[Congressional Record Volume 155, Number 27 (Tuesday, February 10, 2009)]
[Senate]
[Pages S2084-S2088]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 572. Mr. BAUCUS submitted an amendment intended to be proposed to 
amendment SA 570 proposed by Mr. Reid (for Ms. Collins (for herself and 
Mr. Nelson of Nebraska)) to the bill H.R. 1, making supplemental 
appropriations for job preservation and creation, infrastructure 
investment, energy efficiency and science, assistance to the 
unemployed, and State and local fiscal stabilization, for fiscal year 
ending September 30, 2009, and for other purposes; which was ordered to 
lie on the table; as follows:

       Beginning on page 421, line 16, strike all through page 
     422, line 13, and insert the following:
       ``(d) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Eligible individual.--
       ``(A) In general.--The term `eligible individual' means any 
     individual other than--
       ``(i) any nonresident alien individual,
       ``(ii) any individual with respect to whom a deduction 
     under section 151 is allowable to another taxpayer for a 
     taxable year beginning in the calendar year in which the 
     individual's taxable year begins, and

[[Page S2085]]

       ``(iii) an estate or trust.
       ``(B) Identification requirement.--
       ``(i) In general.--Except as provided in clause (ii), such 
     term shall not include any individual unless the requirements 
     of section 32(c)(1)(E) are met with respect to such 
     individual.
       ``(ii) Special rules for married individuals.--In the case 
     of--

       ``(I) a married individual (within the meaning of section 
     7703) filing a separate return, the requirements of clause 
     (i) with respect to such return shall not apply to the 
     individual's spouse, and
       ``(II) clause (i) shall not apply to a joint return where 
     at least 1 spouse was a member of the Armed Forces of the 
     United States at any time during the taxable year.

       ``(2) Earned income.--The term `earned income' has the 
     meaning given such term by 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. 
     For purposes of the preceding sentence, any amount excluded 
     from gross income by reason of section 112 shall be treated 
     as earned income which is taken into account in computing 
     taxable income for the taxable year.
       ``(3) Special rule for certain eligible individuals.--In 
     the case of any taxable year beginning in 2009, if an 
     eligible individual receives any amount as a pension or 
     annuity for service performed in the employ of the United 
     States or any State, or any instrumentality thereof, which is 
     not considered employment for purposes of chapter 21, the 
     amount of the credit allowed under subsection (a) (determined 
     without regard to subsection (c)) with respect to such 
     eligible individual shall be equal to the greater of--
       ``(A) the amount of the credit determined without regard to 
     this paragraph or subsection (c), or
       ``(B) $300 ($600 in the case of a joint return where both 
     spouses are eligible individuals described in this 
     paragraph).

     If the amount of the credit is determined under subparagraph 
     (B) with respect to any eligible individual, the modified 
     adjusted gross income limitation under subsection (b) shall 
     not apply to such credit.
       On page 484, strike line 3 and insert the following:
       (c) Special Rule for Certain Trees and Vines.--Section 
     168(k) is amended by adding at the end the following new 
     paragraph:
       ``(5) Special rule for certain trees and vines.--For 
     purposes of this subsection, in the case of any qualified 
     property which is a tree or vine producing fruit, nuts, or 
     other crops, such property shall be treated as placed in 
     service in the year in which it is planted.''.
       (d) Effective Dates.--
       On page 485, line 21, strike ``(II)'' and insert ``(I)''.
       On page 490, line 4, strike ``172(k)'' and insert 
     ``172(b)(1)(H)''.
       On page 490, strike lines 15 through 17, and insert the 
     following:

     SEC. 1212. ELECTION TO RETROACTIVELY REVOKE S CORPORATION 
                   STATUS.

