 2011,''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 204 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 243. REDUCTION IN MINIMUM VESSEL TONNAGE WHICH QUALIFIES
FOR TONNAGE TAX MADE PERMANENT.
(a) In General.--Paragraph (4) of section 1355(a), as
amended by section 205 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking ``10,000
(6,000, in the case of taxable years beginning after December
31, 2005, and ending before January 1, 2011)'' and inserting
``6,000''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 205 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 244. MODIFICATION OF SPECIAL ARBITRAGE RULE FOR CERTAIN
FUNDS MADE PERMANENT.
(a) In General.--Section 206 of the Tax Increase Prevention
and Reconciliation Act of 2005 is amended by striking ``and
before August 31, 2009''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 206 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 245. GREAT LAKES DOMESTIC SHIPPING TO NOT DISQUALIFY
VESSEL FROM TONNAGE TAX.
(a) In General.--Section 1355 (relating to definitions and
special rules) is amended by redesignating subsection (g) as
subsection (h) and by inserting after subsection (f) the
following new subsection:
``(g) Great Lakes Domestic Shipping to Not Disqualify
Vessel.--
``(1) In general.--If the electing corporation elects (at
such time and in such manner as the Secretary may require) to
apply this subsection for any taxable year to any qualifying
vessel which is used in qualified zone domestic trade during
the taxable year--
``(A) solely for purposes of subsection (a)(4), such use
shall be treated as use in United States foreign trade (and
not as use in United States domestic trade), and
``(B) subsection (f) shall not apply with respect to such
vessel for such taxable year.
``(2) Effect of temporarily operating vessel in united
states domestic trade.--In the case of a qualifying vessel to
which this subsection applies--
``(A) In general.--An electing corporation shall be treated
as using such vessel in qualified zone domestic trade during
any period of temporary use in the United States domestic
trade (other than qualified zone domestic trade) if the
electing corporation gives timely notice to the Secretary
stating--
``(i) that it temporarily operates or has operated in the
United States domestic trade (other than qualified zone
domestic trade) a qualifying vessel which had been used in
the United States foreign trade or qualified zone domestic
trade, and
``(ii) its intention to resume operation of the vessel in
the United States foreign trade or qualified zone domestic
trade.
``(B) Notice.--Notice shall be deemed timely if given not
later than the due date (including extensions) for the
corporation's tax return for the taxable year in which the
temporary cessation begins.
``(C) Period disregard in effect.--The period of temporary
use under subparagraph (A) continues until the earlier of the
date of which--
``(i) the electing corporation abandons its intention to
resume operations of the vessel in the United States foreign
trade or qualified zone domestic trade, or
``(ii) the electing corporation resumes operation of the
vessel in the United States foreign trade or qualified zone
domestic trade.
``(D) No disregard if domestic trade use exceeds 30 days.--
Subparagraph (A) shall not apply to any qualifying vessel
which is operated in the United States domestic trade (other
than qualified zone domestic trade) for more than 30 days
during the taxable year.
``(3) Allocation of income and deductions to qualifying
shipping activities.--In the case of a qualifying vessel to
which this subsection applies, the Secretary shall prescribe
rules for the proper allocation of income, expenses, losses,
and deductions between the qualified shipping activities and
the other activities of such vessel.
``(4) Qualified zone domestic trade.--For purposes of this
subsection--
``(A) In general.--The term `qualified zone domestic trade'
means the transportation of
[[Page H6180]]
goods or passengers between places in the qualified zone if
such transportation is in the United States domestic trade.
``(B) Qualified zone.--The term `qualified zone' means the
Great Lakes Waterway and the St. Lawrence Seaway.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 246. USE OF QUALIFIED MORTGAGE BONDS TO FINANCE
RESIDENCES FOR VETERANS WITHOUT REGARD TO
FIRST-TIME HOMEBUYER REQUIREMENT.
(a) In General.--Section 143(d)(2) (relating to exceptions
to 3-year requirement) is amended by striking ``and'' at the
end of subparagraph (B), by adding ``and'' at the end of
subparagraph (C), and by inserting after subparagraph (C) the
following new subparagraph:
``(D) in the case of bonds issued after the date of the
enactment of this subparagraph and before January 1, 2008,
financing of any residence for a veteran (as defined in
section 101 of title 38, United States Code), if such veteran
has not previously qualified for and received such financing
by reason of this subparagraph,''.
(b) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
SEC. 247. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL
RESIDENCE BY CERTAIN EMPLOYEES OF THE
INTELLIGENCE COMMUNITY.
(a) In General.--Subparagraph (A) of section 121(d)(9)
(relating to exclusion of gain from sale of principal
residence) is amended by striking ``duty'' and all that
follows and inserting ``duty--
``(i) as a member of the uniformed services,
``(ii) as a member of the Foreign Service of the United
States, or
``(iii) as an employee of the intelligence community.''.
(b) Employee of Intelligence Community Defined.--
Subparagraph (C) of section 121(d)(9) is amended by
redesignating clause (iv) as clause (v) and by inserting
after clause (iii) the following new clause:
``(iv) Employee of intelligence community.--The term
`employee of the intelligence community' means an employee
(as defined by section 2105 of title 5, United States Code)
of--
``(I) the Office of the Director of National Intelligence,
``(II) the Central Intelligence Agency,
``(III) the National Security Agency,
``(IV) the Defense Intelligence Agency,
``(V) the National Geospatial-Intelligence Agency,
``(VI) the National Reconnaissance Office,
``(VII) any other office within the Department of Defense
for the collection of specialized national intelligence
through reconnaissance programs,
``(VIII) any of the intelligence elements of the Army, the
Navy, the Air Force, the Marine Corps, the Federal Bureau of
Investigation, the Department of Treasury, the Department of
Energy, and the Coast Guard,
``(IX) the Bureau of Intelligence and Research of the
Department of State, or
``(X) any of the elements of the Department of Homeland
Security concerned with the analyses of foreign intelligence
information.''.
(c) Special Rule.--Subparagraph (C) of section 121(d)(9),
as amended by subsection (b), is amended by adding at the end
the following new clause:
``(vi) Special rule relating to intelligence community.--An
employee of the intelligence community shall not be treated
as serving on qualified extended duty unless such duty is at
a duty station located outside the United States.''.
(d) Conforming Amendment.--The heading for section
121(d)(9) is amended to read as follows: ``Uniformed
services, foreign service, and intelligence community''.
(e) Effective Date.--The amendments made by this section
shall apply to sales or exchanges after the date of the
enactment of this Act and before January 1, 2011.
SEC. 248. TREATMENT OF COKE AND COKE GAS.
(a) Nonapplication of Phaseout.--Section 45K(g)(2) is
amended by adding at the end the following new subparagraph:
``(D) Nonapplication of phaseout.--Subsection (b)(1) shall
not apply.''.
(b) Clarification of Qualifying Facility.--Section
45K(g)(1) is amended by inserting ``(other than from
petroleum based products)'' after ``coke or coke gas''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 1321 of the
Energy Policy Act of 2005.
SEC. 249. SALE OF PROPERTY BY JUDICIAL OFFICERS.
(a) In General.--Section 1043(b) (relating to the sale of
property to comply with conflict-of-interest requirements) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by inserting ``, or a judicial
officer,'' after ``an officer or employee of the executive
branch''; and
(B) in subparagraph (B), by inserting ``judicial canon,''
after ``any statute, regulation, rule,'';
(2) in paragraph (2)--
(A) in subparagraph (A), by inserting ``judicial canon,''
after ``any Federal conflict of interest statute, regulation,
rule,''; and
(B) in subparagraph (B), by inserting after ``the Director
of the Office of Government Ethics,'' the following: ``in the
case of executive branch officers or employees, or by the
Judicial Conference of the United States (or its designee),
in the case of judicial officers,''; and
(3) in paragraph (5)(B), by inserting ``judicial canon,''
after ``any statute, regulation, rule,''.
(b) Judicial Officer Defined.--Section 1043(b) is amended
by adding at the end the following new paragraph:
``(6) Judicial officer.--The term `judicial officer' means
the Chief Justice of the United States, the Associate
Justices of the Supreme Court, and the judges of the United
States courts of appeals, United States district courts,
including the district courts in Guam, the Northern Mariana
Islands, and the Virgin Islands, Court of Appeals for the
Federal Circuit, Court of International Trade, Tax Court,
Court of Federal Claims, Court of Appeals for Veterans
Claims, United States Court of Appeals for the Armed Forces,
and any court created by Act of Congress, the judges of which
are entitled to hold office during good behavior.''.
(c) Effective Date.--The amendments made by this section
shall apply to sales after the date of enactment of this Act.
SEC. 250. PREMIUMS FOR MORTGAGE INSURANCE.
(a) In General.--Section 163(h)(3) (relating to qualified
residence interest) is amended by adding at the end the
following new subparagraph:
``(E) Mortgage insurance premiums treated as interest.--
``(i) In general.--Premiums paid or accrued for qualified
mortgage insurance by a taxpayer during the taxable year in
connection with acquisition indebtedness with respect to a
qualified residence of the taxpayer shall be treated for
purposes of this section as interest which is qualified
residence interest.
``(ii) Phaseout.--The amount otherwise treated as interest
under clause (i) shall be reduced (but not below zero) by 10
percent of such amount for each $1,000 ($500 in the case of a
married individual filing a separate return) (or fraction
thereof) that the taxpayer's adjusted gross income for the
taxable year exceeds $100,000 ($50,000 in the case of a
married individual filing a separate return).
``(iii) Limitation.--Clause (i) shall not apply with
respect to any mortgage insurance contracts issued before
January 1, 2007.
``(iv) Termination.--Clause (i) shall not apply to
amounts--
``(I) paid or accrued after December 31, 2007, or
``(II) properly allocable to any period after such date.''.
(b) Definition and Special Rules.--Section 163(h)(4)
(relating to other definitions and special rules) is amended
by adding at the end the following new subparagraphs:
``(E) Qualified mortgage insurance.--The term `qualified
mortgage insurance' means--
``(i) mortgage insurance provided by the Veterans
Administration, the Federal Housing Administration, or the
Rural Housing Administration, and
``(ii) private mortgage insurance (as defined by section 2
of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this subparagraph).
``(F) Special rules for prepaid qualified mortgage
insurance.--Any amount paid by the taxpayer for qualified
mortgage insurance that is properly allocable to any mortgage
the payment of which extends to periods that are after the
close of the taxable year in which such amount is paid shall
be chargeable to capital account and shall be treated as paid
in such periods to which so allocated. No deduction shall be
allowed for the unamortized balance of such account if such
mortgage is satisfied before the end of its term. The
preceding sentences shall not apply to amounts paid for
qualified mortgage insurance provided by the Veterans
Administration or the Rural Housing Administration.''.
(c) Information Returns Relating to Mortgage Insurance.--
Section 6050H (relating to returns relating to mortgage
interest received in trade or business from individuals) is
amended by adding at the end the following new subsection:
``(h) Returns Relating to Mortgage Insurance Premiums.--
``(1) In general.--The Secretary may prescribe, by
regulations, that any person who, in the course of a trade or
business, receives from any individual premiums for mortgage
insurance aggregating $600 or more for any calendar year,
shall make a return with respect to each such individual.
Such return shall be in such form, shall be made at such
time, and shall contain such information as the Secretary may
prescribe.
``(2) Statement to be furnished to individuals with respect
to whom information is required.--Every person required to
make a return under paragraph (1) shall furnish to each
individual with respect to whom a return is made a written
statement showing such information as the Secretary may
prescribe. Such written statement shall be furnished on or
before January 31 of the year following the calendar year for
which the return under paragraph (1) was required to be made.
``(3) Special rules.--For purposes of this subsection--
``(A) rules similar to the rules of subsection (c) shall
apply, and
``(B) the term `mortgage insurance' means--
[[Page H6181]]
``(i) mortgage insurance provided by the Veterans
Administration, the Federal Housing Administration, or the
Rural Housing Administration, and
``(ii) private mortgage insurance (as defined by section 2
of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this
subsection).''.
(d) Effective Date.--The amendments made by this section
shall apply to amounts paid or accrued after December 31,
2006.
SEC. 251. MODIFICATION OF REFUNDS FOR KEROSENE USED IN
AVIATION.
(a) In General.--Paragraph (4) of section 6427(l) (relating
to nontaxable uses of diesel fuel and kerosene) is amended to
read as follows:
``(4) Refunds for kerosene used in aviation.--
``(A) Kerosene used in commercial aviation.--In the case of
kerosene used in commercial aviation (as defined in section
4083(b)) (other than supplies for vessels or aircraft within
the meaning of section 4221(d)(3)), paragraph (1) shall not
apply to so much of the tax imposed by section 4041 or 4081,
as the case may be, as is attributable to--
``(i) the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section, and
``(ii) so much of the rate of tax specified in section
4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does
not exceed 4.3 cents per gallon.
``(B) Kerosene used in noncommercial aviation.--In the case
of kerosene used in aviation that is not commercial aviation
(as so defined) (other than any use which is exempt from the
tax imposed by section 4041(c) other than by reason of a
prior imposition of tax), paragraph (1) shall not apply to--
``(i) any tax imposed by section 4041(c), and
``(ii) so much of the tax imposed by section 4081 as is
attributable to--
``(I) the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section, and
``(II) so much of the rate of tax specified in section
4081(a)(2)(A)(iii) as does not exceed the rate specified in
section 4081(a)(2)(C)(ii).
``(C) Payments to ultimate, registered vendor.--
``(i) In general.--With respect to any kerosene used in
aviation (other than kerosene described in clause (ii) or
kerosene to which paragraph (5) applies), if the ultimate
purchaser of such kerosene waives (at such time and in such
form and manner as the Secretary shall prescribe) the right
to payment under paragraph (1) and assigns such right to the
ultimate vendor, then the Secretary shall pay the amount
which would be paid under paragraph (1) to such ultimate
vendor, but only if such ultimate vendor--
``(I) is registered under section 4101, and
``(II) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).
``(ii) Payments for kerosene used in noncommercial
aviation.--The amount which would be paid under paragraph (1)
with respect to any kerosene to which subparagraph (B)
applies shall be paid only to the ultimate vendor of such
kerosene. A payment shall be made to such vendor if such
vendor--
``(I) is registered under section 4101, and
``(II) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).''.
(b) Conforming Amendments.--
(1) Section 6427(l) is amended by striking paragraph (5)
and by redesignating paragraph (6) as paragraph (5).
(2) Section 4082(d)(2)(B) is amended by striking ``section
6427(l)(6)(B)'' and inserting ``section 6427(l)(5)(B)''.
(3) Section 6427(i)(4)(A) is amended--
(A) by striking ``paragraph (4)(B), (5), or (6)'' each
place it appears and inserting ``paragraph (4)(C) or (5)'',
and
(B) by striking ``(l)(5), and (l)(6)'' and inserting
``(l)(4)(C)(ii), and (l)(5)''.
(4) Section 6427(l)(1) is amended by striking ``paragraph
(4)(B)'' and inserting ``paragraph (4)(C)(i)''.
(5) Section 9502(d) is amended--
(A) in paragraph (2), by striking ``and (l)(5)'', and
(B) in paragraph (3), by striking ``or (5)''.
(6) Section 9503(c)(7) is amended--
(A) by amending subparagraphs (A) and (B) to read as
follows:
``(A) 4.3 cents per gallon of kerosene subject to section
6427(l)(4)(A) with respect to which a payment has been made
by the Secretary under section 6427(l), and
``(B) 21.8 cents per gallon of kerosene subject to section
6427(l)(4)(B) with respect to which a payment has been made
by the Secretary under section 6427(l).'', and
(B) in the matter following subparagraph (B), by striking
``or (5)''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to kerosene sold after September 30, 2005.
(2) Special rule for pending claims.--In the case of
kerosene sold for use in aviation (other than kerosene to
which section 6427(l)(4)(C)(ii) of the Internal Revenue Code
of 1986 (as added by subsection (a)) applies or kerosene to
which section 6427(l)(5) of such Code (as redesignated by
subsection (b)) applies) after September 30, 2005, and before
the date of the enactment of this Act, the ultimate purchaser
shall be treated as having waived the right to payment under
section 6427(l)(1) of such Code and as having assigned such
right to the ultimate vendor if such ultimate vendor has met
the requirements of subparagraph (A), (B), or (D) of section
6416(a)(1) of such Code.
(d) Special Rule for Kerosene Used in Aviation on a Farm
for Farming Purposes.--
(1) Refunds for purchases after december 31, 2004, and
before october 1, 2005.--The Secretary of the Treasury shall
pay to the ultimate purchaser of any kerosene which is used
in aviation on a farm for farming purposes and which was
purchased after December 31, 2004, and before October 1,
2005, an amount equal to the aggregate amount of tax imposed
on such fuel under section 4041 or 4081 of the Internal
Revenue Code of 1986, as the case may be, reduced by any
payment to the ultimate vendor under section 6427(l)(5)(C) of
such Code (as in effect on the day before the date of the
enactment of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: a Legacy for Users).
(2) Use on a farm for farming purposes.--For purposes of
paragraph (1), kerosene shall be treated as used on a farm
for farming purposes if such kerosene is used for farming
purposes (within the meaning of section 6420(c)(3) of the
Internal Revenue Code of 1986) in carrying on a trade or
business on a farm situated in the United States. For
purposes of the preceding sentence, rules similar to the
rules of section 6420(c)(4) of such Code shall apply.
(3) Time for filing claims.--No claim shall be allowed
under paragraph (1) unless the ultimate purchaser files such
claim before the date that is 3 months after the date of the
enactment of this Act.
(4) No double benefit.--No amount shall be paid under
paragraph (1) or section 6427(l) of the Internal Revenue Code
of 1986 with respect to any kerosene described in paragraph
(1) to the extent that such amount is in excess of the tax
imposed on such kerosene under section 4041 or 4081 of such
Code, as the case may be.
(5) Applicable laws.--For purposes of this subsection,
rules similar to the rules of section 6427(j) of the Internal
Revenue Code of 1986 shall apply.
SEC. 252. DEDUCTION FOR QUALIFIED TIMBER GAIN.
(a) In General.--Part I of subchapter P of chapter 1 is
amended by adding at the end the following new section:
``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.
``(a) In General.--In the case of a taxpayer which elects
the application of this section for a taxable year, there
shall be allowed a deduction against gross income equal to 60
percent of the lesser of--
``(1) the taxpayer's qualified timber gain for such year,
or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section,
the term `qualified timber gain' means, with respect to any
taxpayer for any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(2) the sum of the taxpayer's losses described in such
subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--In the case of
any qualified timber gain of a pass-thru entity (as defined
in section 1(h)(10))--
``(1) the election under this section shall be made
separately by each taxpayer subject to tax on such gain, and
``(2) the Secretary may prescribe such regulations as are
appropriate to apply this section to such gain.
``(d) Termination.--No disposition of timber after December
31, 2007, shall be taken into account under subsection
(b).''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2) of
section 1(h) is amended to read as follows:
``(2) Reduction of net capital gain.--For purposes of this
subsection, the net capital gain for any taxable year shall
be reduced (but not below zero) by the sum of--
``(A) the amount which the taxpayer takes into account as
investment income under section 163(d)(4)(B)(iii), and
``(B) in the case of a taxable year with respect to which
an election is in effect under section 1203, the lesser of--
``(i) the amount described in paragraph (1) of section
1203(a), or
``(ii) the amount described in paragraph (2) of such
section.''.
(2) Corporations.--Section 1201 is amended by redesignating
subsection (b) as subsection (c) and inserting after
subsection (a) the following new subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For
purposes of this section, in the case of a corporation with
respect to which an election is in effect under section 1203,
the net capital gain for any taxable year shall be reduced
(but not below zero) by the corporation's qualified timber
gain (as defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes
Other Deductions.--Subsection (a) of section 62, as amended
by this Act, is amended by inserting before the last sentence
the following new paragraph:
``(22) Qualified timber gains.--The deduction allowed by
section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current
Earnings.--Subparagraph (C) of section 56(g)(4) is amended by
adding at the end the following new clause:
``(vii) Deduction for qualified timber gain.--Clause (i)
shall not apply to any deduction allowed under section
1203.''.
[[Page H6182]]
(e) Deduction Allowed in Computing Taxable Income of
Electing Small Business Trusts.--Subparagraph (C) of section
641(c)(2) is amended by inserting after clause (iii) the
following new clause:
``(iv) The deduction allowed under section 1203.''.
(f) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the exclusion under section 1202 and the deduction
under section 1203 shall not be allowed.''.
(2) Paragraph (4) of section 642(c) is amended by striking
the first sentence and inserting the following: ``To the
extent that the amount otherwise allowable as a deduction
under this subsection consists of gain described in section
1202(a) or qualified timber gain (as defined in section
1203(b)), proper adjustment shall be made for any exclusion
allowable to the estate or trust under section 1202 and for
any deduction allowable to the estate or trust under section
1203.''.
(3) Paragraph (3) of section 643(a) is amended by striking
the last sentence and inserting the following: ``The
exclusion under section 1202 and the deduction under section
1203 shall not be taken into account.''.
(4) Subparagraph (C) of section 643(a)(6) is amended to
read as follows:
``(C) Paragraph (3) shall not apply to a foreign trust. In
the case of such a trust--
``(i) there shall be included gains from the sale or
exchange of capital assets, reduced by losses from such sales
or exchanges to the extent such losses do not exceed gains
from such sales or exchanges, and
``(ii) the deduction under section 1203 shall not be taken
into account.''.
(5) Paragraph (4) of section 691(c) is amended by inserting
``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by striking
``section 1202'' and inserting ``sections 1202 and 1203''.
(7) The table of sections for part I of subchapter P of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 1203. Deduction for qualified timber gain.''.
(g) 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) Taxable years which include date of enactment.--In the
case of any taxable year which includes the date of the
enactment of this Act, for purposes of the Internal Revenue
Code of 1986, the taxpayer's qualified timber gain shall not
exceed the excess that would be described in section 1203(b)
of such Code, as added by this section, if only dispositions
of timber after such date were taken into account.
SEC. 253. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
(a) In General.--Subpart H of part IV of subchapter A of
chapter 1 (relating to credits against tax) is amended by
adding at the end the following new section:
``SEC. 54A. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who
holds a rural renaissance bond on a credit allowance date of
such bond, which occurs during the taxable year, there shall
be allowed as a credit against the tax imposed by this
chapter for such taxable year an amount equal to the sum of
the credits determined under subsection (b) with respect to
credit allowance dates during such year on which the taxpayer
holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a rural renaissance bond is 25 percent of the annual
credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any rural renaissance bond is the product of--
``(A) the credit rate determined by the Secretary under
paragraph (3) for the day on which such bond was sold,
multiplied by
``(B) the outstanding face amount of the bond.
``(3) Determination.--For purposes of paragraph (2), with
respect to any rural renaissance bond, the Secretary shall
determine daily or caused to be determined daily a credit
rate which shall apply to the first day on which there is a
binding, written contract for the sale or exchange of the
bond. The credit rate for any day is the credit rate which
the Secretary or the Secretary's designee estimates will
permit the issuance of rural renaissance bonds with a
specified maturity or redemption date without discount and
without interest cost to the qualified issuer.
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term also includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--The credit
allowed under subsection (a) for any taxable year shall not
exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under this part
(other than subpart C and this section).
``(d) Rural Renaissance Bond.--For purposes of this
section--
``(1) In general.--The term `rural renaissance bond' means
any bond issued as part of an issue if--
``(A) the bond is issued by a qualified issuer,
``(B) 95 percent or more of the proceeds from the sale of
such issue are to be used for capital expenditures incurred
for 1 or more qualified projects,
``(C) the qualified issuer designates such bond for
purposes of this section and the bond is in registered form,
and
``(D) the issue meets the requirements of subsections (e)
and (h).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified project' means 1 or
more projects described in subparagraph (B) located in a
rural area.
``(B) Projects described.--A project described in this
subparagraph is--
``(i) a water or waste treatment project,
``(ii) an affordable housing project,
``(iii) a community facility project, including hospitals,
fire and police stations, and nursing and assisted-living
facilities,
``(iv) a value-added agriculture or renewable energy
facility project for agricultural producers or farmer-owned
entities, including any project to promote the production,
processing, or retail sale of ethanol (including fuel at
least 85 percent of the volume of which consists of ethanol),
biodiesel, animal waste, biomass, raw commodities, or wind as
a fuel,
``(v) a distance learning or telemedicine project,
``(vi) a rural utility infrastructure project, including
any electric or telephone system,
``(vii) a project to expand broadband technology,
``(viii) a rural teleworks project, and
``(ix) any project described in any preceding clause
carried out by the Delta Regional Authority.
``(C) Special rules.--For purposes of this paragraph--
``(i) any project described in subparagraph (B)(iv) for a
farmer-owned entity may be considered a qualified project if
such entity is located in a rural area, or in the case of a
farmer-owned entity the headquarters of which are located in
a nonrural area, if the project is located in a rural area,
and
``(ii) any project for a farmer-owned entity which is a
facility described in subparagraph (B)(iv) for agricultural
producers may be considered a qualified project regardless of
whether the facility is located in a rural or nonrural area.
``(3) Special use rules.--
``(A) Refinancing rules.--For purposes of paragraph (1)(B),
a qualified project may be refinanced with proceeds of a
rural renaissance bond only if the indebtedness being
refinanced (including any obligation directly or indirectly
refinanced by such indebtedness) was originally incurred
after the date of the enactment of this section.
``(B) Reimbursement.--For purposes of paragraph (1)(B), a
rural renaissance bond may be issued to reimburse a borrower
for amounts paid after the date of the enactment of this
section with respect to a qualified project, but only if--
``(i) prior to the payment of the original expenditure, the
borrower declared its intent to reimburse such expenditure
with the proceeds of a rural renaissance bond,
``(ii) not later than 60 days after payment of the original
expenditure, the qualified issuer adopts an official intent
to reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(C) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent that a
borrower takes any action within its control which causes
such proceeds not to be used for a qualified project. The
Secretary shall prescribe regulations specifying remedial
actions that may be taken (including conditions to taking
such remedial actions) to prevent an action described in the
preceding sentence from causing a bond to fail to be a rural
renaissance bond.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be treated as a
rural renaissance bond if the maturity of such bond exceeds
the maximum term determined by the Secretary under paragraph
(2) with respect to such bond.
``(2) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following calendar
month. Such maximum term shall be the term which the
Secretary estimates will result in the present value of the
obligation to repay the principal on the bond being equal to
50 percent of the face amount of such bond. Such present
value shall be determined without regard to the requirements
of paragraph (3) and using as a discount rate the average
annual interest rate of tax-exempt obligations having a term
of 10 years or
[[Page H6183]]
more which are issued during the month. If the term as so
determined is not a multiple of a whole year, such term shall
be rounded to the next highest whole year.
``(3) Ratable principal amortization required.--A bond
shall not be treated as a rural renaissance bond unless it is
part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each
calendar year that the issue is outstanding.
``(f) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a rural renaissance
bond limitation of $200,000,000.
``(2) Allocation by secretary.--The Secretary shall
allocate the amount described in paragraph (1) among
qualified projects in such manner as the Secretary determines
appropriate.
``(g) Credit Included in Gross Income.--Gross income
includes the amount of the credit allowed to the taxpayer
under this section (determined without regard to subsection
(c)) and the amount so included shall be treated as interest
income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of
issuance, the qualified issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the sale of
the issue are to be spent for 1 or more qualified projects
within the 5-year period beginning on the date of issuance of
the rural renaissance bond,
``(B) a binding commitment with a third party to spend at
least 10 percent of the proceeds from the sale of the issue
will be incurred within the 6-month period beginning on the
date of issuance of the rural renaissance bond or, in the
case of a rural renaissance bond, the proceeds of which are
to be loaned to 2 or more borrowers, such binding commitment
will be incurred within the 6-month period beginning on the
date of the loan of such proceeds to a borrower, and
``(C) such projects will be completed with due diligence
and the proceeds from the sale of the issue will be spent
with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related
projects will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of
the proceeds of such issue are expended by the close of the
5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close
of the extended period), the qualified issuer shall redeem
all of the nonqualified bonds within 90 days after the end of
such period. For purposes of this paragraph, the amount of
the nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(i) Special Rules Relating to Arbitrage.--A bond which is
part of an issue shall not be treated as a rural renaissance
bond unless, with respect to the issue of which the bond is a
part, the qualified issuer satisfies the arbitrage
requirements of section 148 with respect to proceeds of the
issue.
``(j) Qualified Issuer.--For purposes of this section--
``(1) In general.--The term `qualified issuer' means any
not-for-profit cooperative lender which has as of the date of
the enactment of this section received a guarantee under
section 306 of the Rural Electrification Act and which meets
the requirement of paragraph (2).
``(2) User fee requirement.--The requirement of this
paragraph is met if the issuer of any rural renaissance bond
makes grants for qualified projects as defined under
subsection (d)(2) on a semi-annual basis every year that such
bond is outstanding in an annual amount equal to one-half of
the rate on United States Treasury Bills of the same maturity
multiplied by the outstanding principal balance of rural
renaissance bonds issued by such issuer.
``(k) Special Rules Relating to Pool Bonds.--No portion of
a pooled financing bond may be allocable to a loan unless the
borrower has entered into a written loan commitment for such
portion prior to the issue date of such issue.
``(l) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Pooled financing bond.--The term `pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
``(3) Rural area.--The term `rural area' means any area
other than--
``(A) a city or town which has a population of greater than
50,000 inhabitants, or
``(B) the urbanized area contiguous and adjacent to such a
city or town.
``(4) Partnership; s corporation; and other pass-thru
entities.--
``(A) In general.--Under regulations prescribed by the
Secretary, in the case of a partnership, trust, S
corporation, or other pass-thru entity, rules similar to the
rules of section 41(g) shall apply with respect to the credit
allowable under subsection (a).
``(B) No basis adjustment.--In the case of a bond held by a
partnership or an S corporation, rules similar to the rules
under section 1397E(l) shall apply.
``(5) Bonds held by regulated investment companies.--If any
rural renaissance bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
``(6) Reporting.--Issuers of rural renaissance bonds shall
submit reports similar to the reports required under section
149(e).''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(9) Reporting of credit on rural renaissance bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54A(f) and such amounts shall be treated as paid on
the credit allowance date (as defined in section 54A(b)(4)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A), subsection (b)(4) shall be
applied without regard to subparagraphs (A), (H), (I), (J),
(K), and (L)(i) of such subsection.
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) The table of sections for subpart H of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54A. Credit to holders of rural renaissance bonds.''.
(2) Section 54(c)(2) is amended by inserting ``, section
54A,'' after ``subpart C''.
(3) Section 1400N(l)(3)(B) is amended by inserting ``,
section 54A,'' after ``subpart C''.
(d) Issuance of Regulations.--The Secretary of Treasury
shall issue regulations required under section 54A of the
Internal Revenue Code of 1986 (as added by this section) not
later than 120 days after the date of the enactment of this
Act.
(e) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act and before January 1, 2010.
SEC. 254. RESTORATION OF DEDUCTION FOR TRAVEL EXPENSES OF
SPOUSE, ETC. ACCOMPANYING TAXPAYER ON BUSINESS
TRAVEL.
(a) In General.--Subsection (m) of section 274 (relating to
additional limitations on travel expenses) is amended by
adding at the end the following new paragraph:
``(4) Termination.--Paragraph (3) shall not apply to any
expense paid or incurred after the date of the enactment of
this paragraph and before January 1, 2008.''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
SEC. 255. TECHNICAL CORRECTIONS.
(a) Technical Correction Relating to Look-Through Treatment
of Payments Between Related Controlled Foreign Corporations
Under the Foreign Personal Holding Company Rules.--
(1) In general.--
(A) The first sentence of section 954(c)(6)(A), as amended
by section 103(b) of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking ``which is
not subpart F income'' and inserting ``which is neither
subpart F income nor income treated as effectively connected
with the conduct of a trade or business in the United
States''.
(B) Section 954(c)(6)(A), as so amended, is amended by
striking the last sentence and inserting the following: ``The
Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out this paragraph,
including such regulations as may be necessary or appropriate
to prevent the abuse of the purposes of this paragraph.''
(2) Effective date.--The amendments made by this subsection
shall take effect as if included in section 103(b) of the Tax
Increase Prevention and Reconciliation Act of 2005.
(b) Technical Correction Regarding Authority To Exercise
Reasonable Cause and Good Faith Exception.--
(1) In general.--Section 903(d)(2)(B)(iii) of the American
Jobs Creation Act of 2004, as amended by section 303(a) of
the Gulf Opportunity Zone Act of 2005, is amended by
inserting ``or the Secretary's delegate'' after ``the
Secretary of the Treasury''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the provisions of the
American Jobs Creation Act of 2004 to which it relates.
TITLE III--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF
2006
SEC. 301. SHORT TITLE.
This title may be cited as the ``Surface Mining Control and
Reclamation Act Amendments of 2006''.
Subtitle A--MINING CONTROL AND RECLAMATION
SEC. 311. ABANDONED MINE RECLAMATION FUND AND PURPOSES.
(a) In General.--Section 401 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1231) is amended--
(1) in subsection (c)--
(A) by striking paragraphs (2) and (6); and
[[Page H6184]]
(B) by redesignating paragraphs (3), (4), and (5) and
paragraphs (7) through (13) as paragraphs (2) through (11),
respectively;
(2) by striking subsection (d) and inserting the following:
``(d) Availability of Moneys; No Fiscal Year Limitation.--
``(1) In general.--Moneys from the fund for expenditures
under subparagraphs (A) through (D) of section 402(g)(3)
shall be available only when appropriated for those
subparagraphs.
``(2) No fiscal year limitation.--Appropriations described
in paragraph (1) shall be made without fiscal year
limitation.
``(3) Other purposes.--Moneys from the fund shall be
available for all other purposes of this title without prior
appropriation as provided in subsection (f).'';
(3) in subsection (e)--
(A) in the second sentence, by striking ``the needs of such
fund'' and inserting ``achieving the purposes of the
transfers under section 402(h)''; and
(B) in the third sentence, by inserting before the period
the following: ``for the purpose of the transfers under
section 402(h)''; and
(4) by adding at the end the following:
``(f) General Limitation on Obligation Authority.--
``(1) In general.--From amounts deposited into the fund
under subsection (b), the Secretary shall distribute during
each fiscal year beginning after September 30, 2007, an
amount determined under paragraph (2).
``(2) Amounts.--
``(A) For fiscal years 2008 through 2022.--For each of
fiscal years 2008 through 2022, the amount distributed by the
Secretary under this subsection shall be equal to--
``(i) the amounts deposited into the fund under paragraphs
(1), (2), and (4) of subsection (b) for the preceding fiscal
year that were allocated under paragraphs (1) and (5) of
section 402(g); plus
``(ii) the amount needed for the adjustment under section
402(g)(8) for the current fiscal year.
``(B) Fiscal years 2023 and thereafter.--For fiscal year
2023 and each fiscal year thereafter, to the extent that
funds are available, the Secretary shall distribute an amount
equal to the amount distributed under subparagraph (A) during
fiscal year 2022.
``(3) Distribution.--
``(A) In general.--Except as provided in subparagraph (B),
for each fiscal year, of the amount to be distributed to
States and Indian tribes pursuant to paragraph (2), the
Secretary shall distribute--
``(i) the amounts allocated under paragraph (1) of section
402(g), the amounts allocated under paragraph (5) of section
402(g), and any amount reallocated under section 411(h)(3) in
accordance with section 411(h)(2), for grants to States and
Indian tribes under section 402(g)(5); and
``(ii) the amounts allocated under section 402(g)(8).
``(B) Exclusion.--Beginning on October 1, 2007, certified
States shall be ineligible to receive amounts under section
402(g)(1).
``(4) Availability.--Amounts in the fund available to the
Secretary for obligation under this subsection shall be
available until expended.
``(5) Addition.--
``(A) In general.--Subject to subparagraph (B), the amount
distributed under this subsection for each fiscal year shall
be in addition to the amount appropriated from the fund
during the fiscal year.
``(B) Exceptions.--Notwithstanding paragraph (3), the
amount distributed under this subsection for the first 4
fiscal years beginning on and after October 1, 2007, shall be
equal to the following percentage of the amount otherwise
required to be distributed:
``(i) 50 percent in fiscal year 2008.
``(ii) 50 percent in fiscal year 2009.
``(iii) 75 percent in fiscal year 2010.
``(iv) 75 percent in fiscal year 2011.''.
(b) Conforming Amendment.--Section 712(b) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1302(b)) is amended by striking ``section 401(c)(11)'' and
inserting ``section 401(c)(9)''.
SEC. 312. RECLAMATION FEE.
(a) Amounts.--
(1) Fiscal years 2008-2012.--Effective October 1, 2007,
section 402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(a)) is amended--
(A) by striking ``35'' and inserting ``31.5'';
(B) by striking ``15'' and inserting ``13.5''; and
(C) by striking ``10 cents'' and inserting ``9 cents''.
(2) Fiscal years 2013-2021.--Effective October 1, 2012,
section 402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(a)) (as amended by paragraph (1))
is amended--
(A) by striking ``31.5'' and inserting ``28'';
(B) by striking ``13.5'' and inserting ``12''; and
(C) by striking ``9 cents'' and inserting ``8 cents''.
(b) Duration.--Effective September 30, 2007, section 402(b)
of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232(b)) (as amended by section 7007 of the Emergency
Supplemental Appropriations Act for Defense, the Global War
on Terror, and Hurricane Recovery, 2006 (Public Law 109-234;
120 Stat. 484)) is amended by striking ``September 30, 2007''
and all that follows through the end of the sentence and
inserting ``September 30, 2021.''.
(c) Allocation of Funds.--Section 402(g) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1232(g)) is amended--
(1) in paragraph (1)(D)--
(A) by inserting ``(except for grants awarded during fiscal
years 2008, 2009, and 2010 to the extent not expended within
5 years)'' after ``this paragraph''; and
(B) by striking ``in any area under paragraph (2), (3),
(4), or (5)'' and inserting ``under paragraph (5)'';
(2) by striking paragraph (2) and inserting:
``(2) In making the grants referred to in paragraph (1)(C)
and the grants referred to in paragraph (5), the Secretary
shall ensure strict compliance by the States and Indian
tribes with the priorities described in section 403(a) until
a certification is made under section 411(a).'';
(3) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by striking
``paragraphs (2) and'' and inserting ``paragraph'';
(B) in subparagraph (A), by striking ``401(c)(11)'' and
inserting ``401(c)(9)''; and
(C) by adding at the end the following:
``(E) For the purpose of paragraph (8).'';
(4) in paragraph (5)--
(A) by inserting ``(A)'' after ``(5)'';
(B) in the first sentence, by striking ``40'' and inserting
``60'';
(C) in the last sentence, by striking ``Funds allocated or
expended by the Secretary under paragraphs (2), (3), or (4)''
and inserting ``Funds made available under paragraph (3) or
(4)''; and
(D) by adding at the end the following:
``(B) Any amount that is reallocated and available under
section 411(h)(3) shall be in addition to amounts that are
allocated under subparagraph (A).''; and
(5) by striking paragraphs (6) through (8) and inserting
the following:
``(6)(A) Any State with an approved abandoned mine
reclamation program pursuant to section 405 may receive and
retain, without regard to the 3-year limitation referred to
in paragraph (1)(D), up to 30 percent of the total of the
grants made annually to the State under paragraphs (1) and
(5) if those amounts are deposited into an acid mine drainage
abatement and treatment fund established under State law,
from which amounts (together with all interest earned on the
amounts) are expended by the State for the abatement of the
causes and the treatment of the effects of acid mine drainage
in a comprehensive manner within qualified hydrologic units
affected by coal mining practices.
