[Congressional Record Volume 154, Number 61 (Thursday, April 17, 2008)]
[Senate]
[Pages S3156-S3160]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mr. Grassley, Mr. Salazar, Mr. 
        Schumer, Ms. Stabenow, Mr. Smith, Mr. Crapo, Mr. Rockefeller, 
        Mr. Kyl, and Ms. Snowe):
  S. 2886. A bill to amend the Internal Revenue Code of 1986 to amend 
certain expiring provisions; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, today I am introducing a tax package that 
would extend relief from the alternative minimum tax and extend other 
much-needed individual and business provisions.
  When the economy is turning down, Americans need certainty about 
their taxes. Families and businesses need to know what the tax law is.
  That is why my bill provides a one year patch for the AMT. The patch 
will hold the number of taxpayers subject to the AMT at 4.2 million. We 
will not let more taxpayers fall into the alternative minimum tax.
  Last year, Congress did not put a patch in place until December. We 
must act sooner this year. Through this bill, Congress can act.
  That is why my package contains a 2-year extension of provisions that 
expired at the end of last year.
  These include the qualified tuition deduction to give families relief 
from high tuition costs.
  My package also includes the teacher expense deduction. This 
deduction gives teachers some of the money that they spend on school 
supplies to educate our children.
  The package also includes the State and local sales tax deduction for 
those States without an income tax.
  The bill offers an extension of the research and development credit. 
This credit gives an incentive to businesses to invest in research. It 
helps to keep America competitive in the global economy.
  My package will also extend provisions that expire this year for an 
additional year.
  The bill extends much-needed energy provisions.
  Public and private investment in the renewable energy sector was 
about $90 billion worldwide last year. That's a 27 percent increase 
over 2006.
  Congress can direct this investment toward the U.S.--rather than 
overseas--by supporting clean energy tax incentives.
  These incentives include tax credits for wind and solar power, 
efficient buildings and appliances, and clean renewable energy bonds.
  These provisions are not only good energy policy. They also create 
jobs.
  This package would also extend wind and solar provisions.
  The American solar industry employs 20,000 Americans. With a long-
term extension of the solar tax credit, that number would triple.
  The American wind industry expanded by 45 percent in 2007. It 
contributed about 30 percent of the new power capacity in America last 
year.
  These job-creating industries are growing fast. We should support 
them. We know what happens when we don't.
  For example, the tax credit for production of renewable energy was 
enacted in 1992, starting the growth of renewable power in the U.S.
  But since 1999, this credit has expired three times. And when it 
expires, clean energy suffers, leading to declines between 73 percent 
and 93 percent in wind energy investment.
  We need to keep this credit going to ensure consistent investment in 
the wind power industry.
  This package would also promote energy efficiency. Efficiency is the 
low- hanging fruit in the energy debate. We can make big strides toward 
energy independence and a clean environment by getting more for our 
energy buck.
  For example, ENERGY STAR--a voluntary labeling program designed to 
promote energy-efficient products--saved businesses, organizations, and 
consumers an estimated $14 billion in 2006.
  Efficiency also creates jobs. The American Solar Energy Society 
reported that in 2006, the efficiency industry created 8 million jobs, 
over half of them in manufacturing.
  The government plays a key role in sustaining the efficiency 
industry, through tax incentives for efficient commercial buildings, 
homes, and appliances.
  This package would also extend the clean renewable energy bonds, or 
CREBs.
  CREBs passed in the Energy Policy Act of 2005. CREBs spurred more 
than 700 new wind, biomass, solar, and hydro projects. The number of 
projects far exceeded the funding available to pay for them.
  But CREBs funding lapsed at the end of 2007. That halted development 
of new projects and the green-collar jobs that go with them. We must 
keep these projects going.
  The CREBs provision was written for non-taxable entities like rural 
co-ops. Those non-taxable entities cannot use other tax incentives in 
this package.

