[House Report 111-426]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-426

======================================================================

 
 PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE BILL (H.R. 
    2847) MAKING APPROPRIATIONS FOR THE DEPARTMENTS OF COMMERCE AND 
 JUSTICE, AND SCIENCE, AND RELATED AGENCIES FOR THE FISCAL YEAR ENDING 
               SEPTEMBER 30, 2010, AND FOR OTHER PURPOSES

                                _______
                                

    March 4, 2010.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

    Ms. Matsui, from the Committee on Rules, submitted the following
                              R E P O R T

                      [To accompany H. Res. 1137]

    The Committee on Rules, having had under consideration 
House Resolution 1137, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of the Senate 
amendment to H.R. 2847, the Hiring Incentives to Restore 
Employment Act (originally making appropriations for the 
Departments of Commerce and Justice, and Science, and Related 
Agencies for the fiscal year ending September 30, 2010, and for 
other purposes). The resolution makes in order a motion offered 
by the chair of the Committee on Ways and Means that the House 
concur in the Senate amendment to the House amendment to the 
Senate amendment with the amendment printed in this report. The 
resolution waives all points of order against consideration of 
the motion except those arising under clause 10 of rule XXI. 
The resolution provides that the Senate amendment and the 
motion shall be considered as read. The resolution provides one 
hour of debate on the motion equally divided and controlled by 
the chair and ranking minority member of the Committee on Ways 
and Means.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the motion (except those arising under clause 10 of rule XXI) 
includes a waiver of clause 6 of rule XVI (prohibiting 
amendments in the third degree).

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 325

    Date: March 4, 2010.
    Measure: Senate amendment to H.R. 2847.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order an amendment, if 
offered by the Republican Leader or his designee.
    Results: Defeated 3-7.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Arcuri--Nay; Pingree--Nay; Dreier--
Yea; Diaz-Balart, L.--Yea; Foxx--Yea; Slaughter--Nay.

                SUMMARY OF HOUSE AMENDMENT MADE IN ORDER

    The amendment makes technical corrections to improve the 
effectiveness and administrability of incentives for hiring and 
retaining new employees, and extends these benefits to 
businesses in U.S. territories and possessions; restores the 
full value of the direct payment option for certain tax credit 
bond programs; delays the effective date of the worldwide 
allocation of interest provision for an additional year 
(through 2020) to ensure that the cost of the bill is fully 
offset; and provides for continuation and enforcement of 
disadvantaged, minority, and women-owned business enterprise 
contracting requirements for surface transportation projects.

                 TEXT OF HOUSE AMENDMENT MADE IN ORDER

  Concur in the Senate amendment (hereinafter referred to as 
the ``pending Senate amendment'') to the House amendment to the 
Senate amendment to H.R. 2847 with the following amendment:

          (1) In section 101 of the matter proposed to be 
        inserted by the pending Senate amendment--
                  (A) In section 3111(d) of the Internal 
                Revenue Code of 1986, as proposed to be added 
                by subsection (a) of such section 101, add at 
                the end the following new paragraph:

          ``(5) Special rule for first calendar quarter of 
        2010.--
                  ``(A) Nonapplication of exemption during 
                first quarter.--Paragraph (1) shall not apply 
                with respect to wages paid during the first 
                calendar quarter of 2010.
                  ``(B) Crediting of first quarter exemption 
                during second quarter.--The amount by which the 
                tax imposed under subsection (a) would (but for 
                subparagraph (A)) have been reduced with 
                respect to wages paid by a qualified employer 
                during the first calendar quarter of 2010 shall 
                be treated as a payment against the tax imposed 
                under subsection (a) with respect to the 
                qualified employer for the second calendar 
                quarter of 2010 which is made on the date that 
                such tax is due.''.
                  (B) Strike subsection (d) of such section 101 
                and insert the following new subsections:

