[Congressional Record Volume 154, Number 24 (Wednesday, February 13, 2008)]
[Senate]
[Pages S981-S983]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REID:
  S. 2636. A bill to provide needed housing reform; read the first 
time.

                                S. 2636

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Foreclosure Prevention Act of 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

       TITLE I--MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS

Sec. 101. Modifications on use of qualified mortgage bonds; temporary 
              increased volume cap for certain housing bonds.

 TITLE II--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                            FORECLOSED HOMES

Sec. 201. Emergency assistance for the redevelopment of abandoned and 
              foreclosed homes.

                TITLE III--HOUSING COUNSELING RESOURCES

Sec. 301. Housing counseling resources.

      TITLE IV--HELPING FAMILIES SAVE THEIR HOME IN BANKRUPTCY ACT

Sec. 401. Short title.

                  Subtitle A--Minimizing Foreclosures

Sec. 411. Special rules for modification of loans secured by 
              residences.
Sec. 412. Waiver of counseling requirement when homes are in 
              foreclosure.

             Subtitle B--Providing Other Debtor Protections

Sec. 421. Combating excessive fees.
Sec. 422. Maintaining debtors' legal claims.
Sec. 423. Resolving disputes.
Sec. 424. Enacting a homestead floor for debtors over 55 years of age.
Sec. 425. Disallowing claims from violations of consumer protection 
              laws.

              TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

Sec. 501. Short title.
Sec. 502. Enhanced mortgage loan disclosures.

                   TITLE VI--INCENTIVES FOR BUSINESS

Sec. 601. Carryback of certain net operating losses allowed for 5 
              years; temporary suspension of 90 percent AMT limit.

       TITLE I--MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS

     SEC. 101. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; 
                   TEMPORARY INCREASED VOLUME CAP FOR CERTAIN 
                   HOUSING BONDS.

       (a) Use of Qualified Mortgage Bonds Proceeds for Subprime 
     Refinancing Loans.--Section 143(k) of the Internal Revenue 
     Code of 1986 (relating to other definitions and special 
     rules) is amended by adding at the end the following new 
     paragraph:
       ``(12) Special rules for subprime refinancings.--
       ``(A) In general.--Notwithstanding the requirements of 
     subsection (i)(1), the proceeds of a qualified mortgage issue 
     may be used to refinance a mortgage on a residence which was 
     originally financed by the mortgagor through a qualified 
     subprime loan.
       ``(B) Special rules.--In applying this paragraph to any 
     case in which the proceeds of a qualified mortgage issue are 
     used for any refinancing described in subparagraph (A)--
       ``(i) subsection (a)(2)(D)(i) shall be applied by 
     substituting `12-month period' for `42-month period' each 
     place it appears,
       ``(ii) subsection (d) (relating to 3-year requirement) 
     shall not apply, and
       ``(iii) subsection (e) (relating to purchase price 
     requirement) shall be applied by using the market value of 
     the residence at the time of refinancing in lieu of the 
     acquisition cost.
       ``(C) Qualified subprime loan.--The term `qualified 
     subprime loan' means an adjustable rate single-family 
     residential mortgage loan originated after December 31, 2001, 
     and before January 1, 2008, that the bond issuer determines 
     would be reasonably likely to cause financial hardship to the 
     borrower if not refinanced.
       ``(D) Termination.--This paragraph shall not apply to any 
     bonds issued after December 31, 2010.''.
       (b) Increased Volume Cap for Certain Bonds.--
       (1) In general.--Subsection (d) of section 146 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(5) Increase and set aside for housing bonds for 2008.--
       ``(A) Increase for 2008.--In the case of calendar year 
     2008, the State ceiling for each State shall be increased by 
     an amount equal to $10,000,000,000 multiplied by a fraction--
       ``(i) the numerator of which is the population of such 
     State (as reported in the most recent decennial census), and
       ``(ii) the denominator of which is the total population of 
     all States (as reported in the most recent decennial census).
       ``(B) Set aside.--
       ``(i) In general.--Any amount of the State ceiling for any 
     State which is attributable to an increase under this 
     paragraph shall be allocated solely for one or more qualified 
     purposes.
       ``(ii) Qualified purpose.--For purposes of this paragraph, 
     the term `qualified purpose' means--

       ``(I) the issuance of exempt facility bonds used solely to 
     provide qualified residential rental projects, or
       ``(II) a qualified mortgage issue (determined by 
     substituting `12-month period' for `42-month period' each 
     place it appears in section 143(a)(2)(D)(i)).''.