       (a) In General.--If an applicable small business 
     corporation elects under this section to revoke its election 
     under section 1362 of the Internal Revenue Code of 1986 to be 
     an S corporation, then, notwithstanding section 1362(d)(1)(C) 
     of such Code and subject to the provisions of this section--
       (1) such revocation shall be effective as of the first day 
     of the first taxable year for which such corporation was 
     treated as an S corporation, and
       (2) such Code shall be applied and administered for all 
     taxable years in the S corporation period as if such 
     corporation had not been an S corporation.
       (b) Effects of Application of Section.--
       (1) In general.--If a small business corporation elects to 
     have this section apply, the corporation and each person who 
     has been a shareholder of such corporation during the S 
     corporation period--
       (A) shall recompute their liability for tax imposed by 
     chapter 1 of the Internal Revenue Code of 1986 for each 
     taxable year in the S corporation period as if the 
     corporation had been a C corporation, and
       (B) shall make such adjustments (consistent with the 
     treatment of the corporation as a C corporation) to basis, 
     carryovers of credits and losses, and any other item as may 
     be required by the Secretary with respect to such period.
       (2) Restriction on future s corporation elections.--For 
     purposes of section 1362(g) of such Code, the taxable year in 
     which the election under this section is made shall be 
     treated as the taxable year for which the termination of S 
     corporation status is effective.
       (3) Certain adjustments not reversed.--If an applicable 
     small business company was a C corporation for any taxable 
     year before it became an S corporation, subsection (a)(2) 
     shall not apply to abate any tax imposed (or reverse any 
     other adjustment made) solely by reason of the conversion of 
     the corporation from C corporation status to S corporation 
     status.
       (c) Rules Relating to Recomputed Tax Liability.--
       (1) Waiver of limitations.--
       (A) In general.--Notwithstanding the operation of any law 
     or rule of law (including res judicata), the period of 
     limitations for assessment or collection, or credit or 
     refund, of any tax imposed on any taxpayer by chapter 1 of 
     the Internal Revenue Code of 1986 (including any interest or 
     penalty) for any taxable year in the S corporation period for 
     which a recomputation of tax liability is required under 
     subsection (b)(1) shall not expire before the close of the 3-
     year period beginning on the date the election is made under 
     this section.
       (B) Net operating losses.--Notwithstanding subparagraph 
     (A), solely for purposes of determining the taxable years 
     from and to which any net operating loss arising in a taxable 
     year in the S corporation period may be carried, section 
     6511(d)(2) of such Code shall be applied without regard to 
     any extensions, including any extensions under section 
     6511(c) of such Code.
       (2) Underpayment of tax.--If, for 1 or more taxable years 
     in the S corporation period--
       (A) the tax determined under chapter 1 of such Code for 
     such taxable year with respect to any taxpayer, determined 
     after application of this section, exceeds
       (B) the tax determined under chapter 1 of such Code for 
     such taxable year with respect to the taxpayer, determined 
     without regard to this section,

     the taxpayer shall include with the election to have this 
     section apply payment of such amount, together with interest 
     on such amount (determined using the underpayment rate under 
     section 6621 of such Code for the period beginning on the due 
     date (without regard to extensions) for filing the return of 
     such tax imposed for such taxable year and ending on the date 
     of the election).
       (d) Election.--
       (1) In general.--An election under this section to revoke 
     an applicable small business corporation election under 
     section 1362 of the Internal Revenue Code of 1986--
       (A) may only be made during the period beginning on the 
     date of the enactment of this Act and ending on December 31, 
     2009, and
       (B) shall be made in such manner as the Secretary of the 
     Treasury or the Secretary's delegate prescribes.
       (2) Conditions.--An election under this section shall not 
     be effective unless the applicable small business corporation 
     and all persons who are, or who have been, shareholders of 
     such corporation during the S corporation period consent to--
       (A) such election,
       (B) the extension of the period of limitations for 
     assessment and collection under subsection (c)(1)(A), and
       (C) the application of rules relating to net operating loss 
     carryovers under subsection (c)(1)(B).
       (e) Definitions and Special Rules.--For purposes of this 
     section--
       (1) Applicable small business corporation.--The term 
     ``applicable small business corporation'' means any small 
     business corporation which--
       (A) elected to be an S corporation under section 1362 of 
     the Internal Revenue Code of 1986 at any time during the 5-
     year period ending on the date of the enactment of this Act, 
     and
       (B) had no more than 2 shareholders (determined without 
     regard to any aggregation rules under section 1361(c) of such 
     Code) at all times during such period during which the 
     corporation was an S corporation,
       (2) S corporation period.--The term ``S corporation 
     period'' means, with respect to any applicable small business 
     corporation, the period of taxable years for which the 
     election under section 1362 of such Code to be an S 
     corporation was in effect before the application of this 
     section.
       (3) Other definitions.--The terms ``S corporation'' and ``C 
     corporation'' shall have the same meaning as when used in 
     such Code.

     SEC. 1213. EXCEPTION FOR TARP RECIPIENTS.

       The provisions of , and amendments made by, this part shall 
     not apply to--
       On page 493, beginning with line 13, strike all through 
     page 495, line 11, and insert the following:

              PART IV--RULES RELATING TO DEBT INSTRUMENTS

     SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING 
                   FROM INDEBTEDNESS DISCHARGED BY THE 
                   REACQUISITION OF A DEBT INSTRUMENT.

