    [United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 111-312
    111th Congress

    An Act

    To amend the Internal Revenue Code of 1986 to extend the funding and
    expenditure authority of the Airport and Airway Trust Fund, to amend
    title 49, United States Code, to extend authorizations for the airport
    improvement program, and for other purposes. <>

    Be it enacted by the Senate and House of Representatives of the
    United States of America in Congress assembled, <>
    SECTION 1. SHORT TITLE; ETC.

    (a) <>  Short Title.--This Act may be cited as
    the ``Tax Relief, Unemployment Insurance Reauthorization, and Job
    Creation Act of 2010''.

    (b) Amendment of 1986 Code.--Except as otherwise expressly provided,
    whenever in this Act an amendment or repeal is expressed in terms of an
    amendment to, or repeal of, a section or other provision, the reference
    shall be considered to be made to a section or other provision of the
    Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as
    follows:

    Sec. 1. Short title; etc.

    TITLE I--TEMPORARY EXTENSION OF TAX RELIEF

    Sec. 101. Temporary extension of 2001 tax relief.
    Sec. 102. Temporary extension of 2003 tax relief.
    Sec. 103. Temporary extension of 2009 tax relief.

    TITLE II--TEMPORARY EXTENSION OF INDIVIDUAL AMT RELIEF

    Sec. 201. Temporary extension of increased alternative minimum tax
    exemption amount.
    Sec. 202. Temporary extension of alternative minimum tax relief for
    nonrefundable personal credits.

    TITLE III--TEMPORARY ESTATE TAX RELIEF

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

    TITLE IV--TEMPORARY EXTENSION OF INVESTMENT INCENTIVES

    Sec. 401. Extension of bonus depreciation; temporary 100 percent
    expensing for certain business assets.
    Sec. 402. Temporary extension of increased small business expensing.

    TITLE V--TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE AND RELATED
    MATTERS

    Sec. 501. Temporary extension of unemployment insurance provisions.
    Sec. 502. Temporary modification of indicators under the extended
    benefit program.
    Sec. 503. Technical amendment relating to collection of unemployment
    compensation debts.

    [[Page 3297]]

    Sec. 504. Technical correction relating to repeal of continued dumping
    and subsidy offset.
    Sec. 505. Additional extended unemployment benefits under the Railroad
    Unemployment Insurance Act.

    TITLE VI--TEMPORARY EMPLOYEE PAYROLL TAX CUT

    Sec. 601. Temporary employee payroll tax cut.

    TITLE VII--TEMPORARY EXTENSION OF CERTAIN EXPIRING PROVISIONS

    Subtitle A--Energy

    Sec. 701. Incentives for biodiesel and renewable diesel.
    Sec. 702. Credit for refined coal facilities.
    Sec. 703. New energy efficient home credit.
    Sec. 704. Excise tax credits and outlay payments for alternative fuel
    and alternative fuel mixtures.
    Sec. 705. Special rule for sales or dispositions to implement FERC or
    State electric restructuring policy for qualified electric
    utilities.
    Sec. 706. Suspension of limitation on percentage depletion for oil and
    gas from marginal wells.
    Sec. 707. Extension of grants for specified energy property in lieu of
    tax credits.
    Sec. 708. Extension of provisions related to alcohol used as fuel.
    Sec. 709. Energy efficient appliance credit.
    Sec. 710. Credit for nonbusiness energy property.
    Sec. 711. Alternative fuel vehicle refueling property.

    Subtitle B--Individual Tax Relief

    Sec. 721. Deduction for certain expenses of elementary and secondary
    school teachers.
    Sec. 722. Deduction of State and local sales taxes.
    Sec. 723. Contributions of capital gain real property made for
    conservation purposes.
    Sec. 724. Above-the-line deduction for qualified tuition and related
    expenses.
    Sec. 725. Tax-free distributions from individual retirement plans for
    charitable purposes.
    Sec. 726. Look-thru of certain regulated investment company stock in
    determining gross estate of nonresidents.
    Sec. 727. Parity for exclusion from income for employer-provided mass
    transit and parking benefits.
    Sec. 728. Refunds disregarded in the administration of Federal programs
    and federally assisted programs.

    Subtitle C--Business Tax Relief

    Sec. 731. Research credit.
    Sec. 732. Indian employment tax credit.
    Sec. 733. New markets tax credit.
    Sec. 734. Railroad track maintenance credit.
    Sec. 735. Mine rescue team training credit.
    Sec. 736. Employer wage credit for employees who are active duty members
    of the uniformed services.
    Sec. 737. 15-year straight-line cost recovery for qualified leasehold
    improvements, qualified restaurant buildings and
    improvements, and qualified retail improvements.
    Sec. 738. 7-year recovery period for motorsports entertainment
    complexes.
    Sec. 739. Accelerated depreciation for business property on an Indian
    reservation.
    Sec. 740. Enhanced charitable deduction for contributions of food
    inventory.
    Sec. 741. Enhanced charitable deduction for contributions of book
    inventories to public schools.
    Sec. 742. Enhanced charitable deduction for corporate contributions of
    computer inventory for educational purposes.
    Sec. 743. Election to expense mine safety equipment.
    Sec. 744. Special expensing rules for certain film and television
    productions.
    Sec. 745. Expensing of environmental remediation costs.
    Sec. 746. Deduction allowable with respect to income attributable to
    domestic production activities in Puerto Rico.
    Sec. 747. Modification of tax treatment of certain payments to
    controlling exempt organizations.
    Sec. 748. Treatment of certain dividends of regulated investment
    companies.
    Sec. 749. RIC qualified investment entity treatment under FIRPTA.
    Sec. 750. Exceptions for active financing income.
    Sec. 751. Look-thru treatment of payments between related controlled
    foreign corporations under foreign personal holding company
    rules.

    [[Page 3298]]

    Sec. 752. Basis adjustment to stock of S corps making charitable
    contributions of property.
    Sec. 753. Empowerment zone tax incentives.
    Sec. 754. Tax incentives for investment in the District of Columbia.
    Sec. 755. Temporary increase in limit on cover over of rum excise taxes
    to Puerto Rico and the Virgin Islands.
    Sec. 756. American Samoa economic development credit.
    Sec. 757. Work opportunity credit.
    Sec. 758. Qualified zone academy bonds.
    Sec. 759. Mortgage insurance premiums.
    Sec. 760. Temporary exclusion of 100 percent of gain on certain small
    business stock.

    Subtitle D--Temporary Disaster Relief Provisions

    subpart a--new york liberty zone

    Sec. 761. Tax-exempt bond financing.

    subpart b--go zone

    Sec. 762. Increase in rehabilitation credit.
    Sec. 763. Low-income housing credit rules for buildings in GO zones.
    Sec. 764. Tax-exempt bond financing.
    Sec. 765. Bonus depreciation deduction applicable to the GO Zone.

    TITLE VIII--BUDGETARY PROVISIONS

    Sec. 801. Determination of budgetary effects.
    Sec. 802. Emergency designations.

    TITLE I--TEMPORARY EXTENSION OF TAX RELIEF

    SEC. 101. TEMPORARY EXTENSION OF 2001 TAX RELIEF.

    (a) Temporary Extension.--
    (1) In general.--Section 901 of the Economic Growth and Tax
    Relief Reconciliation Act of 2001 <>  is
    amended by striking ``December 31, 2010'' both places it appears
    and inserting ``December 31, 2012''.
    (2) <>  Effective date.--The amendment
    made by this subsection shall take effect as if included in the
    enactment of the Economic Growth and Tax Relief Reconciliation
    Act of 2001.

    (b) Separate Sunset for Expansion of Adoption Benefits Under the
    Patient Protection and Affordable Care Act.--
    (1) In general.--Subsection (c) of section 10909 of the
    Patient Protection and Affordable Care Act <>  is amended to read as follows:

    ``(c) Sunset Provision.--Each provision of law amended by this
    section is amended to read as such provision would read if this section
    had never been enacted. <>  The amendments made by
    the preceding sentence shall apply to taxable years beginning after
    December 31, 2011.''.
    (2) Conforming amendment.--Subsection (d) of section 10909
    of such Act is <>  amended by striking
    ``The amendments'' and inserting ``Except as provided in
    subsection (c), the amendments''.
    SEC. 102. TEMPORARY EXTENSION OF 2003 TAX RELIEF.

    (a) In General.--Section 303 of the Jobs and Growth Tax Relief
    Reconciliation Act of 2003 <>  is amended by
    striking ``December 31, 2010'' and inserting ``December 31, 2012''.

    [[Page 3299]]

    (b) <>  Effective Date.--The amendment made by
    this section shall take effect as if included in the enactment of the
    Jobs and Growth Tax Relief Reconciliation Act of 2003.
    SEC. 103. TEMPORARY EXTENSION OF 2009 TAX RELIEF.

    (a) American Opportunity Tax Credit.--
    (1) In general.--Section 25A(i) <>  is
    amended by striking ``or 2010'' and inserting ``, 2010, 2011, or
    2012''.
    (2) Treatment of possessions.--Section 1004(c)(1) of the
    American Recovery and Reinvestment Tax Act of 2009 <>  is amended by striking ``and 2010'' each place
    it appears and inserting ``, 2010, 2011, and 2012''.

