[Congressional Record Volume 156, Number 156 (Thursday, December 2, 2010)]
[Senate]
[Pages S8401-S8441]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4726. Mr. DURBIN (for Mr. Sessions (for himself and Mr. Leahy)) 
submitted an amendment intended to be proposed by Mr. Durbin to the 
bill H.R. 1107, to enact certain laws relating to public contracts as 
title 41, United States Code, ``Public Contracts''; as follows:

       On page 2, in the item related to chapter 35 in the 
     subtitle analysis, strike
       ``and''
       and insert
       ``or''
       On page 7, strike lines 14 through 20 and insert ``In this 
     subtitle, the term `supplies' has the same meaning as the 
     terms `item' and `item of supply' ''.
       On page 9, line 20, strike ``suppport'' and insert 
     ``support''.
       On page 25, lines 11 and 12, strike ``under section 5376 of 
     title 5'' and insert ``for level IV of the Executive 
     Schedule''.
       On page 48, line 34, strike ``employee from State or local 
     governments'' and insert ``individual''.
       On page 55, line 36, strike ``$2,500'' and insert 
     ``$3,000''.
       On page 56, line 15, strike ``$2,500'' and insert 
     ``$3,000''.
       On page 56, line 19, strike ``$2,500'' and insert 
     ``$3,000''.
       On page 77, line 1, strike ``his representatives'' and 
     insert ``representatives of the Comptroller General''.
       On page 93, lines 18 and 19, strike ``under section 5376 of 
     title 5'' and insert ``for level IV of the Executive 
     Schedule''.
       On page 110, line 21, strike ``AND'' and insert ``OR''.
       Beginning on page 131, strike line 8 and all that follows 
     through page 132, line 19, and insert the following:
       (c) Contract Period.--The period of a task order contract 
     entered into under this section, including all periods of 
     extensions of the contract under options, modifications, or 
     otherwise, may not exceed 5 years unless a longer period is 
     specifically authorized in a law that is applicable to the 
     contract.
       On page 185, line 39, strike ``amount'' and insert 
     ``amounts''.
       On page 185, line 40, strike ``amount'' and insert 
     ``amounts''.
       On page 186, line 1, strike ``amount'' and insert 
     ``amounts''.
       On page 201, line 13, strike ``under section 5376 of title 
     5'' and insert ``for level IV of the Executive Schedule''.
       On page 204, between lines 10 and 11, insert the following:
       (3) Person.--The term ``person'' means a corporation, 
     partnership, business association of any kind, trust, joint-
     stock company, or individual.
       On page 204, line 11, strike ``(3)'' and insert ``(4)''.
       On page 204, line 14, strike ``(4)'' and insert ``(5)''.
       On page 204, line 17, strike ``(5)'' and insert ``(6)''.
       On page 204, line 20, strike ``(6)'' and insert ``(7)''.
       On page 204, line 24, strike ``(7)'' and insert ``(8)''.
       On page 204, line 31, strike ``(8)'' and insert ``(9)''.
       On page 208, line 6, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 209, line 3, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 213, line 36, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 213, line 39, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 214, line 8, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 214, line 13, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 214, line 16, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 214, line 19, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 214, line 24, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 214, line 27, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 214, line 39, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 215, line 3, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 215, line 6, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 215, line 10, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 215, line 13, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 215, line 16, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 215, line 19, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 217, line 28, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 219, line 30, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 219, line 33, strike ``(except section 3302)'' and 
     insert ``(except sections 3302, 3501(b), 3509, 3906, 4710, 
     and 4711)''.
       On page 219, line 38, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 220, line 5, insert ``(Except Sections 1704 and 
     2303)'' after ``Division B''.
       On page 220, line 8, insert ``(except sections 1704 and 
     2303)'' after ``division B''.
       On page 220, line 13, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 220, line 16, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 220, line 18, insert ``(except sections 1704 and 
     2303)'' after ``division B''.
       On page 220, line 36, insert ``(except sections 1704 and 
     2303)'' after ``division B''.
       On page 221, line 5, insert ``(except sections 1704 and 
     2303)'' after ``division B''.
       On page 221, line 13, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 221, line 16, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 221, line 26, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.

[[Page S8402]]

       On page 221, line 29, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 222, line 18, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 222, line 22, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 222, line 37, insert ``(except sections 3302, 
     3501(b), 3509, 3906, 4710, and 4711)'' after ``division C''.
       On page 223, line 25, insert ``(except sections 1704 and 
     2303)'' after ``division b''.
       On page 236, strike ``2006'' in the column relating to 
     ``Date''.
       On page 236, strike the item related to Public Law 109-364.
                                 ______
                                 
  SA 4727. Mr. BAUCUS (for Mr. Reid (for himself, Mr. Rockefeller, Mr. 
Kerry, Mr. Carper, Ms. Stabenow, Mr. Schumer, and Mr. Menendez)) 
proposed an amendment to the bill H.R. 4853, to amend the Internal 
Revenue Code of 1986 to extend the funding and expenditure authority of 
the Airport and Airway Trust Fund, to amend title 49, United States 
Code, to extend authorizations for the airport improvement program, and 
for other purposes; as follows:

       In lieu of the matter proposed to be inserted, by the House 
     amendment insert the following:

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

       (a) Short Title.--This Act may be cited as the ``Middle 
     Class Tax Cut Act of 2010''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

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

               TITLE I--PERMANENT MIDDLE CLASS TAX RELIEF

Sec. 101. Repeal of sunset on certain individual income tax rate 
              relief.
Sec. 102. Reduced rates on capital gains and dividends made permanent.
Sec. 103. Repeal of sunset on expansion of child tax credit.
Sec. 104. Repeal of sunset on marriage penalty relief.
Sec. 105. Repeal of sunset on expansion of dependent care credit.
Sec. 106. Repeal of sunset on expansion of adoption credit and adoption 
              assistance programs.
Sec. 107. Repeal of sunset on employer-provided child care credit.
Sec. 108. Repeal of sunset on expansion of earned income tax credit.

                TITLE II--PERMANENT EDUCATION TAX RELIEF

Sec. 201. Repeal of sunset on education individual retirement accounts.
Sec. 202. Repeal of sunset on employer-provided educational assistance.
Sec. 203. Repeal of sunset on student loan interest deduction.
Sec. 204. Repeal of sunset on exclusion of certain scholarships.
Sec. 205. Repeal of sunset on arbitrage rebate exception for 
              governmental bonds.
Sec. 206. Repeal of sunset on treatment of qualified public educational 
              facility bonds.
Sec. 207. Repeal of sunset on American Opportunity Tax Credit.
Sec. 208. Repeal of sunset on allowance of computer technology and 
              equipment as a qualified higher education expense for 
              section 529 accounts.

                 TITLE III--PERMANENT ESTATE TAX RELIEF

Sec. 301. Repeal of EGTRRA sunset.
Sec. 302. Reinstatement of estate tax; repeal of carryover basis.
Sec. 303. Modifications to estate, gift, and generation-skipping 
              transfer taxes.
Sec. 304. Applicable exclusion amount increased by unused exclusion 
              amount of deceased spouse.
Sec. 305. Exclusion from gross estate of certain farmland so long as 
              farmland use by family continues.
Sec. 306. Increase in limitations on the amount excluded from the gross 
              estate with respect to land subject to a qualified 
              conservation easement.
Sec. 307. Modification of rules for value of certain farm, etc., real 
              property.
Sec. 308. Required minimum 10-year term, etc., for grantor retained 
              annuity trusts.
Sec. 309. Consistent basis reporting between estate and person 
              acquiring property from decedent.

             TITLE IV--PERMANENT SMALL BUSINESS TAX RELIEF

Sec. 401. Repeal of sunset on increased limitations on small business 
              expensing.

                TITLE V--ALTERNATIVE MINIMUM TAX RELIEF

Sec. 501. Extension of increased alternative minimum tax exemption 
              amount.
Sec. 502. Extension of alternative minimum tax relief for nonrefundable 
              personal credits.

  TITLE VI--TEMPORARY EXTENSION OF CERTAIN PROVISIONS EXPIRING IN 2009

                 Subtitle A--Infrastructure Incentives

Sec. 601. Extension of Build America Bonds.
Sec. 602. Exempt-facility bonds for sewage and water supply facilities.
Sec. 603. Extension of exemption from alternative minimum tax treatment 
              for certain tax-exempt bonds.
Sec. 604. Extension and additional allocations of recovery zone bond 
              authority.
Sec. 605. Allowance of new markets tax credit against alternative 
              minimum tax.
Sec. 606. Extension of tax-exempt eligibility for loans guaranteed by 
              Federal home loan banks.
Sec. 607. Extension of temporary small issuer rules for allocation of 
              tax-exempt interest expense by financial institutions.

                           Subtitle B--Energy

Sec. 611. Alternative motor vehicle credit for new qualified hybrid 
              motor vehicles other than passenger automobiles and light 
              trucks.
Sec. 612. Incentives for biodiesel and renewable diesel.
Sec. 613. Credit for electricity produced at certain open-loop biomass 
              facilities.
Sec. 614. Credit for steel industry fuel.
Sec. 615. Credit for producing fuel from coke or coke gas.
Sec. 616. New energy efficient home credit.
Sec. 617. Excise tax credits and outlay payments for alternative fuel 
              and alternative fuel mixtures.
Sec. 618. Special rule for sales or dispositions to implement FERC or 
              State electric restructuring policy for qualified 
              electric utilities.
Sec. 619. Suspension of limitation on percentage depletion for oil and 
              gas from marginal wells.
Sec. 620. Credit for nonbusiness energy property.

                   Subtitle C--Individual Tax Relief

                    PART I--Miscellaneous Provisions

Sec. 631. Deduction for certain expenses of elementary and secondary 
              school teachers.
Sec. 632. Additional standard deduction for State and local real 
              property taxes.
Sec. 633. Deduction of State and local sales taxes.
Sec. 634. Contributions of capital gain real property made for 
              conservation purposes.
Sec. 635. Above-the-line deduction for qualified tuition and related 
              expenses.
Sec. 636. Tax-free distributions from individual retirement plans for 
              charitable purposes.
Sec. 637. Look-thru of certain regulated investment company stock in 
              determining gross estate of nonresidents.

                  PART II--Low-income Housing Credits

Sec. 641. Election for direct payment of low-income housing credit for 
              2010.
Sec. 642. Low-income housing grant election.

                    Subtitle D--Business Tax Relief

Sec. 651. Research credit.
Sec. 652. Indian employment tax credit.
Sec. 653. New markets tax credit.
Sec. 654. Railroad track maintenance credit.
Sec. 655. Mine rescue team training credit.
Sec. 656. Employer wage credit for employees who are active duty 
              members of the uniformed services.
Sec. 657. 5-year depreciation for farming business machinery and 
              equipment.
Sec. 658. 15-year straight-line cost recovery for qualified leasehold 
              improvements, qualified restaurant buildings and 
              improvements, and qualified retail improvements.
Sec. 659. 7-year recovery period for motorsports entertainment 
              complexes.
Sec. 660. Accelerated depreciation for business property on an Indian 
              reservation.
Sec. 661. Enhanced charitable deduction for contributions of food 
              inventory.
Sec. 662. Enhanced charitable deduction for contributions of book 
              inventories to public schools.
Sec. 663. Enhanced charitable deduction for corporate contributions of 
              computer inventory for educational purposes.
Sec. 664. Election to expense mine safety equipment.
Sec. 665. Special expensing rules for certain film and television 
              productions.
Sec. 666. Expensing of environmental remediation costs.
Sec. 667. Deduction allowable with respect to income attributable to 
              domestic production activities in Puerto Rico.
Sec. 668. Modification of tax treatment of certain payments to 
              controlling exempt organizations.
Sec. 669. Exclusion of gain or loss on sale or exchange of certain 
              brownfield sites from unrelated business income.

[[Page S8403]]

Sec. 670. Timber REIT modernization.
Sec. 671. Treatment of certain dividends of regulated investment 
              companies.
Sec. 672. RIC qualified investment entity treatment under FIRPTA.
Sec. 673. Exceptions for active financing income.
Sec. 674. Look-thru treatment of payments between related controlled 
              foreign corporations under foreign personal holding 
              company rules.
Sec. 675. Basis adjustment to stock of S corps making charitable 
              contributions of property.
Sec. 676. Empowerment zone tax incentives.
Sec. 677. Tax incentives for investment in the District of Columbia.
Sec. 678. Renewal community tax incentives.
Sec. 679. Temporary increase in limit on cover over of rum excise taxes 
              to Puerto Rico and the Virgin Islands.
Sec. 680. American Samoa economic development credit.
Sec. 681. Election to temporarily utilize unused AMT credits determined 
              by domestic investment.
Sec. 682. Reduction in corporate rate for qualified timber gain.
Sec. 683. Study of extended tax expenditures.

            Subtitle E--Temporary Disaster Relief Provisions

                    PART I--National Disaster Relief

Sec. 691. Waiver of certain mortgage revenue bond requirements.
Sec. 692. Losses attributable to federally declared disasters.
Sec. 693. Special depreciation allowance for qualified disaster 
              property.
Sec. 694. Net operating losses attributable to federally declared 
              disasters.
Sec. 695. Expensing of qualified disaster expenses.

                      PART II--Regional Provisions

                    subpart a--new york liberty zone

Sec. 696. Special depreciation allowance for nonresidential and 
              residential real property.
Sec. 697. Tax-exempt bond financing.

                           subpart b--go zone

Sec. 698. Increase in rehabilitation credit.
Sec. 699. Work opportunity tax credit with respect to certain 
              individuals affected by Hurricane Katrina for employers 
              inside disaster areas.
Sec. 700. Extension of low-income housing credit rules for buildings in 
              GO zones.

    TITLE VII--TECHNICAL CORRECTIONS TO PENSION FUNDING LEGISLATION

Sec. 701. Definition of eligible plan year.
Sec. 702. Eligible charity plans.
Sec. 703. Suspension of certain funding level limitations.
Sec. 704. Optional use of 30-year amortization periods.

TITLE VIII--TEMPORARY EXTENSION OF CERTAIN PROVISIONS ENDING IN 2010 OR 
                                  2011

                   Subtitle A--Unemployment Benefits

Sec. 801. Extension of unemployment insurance provisions.
Sec. 802. Temporary modification of indicators under the extended 
              benefit program.

                       Subtitle B--Small Business

Sec. 811. Temporary exclusion of 100 percent of gain on certain small 
              business stock.
Sec. 812. General business credits of eligible small businesses carried 
              back 5 years.
Sec. 813. General business credits of eligible small businesses not 
              subject to alternative minimum tax.
Sec. 814. Extension of increase in amount allowed as deduction for 
              start-up expenditures.
Sec. 815. Extension of deduction for health insurance costs in 
              computing self-employment taxes.

                           Subtitle C--Energy

Sec. 821. Alternative fuel vehicle refueling property.
Sec. 822. Elective payment for specified energy property.
Sec. 823. Qualifying advanced energy project credit.
Sec. 824. New clean renewable energy bonds.
Sec. 825. Alternative motor vehicle credit for new qualified 
              alternative fuel vehicles.
Sec. 826. Extension of provisions related to alcohol used as fuel.
Sec. 827. Energy efficient appliance credit.
Sec. 828. Reduced depreciation period for natural gas distribution 
              facilities.

                         Subtitle D--Education

Sec. 831. Qualified school construction bonds.

             Subtitle E--Other Employee and Housing Relief

Sec. 841. Making work pay credit.
Sec. 842. Work opportunity credit.
Sec. 843. Exclusion from income for benefits provided to volunteer 
              firefighters and emergency medical responders.
Sec. 844. Parity for exclusion from income for employer-provided mass 
              transit and parking benefits.
Sec. 845. Qualified mortgage bonds for refinancing of subprime loans.

                       TITLE IX--OTHER PROVISIONS

Sec. 901. Repeal of expansion of information reporting requirements.
Sec. 902. Repeal of sunset on tax treatment of Alaska Native Settlement 
              Trusts.
Sec. 903. Repeal of sunset on expansion of authority to postpone 
              certain tax-related deadlines.
Sec. 904. Refunds disregarded in the administration of Federal programs 
              and federally assisted programs.
Sec. 905. Treatment of securities of a controlled corporation exchanged 
              for assets in certain reorganizations.

                     TITLE X--BUDGETARY PROVISIONS

Sec. 1001. Determination of budgetary effects.
Sec. 1002. Emergency designations.

               TITLE I--PERMANENT MIDDLE CLASS TAX RELIEF

     SEC. 101. REPEAL OF SUNSET ON CERTAIN INDIVIDUAL INCOME TAX 
                   RATE RELIEF.

       (a) Individual Income Tax Rates.--
       (1) Repeal of sunset.--Section 901 of the Economic Growth 
     and Tax Relief Reconciliation Act of 2001 shall not apply to 
     the amendments made by section 101 of such Act.
       (2) 25- and 28- percent rate brackets made permanent.--
     Paragraph (2) of section 1(i) is amended to read as follows:
       ``(2) 25- and 28- percent rate brackets.--The tables under 
     subsections (a), (b), (c), (d), and (e) shall be applied--
       ``(A) by substituting `25%' for `28%' each place it appears 
     (before the application of subparagraph (B)), and
       ``(B) by substituting `28%' for `31%' each place it 
     appears.''.
       (3) 33-percent rate bracket.--Subsection (i) of section 1 
     is amended by redesignating paragraph (3) as paragraph (4) 
     and by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) 33-percent rate bracket.--
       ``(A) In general.--In the case of taxable years beginning 
     after December 31, 2010--
       ``(i) the rate of tax under subsections (a), (b), (c), and 
     (d) on a taxpayer's taxable income in the fourth rate bracket 
     shall be 33 percent to the extent such income does not exceed 
     an amount equal to the excess of--

       ``(I) the applicable amount, over
       ``(II) the dollar amount at which such bracket begins, and

       ``(ii) the 36 percent rate of tax under such subsections 
     shall apply only to the taxpayer's taxable income in such 
     bracket in excess of the amount to which clause (i) applies.
       ``(B) Applicable amount.--For purposes of this paragraph, 
     the term `applicable amount' means the excess of--
       ``(i) the applicable threshold, over
       ``(ii) the sum of the following amounts in effect for the 
     taxable year:

       ``(I) the basic standard deduction (within the meaning of 
     section 63(c)(2)), and
       ``(II) the exemption amount (within the meaning of section 
     151(d)(1) (or, in the case of subsection (a), 2 such 
     exemption amounts).

       ``(C) Applicable threshold.--For purposes of this 
     paragraph, the term `applicable threshold' means--
       ``(i) $250,000 in the case of subsection (a),
       ``(ii) $200,000 in the case of subsections (b) and (c), and
       ``(iii) \1/2\ the amount applicable under clause (i) (after 
     adjustment, if any, under subparagraph (E)) in the case of 
     subsection (d).
       ``(D) Fourth rate bracket.--For purposes of this paragraph, 
     the term `fourth rate bracket' means the bracket which would 
     (determined without regard to this paragraph) be the 36-
     percent rate bracket.
       ``(E) Inflation adjustment.--For purposes of this 
     paragraph, a rule similar to the rule of paragraph (1)(C) 
     shall apply with respect to taxable years beginning in 
     calendar years after 2010, applied by substituting `2008' for 
     `1992' in subsection (f)(3)(B).''.
       (b) Phaseout of Personal Exemptions and Itemized 
     Deductions.--
       (1) Overall limitation on itemized deductions.--Section 68 
     is amended--
       (A) by striking ``the applicable amount'' the first place 
     it appears in subsection (a) and inserting ``the applicable 
     threshold in effect under section 1(i)(3)'',
       (B) by striking ``the applicable amount'' in subsection 
     (a)(1) and inserting ``such applicable threshold'',
       (C) by striking subsection (b) and redesignating 
     subsections (c), (d), and (e) as subsections (b), (c), and 
     (d), respectively, and
       (D) by striking subsections (f) and (g).
       (2) Phaseout of deductions for personal exemptions.--
       (A) In general.--Paragraph (3) of section 151(d) is 
     amended--
       (i) by striking ``the threshold amount'' in subparagraphs 
     (A) and (B) and inserting ``the applicable threshold in 
     effect under section 1(i)(3)'',
       (ii) by striking subparagraph (C) and redesignating 
     subparagraph (D) as subparagraph (C), and
       (iii) by striking subparagraphs (E) and (F).
       (B) Conforming amendments.--Paragraph (4) of section 151(d) 
     is amended--
       (i) by striking subparagraph (B),
       (ii) by redesignating clauses (i) and (ii) of subparagraph 
     (A) as subparagraphs (A) and

[[Page S8404]]

     (B), respectively, and by indenting such subparagraphs (as so 
     redesignated) accordingly, and
       (iii) by striking all that precedes ``in a calendar year 
     after 1989,'' and inserting the following:
       ``(4) Inflation adjustment.--In the case of any taxable 
     year beginning''.
       (3) Nonapplication of egtrra sunset.--Section 901 of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 
     shall not apply to any amendment made by section 102 or 103 
     of such Act.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 102. REDUCED RATES ON CAPITAL GAINS AND DIVIDENDS MADE 
                   PERMANENT.

       (a) In General.--Section 303 of the Jobs and Growth Tax 
     Relief Reconciliation Act of 2003 (relating to sunset of 
     title) is hereby repealed.
       (b) 20-percent Capital Gains Rate for Certain High Income 
     Individuals.--
       (1) In general.--Paragraph (1) of section 1(h) is amended 
     by striking subparagraph (C), by redesignating subparagraphs 
     (D) and (E) as subparagraphs (E) and (F) and by inserting 
     after subparagraph (B) the following new subparagraphs:
       ``(C) 15 percent of the lesser of--
       ``(i) so much of the adjusted net capital gain (or, if 
     less, taxable income) as exceeds the amount on which a tax is 
     determined under subparagraph (B), or
       ``(ii) the excess (if any) of--

       ``(I) the amount of taxable income which would (without 
     regard to this paragraph) be taxed at a rate below 36 
     percent, over
       ``(II) the sum of the amounts on which a tax is determined 
     under subparagraphs (A) and (B),

       ``(D) 20 percent of the adjusted net capital gain (or, if 
     less, taxable income) in excess of the sum of the amounts on 
     which tax is determined under subparagraphs (B) and (C),''.
       (2) Minimum tax.--Paragraph (3) of section 55(b) is amended 
     by striking subparagraph (C), by redesignating subparagraph 
     (D) as subparagraph (E), and by inserting after subparagraph 
     (B) the following new subparagraphs:
       ``(C) 15 percent of the lesser of--
       ``(i) so much of the adjusted net capital gain (or, if 
     less, taxable excess) as exceeds the amount on which tax is 
     determined under subparagraph (B), or
       ``(ii) the excess described in section 1(h)(1)(C)(ii), plus
       ``(D) 20 percent of the adjusted net capital gain (or, if 
     less, taxable excess) in excess of the sum of the amounts on 
     which tax is determined under subparagraphs (B) and (C), 
     plus''.
       (c) Conforming Amendments.--
       (1) The following provisions are each amended by striking 
     ``15 percent'' and inserting ``20 percent'':
       (A) Section 531.
       (B) Section 541.
       (C) Section 1445(e)(1).
       (D) The second sentence of section 7518(g)(6)(A).
       (E) Section 53511(f)(2) of title 46, United States Code.
       (2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by 
     striking ``5 percent (0 percent in the case of taxable years 
     beginning after 2007)'' and inserting ``0 percent''.
       (3) Section 1445(e)(6) is amended by striking ``15 percent 
     (20 percent in the case of taxable years beginning after 
     December 31, 2010)'' and inserting ``20 percent''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsections (b) and (c) shall apply to 
     taxable years beginning after December 31, 2010.
       (2) Withholding.--The amendments made by paragraphs (1)(C) 
     and (3) of subsection (c) shall apply to amounts paid on or 
     after January 1, 2011.

     SEC. 103. REPEAL OF SUNSET ON EXPANSION OF CHILD TAX CREDIT.

       (a) Repeal of Sunset on Modifications to Credit.--Title IX 
     of the Economic Growth and Tax Relief Reconciliation Act of 
     2001 (relating to sunset of provisions of such Act) shall not 
     apply to sections 201 (relating to modifications to child tax 
     credit) and 203 (relating to refunds disregarded in the 
     administration of Federal programs and federally assisted 
     programs) of such Act.
       (b) Permanent Increase in Refundable Portion of Credit.--
       (1) In general.--Clause (i) of section 24(d)(1)(B) is 
     amended by striking ``$10,000'' and inserting ``$3,000''.
       (2) Conforming amendment.--Subsection (d) of section 24 is 
     amended by striking paragraph (4).
       (3) Elimination of inflation adjustment.--Subsection (d) of 
     section 24 is amended by striking paragraph (3).
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 104. REPEAL OF SUNSET ON MARRIAGE PENALTY RELIEF.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to sections 301, 302, and 303(a) 
     of such Act (relating to marriage penalty relief).

     SEC. 105. REPEAL OF SUNSET ON EXPANSION OF DEPENDENT CARE 
                   CREDIT.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 204 of such Act 
     (relating to dependent care credit).

     SEC. 106. REPEAL OF SUNSET ON EXPANSION OF ADOPTION CREDIT 
                   AND ADOPTION ASSISTANCE PROGRAMS.

       (a) Repeal of EGTRRA Sunset.--Title IX of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 (relating to 
     sunset of provisions of such Act) shall not apply to section 
     202 of such Act (relating to expansion of adoption credit and 
     adoption assistance programs).
       (b) Technical Amendments Relating to Expansion Under 
     PPACA.--
       (1) Repeal of sunset.--Notwithstanding section 10909(c) of 
     the Patient Protection and Affordable Care Act, title IX of 
     the Economic Growth and Tax Relief Reconciliation Act of 2001 
     (relating to sunset of provisions of such Act) shall not 
     apply to the amendments made by section 10909 of the Patient 
     Protection and Affordable Care Act.
       (2) Codification of sunset.--
       (A) Refundable credit.--Section 36C is amended by adding at 
     the end the following new subsection:
       ``(j) Termination.--This section shall not apply to 
     expenses paid in taxable years beginning after December 31, 
     2011.''.
       (B) Adoption assistance programs.--
       (i) In general.--Section 137(b) is amended by adding at the 
     end the following new paragraph:
       ``(4) Special rule for 2010 and 2011.--In the case of any 
     taxable year beginning in 2010 or 2011, paragraph (1) and 
     subsection (a)(2) shall each be applied by substituting 
     `$13,170' for `$10,000'.''.
       (ii) Inflation adjustment for years to which special rule 
     applies.--Paragraph (1) of section 137(f) is amended--

       (I) by inserting ``for 2011'' after ``limitations'' in the 
     heading, and
       (II) by striking ``after December 31, 2010, each of the 
     dollar amounts in subsections (a)(2) and (b)(1)'' inserting 
     ``after December 31, 2010, and before January 1, 2012, the 
     $13,170 dollar amount in subsection (b)(4)''.

       (iii) Inflation adjustment for other years.--Paragraph (2) 
     of section 137(f) is amended--

       (I) by inserting ``and dollar limitations for other years'' 
     after ``limitation'' in the heading,
       (II) by striking ``the dollar amount in subsection 
     (b)(2)(A)'' and inserting ``each of the dollar amounts in 
     subsection (a)(2) and paragraphs (1) and (2)(A) of subsection 
     (b)'', and
       (III) by adding at the end the following new sentence: 
     ``This paragraph shall not apply to the dollar amounts in 
     subsections (a)(2) and (b)(1) for any taxable year to which 
     paragraph (1) applies.''.

       (iv) Conforming amendments.--Subsections (a)(2) and (b)(1) 
     of section 137 are each amended by striking ``$13,170'' each 
     place it appears in the text and in the heading and inserting 
     ``$10,000''.
       (C) Effective date.--The amendments made by this paragraph 
     shall take effect as if included in section 10909 of the 
     Patient Protection and Affordable Care Act.
       (3) Non-refundable adoption credit allowed for years to 
     which refundable credit not applicable.--
       (A) In general.--Part IV of subchapter A of chapter 1 is 
     amended by inserting after section 22 the following new 
     section:

     ``SEC. 23. ADOPTION EXPENSES.

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter the amount of the qualified adoption expenses paid or 
     incurred by the taxpayer.
       ``(2) Year credit allowed.--The credit under paragraph (1) 
     with respect to any expense shall be allowed--
       ``(A) in the case of any expense paid or incurred before 
     the taxable year in which such adoption becomes final, for 
     the taxable year following the taxable year during which such 
     expense is paid or incurred, and
       ``(B) in the case of an expense paid or incurred during or 
     after the taxable year in which such adoption becomes final, 
     for the taxable year in which such expense is paid or 
     incurred.
       ``(3) $10,000 credit for adoption of child with special 
     needs regardless of expenses.--In the case of an adoption of 
     a child with special needs which becomes final during a 
     taxable year, the taxpayer shall be treated as having paid 
     during such year qualified adoption expenses with respect to 
     such adoption in an amount equal to the excess (if any) of 
     $10,000 over the aggregate qualified adoption expenses 
     actually paid or incurred by the taxpayer with respect to 
     such adoption during such taxable year and all prior taxable 
     years.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--The aggregate amount of qualified 
     adoption expenses which may be taken into account under 
     subsection (a) for all taxable years with respect to the 
     adoption of a child by the taxpayer shall not exceed $10,000.
       ``(2) Income limitation.--
       ``(A) In general.--The amount allowable as a credit under 
     subsection (a) for any taxable year (determined without 
     regard to subsection (c)) shall be reduced (but not below 
     zero) by an amount which bears the same ratio to the amount 
     so allowable (determined without regard to this paragraph but 
     with regard to paragraph (1)) as--
       ``(i) the amount (if any) by which the taxpayer's adjusted 
     gross income exceeds $150,000, bears to
       ``(ii) $40,000.

[[Page S8405]]

       ``(B) Determination of adjusted gross income.--For purposes 
     of subparagraph (A), adjusted gross income shall be 
     determined without regard to sections 911, 931, and 933.
       ``(3) Denial of double benefit.--
       ``(A) In general.--No credit shall be allowed under 
     subsection (a) for any expense for which a deduction or 
     credit is allowed under any other provision of this chapter.
       ``(B) Grants.--No credit shall be allowed under subsection 
     (a) for any expense to the extent that funds for such expense 
     are received under any Federal, State, or local program.
       ``(4) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section and section 25D) and section 27 for 
     the taxable year.
       ``(c) Carryforward of Unused Credit.--
       ``(1) Rule for years in which all personal credits allowed 
     against regular and alternative minimum tax.--In the case of 
     a taxable year to which section 26(a)(2) applies, if the 
     credit allowable under subsection (a) for any taxable year 
     exceeds the limitation imposed by section 26(a)(2) for such 
     taxable year reduced by the sum of the credits allowable 
     under this subpart (other than this section and sections 25D 
     and 1400C), such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a) for such taxable year.
       ``(2) Rule for other years.--In the case of a taxable year 
     to which section 26(a)(2) does not apply, if the credit 
     allowable under subsection (a) for any taxable year exceeds 
     the limitation imposed by subsection (b)(4) for such taxable 
     year, such excess shall be carried to the succeeding taxable 
     year and added to the credit allowable under subsection (a) 
     for such taxable year.
       ``(3) Limitation.--No credit may be carried forward under 
     this subsection to a taxable year following the fifth taxable 
     year after the taxable year in which the credit arose. For 
     purposes of the preceding sentence, credits shall be treated 
     as used on a first-in first-out basis.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified adoption expenses.--The term `qualified 
     adoption expenses' means reasonable and necessary adoption 
     fees, court costs, attorney fees, and other expenses--
       ``(A) which are directly related to, and the principal 
     purpose of which is for, the legal adoption of an eligible 
     child by the taxpayer,
       ``(B) which are not incurred in violation of State or 
     Federal law or in carrying out any surrogate parenting 
     arrangement,
       ``(C) which are not expenses in connection with the 
     adoption by an individual of a child who is the child of such 
     individual's spouse, and
       ``(D) which are not reimbursed under an employer program or 
     otherwise.
       ``(2) Eligible child.--The term `eligible child' means any 
     individual who--
       ``(A) has not attained age 18, or
       ``(B) is physically or mentally incapable of caring for 
     himself.
       ``(3) Child with special needs.--The term `child with 
     special needs' means any child if--
       ``(A) a State has determined that the child cannot or 
     should not be returned to the home of his parents,
       ``(B) such State has determined that there exists with 
     respect to the child a specific factor or condition (such as 
     his ethnic background, age, or membership in a minority or 
     sibling group, or the presence of factors such as medical 
     conditions or physical, mental, or emotional handicaps) 
     because of which it is reasonable to conclude that such child 
     cannot be placed with adoptive parents without providing 
     adoption assistance, and
       ``(C) such child is a citizen or resident of the United 
     States (as defined in section 217(h)(3)).
       ``(e) Special Rules for Foreign Adoptions.--In the case of 
     an adoption of a child who is not a citizen or resident of 
     the United States (as defined in section 217(h)(3))--
       ``(1) subsection (a) shall not apply to any qualified 
     adoption expense with respect to such adoption unless such 
     adoption becomes final, and
       ``(2) any such expense which is paid or incurred before the 
     taxable year in which such adoption becomes final shall be 
     taken into account under this section as if such expense were 
     paid or incurred during such year.
       ``(f) Filing Requirements.--
       ``(1) Married couples must file joint returns.--Rules 
     similar to the rules of paragraphs (2), (3), and (4) of 
     section 21(e) shall apply for purposes of this section.
       ``(2) Taxpayer must include tin.--
       ``(A) In general.--No credit shall be allowed under this 
     section with respect to any eligible child unless the 
     taxpayer includes (if known) the name, age, and TIN of such 
     child on the return of tax for the taxable year.
       ``(B) Other methods.--The Secretary may, in lieu of the 
     information referred to in subparagraph (A), require other 
     information meeting the purposes of subparagraph (A), 
     including identification of an agent assisting with the 
     adoption.
       ``(g) Basis Adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this subsection) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(h) Adjustments for Inflation.--In the case of a taxable 
     year beginning after December 31, 2002, each of the dollar 
     amounts in subsections (a)(3) and paragraphs (1) and 
     (2)(A)(i) of subsection (b) shall be increased by an amount 
     equal to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2001' 
     for `calendar year 1992' in subparagraph (B) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $10, such amount shall be rounded to the 
     nearest multiple of $10.
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out this section 
     and section 137, including regulations which treat unmarried 
     individuals who pay or incur qualified adoption expenses with 
     respect to the same child as 1 taxpayer for purposes of 
     applying the dollar amounts in subsections (a)(3) and (b)(1) 
     of this section and in section 137(b)(1).
       ``(j) Applicability.--No credit shall be allowed under 
     subsection (a) for any taxable year in which a credit is 
     allowed under subpart C with respect to qualified adoption 
     expenses.''.
       (B) Conforming amendments.--
       (i) Section 24(b)(3)(B) is amended by inserting ``23,'' 
     before ``25A(i),''.
       (ii) Section 25(e)(1)(C) is amended--

       (I) by inserting ``23,'' before ``25D'' in clause (i), and
       (II) by inserting ``23,'' before ``24'' in clause (ii).

       (iii) Section 25A(i)(5)(B) is amended by striking ``25D'' 
     and inserting ``23, 25D,''.
       (iv) Section 25B(g)(2) is amended by inserting ``23,'' 
     before ``25A(i)''.
       (v) Section 26(a)(1) is amended by inserting ``23,'' before 
     ``24''.
       (vi) Section 30(c)(2)(B)(ii) is amended by striking ``25D'' 
     and inserting ``23, 25D,''.
       (vii) Section 30B(g)(2)(B)(ii) is amended by inserting 
     ``23,'' before ``25D''.
       (viii) Section 30D(c)(2)(B)(ii) is amended by striking 
     ``sections 25D and'' and inserting ``sections 23 and 25D''.
       (ix) Section 137 is amended by adding at the end the 
     following new subsection:
       ``(g) Treatment of References to Section 36C.--For purposes 
     of this section, in the case of any taxable year with respect 
     to which no credit is allowable under subpart C with respect 
     to qualified adoption expenses, any reference to section 36C 
     shall be treated as a reference to section 23.''.
       (x) Section 904(i) is amended by inserting ``23,'' before 
     ``24''.
       (xi) Section 1016(a)(26) is amended by striking ``36C(g)'' 
     and inserting ``23(g), 36C(g),''.
       (xii) Section 1400C(d)(2) is amended by inserting ``23,'' 
     before ``24''.
       (xiii) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 22 the following new item:

``Sec. 23. Adoption expenses.''.
       (C) Effective date.--The amendments made by this paragraph 
     shall take effect on the date of the enactment of this Act.

     SEC. 107. REPEAL OF SUNSET ON EMPLOYER-PROVIDED CHILD CARE 
                   CREDIT.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 205 of such Act 
     (relating to allowance of credit for employer expenses for 
     child care assistance).

     SEC. 108. REPEAL OF SUNSET ON EXPANSION OF EARNED INCOME TAX 
                   CREDIT.

       (a) Repeal of EGTRRA Sunset.--Title IX of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 (relating to 
     sunset of provisions of such Act) shall not apply to 
     subsections (b) through (h) of section 303 of such Act 
     (relating to earned income tax credit).
       (b) Increase in Credit Percentage for Families With 3 or 
     More Children.--Paragraph (1) of section 32(b) is amended by 
     striking subparagraphs (B) and (C) and inserting the 
     following new subparagraph:
       ``(B) Increased credit percentage for families with 3 or 
     more qualifying children.--In the case of an eligible 
     individual with 3 or more qualifying children, the table in 
     subparagraph (A) shall be applied by substituting `45' for 
     `40' in the second column thereof.''.
       (c) Joint Returns.--
       (1) In general.--Subparagraph (B) of section 32(b)(2) is 
     amended by striking ``increased by'' and all that follows and 
     inserting ``increased by $5,000.''
       (2) Inflation adjustments.--Clause (ii) of section 
     32(j)(1)(B) is amended--
       (A) by striking ``$3,000'' and inserting ``$5,000'', and
       (B) by striking ``calendar year 2007'' and inserting 
     ``calendar year 2008''.
       (d) Conforming Amendment.--Section 32(b) is amended by 
     striking paragraph (3).
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

[[Page S8406]]

                TITLE II--PERMANENT EDUCATION TAX RELIEF

     SEC. 201. REPEAL OF SUNSET ON EDUCATION INDIVIDUAL RETIREMENT 
                   ACCOUNTS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 401 of such Act 
     (relating to modifications to education individual retirement 
     accounts).

     SEC. 202. REPEAL OF SUNSET ON EMPLOYER-PROVIDED EDUCATIONAL 
                   ASSISTANCE.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 411 of such Act 
     (relating to extension of exclusion for employer-provided 
     educational assistance).

     SEC. 203. REPEAL OF SUNSET ON STUDENT LOAN INTEREST 
                   DEDUCTION.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 412 of such Act 
     (relating to elimination of 60-month limit and increase in 
     income limitation on student loan interest deduction).

     SEC. 204. REPEAL OF SUNSET ON EXCLUSION OF CERTAIN 
                   SCHOLARSHIPS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 413 of such Act 
     (relating to exclusion of certain amounts received under the 
     National Health Service Corps Scholarship Program and the F. 
     Edward Hebert Armed Forces Health Professions Scholarship and 
     Financial Assistance Program).

     SEC. 205. REPEAL OF SUNSET ON ARBITRAGE REBATE EXCEPTION FOR 
                   GOVERNMENTAL BONDS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 421 of such Act 
     (relating to additional increase in arbitrage rebate 
     exception for governmental bonds used to finance educational 
     facilities).

     SEC. 206. REPEAL OF SUNSET ON TREATMENT OF QUALIFIED PUBLIC 
                   EDUCATIONAL FACILITY BONDS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 422 of such Act 
     (relating to treatment of qualified public educational 
     facility bonds as exempt facility bonds.

     SEC. 207. REPEAL OF SUNSET ON AMERICAN OPPORTUNITY TAX 
                   CREDIT.