       (2) Carryforward of unused limitations.--Subsection (f) of 
     section 146 of such Code is amended by adding at the end the 
     following new paragraph:
       ``(6) Special rules for increased volume cap under 
     subsection (d)(5).--
       ``(A) In general.--No amount which is attributable to the 
     increase under subsection (d)(5) may be used--
       ``(i) for a carryforward purpose other than a qualified 
     purpose (as defined in subsection (d)(5)), and
       ``(ii) to issue any bond after calendar year 2010.
       ``(B) Ordering rules.--For purposes of subparagraph (A), 
     any carryforward of an issuing authority's volume cap for 
     calendar year 2008 shall be treated as attributable to such 
     increase to the extent of such increase.''.
       (c) Alternative Minimum Tax.--
       (1) In general.--Clause (ii) of section 57(a)(5)(C) of the 
     Internal Revenue Code of 1986 is amended by striking ``shall 
     not include'' and all that follows and inserting ``shall not 
     include--

       ``(I) any qualified 501(c)(3) bond (as defined in section 
     145), or
       ``(II) any qualified mortgage bond (as defined in section 
     143(a)) or qualified veterans' mortgage bond (as defined in 
     section 143(b)) issued after the date of the enactment of 
     this subclause and before January 1, 2011.''.

       (2) Conforming amendment.--The heading for section 
     57(a)(5)(C)(ii) is amended by striking ``qualified 501(c)(3) 
     bonds'' and inserting ``certain bonds''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this title.

 TITLE II--EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND 
                            FORECLOSED HOMES

     SEC. 201. EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF 
                   ABANDONED AND FORECLOSED HOMES.

       (a) Direct Appropriations.--There shall be appropriated out 
     of any money in the Treasury not otherwise appropriated for 
     the

[[Page S982]]