    (b) Child Tax Credit.--Section 24(d)(4) is amended--
    (1) by striking ``2009 and 2010'' in the heading and
    inserting ``2009, 2010, 2011, and 2012'', and
    (2) by striking ``or 2010'' and inserting ``, 2010, 2011, or
    2012''.

    (c) Earned Income Tax Credit.--Section 32(b)(3) is amended--
    (1) by striking ``2009 and 2010'' in the heading and
    inserting ``2009, 2010, 2011, and 2012'', and
    (2) by striking ``or 2010'' and inserting ``, 2010, 2011, or
    2012''.

    (d) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2010.

    TITLE II--TEMPORARY EXTENSION OF INDIVIDUAL AMT RELIEF

    SEC. 201. TEMPORARY EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
    EXEMPTION AMOUNT.

    (a) In General.--Paragraph (1) of section 55(d) is amended--
    (1) by striking ``$70,950'' and all that follows through
    ``2009'' in subparagraph (A) and inserting ``$72,450 in the case
    of taxable years beginning in 2010 and $74,450 in the case of
    taxable years beginning in 2011'', and
    (2) by striking ``$46,700'' and all that follows through
    ``2009'' in subparagraph (B) and inserting ``$47,450 in the case
    of taxable years beginning in 2010 and $48,450 in the case of
    taxable years beginning in 2011''.

    (b) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2009.

    (c) <>  Repeal of EGTRRA Sunset.--Title IX of
    the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating
    to sunset of provisions of such Act) shall not apply to title VII of
    such Act (relating to alternative minimum tax).
    SEC. 202. TEMPORARY EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF
    FOR NONREFUNDABLE PERSONAL CREDITS.

    (a) In General.--Paragraph (2) of section 26(a) is amended--
    (1) by striking ``or 2009'' and inserting ``2009, 2010, or
    2011'', and
    (2) by striking ``2009'' in the heading thereof and
    inserting ``2011''.

    (b) <>   Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2009.

    [[Page 3300]]

    TITLE III--TEMPORARY ESTATE TAX RELIEF

    SEC. 301. REINSTATEMENT OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.

    (a) In General.--Each provision of law amended by subtitle A or E of
    title V of the Economic Growth and Tax Relief Reconciliation Act of
    2001 <>  is amended to read as such
    provision would read if such subtitle had never been enacted.

    (b) <>  Conforming
    Amendment.--On and after January 1, 2011, paragraph (1) of section
    2505(a) of the Internal Revenue Code of 1986 <>  is
    amended to read as such paragraph would read if section 521(b)(2) of the
    Economic Growth and Tax Relief Reconciliation Act of 2001 had never been
    enacted.

    (c) Special Election With Respect to Estates of Decedents Dying in
    2010. <> --Notwithstanding
    subsection (a), in the case of an estate of a decedent dying after
    December 31, 2009, and before January 1, 2011, the executor (within the
    meaning of section 2203 of the Internal Revenue Code of 1986) may elect
    to apply such Code as though the amendments made by subsection (a) do
    not apply with respect to chapter 11 of such Code and with respect to
    property acquired or passing from such decedent (within the meaning of
    section 1014(b) of such Code).  Such election shall be made at such time
    and in such manner as the Secretary of the Treasury or the Secretary's
    delegate shall provide. Such an election once made shall be revocable
    only with the consent of the Secretary of the Treasury or the
    Secretary's delegate. For purposes of section 2652(a)(1) of such Code,
    the determination of whether any property is subject to the tax imposed
    by such chapter 11 shall be made without regard to any election made
    under this subsection.

    (d) Extension of Time for Performing Certain Acts.--
    (1) <>  Estate tax.--In the case of
    the estate of a decedent dying after December 31, 2009, and
    before the date of the enactment of this Act, the due date for--
    (A) filing any return under section 6018 of the
    Internal Revenue Code of 1986 (including any election
    required to be made on such a return) as such section is
    in effect after the date of the enactment of this Act
    without regard to any election under subsection (c),
    (B) making any payment of tax under chapter 11 of
    such Code, and
    (C) making any disclaimer described in section
    2518(b) of such Code of an interest in property passing
    by reason of the death of such decedent,
    shall not be earlier than the date which is 9 months after the
    date of the enactment of this Act.
    (2) <>  Generation-
    skipping tax.--In the case of any generation-skipping transfer
    made after December 31, 2009, and before the date of the
    enactment of this Act, the due date for filing any return under
    section 2662 of the Internal Revenue Code of 1986 (including any
    election required to be made on such a return) shall not be
    earlier than the date which is 9 months after the date of the
    enactment of this Act.

    [[Page 3301]]

    (e) <>  Effective Date.--Except as otherwise
    provided in this section, the amendments made by this section shall
    apply to estates of decedents dying, and transfers made, after December
    31, 2009.
    SEC. 302. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-SKIPPING
    TRANSFER TAXES.

    (a) Modifications to Estate Tax.--
    (1) $5,000,000 applicable exclusion amount.--Subsection (c)
    of section 2010 <>  is amended to read as
    follows:

    ``(c) Applicable Credit Amount.--
    ``(1) In general.--For purposes of this section, the
    applicable credit amount is the amount of the tentative tax
    which would be determined under section 2001(c) if the amount
    with respect to which such tentative tax is to be computed were
    equal to the applicable exclusion amount.
    ``(2) Applicable exclusion amount.--
    ``(A) In general.--For purposes of this subsection,
    the applicable exclusion amount is $5,000,000.
    ``(B) Inflation adjustment.--In the case of any
    decedent dying in a calendar year after 2011, the dollar
    amount in subparagraph (A) shall be increased by an
    amount equal to--
    ``(i) such dollar amount, multiplied by
    ``(ii) the cost-of-living adjustment
    determined under section 1(f)(3) for such calendar
    year by substituting `calendar year 2010' for
    `calendar year 1992' in subparagraph (B) thereof.
    If any amount as adjusted under the preceding sentence
    is not a multiple of $10,000, such amount shall be
    rounded to the nearest multiple of $10,000.''.
    (2) Maximum estate tax rate equal to 35 percent.--Subsection
    (c) of section 2001 is amended--
    (A) by striking ``Over $500,000'' and all that
    follows in the table contained in paragraph (1) and
    inserting the following:

    ``Over $500,000..............................  $155,800, plus 35 percent of the excess of such amount over
    $500,000.'',

    (B) by striking ``(1) In general.--'', and
    (C) by striking paragraph (2).

    (b) Modifications to Gift Tax.--
    (1) Restoration of unified credit against gift tax.--
    (A) In general.--Paragraph (1) of section 2505(a),
    after the application of section 301(b), is amended by
    striking ``(determined as if the applicable exclusion
    amount were $1,000,000)''.
    (B) <>  Effective date.--
    The amendment made by this paragraph shall apply to
    gifts made after December 31, 2010.
    (2) <>
    Modification of gift tax rate.--On and after January 1, 2011,
    subsection (a) of section 2502 is amended to read as such
    subsection would read if section 511(d) of the Economic Growth
    and Tax Relief Reconciliation Act of 2001 had never been
    enacted.

    [[Page 3302]]

    (c) <>  Modification of
    Generation-skipping Transfer Tax.--In the case of any generation-
    skipping transfer made after December 31, 2009, and before January 1,
    2011, the applicable rate determined under section 2641(a) of the
    Internal Revenue Code of 1986 shall be zero.

    (d) Modifications of Estate and Gift Taxes to Reflect Differences in
    Credit Resulting From Different Tax Rates.--
    (1) Estate tax.--
    (A) In general.--Section 2001(b)(2) <>  is amended by striking ``if the provisions of
    subsection (c) (as in effect at the decedent's death)''
    and inserting ``if the modifications described in
    subsection (g)''.
    (B) Modifications.--Section 2001 is amended by
    adding at the end the following new subsection:

    ``(g) Modifications to Gift Tax Payable to Reflect Different Tax
    Rates. <> --For purposes of applying subsection
    (b)(2) with respect to 1 or more gifts, the rates of tax under
    subsection (c) in effect at the decedent's death shall, in lieu of the
    rates of tax in effect at the time of such gifts, be used both to
    compute--
    ``(1) the tax imposed by chapter 12 with respect to such
    gifts, and
    ``(2) the credit allowed against such tax under section
    2505, including in computing--
    ``(A) the applicable credit amount under section
    2505(a)(1), and
    ``(B) the sum of the amounts allowed as a credit for
    all preceding periods under section 2505(a)(2).''.
    (2) Gift tax.--Section 2505(a) is amended by adding at the
    end the following new flush sentence:

    ``For <>  purposes of applying paragraph (2) for
    any calendar year, the rates of tax in effect under section 2502(a)(2)
    for such calendar year shall, in lieu of the rates of tax in effect for
    preceding calendar periods, be used in determining the amounts allowable
    as a credit under this section for all preceding calendar periods.''.

    (e) Conforming Amendment.--Section 2511 is amended by striking
    subsection (c).
    (f) <>  Effective Date.--Except as
    otherwise provided in this subsection, the amendments made by this
    section shall apply to estates of decedents dying, generation-skipping
    transfers, and gifts made, after December 31, 2009.
    SEC. 303. APPLICABLE EXCLUSION AMOUNT INCREASED BY UNUSED
    EXCLUSION AMOUNT OF DECEASED SPOUSE.