[[Page S3157]]

  I've listed just a few of the important energy items in this 
extenders bill. There are more. And I plan to build upon this package 
as it makes its way through the legislative process, with edits and 
additional items. The Finance Committee has been working to that end 
for the better part of a year.
  Last June, the Finance Committee passed a roughly $30 billion energy-
tax package, with a resounding bipartisan vote. A majority of the 
Senate voted for that bill.
  But we were just shy of getting the required 60 votes.
  We tried again in December, with a slimmer package. That time, we 
fell short of the required 60 by just one vote.
  We then tried in February, as part of economic stimulus bill. We 
offered a package very similar to what passed last week. That amendment 
got 58 votes.
  Last week, this body passed, by a solid 88-8 vote, a package of 
energy-tax extenders, similar to the package considered during the 
economic stimulus debate.
  A vote of 88 to 8 might suggest that there is smooth sailing ahead on 
energy-tax legislation. But I'm afraid that's not the case.
  The day before the Senate passed its housing bill, including the 
energy-tax package, the House Ways and Means Committee passed its own 
housing relief bill.
  The Ways and Means bill restated the House's position on pay-go. The 
House requires that the most of the tax package be offset.
  How did the Ways and Means Committee offset the bill? Largely with a 
provision called ``basis reporting.'' President Bush included this in 
his 2009 budget proposal.
  In other words, the House paid for a tax package with an item already 
supported, at least in principle, by the President.
  While I believe that this Congress should have paid for energy-tax 
legislation with the offsets passed by Finance Committee last year, 
it's not clear that passing that package gets us any further to 
extending these important tax incentives.
  That is why I have been working on offsets that can pass both bodies 
and be signed by the President. That is what I will continue to do to 
get these important energy items--as well as other vital extenders--
passed.
  By taking care of this now, we can spend more of our time on other 
things like tax reform.
  I plan to hold several hearings and roundtables to cuss tax reform. 
We began this week. I'm serious about simplifying our tax code. I am 
serious about helping the American people.
  Congress should do more than just extend legislation. Congress needs 
to work on new policy, new legislation, and new ideas. And by enacting 
this legislation, we can turn to those important goals. I urge my 
colleagues to support this package.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2886

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Alternative Minimum Tax and Extenders Tax Relief Act of 
     2008''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

                TITLE I--ALTERNATIVE MINIMUM TAX RELIEF

Sec. 101. Extension of alternative minimum tax relief for nonrefundable 
              personal credits.
Sec. 102. Extension of increased alternative minimum tax exemption 
              amount.

                  TITLE II--INDIVIDUAL TAX PROVISIONS

Sec. 201. Election to include combat pay as earned income for purposes 
              of the earned income credit.
Sec. 202. Distributions from retirement plans to individuals called to 
              active duty.
Sec. 203. Deduction for State and local sales taxes.
Sec. 204. Deduction of qualified tuition and related expenses.
Sec. 205. Deduction for certain expenses of elementary and secondary 
              school teachers.
Sec. 206. Modification of mortgage revenue bonds for veterans.
Sec. 207. Tax-free distributions from individual retirement plans for 
              charitable purposes.
Sec. 208. Treatment of certain dividends of regulated investment 
              companies.
Sec. 209. Stock in RIC for purposes of determining estates of 
              nonresidents not citizens.
Sec. 210. Qualified investment entities.
Sec. 211. Qualified conservation contributions.

                   TITLE III--BUSINESS TAX PROVISIONS

Sec. 301. Extension and modification of research credit.
Sec. 302. New markets tax credit.
Sec. 303. Subpart F exception for active financing income.
Sec. 304. Extension of look-thru rule for related controlled foreign 
              corporations.
Sec. 305. Extension of 15-year straight-line cost recovery for 
              qualified leasehold improvements and qualified restaurant 
              improvements.
Sec. 306. Enhanced charitable deduction for contributions of food 
              inventory.
Sec. 307. Extension of enhanced charitable deduction for contributions 
              of book inventory.
Sec. 308. Modification of tax treatment of certain payments to 
              controlling exempt organizations.
Sec. 309. Basis adjustment to stock of S corporations making charitable 
              contributions of property.
Sec. 310. Increase in limit on cover over of rum excise tax to Puerto 
              Rico and the Virgin Islands.
Sec. 311. Parity in the application of certain limits to mental health 
              benefits.
Sec. 312. Extension of economic development credit for American Samoa.
Sec. 313. Extension of mine rescue team training credit.
Sec. 314. Extension of election to expense advanced mine safety 
              equipment.
Sec. 315. Extension of expensing rules for qualified film and 
              television productions.
Sec. 316. Deduction allowable with respect to income attributable to 
              domestic production activities in Puerto Rico.
Sec. 317. Extension of qualified zone academy bonds.
Sec. 318. Indian employment credit.
Sec. 319. Accelerated depreciation for business property on Indian 
              reservation.
Sec. 320. Railroad track maintenance.
Sec. 321. Seven-year cost recovery period for motorsports racing track 
              facility.
Sec. 322. Expensing of environmental remediation costs.
Sec. 323. Extension of work opportunity tax credit for Hurricane 
              Katrina employees.

