[Congressional Record (Bound Edition), Volume 154 (2008), Part 1]
[Senate]
[Pages 1364-1372]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3980. Mr. VITTER (for himself and Mr. DeMint) submitted an 
amendment intended to be proposed by him to the bill H.R. 5140, to 
provide economic stimulus through recovery rebates to individuals, 
incentives for business investment, and an increase in conforming and 
FHA loan limits; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. ESTATE TAX REPEAL MADE PERMANENT.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 shall not apply to title V of such 
     Act.
                                 ______
                                 
  SA 3981. Mr. VITTER (for himself and Mr. DeMint) submitted an 
amendment intended to be proposed by him to the bill H.R. 5140, to 
provide economic stimulus through recovery rebates to individuals, 
incentives for business investment, and an increase in conforming and 
FHA loan limits; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. SMALLER PUBLIC COMPANY OPTION REGARDING INTERNAL 
                   CONTROL PROVISIONS.

       Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 
     7262) is amended by adding at the end the following:
       ``(c) Smaller Public Company Option.--
       ``(1) Voluntary compliance.--A smaller issuer shall not be 
     subject to the requirements of subsection (a), unless the 
     smaller issuer voluntarily elects to comply with such 
     requirements, in accordance with regulations prescribed by 
     the Commission. Any smaller issuer that does not elect to 
     comply with subsection (a) shall state such election, 
     together with the reasons therefor, in its annual report to 
     the Commission under section 13(a) or 15(d) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)).
       ``(2) Definition of smaller issuer.--
       ``(A) In general.--For purposes of this subsection, and 
     subject to subparagraph (B), the term `smaller issuer' means 
     an issuer for which an annual report is required by section 
     13(a) or 15(d) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m or 78o(d)), that--
       ``(i) has a total market capitalization at the beginning of 
     the relevant reporting period of less than $700,000,000;
       ``(ii) has total product and services revenue for that 
     reporting period of less than $125,000,000; or
       ``(iii) has, at the beginning of the relevant reporting 
     period, fewer than 1,500 record beneficial holders.
       ``(B) Annual adjustments.--The amounts referred to in 
     clauses (i) and (ii) of subparagraph (A) shall be adjusted 
     annually to account for changes in the Consumer Price Index 
     for all urban consumers, United States city average, as 
     published by the Bureau of Labor Statistics.''.
                                 ______
                                 
  SA 3982. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill H.R. 5140, to provide economic stimulus through 
recovery rebates to individuals, incentives for business investment, 
and an increase in conforming and FHA loan limits; which was ordered to 
lie on the table; as follows:

       On page __, between lines __ and __, insert the following:
       ``(5) Message on advance refund check.--The Secretary shall 
     display prominently the message ``Support Our Economy--Buy 
     American!'' on any advance refund check issued under this 
     section.
                                 ______
                                 
  SA 3983. Mr. REID proposed an amendment to the bill H.R. 5140, to 
provide economic stimulus through recovery rebates to individuals, 
incentives for business investment, and an increase in conforming and 
FHA loan limits; as follows:

       Strike all after the first word and and insert the 
     following:

     1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

                          TITLE I--TAX RELIEF

                  Subtitle A--Rebates for Individuals

Sec. 101. Economic recovery stimulus credit and rebate.

                 Subtitle B--Incentives for Businesses

Sec. 111. Temporary bonus depreciation allowance for certain property.
Sec. 112. Increased expensing for small businesses for 2008.
Sec. 113. Carryback of certain net operating losses allowed for 5 
              years; temporary suspension of 90 percent AMT limit.

              Subtitle C--Extensions of Energy Provisions

Sec. 121. Extension of credit for energy efficient appliances.
Sec. 122. Extension of credit for nonbusiness energy property.
Sec. 123. Suspension of taxable income limit with respect to marginal 
              wells.
Sec. 124. Extension of credit for residential energy efficient 
              property.
Sec. 125. Extension of renewable electricity and refined coal 
              production credit.
Sec. 126. Extension of new energy efficient home credit.
Sec. 127. Extension of energy credit.
Sec. 128. Extension and modification of credit for clean renewable 
              energy bonds.
Sec. 129. Extension of energy efficient commercial buildings deduction.
Sec. 130. Special rules for refund of the coal excise tax to certain 
              coal producers and exporters.

            Subtitle D--Provisions Relating to Housing Bonds

Sec. 131. Modifications on use of qualified mortgage bonds; temporary 
              increased volume cap for certain housing bonds.

               TITLE II--HOUSING GSE AND FHA LOAN LIMITS

Sec. 201. Temporary conforming loan limit increase for Fannie Mae and 
              Freddie Mac.
Sec. 202. Temporary loan limit increase for FHA.

        TITLE III--TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION

Sec. 301. Federal-State agreements.
Sec. 302. Temporary extended unemployment compensation account.
Sec. 303. Payments to States having agreements for the payment of 
              temporary extended unemployment compensation.
Sec. 304. Financing provisions.
Sec. 305. Fraud and overpayments.
Sec. 306. Definitions.
Sec. 307. Applicability.

              TITLE IV--LOW-INCOME HOME ENERGY ASSISTANCE

Sec. 401. Low-income home energy assistance program.

         TITLE V--EMERGENCY DESIGNATION OF APPROPRIATED AMOUNTS

Sec. 501. Emergency designation.

                          TITLE I--TAX RELIEF

                  Subtitle A--Rebates for Individuals

     SEC. 101. ECONOMIC RECOVERY STIMULUS CREDIT AND REBATE.

       (a) In General.--Section 6428 of the Internal Revenue Code 
     of 1986 is amended to read as follows:

[[Page 1365]]



     ``SEC. 6428. ECONOMIC STIMULUS CREDIT FOR 2008.