    (a) In General.--Section 2010(c), as amended by section 302(a), is
    amended by striking paragraph (2) and inserting the following new
    paragraphs:
    ``(2) Applicable exclusion amount.--For purposes of this
    subsection, the applicable exclusion amount is the sum of--
    ``(A) the basic exclusion amount, and
    ``(B) in the case of a surviving spouse, the
    deceased spousal unused exclusion amount.
    ``(3) Basic exclusion amount.--
    ``(A) In general.--For purposes of this subsection,
    the basic exclusion amount is $5,000,000.
    ``(B) Inflation adjustment.--In the case of any
    decedent dying in a calendar year after 2011, the dollar

    [[Page 3303]]

    amount in subparagraph (A) shall be increased by an
    amount equal to--
    ``(i) such dollar amount, multiplied by
    ``(ii) the cost-of-living adjustment
    determined under section 1(f)(3) for such calendar
    year by substituting `calendar year 2010' for
    `calendar year 1992' in subparagraph (B) thereof.
    If any amount as adjusted under the preceding sentence
    is not a multiple of $10,000, such amount shall be
    rounded to the nearest multiple of $10,000.
    ``(4) Deceased spousal unused exclusion amount.--For
    purposes of this subsection, with respect to a surviving spouse
    of a deceased spouse dying after December 31, 2010, the term
    `deceased spousal unused exclusion amount' means the lesser of--
    ``(A) the basic exclusion amount, or
    ``(B) the excess of--
    ``(i) the basic exclusion amount of the last
    such deceased spouse of such surviving spouse,
    over
    ``(ii) the amount with respect to which the
    tentative tax is determined under section
    2001(b)(1) on the estate of such deceased spouse.
    ``(5) Special rules.--
    ``(A) Election required.--A deceased spousal unused
    exclusion amount may not be taken into account by a
    surviving spouse under paragraph (2) unless the executor
    of the estate of the deceased spouse files an estate tax
    return on which such amount is computed and makes an
    election on such return that such amount may be so taken
    into account. Such election, once made, shall be
    irrevocable. No election may be made under this
    subparagraph if such return is filed after the time
    prescribed by law (including extensions) for filing such
    return.
    ``(B) Examination of prior returns after expiration
    of period of limitations with respect to deceased
    spousal unused exclusion amount.--Notwithstanding any
    period of limitation in section 6501, after the time has
    expired under section 6501 within which a tax may be
    assessed under chapter 11 or 12 with respect to a
    deceased spousal unused exclusion amount, the Secretary
    may examine a return of the deceased spouse to make
    determinations with respect to such amount for purposes
    of carrying out this subsection.
    ``(6) Regulations.--The Secretary shall prescribe such
    regulations as may be necessary or appropriate to carry out this
    subsection.''.

    (b) Conforming Amendments.--
    (1) Paragraph (1) of section 2505(a), as amended by section
    302(b)(1), <>  is amended to read as
    follows:
    ``(1) the applicable credit amount in effect under section
    2010(c) which would apply if the donor died as of the end of the
    calendar year, reduced by''.
    (2) Section 2631(c) is amended by striking ``the applicable
    exclusion amount'' and inserting ``the basic exclusion amount''.
    (3) Section 6018(a)(1) is amended by striking ``applicable
    exclusion amount'' and inserting ``basic exclusion amount''.

    (c) <>  Effective Dates.--

    [[Page 3304]]

    (1) In general.--Except as provided in paragraph (2), the
    amendments made by this section shall apply to estates of
    decedents dying and gifts made after December 31, 2010.
    (2) Conforming amendment relating to generation-skipping
    transfers.--The amendment made by subsection (b)(2) shall apply
    to generation-skipping transfers after December 31, 2010.
    SEC. 304. <>  APPLICATION OF EGTRRA SUNSET
    TO THIS TITLE.

    Section 901 of the Economic Growth and Tax Relief Reconciliation Act
    of 2001 shall apply to the amendments made by this title.

    TITLE IV--TEMPORARY EXTENSION OF INVESTMENT INCENTIVES

    SEC. 401. EXTENSION OF BONUS DEPRECIATION; TEMPORARY 100 PERCENT
    EXPENSING FOR CERTAIN BUSINESS ASSETS.

    (a) In General.--Paragraph (2) of section 168(k) <>  is amended--
    (1) by striking ``January 1, 2012'' in subparagraph (A)(iv)
    and inserting ``January 1, 2014'', and
    (2) by striking ``January 1, 2011'' each place it appears
    and inserting ``January 1, 2013''.

    (b) Temporary 100 Percent Expensing.--Subsection (k) of section 168
    is amended by adding at the end the following new paragraph:
    ``(5) Special rule for property acquired during certain pre-
    2012 periods. <> --In the case of
    qualified property acquired by the taxpayer (under rules similar
    to the rules of clauses (ii) and (iii) of paragraph (2)(A))
    after September 8, 2010, and before January 1, 2012, and which
    is placed in service by the taxpayer before January 1, 2012
    (January 1, 2013, in the case of property described in
    subparagraph (2)(B) or (2)(C)), paragraph (1)(A) shall be
    applied by substituting `100 percent' for `50 percent'.''.

    (c) Extension of Election To Accelerate the AMT Credit in Lieu of
    Bonus Depreciation.--
    (1) <>  Extension.--Clause (iii) of
    section 168(k)(4)(D) is amended by striking ``or production''
    and all that follows and inserting ``or production--
    ``(I) after March 31, 2008, and
    before January 1, 2010, and
    ``(II) after December 31, 2010, and
    before January 1, 2013,
    shall be taken into account under subparagraph
    (B)(ii) thereof,''.
    (2) Rules for round 2 extension property.--Paragraph (4) of
    section 168(k) is amended by adding at the end the following new
    subparagraph:
    ``(I) Special rules for round 2 extension
    property.--
    ``(i) <>  In general.--
    In the case of round 2 extension property, this
    paragraph shall be applied without regard to--
    ``(I) the limitation described in
    subparagraph (B)(i) thereof, and

    [[Page 3305]]

    ``(II) the business credit increase
    amount under subparagraph (E)(iii)
    thereof.
    ``(ii) Taxpayers previously electing
    acceleration.--In the case of a taxpayer who made
    the election under subparagraph (A) for its first
    taxable year ending after March 31, 2008, or a
    taxpayer who made the election under subparagraph
    (H)(ii) for its first taxable year ending after
    December 31, 2008--
    ``(I) the taxpayer may elect not to
    have this paragraph apply to round 2
    extension property, but
    ``(II) if the taxpayer does not make
    the election under subclause (I), in
    applying this paragraph to the taxpayer
    the bonus depreciation amount, maximum
    amount, and maximum increase amount
    shall be computed and applied to
    eligible qualified property which is
    round 2 extension property.
    The amounts described in subclause (II) shall be
    computed separately from any amounts computed with
    respect to eligible qualified property which is
    not round 2 extension property.
    ``(iii) Taxpayers not previously electing
    acceleration.--In the case of a taxpayer who
    neither made the election under subparagraph (A)
    for its first taxable year ending after March 31,
    2008, nor made the election under subparagraph
    (H)(ii) for its first taxable year ending after
    December 31, 2008--
    ``(I) the taxpayer may elect to have
    this paragraph apply to its first
    taxable year ending after December 31,
    2010, and each subsequent taxable year,
    and
    ``(II) if the taxpayer makes the
    election under subclause (I), this
    paragraph shall only apply to eligible
    qualified property which is round 2
    extension property.
    ``(iv) Round 2 extension property.--For
    purposes of this subparagraph, the term `round 2
    extension property' means property which is
    eligible qualified property solely by reason of
    the extension of the application of the special
    allowance under paragraph (1) pursuant to the
    amendments made by section 401(a) of the Tax
    Relief, Unemployment Insurance Reauthorization,
    and Job Creation Act of 2010 (and the application
    of such extension to this paragraph pursuant to
    the amendment made by section 401(c)(1) of such
    Act).''.

    (d) Conforming Amendments.--
    (1) The heading for subsection (k) of section 168 <>  is amended by striking ``January 1, 2011'' and
    inserting ``January 1, 2013''.
    (2) The heading for clause (ii) of section 168(k)(2)(B) is
    amended by striking ``pre-january 1, 2011'' and inserting ``pre-
    january 1, 2013''.
    (3) Subparagraph (D) of section 168(k)(4) is amended--
    (A) by striking clauses (iv) and (v),
    (B) by inserting ``and'' at the end of clause (ii),
    and
    (C) by striking the comma at the end of clause (iii)
    and inserting a period.
    (4) Paragraph (5) of section 168(l) is amended--

    [[Page 3306]]

    (A) by inserting ``and'' at the end of subparagraph
    (A),
    (B) by striking subparagraph (B), and
    (C) by redesignating subparagraph (C) as
    subparagraph (B).
    (5) Subparagraph (C) of section 168(n)(2) <>  is amended by striking ``January 1, 2011'' and inserting
    ``January 1, 2013''.
    (6) Subparagraph (D) of section 1400L(b)(2) is amended by
    striking ``January 1, 2011'' and inserting ``January 1, 2013''.
    (7) Subparagraph (B) of section 1400N(d)(3) is amended by
    striking ``January 1, 2011'' and inserting ``January 1, 2013''.