       (a) Permanent Extension of Credit.--Section 25A is 
     amended--
       (1) by striking ``$1,000'' each place it appears in 
     subsection (b)(1) and inserting ``$2,000'',
       (2) by striking ``50 percent'' in subsection (b)(1)(B) and 
     inserting ``25 percent'',
       (3) by striking ``2 taxable years'' in the heading of 
     subparagraph (A) of subsection (b)(2) and inserting ``4 
     taxable years'',
       (4) by striking ``2 prior taxable years'' in subsection 
     (b)(2)(A) and inserting ``4 prior taxable years'',
       (5) by striking ``2 years'' in the heading of subparagraph 
     (C) of subsection (b)(2) and inserting ``4 years'',
       (6) by striking ``first 2 years'' in subsection (b)(2)(C) 
     and inserting ``first 4 years'',
       (7) by striking ``tuition and fees'' in subparagraph (A) of 
     subsection (f)(1) and inserting ``tuition, fees, and course 
     materials'',
       (8) by striking paragraphs (1) and (2) of subsection (d) 
     and inserting the following new paragraphs:
       ``(1) American opportunity credit.--The amount which would 
     (but for this paragraph) be taken into account under 
     paragraph (1) of subsection (a) for the taxable year shall be 
     reduced (but not below zero) by the amount which bears the 
     same ratio to the amount which would be so taken into account 
     as--
       ``(A) the excess of--
       ``(i) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(ii) $80,000 ($160,000 in the case of a joint return), 
     bears to
       ``(B) $10,000 ($20,000 in the case of a joint return).
       ``(2) Lifetime learning credit.--The amount which would 
     (but for this paragraph) be taken into account under 
     paragraph (2) of subsection (a) for the taxable year shall be 
     reduced (but not below zero) by the amount which bears the 
     same ratio to the amount which would be so taken into account 
     as--
       ``(A) the excess of--
       ``(i) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(ii) $40,000 ($80,000 in the case of a joint return), 
     bears to
       ``(B) $10,000 ($20,000 in the case of a joint return).'',
       (9) by striking ``Dollar limitation on amount of credit'' 
     in the heading of paragraph (1) of subsection (h) and 
     inserting ``American opportunity credit'',
       (10) by striking ``2001'' in subsection (h)(1)(A) and 
     inserting ``2011'',
       (11) by striking ``the $1,000 amounts under subsection 
     (b)(1)'' in subsection (h)(1)(A) and inserting ``the dollar 
     amounts under subsections (b)(1) and (d)(1)'',
       (12) by striking ``calendar year 2000'' in subsection 
     (h)(1)(A)(ii) and inserting ``calendar year 2010'',
       (13) by striking ``If any amount'' and all that follows in 
     subparagraph (B) of subsection (h)(1) and inserting ``If any 
     amount under subsection (b)(1) as adjusted under subparagraph 
     (A) is not a multiple of $100, such amount shall be rounded 
     to the next lowest multiple of $100. If any amount under 
     subsection (d)(1) as adjusted under subparagraph (A) is not a 
     multiple of $1,000, such amount shall be rounded to the next 
     lowest multiple of $1,000.'',
       (14) by inserting ``of lifetime learning credit'' after 
     ``Income limits'' in the heading of paragraph (2) of 
     subsection (h),
       (15) by adding at the end of subsection (b) the following 
     new paragraphs:
       ``(4) Credit allowed against alternative minimum tax.--In 
     the case of a taxable year to which section 26(a)(2) does not 
     apply, so much of the credit allowed under subsection (a) as 
     is attributable to the American Opportunity Credit shall not 
     exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this subsection and sections 25D, 30, 30B, and 
     30D) and section 27 for the taxable year.
     Any reference in this section or section 24, 25, 25B, 26, 
     904, or 1400C to a credit allowable under this subsection 
     shall be treated as a reference to so much of the credit 
     allowable under subsection (a) as is attributable to the 
     American Opportunity Credit.
       ``(5) Portion of credit made refundable.--40 percent of so 
     much of the credit allowed under subsection (a) as is 
     attributable to the American Opportunity Credit (determined 
     after the application of subsection (d)(1) and without regard 
     to this paragraph and section 26(a)(2) or paragraph (4), as 
     the case may be) shall be treated as a credit allowable under 
     subpart C (and not allowed under subsection (a)). The 
     preceding sentence shall not apply to any taxpayer for any 
     taxable year if such taxpayer is a child to whom subsection 
     (g) of section 1 applies for such taxable year.'', and
       (16) by striking subsection (i) and redesignating 
     subsection (j) as subsection (i).
       (b) Hope Scholarship Credit Renamed American Opportunity 
     Credit.--
       (1) In general.--Section 25A, as amended by subsection (a), 
     is amended by striking ``Hope Scholarship'' each place it 
     appears in the text and in the headings and inserting 
     ``American Opportunity''.
       (2) Conforming amendments.--
       (A) The heading for section 25A is amendment by striking 
     ``HOPE'' and inserting ``AMERICAN OPPORTUNITY''.
       (B) The heading for clause (v) of section 529(c)(3)(B) is 
     amended by striking ``Hope'' and inserting ``American 
     opportunity''.
       (C) The heading for subparagraph (C) of section 530(d)(2) 
     is amended by striking ``Hope'' and inserting ``American 
     opportunity''.
       (D) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking ``Hope'' and inserting ``American 
     Opportunity''.
       (c) Conforming Amendments.--
       (1) Section 24(b)(3)(B) is amended by striking ``25A(i)'' 
     and inserting ``25A(b)''.
       (2) Section 25(e)(1)(C)(ii) is amended by striking 
     ``25A(i)'' and inserting ``25A(b)''.
       (3) Section 26(a)(1) is amended by striking ``25A(i)'' and 
     inserting ``25A(b)''.
       (4) Section 25B(g)(2) is amended by striking ``25A(i)'' and 
     inserting ``25A(b)''.
       (5) Section 904(i) is amended by striking ``25A(i)'' and 
     inserting ``25A(b)''.
       (6) Section 1400C(d)(2) is amended by striking ``25A(i)'' 
     and inserting ``25A(b)''.
       (7) Section 6211(b)(4)(A) is amended by striking ``25A by 
     reason of subsection (i)(6) thereof'' and inserting ``25A by 
     reason of subsection (b)(5) thereof''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.
       (e) Treatment of Possessions.--Section 1004(c)(1) of the 
     American Recovery and Reinvestment Tax Act of 2009 is amended 
     by striking ``in 2009 and 2010'' each place it appears and 
     inserting ``after 2008''.

     SEC. 208. REPEAL OF SUNSET ON ALLOWANCE OF COMPUTER 
                   TECHNOLOGY AND EQUIPMENT AS A QUALIFIED HIGHER 
                   EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS.

       (a) In General.--Clause (iii) of section 529(e)(3)(A) is 
     amended by striking ``in 2009 or 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenses paid or incurred after December 31, 
     2010.

                 TITLE III--PERMANENT ESTATE TAX RELIEF

     SEC. 301. REPEAL OF EGTRRA SUNSET.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 shall not apply to title V of such 
     Act.

     SEC. 302. REINSTATEMENT OF ESTATE TAX; REPEAL OF CARRYOVER 
                   BASIS.

       (a) In General.--Each provision of law amended by subtitle 
     A or E of title V of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended to read as such 
     provision would read if such subtitle had never been enacted.
       (b) Conforming Amendment.--On and after the date of the 
     introduction of this Act, paragraph (1) of section 2505(a) of 
     the Internal Revenue Code of 1986 is amended to read as if 
     such paragraph would read if section 521(b)(2) of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 had 
     never been enacted.
       (c) Special Election With Respect to Estates of Decedents 
     Dying Before Date of Enactment.--Notwithstanding subsection 
     (a), in the case of an estate of a decedent

[[Page S8407]]

     dying after December 31, 2009, and before the date of the 
     enactment of this Act, the executor (within the meaning of 
     section 2203 of the Internal Revenue Code of 1986) may elect 
     to apply such Code as though the amendments made by this 
     section do not apply with respect to such estate and with 
     respect to property acquired or passing from such decedent 
     (within the meaning of section 1014(b) of such Code).   Such 
     election shall be made at such time and in such manner as the 
     Secretary of the Treasury or the Secretary's delegate shall 
     provide. Such an election once made shall be revocable only 
     with the consent of the Secretary of the Treasury or the 
     Secretary's delegate.
       (d) Extension of Time for Performing Certain Acts.--
       (1) Estate tax.--In the case of the estate of a decedent 
     dying after December 31, 2009, and before the date of the 
     enactment of this Act, the due date for--
       (A) filing any return under section 6018 of the Internal 
     Revenue Code of 1986 (including any election required to be 
     made on such a return) as such section is in effect after the 
     date of the enactment of this Act without regard to any 
     election under subsection (c),
       (B) making any payment of tax under chapter 11 of such 
     Code, and
       (C) receiving any disclaimer described in section 2518(b) 
     of such Code,
     shall not be earlier than the date which is 4 months after 
     the date of the enactment of this Act.
       (2) Generation-skipping tax.--In the case of any 
     generation-skipping tax made after December 31, 2009, and 
     before the date of the enactment of this Act, the due date 
     for filing any return under section 2662 of the Internal 
     Revenue Code of 1986 (including any election required to be 
     made on such a return) shall not be earlier than the date 
     which is 4 months after the date of the enactment of this 
     Act.
       (e) Effective Date.--Except as otherwise provided in this 
     section, the amendments made by this section shall apply to 
     estates of decedents dying, and transfers, after December 31, 
     2009.

     SEC. 303. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-
                   SKIPPING TRANSFER TAXES.

       (a) Modifications to Estate Tax.--
       (1) $3,500,000 applicable exclusion amount.--Subsection (c) 
     of section 2010 is amended to read as follows:
       ``(c) Applicable Credit Amount.--
       ``(1) In general.--For purposes of this section, the 
     applicable credit amount is the amount of the tentative tax 
     which would be determined under section 2001(c) if the amount 
     with respect to which such tentative tax is to be computed 
     were equal to the applicable exclusion amount.
       ``(2) Applicable exclusion amount.--
       ``(A) In general.--For purposes of this subsection, the 
     applicable exclusion amount is $3,500,000.
       ``(B) Inflation adjustment.--In the case of any decedent 
     dying in a calendar year after 2010, the dollar amount in 
     subparagraph (A) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2009' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If any amount as adjusted under the preceding sentence is not 
     a multiple of $10,000, such amount shall be rounded to the 
     nearest multiple of $10,000.''.
       (2) Maximum estate tax rate equal to 45 percent.--
     Subsection (c) of section 2001 is amended--
       (A) by striking ``but not over $2,000,000'' in the table 
     contained in paragraph (1),
       (B) by striking the last 2 items in such table,
       (C) by striking ``(1) In general.--'', and
       (D) by striking paragraph (2).
       (b) Modifications to Gift Tax.--
       (1) Inflation adjustment for applicable exclusion amount 
     for gift tax.--Section 2505 is amended by adding at the end 
     the following new subsection:
       ``(d) Inflation Adjustment.--In the case of any calendar 
     year after 2010, the dollar amount in subsection (a)(1) shall 
     be increased by an amount equal to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2009' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If any amount as adjusted under the preceding sentence is not 
     a multiple of $10,000, such amount shall be rounded to the 
     nearest multiple of $10,000.''.
       (2) Modification of gift tax rate.--On and after the date 
     of the introduction of this Act, subsection (a) of section 
     2502 of the Internal Revenue Code of 1986 is amended to read 
     as such subsection would read if section 511(d) of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 had 
     never been enacted.
       (3) Conforming amendment.--Section 2511 of the Internal 
     Revenue Code of 1986 is amended by striking subsection (c).
       (4) Period of repeal treated as separate calendar year.--
       (A) In general.--For purposes of applying sections 1015, 
     2502, and 2505 of the Internal Revenue Code of 1986, calendar 
     year 2010 shall be treated as 2 separate calendar years one 
     of which ends on the day before the date of the introduction 
     of this Act and the other of which begins on such date of 
     introduction.
       (B) Application of section 2504(b).--For purposes of 
     applying section 2504(b) of the Internal Revenue Code of 
     1986, calendar year 2010 shall be treated as one preceding 
     calendar period.
       (c) Modification of Generation-skipping Transfer Tax.--In 
     the case of any generation-skipping transfer made after 
     December 31, 2009, and before the date of the introduction of 
     this Act, the applicable rate determined under section 
     2641(a) of the Internal Revenue Code of 1986 shall be zero.
       (d) Modifications of Estate and Gift Taxes To Reflect 
     Differences in Credit Resulting From Different Tax Rates.--
       (1) Estate tax.--
       (A) In general.--Section 2001(b)(2) is amended by striking 
     ``if the provisions of subsection (c) (as in effect at the 
     decedent's death)'' and inserting ``if the modifications 
     described in subsection (g)''.
       (B) Modifications.--Section 2001 is amended by adding at 
     the end the following new subsection:
       ``(g) Modifications to Gift Tax Payable To Reflect 
     Different Tax Rates.--For purposes of applying subsection 
     (b)(2) with respect to 1 or more gifts, the rates of tax 
     under subsection (c) in effect at the decedent's death shall, 
     in lieu of the rates of tax in effect at the time of such 
     gifts, be used both to compute--
       ``(1) the tax imposed by chapter 12 with respect to such 
     gifts, and
       ``(2) the credit allowed against such tax under section 
     2505, including in computing--
       ``(A) the applicable credit amount under section 
     2505(a)(1), and
       ``(B) the sum of the amounts allowed as a credit for all 
     preceding periods under section 2505(a)(2).''.
       (2) Gift tax.--Section 2505(a) is amended by adding at the 
     end the following new flush sentence:

     ``For purposes of applying paragraph (2) for any calendar 
     year, the rates of tax in effect under section 2502(a)(2) for 
     such calendar year shall, in lieu of the rates of tax in 
     effect for preceding calendar periods, be used in determining 
     the amounts allowable as a credit under this section for all 
     preceding calendar periods.''.
       (e) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall apply to estates of 
     decedents dying, generation-skipping transfers, and gifts 
     made, after December 31, 2009.

     SEC. 304. APPLICABLE EXCLUSION AMOUNT INCREASED BY UNUSED 
                   EXCLUSION AMOUNT OF DECEASED SPOUSE.

       (a) In General.--Section 2010(c), as amended by section 
     303(a), is amended by striking paragraph (2) and inserting 
     the following new paragraphs:
       ``(2) Applicable exclusion amount.--For purposes of this 
     subsection, the applicable exclusion amount is the sum of--
       ``(A) the basic exclusion amount, and
       ``(B) in the case of a surviving spouse, the deceased 
     spousal unused exclusion amount.
       ``(3) Basic exclusion amount.--
       ``(A) In general.--For purposes of this subsection, the 
     basic exclusion amount is $3,500,000.
       ``(B) Inflation adjustment.--In the case of any decedent 
     dying in a calendar year after 2010, the dollar amount in 
     subparagraph (A) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2009' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If any amount as adjusted under the preceding sentence is not 
     a multiple of $10,000, such amount shall be rounded to the 
     nearest multiple of $10,000.
       ``(4) Deceased spousal unused exclusion amount.--For 
     purposes of this subsection, with respect to a surviving 
     spouse of a deceased spouse dying on or after the date of the 
     enactment of theMiddle Class Tax Cut Act of 2010, the term 
     `deceased spousal unused exclusion amount' means the lesser 
     of--
       ``(A) the basic exclusion amount, or
       ``(B) the excess of--
       ``(i) the basic exclusion amount of the last such deceased 
     spouse of such surviving spouse, over
       ``(ii) the amount with respect to which the tentative tax 
     is determined under section 2001(b)(1) on the estate of such 
     deceased spouse.
       ``(5) Special rules.--
       ``(A) Election required.--A deceased spousal unused 
     exclusion amount may not be taken into account by a surviving 
     spouse under paragraph (2) unless the executor of the estate 
     of the deceased spouse files an estate tax return on which 
     such amount is computed and makes an election on such return 
     that such amount may be so taken into account. Such election, 
     once made, shall be irrevocable. No election may be made 
     under this subparagraph if such return is filed after the 
     time prescribed by law (including extensions) for filing such 
     return.
       ``(B) Examination of prior returns after expiration of 
     period of limitations with respect to deceased spousal unused 
     exclusion amount.--Notwithstanding any period of limitation 
     in section 6501, after the time has expired under section 
     6501 within which a tax may be assessed under chapter 11 or 
     12 with respect to a deceased spousal unused exclusion 
     amount, the Secretary may

[[Page S8408]]

     examine a return of the deceased spouse to make 
     determinations with respect to such amount for purposes of 
     carrying out this subsection.
       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this subsection.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 2505(a) is amended to read as 
     follows:
       ``(1) the applicable credit amount in effect under section 
     2010(c) (determined as if the applicable exclusion amount 
     were $1,000,000) which would apply if the donor died as of 
     the end of the calendar year, reduced by''.
       (2) Section 2631(c) is amended by striking ``the applicable 
     exclusion amount'' and inserting ``the basic exclusion 
     amount''.
       (3) Section 6018(a)(1) is amended by striking ``applicable 
     exclusion amount'' and inserting ``basic exclusion amount''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying, generation-
     skipping transfers, and gifts made, on and after the date of 
     the enactment of this Act.

     SEC. 305. EXCLUSION FROM GROSS ESTATE OF CERTAIN FARMLAND SO 
                   LONG AS FARMLAND USE BY FAMILY CONTINUES.

       (a) In General.--Part III of subchapter A of chapter 11 is 
     amended by inserting after section 2033 the following new 
     section:

     ``SEC. 2033A. EXCLUSION OF CERTAIN FARMLAND SO LONG AS 
                   FARMLAND USE BY FAMILY CONTINUES.

       ``(a) In General.--In the case of an estate of a decedent 
     to which this section applies, the value of the gross estate 
     shall not include the adjusted value of qualified farmland 
     included in the estate.
       ``(b) Estates to Which Section Applies.--This section shall 
     apply to an estate if--
       ``(1) the executor--
       ``(A) elects the application of this section,
       ``(B) files an agreement referred to in section 
     2032A(d)(2), and
       ``(C) obtains a qualified appraisal (as defined in section 
     170(f)(11)(E)(i)) of the qualified farmland to which the 
     election applies and attaches such appraisal to the return of 
     the tax imposed by section 2001,
       ``(2) the decedent was (at the date of the decedent's 
     death) a citizen or resident of the United States,
       ``(3) the decedent for the 3-taxable-year period (10-
     taxable-year period in the case of any qualified farmland 
     which is qualified woodland described in section 
     2032A(c)(2)(F)(i)) preceding the date of the decedent's death 
     had an average modified adjusted gross income (as defined in 
     section 86(b)(2)) not exceeding $750,000,
       ``(4) 60 percent or more of the adjusted value of the gross 
     estate at the date of the decedent's death consists of the 
     adjusted value of real or personal property which is used as 
     a farm for farming purposes (within the meaning of section 
     2032A(e)),
       ``(5) 50 percent or more of the adjusted value of the gross 
     estate consists of the adjusted value of qualified farmland 
     which is real property, and
       ``(6) during the 10-year period ending on the date of the 
     decedent's death--
       ``(A) the qualified farmland which is such real property 
     was owned by the decedent or a member of the decedent's 
     family, and
       ``(B) there was material participation (within the meaning 
     of section 469(h)) by the decedent or a member of the 
     decedent's family in the operation of such farmland.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified farmland.--The term `qualified farmland' 
     means any real property--
       ``(A) which is located in the United States,
       ``(B) which is used as a farm for farming purposes (within 
     the meaning of section 2032A(e)),
       ``(C) such use of which is not an activity not engaged in 
     for profit (within the meaning of section 183),
       ``(D) which was acquired from or passed from the decedent 
     to a qualified heir of the decedent and which, on the date of 
     the decedent's death, was being so used by the decedent or a 
     member of the decedent's family, and
       ``(E) which is property designated in the agreement filed 
     under subsection (b)(1).
       ``(2) Adjusted value.--The term `adjusted value' means the 
     value of farmland for purposes of this chapter (determined 
     without regard to this section), reduced by any amounts 
     allowable as a deduction in respect to such farmland under 
     paragraph (3) or (4) of section 2053(a).
       ``(3) Other terms.--Any other term used in this section 
     which is also used in section 2032A shall have the same 
     meaning given such term by section 2032A.
       ``(d) Annual Information Return to the Secretary.--
       ``(1) In general.--The qualified heir of any qualified 
     farmland shall file an information return (at such time and 
     in such form and manner as the Secretary prescribes) for each 
     calendar year.
       ``(2) Contents of return.--The information return required 
     under paragraph (1) shall set forth any disposition of any 
     interest in such farmland or any cessation of use of such 
     farmland as a farm for farming purposes and such other 
     information as the Secretary may require.
       ``(e) Imposition of Recapture Tax.--
       ``(1) In general.--If--
       ``(A) at any time after the decedent's death and before the 
     death of the qualified heir--
       ``(i) the qualified heir disposes of any interest in 
     qualified farmland (other than by a disposition to a member 
     of the qualified heir's family),
       ``(ii) the qualified heir or member ceases to use the 
     qualified farmland as a farm for farming purposes,
       ``(iii) the qualified heir or member incurs a nonrecourse 
     indebtedness secured in whole or in part by a portion of the 
     qualified farmland, or
       ``(iv) the qualified heir or member fails to file the 
     information return with respect to the qualified farmland 
     required under subsection (d) for 3 successive calendar 
     years, or
       ``(B) upon the death of the qualified heir or member, the 
     executor of the estate of such heir or member does not elect 
     the application of this section with respect to the qualified 
     farmland,

     then, there is hereby imposed a recapture tax with respect to 
     such qualified farmland or such interest in or portion of 
     such qualified farmland.
       ``(2) Application of recapture tax to earlier 
     generations.--Upon the imposition of a recapture tax under 
     paragraph (1) with respect to such qualified farmland or such 
     interest in or portion of such qualified farmland, there is 
     also imposed an aggregate amount of any recapture tax which 
     would have been determined under this subsection with respect 
     to such farmland, interest, or portion if the such tax had 
     been imposed and paid on the date of death of the decedent 
     and on the date of death of any qualified heir (or member) of 
     such farmland, interest, or portion in any intervening 
     generation.
       ``(3) Amount of recapture tax, etc.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     rules similar to the rules of section 2032A(c) (other than 
     paragraphs (1) and (2)(E) thereof) with respect to the 
     additional estate tax shall apply for purposes of this 
     subsection with respect to each recapture tax.
       ``(B) Adjustments to recapture tax.--
       ``(i) Adjustment to reflect increase in value of 
     interest.--Subject to clause (ii), the amount of the 
     recapture tax otherwise determined under rules described in 
     subparagraph (A) shall be increased by the percentage (if 
     any) by which the value of the interest in the qualified 
     farmland at the time of the imposition of such tax is greater 
     than the adjusted value of such farmland at the time such 
     farmland would have been included in the estate if no 
     election under this section had been made.
       ``(ii) Adjustments to value of interest at time of tax 
     imposition.--For purposes of determining the value of the 
     interest in the qualified farmland at the time of the 
     imposition of such tax, such value shall be reduced (under 
     rules prescribed by the Secretary) by--

       ``(I) the basis of any substantial improvements made with 
     respect to such interest by the qualified heir or member, and
       ``(II) the aggregate amount of any recapture tax imposed 
     under paragraph (2).

       ``(f) Application of Other Rules.--Rules similar to the 
     rules of subsections (d), (e) (other than paragraphs (6) and 
     (13) thereof), (f), (g), (h), and (i) of section 2032A shall 
     apply for purposes of this section.
       ``(g) Regulations.--The Secretary may issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section, 
     including the application of this section in the case of 
     multiple interests in qualified farmland, and to prevent 
     fraud and abuse under this section.''.
       (b) Basis of Qualified Farmland for Purposes of 
     Depreciation or Depletion by Qualified Heir.--Section 1014 is 
     amended by adding at the end the following new subsection:
       ``(f) Basis of Qualified Farmland for Purposes of 
     Depreciation or Depletion by Qualified Heir.--For purposes of 
     the allowance to any qualified heir of any depreciation or 
     depletion deduction with respect to any interest in property 
     acquired from a decedent and subject to an election under 
     section 2033A, the basis of such property in the hands of 
     such qualified heir (or member of the qualified heir's family 
     after a disposition described in section 2033A(e)(1)(A)(i)) 
     shall be the adjusted basis of such property in the hands of 
     the decedent immediately before the death of such 
     decedent.''.
       (c) Penalty for Failure to File Annual Information 
     Return.--Section 6652 is amended by redesignating subsection 
     (m) as subsection (n) and by adding at the end the following 
     new subsection:
       ``(m) Failure to File Annual Information Return.--In the 
     case of each failure to provide an information return as 
     required under section 2033A(d) at the time prescribed 
     therefor, unless it is shown that such failure is due to 
     reasonable cause and not to willful neglect, there shall be 
     paid, on notice and demand of the Secretary and in the same 
     manner as tax, by the person failing to provide such return, 
     an amount equal to $250 for each such failure.''.
       (d) Woodlands Subject to Management Plan.--Paragraph (2) of 
     section 2032A(c) is amended by adding at the end the 
     following new subparagraph:
       ``(F) Exception for woodlands subject to forest stewardship 
     plan.--
       ``(i) In general.--Subparagraph (E) shall not apply to any 
     disposition or severance of standing timber on a qualified 
     woodland that is made pursuant to a forest stewardship plan 
     developed under the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103a)

[[Page S8409]]

     or an equivalent plan approved by the State Forester.
       ``(ii) Compliance with forest stewardship plan.--Clause (i) 
     shall not apply if, during the 10-year period under paragraph 
     (1), the qualified heir fails to comply with such forest 
     stewardship plan or equivalent plan.''.
       (e) Certain Conservation Transactions Not Treated as 
     Dispositions.--Paragraph (8) of section 2032A(c) is amended 
     to read as follows:
       ``(8) Certain conservation transactions not treated as 
     dispositions.--
       ``(A) Qualified conservation contributions.--A qualified 
     conservation contribution by gift or otherwise shall not be 
     deemed a disposition under subsection (c)(1)(A).
       ``(B) Qualified conservation easement sold to qualified 
     organization.--A sale of a qualified conservation easement to 
     a qualified organization shall not be deemed a disposition 
     under subsection (c)(1)(A).
       ``(C) Definitions.--For purposes of this paragraph--
       ``(i) the terms `qualified conservation contribution' and 
     `qualified organization' have the meanings given such terms 
     by section 170(h), and
       ``(ii) the term `qualified conservation easement' has the 
     meaning given such term by section 2031(c)(8).''.
       (f) Clerical Amendment.--The table of sections for part III 
     of subchapter A of chapter 11 is amended by inserting after 
     the item relating to section 2033 the following new item:

``Sec. 2033A. Exclusion of certain farmland so long as use as farmland 
              continues.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying after the date of 
     the enactment of this Act.

     SEC. 306. INCREASE IN LIMITATIONS ON THE AMOUNT EXCLUDED FROM 
                   THE GROSS ESTATE WITH RESPECT TO LAND SUBJECT 
                   TO A QUALIFIED CONSERVATION EASEMENT.

       (a) Increase in Dollar Limitation on Exclusion.--Paragraph 
     (3) of section 2031(c) is amended by striking ``the exclusion 
     limitation is'' and all that follows and inserting ``the 
     exclusion limitation is $5,000,000.''.
       (b) Increase in Percentage of Value of Land Which Is 
     Excludable.--Paragraph (2) of section 2031(c) is amended--
       (1) by striking ``40 percent'' and inserting ``50 
     percent'', and
       (2) by striking ``2 percentage points'' and inserting ``2.5 
     percentage points''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying after the date 
     of the enactment of this Act.

     SEC. 307. MODIFICATION OF RULES FOR VALUE OF CERTAIN FARM, 
                   ETC., REAL PROPERTY.

       (a) In General.--Paragraph (2) of section 2032A(a) is 
     amended by striking ``$750,000'' and inserting 
     ``$3,500,000''.
       (b) Inflation Adjustment.--Paragraph (3) of section 
     2032A(a) is amended--
       (1) by striking ``1998'' and inserting ``2010'',
       (2) by striking ``$750,000'' and inserting ``$3,500,000'' 
     in subparagraph (A), and
       (3) by striking ``calendar year 1997'' and inserting 
     ``calendar year 2009'' in subparagraph (B).
       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying, and gifts made, 
     after December 31, 2009.

     SEC. 308. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR 
                   RETAINED ANNUITY TRUSTS.

       (a) In General.--Subsection (b) of section 2702 is 
     amended--
       (1) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively, and by moving 
     such subparagraphs (as so redesignated) 2 ems to the right;
       (2) by striking ``For purposes of'' and inserting the 
     following:
       ``(1) In general.--For purposes of'';
       (3) by striking ``paragraph (1) or (2)'' in paragraph 
     (1)(C) (as so redesignated) and inserting ``subparagraph (A) 
     or (B)''; and
       (4) by adding at the end the following new paragraph:
       ``(2) Additional requirements with respect to grantor 
     retained annuities.--For purposes of subsection (a), in the 
     case of an interest described in paragraph (1)(A) (determined 
     without regard to this paragraph) which is retained by the 
     transferor, such interest shall be treated as described in 
     such paragraph only if--
       ``(A) the right to receive the fixed amounts referred to in 
     such paragraph is for a term of not less than 10 years,
       ``(B) such fixed amounts, when determined on an annual 
     basis, do not decrease relative to any prior year during the 
     first 10 years of the term referred to in subparagraph (A), 
     and
       ``(C) the remainder interest has a value greater than zero 
     determined as of the time of the transfer.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transfers made after the date of the enactment 
     of this Act.

     SEC. 309. CONSISTENT BASIS REPORTING BETWEEN ESTATE AND 
                   PERSON ACQUIRING PROPERTY FROM DECEDENT.

       (a) Consistent Use of Basis.--
       (1) Property acquired from a decedent.--Section 1014 is 
     amended by adding at the end the following new subsection:
       ``(f) Basis Must Be Consistent With Estate Tax Value.--
       ``(1) In general.--For purposes of this section, the value 
     used to determine the basis of any interest in property in 
     the hands of the person acquiring such property shall not 
     exceed the value of such interest as finally determined for 
     purposes of chapter 11.
       ``(2) Special rule where no final determination.--In any 
     case in which the value of property has not been finally 
     determined under chapter 11 and there has been a statement 
     furnished under section 6035(a), the value used to determine 
     the basis of any interest in property in the hands of the 
     person acquiring such property shall not exceed the amount 
     reported on the statement furnished under section 6035(a).
       ``(3) Regulations.--The Secretary may by regulations 
     provide exceptions to the application of this subsection.''.
       (2) Property acquired by gifts and transfers in trust.--
     Section 1015 is amended by adding at the end the following 
     new subsection:
       ``(f) Basis Must Be Consistent With Gift Tax Value.--
       ``(1) In general.--For purposes of this section, the fair 
     market value of any interest in property at the time of the 
     gift of that interest shall not exceed the value of such 
     interest as finally determined for purposes of chapter 12.
       ``(2) Special rule where no final determination.--In any 
     case in which the value of property has not been finally 
     determined under chapter 12 and there has been a statement 
     furnished under section 6035(b), the fair market value of any 
     interest in property at the time of the gift of that interest 
     shall not exceed the amount reported on the statement 
     furnished under section 6035(b).
       ``(3) Regulations.--The Secretary may by regulations 
     provide exceptions to the application of this subsection.''.
       (b) Information Reporting.--
       (1) In general.--Subpart A of part III of subchapter A of 
     chapter 61 is amended by inserting after section 6034A the 
     following new section:

     ``SEC. 6035. BASIS INFORMATION TO PERSONS ACQUIRING PROPERTY 
                   FROM DECEDENT OR BY GIFT.

       ``(a) Information With Respect to Property Acquired From 
     Decedents.--
       ``(1) In general.--The executor of any estate required to 
     file a return under section 6018(a) shall furnish to the 
     Secretary and to each person acquiring any interest in 
     property included in the decedent's gross estate for Federal 
     estate tax purposes a statement identifying the value of each 
     interest in such property as reported on such return and such 
     other information with respect to such interest as the 
     Secretary may prescribe.
       ``(2) Statements by beneficiaries.--Each person required to 
     file a return under section 6018(b) shall furnish to the 
     Secretary and to each other person who holds a legal or 
     beneficial interest in the property to which such return 
     relates a statement identifying the information described in 
     paragraph (1).
       ``(3) Time for furnishing statement.--
       ``(A) In general.--Each statement required to be furnished 
     under paragraph (1) or (2) shall be furnished at such time as 
     the Secretary may prescribe, but in no case at a time later 
     than the earlier of--
       ``(i) the date which is 30 days after the date on which the 
     return under section 6018 was required to be filed (including 
     extensions, if any), or
       ``(ii) the date which is 30 days after the date such return 
     is filed.
       ``(B) Adjustments.--In any case in which there is an 
     adjustment to the information required to be included on a 
     statement filed under paragraph (1) or (2) after such 
     statement has been filed, a supplemental statement under such 
     paragraph shall be filed not later than the date which is 30 
     days after such adjustment is made.
       ``(b) Information With Respect to Property Acquired by 
     Gift.--
       ``(1) In general.--Each person making a transfer by gift 
     who is required to file a return under section 6019 with 
     respect to such transfer shall furnish to the Secretary and 
     to each person acquiring any interest in property by reason 
     of such transfer a statement identifying the fair market 
     value of each interest in such property as reported on such 
     return and such other information with respect to such 
     interest as the Secretary may prescribe.
       ``(2) Time for furnishing statement.--
       ``(A) In general.--Each statement required to be furnished 
     under paragraph (1) shall be furnished at such time as the 
     Secretary may prescribe, but in no case at a time later than 
     the earlier of--
       ``(i) the date which is 30 days after the date on which the 
     return under section 6019 was required to be filed (including 
     extensions, if any), or
       ``(ii) the date which is 30 days after the date such return 
     is filed.
       ``(B) Adjustments.--In any case in which there is an 
     adjustment to the information required to be included on a 
     statement filed under paragraph (1) after such statement has 
     been filed, a supplemental statement under such paragraph 
     shall be filed not later than the date which is 30 days after 
     such adjustment is made.
       ``(c) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out this section, including 
     regulations relating to--
       ``(1) applying this section to property with regard to 
     which no estate or gift tax return is required to be filed, 
     and
       ``(2) situations in which the surviving joint tenant or 
     other recipient may have better information than the executor 
     regarding the basis or fair market value of the property.''.

[[Page S8410]]

       (2) Penalty for failure to file.--
       (A) Return.--Section 6724(d)(1) is amended by striking 
     ``and'' at the end of subparagraph (B), by striking the 
     period at the end of subparagraph (C) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(D) any statement required to be filed with the Secretary 
     under section 6035.''.
       (B) Statement.--Section 6724(d)(2) is amended by striking 
     ``or'' at the end of subparagraph (GG), by striking the 
     period at the end of subparagraph (HH) and inserting ``, 
     or'', and by adding at the end the following new 
     subparagraph:
       ``(II) section 6035 (other than a statement described in 
     paragraph (1)(D)).''.
       (3) 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 6034A the 
     following new item:

``Sec. 6035. Basis information to persons acquiring property from 
              decedent or by gift.''.

       (c) Penalty for Inconsistent Reporting.--
       (1) In general.--Subsection (b) of section 6662 is amended 
     by inserting after paragraph (7) the following new paragraph:
       ``(8) Any inconsistent estate or gift basis.''.
       (2) Inconsistent basis reporting.--Section 6662 is amended 
     by adding at the end the following new subsection:
       ``(k) Inconsistent Estate or Gift Basis Reporting.--For 
     purposes of this section, the term `inconsistent estate or 
     gift basis' means--
       ``(1) in the case of property acquired from a decedent, a 
     basis determination with respect to such property which is 
     not consistent with the requirements of section 1014(f), and
       ``(2) in the case of property acquired by gift, a basis 
     determination with respect to such property which is not 
     consistent with the requirements of section 1015(f).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to transfers for which returns are filed after 
     the date of the enactment of this Act.

             TITLE IV--PERMANENT SMALL BUSINESS TAX RELIEF

     SEC. 401. REPEAL OF SUNSET ON INCREASED LIMITATIONS ON SMALL 
                   BUSINESS EXPENSING.

       (a) In General.--Subsection (b) of section 179, as amended 
     by the Small Business Jobs Act of 2010, is amended--
       (1) by striking ``$25,000'' in paragraph (1)(C) and 
     inserting ``$125,000.'', and
       (2) by striking ``$200,000'' in paragraph (2)(C) and 
     inserting ``$500,000.''.
       (b) Inflation Adjustment.--Section 179(b) is amended by 
     adding at the end the following new paragraph:
       ``(6) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2011, the $125,000 amount in paragraph (1)(C) 
     and the $500,000 amount in paragraph (2)(C) shall each be 
     increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2006' for 
     `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--
       ``(i) Dollar limitation.--If the amount in paragraph (1) as 
     increased under subparagraph (A) is not a multiple of $1,000, 
     such amount shall be rounded to the nearest multiple of 
     $1,000.
       ``(ii)  Phaseout amount.--If the amount in paragraph (2) as 
     increased under subparagraph (A) is not a multiple of 
     $10,000, such amount shall be rounded to the nearest multiple 
     of $10,000.''.
       (c) Permanent Expensing of Computer Software.--Section 
     179(d)(1)(A)(ii), as amended by the Small Business Jobs Act 
     of 2010, is amended by striking ``and before 2012''.
       (d) Revocation of Election Made Permanent.--Section 
     179(c)(2), as amended by the Small Business Jobs Act of 2010, 
     is amended to read as follows:
       ``(2) Revocation of election.--Any election made under this 
     section, and any specification contained in any such 
     election, may be revoked by the taxpayer with respect to any 
     property, and such revocation, once made, shall be 
     irrevocable.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

                TITLE V--ALTERNATIVE MINIMUM TAX RELIEF

     SEC. 501. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
                   EXEMPTION AMOUNT.

       (a) In General.--Paragraph (1) of section 55(d) is 
     amended--
       (1) by striking ``$70,950'' and all that follows through 
     ``2009'' in subparagraph (A) and inserting ``$72,450 in the 
     case of taxable years beginning in 2010 and $74,450 in the 
     case of taxable years beginning in 2011'', and
       (2) by striking ``$46,700'' and all that follows through 
     ``2009'' in subparagraph (B) and inserting ``$47,450 in the 
     case of taxable years beginning in 2010 and $48,450 in the 
     case of taxable years beginning in 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 502. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
                   NONREFUNDABLE PERSONAL CREDITS.

       (a) In General.--Paragraph (2) of section 26(a) is 
     amended--
       (1) by striking ``or 2009'' and inserting ``2009, 2010, or 
     2011'', and
       (2) by striking ``2009'' in the heading thereof and 
     inserting ``2011''.
       (b)  Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

  TITLE VI--TEMPORARY EXTENSION OF CERTAIN PROVISIONS EXPIRING IN 2009

                 Subtitle A--Infrastructure Incentives

     SEC. 601. EXTENSION OF BUILD AMERICA BONDS.

       (a) In General.--Subparagraph (B) of section 54AA(d)(1) is 
     amended by striking ``January 1, 2011'' and inserting 
     ``January 1, 2012''.
       (b) Extension of Payments to Issuers.--
       (1) In general.--Section 6431 is amended--
       (A) by striking ``January 1, 2011'' in subsection (a) and 
     inserting ``January 1, 2012''; and
       (B) by striking ``January 1, 2011'' in subsection (f)(1)(B) 
     and inserting ``a particular date''.
       (2) Conforming amendments.--Subsection (g) of section 54AA 
     is amended--
       (A) by striking ``January 1, 2011'' and inserting ``January 
     1, 2012''; and
       (B) by striking ``Qualified Bonds Issued Before 2011'' in 
     the heading and inserting ``Certain Qualified Bonds''.
       (c) Reduction in Percentage of Payments to Issuers.--
     Subsection (b) of section 6431 is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'';
       (2) by striking ``35 percent'' and inserting ``the 
     applicable percentage''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Applicable percentage.--For purposes of this 
     subsection, the term `applicable percentage' means the 
     percentage determined in accordance with the following table:


------------------------------------------------------------------------
 ``In the case of a qualified bond issued     The applicable percentage
           during calendar year:                         is:
------------------------------------------------------------------------
2009 or 2010..............................  35 percent
2011......................................  32 percent.''.
------------------------------------------------------------------------


       (d) Current Refundings Permitted.--Subsection (g) of 
     section 54AA is amended by adding at the end the following 
     new paragraph:
       ``(3) Treatment of current refunding bonds.--
       ``(A) In general.--For purposes of this subsection, the 
     term `qualified bond' includes any bond (or series of bonds) 
     issued to refund a qualified bond if--
       ``(i) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       ``(ii) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       ``(iii) the refunded bond is redeemed not later than 90 
     days after the date of the issuance of the refunding bond.
       ``(B) Applicable percentage.--In the case of a refunding 
     bond referred to in subparagraph (A), the applicable 
     percentage with respect to such bond under section 6431(b) 
     shall be the lowest percentage specified in paragraph (2) of 
     such section.
       ``(C) Determination of average maturity.--For purposes of 
     subparagraph (A)(i), average maturity shall be determined in 
     accordance with section 147(b)(2)(A).''.

     SEC. 602. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY 
                   FACILITIES.

       (a) Bonds for Water and Sewage Facilities Exempt From 
     Volume Cap on Private Activity Bonds.--
       (1) In general.--Paragraph (3) of section 146(g) is amended 
     by inserting ``(4), (5),'' after ``(2),''.
       (2) Conforming amendment.--Paragraphs (2) and (3)(B) of 
     section 146(k) are both amended by striking ``(4), (5), 
     (6),'' and inserting ``(6)''.
       (b) Tax-exempt Issuance by Indian Tribal Governments.--
       (1) In general.--Subsection (c) of section 7871 is amended 
     by adding at the end the following new paragraph:
       ``(4) Exception for bonds for water and sewage 
     facilities.--Paragraph (2) shall not apply to an exempt 
     facility bond 95 percent or more of the net proceeds (as 
     defined in section 150(a)(3)) of which are to be used to 
     provide facilities described in paragraph (4) or (5) of 
     section 142(a).''.
       (2) Conforming amendment.--Paragraph (2) of section 7871(c) 
     is amended by striking ``paragraph (3)'' and inserting 
     ``paragraphs (3) and (4)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 603. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX 
                   TREATMENT FOR CERTAIN TAX-EXEMPT BONDS.

       (a) In General.--Clause (vi) of section 57(a)(5)(C) is 
     amended--
       (1) by striking ``January 1, 2011'' in subclause (I) and 
     inserting ``January 1, 2012''; and
       (2) by striking ``and 2010'' in the heading and inserting 
     ``, 2010, and 2011''.
       (b) Adjusted Current Earnings.--Clause (iv) of section 
     56(g)(4)(B) is amended--
       (1) by striking ``January 1, 2011'' in subclause (I) and 
     inserting ``January 1, 2012''; and

[[Page S8411]]

       (2) by striking ``and 2010'' in the heading and inserting 
     ``, 2010, and 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2010.

     SEC. 604. EXTENSION AND ADDITIONAL ALLOCATIONS OF RECOVERY 
                   ZONE BOND AUTHORITY.

       (a) Extension of Recovery Zone Bond Authority.--Section 
     1400U-2(b)(1) and section 1400U-3(b)(1)(B) are each amended 
     by striking ``January 1, 2011'' and inserting ``January 1, 
     2012''.
       (b) Additional Allocations of Recovery Zone Bond Authority 
     Based on Unemployment.--Section 1400U-1 is amended by adding 
     at the end the following new subsection:
       ``(c) Allocation of 2010 Recovery Zone Bond Limitations 
     Based on Unemployment.--
       ``(1) In general.--The Secretary shall allocate the 2010 
     national recovery zone economic development bond limitation 
     and the 2010 national recovery zone facility bond limitation 
     among the States in the proportion that each such State's 
     2009 unemployment number bears to the aggregate of the 2009 
     unemployment numbers for all of the States.
       ``(2) Minimum allocation.--The Secretary shall adjust the 
     allocations under paragraph (1) for each State to the extent 
     necessary to ensure that no State (prior to any reduction 
     under paragraph (3)) receives less than 0.9 percent of the 
     2010 national recovery zone economic development bond 
     limitation and 0.9 percent of the 2010 national recovery zone 
     facility bond limitation.
       ``(3) Allocations by states.--
       ``(A) In general.--Each State with respect to which an 
     allocation is made under paragraph (1) shall reallocate such 
     allocation among the counties and large municipalities (as 
     defined in subsection (a)(3)(B)) in such State in the 
     proportion that each such county's or municipality's 2009 
     unemployment number bears to the aggregate of the 2009 
     unemployment numbers for all the counties and large 
     municipalities (as so defined) in such State.
       ``(B) 2010 allocation reduced by amount of previous 
     allocation.--Each State shall reduce (but not below zero)--
       ``(i) the amount of the 2010 national recovery zone 
     economic development bond limitation allocated to each county 
     or large municipality (as so defined) in such State by the 
     amount of the national recovery zone economic development 
     bond limitation allocated to such county or large 
     municipality under subsection (a)(3)(A) (determined without 
     regard to any waiver thereof), and
       ``(ii) the amount of the 2010 national recovery zone 
     facility bond limitation allocated to each county or large 
     municipality (as so defined) in such State by the amount of 
     the national recovery zone facility bond limitation allocated 
     to such county or large municipality under subsection 
     (a)(3)(A) (determined without regard to any waiver thereof).
       ``(C) Waiver of suballocations.--A county or municipality 
     may waive any portion of an allocation made under this 
     paragraph. A county or municipality shall be treated as 
     having waived any portion of an allocation made under this 
     paragraph which has not been allocated to a bond issued 
     before May 1, 2011. Any allocation waived (or treated as 
     waived) under this subparagraph may be used or reallocated by 
     the State.
       ``(D) Special rule for a municipality in a county.--In the 
     case of any large municipality any portion of which is in a 
     county, such portion shall be treated as part of such 
     municipality and not part of such county.
       ``(4) 2009 unemployment number.--For purposes of this 
     subsection, the term `2009 unemployment number' means, with 
     respect to any State, county or municipality, the number of 
     individuals in such State, county, or municipality who were 
     determined to be unemployed by the Bureau of Labor Statistics 
     for December 2009.
       ``(5) 2010 national limitations.--
       ``(A) Recovery zone economic development bonds.--The 2010 
     national recovery zone economic development bond limitation 
     is $10,000,000,000. Any allocation of such limitation under 
     this subsection shall be treated for purposes of section 
     1400U-2 in the same manner as an allocation of national 
     recovery zone economic development bond limitation.
       ``(B) Recovery zone facility bonds.--The 2010 national 
     recovery zone facility bond limitation is $15,000,000,000. 
     Any allocation of such limitation under this subsection shall 
     be treated for purposes of section 1400U-3 in the same manner 
     as an allocation of national recovery zone facility bond 
     limitation.''.
       (c) Authority of State to Waive Certain 2009 Allocations.--
     Subparagraph (A) of section 1400U-1(a)(3) is amended by 
     adding at the end the following: ``A county or municipality 
     shall be treated as having waived any portion of an 
     allocation made under this subparagraph which has not been 
     allocated to a bond issued before May 1, 2011. Any allocation 
     waived (or treated as waived) under this subparagraph may be 
     used or reallocated by the State.''.