       ``(a) In General.--In the case of an eligible individual 
     who is a taxpayer who meets the requirements of subsection 
     (b), there shall be allowed as a credit against the tax 
     imposed by subtitle A for the first taxable year beginning in 
     2008 an amount equal to the sum of--
       ``(1) $500 ($1,000 in the case of a joint return), plus
       ``(2) the product of $300 multiplied by the number of 
     qualifying children (within the meaning of section 24(c)) of 
     the taxpayer.
       ``(b) Requirements.--An eligible individual meets the 
     requirements of this subsection if the taxpayer--
       ``(1) has qualifying income of at least $3,000, or
       ``(2) has--
       ``(A) net income tax liability which is greater than zero, 
     and
       ``(B) gross income which is greater than the sum of the 
     basic standard deduction plus the exemption amount (twice the 
     exemption amount in the case of a joint return).
       ``(c) Treatment of Credit.--The credit allowed by 
     subsection (a) shall be treated as allowed by subpart C of 
     part IV of subchapter A of chapter 1.
       ``(d) Limitation Based on Adjusted Gross Income.--The 
     amount of the credit allowed by subsection (a) (determined 
     without regard to this subsection and subsection (f)) shall 
     be reduced (but not below zero) by 5 percent of so much of 
     the taxpayer's adjusted gross income as exceeds $150,000 
     ($300,000 in the case of a joint return).
       ``(e) Definitions.--For purposes of this section--
       ``(1) Qualifying income.--For purposes of paragraph (1), 
     the term `qualifying income' means--
       ``(A) earned income,
       ``(B) social security benefits (within the meaning of 
     section 86(d)), and
       ``(C) any compensation or pension received under chapter 11 
     or chapter 15 of title 38, United States Code.
       ``(2) Net income tax liability.--The term `net income tax 
     liability' means the excess of--
       ``(A) the sum of the taxpayer's regular tax liability 
     (within the meaning of section 26(b)) and the tax imposed by 
     section 55 for the taxable year, over
       ``(B) the credits allowed by part IV (other than section 24 
     and subpart C thereof) of subchapter A of chapter 1.
       ``(3) Eligible individual.--The term `eligible individual' 
     means any individual other than--
       ``(A) any nonresident alien individual,
       ``(B) any individual with respect to whom a deduction under 
     section 151 is allowable to another taxpayer for a taxable 
     year beginning in the calendar year in which the individual's 
     taxable year begins,
       ``(C) an estate or trust, and
       ``(D) any individual who is a Senator or Representative in, 
     or Delegate or Resident Commissioner to, Congress.
       ``(4) Earned income.--The term `earned income' has the 
     meaning set forth in section 32(c)(2), except that--
       ``(A) subclause (II) of subparagraph (B)(vi) thereof shall 
     be applied by substituting `January 1, 2009' for `January 1, 
     2008', and
       ``(B) such term shall not include net earnings from self-
     employment which are not taken into account in computing 
     taxable income.
       ``(5) Basic standard deduction; exemption amount.--The 
     terms `basic standard deduction' and `exemption amount' shall 
     have the same respective meanings as when used in section 
     6012(a).
       ``(f) Coordination With Advance Refunds of Credit.--
       ``(1) In general.--The amount of credit which would (but 
     for this paragraph) be allowable under this section shall be 
     reduced (but not below zero) by the aggregate refunds and 
     credits made or allowed to the taxpayer under subsection (g). 
     Any failure to so reduce the credit shall be treated as 
     arising out of a mathematical or clerical error and assessed 
     according to section 6213(b)(1).
       ``(2) Joint returns.--In the case of a refund or credit 
     made or allowed under subsection (g) with respect to a joint 
     return, half of such refund or credit shall be treated as 
     having been made or allowed to each individual filing such 
     return.
       ``(g) Advance Refunds and Credits.--
       ``(1) In general.--Each individual who was an eligible 
     individual who was a taxpayer who met the requirements of 
     subsection (b) for such individual's first taxable year 
     beginning in 2007 shall be treated as having made a payment 
     against the tax imposed by chapter 1 for such first taxable 
     year in an amount equal to the advance refund amount for such 
     taxable year.
       ``(2) Advance refund amount.--For purposes of paragraph 
     (1), the advance refund amount is the amount that would have 
     been allowed as a credit under this section for such first 
     taxable year if this section (other than subsection (f) and 
     this subsection) had applied to such taxable year.
       ``(3) Timing of payments.--The Secretary shall, subject to 
     the provisions of this title, refund or credit any 
     overpayment attributable to this section as rapidly as 
     possible. No refund or credit shall be made or allowed under 
     this subsection after December 31, 2008.
       ``(4) No interest.--No interest shall be allowed on any 
     overpayment attributable to this section.
       ``(h) Identification Number Requirement.--
       ``(1) In general.--No credit shall be allowed under 
     subsection (a) to an eligible individual who does not include 
     on the return of tax for the taxable year--
       ``(A) such individual's valid identification number,
       ``(B) in the case of a joint return, the valid 
     identification number of such individual's spouse, and
       ``(C) in the case of any qualifying child taken into 
     account under subsection (a)(2), the valid identification 
     number of such qualifying child.
       ``(2) Valid identification number.--For purposes of 
     paragraph (1), the term `valid identification number' means a 
     social security number issued to an individual by the Social 
     Security Administration. Such term shall not include a TIN 
     issued by the Internal Revenue Service.
       ``(i) Refunds Disregarded in the Administration of Federal 
     Programs and Federally Assisted Programs.--Any payment 
     considered to have been made to any individual by reason of 
     this section shall not be taken into account as income and 
     shall not be taken into account as resources for the month of 
     the receipt and the following 2 months, 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) Treatment of Possessions.--
       (1) Mirror code possession.--The Secretary of the Treasury 
     shall make a payment to each possession of the United States 
     with a mirror code tax system in an amount equal to the loss 
     to that possession by reason of the amendments made by this 
     section. Such amount shall be determined by the Secretary of 
     the Treasury based on information provided by the government 
     of the respective possession.
       (2) Other possessions.--The Secretary of the Treasury shall 
     make a payment to each possession of the United States which 
     does not have a mirror code tax system in an amount estimated 
     by the Secretary of the Treasury as being equal to the 
     aggregate benefits that would have been provided to residents 
     of such possession by reason of the amendments made by this 
     section if a mirror code tax system had been in effect in 
     such possession. The preceding sentence shall not apply with 
     respect to any possession of the United States unless such 
     possession has a plan, which has been approved by the 
     Secretary of the Treasury, under which such possession will 
     promptly distribute such payment to the residents of such 
     possession.
       (3) Definitions and special rules.--
       (A) Possession of the united states.--For purposes of this 
     subsection, the term ``possession of the United States'' 
     includes the Commonwealth of Puerto Rico and the Commonwealth 
     of the Northern Mariana Islands.
       (B) Mirror code tax system.--For purposes of this 
     subsection, the term ``mirror code tax system'' means, with 
     respect to any possession of the United States, the income 
     tax system of such possession if the income tax liability of 
     the residents of such possession under such system is 
     determined by reference to the income tax laws of the United 
     States as if such possession were the United States.
       (C) Treatment of payments.--For purposes of section 
     1324(b)(2) of title 31, United States Code, the payments 
     under this subsection shall be treated in the same manner as 
     a refund due from the credit allowed under section 6428 of 
     the Internal Revenue Code of 1986 (as added by this section).
       (c) Administrative Amendments.--
       (1) Definition of deficiency.--Section 6211(d)(4)(A) of the 
     Internal Revenue Code of 1986 is amended by striking ``and 
     53(e)'' and inserting ``53(e), and 6428''.
       (2) Mathematical or clerical error authority.--Section 
     6213(g)(2)(L) of such Code is amended by striking ``or 32'' 
     and inserting ``32, or 6428''.
       (d) Appropriations to Carry Out Recovery Rebates.--
       (1) In general.--Immediately upon the enactment of this 
     Act, the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2008:
       (A) For an additional amount for ``Department of the 
     Treasury--Financial Management Service--Salaries and 
     Expenses'', $64,175,000, to remain available until September 
     30, 2009.
       (B) For an additional amount for ``Department of the 
     Treasury--Internal Revenue Service--Taxpayer Services'', 
     $50,720,000, to remain available until September 30, 2009.
       (C) For an additional amount for ``Department of the 
     Treasury--Internal Revenue Service--Operations Support'', 
     $151,415,000, to remain available until September 30, 2009.
       (2) Reports.--No later than 15 days after enactment of this 
     Act, the Secretary of the

[[Page 1366]]

     Treasury shall submit a plan to the Committees on 
     Appropriations of the House of Representatives and the Senate 
     detailing the expected use of the funds provided by this 
     subsection. Beginning 90 days after enactment of this Act, 
     the Secretary of the Treasury shall submit a quarterly report 
     to the Committees on Appropriations of the House of 
     Representatives and the Senate detailing the actual 
     expenditure of funds provided by this subsection and the 
     expected expenditure of such funds in the subsequent quarter.
       (e) Conforming Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting ``or 6428'' after 
     ``section 35''.
       (2) Paragraph (1) of section 1(i) of the Internal Revenue 
     Code of 1986 is amended by striking subparagraph (D).
       (3) The item relating to section 6428 in the table of 
     sections for subchapter B of chapter 65 of such Code is 
     amended to read as follows:

``Sec. 6428. Economic stimulus credit for 2008.''.

                 Subtitle B--Incentives for Businesses

     SEC. 111. TEMPORARY BONUS DEPRECIATION ALLOWANCE FOR CERTAIN 
                   PROPERTY.

       (a) In General.--Subsection (k) of section 168 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(k) Special Allowance for Certain Property.--
       ``(1) Additional allowance.--
       ``(A) In general.--In the case of any qualified property 
     placed in service by an eligible taxpayer--
       ``(i) the depreciation deduction provided by section 167(a) 
     for each applicable taxable year shall include an allowance 
     equal to 25 percent of the adjusted basis of the qualified 
     property, and
       ``(ii) the adjusted basis of the qualified property shall 
     be reduced by the amount of such deduction before computing 
     the amount otherwise allowable as a depreciation deduction 
     under this chapter for such taxable year and any subsequent 
     taxable year.
       ``(B) Eligible taxpayer.--
       ``(i) In general.--At such time and in such manner as the 
     Secretary shall prescribe, each taxpayer may elect to be an 
     eligible taxpayer with respect to 1 (and only 1) of the 
     following:

       ``(I) This subsection.
       ``(II) The application of section 56(d)(1)(A)(ii)(I) and 
     section 172(b)(1)(H)(ii) in connection with net operating 
     losses relating to taxable years beginning or ending during 
     2006, 2007, and 2008.
       ``(III) Section 179(b)(7).