               TITLE IV--EXTENSIONS OF ENERGY PROVISIONS

Sec. 401. Extension of credit for energy efficient appliances.
Sec. 402. Extension of credit for nonbusiness energy property.
Sec. 403. Extension of credit for residential energy efficient 
              property.
Sec. 404. Extension of renewable electricity, refined coal, and Indian 
              coal production credit.
Sec. 405. Extension of new energy efficient home credit.
Sec. 406. Extension of energy credit.
Sec. 407. Extension and modification of credit for clean renewable 
              energy bonds.
Sec. 408. Extension of energy efficient commercial buildings deduction.

                      TITLE V--TAX ADMINISTRATION

Sec. 501. Permanent authority for undercover operations.
Sec. 502. Permanent disclosures of certain tax return information.
Sec. 503. Disclosure of information relating to terrorist activities.

                TITLE I--ALTERNATIVE MINIMUM TAX RELIEF

     SEC. 101. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
                   NONREFUNDABLE PERSONAL CREDITS.

       (a) In General.--Paragraph (2) of section 26(a) (relating 
     to special rule for taxable years 2000 through 2007) is 
     amended--
       (1) by striking ``or 2007'' and inserting ``2007, or 
     2008'', and
       (2) by striking ``2007'' in the heading thereof and 
     inserting ``2008''.
       (b)  Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 102. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
                   EXEMPTION AMOUNT.

       (a) In General.--Paragraph (1) of section 55(d) (relating 
     to exemption amount) is amended--

[[Page S3158]]

       (1) by striking ``($66,250 in the case of taxable years 
     beginning in 2007)'' in subparagraph (A) and inserting 
     ``($69,950 in the case of taxable years beginning in 2008)'', 
     and
       (2) by striking ``($44,350 in the case of taxable years 
     beginning in 2007)'' in subparagraph (B) and inserting 
     ``($46,200 in the case of taxable years beginning in 2008)''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

                  TITLE II--INDIVIDUAL TAX PROVISIONS

     SEC. 201. ELECTION TO INCLUDE COMBAT PAY AS EARNED INCOME FOR 
                   PURPOSES OF THE EARNED INCOME CREDIT.

       (a) In General.--Subclause (II) of section 32(c)(2)(B)(vi) 
     (defining earned income) is amended by striking ``January 1, 
     2008'' and inserting ``January 1, 2010''.
       (b) Conforming Amendment.--Paragraph (4) of section 6428, 
     as amended by the Economic Stimulus Act of 2008, is amended 
     to read as follows:
       ``(4) Earned income.--The term `earned income' has the 
     meaning set forth in section 32(c)(2) except that such term 
     shall not include net earnings from self-employment which are 
     not taken into account in computing taxable income.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after December 31, 2007.

     SEC. 202. DISTRIBUTIONS FROM RETIREMENT PLANS TO INDIVIDUALS 
                   CALLED TO ACTIVE DUTY.

       (a) In General.--Clause (iv) of section 72(t)(2)(G) is 
     amended by striking ``December 31, 2007'' and inserting 
     ``January 1, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to individuals ordered or called to active duty 
     on or after December 31, 2007.

     SEC. 203. DEDUCTION FOR STATE AND LOCAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``January 1, 2008'' and inserting 
     ``January 1, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 204. DEDUCTION OF QUALIFIED TUITION AND RELATED 
                   EXPENSES.

