[Congressional Record Volume 156, Number 30 (Thursday, March 4, 2010)]
[House]
[Pages H1125-H1147]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS ACT,
2010
Mr. ETHERIDGE. Madam Speaker, pursuant to House Resolution 1137, I
call up the bill (H.R. 2847) making appropriations for the Departments
of Commerce, Justice, Science, and Related Agencies for the fiscal year
ending September 30, 2010, and for other purposes, with a Senate
amendment to the House amendment to the Senate amendment thereto, and
ask for its immediate consideration.
The Clerk read the title of the bill.
The SPEAKER pro tempore. The Clerk will designate the Senate
amendment to the House amendment to the Senate amendment.
The text of the amendment is as follows:
Senate amendment to House amendment to Senate amendment:
In lieu of the matter proposed to be inserted by the
amendment of the House to the amendment of the Senate insert
the following:
SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Hiring
Incentives to Restore Employment Act''.
(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 for this Act
is as follows:
Sec. 1. Short title; amendment of 1986 Code; table of contents.
TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS
Sec. 101. Payroll tax forgiveness for hiring unemployed workers.
Sec. 102. Business credit for retention of certain newly hired
individuals in 2010.
TITLE II--EXPENSING
Sec. 201. Increase in expensing of certain depreciable business assets.
TITLE III--QUALIFIED TAX CREDIT BONDS
Sec. 301. Issuer allowed refundable credit for certain qualified tax
credit bonds.
TITLE IV--EXTENSION OF CURRENT SURFACE TRANSPORTATION PROGRAMS
Sec. 401. Short title.
Subtitle A--Federal-aid Highways
Sec. 411. In general.
Sec. 412. Administrative expenses.
Sec. 413. Rescission of unobligated balances.
Sec. 414. Reconciliation of funds.
Subtitle B--National Highway Traffic Safety Administration, Federal
Motor Carrier Safety Administration, and Additional Programs
Sec. 421. Extension of National Highway Traffic Safety Administration
Highway Safety Programs.
Sec. 422. Extension of Federal Motor Carrier Safety Administration
Programs.
Sec. 423. Additional programs.
Subtitle C--Public Transportation Programs
Sec. 431. Allocation of funds for planning programs.
Sec. 432. Special rule for urbanized area formula grants.
Sec. 433. Allocating amounts for capital investment grants.
Sec. 434. Apportionment of formula grants for other than urbanized
areas.
Sec. 435. Apportionment based on fixed guideway factors.
Sec. 436. Authorizations for public transportation.
Sec. 437. Amendments to SAFETEA-LU.
Subtitle D--Revenue Provisions
Sec. 441. Repeal of provision prohibiting the crediting of interest to
the Highway Trust Fund.
Sec. 442. Restoration of certain foregone interest to Highway Trust
Fund.
Sec. 443. Treatment of certain amounts appropriated to Highway Trust
Fund.
Sec. 444. Termination of transfers from highway trust fund for certain
repayments and credits.
Sec. 445. Extension of authority for expenditures.
Sec. 446. Level of obligation limitations.
TITLE V--OFFSET PROVISIONS
Subtitle A--Foreign Account Tax Compliance
PART I--Increased Disclosure of Beneficial Owners
Sec. 501. Reporting on certain foreign accounts.
Sec. 502. Repeal of certain foreign exceptions to registered bond
requirements.
PART II--Under Reporting With Respect to Foreign Assets
Sec. 511. Disclosure of information with respect to foreign financial
assets.
Sec. 512. Penalties for underpayments attributable to undisclosed
foreign financial assets.
Sec. 513. Modification of statute of limitations for significant
omission of income in connection with foreign assets.
PART III--Other Disclosure Provisions
Sec. 521. Reporting of activities with respect to passive foreign
investment companies.
Sec. 522. Secretary permitted to require financial institutions to file
certain returns related to withholding on foreign
transfers electronically.
PART IV--Provisions Related to Foreign Trusts
Sec. 531. Clarifications with respect to foreign trusts which are
treated as having a United States beneficiary.
Sec. 532. Presumption that foreign trust has United States beneficiary.
Sec. 533. Uncompensated use of trust property.
Sec. 534. Reporting requirement of United States owners of foreign
trusts.
Sec. 535. Minimum penalty with respect to failure to report on certain
foreign trusts.
PART V--Substitute Dividends and Dividend Equivalent Payments Received
by Foreign Persons Treated as Dividends
Sec. 541. Substitute dividends and dividend equivalent payments
received by foreign persons treated as dividends.
Subtitle B--Delay in Application of Worldwide Allocation of Interest
Sec. 551. Delay in application of worldwide allocation of interest.
TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS
SEC. 101. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED
WORKERS.
(a) In General.--Section 3111 is amended by adding at the
end the following new subsection:
``(d) Special Exemption for Certain Individuals Hired in
2010.--
``(1) In general.--Subsection (a) shall not apply to wages
paid by a qualified employer with respect to employment
during the period beginning on the day after the date of the
enactment of this subsection and ending on December 31, 2010,
of any qualified individual for services performed--
``(A) in a trade or business of such qualified employer, or
``(B) in the case of a qualified employer exempt from tax
under section 501(a), in furtherance of the activities
related to the purpose or function constituting the basis of
the employer's exemption under section 501.
``(2) Qualified employer.--For purposes of this
subsection--
``(A) In general.--The term `qualified employer' means any
employer other than the United States, any State, or any
political subdivision thereof, or any instrumentality of the
foregoing.
``(B) Treatment of employees of post-secondary educational
institutions.--Notwithstanding subparagraph (A), the term
`qualified employer' includes any employer which is a public
institution of higher education (as defined in section 101(b)
of the Higher Education Act of 1965).
``(3) Qualified individual.--For purposes of this
subsection, the term `qualified individual' means any
individual who--
``(A) begins employment with a qualified employer after
February 3, 2010, and before January 1, 2011,
``(B) certifies by signed affidavit, under penalties of
perjury, that such individual has not been employed for more
than 40 hours during the 60-day period ending on the date
such individual begins such employment,
``(C) is not employed by the qualified employer to replace
another employee of such employer unless such other employee
separated from employment voluntarily or for cause, and
``(D) is not an individual described in section 51(i)(1)
(applied by substituting `qualified employer' for `taxpayer'
each place it appears).
``(4) Election.--A qualified employer may elect to have
this subsection not apply. Such election shall be made in
such manner as the Secretary may require.''.
(b) Coordination With Work Opportunity Credit.--Section
51(c) is amended by adding at the end the following new
paragraph:
``(5) Coordination with payroll tax forgiveness.--The term
`wages' shall not include any amount paid or incurred to a
qualified individual (as defined in section 3111(d)(3))
during the 1-year period beginning on the hiring date of such
individual by a qualified employer (as defined in section
3111(d)) unless such qualified employer makes an election not
to have section 3111(d) apply.''.
(c) Transfers to Federal Old-Age and Survivors Insurance
Trust Fund.--There are
[[Page H1126]]
hereby appropriated to the Federal Old-Age and Survivors
Trust Fund and the Federal Disability Insurance Trust Fund
established under section 201 of the Social Security Act (42
U.S.C. 401) amounts equal to the reduction in revenues to the
Treasury by reason of the amendments made by subsection (a).
Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such
manner as to replicate to the extent possible the transfers
which would have occurred to such Trust Fund had such
amendments not been enacted.
(d) Effective Date.--The amendments made by this section
shall apply to wages paid after the date of the enactment of
this Act.
SEC. 102. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY
HIRED INDIVIDUALS IN 2010.
(a) In General.--In the case of any taxable year ending
after the date of the enactment of this Act, the current year
business credit determined under section 38(b) of the
Internal Revenue Code of 1986 for such taxable year shall be
increased by an amount equal to the product of--
(1) $1,000, and
(2) the number of retained workers with respect to which
subsection (b)(2) is first satisfied during such taxable
year.
(b) Retained Worker.--For purposes of this section, the
term ``retained worker'' means any qualified individual (as
defined in section 3111(d)(3) of the Internal Revenue Code of
1986)--
(1) who was employed by the taxpayer on any date during the
taxable year,
(2) who was so employed by the taxpayer for a period of not
less than 52 consecutive weeks, and
(3) whose wages for such employment during the last 26
weeks of such period equaled at least 80 percent of such
wages for the first 26 weeks of such period.
(c) Limitation on Carrybacks.--No portion of the unused
business credit under section 38 of the Internal Revenue Code
of 1986 for any taxable year which is attributable to the
increase in the current year business credit under this
section may be carried to a taxable year beginning before the
date of the enactment of this section.
TITLE II--EXPENSING
SEC. 201. INCREASE IN EXPENSING OF CERTAIN DEPRECIABLE
BUSINESS ASSETS.
(a) In General.--Subsection (b) of section 179 is amended--
(1) by striking ``($125,000 in the case of taxable years
beginning after 2006 and before 2011)'' in paragraph (1) and
inserting ``($250,000 in the case of taxable years beginning
after 2007 and before 2011)'',
(2) by striking ``($500,000 in the case of taxable years
beginning after 2006 and before 2011)'' in paragraph (2) and
inserting ``($800,000 in the case of taxable years beginning
after 2007 and before 2011)'',
(3) by striking paragraphs (5) and (7), and
(4) by redesignating paragraph (6) as paragraph (5).
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2009.
TITLE III--QUALIFIED TAX CREDIT BONDS
SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CERTAIN
QUALIFIED TAX CREDIT BONDS.
(a) Credit Allowed.--Section 6431 is amended by adding at
the end the following new subsection:
``(f) Application of Section to Certain Qualified Tax
Credit Bonds.--
``(1) In general.--In the case of any specified tax credit
bond--
``(A) such bond shall be treated as a qualified bond for
purposes of this section,
``(B) subsection (a) shall be applied without regard to the
requirement that the qualified bond be issued before January
1, 2011,
``(C) the amount of the payment determined under subsection
(b) with respect to any interest payment date under such bond
shall be--
``(i) in the case of a bond issued by a qualified small
issuer, 65 percent of the amount of interest payable on such
bond by such issuer with respect to such date, and
``(ii) in the case of a bond issued by any other person, 45
percent of the amount of interest payable on such bond by
such issuer with respect to such date,
``(D) interest on any such bond shall be includible in
gross income for purposes of this title,
``(E) no credit shall be allowed under section 54A with
respect to such bond,
``(F) any payment made under subsection (b) shall not be
includible as income for purposes of this title, and
``(G) the deduction otherwise allowed under this title to
the issuer of such bond with respect to interest paid under
such bond shall be reduced by the amount of the payment made
under this section with respect to such interest.
``(2) Definitions.--For purposes of this subsection--
``(A) Specified tax credit bond.--The term `specified tax
credit bond' means any qualified tax credit bond (as defined
in section 54A(d)) if--
``(i) such bond is--
``(I) a new clean renewable energy bond (as defined in
section 54C),
``(II) a qualified energy conservation bond (as defined in
section 54D),
``(III) a qualified zone academy bond (as defined in
section 54E), or
``(IV) a qualified school construction bond (as defined in
section 54F), and
``(ii) the issuer of such bond makes an irrevocable
election to have this subsection apply,
``(B) Qualified small issuer.--The term `qualified small
issuer' means, with respect to any calendar year, any issuer
who is not reasonably expected to issue tax-exempt bonds
(other than private activity bonds) and specified tax credit
bonds (determined without regard to whether an election is
made under this subsection) during such calendar year in an
aggregate face amount exceeding $30,000,000.''.
(b) Technical Corrections Relating to Qualified School
Construction Bonds.--
(1) The second sentence of section 54F(d)(1) is amended by
striking ``by the State'' and inserting ``by the State
education agency (or such other agency as is authorized under
State law to make such allocation)''.
(2) The second sentence of section 54F(e) is amended by
striking ``subsection (d)(4)'' and inserting ``paragraphs (2)
and (4) of subsection (d)''.
(c) Effective Dates.--
(1) In general.--The amendment made by subsection (a) shall
apply to bonds issued after the date of the enactment of this
Act.
(2) Technical corrections.--The amendments made by
subsection (b) shall take effect as if included in section
1521 of the American Recovery and Reinvestment Tax Act of
2009.
TITLE IV--EXTENSION OF CURRENT SURFACE TRANSPORTATION PROGRAMS
SEC. 401. SHORT TITLE.
This title may be cited as the ``Surface Transportation
Extension Act of 2010''.
Subtitle A--Federal-aid Highways
SEC. 411. IN GENERAL.
(a) In General.--Except as provided in this Act,
requirements, authorities, conditions, eligibilities,
limitations, and other provisions authorized under titles I,
V, and VI of the SAFETEA-LU (119 Stat. 1144), the SAFETEA-LU
Technical Corrections Act of 2008 (122 Stat. 1572), titles I
and VI of the Intermodal Surface Transportation Act of 1991
(105 Stat. 1914), titles I and V of the Transportation Equity
Act for the 21st Century (112 Stat. 107), and title 23,
United States Code (excluding chapter 4 of that title), which
would otherwise expire on or cease to apply after September
30, 2009, or the date specified in section 106(3) of the
Continuing Appropriations Resolution, 2010 (Public Law 111-
68), are incorporated by reference and shall continue in
effect until December 31, 2010.
(b) Authorization of Appropriations.--Except as provided in
section 412, there are authorized to be appropriated out of
the Highway Trust Fund (other than the Mass Transit
Account)--
(1) for fiscal year 2010, a sum equal to the total amount
authorized to be appropriated out of the Highway Trust Fund
for programs, projects, and activities for fiscal year 2009
under titles I, V, and VI of the SAFETEA-LU (119 Stat. 1144),
and title 23, United States Code (excluding chapter 4 of that
title); and
(2) for the period beginning on October 1, 2010, and ending
on December 31, 2010, a sum equal to \1/4\ of the total
amount authorized to be appropriated out of the Highway Trust
Fund for programs, projects, and activities for fiscal year
2009 under titles I, V, and VI of the SAFETEA-LU (119 Stat.
1144), and title 23, United States Code (excluding chapter 4
of that title).
(c) Use of Funds.--
(1) Fiscal year 2010.--Except as otherwise expressly
provided in this Act, funds authorized to be appropriated
under subsection (b)(1) for fiscal year 2010 shall be
distributed, administered, limited, and made available for
obligation in the same manner and at the same level as funds
authorized to be appropriated out of the Highway Trust Fund
for fiscal year 2009 to carry out programs, projects,
activities, eligibilities, and requirements under the
SAFETEA-LU (119 Stat. 1144), the SAFETEA-LU Technical
Corrections Act of 2008 (122 Stat. 1572), titles I and VI of
the Intermodal Surface Transportation Act of 1991 (105 Stat.
1914), titles I and V of the Transportation Equity Act for
the 21st Century (112 Stat. 107), and title 23, United States
Code (excluding chapter 4 of that title).
(2) Fiscal year 2011.--Except as otherwise expressly
provided in this Act, funds authorized to be appropriated
under subsection (b)(2) for the period beginning on October
1, 2010, and ending on December 31, 2010, shall be
distributed, administered, limited, and made available for
obligation in the same manner and at the same level as \1/4\
of the total amount of funds authorized to be appropriated
out of the Highway Trust Fund for fiscal year 2009 to carry
out programs, projects, activities, eligibilities, and
requirements under the SAFETEA-LU (119 Stat. 1144), the
SAFETEA-LU Technical Corrections Act of 2008 (122 Stat.
1572), titles I and VI of the Intermodal Surface
Transportation Act of 1991 (105 Stat. 1914), titles I and V
of the Transportation Equity Act for the 21st Century (112
Stat. 107), and title 23, United States Code (excluding
chapter 4 of that title).
(3) Calculation.--The amounts authorized to be appropriated
under subsection (b) shall be calculated without regard to
any rescission or cancellation of funds or contract authority
for fiscal year 2009 under the SAFETEA-LU (119 Stat. 1144) or
any other law.
(4) Contract authority.--
(A) In general.--Except as provided in subparagraph (B),
funds authorized to be appropriated under this section shall
be available for obligation and shall be administered in the
same manner as if such funds were apportioned under chapter 1
of title 23, United States Code, and--
(i) for fiscal year 2010, shall be subject to a limitation
on obligations for Federal-aid highways and highway safety
construction programs included in an Act making
appropriations for fiscal year 2010 or a portion of that
fiscal year; and
(ii) for the period beginning on October 1, 2010, and
ending on December 31, 2010, shall be subject to a limitation
on obligations included in an Act making appropriations for
fiscal year
[[Page H1127]]
2011 or a portion of that fiscal year, except that during
such period obligations subject to such limitation shall not
exceed \1/4\ of the limitation on obligations included in an
Act making appropriations for fiscal year 2011.
(B) Exceptions.--A limitation on obligations described in
clause (i) or (ii) of subparagraph (A) shall not apply to any
obligation under--
(i) section 125 of title 23, United States Code; or
(ii) section 105 of title 23, United States Code--
(I) for fiscal year 2010, only in an amount equal to
$639,000,000; and
(II) for the period beginning on October 1, 2010, and
ending on December 31, 2010, only in an amount equal to
$159,750,000.
(5) Calculations for distribution of obligation
limitation.--Upon enactment of an Act making appropriations
for the Department of Transportation for fiscal year 2011
(other than an Act or resolution making continuing
appropriations), the Secretary shall--
(A) as necessary for purposes of making the calculations
for the distribution of any obligation limitation under such
Act, annualize the amount of contract authority provided
under this Act for Federal-aid highways and highway safety
construction programs; and
(B) multiply the resulting distribution of any obligation
limitation under such Act by \1/4\.
(d) Extension and Flexibility for Certain Allocated
Programs.--
(1) Fiscal year 2010.--Notwithstanding any other provision
of law, for fiscal year 2010, the portion of the share of
funds of a State under subsection (b)(1) determined by the
amount that the State received or was authorized to receive
for fiscal year 2009 to carry out sections 1301, 1302, 1307,
1702, and 1934 of the SAFETEA-LU (119 Stat. 1198, 1204, 1217,
1256, and 1485), and section 144(f)(1) of title 23, United
States Code, shall be--
(A) made available to the State for programs apportioned
under sections 104(b) and 144 of title 23, United States
Code, and in the same proportion for each such program that--
(i) the amount apportioned to the State for that program
for fiscal year 2009; bears to
(ii) the amount apportioned to the State for fiscal year
2009 for all programs apportioned under such sections of such
Code; and
(B) administered in the same manner and with the same
period of availability as such funding is administered under
programs identified in subparagraph (A), except that no funds
may be used to carry out the project described in section
1307(d)(1) of the SAFETEA-LU (119 Stat. 1217; 122 Stat.
1577).
(2) Fiscal year 2011.--Notwithstanding any other provision
of law, for the period beginning on October 1, 2010, and
ending on December 31, 2010, the portion of the share of
funds of a State under subsection (b)(2) determined by \1/4\
of the amount that the State received or was authorized to
receive for fiscal year 2009 to carry out sections 1301,
1302, 1307, 1702, and 1934 of the SAFETEA-LU (119 Stat. 1198,
1204, 1217, 1256, and 1485) and section 144(f)(1) of title
23, United States Code, shall be--
(A) made available to the State for programs apportioned
under sections 104(b) and 144 of title 23, United States
Code, and in the same proportion for each such program that--
(i) the amount apportioned to the State for that program
for fiscal year 2009; bears to
(ii) the amount apportioned to the State for fiscal year
2009 for all programs apportioned under such sections of such
Code; and
(B) administered in the same manner and with the same
period of availability as such funding is administered under
programs identified in subparagraph (A), except that no funds
may be used to carry out the project described in section
1307(d)(1) of the SAFETEA-LU (119 Stat. 1217; 122 Stat.
1577).
(3) Territories and puerto rico.--
(A) Fiscal year 2010.--Notwithstanding any other provision
of law, for fiscal year 2010, the portion of the share of
funds of a territory or Puerto Rico under paragraph (b)(1)
determined by the amount that the territory or Puerto Rico
received or was authorized to receive for fiscal year 2009 to
carry out section 1934 of SAFETEA-LU (119 Stat. 1485), shall
be--
(i) for a territory, made available and administered in the
same manner as funding is made available and administered
under section 215 of title 23, United States Code; and
(ii) for Puerto Rico, made available and administered in
the same manner as funding is made available and administered
under section 165 of title 23, United States Code.
(B) Fiscal year 2011.--Notwithstanding any other provision
of law, for the period beginning on October 1, 2010, and
ending on December 31, 2010, the portion of the share of
funds of a territory or Puerto Rico under paragraph (b)(2)
determined by \1/4\ of the amount that the territory or
Puerto Rico received or was authorized to receive for fiscal
year 2009 to carry out section 1934 of SAFETEA-LU (119 Stat.
1485), shall be--
(i) for a territory, made available and administered in the
same manner as funding is made available and administered
under section 215 of title 23, United States Code; and
(ii) for Puerto Rico, made available and administered in
the same manner as funding is made available and administered
under section 165 of title 23, United States Code.
(C) Territory defined.--In this paragraph, the term
``territory'' means any of the following territories of the
United States: American Samoa, the Commonwealth of the
Northern Mariana Islands, Guam, or the United States Virgin
Islands.
(4) Additional funds.--
(A) In general.--No additional funds shall be provided for
any project or activity under subsection (c), or paragraph
(1) or (2) of this subsection, that the Secretary of
Transportation determines was sufficiently funded before or
during fiscal year 2009 to achieve the authorized purpose of
the project or activity.
(B) Reservation and redistribution of funds.--Funds made
available in accordance with paragraph (1) or (2) of
subsection (c) or paragraph (1) or (2) of this subsection for
a project or activity described in subparagraph (A) shall
be--
(i) reserved by the Secretary of Transportation; and
(ii) distributed to each State in accordance with paragraph
(1) or (2) of subsection (c), or paragraph (1) or (2) of this
subsection, as appropriate, for use in carrying out other
highway projects and activities extended by subsection (c) or
this subsection, in the proportion that--
(I) the total amount of funds made available for fiscal
year 2009 for projects and activities described in
subparagraph (A) in the State; bears to
(II) the total amount of funds made available for fiscal
year 2009 for those projects and activities in all States.
(e) Extension of Authorizations Under Title V of SAFETEA-
LU.--
(1) In general.--The programs authorized under paragraphs
(1) through (5) of section 5101(a) of the SAFETEA-LU (119
Stat. 1779) shall be continued--
(A) for fiscal year 2010, at the funding levels authorized
for those programs for fiscal year 2009; and
(B) for the period beginning on October 1, 2010, and ending
on December 31, 2010, at \1/4\ the funding levels authorized
for those programs for fiscal year 2009.
(2) Distribution of funds.--Funds for programs continued
under paragraph (1) shall be distributed to major program
areas under those programs in the same proportions as funds
were allocated for those program areas for fiscal year 2009,
except that designations for specific activities shall not be
required to be continued for--
(A) fiscal year 2010; or
(B) the period beginning on October 1, 2010, and ending on
December 31, 2010.