``(B) In this paragraph, the term `qualified hydrologic
unit' means a hydrologic unit--
``(i) in which the water quality has been significantly
affected by acid mine drainage from coal mining practices in
a manner that adversely impacts biological resources; and
``(ii) that contains land and water that are--
``(I) eligible pursuant to section 404 and include any of
the priorities described in section 403(a); and
``(II) the subject of expenditures by the State from the
forfeiture of bonds required under section 509 or from other
States sources to abate and treat acid mine drainage.
``(7) In complying with the priorities described in section
403(a), any State or Indian tribe may use amounts available
in grants made annually to the State or tribe under
paragraphs (1) and (5) for the reclamation of eligible land
and water described in section 403(a)(3) before the
completion of reclamation projects under paragraphs (1) and
(2) of section 403(a) only if the expenditure of funds for
the reclamation is done in conjunction with the expenditure
before, on, or after the date of enactment of the Surface
Mining Control and Reclamation Act Amendments of 2006 of
funds for reclamation projects under paragraphs (1) and (2)
of section 403(a).
``(8)(A) In making funds available under this title, the
Secretary shall ensure that the grant awards total not less
than $3,000,000 annually to each State and each Indian tribe
having an approved abandoned mine reclamation program
pursuant to section 405 and eligible land and water pursuant
to section 404, so long as an allocation of funds to the
State or tribe is necessary to achieve the priorities stated
in paragraphs (1) and (2) of section 403(a).
``(B) Notwithstanding any other provision of law, this
paragraph applies to the States of Tennessee and Missouri.''.
(d) Transfers of Interest Earned by Abandoned Mine
Reclamation Fund.--Section 402 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1232) is amended by
striking subsection (h) and inserting the following:
``(h) Transfers of Interest Earned by Fund.--
``(1) In general.--
``(A) Transfers to combined benefit fund.--As soon as
practicable after the beginning of fiscal year 2007 and each
fiscal year thereafter, and before making any allocation with
respect to the fiscal year under subsection (g), the
Secretary shall use an amount not to exceed the amount of
interest that the Secretary estimates will be earned and paid
to the fund during the fiscal year to make the transfer
described in paragraph (2)(A).
``(B) Transfers to 1992 and 1993 plans.--As soon as
practicable after the beginning of fiscal year 2008 and each
fiscal year thereafter, and before making any allocation with
respect to the fiscal year under subsection (g),
[[Page H6185]]
the Secretary shall use an amount not to exceed the amount of
interest that the Secretary estimates will be earned and paid
to the fund during the fiscal year (reduced by the amount
used under subparagraph (A)) to make the transfers described
in paragraphs (2)(B) and (2)(C).
``(2) Transfers described.--The transfers referred to in
paragraph (1) are the following:
``(A) United mine workers of america combined benefit
fund.--A transfer to the United Mine Workers of America
Combined Benefit Fund equal to the amount that the trustees
of the Combined Benefit Fund estimate will be expended from
the fund for the fiscal year in which the transfer is made,
reduced by--
``(i) the amount the trustees of the Combined Benefit Fund
estimate the Combined Benefit Fund will receive during the
fiscal year in--
``(I) required premiums; and
``(II) payments paid by Federal agencies in connection with
benefits provided by the Combined Benefit Fund; and
``(ii) the amount the trustees of the Combined Benefit Fund
estimate will be expended during the fiscal year to provide
health benefits to beneficiaries who are unassigned
beneficiaries solely as a result of the application of
section 9706(h)(1) of the Internal Revenue Code of 1986, but
only to the extent that such amount does not exceed the
amounts described in subsection (i)(1)(A) that the Secretary
estimates will be available to pay such estimated
expenditures.
``(B) United mine workers of america 1992 benefit plan.--A
transfer to the United Mine Workers of America 1992 Benefit
Plan, in an amount equal to the difference between--
``(i) the amount that the trustees of the 1992 UMWA Benefit
Plan estimate will be expended from the 1992 UMWA Benefit
Plan during the next calendar year to provide the benefits
required by the 1992 UMWA Benefit Plan on the date of
enactment of this subparagraph; minus
``(ii) the amount that the trustees of the 1992 UMWA
Benefit Plan estimate the 1992 UMWA Benefit Plan will receive
during the next calendar year in--
``(I) required monthly per beneficiary premiums, including
the amount of any security provided to the 1992 UMWA Benefit
Plan that is available for use in the provision of benefits;
and
``(II) payments paid by Federal agencies in connection with
benefits provided by the 1992 UMWA benefit plan.
``(C) Multiemployer health benefit plan.--A transfer to the
Multiemployer Health Benefit Plan established after July 20,
1992, by the parties that are the settlors of the 1992 UMWA
Benefit Plan referred to in subparagraph (B) (referred to in
this subparagraph and subparagraph (D) as `the Plan'), in an
amount equal to the excess (if any) of--
``(i) the amount that the trustees of the Plan estimate
will be expended from the Plan during the next calendar year,
to provide benefits no greater than those provided by the
Plan as of December 31, 2006; over
``(ii) the amount that the trustees estimated the Plan will
receive during the next calendar year in payments paid by
Federal agencies in connection with benefits provided by the
Plan.
Such excess shall be calculated by taking into account only
those beneficiaries actually enrolled in the Plan as of
December 31, 2006, who are eligible to receive benefits under
the Plan on the first day of the calendar year for which the
transfer is made.
``(D) Individuals considered enrolled.--For purposes of
subparagraph (C), any individual who was eligible to receive
benefits from the Plan as of the date of enactment of this
subsection, even though benefits were being provided to the
individual pursuant to a settlement agreement approved by
order of a bankruptcy court entered on or before September
30, 2004, will be considered to be actually enrolled in the
Plan and shall receive benefits from the Plan beginning on
December 31, 2006.
``(3) Adjustment.--If, for any fiscal year, the amount of a
transfer under subparagraph (A), (B), or (C) of paragraph (2)
is more or less than the amount required to be transferred
under that subparagraph, the Secretary shall appropriately
adjust the amount transferred under that subparagraph for the
next fiscal year.
``(4) Additional amounts.--
``(A) Previously credited interest.--Notwithstanding any
other provision of law, any interest credited to the fund
that has not previously been transferred to the Combined
Benefit Fund referred to in paragraph (2)(A) under this
section--
``(i) shall be held in reserve by the Secretary until such
time as necessary to make the payments under subparagraphs
(A) and (B) of subsection (i)(1), as described in clause
(ii); and
``(ii) in the event that the amounts described in
subsection (i)(1) are insufficient to make the maximum
payments described in subparagraphs (A) and (B) of subsection
(i)(1), shall be used by the Secretary to supplement the
payments so that the maximum amount permitted under those
paragraphs is paid.
``(B) Previously allocated amounts.--All amounts allocated
under subsection (g)(2) before the date of enactment of this
subparagraph for the program described in section 406, but
not appropriated before that date, shall be available to the
Secretary to make the transfers described in paragraph (2).
``(C) Adequacy of previously credited interest.--The
Secretary shall--
``(i) consult with the trustees of the plans described in
paragraph (2) at reasonable intervals; and
``(ii) notify Congress if a determination is made that the
amounts held in reserve under subparagraph (A) are
insufficient to meet future requirements under subparagraph
(A)(ii).
``(D) Additional reserve amounts.--In addition to amounts
held in reserve under subparagraph (A), there is authorized
to be appropriated such sums as may be necessary for transfer
to the fund to carry out the purposes of subparagraph
(A)(ii).
``(E) Inapplicability of cap.--The limitation described in
subsection (i)(3)(A) shall not apply to payments made from
the reserve fund under this paragraph.
``(5) Limitations.--
``(A) Availability of funds for next fiscal year.--The
Secretary may make transfers under subparagraphs (B) and (C)
of paragraph (2) for a calendar year only if the Secretary
determines, using actuarial projections provided by the
trustees of the Combined Benefit Fund referred to in
paragraph (2)(A), that amounts will be available under
paragraph (1), after the transfer, for the next fiscal year
for making the transfer under paragraph (2)(A).
``(B) Rate of contributions of obligors.--
``(i) In general.--
``(I) Rate.--A transfer under paragraph (2)(C) shall not be
made for a calendar year unless the persons that are
obligated to contribute to the plan referred to in paragraph
(2)(C) on the date of the transfer are obligated to make the
contributions at rates that are no less than those in effect
on the date which is 30 days before the date of enactment of
this subsection.
``(II) Application.--The contributions described in
subclause (I) shall be applied first to the provision of
benefits to those plan beneficiaries who are not described in
paragraph (2)(C)(ii).
``(ii) Initial contributions.--
``(I) In general.--From the date of enactment of the
Surface Mining Control and Reclamation Act Amendments of 2006
through December 31, 2010, the persons that, on the date of
enactment of that Act, are obligated to contribute to the
plan referred to in paragraph (2)(C) shall be obligated,
collectively, to make contributions equal to the amount
described in paragraph (2)(C), less the amount actually
transferred due to the operation of subparagraph (C).
``(II) First calendar year.--Calendar year 2006 is the
first calendar year for which contributions are required
under this clause.
``(III) Amount of contribution for 2006.--Except as
provided in subclause (IV), the amount described in paragraph
(2)(C) for calendar year 2006 shall be calculated as if
paragraph (2)(C) had been in effect during 2005.
``(IV) Limitation.--The contributions required under this
clause for calendar year 2006 shall not exceed the amount
necessary for solvency of the plan described in paragraph
(2)(C), measured as of December 31, 2006 and taking into
account all assets held by the plan as of that date.
``(iii) Division.--The collective annual contribution
obligation required under clause (ii) shall be divided among
the persons subject to the obligation, and applied uniformly,
based on the hours worked for which contributions referred to
in clause (i) would be owed.
``(C) Phase-in of transfers.--For each of calendar years
2008 through 2010, the transfers required under subparagraphs
(B) and (C) of paragraph (2) shall equal the following
amounts:
``(i) For calendar year 2008, the Secretary shall make
transfers equal to 25 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(ii) For calendar year 2009, the Secretary shall make
transfers equal to 50 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(iii) For calendar year 2010, the Secretary shall make
transfers equal to 75 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(i) Funding.--
``(1) In general.--Subject to paragraph (3), out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the plans
described in subsection (h)(2) such sums as are necessary to
pay the following amounts:
``(A) To the Combined Fund (as defined in section
9701(a)(5) of the Internal Revenue Code of 1986 and referred
to in this paragraph as the `Combined Fund'), the amount that
the trustees of the Combined Fund estimate will be expended
from premium accounts maintained by the Combined Fund for the
fiscal year to provide benefits for beneficiaries who are
unassigned beneficiaries solely as a result of the
application of section 9706(h)(1) of the Internal Revenue
Code of 1986, subject to the following limitations:
``(i) For fiscal year 2008, the amount paid under this
subparagraph shall equal--
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(A) of
the Internal Revenue Code of 1986.
``(ii) For fiscal year 2009, the amount paid under this
subparagraph shall equal--
[[Page H6186]]
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(B) of
the Internal Revenue Code of 1986.
``(iii) For fiscal year 2010, the amount paid under this
subparagraph shall equal--
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(C) of
the Internal Revenue Code of 1986.
``(B) On certification by the trustees of any plan
described in subsection (h)(2) that the amount available for
transfer by the Secretary pursuant to this section
(determined after application of any limitation under
subsection (h)(5)) is less than the amount required to be
transferred, to the plan the amount necessary to meet the
requirement of subsection (h)(2).
``(C) To the Combined Fund, $9,000,000 on October 1, 2007,
$9,000,000 on October 1, 2008, and $9,000,000 on October 1,
2009 (which amounts shall not be exceeded) to provide a
refund of any premium (as described in section 9704(a) of the
Internal Revenue Code of 1986) paid on or before September 7,
2000, to the Combined Fund, plus interest on the premium
calculated at the rate of 7.5 percent per year, on a
proportional basis and to be paid not later than 60 days
after the date on which each payment is received by the
Combined Fund, to those signatory operators (to the extent
that the Combined Fund has not previously returned the
premium amounts to the operators), or any related persons to
the operators (as defined in section 9701(c) of the Internal
Revenue Code of 1986), or their heirs, successors, or assigns
who have been denied the refunds as the result of final
judgments or settlements if--
``(i) prior to the date of enactment of this paragraph, the
signatory operator (or any related person to the operator)--
``(I) had all of its beneficiary assignments made under
section 9706 of the Internal Revenue Code of 1986 voided by
the Commissioner of the Social Security Administration; and
``(II) was subject to a final judgment or final settlement
of litigation adverse to a claim by the operator that the
assignment of beneficiaries under section 9706 of the
Internal Revenue Code of 1986 was unconstitutional as applied
to the operator; and
``(ii) on or before September 7, 2000, the signatory
operator (or any related person to the operator) had paid to
the Combined Fund any premium amount that had not been
refunded.
``(2) Payments to states and indian tribes.--Subject to
paragraph (3), out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Secretary of the Interior for distribution to States and
Indian tribes such sums as are necessary to pay amounts
described in paragraphs (1)(A) and (2)(A) of section 411(h).
``(3) Limitations.--
``(A) Cap.--The total amount transferred under this
subsection for any fiscal year shall not exceed $490,000,000.
``(B) Insufficient amounts.--In a case in which the amount
required to be transferred without regard to this paragraph
exceeds the maximum annual limitation in subparagraph (A),
the Secretary shall adjust the transfers of funds so that--
``(i) each transfer for the fiscal year is a percentage of
the amount described;
``(ii) the amount is determined without regard to
subsection (h)(5)(A); and
``(iii) the percentage transferred is the same for all
transfers made under this subsection for the fiscal year.
``(4) Availability of funds.--Funds shall be transferred
under paragraph (1) and (2) beginning in fiscal year 2008 and
each fiscal year thereafter, and shall remain available until
expended.''.
SEC. 313. OBJECTIVES OF FUND.
Section 403 of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1233) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``(1) the protection'' and inserting the
following:
``(1)(A) the protection;'';
(ii) in subparagraph (A) (as designated by clause (i)), by
striking ``general welfare,''; and
(iii) by adding at the end the following:
``(B) the restoration of land and water resources and the
environment that--
``(i) have been degraded by the adverse effects of coal
mining practices; and
``(ii) are adjacent to a site that has been or will be
remediated under subparagraph (A);'';
(B) in paragraph (2)--
(i) by striking ``(2) the protection'' and inserting the
following:
``(2)(A) the protection'';
(ii) in subparagraph (A) (as designated by clause (i), by
striking ``health, safety, and general welfare'' and
inserting ``health and safety''; and
(iii) by adding at the end the following:
``(B) the restoration of land and water resources and the
environment that--
``(i) have been degraded by the adverse effects of coal
mining practices; and
``(ii) are adjacent to a site that has been or will be
remediated under subparagraph (A); and'';
(C) in paragraph (3), by striking the semicolon at the end
and inserting a period; and
(D) by striking paragraphs (4) and (5);
(2) in subsection (b)--
(A) by striking the subsection heading and inserting
``Water Supply Restoration.--''; and
(B) in paragraph (1), by striking ``up to 30 percent of
the''; and
(3) in the second sentence of subsection (c), by inserting
``, subject to the approval of the Secretary,'' after
``amendments''.
SEC. 314. RECLAMATION OF RURAL LAND.
(a) Administration.--Section 406(h) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is
amended by striking ``Soil Conservation Service'' and
inserting ``Natural Resources Conservation Service''.
(b) Authorization of Appropriations for Carrying Out Rural
Land Reclamation.--Section 406 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1236) is amended by
adding at the end the following:
``(i) There are authorized to be appropriated to the
Secretary of Agriculture, from amounts in the Treasury other
than amounts in the fund, such sums as may be necessary to
carry out this section.''.
SEC. 315. LIENS.
Section 408(a) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1238) is amended in the
last sentence by striking ``who owned the surface prior to
May 2, 1977, and''.
SEC. 316. CERTIFICATION.
Section 411 of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1240a) is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' before the first sentence; and
(B) by adding at the end the following:
``(2)(A) The Secretary may, on the initiative of the
Secretary, make the certification referred to in paragraph
(1) on behalf of any State or Indian tribe referred to in
paragraph (1) if on the basis of the inventory referred to in
section 403(c) all reclamation projects relating to the
priorities described in section 403(a) for eligible land and
water pursuant to section 404 in the State or tribe have been
completed.
``(B) The Secretary shall only make the certification after
notice in the Federal Register and opportunity for public
comment.''; and
(2) by adding at the end the following:
``(h) Payments to States and Indian Tribes.--
``(1) In general.--
``(A) Payments.--
``(i) In general.--Notwithstanding section 401(f)(3)(B),
from funds referred to in section 402(i)(2), the Secretary
shall make payments to States or Indian tribes for the amount
due for the aggregate unappropriated amount allocated to the
State or Indian tribe under subparagraph (A) or (B) of
section 402(g)(1).
``(ii) Conversion as equivalent payments.--Amounts
allocated under subparagraphs (A) or (B) of section 402(g)(1)
shall be reallocated to the allocation established in section
402(g)(5) in amounts equivalent to payments made to States or
Indian tribes under this paragraph.
``(B) Amount due.--In this paragraph, the term `amount due'
means the unappropriated amount allocated to a State or
Indian tribe before October 1, 2007, under subparagraph (A)
or (B) of section 402(g)(1).
``(C) Schedule.--Payments under subparagraph (A) shall be
made in 7 equal annual installments, beginning with fiscal
year 2008.
``(D) Use of funds.--
``(i) Certified states and indian tribes.--A State or
Indian tribe that makes a certification under subsection (a)
in which the Secretary concurs shall use any amounts provided
under this paragraph for the purposes established by the
State legislature or tribal council of the Indian tribe, with
priority given for addressing the impacts of mineral
development.
``(ii) Uncertified states and indian tribes.--A State or
Indian tribe that has not made a certification under
subsection (a) in which the Secretary has concurred shall use
any amounts provided under this paragraph for the purposes
described in section 403.
``(2) Subsequent state and indian tribe share for certified
states and indian tribes.--
``(A) In general.--Notwithstanding section 401(f)(3)(B),
from funds referred to in section 402(i)(2), the Secretary
shall pay to each certified State or Indian tribe an amount
equal to the sum of the aggregate unappropriated amount
allocated on or after October 1, 2007, to the certified State
or Indian tribe under subparagraph (A) or (B) of section
402(g)(1).
``(B) Certified state or indian tribe defined.--In this
paragraph the term `certified State or Indian tribe' means a
State or Indian tribe for which a certification is made under
subsection (a) in which the Secretary concurs.
``(3) Manner of payment.--
``(A) In general.--Subject to subparagraph (B), payments to
States or Indian tribes under this subsection shall be made
without regard to any limitation in section 401(d) and
concurrently with payments to States under that section.
``(B) Initial payments.--The first 3 payments made to any
State or Indian tribe shall be reduced to 25 percent, 50
percent, and 75 percent, respectively, of the amounts
otherwise required under paragraph (2)(A).
``(C) Installments.--Amounts withheld from the first 3
annual installments as provided under subparagraph (B) shall
be paid in 2 equal annual installments beginning with fiscal
year 2018.
[[Page H6187]]
``(4) Reallocation.--
``(A) In general.--The amount allocated to any State or
Indian tribe under subparagraph (A) or (B) of section
402(g)(1) that is paid to the State or Indian tribe as a
result of a payment under paragraph (1) or (2) shall be
reallocated and available for grants under section 402(g)(5).
``(B) Allocation.--The grants shall be allocated based on
the amount of coal historically produced before August 3,
1977, in the same manner as under section 402(g)(5).''.
SEC. 317. REMINING INCENTIVES.
Title IV of the Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1231 et seq.) is amended by adding at the
following:
``SEC. 415. REMINING INCENTIVES.
``(a) In General.--Notwithstanding any other provision of
this Act, the Secretary may, after opportunity for public
comment, promulgate regulations that describe conditions
under which amounts in the fund may be used to provide
incentives to promote remining of eligible land under section
404 in a manner that leverages the use of amounts from the
fund to achieve more reclamation with respect to the eligible
land than would be achieved without the incentives.
``(b) Requirements.--Any regulations promulgated under
subsection (a) shall specify that the incentives shall apply
only if the Secretary determines, with the concurrence of the
State regulatory authority referred to in title V, that,
without the incentives, the eligible land would not be likely
to be remined and reclaimed.
``(c) Incentives.--
``(1) In general.--Incentives that may be considered for
inclusion in the regulations promulgated under subsection (a)
include, but are not limited to--
``(A) a rebate or waiver of the reclamation fees required
under section 402(a); and
``(B) the use of amounts in the fund to provide financial
assurance for remining operations in lieu of all or a portion
of the performance bonds required under section 509.
``(2) Limitations.--
``(A) Use.--A rebate or waiver under paragraph (1)(A) shall
be used only for operations that--
``(i) remove or reprocess abandoned coal mine waste; or
``(ii) conduct remining activities that meet the priorities
specified in paragraph (1) or (2) of section 403(a).
``(B) Amount.--The amount of a rebate or waiver provided as
an incentive under paragraph (1)(A) to remine or reclaim
eligible land shall not exceed the estimated cost of
reclaiming the eligible land under this section.''.
SEC. 318. EXTENSION OF LIMITATION ON APPLICATION OF
PROHIBITION ON ISSUANCE OF PERMIT.
Section 510(e) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1260(e)) is amended by
striking the last sentence.
SEC. 319. TRIBAL REGULATION OF SURFACE COAL MINING AND
RECLAMATION OPERATIONS.
(a) In General.--Section 710 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1300) is amended by
adding at the end the following:
``(j) Tribal Regulatory Authority.--
``(1) Tribal regulatory programs.--
``(A) In general.--Notwithstanding any other provision of
law, an Indian tribe may apply for, and obtain the approval
of, a tribal program under section 503 regulating in whole or
in part surface coal mining and reclamation operations on
reservation land under the jurisdiction of the Indian tribe
using the procedures of section 504(e).
``(B) References to state.--For purposes of this subsection
and the implementation and administration of a tribal program
under title V, any reference to a `State' in this Act shall
be considered to be a reference to a `tribe'.
``(2) Conflicts of interest.--
``(A) In general.--The fact that an individual is a member
of an Indian tribe does not in itself constitute a violation
of section 201(f).
``(B) Employees of tribal regulatory authority.--Any
employee of a tribal regulatory authority shall not be
eligible for a per capita distribution of any proceeds from
coal mining operations conducted on Indian reservation lands
under this Act.
``(3) Sovereign immunity.--To receive primary regulatory
authority under section 504(e), an Indian tribe shall waive
sovereign immunity for purposes of section 520 and paragraph
(4).
``(4) Judicial review.--
``(A) Civil actions.--
``(i) In general.--After exhausting all tribal remedies
with respect to a civil action arising under a tribal program
approved under section 504(e), an interested party may file a
petition for judicial review of the civil action in the
United States circuit court for the circuit in which the
surface coal mining operation named in the petition is
located.
``(ii) Scope of review.--
``(I) Questions of law.--The United States circuit court
shall review de novo any questions of law under clause (i).
``(II) Findings of fact.--The United States circuit court
shall review findings of fact under clause (i) using a
clearly erroneous standard.
``(B) Criminal actions.--Any criminal action brought under
section 518 with respect to surface coal mining or
reclamation operations on Indian reservation lands shall be
brought in--
``(i) the United States District Court for the District of
Columbia; or
``(ii) the United States district court in which the
criminal activity is alleged to have occurred.
``(5) Grants.--
``(A) In general.--Except as provided in subparagraph (B),
grants for developing, administering, and enforcing tribal
programs approved in accordance with section 504(e) shall be
provided to an Indian tribe in accordance with section 705.
``(B) Exception.--Notwithstanding subparagraph (A), the
Federal share of the costs of developing, administering, and
enforcing an approved tribal program shall be 100 percent.
``(6) Report.--Not later than 18 months after the date on
which a tribal program is approved under subsection (e) of
section 504, the Secretary shall submit to the appropriate
committees of Congress a report, developed in cooperation
with the applicable Indian tribe, on the tribal program that
includes a recommendation of the Secretary on whether primary
regulatory authority under that subsection should be expanded
to include additional Indian lands.''.
(b) Conforming Amendment.--Section 710(i) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1300(i)) is amended in the first sentence by striking ``,
except'' and all that follows through ``section 503''.
Subtitle B--Coal Industry Retiree Health Benefit Act
SEC. 321. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST
RELIEVED OF LIABILITY IF PREMIUMS PREPAID.
(a) Combined Benefit Fund.--
(1) In general.--Section 9704 of the Internal Revenue Code
of 1986 (relating to liability of assigned operators) is
amended by adding at the end the following new subsection:
``(j) Prepayment of Premium Liability.--
``(1) In general.--If--
``(A) a payment meeting the requirements of paragraph (3)
is made to the Combined Fund by or on behalf of--
``(i) any assigned operator to which this subsection
applies, or
``(ii) any related person to any assigned operator
described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in paragraph (2)(B) is jointly and
severally liable for any premium under this section which
(but for this subsection) would be required to be paid by the
assigned operator or related person,
then such common parent (and no other person) shall be liable
for such premium.
``(2) Assigned operators to which subsection applies.--
``(A) In general.--This subsection shall apply to any
assigned operator if--
``(i) the assigned operator (or a related person to the
assigned operator)--
``(I) made contributions to the 1950 UMWA Benefit Plan and
the 1974 UMWA Benefit Plan for employment during the period
covered by the 1988 agreement; and
``(II) is not a 1988 agreement operator,
``(ii) the assigned operator (and all related persons to
the assigned operator) are not actively engaged in the
production of coal as of July 1, 2005, and
``(iii) the assigned operator was, as of July 20, 1992, a
member of a controlled group of corporations described in
subparagraph (B).
``(B) Controlled group of corporations.--A controlled group
of corporations is described in this subparagraph if the
common parent of such group is a corporation the shares of
which are publicly traded on a United States exchange.
``(C) Coordination with repeal of assignments.--A person
shall not fail to be treated as an assigned operator to which
this subsection applies solely because the person ceases to
be an assigned operator by reason of section 9706(h)(1) if
the person otherwise meets the requirements of this
subsection and is liable for the payment of premiums under
section 9706(h)(3).
``(D) Controlled group.--For purposes of this subsection,
the term `controlled group of corporations' has the meaning
given such term by section 52(a).
``(3) Requirements.--A payment meets the requirements of
this paragraph if--
``(A) the amount of the payment is not less than the
present value of the total premium liability under this
chapter with respect to the Combined Fund of the assigned
operators or related persons described in paragraph (1) or
their assignees, as determined by the operator's or related
person's enrolled actuary (as defined in section 7701(a)(35))
using actuarial methods and assumptions each of which is
reasonable and which are reasonable in the aggregate, as
determined by such enrolled actuary;
``(B) such enrolled actuary files with the Secretary of
Labor a signed actuarial report containing--
``(i) the date of the actuarial valuation applicable to the
report; and
``(ii) a statement by the enrolled actuary signing the
report that, to the best of the actuary's knowledge, the
report is complete and accurate and that in the actuary's
opinion the actuarial assumptions used are in the aggregate
reasonably related to the experience of the operator and to
reasonable expectations; and
``(C) 90 calendar days have elapsed after the report
required by subparagraph (B) is filed with the Secretary of
Labor, and the Secretary of Labor has not notified the
assigned operator in writing that the requirements of this
paragraph have not been satisfied.
[[Page H6188]]
``(4) Use of prepayment.--The Combined Fund shall--
``(A) establish and maintain an account for each assigned
operator or related person by, or on whose behalf, a payment
described in paragraph (3) was made,
``(B) credit such account with such payment (and any
earnings thereon), and
``(C) use all amounts in such account exclusively to pay
premiums that would (but for this subsection) be required to
be paid by the assigned operator.
Upon termination of the obligations for the premium liability
of any assigned operator or related person for which such
account is maintained, all funds remaining in such account
(and earnings thereon) shall be refunded to such person as
may be designated by the common parent described in paragraph
(1)(B).''.
(b) Individual Employer Plans.--Section 9711(c) of the
Internal Revenue Code of 1986 (relating to joint and several
liability) is amended to read as follows:
``(c) Joint and Several Liability of Related Persons.--
``(1) In general.--Except as provided in paragraph (2),
each related person of a last signatory operator to which
subsection (a) or (b) applies shall be jointly and severally
liable with the last signatory operator for the provision of
health care coverage described in subsection (a) or (b).
``(2) Liability limited if security provided.--If--
``(A) security meeting the requirements of paragraph (3) is
provided by or on behalf of--
``(i) any last signatory operator which is an assigned
operator described in section 9704(j)(2), or
``(ii) any related person to any last signatory operator
described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in section 9704(j)(2)(B) is jointly
and severally liable for the provision of health care under
this section which, but for this paragraph, would be required
to be provided by the last signatory operator or related
person,
then, as of the date the security is provided, such common
parent (and no other person) shall be liable for the
provision of health care under this section which the last
signatory operator or related person would otherwise be
required to provide. Security may be provided under this
paragraph without regard to whether a payment was made under
section 9704(j).
``(3) Security.--Security meets the requirements of this
paragraph if--
``(A) the security--
``(i) is in the form of a bond, letter of credit, or cash
escrow,
``(ii) is provided to the trustees of the 1992 UMWA Benefit
Plan solely for the purpose of paying premiums for
beneficiaries who would be described in section 9712(b)(2)(B)
if the requirements of this section were not met by the last
signatory operator, and
``(iii) is in an amount equal to 1 year of liability of the
last signatory operator under this section, determined by
using the average cost of such operator's liability during
the prior 3 calendar years;
``(B) the security is in addition to any other security
required under any other provision of this title; and
``(C) the security remains in place for 5 years.
``(4) Refunds of security.--The remaining amount of any
security provided under this subsection (and earnings
thereon) shall be refunded to the last signatory operator as
of the earlier of--
``(A) the termination of the obligations of the last
signatory operator under this section, or
``(B) the end of the 5-year period described in paragraph
(4)(C).''.
(c) 1992 UMWA Benefit Plan.--Section 9712(d)(4) of the
Internal Revenue Code of 1986 (relating to joint and several
liability) is amended by adding at the end the following new
sentence: ``The provisions of section 9711(c)(2) shall apply
to any last signatory operator described in such section
(without regard to whether security is provided under such
section, a payment is made under section 9704(j), or both)
and if security meeting the requirements of section
9711(c)(3) is provided, the common parent described in
section 9711(c)(2)(B) shall be exclusively responsible for
any liability for premiums under this section which, but for
this sentence, would be required to be paid by the last
signatory operator or any related person.''.
(d) Successor in Interest.--Section 9701(c) of the Internal
Revenue Code of 1986 (relating to terms relating to
operators) is amended by adding at the end the following new
paragraph:
``(8) Successor in interest.--
``(A) Safe harbor.--The term `successor in interest' shall
not include any person who--
``(i) is an unrelated person to an eligible seller
described in subparagraph (C); and
``(ii) purchases for fair market value assets, or all of
the stock, of a related person to such seller, in a bona
fide, arm's-length sale.
``(B) Unrelated person.--The term `unrelated person' means
a purchaser who does not bear a relationship to the eligible
seller described in section 267(b).
``(C) Eligible seller.--For purposes of this paragraph, the
term `eligible seller' means an assigned operator described
in section 9704(j)(2) or a related person to such assigned
operator.''.
(e) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act,
except that the amendment made by subsection (d) shall apply
to transactions after the date of the enactment of this Act.
SEC. 322. TRANSFERS TO FUNDS; PREMIUM RELIEF.
(a) Combined Fund.--
(1) Federal transfers.--Section 9705(b) of the Internal
Revenue Code of 1986 (relating to transfers from Abandoned
Mine Reclamation Fund) is amended--
(A) in paragraph (1), by striking ``section 402(h)'' and
inserting ``subsections (h) and (i) of section 402'';
(B) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Use of funds.--Any amount transferred under paragraph
(1) for any fiscal year shall be used to pay benefits and
administrative costs of beneficiaries of the Combined Fund or
for such other purposes as are specifically provided in the
Acts described in paragraph (1).''; and
(C) by striking ``From Abandoned Mine Reclamation Fund''.
(2) Modifications of premiums to reflect federal
transfers.--
(A) Elimination of unassigned beneficiaries premium.--
Section 9704(d) of such Code (establishing unassigned
beneficiaries premium) is amended to read as follows:
``(d) Unassigned Beneficiaries Premium.--
``(1) Plan years ending on or before september 30, 2006.--
For plan years ending on or before September 30, 2006, the
unassigned beneficiaries premium for any assigned operator
shall be equal to the applicable percentage of the product of
the per beneficiary premium for the plan year multiplied by
the number of eligible beneficiaries who are not assigned
under section 9706 to any person for such plan year.
``(2) Plan years beginning on or after october 1, 2006.--
``(A) In general.--For plan years beginning on or after
October 1, 2006, subject to subparagraph (B), there shall be
no unassigned beneficiaries premium, and benefit costs with
respect to eligible beneficiaries who are not assigned under
section 9706 to any person for any such plan year shall be
paid from amounts transferred under section 9705(b).
``(B) Inadequate transfers.--If, for any plan year
beginning on or after October 1, 2006, the amounts
transferred under section 9705(b) are less than the amounts
required to be transferred to the Combined Fund under
subsection (h)(2)(A) or (i) of section 402 of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232)),
then the unassigned beneficiaries premium for any assigned
operator shall be equal to the operator's applicable
percentage of the amount required to be so transferred which
was not so transferred.''.
(B) Premium accounts.--
(i) Crediting of accounts.--Section 9704(e)(1) of such Code
(relating to premium accounts; adjustments) is amended by
inserting ``and amounts transferred under section 9705(b)''
after ``premiums received''.
(ii) Surpluses attributable to public funding.--Section
9704(e)(3)(A) of such Code is amended by adding at the end
the following new sentence: ``Amounts credited to an account
from amounts transferred under section 9705(b) shall not be
taken into account in determining whether there is a surplus
in the account for purposes of this paragraph.''
(C) Applicable percentage.--Section 9704(f)(2) of such Code
(relating to annual adjustments) is amended by adding at the
end the following new subparagraph:
``(C) In the case of plan years beginning on or after
October 1, 2007, the total number of assigned eligible
beneficiaries shall be reduced by the eligible beneficiaries
whose assignments have been revoked under section 9706(h).''.
(3) Assignments and reassignment.--Section 9706 of the
Internal Revenue Code of 1986 (relating to assignment of
eligible beneficiaries) is amended by adding at the end the
following:
``(h) Assignments as of October 1, 2007.--
``(1) In general.--Subject to the premium obligation set
forth in paragraph (3), the Commissioner of Social Security
shall--
``(A) revoke all assignments to persons other than 1988
agreement operators for purposes of assessing premiums for
plan years beginning on and after October 1, 2007; and
``(B) make no further assignments to persons other than
1988 agreement operators, except that no individual who
becomes an unassigned beneficiary by reason of subparagraph
(A) may be assigned to a 1988 agreement operator.
``(2) Reassignment upon purchase.--This subsection shall
not be construed to prohibit the reassignment under
subsection (b)(2) of an eligible beneficiary.
``(3) Liability of persons during three fiscal years
beginning on and after october 1, 2007.--In the case of each
of the fiscal years beginning on October 1, 2007, 2008, and
2009, each person other than a 1988 agreement operator shall
pay to the Combined Fund the following percentage of the
amount of annual premiums that such person would otherwise be
required to pay under section 9704(a), determined on the
basis of assignments in effect without regard to the
revocation of assignments under paragraph (1)(A):
``(A) For the fiscal year beginning on October 1, 2007, 55
percent.
``(B) For the fiscal year beginning on October 1, 2008, 40
percent.
``(C) For the fiscal year beginning on October 1, 2009, 15
percent.''.
[[Page H6189]]
(4) Effective date.--The amendments made by this subsection
shall apply to plan years of the Combined Fund beginning
after September 30, 2006.
(b) 1992 UMWA Benefit and Other Plans.--
(1) Transfers to plans.--Section 9712(a) of the Internal
Revenue Code of 1986 (relating to the establishment and
coverage of the 1992 UMWA Benefit Plan) is amended by adding
at the end the following:
``(3) Transfers under other federal statutes.--
``(A) In general.--The 1992 UMWA Benefit Plan shall include
any amount transferred to the plan under subsections (h) and
(i) of section 402 of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232).
``(B) Use of funds.--Any amount transferred under
subparagraph (A) for any fiscal year shall be used to provide
the health benefits described in subsection (c) with respect
to any beneficiary for whom no monthly per beneficiary
premium is paid pursuant to paragraph (1)(A) or (3) of
subsection (d).
``(4) Special rule for 1993 plan.--
``(A) In general.--The plan described in section
402(h)(2)(C) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(h)(2)(C)) shall include any
amount transferred to the plan under subsections (h) and (i)
of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232).
``(B) Use of funds.--Any amount transferred under
subparagraph (A) for any fiscal year shall be used to provide
the health benefits described in section 402(h)(2)(C)(i) of
the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232(h)(2)(C)(i)) to individuals described in section
402(h)(2)(C) of such Act (30 U.S.C. 1232(h)(2)(C)).''.
(2) Premium adjustments.--
(A) In general.--Section 9712(d)(1) of such Code (relating
to guarantee of benefits) is amended to read as follows:
``(1) In general.--All 1988 last signatory operators shall
be responsible for financing the benefits described in
subsection (c) by meeting the following requirements in
accordance with the contribution requirements established in
the 1992 UMWA Benefit Plan:
``(A) The payment of a monthly per beneficiary premium by
each 1988 last signatory operator for each eligible
beneficiary of such operator who is described in subsection
(b)(2) and who is receiving benefits under the 1992 UMWA
benefit plan.
``(B) The provision of a security (in the form of a bond,
letter of credit, or cash escrow) in an amount equal to a
portion of the projected future cost to the 1992 UMWA Benefit
Plan of providing health benefits for eligible and
potentially eligible beneficiaries attributable to the 1988
last signatory operator.
``(C) If the amounts transferred under subsection (a)(3)
are less than the amounts required to be transferred to the
1992 UMWA Benefit Plan under subsections (h) and (i) of
section 402 of the Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1232), the payment of an additional
backstop premium by each 1988 last signatory operator which
is equal to such operator's share of the amounts required to
be so transferred but which were not so transferred,
determined on the basis of the number of eligible and
potentially eligible beneficiaries attributable to the
operator.''.
(B) Conforming amendments.--Section 9712(d) of such Code is
amended--
(i) in paragraph (2)(B), by striking ``prefunding'' and
inserting ``backstop'', and
(ii) in paragraph (3), by striking ``paragraph (1)(B)'' and
inserting ``paragraph (1) (A)''.
(C) Effective date.--The amendments made by this paragraph
shall apply to fiscal years beginning on or after October 1,
2010.
SEC. 323. OTHER PROVISIONS.
(a) Board of Trustees.--Section 9702(b) of the Internal
Revenue Code of 1986 (relating to board of trustees of the
Combined Fund) is amended to read as follows:
``(b) Board of Trustees.--
``(1) In general.--For purposes of subsection (a), the
board of trustees for the Combined Fund shall be appointed as
follows:
``(A) 2 individuals who represent employers in the coal
mining industry shall be designated by the BCOA;
``(B) 2 individuals designated by the United Mine Workers
of America; and
``(C) 3 individuals selected by the individuals appointed
under subparagraphs (A) and (B).
``(2) Successor trustees.--Any successor trustee shall be
appointed in the same manner as the trustee being succeeded.
The plan establishing the Combined Fund shall provide for the
removal of trustees.
``(3) Special rule.--If the BCOA ceases to exist, any
trustee or successor under paragraph (1)(A) shall be
designated by the 3 employers who were members of the BCOA on
the enactment date and who have been assigned the greatest
number of eligible beneficiaries under section 9706.''.
(b) Enforcement of Obligations.--
(1) Failure to pay premiums.--Section 9707(a) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Failures to Pay.--
``(1) Premiums for eligible beneficiaries.--There is hereby
imposed a penalty on the failure of any assigned operator to
pay any premium required to be paid under section 9704 with
respect to any eligible beneficiary.