    (e) <>  Effective Dates.--
    (1) In general.--Except as provided in paragraph (2), the
    amendments made by this section shall apply to property placed
    in service after December 31, 2010, in taxable years ending
    after such date.
    (2) Temporary 100 percent expensing.--The amendment made by
    subsection (b) shall apply to property placed in service after
    September 8, 2010, in taxable years ending after such date.
    SEC. 402. TEMPORARY EXTENSION OF INCREASED SMALL BUSINESS
    EXPENSING.

    (a) Dollar Limitation.--Section 179(b)(1) is amended by striking
    ``and'' at the end of subparagraph (B) and by striking subparagraph (C)
    and inserting the following new subparagraphs:
    ``(C) $125,000 in the case of taxable years
    beginning in 2012, and
    ``(D) $25,000 in the case of taxable years beginning
    after 2012.''.

    (b) Reduction in Limitation.--Section 179(b)(2) is amended by
    striking ``and'' at the end of subparagraph (B) and by striking
    subparagraph (C) and inserting the following new subparagraphs:
    ``(C) $500,000 in the case of taxable years
    beginning in 2012, and
    ``(D) $200,000 in the case of taxable years
    beginning after 2012.''.

    (c) Inflation Adjustment.--Subsection (b) of section 179 is amended
    by adding at the end the following new paragraph:
    ``(6) Inflation adjustment.--
    ``(A) In general.--In the case of any taxable year
    beginning in calendar year 2012, the $125,000 and
    $500,000 amounts in paragraphs (1)(C) and (2)(C) shall
    each be increased by an amount equal to--
    ``(i) such dollar amount, multiplied by
    ``(ii) the cost-of-living adjustment
    determined under section 1(f)(3) for the calendar
    year in which the taxable year begins, by
    substituting `calendar year 2006' for `calendar
    year 1992' in subparagraph (B) thereof.
    ``(B) Rounding.--
    ``(i) Dollar limitation.--If the amount in
    paragraph (1) as increased under subparagraph (A)
    is not a multiple of $1,000, such amount shall be
    rounded to the nearest multiple of $1,000.
    ``(ii) Phaseout amount.--If the amount in
    paragraph (2) as increased under subparagraph (A)
    is not

    [[Page 3307]]

    a multiple of $10,000, such amount shall be
    rounded to the nearest multiple of $10,000.''.

    (d) Computer Software.--Section 179(d)(1)(A)(ii) <>  is amended by striking ``2012'' and inserting ``2013''.

    (e) Conforming Amendment.--Section 179(c)(2) is amended by striking
    ``2012'' and inserting ``2013''.
    (f) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2011.

    TITLE V--TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE AND RELATED
    MATTERS

    SEC. 501. TEMPORARY EXTENSION OF UNEMPLOYMENT INSURANCE
    PROVISIONS.

    (a) In General.--(1) Section 4007 of the Supplemental Appropriations
    Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
    (A) by striking ``November 30, 2010'' each place it appears
    and inserting ``January 3, 2012'';
    (B) in the heading for subsection (b)(2), by striking
    ``november 30, 2010'' and inserting ``january 3, 2012''; and
    (C) in subsection (b)(3), by striking ``April 30, 2011'' and
    inserting ``June 9, 2012''.

    (2) Section 2005 of the Assistance for Unemployed Workers and
    Struggling Families Act, as contained in Public Law 111-5 (26 U.S.C.
    3304 note; 123 Stat. 444), is amended--
    (A) by striking ``December 1, 2010'' each place it appears
    and inserting ``January 4, 2012''; and
    (B) in subsection (c), by striking ``May 1, 2011'' and
    inserting ``June 11, 2012''.

    (3) Section 5 of the Unemployment Compensation Extension Act of 2008
    (Public Law 110-449; 26 U.S.C. 3304 note) is amended by striking ``April
    30, 2011'' and inserting ``June 10, 2012''.
    (b) Funding.--Section 4004(e)(1) of the Supplemental Appropriations
    Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--
    (1) in subparagraph (E), by striking ``and'' at the end; and
    (2) by inserting after subparagraph (F) the following:
    ``(G) the amendments made by section 501(a)(1) of
    the Tax Relief, Unemployment Insurance Reauthorization,
    and Job Creation Act of 2010; and''.

    (c) <>  Effective Date.--The amendments
    made by this section shall take effect as if included in the enactment
    of the Unemployment Compensation Extension Act of 2010 (Public Law 111-
    205).
    SEC. 502. <>  TEMPORARY MODIFICATION OF
    INDICATORS UNDER THE EXTENDED BENEFIT
    PROGRAM.

    (a) Indicator.--Section 203(d) of the Federal-State Extended
    Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is amended,
    in the flush matter following paragraph (2), by inserting after the
    first sentence the following sentence: <>
    ``Effective with respect to compensation for weeks of unemployment
    beginning after the date of enactment of the Tax Relief, Unemployment
    Insurance

    [[Page 3308]]

    Reauthorization, and Job Creation Act of 2010 (or, if later, the date
    established pursuant to State law), and ending on or before December 31,
    2011, the State may by law provide that the determination of whether
    there has been a state `on' or `off' indicator beginning or ending any
    extended benefit period shall be made under this subsection as if the
    word `two' were `three' in subparagraph (1)(A).''.

    (b) Alternative Trigger.--Section 203(f) of the Federal-State
    Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note) is
    amended--
    (1) by redesignating paragraph (2) as paragraph (3); and
    (2) by inserting after paragraph (1) the following new
    paragraph:

    ``(2) <>  Effective with respect to
    compensation for weeks of unemployment beginning after the date of
    enactment of the Tax Relief, Unemployment Insurance Reauthorization, and
    Job Creation Act of 2010 (or, if later, the date established pursuant to
    State law), and ending on or before December 31, 2011, the State may by
    law provide that the determination of whether there has been a state
    `on' or `off' indicator beginning or ending any extended benefit period
    shall be made under this subsection as if the word `either' were `any',
    the word `both' were `all', and the figure `2' were `3' in clause
    (1)(A)(ii).''.
    SEC. 503. TECHNICAL AMENDMENT RELATING TO COLLECTION OF
    UNEMPLOYMENT COMPENSATION DEBTS.

    (a) In General.--Section 6402(f)(3)(C), as amended by section 801 of
    the Claims Resolution Act of 2010, <>  is amended by
    striking ``is not a covered unemployment compensation debt'' and
    inserting ``is a covered unemployment compensation debt''.

    (b) <>  Effective Date.--The amendment made
    by subsection (a) shall take effect as if included in section 801 of the
    Claims Resolution Act of 2010.
    SEC. 504. TECHNICAL CORRECTION RELATING TO REPEAL OF CONTINUED
    DUMPING AND SUBSIDY OFFSET.

    (a) In General.--Section 822(2)(A) of the Claims Resolution Act of
    2010 <>  is amended by striking ``or'' and
    inserting ``and''.

    (b) <>  Effective Date.--The amendment
    made by subsection (a) shall take effect as if included in the
    provisions of the Claims Resolution Act of 2010.
    SEC. 505. ADDITIONAL EXTENDED UNEMPLOYMENT BENEFITS UNDER THE
    RAILROAD UNEMPLOYMENT INSURANCE ACT.

    (a) Extension.--Section 2(c)(2)(D)(iii) of the Railroad Unemployment
    Insurance Act, as added by section 2006 of the American Recovery and
    Reinvestment Act of 2009 (Public Law 111-5) and as amended by section 9
    of the Worker, Homeownership, and Business Assistance Act of 2009
    (Public Law 111-92), <>  is amended--
    (1) by striking ``June 30, 2010'' and inserting ``June 30,
    2011''; and
    (2) by striking ``December 31, 2010'' and inserting
    ``December 31, 2011''.

    (b) Clarification on Authority To Use Funds.--Funds appropriated
    under either the first or second sentence of clause (iv) of section
    2(c)(2)(D) of the Railroad Unemployment Insurance Act shall be available
    to cover the cost of additional extended

    [[Page 3309]]

    unemployment benefits provided under such section 2(c)(2)(D) by reason
    of the amendments made by subsection (a) as well as to cover the cost of
    such benefits provided under such section 2(c)(2)(D), as in effect on
    the day before the date of the enactment of this Act.

    TITLE VI--TEMPORARY EMPLOYEE PAYROLL TAX CUT

    SEC. 601. <>  TEMPORARY EMPLOYEE PAYROLL
    TAX CUT.

    (a) In General.--Notwithstanding any other provision of law--
    (1) with respect to any taxable year which begins in the
    payroll tax holiday period, the rate of tax under section
    1401(a) of the Internal Revenue Code of 1986 shall be 10.40
    percent, and
    (2) with respect to remuneration received during the payroll
    tax holiday period, the rate of tax under 3101(a) of such Code
    shall be 4.2 percent (including for purposes of determining the
    applicable percentage under sections 3201(a) and 3211(a)(1) of
    such Code).

    (b) Coordination With Deductions for Employment Taxes.--
    (1) Deduction in computing net earnings from self-
    employment.--For purposes of applying section 1402(a)(12) of the
    Internal Revenue Code of 1986, the rate of tax imposed by
    subsection 1401(a) of such Code shall be determined without
    regard to the reduction in such rate under this section.
    (2) Individual deduction.--In the case of the taxes imposed
    by section 1401 of such Code for any taxable year which begins
    in the payroll tax holiday period, the deduction under section
    164(f) with respect to such taxes shall be equal to the sum of--
    (A) 59.6 percent of the portion of such taxes
    attributable to the tax imposed by section 1401(a)
    (determined after the application of this section), plus
    (B) one-half of the portion of such taxes
    attributable to the tax imposed by section 1401(b).