(3) Additional funds.--
(A) In general.--No additional funds shall be provided for
any project or activity under this subsection that the
Secretary of Transportation determines was sufficiently
funded before or during fiscal year 2009 to achieve the
authorized purpose of the project or activity.
(B) Distribution.--Funds that would have been made
available under paragraph (1) for a project or activity but
for the prohibition under subparagraph (A) shall be
distributed in accordance with paragraph (2).
SEC. 412. ADMINISTRATIVE EXPENSES.
(a) Authorization of Contract Authority.--Notwithstanding
any other provision of this Act or any other law, there are
authorized to be appropriated from the Highway Trust Fund
(other than the Mass Transit Account), from amounts provided
under section 411, for administrative expenses of the
Federal-aid highway program--
(1) $422,425,000 for fiscal year 2010; and
(2) $105,606,250 for the period beginning on October 1,
2010, and ending on December 31, 2010.
(b) Contract Authority.--Funds authorized to be
appropriated by this section shall be--
(1) available for obligation, and shall be administered, in
the same manner as if such funds were apportioned under
chapter 1 of title 23, United States Code; and
(2) subject to a limitation on obligations for Federal-aid
highways and highway safety construction programs, except
that such funds shall remain available until expended.
SEC. 413. RESCISSION OF UNOBLIGATED BALANCES.
(a) In General.--The Secretary of Transportation shall
restore funds rescinded pursuant to section 10212 of the
SAFETEA-LU (Public Law 109-59; 119 Stat. 1937) to the States
and to the programs from which the funds were rescinded.
(b) Administration of Funds.--The restored amounts shall be
administered in the same manner as the funds originally
rescinded, except those funds may only be used with an
obligation limitation provided in an Act making
appropriations for Federal-aid highways and highway safety
construction programs enacted after implementation of the
rescission under section 10212 of the SAFETEA-LU (Public Law
109-59; 119 Stat. 1937).
(c) Funding.--
(1) In general.--There is authorized to be appropriated
from the Highway Trust Fund (other than the Mass Transit
Account) for fiscal year 2010 to carry out this section an
amount equal to the amount of funds rescinded under section
10212 of the SAFETEA-LU (Public Law 109-59; 119 Stat. 1937).
(2) Availability for obligation.--Funds authorized to be
appropriated by this section shall be--
(A) made available under this section and available for
obligation in the same manner as if the funds were
apportioned under chapter 1 of title 23, United States Code,
except that the funds shall retain the characteristics of the
funds originally rescinded; and
(B) subject to a limitation on obligations for Federal-aid
highways and highway safety construction programs included in
an Act making appropriations for fiscal year 2010 or a
portion of the fiscal year.
(d) Limitation.--No funds authorized to be restored under
this section shall be restored after the end of fiscal year
2010.
SEC. 414. RECONCILIATION OF FUNDS.
The Secretary shall reduce the amount apportioned or
allocated for a program, project, or activity under this
title by amounts apportioned or allocated pursuant to the
Continuing Appropriations Resolution, 2010 (Public Law 111-
68).
[[Page H1128]]
Subtitle B--National Highway Traffic Safety Administration, Federal
Motor Carrier Safety Administration, and Additional Programs
SEC. 421. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY
ADMINISTRATION HIGHWAY SAFETY PROGRAMS.
(a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1)
of the SAFETEA-LU (119 Stat. 1519) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``2009,
$235,000,000 for fiscal year 2010, and $58,750,000 for the
period beginning on October 1, 2010, and ending on December
31, 2010.''.
(b) Highway Safety Research and Development.--Section
2001(a)(2) of the SAFETEA-LU (119 Stat. 1519) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``2009,
$107,329,000 for fiscal year 2010, and $27,061,000 for the
period beginning on October 1, 2010, and ending on December
31, 2010.''.
(c) Occupant Protection Incentive Grants.--
(1) Extension of program.--Section 405(a) of title 23,
United States Code, is amended--
(A) in paragraph (3), by striking ``6'' and inserting
``8''; and
(B) in paragraph (4)(C), by striking ``fifth and sixth''
and inserting ``fifth through eighth''.
(2) Authorization of appropriations.--Section 2001(a)(3) of
the SAFETEA-LU (119 Stat. 1519) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``2009, $25,000,000
for fiscal year 2010, and $6,250,000 for the period beginning
on October 1, 2010, and ending on December 31, 2010.''.
(d) Safety Belt Performance Grants.--Section 2001(a)(4) of
the SAFETEA-LU (119 Stat. 1519) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``2009,
$124,500,000 for fiscal year 2010, and $31,125,000 for the
period beginning on October 1, 2010, and ending on December
31, 2010.''.
(e) State Traffic Safety Information System Improvements.--
Section 2001(a)(5) of the SAFETEA-LU (119 Stat. 1519) is
amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``2009, $34,500,000
for fiscal year 2010, and $8,625,000 for the period beginning
on October 1, 2010, and ending on December 31, 2010.''.
(f) Alcohol-impaired Driving Countermeasures Incentive
Grant Program.--
(1) Extension of program.--Section 410 of title 23, United
States Code, is amended--
(A) in subsection (a)(3)(C), by striking ``fifth, sixth,
seventh, and eighth'' and inserting ``fifth through tenth'';
and
(B) in subsection (b)(2)(C), by striking ``2008 and 2009''
and inserting ``2008, 2009, 2010, and 2011''.
(2) Authorization of appropriations.--Section 2001(a)(6) of
the SAFETEA-LU (119 Stat. 1519) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``2009,
$139,000,000 for fiscal year 2010, and $34,750,000 for the
period beginning on October 1, 2010, and ending on December
31, 2010.''.
(g) National Driver Register.--Section 2001(a)(7) of the
SAFETEA-LU (119 Stat. 1520) is amended--
(1) by striking ``and''; and
(2) by striking ``2009.'' and inserting ``2009, $4,078,000
for fiscal year 2010, and $1,029,000 for the period beginning
on October 1, 2010, and ending on December 31, 2010.''.
(h) High Visibility Enforcement Program.--
(1) Extension of program.--Section 2009(a) of the SAFETEA-
LU (23 U.S.C. 402 note) is amended by striking ``2009'' and
inserting ``2011''.
(2) Authorization of appropriations.--Section 2001(a)(8) of
the SAFETEA-LU (119 Stat. 1520) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``2009, $29,000,000
for fiscal year 2010, and $7,250,000 for the period beginning
on October 1, 2010, and ending on December 31, 2010.''.
(i) Motorcyclist Safety.--
(1) Extension of program.--Section 2010(d)(1)(B) of the
SAFETEA-LU (23 U.S.C. 402 note) is amended by striking ``and
fourth'' and inserting ``fourth, fifth, and sixth''.
(2) Authorization of appropriations.--Section 2001(a)(9) of
the SAFETEA-LU (119 Stat. 1520) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``2009, $7,000,000
for fiscal year 2010, and $1,750,000 for the period beginning
on October 1, 2010, and ending on December 31, 2010.''.
(j) Child Safety and Child Booster Seat Safety Incentive
Grants.--
(1) Extension of program.--Section 2011(c)(2) of the
SAFETEA-LU (23 U.S.C. 405 note) is amended by striking
``fourth fiscal year'' and inserting ``fourth, fifth, and
sixth fiscal years''.
(2) Authorization of appropriations.--Section 2001(a)(10)
of the SAFETEA-LU (119 Stat. 1520) is amended--
(A) by striking ``and''; and
(B) by striking ``2009.'' and inserting ``2009, $7,000,000
for fiscal year 2010, and $1,750,000 for the period beginning
on October 1, 2010, and ending on December 31, 2010.''.
(k) Administrative Expenses.--Section 2001(a)(11) of the
SAFETEA-LU (119 Stat. 1520) is amended--
(1) by striking ``and'' the last place it appears; and
(2) by striking ``2009.'' and inserting ``2009, $25,047,000
for fiscal year 2010, and $6,332,000 for the period beginning
on October 1, 2010, and ending on December 31, 2010.''.
(l) Applicability of Title 23.--Section 2001(c) of the
SAFETEA-LU (119 Stat. 1520) is amended by striking ``2009''
and inserting ``2011''.
(m) Drug-impaired Driving Enforcement.--Section 2013(f) of
the SAFETEA-LU (23 U.S.C. 403 note) is amended by striking
``2009'' and inserting ``2011''.
(n) Older Driver Safety; Law Enforcement Training.--Section
2017 of the SAFETEA-LU is amended--
(1) in subsection (a)(1) (119 Stat. 1541), by striking
``2009'' and inserting ``2011''; and
(2) in subsection (b)(2) (23 U.S.C. 402 note), by striking
``2009'' and inserting ``2011''.
SEC. 422. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY
ADMINISTRATION PROGRAMS.
(a) Motor Carrier Safety Grants.--Section 31104(a) of title
49, United States Code, is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(6) $209,000,000 for fiscal year 2010; and
``(7) $52,679,000 for the period beginning on October 1,
2010, and ending on December 31, 2010.''.
(b) Administrative Expenses.--Section 31104(i)(1) of title
49, United States Code, is amended--
(1) in subparagraph (D), by striking ``and'';
(2) in subparagraph (E), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(F) ``(F) $239,828,000 for fiscal year 2010; and
``(G) ``(G) $61,036,000 for the period beginning on October
1, 2010, and ending on December 31, 2010.''.
(c) Grant Programs.--Section 4101(c) of the SAFETEA-LU (119
Stat. 1715) is amended--
(1) in paragraph (1), by striking ``2009.'' and inserting
``2009, and $25,000,000 for fiscal year 2010, and $6,301,000
for the period beginning on October 1, 2010, and ending on
December 31, 2010.'';
(2) in paragraph (2), by striking ``2009.'' and inserting
``2009, $32,000,000 for fiscal year 2010, and $8,066,000 for
the period beginning on October 1, 2010, and ending on
December 31, 2010.'';
(3) in paragraph (3), by striking ``2009.'' and inserting
``2009, $5,000,000 for fiscal year 2010, and $1,260,000 for
the period beginning on October 1, 2010, and ending on
December 31, 2010.'';
(4) in paragraph (4), by striking ``2009.'' and inserting
``2009, $25,000,000 for fiscal year 2010, and $6,301,000 for
the period beginning on October 1, 2010, and ending on
December 31, 2010.''; and
(5) in paragraph (5), by striking ``2009.'' and inserting
``2009, $3,000,000 for fiscal year 2010, and $756,000 for the
period beginning on October 1, 2010, and ending on December
31, 2010.''.
(d) High-priority Activities.--Section 31104(k) of title
49, United States Code, is amended by striking ``2009'' in
paragraph (2) and inserting ``2009, $15,000,000 for fiscal
year 2010, and $3,781,000 for the period beginning on October
1, 2010, and ending on December 31, 2010''.
(e) New Entrant Audits.--Section 31144(g)(5)(B) of title
49, United States Code, is amended by inserting ``(and up to
$7,310,000 for the period beginning on October 1, 2010, and
ending on December 31, 2010)'' after ``fiscal year''.
(f) Commercial Driver's License Information System
Modernization.--Section 4123(d) of the SAFETEA-LU (119 Stat.
1736) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) $8,000,000 for fiscal year 2010; and
``(6) $2,016,000 for the period beginning on October 1,
2010, and ending on December 31, 2010.''.
(g) Outreach and Education.--Section 4127(e) of the
SAFETEA-LU (119 Stat. 1741) is amended by striking ``and
2009'' and inserting ``2009, and 2010, and $252,000 to the
Federal Motor Carrier Safety Administration, and $756,000 to
the National Highway Traffic Safety Administration, for the
period beginning on October 1, 2010, and ending on December
31, 2010,''.
(h) Grant Program for Commercial Motor Vehicle Operators.--
Section 4134(c) of the SAFETEA-LU (119 Stat. 1744) is amended
by striking ``2009'' and inserting ``2009, 2010, and $252,000
for the period beginning on October 1, 2010, and ending on
December 31, 2010,''.
(i) Motor Carrier Safety Advisory Committee.--Section
4144(d) of the SAFETEA-LU (1119 Stat. 1748) is amended by
striking ``September 30, 2010'' and inserting ``December 31,
2010''.
(j) Working Group for Development of Practices and
Procedures To Enhance Federal-State Relations.--Section
4213(d) of the SAFETEA-LU (49 U.S.C. 14710 note) is amended
by striking ``September 30, 2009'' and inserting ``December
31, 2010''.
SEC. 423. ADDITIONAL PROGRAMS.
(a) Hazardous Materials Research Projects.--Section 7131(c)
of the SAFETEA-LU (119 Stat. 1910) is amended by striking
``through 2009'' and inserting ``through 2010, and $315,000
for the period beginning on October 1, 2010, and ending on
December 31, 2010,''.
(b) Dingell-Johnson Sport Fish Restoration Act.--Section 4
of the Dingell-Johnson Sport Fish Restoration Act (16 U.S.C.
777c) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ``2009,'' and inserting ``2010 and for the
period beginning on October 1, 2010, and ending on December
31, 2010,''; and
(2) in subsection (b)(1)(A), by striking ``2010,'' and
inserting ``and for the period beginning on
[[Page H1129]]
October 1, 2010, and ending on December 31, 2010,''.
Subtitle C--Public Transportation Programs
SEC. 431. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.
Section 5305(g) of title 49, United States Code, is amended
by striking ``2009'' and inserting ``2010, and for the period
beginning October 1, 2010, and ending December 31, 2010,''.
SEC. 432. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS.
Section 5307(b)(2) of title 49, United States Code, is
amended--
(1) in the paragraph heading, by striking ``2009'' and
inserting ``2010, and the period beginning october 1, 2010,
and ending december 31, 2010'';
(2) in subparagraph (A), by striking ``2009,'' and
inserting ``2010, and the period beginning October 1, 2010,
and ending December 31, 2010,''; and
(3) in subparagraph (E)--
(A) in the subparagraph heading, by striking ``and 2009''
and inserting ``through 2010 and during the period beginning
october 1, 2010, and ending december 31, 2010''; and
(B) in the matter preceding clause (i), by striking ``and
2009'' and inserting ``through 2010, and during the period
beginning October 1, 2010, and ending December 31, 2010,''.
SEC. 433. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS.
Section 5309(m) of title 49, United States Code, is
amended--
(1) in paragraph (2)--
(A) in the heading, by striking ``2009'' and inserting
``2010 and october 1, 2010, through december 31, 2010'';
(B) in the matter preceding subparagraph (A), by striking
``2009'' and inserting ``2010, and during the period
beginning October 1, 2010, and ending December 31, 2010,'';
and
(C) in subparagraph (A)(i), by striking ``2009'' and
inserting ``2010, and $50,000,000 for the period beginning
October 1, 2010, and ending December 31, 2010,'';
(2) in paragraph (6)--
(A) in subparagraph (B), by striking ``2009'' and inserting
``2010, and $3,750,000 shall be available for the period
beginning October 1, 2010, and ending December 31, 2010,'';
and
(B) in subparagraph (C), by striking ``2009'' and inserting
``2010, and $1,250,000 shall be available for the period
beginning October 1, 2010 and ending December 31, 2010,'';
and
(3) in paragraph (7)--
(A) in subparagraph (A)--
(i) by redesignating clauses (i) through (viii) as
subclauses (I) through (VIII), respectively;
(ii) in the matter preceding subclause (I), as so
redesignated, by striking ``$10,000,000'' and all that
follows through ``2009'' and inserting the following:
``(i) Fiscal years 2006 through 2010.--$10,000,000 shall be
available in each of fiscal years 2006 through 2010''; and
(iii) by inserting after subclause (VIII), as so
redesignated, the following:
``(ii) Special rule for october 1, 2010, through december
31, 2010.--$2,500,000 shall be available in the period
beginning October 1, 2010, and ending December 31, 2010, for
ferry boats or ferry terminal facilities. The Secretary shall
set aside a portion of such amount in accordance with clause
(i), except that the Secretary shall set aside 25 percent of
each dollar amount specified in subclauses (I) through
(VIII).'';''.
(B) in subparagraph (B), by inserting after ``2009.'' the
following:
``(v) $13,500,000 for fiscal year 2010.
``(vi) $3,375,000 for the period beginning October 1, 2010,
and ending December 31, 2010.'';
(C) in subparagraph (C), by inserting ``, and during the
period beginning October 1, 2010, and ending December 31,
2010,'' after ``fiscal year'';
(D) in subparagraph (D), by inserting ``, and not less than
$8,750,000 shall be available for the period beginning
October 1, 2010, and ending December 31, 2010,'' after
``year''; and
(E) in subparagraph (E), by inserting ``, and $750,000
shall be available for the period beginning October 1, 2010,
and ending December 31, 2010,'' after ``year''.
SEC. 434. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN
URBANIZED AREAS.
Section 5311(c)(1) of title 49, United States Code, is
amended by adding at the end the following:
``(E) $15,000,000 for fiscal year 2010.
``(F) $3,750,000 for the period beginning October 1, 2010,
and ending December 31, 2010.''.
SEC. 435. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.
Section 5337 of title 49, United States Code, is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ``2009'' and inserting ``2010''; and
(2) by adding at the end the following:
``(g) Special Rule for October 1, 2010, Through December
31, 2010.--The Secretary shall apportion amounts made
available for fixed guideway modernization under section 5309
for the period beginning October 1, 2010, and ending December
31, 2010, in accordance with subsection (a), except that the
Secretary shall apportion 25 percent of each dollar amount
specified in subsection (a).''.
SEC. 436. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION.
(a) Formula and Bus Grants.--Section 5338(b) of title 49,
United States Code, is amended--
(1) in paragraph (1)--
(A) in subparagraph (C), by striking ``and'' at the end;
(B) in subparagraph (D), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following:
``(E) $8,360,565,000 for fiscal year 2010; and
``(F) $2,090,141,250 for the period beginning October 1,
2010, and ending December 31, 2010.''; and
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``and $113,500,000 for
fiscal year 2009'' and inserting ``$113,500,000 for each of
fiscal years 2009 and 2010, and $28,375,000 for the period
beginning October 1, 2010, and ending December 31, 2010,'';
(B) in subparagraph (B), by striking ``and $4,160,365,000
for fiscal year 2009'' and inserting ``$4,160,365,000 for
each of fiscal years 2009 and 2010, and $1,040,091,250 for
the period beginning October 1, 2010, and ending December 31,
2010,'';
(C) in subparagraph (C), by striking ``and $51,500,000 for
fiscal year 2009'' and inserting ``$51,500,000 for each of
fiscal years 2009 and 2010, and $12,875,000 for the period
beginning October 1, 2010, and ending December 31, 2010,'';
(D) in subparagraph (D), by striking ``and $1,666,500,000
for fiscal year 2009'' and inserting ``$1,666,500,000 for
each of fiscal years 2009 and 2010, and $416,625,000 for the
period beginning October 1, 2010 and ending December 31,
2010,'';
(E) in subparagraph (E), by striking ``and $984,000,000 for
fiscal year 2009'' and inserting ``$984,000,000 for each of
fiscal years 2009 and 2010, and $246,000,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
(F) in subparagraph (F), by striking ``and $133,500,000 for
fiscal year 2009'' and inserting ``$133,500,000 for each of
fiscal years 2009 and 2010, and $33,375,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
(G) in subparagraph (G), by striking ``and $465,000,000 for
fiscal year 2009'' and inserting ``$465,000,000 for each of
fiscal years 2009 and 2010, and $116,250,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
(H) in subparagraph (H), by striking ``and $164,500,000 for
fiscal year 2009'' and inserting ``$164,500,000 for each of
fiscal years 2009 and 2010, and $41,125,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
(I) in subparagraph (I), by striking ``and $92,500,000 for
fiscal year 2009'' and inserting ``$92,500,000 for each of
fiscal years 2009 and 2010, and $23,125,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
(J) in subparagraph (J), by striking ``and $26,900,000 for
fiscal year 2009'' and inserting ``$26,900,000 for each of
fiscal years 2009 and 2010, and $6,725,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
(K) in subparagraph (K), by striking ``and $3,500,000 for
fiscal year 2009'' and inserting ``$3,500,000 for each of
fiscal years 2009 and 2010, and $875,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
(L) in subparagraph (L), by striking ``and $25,000,000 for
fiscal year 2009'' and inserting ``$25,000,000 for each of
fiscal years 2009 and 2010, and $6,250,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
(M) in subparagraph (M), by striking ``and $465,000,000 for
fiscal year 2009'' and inserting ``$465,000,000 for each of
fiscal years 2009 and 2010, and $116,250,000 for the period
beginning October 1, 2010 and ending December 31, 2010,'';
and
(N) in subparagraph (N), by striking ``and $8,800,000 for
fiscal year 2009'' and inserting ``$8,800,000 for each of
fiscal years 2009 and 2010, and $2,200,000 for the period
beginning October 1, 2010 and ending December 31, 2010,''.
(b) Capital Investment Grants.--Section 5338(c) of title
49, United States Code, is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) $2,000,000,000 for fiscal year 2010; and
``(6) $500,000,000 for the period of October 1, 2010
through December 31, 2010.''.
(c) Research and University Research Centers.--Section
5338(d) of title 49, United States Code, is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by striking ``and $69,750,000 for fiscal year 2009'' and
inserting ``$69,750,000 for each of fiscal years 2009 and
2010, and $17,437,500 for the period beginning October 1,
2010, and ending December 31, 2010''; and
(2) by adding at the end the following:
``(3) Additional authorizations.--
``(A) In general.--
``(i) Fiscal year 2010.--Of amounts authorized to be
appropriated for fiscal year 2010 under paragraph (1), the
Secretary shall allocate for each of the activities and
projects described in subparagraphs (A) through (F) of
paragraph (1) an amount equal to the amount allocated for
fiscal year 2009 under each such subparagraph.
``(ii) October 1, 2010 through december 31, 2010.--Of
amounts authorized to be appropriated for the period
beginning October 1, 2010, through December 31, 2010, under
paragraph (1), the Secretary shall allocate for each of the
activities and projects described in subparagraphs (A)
through (F) of paragraph (1) an amount equal to 25 percent of
the amount allocated for fiscal year 2009 under each such
subparagraph.
``(B) University centers program.--
``(i) Fiscal year 2010.--Of the amounts allocated under
subparagraph (A)(i) for the university centers program under
section 5506 for fiscal year 2010, the Secretary shall
allocate for each program described in clauses (i) through
(iii) and (v) through (viii) of paragraph (2)(A) an amount
equal to the amount allocated for fiscal year 2009 under each
such clause.
``(ii) October 1, 2010 through december 31, 2010.--Of the
amounts allocated under subparagraph (A)(i) for the
university centers program under section 5506 for the period
beginning October 1, 2010, and ending December 31, 2010, the
Secretary shall allocate for each program described in
clauses (i) through (iii) and (v) through (viii) of paragraph
(2)(A) an amount equal to 25 percent of the amount allocated
for fiscal year 2009 under each such clause.