     SEC. 605. ALLOWANCE OF NEW MARKETS TAX CREDIT AGAINST 
                   ALTERNATIVE MINIMUM TAX.

       (a) In General.--Subparagraph (B) of section 38(c)(4), as 
     amended by the Patient Protection and Affordable Care Act, is 
     amended by redesignating clauses (v) through (ix) as clauses 
     (vi) through (x), respectively, and by inserting after clause 
     (iv) the following new clause:
       ``(v) the credit determined under section 45D, but only 
     with respect to credits determined with respect to qualified 
     equity investments (as defined in section 45D(b)) initially 
     made before January 1, 2013,''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to credits determined with respect to qualified 
     equity investments (as defined in section 45D(b) of the 
     Internal Revenue Code of 1986) initially made after March 15, 
     2010.

     SEC. 606. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR LOANS 
                   GUARANTEED BY FEDERAL HOME LOAN BANKS.

       Clause (iv) of section 149(b)(3)(A) is amended by striking 
     ``December 31, 2010'' and inserting ``December 31, 2011''.

     SEC. 607. EXTENSION OF TEMPORARY SMALL ISSUER RULES FOR 
                   ALLOCATION OF TAX-EXEMPT INTEREST EXPENSE BY 
                   FINANCIAL INSTITUTIONS.

       (a) In General.--Clauses (i), (ii), and (iii) of section 
     265(b)(3)(G) are each amended by striking ``or 2010'' and 
     inserting ``, 2010, or 2011''.
       (b) Conforming Amendment.--Subparagraph (G) of section 
     265(b)(3) is amended by striking ``and 2010'' in the heading 
     and inserting ``, 2010, and 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2010.

                           Subtitle B--Energy

     SEC. 611. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED 
                   HYBRID MOTOR VEHICLES OTHER THAN PASSENGER 
                   AUTOMOBILES AND LIGHT TRUCKS.

       (a) In General.--Paragraph (3) of section 30B(k) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property purchased after December 31, 2009.

     SEC. 612. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

       (a) Credits for Biodiesel and Renewable Diesel Used as 
     Fuel.--Subsection (g) of section 40A is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2011''.
       (b) Excise Tax Credits and Outlay Payments for Biodiesel 
     and Renewable Diesel Fuel Mixtures.--
       (1) Paragraph (6) of section 6426(c) is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2011''.
       (2) Subparagraph (B) of section 6427(e)(6) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 613. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-
                   LOOP BIOMASS FACILITIES.

       (a) In General.--Clause (ii) of section 45(b)(4)(B) is 
     amended--
       (1) by striking ``5-year period'' and inserting ``7-year 
     period''; and
       (2) by adding at the end the following: ``In the case of 
     the next-to-last year of the 7-year period described in the 
     preceding sentence, the credit determined under subsection 
     (a) with respect to electricity produced during such year 
     shall not exceed 80 percent of such credit determined without 
     regard to this sentence. In the case of the last year of such 
     7-year period, the credit determined under subsection (a) 
     with respect to electricity produced during such year shall 
     not exceed 60 percent of such credit determined without 
     regard to this sentence.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to electricity produced and sold after December 
     31, 2009.

     SEC. 614. CREDIT FOR STEEL INDUSTRY FUEL.

       (a) Credit Period.--
       (1) In general.--Subclause (II) of section 45(e)(8)(D)(ii) 
     is amended to read as follows:

       ``(II) Credit period.--In lieu of the 10-year period 
     referred to in clauses (i) and (ii)(II) of subparagraph (A), 
     the credit period shall be the period beginning on the date 
     that the facility first produces steel industry fuel that is 
     sold to an unrelated person after September 30, 2008, and 
     ending 3 years after such date.''.

       (2) Conforming amendment.--Section 45(e)(8)(D) is amended 
     by striking clause (iii) and by redesignating clause (iv) as 
     clause (iii).
       (b) Extension of Placed-in-service Date.--Subparagraph (A) 
     of section 45(d)(8) is amended--
       (1) by striking ``(or any modification to a facility)''; 
     and
       (2) by striking ``2010'' and inserting ``2012''.
       (c) Clarifications.--
       (1) Steel industry fuel.--Subclause (I) of section 
     45(c)(7)(C)(i) is amended by inserting ``, a blend of coal 
     and petroleum coke, or other coke feedstock'' after ``on 
     coal''.
       (2) Ownership interest.--Section 45(d)(8) is amended by 
     adding at the end the following new flush sentence:

     ``With respect to a facility producing steel industry fuel, 
     no person (including a ground lessor, customer, supplier, or 
     technology licensor) shall be treated as having an ownership 
     interest in the facility or as otherwise entitled to the 
     credit allowable under subsection (a) with respect to such 
     facility if such person's rent, license fee, or other 
     entitlement to net payments from the owner of such facility 
     is measured by a fixed dollar amount or a fixed amount per 
     ton, or otherwise determined without regard to the profit or 
     loss of such facility.''.
       (3) Production and sale.--Subparagraph (D) of section 
     45(e)(8), as amended by subsection (a)(2), is amended by 
     redesignating clause (iii) as clause (iv) and by inserting 
     after clause (ii) the following new clause:
       ``(iii) Production and sale.--The owner of a facility 
     producing steel industry fuel shall

[[Page S8412]]

     be treated as producing and selling steel industry fuel where 
     that owner manufactures such steel industry fuel from coal, a 
     blend of coal and petroleum coke, or other coke feedstock to 
     which it has title. The sale of such steel industry fuel by 
     the owner of the facility to a person who is not the owner of 
     the facility shall not fail to qualify as a sale to an 
     unrelated person solely because such purchaser may also be a 
     ground lessor, supplier, or customer.''.
       (d) Specified Credit for Purposes of Alternative Minimum 
     Tax Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is 
     amended by inserting ``(in the case of a refined coal 
     production facility producing steel industry fuel, during the 
     credit period set forth in section 45(e)(8)(D)(ii)(II))'' 
     after ``service''.
       (e) Effective Dates.--
       (1) In general.--The amendments made by subsections (a), 
     (b), and (d) shall apply to fuel produced and sold after 
     September 30, 2008.
       (2) Clarifications.--The amendments made by subsection (c) 
     shall take effect as if included in the amendments made by 
     the Energy Improvement and Extension Act of 2008.

     SEC. 615. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

       (a) In General.--Paragraph (1) of section 45K(g) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to facilities placed in service after December 
     31, 2009.

     SEC. 616. NEW ENERGY EFFICIENT HOME CREDIT.

       (a) In General.--Subsection (g) of section 45L is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to homes acquired after December 31, 2009.

     SEC. 617. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR 
                   ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.

       (a) Alternative Fuel Credit.--Paragraph (5) of section 
     6426(d) is amended by striking ``after December 31, 2009'' 
     and all that follows and inserting ``after--
       ``(A) September 30, 2014, in the case of liquefied 
     hydrogen,
       ``(B) December 31, 2011, in the case of fuels described in 
     subparagraph (A), (C), (F), or (G) of paragraph (2), and
       ``(C) December 31, 2009, in any other case.''.
       (b) Alternative Fuel Mixture Credit.--Paragraph (3) of 
     section 6426(e) is amended by striking ``after December 31, 
     2009'' and all that follows and inserting ``after--
       ``(A) September 30, 2014, in the case of liquefied 
     hydrogen,
       ``(B) December 31, 2011, in the case of fuels described in 
     subparagraph (A), (C), (F), or (G) of subsection (d)(2), and
       ``(C) December 31, 2009, in any other case.''.
       (c) Payment Authority.--
       (1) In general.--Paragraph (6) of section 6427(e) is 
     amended by striking ``and'' at the end of subparagraph (C), 
     by striking the period at the end of subparagraph (D) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(E) any alternative fuel or alternative fuel mixture (as 
     so defined) involving fuel described in subparagraph (A), 
     (C), (F), or (G) of section 6426(d)(2) sold or used after 
     December 31, 2011.''.
       (2) Conforming amendment.--Subparagraph (C) of section 
     6427(e)(6) is amended by inserting ``or (E)'' after 
     ``subparagraph (D)''.
       (d) Exclusion of Black Liquor From Credit Eligibility.--The 
     last sentence of section 6426(d)(2) is amended by striking 
     ``or biodiesel'' and inserting ``biodiesel, or any fuel 
     (including lignin, wood residues, or spent pulping liquors) 
     derived from the production of paper or pulp''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 618. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT 
                   FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
                   QUALIFIED ELECTRIC UTILITIES.

       (a) In General.--Paragraph (3) of section 451(i) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (b) Modification of Definition of Independent Transmission 
     Company.--
       (1) In general.--Clause (i) of section 451(i)(4)(B) is 
     amended to read as follows:
       ``(i) who the Federal Energy Regulatory Commission 
     determines in its authorization of the transaction under 
     section 203 of the Federal Power Act (16 U.S.C. 824b) or by 
     declaratory order--

       ``(I) is not itself a market participant as determined by 
     the Commission, and also is not controlled by any such market 
     participant, or
       ``(II) to be independent from market participants or to be 
     an independent transmission company within the meaning of 
     such Commission's rules applicable to independent 
     transmission providers, and''.

       (2) Related persons.--Paragraph (4) of section 451(i) is 
     amended by adding at the end the following flush sentence:

     ``For purposes of subparagraph (B)(i)(I), a person shall be 
     treated as controlled by another person if such persons would 
     be treated as a single employer under section 52.''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to dispositions after December 31, 2009.
       (2) Modifications.--The amendments made by subsection (b) 
     shall apply to dispositions after the date of the enactment 
     of this Act.

     SEC. 619. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION 
                   FOR OIL AND GAS FROM MARGINAL WELLS.

       (a) In General.--Clause (ii) of section 613A(c)(6)(H) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 620. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

       (a) Extension.--
       (1) In general.--Section 25C(g)(2) is amended by striking 
     ``2010'' and inserting ``2011''.
       (2) Limitation.--Section 25C(b) is amended by striking 
     ``and 2010'' and inserting ``, 2010, and 2011''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2010.
       (b) Modification of Standards for Windows, Doors, and 
     Skylights.--
       (1) In general.--Paragraph (4) of section 25C(c) is amended 
     by striking ``unless'' and all that follows and inserting 
     ``unless--
       ``(A) such component meets the criteria for such components 
     established by the 2010 Energy Star Program Requirements for 
     Residential Windows, Doors, and Skylights, Version 5.0 (or 
     any subsequent version of such requirements which is in 
     effect after January 4, 2010), and
       ``(B) in the case of any component which is a garage door, 
     such component is equal to or below a U factor of 0.30 and 
     SHGC of 0.30.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to property placed in service after December 31, 
     2010.

                   Subtitle C--Individual Tax Relief

                    PART I--MISCELLANEOUS PROVISIONS

     SEC. 631. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND 
                   SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2) is 
     amended by striking ``or 2009'' and inserting ``2009, 2010, 
     or 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 632. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL 
                   REAL PROPERTY TAXES.

       (a) In General.--Subparagraph (C) of section 63(c)(1) is 
     amended by striking ``or 2009'' and inserting ``2009, 2010, 
     or 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 633. DEDUCTION OF STATE AND LOCAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 634. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE 
                   FOR CONSERVATION PURPOSES.

       (a) In General.--Clause (vi) of section 170(b)(1)(E) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Contributions by Certain Corporate Farmers and 
     Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 635. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND 
                   RELATED EXPENSES.

       (a) In General.--Subsection (e) of section 222 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Application and Extension of EGTRRA Sunset.--
     Notwithstanding section 901 of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001, such section shall apply 
     to the amendments made by this section and the amendments 
     made by section 431 of such Act by substituting ``December 
     31, 2011'' for ``December 31, 2010'' in subsection (a)(1) 
     thereof.
       (c) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.
       (d) Temporary Coordination With Section 25A.--In the case 
     of any taxpayer for any taxable year beginning in 2010 or 
     2011, no deduction shall be allowed under section 222 of the 
     Internal Revenue Code of 1986 if--
       (1) the taxpayer's net Federal income tax reduction which 
     would be attributable to such deduction for such taxable 
     year, is less than
       (2) the credit which would be allowed to the taxpayer for 
     such taxable year under section 25A of such Code (determined 
     without regard to sections 25A(e) and 26 of such Code).

     SEC. 636. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT 
                   PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date; Special Rule.--
       (1) Effective date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after December 31, 2009.

[[Page S8413]]

       (2) Special rule.--For purposes of qualified charitable 
     distributions under section 408(d)(8) of the Internal Revenue 
     Code of 1986 with respect to taxable years beginning in 2010, 
     a taxpayer shall be deemed to have made such a distribution 
     on the last day of such taxable year if the distribution is 
     made not later than January 31, 2011.

     SEC. 637. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY 
                   STOCK IN DETERMINING GROSS ESTATE OF 
                   NONRESIDENTS.

       (a) In General.--Paragraph (3) of section 2105(d) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to estates of decedents dying after December 31, 
     2009.

                  PART II--LOW-INCOME HOUSING CREDITS

     SEC. 641. ELECTION FOR DIRECT PAYMENT OF LOW-INCOME HOUSING 
                   CREDIT FOR 2010.

       (a) In General.--Section 42 is amended by redesignating 
     subsection (n) as subsection (o) and by inserting after 
     subsection (m) the following new subsection:
       ``(n) Election for Direct Payment of Credit.--
       ``(1) In general.--The housing credit agency of each State 
     shall be allowed a credit in an amount equal to such State's 
     low-income housing refundable credit election amount for the 
     applicable calendar year, which shall be payable by the 
     Secretary as provided in paragraph (5).
       ``(2) Low-income housing grant election amount.--For 
     purposes of this subsection--
       ``(A) In general.--The term `low-income housing grant 
     election amount' means, with respect to any State for any 
     applicable calendar year, such amount as the State may elect 
     which does not exceed 85 percent of the product of--
       ``(i) the sum of--

       ``(I) 100 percent of the State housing credit ceiling for 
     such applicable calendar year which is attributable to 
     amounts described in clauses (i) and (iii) of subsection 
     (h)(3)(C), plus any increase for such applicable calendar 
     year attributable to section 1400N(c) (including credits made 
     available under such section as applied by reason of sections 
     702(d)(2) and 704(b) of the Tax Extenders and Alternative 
     Minimum Tax Relief Act of 2008), and
       ``(II) 40 percent of the State housing credit ceiling for 
     such applicable calendar year which is attributable to 
     amounts described in clauses (ii) and (iv) of such 
     subsection, plus any credits for the calendar year preceding 
     such applicable calendar year attributable to the application 
     of such section 702(d)(2) and 704(b), multiplied by

       ``(ii) 10.

     For purposes of subparagraph (A)(ii), in the case of any area 
     to which section 702(d)(2) or 704(b) of the Tax Extenders and 
     Alternative Minimum Tax Relief Act of 2008 applies, section 
     1400N(c)(1)(A) of such Code shall be applied without regard 
     to clause (i).
       ``(B) Applicable calendar year.--The term `applicable 
     calendar year' means calendar years 2010 and 2011.
       ``(3) Coordination with non-refundable credit.--For 
     purposes of this section, the amounts described in clauses 
     (i) through (iv) of subsection (h)(3)(C) with respect to any 
     State for 2010 shall each be reduced by so much of such 
     amount as is taken into account in determining the amount of 
     the credit allowed with respect to such State under paragraph 
     (1).
       ``(4) Special rule for basis.--Basis of a qualified low-
     income building shall not be reduced by the amount of any 
     payment made under this subsection.
       ``(5) Payment of credit; use to finance low-income 
     buildings.--The Secretary shall pay to the housing credit 
     agency of each State an amount equal to the credit allowed 
     under paragraph (1). Rules similar to the rules of 
     subsections (c) and (d) of section 1602 of the American 
     Recovery and Reinvestment Tax Act of 2009 shall apply with 
     respect to any payment made under this paragraph, except that 
     such subsection (d) shall be applied by substituting `January 
     1 of the second calendar year after the applicable calendar 
     year' for `January 1, 2011'.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting ``42(n),'' after 
     ``36C,''.

     SEC. 642. LOW-INCOME HOUSING GRANT ELECTION.

       (a) Clarification of Eligibility of Low-income Housing 
     Credits for Low-income Housing Grant Election.--Paragraph (1) 
     of section 1602(b) of the American Recovery and Reinvestment 
     Tax Act of 2009 is amended--
       (1) by inserting ``, plus any increase for 2009 or 2010 
     attributable to section 1400N(c) of such Code (including 
     credits made available under such section as applied by 
     reason of sections 702(d)(2) and 704(b) of the Tax Extenders 
     and Alternative Minimum Tax Relief Act of 2008)'' after 
     ``1986'' in subparagraph (A), and
       (2) by inserting ``, plus any credits for 2009 attributable 
     to the application of such section 702(d)(2) and 704(b)'' 
     after ``such section'' in subparagraph (B).
       (b) Application of Additional Housing Credit Amount for 
     Purposes of 2009 Grant Election.--Subsection (b) of section 
     1602 of the American Recovery and Reinvestment Tax Act of 
     2009, as amended by subsection (a), is amended by adding at 
     the end the following flush sentence:

     ``For purposes of paragraph (1)(B), in the case of any area 
     to which section 702(d)(2) or 704(b) of the Tax Extenders and 
     Alternative Minimum Tax Relief Act of 2008 applies, section 
     1400N(c)(1)(A) of such Code shall be applied without regard 
     to clause (i).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply as if included in the enactment of section 1602 
     of the American Recovery and Reinvestment Tax Act of 2009.

                    Subtitle D--Business Tax Relief

     SEC. 651. RESEARCH CREDIT.

       (a) In General.--Subparagraph (B) of section 41(h)(1) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Conforming Amendment.--Subparagraph (D) of section 
     45C(b)(1) is amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.

     SEC. 652. INDIAN EMPLOYMENT TAX CREDIT.

       (a) In General.--Subsection (f) of section 45A is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 653. NEW MARKETS TAX CREDIT.

       (a) In General.--Subparagraph (F) of section 45D(f)(1) is 
     amended by inserting ``, 2010, and 2011'' after ``2009''.
       (b) Conforming Amendment.--Paragraph (3) of section 45D(f) 
     is amended by striking ``2014'' and inserting ``2016''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after 2009.

     SEC. 654. RAILROAD TRACK MAINTENANCE CREDIT.

       (a) In General.--Subsection (f) of section 45G is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2009.

     SEC. 655. MINE RESCUE TEAM TRAINING CREDIT.

       (a) In General.--Subsection (e) of section 45N is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Credit Allowable Against AMT.--Subparagraph (B) of 
     section 38(c)(4), as amended by section 105, is amended--
       (1) by redesignating clauses (vii) through (x) as clauses 
     (viii) through (xi), respectively; and
       (2) by inserting after clause (vi) the following new 
     clause:
       ``(vii) the credit determined under section 45N,''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2009.
       (2) Allowance against amt.--The amendments made by 
     subsection (b) shall apply to credits determined for taxable 
     years beginning after December 31, 2009, and to carrybacks of 
     such credits.

     SEC. 656. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE 
                   DUTY MEMBERS OF THE UNIFORMED SERVICES.

       (a) In General.--Subsection (f) of section 45P is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after December 31, 2009.

     SEC. 657. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY 
                   AND EQUIPMENT.

       (a) In General.--Clause (vii) of section 168(e)(3)(B) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 658. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
                   LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT 
                   BUILDINGS AND IMPROVEMENTS, AND QUALIFIED 
                   RETAIL IMPROVEMENTS.

       (a) In General.--Clauses (iv), (v), and (ix) of section 
     168(e)(3)(E) are each amended by striking ``January 1, 2010'' 
     and inserting ``January 1, 2012''.
       (b) Conforming Amendments.--
       (1) Clause (i) of section 168(e)(7)(A) is amended by 
     striking ``if such building is placed in service after 
     December 31, 2008, and before January 1, 2010,''.
       (2) Paragraph (8) of section 168(e) is amended by striking 
     subparagraph (E).
       (3) Section 179(f)(2) is amended--
       (A) by striking ``(without regard to the dates specified in 
     subparagraph (A)(i) thereof)'' in subparagraph (B), and
       (B) by striking ``(without regard to subparagraph (E) 
     thereof)'' in subparagraph (C).
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 659. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                   ENTERTAINMENT COMPLEXES.

       (a) In General.--Subparagraph (D) of section 168(i)(15) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 660. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON 
                   AN INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.

[[Page S8414]]

       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 661. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2009.

     SEC. 662. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   BOOK INVENTORIES TO PUBLIC SCHOOLS.

       (a) In General.--Clause (iv) of section 170(e)(3)(D) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2009.

     SEC. 663. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE 
                   CONTRIBUTIONS OF COMPUTER INVENTORY FOR 
                   EDUCATIONAL PURPOSES.

       (a) In General.--Subparagraph (G) of section 170(e)(6) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 664. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

       (a) In General.--Subsection (g) of section 179E is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 665. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND 
                   TELEVISION PRODUCTIONS.

       (a) In General.--Subsection (f) of section 181 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to productions commencing after December 31, 
     2009.

     SEC. 666. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Subsection (h) of section 198 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred after December 
     31, 2009.

     SEC. 667. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES 
                   IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8) is 
     amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 6 taxable years''; and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2012''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 668. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS 
                   TO CONTROLLING EXEMPT ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received or accrued after December 
     31, 2009.

     SEC. 669. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF 
                   CERTAIN BROWNFIELD SITES FROM UNRELATED 
                   BUSINESS INCOME.

       (a) In General.--Subparagraph (K) of section 512(b)(19) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property acquired after December 31, 2009.

     SEC. 670. TIMBER REIT MODERNIZATION.

       (a) In General.--Paragraph (8) of section 856(c) is amended 
     by striking ``means'' and all that follows and inserting 
     ``means December 31, 2011.''.
       (b) Conforming Amendments.--
       (1) Subparagraph (I) of section 856(c)(2) is amended by 
     striking ``the first taxable year beginning after the date of 
     the enactment of this subparagraph'' and inserting ``a 
     taxable year beginning on or before the termination date''.
       (2) Clause (iii) of section 856(c)(5)(H) is amended by 
     inserting ``in taxable years beginning'' after 
     ``dispositions''.
       (3) Clause (v) of section 857(b)(6)(D) is amended by 
     inserting ``in a taxable year beginning'' after ``sale''.
       (4) Subparagraph (G) of section 857(b)(6) is amended by 
     inserting ``in a taxable year beginning'' after ``In the case 
     of a sale''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 22, 2009.

     SEC. 671. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
                   INVESTMENT COMPANIES.

       (a) In General.--Paragraphs (1)(C) and (2)(C) of section 
     871(k) are each amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 672. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER 
                   FIRPTA.

       (a) In General.--Clause (ii) of section 897(h)(4)(A) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect on January 1, 2010. Notwithstanding the preceding 
     sentence, such amendment shall not apply with respect to the 
     withholding requirement under section 1445 of the Internal 
     Revenue Code of 1986 for any payment made before the date of 
     the enactment of this Act.
       (2) Amounts withheld on or before date of enactment.--In 
     the case of a regulated investment company--
       (A) which makes a distribution after December 31, 2009, and 
     before the date of the enactment of this Act; and
       (B) which would (but for the second sentence of paragraph 
     (1)) have been required to withhold with respect to such 
     distribution under section 1445 of such Code,

     such investment company shall not be liable to any person to 
     whom such distribution was made for any amount so withheld 
     and paid over to the Secretary of the Treasury.

     SEC. 673. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

       (a) In General.--Sections 953(e)(10) and 954(h)(9) are each 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Conforming Amendment.--Section 953(e)(10) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2009, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 674. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED 
                   CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN 
                   PERSONAL HOLDING COMPANY RULES.

       (a) In General.--Subparagraph (C) of section 954(c)(6) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2009, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 675. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING 
                   CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) In General.--Paragraph (2) of section 1367(a) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 676. EMPOWERMENT ZONE TAX INCENTIVES.

       (a) In General.--Section 1391 is amended--
       (1) by striking ``December 31, 2009'' in subsection 
     (d)(1)(A)(i) and inserting ``December 31, 2011''; and
       (2) by striking the last sentence of subsection (h)(2).
       (b) Increased Exclusion of Gain on Stock of Empowerment 
     Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is 
     amended--
       (1) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2016''; and
       (2) by striking ``2014'' in the heading and inserting 
     ``2016''.
       (c) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of an empowerment 
     zone the nomination for which included a termination date 
     which is contemporaneous with the date specified in 
     subparagraph (A)(i) of section 1391(d)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation unless, after the date of 
     the enactment of this section, the entity which made such 
     nomination reconfirms such termination date, or amends the 
     nomination to provide for a new termination date, in such 
     manner as the Secretary of the Treasury (or the Secretary's 
     designee) may provide.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2009.

     SEC. 677. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF 
                   COLUMBIA.

       (a) In General.--Subsection (f) of section 1400 is amended 
     by striking ``December 31, 2009'' each place it appears and 
     inserting ``December 31, 2011''.
       (b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) 
     of section 1400A is amended by striking ``December 31, 2009'' 
     and inserting ``December 31, 2011''.
       (c) Zero-percent Capital Gains Rate.--
       (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
     (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (2) Limitation on period of gains.--
       (A) In general.--Paragraph (2) of section 1400B(e) is 
     amended--
       (i) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2016''; and
       (ii) by striking ``2014'' in the heading and inserting 
     ``2016''.
       (B) Partnerships and s-corps.--Paragraph (2) of section 
     1400B(g) is amended by striking ``December 31, 2014'' and 
     inserting ``December 31, 2016''.
       (d) First-time Homebuyer Credit.--Subsection (i) of section 
     1400C is amended by

[[Page S8415]]

     striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to periods after December 31, 2009.
       (2) Tax-exempt dc empowerment zone bonds.--The amendment 
     made by subsection (b) shall apply to bonds issued after 
     December 31, 2009.
       (3) Acquisition dates for zero-percent capital gains 
     rate.--The amendments made by subsection (c) shall apply to 
     property acquired or substantially improved after December 
     31, 2009.
       (4) Homebuyer credit.--The amendment made by subsection (d) 
     shall apply to homes purchased after December 31, 2009.

     SEC. 678. RENEWAL COMMUNITY TAX INCENTIVES.

       (a) In General.--Subsection (b) of section 1400E is 
     amended--
       (1) by striking ``December 31, 2009'' in paragraphs (1)(A) 
     and (3) and inserting ``December 31, 2011''; and
       (2) by striking ``January 1, 2010'' in paragraph (3) and 
     inserting ``January 1, 2012''.
       (b) Zero-percent Capital Gains Rate.--
       (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
     (4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (2) Limitation on period of gains.--Paragraph (2) of 
     section 1400F(c) is amended--
       (A) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2016''; and
       (B) by striking ``2014'' in the heading and inserting 
     ``2016''.
       (3) Clerical amendment.--Subsection (d) of section 1400F is 
     amended by striking ``and `December 31, 2014' for `December 
     31, 2014' ''.
       (c) Commercial Revitalization Deduction.--
       (1) In general.--Subsection (g) of section 1400I is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     1400I(d)(2) is amended by striking ``after 2001 and before 
     2010'' and inserting ``which begins after 2001 and before the 
     date referred to in subsection (g)''.
       (d) Increased Expensing Under Section 179.--Subparagraph 
     (A) of section 1400J(b)(1) is amended by striking ``January 
     1, 2010'' and inserting ``January 1, 2012''.
       (e) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of a renewal 
     community the nomination for which included a termination 
     date which is contemporaneous with the date specified in 
     subparagraph (A) of section 1400E(b)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation unless, after the date of 
     the enactment of this section, the entity which made such 
     nomination reconfirms such termination date, or amends the 
     nomination to provide for a new termination date, in such 
     manner as the Secretary of the Treasury (or the Secretary's 
     designee) may provide.
       (f) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to periods after December 31, 2009.
       (2) Acquisitions.--The amendments made by subsections 
     (b)(1) and (d) shall apply to acquisitions after December 31, 
     2009.
       (3) Commercial revitalization deduction.--
       (A) In general.--The amendment made by subsection (c)(1) 
     shall apply to buildings placed in service after December 31, 
     2009.
       (B) Conforming amendment.--The amendment made by subsection 
     (c)(2) shall apply to calendar years beginning after December 
     31, 2009.

     SEC. 679. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM 
                   EXCISE TAXES TO PUERTO RICO AND THE VIRGIN 
                   ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2009.

     SEC. 680. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

       (a) In General.--Subsection (d) of section 119 of division 
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 6 taxable years'', and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2012''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 681. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS 
                   DETERMINED BY DOMESTIC INVESTMENT.

       (a) In General.--Section 53 is amended by adding at the end 
     the following new subsection:
       ``(g) Election for Corporations With New Domestic 
     Investments.--
       ``(1) In general.--If a corporation elects to have this 
     subsection apply for its first taxable year beginning after 
     December 31, 2009, the limitation imposed by subsection (c) 
     for such taxable year shall be increased by the AMT credit 
     adjustment amount.
       ``(2) AMT credit adjustment amount.--For purposes of 
     paragraph (1), the term `AMT credit adjustment amount' means, 
     the lesser of--
       ``(A) 50 percent of a corporation's minimum tax credit for 
     its first taxable year beginning after December 31, 2009, 
     determined under subsection (b), or
       ``(B) 10 percent of new domestic investments made during 
     such taxable year.
       ``(3) New domestic investments.--For purposes of this 
     subsection, the term `new domestic investments' means the 
     cost of qualified property (as defined in section 
     168(k)(2)(A)(i))--
       ``(A) the original use of which commences with the taxpayer 
     during the taxable year, and
       ``(B) which is placed in service in the United States by 
     the taxpayer during such taxable year.
       ``(4) Credit refundable.--For purposes of subsection (b) of 
     section 6401, the aggregate increase in the credits allowable 
     under this part for any taxable year resulting from the 
     application of this subsection shall be treated as allowed 
     under subpart C (and not under any other subpart). For 
     purposes of section 6425, any amount treated as so allowed 
     shall be treated as a payment of estimated income tax for the 
     taxable year.
       ``(5) Election.--An election under this subsection shall be 
     made at such time and in such manner as prescribed by the 
     Secretary, and once made, may be revoked only with the 
     consent of the Secretary. Not later than 90 days after the 
     date of the enactment of this subsection, the Secretary shall 
     issue guidance specifying such time and manner.
       ``(6) Treatment of certain partnership investments.--For 
     purposes of this subsection, a corporation shall take into 
     account its allocable share of any new domestic investments 
     by a partnership for any taxable year if, and only if, more 
     than 90 percent of the capital and profits interests in such 
     partnership are owned by such corporation (directly or 
     indirectly) at all times during such taxable year.
       ``(7) No double benefit.--
       ``(A) In general.--A corporation making an election under 
     this subsection may not make an election under subparagraph 
     (H) of section 172(b)(1).
       ``(B) Special rules with respect to taxpayers previously 
     electing applicable net operating losses.--In the case of a 
     corporation which made an election under subparagraph (H) of 
     section 172(b)(1) and elects the application of this 
     subsection--
       ``(i) Election of applicable net operating loss treated as 
     revoked.--The election under such subparagraph (H) shall 
     (notwithstanding clause (iii)(II) of such subparagraph) be 
     treated as having been revoked by the taxpayer.
       ``(ii) Coordination with provision for expedited refund.--
     The amount otherwise treated as a payment of estimated income 
     tax under the last sentence of paragraph (4) shall be reduced 
     (but not below zero) by the aggregate increase in unpaid tax 
     liability determined under this chapter by reason of the 
     revocation of the election under clause (i).
       ``(iii) Application of statute of limitations.--With 
     respect to the revocation of an election under clause (i)--

       ``(I) the statutory period for the assessment of any 
     deficiency attributable to such revocation shall not expire 
     before the end of the 3-year period beginning on the date of 
     the election to have this subsection apply, and
       ``(II) such deficiency may be assessed before the 
     expiration of such 3-year period notwithstanding the 
     provisions of any other law or rule of law which would 
     otherwise prevent such assessment.

       ``(C) Exception for eligible small businesses.--
     Subparagraphs (A) and (B) shall not apply to an eligible 
     small business as defined in section 172(b)(1)(H)(v)(II).
       ``(8) Regulations.--The Secretary may issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this subsection, 
     including to prevent fraud and abuse under this 
     subsection.''.
       (b) Conforming Amendments.--
       (1) Section 6211(b)(4)(A) is amended by inserting 
     ``53(g),'' after ``53(e),''.
       (2) Section 1324(b)(2) of title 31, United States Code, is 
     amended by inserting ``53(g),'' after ``53(e),''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 682. REDUCTION IN CORPORATE RATE FOR QUALIFIED TIMBER 
                   GAIN.

       (a) In General.--Paragraph (1) of section 1201(b) is 
     amended by striking `` `ending' '' and all that follows 
     through `` `such date' ''.
       (b) Conforming Amendment.--Paragraph (3) of section 1201(b) 
     is amended to read as follows:
       ``(3) Application of subsection.--The qualified timber gain 
     for any taxable year shall not exceed the qualified timber 
     gain which would be determined by not taking into account any 
     portion of such taxable year after December 31, 2011.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 22, 2009.

     SEC. 683. STUDY OF EXTENDED TAX EXPENDITURES.

       (a) Findings.--Congress finds the following:
       (1) Currently, the aggregate cost of Federal tax 
     expenditures rivals, or even exceeds, the amount of total 
     Federal discretionary spending.
       (2) Given the escalating public debt, a critical 
     examination of this use of taxpayer dollars is essential.
       (3) Additionally, tax expenditures can complicate the 
     Internal Revenue Code of 1986 for

[[Page S8416]]

     taxpayers and complicate tax administration for the Internal 
     Revenue Service.
       (4) To facilitate a better understanding of tax 
     expenditures in the future, it is constructive for 
     legislation extending these provisions to include a study of 
     such provisions.
       (b) Requirement to Report.--Not later than December 15, 
     2011, the Chief of Staff of the Joint Committee on Taxation, 
     in consultation with the Comptroller General of the United 
     States, shall submit to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate a report on each tax expenditure (as defined in 
     section 3(3) of the Congressional Budget Impoundment Control 
     Act of 1974 (2 U.S.C. 622(3)) extended by this title.
       (c) Rolling Submission of Reports.--The Chief of Staff of 
     the Joint Committee on Taxation shall initially submit the 
     reports for each such tax expenditure enacted in this 
     subtitle (relating to business tax relief) and subtitle A 
     (relating to energy) in order of the tax expenditure 
     incurring the least aggregate cost to the greatest aggregate 
     cost (determined by reference to the cost estimate of this 
     Act by the Joint Committee on Taxation). Thereafter, such 
     reports may be submitted in such order as the Chief of Staff 
     determines appropriate.
       (d) Contents of Report.--Such reports shall contain the 
     following:
       (1) An explanation of the tax expenditure and any relevant 
     economic, social, or other context under which it was first 
     enacted.
       (2) A description of the intended purpose of the tax 
     expenditure.
       (3) An analysis of the overall success of the tax 
     expenditure in achieving such purpose, and evidence 
     supporting such analysis.
       (4) An analysis of the extent to which further extending 
     the tax expenditure, or making it permanent, would contribute 
     to achieving such purpose.
       (5) A description of the direct and indirect beneficiaries 
     of the tax expenditure, including identifying any unintended 
     beneficiaries.
       (6) An analysis of whether the tax expenditure is the most 
     cost-effective method for achieving the purpose for which it 
     was intended, and a description of any more cost-effective 
     methods through which such purpose could be accomplished.
       (7) A description of any unintended effects of the tax 
     expenditure that are useful in understanding the tax 
     expenditure's overall value.
       (8) An analysis of how the tax expenditure could be 
     modified to better achieve its original purpose.
       (9) A brief description of any interactions (actual or 
     potential) with other tax expenditures or direct spending 
     programs in the same or related budget function worthy of 
     further study.
       (10) A description of any unavailable information the staff 
     of the Joint Committee on Taxation may need to complete a 
     more thorough examination and analysis of the tax 
     expenditure, and what must be done to make such information 
     available.
       (e) Minimum Analysis by Deadline.--In the event the Chief 
     of Staff of the Joint Committee on Taxation concludes it will 
     not be feasible to complete all reports by the date specified 
     in subsection (a), at a minimum, the reports for each tax 
     expenditure enacted in this subtitle (relating to business 
     tax relief) and subtitle A (relating to energy) shall be 
     completed by such date.

            Subtitle E--Temporary Disaster Relief Provisions

                    PART I--NATIONAL DISASTER RELIEF

     SEC. 691. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
                   REQUIREMENTS.

       (a) In General.--Paragraph (11) of section 143(k) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Special Rule for Residences Destroyed in Federally 
     Declared Disasters.--Paragraph (13) of section 143(k), as 
     redesignated by subsection (c), is amended by striking 
     ``January 1, 2010'' in subparagraphs (A)(i) and (B)(i) and 
     inserting ``January 1, 2012''.
       (c) Technical Amendment.--Subsection (k) of section 143 is 
     amended by redesignating the second paragraph (12) (relating 
     to special rules for residences destroyed in federally 
     declared disasters) as paragraph (13).
       (d) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendment made by this section shall apply to 
     bonds issued after December 31, 2009.
       (2) Residences destroyed in federally declared disasters.--
     The amendments made by subsection (b) shall apply with 
     respect to disasters occurring after December 31, 2009.
       (3) Technical amendment.--The amendment made by subsection 
     (c) shall take effect as if included in section 709 of the 
     Tax Extenders and Alternative Minimum Tax Relief Act of 2008.

     SEC. 692. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED 
                   DISASTERS.

       (a) In General.--Subclause (I) of section 165(h)(3)(B)(i) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) $500 Limitation.--Paragraph (1) of section 165(h) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to federally declared disasters occurring after 
     December 31, 2009.
       (2) $500 limitation.--The amendment made by subsection (b) 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 693. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED 
                   DISASTER PROPERTY.

       (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to disasters occurring after December 31, 2009.

     SEC. 694. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY 
                   DECLARED DISASTERS.

       (a) In General.--Subclause (I) of section 172(j)(1)(A)(i) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to losses attributable to disasters occurring 
     after December 31, 2009.

     SEC. 695. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       (a) In General.--Subparagraph (A) of section 198A(b)(2) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures on account of disasters occurring 
     after December 31, 2009.

                      PART II--REGIONAL PROVISIONS

                    Subpart A--New York Liberty Zone

     SEC. 696. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL 
                   AND RESIDENTIAL REAL PROPERTY.

       (a) In General.--Subparagraph (A) of section 1400L(b)(2) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 697. TAX-EXEMPT BOND FINANCING.

       (a) In General.--Subparagraph (D) of section 1400L(d)(2) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2009.

                           Subpart B--GO Zone

     SEC. 698. INCREASE IN REHABILITATION CREDIT.

       (a) In General.--Subsection (h) of section 1400N is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.

     SEC. 699. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN 
                   INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR 
                   EMPLOYERS INSIDE DISASTER AREAS.

       (a) In General.--Paragraph (1) of section 201(b) of the 
     Katrina Emergency Tax Relief Act of 2005 is amended by 
     striking ``4-year'' and inserting ``5-year''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals hired after August 27, 2009.

     SEC. 700. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR 
                   BUILDINGS IN GO ZONES.

       Section 1400N(c)(5) is amended by striking ``January 1, 
     2011'' and inserting ``January 1, 2013''.

    TITLE VII--TECHNICAL CORRECTIONS TO PENSION FUNDING LEGISLATION

     SEC. 701. DEFINITION OF ELIGIBLE PLAN YEAR.