    (c) <>  Payroll Tax Holiday Period.--The term
    ``payroll tax holiday period'' means calendar year 2011.

    (d) Employer Notification.--The Secretary of the Treasury shall
    notify employers of the payroll tax holiday period in any manner the
    Secretary deems appropriate.
    (e) Transfers of Funds.--
    (1) Transfers to federal old-age and survivors insurance
    trust fund.--There are hereby appropriated to the Federal Old-
    Age and Survivors Trust Fund and the Federal Disability
    Insurance Trust Fund established under section 201 of the Social
    Security Act (42 U.S.C. 401) amounts equal to the reduction in
    revenues to the Treasury by reason of the application of
    subsection (a). Amounts appropriated by the preceding sentence
    shall be transferred from the general fund at such times and in
    such manner as to replicate to the extent possible the transfers
    which would have occurred to such Trust Fund had such amendments
    not been enacted.
    (2) Transfers to social security equivalent benefit
    account.--There are <> hereby appropriated to the Social Security

    [[Page 3310]]

    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 application of subsection (a)(2). 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.
    (3) <>  Coordination with other
    federal laws.--For purposes of applying any provision of Federal
    law other than the provisions of the Internal Revenue Code of
    1986, the rate of tax in effect under section 3101(a) of such
    Code shall be determined without regard to the reduction in such
    rate under this section.

    TITLE VII--TEMPORARY EXTENSION OF CERTAIN EXPIRING PROVISIONS

    Subtitle A--Energy

    SEC. 701. INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
    Subsection (g) of section 40A <>  is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.

    (b) Excise Tax Credits and Outlay Payments for Biodiesel and
    Renewable Diesel Fuel Mixtures.--
    (1) Paragraph (6) of section 6426(c) is amended by striking
    ``December 31, 2009'' and inserting ``December 31, 2011''.
    (2) Subparagraph (B) of section 6427(e)(6) is amended by
    striking ``December 31, 2009'' and inserting ``December 31,
    2011''.

    (c) <>  Special Rule for
    2010.--Notwithstanding any other provision of law, in the case of any
    biodiesel mixture credit properly determined under section 6426(c) of
    the Internal Revenue Code of 1986 for periods during 2010, such credit
    shall be allowed, and any refund or payment attributable to such credit
    (including any payment under section 6427(e) of such Code) shall be
    made, only in such manner as the Secretary of the Treasury (or the
    Secretary's delegate) shall provide. <> Such Secretary
    shall issue guidance within 30 days after the date of the enactment of
    this Act providing for a one-time submission of claims covering periods
    during 2010. <> Such guidance shall provide for a
    180-day period for the submission of such claims (in such manner as
    prescribed by such Secretary) to begin not later than 30 days after such
    guidance is issued. Such claims shall be paid by such Secretary not
    later than 60 days after receipt. If such Secretary has not paid
    pursuant to a claim filed under this subsection within 60 days after the
    date of the filing of such claim, the claim shall be paid with interest
    from such date determined by using the overpayment rate and method under
    section 6621 of such Code.

    (d) <>  Effective Date.--The amendments made
    by this section shall apply to fuel sold or used after December 31,
    2009.

    [[Page 3311]]

    SEC. 702. CREDIT FOR REFINED COAL FACILITIES.

    (a) In General.--Subparagraph (B) of section 45(d)(8) <>  is amended by striking ``January 1, 2010'' and inserting
    ``January 1, 2012''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to facilities placed in service after
    December 31, 2009.
    SEC. 703. NEW ENERGY EFFICIENT HOME CREDIT.

    (a) In General.--Subsection (g) of section 45L is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to homes acquired after December 31, 2009.
    SEC. 704. EXCISE TAX CREDITS AND OUTLAY PAYMENTS FOR ALTERNATIVE
    FUEL AND ALTERNATIVE FUEL MIXTURES.

    (a) In General.--Sections 6426(d)(5), 6426(e)(3), and 6427(e)(6)(C)
    are each amended by striking ``December 31, 2009'' and inserting
    ``December 31, 2011''.
    (b) Exclusion of Black Liquor From Credit Eligibility.--The last
    sentence of section 6426(d)(2) is amended by striking ``or biodiesel''
    and inserting ``biodiesel, or any fuel (including lignin, wood residues,
    or spent pulping liquors) derived from the production of paper or
    pulp''.
    (c) <>  Special Rule for
    2010.--Notwithstanding any other provision of law, in the case of any
    alternative fuel credit or any alternative fuel mixture credit properly
    determined under subsection (d) or (e) of section 6426 of the Internal
    Revenue Code of 1986 for periods during 2010, such credit shall be
    allowed, and any refund or payment attributable to such credit
    (including any payment under section 6427(e) of such Code) shall be
    made, only in such manner as the Secretary of the Treasury (or the
    Secretary's delegate) shall provide. <> Such Secretary
    shall issue guidance within 30 days after the date of the enactment of
    this Act providing for a one-time submission of claims covering periods
    during 2010. Such <> guidance shall provide for a
    180-day period for the submission of such claims (in such manner as
    prescribed by such Secretary) to begin not later than 30 days after such
    guidance is issued. Such claims shall be paid by such Secretary not
    later than 60 days after receipt. If such Secretary has not paid
    pursuant to a claim filed under this subsection within 60 days after the
    date of the filing of such claim, the claim shall be paid with interest
    from such date determined by using the overpayment rate and method under
    section 6621 of such Code.

    (d) <>  Effective Date.--The amendments
    made by this section shall apply to fuel sold or used after December 31,
    2009.
    SEC. 705. SPECIAL RULE FOR SALES OR DISPOSITIONS TO IMPLEMENT FERC
    OR STATE ELECTRIC RESTRUCTURING POLICY FOR
    QUALIFIED ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by
    striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to dispositions after December 31, 2009.
    SEC. 706. SUSPENSION OF LIMITATION ON PERCENTAGE DEPLETION FOR OIL
    AND GAS FROM MARGINAL WELLS.

    (a) In General.--Clause (ii) of section 613A(c)(6)(H) is amended by
    striking ``January 1, 2010'' and inserting ``January 1, 2012''.

    [[Page 3312]]

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2009.
    SEC. 707. EXTENSION OF GRANTS FOR SPECIFIED ENERGY PROPERTY IN
    LIEU OF TAX CREDITS.

    (a) In General.--Subsection (a) of section 1603 of division B of the
    American Recovery and Reinvestment Act of 2009 <>  is amended--
    (1) in paragraph (1), by striking ``2009 or 2010'' and
    inserting ``2009, 2010, or 2011'', and
    (2) in paragraph (2)--
    (A) by striking ``after 2010'' and inserting ``after
    2011'', and
    (B) by striking ``2009 or 2010'' and inserting
    ``2009, 2010, or 2011''.

    (b) Conforming Amendment.--Subsection (j) of section 1603 of
    division B of such Act is amended by striking ``2011'' and inserting
    ``2012''.
    SEC. 708. EXTENSION OF PROVISIONS RELATED TO ALCOHOL USED AS FUEL.

    (a) Extension of Income Tax Credit for Alcohol Used as Fuel.--
    (1) In general.--Paragraph (1) of section 40(e) is amended--
    (A) by striking ``December 31, 2010'' in
    subparagraph (A) and inserting ``December 31, 2011'',
    and
    (B) by striking ``January 1, 2011'' in subparagraph
    (B) and inserting ``January 1, 2012''.
    (2) Reduced amount for ethanol blenders.--Subsection (h) of
    section 40 is amended by striking ``2010'' both places it
    appears and inserting ``2011''.
    (3) <>  Effective date.--The
    amendments made by this subsection shall apply to periods after
    December 31, 2010.

    (b) Extension of Excise Tax Credit for Alcohol Used as Fuel.--
    (1) In general.--Paragraph (6) of section 6426(b) is amended
    by striking ``December 31, 2010'' and inserting ``December 31,
    2011''.
    (2) <>  Effective date.--The
    amendment made by this subsection shall apply to periods after
    December 31, 2010.

    (c) Extension of Payment for Alcohol Fuel Mixture.--
    (1) In general.--Subparagraph (A) of section 6427(e)(6) is
    amended by striking ``December 31, 2010'' and inserting
    ``December 31, 2011''.
    (2) <>  Effective date.--The
    amendment made by this subsection shall apply to sales and uses
    after December 31, 2010.

    (d) Extension of Additional Duties on Ethanol.--
    (1) In general.--Headings 9901.00.50 and 9901.00.52 of the
    Harmonized Tariff Schedule of the United States are each amended
    in the effective period column by striking ``1/1/2011'' and
    inserting ``1/1/2012''.
    (2) Effective date.--The amendments made by this subsection
    shall take effect on January 1, 2011.
    SEC. 709. ENERGY EFFICIENT APPLIANCE CREDIT.