[[Page H1130]]
``(iii) Funding.--If the Secretary determines that a
project or activity described in paragraph (2) received
sufficient funds in fiscal year 2009, or a previous fiscal
year, to carry out the purpose for which the project or
activity was authorized, the Secretary may not allocate any
amounts under clause (i) or (ii) for the project or activity
for fiscal year 2010, or any subsequent fiscal year.''.
(d) Administration.--Section 5338(e) of title 49, United
States Code, is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(5) $98,911,000 for fiscal year 2010; and
``(6) $24,727,750 for the period beginning October 1, 2010,
and ending December 31, 2010.''.
SEC. 437. AMENDMENTS TO SAFETEA-LU.
(a) Contracted Paratransit Pilot.--Section 3009(i)(1) of
the SAFETEA-LU (Public Law 109-59; 119 Stat. 1572) is amended
by striking ``2009'' and inserting ``2010, and for the period
beginning October 1, 2010, and ending December 31, 2010''.
(b) Public-private Partnership Pilot Program.--Section 3011
of the SAFETEA-LU (49 U.S.C. 5309 note) is amended--
(1) in subsection (c)(5), by striking ``2009'' and
inserting ``2010 and the period beginning October 1, 2010,
and ending December 31, 2010''; and
(2) in subsection (d), by striking ``2009'' and inserting
``2010, and for the period beginning October 1, 2010, and
ending December 31, 2010''.
(c) Elderly Individuals and Individuals With Disabilities
Pilot Program.--Section 3012(b)(8) of the SAFETEA-LU (49
U.S.C. 5310 note) is amended by striking ``September 30,
2009'' and inserting ``December 31, 2010''.
(d) Obligation Ceiling.--Section 3040 of the SAFETEA-LU
(Public Law 109-59; 119 Stat. 1639) is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(6) $10,507,752,000 for fiscal year 2010, of which not
more than $8,360,565,000 shall be from the Mass Transit
Account; and
``(7) $2,626,938,000 for the period beginning October 1,
2010, and ending December 31, 2010, of which not more than
$2,090,141,250 shall be from the Mass Transit Account.''.
(e) Project Authorizations for New Fixed Guideway Capital
Projects.--Section 3043 of the SAFETEA-LU (Public Law 109-59;
119 Stat. 1640) is amended--
(1) in subsection (b), in the matter preceding paragraph
(1), by striking ``2009'' and inserting ``2010, and for the
period beginning October 1, 2010, and ending December 31,
2010,''; and
(2) in subsection (c), in the matter preceding paragraph
(1), by striking ``2009'' and inserting ``2010, and for the
period beginning October 1, 2010, and ending December 31,
2010,''.
(f) Allocations for National Research and Technology
Programs.--Section 3046 of the SAFETEA-LU (49 U.S.C. 5338
note) is amended--
(1) in subsection (b), by inserting ``or period'' after
``fiscal year''; and
(2) by adding at the end the following:
``(c) Additional Appropriations.--The Secretary shall
allocate amounts appropriated pursuant to section 5338(d) of
title 49, United States Code, for national research and
technology programs under sections 5312, 5314, and 5322 of
such title--
``(1) for fiscal year 2010, in amounts equal to the amounts
allocated for fiscal year 2009 under each of paragraphs (2),
(3), (5), (6), and (8) through (25) of subsection (a); and
``(2) for the period beginning October 1, 2010, and ending
December 31, 2010, in amounts equal to 25 percent of the
amounts allocated for fiscal year 2009 under each of
paragraphs (2), (3), (5), (6), and (8) through (25) of
subsection (a).
``(d) Funding.--If the Secretary determines that a project
or activity described in subsection (a) received sufficient
funds in fiscal year 2009, or a previous fiscal year, to
carry out the purpose for which the project or activity was
authorized, the Secretary may not allocate any amounts under
subsection (c) for the project or activity for fiscal year
2010, or any subsequent fiscal year.''.
Subtitle D--Revenue Provisions
SEC. 441. REPEAL OF PROVISION PROHIBITING THE CREDITING OF
INTEREST TO THE HIGHWAY TRUST FUND.
(a) In General.--Paragraph (1) of section 9503(f) is
amended by striking subparagraph (B).
(b) Conforming Amendments.--Such paragraph, as amended by
paragraph (1), is further amended--
(1) by striking ``, and'' at the end of subparagraph (A)
and inserting a period; and
(2) by striking ``1998'' in the matter preceding
subparagraph (A) and all that follows through ``the opening
balance'' and inserting ``1998, the opening balance''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this title.
SEC. 442. RESTORATION OF CERTAIN FOREGONE INTEREST TO HIGHWAY
TRUST FUND.
(a) In General.--Paragraph (2) of section 9503(f) is
amended to read as follows:
``(2) Restoration of foregone interest.--Out of money in
the Treasury not otherwise appropriated, there is hereby
appropriated--
``(A) $14,700,000,000 to the Highway Account (as defined in
subsection (e)(5)(B)) in the Highway Trust Fund; and
``(B) $4,800,000,000 to the Mass Transit Account in the
Highway Trust Fund.''.
(b) Conforming Amendment.--Paragraph (1) of section 9503(e)
is amended by striking ``this subsection'' and inserting
``this section''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 443. TREATMENT OF CERTAIN AMOUNTS APPROPRIATED TO
HIGHWAY TRUST FUND.
(a) In General.--Section 9503(f), as amended by this Act,
is amended by adding at the end the following new paragraph:
``(4) Treatment of appropriated amounts.--Any amount
appropriated under this subsection to the Highway Trust Fund
shall remain available without fiscal year limitation.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 444. TERMINATION OF TRANSFERS FROM HIGHWAY TRUST FUND
FOR CERTAIN REPAYMENTS AND CREDITS.
(a) In General.--Section 9503(c) is amended by striking
paragraph (2) and by redesignating paragraphs (3), (4), (5),
and (6) as paragraphs (2), (3), (4), and (5), respectively.
(b) Conforming Amendments.--
(1) Section 9502(a) is amended by striking ``section
9503(c)(7)'' and inserting ``section 9503(c)(5)''.
(2) Section 9503(b)(4)(D) is amended by striking
``paragraph (4)(D) or (5)(B)'' and inserting ``paragraph
(3)(D) or (4)(B)''.
(3) Paragraph (2) of section 9503(c), as redesignated by
subsection (a), is amended by adding at the end the following
new sentence: ``The amounts payable from the Highway Trust
Fund under the preceding sentence shall be determined by
taking into account only the portion of the taxes which are
deposited into the Highway Trust Fund.''.
(4) Section 9503(e)(5)(A) is amended by striking ``(2),
(3), and (4)'' and inserting ``(2) and (3)''.
(5) Section 9504(a) is amended by striking ``section
9503(c)(4), section 9503(c)(5)'' and inserting ``section
9503(c)(3), section 9503(c)(4)''.
(6) Section 9504(b)(2) is amended by striking ``section
9503(c)(5)'' and inserting ``section 9503(c)(4)''.
(7) Section 9504(e) is amended by striking ``section
9503(c)(4)'' and inserting section ``9503(c)(3)''.
(c) Effective Date.--The amendment made by this section
shall apply to transfers relating to amounts paid and credits
allowed after the date of the enactment of this Act.
SEC. 445. EXTENSION OF AUTHORITY FOR EXPENDITURES.
(a) Highways Trust Fund.--
(1) Highway account.--Paragraph (1) of section 9503(c) is
amended--
(A) by striking ``September 30, 2009 (October 1, 2009'' and
inserting ``December 31, 2010 (January 1, 2011''; and
(B) by striking ``under'' and all that follows and
inserting ``under the Surface Transportation Extension Act of
2010 or any other provision of law which was referred to in
this paragraph before the date of the enactment of such Act
(as such Act and provisions of law are in effect on the date
of the enactment of such Act).''.
(2) Mass transit account.--Paragraph (3) of section 9503(e)
is amended--
(A) by striking ``October 1, 2009'' and inserting ``January
1, 2011''; and
(B) by striking ``in accordance with'' and all that follows
and inserting ``in accordance with the Surface Transportation
Extension Act of 2010 or any other provision of law which was
referred to in this paragraph before the date of the
enactment of such Act (as such Act and provisions of law are
in effect on the date of the enactment of such Act).''.
(3) Exception to limitation on transfers.--Subparagraph (B)
of section 9503(b)(6) is amended by striking ``September 30,
2009 (October 1, 2009'' and inserting ``December 31, 2010
(January 1, 2011''.
(b) Sport Fish Restoration and Boating Trust Fund.--
(1) In general.--Paragraph (2) of section 9504(b) is
amended--
(A) by striking ``(as in effect'' in subparagraph (A) and
all that follows in such subparagraph and inserting ``(as in
effect on the date of the enactment of the Surface
Transportation Extension Act of 2010),'',
(B) by striking ``(as in effect'' in subparagraph (B) and
all that follows in such subparagraph and inserting ``(as in
effect on the date of the enactment of the Surface
Transportation Extension Act of 2010), and'', and
(C) by striking ``(as in effect'' in subparagraph (C) and
all that follows in such subparagraph and inserting ``(as in
effect on the date of the enactment of the Surface
Transportation Extension Act of 2010).''.
(2) Exception to limitation on transfers.--Paragraph (2) of
section 9504(d) is amended by striking ``October 1, 2009''
and inserting ``January 1, 2011''.
(c) Effective Date.--The amendments made by this section
shall take effect on September 30, 2009.
SEC. 446. LEVEL OF OBLIGATION LIMITATIONS.
(a) Highway Category.--Section 8003(a) of the SAFETEA-LU (2
U.S.C. 901 note; 119 Stat. 1917) is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(6) for the period beginning on October 1, 2009, and
ending on September 30, 2010, $42,469,970,178.
``(7) for the period beginning on October 1, 2010, and
ending on December 31, 2010, $10,617,492,545.''.
(b) Mass Transit Category.--Section 8003(b) of the SAFETEA-
LU (2 U.S.C. 901 note; 119 Stat. 1917) is amended--
[[Page H1131]]
(1) in paragraph (4), by striking ``and'' at the end;
(2) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(6) for the period beginning on October 1, 2009, and
ending on December 31, 2010, $10,338,065,000.
``(7) for the period beginning on October 1, 2010, and
ending on December 31, 2010, $2,584,516,250.''.
(c) Treatment of Funds.--No adjustment pursuant to section
110 of title 23, United States Code, shall be made for fiscal
year 2010 or fiscal year 2011.
TITLE V--OFFSET PROVISIONS
Subtitle A--Foreign Account Tax Compliance
PART I--INCREASED DISCLOSURE OF BENEFICIAL OWNERS
SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS.
(a) In General.--The Internal Revenue Code of 1986 is
amended by inserting after chapter 3 the following new
chapter:
``CHAPTER 4--TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS
``Sec. 1471. Withholdable payments to foreign financial institutions.
``Sec. 1472. Withholdable payments to other foreign entities.
``Sec. 1473. Definitions.
``Sec. 1474. Special rules.
``SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL
INSTITUTIONS.
``(a) In General.--In the case of any withholdable payment
to a foreign financial institution which does not meet the
requirements of subsection (b), the withholding agent with
respect to such payment shall deduct and withhold from such
payment a tax equal to 30 percent of the amount of such
payment.
``(b) Reporting Requirements, etc.--
``(1) In general.--The requirements of this subsection are
met with respect to any foreign financial institution if an
agreement is in effect between such institution and the
Secretary under which such institution agrees--
``(A) to obtain such information regarding each holder of
each account maintained by such institution as is necessary
to determine which (if any) of such accounts are United
States accounts,
``(B) to comply with such verification and due diligence
procedures as the Secretary may require with respect to the
identification of United States accounts,
``(C) in the case of any United States account maintained
by such institution, to report on an annual basis the
information described in subsection (c) with respect to such
account,
``(D) to deduct and withhold a tax equal to 30 percent of--
``(i) any passthru payment which is made by such
institution to a recalcitrant account holder or another
foreign financial institution which does not meet the
requirements of this subsection, and
``(ii) in the case of any passthru payment which is made by
such institution to a foreign financial institution which has
in effect an election under paragraph (3) with respect to
such payment, so much of such payment as is allocable to
accounts held by recalcitrant account holders or foreign
financial institutions which do not meet the requirements of
this subsection,
``(E) to comply with requests by the Secretary for
additional information with respect to any United States
account maintained by such institution, and
``(F) in any case in which any foreign law would (but for a
waiver described in clause (i)) prevent the reporting of any
information referred to in this subsection or subsection (c)
with respect to any United States account maintained by such
institution--
``(i) to attempt to obtain a valid and effective waiver of
such law from each holder of such account, and
``(ii) if a waiver described in clause (i) is not obtained
from each such holder within a reasonable period of time, to
close such account.
Any agreement entered into under this subsection may be
terminated by the Secretary upon a determination by the
Secretary that the foreign financial institution is out of
compliance with such agreement.
``(2) Financial institutions deemed to meet requirements in
certain cases.--A foreign financial institution may be
treated by the Secretary as meeting the requirements of this
subsection if--
``(A) such institution--
``(i) complies with such procedures as the Secretary may
prescribe to ensure that such institution does not maintain
United States accounts, and
``(ii) meets such other requirements as the Secretary may
prescribe with respect to accounts of other foreign financial
institutions maintained by such institution, or
``(B) such institution is a member of a class of
institutions with respect to which the Secretary has
determined that the application of this section is not
necessary to carry out the purposes of this section.
``(3) Election to be withheld upon rather than withhold on
payments to recalcitrant account holders and nonparticipating
foreign financial institutions.--In the case of a foreign
financial institution which meets the requirements of this
subsection and such other requirements as the Secretary may
provide and which elects the application of this paragraph--
``(A) the requirements of paragraph (1)(D) shall not apply,
``(B) the withholding tax imposed under subsection (a)
shall apply with respect to any withholdable payment to such
institution to the extent such payment is allocable to
accounts held by recalcitrant account holders or foreign
financial institutions which do not meet the requirements of
this subsection, and
``(C) the agreement described in paragraph (1) shall--
``(i) require such institution to notify the withholding
agent with respect to each such payment of the institution's
election under this paragraph and such other information as
may be necessary for the withholding agent to determine the
appropriate amount to deduct and withhold from such payment,
and
``(ii) include a waiver of any right under any treaty of
the United States with respect to any amount deducted and
withheld pursuant to an election under this paragraph.
To the extent provided by the Secretary, the election under
this paragraph may be made with respect to certain classes or
types of accounts of the foreign financial institution.
``(c) Information Required To Be Reported on United States
Accounts.--
``(1) In general.--The agreement described in subsection
(b) shall require the foreign financial institution to report
the following with respect to each United States account
maintained by such institution:
``(A) The name, address, and TIN of each account holder
which is a specified United States person and, in the case of
any account holder which is a United States owned foreign
entity, the name, address, and TIN of each substantial United
States owner of such entity.
``(B) The account number.
``(C) The account balance or value (determined at such time
and in such manner as the Secretary may provide).
``(D) Except to the extent provided by the Secretary, the
gross receipts and gross withdrawals or payments from the
account (determined for such period and in such manner as the
Secretary may provide).
``(2) Election to be subject to same reporting as united
states financial institutions.--In the case of a foreign
financial institution which elects the application of this
paragraph--
``(A) subparagraphs (C) and (D) of paragraph (1) shall not
apply, and
``(B) the agreement described in subsection (b) shall
require such foreign financial institution to report such
information with respect to each United States account
maintained by such institution as such institution would be
required to report under sections 6041, 6042, 6045, and 6049
if--
``(i) such institution were a United States person, and
``(ii) each holder of such account which is a specified
United States person or United States owned foreign entity
were a natural person and citizen of the United States.
An election under this paragraph shall be made at such time,
in such manner, and subject to such conditions as the
Secretary may provide.
``(3) Separate requirements for qualified intermediaries.--
In the case of a foreign financial institution which is
treated as a qualified intermediary by the Secretary for
purposes of section 1441 and the regulations issued
thereunder, the requirements of this section shall be in
addition to any reporting or other requirements imposed by
the Secretary for purposes of such treatment.
``(d) Definitions.--For purposes of this section--
``(1) United states account.--
``(A) In general.--The term `United States account' means
any financial account which is held by one or more specified
United States persons or United States owned foreign
entities.
``(B) Exception for certain accounts held by individuals.--
Unless the foreign financial institution elects to not have
this subparagraph apply, such term shall not include any
depository account maintained by such financial institution
if--
``(i) each holder of such account is a natural person, and
``(ii) with respect to each holder of such account, the
aggregate value of all depository accounts held (in whole or
in part) by such holder and maintained by the same financial
institution which maintains such account does not exceed
$50,000.
To the extent provided by the Secretary, financial
institutions which are members of the same expanded
affiliated group shall be treated for purposes of clause (ii)
as a single financial institution.
``(C) Elimination of duplicative reporting requirements.--
Such term shall not include any financial account in a
foreign financial institution if--
``(i) such account is held by another financial institution
which meets the requirements of subsection (b), or
``(ii) the holder of such account is otherwise subject to
information reporting requirements which the Secretary
determines would make the reporting required by this section
with respect to United States accounts duplicative.
``(2) Financial account.--Except as otherwise provided by
the Secretary, the term `financial account' means, with
respect to any financial institution--
``(A) any depository account maintained by such financial
institution,
``(B) any custodial account maintained by such financial
institution, and
``(C) any equity or debt interest in such financial
institution (other than interests which are regularly traded
on an established securities market).
Any equity or debt interest which constitutes a financial
account under subparagraph (C) with respect to any financial
institution shall be treated for purposes of this section as
maintained by such financial institution.
``(3) United states owned foreign entity.--The term `United
States owned foreign entity'
[[Page H1132]]
means any foreign entity which has one or more substantial
United States owners.
``(4) Foreign financial institution.--The term `foreign
financial institution' means any financial institution which
is a foreign entity. Except as otherwise provided by the
Secretary, such term shall not include a financial
institution which is organized under the laws of any
possession of the United States.
``(5) Financial institution.--Except as otherwise provided
by the Secretary, the term `financial institution' means any
entity that--
``(A) accepts deposits in the ordinary course of a banking
or similar business,
``(B) as a substantial portion of its business, holds
financial assets for the account of others, or
``(C) is engaged (or holding itself out as being engaged)
primarily in the business of investing, reinvesting, or
trading in securities (as defined in section 475(c)(2)
without regard to the last sentence thereof), partnership
interests, commodities (as defined in section 475(e)(2)), or
any interest (including a futures or forward contract or
option) in such securities, partnership interests, or
commodities.
``(6) Recalcitrant account holder.--The term `recalcitrant
account holder' means any account holder which--
``(A) fails to comply with reasonable requests for the
information referred to in subsection (b)(1)(A) or (c)(1)(A),
or
``(B) fails to provide a waiver described in subsection
(b)(1)(F) upon request.
``(7) Passthru payment.--The term `passthru payment' means
any withholdable payment or other payment to the extent
attributable to a withholdable payment.
``(e) Affiliated Groups.--
``(1) In general.--The requirements of subsections (b) and
(c)(1) shall apply--
``(A) with respect to United States accounts maintained by
the foreign financial institution, and
``(B) except as otherwise provided by the Secretary, with
respect to United States accounts maintained by each other
foreign financial institution (other than any foreign
financial institution which meets the requirements of
subsection (b)) which is a member of the same expanded
affiliated group as such foreign financial institution.
``(2) Expanded affiliated group.--For purposes of this
section, the term `expanded affiliated group' means an
affiliated group as defined in section 1504(a), determined--
``(A) by substituting `more than 50 percent' for `at least
80 percent' each place it appears, and
``(B) without regard to paragraphs (2) and (3) of section
1504(b).
A partnership or any other entity (other than a corporation)
shall be treated as a member of an expanded affiliated group
if such entity is controlled (within the meaning of section
954(d)(3)) by members of such group (including any entity
treated as a member of such group by reason of this
sentence).
``(f) Exception for Certain Payments.--Subsection (a) shall
not apply to any payment to the extent that the beneficial
owner of such payment is--
``(1) any foreign government, any political subdivision of
a foreign government, or any wholly owned agency or
instrumentality of any one or more of the foregoing,
``(2) any international organization or any wholly owned
agency or instrumentality thereof,
``(3) any foreign central bank of issue, or
``(4) any other class of persons identified by the
Secretary for purposes of this subsection as posing a low
risk of tax evasion.
``SEC. 1472. WITHHOLDABLE PAYMENTS TO OTHER FOREIGN ENTITIES.
``(a) In General.--In the case of any withholdable payment
to a non-financial foreign entity, if--
``(1) the beneficial owner of such payment is such entity
or any other non-financial foreign entity, and
``(2) the requirements of subsection (b) are not met with
respect to such beneficial owner,
then the withholding agent with respect to such payment shall
deduct and withhold from such payment a tax equal to 30
percent of the amount of such payment.
``(b) Requirements for Waiver of Withholding.--The
requirements of this subsection are met with respect to the
beneficial owner of a payment if--
``(1) such beneficial owner or the payee provides the
withholding agent with either--
``(A) a certification that such beneficial owner does not
have any substantial United States owners, or
``(B) the name, address, and TIN of each substantial United
States owner of such beneficial owner,
``(2) the withholding agent does not know, or have reason
to know, that any information provided under paragraph (1) is
incorrect, and
``(3) the withholding agent reports the information
provided under paragraph (1)(B) to the Secretary in such
manner as the Secretary may provide.
``(c) Exceptions.--Subsection (a) shall not apply to--
``(1) except as otherwise provided by the Secretary, any
payment beneficially owned by--
``(A) any corporation the stock of which is regularly
traded on an established securities market,
``(B) any corporation which is a member of the same
expanded affiliated group (as defined in section 1471(e)(2)
without regard to the last sentence thereof) as a corporation
described in subparagraph (A),
``(C) any entity which is organized under the laws of a
possession of the United States and which is wholly owned by
one or more bona fide residents (as defined in section
937(a)) of such possession,
``(D) any foreign government, any political subdivision of
a foreign government, or any wholly owned agency or
instrumentality of any one or more of the foregoing,
``(E) any international organization or any wholly owned
agency or instrumentality thereof,
``(F) any foreign central bank of issue, or
``(G) any other class of persons identified by the
Secretary for purposes of this subsection, and
``(2) any class of payments identified by the Secretary for
purposes of this subsection as posing a low risk of tax
evasion.
``(d) Non-Financial Foreign Entity.--For purposes of this
section, the term `non-financial foreign entity' means any
foreign entity which is not a financial institution (as
defined in section 1471(d)(5)).
``SEC. 1473. DEFINITIONS.
``For purposes of this chapter--
``(1) Withholdable payment.--Except as otherwise provided
by the Secretary--
``(A) In general.--The term `withholdable payment' means--
``(i) any payment of interest (including any original issue
discount), dividends, rents, salaries, wages, premiums,
annuities, compensations, remunerations, emoluments, and
other fixed or determinable annual or periodical gains,
profits, and income, if such payment is from sources within
the United States, and
``(ii) any gross proceeds from the sale or other
disposition of any property of a type which can produce
interest or dividends from sources within the United States.