``(2) Contributions required under the mining laws.--There
is hereby imposed a penalty on the failure of any person to
make a contribution required under section 402(h)(5)(B)(ii)
of the Surface Mining Control and Reclamation Act of 1977 to
a plan referred to in section 402(h)(2)(C) of such Act. For
purposes of applying this section, each such required monthly
contribution for the hours worked of any individual shall be
treated as if it were a premium required to be paid under
section 9704 with respect to an eligible beneficiary.''.
(2) Civil enforcement.--Section 9721 of such Code is
amended to read as follows:
``SEC. 9721. CIVIL ENFORCEMENT.
``The provisions of section 4301 of the Employee Retirement
Income Security Act of 1974 shall apply, in the same manner
as any claim arising out of an obligation to pay withdrawal
liability under subtitle E of title IV of such Act, to any
claim--
``(1) arising out of an obligation to pay any amount
required to be paid by this chapter; or
``(2) arising out of an obligation to pay any amount
required by section 402(h)(5)(B)(ii) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C.
1232(h)(5)(B)(ii)).''.
TITLE IV--INCREASE IN MINIMUM WAGE
SEC. 401. MINIMUM WAGE.
Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) is amended to read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) $5.15 an hour beginning September 1, 1997;
``(B) $5.85 an hour, beginning on January 1, 2007;
``(C) $6.55 an hour, beginning June 1, 2008; and
``(D) $7.25 an hour, beginning June 1, 2009;''.
SEC. 402. TIPPED WAGE FAIRNESS.
Section 3(m) of the Fair Labor Standards Act of 1938 (29
U.S.C. 203(m)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by striking `` `Wage' paid to any employee'' and
inserting ``(1) `Wage' paid to any employee'';
(3) in subparagraph (B) (as so redesignated), by inserting
before the period the following: ``: Provided, That the tips
shall not be included as part of the wage paid to an employee
to the extent that they are excluded therefrom under the
terms of a bona fide collective bargaining agreement
applicable to the particular employee''; and
(4) by adding at the end of the following:
``(2) Notwithstanding any other provision of this Act, any
State or political subdivision of a State which on or after
the date of enactment of the Estate Tax and Extension of Tax
Relief Act of 2006 excludes all of a tipped employee's tips
from being considered as wages in determining if such tipped
employee has been paid the applicable minimum wage rate, may
not establish or enforce the minimum wage rate provisions of
such law, ordinance, regulation, or order in such State or
political subdivision thereof with respect to tipped
employees unless such law, ordinance, regulation, or order is
revised or amended to permit such employee to be paid a wage
by the employee's employer in an amount not less than an
amount equal to--
``(A) the cash wage paid such employee which is required
under such law, ordinance, regulation, or order on the date
of enactment of the Estate Tax and Extension of Tax Relief
Act of 2006; and
``(B) an additional amount on account of tips received by
such employee which amount is equal to the difference between
the cash wage described in subparagraph (A) and the minimum
wage rate in effect under such law, ordinance, regulation, or
order, or the minimum wage rate in effect under section 6(a),
whichever is higher.''.
The SPEAKER pro tempore. Pursuant to House Resolution 966, 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. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I ask unanimous consent to yield 15 minutes
my time to the gentleman from California (Mr. George Miller) for him to
control.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield to the
gentleman from Ohio (Mr. Kucinich) for the purpose of a unanimous
consent request.
(Mr. KUCINICH asked and was given permission to revise and extend his
remarks.)
Mr. KUCINICH. Mr. Speaker, I rise in opposition to the bill.
I will quote from the Good Book, not the Internal Revenue Code, but
the Bible, Mr. Speaker. Isaiah 10th Chapter, First and Second verse:
``Woe to those who make unjust laws, to those who issue oppressive
decrees, to deprive the poor of their rights and withhold justice from
the oppressed of my people. . . .''
[[Page H6190]]
Tonight we debate an unjust law which steals from the poor to give to
the rich. It is unjust to attach a minimum wage increase to tax cuts
for the rich. It would cost about $26 billion a year to give a $2.10
increase in the minimum wage to the least wealthy workers. The estate
tax cut could give about $80 billion per year for 10 years to 3
families out of every 1,000.
Some call it a death tax, cut this poison pill will be the death of
the minimum wage increase for millions of working Americans.
It is unjust that here, in the richest country on earth, there is no
guarantee that a full-time job will lift a family out of a situation of
dire poverty. That's because full-time year-round minimum wage earnings
at $5.15 an hour leave a family of three $5,000 below the poverty line.
Since 1997, the last minimum wage increase, the cost of living has
increased for all Americans. The cost of putting food on the table, of
keeping a roof over your head, the cost of gas--all going up, up, up.
The only thing that hasn't increased is the minimum wage. Congress's
response: Give a tax cut to the wealthiest Americans. This is a perfect
example of single-minded economic policy--surpluses: tax cuts to the
wealthy; deficits: tax cuts to the wealthy; war: tax cuts to the
wealthy; high gas prices: tax cuts to the wealthy. A much needed
increase in the minimum wage to the humblest of workers: tax cuts to
the wealthy.
``Woe to those who make unjust laws'' said Isaiah.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2\1/2\ minutes
to the gentleman from Maryland (Mr. Hoyer).
{time} 2345
Mr. HOYER. I thank the gentleman for yielding, and I rise in
opposition to this bill and to lament the fact that we did not do what
250 Members of this House want to do.
Mr. Speaker, 250 Members of this House have indicated they want to
see a raise in the minimum wage, that they want to see it now, and they
want to see it in a simple straightforward bill to say to those working
at the lowest rungs in America, doing what we expect them to do,
working day to day, week to week, month to month, year to year to
support themselves, their family, and contribute to the welfare of our
country. We expect them to work; we ought to pay them. We ought to pay
them a wage that does not leave them in poverty.
We could do that, because 250 of us would vote for such a bill. But,
unfortunately, once again, we are playing a game. This bill was
referred to as an Estate Tax Bill, not a minimum-wage bill. Minimum
wage is included in the Estate Tax Bill. But that is the reason you put
this bill on the floor, to pass a bill you have already passed but
can't pass the Senate, or at least has not passed the Senate.
Therefore, attaching the minimum wage, which 48 of your Republican
colleagues say they want to be for, is to design a process for failure.
Not a failure for us, none of us work for the minimum wage; but a
failure for 6.6 million people and, indeed, some 12 million more people
who rely on help from those earning the minimum wage to support
themselves and their families.
How sad. How sad that a 250-Member majority of the House of
Representatives cannot summon the will or the courage or the good sense
to offer simply a bill which does what we want it to do, to raise from
$5.15 the minimum wage over three increments to $7.25.
If a minimum-wage worker was earning now what he or she earned in
1968, they would be earning $9.05 an hour. This bill simply has an
increase to $7.25, the bill that we proposed. Now, we will have that
available in a motion to recommit, along with the extenders that
everybody is for, which could have passed on a separate suspension
bill, I suspect. But the fact of the matter is that this bill is
designed to fail because the majority leadership opposes raising the
minimum wage. How sad. How shameful.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Does anyone here think it is rather odd if we designed a bill to fail
we would place in it what apparently the Members on the other side say
is one of our really primary focuses, and that is to allow people who
have worked all their lives to hang on to a little bit of what they get
after death for their family? Why would you couple those two together
if you wanted it to fail?
The so-called extenders are 7 months overdue. They need to be
extended. Why would you put a minimum wage in this structure, and
extenders, if you built a bill to fail?
I think it is going to be very tortured discussion on the floor,
because our colleagues on the other side just can't quite get their
arms around the fact that the Republicans are for a significant change
in the estate tax, they are for extending the extenders, and we are for
a minimum wage.
All you have to do is vote ``yes.'' Now, that probably is your
biggest difficulty, voting ``yes'' on a bill that is in front of you.
If you vote ``yes,'' as the gentleman from Maryland said, minimum wage
goes from $5.15 to $7.25. If you vote ``yes,'' you join us in
encouraging the Senate. And if you want to find the graveyard for the
minimum wage, I suggest you go over and visit the other body.
What we have done is tried to package this to succeed in getting the
minimum wage through the other body. And if we can work together, all
you have to do is start by voting ``yes,'' and then it could be
contagious, we could go over and get the Senate to vote ``yes,'' and we
could have a minimum-wage increase to $7.25 in 3 years. We could also
extend the extenders, and we could also have a very reasonable
appropriate structure for allowing people to hang on to a little bit
more of what they work for and accumulate over their lifetime.
I know the cost of making that happen is high. It means you'd
actually have to vote ``yes.''
Mr. Speaker, I reserve the balance of my time.
Mr. GEORGE MILLER of California. I yield 2 minutes to the gentleman
from New Jersey (Mr. Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his
remarks.)
Mr. ANDREWS. No bill more clearly captures the distorted values of
the majority of the House than the bill before us right now. People who
earn the minimum wage and work full time mostly live below the poverty
level, and they have been waiting for a very long time for a raise in
their pay.
This bill says to those who wash dishes and launder laundry and clean
houses, you got to wait just a little bit longer for that raise. You
have to wait until the wealthiest people in the country are able to see
their heirs pay little or no tax on the wealth that is passed to the
next generation.
Now, the idea of reducing or eliminating the estate tax may or may
not have merit, and that idea deserves a free and separate debate on
this floor, but so does the idea of raising the minimum wage for those
at the bottom of the ladder in this country. This shows us who comes
first. This bill says those that launder laundry and clean rooms and
work in car washes will wait their turn until the wealthiest people in
the country can pass off wealth to their heirs. They come first.
This is a shameful distortion of the country's values. We should vote
now and we should vote ``yes'' for an increase in the minimum wage,
free and clear of this distortion of values for the estate tax. Vote
against this bill.
Mr. THOMAS. Mr. Speaker, I yield myself briefly.
Gee, I know you work for the minimum wage, and I know you want a
higher minimum wage, but the way the offer was packaged was such that I
had to vote ``no.'' So don't blame me that you didn't get an increase
in the minimum wage, because I voted ``no.''
As I said, this is going to be very difficult. All you have to do is
vote ``yes.''
Mr. Speaker, it is my pleasure now to yield 3 minutes to the
gentleman from New York (Mr. Sweeney).
Mr. SWEENEY. I thank the gentleman for yielding time.
Mr. Speaker, I came here tonight to vote for much-needed pension
reform and to provide Americans with a better living wage. And I would
have preferred a simpler, more straightforward minimum-wage vote as
well. In fact, I voted that way in the Appropriations Committee. I
voted for Mr. Hoyer's provision that extended the minimum wage for 30
months, or extended a raise for 30 months to $7.15.
I come here tonight to say that I am going to vote for this bill, and
I had actually hoped to vote for the Democratic motion to recommit, if
it had been a simple, straightforward proposition to vote. And I note
that the Democrats have had a number of opportunities to bring a
straightforward
[[Page H6191]]
minimum-wage vote to the floor, as they have done in a variety of other
instances on a variety of other issues, but never have done it.
So it leads me to this one thought, that if we are actually serious
about the minimum wage and passing a minimum-wage increase, and I say
this as a former State labor commissioner and I say this as someone who
worked numerous minimum-wage jobs over the course of my life, I say
this as someone who comes from a blue collar background, not a
privileged background, and I would note that some of the leadership on
the other side comes from much better standing than I, you would have
brought that bill and worked in good faith to negotiate. But that
didn't happen. That didn't happen because politics won the day here.
Rather than passing a minimum-wage increase, it was decided that we
wanted to preserve an issue. That is wrong. It doesn't serve the
American people.
In terms of including the estate tax, what I had said all along is I
would like to see a minimum-wage increase, but we need offsets to small
businesses and farmers who make up 90 percent of the employment in my
district. So when you say that an estate tax, an extension of the
estate tax isn't viable, doesn't belong in this bill, tell that to the
farmers in my district like Tom Borden who runs the orchard and dairy
farm in eastern New York; or Paul Schmidt, a dairy farmer in Posenkill,
both of whom have been begging to see this estate tax eliminated for
years so they can sleep at night knowing that despite all the hard work
and all the government regulation and all the burdens that they have
faced, they can pass on to their family that valuable contribution to
society that they have.
So be careful. Be careful when you demagogue this issue. Be careful
when you politicize this issue. This is about representing people. We
need to pass a minimum wage. I am in favor of this bill, and I am going
to oppose the motion to recommit, and I suggest my colleagues do the
same.
Mr. GEORGE MILLER of California. I yield 2 minutes to the gentlewoman
from California (Ms. Waters).
Ms. WATERS. Mr. Speaker, I rise in support of raising the minimum
wage for the nearly 7 million minimum-wage American workers. However, I
oppose this bill because it contains provisions unrelated to actually
increasing the minimum wage. Those provisions should be voted on
separately.
As a matter of fact, I am really ashamed to be a Member of Congress
at this point. The Republicans are playing tricks again. They have
coupled another tax break for the richest in America with this minimum-
wage increase.
Since 2001, this Republican Congress has cut taxes by $1.8 trillion,
and most of these tax cuts have gone to the wealthiest 1 percent of
Americans. Yet when it comes to helping low- and middle-income
Americans, the Republican Party is nowhere to be seen. Even this vote
came reluctantly and is tied to giveaways that will gut any increase in
the minimum wage.
Each day Americans are confronted with rising prices of everyday
items they need: gasoline, home energy, and health care. These rising
costs are stretching family budgets thin, preventing them from saving
for a family emergency, education, a new home, or retirement.
In California over the past 5 years, the cost of staple goods has
risen at a steady rate. For example, the cost of milk has risen 23
percent; housing has increased 45 percent; and child care has increased
14 percent. However, the wages for thousands of workers have remained
stagnant.
The increase in the minimum wage is about one thing, Mr. Speaker,
justice for American workers. Without an increase in the minimum wage,
the American worker cannot enjoy life, liberty, and the pursuit of
happiness. Quality of life is indeed important. Freedom to pursue one's
dreams, whether it is in education or a new home, is freedom. Happiness
is about fulfilling dreams. Workers earning the current stagnant
minimum wage are simply not as happy as they should be in America.
I oppose this legislation as drafted. I am ashamed to be here with
these people who are denying the poorest of our society a decent
living.
Mr. THOMAS. Mr. Speaker, I yield myself briefly.
All we have to do to provide an increase in the minimum wage is to
vote ``yes.''
And I wonder how that person working for a minimum wage feels when
you say, I couldn't vote ``yes'' for the increase in the minimum wage
because I was offended the way it was presented to us. And you need to
know that the way I feel about the process in the House of
Representatives is more important than providing you with an increase
in the minimum wage.
Mr. Speaker, it is now my pleasure to yield 2 minutes to the
gentleman from Pennsylvania, a valued member of the Ways and Means
Committee, Mr. English.
{time} 0000
Mr. ENGLISH of Pennsylvania. Mr. Speaker, let me say what is sad and
shameful here tonight is the argument being made by so-called
progressives to justify their vote against raising the minimum wage.
This legislation, granted, includes an extension of the work
opportunity tax credit so that we can encourage more people to move off
welfare onto the rolls. It includes extensions of the deduction for
higher education expenses and the deduction for teachers for their day-
to-day expenses in the classroom. It includes expensing of mine safety
equipment. It also improves access to lifesaving vaccines.
Mr. Speaker, it also includes an increase in the minimum wage,
something they led us to believe that they wanted to see, something
that I have been fighting for for years, and they have done nothing to
carry any heavy lifting on.
Mr. Speaker, the one vote on raising the minimum wage in the House
this year is this vote and we are going to take names, and workers are
going to be watching.
Mr. Speaker, this current minimum wage is an embarrassment. A 40-
hour-a-week worker at minimum wage makes just over $10,000. Working
families are struggling to make ends meet, to address higher gas
prices, to address rising home heating bills. And in the face of all of
that, the so-called progressives are finding every imaginable excuse to
vote against raising the minimum wage. They have always liked the
politics of the minimum wage and generally cared little for the policy
of the minimum wage. We have always clustered increases of the minimum
wage with other issues. There is nothing novel about this.
This is one up-or-down vote. The American people are going to be
holding them accountable. And if they vote ``no,'' they are voting
against raising the minimum wage. That includes the gentleman from Ohio
who is running for the Senate and we are going to watch that one with a
great deal of interest. There is only one vote this year for raising
the minimum wage. It is this one. We are going to hold you accountable
for how you vote on it, whether you hiss or not.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to
the gentleman from Ohio (Mr. Brown).
Mr. BROWN of Ohio. Thank you, Mr. Miller, for your terrific
leadership fighting for workers. And to my hypocritical friends on the
other side of the aisle, I actually plan to vote for the minimum wage.
I stand in honor of the millions of American workers trying to get by
on a woefully inadequate minimum wage. On behalf of 500,000 Ohio
workers and the Nation's 6 million workers, I will vote in favor of a
minimum-wage increase tonight despite the dishonorable chicanery of the
gentleman from Pennsylvania and his friends once again foisted on this
Chamber by a Republican majority run amok.
For 10 years, Democrats have tried to increase the minimum wage.
Mr. ENGLISH of Pennsylvania. Will the gentleman yield?
Mr. BROWN of Ohio. I yield to the gentleman from Pennsylvania.
Mr. ENGLISH of Pennsylvania. Did the gentleman vote for raising the
minimum wage the last time this came up in 1996?
Mr. BROWN of Ohio. Of course I did.
Mr. ENGLISH of Pennsylvania. And how did you distinguish this bill,
which included tax provisions for a variety of small businesses, from
this bill?
Mr. BROWN of Ohio. I voted for it then. I plan to vote for it now.
Mr. ENGLISH of Pennsylvania. So you voted for the chicanery then, and
[[Page H6192]]
you are going to vote for it now. Congratulations.
Mr. BROWN of Ohio. I reclaim my time.
For 10 years, Democrats have tried to increase the minimum wage and
Republicans have blocked it. Yet during the 10 years with no minimum
wage increase, Congress, under Republican leadership, has increased its
own pay six times. The CEO of ExxonMobil is paid more than $17,000 an
hour while a minimum-wage worker who fills her tank with ExxonMobil gas
earns less than $11,000 a year. Yet this bill puts first millions of
dollars in tax cuts for the ExxonMobil CEO.
Tonight it is clear why we need a change. That change is only 3
months away.
Mr. THOMAS. Mr. Speaker, I want to thank the gentleman from Ohio for
his vote.
I want to yield 3 minutes to the gentleman from New Jersey (Mr.
LoBiondo).
Mr. LoBIONDO. Mr. Speaker, I rise tonight in support of this minimum-
wage package which I think is long overdue. I would like to take the
opportunity to thank Speaker Hastert and Majority Leader John Boehner.
A week ago, not many people would have believed that we could have a
vote on minimum wage this quickly. You have only to track the articles
about it: did not look possible, maybe sometime into the future. And I
want to thank Congressman Steve LaTourette and the 48 or 50 other
Republicans that stood along together with me in presenting our case to
the Speaker and majority leader for why we should do this. We had a
very spirited debate in our conference, and we probably will have a
record number of Republicans that will be voting for a minimum-wage
package tonight.
Some Republicans are not happy about this. If I had my choice, this
package would have looked a lot different. But we don't live in the
world of the perfect, and we should not sacrifice the good for the
perfect. The reality is, this is the minimum-wage vote. This vote
actually has a chance of being signed into law. The reality is that
probably a straight minimum-wage vote, that I would have preferred,
might have been a good political exercise, but it stood no chance of
passage in the Senate or a signature by the President. So if we really
want to give relief to working men and women who so deserve this
change, this 41 percent change, this is the opportunity.
The minority has said that the extenders are fine. So we have one
part of the package that you will find a problem with. I submit that
because Republicans are doing this, you would have found one part of
this package to have a problem with no matter what was in it.
I would urge all of the Republican Labor Caucus members and, in fact,
all of the Republican Conference, and the Democrats, to vote against
the motion to recommit that will doom the minimum wage. Passage and
vote for the bill sends a clear signal that we can find a combination,
that we can find a way to come together. The definition of ``perfect''
is probably different for all 435 of us. But that is not what is at
stake tonight. That is not what we are all about, finding the perfect.
We are about finding something good. This is a good bill. We should
vote for it.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2\1/2\ minutes
to the gentleman from Washington (Mr. Inslee).
(Mr. INSLEE asked and was given permission to revise and extend his
remarks.)
Mr. INSLEE. The only people in the State of Washington whose wages
will be affected by this bill, should it pass, will have their minimum
wage decreased. Every single worker who receives tips in the State of
Washington will have their minimum wage decreased $1.78 an hour as a
result of this ridiculous bill. Seven States are in the same position:
Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington.
In seven States in this country, the only people who will be affected
by this bill are those who will get their minimum wage slashed.
Where is the Republican desire to slash the minimum wage and call it
an increase in the minimum wage? That is what you have written into
this bill.
Now, we realize this bill isn't going to pass, and you think you are
going to get relief from the voters because you voted for this when it
isn't going to pass. Well, if it did pass, you would be cutting the
minimum wage in the State of Washington by $1.78 an hour. The people
who feed you, when you take your $30,000 pay increases we all have had
over the last several years, you take your $30,000 pay increases, and
you tell the people that serve your tostadas and your spaghetti that
you can cut their minimum wage by $1.78 an hour. If you doubt me, ask
Molly on your staff. She will tell you I am right. I don't know who the
brilliant guy was who thought that that is good policy in this country.
We Democrats think it is a very bad idea.
The situation is, you're not going to deliver a minimum wage of any
dimension because of the way you packaged this, because you don't want
to see a minimum-wage increase. That is why you packaged this with a
poison pill. And this is not going to work for you, because mailmen who
don't deliver the mail get punished. And you will be punished for this
this November.
I will just say one thing: when you cut the minimum wage for
restaurant tip workers in this country, I will say this, it is bad
enough when you don't do a minimum-wage bill; it is worse when you do.
The point I want to make is this bill is not going to pass because they
put a poison pill in it. But I want to make sure people understand in
the States of Washington, Montana, Nevada, California, those States,
that if it did pass, they would be cutting restaurant workers.
Do you want to challenge that, Mr. Hayworth? I will yield to you. If
you think that is wrong, you can walk up to your staff member and she
will tell you that you are cutting restaurant workers $1.78 in the
State of Washington. If you disagree with that, I will show you page
181 of your bill.
Mr. HAYWORTH. Mr. Speaker, will the gentleman yield?
Mr. INSLEE. I yield to the gentleman from Arizona.
Mr. HAYWORTH. Is the gentleman familiar with four letters, E-I-T-C,
earned income tax credit?
Mr. INSLEE. I am.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume. I
was kind of stunned when my colleague from Ohio indicated that he was
going to support this bill. I believe him when he wants to support it
for the minimum wage. And then it struck me: he is not going to be in a
gerrymandered district. He is running statewide. He is actually going
to have to respond. In an environment where if he doesn't pick the
position that people believe is the right one, he could lose. But if he
were in a district in which he could vote virtually any way he wanted
and wanted to slant the issues in ways that provided a political
benefit rather than a real benefit, I just wonder.
Gee, that means maybe if we had more competitive seats, we would have
more folks voting for policies that actually benefit people like
raising the minimum wage, because a ``yes'' vote tonight will raise the
minimum wage.
It is now my pleasure to yield 2 minutes to the gentleman from
Illinois, a member of the Ways and Means Committee, Mr. Weller.
Mr. WELLER. Mr. Speaker, I rise in support of what we have before us,
which is good legislation, a package of legislation that is good for
workers and a package of legislation that is good for small business.
This legislation deserves bipartisan support.
First, this bill raises the minimum wage. Today, the minimum wage is
$5.15 an hour. Under this legislation, we raise it to $7.25 an hour.
That is a 40 percent increase in the minimum wage. It is about time. I
support this minimum wage increase. It is the right thing to do.
This legislation does more, because it is a package. Of course, when
you look into the package, look at the details, you see some good
things that help our communities. One example is an important
environmental cleanup tax credit, the brownfields tax credit, which is
extended for 2 more years under this legislation. Not only is it
extended, it is expanded to be able to do more. There are almost 2,000
so-called brownfields in the region that I represent in the Chicago
area. Forty percent of them have petroleum contamination. You think of
that old abandoned gas station
[[Page H6193]]
on that one prominent corner in your home community that has been
sitting there for years and you always wonder, why doesn't somebody buy
that and do something with that strategic corner in our town. It is
because it has petroleum contamination. This tax incentive will help
encourage private investors to buy that old abandoned gas station and
other petroleum contaminated sites to recycle, revitalize and help
rebuild neighborhoods. It is good legislation.
{time} 0015
And if you care about low-income workers, particularly those who are
on welfare, and you want to encourage them to get a job, you should
vote for this legislation because we extend the work opportunity tax
credit. We extend the welfare to work tax credit. This past year almost
half a million American citizens had the opportunity to leave welfare
and go to work.
This legislation deserves bipartisan support.
Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself such
time as I may consume.
Mr. Speaker and Members of the House, it is rather interesting to see
my colleagues on the Republican side of the aisle ask us whether we
know that the minimum wage is $5.15 an hour. Apparently, they have just
discovered that fact. I would ask them did they know that the minimum
wage was $5.15 an hour 10 years ago and 9 years ago and 8 years ago and
7 years ago and 6 years ago and 5 years ago and 4 years ago? It was
$5.15 an hour and you never raised a finger. You never raised a finger
to help these individuals. We introduced a bill every year. I have
asked for hearings in my committee every year to raise the minimum wage
because these people have been stuck at $5.15 an hour. You control the
House, you control the Senate, you control the White House. You could
never find time for these people. You found time for the richest people
in the country, but you never found time for the people at $5.15 an
hour.
Now, as your political fortunes change, you get a letter from the
most vulnerable members of your caucus, and you discover that people
are working for $5.15 an hour. But even then you cannot play it
straight. No, the only way you can do this bill for the people whom you
now recognize need help, and they have needed it for many years, is to
put a poison pill into the minimum wage increase of the estate tax cut,
knowing that you will send it off to the Senate and it will be
embroiled in the 18 days that we have left in this session and there
will be no increase in the minimum wage.
You could vote for the motion to recommit. The extenders are not
controversial. And apparently the minimum wage is not controversial on
your side. Although when a clean minimum wage passed on the Health and
Human Services appropriations bill, it came to a grinding stop, and
your Speaker said we are not going to have a minimum wage increase, and
your majority leader says, I haven't voted for one of these and I have
not supported it for 25 years, with great pride. Did he know they were
working for $5.15 an hour all that time? If he had his way, they would
have been working for $3.15 an hour over the last 25 years.
So tonight what are we presented with? The appearance of a minimum
wage increase, but it is really about driving the estate tax. But it is
about driving the estate tax into a hostile environment in the Senate,
where you will argue and you will argue and you will argue and the
session will end, and those same people that are working for $5.15 an
hour today will be working for $5.15 an hour next year and next month.
As much compassion as you felt for them, you decided they ought to wait
longer to get $7.25 in the bill you presented. As much compassion as
you felt for them, you decided if they work for tips, you would take
away their wages in the States that Mr. Inslee pointed out, in
Washington and California and elsewhere. They would lose their wages
under this bill.
So I think this newfound compassion is somewhat shallow, somewhat
less than sincere for these people because you could not find time for
them over the last 5 years. You could not find time to deal with their
problems of working all year long and ending up with $10,700 and being
in poverty. You could not find time for them when the price of gasoline
went up and the price of rent went up and the price of education went
up and the price of milk went up. You could not find time then. But all
of a sudden, you can find time now, but only, only if you can stick it
in with relief for the richest people in America, relief that you know
will not happen in this legislation. And once again, these people will
be denied. They will be denied at the hands of the Republican
leadership that has been hostile to the minimum wage from the moment
they came to this House of Representatives. They had never had any
intention of supporting it, they had never voted for it, and it will
not happen again.
Mr. Speaker, I yield back the balance of my time.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 3 minutes to a
valued member of the committee, the chairman of the House subcommittee,
the gentlewoman from Connecticut (Mrs. Johnson).
Mrs. JOHNSON of Connecticut. Mr. Speaker, I rise in strong support of
this legislation. I am proud, yes, for raising the minimum wage by 40
percent.
It is simple. Working families deserve a pay raise, and tonight we
pass a 40 percent increase in the minimum wage. But this bill helps
workers in many other ways.
A permanent estate tax protects American jobs. In my district, an old
manufacturing part of the Nation, most of our manufacturers, high
quality, high skilled, are small and family owned. But to compete as a
supplier in a global economy, they have to be good, and that takes
expensive equipment. Dad dies, you have to sell off. You have to sell
that family-owned business because you cannot afford the taxes. A
permanent estate tax will let that family business survive and those
jobs survive because you know what happens? Those small manufacturers
get bought and the jobs leave town. They go to a bigger plant. They get
merged in. So if you want to protect jobs in your town, we need a
permanent estate tax because that way small family-owned manufacturers
can survive.
But we need this bill because it protects global jobs as well. If we
do not extend the research and development tax credit in a world in
which some countries write it off completely, we will not be at the
cutting edge of product development. We will not be the leaders in
communications technology, in clean-up technology, and in medical
technology. We protect jobs and that helps the American workers. That
is what this bill is all about.
We also protect the opportunity for American workers to get the
education they need to compete. That $4,000 tax deduction for education
expenses, that is building the future. And it is not just people who
can go to college. It is the work opportunities tax credit. It is the
welfare-to-work tax credit.
This is about working America. This is a tax bill about working
America, about opportunity, about equity, about fairness, and about
protecting our jobs. And, yes, it raises the minimum wage.
I am proud to vote for it. I urge Members on both sides of the aisle
to vote for it because this is good policy by a strong Congress, and we
need to get through the Senate and to the President's desk.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
You can tell that if it is going to happen after midnight, that the
majority just ain't up to something good because everything bad they
do, they wait until late at night and then they come.
So you take a look at this bill, and they call it the minimum wage
bill. Well, that is good; so why would they wait until after midnight?
Or you might take another look at the bill and you see that they are
trying to help the poor miners. Well, that doesn't sound like
Republicans to me. If they ever got enough religion to help poor
miners, they would certainly want to do that in the sunlight. But, no,
they wait until after midnight.
Then, of course, there are the extenders that really help schools and
research and development. It sounds pretty decent. It does not sound
that Republican to me.
There has to be a skunk at this picnic somewhere. And then you take a
look and you find out that with all of
[[Page H6194]]
the wonderful, spiritual good that they want to do for so many people,
the working poor, we find out that there are 7,500 families in this
great country that are worth billions of dollars, that they cannot
leave this Congress without saying, ``We helped you. You are the people
we really love.'' And if you take a look to see, have they sent us
letters, these rich people, most of them, saying, ``Hey, try to cut
back on the war, try to help us with some health and education
project?'' They are not asking for this money. And yet over $800
billion, we are prepared to take away from the Treasury at a time that
our country needs it the most but it just cannot stand on its own two
feet. So, therefore, we have to find a sweetness for it, and we have
enough nerve to believe that someone is going to believe that you have
a concern for the minimum wage.
After 9 or 10 years, you wake up at the end of the day, and you bring
in the estate tax relief bill that is the real money, and because that
sucker is so heavy it cannot get off the ground, you try to spray some
perfume on this skunk, and you call it minimum wage, extenders, and
help for the miners.
If you had any compassion at all, don't these people deserve to be
treated separately? Do they have to be with 7,500 people who are close
friends of yours? Should not the working people have a bill of their
own just to increase the minimum wage? Should not the miners, their
pensions and their health benefits, should they not have a bill of
their own during the daytime hours? And certainly the incentives are so
popular, why do you have to hold them hostage for where your hearts
really belong?
So I knew that you were going to wait until midnight, but no one knew
exactly what you were up to. But, hey, it is after midnight, you are on
the floor, and you say if you want all of this good medicine, then
swallow our pill with it, but if you say no, you say no to what is
good. It does not make any sense. But I think the newspapers,
television, everyone knows what is going on. You have gotten away with
this for a long, long time. But there comes a time when people wake up
to what is happening, and even though you have done it in the middle of
the night, the sun will rise and people would understand.
Mr. Speaker, I reserve the balance of my time.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
I keep telling my friend from New York that there is a really big
country west of the Hudson. It is 9 p.m. in California. The sun is
shining in the United States. I understand east of the Hudson, but
there is a big country west of the Hudson.
I told you this was going to be a strange debate.
The gentleman from California is right. He counted backward: ten,
nine, eight, seven, six. We have not increased the minimum wage. It is
about time we increased the minimum wage.
Are you offended that we finally got it? Is that what you are
offended about? Or is it the fact that when you were the majority for
40 years, Medicare never saw one preventative service, they never saw
one wellness program, and there was no drug program? We became the
majority and all of that occurred.
I am now beginning to figure this out. These people are going to have
to tear up these old, yellowed speeches they have been giving for
decades because the Republicans get it.
There is one other thing we get. It is a concept you are beginning to
hear about. It is called ``multi-tasking.'' You do not really have to
come with one subject. You can actually do several things at the same
time. And there is a degree of synergy involved in those things. You
heard the gentlewoman from Connecticut, that there are interactive
aspects in this.
So I am really somewhat confused. Is it that you want to keep on
giving speeches that Republicans do not understand that we should raise
the minimum wage, that you do not want to rewrite the speech? Or is it
because on every one of those hackneyed, worn political positions, you
do not have a position anymore?
We are for raising the minimum wage. We agree with you. It is time to
raise it. Your arguments are now: But it is not packaged correctly.
It is after midnight. I would love to be doing this at 7 p.m. You
know the difficulties in moving. We just passed a massive pension bill.
We got it done. It is 9 o'clock. You are going to complain that you are
going to vote against this because we are doing it after midnight? Is
it so offensive to you that you have to stay up a couple of hours and
have presented to you a package which is very difficult for you to get
your hackneyed, yellowed political speeches around?
Yes, we are Republicans. Are we for increasing the minimum wage? Yes.
Do we want to get the extenders done before we go out because it is 7
months too late? Yes. Do we want to help people who want to hang on to
a little bit of what they have built over their lifetimes? Yes. And you
are going to vote ``no'' because it is put together in a way that
offends you?
{time} 0030
I wonder what that person hoping for an increase in the minimum wage
thinks when they are told, I wanted to help you, but I was offended in
the way in which the opportunity to help you was presented to me.
Who is kidding who?
Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the gentleman from
Maryland (Mr. Cardin), an outstanding member of the Ways and Means
Committee.
Mr. CARDIN. Mr. Speaker, let me thank my friend for yielding.
Let me speak for an interest group that has not been heard tonight,
and that is our children and grandchildren, because they are going to
be asked to pick up the tab of this legislation.
Yes, Mr. Speaker, I am for raising the minimum wage. It is a fair
thing to do, and it is in the economic interests of this country. But
the price to vote ``yes'' is just too high, $267 billion of additional
debt on the estate tax changes.
And where are we going to get the money to pay for that? I hear from
my friends that we have to be fiscally conservative, and I agree with
that on every dollar of new spending. But tonight it is okay for $267
billion of additional debt. And where is that money going to come from?
We borrow it. We borrow it from foreign governments that own banks. And
it jeopardizes trade exchange with the United States. It costs us jobs.
It is in our national interest to balance our budget, we all
understand that; and tonight, by passing this bill, we are moving in
the wrong direction.
Mr. THOMAS. Mr. Speaker, I reserve my time.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the gentleman from North
Dakota (Mr. Pomeroy), an outstanding member of our committee.
Mr. POMEROY. Mr. Speaker, we know what extortion is. You know those
old movies? ``Give me all the money or the kid gets it.'' Well, this is
legislative extortion. You want a minimum-wage increase? Give the
multimillionaire families a tax break. No tax break for
multimillionaires, no minimum-wage increase.
So who gets this tax break? Well, as you can see, the bulk of it goes
to estates worth more than $20 million. How much do these estates get?
As you see, they get $5.8 million on average.
So that is the deal they offer us: Oh, we will give you an increase
in that $5.15 per hour minimum wage, just as long as you give $5.8
million to those $20 million estates.
What do they think, we are crazy? That is no deal. That is
legislative extortion, and it needs to be rejected with a ``no'' vote
tonight.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2 minutes to the
gentleman from Arizona (Mr. Hayworth), a member of the Ways and Means
Committee.
(Mr. HAYWORTH asked and was given permission to revise and extend his
remarks.)
Mr. HAYWORTH. Mr. Speaker, it is interesting to hear the level of
Orwellian ``newspeak'' emanating from our friends on the left. We are
now told that a reasonable, rational compromise that includes many
commonsense ideas is somehow legislative extortion. We hear that a
compromise that provides an increase in the minimum wage is paired with
other policy initiatives that somehow make it a poison pill.
[[Page H6195]]
Isn't it interesting the lexicon offered by the left? If it is a
compromise forged by conservatives that somehow actually, ironically
delivers on an issue for which my friends on the left believe they have
ownership, why, that is a poison pill.
Oh, and conveniently omitted when we hear the bold relief, including
the impugning of our motives for moving forward on this, conveniently
omitted, are the policy initiatives championed in bipartisan fashion:
the work opportunity tax credit, the earned income tax credit, those
extenders that are part of this that actually help those working to get
ahead.
It is a very interesting occurrence we see here tonight. ``Curiouser
and curiouser,'' said Alice. It is not Wonderland, and this legislation
may not be perfect, but it is not the glum, dour air of apocalyptic
fate that the left would portray it as. It is a positive move, raising
the minimum wage, extending tax relief, and revising tax policy.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the distinguished
gentleman from Rhode Island (Mr. Langevin).
(Mr. LANGEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LANGEVIN. Mr. Speaker, the American people deserve an up-or-down
vote on the minimum wage and not have it tied to a poison pill that is
designed to kill that increase. That is not what we are getting
tonight.
Mr. Speaker, I am outraged that men and women across this country go
to work, working 40 hours a week, often more, and can't even make ends
meet.
The minimum wage hasn't been increased since 1997. Workers in Rhode
Island, for example, have to earn approximately three times the minimum
wage just to afford a basic two-bedroom apartment.
A majority in this House supports an increase in the minimum wage,
but the Republican leadership only wants to help a privileged few. To
put this in perspective, thousands of families in Rhode Island and
millions of families across America would benefit from a minimum wage
increase, while the Republican tax plan would help a handful of the
wealthiest. This costly political stunt will add billions of dollars
per year to our national debt and demonstrates the Republicans'
misguided priorities.
It is time for a new direction. I urge my colleagues to join me in
opposing this sham bill and supporting a stand-alone vote to increase
the minimum wage to $7.25 an hour. It is the right thing to do for the
American people.
Mr. THOMAS. Mr. Speaker, I reserve my time.
Mr. RANGEL. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from
Georgia (Mr. Scott).
Mr. SCOTT of Georgia. I thank the ranking member very much.
This is indeed a ploy of the highest nature. There is nobody in this
House that is more concerned about raising the minimum wage than
Democrats. Seven times we have tried to raise the minimum wage.
If this is such an important effort to raise the minimum wage, we
ought to ask the question, why is every group that represents working
people calling and asking to vote down this sham?
You know, Mr. Speaker, William Shakespeare wrote an excellent play.
He called it ``Julius Caesar.'' In that play, just when Brutus and
Cassius and all were digging in the swords, Julius Caesar grabbed
Brutus and said, ``Et tu, Brutus. Yours is the meanest cut of all.''
Mr. Speaker, I am telling you what the meanest cut of all in this
bill is. They say we don't read the bills. But the American people need
to know what this bill says. It says the Tax Relief Act of 2006
excludes all of the tipped employees' tips from being considered as
wages in determining if such tipped employees have been paid the
applicable minimum wage rate.
This is the meanest cut of all in this bill. If it is right to give
the minimum wage for one person, isn't it right to give it for
everybody? There is nobody that deserves the minimum wage more than
those people who are at the bottom of the ladder; and none are at the
bottom of the ladder more than those people who have to make it on
tips. This bill will not only not raise the minimum wage of those who
make it on tips, 2.5 million Americans, their minimum wage will go down
under this bill. Indeed, the meanest cut of all.
We must vote down this bill and put forward a genuine bill that will
truly raise the minimum wage for everybody.