       ``(ii) Eligible taxpayer.--For purposes of each of the 
     provisions described in clause (i), a taxpayer shall only be 
     treated as an eligible taxpayer with respect to the provision 
     with respect to which the taxpayer made the election under 
     clause (i).
       ``(iii) Election irrevocable.--An election under clause (i) 
     may not be revoked except with the consent of the Secretary.
       ``(C) Applicable taxable year.--For purposes of 
     subparagraph (A), the term `applicable taxable year' means, 
     with respect to any qualified property--
       ``(i) the first taxable year in which such property is 
     placed in service, and
       ``(ii) the next succeeding taxable year.
       ``(2) Qualified property.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified property' means 
     property--
       ``(i)(I) to which this section applies which has a recovery 
     period of 20 years or less,
       ``(II) which is computer software (as defined in section 
     167(f)(1)(B)) for which a deduction is allowable under 
     section 167(a) without regard to this subsection,
       ``(III) which is water utility property, or
       ``(IV) which is qualified leasehold improvement property,
       ``(ii) the original use of which commences with the 
     taxpayer on or after the starting date,
       ``(iii) which is--

       ``(I) acquired by the taxpayer on or after the starting 
     date and before the ending date, but only if no written 
     binding contract for the acquisition was in effect before the 
     starting date, or
       ``(II) acquired by the taxpayer pursuant to a written 
     binding contract which was entered into on or after the 
     starting date and before the ending date, and

       ``(iv) which is placed in service by the taxpayer before 
     the ending date, or, in the case of property described in 
     subparagraph (B) or (C), before the date that is 1 year after 
     the ending date.
       ``(B) Certain property having longer production periods 
     treated as qualified property.--
       ``(i) In general.--The term `qualified property' includes 
     any property if such property--

       ``(I) meets the requirements of clauses (i), (ii), (iii), 
     and (iv) of subparagraph (A),
       ``(II) has a recovery period of at least 10 years or is 
     transportation property,
       ``(III) is subject to section 263A, and
       ``(IV) meets the requirements of clause (iii) of section 
     263A(f)(1)(B) (determined as if such clause also applied to 
     property which has a long useful life (within the meaning of 
     section 263A(f))).

       ``(ii) Only pre-ending date basis eligible for additional 
     allowance.--In the case of property which is qualified 
     property solely by reason of clause (i), paragraph (1) shall 
     apply only to the extent of the adjusted basis thereof 
     attributable to manufacture, construction, or production 
     before the ending date.
       ``(iii) Transportation property.--For purposes of this 
     subparagraph, the term `transportation property' means 
     tangible personal property used in the trade or business of 
     transporting persons or property.
       ``(iv) Application of subparagraph.--This subparagraph 
     shall not apply to any property which is described in 
     subparagraph (C).
       ``(C) Certain aircraft.--The term `qualified property' 
     includes property--
       ``(i) which meets the requirements of clauses (ii), (iii), 
     and (iv) of subparagraph (A),
       ``(ii) which is an aircraft which is not a transportation 
     property (as defined in subparagraph (B)(iii)) other than for 
     agricultural or firefighting purposes,
       ``(iii) which is purchased and on which such purchaser, at 
     the time of the contract for purchase, has made a 
     nonrefundable deposit of the lesser of--

       ``(I) 10 percent of the cost, or
       ``(II) $100,000, and

       ``(iv) which has--

       ``(I) an estimated production period exceeding 4 months, 
     and
       ``(II) a cost exceeding $200,000.

       ``(3) Exceptions.--
       ``(A) Alternative depreciation property.--This subsection 
     shall not apply to any property to which the alternative 
     depreciation system under subsection (g) applies, 
     determined--
       ``(i) without regard to paragraph (7) of subsection (g) 
     (relating to election to have system apply), and
       ``(ii) after application of section 280F(b) (relating to 
     listed property with limited business use).
       ``(B) Election out.--If a taxpayer makes an election under 
     this subparagraph with respect to any class of property for 
     any taxable year, this subsection shall not apply to all 
     property in such class placed in service during such taxable 
     year.
       ``(4) Special rules.--
       ``(A) Self-constructed property.--In the case of a taxpayer 
     manufacturing, constructing, or producing property for the 
     taxpayer's own use, the requirements of paragraph (2)(A)(iii) 
     shall be treated as met if the taxpayer begins manufacturing, 
     constructing, or producing the property on or after the 
     starting date and before the ending date.
       ``(B) Sale-leasebacks.--For purposes of subparagraph (C) 
     and paragraph (2)(A)(ii), if property is--
       ``(i) originally placed in service on or after the starting 
     date by a person, and
       ``(ii) sold and leased back by such person within 3 months 
     after the date such property was originally placed in 
     service,

     such property shall be treated as originally placed in 
     service not earlier than the date on which such property is 
     used under the leaseback referred to in clause (ii).
       ``(C) Syndication.--For purposes of paragraph (2)(A)(ii), 
     if--
       ``(i) property is originally placed in service on or after 
     the starting date by the lessor of such property,
       ``(ii) such property is sold by such lessor or any 
     subsequent purchaser within 3 months after the date such 
     property was originally placed in service (or, in the case of 
     multiple units of property subject to the same lease, within 
     3 months after the date the final unit is placed in service, 
     so long as the period between the time the first unit is 
     placed in service and the time the last unit is placed in 
     service does not exceed 12 months), and
       ``(iii) the user of such property after the last sale 
     during such 3-month period remains the same as when such 
     property was originally placed in service,

     such property shall be treated as originally placed in 
     service not earlier than the date of such last sale.
       ``(D) Limitations related to users and related parties.--
     This subsection shall not apply to any property if--
       ``(i) the user of such property (as of the date on which 
     such property is originally placed in service) or a person 
     which is related (within the meaning of section 267(b) or 
     707(b)) to such user or to the taxpayer had a written binding 
     contract in effect for the acquisition of such property at 
     any time before the starting date, or
       ``(ii) in the case of property manufactured, constructed, 
     or produced for such user's or person's own use, the 
     manufacture, construction, or production of such property 
     began at any time before the starting date.
       ``(5) Coordination with section 280f.--For purposes of 
     section 280F--
       ``(A) Automobiles.--In the case of a passenger automobile 
     (as defined in section 280F(d)(5)) which is qualified 
     property, the Secretary shall increase the limitations under 
     clauses (i) and (ii) of section 280F(a)(1)(A) by $3,825.
       ``(B) Listed property.--The deduction allowable under 
     paragraph (1) shall be taken into account in computing any 
     recapture amount under section 280F(b)(2).
       ``(6) Deduction allowed in computing minimum tax.--For 
     purposes of determining alternative minimum taxable income 
     under

[[Page 1367]]

     section 55, the deduction under subsection (a) for qualified 
     property shall be determined under this section without 
     regard to any adjustment under section 56.
       ``(7) Qualified leasehold improvement property.--For 
     purposes of this subsection--
       ``(A) In general.--The term `qualified leasehold 
     improvement property' means any improvement to an interior 
     portion of a building which is nonresidential real property 
     if--
       ``(i) such improvement is made under or pursuant to a lease 
     (as defined in subsection (h)(7))--

       ``(I) by the lessee (or any sublessee) of such portion, or
       ``(II) by the lessor of such portion,

       ``(ii) such portion is to be occupied exclusively by the 
     lessee (or any sublessee) of such portion, and
       ``(iii) such improvement is placed in service more than 3 
     years after the date the building was first placed in 
     service.
       ``(B) Certain improvements not included.--Such term shall 
     not include any improvement for which the expenditure is 
     attributable to--
       ``(i) the enlargement of the building,
       ``(ii) any elevator or escalator,
       ``(iii) any structural component benefitting a common area, 
     and
       ``(iv) the internal structural framework of the building.
       ``(C) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Commitment to lease treated as lease.--A commitment 
     to enter into a lease shall be treated as a lease, and the 
     parties to such commitment shall be treated as lessor and 
     lessee, respectively.
       ``(ii) Related persons.--A lease between related persons 
     shall not be considered a lease. For purposes of the 
     preceding sentence, the term `related persons' means--

       ``(I) members of an affiliated group (as defined in section 
     1504), and
       ``(II) persons having a relationship described in 
     subsection (b) of section 267; except that, for purposes of 
     this clause, the phrase `80 percent or more' shall be 
     substituted for the phrase `more than 50 percent' each place 
     it appears in such subsection.