  (d) Application To Railroad Retirement Taxes.--
          (1) In general.--Section 3221 of the Internal Revenue 
        Code of 1986 is amended by redesignating subsection (c) 
        as subsection (d) and by inserting after subsection (b) 
        the following new subsection:
  ``(c) Special Rate for Certain Individuals Hired in 2010.--
          ``(1) In general.--In the case of compensation paid 
        by a qualified employer during the period beginning on 
        the day after the date of the enactment of this 
        subsection and ending on December 31, 2010, with 
        respect to having a qualified individual in the 
        employer's employ for services rendered to such 
        qualified employer, the applicable percentage under 
        subsection (a) shall be equal to the rate of tax in 
        effect under section 3111(b) for the calendar year.
          ``(2) Qualified employer.--The term `qualified 
        employer' means any employer other than the United 
        States, any State, or any political subdivision 
        thereof, or any instrumentality of the foregoing.
          ``(3) Qualified individual.--For purposes of this 
        subsection, the term `qualified individual' means any 
        individual who--
                  ``(A) begins employment with a qualified 
                employer after February 3, 2010, and before 
                January 1, 2011,
                  ``(B) certifies by signed affidavit, under 
                penalties of perjury, that such individual has 
                not been employed for more than 40 hours during 
                the 60-day period ending on the date such 
                individual begins such employment,
                  ``(C) is not employed by the qualified 
                employer to replace another employee of such 
                employer unless such other employee separated 
                from employment voluntarily or for cause, and
                  ``(D) is not an individual described in 
                section 51(i)(1) (applied by substituting 
                `qualified employer' for `taxpayer' each place 
                it appears).
          ``(4) Election.--A qualified employer may elect to 
        have this subsection not apply. Such election shall be 
        made in such manner as the Secretary may require.
          ``(5) Special rule for first calendar quarter of 
        2010.--
                  ``(A) Nonapplication of exemption during 
                first quarter.--Paragraph (1) shall not apply 
                with respect to compensation paid during the 
                first calendar quarter of 2010.
                  ``(B) Crediting of first quarter exemption 
                during second quarter.--The amount by which the 
                tax imposed under subsection (a) would (but for 
                subparagraph (A)) have been reduced with 
                respect to compensation paid by a qualified 
                employer during the first calendar quarter of 
                2010 shall be treated as a payment against the 
                tax imposed under subsection (a) with respect 
                to the qualified employer for the second 
                calendar quarter of 2010 which is made on the 
                date that such tax is due.''.
          (2) Transfers to social security equivalent benefit 
        account.--There are hereby appropriated to the Social 
        Security Equivalent Benefit Account established under 
        section 15A(a) of the Railroad Retirement Act of 1974 
        (45 U.S.C. 231n-1(a)) amounts equal to the reduction in 
        revenues to the Treasury by reason of the amendments 
        made by paragraph (1). Amounts appropriated by the 
        preceding sentence shall be transferred from the 
        general fund at such times and in such manner as to 
        replicate to the extent possible the transfers which 
        would have occurred to such Account had such amendments 
        not been enacted.
  (e) Effective Dates.--
          (1) In general.--Except as provided in paragraph (2), 
        the amendments made by this subsection shall apply to 
        wages paid after the date of the enactment of this Act.
          (2) Railroad retirement taxes.--The amendments made 
        by subsection (d) shall apply to compensation paid 
        after the date of the enactment of this Act.

          (2) In section 102 of the matter proposed to be 
        inserted by the pending Senate amendment--
                  (A) Strike subsection (a) of such section 102 
                and insert the following new subsection:

  (a) In General.--In the case of any taxable year ending after 
the date of the enactment of this Act, the current year 
business credit determined under section 38(b) of the Internal 
Revenue Code of 1986 for such taxable year shall be increased, 
with respect to each retained worker with respect to which 
subsection (b)(2) is first satisfied during such taxable year, 
by the lesser of--
          (1) $1,000, or
          (2) 6.2 percent of the wages (as defined in section 
        3401(a)) paid by the taxpayer to such retained worker 
        during the 52 consecutive week period referred to in 
        subsection (b)(2).

                  (B) In subsection (b) of such section 102, 
                insert ``or section 3221(c)(3)'' after 
                ``section 3111(d)(3)''.
                  (C) In subsection (b)(3) of such section 102, 
                insert ``(as defined in section 3401(a))'' 
                after ``wages'' the first place it appears 
                therein.
                  (D) At the end of such section 102, add the 
                following new subsection:

  (d) Treatment of Possessions.--
          (1) Payments to possessions.--
                  (A) Mirror code possessions.--The Secretary 
                of the Treasury shall pay to each possession of 
                the United States with a mirror code tax system 
                amounts equal to the loss to that possession by 
                reason of the application of this section 
                (other than this subsection). Such amounts 
                shall be determined by the Secretary of the 
                Treasury based on information provided by the 
                government of the respective possession.
                  (B) Other possessions.--The Secretary of the 
                Treasury shall pay to each possession of the 
                United States which does not have a mirror code 
                tax system amounts estimated by the Secretary 
                of the Treasury as being equal to the aggregate 
                benefits that would have been provided to 
                residents of such possession by reason of the 
                application of this section (other than this 
                subsection) if a mirror code tax system had 
                been in effect in such possession. The 
                preceding sentence shall not apply with respect 
                to any possession of the United States unless 
                such possession has a plan, which has been 
                approved by the Secretary of the Treasury, 
                under which such possession will promptly 
                distribute such payments to the residents of 
                such possession.
          (2) Coordination with credit allowed against united 
        states income taxes.--No increase in the credit 
        determined under section 38(b) of the Internal Revenue 
        Code of 1986 against United States income taxes for any 
        taxable year determined under subsection (a) shall be 
        taken into account with respect to any person--
                  (A) to whom a credit is allowed against taxes 
                imposed by the possession by reason of this 
                section for such taxable year, or
                  (B) who is eligible for a payment under a 
                plan described in paragraph (1)(B) with respect 
                to such taxable year.
          (3) Definitions and special rules.--
                  (A) Possession of the united states.--For 
                purposes of this subsection, the term 
                ``possession of the United States'' includes 
                the Commonwealth of Puerto Rico and the 
                Commonwealth of the Northern Mariana Islands.
                  (B) Mirror code tax system.--For purposes of 
                this subsection, the term ``mirror code tax 
                system'' means, with respect to any possession 
                of the United States, the income tax system of 
                such possession if the income tax liability of 
                the residents of such possession under such 
                system is determined by reference to the income 
                tax laws of the United States as if such 
                possession were the United States.
                  (C) Treatment of payments.--For purposes of 
                section 1324(b)(2) of title 31, United States 
                Code, rules similar to the rules of section 
                1001(b)(3)(C) of the American Recovery and 
                Reinvestment Tax Act of 2009 shall apply.

          (3) In section 301 of the matter proposed to be 
        inserted by the pending Senate amendment--

                  (A) In section 6431(f)(1) of the Internal 
                Revenue Code of 1986, as proposed to be added 
                by subsection (a) of such section 301, strike 
                subparagraph (C) and insert the following new 
                subparagraph:

                  ``(C) the amount of the payment determined 
                under subsection (b) with respect to any 
                interest payment due under such bond shall be 
                equal to the lesser of--
                          ``(i) the amount of interest payable 
                        under such bond on such date, or
                          ``(ii) the amount of interest which 
                        would have been payable under such bond 
                        on such date if such interest were 
                        determined at the applicable credit 
                        rate determined under section 
                        54A(b)(3),''.

                  (B) In section 6431(f) of the Internal 
                Revenue Code of 1986, as proposed to be added 
                by subsection (a) of such section 301, strike 
                paragraph (2) and insert the following new 
                paragraphs:

          ``(2) Special rule for new clean renewable energy 
        bonds and qualified energy conservation bonds.--In the 
        case of any specified tax credit bond described in 
        clause (i) or (ii) of paragraph (3)(A), the amount 
        determined under paragraph (1)(C)(ii) shall be 70 
        percent of the amount so determined without regard to 
        this paragraph and sections 54C(b) and 54D(b).
          ``(3) Specified tax credit bond.--For purposes of 
        this subsection, the term ``specified tax credit bond'' 
        means any qualified tax credit bond (as defined in 
        section 54A(d)) if--
                  ``(A) such bond is--
                          ``(i) a new clean renewable energy 
                        bond (as defined in section 54C),
                          ``(ii) a qualified energy 
                        conservation bond (as defined in 
                        section 54D),
                          ``(iii) a qualified zone academy bond 
                        (as defined in section 54E), or
                          ``(iv) a qualified school 
                        construction bond (as defined in 
                        section 54F), and
                  ``(B) the issuer of such bond makes an 
                irrevocable election to have this subsection 
                apply.''.

          (4) At the end title IV of the matter proposed to be 
        inserted by the pending Senate amendment, add the 
        following:

             Subtitle E--Disadvantaged Business Enterprises

SEC. 451. DISADVANTAGED BUSINESS ENTERPRISES.