       (a) Amendment to ERISA.--Clause (v) of section 303(c)(2)(D) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1083(c)(2)(D)), as added by section 201(a)(1) of the 
     Preservation of Access to Care for Medicare Beneficiaries and 
     Pension Relief Act of 2010, is amended--
       (1) by striking ``on or after the date of the enactment of 
     this subparagraph'' and inserting ``on or after June 25, 2010 
     (March 10, 2010, in the case of an eligible plan)'', and
       (2) by adding at the end the following new sentence: ``For 
     purposes of the preceding sentence, a plan shall be treated 
     as an eligible plan only if, as of the date of the election 
     with respect to the plan under clause (i)--
       ``(A) the plan sponsor is not a debtor in a case under 
     title 11, United States Code, or similar Federal or State 
     law,
       ``(B) there are no unpaid minimum required contributions 
     with respect to the plan for purposes of section 4971 of the 
     Internal Revenue Code of 1986 (imposing an excise tax when 
     minimum required contributions are not paid by the due date 
     for the plan year),
       ``(C) there are no outstanding liens in favor of the plan 
     under subsection (k), and
       ``(D) the plan sponsor has not initiated a distress 
     termination of the plan under section 4041.''.
       (b) Amendment to Internal Revenue Code of 1986.--Clause (v) 
     of section 430(c)(2)(D) of the Internal Revenue Code of 1986, 
     as added by section 201(b)(1) of the Preservation of Access 
     to Care for Medicare Beneficiaries and Pension Relief Act of 
     2010, is amended--
       (1) by striking ``on or after the date of the enactment of 
     this subparagraph'' and inserting ``on or after June 25, 2010 
     (March 10, 2010, in the case of an eligible plan)'', and
       (2) by adding at the end the following new sentence: ``For 
     purposes of the preceding sentence, a plan shall be treated 
     as an eligible plan only if, as of the date of the election 
     with respect to the plan under clause (i)--

[[Page S8417]]

       ``(A) the plan sponsor is not a debtor in a case under 
     title 11, United States Code, or similar Federal or State 
     law,
       ``(B) there are no unpaid minimum required contributions 
     with respect to the plan for purposes of section 4971 
     (imposing an excise tax when minimum required contributions 
     are not paid by the due date for the plan year),
       ``(C) there are no outstanding liens in favor of the plan 
     under subsection (k), and
       ``(D) the plan sponsor has not initiated a distress 
     termination of the plan under section 4041 of the Employee 
     Retirement Income Security Act of 1974.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendments made by 
     the provisions of the Preservation of Access to Care for 
     Medicare Beneficiaries and Pension Relief Act of 2010 to 
     which the amendments relate.

     SEC. 702. ELIGIBLE CHARITY PLANS.

       (a) Definition of Eligible Charity Plans.--
       (1) In general.--Section 104(d) of the Pension Protection 
     Act of 2006, as added by section 202(b) of the Preservation 
     of Access to Care for Medicare Beneficiaries and Pension 
     Relief Act of 2010, is amended to read as follows:
       ``(d) Eligible Charity Plan Defined.--For purposes of this 
     section, a plan shall be treated as an eligible charity plan 
     for a plan year if--
       ``(1) the plan is maintained by one or more employers 
     employing employees who are accruing benefits based on 
     service for the plan year,
       ``(2) such employees are employed in at least 20 States,
       ``(3) more than 98 percent of such employees are employed 
     by an employer described in section 501(c)(3) of such Code 
     and the primary exempt purpose of each such employer is to 
     provide services with respect to children, and
       ``(4) the plan sponsor elects (at such time and in such 
     form and manner as shall be prescribed by the Secretary of 
     the Treasury) to be so treated.
     Any election under this subsection may be revoked only with 
     the consent of the Secretary of the Treasury.''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the amendment made by the 
     provision of the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010 to which the 
     amendment relates (determined after application of the 
     amendment made by subsection (c)), except that a plan sponsor 
     may elect to apply such amendment to plan years beginning on 
     or after January 1, 2011.
       (b) Regulations.--The Secretary of the Treasury may 
     prescribe such regulations as may be necessary to carry out 
     the purposes of the amendments made by section 202(b) of the 
     Preservation of Access to Care for Medicare Beneficiaries and 
     Pension Relief Act of 2010 and the amendment made by 
     subsection (a).
       (c) Application of New Rules to Eligible Charity Plans.--
       (1) In general.--Paragraph (2) of section 202(c) of the 
     Preservation of Access to Care for Medicare Beneficiaries and 
     Pension Relief Act of 2010 is amended to read as follows:
       ``(2) Eligible charity plans.--The amendments made by 
     subsection (b) shall apply to plan years beginning after 
     December 31, 2010, except that a plan sponsor may elect to 
     apply such amendments to plan years beginning after an 
     earlier date.''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the amendment made by the 
     provision of the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010 to which the 
     amendment relates.

     SEC. 703. SUSPENSION OF CERTAIN FUNDING LEVEL LIMITATIONS.

       (a) Limitations on Benefit Accruals.--Section 203 of the 
     Worker, Retiree, and Employer Recovery Act of 2008 (Public 
     Law 110-458; 122 Stat. 5118) is amended--
       (1) by striking ``the first plan year beginning during the 
     period beginning on October 1, 2008, and ending on September 
     30, 2009'' and inserting ``any plan year beginning during the 
     period beginning on October 1, 2008, and ending on December 
     31, 2011'';
       (2) by striking ``substituting'' and all that follows 
     through ``for such plan year'' and inserting ``substituting 
     for such percentage the plan's adjusted funding target 
     attainment percentage for the last plan year ending before 
     September 30, 2009,''; and
       (3) by striking ``for the preceding plan year is greater'' 
     and inserting ``for such last plan year is greater''.
       (b) Social Security Level-income Options.--
       (1) ERISA amendment.--Section 206(g)(3)(E) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following new sentence: ``For purposes of 
     applying clause (i) in the case of payments the annuity 
     starting date for which occurs on or before December 31, 
     2011, payments under a social security leveling option shall 
     be treated as not in excess of the monthly amount paid under 
     a single life annuity (plus an amount not in excess of a 
     social security supplement described in the last sentence of 
     section 204(b)(1)(G)).''.
       (2) IRC amendment.--Section 436(d)(5) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new sentence: ``For purposes of applying 
     subparagraph (A) in the case of payments the annuity starting 
     date for which occurs on or before December 31, 2011, 
     payments under a social security leveling option shall be 
     treated as not in excess of the monthly amount paid under a 
     single life annuity (plus an amount not in excess of a social 
     security supplement described in the last sentence of section 
     411(a)(9)).''.
       (3) Effective date.--
       (A) In general.--The amendments made by this subsection 
     shall apply to annuity payments the annuity starting date for 
     which occurs on or after January 1, 2011.
       (B) Permitted application.--A plan shall not be treated as 
     failing to meet the requirements of sections 206(g) of the 
     Employee Retirement Income Security Act of 1974 (as amended 
     by this subsection) and section 436(d) of the Internal 
     Revenue Code of 1986 (as so amended) if the plan sponsor 
     elects to apply the amendments made by this subsection to 
     payments the annuity starting date for which occurs before 
     January 1, 2011.
       (c) Repeal of Related Provisions.--The provisions of, and 
     the amendments made by, section 203 of the Preservation of 
     Access to Care for Medicare Beneficiaries and Pension Relief 
     Act of 2010 are repealed and the Employee Retirement Income 
     Security Act of 1974, the Internal Revenue Code of 1986, and 
     the Worker, Retiree, and Employer Recovery Act of 2008 
     (Public Law 110-458; 122 Stat. 5118) shall be applied as if 
     such section had never been enacted.

     SEC. 704. OPTIONAL USE OF 30-YEAR AMORTIZATION PERIODS.

       (a) Amendment to ERISA.--Paragraph (8) of section 304(b) of 
     the Employee Retirement Income Security Act of 1974, as 
     amended by the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010, is amended by 
     striking ``after August 31, 2008'' each place it appears in 
     subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II), and 
     inserting ``on or after June 30, 2008''.
       (b) Amendment to Internal Revenue Code of 1986 .--Paragraph 
     (8) of section 431(b) of the Internal Revenue Code of 1986, 
     as amended by the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010, is amended by 
     striking ``after August 31, 2008'' each place it appears in 
     subparagraphs (A)(i) and (B)(i)(I) and inserting ``on or 
     after June 30, 2008''.
       (c) Effective Date and Special Rules.--The amendments made 
     by this section shall take effect as of the first day of the 
     first plan year beginning on or after June 30, 2008, except 
     that any election a plan sponsor makes pursuant to this 
     section or the amendments made thereby that affects the 
     plan's funding standard account for any plan year beginning 
     before October 1, 2009, shall be disregarded for purposes of 
     applying the provisions of section 305 of the Employee 
     Retirement Income Security Act of 1974 and section 432 of the 
     Internal Revenue Code of 1986 to that plan year.

TITLE VIII--TEMPORARY EXTENSION OF CERTAIN PROVISIONS ENDING IN 2010 OR 
                                  2011

                   Subtitle A--Unemployment Benefits

     SEC. 801. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``November 30, 2010'' each place it appears 
     and inserting ``January 3, 2012'';
       (B) in the heading for subsection (b)(2), by striking 
     ``november 30, 2010'' and inserting ``january 3, 2012''; and
       (C) in subsection (b)(3), by striking ``April 30, 2011'' 
     and inserting ``June 9, 2012''.
       (2) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``December 1, 2010'' each place it appears 
     and inserting ``January 4, 2012''; and
       (B) in subsection (c), by striking ``May 1, 2011'' and 
     inserting ``June 11, 2012''.
       (3) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``April 30, 2011'' and inserting ``June 
     10, 2012''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (E), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (F) the following:
       ``(G) the amendments made by section 2(a)(1) of the ; 
     and''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Unemployment Compensation Extension Act of 2010 (Public Law 
     111-205).

     SEC. 802. TEMPORARY MODIFICATION OF INDICATORS UNDER THE 
                   EXTENDED BENEFIT PROGRAM.

       (a) Indicator.--Section 203(d) of the Federal-State 
     Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
     3304 note) is amended, in the flush matter following 
     paragraph (2), by inserting after the first sentence the 
     following sentence: ``Effective with respect to compensation 
     for weeks of unemployment beginning after the date of 
     enactment of the (or, if later, the date established pursuant 
     to State law), and ending on or before December 31, 2011, the 
     State may by law

[[Page S8418]]

     provide that the determination of whether there has been a 
     state `on' or `off' indicator beginning or ending any 
     extended benefit period shall be made under this subsection 
     as if the word `two' were `three' in subparagraph (1)(A).''.
       (b) Alternative Trigger.--Section 203(f) of the Federal-
     State Extended Unemployment Compensation Act of 1970 (26 
     U.S.C. 3304 note) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Effective with respect to compensation for weeks of 
     unemployment beginning after the date of enactment of the 
     (or, if later, the date established pursuant to State law), 
     and ending on or before December 31, 2011, the State may by 
     law provide that the determination of whether there has been 
     a state `on' or `off' indicator beginning or ending any 
     extended benefit period shall be made under this subsection 
     as if the word `either' were `any', the word ``both'' were 
     `all', and the figure `2' were `3' in clause (1)(A)(ii).''.

                       Subtitle B--Small Business

     SEC. 811. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON 
                   CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Paragraph (4) of section 1202(a) is 
     amended--
       (1) by striking ``January 1, 2011'' and inserting ``January 
     1, 2012'', and
       (2) by inserting ``and 2011'' after ``2010'' in the heading 
     thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after December 31, 2010.

     SEC. 812. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES CARRIED BACK 5 YEARS.

       (a) In General.--Subparagraph (A) of section 39(a)(4) is 
     amended by inserting ``or 2011'' after ``2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2010.

     SEC. 813. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES NOT SUBJECT TO ALTERNATIVE MINIMUM 
                   TAX.

       (a) In General.--Paragraph (5) of section 38(c) is 
     amended--
       (1) by inserting ``or 2011'' after ``2010'' in subparagraph 
     (A), and
       (2) by inserting ``or 2011'' after ``2010'' in the heading 
     thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2010, and to carrybacks of such credits.

     SEC. 814. EXTENSION OF INCREASE IN AMOUNT ALLOWED AS 
                   DEDUCTION FOR START-UP EXPENDITURES.

       (a) Start-up Expenditures.--Paragraph (3) of section 195(b) 
     is amended--
       (1) by inserting ``or 2011'' after ``2010'', and
       (2) by inserting ``or 2011'' after ``2010'' in the heading 
     thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2010.

     SEC. 815. EXTENSION OF DEDUCTION FOR HEALTH INSURANCE COSTS 
                   IN COMPUTING SELF-EMPLOYMENT TAXES.

       (a) In General.--Paragraph (4) of section 162(l) is amended 
     by striking ``December 31, 2010'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                           Subtitle C--Energy

     SEC. 821. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

       (a) Extension of Credit.--Paragraph (2) of section 30C(g) 
     is amended by striking ``December 31, 2010'' and inserting 
     ``December 31, 2011.''.
       (b) Clarification of Definition of Electric Refueling 
     Property.--Subparagraph (B) of section 179A(d)(3) is amended 
     to read as follows:
       ``(B) exclusively used for the recharging of motor vehicles 
     propelled by electricity (other than property used for the 
     generation of electricity).''.
       (c) Effective Dates.--
       (1) Extension.--The amendment made by subsection (a) shall 
     apply to property placed in service after December 31, 2010.
       (2) Clarification.--The amendment made by subsection (b) 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 822. ELECTIVE PAYMENT FOR SPECIFIED ENERGY PROPERTY.

       (a) In General.--Chapter 65 is amended by adding at the end 
     the following new subchapter:

               ``Subchapter C--Direct Payment Provisions

``Sec. 6451. Elective payment for specified energy property.

     ``SEC. 6451. ELECTIVE PAYMENT FOR SPECIFIED ENERGY PROPERTY.

       ``(a) Elective Payment.--
       ``(1) In general.--Any eligible person electing the 
     application of this section with respect to any specified 
     energy property originally placed in service by such person 
     during the taxable year shall be treated as making a payment 
     against the tax imposed by subtitle A for the taxable year 
     equal to the applicable percentage of the basis of such 
     property. Such payment shall be treated as made on the later 
     of the due date of the return of such tax or the date on 
     which such return is filed.
       ``(2) Eligibility.--A person shall not be eligible to elect 
     the application of this section unless such person has been 
     certified as eligible by the Secretary, under such rules as 
     the Secretary, in consultation with the Secretary of Energy, 
     may prescribe.
       ``(b) Applicable Percentage.--For purposes of this section, 
     the term `applicable percentage' means--
       ``(1) 30 percent in the case of any property described in 
     paragraph (2)(A)(i) or (5) of section 48(a), and
       ``(2) 10 percent in the case of any other property.
       ``(c) Dollar Limitations.--In the case of property 
     described in paragraph (1), (2), or (3) of section 48(c), the 
     payment otherwise treated as made under subsection (a) with 
     respect to such property shall not exceed the limitation 
     applicable to such property under such paragraph.
       ``(d) Specified Energy Property.--For purposes of this 
     section--
       ``(1) In general.--The term `specified energy property' 
     means energy property (within the meaning of section 48) 
     which--
       ``(A) is originally placed in service before January 1, 
     2012, or
       ``(B) is originally placed in service on or after such date 
     and before the credit termination date with respect to such 
     property, but only if the construction of such property began 
     before January 1, 2012.
       ``(2) Credit termination date.--The term `credit 
     termination date' means--
       ``(A) in the case of any energy property which is part of a 
     facility described in paragraph (1) of section 45(d), January 
     1, 2013,
       ``(B) in the case of any energy property which is part of a 
     facility described in paragraph (2), (3), (4), (6), (7), (9), 
     or (11) of section 45(d), January 1, 2014, and
       ``(C) in the case of any energy property described in 
     section 48(a)(3), January 1, 2017.
     In the case of any property which is described in 
     subparagraph (C) and also in another subparagraph of this 
     paragraph, subparagraph (C) shall apply with respect to such 
     property.
       ``(e) Coordination With Production and Investment 
     Credits.--In the case of any property with respect to which 
     an election is made under this section--
       ``(1) Denial of production and investment credits.--No 
     credit shall be determined under section 45 or 48 with 
     respect to such property for the taxable year in which such 
     property is originally placed in service or any subsequent 
     taxable year.
       ``(2) Reduction of payment by progress expenditures already 
     taken into account.--The amount of the payment treated as 
     made under subsection (a) with respect to such property shall 
     be reduced by the aggregate amount of credits determined 
     under section 48 with respect to such property for all 
     taxable years preceding the taxable year in which such 
     property is originally placed in service.
       ``(f) Special Rules for Certain Non-taxpayers.--
       ``(1) Denial of payment.--Subsection (a) shall not apply 
     with respect to any property originally placed in service 
     by--
       ``(A) any governmental entity other than a governmental 
     unit which is a State utility with a service obligation (as 
     such terms are defined in section 217 of the Federal Power 
     Act), or
       ``(B) any organization described in section 501(c) (other 
     than a mutual or cooperative electric company described in 
     section 501(c)(12)) or 401(a) and exempt from tax under 
     section 501(a).
       ``(2) Exception for property used in unrelated trade or 
     business.--Paragraph (1) shall not apply with respect to any 
     property originally placed in service by an entity described 
     in section 511(a)(2) if substantially all of the income 
     derived from such property by such entity is unrelated 
     business taxable income (as defined in section 512).
       ``(3) Special rules for partnerships and s corporations.--
     In the case of property originally placed in service by a 
     partnership or an S corporation--
       ``(A) the election under subsection (a) may be made only by 
     such partnership or S corporation,
       ``(B) such partnership or S corporation shall be treated as 
     making the payment referred to in subsection (a) only to the 
     extent of the proportionate share of such partnership or S 
     corporation as is owned by persons who would be treated as 
     making such payment if the property were originally placed in 
     service by such persons, and
       ``(C) the return required to be made by such partnership or 
     S corporation under section 6031 or 6037 (as the case may be) 
     shall be treated as a return of tax for purposes of 
     subsection (a).
     For purposes of subparagraph (B), rules similar to the rules 
     of section 168(h)(6) (other than subparagraph (F) thereof) 
     shall apply. For purposes of applying such rules, the term 
     `tax-exempt entity' shall not include any entity which is a 
     governmental unit which is a State utility with a service 
     obligation (as such terms are defined in section 217 of the 
     Federal Power Act) or which is a mutual or cooperative 
     electric company described in section 501(c)(12).
       ``(g) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Other definitions.--Terms used in this section which 
     are also used in section 45 or 48 shall have the same 
     meanings for purposes of this section as when used in such 
     sections.

[[Page S8419]]

       ``(2) Application of recapture rules, etc.--Except as 
     otherwise provided by the Secretary, rules similar to the 
     rules of section 50 (other than paragraphs (1) and (2) of 
     subsection (d) thereof), and section 1603 of the American 
     Recovery and Reinvestment Act of 2009, shall apply.
       ``(3) Exclusion from gross income.--Any credit or refund 
     allowed or made by reason of this section shall not be 
     includible in gross income or alternative minimum taxable 
     income.
       ``(4) Exception for certain projects.--Subsection (a) shall 
     not apply to any governmental unit or cooperative electric 
     company (as defined in section 54(j)(1)) with respect to any 
     specified energy property which is described in section 
     48(a)(5)(D) if such entity has issued any bond--
       ``(A) which is designated as a clean renewable energy bond 
     under section 54 of the Internal Revenue Code of 1986 or as a 
     new clean renewable energy bond under section 54C of such 
     Code, and
       ``(B) the proceeds of which are used for expenditures in 
     connection with the same qualified facility with respect to 
     which such specified energy property is a part.
       ``(5) Coordination with grant program.--If a grant under 
     section 1603 of the American Recovery and Reinvestment Tax 
     Act of 2009 is made with respect to any specified energy 
     property--
       ``(A) no election may be made under subsection (a) with 
     respect to such property on or after the date of such grant, 
     and
       ``(B) if such grant is made after such election, such 
     property shall be treated as having ceased to be specified 
     energy property immediately after such property was 
     originally placed in service.''.
       (b) Treatment of Grants for Cooperative Electric 
     Companies.--Section 501(c)(12) is amended by adding at the 
     end the following new subparagraph:
       ``(I) In the case of a mutual or cooperative electric 
     company described in this paragraph or an organization 
     described in section 1381(a)(2)(C), subparagraph (A) shall be 
     applied without taking into account any payment made by 
     reason of section 6452.''.
       (c) Conforming Amendments Related to Direct Payment.--
       (1) Subparagraph (A) of section 6211(b)(4)(A) is amended by 
     inserting ``and subchapter C of chapter 65 (including any 
     payment treated as made under such subchapter)'' after 
     ``6431''.
       (2) Subparagraph (B) of section 6425(c)(1) is amended--
       (A) by striking ``the credits'' and inserting ``the sum 
     of--
       ``(i) the credits'',
       (B) by striking the period at the end of clause (i) thereof 
     (as amended by this paragraph) and inserting ``, plus'', and
       (C) by adding at the end the following new clause:
       ``(ii) the payments treated as made under subchapter C of 
     chapter 65.''.
       (3) Paragraph (3) of section 6654(f) is amended--
       (A) by striking ``the credits'' and inserting ``the sum 
     of--
       ``(A) the credits'',
       (B) by striking the period at the end of subparagraph (A) 
     thereof (as amended by this paragraph) and inserting ``, 
     and'', and
       (C) by adding at the end the following new subparagraph:
       ``(B) the payments treated as made under subchapter C of 
     chapter 65.''.
       (4) Subparagraph (B) of section 6655(g)(1) is amended--
       (A) by striking ``the credits'' and inserting ``the sum 
     of--
       ``(i) the credits'',
       (B) by striking the period at the end of clause (i) thereof 
     (as amended by this paragraph) and inserting ``, plus'', and
       (C) by adding at the end the following new clause:
       ``(ii) the payments treated as made under subchapter C of 
     chapter 65.''.
       (5) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``, or from the 
     provisions of subchapter C of chapter 65 of such Code'' 
     before the period at the end.
       (6) The table of subchapters for chapter 65 is amended by 
     adding at the end the following new item:

             ``subchapter c. direct payment provisions.''.

       (d) Clarification of Application of Grants for Specified 
     Energy Property to Certain Regulated Companies.--The first 
     sentence of section 1603(f) of the American Recovery and 
     Reinvestment Tax Act of 2009 is amended by inserting ``(other 
     than subsection (d)(2) thereof)'' after ``section 50 of the 
     Internal Revenue Code of 1986''.
       (e) Technical Amendments.--
       (1) Paragraphs (1) and (2) of section 1603(a) of the 
     American Recovery and Reinvestment Tax Act of 2009 are each 
     amended by striking ``is placed in service'' and inserting 
     ``is originally placed in service by such person''.
       (2) Paragraph (1) of section 1603(d) of such Act is 
     amended--
       (A) by striking ``(within the meaning of section 45 of such 
     Code)'', and
       (B) by inserting before the period at the end the 
     following: ``which would (but for section 48(d)(1) of such 
     Code) be eligible for credit under section 45 of such Code 
     (determined without regard to subsection (a)(2)(B) 
     thereof)''.
       (3) Subsection (f) of section 1603 of such Act, as amended 
     by subsection (d), is amended--
       (A) by striking the second sentence and inserting the 
     following: ``In applying such rules, any increase in tax 
     under chapter 1 of such Code by reason of the property being 
     disposed of (or otherwise ceasing to be specified energy 
     property) shall be imposed on the person to whom the grant 
     was made.'',
       (B) by striking ``In making grants under'' and inserting 
     the following:
       ``(1) In general.--In making grants under'', and
       (C) by adding at the end following new paragraph:
       ``(2) Special rules.--
       ``(A) Recapture of excessive grant amounts.--If the amount 
     of a grant made under this section exceeds the amount 
     allowable as a grant under this section, such excess shall be 
     recaptured under paragraph (1) as if the property to which 
     such grant relates were disposed of immediately after such 
     grant was made.
       ``(B) Grant information not treated as return 
     information.--For purposes of section 6103 of the Internal 
     Revenue Code of 1986, in no event shall any of the following 
     be treated as return information:
       ``(i) The amount of a grant made under subsection (a).
       ``(ii) The identity of the person to whom the grant was 
     made.
       ``(iii) A description of the property with respect to which 
     the grant was made.
       ``(iv) The fact and amount of any recapture.
       ``(v) The content of any report required by the Secretary 
     of the Treasury to be filed in connection with the grant.''.
       (4) Subsection (g) of section 1603 of such Act is amended--
       (A) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively,
       (B) by moving such subparagraphs (as so redesignated) 2 ems 
     to the right,
       (C) by striking ``paragraph (1), (2), or (3)'' in 
     subparagraph (D) (as so redesignated) and inserting 
     ``subparagraphs (A), (B), or (C)'',
       (D) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary'', and
       (E) by adding at the end the following new paragraph:
       ``(2) Exception where property used in unrelated trade or 
     business.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     person or entity described therein to the extent the grant is 
     with respect to unrelated trade or business property.
       ``(B) Unrelated trade or business property.--For purposes 
     of this paragraph, the term `unrelated trade or business 
     property' means any property with respect to which 
     substantially all of the income derived therefrom by an 
     organization described in section 511(a)(2) of the Internal 
     Revenue Code of 1986 is subject to tax under section 511 of 
     such Code.
       ``(C) Information with respect to pass-thrus.--In the case 
     of a partnership or other pass-thru entity, partners or other 
     holders of an equity or profits interest must provide to such 
     partnership or entity such information as the Secretary may 
     require to carry out the purposes of this subsection.''.
       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     originally placed in service after the date of the enactment 
     of this Act.
       (2) Clarification and technical amendments.--The amendments 
     made by subsections (d) and (e) shall take effect as if 
     included in section 1603 of the American Recovery and 
     Reinvestment Tax Act of 2009.

     SEC. 823. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

       (a) In General.--Section 48C(d)(1)(B) is amended by 
     striking ``$2,300,000,000'' and inserting ``$4,800,000,000''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to allocations for applications submitted after 
     December 31, 2010.

     SEC. 824. NEW CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Subsection (c) of section 54C is amended 
     by adding at the end the following new paragraph:
       ``(5) Second additional limitation.--Subject to paragraph 
     (4), the national new clean renewable energy bond limitation 
     shall be increased by $1,600,000,000. Such increase shall be 
     allocated by the Secretary consistent with the rules of 
     paragraphs (2) and (3).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to allocations after December 31, 2010.

     SEC. 825. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED 
                   ALTERNATIVE FUEL VEHICLES.

       (a) In General.--Paragraph (4) of section 30B(k) is amended 
     by striking ``December 31, 2010'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property purchased after December 31, 2010.

     SEC. 826. EXTENSION OF PROVISIONS RELATED TO ALCOHOL USED AS 
                   FUEL.

       (a) Extension of Income Tax Credit for Alcohol Used as 
     Fuel.--
       (1) In general.--Paragraph (1) of section 40(e) is 
     amended--
       (A) by striking ``December 31, 2010'' in subparagraph (A) 
     and inserting ``December 31, 2011'', and

[[Page S8420]]

       (B) by striking ``January 1, 2011'' in subparagraph (B) and 
     inserting ``January 1, 2012''.
       (2) Reduced amount for ethanol blenders.--Subsection (h) of 
     section 40 is amended--
       (A) by striking ``2010'' in paragraph (1) and inserting 
     ``2011'', and
       (B) by striking the period at the end of the table 
     contained in paragraph (2) and adding the following new item:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
``2011..........................  36 cents..........  26.66 cents.''.
------------------------------------------------------------------------


       (3) Reduced rate for small ethanol producers.--Section 
     40(b)(4)(A) is amended by striking ``10 cents'' and inserting 
     ``8 cents''.
       (4) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall apply to periods 
     after December 31, 2010.
       (B) Rate for small ethanol producers.--The amendment made 
     by paragraph (3) shall apply to the sale or use of alcohol 
     after December 31, 2010.
       (b) Extension of Excise Tax Credit for Alcohol Used as 
     Fuel.--
       (1) In general.--Paragraph (6) of section 6426(b) is 
     amended by striking ``December 31, 2010'' and inserting 
     ``December 31, 2011''.
       (2) Reduced applicable amount for ethanol.--Subparagraph 
     (A) of section 6426(b)(2) is amended--
       (A) by striking ``and'' at the end of clause (i),
       (B) in clause (ii)--
       (i) by inserting ``and before 2011'' after ``after 2008'', 
     and
       (ii) by striking the period and inserting ``, and'', and
       (C) by adding at the end the following new clause:
       ``(iii) in the case of calendar years beginning after 2010, 
     36 cents.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to periods after December 31, 2010.
       (c) Extension of Payment for Alcohol Fuel Mixture.--
       (1) In general.--Subparagraph (A) of section 6427(e)(6) is 
     amended by striking ``December 31, 2010'' and inserting 
     ``December 31, 2011''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to sales and uses after December 31, 2010.
       (d) Extension of Additional Duties on Ethanol.--
       (1) In general.--Headings 9901.00.50 and 9901.00.52 of the 
     Harmonized Tariff Schedule of the United States are each 
     amended in the effective period column by striking ``1/1/
     2011'' and inserting ``1/1/2012''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect on January 1, 2011.

     SEC. 827. ENERGY EFFICIENT APPLIANCE CREDIT.

       (a) Dishwashers.--Paragraph (1) of section 45M(b) is 
     amended by striking ``and'' at the end of subparagraph (A), 
     by striking the period at the end of subparagraph (B) and 
     inserting a comma, and by adding at the end the following new 
     subparagraphs:
       ``(C) $25 in the case of a dishwasher which is manufactured 
     in calendar year 2011 and which uses no more than 307 
     kilowatt hours per year and 5.0 gallons per cycle (5.5 
     gallons per cycle for dishwashers designed for greater than 
     12 place settings),
       ``(D) $50 in the case of a dishwasher which is manufactured 
     in calendar year 2011 and which uses no more than 295 
     kilowatt hours per year and 4.25 gallons per cycle (4.75 
     gallons per cycle for dishwashers designed for greater than 
     12 place settings), and
       ``(E) $75 in the case of a dishwasher which is manufactured 
     in calendar year 2011 and which uses no more than 280 
     kilowatt hours per year and 4 gallons per cycle (4.5 gallons 
     per cycle for dishwashers designed for greater than 12 place 
     settings).''.
       (b) Clothes Washers.--Paragraph (2) of section 45M(b) is 
     amended by striking ``and'' at the end of subparagraph (C), 
     by striking the period at the end of subparagraph (D) and 
     inserting a comma, and by adding at the end the following new 
     subparagraphs:
       ``(E) $175 in the case of a top-loading clothes washer 
     manufactured in calendar year 2011 which meets or exceeds a 
     2.2 modified energy factor and does not exceed a 4.5 water 
     consumption factor, and
       ``(F) $225 in the case of a clothes washer manufactured in 
     calendar year 2011--
       ``(i) which is a top-loading clothes washer and which meets 
     or exceeds a 2.4 modified energy factor and does not exceed a 
     4.2 water consumption factor, or
       ``(ii) which is a front-loading clothes washer and which 
     meets or exceeds a 2.8 modified energy factor and does not 
     exceed a 3.5 water consumption factor.''.
       (c) Refrigerators.--Paragraph (3) of section 45M(b) is 
     amended by striking ``and'' at the end of subparagraph (C), 
     by striking the period at the end of subparagraph (D) and 
     inserting a comma, and by adding at the end the following new 
     subparagraphs:
       ``(E) $150 in the case of a refrigerator manufactured in 
     calendar year 2011 which consumes at least 30 percent less 
     energy than the 2001 energy conservation standards, and
       ``(F) $200 in the case of a refrigerator manufactured in 
     calendar year 2011 which consumes at least 35 percent less 
     energy than the 2001 energy conservation standards.''.
       (d) Rebasing of Limitations.--
       (1) In general.--Paragraph (1) of section 45M(e) is amended 
     by striking ``December 31, 2007'' and inserting ``December 
     31, 2010''.
       (2) Exception for certain refrigerators and clothes 
     washers.--Paragraph (2) of section 45M(e) is amended--
       (A) by striking ``subsection (b)(3)(D)'' and inserting 
     ``subsection (b)(3)(F)'', and
       (B) by striking ``subsection (b)(2)(D)'' and inserting 
     ``subsection (b)(2)(F)''.
       (3) Gross receipts limitation.--Paragraph (3) of section 
     45M(e) is amended by striking ``2 percent'' and inserting ``4 
     percent''.
       (e) Direct Payment of Energy Efficient Appliances Tax 
     Credit.--In the case of any taxable year which includes the 
     last day of calendar year 2009 or calendar year 2010, a 
     taxpayer who elects to waive the credit which would otherwise 
     be determined with respect to the taxpayer under section 45M 
     of the Internal Revenue Code of 1986 for such taxable year 
     shall be treated as making a payment against the tax imposed 
     under subtitle A of such Code for such taxable year in an 
     amount equal to 85 percent of the amount of the credit which 
     would otherwise be so determined. Such payment shall be 
     treated as made on the later of the due date of the return of 
     such tax or the date on which such return is filed. Elections 
     under this section may be made separately for 2009 and 2010, 
     but once made shall be irrevocable. No amount shall be 
     includible in gross income or alternative minimum taxable 
     income by reason of this section.
       (f) Effective Dates.--
       (1) In general.--The amendments made by subsections (a), 
     (b), and (c) shall apply to appliances produced after 
     December 31, 2010.
       (2) Limitations.--The amendments made by subsection (d) 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 828. REDUCED DEPRECIATION PERIOD FOR NATURAL GAS 
                   DISTRIBUTION FACILITIES.

       (a) In General.--Clause (viii) of section 168(e)(3)(E) is 
     amended by striking ``January 1, 2011'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2010.

                         Subtitle D--Education

     SEC. 831. QUALIFIED SCHOOL CONSTRUCTION BONDS.

       (a) In General.--Subsection (c) of section 54F is amended--
       (1) by striking ``and'' at the end of paragraph (2),
       (2) by redesignating paragraph (3) as paragraph (4),
       (3) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) $11,000,000,000 for 2011, and'', and
       (4) by striking ``2010'' in paragraph (4) (as redesignated 
     by paragraph (2)) and inserting ``2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2010.

             Subtitle E--Other Employee and Housing Relief

     SEC. 841. MAKING WORK PAY CREDIT.

       (a) In General.--Section 36A(e) is amended by striking 
     ``December 31, 2010'' and inserting ``December 31, 2011''.
       (b) Treatment of Possessions.--Section 1001(b)(1) of the 
     American Recovery and Reinvestment Tax Act of 2009 is amended 
     by striking ``2009 and 2010'' both places it appears and 
     inserting ``2009, 2010, and 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 842. WORK OPPORTUNITY CREDIT.

       (a) In General.--Subparagraph (B) of section 51(c)(4) is 
     amended by striking ``August 31, 2011'' and inserting 
     ``December 31, 2011''.
       (b) Unemployed Veterans and Disconnected Youth.--Paragraph 
     (14) of section 51(d) is amended--
       (1) by striking ``2009 or 2010'' in subparagraph (A) and 
     inserting ``2009, 2010, or 2011'', and
       (2) by striking ``2009 or 2010'' in the heading thereof and 
     inserting ``2009, 2010, or 2011''.
       (c) Effective Dates.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to individuals who begin work for the employer after 
     the date of the enactment of this Act.
       (2) Unemployed veterans and disconnected youth.--The 
     amendments made by subsection (b) shall apply to individuals 
     who begin work for the employer after December 31, 2010.

     SEC. 843. EXCLUSION FROM INCOME FOR BENEFITS PROVIDED TO 
                   VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL 
                   RESPONDERS.

       (a) In General.--Subsection (d) of section 139B is amended 
     by striking ``December 31, 2010'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 844. PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-
                   PROVIDED MASS TRANSIT AND PARKING BENEFITS.

       (a) In General.--Paragraph (2) of section 132(f) is amended 
     by striking ``January 1, 2011'' and inserting ``January 1, 
     2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to months after December 31, 2010.

[[Page S8421]]

     SEC. 845. QUALIFIED MORTGAGE BONDS FOR REFINANCING OF 
                   SUBPRIME LOANS.

       (a) In General.--Subparagraph (D) of section 143(k)(12) is 
     amended by striking ``December 31, 2010'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2010.

                       TITLE IX--OTHER PROVISIONS

     SEC. 901. REPEAL OF EXPANSION OF INFORMATION REPORTING 
                   REQUIREMENTS.

       (a) Repeal of Payments for Property and Other Gross 
     Proceeds.--Subsection (b) of section 9006 of the Patient 
     Protection and Affordable Care Act, and the amendments made 
     thereby, are hereby repealed; and the Internal Revenue Code 
     of 1986 shall be applied as if such subsection, and 
     amendments, had never been enacted.
       (b) Repeal of Application to Corporations; Application of 
     Regulatory Authority.--
       (1) In general.--Section 6041 of the Internal Revenue Code 
     of 1986, as amended by section 9006(a) of the Patient 
     Protection and Affordable Care Act and section 2101 of the 
     Small Business Jobs Act of 2010, is amended by striking 
     subsections (i) and (j) and inserting the following new 
     subsection:
       ``(i) Regulations.--The Secretary may prescribe such 
     regulations and other guidance as may be appropriate or 
     necessary to carry out the purposes of this section, 
     including rules to prevent duplicative reporting of 
     transactions.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to payments made after December 31, 2010.

     SEC. 902. REPEAL OF SUNSET ON TAX TREATMENT OF ALASKA NATIVE 
                   SETTLEMENT TRUSTS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 671 of such Act 
     (relating to tax treatment and information requirements of 
     Alaska Native Settlement Trusts).

     SEC. 903. REPEAL OF SUNSET ON EXPANSION OF AUTHORITY TO 
                   POSTPONE CERTAIN TAX-RELATED DEADLINES.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 802 of such Act 
     (relating to expansion of authority to postpone certain tax-
     related deadlines by reason of Presidentially declared 
     disaster).

     SEC. 904. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       (a) In General.--Subchapter A of chapter 65 is amended by 
     adding at the end the following new section:

     ``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       ``Notwithstanding any other provision of law, any refund 
     (or advance payment with respect to a refundable credit) made 
     to any individual under this title shall not be taken into 
     account as income, and shall not be taken into account as 
     resources for a period of 12 months from receipt, for 
     purposes of determining the eligibility of such individual 
     (or any other individual) for benefits or assistance (or the 
     amount or extent of benefits or assistance) under any Federal 
     program or under any State or local program financed in whole 
     or in part with Federal funds.''.
       (b) Clerical Amendment.--The table of sections for such 
     subchapter is amended by adding at the end the following new 
     item:

``Sec. 6409. Refunds disregarded in the administration of Federal 
              programs and federally assisted programs.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts received after December 31, 2009.

     SEC. 905. TREATMENT OF SECURITIES OF A CONTROLLED CORPORATION 
                   EXCHANGED FOR ASSETS IN CERTAIN 
                   REORGANIZATIONS.

       (a) In General.--Section 361 (relating to nonrecognition of 
     gain or loss to corporations; treatment of distributions) is 
     amended by adding at the end the following new subsection:
       ``(d) Special Rules for Transactions Involving Section 355 
     Distributions.--In the case of a reorganization described in 
     section 368(a)(1)(D) with respect to which stock or 
     securities of the corporation to which the assets are 
     transferred are distributed in a transaction which qualifies 
     under section 355--
       ``(1) this section shall be applied by substituting `stock 
     other than nonqualified preferred stock (as defined in 
     section 351(g)(2))' for `stock or securities' in subsections 
     (a) and (b)(1), and
       ``(2) the first sentence of subsection (b)(3) shall apply 
     only to the extent that the sum of the money and the fair 
     market value of the other property transferred to such 
     creditors does not exceed the adjusted bases of such assets 
     transferred (reduced by the amount of the liabilities assumed 
     (within the meaning of section 357(c))).''.
       (b) Conforming Amendment.--Paragraph (3) of section 361(b) 
     is amended by striking the last sentence.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to exchanges 
     after December 31, 2010.
       (2) Transition rule.--The amendments made by this section 
     shall not apply to any exchange pursuant to a transaction 
     which is--
       (A) made pursuant to a written agreement which was binding 
     on December 31, 2010, and at all times thereafter,
       (B) described in a ruling request submitted to the Internal 
     Revenue Service on or before December 2, 2010, or
       (C) described on or before December 31, 2010, in a public 
     announcement or in a filing with the Securities and Exchange 
     Commission.

                     TITLE X--BUDGETARY PROVISIONS

     SEC. 1001. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose 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, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

     SEC. 1002. EMERGENCY DESIGNATIONS.

       (a) Statutory Paygo.--The provisions of this Act other than 
     those that qualify for the current policy adjustments under 
     section 7 of the Statutory Pay-As-You-Go Act of 2010 (Public 
     Law 111-139; 2 U.S.C. 933(g)) are designated as an emergency 
     requirement pursuant to section 4(g) of such Act (Public Law 
     111-139; 2 U.S.C. 933(g)).
       (b) House of Representatives.--In the House of 
     Representatives, this Act is designated as an emergency for 
     purposes of pay-as-you-go principles.
       (c) Senate.--In the Senate, this Act is designated as an 
     emergency requirement pursuant to section 403(a) of S. Con. 
     Res. 13 (111th Congress), the concurrent resolution on the 
     budget for fiscal year 2010.
                                 ______
                                 
  SA 4728. Mr. REID (for Mr. Schumer (for himself, Ms. Stabenow, and 
Mr. Menendez)) proposed an amendment to amendment SA 4727 proposed by 
Mr. Baucus (for Mr. Reid (for himself, Mr. Rockefeller, Mr. Kerry, Mr. 
Carper, Ms. Stabenow, Mr. Schumer, and Mr. Menendez)) to the bill H.R. 
4853, to amend the Internal Revenue Code of 1986 to extend the funding 
and expenditure authority to the Airport and Airway Trust Fund to amend 
title 49, United States Code, to extend authorizations for the airport 
improvement program, and for other purposes; as follows:

       Strike all after the first word and insert the following:

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

       (a) Short Title.--This Act may be cited as the ``Middle 
     Class Tax Cut Act of 2010''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

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

               TITLE I--PERMANENT MIDDLE CLASS TAX RELIEF

Sec. 101. Repeal of sunset on certain individual income tax rate 
              relief.
Sec. 102. Reduced rates on capital gains and dividends made permanent.
Sec. 103. Repeal of sunset on expansion of child tax credit.
Sec. 104. Repeal of sunset on marriage penalty relief.
Sec. 105. Repeal of sunset on expansion of dependent care credit.
Sec. 106. Repeal of sunset on expansion of adoption credit and adoption 
              assistance programs.
Sec. 107. Repeal of sunset on employer-provided child care credit.
Sec. 108. Repeal of sunset on expansion of earned income tax credit.

                TITLE II--PERMANENT EDUCATION TAX RELIEF

Sec. 201. Repeal of sunset on education individual retirement accounts.
Sec. 202. Repeal of sunset on employer-provided educational assistance.
Sec. 203. Repeal of sunset on student loan interest deduction.
Sec. 204. Repeal of sunset on exclusion of certain scholarships.
Sec. 205. Repeal of sunset on arbitrage rebate exception for 
              governmental bonds.
Sec. 206. Repeal of sunset on treatment of qualified public educational 
              facility bonds.
Sec. 207. Repeal of sunset on American Opportunity Tax Credit.
Sec. 208. Repeal of sunset on allowance of computer technology and 
              equipment as a qualified higher education expense for 
              section 529 accounts.

                 TITLE III--PERMANENT ESTATE TAX RELIEF

Sec. 301. Repeal of EGTRRA sunset.
Sec. 302. Reinstatement of estate tax; repeal of carryover basis.
Sec. 303. Modifications to estate, gift, and generation-skipping 
              transfer taxes.
Sec. 304. Applicable exclusion amount increased by unused exclusion 
              amount of deceased spouse.