       (a) In General.--Section 108 (relating to income from 
     discharge of indebtedness) is amended by adding at the end 
     the following new subsection:
       ``(i) Deferral and Ratable Inclusion of Income Arising From 
     Indebtedness Discharged by the Reacquisition of a Debt 
     Instrument.--
       ``(1) In general.--At the election of the taxpayer, income 
     from the discharge of indebtedness in connection with the 
     reacquisition of a debt instrument after December 31, 2008, 
     and before January 1, 2011, shall be includible in gross 
     income ratably over the 5-taxable-year period beginning 
     with--
       ``(A) in the case of a reacquisition occurring in 2009, the 
     fifth taxable year following the taxable year in which the 
     reacquisition occurs, and
       ``(B) in the case of a reacquisition occurring in 2010, the 
     fourth taxable year following the taxable year in which the 
     reacquisition occurs.
       ``(2) Deferral of deduction for original issue discount in 
     debt for debt exchanges.--
       ``(A) In general.--If, as part of a reacquisition to which 
     paragraph (1) applies, any debt instrument is issued for the 
     debt instrument being reacquired (or is treated as so issued 
     under subsection (e)(4) and the regulations thereunder) and 
     there is any original issue discount determined under subpart 
     A of part V of subchapter P of this chapter with respect to 
     the debt instrument so issued--

[[Page S2086]]

       ``(i) except as provided in clause (ii), no deduction 
     otherwise allowable under this chapter shall be allowed to 
     the issuer of such debt instrument with respect to the 
     portion of such original issue discount which--

       ``(I) accrues before the 1st taxable year in the 5-taxable-
     year period in which income from the discharge of 
     indebtedness attributable to the reacquisition of the debt 
     instrument is includible under paragraph (1), and
       ``(II) does not exceed the income from the discharge of 
     indebtedness with respect to the debt instrument being 
     reacquired, and

       ``(ii) the aggregate amount of deductions disallowed under 
     clause (i) shall be allowed as a deduction ratably over the 
     5-taxable-year period described in clause (i)(I).

     If the amount of the original issue discount accruing before 
     such 1st taxable year exceeds the income from the discharge 
     of indebtedness with respect to the debt instrument being 
     reacquired, the deductions shall be disallowed in the order 
     in which the original issue discount is accrued.
       ``(B) Deemed debt for debt exchanges.--For purposes of 
     subparagraph (A), if any debt instrument is issued by an 
     issuer and the proceeds of such debt instrument are used 
     directly or indirectly by the issuer to reacquire a debt 
     instrument of the issuer, the debt instrument so issued shall 
     be treated as issued for the debt instrument being 
     reacquired. If only a portion of the proceeds from a debt 
     instrument are so used, the rules of subparagraph (A) shall 
     apply to the portion of any original issue discount on the 
     newly issued debt instrument which is equal to the portion of 
     the proceeds from such instrument used to reacquire the 
     outstanding instrument.
       ``(3) Debt instrument.--For purposes of this subsection, 
     the term `debt instrument' means a bond, debenture, note, 
     certificate, or any other instrument or contractual 
     arrangement constituting indebtedness (within the meaning of 
     section 1275(a)(1)).
       ``(4) Reacquisition.--For purposes of this subsection--
       ``(A) In general.--The term `reacquisition' means, with 
     respect to any debt instrument, any acquisition of the debt 
     instrument by--
       ``(i) the debtor which issued (or is otherwise the obligor 
     under) the debt instrument, or
       ``(ii) any person related to such debtor.

     Such term shall also include the complete forgiveness of the 
     indebtedness by the holder of the debt instrument.
       ``(B) Acquisition.--The term `acquisition' shall, with 
     respect to any debt instrument, include an acquisition of the 
     debt instrument for cash, the exchange of the debt instrument 
     for another debt instrument (including an exchange resulting 
     from a modification of the debt instrument), the exchange of 
     the debt instrument for corporate stock or a partnership 
     interest, and the contribution of the debt instrument to 
     capital.
       ``(5) Other definitions and rules.--For purposes of this 
     subsection--
       ``(A) Related person.--The determination of whether a 
     person is related to another person shall be made in the same 
     manner as under subsection (e)(4).
       ``(B) Election.--
       ``(i) In general.--An issuer of a debt instrument shall 
     make the election under this subsection with respect to any 
     debt instrument by clearly identifying such debt instrument 
     on the issuer's records as an instrument to which the 
     election applies before the close of the day on which the 
     reacquisition of the debt instrument occurs (or such other 
     time as the Secretary may prescribe). Such election, once 
     made, is irrevocable.
       ``(ii) Pass through entities.--In the case of a 
     partnership, S corporation, or other pass through entity, the 
     election under this subsection shall be made by the 
     partnership, the S corporation, or other entity involved.
       ``(C) Coordination with other exclusions.--If a taxpayer 
     elects to have this subsection apply to a debt instrument, 
     subparagraphs (A), (B), (C), (D), and (E) of subsection 
     (a)(1) shall not apply to the income from the discharge of 
     such indebtedness for the taxable year of the election or any 
     subsequent taxable year.
       ``(D) Acceleration of deferred items.--In the case of the 
     death of the taxpayer, the liquidation or sale of 
     substantially all the assets of the taxpayer (including in a 
     title 11 or similar case), the cessation of business by the 
     taxpayer, or similar circumstances, any item of income or 
     deduction which is deferred under this subsection (and has 
     not previously been taken into account) shall be taken into 
     account in the taxable year in which such event occurs (or in 
     the case of a title 11 case, the day before the petition is 
     filed).
       ``(6) Authority to prescribe regulations.--The Secretary 
     may prescribe such rules and regulations as may be necessary 
     or appropriate for purposes of applying this subsection.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to discharges in taxable years ending after 
     December 31, 2008.

     SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT 
                   ON CERTAIN HIGH YIELD OBLIGATIONS.

       (a) Suspension of Special Rules.--Section 163(e)(5) 
     (relating to special rules for original issue discount on 
     certain high yield obligations) is amended by redesignating 
     subparagraph (F) as subparagraph (G) and by inserting after 
     subparagraph (E) the following new subparagraph:
       ``(F) Suspension of application of paragraph.--
       ``(i) Temporary suspension.--

       ``(I) In general.--This paragraph shall not apply to any 
     applicable high yield discount obligation issued after August 
     31, 2008, and before January 1, 2010. The preceding sentence 
     shall not apply to any obligation the interest on which is 
     interest described in section 871(h)(4) (without regard to 
     subparagraph (D) thereof) or to any obligation issued to a 
     related person (within the meaning of section 108(e)(4)).

       ``(ii) Secretarial authority to suspend application.--The 
     Secretary may suspend the application of this paragraph with 
     respect to debt instruments issued after December 31, 2009, 
     if the Secretary determines that such suspension is 
     appropriate in light of distressed conditions in the debt 
     capital markets.''.
       (b) Interest Rate Used in Determining High Yield 
     Obligations.--The last sentence of section 163(i)(1) is 
     amended--
       (1) by inserting ``(i)'' after ``regulation'', and
       (2) by inserting ``, or (ii) permit, on a temporary basis, 
     a rate to be used with respect to any debt instrument which 
     is higher than the applicable Federal rate if the Secretary 
     determines that such rate is appropriate in light of 
     distressed conditions in the debt capital markets'' before 
     the period at the end.
       (c) Effective Date.--
       (1) Suspension.--The amendments made by subsection (a) 
     shall apply to obligations issued after August 30, 2008, in 
     taxable years ending after such date.
       (2) Interest rate authority.--The amendments made by 
     subsection (b) shall apply to obligations issued after the 
     date of the enactment of this Act, in taxable years ending 
     after such date.

     SEC. 1233. MODIFICATION OF RULES RELATING TO CANCELLATION OF 
                   QUALIFIED PRINCIPAL RESIDENCE INDEBTEDNESS.

       (a) Inclusion of All Mortgage Indebtedness.--Paragraph (2) 
     of section 108(h) is amended by inserting ``and home equity 
     indebtedness (within the meaning of section 163(h)(3)(C), 
     applied by inserting `as of the date such indebtedness was 
     secured by such residence' after `qualified residence' in 
     clause (i)(I) thereof and by substituting `$250,000 
     ($125,000' for `$100,000 ($50,000' in clause (ii) thereof)'' 
     before ``with respect to the principal residence of the 
     taxpayer''.
       (b) Simplification of Rules Relating to Certain 
     Discharges.--Paragraph (3) of section 108(h) is amended--
       (1) by striking ``or any other factor'' and all that 
     follows and inserting ``or is in any other way compensation 
     or in lieu of compensation.'', and
       (2) by striking ``not related to taxpayer's financial 
     condition'' in the heading.
       (c) Effective Date.--The amendments made by this section 
     shall apply to discharges of indebtedness made on or after 
     January 1, 2009.
       On page 521, between lines 4 and 5, insert the following:

  PART X--TREATMENT OF LIMITATIONS ON LOSSES AFTER CERTAIN OWNERSHIP 
                                CHANGES

     SEC. 1291. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR 
                   PURPOSES OF LIMITATIONS ON NET OPERATING LOSS 
                   CARRYFORWARDS AND CERTAIN BUILT-IN LOSSES.