``(B) Exception for income connected with united states
business.--Such term shall not include any item of income
which is taken into account under section 871(b)(1) or
882(a)(1) for the taxable year.
``(C) Special rule for sourcing interest paid by foreign
branches of domestic financial institutions.--Subparagraph
(B) of section 861(a)(1) shall not apply.
``(2) Substantial united states owner.--
``(A) In general.--The term `substantial United States
owner' means--
``(i) with respect to any corporation, any specified United
States person which owns, directly or indirectly, more than
10 percent of the stock of such corporation (by vote or
value),
``(ii) with respect to any partnership, any specified
United States person which owns, directly or indirectly, more
than 10 percent of the profits interests or capital interests
in such partnership, and
``(iii) in the case of a trust--
``(I) any specified United States person treated as an
owner of any portion of such trust under subpart E of part I
of subchapter J of chapter 1, and
``(II) to the extent provided by the Secretary in
regulations or other guidance, any specified United States
person which holds, directly or indirectly, more than 10
percent of the beneficial interests of such trust.
``(B) Special rule for investment vehicles.--In the case of
any financial institution described in section 1471(d)(5)(C),
clauses (i), (ii), and (iii) of subparagraph (A) shall be
applied by substituting `0 percent' for `10 percent'.
``(3) Specified united states person.--Except as otherwise
provided by the Secretary, the term `specified United States
person' means any United States person other than--
``(A) any corporation the stock of which is regularly
traded on an established securities market,
``(B) any corporation which is a member of the same
expanded affiliated group (as defined in section 1471(e)(2)
without regard to the last sentence thereof) as a corporation
the stock of which is regularly traded on an established
securities market,
``(C) any organization exempt from taxation under section
501(a) or an individual retirement plan,
``(D) the United States or any wholly owned agency or
instrumentality thereof,
``(E) any State, the District of Columbia, any possession
of the United States, any political subdivision of any of the
foregoing, or any wholly owned agency or instrumentality of
any one or more of the foregoing,
``(F) any bank (as defined in section 581),
``(G) any real estate investment trust (as defined in
section 856),
``(H) any regulated investment company (as defined in
section 851),
``(I) any common trust fund (as defined in section 584(a)),
and
``(J) any trust which--
``(i) is exempt from tax under section 664(c), or
``(ii) is described in section 4947(a)(1).
``(4) Withholding agent.--The term `withholding agent'
means all persons, in whatever capacity acting, having the
control, receipt, custody, disposal, or payment of any
withholdable payment.
``(5) Foreign entity.--The term `foreign entity' means any
entity which is not a United States person.
``SEC. 1474. SPECIAL RULES.
``(a) Liability for Withheld Tax.--Every person required to
deduct and withhold any tax under this chapter is hereby made
liable for such tax and is hereby indemnified against the
claims and demands of any person for the amount of any
payments made in accordance with the provisions of this
chapter.
``(b) Credits and Refunds.--
``(1) In general.--Except as provided in paragraph (2), the
determination of whether any tax deducted and withheld under
this chapter results in an overpayment by the beneficial
owner of the payment to which such tax is attributable shall
be made as if such tax had been deducted and withheld under
subchapter A of chapter 3.
``(2) Special rule where foreign financial institution is
beneficial owner of payment.--
[[Page H1133]]
``(A) In general.--In the case of any tax properly deducted
and withheld under section 1471 from a specified financial
institution payment--
``(i) if the foreign financial institution referred to in
subparagraph (B) with respect to such payment is entitled to
a reduced rate of tax with respect to such payment by reason
of any treaty obligation of the United States--
``(I) the amount of any credit or refund with respect to
such tax shall not exceed the amount of credit or refund
attributable to such reduction in rate, and
``(II) no interest shall be allowed or paid with respect to
such credit or refund, and
``(ii) if such foreign financial institution is not so
entitled, no credit or refund shall be allowed or paid with
respect to such tax.
``(B) Specified financial institution payment.--The term
`specified financial institution payment' means any payment
if the beneficial owner of such payment is a foreign
financial institution.
``(3) Requirement to identify substantial united states
owners.--No credit or refund shall be allowed or paid with
respect to any tax properly deducted and withheld under this
chapter unless the beneficial owner of the payment provides
the Secretary such information as the Secretary may require
to determine whether such beneficial owner is a United States
owned foreign entity (as defined in section 1471(d)(3)) and
the identity of any substantial United States owners of such
entity.
``(c) Confidentiality of Information.--
``(1) In general.--For purposes of this chapter, rules
similar to the rules of section 3406(f) shall apply.
``(2) Disclosure of list of participating foreign financial
institutions permitted.--The identity of a foreign financial
institution which meets the requirements of section 1471(b)
shall not be treated as return information for purposes of
section 6103.
``(d) Coordination With Other Withholding Provisions.--The
Secretary shall provide for the coordination of this chapter
with other withholding provisions under this title, including
providing for the proper crediting of amounts deducted and
withheld under this chapter against amounts required to be
deducted and withheld under such other provisions.
``(e) Treatment of Withholding Under Agreements.--Any tax
deducted and withheld pursuant to an agreement described in
section 1471(b) shall be treated for purposes of this title
as a tax deducted and withheld by a withholding agent under
section 1471(a).
``(f) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of, and prevent the
avoidance of, this chapter.''.
(b) Special Rule for Interest on Overpayments.--Subsection
(e) of section 6611 is amended by adding at the end the
following new paragraph:
``(4) Certain withholding taxes.--In the case of any
overpayment resulting from tax deducted and withheld under
chapter 3 or 4, paragraphs (1), (2), and (3) shall be applied
by substituting `180 days' for `45 days' each place it
appears.''.
(c) Conforming Amendments.--
(1) Section 6414 is amended by inserting ``or 4'' after
``chapter 3''.
(2) Paragraph (1) of section 6501(b) is amended by
inserting ``4,'' after ``chapter 3,''.
(3) Paragraph (2) of section 6501(b) is amended--
(A) by inserting ``4,'' after ``chapter 3,'' in the text
thereof, and
(B) by striking ``taxes and tax imposed by chapter 3'' in
the heading thereof and inserting ``and withholding taxes''.
(4) Paragraph (3) of section 6513(b) is amended--
(A) by inserting ``or 4'' after ``chapter 3'', and
(B) by inserting ``or 1474(b)'' after ``section 1462''.
(5) Subsection (c) of section 6513 is amended by inserting
``4,'' after ``chapter 3,''.
(6) Paragraph (1) of section 6724(d) is amended by
inserting ``under chapter 4 or'' after ``filed with the
Secretary'' in the last sentence thereof.
(7) Paragraph (2) of section 6724(d) is amended by
inserting ``or 4'' after ``chapter 3''.
(8) The table of chapters of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Chapter 4. Taxes To Enforce Reporting on Certain Foreign Accounts.''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to payments made after December 31, 2012.
(2) Grandfathered treatment of outstanding obligations.--
The amendments made by this section shall not require any
amount to be deducted or withheld from any payment under any
obligation outstanding on the date which is 2 years after the
date of the enactment of this Act or from the gross proceeds
from any disposition of such an obligation.
(3) Interest on overpayments.--The amendment made by
subsection (b) shall apply--
(A) in the case of such amendment's application to
paragraph (1) of section 6611(e) of the Internal Revenue Code
of 1986, to returns the due date for which (determined
without regard to extensions) is after the date of the
enactment of this Act,
(B) in the case of such amendment's application to
paragraph (2) of such section, to claims for credit or refund
of any overpayment filed after the date of the enactment of
this Act (regardless of the taxable period to which such
refund relates), and
(C) in the case of such amendment's application to
paragraph (3) of such section, to refunds paid after the date
of the enactment of this Act (regardless of the taxable
period to which such refund relates).
SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO REGISTERED
BOND REQUIREMENTS.
(a) Repeal of Exception to Denial of Deduction for Interest
on Non-Registered Bonds.--
(1) In general.--Paragraph (2) of section 163(f) is amended
by striking subparagraph (B) and by redesignating
subparagraph (C) as subparagraph (B).
(2) Conforming amendments.--
(A) Paragraph (2) of section 149(a) is amended by inserting
``or'' at the end of subparagraph (A), by striking ``, or''
at the end of subparagraph (B) and inserting a period, and by
striking subparagraph (C).
(B) Subparagraph (A) of section 163(f)(2) is amended by
inserting ``or'' at the end of clause (ii), by striking ``,
or'' at the end of clause (iii) and inserting a period, and
by striking clause (iv).
(C) Subparagraph (B) of section 163(f)(2), as redesignated
by paragraph (1), is amended--
(i) by striking ``, and subparagraph (B),'' in the matter
preceding clause (i), and
(ii) by amending clause (i) to read as follows:
``(i) such obligation is of a type which the Secretary has
determined by regulations to be used frequently in avoiding
Federal taxes, and''.
(D) Sections 165(j)(2)(A) and 1287(b)(1) are each amended
by striking ``except that clause (iv) of subparagraph (A),
and subparagraph (B), of such section shall not apply''.
(b) Repeal of Treatment as Portfolio Debt.--
(1) In general.--Paragraph (2) of section 871(h) is amended
to read as follows:
``(2) Portfolio interest.--For purposes of this subsection,
the term `portfolio interest' means any interest (including
original issue discount) which--
``(A) would be subject to tax under subsection (a) but for
this subsection, and
``(B) is paid on an obligation--
``(i) which is in registered form, and
``(ii) with respect to which--
``(I) the United States person who would otherwise be
required to deduct and withhold tax from such interest under
section 1441(a) receives a statement (which meets the
requirements of paragraph (5)) that the beneficial owner of
the obligation is not a United States person, or
``(II) the Secretary has determined that such a statement
is not required in order to carry out the purposes of this
subsection.''.
(2) Conforming amendments.--
(A) Section 871(h)(3)(A) is amended by striking
``subparagraph (A) or (B) of''.
(B) Paragraph (2) of section 881(c) is amended to read as
follows:
``(2) Portfolio interest.--For purposes of this subsection,
the term `portfolio interest' means any interest (including
original issue discount) which--
``(A) would be subject to tax under subsection (a) but for
this subsection, and
``(B) is paid on an obligation--
``(i) which is in registered form, and
``(ii) with respect to which--
``(I) the person who would otherwise be required to deduct
and withhold tax from such interest under section 1442(a)
receives a statement which meets the requirements of section
871(h)(5) that the beneficial owner of the obligation is not
a United States person, or
``(II) the Secretary has determined that such a statement
is not required in order to carry out the purposes of this
subsection.''.
(c) Dematerialized Book Entry Systems Treated as Registered
Form.--Paragraph (3) of section 163(f) is amended by
inserting ``, except that a dematerialized book entry system
or other book entry system specified by the Secretary shall
be treated as a book entry system described in such section''
before the period at the end.
(d) Repeal of Exception to Requirement That Treasury
Obligations Be in Registered Form.--
(1) In general.--Subsection (g) of section 3121 of title
31, United States Code, is amended by striking paragraph (2)
and by redesignating paragraphs (3) and (4) as paragraphs (2)
and (3), respectively.
(2) Conforming amendments.--Paragraph (1) of section
3121(g) of such title is amended--
(A) by adding ``or'' at the end of subparagraph (A),
(B) by striking ``; or'' at the end of subparagraph (B) and
inserting a period, and
(C) by striking subparagraph (C).
(e) Preservation of Exception for Excise Tax Purposes.--
Paragraph (1) of section 4701(b) is amended to read as
follows:
``(1) Registration-required obligation.--
``(A) In general.--The term `registration-required
obligation' has the same meaning as when used in section
163(f), except that such term shall not include any
obligation which--
``(i) is required to be registered under section 149(a), or
``(ii) is described in subparagraph (B).
``(B) Certain obligations not included.--An obligation is
described in this subparagraph if--
``(i) there are arrangements reasonably designed to ensure
that such obligation will be sold (or resold in connection
with the original issue) only to a person who is not a United
States person,
``(ii) interest on such obligation is payable only outside
the United States and its possessions, and
``(iii) on the face of such obligation there is a statement
that any United States person who holds such obligation will
be subject to limitations under the United States income tax
laws.''.
[[Page H1134]]
(f) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date which is 2
years after the date of the enactment of this Act.
PART II--UNDER REPORTING WITH RESPECT TO FOREIGN ASSETS
SEC. 511. DISCLOSURE OF INFORMATION WITH RESPECT TO FOREIGN
FINANCIAL ASSETS.
(a) In General.--Subpart A of part III of subchapter A of
chapter 61 is amended by inserting after section 6038C the
following new section:
``SEC. 6038D. INFORMATION WITH RESPECT TO FOREIGN FINANCIAL
ASSETS.
``(a) In General.--Any individual who, during any taxable
year, holds any interest in a specified foreign financial
asset shall attach to such person's return of tax imposed by
subtitle A for such taxable year the information described in
subsection (c) with respect to each such asset if the
aggregate value of all such assets exceeds $50,000 (or such
higher dollar amount as the Secretary may prescribe).
``(b) Specified Foreign Financial Assets.--For purposes of
this section, the term `specified foreign financial asset'
means--
``(1) any financial account (as defined in section
1471(d)(2)) maintained by a foreign financial institution (as
defined in section 1471(d)(4)), and
``(2) any of the following assets which are not held in an
account maintained by a financial institution (as defined in
section 1471(d)(5))--
``(A) any stock or security issued by a person other than a
United States person,
``(B) any financial instrument or contract held for
investment that has an issuer or counterparty which is other
than a United States person, and
``(C) any interest in a foreign entity (as defined in
section 1473).
``(c) Required Information.--The information described in
this subsection with respect to any asset is:
``(1) In the case of any account, the name and address of
the financial institution in which such account is maintained
and the number of such account.
``(2) In the case of any stock or security, the name and
address of the issuer and such information as is necessary to
identify the class or issue of which such stock or security
is a part.
``(3) In the case of any other instrument, contract, or
interest--
``(A) such information as is necessary to identify such
instrument, contract, or interest, and
``(B) the names and addresses of all issuers and
counterparties with respect to such instrument, contract, or
interest.
``(4) The maximum value of the asset during the taxable
year.
``(d) Penalty for Failure To Disclose.--
``(1) In general.--If any individual fails to furnish the
information described in subsection (c) with respect to any
taxable year at the time and in the manner described in
subsection (a), such person shall pay a penalty of $10,000.
``(2) Increase in penalty where failure continues after
notification.--If any failure described in paragraph (1)
continues for more than 90 days after the day on which the
Secretary mails notice of such failure to the individual,
such individual shall pay a penalty (in addition to the
penalties under paragraph (1)) of $10,000 for each 30-day
period (or fraction thereof) during which such failure
continues after the expiration of such 90-day period. The
penalty imposed under this paragraph with respect to any
failure shall not exceed $50,000.
``(e) Presumption That Value of Specified Foreign Financial
Assets Exceeds Dollar Threshold.--If--
``(1) the Secretary determines that an individual has an
interest in one or more specified foreign financial assets,
and
``(2) such individual does not provide sufficient
information to demonstrate the aggregate value of such
assets,
then the aggregate value of such assets shall be treated as
being in excess of $50,000 (or such higher dollar amount as
the Secretary prescribes for purposes of subsection (a)) for
purposes of assessing the penalties imposed under this
section.
``(f) Application to Certain Entities.--To the extent
provided by the Secretary in regulations or other guidance,
the provisions of this section shall apply to any domestic
entity which is formed or availed of for purposes of holding,
directly or indirectly, specified foreign financial assets,
in the same manner as if such entity were an individual.
``(g) Reasonable Cause Exception.--No penalty shall be
imposed by this section on any failure which is shown to be
due to reasonable cause and not due to willful neglect. The
fact that a foreign jurisdiction would impose a civil or
criminal penalty on the taxpayer (or any other person) for
disclosing the required information is not reasonable cause.
``(h) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section,
including regulations or other guidance which provide
appropriate exceptions from the application of this section
in the case of--
``(1) classes of assets identified by the Secretary,
including any assets with respect to which the Secretary
determines that disclosure under this section would be
duplicative of other disclosures,
``(2) nonresident aliens, and
``(3) bona fide residents of any possession of the United
States.''.
(b) Clerical Amendment.--The table of sections for subpart
A of part III of subchapter A of chapter 61 is amended by
inserting after the item relating to section 6038C the
following new item:
``Sec. 6038D. Information with respect to foreign financial assets.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO
UNDISCLOSED FOREIGN FINANCIAL ASSETS.
(a) In General.--Section 6662, as amended by this Act, is
amended--
(1) in subsection (b), by inserting after paragraph (6) the
following new paragraph:
``(7) Any undisclosed foreign financial asset
understatement.'', and
(2) by adding at the end the following new subsection:
``(j) Undisclosed Foreign Financial Asset Understatement.--
``(1) In general.--For purposes of this section, the term
`undisclosed foreign financial asset understatement' means,
for any taxable year, the portion of the understatement for
such taxable year which is attributable to any transaction
involving an undisclosed foreign financial asset.
``(2) Undisclosed foreign financial asset.--For purposes of
this subsection, the term `undisclosed foreign financial
asset' means, with respect to any taxable year, any asset
with respect to which information was required to be provided
under section 6038, 6038B, 6038D, 6046A, or 6048 for such
taxable year but was not provided by the taxpayer as required
under the provisions of those sections.
``(3) Increase in penalty for undisclosed foreign financial
asset understatements.--In the case of any portion of an
underpayment which is attributable to any undisclosed foreign
financial asset understatement, subsection (a) shall be
applied with respect to such portion by substituting `40
percent' for `20 percent'.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR
SIGNIFICANT OMISSION OF INCOME IN CONNECTION
WITH FOREIGN ASSETS.
(a) Extension of Statute of Limitations.--
(1) In general.--Paragraph (1) of section 6501(e) is
amended by redesignating subparagraphs (A) and (B) as
subparagraphs (B) and (C), respectively, and by inserting
before subparagraph (B) (as so redesignated) the following
new subparagraph:
``(A) General rule.--If the taxpayer omits from gross
income an amount properly includible therein and--
``(i) such amount is in excess of 25 percent of the amount
of gross income stated in the return, or
``(ii) such amount--
``(I) is attributable to one or more assets with respect to
which information is required to be reported under section
6038D (or would be so required if such section were applied
without regard to the dollar threshold specified in
subsection (a) thereof and without regard to any exceptions
provided pursuant to subsection (h)(1) thereof), and
``(II) is in excess of $5,000,
the tax may be assessed, or a proceeding in court for
collection of such tax may be begun without assessment, at
any time within 6 years after the return was filed.''.
(2) Conforming amendments.--
(A) Subparagraph (B) of section 6501(e)(1), as redesignated
by paragraph (1), is amended by striking all that precedes
clause (i) and inserting the following:
``(B) Determination of gross income.--For purposes of
subparagraph (A)--''.
(B) Paragraph (2) of section 6229(c) is amended by striking
``which is in excess of 25 percent of the amount of gross
income stated in its return'' and inserting ``and such amount
is described in clause (i) or (ii) of section
6501(e)(1)(A)''.
(b) Additional Reports Subject to Extended Period.--
Paragraph (8) of section 6501(c) is amended--
(1) by inserting ``pursuant to an election under section
1295(b) or'' before ``under section 6038'',
(2) by inserting ``1298(f),'' before ``6038'', and
(3) by inserting ``6038D,'' after ``6038B,''.
(c) Clarifications Related to Failure To Disclose Foreign
Transfers.--Paragraph (8) of section 6501(c) is amended by
striking ``event'' and inserting ``tax return, event,''.
(d) Effective Date.--The amendments made by this section
shall apply to--
(1) returns filed after the date of the enactment of this
Act; and
(2) returns filed on or before such date if the period
specified in section 6501 of the Internal Revenue Code of
1986 (determined without regard to such amendments) for
assessment of such taxes has not expired as of such date.
PART III--OTHER DISCLOSURE PROVISIONS
SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE
FOREIGN INVESTMENT COMPANIES.
(a) In General.--Section 1298 is amended by redesignating
subsection (f) as subsection (g) and by inserting after
subsection (e) the following new subsection:
``(f) Reporting Requirement.--Except as otherwise provided
by the Secretary, each United States person who is a
shareholder of a passive foreign investment company shall
file an annual report containing such information as the
Secretary may require.''.
(b) Conforming Amendment.--Subsection (e) of section 1291
is amended by striking ``, (d), and (f)'' and inserting ``and
(d)''.
(c) Effective Date.--The amendments made by this section
take effect on the date of the enactment of this Act.
[[Page H1135]]
SEC. 522. SECRETARY PERMITTED TO REQUIRE FINANCIAL
INSTITUTIONS TO FILE CERTAIN RETURNS RELATED TO
WITHHOLDING ON FOREIGN TRANSFERS
ELECTRONICALLY.
(a) In General.--Subsection (e) of section 6011 is amended
by adding at the end the following new paragraph:
``(4) Special rule for returns filed by financial
institutions with respect to withholding on foreign
transfers.--The numerical limitation under paragraph (2)(A)
shall not apply to any return filed by a financial
institution (as defined in section 1471(d)(5)) with respect
to tax for which such institution is made liable under
section 1461 or 1474(a).''.
(b) Conforming Amendment.--Subsection (c) of section 6724
is amended by inserting ``or with respect to a return
described in section 6011(e)(4)'' before the end period.
(c) Effective Date.--The amendment made by this section
shall apply to returns the due date for which (determined
without regard to extensions) is after the date of the
enactment of this Act.
PART IV--PROVISIONS RELATED TO FOREIGN TRUSTS
SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS WHICH
ARE TREATED AS HAVING A UNITED STATES
BENEFICIARY.
(a) In General.--Paragraph (1) of section 679(c) is amended
by adding at the end the following:
``For purposes of subparagraph (A), an amount shall be
treated as accumulated for the benefit of a United States
person even if the United States person's interest in the
trust is contingent on a future event.''.
(b) Clarification Regarding Discretion To Identify
Beneficiaries.--Subsection (c) of section 679 is amended by
adding at the end the following new paragraph:
``(4) Special rule in case of discretion to identify
beneficiaries.--For purposes of paragraph (1)(A), if any
person has the discretion (by authority given in the trust
agreement, by power of appointment, or otherwise) of making a
distribution from the trust to, or for the benefit of, any
person, such trust shall be treated as having a beneficiary
who is a United States person unless--
``(A) the terms of the trust specifically identify the
class of persons to whom such distributions may be made, and
``(B) none of those persons are United States persons
during the taxable year.''.
(c) Clarification That Certain Agreements and
Understandings Are Terms of the Trust.--Subsection (c) of
section 679, as amended by subsection (b), is amended by
adding at the end the following new paragraph:
``(5) Certain agreements and understandings treated as
terms of the trust.--For purposes of paragraph (1)(A), if any
United States person who directly or indirectly transfers
property to the trust is directly or indirectly involved in
any agreement or understanding (whether written, oral, or
otherwise) that may result in the income or corpus of the
trust being paid or accumulated to or for the benefit of a
United States person, such agreement or understanding shall
be treated as a term of the trust.''.
SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES
BENEFICIARY.
(a) In General.--Section 679 is amended by redesignating
subsection (d) as subsection (e) and inserting after
subsection (c) the following new subsection:
``(d) Presumption That Foreign Trust Has United States
Beneficiary.--If a United States person directly or
indirectly transfers property to a foreign trust (other than
a trust described in section 6048(a)(3)(B)(ii)), the
Secretary may treat such trust as having a United States
beneficiary for purposes of applying this section to such
transfer unless such person--
``(1) submits such information to the Secretary as the
Secretary may require with respect to such transfer, and
``(2) demonstrates to the satisfaction of the Secretary
that such trust satisfies the requirements of subparagraphs
(A) and (B) of subsection (c)(1).''.
(b) Effective Date.--The amendments made by this section
shall apply to transfers of property after the date of the
enactment of this Act.
SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY.
(a) In General.--Paragraph (1) of section 643(i) is
amended--
(1) by striking ``directly or indirectly to'' and inserting
``(or permits the use of any other trust property) directly
or indirectly to or by'', and
(2) by inserting ``(or the fair market value of the use of
such property)'' after ``the amount of such loan''.
(b) Exception for Compensated Use.--Paragraph (2) of
section 643(i) is amended by adding at the end the following
new subparagraph:
``(E) Exception for compensated use of property.--In the
case of the use of any trust property other than a loan of
cash or marketable securities, paragraph (1) shall not apply
to the extent that the trust is paid the fair market value of
such use within a reasonable period of time of such use.''.
(c) Application to Grantor Trusts.--Subsection (c) of
section 679, as amended by this Act, is amended by adding at
the end the following new paragraph:
``(6) Uncompensated use of trust property treated as a
payment.--For purposes of this subsection, a loan of cash or
marketable securities (or the use of any other trust
property) directly or indirectly to or by any United States
person (whether or not a beneficiary under the terms of the
trust) shall be treated as paid or accumulated for the
benefit of a United States person. The preceding sentence
shall not apply to the extent that the United States person
repays the loan at a market rate of interest (or pays the
fair market value of the use of such property) within a
reasonable period of time.''.
(d) Conforming Amendments.--Paragraph (3) of section 643(i)
is amended--
(1) by inserting ``(or use of property)'' after ``If any
loan'',
(2) by inserting ``or the return of such property'' before
``shall be disregarded'', and
(3) by striking ``regarding loan principal'' in the heading
thereof.
(e) Effective Date.--The amendments made by this section
shall apply to loans made, and uses of property, after the
date of the enactment of this Act.
SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF
FOREIGN TRUSTS.
(a) In General.--Paragraph (1) of section 6048(b) is
amended by inserting ``shall submit such information as the
Secretary may prescribe with respect to such trust for such
year and'' before ``shall be responsible to ensure''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT
ON CERTAIN FOREIGN TRUSTS.
(a) In General.--Subsection (a) of section 6677 is
amended--
(1) by inserting ``the greater of $10,000 or'' before ``35
percent'', and
(2) by striking the last sentence and inserting the
following: ``At such time as the gross reportable amount with
respect to any failure can be determined by the Secretary,
any subsequent penalty imposed under this subsection with
respect to such failure shall be reduced as necessary to
assure that the aggregate amount of such penalties do not
exceed the gross reportable amount (and to the extent that
such aggregate amount already exceeds the gross reportable
amount the Secretary shall refund such excess to the
taxpayer).''
(b) Effective Date.--The amendments made by this section
shall apply to notices and returns required to be filed after
December 31, 2009.
PART V--SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS RECEIVED
BY FOREIGN PERSONS TREATED AS DIVIDENDS
SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT
PAYMENTS RECEIVED BY FOREIGN PERSONS TREATED AS
DIVIDENDS.
(a) In General.--Section 871 is amended by redesignating
subsection (l) as subsection (m) and by inserting after
subsection (k) the following new subsection:
``(l) Treatment of Dividend Equivalent Payments.--
``(1) In general.--For purposes of subsection (a), sections
881 and 4948(a), and chapters 3 and 4, a dividend equivalent
shall be treated as a dividend from sources within the United
States.
``(2) Dividend equivalent.--For purposes of this
subsection, the term `dividend equivalent' means--
``(A) any substitute dividend made pursuant to a securities
lending or a sale-repurchase transaction that (directly or
indirectly) is contingent upon, or determined by reference
to, the payment of a dividend from sources within the United
States,
``(B) any payment made pursuant to a specified notional
principal contract that (directly or indirectly) is
contingent upon, or determined by reference to, the payment
of a dividend from sources within the United States, and
``(C) any other payment determined by the Secretary to be
substantially similar to a payment described in subparagraph
(A) or (B).
``(3) Specified notional principal contract.--For purposes
of this subsection, the term `specified notional principal
contract' means--
``(A) any notional principal contract if--
``(i) in connection with entering into such contract, any
long party to the contract transfers the underlying security
to any short party to the contract,
``(ii) in connection with the termination of such contract,
any short party to the contract transfers the underlying
security to any long party to the contract,
``(iii) the underlying security is not readily tradable on
an established securities market,
``(iv) in connection with entering into such contract, the
underlying security is posted as collateral by any short
party to the contract with any long party to the contract, or
``(v) such contract is identified by the Secretary as a
specified notional principal contract,
``(B) in the case of payments made after the date which is
2 years after the date of the enactment of this subsection,
any notional principal contract unless the Secretary
determines that such contract is of a type which does not
have the potential for tax avoidance.
``(4) Definitions.--For purposes of paragraph (3)(A)--
``(A) Long party.--The term `long party' means, with
respect to any underlying security of any notional principal
contract, any party to the contract which is entitled to
receive any payment pursuant to such contract which is
contingent upon, or determined by reference to, the payment
of a dividend from sources within the United States with
respect to such underlying security.
``(B) Short party.--The term `short party' means, with
respect to any underlying security of any notional principal
contract, any party to the contract which is not a long party
with respect to such underlying security.
``(C) Underlying security.--The term `underlying security'
means, with respect to any notional principal contract, the
security with
[[Page H1136]]
respect to which the dividend referred to in paragraph (2)(B)
is paid. For purposes of this paragraph, any index or fixed
basket of securities shall be treated as a single security.
``(5) Payments determined on gross basis.--For purposes of
this subsection, the term `payment' includes any gross amount
which is used in computing any net amount which is
transferred to or from the taxpayer.
``(6) Prevention of over-withholding.--In the case of any
chain of dividend equivalents one or more of which is subject
to tax under subsection (a) or section 881, the Secretary may
reduce such tax, but only to the extent that the taxpayer can
establish that such tax has been paid with respect to another
dividend equivalent in such chain, or is not otherwise due,
or as the Secretary determines is appropriate to address the
role of financial intermediaries in such chain. For purposes
of this paragraph, a dividend shall be treated as a dividend
equivalent.
``(7) Coordination with chapters 3 and 4.--For purposes of
chapters 3 and 4, each person that is a party to any contract
or other arrangement that provides for the payment of a
dividend equivalent shall be treated as having control of
such payment.''.
(b) Effective Date.--The amendments made by this section
shall apply to payments made on or after the date that is 180
days after the date of the enactment of this Act.
Subtitle B--Delay in Application of Worldwide Allocation of Interest
SEC. 551. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF
INTEREST.
(a) In General.--Paragraphs (5)(D) and (6) of section
864(f) are each amended by striking ``December 31, 2017'' and
inserting ``December 31, 2019''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
Motion Offered by Mr. Etheridge
Mr. ETHERIDGE. I have a motion at the desk.
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
Mr. Etheridge moves that the House concur in the Senate
amendment to the House amendment to the Senate amendment with
an amendment.
The text of the amendment is as follows:
Concur in the Senate amendment (hereinafter referred to as
the ``pending Senate amendment'') to the House amendment to
the Senate amendment to H.R. 2847 with the following
amendment:
(1) In section 101 of the matter proposed to be inserted by
the pending Senate amendment--
(A) In section 3111(d) of the Internal Revenue Code of
1986, as proposed to be added by subsection (a) of such
section 101, add at the end the following new paragraph:
``(5) Special rule for first calendar quarter of 2010.--
``(A) Nonapplication of exemption during first quarter.--
Paragraph (1) shall not apply with respect to wages paid
during the first calendar quarter of 2010.
``(B) Crediting of first quarter exemption during second
quarter.--The amount by which the tax imposed under
subsection (a) would (but for subparagraph (A)) have been
reduced with respect to wages paid by a qualified employer
during the first calendar quarter of 2010 shall be treated as
a payment against the tax imposed under subsection (a) with
respect to the qualified employer for the second calendar
quarter of 2010 which is made on the date that such tax is
due.''.
(B) Strike subsection (d) of such section 101 and insert
the following new subsections:
(d) Application to Railroad Retirement Taxes.--
(1) In general.--Section 3221 of the Internal Revenue Code
of 1986 is amended by redesignating subsection (c) as
subsection (d) and by inserting after subsection (b) the
following new subsection:
``(c) Special Rate for Certain Individuals Hired in 2010.--
``(1) In general.--In the case of compensation paid by a
qualified employer during the period beginning on the day
after the date of the enactment of this subsection and ending
on December 31, 2010, with respect to having a qualified
individual in the employer's employ for services rendered to
such qualified employer, the applicable percentage under
subsection (a) shall be equal to the rate of tax in effect
under section 3111(b) for the calendar year.
``(2) Qualified employer.--The term `qualified employer'
means any employer other than the United States, any State,
or any political subdivision thereof, or any instrumentality
of the foregoing.
``(3) Qualified individual.--For purposes of this
subsection, the term `qualified individual' means any
individual who--
``(A) begins employment with a qualified employer after
February 3, 2010, and before January 1, 2011,
``(B) certifies by signed affidavit, under penalties of
perjury, that such individual has not been employed for more
than 40 hours during the 60-day period ending on the date
such individual begins such employment,
``(C) is not employed by the qualified employer to replace
another employee of such employer unless such other employee
separated from employment voluntarily or for cause, and
``(D) is not an individual described in section 51(i)(1)
(applied by substituting `qualified employer' for `taxpayer'
each place it appears).
``(4) Election.--A qualified employer may elect to have
this subsection not apply. Such election shall be made in
such manner as the Secretary may require.
``(5) Special rule for first calendar quarter of 2010.--
``(A) Nonapplication of exemption during first quarter.--
Paragraph (1) shall not apply with respect to compensation
paid during the first calendar quarter of 2010.
``(B) Crediting of first quarter exemption during second
quarter.--The amount by which the tax imposed under
subsection (a) would (but for subparagraph (A)) have been
reduced with respect to compensation paid by a qualified
employer during the first calendar quarter of 2010 shall be
treated as a payment against the tax imposed under subsection
(a) with respect to the qualified employer for the second
calendar quarter of 2010 which is made on the date that such
tax is due.''.
(2) Transfers to social security equivalent benefit
account.--There are hereby appropriated to the Social
Security Equivalent Benefit Account established under section
15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C.
231n-1(a)) amounts equal to the reduction in revenues to the
Treasury by reason of the amendments made by paragraph (1).
Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such
manner as to replicate to the extent possible the transfers
which would have occurred to such Account had such amendments
not been enacted.
(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this subsection shall apply to wages paid
after the date of the enactment of this Act.
(2) Railroad retirement taxes.--The amendments made by
subsection (d) shall apply to compensation paid after the
date of the enactment of this Act.
(2) In section 102 of the matter proposed to be inserted by
the pending Senate amendment--
(A) Strike subsection (a) of such section 102 and insert
the following new subsection:
(a) In General.--In the case of any taxable year ending
after the date of the enactment of this Act, the current year
business credit determined under section 38(b) of the
Internal Revenue Code of 1986 for such taxable year shall be
increased, with respect to each retained worker with respect
to which subsection (b)(2) is first satisfied during such
taxable year, by the lesser of--
(1) $1,000, or
(2) 6.2 percent of the wages (as defined in section
3401(a)) paid by the taxpayer to such retained worker during
the 52 consecutive week period referred to in subsection
(b)(2).
(B) In subsection (b) of such section 102, insert ``or
section 3221(c)(3)'' after ``section 3111(d)(3)''.
(C) In subsection (b)(3) of such section 102, insert ``(as
defined in section 3401(a))'' after ``wages'' the first place
it appears therein.
(D) At the end of such section 102, add the following new
subsection:
(d) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the Treasury
shall pay to each possession of the United States with a
mirror code tax system amounts equal to the loss to that
possession by reason of the application of this section
(other than this subsection). Such amounts shall be
determined by the Secretary of the Treasury based on
information provided by the government of the respective
possession.
(B) Other possessions.--The Secretary of the Treasury shall
pay to each possession of the United States which does not
have a mirror code tax system amounts estimated by the
Secretary of the Treasury as being equal to the aggregate
benefits that would have been provided to residents of such
possession by reason of the application of this section
(other than this subsection) if a mirror code tax system had
been in effect in such possession. The preceding sentence
shall not apply with respect to any possession of the United
States unless such possession has a plan, which has been
approved by the Secretary of the Treasury, under which such
possession will promptly distribute such payments to the
residents of such possession.
(2) Coordination with credit allowed against united states
income taxes.--No increase in the credit determined under
section 38(b) of the Internal Revenue Code of 1986 against
United States income taxes for any taxable year determined
under subsection (a) shall be taken into account with respect
to any person--
(A) to whom a credit is allowed against taxes imposed by
the possession by reason of this section for such taxable
year, or
(B) who is eligible for a payment under a plan described in
paragraph (1)(B) with respect to such taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
[[Page H1137]]
States as if such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, rules similar to
the rules of section 1001(b)(3)(C) of the American Recovery
and Reinvestment Tax Act of 2009 shall apply.
(3) In section 301 of the matter proposed to be inserted by
the pending Senate amendment--
(A) In section 6431(f)(1) of the Internal Revenue Code of
1986, as proposed to be added by subsection (a) of such
section 301, strike subparagraph (C) and insert the following
new subparagraph:
``(C) the amount of the payment determined under subsection
(b) with respect to any interest payment due under such bond
shall be equal to the lesser of--
``(i) the amount of interest payable under such bond on
such date, or
``(ii) the amount of interest which would have been payable
under such bond on such date if such interest were determined
at the applicable credit rate determined under section
54A(b)(3),''.
(B) In section 6431(f) of the Internal Revenue Code of
1986, as proposed to be added by subsection (a) of such
section 301, strike paragraph (2) and insert the following
new paragraphs:
``(2) Special rule for new clean renewable energy bonds and
qualified energy conservation bonds.--In the case of any
specified tax credit bond described in clause (i) or (ii) of
paragraph (3)(A), the amount determined under paragraph
(1)(C)(ii) shall be 70 percent of the amount so determined
without regard to this paragraph and sections 54C(b) and
54D(b).
``(3) Specified tax credit bond.--For purposes of this
subsection, the term ``specified tax credit bond'' means any
qualified tax credit bond (as defined in section 54A(d)) if--
``(A) such bond is--
``(i) a new clean renewable energy bond (as defined in
section 54C),
``(ii) a qualified energy conservation bond (as defined in
section 54D),
``(iii) a qualified zone academy bond (as defined in
section 54E), or
``(iv) a qualified school construction bond (as defined in
section 54F), and
``(B) the issuer of such bond makes an irrevocable election
to have this subsection apply.''.
(4) At the end title IV of the matter proposed to be
inserted by the pending Senate amendment, add the following:
Subtitle E--Disadvantaged Business Enterprises
SEC. 451. DISADVANTAGED BUSINESS ENTERPRISES.
(a) Definitions.--In this section, the following
definitions apply:
(1) Small business concern.-- The term ``small business
concern'' has the meaning that term has under section 3 of
the Small Business Act (15 U.S.C. 632), except that the term
shall not include any concern or group of concerns controlled
by the same socially and economically disadvantaged
individual or individuals which has average annual gross
receipts over the preceding 3 fiscal years in excess of
$22,410,000, as adjusted annually by the Secretary of
Transportation for inflation.
(2) Socially and economically disadvantaged individuals.--
The term ``socially and economically disadvantaged
individuals'' has the meaning that term has under section
8(d) of the Small Business Act (15 U.S.C. 637(d)) and
relevant subcontracting regulations issued pursuant to that
Act, except that women shall be presumed to be socially and
economically disadvantaged individuals for purposes of this
section.
(b) General Rule.--Except to the extent that the Secretary
of Transportation determines otherwise, not less than 10
percent of the amounts made available for any program under
titles I, III, and V of SAFETEA-LU (Public Law 109-59),
subtitles A and C of this title, and section 403 of title 23,
United States Code, shall be expended through small business
concerns owned and controlled by socially and economically
disadvantaged individuals.
(c) Annual Listing of Disadvantaged Business Enterprises.--
Each State shall annually--
(1) survey and compile a list of the small business
concerns referred to in subsection (a) and the location of
the concerns in the State; and
(2) notify the Secretary of Transportation, in writing, of
the percentage of the concerns that are controlled by women,
by socially and economically disadvantaged individuals (other
than women), and by individuals who are women and are
otherwise socially and economically disadvantaged
individuals.
(d) Uniform Certification.--The Secretary of Transportation
shall establish minimum uniform criteria for State
governments to use in certifying whether a concern qualifies
for purposes of this section. The minimum uniform criteria
shall include, but not be limited to, on-site visits,
personal interviews, licenses, analysis of stock ownership,
listing of equipment, analysis of bonding capacity, listing
of work completed, resume of principal owners, financial
capacity, and type of work preferred.
(e) Compliance With Court Orders.--Nothing in this section
limits the eligibility of an entity or person to receive
funds made available under titles I, III, and V of SAFETEA-LU
(Public Law 109-59), subtitles A and C of this title, and
section 403 of title 23, United States Code, if the entity or
person is prevented, in whole or in part, from complying with
subsection (b) because a Federal court issues a final order
in which the court finds that the requirement of subsection
(b), or the program established under subsection (b), is
unconstitutional.
(5) In section 551(a) of the matter proposed to be inserted
by the pending Senate amendment, strike ``December 31, 2019''
and insert ``December 31, 2020''.
(6) At the end of title V of the matter proposed to be
inserted by the pending Senate amendment, add the following
new subtitle:
Subtitle C--Budgetary Provisions
SEC. 561. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
Notwithstanding section 6655 of the Internal Revenue Code
of 1986, in the case of a corporation with assets of not less
than $1,000,000,000 (determined as of the end of the
preceding taxable year)--
(1) the percentage under paragraph (1) of section 202(b) of
the Corporate Estimated Tax Shift Act of 2009 in effect on
the date of the enactment of this Act is increased by 23
percentage points,
(2) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or
September of 2015 shall be 121.5 percent of such amount,
(3) the amount of any required installment of corporate
estimated tax which is otherwise due in July, August, or
September of 2019 shall be 106.5 percent of such amount, and
(4) the amount of the next required installment after an
installment referred to in paragraph (2) or (3) shall be
appropriately reduced to reflect the amount of the increase
by reason of such paragraph.
SEC. 562. PAYGO COMPLIANCE.
The budgetary effects of this Act, for purposes of
complying with the Statutory Pay-As-You-Go-Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
jointly submitted for printing in the Congressional Record by
the Chairman of the House and Senate Budget Committees,
provided that such statement has been submitted prior to the
vote on passage in the House acting first on this conference
report or amendments between the Houses.
The SPEAKER pro tempore. Pursuant to House Resolution 1137, the
motion shall be debatable for 1 hour, equally divided and controlled by
the chair and the ranking minority member of the Committee on Ways and
Means or their designees.
The gentleman from North Carolina (Mr. Etheridge) and the gentleman
from California (Mr. Nunes) each will control 30 minutes.
The Chair recognizes the gentleman from North Carolina.
Mr. ETHERIDGE. Madam Speaker, I yield to the gentlewoman from New
York (Mrs. Maloney) for the purpose of making a unanimous consent
request.
(Mrs. MALONEY asked and was given permission to revise and extend her
remarks.)
Mrs. MALONEY. Madam Speaker, I rise in strong support of H.R. 2847,
include my statement for the Record, and also submit to the Record
excerpts from recent joint economic hearings underscoring the need for
targeted, timely action to boost employment.
Madam Speaker, at recent hearings of the Joint Economic Committee,
which I chair, economists, forecasters, and business leaders have laid
out the need for targeted, immediate action to spark job creation.
H.R. 2847--Hiring Incentives to Restore Employment Act--delivers
timely incentives for businesses to hire, including a temporary tax
break for businesses that hire workers who have been unemployed for at
least 60 days.
CBO Director Douglas Elmendorf recently told the JEC, by bringing
down the cost of adding new employees, employer tax credits like this
one will spur new hiring and strengthen our economy.
In January, I sent a survey to the CEOs of Fortune 100 companies and
leading small businesses seeking their ideas on job creation.
The ideas I got back were varied. But there was broad agreement that
Congress needs to act now.
I urge my colleagues to support the HIRE Act to create jobs and put
Americans back to work.
Finally, I would like to submit for the Record excerpts from recent
JEC hearings underscoring the need for targeted, timely action to boost
employment.
Manpower Chairman and CEO Jeffrey Joerres, Joint Economic Committee
Hearing, February 26, 2010
Manpower has been in the business of jobs and job training
for over 60 years. We've seen the economic ups and downs.
It's clear that this recession is by far the most severe in
this downturn. It's been a privilege [to hear] some of the
thoughts that we get and feel from on the ground, and those
actions that I've presented this committee. We consider that
partnerships between government and industry is critical for
this to move very quickly.
[[Page H1138]]
Congressional Budget Office Director Douglas Elmendorf, Joint Economic
Committee Hearing, February 23, 2010
What we have--what we have said in our initial report, and
in our letter to you, and you can see in the--in those bars,
is that in our judgment policies that cut employers' payroll
taxes are more cost effective in terms of stimulating
employment over the next couple of years, than many of the
other policies that we've considered.
And our judgment--what firms will do with a cut of that
sort is partly to take advantage of their lower cost by
cutting the prices of their goods, and thus trying to
stimulate demand. And it's the--really the shortfall in
demand that is the crux of the recession, or the crux of the
problem in hiring. Additionally these tax credits provide an
incentive to use more labor by lowering the cost of labor in
particular.
Dr. Richard Berner, Co-Head of Global Economics and Chief U.S.
Economist, Morgan Stanley, Joint Economic Committee Hearing, February
26, 2010
A refundable payroll tax credit, perhaps for firms that
increase their payroll, would be among the most effective
short-term remedies. CBO estimates that a well-designed
credit could boost employment by about 9 years of full-time
equivalent employment per million dollars of budgetary cost.