[[Page S8422]]

Sec. 305. Exclusion from gross estate of certain farmland so long as 
              farmland use by family continues.
Sec. 306. Increase in limitations on the amount excluded from the gross 
              estate with respect to land subject to a qualified 
              conservation easement.
Sec. 307. Modification of rules for value of certain farm, etc., real 
              property.
Sec. 308. Required minimum 10-year term, etc., for grantor retained 
              annuity trusts.
Sec. 309. Consistent basis reporting between estate and person 
              acquiring property from decedent.

             TITLE IV--PERMANENT SMALL BUSINESS TAX RELIEF

Sec. 401. Repeal of sunset on increased limitations on small business 
              expensing.

                TITLE V--ALTERNATIVE MINIMUM TAX RELIEF

Sec. 501. Extension of increased alternative minimum tax exemption 
              amount.
Sec. 502. Extension of alternative minimum tax relief for nonrefundable 
              personal credits.

  TITLE VI--TEMPORARY EXTENSION OF CERTAIN PROVISIONS EXPIRING IN 2009

                 Subtitle A--Infrastructure Incentives

Sec. 601. Extension of Build America Bonds.
Sec. 602. Exempt-facility bonds for sewage and water supply facilities.
Sec. 603. Extension of exemption from alternative minimum tax treatment 
              for certain tax-exempt bonds.
Sec. 604. Extension and additional allocations of recovery zone bond 
              authority.
Sec. 605. Allowance of new markets tax credit against alternative 
              minimum tax.
Sec. 606. Extension of tax-exempt eligibility for loans guaranteed by 
              Federal home loan banks.
Sec. 607. Extension of temporary small issuer rules for allocation of 
              tax-exempt interest expense by financial institutions.

                           Subtitle B--Energy

Sec. 611. Alternative motor vehicle credit for new qualified hybrid 
              motor vehicles other than passenger automobiles and light 
              trucks.
Sec. 612. Incentives for biodiesel and renewable diesel.
Sec. 613. Credit for electricity produced at certain open-loop biomass 
              facilities.
Sec. 614. Credit for steel industry fuel.
Sec. 615. Credit for producing fuel from coke or coke gas.
Sec. 616. New energy efficient home credit.
Sec. 617. Excise tax credits and outlay payments for alternative fuel 
              and alternative fuel mixtures.
Sec. 618. Special rule for sales or dispositions to implement FERC or 
              State electric restructuring policy for qualified 
              electric utilities.
Sec. 619. Suspension of limitation on percentage depletion for oil and 
              gas from marginal wells.
Sec. 620. Credit for nonbusiness energy property.

                   Subtitle C--Individual Tax Relief

                    PART I--Miscellaneous Provisions

Sec. 631. Deduction for certain expenses of elementary and secondary 
              school teachers.
Sec. 632. Additional standard deduction for State and local real 
              property taxes.
Sec. 633. Deduction of State and local sales taxes.
Sec. 634. Contributions of capital gain real property made for 
              conservation purposes.
Sec. 635. Above-the-line deduction for qualified tuition and related 
              expenses.
Sec. 636. Tax-free distributions from individual retirement plans for 
              charitable purposes.
Sec. 637. Look-thru of certain regulated investment company stock in 
              determining gross estate of nonresidents.

                  PART II--Low-income Housing Credits

Sec. 641. Election for direct payment of low-income housing credit for 
              2010.
Sec. 642. Low-income housing grant election.

                    Subtitle D--Business Tax Relief

Sec. 651. Research credit.
Sec. 652. Indian employment tax credit.
Sec. 653. New markets tax credit.
Sec. 654. Railroad track maintenance credit.
Sec. 655. Mine rescue team training credit.
Sec. 656. Employer wage credit for employees who are active duty 
              members of the uniformed services.
Sec. 657. 5-year depreciation for farming business machinery and 
              equipment.
Sec. 658. 15-year straight-line cost recovery for qualified leasehold 
              improvements, qualified restaurant buildings and 
              improvements, and qualified retail improvements.
Sec. 659. 7-year recovery period for motorsports entertainment 
              complexes.
Sec. 660. Accelerated depreciation for business property on an Indian 
              reservation.
Sec. 661. Enhanced charitable deduction for contributions of food 
              inventory.
Sec. 662. Enhanced charitable deduction for contributions of book 
              inventories to public schools.
Sec. 663. Enhanced charitable deduction for corporate contributions of 
              computer inventory for educational purposes.
Sec. 664. Election to expense mine safety equipment.
Sec. 665. Special expensing rules for certain film and television 
              productions.
Sec. 666. Expensing of environmental remediation costs.
Sec. 667. Deduction allowable with respect to income attributable to 
              domestic production activities in Puerto Rico.
Sec. 668. Modification of tax treatment of certain payments to 
              controlling exempt organizations.
Sec. 669. Exclusion of gain or loss on sale or exchange of certain 
              brownfield sites from unrelated business income.
Sec. 670. Timber REIT modernization.
Sec. 671. Treatment of certain dividends of regulated investment 
              companies.
Sec. 672. RIC qualified investment entity treatment under FIRPTA.
Sec. 673. Exceptions for active financing income.
Sec. 674. Look-thru treatment of payments between related controlled 
              foreign corporations under foreign personal holding 
              company rules.
Sec. 675. Basis adjustment to stock of S corps making charitable 
              contributions of property.
Sec. 676. Empowerment zone tax incentives.
Sec. 677. Tax incentives for investment in the District of Columbia.
Sec. 678. Renewal community tax incentives.
Sec. 679. Temporary increase in limit on cover over of rum excise taxes 
              to Puerto Rico and the Virgin Islands.
Sec. 680. American Samoa economic development credit.
Sec. 681. Election to temporarily utilize unused AMT credits determined 
              by domestic investment.
Sec. 682. Reduction in corporate rate for qualified timber gain.
Sec. 683. Study of extended tax expenditures.

            Subtitle E--Temporary Disaster Relief Provisions

                    PART I--National Disaster Relief

Sec. 691. Waiver of certain mortgage revenue bond requirements.
Sec. 692. Losses attributable to federally declared disasters.
Sec. 693. Special depreciation allowance for qualified disaster 
              property.
Sec. 694. Net operating losses attributable to federally declared 
              disasters.
Sec. 695. Expensing of qualified disaster expenses.

                      PART II--Regional Provisions

                    subpart a--new york liberty zone

Sec. 696. Special depreciation allowance for nonresidential and 
              residential real property.
Sec. 697. Tax-exempt bond financing.

                           subpart b--go zone

Sec. 698. Increase in rehabilitation credit.
Sec. 699. Work opportunity tax credit with respect to certain 
              individuals affected by Hurricane Katrina for employers 
              inside disaster areas.
Sec. 700. Extension of low-income housing credit rules for buildings in 
              GO zones.

    TITLE VII--TECHNICAL CORRECTIONS TO PENSION FUNDING LEGISLATION

Sec. 701. Definition of eligible plan year.
Sec. 702. Eligible charity plans.
Sec. 703. Suspension of certain funding level limitations.
Sec. 704. Optional use of 30-year amortization periods.

TITLE VIII--TEMPORARY EXTENSION OF CERTAIN PROVISIONS ENDING IN 2010 OR 
                                  2011

                   Subtitle A--Unemployment Benefits

Sec. 801. Extension of unemployment insurance provisions.
Sec. 802. Temporary modification of indicators under the extended 
              benefit program.

                       Subtitle B--Small Business

Sec. 811. Temporary exclusion of 100 percent of gain on certain small 
              business stock.
Sec. 812. General business credits of eligible small businesses carried 
              back 5 years.
Sec. 813. General business credits of eligible small businesses not 
              subject to alternative minimum tax.
Sec. 814. Extension of increase in amount allowed as deduction for 
              start-up expenditures.
Sec. 815. Extension of deduction for health insurance costs in 
              computing self-employment taxes.

                           Subtitle C--Energy

Sec. 821. Alternative fuel vehicle refueling property.
Sec. 822. Elective payment for specified energy property.

[[Page S8423]]

Sec. 823. Qualifying advanced energy project credit.
Sec. 824. New clean renewable energy bonds.
Sec. 825. Alternative motor vehicle credit for new qualified 
              alternative fuel vehicles.
Sec. 826. Extension of provisions related to alcohol used as fuel.
Sec. 827. Energy efficient appliance credit.
Sec. 828. Reduced depreciation period for natural gas distribution 
              facilities.

                         Subtitle D--Education

Sec. 831. Qualified school construction bonds.

             Subtitle E--Other Employee and Housing Relief

Sec. 841. Making work pay credit.
Sec. 842. Work opportunity credit.
Sec. 843. Exclusion from income for benefits provided to volunteer 
              firefighters and emergency medical responders.
Sec. 844. Parity for exclusion from income for employer-provided mass 
              transit and parking benefits.
Sec. 845. Qualified mortgage bonds for refinancing of subprime loans.

                       TITLE IX--OTHER PROVISIONS

Sec. 901. Repeal of expansion of information reporting requirements.
Sec. 902. Repeal of sunset on tax treatment of Alaska Native Settlement 
              Trusts.
Sec. 903. Repeal of sunset on expansion of authority to postpone 
              certain tax-related deadlines.
Sec. 904. Refunds disregarded in the administration of Federal programs 
              and federally assisted programs.
Sec. 905. Treatment of securities of a controlled corporation exchanged 
              for assets in certain reorganizations.

                     TITLE X--BUDGETARY PROVISIONS

Sec. 1001. Determination of budgetary effects.
Sec. 1002. Emergency designations.

               TITLE I--PERMANENT MIDDLE CLASS TAX RELIEF

     SEC. 101. REPEAL OF SUNSET ON CERTAIN INDIVIDUAL INCOME TAX 
                   RATE RELIEF.

       (a) Individual Income Tax Rates.--
       (1) Repeal of sunset.--Section 901 of the Economic Growth 
     and Tax Relief Reconciliation Act of 2001 shall not apply to 
     the amendments made by section 101 of such Act.
       (2) 25-, 28-, and 33-percent rate brackets made 
     permanent.--Paragraph (2) of section 1(i) is amended to read 
     as follows:
       ``(2) 25-, 28-, and 33-percent rate brackets.--The tables 
     under subsections (a), (b), (c), (d), and (e) shall be 
     applied--
       ``(A) by substituting `25%' for `28%' each place it appears 
     (before the application of subparagraph (B)),
       ``(B) by substituting `28%' for `31%' each place it 
     appears, and.
       ``(C) by substituting `33%' for `36%' each place it 
     appears.''.
       (3) 35-percent rate bracket.--Subsection (i) of section 1 
     is amended by redesignating paragraph (3) as paragraph (4) 
     and by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) 35-percent rate bracket.--
       ``(A) In general.--In the case of taxable years beginning 
     after December 31, 2010--
       ``(i) the rate of tax under subsections (a), (b), (c), and 
     (d) on a taxpayer's taxable income in the fifth rate bracket 
     shall be 35 percent to the extent such income does not exceed 
     an amount equal to the excess of--

       ``(I) the applicable amount, over
       ``(II) the dollar amount at which such bracket begins, and

       ``(ii) the 39.6 percent rate of tax under such subsections 
     shall apply only to the taxpayer's taxable income in such 
     bracket in excess of the amount to which clause (i) applies.
       ``(B) Applicable amount.--For purposes of this paragraph, 
     the term `applicable amount' means the excess of--
       ``(i) the applicable threshold, over
       ``(ii) the sum of the following amounts in effect for the 
     taxable year:

       ``(I) the basic standard deduction (within the meaning of 
     section 63(c)(2)), and
       ``(II) the exemption amount (within the meaning of section 
     151(d)(1) (or, in the case of subsection (a), 2 such 
     exemption amounts).

       ``(C) Applicable threshold.--For purposes of this 
     paragraph, the term `applicable threshold' means--
       ``(i) $1,000,000 in the case of subsections (a), (b), and 
     (c), and
       ``(ii) \1/2\ the amount applicable under clause (i) (after 
     adjustment, if any, under subparagraph (E)) in the case of 
     subsection (d).
       ``(D) Fifth rate bracket.--For purposes of this paragraph, 
     the term `fifth rate bracket' means the bracket which would 
     (determined without regard to this paragraph) be the 36-
     percent rate bracket.
       ``(E) Inflation adjustment.--For purposes of this 
     paragraph, a rule similar to the rule of paragraph (1)(C) 
     shall apply with respect to taxable years beginning in 
     calendar years after 2010, applied by substituting `2008' for 
     `1992' in subsection (f)(3)(B).''.
       (b) Phaseout of Personal Exemptions and Itemized 
     Deductions.--
       (1) Overall limitation on itemized deductions.--Section 68 
     is amended--
       (A) by striking ``the applicable amount'' the first place 
     it appears in subsection (a) and inserting ``the applicable 
     threshold in effect under section 1(i)(3)'',
       (B) by striking ``the applicable amount'' in subsection 
     (a)(1) and inserting ``such applicable threshold'',
       (C) by striking subsection (b) and redesignating 
     subsections (c), (d), and (e) as subsections (b), (c), and 
     (d), respectively, and
       (D) by striking subsections (f) and (g).
       (2) Phaseout of deductions for personal exemptions.--
       (A) In general.--Paragraph (3) of section 151(d) is 
     amended--
       (i) by striking ``the threshold amount'' in subparagraphs 
     (A) and (B) and inserting ``the applicable threshold in 
     effect under section 1(i)(3)'',
       (ii) by striking subparagraph (C) and redesignating 
     subparagraph (D) as subparagraph (C), and
       (iii) by striking subparagraphs (E) and (F).
       (B) Conforming amendments.--Paragraph (4) of section 151(d) 
     is amended--
       (i) by striking subparagraph (B),
       (ii) by redesignating clauses (i) and (ii) of subparagraph 
     (A) as subparagraphs (A) and (B), respectively, and by 
     indenting such subparagraphs (as so redesignated) 
     accordingly, and
       (iii) by striking all that precedes ``in a calendar year 
     after 1989,'' and inserting the following:
       ``(4) Inflation adjustment.--In the case of any taxable 
     year beginning''.
       (3) Nonapplication of egtrra sunset.--Section 901 of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 
     shall not apply to any amendment made by section 102 or 103 
     of such Act.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 102. REDUCED RATES ON CAPITAL GAINS AND DIVIDENDS MADE 
                   PERMANENT.

       (a) In General.--Section 303 of the Jobs and Growth Tax 
     Relief Reconciliation Act of 2003 (relating to sunset of 
     title) is hereby repealed.
       (b) 20-percent Capital Gains Rate for Certain High Income 
     Individuals.--
       (1) In general.--Paragraph (1) of section 1(h) is amended 
     by striking subparagraph (C), by redesignating subparagraphs 
     (D) and (E) as subparagraphs (E) and (F) and by inserting 
     after subparagraph (B) the following new subparagraphs:
       ``(C) 15 percent of the lesser of--
       ``(i) so much of the adjusted net capital gain (or, if 
     less, taxable income) as exceeds the amount on which a tax is 
     determined under subparagraph (B), or
       ``(ii) the excess (if any) of--

       ``(I) the amount of taxable income which would (without 
     regard to this paragraph) be taxed at a rate below 39.6 
     percent, over
       ``(II) the sum of the amounts on which a tax is determined 
     under subparagraphs (A) and (B),

       ``(D) 20 percent of the adjusted net capital gain (or, if 
     less, taxable income) in excess of the sum of the amounts on 
     which tax is determined under subparagraphs (B) and (C),''.
       (2) Minimum tax.--Paragraph (3) of section 55(b) is amended 
     by striking subparagraph (C), by redesignating subparagraph 
     (D) as subparagraph (E), and by inserting after subparagraph 
     (B) the following new subparagraphs:
       ``(C) 15 percent of the lesser of--
       ``(i) so much of the adjusted net capital gain (or, if 
     less, taxable excess) as exceeds the amount on which tax is 
     determined under subparagraph (B), or
       ``(ii) the excess described in section 1(h)(1)(C)(ii), plus
       ``(D) 20 percent of the adjusted net capital gain (or, if 
     less, taxable excess) in excess of the sum of the amounts on 
     which tax is determined under subparagraphs (B) and (C), 
     plus''.
       (c) Conforming Amendments.--
       (1) The following provisions are each amended by striking 
     ``15 percent'' and inserting ``20 percent'':
       (A) Section 531.
       (B) Section 541.
       (C) Section 1445(e)(1).
       (D) The second sentence of section 7518(g)(6)(A).
       (E) Section 53511(f)(2) of title 46, United States Code.
       (2) Sections 1(h)(1)(B) and 55(b)(3)(B) are each amended by 
     striking ``5 percent (0 percent in the case of taxable years 
     beginning after 2007)'' and inserting ``0 percent''.
       (3) Section 1445(e)(6) is amended by striking ``15 percent 
     (20 percent in the case of taxable years beginning after 
     December 31, 2010)'' and inserting ``20 percent''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsections (b) and (c) shall apply to 
     taxable years beginning after December 31, 2010.
       (2) Withholding.--The amendments made by paragraphs (1)(C) 
     and (3) of subsection (c) shall apply to amounts paid on or 
     after January 1, 2011.

     SEC. 103. REPEAL OF SUNSET ON EXPANSION OF CHILD TAX CREDIT.

       (a) Repeal of Sunset on Modifications to Credit.--Title IX 
     of the Economic Growth and Tax Relief Reconciliation Act of 
     2001 (relating to sunset of provisions of such Act) shall not 
     apply to sections 201 (relating to modifications to child tax 
     credit) and 203 (relating to refunds disregarded in the 
     administration of Federal programs and federally assisted 
     programs) of such Act.
       (b) Permanent Increase in Refundable Portion of Credit.--

[[Page S8424]]

       (1) In general.--Clause (i) of section 24(d)(1)(B) is 
     amended by striking ``$10,000'' and inserting ``$3,000''.
       (2) Conforming amendment.--Subsection (d) of section 24 is 
     amended by striking paragraph (4).
       (3) Elimination of inflation adjustment.--Subsection (d) of 
     section 24 is amended by striking paragraph (3).
       (4) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 104. REPEAL OF SUNSET ON MARRIAGE PENALTY RELIEF.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to sections 301, 302, and 303(a) 
     of such Act (relating to marriage penalty relief).

     SEC. 105. REPEAL OF SUNSET ON EXPANSION OF DEPENDENT CARE 
                   CREDIT.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 204 of such Act 
     (relating to dependent care credit).

     SEC. 106. REPEAL OF SUNSET ON EXPANSION OF ADOPTION CREDIT 
                   AND ADOPTION ASSISTANCE PROGRAMS.

       (a) Repeal of EGTRRA Sunset.--Title IX of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 (relating to 
     sunset of provisions of such Act) shall not apply to section 
     202 of such Act (relating to expansion of adoption credit and 
     adoption assistance programs).
       (b) Technical Amendments Relating to Expansion Under 
     PPACA.--
       (1) Repeal of sunset.--Notwithstanding section 10909(c) of 
     the Patient Protection and Affordable Care Act, title IX of 
     the Economic Growth and Tax Relief Reconciliation Act of 2001 
     (relating to sunset of provisions of such Act) shall not 
     apply to the amendments made by section 10909 of the Patient 
     Protection and Affordable Care Act.
       (2) Codification of sunset.--
       (A) Refundable credit.--Section 36C is amended by adding at 
     the end the following new subsection:
       ``(j) Termination.--This section shall not apply to 
     expenses paid in taxable years beginning after December 31, 
     2011.''.
       (B) Adoption assistance programs.--
       (i) In general.--Section 137(b) is amended by adding at the 
     end the following new paragraph:
       ``(4) Special rule for 2010 and 2011.--In the case of any 
     taxable year beginning in 2010 or 2011, paragraph (1) and 
     subsection (a)(2) shall each be applied by substituting 
     `$13,170' for `$10,000'.''.
       (ii) Inflation adjustment for years to which special rule 
     applies.--Paragraph (1) of section 137(f) is amended--

       (I) by inserting ``for 2011'' after ``limitations'' in the 
     heading, and
       (II) by striking ``after December 31, 2010, each of the 
     dollar amounts in subsections (a)(2) and (b)(1)'' inserting 
     ``after December 31, 2010, and before January 1, 2012, the 
     $13,170 dollar amount in subsection (b)(4)''.

       (iii) Inflation adjustment for other years.--Paragraph (2) 
     of section 137(f) is amended--

       (I) by inserting ``and dollar limitations for other years'' 
     after ``limitation'' in the heading,
       (II) by striking ``the dollar amount in subsection 
     (b)(2)(A)'' and inserting ``each of the dollar amounts in 
     subsection (a)(2) and paragraphs (1) and (2)(A) of subsection 
     (b)'', and
       (III) by adding at the end the following new sentence: 
     ``This paragraph shall not apply to the dollar amounts in 
     subsections (a)(2) and (b)(1) for any taxable year to which 
     paragraph (1) applies.''.

       (iv) Conforming amendments.--Subsections (a)(2) and (b)(1) 
     of section 137 are each amended by striking ``$13,170'' each 
     place it appears in the text and in the heading and inserting 
     ``$10,000''.
       (C) Effective date.--The amendments made by this paragraph 
     shall take effect as if included in section 10909 of the 
     Patient Protection and Affordable Care Act.
       (3) Non-refundable adoption credit allowed for years to 
     which refundable credit not applicable.--
       (A) In general.--Part IV of subchapter A of chapter 1 is 
     amended by inserting after section 22 the following new 
     section:

     ``SEC. 23. ADOPTION EXPENSES.

       ``(a) Allowance of Credit.--
       ``(1) In general.--In the case of an individual, there 
     shall be allowed as a credit against the tax imposed by this 
     chapter the amount of the qualified adoption expenses paid or 
     incurred by the taxpayer.
       ``(2) Year credit allowed.--The credit under paragraph (1) 
     with respect to any expense shall be allowed--
       ``(A) in the case of any expense paid or incurred before 
     the taxable year in which such adoption becomes final, for 
     the taxable year following the taxable year during which such 
     expense is paid or incurred, and
       ``(B) in the case of an expense paid or incurred during or 
     after the taxable year in which such adoption becomes final, 
     for the taxable year in which such expense is paid or 
     incurred.
       ``(3) $10,000 credit for adoption of child with special 
     needs regardless of expenses.--In the case of an adoption of 
     a child with special needs which becomes final during a 
     taxable year, the taxpayer shall be treated as having paid 
     during such year qualified adoption expenses with respect to 
     such adoption in an amount equal to the excess (if any) of 
     $10,000 over the aggregate qualified adoption expenses 
     actually paid or incurred by the taxpayer with respect to 
     such adoption during such taxable year and all prior taxable 
     years.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--The aggregate amount of qualified 
     adoption expenses which may be taken into account under 
     subsection (a) for all taxable years with respect to the 
     adoption of a child by the taxpayer shall not exceed $10,000.
       ``(2) Income limitation.--
       ``(A) In general.--The amount allowable as a credit under 
     subsection (a) for any taxable year (determined without 
     regard to subsection (c)) shall be reduced (but not below 
     zero) by an amount which bears the same ratio to the amount 
     so allowable (determined without regard to this paragraph but 
     with regard to paragraph (1)) as--
       ``(i) the amount (if any) by which the taxpayer's adjusted 
     gross income exceeds $150,000, bears to
       ``(ii) $40,000.
       ``(B) Determination of adjusted gross income.--For purposes 
     of subparagraph (A), adjusted gross income shall be 
     determined without regard to sections 911, 931, and 933.
       ``(3) Denial of double benefit.--
       ``(A) In general.--No credit shall be allowed under 
     subsection (a) for any expense for which a deduction or 
     credit is allowed under any other provision of this chapter.
       ``(B) Grants.--No credit shall be allowed under subsection 
     (a) for any expense to the extent that funds for such expense 
     are received under any Federal, State, or local program.
       ``(4) Limitation based on amount of tax.--In the case of a 
     taxable year to which section 26(a)(2) does not apply, the 
     credit allowed under subsection (a) for any taxable year 
     shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this section and section 25D) and section 27 for 
     the taxable year.
       ``(c) Carryforward of Unused Credit.--
       ``(1) Rule for years in which all personal credits allowed 
     against regular and alternative minimum tax.--In the case of 
     a taxable year to which section 26(a)(2) applies, if the 
     credit allowable under subsection (a) for any taxable year 
     exceeds the limitation imposed by section 26(a)(2) for such 
     taxable year reduced by the sum of the credits allowable 
     under this subpart (other than this section and sections 25D 
     and 1400C), such excess shall be carried to the succeeding 
     taxable year and added to the credit allowable under 
     subsection (a) for such taxable year.
       ``(2) Rule for other years.--In the case of a taxable year 
     to which section 26(a)(2) does not apply, if the credit 
     allowable under subsection (a) for any taxable year exceeds 
     the limitation imposed by subsection (b)(4) for such taxable 
     year, such excess shall be carried to the succeeding taxable 
     year and added to the credit allowable under subsection (a) 
     for such taxable year.
       ``(3) Limitation.--No credit may be carried forward under 
     this subsection to a taxable year following the fifth taxable 
     year after the taxable year in which the credit arose. For 
     purposes of the preceding sentence, credits shall be treated 
     as used on a first-in first-out basis.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Qualified adoption expenses.--The term `qualified 
     adoption expenses' means reasonable and necessary adoption 
     fees, court costs, attorney fees, and other expenses--
       ``(A) which are directly related to, and the principal 
     purpose of which is for, the legal adoption of an eligible 
     child by the taxpayer,
       ``(B) which are not incurred in violation of State or 
     Federal law or in carrying out any surrogate parenting 
     arrangement,
       ``(C) which are not expenses in connection with the 
     adoption by an individual of a child who is the child of such 
     individual's spouse, and
       ``(D) which are not reimbursed under an employer program or 
     otherwise.
       ``(2) Eligible child.--The term `eligible child' means any 
     individual who--
       ``(A) has not attained age 18, or
       ``(B) is physically or mentally incapable of caring for 
     himself.
       ``(3) Child with special needs.--The term `child with 
     special needs' means any child if--
       ``(A) a State has determined that the child cannot or 
     should not be returned to the home of his parents,
       ``(B) such State has determined that there exists with 
     respect to the child a specific factor or condition (such as 
     his ethnic background, age, or membership in a minority or 
     sibling group, or the presence of factors such as medical 
     conditions or physical, mental, or emotional handicaps) 
     because of which it is reasonable to conclude that such child 
     cannot be placed with adoptive parents without providing 
     adoption assistance, and
       ``(C) such child is a citizen or resident of the United 
     States (as defined in section 217(h)(3)).
       ``(e) Special Rules for Foreign Adoptions.--In the case of 
     an adoption of a child who is not a citizen or resident of 
     the United States (as defined in section 217(h)(3))--
       ``(1) subsection (a) shall not apply to any qualified 
     adoption expense with respect to such adoption unless such 
     adoption becomes final, and

[[Page S8425]]

       ``(2) any such expense which is paid or incurred before the 
     taxable year in which such adoption becomes final shall be 
     taken into account under this section as if such expense were 
     paid or incurred during such year.
       ``(f) Filing Requirements.--
       ``(1) Married couples must file joint returns.--Rules 
     similar to the rules of paragraphs (2), (3), and (4) of 
     section 21(e) shall apply for purposes of this section.
       ``(2) Taxpayer must include tin.--
       ``(A) In general.--No credit shall be allowed under this 
     section with respect to any eligible child unless the 
     taxpayer includes (if known) the name, age, and TIN of such 
     child on the return of tax for the taxable year.
       ``(B) Other methods.--The Secretary may, in lieu of the 
     information referred to in subparagraph (A), require other 
     information meeting the purposes of subparagraph (A), 
     including identification of an agent assisting with the 
     adoption.
       ``(g) Basis Adjustments.--For purposes of this subtitle, if 
     a credit is allowed under this section for any expenditure 
     with respect to any property, the increase in the basis of 
     such property which would (but for this subsection) result 
     from such expenditure shall be reduced by the amount of the 
     credit so allowed.
       ``(h) Adjustments for Inflation.--In the case of a taxable 
     year beginning after December 31, 2002, each of the dollar 
     amounts in subsections (a)(3) and paragraphs (1) and 
     (2)(A)(i) of subsection (b) shall be increased by an amount 
     equal to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, determined by substituting `calendar year 2001' 
     for `calendar year 1992' in subparagraph (B) thereof.

     If any amount as increased under the preceding sentence is 
     not a multiple of $10, such amount shall be rounded to the 
     nearest multiple of $10.
       ``(i) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out this section 
     and section 137, including regulations which treat unmarried 
     individuals who pay or incur qualified adoption expenses with 
     respect to the same child as 1 taxpayer for purposes of 
     applying the dollar amounts in subsections (a)(3) and (b)(1) 
     of this section and in section 137(b)(1).
       ``(j) Applicability.--No credit shall be allowed under 
     subsection (a) for any taxable year in which a credit is 
     allowed under subpart C with respect to qualified adoption 
     expenses.''.
       (B) Conforming amendments.--
       (i) Section 24(b)(3)(B) is amended by inserting ``23,'' 
     before ``25A(i),''.
       (ii) Section 25(e)(1)(C) is amended--

       (I) by inserting ``23,'' before ``25D'' in clause (i), and
       (II) by inserting ``23,'' before ``24'' in clause (ii).

       (iii) Section 25A(i)(5)(B) is amended by striking ``25D'' 
     and inserting ``23, 25D,''.
       (iv) Section 25B(g)(2) is amended by inserting ``23,'' 
     before ``25A(i)''.
       (v) Section 26(a)(1) is amended by inserting ``23,'' before 
     ``24''.
       (vi) Section 30(c)(2)(B)(ii) is amended by striking ``25D'' 
     and inserting ``23, 25D,''.
       (vii) Section 30B(g)(2)(B)(ii) is amended by inserting 
     ``23,'' before ``25D''.
       (viii) Section 30D(c)(2)(B)(ii) is amended by striking 
     ``sections 25D and'' and inserting ``sections 23 and 25D''.
       (ix) Section 137 is amended by adding at the end the 
     following new subsection:
       ``(g) Treatment of References to Section 36C.--For purposes 
     of this section, in the case of any taxable year with respect 
     to which no credit is allowable under subpart C with respect 
     to qualified adoption expenses, any reference to section 36C 
     shall be treated as a reference to section 23.''.
       (x) Section 904(i) is amended by inserting ``23,'' before 
     ``24''.
       (xi) Section 1016(a)(26) is amended by striking ``36C(g)'' 
     and inserting ``23(g), 36C(g),''.
       (xii) Section 1400C(d)(2) is amended by inserting ``23,'' 
     before ``24''.
       (xiii) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 is amended by inserting after the 
     item relating to section 22 the following new item:

``Sec. 23. Adoption expenses.''.

       (C) Effective date.--The amendments made by this paragraph 
     shall take effect on the date of the enactment of this Act.

     SEC. 107. REPEAL OF SUNSET ON EMPLOYER-PROVIDED CHILD CARE 
                   CREDIT.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 205 of such Act 
     (relating to allowance of credit for employer expenses for 
     child care assistance).

     SEC. 108. REPEAL OF SUNSET ON EXPANSION OF EARNED INCOME TAX 
                   CREDIT.

       (a) Repeal of EGTRRA Sunset.--Title IX of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 (relating to 
     sunset of provisions of such Act) shall not apply to 
     subsections (b) through (h) of section 303 of such Act 
     (relating to earned income tax credit).
       (b) Increase in Credit Percentage for Families With 3 or 
     More Children.--Paragraph (1) of section 32(b) is amended by 
     striking subparagraphs (B) and (C) and inserting the 
     following new subparagraph:
       ``(B) Increased credit percentage for families with 3 or 
     more qualifying children.--In the case of an eligible 
     individual with 3 or more qualifying children, the table in 
     subparagraph (A) shall be applied by substituting `45' for 
     `40' in the second column thereof.''.
       (c) Joint Returns.--
       (1) In general.--Subparagraph (B) of section 32(b)(2) is 
     amended by striking ``increased by'' and all that follows and 
     inserting ``increased by $5,000.''
       (2) Inflation adjustments.--Clause (ii) of section 
     32(j)(1)(B) is amended--
       (A) by striking ``$3,000'' and inserting ``$5,000'', and
       (B) by striking ``calendar year 2007'' and inserting 
     ``calendar year 2008''.
       (d) Conforming Amendment.--Section 32(b) is amended by 
     striking paragraph (3).
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                TITLE II--PERMANENT EDUCATION TAX RELIEF

     SEC. 201. REPEAL OF SUNSET ON EDUCATION INDIVIDUAL RETIREMENT 
                   ACCOUNTS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 401 of such Act 
     (relating to modifications to education individual retirement 
     accounts).

     SEC. 202. REPEAL OF SUNSET ON EMPLOYER-PROVIDED EDUCATIONAL 
                   ASSISTANCE.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 411 of such Act 
     (relating to extension of exclusion for employer-provided 
     educational assistance).

     SEC. 203. REPEAL OF SUNSET ON STUDENT LOAN INTEREST 
                   DEDUCTION.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 412 of such Act 
     (relating to elimination of 60-month limit and increase in 
     income limitation on student loan interest deduction).

     SEC. 204. REPEAL OF SUNSET ON EXCLUSION OF CERTAIN 
                   SCHOLARSHIPS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 413 of such Act 
     (relating to exclusion of certain amounts received under the 
     National Health Service Corps Scholarship Program and the F. 
     Edward Hebert Armed Forces Health Professions Scholarship and 
     Financial Assistance Program).

     SEC. 205. REPEAL OF SUNSET ON ARBITRAGE REBATE EXCEPTION FOR 
                   GOVERNMENTAL BONDS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 421 of such Act 
     (relating to additional increase in arbitrage rebate 
     exception for governmental bonds used to finance educational 
     facilities).

     SEC. 206. REPEAL OF SUNSET ON TREATMENT OF QUALIFIED PUBLIC 
                   EDUCATIONAL FACILITY BONDS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 422 of such Act 
     (relating to treatment of qualified public educational 
     facility bonds as exempt facility bonds.

     SEC. 207. REPEAL OF SUNSET ON AMERICAN OPPORTUNITY TAX 
                   CREDIT.

       (a) Permanent Extension of Credit.--Section 25A is 
     amended--
       (1) by striking ``$1,000'' each place it appears in 
     subsection (b)(1) and inserting ``$2,000'',
       (2) by striking ``50 percent'' in subsection (b)(1)(B) and 
     inserting ``25 percent'',
       (3) by striking ``2 taxable years'' in the heading of 
     subparagraph (A) of subsection (b)(2) and inserting ``4 
     taxable years'',
       (4) by striking ``2 prior taxable years'' in subsection 
     (b)(2)(A) and inserting ``4 prior taxable years'',
       (5) by striking ``2 years'' in the heading of subparagraph 
     (C) of subsection (b)(2) and inserting ``4 years'',
       (6) by striking ``first 2 years'' in subsection (b)(2)(C) 
     and inserting ``first 4 years'',
       (7) by striking ``tuition and fees'' in subparagraph (A) of 
     subsection (f)(1) and inserting ``tuition, fees, and course 
     materials'',
       (8) by striking paragraphs (1) and (2) of subsection (d) 
     and inserting the following new paragraphs:
       ``(1) American opportunity credit.--The amount which would 
     (but for this paragraph) be taken into account under 
     paragraph (1) of subsection (a) for the taxable year shall be 
     reduced (but not below zero) by the amount which bears the 
     same ratio to the amount which would be so taken into account 
     as--
       ``(A) the excess of--
       ``(i) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(ii) $80,000 ($160,000 in the case of a joint return), 
     bears to
       ``(B) $10,000 ($20,000 in the case of a joint return).
       ``(2) Lifetime learning credit.--The amount which would 
     (but for this paragraph) be taken into account under 
     paragraph (2) of subsection (a) for the taxable year shall be 
     reduced (but not below zero) by the amount which bears the 
     same ratio to the amount which would be so taken into account 
     as--
       ``(A) the excess of--
       ``(i) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(ii) $40,000 ($80,000 in the case of a joint return), 
     bears to

[[Page S8426]]

       ``(B) $10,000 ($20,000 in the case of a joint return).'',
       (9) by striking ``Dollar limitation on amount of credit'' 
     in the heading of paragraph (1) of subsection (h) and 
     inserting ``American opportunity credit'',
       (10) by striking ``2001'' in subsection (h)(1)(A) and 
     inserting ``2011'',
       (11) by striking ``the $1,000 amounts under subsection 
     (b)(1)'' in subsection (h)(1)(A) and inserting ``the dollar 
     amounts under subsections (b)(1) and (d)(1)'',
       (12) by striking ``calendar year 2000'' in subsection 
     (h)(1)(A)(ii) and inserting ``calendar year 2010'',
       (13) by striking ``If any amount'' and all that follows in 
     subparagraph (B) of subsection (h)(1) and inserting ``If any 
     amount under subsection (b)(1) as adjusted under subparagraph 
     (A) is not a multiple of $100, such amount shall be rounded 
     to the next lowest multiple of $100. If any amount under 
     subsection (d)(1) as adjusted under subparagraph (A) is not a 
     multiple of $1,000, such amount shall be rounded to the next 
     lowest multiple of $1,000.'',
       (14) by inserting ``of lifetime learning credit'' after 
     ``Income limits'' in the heading of paragraph (2) of 
     subsection (h),
       (15) by adding at the end of subsection (b) the following 
     new paragraphs:
       ``(4) Credit allowed against alternative minimum tax.--In 
     the case of a taxable year to which section 26(a)(2) does not 
     apply, so much of the credit allowed under subsection (a) as 
     is attributable to the American Opportunity Credit shall not 
     exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this subpart 
     (other than this subsection and sections 25D, 30, 30B, and 
     30D) and section 27 for the taxable year.

     Any reference in this section or section 24, 25, 25B, 26, 
     904, or 1400C to a credit allowable under this subsection 
     shall be treated as a reference to so much of the credit 
     allowable under subsection (a) as is attributable to the 
     American Opportunity Credit.
       ``(5) Portion of credit made refundable.--40 percent of so 
     much of the credit allowed under subsection (a) as is 
     attributable to the American Opportunity Credit (determined 
     after the application of subsection (d)(1) and without regard 
     to this paragraph and section 26(a)(2) or paragraph (4), as 
     the case may be) shall be treated as a credit allowable under 
     subpart C (and not allowed under subsection (a)). The 
     preceding sentence shall not apply to any taxpayer for any 
     taxable year if such taxpayer is a child to whom subsection 
     (g) of section 1 applies for such taxable year.'', and
       (16) by striking subsection (i) and redesignating 
     subsection (j) as subsection (i).
       (b) Hope Scholarship Credit Renamed American Opportunity 
     Credit.--
       (1) In general.--Section 25A, as amended by subsection (a), 
     is amended by striking ``Hope Scholarship'' each place it 
     appears in the text and in the headings and inserting 
     ``American Opportunity''.
       (2) Conforming amendments.--
       (A) The heading for section 25A is amendment by striking 
     ``HOPE'' and inserting ``AMERICAN OPPORTUNITY''.
       (B) The heading for clause (v) of section 529(c)(3)(B) is 
     amended by striking ``Hope'' and inserting ``American 
     opportunity''.
       (C) The heading for subparagraph (C) of section 530(d)(2) 
     is amended by striking ``Hope'' and inserting ``American 
     opportunity''.
       (D) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking ``Hope'' and inserting ``American 
     Opportunity''.
       (c) Conforming Amendments.--
       (1) Section 24(b)(3)(B) is amended by striking ``25A(i)'' 
     and inserting ``25A(b)''.
       (2) Section 25(e)(1)(C)(ii) is amended by striking 
     ``25A(i)'' and inserting ``25A(b)''.
       (3) Section 26(a)(1) is amended by striking ``25A(i)'' and 
     inserting ``25A(b)''.
       (4) Section 25B(g)(2) is amended by striking ``25A(i)'' and 
     inserting ``25A(b)''.
       (5) Section 904(i) is amended by striking ``25A(i)'' and 
     inserting ``25A(b)''.
       (6) Section 1400C(d)(2) is amended by striking ``25A(i)'' 
     and inserting ``25A(b)''.
       (7) Section 6211(b)(4)(A) is amended by striking ``25A by 
     reason of subsection (i)(6) thereof'' and inserting ``25A by 
     reason of subsection (b)(5) thereof''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.
       (e) Treatment of Possessions.--Section 1004(c)(1) of the 
     American Recovery and Reinvestment Tax Act of 2009 is amended 
     by striking ``in 2009 and 2010'' each place it appears and 
     inserting ``after 2008''.

     SEC. 208. REPEAL OF SUNSET ON ALLOWANCE OF COMPUTER 
                   TECHNOLOGY AND EQUIPMENT AS A QUALIFIED HIGHER 
                   EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS.

       (a) In General.--Clause (iii) of section 529(e)(3)(A) is 
     amended by striking ``in 2009 or 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenses paid or incurred after December 31, 
     2010.

                 TITLE III--PERMANENT ESTATE TAX RELIEF

     SEC. 301. REPEAL OF EGTRRA SUNSET.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 shall not apply to title V of such 
     Act.

     SEC. 302. REINSTATEMENT OF ESTATE TAX; REPEAL OF CARRYOVER 
                   BASIS.

       (a) In General.--Each provision of law amended by subtitle 
     A or E of title V of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended to read as such 
     provision would read if such subtitle had never been enacted.
       (b) Conforming Amendment.--On and after the date of the 
     introduction of this Act, paragraph (1) of section 2505(a) of 
     the Internal Revenue Code of 1986 is amended to read as if 
     such paragraph would read if section 521(b)(2) of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 had 
     never been enacted.
       (c) Special Election With Respect to Estates of Decedents 
     Dying Before Date of Enactment.--Notwithstanding subsection 
     (a), in the case of an estate of a decedent dying after 
     December 31, 2009, and before the date of the enactment of 
     this Act, the executor (within the meaning of section 2203 of 
     the Internal Revenue Code of 1986) may elect to apply such 
     Code as though the amendments made by this section do not 
     apply with respect to such estate and with respect to 
     property acquired or passing from such decedent (within the 
     meaning of section 1014(b) of such Code).   Such election 
     shall be made at such time and in such manner as the 
     Secretary of the Treasury or the Secretary's delegate shall 
     provide. Such an election once made shall be revocable only 
     with the consent of the Secretary of the Treasury or the 
     Secretary's delegate.
       (d) Extension of Time for Performing Certain Acts.--
       (1) Estate tax.--In the case of the estate of a decedent 
     dying after December 31, 2009, and before the date of the 
     enactment of this Act, the due date for--
       (A) filing any return under section 6018 of the Internal 
     Revenue Code of 1986 (including any election required to be 
     made on such a return) as such section is in effect after the 
     date of the enactment of this Act without regard to any 
     election under subsection (c),
       (B) making any payment of tax under chapter 11 of such 
     Code, and
       (C) receiving any disclaimer described in section 2518(b) 
     of such Code,

     shall not be earlier than the date which is 4 months after 
     the date of the enactment of this Act.
       (2) Generation-skipping tax.--In the case of any 
     generation-skipping tax made after December 31, 2009, and 
     before the date of the enactment of this Act, the due date 
     for filing any return under section 2662 of the Internal 
     Revenue Code of 1986 (including any election required to be 
     made on such a return) shall not be earlier than the date 
     which is 4 months after the date of the enactment of this 
     Act.
       (e) Effective Date.--Except as otherwise provided in this 
     section, the amendments made by this section shall apply to 
     estates of decedents dying, and transfers, after December 31, 
     2009.