     fiscal year 2008, $4,000,000,000, to remain available until 
     expended, for assistance to States and units of general local 
     government (as such terms are defined in section 102 of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5302)) for the redevelopment of abandoned and foreclosed 
     homes.
       (b) Allocation of Appropriated Amounts.--
       (1) In general.--The amounts appropriated or otherwise made 
     available to States and units of general local government 
     under this section shall be allocated based on a funding 
     formula established by the Secretary of Housing and Urban 
     Development.
       (2) Formula to be devised swiftly.--The funding formula 
     required under paragraph (1) shall be established not later 
     than 60 days after the date of enactment of this title.
       (3) Criteria.--The funding formula required under paragraph 
     (1) shall ensure that any amounts appropriated or otherwise 
     made available under this section are allocated to States and 
     units of general local government with the greatest need, as 
     such need is determined in the discretion of the Secretary 
     based on the following factors:
       (A) The number and percentage of home foreclosures in each 
     State or unit of general local government.
       (B) The number and percentage of homes financed by a 
     subprime mortgage related loan in each State or unit of 
     general local government.
       (C) The number and percentage of homes in default or 
     delinquency in each State or unit of general local 
     government.
       (4) Distribution.--Amounts appropriated or otherwise made 
     available to States and units of general local government 
     under this section shall be distributed according to the 
     funding formula required under paragraph (1) not later than 
     30 days after the establishment of such formula.
       (c) Use of Funds.--
       (1) In general.--Any State or unit of general local 
     government that receives amounts pursuant to this section 
     shall, not later than 18 months after the receipt of such 
     amounts, use such amounts to redevelop abandoned and 
     foreclosed homes.
       (2) Priority.--Any State or unit of general local 
     government that receives amounts pursuant to this section 
     shall in distributing such amounts give priority emphasis and 
     consideration to those metropolitan areas, metropolitan 
     cities, urban areas, rural areas, low- and moderate-income 
     areas, and other areas with the greatest need, including 
     those--
       (A) with the greatest percentage of home foreclosures;
       (B) with the highest percentage of homes financed by a 
     subprime mortgage related loan; or
       (C) identified by the State or unit of general local 
     government as likely to face a significant rise in the rate 
     of home foreclosures.
       (3) Eligible uses.--
       (A) In general.--Amounts made available under this section 
     may be used to--
       (i) make grants, loans, and other financing mechanisms to 
     community development financial institutions (as such term is 
     defined under section 103(5) of the Community Development 
     Banking and Financial Institutions Act of 1994 (12 U.S.C. 
     4702(5))), national intermediaries, and nonprofit housing or 
     community development organizations and others to purchase 
     and rehabilitate homes that have been abandoned or foreclosed 
     upon, in order to sell, rent, or redevelop such homes;
       (ii) establish financing mechanisms for redevelopment of 
     foreclosed upon homes, including such mechanisms as soft-
     seconds, loan loss reserves, and shared-equity loans for low- 
     and moderate-income homebuyers;
       (iii) purchase and rehabilitate homes that have been 
     abandoned or foreclosed upon, in order to sell, rent, or 
     redevelop such homes;
       (iv) establish land banks for homes that have been 
     foreclosed upon; and
       (v) demolish blighted structures.
       (B) Limitation.--Any funds used under this section for the 
     purchase of an abandoned or foreclosed upon home shall be at 
     a cost equal to or less than the appraised value of the home 
     based on the most up-to-date appraisal, as such appraisal is 
     defined by the Secretary.
       (d) Rule of Construction.--Amounts appropriated or 
     otherwise made available to States and units of general local 
     government under this section shall be treated as though such 
     funds were community development block grant funds under 
     title I of the Housing and Community Development Act of 1974.
       (e) Waiver Authority.--
       (1) In general.--In administering any amounts appropriated 
     or otherwise made available under this section, the Secretary 
     of Housing and Urban Development may waive, or specify 
     alternative requirements for, any provision of any statute or 
     regulation that the Secretary administers in connection with 
     the obligation by the Secretary or the use by the recipient 
     of such funds (except for requirements related to fair 
     housing, nondiscrimination, labor standards, and the 
     environment), in order to expedite or facilitate the use of 
     such funds.
       (2) Low and moderate income requirement.--Notwithstanding 
     the authority of the Secretary under paragraph (1), all of 
     the funds appropriated or otherwise made available under this 
     section shall be used with respect to persons whose income 
     does not exceed 120 percent of area median income.
       (f) Emergency Designation.--The amounts appropriated under 
     this title are designated as an emergency requirement and 
     necessary to meet emergency needs pursuant to section 204 of 
     S. Con. Res. 21 (110th Congress), the concurrent resolution 
     on the budget for fiscal year 2008.

                TITLE III--HOUSING COUNSELING RESOURCES

     SEC. 301. HOUSING COUNSELING RESOURCES.

       There shall be appropriated out of any money in the 
     Treasury not otherwise appropriated, for an additional amount 
     for the ``Neighborhood Reinvestment Corporation--Payment to 
     the Neighborhood Reinvestment Corporation'' $200,000,000,000, 
     to remain available until September 30, 2008, for foreclosure 
     mitigation activities under the terms and conditions 
     contained in the second paragraph under the heading 
     ``Neighborhood Reinvestment Corporation--Payment to the 
     Neighborhood Reinvestment Corporation'' of Public Law 110-
     161.

      TITLE IV--HELPING FAMILIES SAVE THEIR HOME IN BANKRUPTCY ACT

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Helping Families Save 
     Their Homes in Bankruptcy Act of 2008''.

                  Subtitle A--Minimizing Foreclosures

     SEC. 411. SPECIAL RULES FOR MODIFICATION OF LOANS SECURED BY 
                   RESIDENCES.