Mr. THOMAS. Mr. Speaker, it is my pleasure to yield 2 minutes to the
gentleman from Louisiana (Mr. McCrery), the chairman of the Social
Security Subcommittee.
Mr. McCRERY. Mr. Speaker, I thank the chairman of the Ways and Means
Committee for yielding.
I just want to say to the point that some are making about States
that have no tip credit law and have a higher minimum wage, if in fact
a State wishes to continue to have a higher minimum wage, all they have
to do in response to passage of this bill is to pass any kind of tip
credit. It can be a minimal tip credit, and then they can fully restore
the minimum wage that that State wishes its employees to have. So it is
not that complicated. It is not that difficult as some Members have
suggested.
Mr. INSLEE. Mr. Speaker, will the gentleman yield?
Mr. McCRERY. I yield to the gentleman from Washington.
Mr. INSLEE. Mr. Speaker, what we want to point out and we want to
make sure, because I think I have confirmed this with the Republican
staff, the way this works, if this bill passes, in the State of
Washington the minimum wage goes down the next day $1.78 an hour.
The gentleman is correct. If the State legislature got together and
essentially overrode the Republicans in Congress, they might be able to
get it back up where it was. But you know what? You Republicans in the
State legislature, I say ``you,'' Republican-controlled legislators, I
will give you a clue: it is not going to happen. That is why we object
to cutting the minimum wage in any State by any Congress of any party.
Unfortunately, that is what you are doing. You can confirm it with
counsel. That is why we think it is an abomination.
Mr. McCRERY. Mr. Speaker, reclaiming my time, it is a legitimate
issue the gentleman brought up, but I would hope he would agree that
freely elected representatives in his State, or any other State,
whether Republican or Democrat, should in fact be able to express the
will of the people who elect them, whether they are Republicans or
Democrats; and if in his State they want to, whoever they are,
Republicans or Democrats, want to go back to the minimum wage they had
prior to the passage of this bill, they may. This bill in no way
prohibits that.
So the gentleman's complaint about this bill could easily be taken
care of, the same way his State originally enhanced the minimum wage in
Washington. That is the only point I wanted to make.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the gentleman from
Michigan (Mr. Levin), an outstanding member of the Ways and Means
Committee.
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. Mr. Speaker, I spoke earlier and I wasn't going to speak
again so others could, but listening to the Republicans here, I felt
compelled to come over.
In all my years here, this is the height of hypocrisy. You have sat
here year after year failing to raise the minimum wage, refusing to
come here and sign a discharge petition, doing nothing. And now,
because you are worried you are going to lose an election, you are
here. And you tie it to a proposal that will give the very, very
wealthy many more times than would be benefiting the workers with a
rise in the minimum wage.
If you really cared, you would have acted long ago. This isn't on
your part even an election-year conversion. It is an election-year
trick. It won't work.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, it sounds to me like somebody is saying on this issue, I
have a hostage, and if you try to force me to vote for minimum wage, I
am going to kill the hostage.
There is a minimum-wage increase in this legislation. The argument
that somehow, and I will say it again, somehow the fact that we didn't
act earlier is a sufficient rationale for you to not vote for it now,
to say that we have
[[Page H6196]]
other items in this bill and we are hiding the minimum wage with other
attractive packages to Republicans, I will repeat to you, is a way we
might actually be able to get it through the other body, since the
other body would not allow a clean minimum wage to pass through it. And
they have exhibited that a number of times.
I know it is difficult for you, and I know it is going to take a
period of time in terms of understanding that when we say this is a
bill that contains extenders, that this is a bill that contains a
reasonable and appropriate adjustment on estate taxes. The reason I say
that is this is almost identical to the bill that got 43 Democrat votes
just a few weeks ago.
And when I say there is an increase in the minimum wage in this bill,
I have heard all kinds of tortured arguments about package and process,
but I can't understand for the life of me, if we are such hypocrites,
and this is a sham, why you don't take us up on it and show how wrong
we are by voting for a minimum-wage provision and then see what we do
with it.
{time} 0045
What we are going to do with this is try to make law. This will pass
this House. Join me. Let's go over to the Senate and do everything we
can together to get the Senate to pass it.
Or is it that if it actually happened and the President signed it,
and we had an increase in the minimum wage, you would have to draw one
more line through those easy arguments that are now outdated about the
difference between Republicans and Democrats, because it is hard enough
to believe that Democrats no longer have a monopoly on improving
Medicare with quality measures and putting prescription drugs in.
But don't Republicans have any shame? Coming to the floor trying to
raise the minimum wage, what are we going to do? Well, the first thing
you have to say is, okay, guys, we can't vote ``yes''. Why? Test us.
Let's make law. It has been 10 years. Let's raise the minimum wage. I
understand that we are also going to save the extenders.
I understand we are going to put in a reasonable estate tax change.
But what I am asking you to do, rather than to wring your hands and
figure out how you are going to explain you didn't want to vote for the
increase in the minimum wage because of the way it was packaged is to
test us. I want a test. Let's pass this. Let's go over to the Senate.
Let's try to make law.
Mr. KENNEDY of Rhode Island. Mr. Speaker, will the gentleman yield?
Mr. THOMAS. I yield to the gentleman from Rhode Island.
Mr. KENNEDY of Rhode Island. Mr. Speaker, the gentleman has mentioned
prescription drugs a number of times. I think it is analogous to this
debate, because that was a debate that took place late at night, and
you used the elderly and their need of prescription drugs to pass a
trillion-dollar bill that benefited the pharmaceutical companies and
the insurance companies in this country.
The people of the United States know that, and they are going to see
it again tonight. You are using people in order to pass your agenda for
the very wealthy in this country and it is wrong.
Mr. THOMAS. Mr. Speaker, reclaiming my time, millions of Americans
are thankful they now have prescription drugs at significant savings. I
know it is difficult because another line went through one of your
typical political arguments. Test us. See if we are just kidding. See
if this is a sham.
What I am inviting you to do is make law. I know it is a brave new
world. But let's try it. Let's see if we can make law together. Your
arguments have been so turned that you are explaining you are against
raising the minimum wage because of the way it is being presented to
you. It deserves to be clean. Okay. It's not.
I am offended that I would have to vote this way. By the way, you are
still at $5.15. Test us. Let's make law.
Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am glad that the chairman has taken his mask off and
brought his sense of honesty to this debate. Yes. Test you. What you
are basically saying is that if you want to give some help to these
people that have such low wages, we then have to buy, in the same bill,
the $800 billion relief that you are giving to 7,500 people. I
understand what you are doing.
Why don't you call it the Estate Tax Relief Bill, which is sweetening
up, you know, by just giving some of them minimum wage. And you say, if
you don't like the rich people, if you don't want to get close to $1
trillion away, then of course vote against the minimum wage.
It is so unfair to call this a package. It is a package for the rich,
that just as an afterthought, you throw in minimum wage. But,
fortunately, the chairman has said what he is doing. Either you buy it
as I put it or forget about it. I think that is so unfair to the
working poor people in this country.
Mr. Chairman, I yield 1 minute to the gentleman from New Jersey (Mr.
Rothman).
Mr. ROTHMAN. Mr. Speaker, tomorrow's headlines are going to read
``hostage taken''. And you know what they are going to mean? The
increase in the minimum wage was taken hostage by the Republican
majority. They have taken the increase in the minimum wage hostage
unless we give the super-rich $100 billion.
To give the working poor a $2.10 increase an hour, they have held us
hostage unless we give them $800 billion. Now, they have had 9 years in
the majority in the House to have a clean increase in the minimum wage.
They never did it. They would not let us do it, because they were in
the majority.
They still will not do it. Only if we give the super-rich $800
billion. And American people are not stupid. They do not want a bad
deal. They do not want a bad law. They do not want to give into hostage
demands. They do not want to give in to extortion. They want an
increase in the minimum wage, not another $800 billion gift to the
super-rich because the Republican majority does not want to give it in
any other way.
Mr. THOMAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I really would like to travel with some of you folks to
restaurants and hotels and watch you go back and find someone who is
getting the minimum wage and make that pitch to them. Because what they
are going to say is, gee, you are right, I am glad you voted against
increasing the minimum wage so I could get a few more bucks.
I understand doing it here on the floor. I understand doing it in
those expensive fund-raisers that you hold. I have a really difficult
time seeing someone who says, would you just give me an increase in the
minimum wage buying that argument.
Mr. Speaker, I reserve the balance of my time.
Mr. RANGEL. Mr. Speaker, I yield 15 seconds to the gentleman from New
Jersey (Mr. Rothman) to respond to the distinguished gentleman.
Mr. ROTHMAN. Mr. Speaker, the distinguished chairman dares me to go
back and tell my people. I am going to say, the Republicans will not
give you the minimum wage increase unless we give $800 billion to the
super-rich.
They will say, don't do it, Steve. We will throw the Republicans out
in November and get an increase in the minimum wage without them.
Mr. RANGEL. Mr. Speaker, I yield 1 minute to the gentlewoman from
Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise
and extend her remarks.)
Ms. JACKSON-LEE of Texas. Mr. Speaker, I would love to make law with
the distinguished chairman, Mr. Rangel, but it sure is tough. We have
been 50 years in the desert, 50 years on an increase relevant to
minimum wage. It is the lowest in 50 years.
Rather than take the 250 Members of this body who are willing to have
an up and down vote, and my good friend who is the chairman, and I do
believe he is a good friend, knows that the Senate is not, the other
body is not going to take this bill the way it is. This is a joke.
Ten million people are going to be denied the minimum wage with this
bill. This is a joke. No one is going to take this on the other side.
So we do this in the midnight hour. We have a headline. We go home to
campaign. You will. We will go home and tell the truth.
Give us an up and down vote on a $7.25 minimum wage up or down vote.
[[Page H6197]]
The joke is on you. This is an untruth and it makes no sense to put
people who have been in the desert without getting any money for this
joke, because you know your Senate Republicans are not taking this
joke.
Mr. Speaker, it is time to vote up or down. Give us the 250 Members
who will vote on a minimum wage. Vote for it now and throw this bill
out the window.
Ms. JACKSON-LEE. Mr. Speaker, I rise in opposition to H.R. 5970, the
Permanent Estate Tax, Minimum Wage, and Extenders Bill. But I would be
remiss if I did not point out that it is clear that Republicans are
playing politics with a pay raise for millions of American workers. We
have had enough politics. It is time for a new direction.
Mr. Speaker, the Republican leadership is ignoring the American
people, holding a pay raise for American workers hostage for partisan
purposes. H.R. 5970 contains ``poison pills'' that will prevent the
minimum wage increase from becoming law, most importantly a costly tax
cut for multi-millionaires.
Mr. Speaker, H.R. 5970 is just a cynical, political ploy to defeat a
minimum wage increase. It is a cruel hoax on the 6.6 million people who
would get a raise with a minimum wage increase and would give a huge
tax break to only 7,500 of the richest households in America.
The cynicism behind this ridiculous bill is as obvious as the
Republicans devotion to giving away tax breaks to the wealthy and a
hard time to the middle and working class. The aim of the H.R. 5970 is
to make it look like Republicans support a minimum wage increase, while
ensuring its demise in the Senate by attaching ``poison pills.''
Republicans' poison pill will cost nearly $753 billion when fully in
effect, and impact less than 1 percent of all Americans, and
Republicans are using that to derail an increase in the minimum wage
for 6.6 million Americans.
Mr. Speaker, the only way to ensure that a minimum wage increase
becomes law is to allow a straight up-or-down vote on H.R. 2429, the
Fair Minimum Wage Act, which provides an increase to $7.25 an hour.
Mr. Speaker, Democrats have a New Direction for America, which
raises the minimum wage and brings economic opportunity and security to
all Americans, not just the privileged few.
oppose estate tax repeal
Mr. Speaker, I have voted for estate tax relief before but I oppose
this bill because it is irresponsible to cut taxes for the wealthy when
the Nation is at war and the national debt is over $8 trillion. Indeed,
Mr. Speaker, I think it is unconscionable to be considering voting
another tax cut to the wealthiest 0.3 percent of Americans.
The Joint Committee on Taxation estimates that this estate tax
proposal will cost the Federal Government $602 billion, plus an extra
$160 billion when interest is accounted for. Only 0.5 percent of the
richest families in America currently pay estate taxes. Moreover, under
current law in 2009, only 3 out of every 1,000 estates will pay a penny
in estate taxes--all couples with estates up to $7 million--99.7
percent--will pass on their entire estates tax-free. Any compromise
proposal which deviates from 2009 current law--such as the bill before
us--is therefore crafted entirely to benefit this tiny sliver of the
richest estates. Particularly since I have voted for a fair estate tax
initiative but this bill is not it.
According to recent polling data, nearly 60 percent of voters hold
the initial, unaided view that estate tax should be left as is or
reformed, and only 23 percent support repeal. When asked about the
estate tax in the context of other budget priorities, voters rank
repealing the estate tax as the last priority, and 55 percent of voters
oppose repeal.
This so-called compromise, nearly as regressive and costly as a full
repeal, is no compromise at all. Passing even this compromise
legislation would constitute one of the most regressive tax cuts in the
history of the United States. Middle- and lower-class Americans will be
forced to shoulder the burden of radically decreasing the estate tax--
both monetarily and through decreased public programs. In order to
cover the monetary gap, the government will plunge further into debt,
which will limit its ability to address the Social Security solvency
gap and reduce the money available for public programs. It will also
have to tap other tax sources, like payroll taxes, which will
overwhelmingly hinder lower-income families.
I urge my colleagues to uphold the core American values of fairness
and belief in meritocracy by rejecting this tax cut.
increase minimum wage
If we really wish to help the most deserving American families, we
should raise the minimum wage from $5.15 to $7.25 over 3 years. Mr.
Speaker, did you know that today's minimum wage of $5.15 today is the
equivalent of only $4.23 in 1995, which is even lower than the $4.25
minimum wage level before the 1996-97 increase? It is scandalous, Mr.
Speaker, that a person can work full-time, 40 hours per week, for 52
weeks, earning the minimum wage would gross just $10,700, which is well
below the poverty line.
A minimum wage increase would raise the wages of millions of workers.
An estimated 7.3 million workers--5.8 percent of the workforce--would
receive an increase in their hourly wage rate if the minimum wage were
raised from $5.15 to $7.25 by June 2007. Due to ``spillover effects,''
the 8.2 million workers--6.5 percent of the workforce--earning up to a
dollar above the minimum would also be likely to benefit from an
increase.
Raising the minimum wage will benefit working families. The earnings
of minimum wage workers are crucial to their families' well-being.
Evidence from the 1996-97 minimum wage increase shows that the average
minimum wage worker brings home more than half--54 percent--of his or
her family's weekly earnings. An estimated 760,000 single mothers with
children under 18 would benefit from a minimum wage increase to $7.25
by June 2007. Single mothers would benefit disproportionately from an
increase--single mothers are 10.4 percent of workers affected by an
increase, but they make up only 5.3 percent of the overall workforce.
Approximately 1.8 million parents with children under 18 would benefit.
Contrary to popular myths and urban legends, adults make up the
largest share of workers who would benefit from a minimum wage
increase. Seventy-two percent of workers whose wages would be raised by
a minimum wage increase to $7.25 by June 2007 are adults--age 20 or
older. Close to half--43.9 percent--of workers who would benefit from a
minimum wage increase work full time and another third--34.5 percent--
work between 20 and 34 hours per week.
Minimum wage increases benefit disadvantaged workers, and women are
the largest group of beneficiaries from a minimum wage increase. 60.6
percent of workers who would benefit from an increase to $7.25 by 2007
are women. An estimated 7.3 percent of working women would benefit
directly from that increase in the minimum wage.
A disproportionate share of minorities would benefit from a minimum
wage increase. African-Americans represent 11.1 percent of the total
workforce, but are 15.3 percent of workers affected by an increase.
Similarly, 13.4 percent of the total workforce is Hispanic, but
Hispanics are 19.7 percent of workers affected by an increase.
The benefits of the increase disproportionately help those working
households at the bottom of the income scale. Although households in
the bottom 20 percent received only 5.1 percent of national income,
38.1 percent of the benefits of a minimum wage increase to $7.25 would
go to these workers. The majority of the benefits--58.5 percent--of an
increase would go to families with working, prime-aged adults in the
bottom 40 percent of the income distribution.
Among families with children and a low-wage worker affected by a
minimum wage increase to $7.25, the affected worker contributes, on
average, half of the family's earnings. Thirty-six percent of such
workers actually contribute 100 percent of their family's earnings.
A minimum wage increase would help reverse the trend of declining
real wages for low-wage workers. Between 1979 and 1989, the minimum
wage lost 31 percent of its real value. By contrast, between 1989 and
1997--the year of the most recent increase--the minimum wage was raised
four times and recovered about one-third of the value it lost in the
1980s.
Income inequality has been increasing, in part, because of the
declining real value of the minimum wage. Today, the minimum wage is 33
percent of the average hourly wage of American workers, the lowest
level since 1949. A minimum wage increase is part of a broad strategy
to end poverty. As welfare reform forces more poor families to rely on
their earnings from low-paying jobs, a minimum wage increase is likely
to have a greater impact on reducing poverty.
Mr. Speaker, the opponents of the minimum wage often claim that
increasing the wage will cost jobs and harm the economy. Of course, Mr.
Speaker, there is no credible evidence to support such claims. In fact,
a 1998 EPI study failed to find any systematic, significant job loss
associated with the 1996-97 minimum wage increase. The truth is that
following the most recent increase in the minimum wage in 1996-97, the
low-wage labor market performed better than it had in decades. And
after the minimum wage was increased, the country went on to enjoy the
most sustained period of economic prosperity in history. We had
historic low levels of unemployment rates, increased average hourly
wages, increased family income, and decreased poverty rates. Studies
have shown that the best performing small businesses are located in
States with the highest minimum wages. Between 1998 and 2004, the job
growth for small businesses
[[Page H6198]]
in States with a minimum wage higher than the Federal level was 6.2
percent compared to a 4.1 percent growth in States where the Federal
level prevailed.
So much for the discredited notion that raising the minimum wage
harms the economy. It does not. But it increases the purchasing power
of those who most need the money, which is far more than can be said of
the Republicans' devotion to cutting taxes for multimillionaires.
conclusion
Mr. Speaker, Americans overwhelmingly side with progressive
principles of rewarding hard work with a liveable wage. In a recent
poll conducted by the Pew Research Center, 86 percent of Americans
favored raising the minimum wage. In the 2004 election, voters in
Florida and Nevada, two States won by President Bush, overwhelmingly
approved ballot measures to raise the minimum wage. Even in Nevada's
richest county, Douglas, where Bush received 63.5 percent of the vote,
61.5 percent of voters supported raising the minimum wage.
Forty-three percent of Americans consider raising the minimum wage to
be a top priority. In contrast, only 34 percent considered making the
recent Federal income tax cuts permanent and only 27 percent consider
the passage of a constitutional amendment to ban same-sex marriage as
top priorities.
Members of Congress have legislated a minimum salary for themselves
and have seen fit to raise it eight times since they last raised the
minimum wage. It is time we gave the Americans we represent a long
overdue pay raise by increasing the minimum wage to $7.25 over 3 years.
Even this amount does not keep pace with the cost of living. The
minimum wage would have to be increased to $9.05 to equal the
purchasing power it had in 1968. And if the minimum wage had increased
at the same rate as the salary increase corporate CEOs have received,
it would now be $23.03/hour.
Thank you, Mr. Speaker. It is time for a new direction. I urge my
colleagues to reject H.R. 5970.
Finally, I have supported and do support the sales tax relief for
Texas; however, the Republican majority knows that their bill is going
nowhere and will not be heard by the Senate. We need an up or down vote
on the minimum wage and an independent vote on sales tax relief on
Federal income taxes for Texas--I would vote ``yea'' on both those two
bills--which would not be a budget buster and deficit builder. The
Republicans are simply playing games.
Mr. RANGEL. Mr. Speaker, I yield myself the balance of our time.
Mr. Speaker, I want to thank the Republicans for their honesty in
expressing their concern at this late hour for the minimum wage bill.
At least we know on the record, they know what the situation is, they
know how long it has been since these people have not been able to
increase the minimum wage.
It would just seem to me, though, that honesty would dictate that
this subject alone, the millions of people that are affected, would
warrant that we not put it in any other kind of package, but we deal
with it by itself because it deserves to be dealt with by itself.
Mr. Speaker, I do not think that you have to really be a politician
to understand that when any bill is going to cost $800 billion, and it
only has 7,500 people as a beneficiary, I think you can call that
controversial. I think you can say that all of the editorials believe
it is unfair. People are talking about a Nation at war, a Nation that
has a deficit, a Nation that has Katrina, a Nation that does not fund
its health system.
They are concerned about the deficit, they are concerned about the
war, and they should be concerned about close to a trillion dollars
loss in revenue for people that have these large estates.
Now, for those who believe that they should get relief. Good. But why
mix the two? Why take the poor folks and hold them hostage because you
cannot get enough political support to get what you really want out of
this, not help, I mean you are just not known to be concerned about
coal miners. It is not my fault.
You are not known to have compassion about working people. It is not
my fault. You are known to be concerned about the wealthiest people in
our Nation. That is not your fault, you just cannot help yourself.
But why would you bring these things together and just give us one
vote? Why do you not give America an opportunity to determine which
side you are on? Are you with the minimum wage enough so that you give
them a vote to say this is what you believe in, or are you so scared to
death politically that you cannot get this 800-trillion-dollar gorilla
off the ground that you have to throw in something that sounds
compassionate?
I do not know, but I know one thing, it all does not come out of the
same committee. So you are not only mixing ideas in terms of tax
incentives and giving away money, but what you are doing is taking
committees with different jurisdictions, and bringing it together in
the middle of the night, and asking people to vote on these things.
Mr. Speaker, I do not think it is fair. But I do believe that the
American people will be able to determine the difference between our
parties. That is what makes our country great. I want to thank you for
being able to admit that you just cannot get your package off the
ground unless you throw in poor folks' help with it.
Mr. THOMAS. Mr. Speaker, I yield myself the balance of the time.
Mr. Speaker, perhaps you did not hear the gentleman from New York's
closing statement, that we are just going to have to throw the poor
folks out with it. Let me get this straight. We want to vote ``aye''.
That would produce a higher minimum wage. We want to vote ``aye''. That
will provide those low-income people, especially in States like Texas,
with a State and local sales tax deduction.
We want to vote ``aye'', so the work opportunity tax credit can
continue. We want to vote ``aye'' so the welfare-to-work program will
continue. But you are for those low-income folk. So you want to vote
``no'', which would deny the minimum wage, which would deny the State
and local sales tax, which would deny the work opportunity tax credit,
which would deny the welfare-to-work, and you are going to convince
these folk that what you are doing is protecting them.
Well, let me tell you, if I had a gerrymandered district like some of
you folks do, I guess I could get away with it. I do not. When you look
at this vote tonight, no matter how much you squirm, no matter how much
you squeal, no matter how much you protest, it is very simple.
An ``aye'' vote increases the minimum wage. An ``aye'' vote allows
State and local sales tax to be deducted. An ``aye'' vote allows the
work opportunity tax credit to continue. An ``aye'' vote allows the
welfare-to-work program to continue.
No matter how much you are offended, if you vote ``no'', none of
those will happen. Mr. Speaker, I have said it already, I will say it
again to The gentleman from New York, this is an opportunity. This is a
positive gesture on my part. Join me in making sure that those low-
income people you are so compassionate about but cannot support will
come with me and I will support them so that your compassion and my
support, in terms of a ``yes'' vote, will actually deliver them
something other than rhetoric.
{time} 0100
So I would love to have you vote ``yes'' so we are both supporting
them. But you go ahead, bring your compassion, I will bring the ``yes''
vote along with the majority of people here bringing a ``yes'' vote,
and we will pass it.
Mr. PENCE. Mr. Speaker, I come to this floor wishing for a different
choice than the one before me. The bill under debate provides permanent
estate and gift tax relief--something I have long supported. That is
why the choice before us tonight is so difficult. While this bill will
provide relief to American farmers and small business owners, it also
will do much harm to those very same people and the people they employ
because of the irresponsible 41% increase in the minimum wage that it
also contains. This increase in the minimum wage is excessive and will
hurt the poor and those entering the workforce by reducing the number
of entry level positions in our economy.
Minimum wage increases raise unemployment among teenagers, minorities
and part-time workers. The minimum wage violates fundamental free
market economics. It costs jobs, and I cannot support policies that
will take jobs from those who need a paycheck the most.
Any proposal containing a minimum wage increase should be jobs-
neutral. If the federal government increases costs for businesses with
one hand, it is only right that it reduce costs for businesses with the
other. And while this legislation does contain good tax extensions, in
totality, it is not jobs-neutral. This increase in the minimum wage
will cost American jobs, and I cannot support it.
[[Page H6199]]
Additionally, this bill contains unrelated elements added during the
eleventh hour. A budget-busting provision is included that converts the
Abandoned Mine Land program from discretionary to mandatory spending.
The result is an increase in the deficit of $3.9 billion over the next
10 years.
Mr. Speaker, I would like to stand before you tonight and say that I
could support this bill because more than anyone, I want permanent
death tax relief. But, I cannot in good conscience vote for a bill that
also contains an excessive minimum wage increase that will hurt small
businesses and cost American jobs. And, I cannot vote for a bill that
busts the budget by nearly $4 billion over 10 years. Regretfully, Mr.
Speaker, for those reasons I stand tonight in opposition to this bill.
Mr. BLUMENAUER. Mr. Speaker, after having their wages frozen since
1997, it is time to give a long overdue raise to millions of Americans
who work hard but are paid only $5.15 per hour.
The Federal minimum wage is the lowest it has been, adjusted for
inflation, in more than 50 years. Nine years have passed since the last
increase and yet education, energy and healthcare costs have
skyrocketed. No one can house, feed, and educate a household by earning
the current Federal minimum wage.
Luckily in Oregon, voters passed a statewide initiative in 2002 which
raises our own minimum wage that provides an automatic inflation
adjustment. With the increase, we have seen significant benefits for
our workforce without any ill effects for our economy. Instead of
doomsayer predictions of job losses, Oregon has experienced the 8th
fastest job growth amongst states since the legislation was enacted.
After months of stalling, the Republican leadership was finally
forced to allow a vote. Unfortunately it was not a simple vote on
minimum wage, but a loaded bill with costly and unnecessary provisions.
This bill provides permanent estate tax relief for the wealthy by
increasing estate and gift tax exemptions and lowering tax rates.
Even worse, the intent to raise the existing minimum wage is actually
decreasing the wages of some workers due to the tip credit provision.
This provision provides that tips must be counted towards the minimum
wage. In Oregon restaurant workers are paid $7.50 per hour and yet this
legislation would reduce their wage to only $5.15 per hour.
The bill is so poorly drafted that one interpretation would
potentially double the minimum wage for select workers, while the other
would show a decrease in the same jobs.
This bill should be firmly rejected. The minimum wage needs to be
increased by crafting a simple and clear solution that protects states
with existing legislation. Under no circumstance should the Federal
government undercut what Oregon voters have already established.
Mr. SHAYS. Mr. Speaker, the time is past due for a raise in the
Federal minimum wage, which as last increased 10 years ago. Today,
workers making the least should be heartened that this legislation will
raise their wages 41 percent to $7.25 per hour over the next 3 years.
Some argue that raising the minimum wage increases unemployment and
prices. This is true only if the minimum wage is set too high or phased
in too quickly. If done properly, there should be little to no impact
on employment or prices.
I am also pleased we are lowering the estate tax, but adopting a far
more rational approach than full repeal.
Under this legislation, small business owners will be able to know
their businesses can be left with their families when they pass on
because of a significantly reduced tax rate. Wealthy individuals would
still pay something, between 15 and 30 percent on their estates, but
not the 46 percent in existing law.
Because estate and gift taxes has a harmful impact on small
businesses--many of which are forced to liquidate assets simply to pay
estate taxes which fluctuates in crazy fashion, from 46 percent this
year, to 0 percent in 2010 and way back up to 55 percent 2011--we must
intervene and provide relief. This bill will protect families and
business while still making sure the very wealthy are paying back
something to society.
Mr. PAUL. Mr. Speaker, I appreciate the opportunity to address my
concerns with H.R. 5970, a bill to raise the federally mandated minimum
wage. Before addressing the substance of this bill, I must address the
flaws in the process under which this bill is brought before us.
Neither I nor my staff had received any indication the bill before us
tonight would be considered by the House until late this afternoon, and
the only way a member of the general public could learn about this bill
is to look on the Rules Committee website. Therefore, Members of
Congress are being asked to vote for a major piece of legislation that
was introduced just hours before being voted on the Friday night before
Congress adjourns for the month of August.
The practice of rushing bills to the floor before individual Members
have had a chance to study the bills is one of the major factors
contributing to public distrust of Congress. Mr. Speaker, I have
introduced legislation, the Sunlight Rule (H. Res. 709), to prevent
situations like the one currently confronting Members. The Sunlight
Rule prohibits any piece of legislation, including conference reports,
from being brought before the House of Representatives unless it has
been available to Members and staff in both print and electronic
versions for at least 10 days. H. Res. 709 also requires that
conference reports and manager's amendments that make substantive
changes to a bill must be available in both printed and electronic
forms at least 72 hours before a vote.
The announced purpose of this bill is to raise living standards for
all Americans. This is certainly an admirable goal, however, to believe
that Congress can raise the standard of living for working Americans by
simply forcing employers to pay their employees a higher wage is
equivalent to claiming that Congress can repeal gravity by passing a
law saying humans shall have the ability to fly.
Economic principles dictate that when government imposes a minimum
wage rate above the market wage rate, it creates a surplus ``wedge''
between the supply of labor and the demand for labor, leading to an
increase in unemployment. Employers cannot simply begin paying more to
workers whose marginal productivity does not meet or exceed the law-
imposed wage. The only course of action available to the employer is to
mechanize operations or employ a higher-skilled worker whose output
meets or exceeds the ``minimum wage.'' This, of course, has the
advantage of giving the skilled worker an additional (and government-
enforced) advantage over the unskilled worker. For example, where
formerly an employer had the option of hiring three unskilled workers
at $5 per hour or one skilled worker at $16 per hour, a minimum wage of
$6 suddenly leaves the employer only the choice of the skilled worker
at an additional cost of $1 per hour. I would ask my colleagues, if the
minimum wage is the means to prosperity, why stop at $6.65--why not
$50, $75, or $100 per hour?
Those who are denied employment opportunities as a result of the
minimum wage are often young people at the lower end of the income
scale who are seeking entry-level employment. Their inability to find
an entry-level job will limit their employment prospects for years to
come. Thus, raising the minimum wage actually lowers the employment
opportunities and standard of living of the very people proponents of
the minimum wage claim will benefit from government intervention in the
economy!
Furthermore, interfering in the voluntary transactions of employers
and employees in the name of making things better for low wage earners
violates citizens' rights of association and freedom of contract as if
to say to citizens ``you are incapable of making employment decisions
for yourself in the marketplace.''
Mr. Speaker, I do not wish my opposition to this bill to be
misconstrued as counseling inaction. Quite the contrary, Congress must
enact ambitious program of tax cuts and regulatory reform to remove
government-created obstacles to job growth. However, Mr. Speaker,
Congress should not fool itself into believing that the package of tax
cuts included in this bill will compensate for the damage inflicted on
small businesses and their employees by the minimum wage increase. This
assumes that Congress is omnipotent and thus can strike a perfect
balance between tax cuts and regulations so that no firm, or worker, in
the country is adversely affected by Federal policies. If the 20th
Century taught us anything it was that any and all attempts to
centrally plan an economy, especially one as large and diverse as
America's, are doomed to fail.
In conclusion, I would remind my colleagues that while it may make
them feel good to raise the Federal minimum wage, the real life
consequences of this bill will be vested upon those who can least
afford to be deprived of work opportunities. Therefore, rather than
pretend that Congress can repeal the economic principles, I urge my
colleagues to reject this legislation and instead embrace a program of
tax cuts and regulatory reform to strengthen the greatest producer of
jobs and prosperity in human history: the free market.
Mr. UDALL of Colorado. Mr. Speaker, this bill is an example of the
worst kind of political game playing.
After months and months of short workweeks and long breaks, now the
Republican leadership has brought the House into session late today--
and for what?
Certainly not for a simple vote on raising the minimum wage--even
though that's long overdue.
No, instead the purpose of this grab-bag of a bill is to provide
political cover for people who want to say they voted to raise the
minimum wage but don't want their votes to actually produce that
result.
[[Page H6200]]
That's why the Republican leaders have chained onto the minimum-wage
increase the deadweight of an estate-tax revision bill like the one the
House passed last month--a bill so badly flawed that it has already
reached dead end in the other body. They know that the added weight
will mean that even if this bill is launched from the House it will not
fly, and will never reach the President's desk.
It's a cynical move. And it's a lost opportunity--because if the
estate-tax part of this bill were good enough to give the package a
long-shot chance of enactment, the bill would merit support.
But, like the version we passed last month, the estate-tax part of
this bill does not have that chance, because it does not represent a
true compromise. While benefiting only a very few--the very largest
estates--it would irresponsibly reduce federal revenue at a time when
the country is at war and the budget is already deeply in deficit. And
to make matters worse, it includes unrelated provisions that are even
less fiscally responsible, such as a special tax break for timber
companies that would reopen a loophole that was closed when President
Reagan signed the landmark Tax Reform Act of 1986.
My opposition to this bill does not mean I am opposed to reducing
estate taxes. When the House considered the estate-tax bill last month,
I supported an alternative that would have raised the amount of an
estate excluded from taxes to $6 million per couple and increased this
to $7 million by 2009. This not only would have provided relief for
small businesses and family farmers, but it would have done so in a
much more fiscally responsible way, because it would have reduced
revenues by much less than this bill. It also would have simplified
estate-tax planning for married couples, who could carry over any
unused exemption to the surviving spouse and so assured that the full
$7 million would be available.
Furthermore, that alternative would have transferred the revenue from
the estate tax to strengthen the Social Security trust fund, a change
that, according to the Social Security Actuary, would solve one quarter
of the trust fund's shortfall.
If the Republican leadership allowed us to vote on that--even as an
added burden on a bill to raise the minimum wage--I would vote for it.
But they could not do that, because that kind of true compromise--a
reasonable and responsible compromise that would have a good chance of
approval in the Senate--would not fit their plan to use the estate tax
as a weight to sink the minimum wage increase.
So, once again, I have no responsible choice but to oppose what the
Republican leadership has put before us and to vote against this
cynical maneuver disguised as a serious legislative proposal.
Mr. KING of Iowa. Mr. Speaker, there is no doubt that most of the
provisions contained in H.R. 5970 are good for America. I am in
complete agreement with those who argue that no American family should
be forced to sell off their loved one's life work in order to pay the
federal inheritance tax bill. I have always considered the Death Tax to
be a scourge on America, and I will continue working to bring about the
day when this destructive tax is permanently repealed. In addition, as
one who believes that our federal income tax code should be replaced by
a national sales tax, under most circumstances, I would eagerly support
the many provisions of this bill that are aimed at reducing the burden
of taxation on hard-working Americans. Unfortunately, however, these
provisions were brought before us this evening in an attempt to
compensate for, and distract attention from, a politically-motivated,
economically nonsensical, and utterly unprincipled move to raise the
federally-mandated minimum wage.
When we artificially raise wages, we will force small businesses to
either hire fewer workers; shrink their labor force; transition to more
efficient means of production, like automation; or simply close their
doors altogether. The effect that this wage hike will have on the
American worker is simple: it will price low-wage workers--the very
people it is intended to help--out of the labor market.
Labor is a commodity like corn, beans, gold or oil, and its value
should be established by supply and demand in the marketplace--not by
congressional mandate. If it makes sense to legislate a minimum wage,
it also makes sense to legislate a living wage. And, if it makes sense
to legislate a living wage, it makes sense to simply legislate
prosperity . Yet, if Congress passed a law that everyone had to make
$1,000,000 a year, there would only be a handful of people with a job
in this country.
Eliminating the Death Tax on small business owners stands on its own
merit. But, adding inheritance tax reforms to a minimum wage mandate
that will cripple small businesses is a losing proposition. While I am
supportive of the provisions in this bill that will undoubtedly bring
much needed relief to the American taxpayer, I would be doing my
constituents and the people of this nation a great disservice if I
attempted to use these ``sweeteners'' to force the poison pill of a
minimum wage hike down the throats of America's small business owners.
Mr. PASCRELL. Mr. Speaker, I rise tonight appalled by the way
Republican leadership has decided to turn against American workers by
playing politics, instead of passing a clean minimum wage increase.
It is shameful that millions of Americans are suffering the economic
injustice of working a full-time job and earning a wage that leaves
them below the poverty line.
It is unconscionable that we stand here tonight debating provisions
on the estate tax and the extension of expiring tax provisions. These
provisions only serve as a political ploy to kill any increase to the
minimum wage.
Working-class Americans have waited too long, close to a decade in
fact, for an increase in the minimum wage. This has been the second
longest period without a pay raise since the Federal minimum wage law
was first enacted in 1938.
Over this last decade while the minimum wage has remained stagnant,
the cost of basic necessities such as energy and healthcare have
skyrocketed--meaning that the minimum wage is no longer a livable wage.
Today a minimum wage earner has to work a day and a half just to pay
for a full tank of gas. That is simply shameful.
As Americans we have always been told that if you have a job, and you
work hard, you will have a secure future in our Nation. Yet, millions
of Americans who do have jobs and who do work hard everyday have joined
the ranks of the ``working poor.''
In fact, the number of full-time year-round workers who are poor has
more than doubled since the late 1970s.
Let there be no doubt, a vote to increase the minimum wage to $7.25/
hour is a vote to alleviate poverty in America, and it is a vote to
help eliminate the term ``working poor'' from our reality.
Members of this body should be allowed a straight up-or-down vote on
legislation to raise the minimum wage to a true livable wage of $7.25/
hour over the next 2 years.
But instead the Republican leadership here in the House of
Representatives has chosen to play dirty politics and attach poison
pill provisions to this legislation with the implicit expectation of
killing a real minimum wage increase.
It is quite simply a slap in the face for working-class Americans.
Ms. MILLENDER-McDONALD. Mr. Speaker, I rise today in strong
opposition to the House Republican minimum wage legislation which is
not a clean bill. A clean bill would not have poison pills in it.
Mr. Speaker this is a sad day. The American people need our help.
From coast to coast, the lowest paid Americans are clamoring for
assistance as they struggle to live off of wages not suitable for this
decade. It is obvious that an increase in the minimum wage is sadly
overdue.
Unfortunately, when the majority finally provides the opportunity to
vote on increasing the minimum wage, it comes to us bloated, filled
with provisions harmful to the American worker and which ensure that
this legislation is never enacted.
While it is unfortunate that the majority leadership has not seen fit
to bring legislation to the floor that neither the American people nor
most of my colleagues have had a chance to review, it is downright
insulting that the legislation on the floor today was written knowing
that it will never pass out of the Senate. This bill is dead on arrival
in the Senate.
For the last two-years, the Democrats have fought to increase the
minimum wage. The effect of the last minimum wage increase in 1996-97
has been completely eroded by inflation, which, when factored in, the
$5.15 minimum wage today is lower than the $4.25 minimum wage level
before the 1996-97 increase. At the same time fuel prices have
continued to skyrocket, housing prices are soaring and health care
continues to be out of reach for those whose jobs do not provide it for
them.
If the Democrat minimum wage initiative would come to the floor, an
estimated 14.9 million workers would receive an increase in their
hourly wage rate if the Democrat minimum wage were raised. Over half a
million of these workers reside in my home State of California. But
this Republican bill does not provide the minimum wage increase
American workers need. It delays the increase and nullifies wage
protections for tipped workers.
Mr. Speaker, in the almost 10 years since the last increase in the
minimum wage, the purchasing power of the minimum wage has deteriorated
by 20 percent and the value of the minimum wage is at its lowest level
since 1955 when adjusted for inflation. This is clearly unacceptable.