       ``(8) Other definitions.--For purposes of this subsection--
       ``(A) Starting date.--The term `starting date' means 
     January 30, 2008.
       ``(B) Ending date.--The term `ending date' means December 
     31, 2008.''.
       (b) Coordination With Other Bonus Depreciation 
     Provisions.--
       (1) Cellulosic biomass ethanol plant property.--Paragraph 
     (4) of section 168(l) of the Internal Revenue Code of 1986 is 
     amended by redesignating subparagraphs (A), (B), and (C) as 
     subparagraphs (B), (C), and (D) and inserting before 
     subparagraph (B) (as so redesignated) the following new 
     subparagraph:
       ``(A) Bonus depreciation property under subsection (k).--
     Such term shall not include any property to which section 
     168(k) applies.''.
       (2) Specified gulf opportunity zone extension property.--
     Subparagraph (B) of section 1400N(d)(6) of such Code is 
     amended by adding at the end the following new flush 
     sentence:

     ``Such term shall not include any property to which section 
     168(k) applies.''.
       (c) Conforming Amendments.--
       (1) Section 168(e)(6) of the Internal Revenue Code of 1986 
     is amended by striking ``section 168(k)(3)'' and inserting 
     ``section 168(k)(7)''.
       (2) Section 168(l) of such Code is amended--
       (A) in paragraph (4)(B), as redesignated by subsection 
     (b)(1), by striking ``168(k)(2)(D)(i)'' and inserting 
     ``169(k)(3)(A)''.
       (B) by striking paragraph (5) and inserting the following:
       ``(5) Special rules.--For purposes of this subsection, 
     rules similar to the rules of paragraph (4) of section 168(k) 
     shall apply, except that in applying such paragraph--
       ``(A) the starting date shall be one day after the date of 
     the enactment of this subsection,
       ``(B) the ending date shall be January 1, 2013, and
       ``(C) `qualified cellulosic biomass ethanol plant property' 
     shall be substituted for `qualified property' in clause (iv) 
     thereof.'', and
       (C) in paragraph (6), by striking ``168(k)(2)(G)'' and 
     inserting ``168(k)(6)''.
       (3) Section 1400L(b)(2) of such Code is amended--
       (A) in subparagraph (C)(ii), by striking 
     ``168(k)(2)(D)(i)'' and inserting ``168(k)(3)(A)'',
       (B) in subparagraph (C)(iv), by striking 
     ``168(k)(2)(D)(iii)'' and inserting ``168(k)(3)(B)'', and
       (C) in subparagraph (E), by striking ``168(k)(2)(G)'' and 
     inserting ``168(k)(6)''.
       (4) Section 1400L(c) of such Code is amended--
       (A) in paragraph (2), by striking ``168(k)(3)'' and 
     inserting ``168(k)(7)'', and
       (B) in paragraph (5), by striking ``168(k)(2)(D)(iii)'' and 
     inserting ``168(k)(3)(B)''.
       (5) Section 1400N(d) of such Code is amended--
       (A) in paragraph (2)(B)(i), by striking ``168(k)(2)(D)(i)'' 
     and inserting ``168(k)(3)(A)'',
       (B) by striking paragraph (3) and inserting the following:
       ``(5) Special rules.--For purposes of this subsection, 
     rules similar to the rules of paragraph (4) of section 168(k) 
     shall apply, except that in applying such paragraph--
       ``(A) the starting date shall be August 28, 2005,
       ``(B) the ending date shall be January 1, 2008, and
       ``(C) `qualified Gulf Opportunity Zone property' shall be 
     substituted for `qualified property' in clause (iv) 
     thereof.'', and
       (C) in paragraph (4), by striking ``168(k)(2)(G)'' and 
     inserting ``168(k)(6)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after January 29, 
     2007, in taxable years ending after such date.

     SEC. 112. INCREASED EXPENSING FOR SMALL BUSINESSES FOR 2008.

       (a) In General.--Subsection (b) of section 179 of the 
     Internal Revenue Code of 1986 (relating to limitations) is 
     amended by adding at the end the following new paragraph:
       ``(7) Special rule for eligible taxpayers in 2008.--In the 
     case of any taxable year of any eligible taxpayer (within the 
     meaning of section 168(k)(1)(B)) beginning in 2008--
       ``(A) the dollar limitation under paragraph (1) shall be 
     $250,000, and
       ``(B) the dollar limitation under paragraph (2) shall be 
     $800,000.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 113. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED 
                   FOR 5 YEARS; TEMPORARY SUSPENSION OF 90 PERCENT 
                   AMT LIMIT.

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

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

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

              Subtitle C--Extensions of Energy Provisions

     SEC. 121. EXTENSION OF CREDIT FOR ENERGY EFFICIENT 
                   APPLIANCES.

       (a) In General.--Subsection (b) of section 45M of the 
     Internal Revenue Code of 1986 (relating to applicable amount) 
     is amended by striking ``calendar year 2006 or 2007'' each

[[Page 1368]]

     place it appears in paragraphs (1)(A)(i), (1)(B)(i), 
     (1)(C)(ii)(I), and (1)(C)(iii)(I), and inserting ``calendar 
     year 2006, 2007, 2008, or 2009''.
       (b) Restart of Credit Limitation.--Paragraph (1) of section 
     45M(e) of the Internal Revenue Code of 1986 (relating to 
     aggregate credit amount allowed) is amended by inserting 
     ``beginning after December 31, 2007'' after ``for all prior 
     taxable years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to appliances produced after December 31, 2007.

     SEC. 122. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY 
                   PROPERTY.

       (a) In General.--Section 25C(g) of the Internal Revenue 
     Code of 1986 (relating to termination) is amended by striking 
     ``December 31, 2007'' and inserting ``December 31, 2009''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2007.

     SEC. 123. SUSPENSION OF TAXABLE INCOME LIMIT WITH RESPECT TO 
                   MARGINAL WELLS.

       (a) In General.--Subparagraph (H) of section 613A(c)(6) of 
     the Internal Revenue Code of 1986 (relating to temporary 
     suspension of taxable income limit with respect to marginal 
     production) is amended by striking ``January 1, 2008'' and 
     inserting ``January 1, 2010''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

     SEC. 124. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY 
                   EFFICIENT PROPERTY.

       Subsection (g) of section 25D of the Internal Revenue Code 
     of 1986 (relating to termination) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2009''.

     SEC. 125. EXTENSION OF RENEWABLE ELECTRICITY AND REFINED COAL 
                   PRODUCTION CREDIT.

       Section 45(d) of the Internal Revenue Code of 1986 
     (relating to qualified facilities) is amended by striking 
     ``January 1, 2009'' each place it appears in paragraphs (1), 
     (2), (3), (4), (5), (6), (7), (8), and (9) and inserting 
     ``January 1, 2010''.

     SEC. 126. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.

       Subsection (g) of section 45L of the Internal Revenue Code 
     of 1986 (relating to termination) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2009''.

     SEC. 127. EXTENSION OF ENERGY CREDIT.