       (a) In General.--Section 1322(b) of title 11, United States 
     Code, is amended--
       (1) in paragraph (10), by striking ``and'' at the end;
       (2) by redesignating paragraph (11) as paragraph (12); and
       (3) by inserting after paragraph (10) the following:
       ``(11) notwithstanding paragraph (2) and otherwise 
     applicable nonbankruptcy law--
       ``(A) modify an allowed secured claim secured by the 
     debtor's principal residence, as described in subparagraph 
     (B), if, after deduction from the debtor's current monthly 
     income of the expenses permitted for debtors described in 
     section 1325(b)(3) of this title (other than amounts 
     contractually due to creditors holding such allowed secured 
     claims and additional payments necessary to maintain 
     possession of that residence), the debtor has insufficient 
     remaining income to retain possession of the residence by 
     curing a default and maintaining payments while the case is 
     pending, as provided under paragraph (5); and
       ``(B) provide for payment of such claim--
       ``(i) for a period not to exceed 30 years (reduced by the 
     period for which the loan has been outstanding) from the date 
     of the order for relief under this chapter; and
       ``(ii) at a rate of interest accruing after such date 
     calculated at a fixed annual percentage rate, in an amount 
     equal to the most recently published annual yield on 
     conventional mortgages published by the Board of Governors of 
     the Federal Reserve System, as of the applicable time set 
     forth in the rules of the Board, plus a reasonable premium 
     for risk; and''.
       (b) Conforming Amendment.--Section 1325(a)(5) of title 11, 
     United States Code, is amended by inserting before ``with 
     respect'' the following: ``except as otherwise provided in 
     section 1322(b)(11) of this title,''.

     SEC. 412. WAIVER OF COUNSELING REQUIREMENT WHEN HOMES ARE IN 
                   FORECLOSURE.

       Section 109(h) of title 11, United States Code, is amended 
     by adding at the end the following:
       ``(5) Paragraph (1) shall not apply with respect to a 
     debtor who files with the court a certification that a 
     foreclosure sale of the debtor's principal residence has been 
     scheduled.''.

             Subtitle B--Providing Other Debtor Protections

     SEC. 421. COMBATING EXCESSIVE FEES.

       Section 1322(c) of title 11, the United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) to the extent that an allowed secured claim is 
     secured by the debtor's principal residence, the value of 
     which is greater than the amount of such claim, fees, costs, 
     or charges arising during the pendency of the case may be 
     added to secured debt provided for by the plan only if--
       ``(A) notice of such fees, costs or charges is filed with 
     the court before the expiration of the earlier of--
       ``(i) 1 year after the time at which they are incurred; or
       ``(ii) 60 days before the conclusion of the case; and
       ``(B) such fees, costs, or charges are lawful, reasonable, 
     and provided for in the underlying contract;
       ``(4) the failure of a party to give notice described in 
     paragraph (3) shall be deemed a waiver of any claim for fees, 
     costs, or charges described in paragraph (3) for all 
     purposes, and any attempt to collect such fees, costs, or 
     charges shall constitute a violation of section 524(a)(2) of 
     this title or, if the violation occurs before the date of 
     discharge, of section 362(a) of this title; and
       ``(5) a plan may provide for the waiver of any prepayment 
     penalty on a claim secured by the principal residence of the 
     debtor.''.

     SEC. 422. MAINTAINING DEBTORS' LEGAL CLAIMS.

       Section 554(e) of title 11, United States Code, is amended 
     by adding at the end the following:

[[Page S983]]

       ``(e) In any action in State or Federal court with respect 
     to a claim or defense asserted by an individual debtor in 
     such action that was not scheduled under section 521(a)(1) of 
     this title, the trustee shall be allowed a reasonable time to 
     request joinder or substitution as the real party in 
     interest. If the trustee does not request joinder or 
     substitution in such action, the debtor may proceed as the 
     real party in interest, and no such action shall be dismissed 
     on the ground that it is not prosecuted in the name of the 
     real party in interest or on the ground that the debtor's 
     claims were not properly scheduled in a case under this 
     title.''.

     SEC. 423. RESOLVING DISPUTES.

       Section 1334 of title 28, United States Code, is amended by 
     adding at the end the following: ``Notwithstanding any 
     agreement for arbitration that is subject to chapter 1 of 
     title 9, in any core proceeding under section 157(b) of this 
     title involving an individual debtor whose debts are 
     primarily consumer debts, the court may hear and determine 
     the proceeding, and enter appropriate orders and judgments, 
     in lieu of referral to arbitration.''.