The American people need us more than ever. I urge my colleagues to
only support a clean bill focused solely on the minimum wage and to
vote against this Republican legislation in its current form.
[[Page H6201]]
Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker it has been almost 10
years since we've seen an increase in the Federal minimum wage.
Unfortunately, this bill here today is not about helping American
workers.
The bill is full of poison pills--tax breaks for the wealthy and
hand-outs for special interests.
This is nothing more than a backdoor attempt to put money in the
pockets of the wealthiest among us.
We're playing politics and decent hardworking Americans are the ones
paying the price.
The reality is that there are millions of workers trying to support
their families on $5.15 per hour.
Each day millions of minimum wage workers are forced to choose
between food, shelter, health care or clothing.
No American who works hard for a living should have to make those
types of choices.
Mr. Speaker, it is time for a new direction that truly reflects our
core American values.
These hardworking Americans deserve an up-or-down vote on a clean
minimum wage bill.
Mr. UDALL of New Mexico. Mr. Speaker, for nearly a decade, millions
of American workers have waited for an increase in the Federal minimum
wage, but none has come. They have watched as the purchasing power of
their paycheck has crumbled, giving way to inflation. Many are working
families, struggling to make ends meet, yet for 9 years Congress has
ignored them and refused to pass a clean, simple increase in the
minimum wage.
Nearly 44 percent of minimum wage workers work full time, nearly two-
thirds of whom are women. Even working full time, they often remain
below the poverty line. They are unable to buy their own home, cannot
afford health insurance for themselves and their children, and often
take a second job just to pay the bills.
Mr. Speaker it is time to increase the Federal minimum wage. I
strongly support implementing a 2-year plan that would increase the
minimum wage from $5.15 an hour to $7.25 an hour. However, I also
strongly support passing such legislation cleanly, without attachments
of tax cuts, without attachment of controversial language or convoluted
provisions. We must demonstrate that we support those American
families, those who are wondering why they are working 50-hour work
weeks yet cannot seem to make ends meet.
Ms. BORDALLO. Mr. Speaker, I rise today in strong support of
providing American workers a living wage with which to support and
improve their families' livelihoods. Those in America who receive the
minimum wage for their labors are particularly vulnerable to
experiencing greater financial pressures and a lower overall quality of
life.
The national minimum wage has not been increased in 9 years and has
not kept pace with household expenses. Raising the minimum wage will
help lift many families on Guam out of poverty. An increase in the
Federal minimum wage is long overdue, as evidenced by the recent
actions taken by the Guam Legislature and the Governor to increase the
local minimum wage.
Living wages help families ensure that their children receive proper
nutrition, quality education, and good health care. These are essential
to ensuring that children have happy, productive and healthy
childhoods. Living wages earned by American workers also help American
families realize important financial goals as well as improving, long-
term financial well-being. Eliminating high-interest debt, achieving
home ownership, and investing now for a child's future higher education
costs and a parents' retirement, for instance, are goals more easily
realized by workers who earn a living wage.
Americans have proven to be productive, innovative, and resourceful
workers. Their wages should reflect this reality. A worker's wage
represents his or her worth to an employer. But it also represents much
more. Wages and salaries are the foundations upon which families are
begun. Living wages and salaries provide the financial security under
which those families can grow. A worker's wage or salary helps ensure
his or her financial future. Receiving a living wage is well deserved
by American workers.
Mr. SCHIFF. Mr. Speaker, I rise today to express my disappointment
that once again the Members of this House appear poised to let another
opportunity pass us by that would have a meaningful impact in the lives
of millions of American families. Today, we are voting on a bill that
has been rushed to this House floor and purports to raise the Federal
minimum wage. In reality, however, the bill before us seeks to muddy
the waters about whether America's lowest paid workers deserve to make
a living wage.
In stark contrast to the bill before us today, Mr. Miller, the
ranking member of the House Committee on Education and the Workforce,
has introduced very simple legislation that would increase the Federal
minimum wage to $7.25 per hour over the course of the next 2 years.
This bill was introduced in May of 2005 and has yet to receive a
hearing.
The hastily drafted bill before us today, however, was only
introduced earlier this afternoon, and the House leadership has brought
it to the floor for a vote.
This legislation adds unrelated and controversial provisions, that
I'm sure some hope will end the debate and ensure that a meaningful
increase in our minimum wage never takes place. We should instead, be
voting today on a straightforward bill that simply raises the Federal
minimum wage to a level that ensures that working families can emerge
from the grasp of poverty.
Before the House adjourns for the August recess, I believe we owe the
American people a simple up-or-down vote on whether or not working
Americans deserve a decent living wage.
The current minimum wage of $5.15 per hour is not a living wage. It
is not a wage on which single individuals, working full time, can
adequately support themselves, and it is most certainly not a wage on
which a single mother or single father can raise a family.
Millions of hard-working Americans would directly benefit from a
minimum wage increase. Some would argue that this would only benefit
high school students and young adults who are being paid minimum wages
on their first job at a fast food restaurant. In fact, more than 84
percent of workers who would directly benefit from a minimum wage
increase are above the age of 20. In addition, nearly 60 percent of
those individuals work full time, and 45 percent of them are married
and/or have children.
They are the victims of our inaction, Mr. Speaker. In many cases, it
is our children who will suffer. I am ashamed that nearly 36 million
Americans live in poverty in our country, and that nearly 13 million of
those who live below the poverty line are children. With a very simple
vote today--on a very simple piece of legislation--we could
dramatically increase the physical, mental, and financial wellbeing of
countless American children. No one who works for a living should have
to live in poverty, and the children of these working families must not
be made to suffer for our collective lack of moral conviction.
I call on my friends on the other side of the aisle, and I ask them
to partner with us to pass a meaningful increase in the Federal minimum
wage. We must pass legislation that does not contain controversial
provisions that divide us. Instead, we should speak with one voice, as
one Congress, and tell working Americans that we value their work, that
we understand their sacrifices, and that they deserve to make a living
wage.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to House Resolution 966, the bill is considered read and the
previous question is ordered.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
Motion to Recommit Offered by Mr. George Miller of California
Mr. GEORGE MILLER of California. Mr. Speaker, I offer a motion to
recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. GEORGE MILLER of California. I am in its present form.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:
Mr. George Miller of California moves to recommit the bill,
H.R. 5970 to the Committee on Education and the Workforce
with instructions to report the bill back to the House
forthwith with the following amendment:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fair
Minimum Wage and Extension of Tax Relief Act''.
(b) Table of Contents.--The table of contents for ths Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--INCREASE IN THE MINIMUM WAGE
Sec. 101. Increase in the minimum wage.
Sec. 102. Applicability of minimum wage to the Commonwealth of the
Northern Mariana Islands.
TITLE II--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS
Subtitle A--Extension and Modification of Certain Provisions
Sec. 201. Deduction for qualified tuition and related expenses.
Sec. 202. Extension and modification of new markets tax credit.
Sec. 203. Election to deduct State and local general sales taxes.
Sec. 204. Extension and modification of research credit.
[[Page H6202]]
Sec. 205. Work opportunity tax credit and welfare-to-work credit.
Sec. 206. Election to include combat pay as earned income for purposes
of earned income credit.
Sec. 207. Extension and modification of qualified zone academy bonds.
Sec. 208. Above-the-line deduction for certain expenses of elementary
and secondary school teachers.
Sec. 209. Extension and expansion of expensing of brownfields
remediation costs.
Sec. 210. Tax incentives for investment in the District of Columbia.
Sec. 211. Indian employment tax credit.
Sec. 212. Accelerated depreciation for business property on Indian
reservations.
Sec. 213. Fifteen-year straight-line cost recovery for qualified
leasehold improvements and qualified restaurant property.
Sec. 214. Cover over of tax on distilled spirits.
Sec. 215. Parity in application of certain limits to mental health
benefits.
Sec. 216. Corporate donations of scientific property used for research
and of computer technology and equipment.
Sec. 217. Availability of medical savings accounts.
Sec. 218. Taxable income limit on percentage depletion for oil and
natural gas produced from marginal properties.
Sec. 219. American Samoa economic development credit.
Sec. 220. Restructuring of New York Liberty Zone tax credits.
Sec. 221. Extension of bonus depreciation for certain qualified Gulf
Opportunity Zone property.
Sec. 222. Authority for undercover operations.
Sec. 223. Disclosures of certain tax return information.
Subtitle B--Other Provisions
Sec. 231. Deduction allowable with respect to income attributable to
domestic production activities in Puerto Rico.
Sec. 232. Credit for prior year minimum tax liability made refundable
after period of years.
Sec. 233. Returns required in connection with certain options.
Sec. 234. Partial expensing for advanced mine safety equipment.
Sec. 235. Mine rescue team training tax credit.
Sec. 236. Whistleblower reforms.
Sec. 237. Frivolous tax submissions.
Sec. 238. Addition of meningococcal and human papillomavirus vaccines
to list of taxable vaccines.
Sec. 239. Clarification of taxation of certain settlement funds made
permanent.
Sec. 240. Modification of active business definition under section 355
made permanent.
Sec. 241. Revision of State veterans limit made permanent.
Sec. 242. Capital gains treatment for certain self-created musical
works made permanent.
Sec. 243. Reduction in minimum vessel tonnage which qualifies for
tonnage tax made permanent.
Sec. 244. Modification of special arbitrage rule for certain funds made
permanent.
Sec. 245. Great Lakes domestic shipping to not disqualify vessel from
tonnage tax.
Sec. 246. Use of qualified mortgage bonds to finance residences for
veterans without regard to first-time homebuyer
requirement.
Sec. 247. Exclusion of gain from sale of a principal residence by
certain employees of the intelligence community.
Sec. 248. Treatment of coke and coke gas.
Sec. 249. Sale of property by judicial officers.
Sec. 250. Premiums for mortgage insurance.
Sec. 251. Modification of refunds for kerosene used in aviation.
Sec. 252. Deduction for qualified timber gain.
Sec. 253. Credit to holders of rural renaissance bonds.
Sec. 254. Restoration of deduction for travel expenses of spouse, etc.
accompanying taxpayer on business travel.
Sec. 255. Technical corrections.
TITLE III--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF
2006
Sec. 301. Short title.
Subtitle A--Mining Control and Reclamation
Sec. 311. Abandoned Mine Reclamation Fund and purposes.
Sec. 312. Reclamation fee.
Sec. 313. Objectives of Fund.
Sec. 314. Reclamation of rural land.
Sec. 315. Liens.
Sec. 316. Certification.
Sec. 317. Remining incentives.
Sec. 318. Extension of limitation on application of prohibition on
issuance of permit.
Sec. 319. Tribal regulation of surface coal mining and reclamation
operations.
Subtitle B--Coal Industry Retiree Health Benefit Act
Sec. 321. Certain related persons and successors in interest relieved
of liability if premiums prepaid.
Sec. 322. Transfers to funds; premium relief.
Sec. 323. Other provisions.
TITLE I--INCREASE IN THE MINIMUM WAGE
SEC. 101. INCREASE IN THE MINIMUM WAGE.
(a) In General.--Section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to
read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) $5.15 an hour beginning September 1, 1997;
``(B) $5.85 an hour, beginning on the 60th day after the
date of enactment of the Fair Minimum Wage and Extension of
Tax Relief Act of 2006;
``(C) $6.55 an hour, beginning 12 months after that 60th
day; and
``(D) $7.25 an hour, beginning 24 months after that 60th
day;''.
SEC. 102. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH
OF THE NORTHERN MARIANA ISLANDS.
(a) In General.--Section 6 of the Fair Labor Standards Act
of 1938 (29 U.S.C. 206) shall apply to the Commonwealth of
the Northern Mariana Islands.
(b) Transition.--Notwithstanding subsection (a), the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be--
(1) $3.55 an hour, beginning on the 60th day after the date
of enactment of this Act; and
(2) increased by $0.50 an hour (or such lesser amount as
may be necessary to equal the minimum wage under section
6(a)(1) of such Act), beginning 6 months after the date of
enactment of this Act and every 6 months thereafter until the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under this subsection is equal to the minimum
wage set forth in such section.
TITLE II--EXTENSION AND EXPANSION OF CERTAIN TAX RELIEF PROVISIONS
Subtitle A--Extension and Modification of Certain Provisions
SEC. 201. DEDUCTION FOR QUALIFIED TUITION AND RELATED
EXPENSES.
(a) In General.--Section 222(e) is amended by striking
``2005''and inserting ``2007''.
(b) Conforming Amendments.--Section 222(b)(2)(B) is
amended--
(1) by striking ``a taxable year beginning in 2004 or
2005'' and inserting ``any taxable year beginning after
2003'', and
(2) by striking ``2004 and 2005'' in the heading and
inserting ``After 2003''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 202. EXTENSION AND MODIFICATION OF NEW MARKETS TAX
CREDIT.
(a) Extension.--Section 45D(f)(1)(D) is amended by striking
``and 2007'' and inserting ``, 2007, and 2008''.
(b) Regulations Regarding Non-Metropolitan Counties.--
Section 45D(i) is amended by striking ``and'' at the end of
paragraph (4), by striking the period at the end of paragraph
(5) and inserting ``, and'', and by adding at the end the
following new paragraph:
``(6) which ensure that non-metropolitan counties receive a
proportional allocation of qualified equity investments.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 203. ELECTION TO DEDUCT STATE AND LOCAL GENERAL SALES
TAXES.
(a) In General.--Section 164(b)(5)(I) is amended by
striking ``2006'' and inserting ``2008''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 204. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.
(a) Extension.--
(1) In general.--Section 41(h)(1)(B) is amended by striking
``2005'' and inserting ``2007''.
(2) Conforming amendment.--Section 45C(b)(1)(D) is amended
by striking ``2005'' and inserting ``2007''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2005.
(b) Increase in Rates of Alternative Incremental Credit.--
(1) In general.--Subparagraph (A) of section 41(c)(4)
(relating to election of alternative incremental credit) is
amended--
(A) by striking ``2.65 percent'' and inserting ``3
percent'',
(B) by striking ``3.2 percent'' and inserting ``4
percent'', and
(C) by striking ``3.75 percent'' and inserting ``5
percent''.
(2) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2006.
(c) Alternative Simplified Credit for Qualified Research
Expenses.--
(1) In general.--Subsection (c) of section 41 (relating to
base amount) is amended by redesignating paragraphs (5) and
(6) as paragraphs (6) and (7), respectively, and by inserting
after paragraph (4) the following new paragraph:
``(5) Election of alternative simplified credit.--
[[Page H6203]]
``(A) In general.--At the election of the taxpayer, the
credit determined under subsection (a)(1) shall be equal to
12 percent of so much of the qualified research expenses for
the taxable year as exceeds 50 percent of the average
qualified research expenses for the 3 taxable years preceding
the taxable year for which the credit is being determined.
``(B) Special rule in case of no qualified research
expenses in any of 3 preceding taxable years.--
``(i) Taxpayers to which subparagraph applies.--The credit
under this paragraph shall be determined under this
subparagraph if the taxpayer has no qualified research
expenses in any one of the 3 taxable years preceding the
taxable year for which the credit is being determined.
``(ii) Credit rate.--The credit determined under this
subparagraph shall be equal to 6 percent of the qualified
research expenses for the taxable year.
``(C) Election.--An election under this paragraph shall
apply to the taxable year for which made and all succeeding
taxable years unless revoked with the consent of the
Secretary. An election under this paragraph may not be made
for any taxable year to which an election under paragraph (4)
applies.''.
(2) Coordination with election of alternative incremental
credit.--
(A) In general.--Section 41(c)(4)(B) (relating to election)
is amended by adding at the end the following: ``An election
under this paragraph may not be made for any taxable year to
which an election under paragraph (5) applies.''.
(B) Transition rule.--In the case of an election under
section 41(c)(4) of the Internal Revenue Code of 1986 which
applies to the taxable year which includes the date of the
enactment of this Act, such election shall be treated as
revoked with the consent of the Secretary of the Treasury if
the taxpayer makes an election under section 41(c)(5) of such
Code (as added by subsection (c)) for such year.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2006.
SEC. 205. WORK OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK
CREDIT.
(a) In General.--Sections 51(c)(4)(B) and 51A(f) are each
amended by striking ``2005'' and inserting ``2007''.
(b) Eligibility of Ex-Felons Determined Without Regard to
Family Income.--Paragraph (4) of section 51(d) is amended by
adding ``and'' at the end of subparagraph (A), by striking
``, and'' at the end of subparagraph (B) and inserting a
period, and by striking all that follows subparagraph (B).
(c) Increase in Maximum Age for Eligibility of Food Stamp
Recipients.--Clause (i) of section 51(d)(8)(A) is amended by
striking ``25'' and inserting ``40''.
(d) Extension of Paperwork Filing Deadline.--Section
51(d)(12)(A)(ii)(II) is amended by striking ``21st day'' and
inserting ``28th day''.
(e) Consolidation of Work Opportunity Credit With Welfare-
to-Work Credit.--
(1) In general.--Paragraph (1) of section 51(d) is amended
by striking ``or'' at the end of subparagraph (G), by
striking the period at the end of subparagraph (H) and
inserting ``, or'', and by adding at the end the following
new subparagraph:
``(I) a long-term family assistance recipient.''.
(2) Long-term family assistance recipient.--Subsection (d)
of section 51 is amended by redesignating paragraphs (10)
through (12) as paragraphs (11) through (13), respectively,
and by inserting after paragraph (9) the following new
paragraph:
``(10) Long-term family assistance recipient.--The term
`long-term family assistance recipient' means any individual
who is certified by the designated local agency--
``(A) as being a member of a family receiving assistance
under a IV-A program (as defined in paragraph (2)(B)) for at
least the 18-month period ending on the hiring date,
``(B)(i) as being a member of a family receiving such
assistance for 18 months beginning after August 5, 1997, and
``(ii) as having a hiring date which is not more than 2
years after the end of the earliest such 18-month period, or
``(C)(i) as being a member of a family which ceased to be
eligible for such assistance by reason of any limitation
imposed by Federal or State law on the maximum period such
assistance is payable to a family, and
``(ii) as having a hiring date which is not more than 2
years after the date of such cessation.''.
(3) Increased credit for employment of long-term family
assistance recipients.--Section 51 is amended by inserting
after subsection (d) the following new subsection:
``(e) Credit for Second-Year Wages for Employment of Long-
Term Family Assistance Recipients.--
``(1) In general.--With respect to the employment of a
long-term family assistance recipient--
``(A) the amount of the work opportunity credit determined
under this section for the taxable year shall include 50
percent of the qualified second-year wages for such year, and
``(B) in lieu of applying subsection (b)(3), the amount of
the qualified first-year wages, and the amount of qualified
second-year wages, which may be taken into account with
respect to such a recipient shall not exceed $10,000 per
year.
``(2) Qualified second-year wages.--For purposes of this
subsection, the term `qualified second-year wages' means
qualified wages--
``(A) which are paid to a long-term family assistance
recipient, and
``(B) which are attributable to service rendered during the
1-year period beginning on the day after the last day of the
1-year period with respect to such recipient determined under
subsection (b)(2).
``(3) Special rules for agricultural and railway labor.--If
such recipient is an employee to whom subparagraph (A) or (B)
of subsection (h)(1) applies, rules similar to the rules of
such subparagraphs shall apply except that--
``(A) such subparagraph (A) shall be applied by
substituting `$10,000' for `$6,000', and
``(B) such subparagraph (B) shall be applied by
substituting `$833.33' for `$500'.''.
(4) Repeal of separate welfare-to-work credit.--
(A) In general.--Section 51A is hereby repealed.
(B) Clerical amendment.--The table of sections for subpart
F of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 51A.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to individuals
who begin work for the employer after December 31, 2005.
(2) Consolidation.--The amendments made by subsections (b),
(c), (d), and (e) shall apply to individuals who begin work
for the employer after December 31, 2006.
SEC. 206. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR
PURPOSES OF EARNED INCOME CREDIT.
(a) In General.--Section 32(c)(2)(B)(vi)(II) is amended by
striking ``2007'' and inserting ``2008''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
SEC. 207. EXTENSION AND MODIFICATION OF QUALIFIED ZONE
ACADEMY BONDS.
(a) In General.--Paragraph (1) of section 1397E(e) is
amended by striking ``and 2005'' and inserting ``2005, 2006,
and 2007''.
(b) Special Rules Relating to Expenditures, Arbitrage, and
Reporting.--
(1) In general.--Section 1397E is amended--
(A) in subsection (d)(1), by striking ``and'' at the end of
subparagraph (C)(iii), by striking the period at the end of
subparagraph (D) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(E) the issue meets the requirements of subsections (f),
(g), and (h).'', and
(B) by redesignating subsections (f), (g), (h), and (i) as
subsection (i), (j), (k), and (l), respectively, and by
inserting after subsection (e) the following new subsections:
``(f) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of
issuance, the issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the sale of
the issue are to be spent for 1 or more qualified purposes
with respect to qualified zone academies within the 5-year
period beginning on the date of issuance of the qualified
zone academy bond,
``(B) a binding commitment with a third party to spend at
least 10 percent of the proceeds from the sale of the issue
will be incurred within the 6-month period beginning on the
date of issuance of the qualified zone academy bond, and
``(C) such purposes will be completed with due diligence
and the proceeds from the sale of the issue will be spent
with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the issuer
establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related
purposes will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of
the proceeds of such issue are expended by the close of the
5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close
of the extended period), the issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such
period. For purposes of this paragraph, the amount of the
nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(g) Special Rules Relating to Arbitrage.--An issue shall
be treated as meeting the requirements of this subsection if
the issuer satisfies the arbitrage requirements of section
148 with respect to proceeds of the issue.
``(h) Reporting.--Issuers of qualified academy zone bonds
shall submit reports similar to the reports required under
section 149(e).''.
(2) Conforming amendments.--Sections 54(l)(3)(B) and
1400N(l)(7)(B)(ii) are each amended by striking ``section
1397E(i)'' and inserting ``section 1397E(l)''.
(c) Effective Dates.--
[[Page H6204]]
(1) Extension.--The amendment made by subsection (a) shall
apply to obligations issued after December 31, 2005.
(2) Special rules.--The amendments made by subsection (b)
shall apply to obligations issued after the date of the
enactment of this Act pursuant to allocations of the national
zone academy bond limitation for calendar years after 2005.
SEC. 208. ABOVE-THE-LINE DEDUCTION FOR CERTAIN EXPENSES OF
ELEMENTARY AND SECONDARY SCHOOL TEACHERS.
(a) In General.--Subparagraph (D) of section 62(a)(2) is
amended by striking ``or 2005'' and inserting ``2005, 2006,
or 2007''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 209. EXTENSION AND EXPANSION OF EXPENSING OF BROWNFIELDS
REMEDIATION COSTS.
(a) Extension.--Subsection (h) of section 198 is amended by
striking ``2005'' and inserting ``2007''.
(b) Expansion.--Section 198(d)(1) (defining hazardous
substance) is amended by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at
the end the following new subparagraph:
``(C) any petroleum product (as defined in section
4612(a)(3)).''.
(c) Effective Date.--The amendments made by this section
shall apply to expenditures paid or incurred after December
31, 2005.
SEC. 210. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
COLUMBIA.
(a) Designation of Zone.--
(1) In general.--Subsection (f) of section 1400 is amended
by striking ``2005'' both places it appears and inserting
``2007''.
(2) Effective date.--The amendments made by this subsection
shall apply to periods beginning after December 31, 2005.
(b) Tax-Exempt Economic Development Bonds.--
(1) In general.--Subsection (b) of section 1400A is amended
by striking ``2005'' and inserting ``2007''.
(2) Effective date.--The amendment made by this subsection
shall apply to bonds issued after December 31, 2005.
(c) Zero Percent Capital Gains Rate.--
(1) In general.--Subsection (b) of section 1400B is amended
by striking ``2006'' each place it appears and inserting
``2008''.
(2) Conforming amendments.--
(A) Section 1400B(e)(2) is amended--
(i) by striking ``2010'' and inserting ``2012'', and
(ii) by striking ``2010'' in the heading thereof and
inserting ``2012''.
(B) Section 1400B(g)(2) is amended by striking ``2010'' and
inserting ``2012''.
(C) Section 1400F(d) is amended by striking ``2010'' and
inserting ``2012''.
(3) Effective dates.--
(A) Extension.--The amendments made by paragraph (1) shall
apply to acquisitions after December 31, 2005.
(B) Conforming amendments.--The amendments made by
paragraph (2) shall take effect on the date of the enactment
of this Act.
(d) First-Time Homebuyer Credit.--
(1) In general.--Subsection (i) of section 1400C is amended
by striking ``2006'' and inserting ``2008''.
(2) Effective date.--The amendment made by this subsection
shall apply to property purchased after December 31, 2005.
SEC. 211. INDIAN EMPLOYMENT TAX CREDIT.
(a) In General.--Section 45A(f) is amended by striking
``2005'' and inserting ``2007''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 212. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON
INDIAN RESERVATIONS.
(a) In General.--Section 168(j)(8) is amended by striking
``2005'' and inserting ``2007''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2005.
SEC. 213. FIFTEEN-YEAR STRAIGHT-LINE COST RECOVERY FOR
QUALIFIED LEASEHOLD IMPROVEMENTS AND QUALIFIED
RESTAURANT PROPERTY.
(a) In General.--Clauses (iv) and (v) of section
168(e)(3)(E) are each amended by striking ``2006'' and
inserting ``2008''.
(b) Treatment of Restaurant Property To Include New
Construction.--Paragraph (7) of section 168(e) (relating to
classification of property) is amended to read as follows:
``(7) Qualified restaurant property.--The term `qualified
restaurant property' means any section 1250 property which is
a building or an improvement to a building if more than 50
percent of the building's square footage is devoted to
preparation of, and seating for on-premises consumption of,
prepared meals.''.
(c) Effective Dates.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to property placed in service after December 31,
2005.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. 214. COVER OVER OF TAX ON DISTILLED SPIRITS.
(a) In General.--Section 7652(f)(1) is amended by striking
``2006'' and inserting ``2008''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to articles brought into the United States after
December 31, 2005.
SEC. 215. PARITY IN APPLICATION OF CERTAIN LIMITS TO MENTAL
HEALTH BENEFITS.
(a) Amendment to the Internal Revenue Code of 1986.--
Section 9812(f)(3) is amended by striking ``2006'' and
inserting ``2007''.
(b) Amendment to the Employee Retirement Income Security
Act of 1974.--Section 712(f) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1185a(f)) is amended
by striking ``2006'' and inserting ``2007''.
(c) Amendment to the Public Health Service Act.--Section
2705(f) of the Public Health Service Act (42 U.S.C. 300gg-
5(f)) is amended by striking ``2006''and inserting ``2007''.
SEC. 216. CORPORATE DONATIONS OF SCIENTIFIC PROPERTY USED FOR
RESEARCH AND OF COMPUTER TECHNOLOGY AND
EQUIPMENT.
(a) Extension of Computer Technology and Equipment
Donation.--
(1) In general.--Section 170(e)(6)(G) is amended by
striking ``2005'' and inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to contributions made in taxable years beginning
after December 31, 2005.
(b) Expansion of Charitable Contribution Allowed for
Scientific Property Used for Research and for Computer
Technology and Equipment Used for Educational Purposes.--
(1) Scientific property used for research.--
(A) In general.--Clause (ii) of section 170(e)(4)(B)
(defining qualified research contributions) is amended by
inserting ``or assembled'' after ``constructed''.
(B) Conforming amendment.--Clause (iii) of section
170(e)(4)(B) is amended by inserting ``or assembly'' after
``construction''.
(2) Computer technology and equipment for educational
purposes.--
(A) In general.--Clause (ii) of section 170(e)(6)(B) is
amended by inserting ``or assembled'' after ``constructed''
and ``or assembling'' after ``construction''.
(B) Conforming amendment.--Subparagraph (D) of section
170(e)(6) is amended by inserting ``or assembled'' after
``constructed'' and ``or assembly'' after ``construction''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2005.
SEC. 217. AVAILABILITY OF MEDICAL SAVINGS ACCOUNTS.
(a) In General.--Paragraphs (2) and (3)(B) of section
220(i) are each amended by striking ``2005'' each place it
appears in the text and headings and inserting ``2007''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 220(j) is amended--
(A) in the text by striking ``or 2004'' each place it
appears and inserting ``2004, 2005, or 2006'', and
(B) in the heading by striking ``or 2004'' and inserting
``2004, 2005, or 2006'' .
(2) Subparagraph (A) of section 220(j)(4) is amended by
striking ``and 2004'' and inserting ``2004, 2005, and 2006''.
(c) Time for Filing Reports, etc.--
(1) The report required by section 220(j)(4) of the
Internal Revenue Code of 1986 to be made on August 1, 2005,
shall be treated as timely if made before the close of the
90-day period beginning on the date of the enactment of this
Act.
(2) The determination and publication required by section
220(j)(5) of such Code with respect to calendar year 2005
shall be treated as timely if made before the close of the
120-day period beginning on the date of the enactment of this
Act. If the determination under the preceding sentence is
that 2005 is a cut-off year under section 220(i) of such
Code, the cut-off date under such section 220(i) shall be the
last day of such 120-day period.
SEC. 218. TAXABLE INCOME LIMIT ON PERCENTAGE DEPLETION FOR
OIL AND NATURAL GAS PRODUCED FROM MARGINAL
PROPERTIES.
(a) In General.--Section 613A(c)(6)(H) is amended by
striking ``2006'' and inserting ``2008''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to taxable years beginning after December 31,
2005.
SEC. 219. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.
(a) In General.--For purposes of section 30A of the
Internal Revenue Code of 1986, a domestic corporation shall
be treated as a qualified domestic corporation to which such
section applies if such corporation--
(1) is an existing credit claimant with respect to American
Samoa, and
(2) elected the application of section 936 of the Internal
Revenue Code of 1986 for its last taxable year beginning
before January 1, 2006.
(b) Special Rules for Application of Section.--The
following rules shall apply in applying section 30A of the
Internal Revenue Code of 1986 for purposes of this section:
(1) Amount of credit.--Notwithstanding section 30A(a)(1) of
such Code, the amount of the credit determined under section
30A(a)(1) of such Code for any taxable year shall be the
amount determined under section 30A(d) of such Code, except
that section 30A(d) shall be applied without regard to
paragraph (3) thereof.
(2) Separate application.--In applying section 30A(a)(3) of
such Code in the case of a corporation treated as a qualified
domestic corporation by reason of this section, section 30A
of such Code (and so much of section 936
[[Page H6205]]
of such Code as relates to such section 30A) shall be applied
separately with respect to American Samoa.
(3) Foreign tax credit allowed.--Notwithstanding section
30A(e) of such Code, the provisions of section 936(c) of such
Code shall not apply with respect to the credit allowed by
reason of this section.
(c) Definitions.--For purposes of this section, any term
which is used in this section which is also used in section
30A or 936 of such Code shall have the same meaning given
such term by such section 30A or 936.
(d) Application of Section.--Notwithstanding section 30A(h)
or section 936(j) of such Code, this section (and so much of
section 30A and section 936 of such Code as relates to this
section) shall apply to the first two taxable years of a
corporation to which subsection (a) applies which begin after
December 31, 2005, and before January 1, 2008.
SEC. 220. RESTRUCTURING OF NEW YORK LIBERTY ZONE TAX CREDITS.
(a) In General.--Part I of subchapter Y of chapter 1 is
amended by redesignating section 1400L as 1400K and by adding
at the end the following new section:
``SEC. 1400L. NEW YORK LIBERTY ZONE TAX CREDITS.
``(a) In General.--In the case of a New York Liberty Zone
governmental unit, there shall be allowed as a credit against
any taxes imposed for any payroll period by section 3402 for
which such governmental unit is liable under section 3403 an
amount equal to so much of the portion of the qualifying
project expenditure amount allocated under subsection (b)(3)
to such governmental unit for the calendar year as is
allocated by such governmental unit to such period under
subsection (b)(4).
``(b) Qualifying Project Expenditure Amount.--For purposes
of this section--
``(1) In general.--The term `qualifying project expenditure
amount' means, with respect to any calendar year, the sum
of--
``(A) the total expenditures paid or incurred during such
calendar year by all New York Liberty Zone governmental units
and the Port Authority of New York and New Jersey for any
portion of qualifying projects located wholly within the City
of New York, New York, and
``(B) any such expenditures--
``(i) paid or incurred in any preceding calendar year which
begins after the date of enactment of this section, and
``(ii) not previously allocated under paragraph (3).
``(2) Qualifying project.--The term `qualifying project'
means any transportation infrastructure project, including
highways, mass transit systems, railroads, airports, ports,
and waterways, in or connecting with the New York Liberty
Zone (as defined in section 1400K(h)), which is designated as
a qualifying project under this section jointly by the
Governor of the State of New York and the Mayor of the City
of New York, New York.
``(3) General allocation.--
``(A) In general.--The Governor of the State of New York
and the Mayor of the City of New York, New York, shall
jointly allocate to each New York Liberty Zone governmental
unit the portion of the qualifying project expenditure amount
which may be taken into account by such governmental unit
under subsection (a) for any calendar year in the credit
period.
``(B) Aggregate limit.--The aggregate amount which may be
allocated under subparagraph (A) for all calendar years in
the credit period shall not exceed $1,750,000,000.
``(C) Annual limit.--
``(i) In general.--The aggregate amount which may be
allocated under subparagraph (A) for any calendar year in the
credit period shall not exceed the sum of--
``(I) the applicable limit, plus
``(II) the aggregate amount authorized to be allocated
under this paragraph for all preceding calendar years in the
credit period which was not so allocated.
``(ii) Applicable limit.--For purposes of clause (i), the
applicable limit for any calendar year is--
``(I) in the case of calendar years 2007 through 2016,
$100,000,000,
``(II) in the case of calendar year 2017 or 2018,
$200,000,000,
``(III) in the case of calendar year 2019, $150,000,000,
``(IV) in the case of calendar year 2020 or 2021,
$100,000,000, and
``(V) in the case of any calendar year after 2021, zero.
``(D) Unallocated amounts at end of credit period.--If, as
of the close of the credit period, the amount under
subparagraph (B) exceeds the aggregate amount allocated under
subparagraph (A) for all calendar years in the credit period,
the Governor of the State of New York and the Mayor of the
City of New York, New York, may jointly allocate to New York
Liberty Zone governmental units for any calendar year in the
5-year period following the credit period an amount equal
to--
``(i) the lesser of--
``(I) such excess, or
``(II) the qualifying project expenditure amount for such
calendar year, reduced by
``(ii) the aggregate amount allocated under this
subparagraph for all preceding calendar years.
``(4) Allocation to payroll periods.--Each New York Liberty
Zone governmental unit which has been allocated a portion of
the qualifying project expenditure amount under paragraph (3)
for a calendar year may allocate such portion to payroll
periods beginning in such calendar year as such governmental
unit determines appropriate.
``(c) Carryover of Unused Allocations.--
``(1) In general.--Except as provided in paragraph (2), if
the amount allocated under subsection (b)(3) to a New York
Liberty Zone governmental unit for any calendar year exceeds
the aggregate taxes imposed by section 3402 for which such
governmental unit is liable under section 3403 for periods
beginning in such year, such excess shall be carried to the
succeeding calendar year and added to the allocation of such
governmental unit for such succeeding calendar year. No
amount may be carried under the preceding sentence to a
calendar year after 2026.
``(2) Reallocation.--If a New York Liberty Zone
governmental unit does not use an amount allocated to it
under subsection (b)(3) within the time prescribed by the
Governor of the State of New York and the Mayor of the City
of New York, New York, then such amount shall after such time
be treated for purposes of subsection (b)(3) in the same
manner as if it had never been allocated.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Credit period.--The term `credit period' means the
15-year period beginning on January 1, 2007.
``(2) New york liberty zone governmental unit.--The term
`New York Liberty Zone governmental unit' means--
``(A) the State of New York,
``(B) the City of New York, New York, and
``(C) any agency or instrumentality of such State or City.
``(3) Treatment of funds.--Any expenditure for a qualifying
project taken into account for purposes of the credit under
this section shall be considered State and local funds for
the purpose of any Federal program.
``(4) Treatment of credit amounts for purposes of
withholding taxes.--For purposes of this title, a New York
Liberty Zone governmental unit shall be treated as having
paid to the Secretary, on the day on which wages are paid to
employees, an amount equal to the amount of the credit
allowed to such entity under subsection (a) with respect to
such wages, but only if such governmental unit deducts and
withholds wages for such payroll period under section 3401
(relating to wage withholding).
``(e) Reporting.--The Governor of the State of New York and
the Mayor of the City of New York, New York, shall jointly
submit to the Secretary an annual report--
``(1) which certifies--
``(A) the qualifying project expenditure amount for the
calendar year, and
``(B) the amount allocated to each New York Liberty Zone
governmental unit under subsection (b)(3) for the calendar
year, and
``(2) includes such other information as the Secretary may
require to carry out this section.
``(f) Guidance.--The Secretary may prescribe such guidance
as may be necessary or appropriate to ensure compliance with
the purposes of this section.
``(g) Termination.--No credit shall be allowed under
subsection (a) for any calender year after 2026.''.
(b) Termination of Certain New York Liberty Zone
Benefits.--
(1) Special allowance and expensing.--Section
1400K(b)(2)(A)(v), as redesignated by subsection (a), is
amended by striking ``the termination date'' and inserting
``the date of the enactment of the Fair Minimum Wage and
Extension of Tax Relief Act or the termination date if
pursuant to a binding contract in effect on such enactment
date''.
(2) Leasehold.--Section 1400K(c)(2)(B), as so redesignated,
is amended by striking ``before January 1, 2007'' and
inserting ``on or before the date of the enactment of the
Fair Minimum Wage and Extension of Tax Relief Act or before
January 1, 2007, if pursuant to a binding contract in effect
on such enactment date''.
(c) Conforming Amendments.--
(1) Section 38(c)(3)(B) is amended by striking ``section
1400L(a)'' and inserting ``section 1400K(a)''.
(2) Section 168(k)(2)(D)(ii) is amended by striking
``section 1400L(c)(2)'' and inserting ``1400K(c)(2)''.
(3) The table of sections for part I of subchapter Y of
chapter 1 is amended by striking ``1400L'' and inserting
``1400K''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to periods
beginning after December 31, 2006.
(2) Subsection (b).--The amendments made by subsection (b)
shall take effect as if included in section 301 of the Job
Creation and Worker Assistance Act of 2002.
SEC. 221. EXTENSION OF BONUS DEPRECIATION FOR CERTAIN
QUALIFIED GULF OPPORTUNITY ZONE PROPERTY.
(a) In General.--Subsection (d) of section 1400N is amended
by adding at the end the following new paragraph:
``(6) Extension for certain property.--
``(A) In general.--In the case of any specified Gulf
Opportunity Zone extension property, paragraph (2)(A) shall
be applied without regard to clause (v) thereof.
``(B) Specified gulf opportunity zone extension property.--
For purposes of this paragraph, the term `specified Gulf
Opportunity Zone extension property' means property--
[[Page H6206]]
``(i) substantially all of the use of which is in one or
more specified portions of the GO Zone, and
``(ii) which is--
``(I) nonresidential real property or residential rental
property which is placed in service by the taxpayer on or
before December 31, 2009, or
``(II) in the case of a taxpayer who places a building
described in subclause (I) in service on or before December
31, 2009, property described in section 168(k)(2)(A)(i) if
substantially all of the use of such property is in such
building and such property is placed in service by the
taxpayer not later than 90 days after such building is placed
in service.
``(C) Specified portions of the go zone.--For purposes of
this paragraph, the term `specified portions of the GO Zone'
means those portions of the GO Zone which are in any county
or parish which is identified by the Secretary as being a
county or parish in which hurricanes occurring during 2005
damaged (in the aggregate) more than 40 percent of the
housing units in such county or parish which were occupied
(determined according to the 2000 Census).''.