       (a) In General.--Section 382 is amended by adding at the 
     end the following new subsection:
       ``(n) Special Rule for Certain Ownership Changes.--
       ``(1) In general.--The limitation contained in subsection 
     (a) shall not apply in the case of an ownership change 
     which--
       ``(A) is pursuant to a restructuring plan of a taxpayer 
     required under a loan agreement or a commitment for a line of 
     credit entered into with the Department of the Treasury under 
     the Emergency Economic Stabilization Act of 2008, and
       ``(B) is intended to result in a rationalization of the 
     costs, capitalization, and capacity with respect to the 
     manufacturing workforce of, and suppliers to, the taxpayer 
     and its subsidiaries.
       ``(2) Subsequent acquisitions.--Paragraph (1) shall not 
     apply in the case of any subsequent ownership change unless 
     such ownership change is described in such paragraph.
       ``(3) Limitation based on control in corporation.--
       ``(A) In general.--Paragraph (1) shall not apply in the 
     case of any ownership change if, immediately after such 
     ownership change, any person owns stock of the old loss 
     corporation possessing 50 percent or more of the total 
     combined voting power of all classes of stock entitled to 
     vote, or of the total value of the stock of such corporation.
       ``(B) Treatment of related persons.--
       ``(i) In general.--Related persons shall be treated as a 
     single person for purposes of this paragraph.
       ``(ii) Related persons.--For purposes of clause (i), a 
     person shall be treated as related to another person if--

       ``(I) such person bears a relationship to such other person 
     described in section 267(b) or 707(b), or
       ``(II) such persons are members of a group of persons 
     acting in concert.''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to ownership changes after the date of the 
     enactment of this Act.

[[Page S2087]]

       Beginning on page 555, line 11, strike all through page 
     556, line 22, and insert the following:

     SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX 
                   LIMITATIONS ON TAX-EXEMPT BONDS.

       (a) Interest on Private Activity Bonds Issued During 2009 
     and 2010 Not Treated as Tax Preference Item.--Subparagraph 
     (C) of section 57(a)(5) is amended by adding at the end a new 
     clause:
       ``(vi) Exception for bonds issued in 2009 and 2010.--

       ``(I) In general.--For purposes of clause (i), the term 
     `private activity bond' shall not include any bond issued 
     after December 31, 2008, and before January 1, 2011.
       ``(II) Treatment of refunding bonds.--For purposes of 
     subclause (I), a refunding bond (whether a current or advance 
     refunding) shall be treated as issued on the date of the 
     issuance of the refunded bond (or in the case of a series of 
     refundings, the original bond).
       ``(III) Exception for certain refunding bonds.--Subclause 
     (II) shall not apply to any refunding bond which is issued to 
     refund any bond which was issued after December 31, 2003, and 
     before January 1, 2009.''.

       (b) No Adjustment to Adjusted Current Earnings for Interest 
     on Tax-Exempt Bonds Issued During 2009 and 2010.--
     Subparagraph (B) of section 56(g)(4) is amended by adding at 
     the end the following new clause:
       ``(iv) Tax exempt interest on bonds issued in 2009 and 
     2010.--

       ``(I) In general.--Clause (i) shall not apply in the case 
     of any interest on a bond issued after December 31, 2008, and 
     before January 1, 2011.
       ``(II) Treatment of refunding bonds.--For purposes of 
     subclause (I), a refunding bond (whether a current or advance 
     refunding) shall be treated as issued on the date of the 
     issuance of the refunded bond (or in the case of a series of 
     refundings, the original bond).
       ``(III) Exception for certain refunding bonds.--Subclause 
     (II) shall not apply to any refunding bond which is issued to 
     refund any bond which was issued after December 31, 2003, and 
     before January 1, 2009.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2008.
       On page 587, after line 23, add the following:

     SEC. 1904. DETERMINATION OF STANDARD MILEAGE RATE FOR 
                   CHARITABLE CONTRIBUTIONS DEDUCTION.

       (a) In General.--Subsection (i) of section 170 is amended 
     to read as follows:
       ``(i) Standard Mileage Rate for Use of Passenger 
     Automobile.--
       ``(1) In general.--For purposes of computing the deduction 
     under this section for use of a passenger automobile, the 
     standard mileage rate shall be 14 cents per mile.
       ``(2) Special rule for 2009 and 2010.--For miles traveled 
     after the date of the enactment of the American Recovery and 
     Reinvestment Tax Act of 2009 and before January 1, 2011, the 
     standard mileage rate shall be the rate determined by the 
     Secretary, which rate shall not be less than the standard 
     mileage rate used for purposes of section 213.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to miles traveled after the date of the enactment 
     of this Act.

     SEC. 1905. EXCLUSION FROM GROSS INCOME FOR CHARITABLE MILEAGE 
                   REIMBURSEMENTS.

       (a) In General.--Part III of subchapter B of chapter 1 is 
     amended by adding at the end the following new section:

     ``SEC. 139C. CHARITABLE MILEAGE REIMBURSEMENT.