       (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and 
     (3)(A)(ii) of section 48(a) of the Internal Revenue Code of 
     1986 (relating to energy credit) are each amended by striking 
     ``January 1, 2009'' and inserting ``January 1, 2010''.
       (b) Fuel Cell Property.--Subparagraph (E) of section 
     48(c)(1) of the Internal Revenue Code of 1986 (relating to 
     qualified fuel cell property) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2009''.
       (c) Microturbine Property.--Subparagraph (E) of section 
     48(c)(2) of the Internal Revenue Code of 1986 (relating to 
     qualified microturbine property) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2009''.

     SEC. 128. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN 
                   RENEWABLE ENERGY BONDS.

       (a) Extension.--Section 54(m) of the Internal Revenue Code 
     of 1986 (relating to termination) is amended by striking 
     ``December 31, 2008'' and inserting ``December 31, 2009''.
       (b) Increase in National Limitation.--Section 54(f) of the 
     Internal Revenue Code of 1986 (relating to limitation on 
     amount of bonds designated) is amended--
       (1) by striking ``$1,200,000,000'' in paragraph (1) and 
     inserting ``$1,600,000,000'', and
       (2) by striking ``$750,000,000'' in paragraph (2) and 
     inserting ``$1,000,000,000''.
       (c) Modification of Ratable Principal Amortization 
     Requirement.--
       (1) In general.--Paragraph (5) of section 54(l) is amended 
     to read as follows:
       ``(5) Ratable principal amortization required.--A bond 
     shall not be treated as a clean renewable energy bond unless 
     it is part of an issue which provides for an equal amount of 
     principal to be paid by the qualified issuer during each 12-
     month period that the issue is outstanding (other than the 
     first 12-month period).''.
       (2) Technical amendment.--The third sentence of section 
     54(e)(2) is amended by striking ``subsection (l)(6)'' and 
     inserting ``subsection (l)(5)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to bonds issued after the date of the enactment 
     of this Act.

     SEC. 129. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
                   DEDUCTION.

       Section 179D(h) of the Internal Revenue Code of 1986 
     (relating to termination) is amended by striking ``December 
     31, 2008'' and inserting ``December 31, 2009''.

     SEC. 130. SPECIAL RULES FOR REFUND OF THE COAL EXCISE TAX TO 
                   CERTAIN COAL PRODUCERS AND EXPORTERS.

       (a) Refund.--
       (1) Coal producers.--
       (A) In general.--Notwithstanding subsections (a)(1) and (c) 
     of section 6416 and section 6511 of the Internal Revenue Code 
     of 1986, if--
       (i) a coal producer establishes that such coal producer, or 
     a party related to such coal producer, exported coal produced 
     by such coal producer to a foreign country or shipped coal 
     produced by such coal producer to a possession of the United 
     States, or caused such coal to be exported or shipped, the 
     export or shipment of which was other than through an 
     exporter who meets the requirements of paragraph (2),
       (ii) such coal producer filed an excise tax return on or 
     after October 1, 1990, and on or before the date of the 
     enactment of this Act, and
       (iii) such coal producer files a claim for refund with the 
     Secretary not later than the close of the 30-day period 
     beginning on the date of the enactment of this Act,

     then the Secretary shall pay to such coal producer an amount 
     equal to the tax paid under section 4121 of such Code on such 
     coal exported or shipped by the coal producer or a party 
     related to such coal producer, or caused by the coal producer 
     or a party related to such coal producer to be exported or 
     shipped.
       (B) Special rules for certain taxpayers.--For purposes of 
     this section--
       (i) In general.--If a coal producer or a party related to a 
     coal producer has received a judgment described in clause 
     (iii) and has provided evidence as provided under clause 
     (iv), such coal producer shall be deemed to have established 
     the export of coal to a foreign country or shipment of coal 
     to a possession of the United States under subparagraph 
     (A)(i).
       (ii) Amount of payment.--If a taxpayer described in clause 
     (i) is entitled to a payment under subparagraph (A), the 
     amount of such payment shall be reduced by any amount paid 
     pursuant to the judgment described in clause (iii).
       (iii) Judgment described.--A judgment is described in this 
     subparagraph if such judgment--

       (I) is made by a court of competent jurisdiction within the 
     United States,
       (II) relates to the constitutionality of any tax paid on 
     exported coal under section 4121 of the Internal Revenue Code 
     of 1986, and
       (III) is in favor of the coal producer or the party related 
     to the coal producer.

       (2) Exporters.--Notwithstanding subsections (a)(1) and (c) 
     of section 6416 and section 6511 of the Internal Revenue Code 
     of 1986, and a judgment described in paragraph (1)(B)(iii) of 
     this subsection, if--
       (A) an exporter establishes that such exporter exported 
     coal to a foreign country or shipped coal to a possession of 
     the United States, or caused such coal to be so exported or 
     shipped,
       (B) such exporter filed a tax return on or after October 1, 
     1990, and on or before the date of the enactment of this Act, 
     and
       (C) such exporter files a claim for refund with the 
     Secretary not later than the close of the 30-day period 
     beginning on the date of the enactment of this Act,

     then the Secretary shall pay to such exporter an amount equal 
     to $0.825 per ton of such coal exported by the exporter or 
     caused to be exported or shipped, or caused to be exported or 
     shipped, by the exporter.
       (b) Limitations.--Subsection (a) shall not apply with 
     respect to exported coal if a settlement with the Federal 
     Government has been made with and accepted by, the coal 
     producer, a party related to such coal producer, or the 
     exporter, of such coal, as of the date that the claim is 
     filed under this section with respect to such exported coal. 
     For purposes of this subsection, the term ``settlement with 
     the Federal Government'' shall not include any settlement or 
     stipulation entered into as of the date of the enactment of 
     this Act, the terms of which contemplate a judgment 
     concerning which any party has reserved the right to file an 
     appeal, or has filed an appeal.
       (c) Subsequent Refund Prohibited.--No refund shall be made 
     under this section to the extent that a credit or refund of 
     such tax on such exported or shipped coal has been paid to 
     any person.
       (d) Definitions.--For purposes of this section--
       (1) Coal producer.--The term ``coal producer'' means the 
     person in whom is vested ownership of the coal immediately 
     after the coal is severed from the ground, without regard to 
     the existence of any contractual arrangement for the sale or 
     other disposition of the coal or the payment of any royalties 
     between the producer and third parties. The term includes any 
     person who extracts coal from coal waste refuse piles or from 
     the silt waste product which results from the wet washing (or 
     similar processing) of coal.
       (2) Exporter.--The term ``exporter'' means a person, other 
     than a coal producer, who does not have a contract, fee 
     arrangement, or any other agreement with a producer or seller 
     of such coal to export or ship such coal to a third party on 
     behalf of the producer or seller of such coal and--
       (A) is indicated in the shipper's export declaration or 
     other documentation as the exporter of record, or
       (B) actually exported such coal to a foreign country or 
     shipped such coal to a possession of the United States, or 
     caused such coal to be so exported or shipped.
       (3) Related party.--The term ``a party related to such coal 
     producer'' means a person who--

[[Page 1369]]