(b) Extension Not Applicable to Increased Section 179
Expensing.--Paragraph (2) of section 1400N(e) is amended by
inserting ``without regard to subsection (d)(6)'' after
``subsection (d)(2)''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 101 of the Gulf
Opportunity Zone Act of 2005.
SEC. 222. AUTHORITY FOR UNDERCOVER OPERATIONS.
Paragraph (6) of section 7608(c) (relating to application
of section) is amended by striking ``2007'' both places it
appears and inserting ``2008''.
SEC. 223. DISCLOSURES OF CERTAIN TAX RETURN INFORMATION.
(a) Disclosures To Facilitate Combined Employment Tax
Reporting.--
(1) In general.--Subparagraph (B) of section 6103(d)(5)
(relating to termination) is amended by striking ``2006'' and
inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to disclosures after December 31, 2006.
(b) Disclosures Relating to Terrorist Activities.--
(1) In general.--Clause (iv) of section 6103(i)(3)(C) and
subparagraph (E) of section 6103(i)(7) are each amended by
striking ``2006'' and inserting ``2007''.
(2) Effective date.--The amendments made by paragraph (1)
shall apply to disclosures after December 31, 2006.
(c) Disclosures Relating to Student Loans.--
(1) In general.--Subparagraph (D) of section 6103(l)(13)
(relating to termination) is amended by striking ``2006'' and
inserting ``2007''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to requests made after December 31, 2006.
Subtitle B--Other Provisions
SEC. 231. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME
ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES
IN PUERTO RICO.
(a) In General.--Subsection (d) of section 199 (relating to
definitions and special rules) is amended by redesignating
paragraph (8) as paragraph (9) and by inserting after
paragraph (7) the following new paragraph:
``(8) Treatment of activities in puerto rico.--
``(A) In general.--In the case of any taxpayer with gross
receipts for any taxable year from sources within the
Commonwealth of Puerto Rico, if all of such receipts are
taxable under section 1 or 11 for such taxable year, then for
purposes of determining the domestic production gross
receipts of such taxpayer for such taxable year under
subsection (c)(4), the term `United States' shall include the
Commonwealth of Puerto Rico.
``(B) Special rule for applying wage limitation.--In the
case of any taxpayer described in subparagraph (A), for
purposes of applying the limitation under subsection (b) for
any taxable year, the determination of W-2 wages of such
taxpayer shall be made without regard to any exclusion under
section 3401(a)(8) for remuneration paid for services
performed in Puerto Rico.
``(C) Termination.--This paragraph shall apply only with
respect to the first 2 taxable years of the taxpayer
beginning after December 31, 2005, and before January 1,
2008.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2005.
SEC. 232. CREDIT FOR PRIOR YEAR MINIMUM TAX LIABILITY MADE
REFUNDABLE AFTER PERIOD OF YEARS.
(a) In General.--Section 53 (relating to credit for prior
year minimum tax liability) is amended by adding at the end
the following new subsection:
``(e) Special Rule for Individuals With Long-Term Unused
Credits.--
``(1) In general.--If an individual has a long-term unused
minimum tax credit for any taxable year beginning before
January 1, 2013, the amount determined under subsection (c)
for such taxable year shall not be less than the AMT
refundable credit amount for such taxable year.
``(2) Amt refundable credit amount.--For purposes of
paragraph (1)--
``(A) In general.--The term `AMT refundable credit amount'
means, with respect to any taxable year, the amount equal to
the greater of--
``(i) the lesser of--
``(I) $5,000, or
``(II) the amount of long-term unused minimum tax credit
for such taxable year, or
``(ii) 20 percent of the amount of such credit.
``(B) Phaseout of amt refundable credit amount.--
``(i) In general.--In the case of an individual whose
adjusted gross income for any taxable year exceeds the
threshold amount (within the meaning of section
151(d)(3)(C)), the AMT refundable credit amount determined
under subparagraph (A) for such taxable year shall be reduced
by the applicable percentage (within the meaning of section
151(d)(3)(B)).
``(ii) Adjusted gross income.--For purposes of clause (i),
adjusted gross income shall be determined without regard to
sections 911, 931, and 933.
``(3) Long-term unused minimum tax credit.--
``(A) In general.--For purposes of this subsection, the
term `long-term unused minimum tax credit' means, with
respect to any taxable year, the portion of the minimum tax
credit determined under subsection (b) attributable to the
adjusted net minimum tax for taxable years before the 3rd
taxable year immediately preceding such taxable year.
``(B) First-in, first-out ordering rule.--For purposes of
subparagraph (A), credits shall be treated as allowed under
subsection (a) on a first-in, first-out basis.
``(4) Credit refundable.--For purposes of this title (other
than this section), the credit allowed by reason of this
subsection shall be treated as if it were allowed under
subpart C.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by striking ``and 34''
and inserting ``34, and 53(e)''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 53(e)'' after
``section 35''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 233. RETURNS REQUIRED IN CONNECTION WITH CERTAIN
OPTIONS.
(a) In General.--So much of section 6039(a) as follows
paragraph (2) is amended to read as follows:
``shall, for such calendar year, make a return at such time
and in such manner, and setting forth such information, as
the Secretary may by regulations prescribe.''.
(b) Statements to Persons With Respect to Whom Information
Is Furnished.--Section 6039 is amended by redesignating
subsections (b) and (c) as subsection (c) and (d),
respectively, and by inserting after subsection (a) the
following new subsection:
``(b) Statements to Be Furnished to Persons With Respect to
Whom Information Is Reported.--Every corporation making a
return under subsection (a) shall furnish to each person
whose name is set forth in such return a written statement
setting forth such information as the Secretary may by
regulations prescribe. The written statement required under
the preceding sentence shall be furnished to such person on
or before January 31 of the year following the calendar year
for which the return under subsection (a) was made.''.
(c) Conforming Amendments.--
(1) Section 6724(d)(1)(B) is amended by striking ``or'' at
the end of clause (xvii), by striking ``and'' at the end of
clause (xviii) and inserting ``or'', and by adding at the end
the following new clause:
``(xix) section 6039(a) (relating to returns required with
respect to certain options), and''.
(2) Section 6724(d)(2)(B) is amended by striking ``section
6039(a)'' and inserting ``section 6039(b)''.
(3) The heading of section 6039 and the item relating to
such section in the table of sections of subpart A of part
III of subchapter A of chapter 61 of such Code are each
amended by striking ``Information'' and inserting
``Returns''.
(4) The heading of subsection (a) of section 6039 is
amended by striking ``Furnishing of Information'' and
inserting ``Requirement of Reporting''.
(d) Effective Date.--The amendments made by this section
shall apply to calendar years beginning after the date of the
enactment of this Act.
SEC. 234. PARTIAL EXPENSING FOR ADVANCED MINE SAFETY
EQUIPMENT.
(a) In General.--Part VI of subchapter B of chapter 1 is
amended by inserting after section 179D the following new
section:
``SEC. 179E. ELECTION TO EXPENSE ADVANCED MINE SAFETY
EQUIPMENT.
``(a) Treatment as Expenses.--A taxpayer may elect to treat
50 percent of the cost of any qualified advanced mine safety
equipment property as an expense which is not chargeable to
capital account. Any cost so treated shall be allowed as a
deduction for the taxable year in which the qualified
advanced mine safety equipment property is placed in service.
``(b) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the
tax imposed by this chapter for the taxable year. Such
election shall specify the advanced mine safety equipment
property to which the election applies and shall be made in
such manner as the Secretary may by regulations prescribe.
[[Page H6207]]
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(c) Qualified Advanced Mine Safety Equipment Property.--
For purposes of this section, the term `qualified advanced
mine safety equipment property' means any advanced mine
safety equipment property for use in any underground mine
located in the United States--
``(1) the original use of which commences with the
taxpayer, and
``(2) which is placed in service by the taxpayer after the
date of the enactment of this section.
``(d) Advanced Mine Safety Equipment Property.--For
purposes of this section, the term `advanced mine safety
equipment property' means any of the following:
``(1) Emergency communication technology or device which is
used to allow a miner to maintain constant communication with
an individual who is not in the mine.
``(2) Electronic identification and location device which
allows an individual who is not in the mine to track at all
times the movements and location of miners working in or at
the mine.
``(3) Emergency oxygen-generating, self-rescue device which
provides oxygen for at least 90 minutes.
``(4) Pre-positioned supplies of oxygen which (in
combination with self-rescue devices) can be used to provide
each miner on a shift, in the event of an accident or other
event which traps the miner in the mine or otherwise
necessitates the use of such a self-rescue device, the
ability to survive for at least 48 hours.
``(5) Comprehensive atmospheric monitoring system which
monitors the levels of carbon monoxide, methane, and oxygen
that are present in all areas of the mine and which can
detect smoke in the case of a fire in a mine.
``(e) Coordination With Section 179.--No expenditures shall
be taken into account under subsection (a) with respect to
the portion of the cost of any property specified in an
election under section 179.
``(f) Reporting.--No deduction shall be allowed under
subsection (a) to any taxpayer for any taxable year unless
such taxpayer files with the Secretary a report containing
such information with respect to the operation of the mines
of the taxpayer as the Secretary shall require.
``(g) Termination.--This section shall not apply to
property placed in service after December 31, 2008.''.
(b) Conforming Amendments.--
(1) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (J), by striking the period at the end of
subparagraph (K) and inserting ``, or'', and by inserting
after subparagraph (K) the following new subparagraph:
``(L) expenditures for which a deduction is allowed under
section 179E.''.
(2) Section 312(k)(3)(B) is amended by striking ``or 179D''
each place it appears in the heading and text thereof and
inserting ``179D, or 179E''.
(3) Paragraphs (2)(C) and (3)(C) of section 1245(a) are
each amended by inserting ``179E,'' after ``179D,''.
(4) The table of sections for part VI of subchapter B of
chapter 1 is amended by inserting after the item relating to
section 179D the following new item:
``Sec. 179E. Election to expense advanced mine safety equipment.''.
(c) Effective Date.--The amendments made by this section
shall apply to costs paid or incurred after the date of the
enactment of this Act.
SEC. 235. MINE RESCUE TEAM TRAINING TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by adding at the end the following new section:
``SEC. 45N. MINE RESCUE TEAM TRAINING CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the
mine rescue team training credit determined under this
section with respect to each qualified mine rescue team
employee of an eligible employer for any taxable year is an
amount equal to the lesser of--
``(1) 20 percent of the amount paid or incurred by the
taxpayer during the taxable year with respect to the training
program costs of such qualified mine rescue team employee
(including wages of such employee while attending such
program), or
``(2) $10,000.
``(b) Qualified Mine Rescue Team Employee.--For purposes of
this section, the term `qualified mine rescue team employee'
means with respect to any taxable year any full-time employee
of the taxpayer who is--
``(1) a miner eligible for more than 6 months of such
taxable year to serve as a mine rescue team member as a
result of completing, at a minimum, an initial 20-hour course
of instruction as prescribed by the Mine Safety and Health
Administration's Office of Educational Policy and
Development, or
``(2) a miner eligible for more than 6 months of such
taxable year to serve as a mine rescue team member by virtue
of receiving at least 40 hours of refresher training in such
instruction.
``(c) Eligible Employer.--For purposes of this section, the
term `eligible employer' means any taxpayer which employs
individuals as miners in underground mines in the United
States.
``(d) Wages.--For purposes of this section, the term
`wages' has the meaning given to such term by subsection (b)
of section 3306 (determined without regard to any dollar
limitation contained in such section).
``(e) Termination.--This section shall not apply to taxable
years beginning after December 31, 2008.''.
(b) Credit Made Part of General Business Credit.--Section
38(b) is amended by striking ``and'' at the end of paragraph
(29), by striking the period at the end of paragraph (30) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(31) the mine rescue team training credit determined
under section 45N(a).''.
(c) No Double Benefit.--Section 280C is amended by adding
at the end the following new subsection:
``(e) Mine Rescue Team Training Credit.--No deduction shall
be allowed for that portion of the expenses otherwise
allowable as a deduction for the taxable year which is equal
to the amount of the credit determined for the taxable year
under section 45N(a).''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:
``Sec. 45N. Mine rescue team training credit.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2005.
SEC. 236. WHISTLEBLOWER REFORMS.
(a) Awards to Whistleblowers.--
(1) In general.--Section 7623 (relating to expenses of
detection of underpayments and fraud, etc.) is amended--
(A) by striking ``The Secretary'' and inserting ``(a) In
General.--The Secretary'',
(B) by striking ``and'' at the end of paragraph (1) and
inserting ``or'',
(C) by striking ``(other than interest)'', and
(D) by adding at the end the following new subsection:
``(b) Awards to Whistleblowers.--
``(1) In general.--If the Secretary proceeds with any
administrative or judicial action described in subsection (a)
based on information brought to the Secretary's attention by
an individual, such individual shall, subject to paragraph
(2), receive as an award at least 15 percent but not more
than 30 percent of the collected proceeds (including
penalties, interest, additions to tax, and additional
amounts) resulting from the action (including any related
actions) or from any settlement in response to such action.
The determination of the amount of such award by the
Whistleblower Office shall depend upon the extent to which
the individual substantially contributed to such action.
``(2) Award in case of less substantial contribution.--
``(A) In general.--In the event the action described in
paragraph (1) is one which the Whistleblower Office
determines to be based principally on disclosures of specific
allegations (other than information provided by the
individual described in paragraph (1)) resulting from a
judicial or administrative hearing, from a governmental
report, hearing, audit, or investigation, or from the news
media, the Whistleblower Office may award such sums as it
considers appropriate, but in no case more than 10 percent of
the collected proceeds (including penalties, interest,
additions to tax, and additional amounts) resulting from the
action (including any related actions) or from any settlement
in response to such action, taking into account the
significance of the individual's information and the role of
such individual and any legal representative of such
individual in contributing to such action.
``(B) Nonapplication of paragraph where individual is
original source of information.--Subparagraph (A) shall not
apply if the information resulting in the initiation of the
action described in paragraph (1) was originally provided by
the individual described in paragraph (1).
``(3) Reduction in or denial of award.--If the
Whistleblower Office determines that the claim for an award
under paragraph (1) or (2) is brought by an individual who
planned and initiated the actions that led to the
underpayment of tax or actions described in subsection
(a)(2), then the Whistleblower Office may appropriately
reduce such award. If such individual is convicted of
criminal conduct arising from the role described in the
preceding sentence, the Whistleblower Office shall deny any
award.
``(4) Appeal of award determination.--Any determination
regarding an award under paragraph (1), (2), or (3) may,
within 30 days of such determination, be appealed to the Tax
Court (and the Tax Court shall have jurisdiction with respect
to such matter).
``(5) Application of this subsection.--This subsection
shall apply with respect to any action--
``(A) against any taxpayer, but in the case of any
individual, only if such individual's gross income exceeds
$200,000 for any taxable year subject to such action, and
``(B) if the tax, penalties, interest, additions to tax,
and additional amounts in dispute exceed $2,000,000.
``(6) Additional rules.--
``(A) No contract necessary.--No contract with the Internal
Revenue Service is necessary for any individual to receive an
award under this subsection.
``(B) Representation.--Any individual described in
paragraph (1) or (2) may be represented by counsel.
``(C) Submission of information.--No award may be made
under this subsection
[[Page H6208]]
based on information submitted to the Secretary unless such
information is submitted under penalty of perjury.''.
(2) Assignment to special trial judges.--
(A) In general.--Section 7443A(b) (relating to proceedings
which may be assigned to special trial judges) is amended by
striking ``and'' at the end of paragraph (4), by
redesignating paragraph (5) as paragraph (6), and by
inserting after paragraph (4) the following new paragraph:
``(5) any proceeding under section 7623(b)(4), and''.
(B) Conforming amendment.--Section 7443A(c) is amended by
striking ``or (4)'' and inserting ``(4), or (5)''.
(3) Deduction allowed whether or not taxpayer itemizes.--
Subsection (a) of section 62 (relating to general rule
defining adjusted gross income) is amended by inserting after
paragraph (20) the following new paragraph:
``(21) Attorneys fees relating to awards to
whistleblowers.--Any deduction allowable under this chapter
for attorney fees and court costs paid by, or on behalf of,
the taxpayer in connection with any award under section
7623(b) (relating to awards to whistleblowers). The preceding
sentence shall not apply to any deduction in excess of the
amount includible in the taxpayer's gross income for the
taxable year on account of such award.''.
(b) Whistleblower Office.--
(1) In general.--Not later than the date which is 12 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall issue guidance for the operation of a
whistleblower program to be administered in the Internal
Revenue Service by an office to be known as the
``Whistleblower Office'' which--
(A) shall at all times operate at the direction of the
Commissioner of Internal Revenue and coordinate and consult
with other divisions in the Internal Revenue Service as
directed by the Commissioner of Internal Revenue,
(B) shall analyze information received from any individual
described in section 7623(b) of the Internal Revenue Code of
1986 and either investigate the matter itself or assign it to
the appropriate Internal Revenue Service office, and
(C) in its sole discretion, may ask for additional
assistance from such individual or any legal representative
of such individual.
(2) Request for assistance.--The guidance issued under
paragraph (1) shall specify that any assistance requested
under paragraph (1)(C) shall be under the direction and
control of the Whistleblower Office or the office assigned to
investigate the matter under paragraph (1)(A). No individual
or legal representative whose assistance is so requested may
by reason of such request represent himself or herself as an
employee of the Federal Government.
(c) Report by Secretary.--The Secretary of the Treasury
shall each year conduct a study and report to Congress on the
use of section 7623 of the Internal Revenue Code of 1986,
including--
(1) an analysis of the use of such section during the
preceding year and the results of such use, and
(2) any legislative or administrative recommendations
regarding the provisions of such section and its application.
(d) Effective Date.--The amendments made by subsection (a)
shall apply to information provided on or after the date of
the enactment of this Act.
SEC. 237. FRIVOLOUS TAX SUBMISSIONS.
(a) Civil Penalties.--Section 6702 is amended to read as
follows:
``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.
``(a) Civil Penalty for Frivolous Tax Returns.--A person
shall pay a penalty of $5,000 if--
``(1) such person files what purports to be a return of a
tax imposed by this title but which--
``(A) does not contain information on which the substantial
correctness of the self-assessment may be judged, or
``(B) contains information that on its face indicates that
the self-assessment is substantially incorrect, and
``(2) the conduct referred to in paragraph (1)--
``(A) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(B) reflects a desire to delay or impede the
administration of Federal tax laws.
``(b) Civil Penalty for Specified Frivolous Submissions.--
``(1) Imposition of penalty.--Except as provided in
paragraph (3), any person who submits a specified frivolous
submission shall pay a penalty of $5,000.
``(2) Specified frivolous submission.--For purposes of this
section--
``(A) Specified frivolous submission.--The term `specified
frivolous submission' means a specified submission if any
portion of such submission--
``(i) is based on a position which the Secretary has
identified as frivolous under subsection (c), or
``(ii) reflects a desire to delay or impede the
administration of Federal tax laws.
``(B) Specified submission.--The term `specified
submission' means--
``(i) a request for a hearing under--
``(I) section 6320 (relating to notice and opportunity for
hearing upon filing of notice of lien), or
``(II) section 6330 (relating to notice and opportunity for
hearing before levy), and
``(ii) an application under--
``(I) section 6159 (relating to agreements for payment of
tax liability in installments),
``(II) section 7122 (relating to compromises), or
``(III) section 7811 (relating to taxpayer assistance
orders).
``(3) Opportunity to withdraw submission.--If the Secretary
provides a person with notice that a submission is a
specified frivolous submission and such person withdraws such
submission within 30 days after such notice, the penalty
imposed under paragraph (1) shall not apply with respect to
such submission.
``(c) Listing of Frivolous Positions.--The Secretary shall
prescribe (and periodically revise) a list of positions which
the Secretary has identified as being frivolous for purposes
of this subsection. The Secretary shall not include in such
list any position that the Secretary determines meets the
requirement of section 6662(d)(2)(B)(ii)(II).
``(d) Reduction of Penalty.--The Secretary may reduce the
amount of any penalty imposed under this section if the
Secretary determines that such reduction would promote
compliance with and administration of the Federal tax laws.
``(e) Penalties in Addition to Other Penalties.--The
penalties imposed by this section shall be in addition to any
other penalty provided by law.''.
(b) Treatment of Frivolous Requests for Hearings Before
Levy.--
(1) Frivolous requests disregarded.--Section 6330 (relating
to notice and opportunity for hearing before levy) is amended
by adding at the end the following new subsection:
``(g) Frivolous Requests for Hearing, Etc.--Notwithstanding
any other provision of this section, if the Secretary
determines that any portion of a request for a hearing under
this section or section 6320 meets the requirement of clause
(i) or (ii) of section 6702(b)(2)(A), then the Secretary may
treat such portion as if it were never submitted and such
portion shall not be subject to any further administrative or
judicial review.''.
(2) Preclusion from raising frivolous issues at hearing.--
Section 6330(c)(4) is amended--
(A) by striking ``(A)'' and inserting ``(A)(i)'';
(B) by striking ``(B)'' and inserting ``(ii)'';
(C) by striking the period at the end of the first sentence
and inserting ``; or''; and
(D) by inserting after subparagraph (A)(ii) (as so
redesignated) the following:
``(B) the issue meets the requirement of clause (i) or (ii)
of section 6702(b)(2)(A).''.
(3) Statement of grounds.--Section 6330(b)(1) is amended by
striking ``under subsection (a)(3)(B)'' and inserting ``in
writing under subsection (a)(3)(B) and states the grounds for
the requested hearing''.
(c) Treatment of Frivolous Requests for Hearings Upon
Filing of Notice of Lien.--Section 6320 is amended--
(1) in subsection (b)(1), by striking ``under subsection
(a)(3)(B)'' and inserting ``in writing under subsection
(a)(3)(B) and states the grounds for the requested hearing'',
and
(2) in subsection (c), by striking ``and (e)'' and
inserting ``(e), and (g)''.
(d) Treatment of Frivolous Applications for Offers-in-
Compromise and Installment Agreements.--Section 7122 is
amended by adding at the end the following new subsection:
``(f) Frivolous Submissions, Etc.--Notwithstanding any
other provision of this section, if the Secretary determines
that any portion of an application for an offer-in-compromise
or installment agreement submitted under this section or
section 6159 meets the requirement of clause (i) or (ii) of
section 6702(b)(2)(A), then the Secretary may treat such
portion as if it were never submitted and such portion shall
not be subject to any further administrative or judicial
review.''.
(e) Clerical Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by striking the item
relating to section 6702 and inserting the following new
item:
``Sec. 6702. Frivolous tax submissions.''.
(f) Effective Date.--The amendments made by this section
shall apply to submissions made and issues raised after the
date on which the Secretary first prescribes a list under
section 6702(c) of the Internal Revenue Code of 1986, as
amended by subsection (a).
SEC. 238. ADDITION OF MENINGOCOCCAL AND HUMAN PAPILLOMAVIRUS
VACCINES TO LIST OF TAXABLE VACCINES.
(a) Meningococcal Vaccine.--Section 4132(a)(1) (defining
taxable vaccine) is amended by adding at the end the
following new subparagraph:
``(O) Any meningococcal vaccine.''.
(b) Human Papillomavirus Vaccine.--Section 4132(a)(1), as
amended by subsection (a), is amended by adding at the end
the following new subparagraph:
``(P) Any vaccine against the human papillomavirus.''.
(c) Effective Date.--
(1) Sales, etc.--The amendments made by this section shall
apply to sales and uses on or after the first day of the
first month which begins more than 4 weeks after the date of
the enactment of this Act.
(2) Deliveries.--For purposes of paragraph (1) and section
4131 of the Internal Revenue Code of 1986, in the case of
sales on or before the effective date described in such
paragraph for which delivery is made after such date, the
delivery date shall be considered the sale date.
[[Page H6209]]
SEC. 239. CLARIFICATION OF TAXATION OF CERTAIN SETTLEMENT
FUNDS MADE PERMANENT.
(a) In General.--Subsection (g) of section 468B, as amended
by section 201 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking paragraph
(3).
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 201 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 240. MODIFICATION OF ACTIVE BUSINESS DEFINITION UNDER
SECTION 355 MADE PERMANENT.
(a) In General.--Subparagraphs (A) and (D) of section
355(b)(3), as amended by section 202 of the Tax Increase
Prevention and Reconciliation Act of 2005, are each amended
by striking ``and on or before December 31, 2010''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in section 202 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 241. REVISION OF STATE VETERANS LIMIT MADE PERMANENT.
(a) In General.--Subparagraph (B) of section 143(l)(3), as
amended by section 203 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking clause
(iv).
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 203 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 242. CAPITAL GAINS TREATMENT FOR CERTAIN SELF-CREATED
MUSICAL WORKS MADE PERMANENT.
(a) In General.--Paragraph (3) of section 1221(b), as
amended by section 204 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking ``before
January 1, 2011,''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 204 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 243. REDUCTION IN MINIMUM VESSEL TONNAGE WHICH QUALIFIES
FOR TONNAGE TAX MADE PERMANENT.
(a) In General.--Paragraph (4) of section 1355(a), as
amended by section 205 of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking ``10,000
(6,000, in the case of taxable years beginning after December
31, 2005, and ending before January 1, 2011)'' and inserting
``6,000''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 205 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 244. MODIFICATION OF SPECIAL ARBITRAGE RULE FOR CERTAIN
FUNDS MADE PERMANENT.
(a) In General.--Section 206 of the Tax Increase Prevention
and Reconciliation Act of 2005 is amended by striking ``and
before August 31, 2009''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 206 of the Tax
Increase Prevention and Reconciliation Act of 2005.
SEC. 245. GREAT LAKES DOMESTIC SHIPPING TO NOT DISQUALIFY
VESSEL FROM TONNAGE TAX.
(a) In General.--Section 1355 (relating to definitions and
special rules) is amended by redesignating subsection (g) as
subsection (h) and by inserting after subsection (f) the
following new subsection:
``(g) Great Lakes Domestic Shipping to Not Disqualify
Vessel.--
``(1) In general.--If the electing corporation elects (at
such time and in such manner as the Secretary may require) to
apply this subsection for any taxable year to any qualifying
vessel which is used in qualified zone domestic trade during
the taxable year--
``(A) solely for purposes of subsection (a)(4), such use
shall be treated as use in United States foreign trade (and
not as use in United States domestic trade), and
``(B) subsection (f) shall not apply with respect to such
vessel for such taxable year.
``(2) Effect of temporarily operating vessel in united
states domestic trade.--In the case of a qualifying vessel to
which this subsection applies--
``(A) In general.--An electing corporation shall be treated
as using such vessel in qualified zone domestic trade during
any period of temporary use in the United States domestic
trade (other than qualified zone domestic trade) if the
electing corporation gives timely notice to the Secretary
stating--
``(i) that it temporarily operates or has operated in the
United States domestic trade (other than qualified zone
domestic trade) a qualifying vessel which had been used in
the United States foreign trade or qualified zone domestic
trade, and
``(ii) its intention to resume operation of the vessel in
the United States foreign trade or qualified zone domestic
trade.
``(B) Notice.--Notice shall be deemed timely if given not
later than the due date (including extensions) for the
corporation's tax return for the taxable year in which the
temporary cessation begins.
``(C) Period disregard in effect.--The period of temporary
use under subparagraph (A) continues until the earlier of the
date of which--
``(i) the electing corporation abandons its intention to
resume operations of the vessel in the United States foreign
trade or qualified zone domestic trade, or
``(ii) the electing corporation resumes operation of the
vessel in the United States foreign trade or qualified zone
domestic trade.
``(D) No disregard if domestic trade use exceeds 30 days.--
Subparagraph (A) shall not apply to any qualifying vessel
which is operated in the United States domestic trade (other
than qualified zone domestic trade) for more than 30 days
during the taxable year.
``(3) Allocation of income and deductions to qualifying
shipping activities.--In the case of a qualifying vessel to
which this subsection applies, the Secretary shall prescribe
rules for the proper allocation of income, expenses, losses,
and deductions between the qualified shipping activities and
the other activities of such vessel.
``(4) Qualified zone domestic trade.--For purposes of this
subsection--
``(A) In general.--The term `qualified zone domestic trade'
means the transportation of goods or passengers between
places in the qualified zone if such transportation is in the
United States domestic trade.
``(B) Qualified zone.--The term `qualified zone' means the
Great Lakes Waterway and the St. Lawrence Seaway.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 246. USE OF QUALIFIED MORTGAGE BONDS TO FINANCE
RESIDENCES FOR VETERANS WITHOUT REGARD TO
FIRST-TIME HOMEBUYER REQUIREMENT.
(a) In General.--Section 143(d)(2) (relating to exceptions
to 3-year requirement) is amended by striking ``and'' at the
end of subparagraph (B), by adding ``and'' at the end of
subparagraph (C), and by inserting after subparagraph (C) the
following new subparagraph:
``(D) in the case of bonds issued after the date of the
enactment of this subparagraph and before January 1, 2008,
financing of any residence for a veteran (as defined in
section 101 of title 38, United States Code), if such veteran
has not previously qualified for and received such financing
by reason of this subparagraph,''.
(b) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act.
SEC. 247. EXCLUSION OF GAIN FROM SALE OF A PRINCIPAL
RESIDENCE BY CERTAIN EMPLOYEES OF THE
INTELLIGENCE COMMUNITY.
(a) In General.--Subparagraph (A) of section 121(d)(9)
(relating to exclusion of gain from sale of principal
residence) is amended by striking ``duty'' and all that
follows and inserting ``duty--
``(i) as a member of the uniformed services,
``(ii) as a member of the Foreign Service of the United
States, or
``(iii) as an employee of the intelligence community.''.
(b) Employee of Intelligence Community Defined.--
Subparagraph (C) of section 121(d)(9) is amended by
redesignating clause (iv) as clause (v) and by inserting
after clause (iii) the following new clause:
``(iv) Employee of intelligence community.--The term
`employee of the intelligence community' means an employee
(as defined by section 2105 of title 5, United States Code)
of--
``(I) the Office of the Director of National Intelligence,
``(II) the Central Intelligence Agency,
``(III) the National Security Agency,
``(IV) the Defense Intelligence Agency,
``(V) the National Geospatial-Intelligence Agency,
``(VI) the National Reconnaissance Office,
``(VII) any other office within the Department of Defense
for the collection of specialized national intelligence
through reconnaissance programs,
``(VIII) any of the intelligence elements of the Army, the
Navy, the Air Force, the Marine Corps, the Federal Bureau of
Investigation, the Department of Treasury, the Department of
Energy, and the Coast Guard,
``(IX) the Bureau of Intelligence and Research of the
Department of State, or
``(X) any of the elements of the Department of Homeland
Security concerned with the analyses of foreign intelligence
information.''.
(c) Special Rule.--Subparagraph (C) of section 121(d)(9),
as amended by subsection (b), is amended by adding at the end
the following new clause:
``(vi) Special rule relating to intelligence community.--An
employee of the intelligence community shall not be treated
as serving on qualified extended duty unless such duty is at
a duty station located outside the United States.''.
(d) Conforming Amendment.--The heading for section
121(d)(9) is amended to read as follows: ``Uniformed
services, foreign service, and intelligence community''.
(e) Effective Date.--The amendments made by this section
shall apply to sales or exchanges after the date of the
enactment of this Act and before January 1, 2011.
SEC. 248. TREATMENT OF COKE AND COKE GAS.
(a) Nonapplication of Phaseout.--Section 45K(g)(2) is
amended by adding at the end the following new subparagraph:
``(D) Nonapplication of phaseout.--Subsection (b)(1) shall
not apply.''.
(b) Clarification of Qualifying Facility.--Section
45K(g)(1) is amended by inserting ``(other than from
petroleum based products)'' after ``coke or coke gas''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 1321 of the
Energy Policy Act of 2005.
[[Page H6210]]
SEC. 249. SALE OF PROPERTY BY JUDICIAL OFFICERS.
(a) In General.--Section 1043(b) (relating to the sale of
property to comply with conflict-of-interest requirements) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by inserting ``, or a judicial
officer,'' after ``an officer or employee of the executive
branch''; and
(B) in subparagraph (B), by inserting ``judicial canon,''
after ``any statute, regulation, rule,'';
(2) in paragraph (2)--
(A) in subparagraph (A), by inserting ``judicial canon,''
after ``any Federal conflict of interest statute, regulation,
rule,''; and
(B) in subparagraph (B), by inserting after ``the Director
of the Office of Government Ethics,'' the following: ``in the
case of executive branch officers or employees, or by the
Judicial Conference of the United States (or its designee),
in the case of judicial officers,''; and
(3) in paragraph (5)(B), by inserting ``judicial canon,''
after ``any statute, regulation, rule,''.
(b) Judicial Officer Defined.--Section 1043(b) is amended
by adding at the end the following new paragraph:
``(6) Judicial officer.--The term `judicial officer' means
the Chief Justice of the United States, the Associate
Justices of the Supreme Court, and the judges of the United
States courts of appeals, United States district courts,
including the district courts in Guam, the Northern Mariana
Islands, and the Virgin Islands, Court of Appeals for the
Federal Circuit, Court of International Trade, Tax Court,
Court of Federal Claims, Court of Appeals for Veterans
Claims, United States Court of Appeals for the Armed Forces,
and any court created by Act of Congress, the judges of which
are entitled to hold office during good behavior.''.
(c) Effective Date.--The amendments made by this section
shall apply to sales after the date of enactment of this Act.
SEC. 250. PREMIUMS FOR MORTGAGE INSURANCE.
(a) In General.--Section 163(h)(3) (relating to qualified
residence interest) is amended by adding at the end the
following new subparagraph:
``(E) Mortgage insurance premiums treated as interest.--
``(i) In general.--Premiums paid or accrued for qualified
mortgage insurance by a taxpayer during the taxable year in
connection with acquisition indebtedness with respect to a
qualified residence of the taxpayer shall be treated for
purposes of this section as interest which is qualified
residence interest.
``(ii) Phaseout.--The amount otherwise treated as interest
under clause (i) shall be reduced (but not below zero) by 10
percent of such amount for each $1,000 ($500 in the case of a
married individual filing a separate return) (or fraction
thereof) that the taxpayer's adjusted gross income for the
taxable year exceeds $100,000 ($50,000 in the case of a
married individual filing a separate return).
``(iii) Limitation.--Clause (i) shall not apply with
respect to any mortgage insurance contracts issued before
January 1, 2007.
``(iv) Termination.--Clause (i) shall not apply to
amounts--
``(I) paid or accrued after December 31, 2007, or
``(II) properly allocable to any period after such date.''.
(b) Definition and Special Rules.--Section 163(h)(4)
(relating to other definitions and special rules) is amended
by adding at the end the following new subparagraphs:
``(E) Qualified mortgage insurance.--The term `qualified
mortgage insurance' means--
``(i) mortgage insurance provided by the Veterans
Administration, the Federal Housing Administration, or the
Rural Housing Administration, and
``(ii) private mortgage insurance (as defined by section 2
of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this subparagraph).
``(F) Special rules for prepaid qualified mortgage
insurance.--Any amount paid by the taxpayer for qualified
mortgage insurance that is properly allocable to any mortgage
the payment of which extends to periods that are after the
close of the taxable year in which such amount is paid shall
be chargeable to capital account and shall be treated as paid
in such periods to which so allocated. No deduction shall be
allowed for the unamortized balance of such account if such
mortgage is satisfied before the end of its term. The
preceding sentences shall not apply to amounts paid for
qualified mortgage insurance provided by the Veterans
Administration or the Rural Housing Administration.''.
(c) Information Returns Relating to Mortgage Insurance.--
Section 6050H (relating to returns relating to mortgage
interest received in trade or business from individuals) is
amended by adding at the end the following new subsection:
``(h) Returns Relating to Mortgage Insurance Premiums.--
``(1) In general.--The Secretary may prescribe, by
regulations, that any person who, in the course of a trade or
business, receives from any individual premiums for mortgage
insurance aggregating $600 or more for any calendar year,
shall make a return with respect to each such individual.
Such return shall be in such form, shall be made at such
time, and shall contain such information as the Secretary may
prescribe.
``(2) Statement to be furnished to individuals with respect
to whom information is required.--Every person required to
make a return under paragraph (1) shall furnish to each
individual with respect to whom a return is made a written
statement showing such information as the Secretary may
prescribe. Such written statement shall be furnished on or
before January 31 of the year following the calendar year for
which the return under paragraph (1) was required to be made.
``(3) Special rules.--For purposes of this subsection--
``(A) rules similar to the rules of subsection (c) shall
apply, and
``(B) the term `mortgage insurance' means--
``(i) mortgage insurance provided by the Veterans
Administration, the Federal Housing Administration, or the
Rural Housing Administration, and
``(ii) private mortgage insurance (as defined by section 2
of the Homeowners Protection Act of 1998 (12 U.S.C. 4901), as
in effect on the date of the enactment of this
subsection).''.
(d) Effective Date.--The amendments made by this section
shall apply to amounts paid or accrued after December 31,
2006.
SEC. 251. MODIFICATION OF REFUNDS FOR KEROSENE USED IN
AVIATION.
(a) In General.--Paragraph (4) of section 6427(l) (relating
to nontaxable uses of diesel fuel and kerosene) is amended to
read as follows:
``(4) Refunds for kerosene used in aviation.--
``(A) Kerosene used in commercial aviation.--In the case of
kerosene used in commercial aviation (as defined in section
4083(b)) (other than supplies for vessels or aircraft within
the meaning of section 4221(d)(3)), paragraph (1) shall not
apply to so much of the tax imposed by section 4041 or 4081,
as the case may be, as is attributable to--
``(i) the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section, and
``(ii) so much of the rate of tax specified in section
4041(c) or 4081(a)(2)(A)(iii), as the case may be, as does
not exceed 4.3 cents per gallon.
``(B) Kerosene used in noncommercial aviation.--In the case
of kerosene used in aviation that is not commercial aviation
(as so defined) (other than any use which is exempt from the
tax imposed by section 4041(c) other than by reason of a
prior imposition of tax), paragraph (1) shall not apply to--
``(i) any tax imposed by section 4041(c), and
``(ii) so much of the tax imposed by section 4081 as is
attributable to--
``(I) the Leaking Underground Storage Tank Trust Fund
financing rate imposed by such section, and
``(II) so much of the rate of tax specified in section
4081(a)(2)(A)(iii) as does not exceed the rate specified in
section 4081(a)(2)(C)(ii).
``(C) Payments to ultimate, registered vendor.--
``(i) In general.--With respect to any kerosene used in
aviation (other than kerosene described in clause (ii) or
kerosene to which paragraph (5) applies), if the ultimate
purchaser of such kerosene waives (at such time and in such
form and manner as the Secretary shall prescribe) the right
to payment under paragraph (1) and assigns such right to the
ultimate vendor, then the Secretary shall pay the amount
which would be paid under paragraph (1) to such ultimate
vendor, but only if such ultimate vendor--
``(I) is registered under section 4101, and
``(II) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).
``(ii) Payments for kerosene used in noncommercial
aviation.--The amount which would be paid under paragraph (1)
with respect to any kerosene to which subparagraph (B)
applies shall be paid only to the ultimate vendor of such
kerosene. A payment shall be made to such vendor if such
vendor--
``(I) is registered under section 4101, and
``(II) meets the requirements of subparagraph (A), (B), or
(D) of section 6416(a)(1).''.
(b) Conforming Amendments.--
(1) Section 6427(l) is amended by striking paragraph (5)
and by redesignating paragraph (6) as paragraph (5).
(2) Section 4082(d)(2)(B) is amended by striking ``section
6427(l)(6)(B)'' and inserting ``section 6427(l)(5)(B)''.
(3) Section 6427(i)(4)(A) is amended--
(A) by striking ``paragraph (4)(B), (5), or (6)'' each
place it appears and inserting ``paragraph (4)(C) or (5)'',
and
(B) by striking ``(l)(5), and (l)(6)'' and inserting
``(l)(4)(C)(ii), and (l)(5)''.