General Leave
Mr. ETHERIDGE. Madam Speaker, I ask that all Members may have 5
legislative days in which to revise and extend their remarks and insert
extraneous materials into the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from North Carolina?
There was no objection.
Mr. ETHERIDGE. Madam Speaker, I am pleased to rise in support of H.R.
2847, the Hiring Incentives to Restore Employment Act. The HIRE Act is
about our three most important priorities in this Congress: jobs, jobs,
and jobs. The HIRE Act builds on legislation that the Senate passed
last week, including direct hiring tax incentives for business, support
for Recovery Act bond incentives that put local dollars to work
creating jobs all across this country, and transportation funding that
improves our communities, builds infrastructure, and supports local
businesses. All told, more than 1 million jobs will be created by this
legislation.
This bill really is help for small businesses on Main Street and
millions of Americans who are ready to see the benefits of a growing
economy. Across this great country, our economy is showing signs of
recovery. But consumers need more confidence, and employers need
incentives to hire workers. Today, we give business direct incentives
to hire new workers. I am pleased that the HIRE Act accomplishes this
in a responsible manner.
Not only does it fully pay for all of the important investments in
job creation, but it actually contributes to reduce our deficit by
nearly $1 billion. Let me repeat that again, reduce the deficit by $1
billion. The bill is a good step to rebuild our job market, but we
still have a ways to go. I expect that this will just be a downpayment
on our continuing work to create jobs and restore our economy.
This bill includes, as you have already heard, about $77.15 billion
of investment in surface transportation projects. It also reauthorizes
Federal highway public transit initiatives and highway safety funding
that is needed all across America. When extensions were blocked last
week in the Senate, transportation projects across this country were
held up and almost 2,000 employees were furloughed. Today, we are going
to take action not only to make sure that doesn't happen again, but
that we create jobs by investing in local priorities across this
country, not only transportation projects that need to be moving in our
communities, building on infrastructure and providing jobs for America,
but also the HIRE Act that creates tax credits for local businesses.
Representative Steve Kagen and myself introduced a bill back in
January for tax credits to hire new employees. This bill builds on
that. It is a little different than what we had, but it makes a
difference. Despite some economic growth in recent months, the
unemployment rate around the country remains high. Too many Americans
are unemployed. In my State, it is above the national average, almost
11.2 percent. Just this past week, I visited an employment office where
people were saying all we need is a hand up, not a handout; give us an
opportunity to go to work.
In addition to that, we are providing funds for making sure that our
qualified school construction bonds in the Recovery Act that we passed
last year will work. This bill really is about jobs. I can say to you
when we are talking about jobs, we are talking about education. I
happen to believe education is the one thing that levels the playing
field for everyone. Today we are going to have the opportunity to put
our stamp on and vote for a piece of legislation that will provide good
places for teachers to teach and children to learn.
Madam Speaker, I reserve the balance of my time.
Mr. NUNES. Madam Speaker, I yield myself such time as I may consume.
(Mr. NUNES asked and was given permission to revise and extend his
remarks.)
Mr. NUNES. Madam Speaker, if at first you don't succeed, try, try
again. That seems to be the Democrats' creed and motto.
There wouldn't be any need for today's bill if the failed trillion-
dollar stimulus package last year actually worked. A year ago the
Democrats promised the American people their so-called stimulus would
keep unemployment at 8 percent, but a year later we are near 10
percent.
Put simply, you cannot create jobs by dumping a trillion dollars into
Federal agencies. The administration claims that $1.5 billion in
stimulus moneys saved or created 1,664 jobs in California's San Joaquin
Valley where I live. Even if one charitably assumes the accuracy of
these numbers, the Federal Government has spent a whopping $900,000 to
save or create one job in the San Joaquin Valley. Despite spending
$900,000 per job, there are still communities in the valley that suffer
from 20 to 40 percent unemployment. In fact, in the wake of the
stimulus, we saw 3 million additional Americans lose their jobs rather
than the 3.7 million jobs that are now being promised by the Obama
administration. Sadly, a record 16 million Americans are now unemployed
because the stimulus promises were empty and unaffordable.
{time} 1400
Is it any wonder why the American people continue to ask, Where are
the jobs?
It appears that the stimulus was not very stimulating outside of
Washington. So here we are back again with yet another multibillion-
dollar plan slapped together by the Democrats that will probably, once
again, fail.
Madam Speaker, the Soviet Union experience, sadly, taught us that
just because you're going to grow 1 billion bushels of potatoes does
not mean that there will be potatoes on the shelves. Similarly, just
because the Democrats have chosen to message this as a ``jobs'' bill
does not mean that it will actually create a job.
The centerpiece of the Democrats' new bill is a payroll tax
exemption, a hiring credit for employers to bring on new workers. While
I give the Democrats credit for acknowledging that tax cuts are
preferable to spending increases, the sad reality is that this is a
political charade and it won't work. How do we know? Because the same
idea didn't work when Jimmy Carter tried it in the late 1970s.
Numerous studies by noted economists from all across the political
spectrum have confirmed that these temporary hiring incentives will
have little, if any, positive effect on jobs. It is beyond ridiculous
to claim that you can have a meaningful impact upon a $14 trillion
economy by spending $13 billion on gimmick tax cuts. Let's think about
it: If you're an employer, are you really going to hire someone for a
permanent position because you get a modest, temporary tax incentive?
We could have improved this bill had the Ways and Means Committee
actually held a hearing and a markup, but once again we see significant
tax legislation taken directly to the floor without a committee
hearing, without a committee markup, and without an opportunity to even
offer amendments.
I understand that there was a change in the chairmanship on the Ways
and Means Committee yesterday, but, in fact, this bill on the floor
today proves that it's a political sham. It is far from serious to
enact sound policy to improve our economy when you can't even decide
who the chairman of the Ways and Means Committee is going to be.
You don't have to read Adam Smith to know that markets cannot thrive
[[Page H1139]]
with uncertainty. What employers really need from Washington is the
assurance that the Democrats' massive Big Government tax-and-spend
agenda isn't going to drive them out of business.
Employers face uncertainty about the Democrats' massive takeover of
the health care system, about the new $1 trillion cap-and-trade energy
tax. They face uncertainty with environmental regulations like those
that have driven 84 saw mills from California since 1989, and they face
uncertainty about the largest tax increase in American history that
will be enacted this year.
Madam Speaker, employers don't need more Federal spending to create
good private sector jobs; they already know how to create good jobs if
Washington would just get out of the way.
Madam Speaker, I reserve the balance of my time.
Mr. ETHERIDGE. Madam Speaker, I would remind the gentleman that I was
a small businessman in the 1970s when this tax credit was in before.
Not only did we use it and create jobs; we had tremendous growth in
this country.
I talked to two chambers of commerce in the last month. They are
tickled to death that somebody is willing to help them instead of doing
the very thing the Senate did last week and hold everything up. It's
time we moved on and got something done.
I yield 3 minutes to the gentleman, Mr. Oberstar, who knows something
about infrastructure.
Mr. OBERSTAR. I thank the gentleman for his time and will use this
brief moment to be very specific.
Under the programs in the stimulus, under the jurisdiction of our
Committee on Transportation and Infrastructure, we can account for
1,091,005 jobs in the past year, 1 year from date of enactment. We have
this documented in 14 consecutive monthly hearings on progress made by
State DOTs, transit agencies, metropolitan planning organizations and
State Revolving Loan Fund organizations, as well as the other portions
of our stimulus for which we have documented the funding investments
that have created jobs. These are real jobs, building trades,
associated general contractors who are putting people to work, putting
their equipment to work on job sites where they were shut down the
previous year.
With those jobs, those workers are paying $353 million in Federal
taxes, avoiding $279 million in unemployment compensation checks
because they're getting a payroll check instead of an unemployment
compensation check. We have 25,000 direct, on-project, full-time
equivalent jobs in the Clean Water Revolving Loan Fund program, and
paved 24,000 lane miles of highway and restored or replaced 1,200
bridges. That highway mileage is equivalent to half of the interstate
highway systems that took 50 years to build. This was done in a year.
This extension of funding for the surface transportation program will
provide $77 billion to continue SAFETEA-LU for the next 15 months for
the 15-month period. That is this fiscal year and 3 months beyond. It
is a $21 billion increase over the funding levels of the continuing
resolution.
It restores the $8.7 billion rescission that occurred September 30
that everyone was wringing their hands about, but required by the Bush
administration and consented to by House and Senate Republicans in the
last meeting of the House-Senate conference on SAFETEA-LU. That money
is restored. We said that we'd do it. It's done.
The bill also restores $19.5 billion of interest foregone since 1998
when we had to agree to a concession insisted upon by then-Speaker
Gingrich and then the Clinton administration Treasury Department to
forego interest on the trust fund. That interest is restored,
repatriated to the trust fund and in the future will collect interest
like all other trust funds.
The SPEAKER pro tempore. The time of gentleman has expired.
Mr. ETHERIDGE. I yield the gentleman another 30 seconds.
Mr. OBERSTAR. But there are two issues in this bill that I was very
concerned about. The Senate passed a bill that had a funding formula
that was very, very discriminatory. Four States benefited with 58
percent of the funding and 22 States got nothing. Senator Reid has
consented in a letter he sent to me and to Speaker Pelosi to restore
the House funding formula that we proposed in a subsequent bill that
will pass the Senate this month to distribute those additional highway
formula funds as we proposed in a formula distribution.
The SPEAKER pro tempore. The time of the gentleman has again expired.
Mr. ETHERIDGE. Madam Speaker, I yield another 15 seconds to the
gentleman.
Mr. OBERSTAR. The letter to Senator Reid from Senator Boxer, the
chair of the Senate Public Works Committee, and Senator Murray on the
Appropriations Committee, that letter will be available at this desk to
show that we will restore the funding formula the way it is intended in
SAFETEA-LU.
Mr. NUNES. Madam Speaker, I yield 2 minutes to the gentleman from
California, my good friend (Mr. Lewis).
(Mr. LEWIS of California asked and was given permission to revise and
extend his remarks.)
Mr. LEWIS of California. Madam Speaker, I rise to speak on the
highway provisions of H.R. 2847. I think it's important that my
colleagues understand that the bill before us isn't a clean extension
of SAFETEA-LU highway and transit programs, but includes new policies
that would continue the program on the current road to ruin.
I support a strong surface transportation bill; I worked with Mr.
Oberstar for years in connection with that. I know our constituents
depend upon this program to keep our roads and transit systems open and
safe and to help keep economic investments coming to our communities.
But we also know that the highway trust fund is badly broken; it has
been broken for some time. The trust fund has been in a nosedive for
years due to overspending, but nothing was ever done about that.
Mr. ETHERIDGE. Madam Speaker, I yield 2 minutes to the gentlewoman
from Nevada (Ms. Berkley).
Ms. BERKLEY. Madam Speaker, I rise in support of this jobs bill.
Nevada is experiencing unprecedented economic challenges and an
unemployment rate of well over 13 percent. It is essential that this
Congress pursue policies and programs that will spur long-term economic
growth and create the jobs that the people of Las Vegas and across the
United States so desperately need. This legislation is a positive step
in that direction.
Incentives such as the payroll tax holiday, a tax credit for
retaining workers, and the extension of enhanced expensing for small
businesses will all help create conditions for increased hiring and
retention of new employees.
In addition, the extension of funding for highways and surface
transportation projects will provide employment both today and in the
future by continuing the infrastructure investments that are critical
to long-term economic growth.
And, finally, the direct payment option for certain tax credit bond
programs will enable the Clark County School District, which I
represent, to increase school construction and continue to fund
essential projects.
Nevada, and the Nation, needs the jobs and other support provided in
this bill. I urge my colleagues to vote ``yes,'' a resounding ``yes''
on this piece of legislation.
Mr. NUNES. Madam Speaker, at this time I would like to yield 2
minutes to the gentleman from Texas (Mr. Sam Johnson).
Mr. SAM JOHNSON of Texas. I thank the ranking member for allowing me
to speak.
On behalf of the American taxpayer, I am deeply disappointed that the
Democrat majority is not allowing me to offer a commonsense amendment
to protect the American taxpayer.
The amendment was simple: It would require businesses seeking to use
a hiring tax incentive in the bill before us to check the legal status
of potential new hires through the E-Verify program--you have seen that
in the papers lately, it hasn't been used properly--a voluntary
employment verification system. While not perfect by any means, E-
Verify is certainly far better than the current paper-based
verification method.
If the majority insists on moving forward with this flawed bill that
in the end I believe will do little to create
[[Page H1140]]
new jobs, we must ensure that this hiring tax break isn't used to hire
those here illegally. The American taxpayer and the unemployed American
worker deserve nothing less. This is the right thing to do.
Now more than ever in these tough economic times we need to ensure
that the American worker, and not illegals, is our first priority.
Mr. ETHERIDGE. Madam Speaker, I yield 2 minutes to the gentleman from
Oregon (Mr. Blumenauer).
Mr. BLUMENAUER. Madam Speaker, I appreciate the courtesy of my
friend, the gentleman from North Carolina, in permitting me to speak on
this.
This piece of legislation is, sadly, a product of our time with a
breakdown with our friends on the other side of the Capitol seemingly
unable to proceed with regular order. We saw, sadly, this last week one
person bring the transportation funding in this country to a halt, hold
up unemployment benefits affecting literally hundreds of thousands of
Americans in the most negative way, and that is passing for regular
order over there. This bill is an opportunity for us to break that
impasse.
It is significant in three ways: first of all, there were five
Republicans who were willing to join with the majority to be able to
move things forward. In some sense I think we ought to try and reward
that sense of at least breaking the tyranny of the 60-vote majority
requirement.
Second, the real job generator in this legislation is to be found in
extending the transportation funding through the end of the year. Madam
Speaker, the most effective job-generating legislation that we could
put forward at a time of 40 percent unemployment in many metropolitan
areas in the construction trade is to put Americans to work rebuilding
and renewing America.
This legislation provides $77 billion towards that objective, fully
funding the first 6 months of this year and extending it through the
full 15-month cycle through the end of this calendar year. This will
give certainty to the men and women who are dealing with our
transportation systems, roads, bridges, transit, the whole range. It
will save hundreds of thousands of jobs. It will incite economic
activity. And maybe, just maybe, it will be a signal that we bring
together a larger vision of rebuilding and renewing America and putting
our fellow citizens back to work.
Mr. NUNES. Madam Speaker, I yield myself 15 seconds.
I just want to clarify, I heard the other side of the aisle say that
this bill was going to create 1 million jobs. We are going to spend $13
billion to create 1 million jobs. The $1 trillion stimulus bill last
year was promised to create 3.7 million jobs. At some point, I would
like to--
Mr. BLUMENAUER. Would the gentleman yield?
Mr. NUNES. Yes, I would like to yield to the gentleman.
The SPEAKER pro tempore. The time of the gentleman from California
has expired.
Mr. NUNES. Madam Speaker, I yield myself an additional 30 seconds.
{time} 1415
Mr. BLUMENAUER. What I said, and I want to be clear if I
misrepresented it, is that the $77 billion in transportation funding
will protect or create hundreds of thousands of jobs. That's what I
said.
Mr. NUNES. Reclaiming my time, actually, Mr. Blumenauer, my good
friend, spoke about the jobs. Earlier, I had heard another gentleman on
the other side of the aisle speak about 1 million jobs. I'm just trying
to figure out the math. This is about a $13 billion to $15 billion bill
to create 1 million or hundreds of thousands of jobs. Last year we
spent $1 trillion to create 3.7 million jobs, and we lost 3 million
jobs.
Mr. BLUMENAUER. Will the gentleman yield?
Mr. NUNES. Yes, of course.
Mr. BLUMENAUER. The bill includes $77 billion of transportation
funding. That was my reference. I think the experts agree that it would
be hundreds of thousands of jobs, if not 1 million, saved or created
with that transportation funding.
I appreciate the gentleman's courtesy.
Mr. NUNES. Madam Speaker, I yield 2 minutes to a member of the Ways
and Means Committee, the gentlewoman from Florida (Ms. Ginny Brown-
Waite).
Ms. GINNY BROWN-WAITE of Florida. Madam Speaker, I want to make it
clear from the start that there are some items in this bill, some
provisions, that everyone in this Chamber could probably support.
Providing tax relief to small businesses is really a good idea, but
this very fact raises an important question:
If the majority recognizes that lowering taxes for businesses is good
for employment and is certainly good for the economy, then why do they
insist on dramatically raising taxes everywhere else every single
chance the Democrats get?
I also think that it is worth discussing the nefarious accounting
gimmicks in this bill. I voted for the principle of PAYGO because I
believed in it; but no sooner did the Democrats finish patting
themselves on the backs for passing PAYGO than they turned around and
came up with waiving it and, in this instance, kind of Bernie Madoffing
it, if there is such a word. I think I just created a new word, Madam
Speaker. I don't want to get too far into the technical weeds here, but
this bill is PAYGO-compliant only because of some accounting gimmicks.
In the fourth quarter, move a little first quarter money into future
years, and presto-change-o, the bill becomes PAYGO-compliant. The
American people know we can't spend the same money twice; so let's take
a closer look.
The official cost estimate of the bill does not include a $20 billion
transfer from the general fund to the highway fund, meaning we will
have to find that money someplace else. We will have to find that
general revenue money someplace else, probably from China. The cost
estimate doesn't reflect $142 billion in a new spending authorization
for transportation projects that we don't have a source of revenue to
pay for. Maybe that's why we were only given a few hours to read the
bill before the vote is to take place on it.
While we're on the subject of transportation funding, I did hear Mr.
Oberstar say that the Senate was going to fix this, but the bill before
us is not one that is good for transportation for the various States.
The SPEAKER pro tempore. The time of the gentlewoman has expired.
Mr. NUNES. I yield the gentlewoman an additional 30 seconds.
Ms. GINNY BROWN-WAITE of Florida. I thank the gentleman.
Certainly, California and Illinois get half of the funding. That
leaves the rest of America to ask, What's in it for us? Well, the
answer is zero. Florida is a donor State and already pays far more in
transportation taxes than what it gets back. Quite frankly, I cannot
support the bill that is before us today for that reason and for
several other reasons.
Mr. ETHERIDGE. Madam Speaker, I yield 2 minutes to the acting
chairman of the Ways and Means Committee, the gentleman from Michigan
(Mr. Levin).
(Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LEVIN. I thank my friend for yielding.
Madam Speaker, the theme of this bill is very clear: Back to work. I
would think that would unite us and not divide us.
Recently, we have seen economic growth. What we have not seen enough
of at all is growth in jobs, and that's what this is really all about.
There is no easy or perfect way to bring this about. It takes a number
of steps. The tax credit in this bill is one approach. We are going to
need additional steps.
Another way that it relates to economic growth and jobs is through
infrastructure. We can argue about how many jobs and about what the
estimates are as to how many millions will be created, but it's clear.
The Secretary of Transportation has said that he can verify $60 billion
to $70 billion in infrastructure--roads, bridges--ready to go this
spring and this summer. We should be united in providing the
authorization for this to happen. It should not divide us.
There is money also, as has been said, for school construction bonds
and energy bonds. Also, very importantly, it relates to the expensing
by small business, which is very much within the jurisdiction of the
Ways and Means
[[Page H1141]]
Committee. That also should unite us and not divide us, and it is
critical that we expend that provision.
So, for all of these reasons, I urge that we join together, rather
than divide, and pass this bill.
Mr. NUNES. Madam Speaker, I yield 3 minutes to the ranking member of
the Transportation and Infrastructure Committee, the gentleman from
Florida (Mr. Mica).
Mr. MICA. Madam Speaker, with record national unemployment in my
State, 11.8 percent unemployment, one of the top 10 unemployment States
in the United States, I would love to come before the Congress and say,
``Pass this bill,'' titled the ``jobs'' bill, but I can't do that today
for several reasons.
First of all, let me say to those who have come before us who have
said that just getting more money even in a short-term Transportation
bill will get things going: I don't know the facts.
Over 1 year ago, we passed $48 billion in stimulus money that went to
the Department of Transportation. So far, as of March 2, only $8.8
billion has been spent. This is not a 6-year bill we are passing, and
that's what we should be doing to ensure that States can do long-term
projects, not just the repaving of sidewalks and simple things that
we've seen done. This bill does not contain the elimination of the
redtape and the hoops that States have to go through for compliance to
do any project. This will be our fifth extension, and it only goes to
December 31.
Now, I was also told that we had to pass this because it was going to
go straight to the President for his signature. Intervening, we did
pass a 30-day extension. So this is not going straight to the
President. We did not have an opportunity to correct the flaws in this
bill.
You heard of the Senate passing--what was it?--the Nebraska deal and
the Louisiana purchase. I'm telling you this is the four-State grab.
California gets 30 percent of the additional money in this bill; 58
percent of the money goes to four States; 22 States get nothing.
Senate Surface Transportation Extension Act State-by-State Allocations
of Funding for Projects of National Significance and National Corridor
Programs
($932 million over the period from Oct. 1, 2009, through Dec. 31, 2010)
California--$278 million
Illinois--$151 million
Louisiana--$59 million
Washington--$55 million
Oregon--$40 million
Oklahoma--$36 million
Arkansas--$36 million
West Virginia--$35 million
Virginia--$29 million
Tennessee--$27 million
Minnesota--$25 million
New Jersey--$25 million
New York--$25 million
Dist. of Col.--$19 million
Wisconsin--$15 million
Colorado--$13 million
Pennsylvania--$13 million
South Carolina--$13 million
Connecticut--$9 million
Alaska--$8 million
Michigan--$5 million
Indiana--$4 million
New Mexico--$4 million
Maryland--$3 million
Iowa--$2 million
Kentucky--$2 million
Mississippi--$2 million
Texas--$2 million
Arizona--$1 million
Alabama--$0 million
Delaware--$0
Florida--$0
Georgia--$0
Hawaii--$0
Idaho--$0
Kansas--$0
Maine--$0
Massachusetts--$0
Missouri--$0
Montana--$0
Nebraska--$0
Nevada--$0
New Hampshire--$0
North Carolina--$0
North Dakota--$0
Ohio--$0
Rhode Island--$0
South Dakota--$0
Utah--$0
Vermont--$0
Wyoming--$0
This chart shows each State: 22 States get nothing; 46 States are
disadvantaged because of the four-State grab in this, and it could and
should have been corrected. If it's going back to the United States
Senate, then it should be corrected so everyone is treated fairly and
equitably in the distribution of transportation funds.
Mr. Oberstar has done his level best, and he has a written letter
from Ms. Pelosi, the Speaker, and from Mr. Reid to correct this after
we pass it. If this were the only flaw in the bill, maybe we could look
away.
You've heard from Democrats who also voted against the rule, who
almost took this bill down, who also stated their objections to
provisions that should have had the opportunity for at least an
amendment by this body. So there has been no consideration of changing
the bill and of making the appropriate fairness changes, equitable
changes, so we would all be treated equitably.
Mr. ETHERIDGE. Madam Speaker, I yield 1 minute to the Speaker of the
House, the gentlewoman from California (Ms. Pelosi).