       ``(a) In General.--In the case of an individual, gross 
     income shall not include amounts received from an 
     organization described in section 170(c)(2) as reimbursement 
     of operating expenses with respect to the use of a passenger 
     automobile for the benefit of such organization.
       ``(b) Limitation.--The amount excluded from gross income 
     under subsection (a) shall not exceed the product of the 
     standard mileage rate used for purposes of section 162 
     multiplied by the number of miles traveled for which such 
     reimbursement is made.
       ``(c) Application to Volunteer Services Only.--Subsection 
     (a) shall not apply with respect to any expenses relating to 
     the performance of services for compensation.
       ``(d) No Double Benefit.--A taxpayer may not claim a 
     deduction or credit under any other provision of this title 
     with respect to reimbursements excluded from income under 
     subsection (a).
       ``(e) Exemption From Reporting Requirements.--Section 6041 
     shall not apply with respect to reimbursements excluded from 
     income under subsection (a).
       ``(f) Maintenance of Records.--For purposes of this 
     section, no exclusion shall be allowed under subsection (a) 
     for any reimbursement unless with respect to such 
     reimbursement the taxpayer meets substantiation requirements 
     similar to the requirements of section 274(d).
       ``(g) Termination.--This section shall not apply to any 
     miles traveled after December 31, 2010.''.
       (b) Conforming Amendment.--The table of sections for part 
     III of subchapter B of chapter 1 is amended by adding at the 
     end the following new item:

``Sec. 139C. Charitable mileage reimbursement.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to miles traveled after the date of the enactment 
     of this Act.

     SEC. 1906. SPECIAL RULES FOR MODIFICATION OR DISPOSITION OF 
                   QUALIFIED MORTGAGES OR DISPOSITION OF 
                   FORECLOSURE PROPERTY BY REAL ESTATE MORTGAGE 
                   INVESTMENT CONDUITS.

       (a) In General.--If a REMIC (as defined in section 860D(a) 
     of the Internal Revenue Code of 1986) modifies the terms of 
     or disposes of a troubled asset under the Troubled Asset 
     Relief Program established by the Secretary of the Treasury 
     under section 101(a) of the Emergency Economic Stabilization 
     Act of 2008--
       (1) such modification or disposition shall not be treated 
     as a prohibited transaction under section 860F(a)(2) of such 
     Code, and
       (2) for purposes of part IV of subchapter M of chapter 1 of 
     such Code--
       (A) an interest in the REMIC shall not fail to be treated 
     as a regular interest (as defined in section 860G(a)(1) of 
     such Code), nor shall such newly modified loan fail to be 
     treated as a qualified mortgage solely because of such 
     modification or disposition, and
       (B) any proceeds resulting from such modification or 
     disposition shall be treated as amounts received under 
     qualified mortgages.
       (b) Effective Date.--This section shall apply to 
     modifications and dispositions after the date of the 
     enactment of this Act, in taxable years ending on or after 
     such date.

     SEC. 1907. EXTENSION OF REDUCTION IN RATE OF TAX ON QUALIFIED 
                   TIMBER GAIN OF CORPORATIONS.

       (a) In General.--Section 1201(b)(1) is amended by striking 
     ``1 year after such date'' and inserting ``3 years after such 
     date''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     1201(b)(3) is amended by striking ``1 year after such date'' 
     and inserting ``3 years after such date''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 1908. EXTENSION OF TIMBER REIT MODERNIZATION AND 
                   MODIFICATION OF PROHIBITED TRANSACTION RULES 
                   FOR TIMBER PROPERTY.

       (a) In General.--Paragraph (8) of section 856(c) is 
     amended--
       (1) by striking ``the taxpayer's first taxable year'' and 
     inserting ``the taxpayer's third taxable year'', and
       (2) by striking ``1 year after such date'' and inserting 
     ``3 years after such date''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 1909. EXTENSION OF QUALIFICATION OF MINERAL ROYALTY 
                   INCOME FOR TIMBER REITS.

       (a) In General.--Section 856(c)(2)(I) is amended by 
     inserting ``, second, or third'' after ``the first''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 1910. FORMERLY HOMELESS YOUTH WHO ARE STUDENTS QUALIFIED 
                   FOR PURPOSES OF LOW INCOME HOUSING TAX CREDIT.

       (a) In General.--Clause (i) of section 42(i)(3)(D) is 
     amended by redesignating subclauses (II) and (III) as 
     subclauses (III) and (IV), respectively, and by inserting 
     after subclause (I) the following new subclause:

       ``(II) a student who previously was a homeless child or 
     youth (as defined by section 725 of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a)),''.

       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to determinations made before, on, or after the 
     date of the enactment of this Act.

     SEC. 1911. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 
                   FOR CERTAIN SMALL BUSINESSES.