     SEC. 424. ENACTING A HOMESTEAD FLOOR FOR DEBTORS OVER 55 
                   YEARS OF AGE.

       (a) In General.--Section 522(b)(3) of title 11, United 
     States Code, is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end and inserting the following:
       ``(D) if the debtor, as of the date of the filing of the 
     petition, is 55 years old or older, the debtor's aggregate 
     interest, not to exceed $75,000 in value, in real property or 
     personal property that the debtor or a dependent of the 
     debtor uses as a principal residence, or in a cooperative 
     that owns property that the debtor or a dependent of the 
     debtor uses as a principal residence.''.
       (b) Exemption Authority.--Section 522(d)(1) of title 11, 
     United States Code, is amended by inserting ``or, if the 
     debtor is 55 years of age or older, $75,000 in value,'' 
     before ``in real property''.

     SEC. 425. DISALLOWING CLAIMS FROM VIOLATIONS OF CONSUMER 
                   PROTECTION LAWS.

       Section 502(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (8), by striking ``or'' at the end;
       (2) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(10) the claim is subject to any remedy for damages or 
     rescission due to failure to comply with any applicable 
     requirement under the Truth in Lending Act (15 U.S.C. 1601 et 
     seq.), or any other provision of applicable State or Federal 
     consumer protection law that was in force when the 
     noncompliance took place, notwithstanding the prior entry of 
     a foreclosure judgment.''.

              TITLE V--MORTGAGE DISCLOSURE IMPROVEMENT ACT

     SEC. 501. SHORT TITLE.

       This title may be cited as the ``Mortgage Disclosure 
     Improvement Act of 2008''.

     SEC. 502. ENHANCED MORTGAGE LOAN DISCLOSURES.

       (a) Truth in Lending Act Disclosures.--Section 128(b)(2) of 
     the Truth in Lending Act (15 U.S.C. 1638(b)(2)) is amended--
       (1) by inserting ``(A)'' before ``In the'';
       (2) by striking ``a residential mortgage transaction, as 
     defined in section 103(w)'' and inserting ``any extension of 
     credit that is secured by the dwelling of a consumer'';
       (3) by striking ``shall be made in accordance'' and all 
     that follows through ``extended, or'';
       (4) by striking ``If the'' and all that follows through the 
     end of the paragraph and inserting the following:
       ``(B) In the case of an extension of credit that is secured 
     by the dwelling of a consumer, in addition to the other 
     disclosures required by subsection (a), the disclosures 
     provided under this paragraph shall--
       ``(i) state in conspicuous type size and format, the 
     following: `You are not required to complete this agreement 
     merely because you have received these disclosures or signed 
     a loan application.'; and
       ``(ii) be furnished to the borrower not later than 7 
     business days before the date of consummation of the 
     transaction, and at the time of consummation of the 
     transaction, subject to subparagraph (D).
       ``(C) In the case of an extension of credit that is secured 
     by the dwelling of a consumer, under which the annual rate of 
     interest is variable, or with respect to which the regular 
     payments may otherwise be variable, in addition to the other 
     disclosures required by subsection (a), the disclosures 
     provided under this paragraph shall--
       ``(i) label the payment schedule as follows: `Payment 
     Schedule: Payments Will Vary Based on Interest Rate Changes'; 
     and
       ``(ii) state the maximum amount of the regular required 
     payments on the loan, based on the maximum interest rate 
     allowed, introduced with the following language in 
     conspicuous type size and format: `Your payment can go as 
     high as ___', the blank to be filled in with the maximum 
     possible payment amount.
       ``(D) In any case in which the disclosure statement 
     provided 7 business days before the date of consummation of 
     the transaction contains an annual percentage rate of 
     interest that is no longer accurate, as determined under 
     section 107(c), the creditor shall furnish an additional, 
     corrected statement to the borrower, not later than 3 
     business days before the date of consummation of the 
     transaction.''.
       (b) Civil Liability.--Section 130(a) of the Truth in 
     Lending Act (15 U.S.C. 1640(a)) is amended--
       (1) in paragraph (2)(A)(iii), by striking ``not less than 
     $200 or greater than $2,000'' and inserting ``$5,000, such 
     amount to be adjusted annually based on the consumer price 
     index, to maintain current value''; and
       (2) in the penultimate sentence of the undesignated matter 
     following paragraph (4)--
       (A) by striking ``only for'' and inserting ``for'';
       (B) by striking ``section 125 or'' and inserting ``section 
     122, section 125,'';
       (C) by inserting ``or section 128(b),''after ``128(a),''; 
     and
       (D) by inserting ``or section 128(b)'' before the period.