Ms. PELOSI. I thank the gentleman for yielding, and I appreciate his
leadership and his intensive knowledge of this legislation and how
important it is for us to proceed.
Madam Speaker, I will not speak long because, the sooner we finish
debate on this bill, the sooner it goes back to the Senate, the sooner
it goes to the White House for signature, and the sooner jobs are
created in our country.
I agree with much of what the distinguished ranking member on the
committee said about wanting a 6-year bill. Our chairman, Mr. Oberstar,
has been advocating for that, and I agree.
I also agree that the language has to be changed, and we have the
commitment to do that as we go forward, but that doesn't mean that
Americans are not suffering, that they do not need jobs. We should act,
and we should act today to bring them closer.
I want to remind our colleagues of places and times. Just over a year
ago, this Congress passed the American Recovery and Reinvestment Act.
As a result of that, more than 2 million jobs were saved or created.
Very important. All over the country, as Members go home to their
districts, they see evidence of investments in the future: Clean energy
jobs for the future, the education of our children, the safety of our
neighborhoods, the creation of jobs, the stabilization of our economy,
the stabilization of State and local budgets. As a result of that, just
think of what has happened in this one year.
In January 2009, the last year of the Bush administration, America
lost 779,000 jobs. This January, we lost 20,000 jobs. We don't want to
lose any jobs. We want to be on the upside. We want to be creating
jobs. The point is that, following the passage of the American Recovery
and Reinvestment Act and other initiatives taken by the Obama
administration and this Congress, there has been a difference of over
three-quarters of a million jobs in 1 month--779,000 in January, 2009,
and 20,000 in January, 2010.
In the final quarter of 2008, before President Obama took office,
America's GDP shrank by 6.2 percent. For that quarter, the GDP was a
negative 6.2 percent. Just 1 year later, the GDP grew in the same
period by 5.9 percent, over a 12 percent change in the rate of growth
of the GDP thanks to the American Recovery and Reinvestment Act and to,
again, other actions taken by Congress.
You know, when we were debating the Recovery bill last year at around
this time, earlier in January and in February, the stock market was
around 6,500-7,000. It's over 10,000 now, an increase of over 3,000
points. Yesterday, we learned that America's manufacturing base grew
for the seventh straight month, and it is now at its highest level in 5
years.
Still, we must be unrelenting in our efforts to create more jobs. Too
many Americans are unable to find work. In some cases, we are talking
about putting people back to work. In some cases, people haven't had
opportunities coming out of school. They've not been able to enter the
workforce. So it is not just about putting people back to work. It is
about creating a broader universe of jobs to have many more Americans
participate in the economic prosperity that we hope for our country.
Today, we are taking another step in creating jobs and in laying the
foundation for long-term growth and prosperity. With $15 billion in
critical investments, this bill includes a payroll tax holiday for
businesses that hire unemployed workers, creating some 300,000 new jobs
with that provision
[[Page H1142]]
alone, and an income tax credit of $1,000 for businesses that retain
employees.
There is specific support to small businesses with tax credits and
accelerated writeoffs. There is the extension of the Highway Trust
Fund--this is very, very important--allowing tens of billions of
dollars in infrastructure investment.
This is a $15 billion bill, but it triggers tens of billions of
dollars more by eliminating a recision of last year, by restoring the
interest to the trust fund it was deprived of and by triggering further
contracting, tens of billions of dollars and probably 1 million jobs in
this bill alone.
{time} 1430
In December, the House passed our Jobs for Main Street Act, a broader
measure for creating good-paying American jobs paid for by redirecting
TARP funds from Wall Street to Main Street. Today's legislation is one
key element of that legislation, one key element of our agenda to get
Americans back to work and to strengthen our economy.
Madam Speaker, I believe that every Member of Congress on both sides
of the aisle understands the urgent need to create jobs for our
country, and today we have an opportunity to do so.
I know that some people have some concerns on one side of the aisle
or the other about this provision or that provision, but the fact is
that 1 million jobs will be created by this legislation. Vote for jobs,
vote ``aye'' on this legislation.
I thank Mr. Etheridge and all concerned, Mr. Oberstar, the
distinguished chairman of the Transportation Committee, and so many
others, for making this important legislation possible. It is
difficult, it is challenging, and more is yet to be done, but I urge my
colleagues on both sides of the aisle to vote for jobs. Vote ``aye'' on
this legislation.
Mr. NUNES. Madam Speaker, I yield myself 30 seconds.
I would like to remind my colleagues here in this House that last
year there was a provision offered that didn't cost $1 trillion, didn't
cost $1 billion, didn't cost $1 million, didn't cost $1, and that was a
provision to let water flow to my constituents in the San Joaquin
Valley of California so people could go back to work. But, instead,
nearly every Democrat Member from California in this Congress opposed
that amendment. So last summer we had tens of thousands of farmers and
farmworkers standing in food lines in the most productive ag land in
the United States or in the world.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. NUNES. I yield myself an additional 15 seconds.
A zero cost provision could not go into this bill, and now we have
farmworkers eating carrots imported from China. So, all this talk about
jobs, it is all phony. The American people have had enough of this
nonsense.
I yield 3 minutes to my good friend, the gentleman from Ohio (Mr.
LaTourette).
Mr. LaTOURETTE. Madam Speaker, I have spoken many times on this floor
about my great admiration for the chairman of the full Transportation
and Infrastructure Committee, Mr. Oberstar, and he knows that this bill
isn't fair. He knows that this bill isn't fair, because he produced a
chart last week that has 50 States, plus the District of Columbia, so
it is 51, and 22 States get nothing under this bill and four States
walk away with 58 percent.
Not surprisingly, I heard the Speaker likes the bill. California gets
30 percent of the highway funding under this bill. Any Member who is
interested is more than free to come peruse this at their leisure.
Now, I give Chairman Oberstar great credit, because he wasn't happy
with this, I believe last week, and he fought with his leadership, and
he has produced today a letter from Senator Reid saying he is going to
fix it sometime in the future.
Now, two things: That is the second big lie, the check is in the
mail. The other thing is I hope the majority understands that a letter
from Senator Reid just didn't fill us on this side of the aisle with
warmth and fuzzy feelings. If you want to fix the problem, fix the
problem. And the problem is not fixed.
This is not a jobs bill. I also admire the Speaker of the House, but
I admire her more today because she did not break into laughter when
calling this a jobs bill. This is no jobs bill. This is a faux jobs
bill. This is a snow jobs bill. And I look forward to the unemployment
statistics tomorrow, because I believe that we are going to look at
about 100,000 Americans will have lost their jobs in the last month,
despite all these great successes.
Continuing with my admiration for Chairman Oberstar, my favorite part
of the speech that he gives on the stimulus package is all of those
jobs which he created through the infrastructure spending in the
stimulus are 8 percent of the funding. So that means, I have to figure
out the math, Mr. Oberstar, but that means in an $800 billion bill,
half the jobs were created by 8 percent of the funding, and that is
thanks to you and the work that you and your colleagues do on the
committee. So I guess the other half were created by about $750
billion. That is a strange, strange, strange investment.
Mr. OBERSTAR. Will the gentleman yield?
Mr. LaTOURETTE. I would be happy to yield.
Mr. OBERSTAR. Just briefly, if the gentleman, Madam Speaker, could
assure us that there would be no Senate filibuster or hold on the bill,
Senator Reid would have been happy to accept our changes. But he
estimated he couldn't get that through the Senate, so he agreed to a
fix in a subsequent bill. He put it in writing, and we have to accept
his written commitment to do that.
I thank the gentleman for yielding.
Mr. LaTOURETTE. Oh, my pleasure, and my appreciation of you grows
every day. But I will tell you what; if you can crack the code of the
Senate, Republican or Democrat, then you deserve much more money than
you are making as the chairman of the full committee, because they are
a strange bunch. It doesn't matter who is in charge; they don't seem to
do anything.
Now, I want to get to the process now, because the President down at
this health care summit down at Blair House said nobody cares about
process.
But I have got to tell you, I have never seen this. This is my 16th
year in the United States Congress. When Mr. Etheridge made his motion,
it says, ``Mr. Etheridge moves that the House concur in the Senate
amendment to the House amendment to the Senate amendment with an
amendment.''
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. NUNES. I yield the gentleman an additional 2 minutes.
Mr. LaTOURETTE. I appreciate it.
I said, boy, that is really a procedural mouthful. And you know what
it means? It is a procedural way to screw the minority, the Republican
Party in this House. Not only can't we amend your bill, not only did we
get it at 9:30 this morning, we can't offer a motion to recommit. You
know what the majority leader, Mr. Hoyer, would be saying if we pulled
that on him when we take the majority back next year? He would be
screaming bloody murder, and he would be right.
Madam Speaker, as a result of that, I would like to offer an
amendment to this bill.
The SPEAKER pro tempore. Because the previous question is ordered,
that would require unanimous consent, and the manager, the gentleman
from North Carolina would have to yield for that request.
Mr. LaTOURETTE. Then I will ask the gentleman from North Carolina to
yield to me to offer an amendment to the bill. And so that the
gentleman doesn't think that I am sandbagging him, let me tell you what
it is going to be.
I would move to amend this bill to transfer the $13 billion in this
sham tax credit, that is not going to create one job and is really the
dumbest idea I ever heard, to infrastructure spending.
I would further have it in that amendment that the infrastructure
spending, now at $14 billion, be distributed pursuant to the House
proposal that Mr. Oberstar has proposed, which means every State in the
Union benefits, not just California, not just States that are walking
away with a bunch of money.
Will the gentleman from North Carolina yield to me for the purpose of
offering an amendment?
[[Page H1143]]
Mr. ETHERIDGE. Will the gentleman yield?
Mr. LaTOURETTE. I yield to the gentleman from North Carolina.
Mr. ETHERIDGE. I thank the gentleman for his willingness to help, but
the rule does not provide for that.
Mr. LaTOURETTE. Mr. Etheridge, we are going to give it another shot,
because we are not going to be able to hide behind ``the rule doesn't
offer it.'' I said that. The rule doesn't provide for an amendment. The
rule doesn't even provide for a motion to recommit, the only tool in
the minority's toolbox.
Mr. Etheridge, I ask unanimous consent--well, first of all, I guess
you need to yield to me for a unanimous consent request. Would you
yield to me for a unanimous consent request?
Do I have to ask him to yield to me, or do I yield to him to yield to
me?
The SPEAKER pro tempore. The gentleman from North Carolina would have
to yield for any unanimous consent request.
Mr. LaTOURETTE. Mr. Etheridge, I am asking you to yield to me so I
can make a unanimous consent request that you can deny.
Mr. ETHERIDGE. It is your time.
Mr. LaTOURETTE. No, I am asking you, sir, to yield to me.
Mr. ETHERIDGE. No. The rule does not provide for it.
Mr. LaTOURETTE. Well, that is nonsense, first of all, because the
Speaker has just indicated that if you would yield to me, I could make
my unanimous consent request.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. NUNES. I would like to yield the gentleman an additional 1
minute.
Mr. LaTOURETTE. Well, I am going to tell you what, Mr. Etheridge. If
you would yield to me, which apparently you can under the rules but
don't want to because you think the rule says so, which it clearly
doesn't, here is the deal. I want to make a unanimous consent request
that the $13 billion in this worthless tax credit be transferred to
infrastructure spending; further, that that additional $13 billion be
distributed pursuant to the House plan, as opposed to the Senate plan,
the Senate plan rewarding only four States with 58 percent of money, 22
States getting zero.
Now, Mr. Etheridge, I am asking you to yield to me for that purpose.
Mr. ETHERIDGE. What was the gentleman's request?
Mr. LaTOURETTE. I am asking you to yield to me for the aforementioned
unanimous consent request.
Mr. ETHERIDGE. The gentleman is doing the same thing that happened in
the other body. We are just trying to slow down a piece of legislation
that needs to move to get to the President's desk so it can be signed
so we can help the American people.
Mr. LaTOURETTE. So that is a no. Is that a no? I still have the time,
Mr. Etheridge. Is that a no?
Mr. ETHERIDGE. The rules do not provide for that. You would need a
unanimous consent request to do that.
Mr. LaTOURETTE. Do you know what that is? That is a soup sandwich
answer, because the Speaker has just said you could do it.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. ETHERIDGE. Madam Speaker, I yield 2 minutes to the gentleman from
Rhode Island (Mr. Langevin).
(Mr. LANGEVIN asked and was given permission to revise and extend his
remarks.)
Mr. LANGEVIN. Madam Speaker, I thank the gentleman for yielding and
for his outstanding work on this important bill.
I rise in strong support of H.R. 2847, the HIRE Act, which will
strengthen our economy by limiting job loss and creating new employment
opportunities. In addition to provisions that will spur investment in
infrastructure and construction projects, this bill provides much-
needed assistance and attention and support for small businesses in
America. This bill includes a payroll tax holiday for businesses that
hire unemployed workers and tax cuts to help small businesses expand
and hire more workers.
Small businesses, Madam Speaker, have borne the brunt of this
economic crisis, and their inability to access credit to keep their
businesses operating has clearly added to the high unemployment rate
across the Nation, especially in my home State of Rhode Island, which
has right now the second highest unemployment rate in the country.
So, Madam Speaker, I urge my colleagues to support this jobs measure,
as well as working on additional legislation that helps small
businesses and unemployed workers. Our job is to create jobs, Madam
Speaker, and that is exactly what this piece of legislation before us
does today.
I thank you and urge my colleagues to support this important jobs
bill.
Mr. NUNES. Madam Speaker, I yield 2 minutes to the gentleman from
Georgia (Mr. Kingston).
Mr. KINGSTON. Madam Speaker, first of all, let me say to the
majority, I am glad you have offset this money. I think that is a
significant step for both parties, to have a spending bill offset. So I
want to get that out of the way.
Having said that, I have got to say that I am very leery of another
government spending program to address jobs. We are here because last
year we spent nearly--well, we did spend $800 billion on a stimulus
program that was supposed to keep us from going to 8 percent
unemployment. Now we are at 10 percent unemployment.
The stimulus program before just added 31 brand new Federal programs
and increased spending. I am ranking member of the Agriculture
Committee, and spending in the USDA has gone up 26 percent. At some
point we are going to figure out the Federal Government doesn't have
the solution for everything.
This is not our only stimulus proposal or jobs proposal. In May of
2008, we had a $168 billion stimulus program that did not work. In
March of 2008, the Federal Reserve said, well, we are going to shore up
Wall Street with Bear Stearns, $29 billion. In July of 2008, the
Democrat Congress and President Bush came in with a $200 billion
bailout of Fannie Mae in order to shore up real estate. And not to be
outdone, the Federal Reserve weighed back in a month later with the AIG
bailout, $85 billion, now up to $140 billion, that was supposed to
avert financial collapse, and yet it did not. And then in October of
2008, we had a $700 billion TARP bill. Then in January 2009, under
President Obama, we had a $410 billion omnibus spending bill that was
supposed to shore up the economy.
{time} 1445
Of course, that brings me back to the other stimulus program. After a
while, we're going to figure out everything we do is like Cash for
Clunkers. It just doesn't work. If we want to help small businesses,
we've got to quit spending money, number one.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. NUNES. I yield the gentleman an additional 30 seconds.
Mr. KINGSTON. I thank the gentleman.
Number two, we need to let community banks be released from some of
the overbearing and unnecessary regulations in which they have to
comply, because that causes them not to be able to lend money and thus
small businesses are tied up in a credit crunch. Number three, we've
got to let small businesses compete. We set rules. Big Business and Big
Government set rules so that small businesses can't compete. There are
things we can do. There are things we can do together on a bipartisan
basis. We need to vote this bill down so that we can get to them.
Mr. ETHERIDGE. Madam Speaker, I yield myself 10 seconds to remind the
gentleman that how we got here was the American people lost somewhere
in the neighborhood of $15-plus trillion in value of their homes and
assets over the 18 months through July of last year until we passed
something and started to turn it around. Since then, they've gained
about $5 trillion back in, but we've got a ways to go.
I now yield 1 minute to the gentleman from Kentucky (Mr. Chandler).
Mr. CHANDLER. I thank my friend from North Carolina. I rise today in
support of H.R. 2847, the Hiring Incentives to Restore Employment Act,
or the HIRE Act. This piece of legislation will help our small
businesses heal during these tough economic times and help unemployed
Kentuckians find good, local jobs. The HIRE Act cuts taxes for our
small businesses and makes it possible for them to hire new employees,
making our small companies stronger and creating jobs for out-of-work
Kentuckians.
[[Page H1144]]
Madam Speaker, the unemployment rate is around 11 percent in the
Commonwealth of Kentucky, and we have to do all we can to create and
save jobs throughout this Nation. Small businesses are the backbone of
our economy and the engines of job creation. Investing in the long-term
health of our small businesses is one of the surest ways to economic
recovery.
This legislation isn't just about small businesses, though. It's
about helping that mom, that dad who was laid off in the midst of this
recession find a good-paying, local job.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. ETHERIDGE. I yield the gentleman an additional 15 seconds.
Mr. CHANDLER. I urge my colleagues on both sides of the aisle to vote
in favor of this legislation today because a vote for this legislation
is a vote for middle class families; for small, innovative start-ups;
and the long-term economic health of central Kentucky and the Nation.
Mr. NUNES. I yield myself 30 seconds.
Madam Speaker, I still have yet to have someone explain to me from
the other side of the aisle how the trillion-dollar stimulus bill
passed last year that was supposed to create 3.7 million jobs--instead,
we lost 3 million--and how this bill that spends $13-or-so billion--
still a lot money, but not nearly a trillion dollars--is going to
create a million jobs, as they continue to repeat on that side of the
aisle. I would like for someone to answer the question.
I reserve the balance of my time.
Mr. ETHERIDGE. I yield 2 minutes to the gentleman from Oregon (Mr.
DeFazio).
Mr. DeFAZIO. I can answer the gentleman's question. There's a
different emphasis. The emphasis is on small business, which is an
incredible economic engine in my State and in many other States across
the country. Secondly, there is an extraordinary emphasis on
transportation infrastructure.
The gentleman may be unaware that in August of this year the
Transportation Infrastructure Trust Fund is going to fall short of
funds, delaying reimbursement to the States and stalling out needed
projects and investment all across the country. This bill fixes that,
and once and for all we will in the future get interest on money
borrowed from the highway trust fund. That's what people pay gas taxes
for. It's not supposed to be spent somewhere else. We're now going to
reclaim that money, and we're going to spend it putting people to work
and rebuilding the crumbling infrastructure of this country. It will
give us a billion dollars more a month.
I heard the gentleman from Ohio talking about 58 percent of the bill.
Well, no. Actually, what he was concerned about was 58 percent of 1.2
percent of the bill, which is .7 percent of the bill, which, under the
agreement the chairman has reached with the leader of the Senate, will
be fixed in the near future. In fact, Ohio will get an extra $38
million because of that, and my State will get less. So I don't know
what he's complaining about. If somebody should be down here
complaining, it should be me.
Mr. LaTOURETTE. Will the gentleman yield?
Mr. DeFAZIO. I will not yield.
But I felt it was fair to put that money into the overall formula so
that all 50 States would benefit, because everybody, almost every
State, is suffering high unemployment, particularly the gentleman's
State and my State. And this agreement the chairman has will bring an
extra $38 million to his State, a billion dollars a month more in
infrastructure spending; and for every billion we spend in
infrastructure, we put about 33,000 more people to work. We sure as
heck need those jobs.
So I stand here saying we need to pass this bill. Yeah, the Senate is
dysfunctional. It's a mess. It would have been cleaner to do it all at
once. But this is the best we can do, dealing with a body that is just
ridiculous.
Mr. NUNES. Madam Speaker, I'd like to yield myself 15 seconds.
Madam Speaker, simple math: If you're going to spend $13 billion to
create a million jobs, then why don't we just spend another $200
billion and we create 16 million jobs, and everybody would have a job.
I'd like to yield 2 minutes to my friend to clarify an earlier point,
the gentleman from Ohio (Mr. LaTourette).
Mr. LaTOURETTE. I promise not to try to amend the bill or anything
else. It's just sad that the distinguished chairman of the Surface
Transportation Committee wouldn't yield to me, but it doesn't surprise
me. He likes this bill. Oregon gets $40 million under the bill, of the
$1 billion, and only $11 million under Mr. Oberstar's proposal.
Are you going to give me a 7 percent thing or are you going to say
that's not true? I'll yield to you if you don't think it's true.
Mr. DeFAZIO. I have signed off on the chairman's agreement, and my
State will not get those other funds.
Mr. LaTOURETTE. That's what I'm talking about.
Mr. DeFAZIO. I don't know what the gentleman's complaining about.
You'll get an extra $38 million and I'll get about $30 million less.
Mr. LaTOURETTE. Well, here's the skinny: That depends upon Harry
Reid's putting a letter in the mail, sending it over to the chairman
and the Speaker, and having another bill. Now, no disrespect to your
majority, but you haven't done such a great job in passing bills since
you guys took over 4 years ago. So waiting for another bill to come--
and, quite frankly, trying not to be partisan about this, but this mess
was created by George Bush and it is perpetuated by President Obama
because his Transportation Secretary says they don't want to deal with
the 6-year bill until March of 2011. Thirty percent of the construction
trade in this country is out of work. Why wouldn't you do this?
To my distinguished friend from Oregon, all I was asking was for his
State to do better. Transfer the $13 billion from this worthless tax
credit and put it into infrastructure. Put these guys to work. Actually
build something. Again, going back to Mr. Oberstar's wonderful speech
that he always gives: a million jobs with only 8 percent of that $800
billion. Wouldn't it be great if we could give Jim Oberstar $14 billion
to create jobs for America rather than coming up with this goofy tax
credit that says if you hire somebody for $30,000, we're going to waive
the payroll tax for November and December. Guess what? You can save
$1,500 if you just give somebody a $30,000 job. It's nuts. This bill is
wrong. That's what I was talking about.
Mr. ETHERIDGE. I reserve the balance of my time.
Mr. NUNES. Madam Speaker, if there are no additional speakers, I'm
prepared to close.
Madam Speaker, during this entire debate today, as the gentleman from
Ohio said, this is just a sham. And to sit here and complain about the
Senate and procedural things, I mean, we ought to do another Shamwow
Summit at the White House. Maybe that would clarify and fix the
problems.
We're not Senators. We don't control the Senate. I don't understand
the math that you guys use. No one has answered it yet. You guys spent
a trillion dollars last year, said you were going to create 3.7 million
jobs, but you lost 3 million jobs. Now you say you're going to spend
$15 billion and now you're going to create a million jobs. So let's go
over some math just so we can clarify things, because I know we're
going to continue to hear that Republicans are obstructionists,
Republicans have no plans. So let me just go over some math that
perhaps folks will understand.