     SEC. 303. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-
                   SKIPPING TRANSFER TAXES.

       (a) Modifications to Estate Tax.--
       (1) $3,500,000 applicable exclusion amount.--Subsection (c) 
     of section 2010 is amended to read as follows:
       ``(c) Applicable Credit Amount.--
       ``(1) In general.--For purposes of this section, the 
     applicable credit amount is the amount of the tentative tax 
     which would be determined under section 2001(c) if the amount 
     with respect to which such tentative tax is to be computed 
     were equal to the applicable exclusion amount.
       ``(2) Applicable exclusion amount.--
       ``(A) In general.--For purposes of this subsection, the 
     applicable exclusion amount is $3,500,000.
       ``(B) Inflation adjustment.--In the case of any decedent 
     dying in a calendar year after 2010, the dollar amount in 
     subparagraph (A) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2009' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If any amount as adjusted under the preceding sentence is not 
     a multiple of $10,000, such amount shall be rounded to the 
     nearest multiple of $10,000.''.
       (2) Maximum estate tax rate equal to 45 percent.--
     Subsection (c) of section 2001 is amended--
       (A) by striking ``but not over $2,000,000'' in the table 
     contained in paragraph (1),
       (B) by striking the last 2 items in such table,
       (C) by striking ``(1) In general.--'', and
       (D) by striking paragraph (2).
       (b) Modifications to Gift Tax.--
       (1) Inflation adjustment for applicable exclusion amount 
     for gift tax.--Section 2505 is amended by adding at the end 
     the following new subsection:
       ``(d) Inflation Adjustment.--In the case of any calendar 
     year after 2010, the dollar amount in subsection (a)(1) shall 
     be increased by an amount equal to--
       ``(1) such dollar amount, multiplied by
       ``(2) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2009' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If any amount as adjusted under the preceding sentence is not 
     a multiple of $10,000, such amount shall be rounded to the 
     nearest multiple of $10,000.''.

[[Page S8427]]

       (2) Modification of gift tax rate.--On and after the date 
     of the introduction of this Act, subsection (a) of section 
     2502 of the Internal Revenue Code of 1986 is amended to read 
     as such subsection would read if section 511(d) of the 
     Economic Growth and Tax Relief Reconciliation Act of 2001 had 
     never been enacted.
       (3) Conforming amendment.--Section 2511 of the Internal 
     Revenue Code of 1986 is amended by striking subsection (c).
       (4) Period of repeal treated as separate calendar year.--
       (A) In general.--For purposes of applying sections 1015, 
     2502, and 2505 of the Internal Revenue Code of 1986, calendar 
     year 2010 shall be treated as 2 separate calendar years one 
     of which ends on the day before the date of the introduction 
     of this Act and the other of which begins on such date of 
     introduction.
       (B) Application of section 2504(b).--For purposes of 
     applying section 2504(b) of the Internal Revenue Code of 
     1986, calendar year 2010 shall be treated as one preceding 
     calendar period.
       (c) Modification of Generation-skipping Transfer Tax.--In 
     the case of any generation-skipping transfer made after 
     December 31, 2009, and before the date of the introduction of 
     this Act, the applicable rate determined under section 
     2641(a) of the Internal Revenue Code of 1986 shall be zero.
       (d) Modifications of Estate and Gift Taxes to Reflect 
     Differences in Credit Resulting From Different Tax Rates.--
       (1) Estate tax.--
       (A) In general.--Section 2001(b)(2) is amended by striking 
     ``if the provisions of subsection (c) (as in effect at the 
     decedent's death)'' and inserting ``if the modifications 
     described in subsection (g)''.
       (B) Modifications.--Section 2001 is amended by adding at 
     the end the following new subsection:
       ``(g) Modifications to Gift Tax Payable to Reflect 
     Different Tax Rates.--For purposes of applying subsection 
     (b)(2) with respect to 1 or more gifts, the rates of tax 
     under subsection (c) in effect at the decedent's death shall, 
     in lieu of the rates of tax in effect at the time of such 
     gifts, be used both to compute--
       ``(1) the tax imposed by chapter 12 with respect to such 
     gifts, and
       ``(2) the credit allowed against such tax under section 
     2505, including in computing--
       ``(A) the applicable credit amount under section 
     2505(a)(1), and
       ``(B) the sum of the amounts allowed as a credit for all 
     preceding periods under section 2505(a)(2).''.
       (2) Gift tax.--Section 2505(a) is amended by adding at the 
     end the following new flush sentence:

     ``For purposes of applying paragraph (2) for any calendar 
     year, the rates of tax in effect under section 2502(a)(2) for 
     such calendar year shall, in lieu of the rates of tax in 
     effect for preceding calendar periods, be used in determining 
     the amounts allowable as a credit under this section for all 
     preceding calendar periods.''.
       (e) Effective Date.--Except as otherwise provided, the 
     amendments made by this section shall apply to estates of 
     decedents dying, generation-skipping transfers, and gifts 
     made, after December 31, 2009.

     SEC. 304. APPLICABLE EXCLUSION AMOUNT INCREASED BY UNUSED 
                   EXCLUSION AMOUNT OF DECEASED SPOUSE.

       (a) In General.--Section 2010(c), as amended by section 
     303(a), is amended by striking paragraph (2) and inserting 
     the following new paragraphs:
       ``(2) Applicable exclusion amount.--For purposes of this 
     subsection, the applicable exclusion amount is the sum of--
       ``(A) the basic exclusion amount, and
       ``(B) in the case of a surviving spouse, the deceased 
     spousal unused exclusion amount.
       ``(3) Basic exclusion amount.--
       ``(A) In general.--For purposes of this subsection, the 
     basic exclusion amount is $3,500,000.
       ``(B) Inflation adjustment.--In the case of any decedent 
     dying in a calendar year after 2010, the dollar amount in 
     subparagraph (A) shall be increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 2009' for `calendar year 1992' in subparagraph 
     (B) thereof.

     If any amount as adjusted under the preceding sentence is not 
     a multiple of $10,000, such amount shall be rounded to the 
     nearest multiple of $10,000.
       ``(4) Deceased spousal unused exclusion amount.--For 
     purposes of this subsection, with respect to a surviving 
     spouse of a deceased spouse dying on or after the date of the 
     enactment of theMiddle Class Tax Cut Act of 2010, the term 
     `deceased spousal unused exclusion amount' means the lesser 
     of--
       ``(A) the basic exclusion amount, or
       ``(B) the excess of--
       ``(i) the basic exclusion amount of the last such deceased 
     spouse of such surviving spouse, over
       ``(ii) the amount with respect to which the tentative tax 
     is determined under section 2001(b)(1) on the estate of such 
     deceased spouse.
       ``(5) Special rules.--
       ``(A) Election required.--A deceased spousal unused 
     exclusion amount may not be taken into account by a surviving 
     spouse under paragraph (2) unless the executor of the estate 
     of the deceased spouse files an estate tax return on which 
     such amount is computed and makes an election on such return 
     that such amount may be so taken into account. Such election, 
     once made, shall be irrevocable. No election may be made 
     under this subparagraph if such return is filed after the 
     time prescribed by law (including extensions) for filing such 
     return.
       ``(B) Examination of prior returns after expiration of 
     period of limitations with respect to deceased spousal unused 
     exclusion amount.--Notwithstanding any period of limitation 
     in section 6501, after the time has expired under section 
     6501 within which a tax may be assessed under chapter 11 or 
     12 with respect to a deceased spousal unused exclusion 
     amount, the Secretary may examine a return of the deceased 
     spouse to make determinations with respect to such amount for 
     purposes of carrying out this subsection.
       ``(6) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     this subsection.''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 2505(a) is amended to read as 
     follows:
       ``(1) the applicable credit amount in effect under section 
     2010(c) (determined as if the applicable exclusion amount 
     were $1,000,000) which would apply if the donor died as of 
     the end of the calendar year, reduced by''.
       (2) Section 2631(c) is amended by striking ``the applicable 
     exclusion amount'' and inserting ``the basic exclusion 
     amount''.
       (3) Section 6018(a)(1) is amended by striking ``applicable 
     exclusion amount'' and inserting ``basic exclusion amount''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying, generation-
     skipping transfers, and gifts made, on and after the date of 
     the enactment of this Act.

     SEC. 305. EXCLUSION FROM GROSS ESTATE OF CERTAIN FARMLAND SO 
                   LONG AS FARMLAND USE BY FAMILY CONTINUES.

       (a) In General.--Part III of subchapter A of chapter 11 is 
     amended by inserting after section 2033 the following new 
     section:

     ``SEC. 2033A. EXCLUSION OF CERTAIN FARMLAND SO LONG AS 
                   FARMLAND USE BY FAMILY CONTINUES.

       ``(a) In General.--In the case of an estate of a decedent 
     to which this section applies, the value of the gross estate 
     shall not include the adjusted value of qualified farmland 
     included in the estate.
       ``(b) Estates to Which Section Applies.--This section shall 
     apply to an estate if--
       ``(1) the executor--
       ``(A) elects the application of this section,
       ``(B) files an agreement referred to in section 
     2032A(d)(2), and
       ``(C) obtains a qualified appraisal (as defined in section 
     170(f)(11)(E)(i)) of the qualified farmland to which the 
     election applies and attaches such appraisal to the return of 
     the tax imposed by section 2001,
       ``(2) the decedent was (at the date of the decedent's 
     death) a citizen or resident of the United States,
       ``(3) the decedent for the 3-taxable-year period (10-
     taxable-year period in the case of any qualified farmland 
     which is qualified woodland described in section 
     2032A(c)(2)(F)(i)) preceding the date of the decedent's death 
     had an average modified adjusted gross income (as defined in 
     section 86(b)(2)) not exceeding $750,000,
       ``(4) 60 percent or more of the adjusted value of the gross 
     estate at the date of the decedent's death consists of the 
     adjusted value of real or personal property which is used as 
     a farm for farming purposes (within the meaning of section 
     2032A(e)),
       ``(5) 50 percent or more of the adjusted value of the gross 
     estate consists of the adjusted value of qualified farmland 
     which is real property, and
       ``(6) during the 10-year period ending on the date of the 
     decedent's death--
       ``(A) the qualified farmland which is such real property 
     was owned by the decedent or a member of the decedent's 
     family, and
       ``(B) there was material participation (within the meaning 
     of section 469(h)) by the decedent or a member of the 
     decedent's family in the operation of such farmland.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified farmland.--The term `qualified farmland' 
     means any real property--
       ``(A) which is located in the United States,
       ``(B) which is used as a farm for farming purposes (within 
     the meaning of section 2032A(e)),
       ``(C) such use of which is not an activity not engaged in 
     for profit (within the meaning of section 183),
       ``(D) which was acquired from or passed from the decedent 
     to a qualified heir of the decedent and which, on the date of 
     the decedent's death, was being so used by the decedent or a 
     member of the decedent's family, and
       ``(E) which is property designated in the agreement filed 
     under subsection (b)(1).
       ``(2) Adjusted value.--The term `adjusted value' means the 
     value of farmland for purposes of this chapter (determined 
     without regard to this section), reduced by any amounts 
     allowable as a deduction in respect to such farmland under 
     paragraph (3) or (4) of section 2053(a).
       ``(3) Other terms.--Any other term used in this section 
     which is also used in section 2032A shall have the same 
     meaning given such term by section 2032A.
       ``(d) Annual Information Return to the Secretary.--

[[Page S8428]]

       ``(1) In general.--The qualified heir of any qualified 
     farmland shall file an information return (at such time and 
     in such form and manner as the Secretary prescribes) for each 
     calendar year.
       ``(2) Contents of return.--The information return required 
     under paragraph (1) shall set forth any disposition of any 
     interest in such farmland or any cessation of use of such 
     farmland as a farm for farming purposes and such other 
     information as the Secretary may require.
       ``(e) Imposition of Recapture Tax.--
       ``(1) In general.--If--
       ``(A) at any time after the decedent's death and before the 
     death of the qualified heir--
       ``(i) the qualified heir disposes of any interest in 
     qualified farmland (other than by a disposition to a member 
     of the qualified heir's family),
       ``(ii) the qualified heir or member ceases to use the 
     qualified farmland as a farm for farming purposes,
       ``(iii) the qualified heir or member incurs a nonrecourse 
     indebtedness secured in whole or in part by a portion of the 
     qualified farmland, or
       ``(iv) the qualified heir or member fails to file the 
     information return with respect to the qualified farmland 
     required under subsection (d) for 3 successive calendar 
     years, or
       ``(B) upon the death of the qualified heir or member, the 
     executor of the estate of such heir or member does not elect 
     the application of this section with respect to the qualified 
     farmland,
     then, there is hereby imposed a recapture tax with respect to 
     such qualified farmland or such interest in or portion of 
     such qualified farmland.
       ``(2) Application of recapture tax to earlier 
     generations.--Upon the imposition of a recapture tax under 
     paragraph (1) with respect to such qualified farmland or such 
     interest in or portion of such qualified farmland, there is 
     also imposed an aggregate amount of any recapture tax which 
     would have been determined under this subsection with respect 
     to such farmland, interest, or portion if the such tax had 
     been imposed and paid on the date of death of the decedent 
     and on the date of death of any qualified heir (or member) of 
     such farmland, interest, or portion in any intervening 
     generation.
       ``(3) Amount of recapture tax, etc.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     rules similar to the rules of section 2032A(c) (other than 
     paragraphs (1) and (2)(E) thereof) with respect to the 
     additional estate tax shall apply for purposes of this 
     subsection with respect to each recapture tax.
       ``(B) Adjustments to recapture tax.--
       ``(i) Adjustment to reflect increase in value of 
     interest.--Subject to clause (ii), the amount of the 
     recapture tax otherwise determined under rules described in 
     subparagraph (A) shall be increased by the percentage (if 
     any) by which the value of the interest in the qualified 
     farmland at the time of the imposition of such tax is greater 
     than the adjusted value of such farmland at the time such 
     farmland would have been included in the estate if no 
     election under this section had been made.
       ``(ii) Adjustments to value of interest at time of tax 
     imposition.--For purposes of determining the value of the 
     interest in the qualified farmland at the time of the 
     imposition of such tax, such value shall be reduced (under 
     rules prescribed by the Secretary) by--

       ``(I) the basis of any substantial improvements made with 
     respect to such interest by the qualified heir or member, and
       ``(II) the aggregate amount of any recapture tax imposed 
     under paragraph (2).

       ``(f) Application of Other Rules.--Rules similar to the 
     rules of subsections (d), (e) (other than paragraphs (6) and 
     (13) thereof), (f), (g), (h), and (i) of section 2032A shall 
     apply for purposes of this section.
       ``(g) Regulations.--The Secretary may issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section, 
     including the application of this section in the case of 
     multiple interests in qualified farmland, and to prevent 
     fraud and abuse under this section.''.
       (b) Basis of Qualified Farmland for Purposes of 
     Depreciation or Depletion by Qualified Heir.--Section 1014 is 
     amended by adding at the end the following new subsection:
       ``(f) Basis of Qualified Farmland for Purposes of 
     Depreciation or Depletion by Qualified Heir.--For purposes of 
     the allowance to any qualified heir of any depreciation or 
     depletion deduction with respect to any interest in property 
     acquired from a decedent and subject to an election under 
     section 2033A, the basis of such property in the hands of 
     such qualified heir (or member of the qualified heir's family 
     after a disposition described in section 2033A(e)(1)(A)(i)) 
     shall be the adjusted basis of such property in the hands of 
     the decedent immediately before the death of such 
     decedent.''.
       (c) Penalty for Failure to File Annual Information 
     Return.--Section 6652 is amended by redesignating subsection 
     (m) as subsection (n) and by adding at the end the following 
     new subsection:
       ``(m) Failure to File Annual Information Return.--In the 
     case of each failure to provide an information return as 
     required under section 2033A(d) at the time prescribed 
     therefor, unless it is shown that such failure is due to 
     reasonable cause and not to willful neglect, there shall be 
     paid, on notice and demand of the Secretary and in the same 
     manner as tax, by the person failing to provide such return, 
     an amount equal to $250 for each such failure.''.
       (d) Woodlands Subject to Management Plan.--Paragraph (2) of 
     section 2032A(c) is amended by adding at the end the 
     following new subparagraph:
       ``(F) Exception for woodlands subject to forest stewardship 
     plan.--
       ``(i) In general.--Subparagraph (E) shall not apply to any 
     disposition or severance of standing timber on a qualified 
     woodland that is made pursuant to a forest stewardship plan 
     developed under the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103a) or an equivalent plan approved by the 
     State Forester.
       ``(ii) Compliance with forest stewardship plan.--Clause (i) 
     shall not apply if, during the 10-year period under paragraph 
     (1), the qualified heir fails to comply with such forest 
     stewardship plan or equivalent plan.''.
       (e) Certain Conservation Transactions Not Treated as 
     Dispositions.--Paragraph (8) of section 2032A(c) is amended 
     to read as follows:
       ``(8) Certain conservation transactions not treated as 
     dispositions.--
       ``(A) Qualified conservation contributions.--A qualified 
     conservation contribution by gift or otherwise shall not be 
     deemed a disposition under subsection (c)(1)(A).
       ``(B) Qualified conservation easement sold to qualified 
     organization.--A sale of a qualified conservation easement to 
     a qualified organization shall not be deemed a disposition 
     under subsection (c)(1)(A).
       ``(C) Definitions.--For purposes of this paragraph--
       ``(i) the terms `qualified conservation contribution' and 
     `qualified organization' have the meanings given such terms 
     by section 170(h), and
       ``(ii) the term `qualified conservation easement' has the 
     meaning given such term by section 2031(c)(8).''.
       (f) Clerical Amendment.--The table of sections for part III 
     of subchapter A of chapter 11 is amended by inserting after 
     the item relating to section 2033 the following new item:

``Sec. 2033A. Exclusion of certain farmland so long as use as farmland 
              continues.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying after the date of 
     the enactment of this Act.

     SEC. 306. INCREASE IN LIMITATIONS ON THE AMOUNT EXCLUDED FROM 
                   THE GROSS ESTATE WITH RESPECT TO LAND SUBJECT 
                   TO A QUALIFIED CONSERVATION EASEMENT.

       (a) Increase in Dollar Limitation on Exclusion.--Paragraph 
     (3) of section 2031(c) is amended by striking ``the exclusion 
     limitation is'' and all that follows and inserting ``the 
     exclusion limitation is $5,000,000.''.
       (b) Increase in Percentage of Value of Land Which Is 
     Excludable.--Paragraph (2) of section 2031(c) is amended--
       (1) by striking ``40 percent'' and inserting ``50 
     percent'', and
       (2) by striking ``2 percentage points'' and inserting ``2.5 
     percentage points''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying after the date 
     of the enactment of this Act.

     SEC. 307. MODIFICATION OF RULES FOR VALUE OF CERTAIN FARM, 
                   ETC., REAL PROPERTY.

       (a) In General.--Paragraph (2) of section 2032A(a) is 
     amended by striking ``$750,000'' and inserting 
     ``$3,500,000''.
       (b) Inflation Adjustment.--Paragraph (3) of section 
     2032A(a) is amended--
       (1) by striking ``1998'' and inserting ``2010'',
       (2) by striking ``$750,000'' and inserting ``$3,500,000'' 
     in subparagraph (A), and
       (3) by striking ``calendar year 1997'' and inserting 
     ``calendar year 2009'' in subparagraph (B).
       (c) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying, and gifts made, 
     after December 31, 2009.

     SEC. 308. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR 
                   RETAINED ANNUITY TRUSTS.

       (a) In General.--Subsection (b) of section 2702 is 
     amended--
       (1) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively, and by moving 
     such subparagraphs (as so redesignated) 2 ems to the right;
       (2) by striking ``For purposes of'' and inserting the 
     following:
       ``(1) In general.--For purposes of'';
       (3) by striking ``paragraph (1) or (2)'' in paragraph 
     (1)(C) (as so redesignated) and inserting ``subparagraph (A) 
     or (B)''; and
       (4) by adding at the end the following new paragraph:
       ``(2) Additional requirements with respect to grantor 
     retained annuities.--For purposes of subsection (a), in the 
     case of an interest described in paragraph (1)(A) (determined 
     without regard to this paragraph) which is retained by the 
     transferor, such interest shall be treated as described in 
     such paragraph only if--
       ``(A) the right to receive the fixed amounts referred to in 
     such paragraph is for a term of not less than 10 years,
       ``(B) such fixed amounts, when determined on an annual 
     basis, do not decrease relative to any prior year during the 
     first 10 years of the term referred to in subparagraph (A), 
     and
       ``(C) the remainder interest has a value greater than zero 
     determined as of the time of the transfer.''.

[[Page S8429]]

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

     SEC. 309. CONSISTENT BASIS REPORTING BETWEEN ESTATE AND 
                   PERSON ACQUIRING PROPERTY FROM DECEDENT.

       (a) Consistent Use of Basis.--
       (1) Property acquired from a decedent.--Section 1014 is 
     amended by adding at the end the following new subsection:
       ``(f) Basis Must Be Consistent With Estate Tax Value.--
       ``(1) In general.--For purposes of this section, the value 
     used to determine the basis of any interest in property in 
     the hands of the person acquiring such property shall not 
     exceed the value of such interest as finally determined for 
     purposes of chapter 11.
       ``(2) Special rule where no final determination.--In any 
     case in which the value of property has not been finally 
     determined under chapter 11 and there has been a statement 
     furnished under section 6035(a), the value used to determine 
     the basis of any interest in property in the hands of the 
     person acquiring such property shall not exceed the amount 
     reported on the statement furnished under section 6035(a).
       ``(3) Regulations.--The Secretary may by regulations 
     provide exceptions to the application of this subsection.''.
       (2) Property acquired by gifts and transfers in trust.--
     Section 1015 is amended by adding at the end the following 
     new subsection:
       ``(f) Basis Must Be Consistent With Gift Tax Value.--
       ``(1) In general.--For purposes of this section, the fair 
     market value of any interest in property at the time of the 
     gift of that interest shall not exceed the value of such 
     interest as finally determined for purposes of chapter 12.
       ``(2) Special rule where no final determination.--In any 
     case in which the value of property has not been finally 
     determined under chapter 12 and there has been a statement 
     furnished under section 6035(b), the fair market value of any 
     interest in property at the time of the gift of that interest 
     shall not exceed the amount reported on the statement 
     furnished under section 6035(b).
       ``(3) Regulations.--The Secretary may by regulations 
     provide exceptions to the application of this subsection.''.
       (b) Information Reporting.--
       (1) In general.--Subpart A of part III of subchapter A of 
     chapter 61 is amended by inserting after section 6034A the 
     following new section:

     ``SEC. 6035. BASIS INFORMATION TO PERSONS ACQUIRING PROPERTY 
                   FROM DECEDENT OR BY GIFT.

       ``(a) Information With Respect to Property Acquired From 
     Decedents.--
       ``(1) In general.--The executor of any estate required to 
     file a return under section 6018(a) shall furnish to the 
     Secretary and to each person acquiring any interest in 
     property included in the decedent's gross estate for Federal 
     estate tax purposes a statement identifying the value of each 
     interest in such property as reported on such return and such 
     other information with respect to such interest as the 
     Secretary may prescribe.
       ``(2) Statements by beneficiaries.--Each person required to 
     file a return under section 6018(b) shall furnish to the 
     Secretary and to each other person who holds a legal or 
     beneficial interest in the property to which such return 
     relates a statement identifying the information described in 
     paragraph (1).
       ``(3) Time for furnishing statement.--
       ``(A) In general.--Each statement required to be furnished 
     under paragraph (1) or (2) shall be furnished at such time as 
     the Secretary may prescribe, but in no case at a time later 
     than the earlier of--
       ``(i) the date which is 30 days after the date on which the 
     return under section 6018 was required to be filed (including 
     extensions, if any), or
       ``(ii) the date which is 30 days after the date such return 
     is filed.
       ``(B) Adjustments.--In any case in which there is an 
     adjustment to the information required to be included on a 
     statement filed under paragraph (1) or (2) after such 
     statement has been filed, a supplemental statement under such 
     paragraph shall be filed not later than the date which is 30 
     days after such adjustment is made.
       ``(b) Information With Respect to Property Acquired by 
     Gift.--
       ``(1) In general.--Each person making a transfer by gift 
     who is required to file a return under section 6019 with 
     respect to such transfer shall furnish to the Secretary and 
     to each person acquiring any interest in property by reason 
     of such transfer a statement identifying the fair market 
     value of each interest in such property as reported on such 
     return and such other information with respect to such 
     interest as the Secretary may prescribe.
       ``(2) Time for furnishing statement.--
       ``(A) In general.--Each statement required to be furnished 
     under paragraph (1) shall be furnished at such time as the 
     Secretary may prescribe, but in no case at a time later than 
     the earlier of--
       ``(i) the date which is 30 days after the date on which the 
     return under section 6019 was required to be filed (including 
     extensions, if any), or
       ``(ii) the date which is 30 days after the date such return 
     is filed.
       ``(B) Adjustments.--In any case in which there is an 
     adjustment to the information required to be included on a 
     statement filed under paragraph (1) after such statement has 
     been filed, a supplemental statement under such paragraph 
     shall be filed not later than the date which is 30 days after 
     such adjustment is made.
       ``(c) Regulations.--The Secretary shall prescribe such 
     regulations as necessary to carry out this section, including 
     regulations relating to--
       ``(1) applying this section to property with regard to 
     which no estate or gift tax return is required to be filed, 
     and
       ``(2) situations in which the surviving joint tenant or 
     other recipient may have better information than the executor 
     regarding the basis or fair market value of the property.''.
       (2) Penalty for failure to file.--
       (A) Return.--Section 6724(d)(1) is amended by striking 
     ``and'' at the end of subparagraph (B), by striking the 
     period at the end of subparagraph (C) and inserting ``, 
     and'', and by adding at the end the following new 
     subparagraph:
       ``(D) any statement required to be filed with the Secretary 
     under section 6035.''.
       (B) Statement.--Section 6724(d)(2) is amended by striking 
     ``or'' at the end of subparagraph (GG), by striking the 
     period at the end of subparagraph (HH) and inserting ``, 
     or'', and by adding at the end the following new 
     subparagraph:
       ``(II) section 6035 (other than a statement described in 
     paragraph (1)(D)).''.
       (3) 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 6034A the 
     following new item:

``Sec. 6035. Basis information to persons acquiring property from 
              decedent or by gift.''.
       (c) Penalty for Inconsistent Reporting.--
       (1) In general.--Subsection (b) of section 6662 is amended 
     by inserting after paragraph (7) the following new paragraph:
       ``(8) Any inconsistent estate or gift basis.''.
       (2) Inconsistent basis reporting.--Section 6662 is amended 
     by adding at the end the following new subsection:
       ``(k) Inconsistent Estate or Gift Basis Reporting.--For 
     purposes of this section, the term `inconsistent estate or 
     gift basis' means--
       ``(1) in the case of property acquired from a decedent, a 
     basis determination with respect to such property which is 
     not consistent with the requirements of section 1014(f), and
       ``(2) in the case of property acquired by gift, a basis 
     determination with respect to such property which is not 
     consistent with the requirements of section 1015(f).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to transfers for which returns are filed after 
     the date of the enactment of this Act.

             TITLE IV--PERMANENT SMALL BUSINESS TAX RELIEF

     SEC. 401. REPEAL OF SUNSET ON INCREASED LIMITATIONS ON SMALL 
                   BUSINESS EXPENSING.

       (a) In General.--Subsection (b) of section 179, as amended 
     by the Small Business Jobs Act of 2010, is amended--
       (1) by striking ``$25,000'' in paragraph (1)(C) and 
     inserting ``$125,000.'', and
       (2) by striking ``$200,000'' in paragraph (2)(C) and 
     inserting ``$500,000.''.
       (b) Inflation Adjustment.--Section 179(b) is amended by 
     adding at the end the following new paragraph:
       ``(6) Inflation adjustment.--
       ``(A) In general.--In the case of any taxable year 
     beginning after 2011, the $125,000 amount in paragraph (1)(C) 
     and the $500,000 amount in paragraph (2)(C) shall each be 
     increased by an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2006' for 
     `calendar year 1992' in subparagraph (B) thereof.
       ``(B) Rounding.--
       ``(i) Dollar limitation.--If the amount in paragraph (1) as 
     increased under subparagraph (A) is not a multiple of $1,000, 
     such amount shall be rounded to the nearest multiple of 
     $1,000.
       ``(ii)  Phaseout amount.--If the amount in paragraph (2) as 
     increased under subparagraph (A) is not a multiple of 
     $10,000, such amount shall be rounded to the nearest multiple 
     of $10,000.''.
       (c) Permanent Expensing of Computer Software.--Section 
     179(d)(1)(A)(ii), as amended by the Small Business Jobs Act 
     of 2010, is amended by striking ``and before 2012''.
       (d) Revocation of Election Made Permanent.--Section 
     179(c)(2), as amended by the Small Business Jobs Act of 2010, 
     is amended to read as follows:
       ``(2) Revocation of election.--Any election made under this 
     section, and any specification contained in any such 
     election, may be revoked by the taxpayer with respect to any 
     property, and such revocation, once made, shall be 
     irrevocable.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2011.

                TITLE V--ALTERNATIVE MINIMUM TAX RELIEF

     SEC. 501. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX 
                   EXEMPTION AMOUNT.

       (a) In General.--Paragraph (1) of section 55(d) is 
     amended--

[[Page S8430]]

       (1) by striking ``$70,950'' and all that follows through 
     ``2009'' in subparagraph (A) and inserting ``$72,450 in the 
     case of taxable years beginning in 2010 and $74,450 in the 
     case of taxable years beginning in 2011'', and
       (2) by striking ``$46,700'' and all that follows through 
     ``2009'' in subparagraph (B) and inserting ``$47,450 in the 
     case of taxable years beginning in 2010 and $48,450 in the 
     case of taxable years beginning in 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 502. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
                   NONREFUNDABLE PERSONAL CREDITS.

       (a) In General.--Paragraph (2) of section 26(a) is 
     amended--
       (1) by striking ``or 2009'' and inserting ``2009, 2010, or 
     2011'', and
       (2) by striking ``2009'' in the heading thereof and 
     inserting ``2011''.
       (b)  Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

  TITLE VI--TEMPORARY EXTENSION OF CERTAIN PROVISIONS EXPIRING IN 2009

                 Subtitle A--Infrastructure Incentives

     SEC. 601. EXTENSION OF BUILD AMERICA BONDS.

       (a) In General.--Subparagraph (B) of section 54AA(d)(1) is 
     amended by striking ``January 1, 2011'' and inserting 
     ``January 1, 2012''.
       (b) Extension of Payments to Issuers.--
       (1) In general.--Section 6431 is amended--
       (A) by striking ``January 1, 2011'' in subsection (a) and 
     inserting ``January 1, 2012''; and
       (B) by striking ``January 1, 2011'' in subsection (f)(1)(B) 
     and inserting ``a particular date''.
       (2) Conforming amendments.--Subsection (g) of section 54AA 
     is amended--
       (A) by striking ``January 1, 2011'' and inserting ``January 
     1, 2012''; and
       (B) by striking ``Qualified Bonds Issued Before 2011'' in 
     the heading and inserting ``Certain Qualified Bonds''.
       (c) Reduction in Percentage of Payments to Issuers.--
     Subsection (b) of section 6431 is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'';
       (2) by striking ``35 percent'' and inserting ``the 
     applicable percentage''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Applicable percentage.--For purposes of this 
     subsection, the term `applicable percentage' means the 
     percentage determined in accordance with the following table:

------------------------------------------------------------------------
 ``In the case of a qualified bond issued     The applicable percentage
           during calendar year:                         is:
------------------------------------------------------------------------
2009 or 2010..............................  35 percent
2011......................................  32 percent.''.
------------------------------------------------------------------------


       (d) Current Refundings Permitted.--Subsection (g) of 
     section 54AA is amended by adding at the end the following 
     new paragraph:
       ``(3) Treatment of current refunding bonds.--
       ``(A) In general.--For purposes of this subsection, the 
     term `qualified bond' includes any bond (or series of bonds) 
     issued to refund a qualified bond if--
       ``(i) the average maturity date of the issue of which the 
     refunding bond is a part is not later than the average 
     maturity date of the bonds to be refunded by such issue,
       ``(ii) the amount of the refunding bond does not exceed the 
     outstanding amount of the refunded bond, and
       ``(iii) the refunded bond is redeemed not later than 90 
     days after the date of the issuance of the refunding bond.
       ``(B) Applicable percentage.--In the case of a refunding 
     bond referred to in subparagraph (A), the applicable 
     percentage with respect to such bond under section 6431(b) 
     shall be the lowest percentage specified in paragraph (2) of 
     such section.
       ``(C) Determination of average maturity.--For purposes of 
     subparagraph (A)(i), average maturity shall be determined in 
     accordance with section 147(b)(2)(A).''.

     SEC. 602. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY 
                   FACILITIES.

       (a) Bonds for Water and Sewage Facilities Exempt From 
     Volume Cap on Private Activity Bonds.--
       (1) In general.--Paragraph (3) of section 146(g) is amended 
     by inserting ``(4), (5),'' after ``(2),''.
       (2) Conforming amendment.--Paragraphs (2) and (3)(B) of 
     section 146(k) are both amended by striking ``(4), (5), 
     (6),'' and inserting ``(6)''.
       (b) Tax-exempt Issuance by Indian Tribal Governments.--
       (1) In general.--Subsection (c) of section 7871 is amended 
     by adding at the end the following new paragraph:
       ``(4) Exception for bonds for water and sewage 
     facilities.--Paragraph (2) shall not apply to an exempt 
     facility bond 95 percent or more of the net proceeds (as 
     defined in section 150(a)(3)) of which are to be used to 
     provide facilities described in paragraph (4) or (5) of 
     section 142(a).''.
       (2) Conforming amendment.--Paragraph (2) of section 7871(c) 
     is amended by striking ``paragraph (3)'' and inserting 
     ``paragraphs (3) and (4)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date of the 
     enactment of this Act.

     SEC. 603. EXTENSION OF EXEMPTION FROM ALTERNATIVE MINIMUM TAX 
                   TREATMENT FOR CERTAIN TAX-EXEMPT BONDS.

       (a) In General.--Clause (vi) of section 57(a)(5)(C) is 
     amended--
       (1) by striking ``January 1, 2011'' in subclause (I) and 
     inserting ``January 1, 2012''; and
       (2) by striking ``and 2010'' in the heading and inserting 
     ``, 2010, and 2011''.
       (b) Adjusted Current Earnings.--Clause (iv) of section 
     56(g)(4)(B) is amended--
       (1) by striking ``January 1, 2011'' in subclause (I) and 
     inserting ``January 1, 2012''; and
       (2) by striking ``and 2010'' in the heading and inserting 
     ``, 2010, and 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2010.

     SEC. 604. EXTENSION AND ADDITIONAL ALLOCATIONS OF RECOVERY 
                   ZONE BOND AUTHORITY.

       (a) Extension of Recovery Zone Bond Authority.--Section 
     1400U-2(b)(1) and section 1400U-3(b)(1)(B) are each amended 
     by striking ``January 1, 2011'' and inserting ``January 1, 
     2012''.
       (b) Additional Allocations of Recovery Zone Bond Authority 
     Based on Unemployment.--Section 1400U-1 is amended by adding 
     at the end the following new subsection:
       ``(c) Allocation of 2010 Recovery Zone Bond Limitations 
     Based on Unemployment.--
       ``(1) In general.--The Secretary shall allocate the 2010 
     national recovery zone economic development bond limitation 
     and the 2010 national recovery zone facility bond limitation 
     among the States in the proportion that each such State's 
     2009 unemployment number bears to the aggregate of the 2009 
     unemployment numbers for all of the States.
       ``(2) Minimum allocation.--The Secretary shall adjust the 
     allocations under paragraph (1) for each State to the extent 
     necessary to ensure that no State (prior to any reduction 
     under paragraph (3)) receives less than 0.9 percent of the 
     2010 national recovery zone economic development bond 
     limitation and 0.9 percent of the 2010 national recovery zone 
     facility bond limitation.
       ``(3) Allocations by states.--
       ``(A) In general.--Each State with respect to which an 
     allocation is made under paragraph (1) shall reallocate such 
     allocation among the counties and large municipalities (as 
     defined in subsection (a)(3)(B)) in such State in the 
     proportion that each such county's or municipality's 2009 
     unemployment number bears to the aggregate of the 2009 
     unemployment numbers for all the counties and large 
     municipalities (as so defined) in such State.
       ``(B) 2010 allocation reduced by amount of previous 
     allocation.--Each State shall reduce (but not below zero)--
       ``(i) the amount of the 2010 national recovery zone 
     economic development bond limitation allocated to each county 
     or large municipality (as so defined) in such State by the 
     amount of the national recovery zone economic development 
     bond limitation allocated to such county or large 
     municipality under subsection (a)(3)(A) (determined without 
     regard to any waiver thereof), and
       ``(ii) the amount of the 2010 national recovery zone 
     facility bond limitation allocated to each county or large 
     municipality (as so defined) in such State by the amount of 
     the national recovery zone facility bond limitation allocated 
     to such county or large municipality under subsection 
     (a)(3)(A) (determined without regard to any waiver thereof).
       ``(C) Waiver of suballocations.--A county or municipality 
     may waive any portion of an allocation made under this 
     paragraph. A county or municipality shall be treated as 
     having waived any portion of an allocation made under this 
     paragraph which has not been allocated to a bond issued 
     before May 1, 2011. Any allocation waived (or treated as 
     waived) under this subparagraph may be used or reallocated by 
     the State.
       ``(D) Special rule for a municipality in a county.--In the 
     case of any large municipality any portion of which is in a 
     county, such portion shall be treated as part of such 
     municipality and not part of such county.
       ``(4) 2009 unemployment number.--For purposes of this 
     subsection, the term `2009 unemployment number' means, with 
     respect to any State, county or municipality, the number of 
     individuals in such State, county, or municipality who were 
     determined to be unemployed by the Bureau of Labor Statistics 
     for December 2009.
       ``(5) 2010 national limitations.--
       ``(A) Recovery zone economic development bonds.--The 2010 
     national recovery zone economic development bond limitation 
     is $10,000,000,000. Any allocation of such limitation under 
     this subsection shall be treated for purposes of section 
     1400U-2 in the same manner as an allocation of national 
     recovery zone economic development bond limitation.
       ``(B) Recovery zone facility bonds.--The 2010 national 
     recovery zone facility bond limitation is $15,000,000,000. 
     Any allocation of such limitation under this subsection shall 
     be treated for purposes of section 1400U-3 in the same manner 
     as an allocation of national recovery zone facility bond 
     limitation.''.
       (c) Authority of State to Waive Certain 2009 Allocations.--
     Subparagraph (A) of section 1400U-1(a)(3) is amended by 
     adding at the end the following: ``A county or municipality 
     shall be treated as having waived any portion of an 
     allocation made under this subparagraph which has not been 
     allocated to a bond issued before May 1, 2011. Any allocation 
     waived (or treated as waived) under this

[[Page S8431]]

     subparagraph may be used or reallocated by the State.''.

     SEC. 605. ALLOWANCE OF NEW MARKETS TAX CREDIT AGAINST 
                   ALTERNATIVE MINIMUM TAX.

       (a) In General.--Subparagraph (B) of section 38(c)(4), as 
     amended by the Patient Protection and Affordable Care Act, is 
     amended by redesignating clauses (v) through (ix) as clauses 
     (vi) through (x), respectively, and by inserting after clause 
     (iv) the following new clause:
       ``(v) the credit determined under section 45D, but only 
     with respect to credits determined with respect to qualified 
     equity investments (as defined in section 45D(b)) initially 
     made before January 1, 2013,''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to credits determined with respect to qualified 
     equity investments (as defined in section 45D(b) of the 
     Internal Revenue Code of 1986) initially made after March 15, 
     2010.

     SEC. 606. EXTENSION OF TAX-EXEMPT ELIGIBILITY FOR LOANS 
                   GUARANTEED BY FEDERAL HOME LOAN BANKS.

       Clause (iv) of section 149(b)(3)(A) is amended by striking 
     ``December 31, 2010'' and inserting ``December 31, 2011''.

     SEC. 607. EXTENSION OF TEMPORARY SMALL ISSUER RULES FOR 
                   ALLOCATION OF TAX-EXEMPT INTEREST EXPENSE BY 
                   FINANCIAL INSTITUTIONS.

       (a) In General.--Clauses (i), (ii), and (iii) of section 
     265(b)(3)(G) are each amended by striking ``or 2010'' and 
     inserting ``, 2010, or 2011''.
       (b) Conforming Amendment.--Subparagraph (G) of section 
     265(b)(3) is amended by striking ``and 2010'' in the heading 
     and inserting ``, 2010, and 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2010.

                           Subtitle B--Energy

     SEC. 611. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED 
                   HYBRID MOTOR VEHICLES OTHER THAN PASSENGER 
                   AUTOMOBILES AND LIGHT TRUCKS.

       (a) In General.--Paragraph (3) of section 30B(k) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property purchased after December 31, 2009.

     SEC. 612. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

       (a) Credits for Biodiesel and Renewable Diesel Used as 
     Fuel.--Subsection (g) of section 40A is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2011''.
       (b) Excise Tax Credits and Outlay Payments for Biodiesel 
     and Renewable Diesel Fuel Mixtures.--
       (1) Paragraph (6) of section 6426(c) is amended by striking 
     ``December 31, 2009'' and inserting ``December 31, 2011''.
       (2) Subparagraph (B) of section 6427(e)(6) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 613. CREDIT FOR ELECTRICITY PRODUCED AT CERTAIN OPEN-
                   LOOP BIOMASS FACILITIES.