       Paragraph (1) of section 6654(d) is amended by adding at 
     the end the following new subparagraph:
       ``(D) Special rule for 2009.--
       ``(i) In general.--Notwithstanding subparagraph (C), in the 
     case of any taxable year beginning in 2009, clause (ii) of 
     subparagraph (B) shall be applied to any qualified individual 
     by substituting `90 percent' for `100 percent'.
       ``(ii) Qualified individual.--For purposes of this 
     subparagraph, the term `qualified individual' means any 
     individual if--

       ``(I) the adjusted gross income shown on the return of such 
     individual for the preceding taxable year is less than 
     $500,000, and
       ``(II) such individual certifies that more than 50 percent 
     of the gross income shown on the return of such individual 
     for the preceding taxable year was income from a small 
     business.

     A certification under subclause (II) shall be in such form 
     and manner and filed at such time as the Secretary may by 
     regulations prescribe.
       ``(iii) Income from a small business.--For purposes of 
     clause (ii), income from a small business means, with respect 
     to any individual, income from a trade or business the 
     average number of employees of which was less than 500 
     employees for the calendar year ending with or within the 
     preceding taxable year of the individual.
       ``(iv) Separate returns.--In the case of a married 
     individual (within the meaning of section 7703) who files a 
     separate return for the taxable year for which the amount of 
     the installment is being determined, clause (ii)(I) shall be 
     applied by substituting `$250,000' for `$500,000'.
       ``(v) Estates and trusts.--In the case of an estate or 
     trust, adjusted gross income

[[Page S2088]]

     shall be determined as provided in section 67(e).''.

     SEC. 1912. AVIATION PROGRAMS.

       (a) Short Title.--This section may be cited as the 
     ``Federal Aviation Administration Extension Act of 2009''.
       (b) Extension of Aviation Programs for Fy 2009.--
       (1) Extension of aviation taxes.--The Internal Revenue Code 
     of 1986 is amended by striking ``March 31, 2009'' and 
     inserting ``September 30, 2009'' each place it appears in 
     each of the following sections:
       (A) Section 4081(d)(2)(B).
       (B) Section 4261(j)(1)(A)(ii).
       (C) Section 4271(d)(1)(A)(ii).
       (2) Extension of expenditure authority.--
       (A) Such Code is amended by striking ``April 1, 2009'' each 
     place it appears and inserting ``October 1, 2009'' in each of 
     the following sections:
       (i) Section 9502(d)(1).
       (ii) Section 9502(e)(2).
       (B) Paragraph (1) of section 9502(d) of such Code is 
     amended by inserting ``or the Federal Aviation Administration 
     Extension Act of 2009'' before the semicolon at the end of 
     subparagraph (A).
       (3) Extension of airport improvement program.--
       (A) Paragraph (6) of section 48103 of title 49, United 
     States Code, is amended to read as follows:
       ``(6) $3,900,000,000 for fiscal year 2009.''.
       (B) Section 47104(c) of such title is amended by striking 
     ``March 31, 2009,'' and inserting ``September 30, 2009,''.
       (4) Extension of expiring authorities.--
       (A) Title 49, United States Code, is amended by striking 
     the date specified in each of the following sections and 
     inserting ``September 30, 2009'':
       (i) Section 40117(l)(7).
       (ii) Section 44303(b).
       (iii) Section 47107(s)(3).
       (iv) Section 47141(f).
       (v) Section 49108.
       (B) Section 44302(f)(1) of such title is amended--
       (i) by striking ``March 31, 2009'' and inserting 
     ``September 30, 2009''; and
       (ii) by striking ``May 31, 2009'' and inserting ``December 
     31, 2009''.
       (C) Section 47115(j) of such title is amended by striking 
     ``2008, and the portion of fiscal year 2009 ending before 
     April 1, 2009,'' and inserting ``2009,''.
       (D) Section 161 of the Vision 100--Century of Aviation 
     Reauthorization Act (49 U.S.C. 47109 note) is amended by 
     striking ``before April 1, 2009,''.
       (E) Section 186(d) of such Act (117 Stat. 2518) is amended 
     by striking ``2008, and for the portion of fiscal year 2009 
     ending before April 1, 2009,'' and inserting ``2009,''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on April 1, 2009.

     SEC. 1913. ENHANCED CONGRESSIONAL OVERSIGHT.

       (a) Plan.--Not later than 30 days after the date of 
     enactment of this Act, each authorizing committee of the 
     Senate with jurisdiction over spending included in this 
     division and division A shall prepare and publicly post on 
     their website a plan detailing--
       (1) spending or programmatic language contained in this 
     division and division A which falls under their jurisdiction; 
     and
       (2) plans for oversight of spending under the jurisdiction 
     of the committee, including congressional hearings.
       (b) Implementation Reports.--Not later than 6 months and 1 
     year after the date of enactment of his Act, each committee 
     described in subsection (a) shall prepare and post on their 
     website a progress report towards fulfilling components of 
     their oversight plan required by subsection (a) as well as 
     any modifications to that plan.
       (c) Joint Economic Committee.--Each Federal department or 
     agency that receives and administers funding under this 
     division and division A shall provide information and data on 
     their implementation of this division and division A to each 
     committee of the Senate with jurisdiction over such funding 
     under this division and division A and to the Committee on 
     Joint Economics.