    (a) Dishwashers.--Paragraph (1) of section 45M(b) is amended by
    striking ``and'' at the end of subparagraph (A), by striking the

    [[Page 3313]]

    period at the end of subparagraph (B) and inserting a comma, and by
    adding at the end the following new subparagraphs:
    ``(C) $25 in the case of a dishwasher which is
    manufactured in calendar year 2011 and which uses no
    more than 307 kilowatt hours per year and 5.0 gallons
    per cycle (5.5 gallons per cycle for dishwashers
    designed for greater than 12 place settings),
    ``(D) $50 in the case of a dishwasher which is
    manufactured in calendar year 2011 and which uses no
    more than 295 kilowatt hours per year and 4.25 gallons
    per cycle (4.75 gallons per cycle for dishwashers
    designed for greater than 12 place settings), and
    ``(E) $75 in the case of a dishwasher which is
    manufactured in calendar year 2011 and which uses no
    more than 280 kilowatt hours per year and 4 gallons per
    cycle (4.5 gallons per cycle for dishwashers designed
    for greater than 12 place settings).''.

    (b) Clothes Washers.--Paragraph (2) of section 45M(b) <>  is amended by striking ``and'' at the end of subparagraph (C),
    by striking the period at the end of subparagraph (D) and inserting a
    comma, and by adding at the end the following new subparagraphs:
    ``(E) $175 in the case of a top-loading clothes
    washer manufactured in calendar year 2011 which meets or
    exceeds a 2.2 modified energy factor and does not exceed
    a 4.5 water consumption factor, and
    ``(F) $225 in the case of a clothes washer
    manufactured in calendar year 2011--
    ``(i) which is a top-loading clothes washer
    and which meets or exceeds a 2.4 modified energy
    factor and does not exceed a 4.2 water consumption
    factor, or
    ``(ii) which is a front-loading clothes washer
    and which meets or exceeds a 2.8 modified energy
    factor and does not exceed a 3.5 water consumption
    factor.''.

    (c) Refrigerators.--Paragraph (3) of section 45M(b) is amended by
    striking ``and'' at the end of subparagraph (C), by striking the period
    at the end of subparagraph (D) and inserting a comma, and by adding at
    the end the following new subparagraphs:
    ``(E) $150 in the case of a refrigerator
    manufactured in calendar year 2011 which consumes at
    least 30 percent less energy than the 2001 energy
    conservation standards, and
    ``(F) $200 in the case of a refrigerator
    manufactured in calendar year 2011 which consumes at
    least 35 percent less energy than the 2001 energy
    conservation standards.''.

    (d) Rebasing of Limitations.--
    (1) In general.--Paragraph (1) of section 45M(e) is
    amended--
    (A) by striking ``$75,000,000'' and inserting
    ``$25,000,000'', and
    (B) by striking ``December 31, 2007'' and inserting
    ``December 31, 2010''.
    (2) Exception for certain refrigerators and clothes
    washers.--Paragraph (2) of section 45M(e) is amended--

    [[Page 3314]]

    (A) by striking ``subsection (b)(3)(D)'' and
    inserting ``subsection (b)(3)(F)'', and
    (B) by striking ``subsection (b)(2)(D)'' and
    inserting ``subsection (b)(2)(F)''.
    (3) Gross receipts limitation.--Paragraph (3) of section
    45M(e) <>  is amended by striking ``2
    percent'' and inserting ``4 percent''.

    (e) <>  Effective Dates.--
    (1) In general.--The amendments made by subsections (a),
    (b), and (c) shall apply to appliances produced after December
    31, 2010.
    (2) Limitations.--The amendments made by subsection (d)
    shall apply to taxable years beginning after December 31, 2010.
    SEC. 710. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

    (a) Extension.--Section 25C(g)(2) is amended by striking ``2010''
    and inserting ``2011''.
    (b) Return to Pre-ARRA Limitations and Standards.--
    (1) In general.--Subsections (a) and (b) of section 25C are
    amended to read as follows:

    ``(a) Allowance of Credit.--In the case of an individual, there
    shall be allowed as a credit against the tax imposed by this chapter for
    the taxable year an amount equal to the sum of--
    ``(1) 10 percent of the amount paid or incurred by the
    taxpayer for qualified energy efficiency improvements installed
    during such taxable year, and
    ``(2) the amount of the residential energy property
    expenditures paid or incurred by the taxpayer during such
    taxable year.

    ``(b) Limitations.--
    ``(1) Lifetime limitation.--The credit allowed under this
    section with respect to any taxpayer for any taxable year shall
    not exceed the excess (if any) of $500 over the aggregate
    credits allowed under this section with respect to such taxpayer
    for all prior taxable years ending after December 31, 2005.
    ``(2) Windows.--In the case of amounts paid or incurred for
    components described in subsection (c)(2)(B) by any taxpayer for
    any taxable year, the credit allowed under this section with
    respect to such amounts for such year shall not exceed the
    excess (if any) of $200 over the aggregate credits allowed under
    this section with respect to such amounts for all prior taxable
    years ending after December 31, 2005.
    ``(3) Limitation on residential energy property
    expenditures.--The amount of the credit allowed under this
    section by reason of subsection (a)(2) shall not exceed--
    ``(A) $50 for any advanced main air circulating fan,
    ``(B) $150 for any qualified natural gas, propane,
    or oil furnace or hot water boiler, and
    ``(C) $300 for any item of energy-efficient building
    property.''.
    (2) Modification of standards.--
    (A) In general.--Paragraph (1) of section 25C(c) is
    amended by striking ``2000'' and all that follows
    through ``this section'' and inserting ``2009
    International Energy Conservation Code, as such Code
    (including supplements)

    [[Page 3315]]

    is in effect on the date of the enactment of the
    American Recovery and Reinvestment Tax Act of 2009''.
    (B) Wood stoves.--Subparagraph (E) of section
    25C(d)(3) <>  is amended by striking
    ``, as measured using a lower heating value''.
    (C)  Oil furnaces and hot water boilers.--
    (i) In general.--Paragraph (4) of section
    25C(d) is amended to read as follows:
    ``(4) <>  Qualified natural gas, propane,
    or oil furnace or hot water boiler.--The term `qualified natural
    gas, propane, or oil furnace or hot water boiler' means a
    natural gas, propane, or oil furnace or hot water boiler which
    achieves an annual fuel utilization efficiency rate of not less
    than 95.''.
    (ii) Conforming amendment.--Clause (ii) of
    section 25C(d)(2)(A) is amended to read as
    follows:
    ``(ii) a qualified natural gas, propane, or
    oil furnace or hot water boiler, or''.
    (D) Exterior windows, doors, and skylights.--
    (i) In general.--Subsection (c) of section 25C
    is amended by striking paragraph (4).
    (ii) Application of energy star standards.--
    Paragraph (1) of section 25C(c) is amended by
    inserting ``an exterior window, a skylight, an
    exterior door,'' after ``in the case of'' in the
    matter preceding subparagraph (A).
    (E) Insulation.--Subparagraph (A) of section
    25C(c)(2) is amended by striking ``and meets the
    prescriptive criteria for such material or system
    established by the 2009 International Energy
    Conservation Code, as such Code (including supplements)
    is in effect on the date of the enactment of the
    American Recovery and Reinvestment Tax Act of 2009''.
    (3) Subsidized energy financing.--Subsection (e) of section
    25C is amended by adding at the end the following new paragraph:
    ``(3) Property financed by subsidized energy financing.--For
    purposes of determining the amount of expenditures made by any
    individual with respect to any property, there shall not be
    taken into account expenditures which are made from subsidized
    energy financing (as defined in section 48(a)(4)(C)).''.

    (c) <>  Effective Date.--The amendments made
    by this section shall apply to property placed in service after December
    31, 2010.
    SEC. 711. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.

    (a) Extension of Credit.--Paragraph (2) of section 30C(g) is amended
    by striking ``December 31, 2010'' and inserting ``December 31, 2011.''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2010.

    [[Page 3316]]

    Subtitle B--Individual Tax Relief

    SEC. 721. DEDUCTION FOR CERTAIN EXPENSES OF ELEMENTARY AND
    SECONDARY SCHOOL TEACHERS.

    (a) In General.--Subparagraph (D) of section 62(a)(2) <>  is amended by striking ``or 2009'' and inserting ``2009, 2010, or
    2011''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2009.
    SEC. 722. DEDUCTION OF STATE AND LOCAL SALES TAXES.

    (a) In General.--Subparagraph (I) of section 164(b)(5) is amended by
    striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2009.
    SEC. 723. CONTRIBUTIONS OF CAPITAL GAIN REAL PROPERTY MADE FOR
    CONSERVATION PURPOSES.

    (a) In General.--Clause (vi) of section 170(b)(1)(E) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Contributions by Certain Corporate Farmers and Ranchers.--Clause
    (iii) of section 170(b)(2)(B) is amended by striking ``December 31,
    2009'' and inserting ``December 31, 2011''.
    (c) <>  Effective Date.--The amendments made
    by this section shall apply to contributions made in taxable years
    beginning after December 31, 2009.
    SEC. 724. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED TUITION AND
    RELATED EXPENSES.

    (a) In General.--Subsection (e) of section 222 is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2009.
    SEC. 725. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS
    FOR CHARITABLE PURPOSES.