       (A) is related to such coal producer through any degree of 
     common management, stock ownership, or voting control,
       (B) is related (within the meaning of section 144(a)(3) of 
     such Code) to such coal producer, or
       (C) has a contract, fee arrangement, or any other agreement 
     with such coal producer to sell such coal to a third party on 
     behalf of such coal producer.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Treasury or the Secretary's designee.
       (e) Timing of Refund.--With respect to any claim for refund 
     filed pursuant to this section, the Secretary shall determine 
     whether the requirements of this section are met not later 
     than 180 days after such claim is filed. If the Secretary 
     determines that the requirements of this section are met, the 
     claim for refund shall be paid not later than 180 days after 
     the Secretary makes such determination.
       (f) Interest.--Any refund paid pursuant to this section 
     shall be paid by the Secretary with interest from the date of 
     overpayment determined by using the overpayment rate and 
     method under section 6621 of such Code.
       (g) Denial of Double Benefit.--The payment under subsection 
     (a) with respect to any coal shall not exceed--
       (1) in the case of a payment to a coal producer, the amount 
     of tax paid under section 4121 of the Internal Revenue Code 
     of 1986 with respect to such coal by such coal producer or a 
     party related to such coal producer, and
       (2) in the case of a payment to an exporter, an amount 
     equal to $0.825 per ton with respect to such coal exported by 
     the exporter or caused to be exported by the exporter.
       (h) Application of Section.--This section applies only to 
     claims on coal exported or shipped on or after October 1, 
     1990, through the date of the enactment of this Act.
       (i) Standing Not Conferred.--
       (1) Exporters.--With respect to exporters, this section 
     shall not confer standing upon an exporter to commence, or 
     intervene in, any judicial or administrative proceeding 
     concerning a claim for refund by a coal producer of any 
     Federal or State tax, fee, or royalty paid by the coal 
     producer.
       (2) Coal producers.--With respect to coal producers, this 
     section shall not confer standing upon a coal producer to 
     commence, or intervene in, any judicial or administrative 
     proceeding concerning a claim for refund by an exporter of 
     any Federal or State tax, fee, or royalty paid by the 
     producer and alleged to have been passed on to an exporter.

            Subtitle D--Provisions Relating to Housing Bonds

     SEC. 131. MODIFICATIONS ON USE OF QUALIFIED MORTGAGE BONDS; 
                   TEMPORARY INCREASED VOLUME CAP FOR CERTAIN 
                   HOUSING BONDS.

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

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

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

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

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

               TITLE II--HOUSING GSE AND FHA LOAN LIMITS

     SEC. 201. TEMPORARY CONFORMING LOAN LIMIT INCREASE FOR FANNIE 
                   MAE AND FREDDIE MAC.

       (a) Increase of High Cost Areas Limits for Housing GSEs.--
     For mortgages originated during the period beginning on July 
     1, 2007, and ending at the end of December 31, 2008:
       (1) Fannie mae.--With respect to the Federal National 
     Mortgage Association, notwithstanding section 302(b)(2) of 
     the Federal National Mortgage Association Charter Act (12 
     U.S.C. 1717(b)(2)), the limitation on the maximum original 
     principal obligation of a mortgage that may be purchased by 
     the Association shall be the higher of--
       (A) the limitation for 2008 determined under such section 
     302(b)(2) for a residence of the applicable size; or
       (B) 125 percent of the area median price for a residence of 
     the applicable size, but in no case to exceed 175 percent of 
     the limitation for 2008 determined under such section 
     302(b)(2) for a residence of the applicable size.
       (2) Freddie mac.--With respect to the Federal Home Loan 
     Mortgage Corporation, notwithstanding section 305(a)(2) of 
     the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)), the limitation on the maximum original principal 
     obligation of a mortgage that may be purchased by the 
     Corporation shall be the higher of--
       (A) the limitation determined for 2008 under such section 
     305(a)(2) for a residence of the applicable size; or
       (B) 125 percent of the area median price for a residence of 
     the applicable size, but in no case to exceed 175 percent of 
     the limitation determined for 2008 under such section 
     305(a)(2) for a residence of the applicable size.
       (b) Determination of Limits.--The areas and area median 
     prices used for purposes of the determinations under 
     subsection (a) shall be the areas and area median prices used 
     by the Secretary of Housing and Urban Development in 
     determining the applicable limits under section 202 of this 
     title.
       (c) Rule of Construction.--A mortgage originated during the 
     period referred to in subsection (a) that is eligible for 
     purchase by the Federal National Mortgage Association or the 
     Federal Home Loan Mortgage Corporation pursuant to this 
     section shall be eligible for such purchase for the duration 
     of the term of the mortgage, notwithstanding that such 
     purchase occurs after the expiration of such period.
       (d) Effect on Housing Goals.--Notwithstanding any other 
     provision of law, mortgages purchased in accordance with the 
     increased maximum original principal obligation limitations 
     determined pursuant to this section shall not be considered 
     in determining performance with respect to any of the housing 
     goals established under section 1332, 1333, or 1334 of the 
     Housing and Community Development Act of 1992 (12 U.S.C. 
     4562-

[[Page 1370]]

     4), and shall not be considered in determining compliance 
     with such goals pursuant to section 1336 of such Act (12 
     U.S.C. 4566) and regulations, orders, or guidelines issued 
     thereunder.
       (e) Sense of Congress.--It is the sense of the Congress 
     that the securitization of mortgages by the Federal National 
     Mortgage Association and the Federal Home Loan Mortgage 
     Corporation plays an important role in providing liquidity to 
     the United States housing markets. Therefore, the Congress 
     encourages the Federal National Mortgage Association and the 
     Federal Home Loan Mortgage Corporation to securitize 
     mortgages acquired under the increased conforming loan limits 
     established in this section, to the extent that such 
     securitizations can be effected in a timely and efficient 
     manner that does not impose additional costs for mortgages 
     originated, purchased, or securitized under the existing 
     limits or interfere with the goal of adding liquidity to the 
     market.

     SEC. 202. TEMPORARY LOAN LIMIT INCREASE FOR FHA.

       (a) Increase of High-Cost Area Limit.--For mortgages for 
     which the mortgagee has issued credit approval for the 
     borrower on or before December 31, 2008, subparagraph (A) of 
     section 203(b)(2) of the National Housing Act (12 U.S.C. 
     1709(b)(2)(A)) shall be considered (except for purposes of 
     section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to 
     require that a mortgage shall involve a principal obligation 
     in an amount that does not exceed the lesser of--
       (1) in the case of a 1-family residence, 125 percent of the 
     median 1-family house price in the area, as determined by the 
     Secretary; and in the case of a 2-, 3-, or 4-family 
     residence, the percentage of such median price that bears the 
     same ratio to such median price as the dollar amount 
     limitation determined for 2008 under section 305(a)(2) of the 
     Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
     1454(a)(2)) for a 2-, 3-, or 4-family residence, 
     respectively, bears to the dollar amount limitation 
     determined for 2008 under such section for a 1-family 
     residence; or
       (2) 175 percent of the dollar amount limitation determined 
     for 2008 under such section 305(a)(2) for a residence of the 
     applicable size (without regard to any authority to increase 
     such limitation with respect to properties located in Alaska, 
     Guam, Hawaii, or the Virgin Islands);

     except that the dollar amount limitation in effect under this 
     subsection for any size residence for any area shall not be 
     less than the greater of (A) the dollar amount limitation in 
     effect under such section 203(b)(2) for the area on October 
     21, 1998; or (B) 65 percent of the dollar amount limitation 
     determined for 2008 under such section 305(a)(2) for a 
     residence of the applicable size. Any reference in this 
     subsection to dollar amount limitations in effect under 
     section 305 (a)(2) of the Federal Home Loan Mortgage 
     Corporation Act means such limitations as in effect without 
     regard to any increase in such limitation pursuant to section 
     201 of this title.
       (b) Discretionary Authority.--If the Secretary of Housing 
     and Urban Development determines that market conditions 
     warrant such an increase, the Secretary may, for the period 
     that begins upon the date of the enactment of this Act and 
     ends at the end of the date specified in subsection (a), 
     increase the maximum dollar amount limitation determined 
     pursuant to subsection (a) with respect to any particular 
     size or sizes of residences, or with respect to residences 
     located in any particular area or areas, to an amount that 
     does not exceed the maximum dollar amount then otherwise in 
     effect pursuant to subsection (a) for such size residence, or 
     for such area (if applicable), by not more than $100,000.
       (c) Publication of Area Median Prices and Loan Limits.--The 
     Secretary of Housing and Urban Development shall publish the 
     median house prices and mortgage principal obligation limits, 
     as revised pursuant to this section, for all areas as soon as 
     practicable, but in no case more than 30 days after the date 
     of the enactment of this Act. With respect to existing areas 
     for which the Secretary has not established area median 
     prices before such date of enactment, the Secretary may rely 
     on existing commercial data in determining area median prices 
     and calculating such revised principal obligation limits.