                   TITLE VI--INCENTIVES FOR BUSINESS

     SEC. 601. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED 
                   FOR 5 YEARS; TEMPORARY SUSPENSION OF 90 PERCENT 
                   AMT LIMIT.

       (a) In General.--Subparagraph (H) of section 172(b)(1) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(H) 5-year carryback of certain losses.--
       ``(i) Taxable years ending during 2001 and 2002.--In the 
     case of a net operating loss for any taxable year ending 
     during 2001 or 2002, subparagraph (A)(i) shall be applied by 
     substituting `5' for `2' and subparagraph (F) shall not 
     apply.
       ``(ii) Taxable years beginning or ending during 2006, 2007, 
     and 2008.--In the case of a net operating loss with respect 
     to any eligible taxpayer (within the meaning of section 
     168(k)(1)(B)) for any taxable year beginning or ending during 
     2006, 2007, or 2008--

       ``(I) subparagraph (A)(i) shall be applied by substituting 
     `5' for `2',
       ``(II) subparagraph (E)(ii) shall be applied by 
     substituting `4' for `2', and
       ``(III) subparagraph (F) shall not apply.''.

       (b) Temporary Suspension of 90 Percent Limit on Certain NOL 
     Carrybacks and Carryovers.--
       (1) In general.--Section 56(d) of the of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(3) Additional adjustments.--For purposes of paragraph 
     (1)(A), in the case of an eligible taxpayer (within the 
     meaning of section 168(k)(1)(B)), the amount described in 
     clause (I) of paragraph (1)(A)(ii) shall be increased by the 
     amount of the net operating loss deduction allowable for the 
     taxable year under section 172 attributable to the sum of--
       ``(A) carrybacks of net operating losses from taxable years 
     beginning or ending during 2006, 2007, and 2008, and
       ``(B) carryovers of net operating losses to taxable years 
     beginning or ending during 2006, 2007, or 2008.''.
       (2) Conforming amendment.--Subclause (I) of section 
     56(d)(1)(A)(i) of such Code is amended by inserting ``amount 
     of such'' before ``deduction described in clause (ii)(I)''.
       (c) Anti-Abuse Rules.--The Secretary of Treasury or the 
     Secretary's designee shall prescribes such rules as are 
     necessary to prevent the abuse of the purposes of the 
     amendments made by this section, including anti-stuffing 
     rules, anti-churning rules (including rules relating to sale-
     leasebacks), and rules similar to the rules under section 
     1091 of the Internal Revenue Code of 1986 relating to losses 
     from wash sales.
       (d) Effective Dates.--
       (1) Subsection (a).--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by subsection (a) shall apply to net 
     operating losses arising in taxable years beginning or ending 
     in 2006, 2007, or 2008.
       (B) Election.--In the case of an eligible taxpayer (within 
     the meaning of section 168(k)(1)(B) of the Internal Revenue 
     Code of 1986) with a net operating loss for a taxable year 
     beginning or ending during 2006 or 2007--
       (i) any election made under section 172(b)(3) of the 
     Internal Revenue Code of 1986 may (notwithstanding such 
     section) be revoked before November 1, 2008, and
       (ii) any election made under section 172(j) of such Code 
     shall (notwithstanding such section) be treated as timely 
     made if made before November 1, 2008.
       (2) Subsection (b).--The amendments made by subsection (b) 
     shall apply to taxable years ending after December 31, 1995.

                          ____________________