    (a) In General.--Subparagraph (F) of section 408(d)(8) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date; Special Rule.--
    (1) Effective date.--The amendment made by this section
    shall apply to distributions made in taxable years beginning
    after December 31, 2009.
    (2) Special rule.--For purposes of subsections (a)(6),
    (b)(3), and (d)(8) of section 408 of the Internal Revenue Code
    of 1986, at the election of the taxpayer (at such time and in
    such manner as prescribed by the Secretary of the Treasury) any
    qualified charitable distribution made after December 31, 2010,
    and before February 1, 2011, shall be deemed to have been made
    on December 31, 2010.
    SEC. 726. LOOK-THRU OF CERTAIN REGULATED INVESTMENT COMPANY STOCK
    IN DETERMINING GROSS ESTATE OF
    NONRESIDENTS.

    (a) In General.--Paragraph (3) of section 2105(d) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.

    [[Page 3317]]

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to estates of decedents dying after December
    31, 2009.
    SEC. 727. PARITY FOR EXCLUSION FROM INCOME FOR EMPLOYER-PROVIDED
    MASS TRANSIT AND PARKING BENEFITS.

    (a) In General.--Paragraph (2) of section 132(f) <>  is amended by striking ``January 1, 2011'' and inserting
    ``January 1, 2012''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to months after December 31, 2010.
    SEC. 728. REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL
    PROGRAMS AND FEDERALLY ASSISTED PROGRAMS.

    (a) In General.--Subchapter A of chapter 65 is amended by adding at
    the end the following new section:
    ``SEC. 6409. <>  REFUNDS DISREGARDED IN THE
    ADMINISTRATION OF FEDERAL PROGRAMS AND
    FEDERALLY ASSISTED PROGRAMS.

    ``(a) In General.--Notwithstanding any other provision of law, any
    refund (or advance payment with respect to a refundable credit) made to
    any individual under this title shall not be taken into account as
    income, and shall not be taken into account as resources for a period of
    12 months from receipt, for purposes of determining the eligibility of
    such individual (or any other individual) for benefits or assistance (or
    the amount or extent of benefits or assistance) under any Federal
    program or under any State or local program financed in whole or in part
    with Federal funds.
    ``(b) Termination.--Subsection (a) shall not apply to any amount
    received after December 31, 2012.''.
    (b) Clerical Amendment.--The table of sections for such subchapter
    is amended by adding at the end the following new item:

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

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

    Subtitle C--Business Tax Relief

    SEC. 731. RESEARCH CREDIT.

    (a) In General.--Subparagraph (B) of section 41(h)(1) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) is
    amended by striking ``December 31, 2009'' and inserting ``December 31,
    2011''.
    (c) <>  Effective Date.--The amendments made
    by this section shall apply to amounts paid or incurred after December
    31, 2009.
    SEC. 732. INDIAN EMPLOYMENT TAX CREDIT.

    (a) In General.--Subsection (f) of section 45A is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2009.
    SEC. 733. NEW MARKETS TAX CREDIT.

    (a) In General.--Paragraph (1) of section 45D(f) is amended--
    (1) by striking ``and'' at the end of subparagraph (E),

    [[Page 3318]]

    (2) by striking the period at the end of subparagraph (F),
    and
    (3) by adding at the end the following new subparagraph:
    ``(G) $3,500,000,000 for 2010 and 2011.''.

    (b) Conforming Amendment.--Paragraph (3) of section <>  45D(f) is amended by striking ``2014'' and inserting ``2016''.

    (c) <>  Effective Date.--The amendments made
    by this section shall apply to calendar years beginning after 2009.
    SEC. 734. RAILROAD TRACK MAINTENANCE CREDIT.

    (a) In General.--Subsection (f) of section 45G is amended by
    striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to expenditures paid or incurred in taxable
    years beginning after December 31, 2009.
    SEC. 735. MINE RESCUE TEAM TRAINING CREDIT.

    (a) In General.--Subsection (e) of section 45N is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years beginning after December
    31, 2009.
    SEC. 736. EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE DUTY
    MEMBERS OF THE UNIFORMED SERVICES.

    (a) In General.--Subsection (f) of section 45P is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to payments made after December 31, 2009.
    SEC. 737. 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED
    LEASEHOLD IMPROVEMENTS, QUALIFIED
    RESTAURANT BUILDINGS AND IMPROVEMENTS, AND
    QUALIFIED RETAIL IMPROVEMENTS.

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

    (c) <>  Effective Date.--The amendments made
    by this section shall apply to property placed in service after December
    31, 2009.
    SEC. 738. 7-YEAR RECOVERY PERIOD FOR MOTORSPORTS ENTERTAINMENT
    COMPLEXES.

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

    [[Page 3319]]

    SEC. 739. ACCELERATED DEPRECIATION FOR BUSINESS PROPERTY ON AN
    INDIAN RESERVATION.

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

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2009.
    SEC. 740. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF FOOD
    INVENTORY.

    (a) In General.--Clause (iv) of section 170(e)(3)(C) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to contributions made after December 31,
    2009.
    SEC. 741. ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF BOOK
    INVENTORIES TO PUBLIC SCHOOLS.

    (a) In General.--Clause (iv) of section 170(e)(3)(D) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to contributions made after December 31,
    2009.
    SEC. 742. ENHANCED CHARITABLE DEDUCTION FOR CORPORATE
    CONTRIBUTIONS OF COMPUTER INVENTORY FOR
    EDUCATIONAL PURPOSES.

    (a) In General.--Subparagraph (G) of section 170(e)(6) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to contributions made in taxable years
    beginning after December 31, 2009.
    SEC. 743. ELECTION TO EXPENSE MINE SAFETY EQUIPMENT.

    (a) In General.--Subsection (g) of section 179E is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to property placed in service after December
    31, 2009.
    SEC. 744. SPECIAL EXPENSING RULES FOR CERTAIN FILM AND TELEVISION
    PRODUCTIONS.

    (a) In General.--Subsection (f) of section 181 is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to productions commencing after December 31,
    2009.
    SEC. 745. EXPENSING OF ENVIRONMENTAL REMEDIATION COSTS.

    (a) In General.--Subsection (h) of section 198 is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to expenditures paid or incurred after
    December 31, 2009.
    SEC. 746. DEDUCTION ALLOWABLE WITH RESPECT TO INCOME ATTRIBUTABLE
    TO DOMESTIC PRODUCTION ACTIVITIES IN
    PUERTO RICO.

    (a) In General.--Subparagraph (C) of section 199(d)(8) is amended--
    (1) by striking ``first 4 taxable years'' and inserting
    ``first 6 taxable years''; and

    [[Page 3320]]

    (2) by striking ``January 1, 2010'' and inserting ``January
    1, 2012''.

    (b) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2009.
    SEC. 747. MODIFICATION OF TAX TREATMENT OF CERTAIN PAYMENTS TO
    CONTROLLING EXEMPT ORGANIZATIONS.

    (a) In General.--Clause (iv) of section 512(b)(13)(E) <>  is amended by striking ``December 31, 2009'' and inserting
    ``December 31, 2011''.

    (b) <>  Effective Date.--The amendment made by
    this section shall apply to payments received or accrued after December
    31, 2009.
    SEC. 748. TREATMENT OF CERTAIN DIVIDENDS OF REGULATED INVESTMENT
    COMPANIES.

    (a) In General.--Paragraphs (1)(C) and (2)(C) of section 871(k) are
    each amended by striking ``December 31, 2009'' and inserting ``December
    31, 2011''.
    (b) <>  Effective Date.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2009.
    SEC. 749. RIC QUALIFIED INVESTMENT ENTITY TREATMENT UNDER FIRPTA.

    (a) In General.--Clause (ii) of section 897(h)(4)(A) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--
    (1) In general.--The amendment made by subsection (a) shall
    take effect on January 1, 2010. Notwithstanding the preceding
    sentence, such amendment shall not apply with respect to the
    withholding requirement under section 1445 of the Internal
    Revenue Code of 1986 for any payment made before the date of the
    enactment of this Act.
    (2) Amounts withheld on or before date of enactment.--In the
    case of a regulated investment company--
    (A) which makes a distribution after December 31,
    2009, and before the date of the enactment of this Act;
    and
    (B) which would (but for the second sentence of
    paragraph (1)) have been required to withhold with
    respect to such distribution under section 1445 of such
    Code,
    such investment company shall not be liable to any person to
    whom such distribution was made for any amount so withheld and
    paid over to the Secretary of the Treasury.
    SEC. 750. EXCEPTIONS FOR ACTIVE FINANCING INCOME.

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

    [[Page 3321]]

    SEC. 751. LOOK-THRU TREATMENT OF PAYMENTS BETWEEN RELATED
    CONTROLLED FOREIGN CORPORATIONS UNDER
    FOREIGN PERSONAL HOLDING COMPANY RULES.

    (a) In General.--Subparagraph (C) of section 954(c)(6) <>  is amended by striking ``January 1, 2010'' and inserting
    ``January 1, 2012''.

    (b) <>  Effective Date.--The amendment made
    by this section shall apply to taxable years of foreign corporations
    beginning after December 31, 2009, and to taxable years of United States
    shareholders with or within which any such taxable year of such foreign
    corporation ends.
    SEC. 752. BASIS ADJUSTMENT TO STOCK OF S CORPS MAKING CHARITABLE
    CONTRIBUTIONS OF PROPERTY.

    (a) In General.--Paragraph (2) of section 1367(a) is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to contributions made in taxable years
    beginning after December 31, 2009.
    SEC. 753. EMPOWERMENT ZONE TAX INCENTIVES.