     SEC. 1914. EQUAL CREDIT AVAILABILITY.

       Section 44(f) of the Federal Deposit Insurance Act (12 
     U.S.C. 1831u(f)) is amended by adding at the end the 
     following:
       ``(3) Equal credit availability.--In the case of a person 
     or government entity (other than a depository institution 
     that is subject to paragraph (1) or (2)) in that State, the 
     maximum annual percentage rate of interest shall be the 
     greater of--
       ``(A) the maximum annual percentage rate allowed by the 
     laws of that State; or
       ``(B) 17 percent.''.
       On page 601, line 6, insert ``, except that such 
     compensation is not required to be paid to an individual who 
     is receiving stipends or other training allowances'' after 
     ``1998''.
       On page 601, line 17, insert ``less any deductible income 
     as determined under State law'' after ``year''.
       On page 619, line 13, insert ``(or another person pays on 
     behalf of such individual)'' after ``pays''.
       On page 692, between lines 7 and 8, insert the following:
       (g) Impact on Trust Funds.--The Board of Trustees of the 
     Federal Hospital Insurance Trust Fund under section 1817 of 
     the Social Security Act (42 U.S.C. 1395i) and the Federal 
     Supplementary Medical Insurance Trust Fund under section 1841 
     of such Act (42 U.S.C. 1395t) shall include in the annual 
     report submitted in 2010 under subsection (b)(2) of such 
     sections 1817 and 1841 a description of the estimated short-
     term and long-term impact that the provisions of, and 
     amendments made by, this subtitle will have on such Trust 
     Funds.
       On page 707, between lines 21 and 22, insert the following:
       ``(D) For purposes of this paragraph, the term `reporting 
     period' means, with respect to a fiscal year, any period (or 
     periods), with respect to the fiscal year, as specified by 
     the Secretary.''.
       On page 716, between lines 18 and 19, insert the following:

     SEC. 4204A. CHANGE IN DATE OF ANNUAL MEDPAC REPORT.

       (a) In General.--Section 1805(b)(1)(C) of the Social 
     Security Act (42 U.S.C. 1395b-6) is amended by striking 
     ``March 1'' and inserting ``March 15''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on April 1, 2009, and applies to reports 
     submitted for 2010 and calendar years thereafter.
       On page 726, line 7, insert ``(or to an employer or 
     facility to which such provider has assigned payments)'' 
     after ``such provider''.
       On page 737, line 18, insert ``and, for purposes of the 
     application of this section to the District of Columbia, 
     payments under such part shall be deemed to be made on the 
     basis of the FMAP'' after ``et. seq.)''.
       On page 738, line 11, insert ``(including as such standards 
     were proposed to be in effect under a State law enacted but 
     not effective as of such date or a State plan amendment or 
     waiver request under title XIX of such Act that was pending 
     approval on such date)'' after ``2008''.
       On page 740, strike lines 6 through 12, and insert the 
     following:
       (ii) on the basis of a restriction that was directed to be 
     made under State law as in effect on July 1, 2008, and would 
     have been in effect as of such date, but for a delay in the 
     effective date of a waiver under section 1115 of such Act 
     with respect to such restriction.
       On page 753, between lines 2 and 3, insert the following:

     SEC. 5006. CHIP ALLOTMENT ADJUSTMENTS.

       Effective as if included in the enactment of the Children's 
     Health Insurance Program Reauthorization Act of 2009, section 
     2104(m) of the Social Security Act, as added by section 102 
     of the Children's Health Insurance Program Reauthorization 
     Act of 2009, is amended--
       (1) by redesignating paragraph (7) as paragraph (8); and
       (2) by inserting after paragraph (6), the following:
       ``(7) Adjustment of fiscal years 2009 and 2010 allotments 
     to account for changes in projected spending for certain 
     previously approved expansion programs.--In the case of one 
     of the 50 States or the District of Columbia that has an 
     approved State plan amendment effective January 1, 2006, to 
     provide child health assistance through the provision of 
     benefits under the State plan under title XIX for children 
     from birth through age 5 whose family income does not exceed 
     200 percent of the poverty line, the Secretary shall increase 
     the allotments otherwise determined for the State for fiscal 
     years 2009 and 2010 under paragraphs (1) and (2)(A)(i) in 
     order to take into account changes in the projected total 
     Federal payments to the State under this title for such 
     fiscal years that are attributable to the provision of such 
     assistance to such children.''.

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