       (a) In General.--Clause (ii) of section 45(b)(4)(B) is 
     amended--
       (1) by striking ``5-year period'' and inserting ``7-year 
     period''; and
       (2) by adding at the end the following: ``In the case of 
     the next-to-last year of the 7-year period described in the 
     preceding sentence, the credit determined under subsection 
     (a) with respect to electricity produced during such year 
     shall not exceed 80 percent of such credit determined without 
     regard to this sentence. In the case of the last year of such 
     7-year period, the credit determined under subsection (a) 
     with respect to electricity produced during such year shall 
     not exceed 60 percent of such credit determined without 
     regard to this sentence.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to electricity produced and sold after December 
     31, 2009.

     SEC. 614. CREDIT FOR STEEL INDUSTRY FUEL.

       (a) Credit Period.--
       (1) In general.--Subclause (II) of section 45(e)(8)(D)(ii) 
     is amended to read as follows:

       ``(II) Credit period.--In lieu of the 10-year period 
     referred to in clauses (i) and (ii)(II) of subparagraph (A), 
     the credit period shall be the period beginning on the date 
     that the facility first produces steel industry fuel that is 
     sold to an unrelated person after September 30, 2008, and 
     ending 3 years after such date.''.

       (2) Conforming amendment.--Section 45(e)(8)(D) is amended 
     by striking clause (iii) and by redesignating clause (iv) as 
     clause (iii).
       (b) Extension of Placed-in-service Date.--Subparagraph (A) 
     of section 45(d)(8) is amended--
       (1) by striking ``(or any modification to a facility)''; 
     and
       (2) by striking ``2010'' and inserting ``2012''.
       (c) Clarifications.--
       (1) Steel industry fuel.--Subclause (I) of section 
     45(c)(7)(C)(i) is amended by inserting ``, a blend of coal 
     and petroleum coke, or other coke feedstock'' after ``on 
     coal''.
       (2) Ownership interest.--Section 45(d)(8) is amended by 
     adding at the end the following new flush sentence:
     ``With respect to a facility producing steel industry fuel, 
     no person (including a ground lessor, customer, supplier, or 
     technology licensor) shall be treated as having an ownership 
     interest in the facility or as otherwise entitled to the 
     credit allowable under subsection (a) with respect to such 
     facility if such person's rent, license fee, or other 
     entitlement to net payments from the owner of such facility 
     is measured by a fixed dollar amount or a fixed amount per 
     ton, or otherwise determined without regard to the profit or 
     loss of such facility.''.
       (3) Production and sale.--Subparagraph (D) of section 
     45(e)(8), as amended by subsection (a)(2), is amended by 
     redesignating clause (iii) as clause (iv) and by inserting 
     after clause (ii) the following new clause:
       ``(iii) Production and sale.--The owner of a facility 
     producing steel industry fuel shall be treated as producing 
     and selling steel industry fuel where that owner manufactures 
     such steel industry fuel from coal, a blend of coal and 
     petroleum coke, or other coke feedstock to which it has 
     title. The sale of such steel industry fuel by the owner of 
     the facility to a person who is not the owner of the facility 
     shall not fail to qualify as a sale to an unrelated person 
     solely because such purchaser may also be a ground lessor, 
     supplier, or customer.''.
       (d) Specified Credit for Purposes of Alternative Minimum 
     Tax Exclusion.--Subclause (II) of section 38(c)(4)(B)(iii) is 
     amended by inserting ``(in the case of a refined coal 
     production facility producing steel industry fuel, during the 
     credit period set forth in section 45(e)(8)(D)(ii)(II))'' 
     after ``service''.
       (e) Effective Dates.--
       (1) In general.--The amendments made by subsections (a), 
     (b), and (d) shall apply to fuel produced and sold after 
     September 30, 2008.
       (2) Clarifications.--The amendments made by subsection (c) 
     shall take effect as if included in the amendments made by 
     the Energy Improvement and Extension Act of 2008.

     SEC. 615. CREDIT FOR PRODUCING FUEL FROM COKE OR COKE GAS.

       (a) In General.--Paragraph (1) of section 45K(g) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to facilities placed in service after December 
     31, 2009.

     SEC. 616. NEW ENERGY EFFICIENT HOME CREDIT.

       (a) In General.--Subsection (g) of section 45L is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to homes acquired after December 31, 2009.

     SEC. 617. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR 
                   ALTERNATIVE FUEL AND ALTERNATIVE FUEL MIXTURES.

       (a) Alternative Fuel Credit.--Paragraph (5) of section 
     6426(d) is amended by striking ``after December 31, 2009'' 
     and all that follows and inserting ``after--
       ``(A) September 30, 2014, in the case of liquefied 
     hydrogen,
       ``(B) December 31, 2011, in the case of fuels described in 
     subparagraph (A), (C), (F), or (G) of paragraph (2), and
       ``(C) December 31, 2009, in any other case.''.
       (b) Alternative Fuel Mixture Credit.--Paragraph (3) of 
     section 6426(e) is amended by striking ``after December 31, 
     2009'' and all that follows and inserting ``after--
       ``(A) September 30, 2014, in the case of liquefied 
     hydrogen,
       ``(B) December 31, 2011, in the case of fuels described in 
     subparagraph (A), (C), (F), or (G) of subsection (d)(2), and
       ``(C) December 31, 2009, in any other case.''.
       (c) Payment Authority.--
       (1) In general.--Paragraph (6) of section 6427(e) is 
     amended by striking ``and'' at the end of subparagraph (C), 
     by striking the period at the end of subparagraph (D) and 
     inserting ``, and'', and by adding at the end the following 
     new subparagraph:
       ``(E) any alternative fuel or alternative fuel mixture (as 
     so defined) involving fuel described in subparagraph (A), 
     (C), (F), or (G) of section 6426(d)(2) sold or used after 
     December 31, 2011.''.
       (2) Conforming amendment.--Subparagraph (C) of section 
     6427(e)(6) is amended by inserting ``or (E)'' after 
     ``subparagraph (D)''.
       (d) Exclusion of Black Liquor From Credit Eligibility.--The 
     last sentence of section 6426(d)(2) is amended by striking 
     ``or biodiesel'' and inserting ``biodiesel, or any fuel 
     (including lignin, wood residues, or spent pulping liquors) 
     derived from the production of paper or pulp''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to fuel sold or used after December 31, 2009.

     SEC. 618. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT 
                   FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
                   QUALIFIED ELECTRIC UTILITIES.

       (a) In General.--Paragraph (3) of section 451(i) is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (b) Modification of Definition of Independent Transmission 
     Company.--
       (1) In general.--Clause (i) of section 451(i)(4)(B) is 
     amended to read as follows:
       ``(i) who the Federal Energy Regulatory Commission 
     determines in its authorization of the transaction under 
     section 203 of the Federal Power Act (16 U.S.C. 824b) or by 
     declaratory order--

       ``(I) is not itself a market participant as determined by 
     the Commission, and also is not controlled by any such market 
     participant, or
       ``(II) to be independent from market participants or to be 
     an independent transmission company within the meaning of 
     such Commission's rules applicable to independent 
     transmission providers, and''.

[[Page S8432]]

       (2) Related persons.--Paragraph (4) of section 451(i) is 
     amended by adding at the end the following flush sentence:
     ``For purposes of subparagraph (B)(i)(I), a person shall be 
     treated as controlled by another person if such persons would 
     be treated as a single employer under section 52.''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to dispositions after December 31, 2009.
       (2) Modifications.--The amendments made by subsection (b) 
     shall apply to dispositions after the date of the enactment 
     of this Act.

     SEC. 619. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION 
                   FOR OIL AND GAS FROM MARGINAL WELLS.

       (a) In General.--Clause (ii) of section 613A(c)(6)(H) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 620. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

       (a) Extension.--
       (1) In general.--Section 25C(g)(2) is amended by striking 
     ``2010'' and inserting ``2011''.
       (2) Limitation.--Section 25C(b) is amended by striking 
     ``and 2010'' and inserting ``, 2010, and 2011''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to property placed in service after December 31, 
     2010.
       (b) Modification of Standards for Windows, Doors, and 
     Skylights.--
       (1) In general.--Paragraph (4) of section 25C(c) is amended 
     by striking ``unless'' and all that follows and inserting 
     ``unless--
       ``(A) such component meets the criteria for such components 
     established by the 2010 Energy Star Program Requirements for 
     Residential Windows, Doors, and Skylights, Version 5.0 (or 
     any subsequent version of such requirements which is in 
     effect after January 4, 2010), and
       ``(B) in the case of any component which is a garage door, 
     such component is equal to or below a U factor of 0.30 and 
     SHGC of 0.30.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to property placed in service after December 31, 
     2010.

                   Subtitle C--Individual Tax Relief

                    PART I--MISCELLANEOUS PROVISIONS

     SEC. 631. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND 
                   SECONDARY SCHOOL TEACHERS.

       (a) In General.--Subparagraph (D) of section 62(a)(2) is 
     amended by striking ``or 2009'' and inserting ``2009, 2010, 
     or 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 632. ADDITIONAL STANDARD DEDUCTION FOR STATE AND LOCAL 
                   REAL PROPERTY TAXES.

       (a) In General.--Subparagraph (C) of section 63(c)(1) is 
     amended by striking ``or 2009'' and inserting ``2009, 2010, 
     or 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 633. DEDUCTION OF STATE AND LOCAL SALES TAXES.

       (a) In General.--Subparagraph (I) of section 164(b)(5) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 634. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE 
                   FOR CONSERVATION PURPOSES.

       (a) In General.--Clause (vi) of section 170(b)(1)(E) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Contributions by Certain Corporate Farmers and 
     Ranchers.--Clause (iii) of section 170(b)(2)(B) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 635. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND 
                   RELATED EXPENSES.

       (a) In General.--Subsection (e) of section 222 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Application and Extension of EGTRRA Sunset.--
     Notwithstanding section 901 of the Economic Growth and Tax 
     Relief Reconciliation Act of 2001, such section shall apply 
     to the amendments made by this section and the amendments 
     made by section 431 of such Act by substituting ``December 
     31, 2011'' for ``December 31, 2010'' in subsection (a)(1) 
     thereof.
       (c) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.
       (d) Temporary Coordination With Section 25A.--In the case 
     of any taxpayer for any taxable year beginning in 2010 or 
     2011, no deduction shall be allowed under section 222 of the 
     Internal Revenue Code of 1986 if--
       (1) the taxpayer's net Federal income tax reduction which 
     would be attributable to such deduction for such taxable 
     year, is less than
       (2) the credit which would be allowed to the taxpayer for 
     such taxable year under section 25A of such Code (determined 
     without regard to sections 25A(e) and 26 of such Code).

     SEC. 636. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT 
                   PLANS FOR CHARITABLE PURPOSES.

       (a) In General.--Subparagraph (F) of section 408(d)(8) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date; Special Rule.--
       (1) Effective date.--The amendment made by this section 
     shall apply to distributions made in taxable years beginning 
     after December 31, 2009.
       (2) Special rule.--For purposes of qualified charitable 
     distributions under section 408(d)(8) of the Internal Revenue 
     Code of 1986 with respect to taxable years beginning in 2010, 
     a taxpayer shall be deemed to have made such a distribution 
     on the last day of such taxable year if the distribution is 
     made not later than January 31, 2011.

     SEC. 637. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY 
                   STOCK IN DETERMINING GROSS ESTATE OF 
                   NONRESIDENTS.

       (a) In General.--Paragraph (3) of section 2105(d) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to estates of decedents dying after December 31, 
     2009.

                  PART II--LOW-INCOME HOUSING CREDITS

     SEC. 641. ELECTION FOR DIRECT PAYMENT OF LOW-INCOME HOUSING 
                   CREDIT FOR 2010.

       (a) In General.--Section 42 is amended by redesignating 
     subsection (n) as subsection (o) and by inserting after 
     subsection (m) the following new subsection:
       ``(n) Election for Direct Payment of Credit.--
       ``(1) In general.--The housing credit agency of each State 
     shall be allowed a credit in an amount equal to such State's 
     low-income housing refundable credit election amount for the 
     applicable calendar year, which shall be payable by the 
     Secretary as provided in paragraph (5).
       ``(2) Low-income housing grant election amount.--For 
     purposes of this subsection--
       ``(A) In general.--The term `low-income housing grant 
     election amount' means, with respect to any State for any 
     applicable calendar year, such amount as the State may elect 
     which does not exceed 85 percent of the product of--
       ``(i) the sum of--

       ``(I) 100 percent of the State housing credit ceiling for 
     such applicable calendar year which is attributable to 
     amounts described in clauses (i) and (iii) of subsection 
     (h)(3)(C), plus any increase for such applicable calendar 
     year attributable to section 1400N(c) (including credits made 
     available under such section as applied by reason of sections 
     702(d)(2) and 704(b) of the Tax Extenders and Alternative 
     Minimum Tax Relief Act of 2008), and
       ``(II) 40 percent of the State housing credit ceiling for 
     such applicable calendar year which is attributable to 
     amounts described in clauses (ii) and (iv) of such 
     subsection, plus any credits for the calendar year preceding 
     such applicable calendar year attributable to the application 
     of such section 702(d)(2) and 704(b), multiplied by

       ``(ii) 10.
     For purposes of subparagraph (A)(ii), in the case of any area 
     to which section 702(d)(2) or 704(b) of the Tax Extenders and 
     Alternative Minimum Tax Relief Act of 2008 applies, section 
     1400N(c)(1)(A) of such Code shall be applied without regard 
     to clause (i).
       ``(B) Applicable calendar year.--The term `applicable 
     calendar year' means calendar years 2010 and 2011.
       ``(3) Coordination with non-refundable credit.--For 
     purposes of this section, the amounts described in clauses 
     (i) through (iv) of subsection (h)(3)(C) with respect to any 
     State for 2010 shall each be reduced by so much of such 
     amount as is taken into account in determining the amount of 
     the credit allowed with respect to such State under paragraph 
     (1).
       ``(4) Special rule for basis.--Basis of a qualified low-
     income building shall not be reduced by the amount of any 
     payment made under this subsection.
       ``(5) Payment of credit; use to finance low-income 
     buildings.--The Secretary shall pay to the housing credit 
     agency of each State an amount equal to the credit allowed 
     under paragraph (1). Rules similar to the rules of 
     subsections (c) and (d) of section 1602 of the American 
     Recovery and Reinvestment Tax Act of 2009 shall apply with 
     respect to any payment made under this paragraph, except that 
     such subsection (d) shall be applied by substituting `January 
     1 of the second calendar year after the applicable calendar 
     year' for `January 1, 2011'.''.
       (b) Conforming Amendment.--Section 1324(b)(2) of title 31, 
     United States Code, is amended by inserting ``42(n),'' after 
     ``36C,''.

     SEC. 642. LOW-INCOME HOUSING GRANT ELECTION.

       (a) Clarification of Eligibility of Low-income Housing 
     Credits for Low-income Housing Grant Election.--Paragraph (1) 
     of section 1602(b) of the American Recovery and Reinvestment 
     Tax Act of 2009 is amended--
       (1) by inserting ``, plus any increase for 2009 or 2010 
     attributable to section 1400N(c) of such Code (including 
     credits made available under such section as applied by 
     reason of sections 702(d)(2) and 704(b) of the Tax Extenders 
     and Alternative Minimum Tax Relief Act of 2008)'' after 
     ``1986'' in subparagraph (A), and

[[Page S8433]]

       (2) by inserting ``, plus any credits for 2009 attributable 
     to the application of such section 702(d)(2) and 704(b)'' 
     after ``such section'' in subparagraph (B).
       (b) Application of Additional Housing Credit Amount for 
     Purposes of 2009 Grant Election.--Subsection (b) of section 
     1602 of the American Recovery and Reinvestment Tax Act of 
     2009, as amended by subsection (a), is amended by adding at 
     the end the following flush sentence:
     ``For purposes of paragraph (1)(B), in the case of any area 
     to which section 702(d)(2) or 704(b) of the Tax Extenders and 
     Alternative Minimum Tax Relief Act of 2008 applies, section 
     1400N(c)(1)(A) of such Code shall be applied without regard 
     to clause (i).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply as if included in the enactment of section 1602 
     of the American Recovery and Reinvestment Tax Act of 2009.

                    Subtitle D--Business Tax Relief

     SEC. 651. RESEARCH CREDIT.

       (a) In General.--Subparagraph (B) of section 41(h)(1) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Conforming Amendment.--Subparagraph (D) of section 
     45C(b)(1) is amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.

     SEC. 652. INDIAN EMPLOYMENT TAX CREDIT.

       (a) In General.--Subsection (f) of section 45A is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 653. NEW MARKETS TAX CREDIT.

       (a) In General.--Subparagraph (F) of section 45D(f)(1) is 
     amended by inserting ``, 2010, and 2011'' after ``2009''.
       (b) Conforming Amendment.--Paragraph (3) of section 45D(f) 
     is amended by striking ``2014'' and inserting ``2016''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to calendar years beginning after 2009.

     SEC. 654. RAILROAD TRACK MAINTENANCE CREDIT.

       (a) In General.--Subsection (f) of section 45G is amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred in taxable years 
     beginning after December 31, 2009.

     SEC. 655. MINE RESCUE TEAM TRAINING CREDIT.

       (a) In General.--Subsection (e) of section 45N is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Credit Allowable Against AMT.--Subparagraph (B) of 
     section 38(c)(4), as amended by section 105, is amended--
       (1) by redesignating clauses (vii) through (x) as clauses 
     (viii) through (xi), respectively; and
       (2) by inserting after clause (vi) the following new 
     clause:
       ``(vii) the credit determined under section 45N,''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2009.
       (2) Allowance against amt.--The amendments made by 
     subsection (b) shall apply to credits determined for taxable 
     years beginning after December 31, 2009, and to carrybacks of 
     such credits.

     SEC. 656. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE 
                   DUTY MEMBERS OF THE UNIFORMED SERVICES.

       (a) In General.--Subsection (f) of section 45P is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments made after December 31, 2009.

     SEC. 657. 5-YEAR DEPRECIATION FOR FARMING BUSINESS MACHINERY 
                   AND EQUIPMENT.

       (a) In General.--Clause (vii) of section 168(e)(3)(B) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 658. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
                   LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT 
                   BUILDINGS AND IMPROVEMENTS, AND QUALIFIED 
                   RETAIL IMPROVEMENTS.

       (a) In General.--Clauses (iv), (v), and (ix) of section 
     168(e)(3)(E) are each amended by striking ``January 1, 2010'' 
     and inserting ``January 1, 2012''.
       (b) Conforming Amendments.--
       (1) Clause (i) of section 168(e)(7)(A) is amended by 
     striking ``if such building is placed in service after 
     December 31, 2008, and before January 1, 2010,''.
       (2) Paragraph (8) of section 168(e) is amended by striking 
     subparagraph (E).
       (3) Section 179(f)(2) is amended--
       (A) by striking ``(without regard to the dates specified in 
     subparagraph (A)(i) thereof)'' in subparagraph (B), and
       (B) by striking ``(without regard to subparagraph (E) 
     thereof)'' in subparagraph (C).
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 659. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS 
                   ENTERTAINMENT COMPLEXES.

       (a) In General.--Subparagraph (D) of section 168(i)(15) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 660. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON 
                   AN INDIAN RESERVATION.

       (a) In General.--Paragraph (8) of section 168(j) is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 661. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   FOOD INVENTORY.

       (a) In General.--Clause (iv) of section 170(e)(3)(C) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2009.

     SEC. 662. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
                   BOOK INVENTORIES TO PUBLIC SCHOOLS.

       (a) In General.--Clause (iv) of section 170(e)(3)(D) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made after December 31, 2009.

     SEC. 663. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE 
                   CONTRIBUTIONS OF COMPUTER INVENTORY FOR 
                   EDUCATIONAL PURPOSES.

       (a) In General.--Subparagraph (G) of section 170(e)(6) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 664. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

       (a) In General.--Subsection (g) of section 179E is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 665. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND 
                   TELEVISION PRODUCTIONS.

       (a) In General.--Subsection (f) of section 181 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to productions commencing after December 31, 
     2009.

     SEC. 666. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

       (a) In General.--Subsection (h) of section 198 is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures paid or incurred after December 
     31, 2009.

     SEC. 667. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME 
                   ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES 
                   IN PUERTO RICO.

       (a) In General.--Subparagraph (C) of section 199(d)(8) is 
     amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 6 taxable years''; and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2012''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 668. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS 
                   TO CONTROLLING EXEMPT ORGANIZATIONS.

       (a) In General.--Clause (iv) of section 512(b)(13)(E) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to payments received or accrued after December 
     31, 2009.

     SEC. 669. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF 
                   CERTAIN BROWNFIELD SITES FROM UNRELATED 
                   BUSINESS INCOME.

       (a) In General.--Subparagraph (K) of section 512(b)(19) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property acquired after December 31, 2009.

     SEC. 670. TIMBER REIT MODERNIZATION.

       (a) In General.--Paragraph (8) of section 856(c) is amended 
     by striking ``means'' and all that follows and inserting 
     ``means December 31, 2011.''.
       (b) Conforming Amendments.--
       (1) Subparagraph (I) of section 856(c)(2) is amended by 
     striking ``the first taxable year beginning after the date of 
     the enactment of this subparagraph'' and inserting ``a 
     taxable year beginning on or before the termination date''.
       (2) Clause (iii) of section 856(c)(5)(H) is amended by 
     inserting ``in taxable years beginning'' after 
     ``dispositions''.
       (3) Clause (v) of section 857(b)(6)(D) is amended by 
     inserting ``in a taxable year beginning'' after ``sale''.
       (4) Subparagraph (G) of section 857(b)(6) is amended by 
     inserting ``in a taxable year beginning'' after ``In the case 
     of a sale''.

[[Page S8434]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 22, 2009.

     SEC. 671. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED 
                   INVESTMENT COMPANIES.

       (a) In General.--Paragraphs (1)(C) and (2)(C) of section 
     871(k) are each amended by striking ``December 31, 2009'' and 
     inserting ``December 31, 2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 672. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER 
                   FIRPTA.

       (a) In General.--Clause (ii) of section 897(h)(4)(A) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     take effect on January 1, 2010. Notwithstanding the preceding 
     sentence, such amendment shall not apply with respect to the 
     withholding requirement under section 1445 of the Internal 
     Revenue Code of 1986 for any payment made before the date of 
     the enactment of this Act.
       (2) Amounts withheld on or before date of enactment.--In 
     the case of a regulated investment company--
       (A) which makes a distribution after December 31, 2009, and 
     before the date of the enactment of this Act; and
       (B) which would (but for the second sentence of paragraph 
     (1)) have been required to withhold with respect to such 
     distribution under section 1445 of such Code,
     such investment company shall not be liable to any person to 
     whom such distribution was made for any amount so withheld 
     and paid over to the Secretary of the Treasury.

     SEC. 673. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

       (a) In General.--Sections 953(e)(10) and 954(h)(9) are each 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Conforming Amendment.--Section 953(e)(10) is amended by 
     striking ``December 31, 2009'' and inserting ``December 31, 
     2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2009, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 674. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED 
                   CONTROLLED FOREIGN CORPORATIONS UNDER FOREIGN 
                   PERSONAL HOLDING COMPANY RULES.

       (a) In General.--Subparagraph (C) of section 954(c)(6) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of foreign corporations 
     beginning after December 31, 2009, and to taxable years of 
     United States shareholders with or within which any such 
     taxable year of such foreign corporation ends.

     SEC. 675. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING 
                   CHARITABLE CONTRIBUTIONS OF PROPERTY.

       (a) In General.--Paragraph (2) of section 1367(a) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions made in taxable years beginning 
     after December 31, 2009.

     SEC. 676. EMPOWERMENT ZONE TAX INCENTIVES.

       (a) In General.--Section 1391 is amended--
       (1) by striking ``December 31, 2009'' in subsection 
     (d)(1)(A)(i) and inserting ``December 31, 2011''; and
       (2) by striking the last sentence of subsection (h)(2).
       (b) Increased Exclusion of Gain on Stock of Empowerment 
     Zone Businesses.--Subparagraph (C) of section 1202(a)(2) is 
     amended--
       (1) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2016''; and
       (2) by striking ``2014'' in the heading and inserting 
     ``2016''.
       (c) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of an empowerment 
     zone the nomination for which included a termination date 
     which is contemporaneous with the date specified in 
     subparagraph (A)(i) of section 1391(d)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation unless, after the date of 
     the enactment of this section, the entity which made such 
     nomination reconfirms such termination date, or amends the 
     nomination to provide for a new termination date, in such 
     manner as the Secretary of the Treasury (or the Secretary's 
     designee) may provide.
       (d) Effective Date.--The amendments made by this section 
     shall apply to periods after December 31, 2009.

     SEC. 677. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF 
                   COLUMBIA.

       (a) In General.--Subsection (f) of section 1400 is amended 
     by striking ``December 31, 2009'' each place it appears and 
     inserting ``December 31, 2011''.
       (b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) 
     of section 1400A is amended by striking ``December 31, 2009'' 
     and inserting ``December 31, 2011''.
       (c) Zero-percent Capital Gains Rate.--
       (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
     (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (2) Limitation on period of gains.--
       (A) In general.--Paragraph (2) of section 1400B(e) is 
     amended--
       (i) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2016''; and
       (ii) by striking ``2014'' in the heading and inserting 
     ``2016''.
       (B) Partnerships and s-corps.--Paragraph (2) of section 
     1400B(g) is amended by striking ``December 31, 2014'' and 
     inserting ``December 31, 2016''.
       (d) First-time Homebuyer Credit.--Subsection (i) of section 
     1400C is amended by striking ``January 1, 2010'' and 
     inserting ``January 1, 2012''.
       (e) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to periods after December 31, 2009.
       (2) Tax-exempt dc empowerment zone bonds.--The amendment 
     made by subsection (b) shall apply to bonds issued after 
     December 31, 2009.
       (3) Acquisition dates for zero-percent capital gains 
     rate.--The amendments made by subsection (c) shall apply to 
     property acquired or substantially improved after December 
     31, 2009.
       (4) Homebuyer credit.--The amendment made by subsection (d) 
     shall apply to homes purchased after December 31, 2009.

     SEC. 678. RENEWAL COMMUNITY TAX INCENTIVES.

       (a) In General.--Subsection (b) of section 1400E is 
     amended--
       (1) by striking ``December 31, 2009'' in paragraphs (1)(A) 
     and (3) and inserting ``December 31, 2011''; and
       (2) by striking ``January 1, 2010'' in paragraph (3) and 
     inserting ``January 1, 2012''.
       (b) Zero-percent Capital Gains Rate.--
       (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A), 
     (4)(A)(i), and (4)(B)(i) of section 1400F(b) are each amended 
     by striking ``January 1, 2010'' and inserting ``January 1, 
     2012''.
       (2) Limitation on period of gains.--Paragraph (2) of 
     section 1400F(c) is amended--
       (A) by striking ``December 31, 2014'' and inserting 
     ``December 31, 2016''; and
       (B) by striking ``2014'' in the heading and inserting 
     ``2016''.
       (3) Clerical amendment.--Subsection (d) of section 1400F is 
     amended by striking ``and `December 31, 2014' for `December 
     31, 2014' ''.
       (c) Commercial Revitalization Deduction.--
       (1) In general.--Subsection (g) of section 1400I is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (2) Conforming amendment.--Subparagraph (A) of section 
     1400I(d)(2) is amended by striking ``after 2001 and before 
     2010'' and inserting ``which begins after 2001 and before the 
     date referred to in subsection (g)''.
       (d) Increased Expensing Under Section 179.--Subparagraph 
     (A) of section 1400J(b)(1) is amended by striking ``January 
     1, 2010'' and inserting ``January 1, 2012''.
       (e) Treatment of Certain Termination Dates Specified in 
     Nominations.--In the case of a designation of a renewal 
     community the nomination for which included a termination 
     date which is contemporaneous with the date specified in 
     subparagraph (A) of section 1400E(b)(1) of the Internal 
     Revenue Code of 1986 (as in effect before the enactment of 
     this Act), subparagraph (B) of such section shall not apply 
     with respect to such designation unless, after the date of 
     the enactment of this section, the entity which made such 
     nomination reconfirms such termination date, or amends the 
     nomination to provide for a new termination date, in such 
     manner as the Secretary of the Treasury (or the Secretary's 
     designee) may provide.
       (f) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to periods after December 31, 2009.
       (2) Acquisitions.--The amendments made by subsections 
     (b)(1) and (d) shall apply to acquisitions after December 31, 
     2009.
       (3) Commercial revitalization deduction.--
       (A) In general.--The amendment made by subsection (c)(1) 
     shall apply to buildings placed in service after December 31, 
     2009.
       (B) Conforming amendment.--The amendment made by subsection 
     (c)(2) shall apply to calendar years beginning after December 
     31, 2009.

     SEC. 679. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM 
                   EXCISE TAXES TO PUERTO RICO AND THE VIRGIN 
                   ISLANDS.

       (a) In General.--Paragraph (1) of section 7652(f) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to distilled spirits brought into the United 
     States after December 31, 2009.

     SEC. 680. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

       (a) In General.--Subsection (d) of section 119 of division 
     A of the Tax Relief and Health Care Act of 2006 is amended--
       (1) by striking ``first 4 taxable years'' and inserting 
     ``first 6 taxable years'', and
       (2) by striking ``January 1, 2010'' and inserting ``January 
     1, 2012''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

[[Page S8435]]

     SEC. 681. ELECTION TO TEMPORARILY UTILIZE UNUSED AMT CREDITS 
                   DETERMINED BY DOMESTIC INVESTMENT.

       (a) In General.--Section 53 is amended by adding at the end 
     the following new subsection:
       ``(g) Election for Corporations With New Domestic 
     Investments.--
       ``(1) In general.--If a corporation elects to have this 
     subsection apply for its first taxable year beginning after 
     December 31, 2009, the limitation imposed by subsection (c) 
     for such taxable year shall be increased by the AMT credit 
     adjustment amount.
       ``(2) AMT credit adjustment amount.--For purposes of 
     paragraph (1), the term `AMT credit adjustment amount' means, 
     the lesser of--
       ``(A) 50 percent of a corporation's minimum tax credit for 
     its first taxable year beginning after December 31, 2009, 
     determined under subsection (b), or
       ``(B) 10 percent of new domestic investments made during 
     such taxable year.
       ``(3) New domestic investments.--For purposes of this 
     subsection, the term `new domestic investments' means the 
     cost of qualified property (as defined in section 
     168(k)(2)(A)(i))--
       ``(A) the original use of which commences with the taxpayer 
     during the taxable year, and
       ``(B) which is placed in service in the United States by 
     the taxpayer during such taxable year.
       ``(4) Credit refundable.--For purposes of subsection (b) of 
     section 6401, the aggregate increase in the credits allowable 
     under this part for any taxable year resulting from the 
     application of this subsection shall be treated as allowed 
     under subpart C (and not under any other subpart). For 
     purposes of section 6425, any amount treated as so allowed 
     shall be treated as a payment of estimated income tax for the 
     taxable year.
       ``(5) Election.--An election under this subsection shall be 
     made at such time and in such manner as prescribed by the 
     Secretary, and once made, may be revoked only with the 
     consent of the Secretary. Not later than 90 days after the 
     date of the enactment of this subsection, the Secretary shall 
     issue guidance specifying such time and manner.
       ``(6) Treatment of certain partnership investments.--For 
     purposes of this subsection, a corporation shall take into 
     account its allocable share of any new domestic investments 
     by a partnership for any taxable year if, and only if, more 
     than 90 percent of the capital and profits interests in such 
     partnership are owned by such corporation (directly or 
     indirectly) at all times during such taxable year.
       ``(7) No double benefit.--
       ``(A) In general.--A corporation making an election under 
     this subsection may not make an election under subparagraph 
     (H) of section 172(b)(1).
       ``(B) Special rules with respect to taxpayers previously 
     electing applicable net operating losses.--In the case of a 
     corporation which made an election under subparagraph (H) of 
     section 172(b)(1) and elects the application of this 
     subsection--
       ``(i) Election of applicable net operating loss treated as 
     revoked.--The election under such subparagraph (H) shall 
     (notwithstanding clause (iii)(II) of such subparagraph) be 
     treated as having been revoked by the taxpayer.
       ``(ii) Coordination with provision for expedited refund.--
     The amount otherwise treated as a payment of estimated income 
     tax under the last sentence of paragraph (4) shall be reduced 
     (but not below zero) by the aggregate increase in unpaid tax 
     liability determined under this chapter by reason of the 
     revocation of the election under clause (i).
       ``(iii) Application of statute of limitations.--With 
     respect to the revocation of an election under clause (i)--

       ``(I) the statutory period for the assessment of any 
     deficiency attributable to such revocation shall not expire 
     before the end of the 3-year period beginning on the date of 
     the election to have this subsection apply, and
       ``(II) such deficiency may be assessed before the 
     expiration of such 3-year period notwithstanding the 
     provisions of any other law or rule of law which would 
     otherwise prevent such assessment.

       ``(C) Exception for eligible small businesses.--
     Subparagraphs (A) and (B) shall not apply to an eligible 
     small business as defined in section 172(b)(1)(H)(v)(II).
       ``(8) Regulations.--The Secretary may issue such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this subsection, 
     including to prevent fraud and abuse under this 
     subsection.''.
       (b) Conforming Amendments.--
       (1) Section 6211(b)(4)(A) is amended by inserting 
     ``53(g),'' after ``53(e),''.
       (2) Section 1324(b)(2) of title 31, United States Code, is 
     amended by inserting ``53(g),'' after ``53(e),''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 682. REDUCTION IN CORPORATE RATE FOR QUALIFIED TIMBER 
                   GAIN.

       (a) In General.--Paragraph (1) of section 1201(b) is 
     amended by striking `` `ending' '' and all that follows 
     through `` `such date' ''.
       (b) Conforming Amendment.--Paragraph (3) of section 1201(b) 
     is amended to read as follows:
       ``(3) Application of subsection.--The qualified timber gain 
     for any taxable year shall not exceed the qualified timber 
     gain which would be determined by not taking into account any 
     portion of such taxable year after December 31, 2011.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after May 22, 2009.

     SEC. 683. STUDY OF EXTENDED TAX EXPENDITURES.

       (a) Findings.--Congress finds the following:
       (1) Currently, the aggregate cost of Federal tax 
     expenditures rivals, or even exceeds, the amount of total 
     Federal discretionary spending.
       (2) Given the escalating public debt, a critical 
     examination of this use of taxpayer dollars is essential.
       (3) Additionally, tax expenditures can complicate the 
     Internal Revenue Code of 1986 for taxpayers and complicate 
     tax administration for the Internal Revenue Service.
       (4) To facilitate a better understanding of tax 
     expenditures in the future, it is constructive for 
     legislation extending these provisions to include a study of 
     such provisions.
       (b) Requirement to Report.--Not later than December 15, 
     2011, the Chief of Staff of the Joint Committee on Taxation, 
     in consultation with the Comptroller General of the United 
     States, shall submit to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate a report on each tax expenditure (as defined in 
     section 3(3) of the Congressional Budget Impoundment Control 
     Act of 1974 (2 U.S.C. 622(3)) extended by this title.
       (c) Rolling Submission of Reports.--The Chief of Staff of 
     the Joint Committee on Taxation shall initially submit the 
     reports for each such tax expenditure enacted in this 
     subtitle (relating to business tax relief) and subtitle A 
     (relating to energy) in order of the tax expenditure 
     incurring the least aggregate cost to the greatest aggregate 
     cost (determined by reference to the cost estimate of this 
     Act by the Joint Committee on Taxation). Thereafter, such 
     reports may be submitted in such order as the Chief of Staff 
     determines appropriate.
       (d) Contents of Report.--Such reports shall contain the 
     following:
       (1) An explanation of the tax expenditure and any relevant 
     economic, social, or other context under which it was first 
     enacted.
       (2) A description of the intended purpose of the tax 
     expenditure.
       (3) An analysis of the overall success of the tax 
     expenditure in achieving such purpose, and evidence 
     supporting such analysis.
       (4) An analysis of the extent to which further extending 
     the tax expenditure, or making it permanent, would contribute 
     to achieving such purpose.
       (5) A description of the direct and indirect beneficiaries 
     of the tax expenditure, including identifying any unintended 
     beneficiaries.
       (6) An analysis of whether the tax expenditure is the most 
     cost-effective method for achieving the purpose for which it 
     was intended, and a description of any more cost-effective 
     methods through which such purpose could be accomplished.
       (7) A description of any unintended effects of the tax 
     expenditure that are useful in understanding the tax 
     expenditure's overall value.
       (8) An analysis of how the tax expenditure could be 
     modified to better achieve its original purpose.
       (9) A brief description of any interactions (actual or 
     potential) with other tax expenditures or direct spending 
     programs in the same or related budget function worthy of 
     further study.
       (10) A description of any unavailable information the staff 
     of the Joint Committee on Taxation may need to complete a 
     more thorough examination and analysis of the tax 
     expenditure, and what must be done to make such information 
     available.
       (e) Minimum Analysis by Deadline.--In the event the Chief 
     of Staff of the Joint Committee on Taxation concludes it will 
     not be feasible to complete all reports by the date specified 
     in subsection (a), at a minimum, the reports for each tax 
     expenditure enacted in this subtitle (relating to business 
     tax relief) and subtitle A (relating to energy) shall be 
     completed by such date.

            Subtitle E--Temporary Disaster Relief Provisions

                    PART I--NATIONAL DISASTER RELIEF

     SEC. 691. WAIVER OF CERTAIN MORTGAGE REVENUE BOND 
                   REQUIREMENTS.

       (a) In General.--Paragraph (11) of section 143(k) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Special Rule for Residences Destroyed in Federally 
     Declared Disasters.--Paragraph (13) of section 143(k), as 
     redesignated by subsection (c), is amended by striking 
     ``January 1, 2010'' in subparagraphs (A)(i) and (B)(i) and 
     inserting ``January 1, 2012''.
       (c) Technical Amendment.--Subsection (k) of section 143 is 
     amended by redesignating the second paragraph (12) (relating 
     to special rules for residences destroyed in federally 
     declared disasters) as paragraph (13).
       (d) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendment made by this section shall apply to 
     bonds issued after December 31, 2009.
       (2) Residences destroyed in federally declared disasters.--
     The amendments made by subsection (b) shall apply with 
     respect to disasters occurring after December 31, 2009.

[[Page S8436]]

       (3) Technical amendment.--The amendment made by subsection 
     (c) shall take effect as if included in section 709 of the 
     Tax Extenders and Alternative Minimum Tax Relief Act of 2008.

     SEC. 692. LOSSES ATTRIBUTABLE TO FEDERALLY DECLARED 
                   DISASTERS.

       (a) In General.--Subclause (I) of section 165(h)(3)(B)(i) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) $500 Limitation.--Paragraph (1) of section 165(h) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2011''.
       (c) Effective Date.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to federally declared disasters occurring after 
     December 31, 2009.
       (2) $500 limitation.--The amendment made by subsection (b) 
     shall apply to taxable years beginning after December 31, 
     2009.

     SEC. 693. SPECIAL DEPRECIATION ALLOWANCE FOR QUALIFIED 
                   DISASTER PROPERTY.

       (a) In General.--Subclause (I) of section 168(n)(2)(A)(ii) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to disasters occurring after December 31, 2009.

     SEC. 694. NET OPERATING LOSSES ATTRIBUTABLE TO FEDERALLY 
                   DECLARED DISASTERS.

       (a) In General.--Subclause (I) of section 172(j)(1)(A)(i) 
     is amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to losses attributable to disasters occurring 
     after December 31, 2009.

     SEC. 695. EXPENSING OF QUALIFIED DISASTER EXPENSES.

       (a) In General.--Subparagraph (A) of section 198A(b)(2) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenditures on account of disasters occurring 
     after December 31, 2009.

                      PART II--REGIONAL PROVISIONS

                    Subpart A--New York Liberty Zone

     SEC. 696. SPECIAL DEPRECIATION ALLOWANCE FOR NONRESIDENTIAL 
                   AND RESIDENTIAL REAL PROPERTY.

       (a) In General.--Subparagraph (A) of section 1400L(b)(2) is 
     amended by striking ``December 31, 2009'' and inserting 
     ``December 31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

     SEC. 697. TAX-EXEMPT BOND FINANCING.

       (a) In General.--Subparagraph (D) of section 1400L(d)(2) is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2009.

                           Subpart B--GO Zone

     SEC. 698. INCREASE IN REHABILITATION CREDIT.

       (a) In General.--Subsection (h) of section 1400N is amended 
     by striking ``December 31, 2009'' and inserting ``December 
     31, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred after December 31, 
     2009.

     SEC. 699. WORK OPPORTUNITY TAX CREDIT WITH RESPECT TO CERTAIN 
                   INDIVIDUALS AFFECTED BY HURRICANE KATRINA FOR 
                   EMPLOYERS INSIDE DISASTER AREAS.

       (a) In General.--Paragraph (1) of section 201(b) of the 
     Katrina Emergency Tax Relief Act of 2005 is amended by 
     striking ``4-year'' and inserting ``5-year''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to individuals hired after August 27, 2009.

     SEC. 700. EXTENSION OF LOW-INCOME HOUSING CREDIT RULES FOR 
                   BUILDINGS IN GO ZONES.

       Section 1400N(c)(5) is amended by striking ``January 1, 
     2011'' and inserting ``January 1, 2013''.

    TITLE VII--TECHNICAL CORRECTIONS TO PENSION FUNDING LEGISLATION

     SEC. 701. DEFINITION OF ELIGIBLE PLAN YEAR.

       (a) Amendment to ERISA.--Clause (v) of section 303(c)(2)(D) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1083(c)(2)(D)), as added by section 201(a)(1) of the 
     Preservation of Access to Care for Medicare Beneficiaries and 
     Pension Relief Act of 2010, is amended--
       (1) by striking ``on or after the date of the enactment of 
     this subparagraph'' and inserting ``on or after June 25, 2010 
     (March 10, 2010, in the case of an eligible plan)'', and
       (2) by adding at the end the following new sentence: ``For 
     purposes of the preceding sentence, a plan shall be treated 
     as an eligible plan only if, as of the date of the election 
     with respect to the plan under clause (i)--
       ``(A) the plan sponsor is not a debtor in a case under 
     title 11, United States Code, or similar Federal or State 
     law,
       ``(B) there are no unpaid minimum required contributions 
     with respect to the plan for purposes of section 4971 of the 
     Internal Revenue Code of 1986 (imposing an excise tax when 
     minimum required contributions are not paid by the due date 
     for the plan year),
       ``(C) there are no outstanding liens in favor of the plan 
     under subsection (k), and
       ``(D) the plan sponsor has not initiated a distress 
     termination of the plan under section 4041.''.
       (b) Amendment to Internal Revenue Code of 1986.--Clause (v) 
     of section 430(c)(2)(D) of the Internal Revenue Code of 1986, 
     as added by section 201(b)(1) of the Preservation of Access 
     to Care for Medicare Beneficiaries and Pension Relief Act of 
     2010, is amended--
       (1) by striking ``on or after the date of the enactment of 
     this subparagraph'' and inserting ``on or after June 25, 2010 
     (March 10, 2010, in the case of an eligible plan)'', and
       (2) by adding at the end the following new sentence: ``For 
     purposes of the preceding sentence, a plan shall be treated 
     as an eligible plan only if, as of the date of the election 
     with respect to the plan under clause (i)--
       ``(A) the plan sponsor is not a debtor in a case under 
     title 11, United States Code, or similar Federal or State 
     law,
       ``(B) there are no unpaid minimum required contributions 
     with respect to the plan for purposes of section 4971 
     (imposing an excise tax when minimum required contributions 
     are not paid by the due date for the plan year),
       ``(C) there are no outstanding liens in favor of the plan 
     under subsection (k), and
       ``(D) the plan sponsor has not initiated a distress 
     termination of the plan under section 4041 of the Employee 
     Retirement Income Security Act of 1974.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendments made by 
     the provisions of the Preservation of Access to Care for 
     Medicare Beneficiaries and Pension Relief Act of 2010 to 
     which the amendments relate.