  (a) Definitions.--In this section, the following definitions 
apply:
          (1) Small business concern.-- The term ``small 
        business concern'' has the meaning that term has under 
        section 3 of the Small Business Act (15 U.S.C. 632), 
        except that the term shall not include any concern or 
        group of concerns controlled by the same socially and 
        economically disadvantaged individual or individuals 
        which has average annual gross receipts over the 
        preceding 3 fiscal years in excess of $22,410,000, as 
        adjusted annually by the Secretary of Transportation 
        for inflation.
          (2) Socially and economically disadvantaged 
        individuals.--The term ``socially and economically 
        disadvantaged individuals'' has the meaning that term 
        has under section 8(d) of the Small Business Act (15 
        U.S.C. 637(d)) and relevant subcontracting regulations 
        issued pursuant to that Act, except that women shall be 
        presumed to be socially and economically disadvantaged 
        individuals for purposes of this section.
  (b) General Rule.--Except to the extent that the Secretary of 
Transportation determines otherwise, not less than 10 percent 
of the amounts made available for any program under titles I, 
III, and V of SAFETEA-LU (Public Law 109-59), subtitles A and C 
of this title, and section 403 of title 23, United States Code, 
shall be expended through small business concerns owned and 
controlled by socially and economically disadvantaged 
individuals.
  (c) Annual Listing of Disadvantaged Business Enterprises.--
Each State shall annually--
          (1) survey and compile a list of the small business 
        concerns referred to in subsection (a) and the location 
        of the concerns in the State; and
          (2) notify the Secretary of Transportation, in 
        writing, of the percentage of the concerns that are 
        controlled by women, by socially and economically 
        disadvantaged individuals (other than women), and by 
        individuals who are women and are otherwise socially 
        and economically disadvantaged individuals.
  (d) Uniform Certification.--The Secretary of Transportation 
shall establish minimum uniform criteria for State governments 
to use in certifying whether a concern qualifies for purposes 
of this section. The minimum uniform criteria shall include, 
but not be limited to, on-site visits, personal interviews, 
licenses, analysis of stock ownership, listing of equipment, 
analysis of bonding capacity, listing of work completed, resume 
of principal owners, financial capacity, and type of work 
preferred.
  (e) Compliance With Court Orders.--Nothing in this section 
limits the eligibility of an entity or person to receive funds 
made available under titles I, III, and V of SAFETEA-LU (Public 
Law 109-59), subtitles A and C of this title, and section 403 
of title 23, United States Code, if the entity or person is 
prevented, in whole or in part, from complying with subsection 
(b) because a Federal court issues a final order in which the 
court finds that the requirement of subsection (b), or the 
program established under subsection (b), is unconstitutional.

          (5) In section 551(a) of the matter proposed to be 
        inserted by the pending Senate amendment, strike 
        ``December 31, 2019'' and insert ``December 31, 2020''.
          (6) At the end of title V of the matter proposed to 
        be inserted by the pending Senate amendment, add the 
        following new subtitle:

                    Subtitle C--Budgetary Provisions

SEC. 561. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

  Notwithstanding section 6655 of the Internal Revenue Code of 
1986, in the case of a corporation with assets of not less than 
$1,000,000,000 (determined as of the end of the preceding 
taxable year)--
          (1) the percentage under paragraph (1) of section 
        202(b) of the Corporate Estimated Tax Shift Act of 2009 
        in effect on the date of the enactment of this Act is 
        increased by 23 percentage points,
          (2) the amount of any required installment of 
        corporate estimated tax which is otherwise due in July, 
        August, or September of 2015 shall be 121.5 percent of 
        such amount,
          (3) the amount of any required installment of 
        corporate estimated tax which is otherwise due in July, 
        August, or September of 2019 shall be 106.5 percent of 
        such amount, and
          (4) the amount of the next required installment after 
        an installment referred to in paragraph (2) or (3) 
        shall be appropriately reduced to reflect the amount of 
        the increase by reason of such paragraph.

SEC. 562. PAYGO COMPLIANCE.

  The budgetary effects of this Act, for purposes of complying 
with the Statutory Pay-As-You-Go-Act of 2010, shall be 
determined by reference to the latest statement titled 
``Budgetary Effects of PAYGO Legislation'' for this Act, 
jointly submitted for printing in the Congressional Record by 
the Chairman of the House and Senate Budget Committees, 
provided that such statement has been submitted prior to the 
vote on passage in the House acting first on this conference 
report or amendments between the Houses.

                                  
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