       (a) In General.--Subsection (e) of section 222 (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 205. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND 
                   SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2) 
     (relating to certain expenses of elementary and secondary 
     school teachers) is amended by striking ``or 2007'' and 
     inserting ``2007, 2008, or 2009''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 206. MODIFICATION OF MORTGAGE REVENUE BONDS FOR 
                   VETERANS.

       (a) Qualified Mortgage Bonds Used To Finance Residences for 
     Veterans Without Regard to First-Time Homebuyer 
     Requirement.--Subparagraph (D) of section 143(d)(2) (relating 
     to exceptions) is amended by inserting ``and after the date 
     of the enactment of the Alternative Minimum Tax and Extenders 
     Tax Relief Act of 2008 and before January 1, 2010'' after 
     ``January 1, 2008''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 207. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT 
                   PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8) 
     (relating to termination) is amended by striking ``December 
     31, 2007'' and inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after December 31, 2007.

     SEC. 208. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
                   INVESTMENT COMPANIES.

       (a) Interest-Related Dividends.--Subparagraph (C) of 
     section 871(k)(1) (defining interest-related dividend) is 
     amended by striking ``December 31, 2007'' and inserting 
     ``December 31, 2009''.
       (b) Short-Term Capital Gain Dividends.--Subparagraph (C) of 
     section 871(k)(2) (defining short-term capital gain dividend) 
     is amended by striking ``December 31, 2007'' and inserting 
     ``December 31, 2009''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to dividends with respect to taxable years of 
     regulated investment companies beginning after December 31, 
     2007.

     SEC. 209. STOCK IN RIC FOR PURPOSES OF DETERMINING ESTATES OF 
                   NONRESIDENTS NOT CITIZENS.

       (a) In General.--Paragraph (3) of section 2105(d) (relating 
     to stock in a RIC) is amended by striking ``December 31, 
     2007'' and inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to decedents dying after December 31, 2007.

     SEC. 210. QUALIFIED INVESTMENT ENTITIES.

       (a) In General.--Clause (ii) of section 897(h)(4)(A) 
     (relating to termination) is amended by striking ``December 
     31, 2007'' and inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2008.

     SEC. 211. QUALIFIED CONSERVATION CONTRIBUTIONS.

       (a) In General.--Clause (vi) of section 170(b)(1)(E) 
     (relating to termination) is amended by striking ``December 
     31, 2007'' and inserting ``December 31, 2009''.
       (b) Contributions by Corporate Farmers and Ranchers.--
     Clause (iii) of section 170(b)(2)(B) (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2009''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2007.

                   TITLE III--BUSINESS TAX PROVISIONS

     SEC. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

       (a) Extension.--Section 41(h) (relating to termination) is 
     amended--
       (1) by striking ``December 31, 2007'' and inserting 
     ``December 31, 2009'' in paragraph (1)(B),
       (2) by redesignating paragraph (2) as paragraph (3), and
       (3) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Termination of alternative incremental credit.--No 
     election under subsection (c)(4) shall apply to amounts paid 
     or incurred after December 31, 2007.''.
       (b) Modification of Alternative Simplified Credit.--
     Paragraph (5)(A) of section 41(c) (relating to election of 
     alternative simplified credit) is amended to read as follows:
       ``(A) In general.--
       ``(i) Calculation of credit.--At the election of the 
     taxpayer, the credit determined under subsection (a)(1) shall 
     be equal to the applicable percentage (as defined in clause 
     (ii)) 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.
       ``(ii) Applicable percentage.--For purposes of the 
     calculation under clause (i), the applicable percentage is--

       ``(I) 14 percent, in the case of taxable years ending 
     before January 1, 2009, and
       ``(II) 16 percent, in the case of taxable years beginning 
     after December 31, 2008.''.

       (c) Conforming Amendment.--Subparagraph (D) of section 
     45C(b)(1) (relating to special rule) is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2009''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2007.

     SEC. 302. NEW MARKETS TAX CREDIT.

       Subparagraph (D) of section 45D(f)(1) (relating to national 
     limitation on amount of investments designated) is amended by 
     striking ``and 2008'' and inserting ``2008, and 2009''.