(4) Section 6427(l)(1) is amended by striking ``paragraph
(4)(B)'' and inserting ``paragraph (4)(C)(i)''.
(5) Section 9502(d) is amended--
(A) in paragraph (2), by striking ``and (l)(5)'', and
(B) in paragraph (3), by striking ``or (5)''.
(6) Section 9503(c)(7) is amended--
(A) by amending subparagraphs (A) and (B) to read as
follows:
``(A) 4.3 cents per gallon of kerosene subject to section
6427(l)(4)(A) with respect to which a payment has been made
by the Secretary under section 6427(l), and
``(B) 21.8 cents per gallon of kerosene subject to section
6427(l)(4)(B) with respect to which a payment has been made
by the Secretary under section 6427(l).'', and
(B) in the matter following subparagraph (B), by striking
``or (5)''.
(c) Effective Date.--
[[Page H6211]]
(1) In general.--The amendments made by this section shall
apply to kerosene sold after September 30, 2005.
(2) Special rule for pending claims.--In the case of
kerosene sold for use in aviation (other than kerosene to
which section 6427(l)(4)(C)(ii) of the Internal Revenue Code
of 1986 (as added by subsection (a)) applies or kerosene to
which section 6427(l)(5) of such Code (as redesignated by
subsection (b)) applies) after September 30, 2005, and before
the date of the enactment of this Act, the ultimate purchaser
shall be treated as having waived the right to payment under
section 6427(l)(1) of such Code and as having assigned such
right to the ultimate vendor if such ultimate vendor has met
the requirements of subparagraph (A), (B), or (D) of section
6416(a)(1) of such Code.
(d) Special Rule for Kerosene Used in Aviation on a Farm
for Farming Purposes.--
(1) Refunds for purchases after december 31, 2004, and
before october 1, 2005.--The Secretary of the Treasury shall
pay to the ultimate purchaser of any kerosene which is used
in aviation on a farm for farming purposes and which was
purchased after December 31, 2004, and before October 1,
2005, an amount equal to the aggregate amount of tax imposed
on such fuel under section 4041 or 4081 of the Internal
Revenue Code of 1986, as the case may be, reduced by any
payment to the ultimate vendor under section 6427(l)(5)(C) of
such Code (as in effect on the day before the date of the
enactment of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: a Legacy for Users).
(2) Use on a farm for farming purposes.--For purposes of
paragraph (1), kerosene shall be treated as used on a farm
for farming purposes if such kerosene is used for farming
purposes (within the meaning of section 6420(c)(3) of the
Internal Revenue Code of 1986) in carrying on a trade or
business on a farm situated in the United States. For
purposes of the preceding sentence, rules similar to the
rules of section 6420(c)(4) of such Code shall apply.
(3) Time for filing claims.--No claim shall be allowed
under paragraph (1) unless the ultimate purchaser files such
claim before the date that is 3 months after the date of the
enactment of this Act.
(4) No double benefit.--No amount shall be paid under
paragraph (1) or section 6427(l) of the Internal Revenue Code
of 1986 with respect to any kerosene described in paragraph
(1) to the extent that such amount is in excess of the tax
imposed on such kerosene under section 4041 or 4081 of such
Code, as the case may be.
(5) Applicable laws.--For purposes of this subsection,
rules similar to the rules of section 6427(j) of the Internal
Revenue Code of 1986 shall apply.
SEC. 252. DEDUCTION FOR QUALIFIED TIMBER GAIN.
(a) In General.--Part I of subchapter P of chapter 1 is
amended by adding at the end the following new section:
``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.
``(a) In General.--In the case of a taxpayer which elects
the application of this section for a taxable year, there
shall be allowed a deduction against gross income equal to 60
percent of the lesser of--
``(1) the taxpayer's qualified timber gain for such year,
or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section,
the term `qualified timber gain' means, with respect to any
taxpayer for any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(2) the sum of the taxpayer's losses described in such
subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--In the case of
any qualified timber gain of a pass-thru entity (as defined
in section 1(h)(10))--
``(1) the election under this section shall be made
separately by each taxpayer subject to tax on such gain, and
``(2) the Secretary may prescribe such regulations as are
appropriate to apply this section to such gain.
``(d) Termination.--No disposition of timber after December
31, 2007, shall be taken into account under subsection
(b).''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2) of
section 1(h) is amended to read as follows:
``(2) Reduction of net capital gain.--For purposes of this
subsection, the net capital gain for any taxable year shall
be reduced (but not below zero) by the sum of--
``(A) the amount which the taxpayer takes into account as
investment income under section 163(d)(4)(B)(iii), and
``(B) in the case of a taxable year with respect to which
an election is in effect under section 1203, the lesser of--
``(i) the amount described in paragraph (1) of section
1203(a), or
``(ii) the amount described in paragraph (2) of such
section.''.
(2) Corporations.--Section 1201 is amended by redesignating
subsection (b) as subsection (c) and inserting after
subsection (a) the following new subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For
purposes of this section, in the case of a corporation with
respect to which an election is in effect under section 1203,
the net capital gain for any taxable year shall be reduced
(but not below zero) by the corporation's qualified timber
gain (as defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes
Other Deductions.--Subsection (a) of section 62, as amended
by this Act, is amended by inserting before the last sentence
the following new paragraph:
``(22) Qualified timber gains.--The deduction allowed by
section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current
Earnings.--Subparagraph (C) of section 56(g)(4) is amended by
adding at the end the following new clause:
``(vii) Deduction for qualified timber gain.--Clause (i)
shall not apply to any deduction allowed under section
1203.''.
(e) Deduction Allowed in Computing Taxable Income of
Electing Small Business Trusts.--Subparagraph (C) of section
641(c)(2) is amended by inserting after clause (iii) the
following new clause:
``(iv) The deduction allowed under section 1203.''.
(f) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the exclusion under section 1202 and the deduction
under section 1203 shall not be allowed.''.
(2) Paragraph (4) of section 642(c) is amended by striking
the first sentence and inserting the following: ``To the
extent that the amount otherwise allowable as a deduction
under this subsection consists of gain described in section
1202(a) or qualified timber gain (as defined in section
1203(b)), proper adjustment shall be made for any exclusion
allowable to the estate or trust under section 1202 and for
any deduction allowable to the estate or trust under section
1203.''.
(3) Paragraph (3) of section 643(a) is amended by striking
the last sentence and inserting the following: ``The
exclusion under section 1202 and the deduction under section
1203 shall not be taken into account.''.
(4) Subparagraph (C) of section 643(a)(6) is amended to
read as follows:
``(C) Paragraph (3) shall not apply to a foreign trust. In
the case of such a trust--
``(i) there shall be included gains from the sale or
exchange of capital assets, reduced by losses from such sales
or exchanges to the extent such losses do not exceed gains
from such sales or exchanges, and
``(ii) the deduction under section 1203 shall not be taken
into account.''.
(5) Paragraph (4) of section 691(c) is amended by inserting
``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by striking
``section 1202'' and inserting ``sections 1202 and 1203''.
(7) The table of sections for part I of subchapter P of
chapter 1 is amended by adding at the end the following new
item:
``Sec. 1203. Deduction for qualified timber gain.''.
(g) 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) Taxable years which include date of enactment.--In the
case of any taxable year which includes the date of the
enactment of this Act, for purposes of the Internal Revenue
Code of 1986, the taxpayer's qualified timber gain shall not
exceed the excess that would be described in section 1203(b)
of such Code, as added by this section, if only dispositions
of timber after such date were taken into account.
SEC. 253. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
(a) In General.--Subpart H of part IV of subchapter A of
chapter 1 (relating to credits against tax) is amended by
adding at the end the following new section:
``SEC. 54A. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.
``(a) Allowance of Credit.--In the case of a taxpayer who
holds a rural renaissance bond on a credit allowance date of
such bond, which occurs during the taxable year, there shall
be allowed as a credit against the tax imposed by this
chapter for such taxable year an amount equal to the sum of
the credits determined under subsection (b) with respect to
credit allowance dates during such year on which the taxpayer
holds such bond.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance
date for a rural renaissance bond is 25 percent of the annual
credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any rural renaissance bond is the product of--
``(A) the credit rate determined by the Secretary under
paragraph (3) for the day on which such bond was sold,
multiplied by
``(B) the outstanding face amount of the bond.
``(3) Determination.--For purposes of paragraph (2), with
respect to any rural renaissance bond, the Secretary shall
determine daily or caused to be determined daily a credit
rate which shall apply to the first day on which there is a
binding, written contract for the sale or exchange of the
bond. The credit rate for any day is the credit rate which
the Secretary or the Secretary's designee estimates will
permit the issuance of rural renaissance bonds with a
specified maturity or redemption date without discount and
without interest cost to the qualified issuer.
``(4) Credit allowance date.--For purposes of this section,
the term `credit allowance date' means--
[[Page H6212]]
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term also includes the last day on which the bond is
outstanding.
``(5) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period
ending on a credit allowance date, the amount of the credit
determined under this subsection with respect to such credit
allowance date shall be a ratable portion of the credit
otherwise determined based on the portion of the 3-month
period during which the bond is outstanding. A similar rule
shall apply when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--The credit
allowed under subsection (a) for any taxable year shall not
exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under this part
(other than subpart C and this section).
``(d) Rural Renaissance Bond.--For purposes of this
section--
``(1) In general.--The term `rural renaissance bond' means
any bond issued as part of an issue if--
``(A) the bond is issued by a qualified issuer,
``(B) 95 percent or more of the proceeds from the sale of
such issue are to be used for capital expenditures incurred
for 1 or more qualified projects,
``(C) the qualified issuer designates such bond for
purposes of this section and the bond is in registered form,
and
``(D) the issue meets the requirements of subsections (e)
and (h).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified project' means 1 or
more projects described in subparagraph (B) located in a
rural area.
``(B) Projects described.--A project described in this
subparagraph is--
``(i) a water or waste treatment project,
``(ii) an affordable housing project,
``(iii) a community facility project, including hospitals,
fire and police stations, and nursing and assisted-living
facilities,
``(iv) a value-added agriculture or renewable energy
facility project for agricultural producers or farmer-owned
entities, including any project to promote the production,
processing, or retail sale of ethanol (including fuel at
least 85 percent of the volume of which consists of ethanol),
biodiesel, animal waste, biomass, raw commodities, or wind as
a fuel,
``(v) a distance learning or telemedicine project,
``(vi) a rural utility infrastructure project, including
any electric or telephone system,
``(vii) a project to expand broadband technology,
``(viii) a rural teleworks project, and
``(ix) any project described in any preceding clause
carried out by the Delta Regional Authority.
``(C) Special rules.--For purposes of this paragraph--
``(i) any project described in subparagraph (B)(iv) for a
farmer-owned entity may be considered a qualified project if
such entity is located in a rural area, or in the case of a
farmer-owned entity the headquarters of which are located in
a nonrural area, if the project is located in a rural area,
and
``(ii) any project for a farmer-owned entity which is a
facility described in subparagraph (B)(iv) for agricultural
producers may be considered a qualified project regardless of
whether the facility is located in a rural or nonrural area.
``(3) Special use rules.--
``(A) Refinancing rules.--For purposes of paragraph (1)(B),
a qualified project may be refinanced with proceeds of a
rural renaissance bond only if the indebtedness being
refinanced (including any obligation directly or indirectly
refinanced by such indebtedness) was originally incurred
after the date of the enactment of this section.
``(B) Reimbursement.--For purposes of paragraph (1)(B), a
rural renaissance bond may be issued to reimburse a borrower
for amounts paid after the date of the enactment of this
section with respect to a qualified project, but only if--
``(i) prior to the payment of the original expenditure, the
borrower declared its intent to reimburse such expenditure
with the proceeds of a rural renaissance bond,
``(ii) not later than 60 days after payment of the original
expenditure, the qualified issuer adopts an official intent
to reimburse the original expenditure with such proceeds, and
``(iii) the reimbursement is made not later than 18 months
after the date the original expenditure is paid.
``(C) Treatment of changes in use.--For purposes of
paragraph (1)(B), the proceeds of an issue shall not be
treated as used for a qualified project to the extent that a
borrower takes any action within its control which causes
such proceeds not to be used for a qualified project. The
Secretary shall prescribe regulations specifying remedial
actions that may be taken (including conditions to taking
such remedial actions) to prevent an action described in the
preceding sentence from causing a bond to fail to be a rural
renaissance bond.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be treated as a
rural renaissance bond if the maturity of such bond exceeds
the maximum term determined by the Secretary under paragraph
(2) with respect to such bond.
``(2) Maximum term.--During each calendar month, the
Secretary shall determine the maximum term permitted under
this paragraph for bonds issued during the following
calendar month. Such maximum term shall be the term which
the Secretary estimates will result in the present value
of the obligation to repay the principal on the bond being
equal to 50 percent of the face amount of such bond. Such
present value shall be determined without regard to the
requirements of paragraph (3) and using as a discount rate
the average annual interest rate of tax-exempt obligations
having a term of 10 years or more which are issued during
the month. If the term as so determined is not a multiple
of a whole year, such term shall be rounded to the next
highest whole year.
``(3) Ratable principal amortization required.--A bond
shall not be treated as a rural renaissance bond unless it is
part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each
calendar year that the issue is outstanding.
``(f) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a rural renaissance
bond limitation of $200,000,000.
``(2) Allocation by secretary.--The Secretary shall
allocate the amount described in paragraph (1) among
qualified projects in such manner as the Secretary determines
appropriate.
``(g) Credit Included in Gross Income.--Gross income
includes the amount of the credit allowed to the taxpayer
under this section (determined without regard to subsection
(c)) and the amount so included shall be treated as interest
income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as meeting the
requirements of this subsection if, as of the date of
issuance, the qualified issuer reasonably expects--
``(A) at least 95 percent of the proceeds from the sale of
the issue are to be spent for 1 or more qualified projects
within the 5-year period beginning on the date of issuance of
the rural renaissance bond,
``(B) a binding commitment with a third party to spend at
least 10 percent of the proceeds from the sale of the issue
will be incurred within the 6-month period beginning on the
date of issuance of the rural renaissance bond or, in the
case of a rural renaissance bond, the proceeds of which are
to be loaned to 2 or more borrowers, such binding commitment
will be incurred within the 6-month period beginning on the
date of the loan of such proceeds to a borrower, and
``(C) such projects will be completed with due diligence
and the proceeds from the sale of the issue will be spent
with due diligence.
``(2) Extension of period.--Upon submission of a request
prior to the expiration of the period described in paragraph
(1)(A), the Secretary may extend such period if the qualified
issuer establishes that the failure to satisfy the 5-year
requirement is due to reasonable cause and the related
projects will continue to proceed with due diligence.
``(3) Failure to spend required amount of bond proceeds
within 5 years.--To the extent that less than 95 percent of
the proceeds of such issue are expended by the close of the
5-year period beginning on the date of issuance (or if an
extension has been obtained under paragraph (2), by the close
of the extended period), the qualified issuer shall redeem
all of the nonqualified bonds within 90 days after the end of
such period. For purposes of this paragraph, the amount of
the nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(i) Special Rules Relating to Arbitrage.--A bond which is
part of an issue shall not be treated as a rural renaissance
bond unless, with respect to the issue of which the bond is a
part, the qualified issuer satisfies the arbitrage
requirements of section 148 with respect to proceeds of the
issue.
``(j) Qualified Issuer.--For purposes of this section--
``(1) In general.--The term `qualified issuer' means any
not-for-profit cooperative lender which has as of the date of
the enactment of this section received a guarantee under
section 306 of the Rural Electrification Act and which meets
the requirement of paragraph (2).
``(2) User fee requirement.--The requirement of this
paragraph is met if the issuer of any rural renaissance bond
makes grants for qualified projects as defined under
subsection (d)(2) on a semi-annual basis every year that such
bond is outstanding in an annual amount equal to one-half of
the rate on United States Treasury Bills of the same maturity
multiplied by the outstanding principal balance of rural
renaissance bonds issued by such issuer.
``(k) Special Rules Relating to Pool Bonds.--No portion of
a pooled financing bond may be allocable to a loan unless the
borrower has entered into a written loan commitment for such
portion prior to the issue date of such issue.
``(l) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Bond.--The term `bond' includes any obligation.
``(2) Pooled financing bond.--The term `pooled financing
bond' shall have the meaning given such term by section
149(f)(4)(A).
[[Page H6213]]
``(3) Rural area.--The term `rural area' means any area
other than--
``(A) a city or town which has a population of greater than
50,000 inhabitants, or
``(B) the urbanized area contiguous and adjacent to such a
city or town.
``(4) Partnership; s corporation; and other pass-thru
entities.--
``(A) In general.--Under regulations prescribed by the
Secretary, in the case of a partnership, trust, S
corporation, or other pass-thru entity, rules similar to the
rules of section 41(g) shall apply with respect to the credit
allowable under subsection (a).
``(B) No basis adjustment.--In the case of a bond held by a
partnership or an S corporation, rules similar to the rules
under section 1397E(l) shall apply.
``(5) Bonds held by regulated investment companies.--If any
rural renaissance bond is held by a regulated investment
company, the credit determined under subsection (a) shall be
allowed to shareholders of such company under procedures
prescribed by the Secretary.
``(6) Reporting.--Issuers of rural renaissance bonds shall
submit reports similar to the reports required under section
149(e).''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding
at the end the following new paragraph:
``(9) Reporting of credit on rural renaissance bonds.--
``(A) In general.--For purposes of subsection (a), the term
`interest' includes amounts includible in gross income under
section 54A(f) and such amounts shall be treated as paid on
the credit allowance date (as defined in section 54A(b)(4)).
``(B) Reporting to corporations, etc.--Except as otherwise
provided in regulations, in the case of any interest
described in subparagraph (A), subsection (b)(4) shall be
applied without regard to subparagraphs (A), (H), (I), (J),
(K), and (L)(i) of such subsection.
``(C) Regulatory authority.--The Secretary may prescribe
such regulations as are necessary or appropriate to carry out
the purposes of this paragraph, including regulations which
require more frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) The table of sections for subpart H of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54A. Credit to holders of rural renaissance bonds.''
. (2) Section 54(c)(2) is amended by inserting ``, section
54A,'' after ``subpart C''.
(3) Section 1400N(l)(3)(B) is amended by inserting ``,
section 54A,'' after ``subpart C''.
(d) Issuance of Regulations.--The Secretary of Treasury
shall issue regulations required under section 54A of the
Internal Revenue Code of 1986 (as added by this section) not
later than 120 days after the date of the enactment of this
Act.
(e) Effective Date.--The amendments made by this section
shall apply to bonds issued after the date of the enactment
of this Act and before January 1, 2010.
SEC. 254. RESTORATION OF DEDUCTION FOR TRAVEL EXPENSES OF
SPOUSE, ETC. ACCOMPANYING TAXPAYER ON BUSINESS
TRAVEL.
(a) In General.--Subsection (m) of section 274 (relating to
additional limitations on travel expenses) is amended by
adding at the end the following new paragraph:
``(4) Termination.--Paragraph (3) shall not apply to any
expense paid or incurred after the date of the enactment of
this paragraph and before January 1, 2008.''.
(b) Effective Date.--The amendment made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act.
SEC. 255. TECHNICAL CORRECTIONS.
(a) Technical Correction Relating to Look-Through Treatment
of Payments Between Related Controlled Foreign Corporations
Under the Foreign Personal Holding Company Rules.--
(1) In general.--
(A) The first sentence of section 954(c)(6)(A), as amended
by section 103(b) of the Tax Increase Prevention and
Reconciliation Act of 2005, is amended by striking ``which is
not subpart F income'' and inserting ``which is neither
subpart F income nor income treated as effectively connected
with the conduct of a trade or business in the United
States''.
(B) Section 954(c)(6)(A), as so amended, is amended by
striking the last sentence and inserting the following: ``The
Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out this paragraph,
including such regulations as may be necessary or appropriate
to prevent the abuse of the purposes of this paragraph.''
(2) Effective date.--The amendments made by this subsection
shall take effect as if included in section 103(b) of the Tax
Increase Prevention and Reconciliation Act of 2005.
(b) Technical Correction Regarding Authority to Exercise
Reasonable Cause and Good Faith Exception.--
(1) In general.--Section 903(d)(2)(B)(iii) of the American
Jobs Creation Act of 2004, as amended by section 303(a) of
the Gulf Opportunity Zone Act of 2005, is amended by
inserting ``or the Secretary's delegate'' after ``the
Secretary of the Treasury''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the provisions of the
American Jobs Creation Act of 2004 to which it relates.
TITLE III--SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF
2006
SEC. 301. SHORT TITLE.
This title may be cited as the ``Surface Mining Control and
Reclamation Act Amendments of 2006''.
Subtitle A--MINING CONTROL AND RECLAMATION
SEC. 311. ABANDONED MINE RECLAMATION FUND AND PURPOSES.
(a) In General.--Section 401 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1231) is amended--
(1) in subsection (c)--
(A) by striking paragraphs (2) and (6); and
(B) by redesignating paragraphs (3), (4), and (5) and
paragraphs (7) through (13) as paragraphs (2) through (11),
respectively;
(2) by striking subsection (d) and inserting the following:
``(d) Availability of Moneys; No Fiscal Year Limitation.--
``(1) In general.--Moneys from the fund for expenditures
under subparagraphs (A) through (D) of section 402(g)(3)
shall be available only when appropriated for those
subparagraphs.
``(2) No fiscal year limitation.--Appropriations described
in paragraph (1) shall be made without fiscal year
limitation.
``(3) Other purposes.--Moneys from the fund shall be
available for all other purposes of this title without prior
appropriation as provided in subsection (f).'';
(3) in subsection (e)--
(A) in the second sentence, by striking ``the needs of such
fund'' and inserting ``achieving the purposes of the
transfers under section 402(h)''; and
(B) in the third sentence, by inserting before the period
the following: ``for the purpose of the transfers under
section 402(h)''; and
(4) by adding at the end the following:
``(f) General Limitation on Obligation Authority.--
``(1) In general.--From amounts deposited into the fund
under subsection (b), the Secretary shall distribute during
each fiscal year beginning after September 30, 2007, an
amount determined under paragraph (2).
``(2) Amounts.--
``(A) For fiscal years 2008 through 2022.--For each of
fiscal years 2008 through 2022, the amount distributed by the
Secretary under this subsection shall be equal to--
``(i) the amounts deposited into the fund under paragraphs
(1), (2), and (4) of subsection (b) for the preceding fiscal
year that were allocated under paragraphs (1) and (5) of
section 402(g); plus
``(ii) the amount needed for the adjustment under section
402(g)(8) for the current fiscal year.
``(B) Fiscal years 2023 and thereafter.--For fiscal year
2023 and each fiscal year thereafter, to the extent that
funds are available, the Secretary shall distribute an amount
equal to the amount distributed under subparagraph (A) during
fiscal year 2022.
``(3) Distribution.--
``(A) In general.--Except as provided in subparagraph (B),
for each fiscal year, of the amount to be distributed to
States and Indian tribes pursuant to paragraph (2), the
Secretary shall distribute--
``(i) the amounts allocated under paragraph (1) of section
402(g), the amounts allocated under paragraph (5) of section
402(g), and any amount reallocated under section 411(h)(3) in
accordance with section 411(h)(2), for grants to States and
Indian tribes under section 402(g)(5); and
``(ii) the amounts allocated under section 402(g)(8).
``(B) Exclusion.--Beginning on October 1, 2007, certified
States shall be ineligible to receive amounts under section
402(g)(1).
``(4) Availability.--Amounts in the fund available to the
Secretary for obligation under this subsection shall be
available until expended.
``(5) Addition.--
``(A) In general.--Subject to subparagraph (B), the amount
distributed under this subsection for each fiscal year shall
be in addition to the amount appropriated from the fund
during the fiscal year.
``(B) Exceptions.--Notwithstanding paragraph (3), the
amount distributed under this subsection for the first 4
fiscal years beginning on and after October 1, 2007, shall be
equal to the following percentage of the amount otherwise
required to be distributed:
``(i) 50 percent in fiscal year 2008.
``(ii) 50 percent in fiscal year 2009.
``(iii) 75 percent in fiscal year 2010.
``(iv) 75 percent in fiscal year 2011.''.
(b) Conforming Amendment.--Section 712(b) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1302(b)) is amended by striking ``section 401(c)(11)'' and
inserting ``section 401(c)(9)''.
SEC. 312. RECLAMATION FEE.
(a) Amounts.--
(1) Fiscal years 2008-2012.--Effective October 1, 2007,
section 402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(a)) is amended--
(A) by striking ``35'' and inserting ``31.5'';
(B) by striking ``15'' and inserting ``13.5''; and
(C) by striking ``10 cents'' and inserting ``9 cents''.
(2) Fiscal years 2013-2021.--Effective October 1, 2012,
section 402(a) of the Surface Mining Control and Reclamation
Act of 1977 (30
[[Page H6214]]
U.S.C. 1232(a)) (as amended by paragraph (1)) is amended--
(A) by striking ``31.5'' and inserting ``28'';
(B) by striking ``13.5'' and inserting ``12''; and
(C) by striking ``9 cents'' and inserting ``8 cents''.
(b) Duration.--Effective September 30, 2007, section 402(b)
of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232(b)) (as amended by section 7007 of the Emergency
Supplemental Appropriations Act for Defense, the Global War
on Terror, and Hurricane Recovery, 2006 (Public Law 109-234;
120 Stat. 484)) is amended by striking ``September 30, 2007''
and all that follows through the end of the sentence and
inserting ``September 30, 2021.''.
(c) Allocation of Funds.--Section 402(g) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1232(g)) is amended--
(1) in paragraph (1)(D)--
(A) by inserting ``(except for grants awarded during fiscal
years 2008, 2009, and 2010 to the extent not expended within
5 years)'' after ``this paragraph''; and
(B) by striking ``in any area under paragraph (2), (3),
(4), or (5)'' and inserting ``under paragraph (5)'';
(2) by striking paragraph (2) and inserting:
``(2) In making the grants referred to in paragraph (1)(C)
and the grants referred to in paragraph (5), the Secretary
shall ensure strict compliance by the States and Indian
tribes with the priorities described in section 403(a) until
a certification is made under section 411(a).'';
(3) in paragraph (3)--
(A) in the matter preceding subparagraph (A), by striking
``paragraphs (2) and'' and inserting ``paragraph'';
(B) in subparagraph (A), by striking ``401(c)(11)'' and
inserting ``401(c)(9)''; and
(C) by adding at the end the following:
``(E) For the purpose of paragraph (8).'';
(4) in paragraph (5)--
(A) by inserting ``(A)'' after ``(5)'';
(B) in the first sentence, by striking ``40'' and inserting
``60'';
(C) in the last sentence, by striking ``Funds allocated or
expended by the Secretary under paragraphs (2), (3), or (4)''
and inserting ``Funds made available under paragraph (3) or
(4)''; and
(D) by adding at the end the following:
``(B) Any amount that is reallocated and available under
section 411(h)(3) shall be in addition to amounts that are
allocated under subparagraph (A).''; and
(5) by striking paragraphs (6) through (8) and inserting
the following:
``(6)(A) Any State with an approved abandoned mine
reclamation program pursuant to section 405 may receive and
retain, without regard to the 3-year limitation referred to
in paragraph (1)(D), up to 30 percent of the total of the
grants made annually to the State under paragraphs (1) and
(5) if those amounts are deposited into an acid mine drainage
abatement and treatment fund established under State law,
from which amounts (together with all interest earned on the
amounts) are expended by the State for the abatement of the
causes and the treatment of the effects of acid mine drainage
in a comprehensive manner within qualified hydrologic units
affected by coal mining practices.
``(B) In this paragraph, the term `qualified hydrologic
unit' means a hydrologic unit--
``(i) in which the water quality has been significantly
affected by acid mine drainage from coal mining practices in
a manner that adversely impacts biological resources; and
``(ii) that contains land and water that are--
``(I) eligible pursuant to section 404 and include any of
the priorities described in section 403(a); and
``(II) the subject of expenditures by the State from the
forfeiture of bonds required under section 509 or from other
States sources to abate and treat acid mine drainage.
``(7) In complying with the priorities described in section
403(a), any State or Indian tribe may use amounts available
in grants made annually to the State or tribe under
paragraphs (1) and (5) for the reclamation of eligible land
and water described in section 403(a)(3) before the
completion of reclamation projects under paragraphs (1) and
(2) of section 403(a) only if the expenditure of funds for
the reclamation is done in conjunction with the expenditure
before, on, or after the date of enactment of the Surface
Mining Control and Reclamation Act Amendments of 2006 of
funds for reclamation projects under paragraphs (1) and (2)
of section 403(a).
``(8)(A) In making funds available under this title, the
Secretary shall ensure that the grant awards total not less
than $3,000,000 annually to each State and each Indian tribe
having an approved abandoned mine reclamation program
pursuant to section 405 and eligible land and water pursuant
to section 404, so long as an allocation of funds to the
State or tribe is necessary to achieve the priorities stated
in paragraphs (1) and (2) of section 403(a).
``(B) Notwithstanding any other provision of law, this
paragraph applies to the States of Tennessee and Missouri.''.
(d) Transfers of Interest Earned by Abandoned Mine
Reclamation Fund.--Section 402 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1232) is amended by
striking subsection (h) and inserting the following:
``(h) Transfers of Interest Earned by Fund.--
``(1) In general.--
``(A) Transfers to combined benefit fund.--As soon as
practicable after the beginning of fiscal year 2007 and each
fiscal year thereafter, and before making any allocation with
respect to the fiscal year under subsection (g), the
Secretary shall use an amount not to exceed the amount of
interest that the Secretary estimates will be earned and paid
to the fund during the fiscal year to make the transfer
described in paragraph (2)(A).
``(B) Transfers to 1992 and 1993 plans.--As soon as
practicable after the beginning of fiscal year 2008 and each
fiscal year thereafter, and before making any allocation with
respect to the fiscal year under subsection (g), the
Secretary shall use an amount not to exceed the amount of
interest that the Secretary estimates will be earned and paid
to the fund during the fiscal year (reduced by the amount
used under subparagraph (A)) to make the transfers described
in paragraphs (2)(B) and (2)(C).
``(2) Transfers described.--The transfers referred to in
paragraph (1) are the following:
``(A) United mine workers of america combined benefit
fund.--A transfer to the United Mine Workers of America
Combined Benefit Fund equal to the amount that the trustees
of the Combined Benefit Fund estimate will be expended from
the fund for the fiscal year in which the transfer is made,
reduced by--
``(i) the amount the trustees of the Combined Benefit Fund
estimate the Combined Benefit Fund will receive during the
fiscal year in--
``(I) required premiums; and
``(II) payments paid by Federal agencies in connection with
benefits provided by the Combined Benefit Fund; and
``(ii) the amount the trustees of the Combined Benefit Fund
estimate will be expended during the fiscal year to provide
health benefits to beneficiaries who are unassigned
beneficiaries solely as a result of the application of
section 9706(h)(1) of the Internal Revenue Code of 1986, but
only to the extent that such amount does not exceed the
amounts described in subsection (i)(1)(A) that the Secretary
estimates will be available to pay such estimated
expenditures.
``(B) United mine workers of america 1992 benefit plan.--A
transfer to the United Mine Workers of America 1992 Benefit
Plan, in an amount equal to the difference between--
``(i) the amount that the trustees of the 1992 UMWA Benefit
Plan estimate will be expended from the 1992 UMWA Benefit
Plan during the next calendar year to provide the benefits
required by the 1992 UMWA Benefit Plan on the date of
enactment of this subparagraph; minus
``(ii) the amount that the trustees of the 1992 UMWA
Benefit Plan estimate the 1992 UMWA Benefit Plan will receive
during the next calendar year in--
``(I) required monthly per beneficiary premiums, including
the amount of any security provided to the 1992 UMWA Benefit
Plan that is available for use in the provision of benefits;
and
``(II) payments paid by Federal agencies in connection with
benefits provided by the 1992 UMWA benefit plan.
``(C) Multiemployer health benefit plan.--A transfer to the
Multiemployer Health Benefit Plan established after July 20,
1992, by the parties that are the settlors of the 1992 UMWA
Benefit Plan referred to in subparagraph (B) (referred to in
this subparagraph and subparagraph (D) as `the Plan'), in an
amount equal to the excess (if any) of--
``(i) the amount that the trustees of the Plan estimate
will be expended from the Plan during the next calendar year,
to provide benefits no greater than those provided by the
Plan as of December 31, 2006; over
``(ii) the amount that the trustees estimated the Plan will
receive during the next calendar year in payments paid by
Federal agencies in connection with benefits provided by the
Plan.
Such excess shall be calculated by taking into account only
those beneficiaries actually enrolled in the Plan as of
December 31, 2006, who are eligible to receive benefits under
the Plan on the first day of the calendar year for which the
transfer is made.
``(D) Individuals considered enrolled.--For purposes of
subparagraph (C), any individual who was eligible to receive
benefits from the Plan as of the date of enactment of this
subsection, even though benefits were being provided to the
individual pursuant to a settlement agreement approved by
order of a bankruptcy court entered on or before September
30, 2004, will be considered to be actually enrolled in the
Plan and shall receive benefits from the Plan beginning on
December 31, 2006.
``(3) Adjustment.--If, for any fiscal year, the amount of a
transfer under subparagraph (A), (B), or (C) of paragraph (2)
is more or less than the amount required to be transferred
under that subparagraph, the Secretary shall appropriately
adjust the amount transferred under that subparagraph for the
next fiscal year.
``(4) Additional amounts.--
``(A) Previously credited interest.--Notwithstanding any
other provision of law, any interest credited to the fund
that has not previously been transferred to the Combined
Benefit Fund referred to in paragraph (2)(A) under this
section--
``(i) shall be held in reserve by the Secretary until such
time as necessary to make
[[Page H6215]]
the payments under subparagraphs (A) and (B) of subsection
(i)(1), as described in clause (ii); and
``(ii) in the event that the amounts described in
subsection (i)(1) are insufficient to make the maximum
payments described in subparagraphs (A) and (B) of subsection
(i)(1), shall be used by the Secretary to supplement the
payments so that the maximum amount permitted under those
paragraphs is paid.
``(B) Previously allocated amounts.--All amounts allocated
under subsection (g)(2) before the date of enactment of this
subparagraph for the program described in section 406, but
not appropriated before that date, shall be available to the
Secretary to make the transfers described in paragraph (2).
``(C) Adequacy of previously credited interest.--The
Secretary shall--
``(i) consult with the trustees of the plans described in
paragraph (2) at reasonable intervals; and
``(ii) notify Congress if a determination is made that the
amounts held in reserve under subparagraph (A) are
insufficient to meet future requirements under subparagraph
(A)(ii).
``(D) Additional reserve amounts.--In addition to amounts
held in reserve under subparagraph (A), there is authorized
to be appropriated such sums as may be necessary for transfer
to the fund to carry out the purposes of subparagraph
(A)(ii).
``(E) Inapplicability of cap.--The limitation described in
subsection (i)(3)(A) shall not apply to payments made from
the reserve fund under this paragraph.
``(5) Limitations.--
``(A) Availability of funds for next fiscal year.--The
Secretary may make transfers under subparagraphs (B) and (C)
of paragraph (2) for a calendar year only if the Secretary
determines, using actuarial projections provided by the
trustees of the Combined Benefit Fund referred to in
paragraph (2)(A), that amounts will be available under
paragraph (1), after the transfer, for the next fiscal year
for making the transfer under paragraph (2)(A).
``(B) Rate of contributions of obligors.--
``(i) In general.--
``(I) Rate.--A transfer under paragraph (2)(C) shall not be
made for a calendar year unless the persons that are
obligated to contribute to the plan referred to in paragraph
(2)(C) on the date of the transfer are obligated to make the
contributions at rates that are no less than those in effect
on the date which is 30 days before the date of enactment of
this subsection.
``(II) Application.--The contributions described in
subclause (I) shall be applied first to the provision of
benefits to those plan beneficiaries who are not described in
paragraph (2)(C)(ii).
``(ii) Initial contributions.--
``(I) In general.--From the date of enactment of the
Surface Mining Control and Reclamation Act Amendments of 2006
through December 31, 2010, the persons that, on the date of
enactment of that Act, are obligated to contribute to the
plan referred to in paragraph (2)(C) shall be obligated,
collectively, to make contributions equal to the amount
described in paragraph (2)(C), less the amount actually
transferred due to the operation of subparagraph (C).
``(II) First calendar year.--Calendar year 2006 is the
first calendar year for which contributions are required
under this clause.
``(III) Amount of contribution for 2006.--Except as
provided in subclause (IV), the amount described in paragraph
(2)(C) for calendar year 2006 shall be calculated as if
paragraph (2)(C) had been in effect during 2005.
``(IV) Limitation.--The contributions required under this
clause for calendar year 2006 shall not exceed the amount
necessary for solvency of the plan described in paragraph
(2)(C), measured as of December 31, 2006 and taking into
account all assets held by the plan as of that date.
``(iii) Division.--The collective annual contribution
obligation required under clause (ii) shall be divided among
the persons subject to the obligation, and applied uniformly,
based on the hours worked for which contributions referred to
in clause (i) would be owed.
``(C) Phase-in of transfers.--For each of calendar years
2008 through 2010, the transfers required under subparagraphs
(B) and (C) of paragraph (2) shall equal the following
amounts:
``(i) For calendar year 2008, the Secretary shall make
transfers equal to 25 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(ii) For calendar year 2009, the Secretary shall make
transfers equal to 50 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(iii) For calendar year 2010, the Secretary shall make
transfers equal to 75 percent of the amounts that would
otherwise be required under subparagraphs (B) and (C) of
paragraph (2).
``(i) Funding.--
``(1) In general.--Subject to paragraph (3), out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the plans
described in subsection (h)(2) such sums as are necessary to
pay the following amounts:
``(A) To the Combined Fund (as defined in section
9701(a)(5) of the Internal Revenue Code of 1986 and referred
to in this paragraph as the `Combined Fund'), the amount that
the trustees of the Combined Fund estimate will be expended
from premium accounts maintained by the Combined Fund for the
fiscal year to provide benefits for beneficiaries who are
unassigned beneficiaries solely as a result of the
application of section 9706(h)(1) of the Internal Revenue
Code of 1986, subject to the following limitations:
``(i) For fiscal year 2008, the amount paid under this
subparagraph shall equal--
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(A) of
the Internal Revenue Code of 1986.
``(ii) For fiscal year 2009, the amount paid under this
subparagraph shall equal--
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(B) of
the Internal Revenue Code of 1986.
``(iii) For fiscal year 2010, the amount paid under this
subparagraph shall equal--
``(I) the amount described in subparagraph (A); minus
``(II) the amounts required under section 9706(h)(3)(C) of
the Internal Revenue Code of 1986.
``(B) On certification by the trustees of any plan
described in subsection (h)(2) that the amount available for
transfer by the Secretary pursuant to this section
(determined after application of any limitation under
subsection (h)(5)) is less than the amount required to be
transferred, to the plan the amount necessary to meet the
requirement of subsection (h)(2).
``(C) To the Combined Fund, $9,000,000 on October 1, 2007,
$9,000,000 on October 1, 2008, and $9,000,000 on October 1,
2009 (which amounts shall not be exceeded) to provide a
refund of any premium (as described in section 9704(a) of the
Internal Revenue Code of 1986) paid on or before September 7,
2000, to the Combined Fund, plus interest on the premium
calculated at the rate of 7.5 percent per year, on a
proportional basis and to be paid not later than 60 days
after the date on which each payment is received by the
Combined Fund, to those signatory operators (to the extent
that the Combined Fund has not previously returned the
premium amounts to the operators), or any related persons to
the operators (as defined in section 9701(c) of the Internal
Revenue Code of 1986), or their heirs, successors, or assigns
who have been denied the refunds as the result of final
judgments or settlements if--
``(i) prior to the date of enactment of this paragraph, the
signatory operator (or any related person to the operator)--
``(I) had all of its beneficiary assignments made under
section 9706 of the Internal Revenue Code of 1986 voided by
the Commissioner of the Social Security Administration; and
``(II) was subject to a final judgment or final settlement
of litigation adverse to a claim by the operator that the
assignment of beneficiaries under section 9706 of the
Internal Revenue Code of 1986 was unconstitutional as applied
to the operator; and
``(ii) on or before September 7, 2000, the signatory
operator (or any related person to the operator) had paid to
the Combined Fund any premium amount that had not been
refunded.