        TITLE III--TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION

     SEC. 301. FEDERAL-STATE AGREEMENTS.

       (a) In General.--Any State which desires to do so may enter 
     into and participate in an agreement under this title with 
     the Secretary of Labor (in this title referred to as the 
     ``Secretary''). Any State which is a party to an agreement 
     under this title may, upon providing 30 days written notice 
     to the Secretary, terminate such agreement.
       (b) Provisions of Agreement.--Any agreement under 
     subsection (a) shall provide that the State agency of the 
     State will make payments of temporary extended unemployment 
     compensation to individuals who--
       (1) have exhausted all rights to regular compensation under 
     the State law or under Federal law with respect to a benefit 
     year (excluding any benefit year that ended before February 
     1, 2007);
       (2) have no rights to regular compensation or extended 
     compensation with respect to a week under such law or any 
     other State unemployment compensation law or to compensation 
     under any other Federal law; and
       (3) are not receiving compensation with respect to such 
     week under the unemployment compensation law of Canada.
       (c) Exhaustion of Benefits.--For purposes of subsection 
     (b)(1), an individual shall be deemed to have exhausted such 
     individual's rights to regular compensation under a State law 
     when--
       (1) no payments of regular compensation can be made under 
     such law because such individual has received all regular 
     compensation available to such individual based on employment 
     or wages during such individual's base period; or
       (2) such individual's rights to such compensation have been 
     terminated by reason of the expiration of the benefit year 
     with respect to which such rights existed.
       (d) Weekly Benefit Amount, Etc.--For purposes of any 
     agreement under this title--
       (1) the amount of temporary extended unemployment 
     compensation which shall be payable to any individual for any 
     week of total unemployment shall be equal to the amount of 
     the regular compensation (including dependents' allowances) 
     payable to such individual during such individual's benefit 
     year under the State law for a week of total unemployment;
       (2) the terms and conditions of the State law which apply 
     to claims for regular compensation and to the payment thereof 
     shall apply to claims for temporary extended unemployment 
     compensation and the payment thereof, except--
       (A) that an individual shall not be eligible for temporary 
     extended unemployment compensation under this title unless, 
     in the base period with respect to which the individual 
     exhausted all rights to regular compensation under the State 
     law, the individual had 20 weeks of full-time insured 
     employment or the equivalent in insured wages, as determined 
     under the provisions of the State law implementing section 
     202(a)(5) of the Federal-State Extended Unemployment 
     Compensation Act of 1970 (26 U.S.C. 3304 note); and
       (B) where otherwise inconsistent with the provisions of 
     this title or with the regulations or operating instructions 
     of the Secretary promulgated to carry out this title; and
       (3) the maximum amount of temporary extended unemployment 
     compensation payable to any individual for whom a temporary 
     extended unemployment compensation account is established 
     under section 302 shall not exceed the amount established in 
     such account for such individual.
       (e) Election by States.--Notwithstanding any other 
     provision of Federal law (and if State law permits), the 
     Governor of a State that is in an extended benefit period may 
     provide for the payment of temporary extended unemployment 
     compensation in lieu of extended compensation to individuals 
     who otherwise meet the requirements of this section. Such an 
     election shall not require a State to trigger off an extended 
     benefit period.

     SEC. 302. TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION 
                   ACCOUNT.

       (a) In General.--Any agreement under this title shall 
     provide that the State will establish, for each eligible 
     individual who files an application for temporary extended 
     unemployment compensation, a temporary extended unemployment 
     compensation account with respect to such individual's 
     benefit year.
       (b) Amount in Account.--
       (1) In general.--The amount established in an account under 
     subsection (a) shall be equal to the lesser of--
       (A) 50 percent of the total amount of regular compensation 
     (including dependents' allowances) payable to the individual 
     during the individual's benefit year under such law; or
       (B) 13 times the individual's average weekly benefit amount 
     for the benefit year.
       (2) Weekly benefit amount.--For purposes of this 
     subsection, an individual's weekly benefit amount for any 
     week is the amount of regular compensation (including 
     dependents' allowances) under the State law payable to such 
     individual for such week for total unemployment.
       (c) Special Rule.--
       (1) In general.--Notwithstanding any other provision of 
     this section, if, at the time that the individual's account 
     is exhausted, such individual's State is in an extended 
     benefit period (as determined under paragraph (2)), then, 
     such account shall be augmented by an amount equal to the 
     amount originally established in such account (as determined 
     under subsection (b)(1)).
       (2) Extended benefit period.--For purposes of paragraph 
     (1), a State shall be considered to be in an extended benefit 
     period if, at the time of exhaustion (as described in 
     paragraph (1))--
       (A) such a period is then in effect for such State under 
     the Federal-State Extended Unemployment Compensation Act of 
     1970;
       (B) such a period would then be in effect for such State 
     under such Act if section 203(d) of such Act were applied as 
     if it had

[[Page 1371]]

     been amended by striking ``5'' each place it appears and 
     inserting ``4''; or
       (C) such a period would then be in effect for such State 
     under such Act if--
       (i) section 203(f) of such Act was applied to such State 
     (regardless of whether the State by law had provided for such 
     application); and
       (ii) such section 203(f) did not include the requirement 
     under paragraph (1)(A)(ii).

     SEC. 303. PAYMENTS TO STATES HAVING AGREEMENTS FOR THE 
                   PAYMENT OF TEMPORARY EXTENDED UNEMPLOYMENT 
                   COMPENSATION.

       (a) General Rule.--There shall be paid to each State which 
     has entered into an agreement under this title an amount 
     equal to 100 percent of the temporary extended unemployment 
     compensation paid to individuals by the State pursuant to 
     such agreement.
       (b) Treatment of Reimbursable Compensation.--No payment 
     shall be made to any State under this section in respect of 
     any compensation to the extent the State is entitled to 
     reimbursement in respect of such compensation under the 
     provisions of any Federal law other than this title or 
     chapter 85 of title 5, United States Code. A State shall not 
     be entitled to any reimbursement under such chapter 85 in 
     respect of any compensation to the extent the State is 
     entitled to reimbursement under this title in respect of such 
     compensation.
       (c) Determination of Amount.--Sums payable to any State by 
     reason of such State having an agreement under this title 
     shall be payable, either in advance or by way of 
     reimbursement (as may be determined by the Secretary), in 
     such amounts as the Secretary estimates the State will be 
     entitled to receive under this title for each calendar month, 
     reduced or increased, as the case may be, by any amount by 
     which the Secretary finds that the Secretary's estimates for 
     any prior calendar month were greater or less than the 
     amounts which should have been paid to the State. Such 
     estimates may be made on the basis of such statistical, 
     sampling, or other method as may be agreed upon by the 
     Secretary and the State agency of the State involved.

     SEC. 304. FINANCING PROVISIONS.

       (a) In General.--Funds in the extended unemployment 
     compensation account (as established by section 905(a) of the 
     Social Security Act (42 U.S.C. 1105(a))) of the Unemployment 
     Trust Fund (as established by section 904(a) of such Act (42 
     U.S.C. 1104(a))) shall be used for the making of payments to 
     States having agreements entered into under this title.
       (b) Certification.--The Secretary shall from time to time 
     certify to the Secretary of the Treasury for payment to each 
     State the sums payable to such State under this title. The 
     Secretary of the Treasury, prior to audit or settlement by 
     the Government Accountability Office, shall make payments to 
     the State in accordance with such certification, by transfers 
     from the extended unemployment compensation account (as so 
     established) to the account of such State in the Unemployment 
     Trust Fund (as so established).
       (c) Assistance to States.--There are appropriated out of 
     the employment security administration account (as 
     established by section 901(a) of the Social Security Act (42 
     U.S.C. 1101(a))) of the Unemployment Trust Fund, without 
     fiscal year limitation, such funds as may be necessary for 
     purposes of assisting States (as provided in title III of the 
     Social Security Act (42 U.S.C. 501 et seq.)) in meeting the 
     costs of administration of agreements under this title.
       (d) Appropriations for Certain Payments.--There are 
     appropriated from the general fund of the Treasury, without 
     fiscal year limitation, to the extended unemployment 
     compensation account (as so established) of the Unemployment 
     Trust Fund (as so established) such sums as the Secretary 
     estimates to be necessary to make the payments under this 
     section in respect of--
       (1) compensation payable under chapter 85 of title 5, 
     United States Code; and
       (2) compensation payable on the basis of services to which 
     section 3309(a)(1) of the Internal Revenue Code of 1986 
     applies.