     SEC. 303. SUBPART F EXCEPTION FOR ACTIVE FINANCING INCOME.

       (a) Exempt Insurance Income.--Paragraph (10) of section 
     953(e) (relating to application) is amended--
       (1) by striking ``January 1, 2009'' and inserting ``January 
     1, 2010'', and
       (2) by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (b) Exception to Treatment as Foreign Personal Holding 
     Company Income.--Paragraph (9) of section 954(h) (relating to 
     application) is amended by striking ``January 1, 2009'' and 
     inserting ``January 1, 2010''.

     SEC. 304. EXTENSION OF LOOK-THRU RULE FOR RELATED CONTROLLED 
                   FOREIGN CORPORATIONS.

       (a) In General.--Subparagraph (B) of section 954(c)(6) 
     (relating to application) is amended by striking ``January 1, 
     2009'' and inserting ``January 1, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2007, and to taxable years of 
     United States shareholders with or within which such taxable 
     years of foreign corporations end.

     SEC. 305. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY 
                   FOR QUALIFIED LEASEHOLD IMPROVEMENTS AND 
                   QUALIFIED RESTAURANT IMPROVEMENTS.

       (a) In General.--Clauses (iv) and (v) of section 
     168(e)(3)(E) (relating to 15-year property) are each amended 
     by striking ``January 1, 2008'' and inserting ``January 1, 
     2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2007.

     SEC. 306. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C) 
     (relating to termination) is amended by striking ``December 
     31, 2007'' and inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2007.

     SEC. 307. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR 
                   CONTRIBUTIONS OF BOOK INVENTORY.

       (a) Extension.--Clause (iv) of section 170(e)(3)(D) 
     (relating to termination) is amended by striking ``December 
     31, 2007'' and inserting ``December 31, 2009''.
       (b) Clerical Amendment.--Clause (iii) of section 
     170(e)(3)(D) (relating to certification by donee) is amended 
     by inserting ``of books'' after ``to any contribution''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made after December 31, 2007.

     SEC. 308. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS 
                   TO CONTROLLING EXEMPT ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E) 
     (relating to termination) is

[[Page S3159]]

     amended by striking ``December 31, 2007'' and inserting 
     ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received or accrued after December 
     31, 2007.

     SEC. 309. BASIS ADJUSTMENT TO STOCK OF S CORPORATIONS MAKING 
                   CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) In General.--The last sentence of section 1367(a)(2) 
     (relating to decreases in basis) is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2007.

     SEC. 310. INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE TAX 
                   TO PUERTO RICO AND THE VIRGIN ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2008'' and inserting 
     ``January 1, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2007.

     SEC. 311. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO 
                   MENTAL HEALTH BENEFITS.

       (a) In General.--Subsection (f) of section 9812 (relating 
     to application of section) is amended--
       (1) by striking ``and'' at the end of paragraph (2),
       (2) by striking the period at the end of paragraph (3) and 
     inserting ``, and before the date of the enactment of the 
     Alternative Minimum Tax and Extenders Tax Relief Act of 2008, 
     and'', and
       (3) by adding at the end the following new paragraph:
       ``(4) after December 31, 2009.''.
       (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 inserting ``, and before the date of the enactment of the 
     Alternative Minimum Tax and Extenders Tax Relief Act of 2008, 
     and after December 31, 2009'' after ``December 31, 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 inserting ``, and before the date of the 
     enactment of the Alternative Minimum Tax and Extenders Tax 
     Relief Act of 2008, and after December 31, 2009'' after 
     ``December 31, 2007''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to benefits for services furnished on or after 
     the date of the enactment of this Act.

     SEC. 312. EXTENSION OF ECONOMIC DEVELOPMENT CREDIT FOR 
                   AMERICAN SAMOA.

       (a) In General.--Subsection (d) of section 119 of division 
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``first two taxable years'' and inserting 
     ``first 4 taxable years'', and
       (2) by striking ``January 1, 2008'' and inserting ``January 
     1, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 313. EXTENSION OF MINE RESCUE TEAM TRAINING CREDIT.

       Section 45N(e) (relating to termination) is amended by 
     striking ``December 31, 2008'' and inserting ``December 31, 
     2009''.