     SEC. 702. ELIGIBLE CHARITY PLANS.

       (a) Definition of Eligible Charity Plans.--
       (1) In general.--Section 104(d) of the Pension Protection 
     Act of 2006, as added by section 202(b) of the Preservation 
     of Access to Care for Medicare Beneficiaries and Pension 
     Relief Act of 2010, is amended to read as follows:
       ``(d) Eligible Charity Plan Defined.--For purposes of this 
     section, a plan shall be treated as an eligible charity plan 
     for a plan year if--
       ``(1) the plan is maintained by one or more employers 
     employing employees who are accruing benefits based on 
     service for the plan year,
       ``(2) such employees are employed in at least 20 States,
       ``(3) more than 98 percent of such employees are employed 
     by an employer described in section 501(c)(3) of such Code 
     and the primary exempt purpose of each such employer is to 
     provide services with respect to children, and
       ``(4) the plan sponsor elects (at such time and in such 
     form and manner as shall be prescribed by the Secretary of 
     the Treasury) to be so treated.
     Any election under this subsection may be revoked only with 
     the consent of the Secretary of the Treasury.''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the amendment made by the 
     provision of the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010 to which the 
     amendment relates (determined after application of the 
     amendment made by subsection (c)), except that a plan sponsor 
     may elect to apply such amendment to plan years beginning on 
     or after January 1, 2011.
       (b) Regulations.--The Secretary of the Treasury may 
     prescribe such regulations as may be necessary to carry out 
     the purposes of the amendments made by section 202(b) of the 
     Preservation of Access to Care for Medicare Beneficiaries and 
     Pension Relief Act of 2010 and the amendment made by 
     subsection (a).
       (c) Application of New Rules to Eligible Charity Plans.--
       (1) In general.--Paragraph (2) of section 202(c) of the 
     Preservation of Access to Care for Medicare Beneficiaries and 
     Pension Relief Act of 2010 is amended to read as follows:
       ``(2) Eligible charity plans.--The amendments made by 
     subsection (b) shall apply to plan years beginning after 
     December 31, 2010, except that a plan sponsor may elect to 
     apply such amendments to plan years beginning after an 
     earlier date.''.
       (2) Effective date.--The amendment made by this subsection 
     shall take effect as if included in the amendment made by the 
     provision of the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010 to which the 
     amendment relates.

     SEC. 703. SUSPENSION OF CERTAIN FUNDING LEVEL LIMITATIONS.

       (a) Limitations on Benefit Accruals.--Section 203 of the 
     Worker, Retiree, and Employer Recovery Act of 2008 (Public 
     Law 110-458; 122 Stat. 5118) is amended--
       (1) by striking ``the first plan year beginning during the 
     period beginning on October 1, 2008, and ending on September 
     30, 2009'' and inserting ``any plan year beginning during the 
     period beginning on October 1, 2008, and ending on December 
     31, 2011'';
       (2) by striking ``substituting'' and all that follows 
     through ``for such plan year'' and inserting ``substituting 
     for such percentage the plan's adjusted funding target 
     attainment percentage for the last plan year ending before 
     September 30, 2009,''; and
       (3) by striking ``for the preceding plan year is greater'' 
     and inserting ``for such last plan year is greater''.
       (b) Social Security Level-income Options.--
       (1) ERISA amendment.--Section 206(g)(3)(E) of the Employee 
     Retirement Income Security Act of 1974 is amended by adding 
     at the end the following new sentence:

[[Page S8437]]

     ``For purposes of applying clause (i) in the case of payments 
     the annuity starting date for which occurs on or before 
     December 31, 2011, payments under a social security leveling 
     option shall be treated as not in excess of the monthly 
     amount paid under a single life annuity (plus an amount not 
     in excess of a social security supplement described in the 
     last sentence of section 204(b)(1)(G)).''.
       (2) IRC amendment.--Section 436(d)(5) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new sentence: ``For purposes of applying 
     subparagraph (A) in the case of payments the annuity starting 
     date for which occurs on or before December 31, 2011, 
     payments under a social security leveling option shall be 
     treated as not in excess of the monthly amount paid under a 
     single life annuity (plus an amount not in excess of a social 
     security supplement described in the last sentence of section 
     411(a)(9)).''.
       (3) Effective date.--
       (A) In general.--The amendments made by this subsection 
     shall apply to annuity payments the annuity starting date for 
     which occurs on or after January 1, 2011.
       (B) Permitted application.--A plan shall not be treated as 
     failing to meet the requirements of sections 206(g) of the 
     Employee Retirement Income Security Act of 1974 (as amended 
     by this subsection) and section 436(d) of the Internal 
     Revenue Code of 1986 (as so amended) if the plan sponsor 
     elects to apply the amendments made by this subsection to 
     payments the annuity starting date for which occurs before 
     January 1, 2011.
       (c) Repeal of Related Provisions.--The provisions of, and 
     the amendments made by, section 203 of the Preservation of 
     Access to Care for Medicare Beneficiaries and Pension Relief 
     Act of 2010 are repealed and the Employee Retirement Income 
     Security Act of 1974, the Internal Revenue Code of 1986, and 
     the Worker, Retiree, and Employer Recovery Act of 2008 
     (Public Law 110-458; 122 Stat. 5118) shall be applied as if 
     such section had never been enacted.

     SEC. 704. OPTIONAL USE OF 30-YEAR AMORTIZATION PERIODS.

       (a) Amendment to ERISA.--Paragraph (8) of section 304(b) of 
     the Employee Retirement Income Security Act of 1974, as 
     amended by the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010, is amended by 
     striking ``after August 31, 2008'' each place it appears in 
     subparagraphs (A)(i), (B)(i)(I), and (B)(i)(II), and 
     inserting ``on or after June 30, 2008''.
       (b) Amendment to Internal Revenue Code of 1986 .--Paragraph 
     (8) of section 431(b) of the Internal Revenue Code of 1986, 
     as amended by the Preservation of Access to Care for Medicare 
     Beneficiaries and Pension Relief Act of 2010, is amended by 
     striking ``after August 31, 2008'' each place it appears in 
     subparagraphs (A)(i) and (B)(i)(I) and inserting ``on or 
     after June 30, 2008''.
       (c) Effective Date and Special Rules.--The amendments made 
     by this section shall take effect as of the first day of the 
     first plan year beginning on or after June 30, 2008, except 
     that any election a plan sponsor makes pursuant to this 
     section or the amendments made thereby that affects the 
     plan's funding standard account for any plan year beginning 
     before October 1, 2009, shall be disregarded for purposes of 
     applying the provisions of section 305 of the Employee 
     Retirement Income Security Act of 1974 and section 432 of the 
     Internal Revenue Code of 1986 to that plan year.

TITLE VIII--TEMPORARY EXTENSION OF CERTAIN PROVISIONS ENDING IN 2010 OR 
                                  2011

                   Subtitle A--Unemployment Benefits

     SEC. 801. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``November 30, 2010'' each place it appears 
     and inserting ``January 3, 2012'';
       (B) in the heading for subsection (b)(2), by striking 
     ``november 30, 2010'' and inserting ``january 3, 2012''; and
       (C) in subsection (b)(3), by striking ``April 30, 2011'' 
     and inserting ``June 9, 2012''.
       (2) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``December 1, 2010'' each place it appears 
     and inserting ``January 4, 2012''; and
       (B) in subsection (c), by striking ``May 1, 2011'' and 
     inserting ``June 11, 2012''.
       (3) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``April 30, 2011'' and inserting ``June 
     10, 2012''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (E), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (F) the following:
       ``(G) the amendments made by section 2(a)(1) of the ; 
     and''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Unemployment Compensation Extension Act of 2010 (Public Law 
     111-205).

     SEC. 802. TEMPORARY MODIFICATION OF INDICATORS UNDER THE 
                   EXTENDED BENEFIT PROGRAM.

       (a) Indicator.--Section 203(d) of the Federal-State 
     Extended Unemployment Compensation Act of 1970 (26 U.S.C. 
     3304 note) is amended, in the flush matter following 
     paragraph (2), by inserting after the first sentence the 
     following sentence: ``Effective with respect to compensation 
     for weeks of unemployment beginning after the date of 
     enactment of the (or, if later, the date established pursuant 
     to State law), and ending on or before December 31, 2011, the 
     State may by law provide that the determination of whether 
     there has been a state `on' or `off' indicator beginning or 
     ending any extended benefit period shall be made under this 
     subsection as if the word `two' were `three' in subparagraph 
     (1)(A).''.
       (b) Alternative Trigger.--Section 203(f) of the Federal-
     State Extended Unemployment Compensation Act of 1970 (26 
     U.S.C. 3304 note) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Effective with respect to compensation for weeks of 
     unemployment beginning after the date of enactment of the 
     (or, if later, the date established pursuant to State law), 
     and ending on or before December 31, 2011, the State may by 
     law provide that the determination of whether there has been 
     a state `on' or `off' indicator beginning or ending any 
     extended benefit period shall be made under this subsection 
     as if the word `either' were `any', the word ``both'' were 
     `all', and the figure `2' were `3' in clause (1)(A)(ii).''.

                       Subtitle B--Small Business

     SEC. 811. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON 
                   CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Paragraph (4) of section 1202(a) is 
     amended--
       (1) by striking ``January 1, 2011'' and inserting ``January 
     1, 2012'', and
       (2) by inserting ``and 2011'' after ``2010'' in the heading 
     thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after December 31, 2010.

     SEC. 812. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES CARRIED BACK 5 YEARS.

       (a) In General.--Subparagraph (A) of section 39(a)(4) is 
     amended by inserting ``or 2011'' after ``2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2010.

     SEC. 813. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES NOT SUBJECT TO ALTERNATIVE MINIMUM 
                   TAX.

       (a) In General.--Paragraph (5) of section 38(c) is 
     amended--
       (1) by inserting ``or 2011'' after ``2010'' in subparagraph 
     (A), and
       (2) by inserting ``or 2011'' after ``2010'' in the heading 
     thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2010, and to carrybacks of such credits.

     SEC. 814. EXTENSION OF INCREASE IN AMOUNT ALLOWED AS 
                   DEDUCTION FOR START-UP EXPENDITURES.

       (a) Start-up Expenditures.--Paragraph (3) of section 195(b) 
     is amended--
       (1) by inserting ``or 2011'' after ``2010'', and
       (2) by inserting ``or 2011'' after ``2010'' in the heading 
     thereof.
       (b) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2010.

     SEC. 815. EXTENSION OF DEDUCTION FOR HEALTH INSURANCE COSTS 
                   IN COMPUTING SELF-EMPLOYMENT TAXES.

       (a) In General.--Paragraph (4) of section 162(l) is amended 
     by striking ``December 31, 2010'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                           Subtitle C--Energy

     SEC. 821. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

       (a) Extension of Credit.--Paragraph (2) of section 30C(g) 
     is amended by striking ``December 31, 2010'' and inserting 
     ``December 31, 2011.''.
       (b) Clarification of Definition of Electric Refueling 
     Property.--Subparagraph (B) of section 179A(d)(3) is amended 
     to read as follows:
       ``(B) exclusively used for the recharging of motor vehicles 
     propelled by electricity (other than property used for the 
     generation of electricity).''.
       (c) Effective Dates.--
       (1) Extension.--The amendment made by subsection (a) shall 
     apply to property placed in service after December 31, 2010.
       (2) Clarification.--The amendment made by subsection (b) 
     shall apply to property placed in service after the date of 
     the enactment of this Act.

     SEC. 822. ELECTIVE PAYMENT FOR SPECIFIED ENERGY PROPERTY.

       (a) In General.--Chapter 65 is amended by adding at the end 
     the following new subchapter:

[[Page S8438]]

               ``Subchapter C--Direct Payment Provisions

``Sec. 6451. Elective payment for specified energy property.

     ``SEC. 6451. ELECTIVE PAYMENT FOR SPECIFIED ENERGY PROPERTY.

       ``(a) Elective Payment.--
       ``(1) In general.--Any eligible person electing the 
     application of this section with respect to any specified 
     energy property originally placed in service by such person 
     during the taxable year shall be treated as making a payment 
     against the tax imposed by subtitle A for the taxable year 
     equal to the applicable percentage of the basis of such 
     property. Such payment shall be treated as made on the later 
     of the due date of the return of such tax or the date on 
     which such return is filed.
       ``(2) Eligibility.--A person shall not be eligible to elect 
     the application of this section unless such person has been 
     certified as eligible by the Secretary, under such rules as 
     the Secretary, in consultation with the Secretary of Energy, 
     may prescribe.
       ``(b) Applicable Percentage.--For purposes of this section, 
     the term `applicable percentage' means--
       ``(1) 30 percent in the case of any property described in 
     paragraph (2)(A)(i) or (5) of section 48(a), and
       ``(2) 10 percent in the case of any other property.
       ``(c) Dollar Limitations.--In the case of property 
     described in paragraph (1), (2), or (3) of section 48(c), the 
     payment otherwise treated as made under subsection (a) with 
     respect to such property shall not exceed the limitation 
     applicable to such property under such paragraph.
       ``(d) Specified Energy Property.--For purposes of this 
     section--
       ``(1) In general.--The term `specified energy property' 
     means energy property (within the meaning of section 48) 
     which--
       ``(A) is originally placed in service before January 1, 
     2012, or
       ``(B) is originally placed in service on or after such date 
     and before the credit termination date with respect to such 
     property, but only if the construction of such property began 
     before January 1, 2012.
       ``(2) Credit termination date.--The term `credit 
     termination date' means--
       ``(A) in the case of any energy property which is part of a 
     facility described in paragraph (1) of section 45(d), January 
     1, 2013,
       ``(B) in the case of any energy property which is part of a 
     facility described in paragraph (2), (3), (4), (6), (7), (9), 
     or (11) of section 45(d), January 1, 2014, and
       ``(C) in the case of any energy property described in 
     section 48(a)(3), January 1, 2017.
     In the case of any property which is described in 
     subparagraph (C) and also in another subparagraph of this 
     paragraph, subparagraph (C) shall apply with respect to such 
     property.
       ``(e) Coordination With Production and Investment 
     Credits.--In the case of any property with respect to which 
     an election is made under this section--
       ``(1) Denial of production and investment credits.--No 
     credit shall be determined under section 45 or 48 with 
     respect to such property for the taxable year in which such 
     property is originally placed in service or any subsequent 
     taxable year.
       ``(2) Reduction of payment by progress expenditures already 
     taken into account.--The amount of the payment treated as 
     made under subsection (a) with respect to such property shall 
     be reduced by the aggregate amount of credits determined 
     under section 48 with respect to such property for all 
     taxable years preceding the taxable year in which such 
     property is originally placed in service.
       ``(f) Special Rules for Certain Non-taxpayers.--
       ``(1) Denial of payment.--Subsection (a) shall not apply 
     with respect to any property originally placed in service 
     by--
       ``(A) any governmental entity other than a governmental 
     unit which is a State utility with a service obligation (as 
     such terms are defined in section 217 of the Federal Power 
     Act), or
       ``(B) any organization described in section 501(c) (other 
     than a mutual or cooperative electric company described in 
     section 501(c)(12)) or 401(a) and exempt from tax under 
     section 501(a).
       ``(2) Exception for property used in unrelated trade or 
     business.--Paragraph (1) shall not apply with respect to any 
     property originally placed in service by an entity described 
     in section 511(a)(2) if substantially all of the income 
     derived from such property by such entity is unrelated 
     business taxable income (as defined in section 512).
       ``(3) Special rules for partnerships and s corporations.--
     In the case of property originally placed in service by a 
     partnership or an S corporation--
       ``(A) the election under subsection (a) may be made only by 
     such partnership or S corporation,
       ``(B) such partnership or S corporation shall be treated as 
     making the payment referred to in subsection (a) only to the 
     extent of the proportionate share of such partnership or S 
     corporation as is owned by persons who would be treated as 
     making such payment if the property were originally placed in 
     service by such persons, and
       ``(C) the return required to be made by such partnership or 
     S corporation under section 6031 or 6037 (as the case may be) 
     shall be treated as a return of tax for purposes of 
     subsection (a).

     For purposes of subparagraph (B), rules similar to the rules 
     of section 168(h)(6) (other than subparagraph (F) thereof) 
     shall apply. For purposes of applying such rules, the term 
     `tax-exempt entity' shall not include any entity which is a 
     governmental unit which is a State utility with a service 
     obligation (as such terms are defined in section 217 of the 
     Federal Power Act) or which is a mutual or cooperative 
     electric company described in section 501(c)(12).
       ``(g) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Other definitions.--Terms used in this section which 
     are also used in section 45 or 48 shall have the same 
     meanings for purposes of this section as when used in such 
     sections.
       ``(2) Application of recapture rules, etc.--Except as 
     otherwise provided by the Secretary, rules similar to the 
     rules of section 50 (other than paragraphs (1) and (2) of 
     subsection (d) thereof), and section 1603 of the American 
     Recovery and Reinvestment Act of 2009, shall apply.
       ``(3) Exclusion from gross income.--Any credit or refund 
     allowed or made by reason of this section shall not be 
     includible in gross income or alternative minimum taxable 
     income.
       ``(4) Exception for certain projects.--Subsection (a) shall 
     not apply to any governmental unit or cooperative electric 
     company (as defined in section 54(j)(1)) with respect to any 
     specified energy property which is described in section 
     48(a)(5)(D) if such entity has issued any bond--
       ``(A) which is designated as a clean renewable energy bond 
     under section 54 of the Internal Revenue Code of 1986 or as a 
     new clean renewable energy bond under section 54C of such 
     Code, and
       ``(B) the proceeds of which are used for expenditures in 
     connection with the same qualified facility with respect to 
     which such specified energy property is a part.
       ``(5) Coordination with grant program.--If a grant under 
     section 1603 of the American Recovery and Reinvestment Tax 
     Act of 2009 is made with respect to any specified energy 
     property--
       ``(A) no election may be made under subsection (a) with 
     respect to such property on or after the date of such grant, 
     and
       ``(B) if such grant is made after such election, such 
     property shall be treated as having ceased to be specified 
     energy property immediately after such property was 
     originally placed in service.''.
       (b) Treatment of Grants for Cooperative Electric 
     Companies.--Section 501(c)(12) is amended by adding at the 
     end the following new subparagraph:
       ``(I) In the case of a mutual or cooperative electric 
     company described in this paragraph or an organization 
     described in section 1381(a)(2)(C), subparagraph (A) shall be 
     applied without taking into account any payment made by 
     reason of section 6452.''.
       (c) Conforming Amendments Related to Direct Payment.--
       (1) Subparagraph (A) of section 6211(b)(4)(A) is amended by 
     inserting ``and subchapter C of chapter 65 (including any 
     payment treated as made under such subchapter)'' after 
     ``6431''.
       (2) Subparagraph (B) of section 6425(c)(1) is amended--
       (A) by striking ``the credits'' and inserting ``the sum 
     of--
       ``(i) the credits'',
       (B) by striking the period at the end of clause (i) thereof 
     (as amended by this paragraph) and inserting ``, plus'', and
       (C) by adding at the end the following new clause:
       ``(ii) the payments treated as made under subchapter C of 
     chapter 65.''.
       (3) Paragraph (3) of section 6654(f) is amended--
       (A) by striking ``the credits'' and inserting ``the sum 
     of--
       ``(A) the credits'',
       (B) by striking the period at the end of subparagraph (A) 
     thereof (as amended by this paragraph) and inserting ``, 
     and'', and
       (C) by adding at the end the following new subparagraph:
       ``(B) the payments treated as made under subchapter C of 
     chapter 65.''.
       (4) Subparagraph (B) of section 6655(g)(1) is amended--
       (A) by striking ``the credits'' and inserting ``the sum 
     of--
       ``(i) the credits'',
       (B) by striking the period at the end of clause (i) thereof 
     (as amended by this paragraph) and inserting ``, plus'', and
       (C) by adding at the end the following new clause:
       ``(ii) the payments treated as made under subchapter C of 
     chapter 65.''.
       (5) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``, or from the 
     provisions of subchapter C of chapter 65 of such Code'' 
     before the period at the end.
       (6) The table of subchapters for chapter 65 is amended by 
     adding at the end the following new item:

             ``subchapter c. direct payment provisions.''.

       (d) Clarification of Application of Grants for Specified 
     Energy Property to Certain Regulated Companies.--The first 
     sentence of section 1603(f) of the American Recovery and 
     Reinvestment Tax Act of 2009 is amended by inserting ``(other 
     than subsection (d)(2) thereof)'' after ``section 50 of the 
     Internal Revenue Code of 1986''.
       (e) Technical Amendments.--

[[Page S8439]]

       (1) Paragraphs (1) and (2) of section 1603(a) of the 
     American Recovery and Reinvestment Tax Act of 2009 are each 
     amended by striking ``is placed in service'' and inserting 
     ``is originally placed in service by such person''.
       (2) Paragraph (1) of section 1603(d) of such Act is 
     amended--
       (A) by striking ``(within the meaning of section 45 of such 
     Code)'', and
       (B) by inserting before the period at the end the 
     following: ``which would (but for section 48(d)(1) of such 
     Code) be eligible for credit under section 45 of such Code 
     (determined without regard to subsection (a)(2)(B) 
     thereof)''.
       (3) Subsection (f) of section 1603 of such Act, as amended 
     by subsection (d), is amended--
       (A) by striking the second sentence and inserting the 
     following: ``In applying such rules, any increase in tax 
     under chapter 1 of such Code by reason of the property being 
     disposed of (or otherwise ceasing to be specified energy 
     property) shall be imposed on the person to whom the grant 
     was made.'',
       (B) by striking ``In making grants under'' and inserting 
     the following:
       ``(1) In general.--In making grants under'', and
       (C) by adding at the end following new paragraph:
       ``(2) Special rules.--
       ``(A) Recapture of excessive grant amounts.--If the amount 
     of a grant made under this section exceeds the amount 
     allowable as a grant under this section, such excess shall be 
     recaptured under paragraph (1) as if the property to which 
     such grant relates were disposed of immediately after such 
     grant was made.
       ``(B) Grant information not treated as return 
     information.--For purposes of section 6103 of the Internal 
     Revenue Code of 1986, in no event shall any of the following 
     be treated as return information:
       ``(i) The amount of a grant made under subsection (a).
       ``(ii) The identity of the person to whom the grant was 
     made.
       ``(iii) A description of the property with respect to which 
     the grant was made.
       ``(iv) The fact and amount of any recapture.
       ``(v) The content of any report required by the Secretary 
     of the Treasury to be filed in connection with the grant.''.
       (4) Subsection (g) of section 1603 of such Act is amended--
       (A) by redesignating paragraphs (1) through (4) as 
     subparagraphs (A) through (D), respectively,
       (B) by moving such subparagraphs (as so redesignated) 2 ems 
     to the right,
       (C) by striking ``paragraph (1), (2), or (3)'' in 
     subparagraph (D) (as so redesignated) and inserting 
     ``subparagraphs (A), (B), or (C)'',
       (D) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary'', and
       (E) by adding at the end the following new paragraph:
       ``(2) Exception where property used in unrelated trade or 
     business.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     person or entity described therein to the extent the grant is 
     with respect to unrelated trade or business property.
       ``(B) Unrelated trade or business property.--For purposes 
     of this paragraph, the term `unrelated trade or business 
     property' means any property with respect to which 
     substantially all of the income derived therefrom by an 
     organization described in section 511(a)(2) of the Internal 
     Revenue Code of 1986 is subject to tax under section 511 of 
     such Code.
       ``(C) Information with respect to pass-thrus.--In the case 
     of a partnership or other pass-thru entity, partners or other 
     holders of an equity or profits interest must provide to such 
     partnership or entity such information as the Secretary may 
     require to carry out the purposes of this subsection.''.
       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     originally placed in service after the date of the enactment 
     of this Act.
       (2) Clarification and technical amendments.--The amendments 
     made by subsections (d) and (e) shall take effect as if 
     included in section 1603 of the American Recovery and 
     Reinvestment Tax Act of 2009.

     SEC. 823. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

       (a) In General.--Section 48C(d)(1)(B) is amended by 
     striking ``$2,300,000,000'' and inserting ``$4,800,000,000''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to allocations for applications submitted after 
     December 31, 2010.

     SEC. 824. NEW CLEAN RENEWABLE ENERGY BONDS.

       (a) In General.--Subsection (c) of section 54C is amended 
     by adding at the end the following new paragraph:
       ``(5) Second additional limitation.--Subject to paragraph 
     (4), the national new clean renewable energy bond limitation 
     shall be increased by $1,600,000,000. Such increase shall be 
     allocated by the Secretary consistent with the rules of 
     paragraphs (2) and (3).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to allocations after December 31, 2010.

     SEC. 825. ALTERNATIVE MOTOR VEHICLE CREDIT FOR NEW QUALIFIED 
                   ALTERNATIVE FUEL VEHICLES.

       (a) In General.--Paragraph (4) of section 30B(k) is amended 
     by striking ``December 31, 2010'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property purchased after December 31, 2010.

     SEC. 826. EXTENSION OF PROVISIONS RELATED TO ALCOHOL USED AS 
                   FUEL.

       (a) Extension of Income Tax Credit for Alcohol Used as 
     Fuel.--
       (1) In general.--Paragraph (1) of section 40(e) is 
     amended--
       (A) by striking ``December 31, 2010'' in subparagraph (A) 
     and inserting ``December 31, 2011'', and
       (B) by striking ``January 1, 2011'' in subparagraph (B) and 
     inserting ``January 1, 2012''.
       (2) Reduced amount for ethanol blenders.--Subsection (h) of 
     section 40 is amended--
       (A) by striking ``2010'' in paragraph (1) and inserting 
     ``2011'', and
       (B) by striking the period at the end of the table 
     contained in paragraph (2) and adding the following new item:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
``2011..........................  36 cents..........  26.66 cents.''.
------------------------------------------------------------------------

       (3) Reduced rate for small ethanol producers.--Section 
     40(b)(4)(A) is amended by striking ``10 cents'' and inserting 
     ``8 cents''.
       (4) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall apply to periods 
     after December 31, 2010.
       (B) Rate for small ethanol producers.--The amendment made 
     by paragraph (3) shall apply to the sale or use of alcohol 
     after December 31, 2010.
       (b) Extension of Excise Tax Credit for Alcohol Used as 
     Fuel.--
       (1) In general.--Paragraph (6) of section 6426(b) is 
     amended by striking ``December 31, 2010'' and inserting 
     ``December 31, 2011''.
       (2) Reduced applicable amount for ethanol.--Subparagraph 
     (A) of section 6426(b)(2) is amended--
       (A) by striking ``and'' at the end of clause (i),
       (B) in clause (ii)--
       (i) by inserting ``and before 2011'' after ``after 2008'', 
     and
       (ii) by striking the period and inserting ``, and'', and
       (C) by adding at the end the following new clause:
       ``(iii) in the case of calendar years beginning after 2010, 
     36 cents.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to periods after December 31, 2010.
       (c) Extension of Payment for Alcohol Fuel Mixture.--
       (1) In general.--Subparagraph (A) of section 6427(e)(6) is 
     amended by striking ``December 31, 2010'' and inserting 
     ``December 31, 2011''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to sales and uses after December 31, 2010.
       (d) Extension of Additional Duties on Ethanol.--
       (1) In general.--Headings 9901.00.50 and 9901.00.52 of the 
     Harmonized Tariff Schedule of the United States are each 
     amended in the effective period column by striking ``1/1/
     2011'' and inserting ``1/1/2012''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect on January 1, 2011.

     SEC. 827. ENERGY EFFICIENT APPLIANCE CREDIT.

       (a) Dishwashers.--Paragraph (1) of section 45M(b) is 
     amended by striking ``and'' at the end of subparagraph (A), 
     by striking the period at the end of subparagraph (B) and 
     inserting a comma, and by adding at the end the following new 
     subparagraphs:
       ``(C) $25 in the case of a dishwasher which is manufactured 
     in calendar year 2011 and which uses no more than 307 
     kilowatt hours per year and 5.0 gallons per cycle (5.5 
     gallons per cycle for dishwashers designed for greater than 
     12 place settings),
       ``(D) $50 in the case of a dishwasher which is manufactured 
     in calendar year 2011 and which uses no more than 295 
     kilowatt hours per year and 4.25 gallons per cycle (4.75 
     gallons per cycle for dishwashers designed for greater than 
     12 place settings), and
       ``(E) $75 in the case of a dishwasher which is manufactured 
     in calendar year 2011 and which uses no more than 280 
     kilowatt hours per year and 4 gallons per cycle (4.5 gallons 
     per cycle for dishwashers designed for greater than 12 place 
     settings).''.
       (b) Clothes Washers.--Paragraph (2) of section 45M(b) is 
     amended by striking ``and'' at the end of subparagraph (C), 
     by striking the period at the end of subparagraph (D) and 
     inserting a comma, and by adding at the end the following new 
     subparagraphs:
       ``(E) $175 in the case of a top-loading clothes washer 
     manufactured in calendar year 2011 which meets or exceeds a 
     2.2 modified energy factor and does not exceed a 4.5 water 
     consumption factor, and
       ``(F) $225 in the case of a clothes washer manufactured in 
     calendar year 2011--
       ``(i) which is a top-loading clothes washer and which meets 
     or exceeds a 2.4 modified energy factor and does not exceed a 
     4.2 water consumption factor, or
       ``(ii) which is a front-loading clothes washer and which 
     meets or exceeds a 2.8 modified energy factor and does not 
     exceed a 3.5 water consumption factor.''.

[[Page S8440]]

       (c) Refrigerators.--Paragraph (3) of section 45M(b) is 
     amended by striking ``and'' at the end of subparagraph (C), 
     by striking the period at the end of subparagraph (D) and 
     inserting a comma, and by adding at the end the following new 
     subparagraphs:
       ``(E) $150 in the case of a refrigerator manufactured in 
     calendar year 2011 which consumes at least 30 percent less 
     energy than the 2001 energy conservation standards, and
       ``(F) $200 in the case of a refrigerator manufactured in 
     calendar year 2011 which consumes at least 35 percent less 
     energy than the 2001 energy conservation standards.''.
       (d) Rebasing of Limitations.--
       (1) In general.--Paragraph (1) of section 45M(e) is amended 
     by striking ``December 31, 2007'' and inserting ``December 
     31, 2010''.
       (2) Exception for certain refrigerators and clothes 
     washers.--Paragraph (2) of section 45M(e) is amended--
       (A) by striking ``subsection (b)(3)(D)'' and inserting 
     ``subsection (b)(3)(F)'', and
       (B) by striking ``subsection (b)(2)(D)'' and inserting 
     ``subsection (b)(2)(F)''.
       (3) Gross receipts limitation.--Paragraph (3) of section 
     45M(e) is amended by striking ``2 percent'' and inserting ``4 
     percent''.
       (e) Direct Payment of Energy Efficient Appliances Tax 
     Credit.--In the case of any taxable year which includes the 
     last day of calendar year 2009 or calendar year 2010, a 
     taxpayer who elects to waive the credit which would otherwise 
     be determined with respect to the taxpayer under section 45M 
     of the Internal Revenue Code of 1986 for such taxable year 
     shall be treated as making a payment against the tax imposed 
     under subtitle A of such Code for such taxable year in an 
     amount equal to 85 percent of the amount of the credit which 
     would otherwise be so determined. Such payment shall be 
     treated as made on the later of the due date of the return of 
     such tax or the date on which such return is filed. Elections 
     under this section may be made separately for 2009 and 2010, 
     but once made shall be irrevocable. No amount shall be 
     includible in gross income or alternative minimum taxable 
     income by reason of this section.
       (f) Effective Dates.--
       (1) In general.--The amendments made by subsections (a), 
     (b), and (c) shall apply to appliances produced after 
     December 31, 2010.
       (2) Limitations.--The amendments made by subsection (d) 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 828. REDUCED DEPRECIATION PERIOD FOR NATURAL GAS 
                   DISTRIBUTION FACILITIES.

       (a) In General.--Clause (viii) of section 168(e)(3)(E) is 
     amended by striking ``January 1, 2011'' and inserting 
     ``January 1, 2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2010.

                         Subtitle D--Education

     SEC. 831. QUALIFIED SCHOOL CONSTRUCTION BONDS.

       (a) In General.--Subsection (c) of section 54F is amended--
       (1) by striking ``and'' at the end of paragraph (2),
       (2) by redesignating paragraph (3) as paragraph (4),
       (3) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) $11,000,000,000 for 2011, and'', and
       (4) by striking ``2010'' in paragraph (4) (as redesignated 
     by paragraph (2)) and inserting ``2011''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2010.

             Subtitle E--Other Employee and Housing Relief

     SEC. 841. MAKING WORK PAY CREDIT.

       (a) In General.--Section 36A(e) is amended by striking 
     ``December 31, 2010'' and inserting ``December 31, 2011''.
       (b) Treatment of Possessions.--Section 1001(b)(1) of the 
     American Recovery and Reinvestment Tax Act of 2009 is amended 
     by striking ``2009 and 2010'' both places it appears and 
     inserting ``2009, 2010, and 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 842. WORK OPPORTUNITY CREDIT.

       (a) In General.--Subparagraph (B) of section 51(c)(4) is 
     amended by striking ``August 31, 2011'' and inserting 
     ``December 31, 2011''.
       (b) Unemployed Veterans and Disconnected Youth.--Paragraph 
     (14) of section 51(d) is amended--
       (1) by striking ``2009 or 2010'' in subparagraph (A) and 
     inserting ``2009, 2010, or 2011'', and
       (2) by striking ``2009 or 2010'' in the heading thereof and 
     inserting ``2009, 2010, or 2011''.
       (c) Effective Dates.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to individuals who begin work for the employer after 
     the date of the enactment of this Act.
       (2) Unemployed veterans and disconnected youth.--The 
     amendments made by subsection (b) shall apply to individuals 
     who begin work for the employer after December 31, 2010.

     SEC. 843. EXCLUSION FROM INCOME FOR BENEFITS PROVIDED TO 
                   VOLUNTEER FIREFIGHTERS AND EMERGENCY MEDICAL 
                   RESPONDERS.

       (a) In General.--Subsection (d) of section 139B is amended 
     by striking ``December 31, 2010'' and inserting ``December 
     31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 844. PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-
                   PROVIDED MASS TRANSIT AND PARKING BENEFITS.

       (a) In General.--Paragraph (2) of section 132(f) is amended 
     by striking ``January 1, 2011'' and inserting ``January 1, 
     2012''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to months after December 31, 2010.

     SEC. 845. QUALIFIED MORTGAGE BONDS FOR REFINANCING OF 
                   SUBPRIME LOANS.

       (a) In General.--Subparagraph (D) of section 143(k)(12) is 
     amended by striking ``December 31, 2010'' and inserting 
     ``December 31, 2011''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bonds issued after December 31, 2010.

                       TITLE IX--OTHER PROVISIONS

     SEC. 901. REPEAL OF EXPANSION OF INFORMATION REPORTING 
                   REQUIREMENTS.

       (a) Repeal of Payments for Property and Other Gross 
     Proceeds.--Subsection (b) of section 9006 of the Patient 
     Protection and Affordable Care Act, and the amendments made 
     thereby, are hereby repealed; and the Internal Revenue Code 
     of 1986 shall be applied as if such subsection, and 
     amendments, had never been enacted.
       (b) Repeal of Application to Corporations; Application of 
     Regulatory Authority.--
       (1) In general.--Section 6041 of the Internal Revenue Code 
     of 1986, as amended by section 9006(a) of the Patient 
     Protection and Affordable Care Act and section 2101 of the 
     Small Business Jobs Act of 2010, is amended by striking 
     subsections (i) and (j) and inserting the following new 
     subsection:
       ``(i) Regulations.--The Secretary may prescribe such 
     regulations and other guidance as may be appropriate or 
     necessary to carry out the purposes of this section, 
     including rules to prevent duplicative reporting of 
     transactions.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to payments made after December 31, 2010.

     SEC. 902. REPEAL OF SUNSET ON TAX TREATMENT OF ALASKA NATIVE 
                   SETTLEMENT TRUSTS.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 671 of such Act 
     (relating to tax treatment and information requirements of 
     Alaska Native Settlement Trusts).

     SEC. 903. REPEAL OF SUNSET ON EXPANSION OF AUTHORITY TO 
                   POSTPONE CERTAIN TAX-RELATED DEADLINES.

       Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to sunset of provisions 
     of such Act) shall not apply to section 802 of such Act 
     (relating to expansion of authority to postpone certain tax-
     related deadlines by reason of Presidentially declared 
     disaster).

     SEC. 904. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       (a) In General.--Subchapter A of chapter 65 is amended by 
     adding at the end the following new section:

     ``SEC. 6409. REFUNDS DISREGARDED IN THE ADMINISTRATION OF 
                   FEDERAL PROGRAMS AND FEDERALLY ASSISTED 
                   PROGRAMS.

       ``Notwithstanding any other provision of law, any refund 
     (or advance payment with respect to a refundable credit) made 
     to any individual under this title shall not be taken into 
     account as income, and shall not be taken into account as 
     resources for a period of 12 months from receipt, for 
     purposes of determining the eligibility of such individual 
     (or any other individual) for benefits or assistance (or the 
     amount or extent of benefits or assistance) under any Federal 
     program or under any State or local program financed in whole 
     or in part with Federal funds.''.
       (b) Clerical Amendment.--The table of sections for such 
     subchapter is amended by adding at the end the following new 
     item:

``Sec. 6409. Refunds disregarded in the administration of Federal 
              programs and federally assisted programs.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts received after December 31, 2009.

     SEC. 905. TREATMENT OF SECURITIES OF A CONTROLLED CORPORATION 
                   EXCHANGED FOR ASSETS IN CERTAIN 
                   REORGANIZATIONS.

       (a) In General.--Section 361 (relating to nonrecognition of 
     gain or loss to corporations; treatment of distributions) is 
     amended by adding at the end the following new subsection:
       ``(d) Special Rules for Transactions Involving Section 355 
     Distributions.--In the case of a reorganization described in 
     section 368(a)(1)(D) with respect to which stock or 
     securities of the corporation to which the assets are 
     transferred are distributed in a transaction which qualifies 
     under section 355--
       ``(1) this section shall be applied by substituting `stock 
     other than nonqualified preferred stock (as defined in 
     section 351(g)(2))' for `stock or securities' in subsections 
     (a) and (b)(1), and
       ``(2) the first sentence of subsection (b)(3) shall apply 
     only to the extent that the sum of the money and the fair 
     market value of the other property transferred to such 
     creditors does not exceed the adjusted bases of such assets 
     transferred (reduced by the

[[Page S8441]]

     amount of the liabilities assumed (within the meaning of 
     section 357(c))).''.
       (b) Conforming Amendment.--Paragraph (3) of section 361(b) 
     is amended by striking the last sentence.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to exchanges 
     after December 31, 2010.
       (2) Transition rule.--The amendments made by this section 
     shall not apply to any exchange pursuant to a transaction 
     which is--
       (A) made pursuant to a written agreement which was binding 
     on December 31, 2010, and at all times thereafter,
       (B) described in a ruling request submitted to the Internal 
     Revenue Service on or before December 2, 2010, or
       (C) described on or before December 31, 2010, in a public 
     announcement or in a filing with the Securities and Exchange 
     Commission.

                     TITLE X--BUDGETARY PROVISIONS

     SEC. 1001. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose 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, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

     SEC. 1002. EMERGENCY DESIGNATIONS.

       (a) Statutory Paygo.--The provisions of this Act other than 
     those that qualify for the current policy adjustments under 
     section 7 of the Statutory Pay-As-You-Go Act of 2010 (Public 
     Law 111-139; 2 U.S.C. 933(g)) are designated as an emergency 
     requirement pursuant to section 4(g) of such Act (Public Law 
     111-139; 2 U.S.C. 933(g)).
       (b) House of Representatives.--In the House of 
     Representatives, this Act is designated as an emergency for 
     purposes of pay-as-you-go principles.
       (c) Senate.--In the Senate, this Act is designated as an 
     emergency requirement pursuant to section 403(a) of S. Con. 
     Res. 13 (111th Congress), the concurrent resolution on the 
     budget for fiscal year 2010.
                                 ______
                                 
  SA 4729. Mr. REID proposed an amendment to the bill H.R. 4853, to 
amend the Internal Revenue Code of 1986 to extend the funding and 
expenditure authority of the Airport and Airway Trust Fund, to amend 
title 49, United States Code, to extend authorizations for the airport 
improvement program, and for other purposes; as follows:

       At the end, add the following:
       The Senate Finance Committee is requested to study the 
     impact of any delay in extending tax cuts to middle income 
     Americans with incomes up to $250,000.
                                 ______
                                 
  SA 4730. Mr. REID proposed an amendment to amendment SA 4729 proposed 
by Mr. REID to the bill H.R. 4853, to amend the Internal Revenue Code 
of 1986 to extend the funding and expenditure authority of the Airport 
and Airway Trust Fund, to amend title 49, United States Code, to extend 
authorizations for the airport improvement program, and for other 
purposes; as follows:

       At the end, insert the following:
       ``including specific information on the impact of the delay 
     in extending the tax cuts''
                                 ______
                                 
  SA 4731. Mr. REID prposed an amendment to amendment SA 4730 proposed 
by Mr. REID to the amendment SA 4729 proposed by Mr. REID to the bill 
H.R. 4853, to amend the Internal Revenue Code of 1986 to extend the 
funding and expenditure authority of the Airport and Airway Trust Fund, 
to amend title 49, United States Code, to extend authorizations for the 
aiport improvement program, and for other purposes; as follows:

       At the end, insert the following:
       ``and include statistics which reflect regional 
     differences''

                          ____________________