    (a) In General.--Section 1391 is amended--
    (1) by striking ``December 31, 2009'' in subsection
    (d)(1)(A)(i) and inserting ``December 31, 2011''; and
    (2) by striking the last sentence of subsection (h)(2).

    (b) Increased Exclusion of Gain on Stock of Empowerment Zone
    Businesses.--Subparagraph (C) of section 1202(a)(2) is amended--
    (1) by striking ``December 31, 2014'' and inserting
    ``December 31, 2016''; and
    (2) by striking ``2014'' in the heading and inserting
    ``2016''.

    (c) <>  Treatment of Certain Termination
    Dates Specified in Nominations.--In the case of a designation of an
    empowerment zone the nomination for which included a termination date
    which is contemporaneous with the date specified in subparagraph (A)(i)
    of section 1391(d)(1) of the Internal Revenue Code of 1986 (as in effect
    before the enactment of this Act), subparagraph (B) of such section
    shall not apply with respect to such designation if, after the date of
    the enactment of this section, the entity which made such nomination
    amends the nomination to provide for a new termination date in such
    manner as the Secretary of the Treasury (or the Secretary's designee)
    may provide.

    (d) <>  Effective Date.--The amendments
    made by this section shall apply to periods after December 31, 2009.
    SEC. 754. TAX INCENTIVES FOR INVESTMENT IN THE DISTRICT OF
    COLUMBIA.

    (a) In General.--Subsection (f) of section 1400 is amended by
    striking ``December 31, 2009'' each place it appears and inserting
    ``December 31, 2011''.
    (b) Tax-exempt DC Empowerment Zone Bonds.--Subsection (b) of section
    1400A is amended by striking ``December 31, 2009'' and inserting
    ``December 31, 2011''.
    (c) Zero-percent Capital Gains Rate.--
    (1) Acquisition date.--Paragraphs (2)(A)(i), (3)(A),
    (4)(A)(i), and (4)(B)(i)(I) of section 1400B(b) are each amended
    by striking ``January 1, 2010'' and inserting ``January 1,
    2012''.
    (2) Limitation on period of gains.--

    [[Page 3322]]

    (A) In general.--Paragraph (2) of section <> 1400B(e) is amended--
    (i) by striking ``December 31, 2014'' and
    inserting ``December 31, 2016''; and
    (ii) by striking ``2014'' in the heading and
    inserting ``2016''.
    (B) Partnerships and s-corps.--Paragraph (2) of
    section 1400B(g) is amended by striking ``December 31,
    2014'' and inserting ``December 31, 2016''.

    (d) First-time Homebuyer Credit.--Subsection (i) of section 1400C is
    amended by striking ``January 1, 2010'' and inserting ``January 1,
    2012''.
    (e) <>  Effective Dates.--
    (1) In general.--Except as otherwise provided in this
    subsection, the amendments made by this section shall apply to
    periods after December 31, 2009.
    (2) Tax-exempt dc empowerment zone bonds.--The amendment
    made by subsection (b) shall apply to bonds issued after
    December 31, 2009.
    (3) Acquisition dates for zero-percent capital gains rate.--
    The amendments made by subsection (c) shall apply to property
    acquired or substantially improved after December 31, 2009.
    (4) Homebuyer credit.--The amendment made by subsection (d)
    shall apply to homes purchased after December 31, 2009.
    SEC. 755. TEMPORARY INCREASE IN LIMIT ON COVER OVER OF RUM EXCISE
    TAXES TO PUERTO RICO AND THE VIRGIN
    ISLANDS.

    (a) In General.--Paragraph (1) of section 7652(f) is amended by
    striking ``January 1, 2010'' and inserting ``January 1, 2012''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to distilled spirits brought into the United
    States after December 31, 2009.
    SEC. 756. AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT.

    (a) In General.--Subsection (d) of section 119 of division A of the
    Tax Relief and Health Care Act of 2006 <>  is
    amended--
    (1) by striking ``first 4 taxable years'' and inserting
    ``first 6 taxable years'', and
    (2) by striking ``January 1, 2010'' and inserting ``January
    1, 2012''.

    (b) <>  Effective Date.--The amendments made by
    this section shall apply to taxable years beginning after December 31,
    2009.
    SEC. 757. WORK OPPORTUNITY CREDIT.

    (a) In General.--Subparagraph (B) of section 51(c)(4) is amended by
    striking ``August 31, 2011'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to individuals who begin work for the
    employer after the date of the enactment of this Act.
    SEC. 758. QUALIFIED ZONE ACADEMY BONDS.

    (a) In General.--Section 54E(c)(1) is amended--
    (1) by striking ``2008 and'' and inserting ``2008,'', and
    (2) by inserting ``and $400,000,000 for 2011'' after
    ``2010,''.

    [[Page 3323]]

    (b) Repeal of Refundable Credit for QZABs.--Paragraph (3) of section
    6431(f) <>  is amended by inserting ``determined
    without regard to any allocation relating to the national zone academy
    bond limitation for 2011 or any carryforward of such allocation'' after
    ``54E)'' in subparagraph (A)(iii).

    (c) <>  Effective Date.--The amendments made by
    this section shall apply to obligations issued after December 31, 2010.
    SEC. 759. MORTGAGE INSURANCE PREMIUMS.

    (a) In General.--Clause (iv) of section 163(h)(3)(E) is amended by
    striking ``December 31, 2010'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment made
    by this section shall apply to amounts paid or accrued after December
    31, 2010.
    SEC. 760. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN
    SMALL BUSINESS STOCK.

    (a) In General.--Paragraph (4) of section 1202(a) is amended--
    (1) by striking ``January 1, 2011'' and inserting ``January
    1, 2012'', and
    (2) by inserting ``and 2011'' after ``2010'' in the heading
    thereof.

    (b) <>  Effective Date.--The amendments
    made by this section shall apply to stock acquired after December 31,
    2010.

    Subtitle D--Temporary Disaster Relief Provisions

    PART

    Subpart A--New York Liberty Zone

    SEC. 761. TAX-EXEMPT BOND FINANCING.

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

    Subpart B--GO Zone

    SEC. 762. INCREASE IN REHABILITATION CREDIT.

    (a) In General.--Subsection (h) of section 1400N is amended by
    striking ``December 31, 2009'' and inserting ``December 31, 2011''.
    (b) <>  Effective Date.--The amendment
    made by this section shall apply to amounts paid or incurred after
    December 31, 2009.
    SEC. 763. LOW-INCOME HOUSING CREDIT RULES FOR BUILDINGS IN GO
    ZONES.

    Section 1400N(c)(5) is amended by striking ``January 1, 2011'' and
    inserting ``January 1, 2012''.

    [[Page 3324]]

    SEC. 764. TAX-EXEMPT BOND FINANCING.

    (a) In General.--Paragraphs (2)(D) and (7)(C) of section
    1400N(a) <>  are each amended by striking ``January
    1, 2011'' and inserting ``January 1, 2012''.

    (b) Conforming Amendments.--Sections 702(d)(1) and 704(a) of the
    Heartland Disaster Tax Relief Act of 2008 are each amended by striking
    ``January 1, 2011'' each place it appears and inserting ``January 1,
    2012''.
    SEC. 765. BONUS DEPRECIATION DEDUCTION APPLICABLE TO THE GO ZONE.

    (a) In General.--Paragraph (6) of section 1400N(d) is amended--
    (1) by striking ``December 31, 2010'' both places it appears
    in subparagraph (B) and inserting ``December 31, 2011'', and
    (2) by striking ``January 1, 2010'' in the heading and the
    text of subparagraph (D) and inserting ``January 1, 2012''.

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

    TITLE VIII--BUDGETARY PROVISIONS

    SEC. 801. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying with
    the Statutory Pay-As-You-Go Act of 2010, shall be determined by
    reference to the latest statement titled ``Budgetary Effects of PAYGO
    Legislation'' for this Act, jointly submitted for printing in the
    Congressional Record by the Chairmen 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
    amendment between the Houses.
    SEC. 802. EMERGENCY DESIGNATIONS.

    (a) Statutory Paygo.--This Act is designated as an emergency
    requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act
    of 2010 (Public Law 111-139; 2 U.S.C. 933(g)) except to the extent that
    the budgetary effects of this Act are determined to be subject to the
    current policy adjustments under sections 4(c) and 7 of the Statutory
    Pay-As-You-Go Act.
    (b) Senate.--In the Senate, this Act is designated as an emergency
    requirement pursuant to section 403(a) of S. Con. Res. 13 (111th
    Congress), the concurrent resolution on the budget for fiscal year 2010.

    [[Page 3325]]

    (c) House of Representatives.--In the House of Representatives,
    every provision of this Act is expressly designated as an emergency for
    purposes of pay-as-you-go principles except to the extent that any such
    provision is subject to the current policy adjustments under section
    4(c) of the Statutory Pay-As-You-Go Act of 2010.

    Approved December 17, 2010.

    LEGISLATIVE HISTORY--H.R. 4853:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 156 (2010):
    Mar. 17, considered and passed House.
    Sept. 23, considered and passed Senate, amended.
    Dec. 2, House concurred in Senate amendment with an
    amendment. Senate considered concurring in House
    amendment with an amendment.
    Dec. 4, 9, 13-15, Senate considered and concurred in House
    amendment with an amendment.
    Dec. 16, House concurred in Senate amendment.
    DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
    Dec. 18, Presidential remarks.