The Democrats have 250-some-odd votes in this House. It only takes
218 votes to pass a bill. In the U.S. Senate you still have almost a
supermajority with 59 votes. So what is the problem? Quit calling
Republicans obstructionists. You have the White House, you have the
Senate, you have the House of Representatives. No more Shamwow Summits,
Madam Speaker. Let's get back to work. Vote ``no'' on this bill. This
is a scam.
I yield back the balance of my time.
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore. Members are reminded to direct their remarks
to the Chair.
Mr. ETHERIDGE. Madam Speaker, today we have an opportunity to start
the process of putting people back to work, and I would encourage my
colleagues on both sides of the aisle to support this piece of
legislation. The
[[Page H1145]]
piece that some of my colleagues on the other side have complained
about on the tax credits for small businesses will be used to put
people to work. And I would remind them that there were nine Republican
Senators on the other side who joined as cosponsors in this piece of
legislation. So it was bipartisan on the Senate side.
The HIRE Act really does four key things. Let me remind my
colleagues, in closing: First, it will give direct tax incentives to
businesses to hire new workers with provisions similar to the bill that
I introduced earlier this year. It also restores full value of direct
payment options for certain tax credit bond programs, including a
program that has been supported in previous Congresses.
Let me speak on that for just a minute because it goes to the heart
of the problem we're about. If we really believe and say we're for
children, if we really say we're for jobs, there are $22 billion worth
of zero interest school bonds, tax exempt bonds, in this bill. And this
bill fixes the problem so they can go directly to Treasury and get the
credit. Those job bonds can be sold and we can put people to work
across this country building schools and other infrastructure. That's
in addition to the highway dollars we've just been talking about.
Finally, Madam Speaker, it would give a small business tax incentive
to buy new equipment and to grow. That is an important piece. If we
truly believe we are for small businesses, today is the day we get a
chance to put a vote on the board: Are we for them or are we against
them? They can tell very quickly because this bill will go to the
Senate, and then it's going to the President of the United States for
signing.
Finally, it would give our State and local governments greater
certainty on funding for highway projects that we just heard about. I
have long believed that if we invest in schools now, it will save money
in the long term and make our economy stronger and make a difference in
the future. I served for 8 years as State superintendent of the schools
in my home State. I coauthored the provision that we're talking about
here. We can now fix that problem.
Madam Speaker, I urge my colleagues to vote ``yes'' on this piece of
legislation for jobs for the American people, schools for our children,
and a chance to help heal and help those who do not now have work.
Mr. CONYERS. Madam Speaker, I rise in opposition to H.R. 2847, the
``HIRE Act.'' While I am sensitive to the excruciating economic pain
felt by many in my district and around the country, I cannot in good
conscience support this flawed bill.
I applaud the House and Senate leadership for including some common
sense job creation provisions in this bill. In particular, I support
the inclusion of language that frees up $77 billion dollars worth of
surface transportation investments and another provision that gives the
recipients of qualified clean energy, school construction, and energy
conservation bonds a direct payment from the federal government to
cover their interest costs.
I wish that these provisions were enough to secure my support for
this legislation and help those who cry out for additional economic
aid. Unfortunately, the originators of this legislation--my colleagues
in the United States Senate--decided to set aside the remaining $13
billion dollars of this $17 billion dollar bill for an ineffective and
wasteful hiring tax credit. As with many previous efforts in the upper
chamber, the Senate has yet again sacrificed effective policy in order
to tout some small measure of bipartisan support.
During my 45 years in this body, we have debated whether or not to
raise the minimum wage countless times. As we know from these
reoccurring debates, companies do not respond to small changes in the
cost of labor. This is why the periodic 15 to 20 percent increases in
the minimum wage enacted into law by the Congress over the years have
not effected employer hiring decisions. Unfortunately, the very
economic reality that makes the minimum wage good policy also makes the
Schumer-Hatch hiring credit bad policy.
If a 15 to 20 percent increase in the minimum wage doesn't affect
employer decision-making, logic dictates that an even smaller payroll
tax break--6.2 percent to be exact--for companies that hire recently
unemployed workers will similarly have a nonexistent effect on hiring.
This bill will create yet another failed corporate ``trickle-down'' tax
break and Congress will hand out a new benefit--paid with scarce
taxpayer resources--to employers who hire workers they would have hired
anyway.
This is not to say that a properly conceived tax policy couldn't
receive bipartisan support or play an important role in spurring
hiring. For example, I have proposed legislation that is supported by
many economists and organizations on both the left and right that would
save millions of jobs at minimal cost to the federal government. My
``SHARE Credit Act'' would provide a tax credit to employers that
shorten hours instead of firing workers. For a mere $22,000 dollars a
worker, we could cheaply and efficiently stem the monsoon of layoffs
reported each month by the Labor Department.
However, above and beyond mere tax policy, Members on both sides of
the aisle know that we need to do more. Ending the unacceptably high
levels of unemployment that plague our economy will require us to
attack this epidemic using all the tools of the federal government.
This means coupling progressive tax measures with public works job
hiring initiatives and a commitment to full employment. To do anything
else would be a betrayal of the fundamental trust given by those who
elected us. Each of us comes to Washington with a simple task: Address
the most critical issues that face the Nation by using the most
effective tools at our disposal. No bonus points are awarded for
bipartisan legislation that does not meet this high standard.
A bill whose major component is a meaningless giveaway to corporate
America cannot be called a jobs bill. At a minimum, the Senate should
conference the $150 billion dollar jobs package that that the House
passed last December. Uneven and piecemeal legislative efforts like
this bill must be the exception, not the norm. I encourage my
colleagues to oppose this bill.
Mr. SENSENBRENNER. Madam Speaker, I rise today in opposition of this
so-called jobs bill. The incentives in this bill are a rehashing of the
failed policies of the Carter Administration's stimulus in 1977, and I
do not believe these measures will truly create jobs.
The news reports daily that Americans are not only hurting with the
downturn of the economy, but they are also fearful that their
government will continue to recklessly spend in the name of economic
recovery. Last year, stimulus legislation was passed in this House,
promising that a trillion dollars robbed from future generations of
Americans would create jobs immediately and unemployment would not rise
above 8 percent. The truth, however, is that since this boondoggle
became law, unemployment hasn't fallen below 8 percent; it has risen to
over 10 percent, and still hovers at just under 10 percent. Millions of
jobs have been lost since the recession began, and Washington's only
answer has been to spend money.
Wisconsinites have been contacting me with their concerns daily since
President Obama first announced this plan in the State of the Union
Address. While it is noble for Washington to suspend payroll taxes for
employers that hire new workers, enact a $1,000 tax credit for
retaining employees, and increase the expensing of new equipment
purchased by small businesses, I fear that these measures are merely a
superficial solution. Employers will not be able to take advantage of
these incentives if they do not have work to offer. It is common sense
that employers hire workers because they have work that needs to be
done, not because they will get a tax credit. The fact remains that
businesses in this country are scared. They are scared by the
uncertainty that Congress is projecting. The threat of increased taxes,
increased government regulation, and costly government mandates are
creating an environment that does not bode well for job seekers.
We must focus on increasing businesses' confidence that their
government will not further hamper their abilities to create work. At
the end of the day, this legislation is a drop in the bucket, it is not
the solution. Only after long-term tax relief can we realize long-term
economic recovery.
Mr. BACA. Madam Speaker, tomorrow, the new monthly labor statistics
will be announced.
And even though the national unemployment may decrease, job creation
still needs to be our number one priority moving forward.
Thankfully, later today, we will have a chance to take a major step
in improving the economic outlook for families across America.
The HIRE Act will provide over $77 billion in investments in
transportation projects.
It will also allow for a continuation of minority-owned business
contracting requirements for these projects.
Incentives for hiring and retaining new employees will be
implemented.
Addiionally, a direct payment option for certain tax credit bond
programs will increase school construction and renewable energy
projects.
The time for partisan talking points has passed.
The American people demand better and we will have a chance to
deliver that relief later today.
I urge my colleagues on both sides of the aisle to pass the HIRE Act
and put Americans back to work.
[[Page H1146]]
Mr. HOYER. Madam Speaker, last year, President Obama and the 111th
Congress took their oaths of office as America faced the greatest
economic crisis since the Great Depression. Since then, our work has
been defined by our response to the crisis--by the overriding job of
getting Americans back to work.
Of course, the most important step toward putting Americans back to
work has been the Recovery Act. It cut taxes for small businesses and
95% of families, started thousands of job-creating projects across
America, provided emergency assistance to those hit hardest by the
recession, saved states from laying off teachers, firefighters, and
police officers, and more. And despite the efforts of some partisan
critics to call it a failure--even as many of those same critics
eagerly take credit for the funds it has provided for their districts--
the Recovery Act is working.
The Recovery Act created some 2 million jobs. And since President
Obama took office, job losses are down 90%. Our economy is growing
again: in the most recent quarter, it grew by 5.9%, the fastest rate in
six years, and the second straight quarter of growth under President
Obama.
All of that is real progress for our economy--but it is not yet
success. In recession after recession, employment has been the last
sign of growth to turn around. Far too many Americans remain unemployed
through no fault of their own, caught in the effects of an economic
collapse they did not create. For working families, few challenges are
more trying than unemployment, especially unemployment that grinds on
for month after month. For Washington, few challenges demand our action
more urgently.
That's why I urge my colleagues to pass this bill--a clear, focused
effort at putting Americans back to work. It provides strong incentives
for businesses to start hiring again. They include a tax exemption that
will eliminate businesses' 2010 payroll taxes for every unemployed
worker hired. The nonpartisan Congressional Budget Office reports that
such tax credits are one of the most effective ways of creating jobs:
``Providing tax credits for increases in payrolls would increase both
output and employment.'' Businesses will also receive further tax
credits for keeping new employees on the payroll for the next year. And
small businesses will be able to take advantage of tax incentives to
finance their expansion.
This bill also extends the highway programs that have created jobs
for so many Americans, while bringing our vital infrastructure up to
par with the rest of the world's. This bill will mean billions more
invested in job-creating highway projects, which will save one million
jobs. It will ensure that states direct some of their transportation
investment to minority-owned contractors. And it will make it easier
for states and local communities to finance their own job-creating
projects by selling Build America Bonds.
Finally, I want to point out that this bill is paid for--that it
fully complies with both the House PAYGO rule and statutory PAYGO,
which are so important to restoring our budget to balance. In fact,
this bill fixes a minor PAYGO violation in the Senate bill--and that
extra effort shows how serious the House is about paying for what our
country buys.
Unemployment demands action from Congress. And this bill is a part of
that effort to create jobs, which began with the Recovery Act and will
continue with a wide range of creative policies in the weeks ahead.
This bill is not the first step, and it will not be the last; but it is
an essential step toward getting America back to work.
Ms. KILPATRICK of Michigan. Madam Speaker, the State of Michigan's
unemployment is 687,400 people unemployed. Detroit has 305,200 people
unemployed. We have 15 million people unemployed in our nation. America
and Americans are practically shouting for Congress to get Americans
back to work. The best stimulus package is a job. H.R. 2847, the Hiring
Incentives to Restore Employment Act, is not that bill. This
legislation, providing tax incentives to businesses to hire people.
This is not the answer. How Congress can walk away with more than
680,000 people unemployed in Michigan, and more than 15 million people
unemployed in our nation, is shameful.
When I served as Chairwoman of the Congressional Black Caucus, along
with my CBC colleagues, I pushed for more than two years for both a
strong summer jobs program and a federal bill that would directly hire
the unemployed. This is a bill that is modeled off of the successful
Comprehensive Employment Training Act (CETA) program of the 1970s-
1980s. The CETA program, which gave grants directly to cities,
counties, and non-profit organizations to hire and train individuals,
worked to lower our unemployment rate and stabilize our economy during
the previous recession. It would be easy to make this legislative fix
not next week, not next month, but right now. During the Depression,
President Franklin Roosevelt almost halved the unemployment rate with a
similarly aggressive program under the Work Progress Administration. I
am ashamed and disgusted that the U.S. House of Representatives cannot
find the collective political courage and will to do what is needed for
the people of America.
What does a real jobs bill look like? In addition to what I have
pointed out earlier, a real jobs bill would:
Create public jobs initiatives, involving the Department of Labor
Employment & Training Administration and the Corporation for National
and Community Service, to maximize direct training and hiring:
Provide locally-directed funding for Summer Youth Employment and
collegiate-level apprenticeships and/or fellowships:
Enforce the minority contracting requirements under the Department of
Transportation and promoting equal access to funding for projects of
the National Significant and National Corridor grants in the extension
of SAFETEA-LU:
Expand unemployment insurance and COBRA benefits: and
Provide access to capital and technical assistance to capital for
small businesses from the Small Business Administration and the
Minority Business Development Agency.
I am sure that there are other areas, but these areas, in particular,
would be a great place to start.
I know too well that the Democrats have inherited the worst job
market since World War II. Too many workers have lost their jobs
through no fault of their own. GM and Chrysler have gone bankrupt. We
are staring down the barrel of a $12 trillion deficit. This fiscal
year, we have to make difficult decisions. All Americans, in Congress,
in business and at home, must work together to keep our recovery on
track by helping small businesses create jobs, investing in our
infrastructure and clean energy industries, and keeping police,
firefighters, and teachers on the job. This bill is not that bill.
I understand politics. I know the legislative process. It is my
belief that this bill is supposed to be the first in a series of bills
that is to address the chronically unemployed. Regrettably, I also
heard this more than two years ago. Today, Congress is no closer to a
real jobs bill two years later. The time for incrementalism is over.
I remain a proud and steadfast supporter of the American Recovery and
Reinvestment Act. Hundreds of thousands of jobs and businesses have
been helped. However, that bill was meant as a quick, temporary fix for
businesses and to help stimulate the economy. Employment was a welcome
by-product of that law. 15 million people who are still unemployed are
telling us that we need to do more. We need to do it now.
This is not a jobs bill. This is a business tax cut bill. While I
remain willing and able to work with my colleagues for a real jobs
bill, I cannot support this tax cut legislation.
Mr. VAN HOLLEN. Madam Speaker, I rise in support of the Hiring
Incentives to Restore Employment, HIRE, Act as an important part of the
ongoing jobs agenda Congress will continue to prioritize in the months
ahead. Simply put, we will not stop until every American who wants a
job can find one, and we have launched a new era of broadly shared
American prosperity.
To boost near term employment while tackling our nation's
infrastructure backlog, the HIRE Act extends the current surface
transportation law through the end of 2010 and provides $77 billion to
get our nation's highways, roads and public transit systems back into
shape. A new direct payment option for states and localities that issue
tax credit bonds for school construction, energy conservation and
renewable energy will further support job creation in these vital
sectors.
I am pleased that this legislation continues support for our job-
generating small businesses by extending the enhanced expensing begun
in the Recovery Act. Under this provision, small businesses will be
able to immediately write off up to $250,000 for qualified capital
expenditures incurred in 2010.
Finally, as a signature initiative, this bill will encourage
businesses to hire new workers by providing a payroll tax holiday equal
to the employer's share of social security taxes for every new hire
made between February 3, 2010 and January 1, 2011. An additional $1000
tax credit is provided for every employee kept on for a full calendar
year.
Madam Speaker, the HIRE Act will put more Americans back to work
providing for their families and participating in our ongoing economic
recovery. It is fully paid for and deserves my colleagues' support.
Mr. ETHERIDGE. I yield back the balance of my time.
The SPEAKER pro tempore. Pursuant to House Resolution 1137, the
previous question is ordered.
The question is on the motion offered by the gentleman from North
Carolina (Mr. Etheridge).
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
[[Page H1147]]
Mr. ETHERIDGE. Madam Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on the motion offered by the gentleman from North Carolina
(Mr. Etheridge) will be followed by a 5-minute vote on the motion to
suspend the rules and adopt House Resolution 1079.
The vote was taken by electronic device, and there were--yeas 217,
nays 201, not voting 14, as follows:
[Roll No. 90]
YEAS--217
Ackerman
Adler (NJ)
Altmire
Andrews
Arcuri
Baca
Baldwin
Barrow
Becerra
Berkley
Berman
Berry
Bishop (GA)
Bishop (NY)
Blumenauer
Boccieri
Boren
Boswell
Boucher
Boyd
Brady (PA)
Braley (IA)
Bright
Butterfield
Camp
Cao
Capuano
Cardoza
Carnahan
Carney
Carson (IN)
Castor (FL)
Chandler
Childers
Chu
Clyburn
Cohen
Connolly (VA)
Cooper
Costa
Costello
Courtney
Cuellar
Cummings
Davis (AL)
Davis (CA)
Davis (TN)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Donnelly (IN)
Doyle
Duncan
Edwards (TX)
Ehlers
Ellison
Ellsworth
Engel
Etheridge
Farr
Fattah
Filner
Foster
Frank (MA)
Garamendi
Giffords
Gonzalez
Gordon (TN)
Grayson
Green, Gene
Gutierrez
Hall (NY)
Halvorson
Hare
Harman
Heinrich
Herseth Sandlin
Higgins
Hill
Himes
Hinchey
Hinojosa
Hirono
Hodes
Holden
Holt
Honda
Hoyer
Inslee
Israel
Kagen
Kanjorski
Kaptur
Kennedy
Kildee
Kilroy
Kissell
Klein (FL)
Kosmas
Kratovil
Kucinich
Langevin
Larsen (WA)
Larson (CT)
Levin
Lewis (GA)
Lipinski
Loebsack
Lofgren, Zoe
Lowey
Lujan
Lynch
Maffei
Maloney
Markey (CO)
Markey (MA)
Marshall
Matheson
Matsui
McCarthy (NY)
McCollum
McDermott
McGovern
McIntyre
McMahon
McNerney
Meek (FL)
Meeks (NY)
Melancon
Michaud
Miller (NC)
Miller, George
Minnick
Mollohan
Moore (KS)
Moran (VA)
Murphy (CT)
Murphy (NY)
Murphy, Patrick
Murphy, Tim
Nadler (NY)
Napolitano
Neal (MA)
Nye
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pelosi
Perlmutter
Peters
Peterson
Pingree (ME)
Pomeroy
Price (NC)
Quigley
Rahall
Rangel
Reyes
Rodriguez
Ross
Rothman (NJ)
Roybal-Allard
Ruppersberger
Ryan (OH)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sarbanes
Schakowsky
Schauer
Schiff
Scott (GA)
Scott (VA)
Serrano
Sestak
Shea-Porter
Sherman
Shuler
Sires
Skelton
Slaughter
Smith (WA)
Snyder
Space
Speier
Spratt
Stark
Stupak
Sutton
Tanner
Taylor
Teague
Thompson (CA)
Tierney
Titus
Tonko
Tsongas
Van Hollen
Velazquez
Walz
Wasserman Schultz
Watson
Waxman
Weiner
Welch
Wilson (OH)
Woolsey
Wu
Yarmuth
Young (AK)
NAYS--201
Aderholt
Akin
Alexander
Austria
Bachmann
Bachus
Baird
Barrett (SC)
Bartlett
Barton (TX)
Biggert
Bilbray
Bilirakis
Bishop (UT)
Blackburn
Blunt
Boehner
Bonner
Bono Mack
Boozman
Boustany
Brady (TX)
Broun (GA)
Brown (SC)
Brown, Corrine
Brown-Waite, Ginny
Buchanan
Burgess
Burton (IN)
Buyer
Calvert
Cantor
Capito
Carter
Cassidy
Castle
Chaffetz
Clarke
Clay
Cleaver
Coble
Coffman (CO)
Cole
Conaway
Conyers
Crenshaw
Culberson
Davis (IL)
Davis (KY)
Deal (GA)
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Doggett
Dreier
Driehaus
Edwards (MD)
Emerson
Flake
Fleming
Forbes
Fortenberry
Foxx
Franks (AZ)
Frelinghuysen
Fudge
Gallegly
Garrett (NJ)
Gerlach
Gingrey (GA)
Gohmert
Goodlatte
Granger
Graves
Green, Al
Griffith
Grijalva
Guthrie
Hall (TX)
Harper
Hastings (FL)
Hastings (WA)
Heller
Hensarling
Herger
Hunter
Inglis
Issa
Jackson (IL)
Jackson Lee (TX)
Jenkins
Johnson (GA)
Johnson (IL)
Johnson, E. B.
Johnson, Sam
Jones
Kilpatrick (MI)
King (IA)
King (NY)
Kingston
Kirk
Kirkpatrick (AZ)
Kline (MN)
Lamborn
Lance
Latham
LaTourette
Latta
Lee (CA)
Lee (NY)
Lewis (CA)
LoBiondo
Lucas
Luetkemeyer
Lummis
Lungren, Daniel E.
Mack
Manzullo
Marchant
McCarthy (CA)
McCaul
McClintock
McCotter
McHenry
McKeon
McMorris Rodgers
Mica
Miller (FL)
Miller (MI)
Miller, Gary
Mitchell
Moore (WI)
Moran (KS)
Myrick
Neugebauer
Nunes
Olson
Pastor (AZ)
Paul
Paulsen
Payne
Pence
Perriello
Petri
Pitts
Platts
Poe (TX)
Polis (CO)
Posey
Price (GA)
Putnam
Radanovich
Rehberg
Reichert
Richardson
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rooney
Ros-Lehtinen
Roskam
Royce
Rush
Ryan (WI)
Scalise
Schmidt
Schock
Schrader
Sensenbrenner
Sessions
Shadegg
Shimkus
Shuster
Simpson
Smith (NE)
Smith (NJ)
Smith (TX)
Souder
Stearns
Sullivan
Terry
Thompson (MS)
Thompson (PA)
Thornberry
Tiberi
Towns
Turner
Upton
Visclosky
Walden
Wamp
Waters
Watt
Westmoreland
Whitfield
Wilson (SC)
Wittman
Wolf
Young (FL)
NOT VOTING--14
Bean
Campbell
Capps
Crowley
Dahlkemper
Eshoo
Fallin
Hoekstra
Jordan (OH)
Kind
Linder
Massa
Schwartz
Tiahrt
Announcement by the Speaker Pro Tempore
The SPEAKER pro tempore (during the vote). Members have 2 minutes
remaining in this vote.
{time} 1530
Messrs. WITTMAN, CARTER, and CONYERS changed their vote from ``yea''
to ``nay.''
So the motion was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
Stated for:
Mrs. CAPPS. Madam Speaker, on rollcall No. 90, had I been present, I
would have voted ``yes.''
Ms. SCHWARTZ. Madam Speaker, on rollcall No. 90, had I been present,
I would have voted ``yes.''
Mr. KIND. Madam Speaker, I was unable to have my vote recorded on the
House floor during the vote on H.R. 2847 on Thursday, March 4, 2010
because I was detained due to a meeting with the President of the
United States. Had I been present, I would have voted in favor of H.R.
2847 (Roll No. 90).
Stated against:
Ms. BEAN. Madam Speaker, I was inadvertently detained and I was
unable to cast a vote on March 4, 2010. If I had been present I would
have cast the following vote:
Rollcall 90--On motion to Concur in the Senate Amendments with an
Amendment to H.R. 2847: ``No.''
____________________