``(2) Payments to states and indian tribes.--Subject to
paragraph (3), out of any funds in the Treasury not otherwise
appropriated, the Secretary of the Treasury shall transfer to
the Secretary of the Interior for distribution to States and
Indian tribes such sums as are necessary to pay amounts
described in paragraphs (1)(A) and (2)(A) of section 411(h).
``(3) Limitations.--
``(A) Cap.--The total amount transferred under this
subsection for any fiscal year shall not exceed $490,000,000.
``(B) Insufficient amounts.--In a case in which the amount
required to be transferred without regard to this paragraph
exceeds the maximum annual limitation in subparagraph (A),
the Secretary shall adjust the transfers of funds so that--
``(i) each transfer for the fiscal year is a percentage of
the amount described;
``(ii) the amount is determined without regard to
subsection (h)(5)(A); and
``(iii) the percentage transferred is the same for all
transfers made under this subsection for the fiscal year.
``(4) Availability of funds.--Funds shall be transferred
under paragraph (1) and (2) beginning in fiscal year 2008 and
each fiscal year thereafter, and shall remain available until
expended.''.
SEC. 313. OBJECTIVES OF FUND.
Section 403 of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1233) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``(1) the protection'' and inserting the
following:
``(1)(A) the protection;'';
(ii) in subparagraph (A) (as designated by clause (i)), by
striking ``general welfare,''; and
(iii) by adding at the end the following:
``(B) the restoration of land and water resources and the
environment that--
``(i) have been degraded by the adverse effects of coal
mining practices; and
``(ii) are adjacent to a site that has been or will be
remediated under subparagraph (A);'';
(B) in paragraph (2)--
(i) by striking ``(2) the protection'' and inserting the
following:
``(2)(A) the protection'';
[[Page H6216]]
(ii) in subparagraph (A) (as designated by clause (i), by
striking ``health, safety, and general welfare'' and
inserting ``health and safety''; and
(iii) by adding at the end the following:
``(B) the restoration of land and water resources and the
environment that--
``(i) have been degraded by the adverse effects of coal
mining practices; and
``(ii) are adjacent to a site that has been or will be
remediated under subparagraph (A); and'';
(C) in paragraph (3), by striking the semicolon at the end
and inserting a period; and
(D) by striking paragraphs (4) and (5);
(2) in subsection (b)--
(A) by striking the subsection heading and inserting
``Water Supply Restoration.--''; and
(B) in paragraph (1), by striking ``up to 30 percent of
the''; and
(3) in the second sentence of subsection (c), by inserting
``, subject to the approval of the Secretary,'' after
``amendments''.
SEC. 314. RECLAMATION OF RURAL LAND.
(a) Administration.--Section 406(h) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is
amended by striking ``Soil Conservation Service'' and
inserting ``Natural Resources Conservation Service''.
(b) Authorization of Appropriations for Carrying Out Rural
Land Reclamation.--Section 406 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1236) is amended by
adding at the end the following:
``(i) There are authorized to be appropriated to the
Secretary of Agriculture, from amounts in the Treasury other
than amounts in the fund, such sums as may be necessary to
carry out this section.''.
SEC. 315. LIENS.
Section 408(a) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1238) is amended in the
last sentence by striking ``who owned the surface prior to
May 2, 1977, and''.
SEC. 316. CERTIFICATION.
Section 411 of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1240a) is amended--
(1) in subsection (a)--
(A) by inserting ``(1)'' before the first sentence; and
(B) by adding at the end the following:
``(2)(A) The Secretary may, on the initiative of the
Secretary, make the certification referred to in paragraph
(1) on behalf of any State or Indian tribe referred to in
paragraph (1) if on the basis of the inventory referred to in
section 403(c) all reclamation projects relating to the
priorities described in section 403(a) for eligible land and
water pursuant to section 404 in the State or tribe have been
completed.
``(B) The Secretary shall only make the certification after
notice in the Federal Register and opportunity for public
comment.''; and
(2) by adding at the end the following:
``(h) Payments to States and Indian Tribes.--
``(1) In general.--
``(A) Payments.--
``(i) In general.--Notwithstanding section 401(f)(3)(B),
from funds referred to in section 402(i)(2), the Secretary
shall make payments to States or Indian tribes for the amount
due for the aggregate unappropriated amount allocated to the
State or Indian tribe under subparagraph (A) or (B) of
section 402(g)(1).
``(ii) Conversion as equivalent payments.--Amounts
allocated under subparagraphs (A) or (B) of section 402(g)(1)
shall be reallocated to the allocation established in section
402(g)(5) in amounts equivalent to payments made to States or
Indian tribes under this paragraph.
``(B) Amount due.--In this paragraph, the term `amount due'
means the unappropriated amount allocated to a State or
Indian tribe before October 1, 2007, under subparagraph (A)
or (B) of section 402(g)(1).
``(C) Schedule.--Payments under subparagraph (A) shall be
made in 7 equal annual installments, beginning with fiscal
year 2008.
``(D) Use of funds.--
``(i) Certified states and indian tribes.--A State or
Indian tribe that makes a certification under subsection (a)
in which the Secretary concurs shall use any amounts provided
under this paragraph for the purposes established by the
State legislature or tribal council of the Indian tribe, with
priority given for addressing the impacts of mineral
development.
``(ii) Uncertified states and indian tribes.--A State or
Indian tribe that has not made a certification under
subsection (a) in which the Secretary has concurred shall use
any amounts provided under this paragraph for the purposes
described in section 403.
``(2) Subsequent state and indian tribe share for certified
states and indian tribes.--
``(A) In general.--Notwithstanding section 401(f)(3)(B),
from funds referred to in section 402(i)(2), the Secretary
shall pay to each certified State or Indian tribe an amount
equal to the sum of the aggregate unappropriated amount
allocated on or after October 1, 2007, to the certified State
or Indian tribe under subparagraph (A) or (B) of section
402(g)(1).
``(B) Certified state or indian tribe defined.--In this
paragraph the term `certified State or Indian tribe' means a
State or Indian tribe for which a certification is made under
subsection (a) in which the Secretary concurs.
``(3) Manner of payment.--
``(A) In general.--Subject to subparagraph (B), payments to
States or Indian tribes under this subsection shall be made
without regard to any limitation in section 401(d) and
concurrently with payments to States under that section.
``(B) Initial payments.--The first 3 payments made to any
State or Indian tribe shall be reduced to 25 percent, 50
percent, and 75 percent, respectively, of the amounts
otherwise required under paragraph (2)(A).
``(C) Installments.--Amounts withheld from the first 3
annual installments as provided under subparagraph (B) shall
be paid in 2 equal annual installments beginning with fiscal
year 2018.
``(4) Reallocation.--
``(A) In general.--The amount allocated to any State or
Indian tribe under subparagraph (A) or (B) of section
402(g)(1) that is paid to the State or Indian tribe as a
result of a payment under paragraph (1) or (2) shall be
reallocated and available for grants under section 402(g)(5).
``(B) Allocation.--The grants shall be allocated based on
the amount of coal historically produced before August 3,
1977, in the same manner as under section 402(g)(5).''.
SEC. 317. REMINING INCENTIVES.
Title IV of the Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1231 et seq.) is amended by adding at the
following:
``SEC. 415. REMINING INCENTIVES.
``(a) In General.--Notwithstanding any other provision of
this Act, the Secretary may, after opportunity for public
comment, promulgate regulations that describe conditions
under which amounts in the fund may be used to provide
incentives to promote remining of eligible land under section
404 in a manner that leverages the use of amounts from the
fund to achieve more reclamation with respect to the eligible
land than would be achieved without the incentives.
``(b) Requirements.--Any regulations promulgated under
subsection (a) shall specify that the incentives shall apply
only if the Secretary determines, with the concurrence of the
State regulatory authority referred to in title V, that,
without the incentives, the eligible land would not be likely
to be remined and reclaimed.
``(c) Incentives.--
``(1) In general.--Incentives that may be considered for
inclusion in the regulations promulgated under subsection (a)
include, but are not limited to--
``(A) a rebate or waiver of the reclamation fees required
under section 402(a); and
``(B) the use of amounts in the fund to provide financial
assurance for remining operations in lieu of all or a portion
of the performance bonds required under section 509.
``(2) Limitations.--
``(A) Use.--A rebate or waiver under paragraph (1)(A) shall
be used only for operations that--
``(i) remove or reprocess abandoned coal mine waste; or
``(ii) conduct remining activities that meet the priorities
specified in paragraph (1) or (2) of section 403(a).
``(B) Amount.--The amount of a rebate or waiver provided as
an incentive under paragraph (1)(A) to remine or reclaim
eligible land shall not exceed the estimated cost of
reclaiming the eligible land under this section.''.
SEC. 318. EXTENSION OF LIMITATION ON APPLICATION OF
PROHIBITION ON ISSUANCE OF PERMIT.
Section 510(e) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1260(e)) is amended by
striking the last sentence.
SEC. 319. TRIBAL REGULATION OF SURFACE COAL MINING AND
RECLAMATION OPERATIONS.
(a) In General.--Section 710 of the Surface Mining Control
and Reclamation Act of 1977 (30 U.S.C. 1300) is amended by
adding at the end the following:
``(j) Tribal Regulatory Authority.--
``(1) Tribal regulatory programs.--
``(A) In general.--Notwithstanding any other provision of
law, an Indian tribe may apply for, and obtain the approval
of, a tribal program under section 503 regulating in whole or
in part surface coal mining and reclamation operations on
reservation land under the jurisdiction of the Indian tribe
using the procedures of section 504(e).
``(B) References to state.--For purposes of this subsection
and the implementation and administration of a tribal program
under title V, any reference to a `State' in this Act shall
be considered to be a reference to a `tribe'.
``(2) Conflicts of interest.--
``(A) In general.--The fact that an individual is a member
of an Indian tribe does not in itself constitute a violation
of section 201(f).
``(B) Employees of tribal regulatory authority.--Any
employee of a tribal regulatory authority shall not be
eligible for a per capita distribution of any proceeds from
coal mining operations conducted on Indian reservation lands
under this Act.
``(3) Sovereign immunity.--To receive primary regulatory
authority under section 504(e), an Indian tribe shall waive
sovereign immunity for purposes of section 520 and paragraph
(4).
``(4) Judicial review.--
``(A) Civil actions.--
``(i) In general.--After exhausting all tribal remedies
with respect to a civil action arising under a tribal program
approved under section 504(e), an interested party may file a
petition for judicial review of the civil action in the
United States circuit court for
[[Page H6217]]
the circuit in which the surface coal mining operation named
in the petition is located.
``(ii) Scope of review.--
``(I) Questions of law.--The United States circuit court
shall review de novo any questions of law under clause (i).
``(II) Findings of fact.--The United States circuit court
shall review findings of fact under clause (i) using a
clearly erroneous standard.
``(B) Criminal actions.--Any criminal action brought under
section 518 with respect to surface coal mining or
reclamation operations on Indian reservation lands shall be
brought in--
``(i) the United States District Court for the District of
Columbia; or
``(ii) the United States district court in which the
criminal activity is alleged to have occurred.
``(5) Grants.--
``(A) In general.--Except as provided in subparagraph (B),
grants for developing, administering, and enforcing tribal
programs approved in accordance with section 504(e) shall be
provided to an Indian tribe in accordance with section 705.
``(B) Exception.--Notwithstanding subparagraph (A), the
Federal share of the costs of developing, administering, and
enforcing an approved tribal program shall be 100 percent.
``(6) Report.--Not later than 18 months after the date on
which a tribal program is approved under subsection (e) of
section 504, the Secretary shall submit to the appropriate
committees of Congress a report, developed in cooperation
with the applicable Indian tribe, on the tribal program that
includes a recommendation of the Secretary on whether primary
regulatory authority under that subsection should be expanded
to include additional Indian lands.''.
(b) Conforming Amendment.--Section 710(i) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C.
1300(i)) is amended in the first sentence by striking ``,
except'' and all that follows through ``section 503''.
Subtitle B--Coal Industry Retiree Health Benefit Act
SEC. 321. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST
RELIEVED OF LIABILITY IF PREMIUMS PREPAID.
(a) Combined Benefit Fund.--
(1) In general.--Section 9704 of the Internal Revenue Code
of 1986 (relating to liability of assigned operators) is
amended by adding at the end the following new subsection:
``(j) Prepayment of Premium Liability.--
``(1) In general.--If--
``(A) a payment meeting the requirements of paragraph (3)
is made to the Combined Fund by or on behalf of--
``(i) any assigned operator to which this subsection
applies, or
``(ii) any related person to any assigned operator
described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in paragraph (2)(B) is jointly and
severally liable for any premium under this section which
(but for this subsection) would be required to be paid by the
assigned operator or related person,
then such common parent (and no other person) shall be liable
for such premium.
``(2) Assigned operators to which subsection applies.--
``(A) In general.--This subsection shall apply to any
assigned operator if--
``(i) the assigned operator (or a related person to the
assigned operator)--
``(I) made contributions to the 1950 UMWA Benefit Plan and
the 1974 UMWA Benefit Plan for employment during the period
covered by the 1988 agreement; and
``(II) is not a 1988 agreement operator,
``(ii) the assigned operator (and all related persons to
the assigned operator) are not actively engaged in the
production of coal as of July 1, 2005, and
``(iii) the assigned operator was, as of July 20, 1992, a
member of a controlled group of corporations described in
subparagraph (B).
``(B) Controlled group of corporations.--A controlled group
of corporations is described in this subparagraph if the
common parent of such group is a corporation the shares of
which are publicly traded on a United States exchange.
``(C) Coordination with repeal of assignments.--A person
shall not fail to be treated as an assigned operator to which
this subsection applies solely because the person ceases to
be an assigned operator by reason of section 9706(h)(1) if
the person otherwise meets the requirements of this
subsection and is liable for the payment of premiums under
section 9706(h)(3).
``(D) Controlled group.--For purposes of this subsection,
the term `controlled group of corporations' has the meaning
given such term by section 52(a).
``(3) Requirements.--A payment meets the requirements of
this paragraph if--
``(A) the amount of the payment is not less than the
present value of the total premium liability under this
chapter with respect to the Combined Fund of the assigned
operators or related persons described in paragraph (1) or
their assignees, as determined by the operator's or related
person's enrolled actuary (as defined in section 7701(a)(35))
using actuarial methods and assumptions each of which is
reasonable and which are reasonable in the aggregate, as
determined by such enrolled actuary;
``(B) such enrolled actuary files with the Secretary of
Labor a signed actuarial report containing--
``(i) the date of the actuarial valuation applicable to the
report; and
``(ii) a statement by the enrolled actuary signing the
report that, to the best of the actuary's knowledge, the
report is complete and accurate and that in the actuary's
opinion the actuarial assumptions used are in the aggregate
reasonably related to the experience of the operator and to
reasonable expectations; and
``(C) 90 calendar days have elapsed after the report
required by subparagraph (B) is filed with the Secretary of
Labor, and the Secretary of Labor has not notified the
assigned operator in writing that the requirements of this
paragraph have not been satisfied.
``(4) Use of prepayment.--The Combined Fund shall--
``(A) establish and maintain an account for each assigned
operator or related person by, or on whose behalf, a payment
described in paragraph (3) was made,
``(B) credit such account with such payment (and any
earnings thereon), and
``(C) use all amounts in such account exclusively to pay
premiums that would (but for this subsection) be required to
be paid by the assigned operator.
Upon termination of the obligations for the premium liability
of any assigned operator or related person for which such
account is maintained, all funds remaining in such account
(and earnings thereon) shall be refunded to such person as
may be designated by the common parent described in paragraph
(1)(B).''.
(b) Individual Employer Plans.--Section 9711(c) of the
Internal Revenue Code of 1986 (relating to joint and several
liability) is amended to read as follows:
``(c) Joint and Several Liability of Related Persons.--
``(1) In general.--Except as provided in paragraph (2),
each related person of a last signatory operator to which
subsection (a) or (b) applies shall be jointly and severally
liable with the last signatory operator for the provision of
health care coverage described in subsection (a) or (b).
``(2) Liability limited if security provided.--If--
``(A) security meeting the requirements of paragraph (3) is
provided by or on behalf of--
``(i) any last signatory operator which is an assigned
operator described in section 9704(j)(2), or
``(ii) any related person to any last signatory operator
described in clause (i), and
``(B) the common parent of the controlled group of
corporations described in section 9704(j)(2)(B) is jointly
and severally liable for the provision of health care under
this section which, but for this paragraph, would be required
to be provided by the last signatory operator or related
person,
then, as of the date the security is provided, such common
parent (and no other person) shall be liable for the
provision of health care under this section which the last
signatory operator or related person would otherwise be
required to provide. Security may be provided under this
paragraph without regard to whether a payment was made under
section 9704(j).
``(3) Security.--Security meets the requirements of this
paragraph if--
``(A) the security--
``(i) is in the form of a bond, letter of credit, or cash
escrow,
``(ii) is provided to the trustees of the 1992 UMWA Benefit
Plan solely for the purpose of paying premiums for
beneficiaries who would be described in section 9712(b)(2)(B)
if the requirements of this section were not met by the last
signatory operator, and
``(iii) is in an amount equal to 1 year of liability of the
last signatory operator under this section, determined by
using the average cost of such operator's liability during
the prior 3 calendar years;
``(B) the security is in addition to any other security
required under any other provision of this title; and
``(C) the security remains in place for 5 years.
``(4) Refunds of security.--The remaining amount of any
security provided under this subsection (and earnings
thereon) shall be refunded to the last signatory operator as
of the earlier of--
``(A) the termination of the obligations of the last
signatory operator under this section, or
``(B) the end of the 5-year period described in paragraph
(4)(C).''.
(c) 1992 UMWA Benefit Plan.--Section 9712(d)(4) of the
Internal Revenue Code of 1986 (relating to joint and several
liability) is amended by adding at the end the following new
sentence: ``The provisions of section 9711(c)(2) shall apply
to any last signatory operator described in such section
(without regard to whether security is provided under such
section, a payment is made under section 9704(j), or both)
and if security meeting the requirements of section
9711(c)(3) is provided, the common parent described in
section 9711(c)(2)(B) shall be exclusively responsible for
any liability for premiums under this section which, but for
this sentence, would be required to be paid by the last
signatory operator or any related person.''.
(d) Successor in Interest.--Section 9701(c) of the Internal
Revenue Code of 1986 (relating to terms relating to
operators) is amended by adding at the end the following new
paragraph:
``(8) Successor in interest.--
``(A) Safe harbor.--The term `successor in interest' shall
not include any person who--
``(i) is an unrelated person to an eligible seller
described in subparagraph (C); and
[[Page H6218]]
``(ii) purchases for fair market value assets, or all of
the stock, of a related person to such seller, in a bona
fide, arm's-length sale.
``(B) Unrelated person.--The term `unrelated person' means
a purchaser who does not bear a relationship to the eligible
seller described in section 267(b).
``(C) Eligible seller.--For purposes of this paragraph, the
term `eligible seller' means an assigned operator described
in section 9704(j)(2) or a related person to such assigned
operator.''.
(e) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act,
except that the amendment made by subsection (d) shall apply
to transactions after the date of the enactment of this Act.
SEC. 322. TRANSFERS TO FUNDS; PREMIUM RELIEF.
(a) Combined Fund.--
(1) Federal transfers.--Section 9705(b) of the Internal
Revenue Code of 1986 (relating to transfers from Abandoned
Mine Reclamation Fund) is amended--
(A) in paragraph (1), by striking ``section 402(h)'' and
inserting ``subsections (h) and (i) of section 402'';
(B) by striking paragraph (2) and inserting the following
new paragraph:
``(2) Use of funds.--Any amount transferred under paragraph
(1) for any fiscal year shall be used to pay benefits and
administrative costs of beneficiaries of the Combined Fund or
for such other purposes as are specifically provided in the
Acts described in paragraph (1).''; and
(C) by striking ``From Abandoned Mine Reclamation Fund''.
(2) Modifications of premiums to reflect federal
transfers.--
(A) Elimination of unassigned beneficiaries premium.--
Section 9704(d) of such Code (establishing unassigned
beneficiaries premium) is amended to read as follows:
``(d) Unassigned Beneficiaries Premium.--
``(1) Plan years ending on or before september 30, 2006.--
For plan years ending on or before September 30, 2006, the
unassigned beneficiaries premium for any assigned operator
shall be equal to the applicable percentage of the product of
the per beneficiary premium for the plan year multiplied by
the number of eligible beneficiaries who are not assigned
under section 9706 to any person for such plan year.
``(2) Plan years beginning on or after october 1, 2006.--
``(A) In general.--For plan years beginning on or after
October 1, 2006, subject to subparagraph (B), there shall be
no unassigned beneficiaries premium, and benefit costs with
respect to eligible beneficiaries who are not assigned under
section 9706 to any person for any such plan year shall be
paid from amounts transferred under section 9705(b).
``(B) Inadequate transfers.--If, for any plan year
beginning on or after October 1, 2006, the amounts
transferred under section 9705(b) are less than the amounts
required to be transferred to the Combined Fund under
subsection (h)(2)(A) or (i) of section 402 of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232)),
then the unassigned beneficiaries premium for any assigned
operator shall be equal to the operator's applicable
percentage of the amount required to be so transferred which
was not so transferred.''.
(B) Premium accounts.--
(i) Crediting of accounts.--Section 9704(e)(1) of such Code
(relating to premium accounts; adjustments) is amended by
inserting ``and amounts transferred under section 9705(b)''
after ``premiums received''.
(ii) Surpluses attributable to public funding.--Section
9704(e)(3)(A) of such Code is amended by adding at the end
the following new sentence: ``Amounts credited to an account
from amounts transferred under section 9705(b) shall not be
taken into account in determining whether there is a surplus
in the account for purposes of this paragraph.''
(C) Applicable percentage.--Section 9704(f)(2) of such Code
(relating to annual adjustments) is amended by adding at the
end the following new subparagraph:
``(C) In the case of plan years beginning on or after
October 1, 2007, the total number of assigned eligible
beneficiaries shall be reduced by the eligible beneficiaries
whose assignments have been revoked under section 9706(h).''.
(3) Assignments and reassignment.--Section 9706 of the
Internal Revenue Code of 1986 (relating to assignment of
eligible beneficiaries) is amended by adding at the end the
following:
``(h) Assignments as of October 1, 2007.--
``(1) In general.--Subject to the premium obligation set
forth in paragraph (3), the Commissioner of Social Security
shall--
``(A) revoke all assignments to persons other than 1988
agreement operators for purposes of assessing premiums for
plan years beginning on and after October 1, 2007; and
``(B) make no further assignments to persons other than
1988 agreement operators, except that no individual who
becomes an unassigned beneficiary by reason of subparagraph
(A) may be assigned to a 1988 agreement operator.
``(2) Reassignment upon purchase.--This subsection shall
not be construed to prohibit the reassignment under
subsection (b)(2) of an eligible beneficiary.
``(3) Liability of persons during three fiscal years
beginning on and after october 1, 2007.--In the case of each
of the fiscal years beginning on October 1, 2007, 2008, and
2009, each person other than a 1988 agreement operator shall
pay to the Combined Fund the following percentage of the
amount of annual premiums that such person would otherwise be
required to pay under section 9704(a), determined on the
basis of assignments in effect without regard to the
revocation of assignments under paragraph (1)(A):
``(A) For the fiscal year beginning on October 1, 2007, 55
percent.
``(B) For the fiscal year beginning on October 1, 2008, 40
percent.
``(C) For the fiscal year beginning on October 1, 2009, 15
percent.''.
(4) Effective date.--The amendments made by this subsection
shall apply to plan years of the Combined Fund beginning
after September 30, 2006.
(b) 1992 UMWA Benefit and Other Plans.--
(1) Transfers to plans.--Section 9712(a) of the Internal
Revenue Code of 1986 (relating to the establishment and
coverage of the 1992 UMWA Benefit Plan) is amended by adding
at the end the following:
``(3) Transfers under other federal statutes.--
``(A) In general.--The 1992 UMWA Benefit Plan shall include
any amount transferred to the plan under subsections (h) and
(i) of section 402 of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232).
``(B) Use of funds.--Any amount transferred under
subparagraph (A) for any fiscal year shall be used to provide
the health benefits described in subsection (c) with respect
to any beneficiary for whom no monthly per beneficiary
premium is paid pursuant to paragraph (1)(A) or (3) of
subsection (d).
``(4) Special rule for 1993 plan.--
``(A) In general.--The plan described in section
402(h)(2)(C) of the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1232(h)(2)(C)) shall include any
amount transferred to the plan under subsections (h) and (i)
of the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232).
``(B) Use of funds.--Any amount transferred under
subparagraph (A) for any fiscal year shall be used to provide
the health benefits described in section 402(h)(2)(C)(i) of
the Surface Mining Control and Reclamation Act of 1977 (30
U.S.C. 1232(h)(2)(C)(i)) to individuals described in section
402(h)(2)(C) of such Act (30 U.S.C. 1232(h)(2)(C)).''.
(2) Premium adjustments.--
(A) In general.--Section 9712(d)(1) of such Code (relating
to guarantee of benefits) is amended to read as follows:
``(1) In general.--All 1988 last signatory operators shall
be responsible for financing the benefits described in
subsection (c) by meeting the following requirements in
accordance with the contribution requirements established in
the 1992 UMWA Benefit Plan:
``(A) The payment of a monthly per beneficiary premium by
each 1988 last signatory operator for each eligible
beneficiary of such operator who is described in subsection
(b)(2) and who is receiving benefits under the 1992 UMWA
benefit plan.
``(B) The provision of a security (in the form of a bond,
letter of credit, or cash escrow) in an amount equal to a
portion of the projected future cost to the 1992 UMWA Benefit
Plan of providing health benefits for eligible and
potentially eligible beneficiaries attributable to the 1988
last signatory operator.
``(C) If the amounts transferred under subsection (a)(3)
are less than the amounts required to be transferred to the
1992 UMWA Benefit Plan under subsections (h) and (i) of
section 402 of the Surface Mining Control and Reclamation Act
of 1977 (30 U.S.C. 1232), the payment of an additional
backstop premium by each 1988 last signatory operator which
is equal to such operator's share of the amounts required to
be so transferred but which were not so transferred,
determined on the basis of the number of eligible and
potentially eligible beneficiaries attributable to the
operator.''.
(B) Conforming amendments.--Section 9712(d) of such Code is
amended--
(i) in paragraph (2)(B), by striking ``prefunding'' and
inserting ``backstop'', and
(ii) in paragraph (3), by striking ``paragraph (1)(B)'' and
inserting ``paragraph (1) (A)''.
(C) Effective date.--The amendments made by this paragraph
shall apply to fiscal years beginning on or after October 1,
2010.
SEC. 323. OTHER PROVISIONS.
(a) Board of Trustees.--Section 9702(b) of the Internal
Revenue Code of 1986 (relating to board of trustees of the
Combined Fund) is amended to read as follows:
``(b) Board of Trustees.--
``(1) In general.--For purposes of subsection (a), the
board of trustees for the Combined Fund shall be appointed as
follows:
``(A) 2 individuals who represent employers in the coal
mining industry shall be designated by the BCOA;
``(B) 2 individuals designated by the United Mine Workers
of America; and
``(C) 3 individuals selected by the individuals appointed
under subparagraphs (A) and (B).
``(2) Successor trustees.--Any successor trustee shall be
appointed in the same manner as the trustee being succeeded.
The plan establishing the Combined Fund shall provide for the
removal of trustees.
[[Page H6219]]
``(3) Special rule.--If the BCOA ceases to exist, any
trustee or successor under paragraph (1)(A) shall be
designated by the 3 employers who were members of the BCOA on
the enactment date and who have been assigned the greatest
number of eligible beneficiaries under section 9706.''.
(b) Enforcement of Obligations.--
(1) Failure to pay premiums.--Section 9707(a) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Failures to Pay.--
``(1) Premiums for eligible beneficiaries.--There is hereby
imposed a penalty on the failure of any assigned operator to
pay any premium required to be paid under section 9704 with
respect to any eligible beneficiary.
``(2) Contributions required under the mining laws.--There
is hereby imposed a penalty on the failure of any person to
make a contribution required under section 402(h)(5)(B)(ii)
of the Surface Mining Control and Reclamation Act of 1977 to
a plan referred to in section 402(h)(2)(C) of such Act. For
purposes of applying this section, each such required monthly
contribution for the hours worked of any individual shall be
treated as if it were a premium required to be paid under
section 9704 with respect to an eligible beneficiary.''.
(2) Civil enforcement.--Section 9721 of such Code is
amended to read as follows:
``SEC. 9721. CIVIL ENFORCEMENT.
``The provisions of section 4301 of the Employee Retirement
Income Security Act of 1974 shall apply, in the same manner
as any claim arising out of an obligation to pay withdrawal
liability under subtitle E of title IV of such Act, to any
claim--
``(1) arising out of an obligation to pay any amount
required to be paid by this chapter; or
``(2) arising out of an obligation to pay any amount
required by section 402(h)(5)(B)(ii) of the Surface Mining
Control and Reclamation Act of 1977 (30 U.S.C.
1232(h)(5)(B)(ii)).''.
Mr. GEORGE MILLER of California (during the reading). Mr. Speaker, I
ask unanimous consent that the motion to recommit be considered as read
and printed in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
The SPEAKER pro tempore. The gentleman is recognized for 5 minutes.
Mr. GEORGE MILLER of California. Mr. Speaker, there has been a lot of
discussion and there appears to be almost unanimity in this Congress
that we should be raising the minimum wage. But it also is very clear
from this discussion that if we proceed with the bill that is before us
offered by the majority in this House, that we will not accomplish
transferring that legislation into the law of the land, because that
legislation has very little chance of passing in the time remaining in
this House.
We offer this motion to recommit because in this motion we offer the
minimum wage, we offer the extenders that are present in the bill that
is before us, and the provisions for coal mining. These are important,
they are widely supported in the Congress; we voted on them many times,
and they are important for all the reasons people cited here today.
But, most importantly, it will allow us to have in effect an up-or-down
vote on the minimum wage because it will not have the poison pill of
the estate tax, all of the costs, all of the deficit that is created by
that legislation. It will not bring that controversy to this chance,
the first chance in 9 years to raise the minimum wage for those people
working at the federally mandated minimum wage of $5.15 an hour.
We have now seen that many, many Members of this Congress have
decided that that is no longer acceptable in this country, that we
cannot mandate under Federal law that that is the minimum wage for
these people. And so we have an opportunity to change it, but the only
real opportunity to change it comes with the motion to recommit, where
we can clean this legislation up, we can take the poison pill out, we
can take the deficit spending out, we can take the privilege out of
this legislation, and we can address the important priorities of this
Nation.
That is what we should be doing at this point in this session of this
Congress. That is what we should be doing at 5 minutes after 1 o'clock
in the morning. We should be addressing the important priorities of
this Nation, and we should do it in the manner that ensures, that
almost guarantees the opportunity to pass the minimum wage so that
these people can help to lift themselves out of poverty, help to be
able to provide the wherewithal for their families, and be able to
continue in their employment.
We don't have to go the route that the Republicans went with the
minimum wage where these people have to wait another 18 months. We
don't have to go through this business of taking away the wages from
people who earn tips. We don't have to do any of that. We can have a
clean minimum wage, we can have clean extenders, clean coal provisions,
and we can go about our way and take care of the priorities of this
Nation.
Mr. Speaker, I yield to the gentleman from New York.
Mr. RANGEL. I thank the gentleman from California.
For those who have been listening to this debate, you would notice
that the Republicans have never talked about one part of this bill. I
heard the distinguished chairman of the committee go through all of the
things that he requested a ``yes'' for, and he never mentioned the
giveaway for the rich in the estate tax repeal.
Everything that he talked about dealt with helping the poor folks get
an increase in minimum wage. Well, that is the motion to recommit. I
think he mentioned something, other people did, about helping the poor
coal miners. That is here. I know he talked about the carefully skilled
extension, the tax bills that expire, the extenders for that, and that
is in it. And so since he didn't mention the estate tax repeal, a
motion to recommit takes it away. And so we can all start reading from
the same page and say this is like the Thomas-Rangel bill: it takes
care of the poor that are working, the 6 million workers that deserve a
pay increase. It takes care of the extenders that are so badly needed
that takes care of a lot of kids and tax incentives for disadvantaged
workers and school teachers and school renovations. And so it does a
lot of these good things.
But how can we refuse to see, pardon the pun, the elephant in the
living room? Because it is there, and that elephant is called estate
tax repeal. And you can say it any way that you want; if you want to do
the good things that are in this bill, package, if you will, you have
got to buy that elephant. And we are saying that not all of us are
prepared to do it. We can take care of those people who work every day
and believe that this Congress should be there for them, not as
Republicans, not as Democrats, but the Congress.
These people deserve better than waiting until after midnight and
taking their destiny and tying it up with an $800 billion elephant to
provide relief for the richest in this country. I urge you to support
the motion to recommit tonight.
Mr. THOMAS. Mr. Speaker, I rise in opposition to the motion.
The SPEAKER pro tempore. The gentleman is recognized for 5 minutes.
Mr. THOMAS. Mr. Speaker, speaker after speaker after speaker on the
other side of the aisle went in the well. What was the common plea?
Give us a clean vote on minimum wage. Just give us a clean vote on
minimum wage. You have got 169 pages here. They wrote it. They can't
even write a motion to recommit that is a clean vote on the minimum
wage. I am offended. And any other Member who is offended, vote ``no''
on the motion to recommit.
Mr. THOMAS. I yield back the balance of my time.
The SPEAKER pro tempore. Without objection, the previous question is
ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.
Recorded Vote
Mr. RANGEL. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule
XX, this 15-minute vote on the motion to recommit will be followed by
5-minute votes, if ordered, on passage of H.R. 5970, and conference
report on S. 250.
The vote was taken by electronic device, and there were--ayes 190,
noes 220, not voting 23, as follows:
[Roll No. 424]
AYES--190
Ackerman
Allen
Andrews
Baird
Baldwin
Bean
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boswell
Boucher
Boyd
Brady (PA)
Brown (OH)
[[Page H6220]]
Brown, Corrine
Butterfield
Capps
Capuano
Cardin
Cardoza
Carnahan
Carson
Case
Chandler
Clay
Cleaver
Clyburn
Conyers
Cooper
Costa
Costello
Crowley
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (FL)
Davis (IL)
Davis (TN)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Doggett
Doyle
Emanuel
Engel
Eshoo
Etheridge
Farr
Fattah
Filner
Ford
Frank (MA)
Gonzalez
Gordon
Green, Al
Green, Gene
Grijalva
Gutierrez
Harman
Hastings (FL)
Herseth
Higgins
Hinchey
Hinojosa
Holden
Holt
Honda
Hooley
Hoyer
Inslee
Israel
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson, E. B.
Jones (OH)
Kanjorski
Kaptur
Kennedy (RI)
Kildee
Kilpatrick (MI)
Kind
Kucinich
Langevin
Lantos
Larsen (WA)
Larson (CT)
Lee
Levin
Lipinski
Lofgren, Zoe
Lowey
Lynch
Maloney
Markey
Marshall
Matsui
McCarthy
McCollum (MN)
McDermott
McGovern
McIntyre
McNulty
Meek (FL)
Meeks (NY)
Melancon
Michaud
Millender-McDonald
Miller (NC)
Miller, George
Mollohan
Moore (KS)
Moore (WI)
Moran (VA)
Murtha
Nadler
Napolitano
Neal (MA)
Ney
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Pelosi
Peterson (MN)
Pomeroy
Price (NC)
Rahall
Rangel
Reyes
Ross
Rothman
Roybal-Allard
Ruppersberger
Rush
Ryan (OH)
Sabo
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Schakowsky
Schiff
Schwartz (PA)
Scott (GA)
Scott (VA)
Serrano
Sherman
Skelton
Slaughter
Smith (WA)
Snyder
Solis
Spratt
Strickland
Stupak
Tanner
Tauscher
Taylor (MS)
Thompson (CA)
Thompson (MS)
Tierney
Towns
Udall (CO)
Udall (NM)
Van Hollen
Velazquez
Visclosky
Wasserman Schultz
Waters
Watson
Watt
Waxman
Weiner
Wexler
Wilson (NM)
Woolsey
Wu
Wynn
NOES--220
Abercrombie
Aderholt
Akin
Alexander
Bachus
Barrett (SC)
Barrow
Bartlett (MD)
Barton (TX)
Bass
Beauprez
Biggert
Bilbray
Bishop (UT)
Blackburn
Blunt
Boehner
Bonilla
Bonner
Bono
Boozman
Boren
Boustany
Bradley (NH)
Brady (TX)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burton (IN)
Calvert
Camp (MI)
Campbell (CA)
Cannon
Cantor
Capito
Carter
Castle
Chabot
Chocola
Cole (OK)
Conaway
Cramer
Crenshaw
Cubin
Culberson
Davis (KY)
Davis, Tom
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doolittle
Drake
Dreier
Duncan
Edwards
Ehlers
Emerson
English (PA)
Everett
Feeney
Ferguson
Fitzpatrick (PA)
Flake
Foley
Forbes
Fortenberry
Fossella
Foxx
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gibbons
Gilchrest
Gillmor
Gingrey
Goode
Goodlatte
Graves
Green (WI)
Gutknecht
Hall
Harris
Hart
Hastert
Hastings (WA)
Hayes
Hayworth
Hefley
Hensarling
Herger
Hobson
Hoekstra
Hostettler
Hulshof
Hunter
Hyde
Inglis (SC)
Issa
Jenkins
Jindal
Johnson (CT)
Johnson (IL)
Johnson, Sam
Keller
Kelly
Kennedy (MN)
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kolbe
Kuhl (NY)
LaHood
Latham
LaTourette
Leach
Lewis (CA)
Lewis (KY)
LoBiondo
Lucas
Lungren, Daniel E.
Mack
Manzullo
Marchant
Matheson
McCaul (TX)
McCotter
McCrery
McHenry
McHugh
McKeon
McMorris
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Moran (KS)
Murphy
Musgrave
Myrick
Neugebauer
Norwood
Nunes
Nussle
Osborne
Otter
Paul
Pearce
Pence
Peterson (PA)
Petri
Pickering
Pitts
Platts
Poe
Pombo
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Regula
Rehberg
Reichert
Renzi
Reynolds
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Royce
Ryan (WI)
Ryun (KS)
Saxton
Schmidt
Schwarz (MI)
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherwood
Shimkus
Shuster
Simmons
Simpson
Smith (NJ)
Smith (TX)
Sodrel
Souder
Stearns
Sullivan
Sweeney
Tancredo
Taylor (NC)
Terry
Thomas
Thornberry
Tiahrt
Tiberi
Turner
Upton
Walsh
Wamp
Weldon (FL)
Weldon (PA)
Weller
Westmoreland
Whitfield
Wicker
Wilson (SC)
Wolf
Young (AK)
Young (FL)
NOT VOTING--23
Baca
Baker
Bilirakis
Boehlert
Buyer
Coble
Davis, Jo Ann
Deal (GA)
Evans
Gohmert
Granger
Istook
Jones (NC)
Lewis (GA)
Linder
McKinney
Meehan
Northup
Oxley
Payne
Salazar
Stark
Walden (OR)
{time} 0130
Mr. REICHERT, Mr. BOREN, Ms. PRYCE of Ohio, and Mr. CRAMER changed
their vote from ``aye'' to ``no.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
____________________