     SEC. 314. EXTENSION OF ELECTION TO EXPENSE ADVANCED MINE 
                   SAFETY EQUIPMENT.

       Section 179E(g) (relating to termination) is amended by 
     striking ``December 31, 2008'' and inserting ``December 31, 
     2009''.

     SEC. 315. EXTENSION OF EXPENSING RULES FOR QUALIFIED FILM AND 
                   TELEVISION PRODUCTIONS.

       Section 181(f) (relating to termination) is amended by 
     striking ``December 31, 2008'' and inserting ``December 31, 
     2009''.

     SEC. 316. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES 
                   IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8) 
     (relating to termination) is amended--
       (1) by striking ``first 2 taxable years'' and inserting 
     ``first 4 taxable years'', and
       (2) by striking ``January 1, 2008'' and inserting ``January 
     1, 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 317. EXTENSION OF QUALIFIED ZONE ACADEMY BONDS.

       (a) In General.--Paragraph (1) of section 1397E(e) is 
     amended by striking ``and 2007'' and inserting ``2007, 2008, 
     and 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 318. INDIAN EMPLOYMENT CREDIT.

       (a) In General.--Subsection (f) of section 45A (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 319. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON 
                   INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) (relating 
     to termination) is amended by striking ``December 31, 2007'' 
     and inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2007.

     SEC. 320. RAILROAD TRACK MAINTENANCE.

       (a) In General.--Subsection (f) of section 45G (relating to 
     application of section) is amended by striking ``January 1, 
     2008'' and inserting ``January 1, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred during taxable 
     years beginning after December 31, 2007.

     SEC. 321. SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS 
                   RACING TRACK FACILITY.

       (a) In General.--Subparagraph (D) of section 168(i)(15) 
     (relating to termination) is amended to read as follows:
       ``(D) Application of paragraph.--Such term shall apply to 
     property placed in service after the date of the enactment of 
     the Alternative Minimum Tax and Extenders Tax Relief Act of 
     2008 and before January 1, 2010.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 322. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Subsection (h) of section 198 (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred after December 
     31, 2007.

     SEC. 323. EXTENSION OF WORK OPPORTUNITY TAX CREDIT FOR 
                   HURRICANE KATRINA EMPLOYEES.

       (a) In General.--Paragraph (1) of section 201(b) of the 
     Katrina Emergency Tax Relief Act of 2005 is amended by 
     striking ``2-year'' and inserting `` 4-year''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals hired after August 27, 2007.

               TITLE IV--EXTENSIONS OF ENERGY PROVISIONS

     SEC. 401. EXTENSION OF CREDIT FOR ENERGY EFFICIENT 
                   APPLIANCES.

       (a) In General.--Subsection (b) of section 45M (relating to 
     applicable amount) is amended by striking ``calendar year 
     2006 or 2007'' each place it appears in paragraphs (1)(A)(i), 
     (1)(B)(i), (1)(C)(ii)(I), and (1)(C)(iii)(I), and inserting 
     ``calendar year 2006, 2007, 2008, or 2009''.
       (b) Restart of Credit Limitation.--Paragraph (1) of section 
     45M(e) (relating to aggregate credit amount allowed) is 
     amended by inserting ``beginning after December 31, 2007'' 
     after ``for all prior taxable years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.

     SEC. 402. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY 
                   PROPERTY.

       (a) In General.--Section 25C(g) (relating to termination) 
     is amended by striking ``December 31, 2007'' and inserting 
     ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2007.

     SEC. 403. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY 
                   EFFICIENT PROPERTY.

       Section 25D(g) (relating to termination) is amended by 
     striking ``December 31, 2008'' and inserting ``December 31, 
     2009''.

     SEC. 404. EXTENSION OF RENEWABLE ELECTRICITY, REFINED COAL, 
                   AND INDIAN COAL PRODUCTION CREDIT.

       Section 45(d) (relating to qualified facilities) is amended 
     by striking ``January 1, 2009'' each place it appears in 
     paragraphs (1), (2), (3), (4), (5), (6), (7), (8), (9), and 
     (10) and inserting ``January 1, 2010''.