     Amounts appropriated pursuant to the preceding sentence shall 
     not be required to be repaid.

     SEC. 305. FRAUD AND OVERPAYMENTS.

       (a) In General.--If an individual knowingly has made, or 
     caused to be made by another, a false statement or 
     representation of a material fact, or knowingly has failed, 
     or caused another to fail, to disclose a material fact, and 
     as a result of such false statement or representation or of 
     such nondisclosure such individual has received an amount of 
     temporary extended unemployment compensation under this title 
     to which the individual was not entitled, such individual--
       (1) shall be ineligible for further temporary extended 
     unemployment compensation under this title in accordance with 
     the provisions of the applicable State unemployment 
     compensation law relating to fraud in connection with a claim 
     for unemployment compensation; and
       (2) shall be subject to prosecution under section 1001 of 
     title 18, United States Code.
       (b) Repayment.--In the case of individuals who have 
     received amounts of temporary extended unemployment 
     compensation under this title to which they were not 
     entitled, the State shall require such individuals to repay 
     the amounts of such temporary extended unemployment 
     compensation to the State agency, except that the State 
     agency may waive such repayment if it determines that--
       (1) the payment of such temporary extended unemployment 
     compensation was without fault on the part of any such 
     individual; and
       (2) such repayment would be contrary to equity and good 
     conscience.
       (c) Recovery by State Agency.--
       (1) In general.--The State agency may recover the amount to 
     be repaid, or any part thereof, by deductions from any 
     temporary extended unemployment compensation payable to such 
     individual under this title or from any unemployment 
     compensation payable to such individual under any State or 
     Federal unemployment compensation law administered by the 
     State agency or under any other State or Federal law 
     administered by the State agency which provides for the 
     payment of any assistance or allowance with respect to any 
     week of unemployment, during the 3-year period after the date 
     such individuals received the payment of the temporary 
     extended unemployment compensation to which they were not 
     entitled, except that no single deduction may exceed 50 
     percent of the weekly benefit amount from which such 
     deduction is made.
       (2) Opportunity for hearing.--No repayment shall be 
     required, and no deduction shall be made, until a 
     determination has been made, notice thereof and an 
     opportunity for a fair hearing has been given to the 
     individual, and the determination has become final.
       (d) Review.--Any determination by a State agency under this 
     section shall be subject to review in the same manner and to 
     the same extent as determinations under the State 
     unemployment compensation law, and only in that manner and to 
     that extent.

     SEC. 306. DEFINITIONS.

       In this title, the terms ``compensation'', ``regular 
     compensation'', ``extended compensation'', ``benefit year'', 
     ``base period'', ``State'', ``State agency'', ``State law'', 
     and ``week'' have the respective meanings given such terms 
     under section 205 of the Federal-State Extended Unemployment 
     Compensation Act of 1970 (26 U.S.C. 3304 note).

     SEC. 307. APPLICABILITY.

       (a) In General.--Except as provided in subsection (b), an 
     agreement entered into under this title shall apply to weeks 
     of unemployment--
       (1) beginning after the date on which such agreement is 
     entered into; and
       (2) ending on or before December 31, 2008.
       (b) Transition for Amount Remaining in Account.--
       (1) In general.--Subject to paragraphs (2) and (3), in the 
     case of an individual who has amounts remaining in an account 
     established under section 302 as of December 31, 2008, 
     temporary extended unemployment compensation shall continue 
     to be payable to such individual from such amounts for any 
     week beginning after such date for which the individual meets 
     the eligibility requirements of this title.
       (2) No augmentation after december 31, 2008.--If the 
     account of an individual is exhausted after December 31, 
     2008, then section 302(c) shall not apply and such account 
     shall not be augmented under such section, regardless of 
     whether such individual's State is in an extended benefit 
     period (as determined under paragraph (2) of such section).
       (3) Limitation.--No compensation shall be payable by reason 
     of paragraph (1) for any week beginning after March 31, 2009.

               TITLE _--LOW-INCOME HOME ENERGY ASSISTANCE

     SEC. __. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

       (a) In General.--In addition to amounts otherwise made 
     available for fiscal year 2008, there are appropriated, out 
     of any money in the Treasury not otherwise appropriated--
       (1) $500,000,000 for fiscal year 2008, for making payments 
     under subsections (a) through (d) of section 2604 of the Low-
     Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623); 
     and
       (2) $500,000,000 for fiscal year 2008, for making 
     allotments under section 2604(a) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8623(a)) that are 
     made in such a manner as to ensure that each State's 
     allotment percentage is the percentage the State would 
     receive of funds allotted under such section 2604(a) if the 
     total amount appropriated for fiscal year 2008 and available 
     to carry out such section 2604(a) had been less than 
     $1,975,000,000.
       (b) Release of Funds.--Funds appropriated under subsection 
     (a)(2), and funds appropriated (but not obligated) prior to 
     the date of enactment of this Act for making payments under 
     section 2604(e) of such Act (42 U.S.C. 8623(e)), shall be 
     released to States not later than 30 days after the date of 
     enactment of this Act.

                     TITLE _--EMERGENCY DESIGNATION

     SEC. 501. EMERGENCY DESIGNATION.

       For purposes of Senate enforcement, all provisions of this 
     Act are designated as emergency requirements and necessary to 
     meet emergency needs pursuant to section 204 of S. Con. Res. 
     21 (110th Congress), the

[[Page 1372]]

     concurrent resolution on the budget for fiscal year 2008.
                                 ______
                                 
  SA 3984. Mr. REID proposed an amendment to amendment SA 3983 proposed 
by Mr. Reid to the bill H.R. 5140, to provide economic stimulus through 
recovery rebates to individuals, incentives for business investment, 
and an increase in conforming and FHA loan limits; as follows:

       At the end of the amendment, add the following:
       This section shall take effect 4 days after enactment.
                                 ______
                                 
  SA 3985. Mr. REID proposed an amendment to the bill H.R. 5140, to 
provide economic stimulus through recovery rebates to individuals, 
incentives for business investment, and an increase in conforming and 
FHA loan limits; as follows:

       At the end insert the following:
       This section shall become effective 3 days after enactment 
     of the bill.
                                 ______
                                 
  SA 3986. Mr. REID submitted an amendment which was ordered to lie on 
the table; as follows:

       On line 2, strike 3 and insert 2.
                                 ______
                                 
  SA 3987. Mr. REID proposed an amendment to amendment SA 3986 proposed 
by Mr. Reid to the bill; as follows:

       On line 1, strike 2 and insert 1.
                                 ______
                                 
  SA 3988. Mr. REID (for Mr. Lieberman) proposed an amendment to the 
bill S. 2457, to provide for extensions of leases of certain land by 
Mashantucket Pequot (Western) Tribe; as follows:

       At the end, add the following:
       (c) Prohibition on Gaming Activities.--No entity may 
     conduct any gaming activity (within the meaning of section 4 
     of the Indian Gaming Regulatory Act (25 U.S.C. 2703)) 
     pursuant to a claim of inherent authority or any Federal law 
     (including the Indian Gaming Regulatory Act (25 U.S.C. 2701 
     et seq.) and any regulations promulgated by the Secretary of 
     the Interior or the National Indian Gaming Commission 
     pursuant to that Act) on any land that is leased with an 
     option to renew the lease in accordance with this section.

                          ____________________