     SEC. 405. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

       Subsection (g) of section 45L (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.

     SEC. 406. EXTENSION OF ENERGY CREDIT.

       (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) (relating to energy credit) are 
     each amended by striking ``January 1, 2009'' and inserting 
     ``January 1, 2010''.
       (b) Fuel Cell Property.--Subparagraph (E) of section 
     48(c)(1) (relating to qualified fuel cell property) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (c) Microturbine Property.--Subparagraph (E) of section 
     48(c)(2) (relating to qualified microturbine property) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.

     SEC. 407. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN 
                   RENEWABLE ENERGY BONDS.

       (a) Extension.--Section 54(m) (relating to termination) is 
     amended by striking ``December 31, 2008'' and inserting 
     ``December 31, 2009''.
       (b) Increase in National Limitation.--Section 54(f) 
     (relating to limitation on amount of bonds designated) is 
     amended--
       (1) by striking ``$1,200,000,000'' in paragraph (1) and 
     inserting ``$1,600,000,000'', and
       (2) by striking ``$750,000,000'' in paragraph (2) and 
     inserting ``$1,000,000,000''.
       (c) Modification of Ratable Principal Amortization 
     Requirement.--
       (1) In general.--Paragraph (5) of section 54(l) is amended 
     to read as follows:
       ``(5) Ratable principal amortization required.--A bond 
     shall not be treated as a

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     clean renewable energy 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 12-month period that the 
     issue is outstanding (other than the first 12-month 
     period).''.
       (2) Technical amendment.--The third sentence of section 
     54(e)(2) is amended by striking ``subsection (l)(6)'' and 
     inserting ``subsection (l)(5)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 408. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
                   DEDUCTION.

       Section 179D(h) (relating to termination) is amended by 
     striking ``December 31, 2008'' and inserting ``December 31, 
     2009''.

                      TITLE V--TAX ADMINISTRATION

     SEC. 501. PERMANENT AUTHORITY FOR UNDERCOVER OPERATIONS.

       (a) In General.--Section 7608(c) (relating to rules 
     relating to undercover operations) is amended by striking 
     paragraph (6).
       (b) Effective Date.--The amendment made by this section 
     shall apply to operations conducted after the date of the 
     enactment of this Act.

     SEC. 502. PERMANENT DISCLOSURES OF CERTAIN TAX RETURN 
                   INFORMATION.

       (a) Disclosures to Facilitate Combined Employment Tax 
     Reporting.--
       (1) In general.--Section 6103(d)(5) (relating to disclosure 
     for combined employment tax reporting) is amended--
       (A) by striking ``reporting'' in the heading thereof and 
     all that follows through ``The Secretary'' in subparagraph 
     (A) and inserting ``reporting.--The Secretary'', and
       (B) by striking subparagraph (B).
       (2) Effective date.--The amendments made by this subsection 
     shall apply to disclosures after the date of the enactment of 
     this Act.
       (b) Disclosures Relating to Certain Programs Administered 
     by the Department of Veterans Affairs.--
       (1) In general.--Section 6103(l)(7)(D) (relating to 
     programs to which rule applies) is amended by striking the 
     last sentence.
       (2) Technical amendment.--Section 6103(l)(7)(D)(viii)(III) 
     is amended by striking ``sections 1710(a)(1)(I), 1710(a)(2), 
     1710(b), and 1712(a)(2)(B)'' and inserting ``sections 
     1710(a)(2)(G), 1710(a)(3), and 1710(b)''.

     SEC. 503. DISCLOSURE OF INFORMATION RELATING TO TERRORIST 
                   ACTIVITIES.

       (a) Disclosure of Return Information to Apprise Appropriate 
     Officials of Terrorist Activities.--Clause (iv) of section 
     6103(i)(3)(C) (relating to termination) is amended by 
     striking ``December 31, 2007'' and inserting ``December 31, 
     2009''.
       (b) Disclosure Upon Request of Information Relating to 
     Terrorist Activities.--Subparagraph (E) of section 6103(i)(7) 
     (relating to termination) is amended by striking ``December 
     31, 2007'' and inserting ``December 31, 2009''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disclosures after the date of the enactment of 
     this Act.
                                 ______